$20 Vending Machines

1. Simplified Vending- VendX
Domain: Service Design, Research and Product Design
Project Mentor: Prof. Puneet Tandon, Mr. Aditya Chand
Timeline: 5 months (Jan - May 2020)
“A service designed to revolutionise the
American vending machine market with $30
disposable vending machines.”

2. Introduction
I came across an opportunity to work for a startup based in California as a 4-month internship. This collaboration
worked well and completely remote. We devised a research strategy that would work for us to gain valuable insights.
My Role
I was solely responsible for the service design and product design aspects completely. With assistance from my mentor,
I conducted remote user research in various global markets and managed the resources expended in the process.
Design Brief
To develop a fresh way of vending which is disposable, ship-able by the usual network and a low-cost
solution along with a viable business model.

3. Design Process
Due to geographical constraints, the research process followed in the research phase was unique. We used the inverted
pyramid method in this project with small feedback loops at various stages, the ability to zoom in and out at various
stages and low risk of the solution.
Benchmarking- Japan
Participant recruitment
Expert interviews
Research
Use cases
Business models
Insights
Inferences
Exploration
Brainstorming
Ideation
System maps
Storyboarding
Tech exploration
3D development
The Solution
Service:
Product:
Feedback Iteration

4. Benchmarking- The Japanese Vending Machine (VM) Industry
Japan is a popular market when it comes to vending machines. Superior technology and wide acceptance have led to
the establishment of major businesses that manage operations of a network of vending machines as a service. I
studied the innovations, the various products that are sold and the kind of locations these machines operate in.
Stores converted into a set of VM
Habit-forming VM
VM that grows fresh veggies
VM for a special purpose (gold, crabs)
Robotic automation in VM
Surprise gifting
VM that incentivises for good behaviour

5. User Research
Remote user research is a challenge. It was extremely difficult for me to understand the needs of the American market
and consumers sitting in India. The COVID-19 pandemic had disturbed businesses which added complexities. Along
with Mr Aditya Chand, I strategised a way to leverage social media and freelance platform to gain valuable insights over
the internet.
Global Research Strategy
Since the vending machine businesses were displaced, shut or temporarily closed, we had to come up with a fresh way
to approach user research in a way to stick to the timeline and bring out good insights. In this COVID situation, there
was an opportunity. The number of people using freelance work platforms like Upwork and craigslist suddenly went up
and a lot of people were available online. This method has risks involved and a huge probability of wasting time and
money on recruiting the wrong person.
Usually for this kind of projects, there are three types of research conducted:
Secondary research
Primary- end-user research
Primary- stakeholder research
Opportunity: Of these three, Primary stakeholder research is the most complicated to administer and has a lot of
complications. The pandemic gave us leverage because of availability and uncertainty of their work.
We recruited relevant experts from Upwork periodically throughout the various stages of immersion as well as ideation
and conceptualisation. This helped us infer highly qualitative insights from some professionals working as established
professionals in their fields. We could interview people from various domains like engineering, artificial intelligence,
robotics, management, vending machine business owners, behavioural researchers, etc.

6. Peeks from the Interviews

7. We conducted 1 hour-long interviews with around 12 experts. We could find very deep insights from people around the
world and take their guidance to correct our thought process at every stage. This was a highly valuable exercise and the
insights from experiences from such experts brought a lot of value and maturity in our later phases.
This process was time-consuming because shortlisting and recruiting take time but the money invested was a quality
investment for research and probably the most practical alternative in the pandemic scenario.

8. Inferences
Business Models in the Vending Machine Industry
Direct to Consumer ModelBrand Partnership
Machine Distrubutor ModelBuying a VM Business Model
Most relevant to us

9. Target Users
This is Josh. He dropped out of school to learn surfing and works as a part-time lifeguard and washes cars in a
carwash. He is in constant need of money as his wife is pregnant.
Every year 1.2 million school dropouts are recorded in the US
25% of high school freshmen fail to graduate on time
This youth is found working at the movies, car-washes, cafe's, plumbing agencies, house helps, etc. At an average age of
19 they are under-payed and have to work extra hours to pay their bills. This is a perfect segment to venture in a vending
machine business because of low investment.

