You're a PM at a vending machine company. Your CEO asks you to design a new line of vending machines to be placed in hotels and motels. What would you do?

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You're a PM at a vending machine company. Your CEO asks you to design a new line of vending machines to be placed in hotels and motels. What would you do?

Asked at Google over a year ago

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productmanager1644 · Answer 1 · 2021-03-07T02:25:30+0000

An interesting product design question. Here's the structure I would use.

CLARIFY:
1. Is there a particular region we should focus on that may impact the customer taste? You choose.
2. Is there a particular type of hotel / motel (ex. luxury v. cheap, used mainly for business, etc.)? You choose.
3. Is there a particular customer we should focus on? You choose.
4. Is there a particular type of vending machine to focus on (ex. drinks, food, toys, etc.)? You choose.
5. Are there any limitations on cost or design? No.
6. Is this vending machine designed by Google? Should it use Google technology? You choose. (I assume that this vending machine is designed by Google.)
GOAL: The goal of the vending machine is to maximize customer adoption / usage - i.e. get as many customers purchasing items from the vending machine and ideally getting customers to become repeat customers.
USER GROUP: There are 3 groups of users that are using the vending machine. I'd like to focus on the individual consumer, as they will be the individuals using the machine the most and design has the biggest impact on them.
1. Individual Consumer: Consumer who is purchasing the items in the vending machine.
2. Vendor Stocker: Company that is stocking up the vending machine when it is out of items. Could be the hotel / motel itself or a third party they hire to restock the machine.
3. Product Suppliers: Companies that supply the items in the vendor machines. For example, a vending machine may offer multiple types of beverages (ex. gatorade, water, etc.). Each individual product in the vending machine comes from a different supplier potentially - ex. Gatorade, Dasani, etc.
USER JOURNEY: The high level journey of an individual using a vending machine is as follows.
1. Consumer decides they need an item. They may have forgotten to pack the item during their travels (ex. a phone charger) or they decide on the spot they need it (ex. a Gatorade after a workout).
2. Consumer goes to the vending machine.
3. Consumer scans options in the vending machine.
4. Consumer selects item on a keypad.
5. Consumer pays for the item in cash, credit / debit card or mobile contactless payment.
6. Consumer receives item.
USER PAIN POINTS:
1. No Item Available: Consumer cannot find the type of item they want in the vending machine.
2. Item Out of Stock: Items are sold out.
3. Too Many Options: Consumer sees too many options and is overwhelmed by choices. For example, there are 8 types of Gatorade in the machine.
4. Key Pad Broken: Key pad on vending machine isn't working. Consumer isn't able to select the right item.
5. Item Gets Stuck: Item gets stuck in vending machine after payment. Consumer unable to get the item or their money back.
6. Wrong Payment Method: Consumer doesn't have the right payment available. For example, if the vending machine only takes cash, and the consumer doesn't have cash on them.
7. Wrong Payment Charge: Consumer is charged the incorrect amount for item.
8. Payment Won't Work: Payment mechanism on vending machine is broken. Payment isn't accepted / consumer does not receive it.
9. Defective Item: Item Consumer receives is defective, or consumer is not satisfied with item.

RANK PAIN POINTS:

Pain Point	Impact to Consumer
No Items Available	High
Items Out of Stock	High
Too Many Options	Low
Key Pad Broken	Medium
Item Gets Stuck	High
Wrong Payment Method	High
Wrong Payment Charge	Low
Payment Won't Work	Medium
Defective Item	Medium

SOLUTIONS:
1. Vending Machine Inventory App: Google creates a vending machine app that is linked to all its "smart" vending machines. A customer could login (using their Gmail account) and see a list of the vending machines in their hotel / what is in stock.
2. Google Nest: Google builds Nest into vending machine that alerts vending machine every time there's a user in front of it. Vending machine will light up / activate when it notices a user. (Could also link with voice activation / voice assistant below.) Could act as security for vending machine.
3. Google Assistant Recommendations: Google builds voice assistant into its vending machine. The assistant asks what the customer wants / offers recommendations based on its needs.
4. Google Home Connection: Google allows for vending machine to link with a user's Google Home device. Could remind user of items they need to purchase. (Ex. consumer told Google Home they needed to purchase X item. This vending machine offers X item or has Y item that is similar.)
5. Google Robotic Arm: Google ensures that the vending machine is built extra wide to prevent items from being stuck; however, it includes a robotic arm as a safety in case an item does get stuck. Customer can use arm to assist with item retrieval if item gets stuck.
6. Google Pay Vending Machine: Google builds a Google Pay / mobile payment interface onto its vending machine. (Potential for this hardware piece to be a separate hardware piece that other vending machine companies could leverage.)
7. Google Pay Dispute: Google builds button on vending machine interface that allows customer to dispute charge (ex. charged the wrong amount, item defective etc.)
8. Google Returns: Google builds an item return box in their vending machine. Return is scanned to ensure item is actually there. Google refunds customer (either on Google Pay or potentially cash) for returned items.

