L’Oréal Paris Heads Underground in NYC with Intelligent Vending Machine

This is a blog post in response to an external blog, BrandChannel, on October 31, 2013.

L’Oréal has recently found its new partner, the Metropolitan Transit Authority (MTA), as it strived to offer travelers and people in New York City the whole new shopping experience by launching vending machines in a New York City subway station.

As a marketing student, I am impressed by how this business strategy benefits both L’Oréal and MTA. As mentioned in BrandChannel’s blog, the vending machines take over abandoned newsstand which allows MTA to gain from renting out the space, while L’Oréal took this opportunity to reach and expand its consumer base.

The consumers in L’Oréal’s target market, middle-class female, are known to be time-poor consumers. Besides, New York City is also known as one of the most busiest cities. By placing the vending machines in a subway station, L’Oréal will be able to reach and capture all of its potential and regular consumers.

What makes this business strategy more interesting is the innovation of the machines as they act as “research and development (R&D).” They have a function to measure the level of engagement from the customers who pass by and interact with the customers. The machines can also capture the customers’ information which may be used by the company to improve its products and keep up with demand.

Moreover, these vending machines help the company to shorten up the distribution channel, as the products reach consumers faster. They also can hold up to 700 items which can be considered as a mini-storage. Lastly, the machines also lower the cost for the company, as it is cheaper to launch machines, which can interact with customers as well as human, at multiple locations than setting up stores.

Link to BrandChannel’s blog: L’Oréal Paris and the launch of vending machines in NYC