Micro markets provide a “wow” factor and the ability to tailor products like never before. Operators focused on this rapidly accelerating segment and shared their micro market experiences during the 2016 NAMA OneShow in Chicago, IL. Sponsored by Mondelez International, the private event was hosted by Automatic Merchandiser and VendingMarketWatch.com to bring some insights to the industry.
While there are dozens of product selections offered in micro markets, from indulgent to nutritious, most consumers view a micro market as overall healthy, rather than just a place to get refreshment. “No matter what we put in the micro market, consumers perceive the overall market as healthy,” commented Lynne Plante from Florida Fresh Vending.
Tailoring the micro market products mix to the location is even more important in micro markets, because there are fewer products that sell well in all locations. “What’s moving in Pittsburg will not move in central Pennsylvania,” said Craig Cordaro from CRH Catering. That is why the reports have been so important in helping him change planograms to optimize sales. This was echoed by many others. “We’ll have a call center with 200 people and across the street another call center and they’ll buy completely different items. Also 4 months later you have some turnover and it’s completely different again,” said Ryan Harrington of Royal Vending.
Knowing which products are selling, how to get more of those products, including brand extensions, and how to grow that portion of the business especially when servicing a rural area was among some of the more pressing challenges for the operators at the roundtable. “We have a big geographic area, so scaling the business is a huge concern for us, as is breeding efficiencies,” said Devin Smith of All Star Services. Despite the challenges, micro markets presented enough sales opportunity that none of the operators were giving it up.
Read the entire article in the May Issue of Automatic Merchandiser.
