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PepsiCo Tests Interactive Vending Machines

PepsiCo Tests Interactive Vending Machines

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Buying a beverage has never been more exciting, thanks to new additions of gaming and gifting

Want your Pepsi with a side of gaming?

Coming soon to a mall near you is a vending machine with more features than you could ever possibly need ... But hey, it does sound like fun.

PepsiCo recently unveiled the pilot program of Pepsi Interactive Vending Machines in five mall locations. The new interactive vending technology, part of the larger social vending experiment PepsiCo began last year, aims to transform the purchasing experience. These vending machines are most noticeably equipped with a large touch screen to simplify the buying of their beverages, which include Pepsi, Mountain Dew, Sierra Mist Natural, Aquafina, and Lipton Green Tea.

Buying a beverage, however, is the least you can do with these machines. PepsiCo has extended the vending machine experience to gaming on the large screens, where customers (with the purchase of a beverage at the machine) can play a randomized game and have the chance to win a free 20-ounce beverage redeemable at any Pepsi Interactive Vending Machine. Customers can also gift beverages directly from the machines, which the recipient can receive at any interactive machine, by entering the recipient’s name and email with a personalized message. Recipients of gifts are then encouraged to either keep their gift, sending a gift back in thanks, or sending a gift to a third party, extending the social circle of the vending gift process. Plus, the machine provides AC power outlets and USB ports where users can charge their phones while interacting with the vending machine.

These machines are only the beginning in PepsiCo’s Social Vending program, with more machines and technology enhancements expected in the future. The only question that remains is, how long does the line for the vending machine have to become before you stop playing the interactive video game?

PepsiCo Swot Analysis

For this semester, I am going to be following the company PepsiCo in my blog. I am excited to follow this company, and am looking forward to the semester as a whole.

In the past few class lectures, we have been learning about SWOT analysis. SWOT analysis is one of the most basic business practices that almost all organizations utilize in order to determine what strategies to pursue. SWOT analysis is performed by looking at an organization’s strengths, weaknesses, opportunities, and threats in the marketplace. For this post, I will perform a SWOT analysis on PepsiCo.

PepsiCo Wins Debt-vs-Equity Dispute in U.S. Tax Court

PepsiCo has won a $363 million dispute with the Internal Revenue Services, who had claimed that they were illegally evading taxes due on cash brought in from their foreign affiliate in the Netherlands.

One decision that companies have to make in the course of their business is how they will finance their organization. The two options are financing by debt and financing by equity, both of which offer certain advantages. Many companies try to have the best of both worlds by creating hybrid securities that operate as debt in certain situations, and equity in others.

In the mid-1990s, PepsiCo decided to challenge its long-standing rival Coca Cola in Eastern Europe and in Asia. For a number of reasons, including some tax purposes, PepsiCo decided to enter this market through an affiliate based in the Netherlands.

When organizing this affiliate, PepsiCo devised hybrid securities that were considered debt in the Netherlands and equity in the United States. It was decided that this is “legitimate tax planning”, according to Tax Court Judge Joseph Goetke.

The IRS had tried to bill PepsiCo for taxes owed from 1998 to 2002, claiming that the company’s Dutch payments were taxable as debt payments from its Netherlands subsidiaries. PepsiCo subsequently sued the IRS, arguing that it had an equity stake in its Dutch subsidiaries and the payments made were nontaxable returns on capital investment. The Tax Court has shown that they were correct in this argument.

New Machine Lets You Send a Friend a Pepsi Via Text Message

"Our vision is to use innovative technology to empower consumers and create new ways for them to engage with our brands, their social networks and each other at the point of purchase," Mikel Durham, Chief Innovation Officer at PepsiCo Foodservice, said in a release.

The smart machine also allows consumers to record video messages and to practice "Random Acts of Refreshment" by sending free drinks to strangers at any other of Pepsi's social soda dispensers.

The friendly pop machines are just one way that food and beverage companies are experimenting with integrating social media into the point of sale experience. The diet frozen dessert chain Tasti D-Lite isinstalling TastiPads in all of its new and some of its existing locations. These specially outfitted iPads allow users to look up nutritional information, update their frequent buyer cards, and sign and read a virtual customer guestbook. Last summer Unilever introduced its "Share Happy" ice cream vending machines, which instructed users to "say cheese" in front of the machine's camera. Smiles big enough to register on the "smile-o-meter" were rewarded with a free ice cream and their pictures were shared on Facebook (with the user's permission.) Coke also has also launched interactive vending machines.

The social media blog Mashable points outthat the new PepsiCo machines are lacking a Twitter or Facebook component. A rep for Pepsi told Mashable that more social media interactivity is planned for phase 2 of the new system's launch.

To create a more interactive experience for its customers, many companies and brands are coming out with an interactive vending machine to give consumers are more enjoyable buying experience. While an interaction with a vending machine is meant to be only temporary and fleeting, many brands are working to extend the time people spend at vending machines by offering them a fun, social and interactive experience.

From a vending machine that dispenses coffee depending on how many times you yawn to tweet-enabling vending machines, vending machines are quickly becoming a lot like arcade games. With a competitive edge involved in the consumer experiences, buyers are spending more time, energy and even money as they feel the need to work for whatever product is locked up inside the vending machine.