RANK SOLUTIONS:

Solution	Impact to User	Cost to Google
Vending Machine Inventory App	High	Medium
Google Nest	Low	High
Google Assistant Recommendations	Medium	Low
Google Home Connection	Low	High
Google Robotic Arm	Medium	High
Google Pay Vending Machine	Medium	Low
Google Pay Dispute	Medium	Low
Google Returns	Low	Medium

CHOOSE SOLUTION: I'd recommend building a vending machine app. Although this app is ranked as a medium cost to Google, I believe it will have a high customer impact out of all the options. Additionally, this app will serve as multi-purpose and also be used by vending machine stockers and even the vending machine suppliers, which will be an additional benefit to Google as well / should help offset some of the cost. Finally, given that Google's overall mission is to provide user's access to the world's information, an app that allows a user better insight into vending machine inventory is in line with that mission. The app will allow a customer to:
1. Login with their Gmail account with Single Sign On
2. Choose their hotel
3. See a list of vending machines in their hotel and potentially their neighborhood (i.e. close by in other hotels)
4. See a list of items offered in the vending machine with current inventory levels (App must be linked to "smart" vending machine that can tell it when inventory has changed, etc.)
5. See Google ads (Potential way for Google to make money off ad revenue from the app. Google could also build a digital screen on the vending machine to run these ads as well.)
6. Additional features post MVP of app launch:
  1. Reserve item for 24 hours (i.e. prevent items from being sold, so customer can purchase item)
  2. Comment on items received (1-5 stars, review, etc.)
  3. Link items with Google Pay (Potentially user does not pay at vending machine. Could just pay via app OR vending machine purchases are automatically logged in app if using Google Pay, etc.)
  4. Vending machine stockers interface: allow stockers to review their inventory and purchase items for reorder, etc. (Will not describe in too much detail as they are not original user group.)
METRICS:
1. # of users who download app
2. # of users who engage with app (i.e. # of logins / month or # of vending machines reviewed)
3. # of users who reserved or paid via app (i.e. post MVP)
LIMITATIONS:
1. App will need to be linked to inventory in vending machine. Connection must be very strong so as not to mislead a user about inventory levels.
2. If hotel has other vending machines on premise, use will not see them in app.
3. App only works with smart phones. Caters to younger / more digitally savvy audience.
4. Design of vending machine / vending machine app right now is product neutral; however, different considerations may need to be accounted for depending on items stocked in vending machine. For example, if vending machine is stocking perishable food, inventory may need to remove expired items.

ajayg · Answer 2 · 2021-02-15T22:36:15+0000

What will the machines vend? Snacks, drinks, ice, electronics? You decide you are the PM

These are vending machines in hotel/motel lobbies and common areas in each floor.

Do we already have vending machines in these places and we are thinking of upgrading them or this is a new venture for the company? If we already have them, what is not working with the existing machines?

Does the vending machine company own the merchandising of the products that it vends?

Does the company have a goal around vending machines? You are the PM you decide

The goal is to increase usage and as a result drive more revenue to the business.It is like merchandizing products.

Let’s identify the personas involved

The hotel/motel owner who is placing these machines
The customer who uses these machines and the staff of the hotel/motels
The company who stocks up the supplies for the vending machine
The vending machine company

Let’s pick one user group, I will go for the end users or customers who use the vending machines, they could be guests, hotel or motel staff. The reason I picked this group is because they are the largest number of users.It is directly tied to the goal of driving higher usage and increased revenue.

Let us go through a customer journey and painpoints in the journey

User Journey	Painpoints
Customer is feeling hungry, they want a quick snack from the vending machine in the hotel lobby	Customer needs to have the exact denomination for the vending machine. If the guest is visiting from a foreign country they may not be aware of the denominations
The customer deposits the change in bills and coins into the machine and enters their choice	The vending machine is out of the particular snack or beverage that the customer want. There is no indication to the customer prior to the selection.
The machine vends the product and the customers collects it	The product is stuck in the vending machine
The machine vends the balance change if any. The customer gets the change in coins	There may be machines that require the exact change to ge deposited

Let’s pick a paintpoint and go deeper into the solution, paint poins 1 & 2

#	Solution	Value to the user	Effort	Metrics
1	Accept no touch payment (Gpay, Apple pay)	High	Medium	# of no touch transactions in a given period
2	App that shows the vending machines in the hotel and the stock level of product. This could also be a feature within the hotel’s app so customers do not have to download yet another app	High	High/Medium	# users accessing the vending machine information in the app # of downloads of the separate app
3	Ability to reserve an item from a particular vending machine for a short period of time (1 hour)	Medum	High	# of products reserved
4	Vending machine provides a realtime inventory of products to the hotel and vending machine company	High	Medium	# of out of stock notifications
5	Vending machine that can support interchangeable products ie snacks or drinks		Medium	# of units sold per period. Sales per period
6	Support both hot and cold beverages depending on the season (hot or cold coffee)	High	High	# of units sold per period. Sales per period
7	Robotic vending machine that delivers the snack or beverage to your room	High	High	# of units sold per period. Sales per period

For the MVP, I would pick 1, 4, 2 for the first launch, this aligns with the painpoints 1&2

To summarize, we will design a vending machine that is connected to the internet, that can accept no touch payments and as a customer you can look up the items stocked in vending machine from an app.

