Walk up to the ATM machine, swipe your credit card and out comes…… a cupcake?! After reading Weranda’s blog, I discovered that a new cupcake company called “Sprinkles” has created a pink ATM machine that is able to give consumers a cupcake! To make this possible, there is in fact a unique storage system that allows up to 600 fresh cupcakes to be served and ready to deliver to hungry, sweet-toothed consumers.

Weranda talks about the 3 main advantages of using ATM machines as a distribution channel: the trendy factor(increases interest, PR) , convenience and unique brand image. Because “Sprinkles” has declared itself as the first cupcake ATM in the mind’s of consumers, it definitely has the advantage of positioning itself as a unique brand. However, there may be several problems that can result from this strategy.
The first problem is the performance of the ATM machines. Since this is a new innovative technology, malfunctions may occur as it is the beginning of the company’s life cycle and they have not yet figured out all the efficiencies of the device. The machine may cause defects on the cupcake such as the icing being ruined or spoiled products.
A second problem is the difference in price of cupcakes. As Weranda stated, the price of cupcakes is $0.75 cheaper in store compared to the ATM machines. I think that the company should price the cupcakes the same as there is a a downturn in the economy and also there is no value added when cupcakes are dispensed from the ATM machine.
However, another additional advantage I found that is not on Weranda’s list was that “Sprinkles” created a new usage occasion for their product. Cupcakes are not typically an “on-the-go” food product compared to beverages or chips. By making these cupcakes available 24/7 – quickly and efficiently, Sprinkles is attempting to turn cupcakes into a snack that can be eaten on-the-go.

Source: https://blogs.ubc.ca/weradasomboonvechakarn/2012/03/12/atm-swipe-for-cupcakes-not-cash/