Make Your Drink Come True With Pepsi Spire, The Future Of Fountain Beverages

PURCHASE, N.Y. , May 16, 2014 /PRNewswire/ -- Have you dreamed of a raspberry lemon Mountain Dew, a Diet Pepsi flavored with vanilla and strawberry or a Brisk Iced Tea with a splash of cherry? Now if you can dream it, you can drink it with Pepsi Spire -- a portfolio of innovative fountain beverage dispensers that allow consumers to create more than 1,000 customized beverages with the touch of a button, while giving foodservice operators a choice of flexible and cost-effective equipment to pick from to best meet their needs. Pepsi Spire is now available in select U.S. locations and will continue to roll out through 2014.

The Pepsi Spire portfolio currently consists of three state-of-the-art touchscreen fountain unit models that allow consumers to easily create their own personalized beverages in a fun and engaging environment. Pepsi Spire pours a wide range of brands from PepsiCo's diverse portfolio of carbonated and non-carbonated beverages, including Pepsi, Mountain Dew, Sierra Mist, Brisk Iced Tea and SoBe Lifewater, as well as an assortment of zero-calorie flavor shots, including cherry, lemon, vanilla, strawberry, raspberry and lime.

"We are in the middle of an exciting evolution of personalization. The 'maker movement' has influenced the way people relate to brands and one another and design has infiltrated everything we consume," said Brad Jakeman , president, PepsiCo Global Beverages Group (@BradJakeman). "What better way to empower consumers to make their own personalized drinks than by giving them the chance to create more than 1,000 beverage combinations with one simple touch of our sleek, engaging, modern Pepsi Spire."

"Not only does Pepsi Spire bring the fountain beverage experience to life for consumers in a dynamic way with the brands they love, but it meets the varying business needs of our foodservice operators," said Kirk Tanner , president, PepsiCo Foodservice. "Our customers want flexible solutions and a portfolio of equipment choices, while also being innovative, fresh and fun. The Pepsi Spire portfolio offers something for everyone and it will play a key role in our broader foodservice growth strategy."

The Pepsi Spire lineup currently includes three models, each designed to meet a specific set of foodservice customer needs:

  • Pepsi Spire 1.1 is a countertop self-service unit that allows consumers to create up to 40 beverage combinations using a 10-inch touchscreen.
  • Pepsi Spire 2.0 is a countertop self-service unit that allows consumers to create up to 500 beverage combinations using a 15-inch touchscreen. This equipment is also available as a countertop crew-service unit for restaurant staff.
  • Pepsi Spire 5.0 , which is launching soon, allows consumers to create more than 1,000 beverage combinations using a 32-inch touchscreen. This equipment will be available as both a self-service countertop or as a free-standing unit.

The equipment evolved from the Pepsi Touch Tower, which was piloted in the U.S. in 2013 and is also available in Europe , Central America and the Caribbean .

The equipment's design shares the same visual design language that is being used across a number of PepsiCo's recent equipment innovations, including its Interactive Vending Machine and Smart Cooler.

Pepsi Spire 2.0 and 5.0 are also smart equipment, which allows PepsiCo and its customers to identify popular beverage customizations, gain real-time consumer preference insights and remotely update touchscreen content to further enhance the consumer experience.

The equipment portfolio will be on display at the National Restaurant Association Show in Chicago from May 17 to 20 .

For more information on Pepsi Spire, visit and follow @PepsiSpire on Twitter.

The deployment of Pepsi Spire is the latest example of PepsiCo leveraging its diverse food and beverage portfolio as well as its R&D and Design capabilities to provide a unique set of benefits to foodservice customers. Other recent examples include:

  • In May, PepsiCo and Taco Bell announced that, for the first time, Mtn Dew Baja Blast &ndash which was introduced 10 years ago as a "Taco Bell Original" fountain beverage &ndash would also be available for a limited time in bottles and cans until the end of the summer or while supplies last. PepsiCo also partnered with Taco Bell in 2012 to reinvent its most popular menu item and introduced the Doritos Locos Tacos.
  • In February, Shanghai Disney Resort announced a strategic alliance with PepsiCo and Tingyi Holding Corp. In addition to providing a wide variety of well-known, high-quality PepsiCo and Master Kong beverage brands, the partnership will also focus on developing innovative beverage equipment for guests who will visit Shanghai Disney Resort and exploring unique menu items through culinary innovation.
  • Last December, Buffalo Wild Wings announced PepsiCo as the restaurant's primary soft drink and non-carbonated beverage provider. The two companies also announced plans to collaborate on joint marketing initiatives tied to sports and entertainment and to explore unique menu offerings with PepsiCo snack brands. In March, PepsiCo launched Ruffles Deep Ridged Classic Hot Wing flavored potato chips inspired by Buffalo Wild Wings.

About PepsiCo
PepsiCo products are enjoyed by consumers one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $66 billion in net revenue in 2013, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 22 brands that generate more than $1 billion each in estimated annual retail sales.

