Selecting Products for the Vending Machine

Category management is s system that is designed to enable a company to take advantage of the market research in selecting products for the machines. By maximizing sales, the company helps the driver to make more money, whether he is paid on commission, salary, or a combination of the two.

There are there steps in designing a planogram. 1) Identify product categories. 2) Allocate space to each category. 3) Decide on specific products for each category.

Product groups: a judgment call

Antares vending operators can categorize products in different ways. Once you have categories, they can be grouped into smaller categories. This is what would be a judgment call. The fewer the categories, the easier it is to do a planogram. But the more categories identified, the more the planogram will ensure variety.

The next step would be allocating space in the Antares vending machine. Each category should get at least one facing. The number of facings is based on category sales an how well the products will physically fit the shelf.

Product selection is the third step and is usually the most difficult. There are three types of products to consider:

· Core products- these go in every machine everyday. These are products that sell consistently in all machines. They can represent 20 percent of the products in your Antares vending machines.

· Cycle products- these go in every machine during the menu cycle, but change between menu cycles. This comprises the majority of products. They change with each cycle to ensure variety.

· Choice products- products can be provided for a specific location to meet specific requests. The route drivers are usually given a list of what products they can choose. They should comprise of no more than 20 percent of the facings of your Antares vending machines.

The planogram must designate every facing in the machine. This would make it necessary to have a separate planogram for a machine that has a different number of facings. Planograms will give you control over what products are placed in the machines. Without this tool, drivers will be free to place products based on personal preferences. Once the system is in place, control over product placement will be in the hands of management. If a route driver calls in sick, it will be easy for a fill-in driver to know what products go in the machines. This system is designed to ensure the product variety customers desire, thereby maximizing sales.