10. Inferences
Pros and Cons of the vending machine business.
No skill or training required
One person logistics- simple
Saves time for customer
Easy to scale up
Quick money rotation
Lesser steps to buy a product
Boom with COVID-19 because of distancing
Vending machines cost $2,000 to $10,000
High maintenance over time
Vandalism
Difficult to ensure hygiene
Increase in competition: low revenue
Saturation of location spaces
Pro’s Con’s

11. The Service
We developed a service to mitigate unemployment in first world countries, increase acceptance of the business model
of a disposable vending machine and minimise operational costs of the service.
Stakeholders in the Proposed System

12. Flow of Revenue, Goods and VM

13. System Diagram

14. Storyboard- VM Operator

15. Storyboard- Customer
The proposed user journey of the customer remains extremely simple and direct. The redirection through the mobile
web interface acts as a payment portal and a platform to access other features of the service.

16. The Product
Design and development of physical vending machines intended to be disposable and provide for a practical business
solution for low investments.
Functional Requirements
Tech Part Disposible Component
Proposed cost: Less than $50
Build with corrugated paper
Connected to power supply
Body is use and throw

17. Technological Development
Attaining the cost bracket for $50 where other vending machines cost over $1,000 while retaining safety and quantity of
products, a new way of vending had to be thought of. I spent a lot of time ideating and having discussions and finalised
one idea.
The Hot-Cut Mechanism
The hot cut mechanism was inspired by
the solar panel opening mechanism in
satellites from NASA. A hot wire severs
a component with a low melting point
to release a movable component. In our
case, the product from a vending
machine.
Lightweight components would be
stuck on a custom tape with markings
for product placement and then stuck
on a circuit board printed on a
corrugated board. The red filaments
heat up just enough to cleanly melt the
tape while not igniting the cardboard.

18. Components
Printed Circuits Adhesive Tape

19. The printed circuits would be screen printed and nichrome
elements would be pasted over a patch of kapton.
The Hot Cut Board
Made using corrugated board, the printed circuit can be printed on any surface. The nichrome filaments pose a
challenge around the right choice of material to keep the melting point of the adhesive tape lower than the
decomposition temperature of the base corrugated board.

20. Working

21. These circuits are widely in use to print RFID circuit tags and stickers to safeguard clothing at stores. The circuits can
simply be printed using screen printing or a laser printer depending on the volume of production.

22. Example
If we plan to sell cookies using this vending machine, Cookie boxes would be vertically laid down on circuits printed on a
corrugated board sheet. This sheet would fold in a certain way to act as the outer body of the vending machine.
The other side of the board would be printed and act as the branding component of the vending machine

23. 3D Buildup of the Body
The outermost body of the vending machine would comprise of currugated board cut and scored as below to fold into
the body.

24. Folding of the Board to form the body
1
3
2
4

25. QR code embedded within graphics
To pay: scan- open Google pay to make payment
The product would be dispensed on the bottom
Product details, quantity and cost would all be displayed on the mobile
webpage
The VM will be enabled with Bluetooth beacons and a reward system to
engage and incentivise customers
For the low cost and use of sustainable material, the vending machine
can be easily disposed of when empty and be replaced by a new one
These vending machines can be shipped using standard delivery using
and service like UPS
100 standard products fit in this body (dimensions 15X20 cm)
3D Model of the Vending Machine

26. Use Case
This diagram shows the step by step touchpoints of the payment process. Introduction of shorter feedback loops here
increases customer retention.

27. The vending machines in a corporate environment would gel well with the pantry. We could curate the products inside
based on data collected to suit the prefference of consumers.

28. To leverage the COVID situation as an opportunity, We tried to pivot using vending machines dispensing PPE.

29. User base expansion to College students, etc. They would join us to start to earn additional income.
Existing machine owners can be transformed using the Franchise model
Pilot Strategy: We need to self-test as a set of vending machines owned and operated. ML-based data
collection to ensure the viability of product and location would help us find the right fit.
I learnt to research a completely different cultural construct
Remote user research using zoom is a challenge in itself. I learnt how to balance open and close-ended
questions to bring out valuable insights
Lockdown was a tough time for me. Through this project, I kept myself occupied and yet connected with the
design industry. I learnt a lot about UX research.
Future Scope
My Learnings