PepsiCo introduces Social Vending System™, the next generation in interactive vend technology

Next generation in interactive vend technology reinforces PepsiCo’s commitment to developing “smart” equipment.

PepsiCo has announced the launch of its Social Vending System, a state-of-the-art networked unit that features full touch screen interactive vending technology, enabling consumers to better connect with PepsiCo brands right at the point of purchase. A prototype of the Social Vending System will debut at the National Automatic Merchandising Association’s One Show in Chicago, April 27-29.

Engaging platform delivers consumers entertainment and fun along with beverages – Gift a friend, share a video, commit "random acts of refreshment"

Using digital technology, PepsiCo’s Social Vending System enables any user to gift a friend by selecting a beverage and entering the recipient’s name, mobile number and a personalized text message. There’s also the option to further personalize the gift with a short video recorded right at the machine. The gift is delivered with a system code and instructions to redeem it at any PepsiCo Social Vending system. When the recipient redeems his or her gift, they’re given the option of either thanking the original sender with a gift of their own or paying it forward and gifting a beverage to someone else.

PepsiCo’s innovative use of telemetry with the Social Vending System also delivers tremendous operational benefits, allowing customers to closely manage inventory levels and delivery scheduling remotely, and easily update digital content online, enabling them to change messaging and media content as needed.

“Our vision is to use innovative technology to empower consumers and create new ways for them to engage with our brands, their social networks and each other at the point of purchase,” said Mikel Durham, Chief Innovation Officer at PepsiCo Foodservice. “Social Vending extends our consumers’ social networks beyond the confines of their own devices and transforms a static, transaction-oriented experience into something fun and exciting they’ll want to return to, again and again.”

Social Vending also enables “Random Acts of Refreshment” – the ability to buy a drink for a complete stranger through any other Social Vending system. For example, a consumer could send a symbol of encouragement someone in a city that has experienced challenging weather, or a congratulatory beverage to a student at a university that just won a championship. The platform holds potential to extend PepsiCo’s digital and social programs for its food and beverage brands

The Social Vending System was conceived by PepsiCo’s newly formed Equipment Innovation group, whose mandate is to leverage emerging technologies to deliver relevant brand experiences for consumers through equipment. The design and UI were created in collaboration with Milwaukee-based DCI Marketing and Protagonist, located in Venice Beach, Calif.

“Our approach to technology innovation is driven by what we know consumers want. We’re working with some of the best minds in the business to develop equipment that provides customization, personalization and choice,” said Christine Sisler, VP, Equipment Innovation, PepsiCo. “Our Social Vending System delivers on those insights and more – it’s also visually engaging, fast, intuitive and satisfying to use.”

Further development of the Social Vending System platform is ongoing, and PepsiCo anticipates testing the concept with key strategic partners later this year.

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Coca Cola Zero: Unlock the 007 in you


Unsuspecting passengers that stopped to get a Coke zero at Antwerp Central were given a task in addition to getting a drink. A female violinist played the Bond theme as the machine offered the passengers chance to win free tickets to Skyfall. The machine display asked passengers to enter their name and ‘go to platform 6’ in 70 seconds. Hidden cameras filmed the participants in their race to the platform, that included Bond-style obstacles. Arrived at the platform the participants only still needed to sing the Bond theme to obtain the free tickets. The Skyfall stunt was created by Duval Guillaume Modem. (source: Zdnet)

PepsiCo Introduces an Interactive Vending Machine

In an attempt to engage consumers, brands have been experimenting with vending machines for the last couple of years. For example, Kenco Millicano installed a talking vending machine in London this August. Now PepsiCo offers Americans to experience vending in a new way. The company has introduced its Pepsi Interactive Vending machine pilot program which lets consumers in select U.S. locations to buy beverages, gift them and play games.

The machines equipped with full touch-screen technology are located at five General Growth Properties’ malls: Columbiana Centre (Columbia, S.C.), Clackamas Town Center (Happy Valley, Ore.), Oglethorpe Mall (Savannah, Ga.), Oakwood Mall (Eau Claire, Wis.) and Park City Center (Lancaster, Pa.).

The video explains how to interact with the vending machine and buy one of the PepsiCo beverages—Pepsi, Mountain Dew, Sierra Mist Natural, Aquafina or Lipton Green Tea. People can also gift a bottle to a friend by entering the recipient’s name and email along with a message. The receiver gets a code which can be entered at any Pepsi Interactive Vending machine. After they have purchased a beverage, consumers can play a game for a chance to win a free 20-ounce bottled beverage.

The Interactive Vending machine provides people with nutritional information for all the beverages and TV commercials and other video promotions of these products. The useful function of the machines is a possibility to charge mobile devices by plugging into built-in AC power outlets and USB ports.

«Pepsi’s Interactive Vending machine is the next generation of the Social Vending prototype launched last year and is part of a broader global platform of equipment innovation we’re developing to engage consumers,» said Mikel Durham, Global Growth officer, PepsiCo Foodservice.

Photo: Pepsi’s Interactive Vending machine, clickable

Watch the video: Pepsico Lays Vending Machine - Make in India 2016 (June 2022).


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