The Client: PepsiCo
Consumed over 1 billion times a day across 200 countries, PepsiCo ranks as the 2nd most valuable non-alcoholic beverage brand, with an estimated brand value of $21 Billion. Widely acclaimed for its sustainability commitments, including its transition to renewable energy sources, water efficiency and net-zero emissions, the brand has successfully upheld its credibility with 30% market share, amidst stiff market competition from brands like Coca-Cola, AMP Energy and Sierra Mist.
The Requirement:
Traditional distribution models adopted by PepsiCo faced limitations in bustling urban areas. Existing distribution networks struggled to efficiently cater to customers’ evolving on-the-go needs, especially meeting them at high-traffic locations with products of their preference.
Furthermore, PepsiCo aimed to roll out unprecedented initiatives that backed the company’s commitment to sustainability. PepsiCo wanted to offer customers more control and flexibility over their purchases, increase customer engagement, and create extraordinary CX.
Some of the other key requirements of PepsiCo were:
- Increasing market share in key urban areas.
- Improving distribution and logistics efficiency.
- Opening new avenues to maximize CX and CLV.
- Data-driven decision-making to maintain competitive lead.
The Solution:
Smart Vending Systems – ‘Random Acts of Refreshment’
Their ‘Smart Vending System’ launch in April 2011 marked the beginning of PepsiCo’s transformational approach in customer-centric retail. Equipped with powerful features like comprehensive interactive touch screens and easy payment options, this smart vending device allowed customers to gift a drink to their friends or complete strangers as an act of kindness, with personalized text messages or short videos that could be recorded at the kiosk. The recipient could redeem the gift using the assigned system code in similar kiosks.
PepsiCo Smart Vending Systems were installed at high-traffic locations such as transport hubs, workplaces, educational centers, and shopping areas.
Hello Goodness – Better For You
In December 2015, PepsiCo launched ‘Hello Goodness – Better for You’ smart vending machines that backed their vision to prevent obesity. Besides the basic digital point of sale, this innovative SVM offered:
Pepsico Hello, Goodness smart vending machines
- Healthful snacks and beverages, such as Naked Juice, Oven-Baked potato chips, pure leaf ice teas, ready-to-eat hummus cups, and Quaker Real Medley Bars.
- In-depth insight into the nutritional facts of every individual product to facilitate informed purchase
- Food and beverage pairing ideas for mindful consumption
- cashless vending
Hello, Goodness smart vending machines were installed at relevant high-footfall areas, such as health centers, gyms, recreational areas, workplaces, and educational institutions.
Integrated Hydration Platform – Beyond The Bottle
In April 2019, PepsiCo launched yet another leap toward environmental and health awareness with its Integrated Hydration Platform. This smart vending device discourages single-use plastics by allowing customers to use refillable bottles to fill in their preferred beverages.
PepsiCo launches SodaStream-style drinks dispenser for refillable bottles
Available in floor-standing and countertop versions, this smart vending machine was designed for non-branded beverage flavors like lemon-mint, raspberry-lime, etc. Through smart dispensing technology, consumers could also customize sugar levels, carbonation content, water type, and temperature of their drinks.
The deployment strategy included locations like university campuses, offices, health institutions, etc.
The Outcome:
PepsiCo’s Smart Vending Machines, launched in different variations for different causes, have brought the brand resounding success in urban areas at multiple levels.
With the Smart Vending System, PepsiCo succeeded in offering relevant brand experience to consumers through smart equipment. Hello Goodness and Integrated Hydration Platforms, on the other hand, helped PepsiCo transform its portfolio to address two rising trends in Urban Consumption:
- health consciousness (which had led to the drop in sales of carbonated beverages) and,
- environmental concerns (especially land and sea pollution arising out of single-use plastic disposal)
These highly innovative measures, made possible by smart vending technology, directly resulted in an enhanced positive brand image, better CX, increased customer engagement, and, most importantly, a significant sales boost after facing a 4.5% drop in 2017.
Overall, PepsiCo used smart vending machines not only to dispense products in high-traffic zones but also to address key issues surrounding health and the environment, thereby fostering trust and commitment among customers.
We Can Do The Same For You:
OgmentO’s Smart Vending Machines (SVMs) offer seamless, automated retail solutions across industries, including consumer electronics, healthcare & wellness, OTC, beauty, and fashion. Available in three capacities, they can be fully customized to fit your product dimensions and brand messaging.
Our SVMs are cost-effective and easy to deploy. They are equipped with remote monitoring and real-time reporting, helping brands expand effortlessly while keeping overheads low.