Madhavi Jha · Answer 3 · 2022-04-01T00:07:34+0000

Business objective - Design vending machines for hotel/motel to improve the revenue and sales.

Clarifying questions -

what specific kind of hotels like those having casinos, etc? usual hotel

What is the timeline we are looking at- any time constraints? Nothing

Is the company ready to increase cash flow to realize the profits in the long run? Yes

Is the vending machine to be used by adults or children - both

Oportunities/Painpoints

1) People don't know what items they can order from vending machine until they go to machine.

2)Vending machines are static and ,avalable at fixed locations within hotel. Customers may have to work across floors to access the machine. It is especially inconvenient when they realize they are thirsty and need to go to vending machine in the middle of sleep to get water or if hungry then go get snacks.

3) Some vending machines only accept cash or coins and no cards for which users need to have cash or coins.

4) Users can carry only limited number of items as they need to physically carry the items and cannot bulk order at once.

I would like to take some big bets here. I would like to create an app which can be used by users (via room TV) can check the items available to order and pay online via Gpay, credit card or bill to room to place order. The order will require room number and Last name of the guest as mandatory fields to deliver the items. We will leverage mini-robot cars to deliver the items to request room number. In the age of self-driving, deploying robocars to deliver items to pre-designated hotel room should be possible.

Things to take care would be to make sure that robocars don't cause any collision or injury to kids or adults at hotel/motel.

As a next step, I would like to integrate it to alexa, google voice.

Nicole2021 · Answer 4 · 2021-03-06T22:10:06+0000

Clarify

Is there any additional background on rationale behind the need for this new line of vending machines - eg. any particular line of product, customer need, or segment of hotel/motel we should consider? [no]
Is it fair to assume that our vending machines should focus on items other than soda and water, as those needs will be served by the existing vending machines? [yes]
Do we have any stated goals for this new product line? [you can assume]

Goals

Potential goals we should consider are aquisition, usage, and revenue.
Given this is a new product line, I'm going to assume that our focus will be on customer aquisition - we will design a product that will encourage hotel/motel customers to adopt.

User groups

Potential users of the vending machine are as follows:

Business travelers - may be in a location for as little as one time to a week or more. Likely gone during the day, and at the hotel at night. May be a frequent / sophisticated traveler.
Families traveling - Likely includes children and adults who are traveling for vacation. Despite their best efforts, it may be hard to pack everything they need for a trip.
Solo travelers - May be someone looking to discover a new place and focused on maximizing their trip, thus may be out of the hotel for a large part of the day and evening.

Recommendation is to focus on families traveling as their needs may be variable and it's also a large customer segment.

User journey and pain points

Family checks in to a hotel at the beginning of their vacation
Kid wakes up early and wants to eat breakfast before the resturaunt is open
- PP: Kid is hungry but no options to eat
Family decides to go swimming at the hotel pool after breakfast but forgets swimming goggles for the kid
- PP: No easy way to get swimming accessories without having to go to the store
Kid throws tantrum in afternoon after sightseeing and family wants to pacify him
- PP: would be great to distract kid but don't have normal toys available
At night, family returns from a long day and wants a restful sleep
- PP: normal bedtime routine with stories, milk, and a bubble bath are not available

Pain point rating

No breakfast options to heat - High
Forgot swimming accessories - Med
No toys available - High
Bedtime routine distupted - High

I'd like to focus on the pain point around the bedtime routine, as being able to maintain that is relevant to all families with young kids and can drive customer satisfaction.

Solutions

Bedtime toys/luvies - teddy bear, blanket
- Impact - high
- Effort - low
- Priority - must have
Bedtime snacks - warm milk, cookies
- Impact - high
- Effort - medium
- Priority - should have
Bedtime stories - could focus on local authors
- Impact - high
- Effort - medium
- Priority - should have
Bedtime bath ritual - stock favorite bath toys
- Impact - medium
- Effort - low
- Priority - nice to have

Recommendation to focus on bedtime toys/luvies due to impact to customer segment and level of effort required. Could consider partnering with toy companies to introduce customers to new toys intended to provide comfort such as projectors which project stars on the ceiling or solar system. Additional items that the machine should consider stocking are warm milk and curated stories from local authors which can drive satisftaction and differentiation. A roadmap item would be to extend the inventory to include bath toys.

Metrics

Primary metric - orders/installations of new vending machines in hotels/motels
Secondary metrics - unit sales of various vending machine products, revenue, costs, customer reviews mentioning new vending machines, stock / supply

Summary

Identified aquisition as our goal, identified and selected a customer segment, walked through the customer journey and identified and prioritized pain points, identified 4 different solutions and rated options by impact effort and prioritized for the recommendation.