CONTENTS

INTRODUCTION ............................................................................................................................................. 2
OUTLINE BACKGROUND............................................................................................................................ 2
PURPOSE OF THE STUDY ........................................................................................................................... 3
PROBLEM STATEMENT.............................................................................................................................. 3
COMPANY INFORMATION ............................................................................................................................ 4
BACKGROUND ........................................................................................................................................... 4
PRODUCT & SERVICES ............................................................................................................................... 5
MARKETING & OPERATIONAL STRATEGY ............................................................................................... 11
FINANCIAL ACHIEVEMENTS .................................................................................................................... 11
COMPANY ANALYSIS ................................................................................................................................... 12
SWOT ANALYSIS ...................................................................................................................................... 12
STRENGTH ........................................................................................................................................... 13
WEAKNESSES....................................................................................................................................... 14
OPPORTUNITIES .................................................................................................................................. 15
THREATS .............................................................................................................................................. 16
CUSTOMER TREND CANVAS.................................................................................................................... 17
FINDINGS AND DISCUSSION .................................................................................................................... 18
CONCLUSION........................................................................................................................................... 19
REFERENCES ............................................................................................................................................ 20

1
INTRODUCTION

OUTLINE BACKGROUND

As technology advances, vending machines get more sophisticated. Today, there are
machines with touchscreen technology, cashless payment and etc. All this advance features are
mainly to attract customer to use the vending machine. One company offering such vending
machines is Adamo Vending Machine Sdn Bhd. Since its establishment in 2008, it has installed
more than 30 per month such vending machines in the Klang Valley and is in the process of
installing more across the territory.

Vending machine being an important part of community need nowadays as it shows that the
percentage of installation of the vending machine in hotspot area increase drastically in past few
years. It provides user with instant choice of food and drinks during rush hour. Adamo Vending
Machine Sdn. Bhd. has caught our attention as they are growing from time to time as a first
Bumiputera vending supplier.

Many company nowadays took advantage of the advancement of technology to compete with
others. Since the demand received from Adamo Vending Machine Sdn. Bhd. are higher, the uses
of advance technology are also required for them to meet up user expectation.

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PURPOSE OF THE STUDY

Innovation and technology are resources for corporate profitability and growth. Nowadays, many
entrepreneurial firms are increasingly turning to technological innovations to develop new
product, new market, to improve quality and customer service, and lastly to retain customer
loyalty.

Purpose of this paper are to identify how the advancement of technology affected the user
interest. In order to achieve the purpose we have conducted proper document review and some
observation about Adamo Vending Machine Sdn. Bhd.

PROBLEM STATEMENT

Although there are few advancement of technology implied on vending machine there are still a
few major problems occurred. The first major problem faced by vending machine manufacturer
nowadays are vandalism threat due to less supervision. Second issues faced are limited in
design, due to limited space available on vending machines. Finally the problem faced by
Adamo Vending Machine Sdn. Bhd are limited source of fund during early start of business.

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COMPANY INFORMATION

BACKGROUND

Adamo Vending Supply Sdn Bhd has started in 2008. Their company is engaged in the service
industry. They strongly feel that customers can only be fully satisfied if the service quality remains
top notch. Adamo’s specialist in Vending Machine supply and service. They also provide coffee
machine for factory, office, and domestic use. Furthermore they supply and service water filter.
Such as outdoor filter, below sink RO system, table top and floor standing unit.

As they are in vending machine operator, they supply instant drinks to ease the customers. They
do carry few type of drinks that meet their clients' interests such as chocolate, energy drinks,
tongkat ali, and more. They provide with regular replenishment of quality ingredients, cleaning,
servicing and maintenance of vending as well as collection of sale proceeds. With their well-
known products, they believe it will benefit their clients in terms of service and quality.

Through the strategic element of quality in every aspect of our service, the vision of Adamo
Vending Supply is to be one of the best Bumiputera Company in vending machine operator. Their
vision is to train and provide expertise and training to bumiputera workforce in the technical,
marketing and administration in line with industry development. They strongly feel that customers
can only be fully satisfied if the service quality remains top notch. To achieve this, the company
has adopted the philosophy that service must be sincere and from the heart; hence their motto is
"NOW OR NEVER".

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PRODUCT & SERVICES

1. Can Vending Machine

This product provide users with variety choice of can drinks. Adamo Vending Machine Sdn.
Bhd. used refurbished unit imported from Japan. This machine can fit up to 468 cans per
time. They also provide variety model which each model have difference capacity. Some of
the model are:

 ADM25 : has 25 selection buttons and can fit 425 cans & bottles
 ADM30 : has 30 selection buttons and can fit 504 cans & bottles
 ADM36 : has 36 selection buttons and can fit 612 cans & bottles
 ADM42 : has 42 selection buttons and can fit 720 cans & bottles

Can Vending Machine

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2. Cup Vending Machine
This product provide users with option whether to go with hot or cold drinks. It is also
refurbished machine imported from Japan. It can produced cold drink since there is an ice
maker inside the machine. This machine can put any drink such as coffee, milo, tea, and
etc. can dispense up to 600 cups.

Few model of cup vending machine

This model can produce both hot and cold drinks

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3. Snack vending machine
Adamo Vending Machine Sdn. Bhd. supply one of the advance snack vending machine
with touch screen features. There also provide customer with few option of vending
machine. Below are specs for the snack vending machine:

Specification for Snack Vending Machine

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Snacks Vending Machine Available at Factory

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4. “SPLASSHY” vending machine
SPLASSHY is Adamo new product. They come in two option, either metal plate body or
stainless steel frame. This product focus on supplying filtered mineral water to users. This
product have an advance technology in producing healthy Ph value (Alkaline) for mineral
water.

Y210 BODY 1.0mm METAL PLATE SUS 304 BODY (STAINLESS STEEL)

Technology used to filtered the water and produced alkaline water

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 5. Coffee Vending Machine
Adamo produced this product and supply most to the company around Klang Valley. Many
company choose this product because of the user friendly design very compatible. This product
come with two different specification:

OPTION 1

OPTION 2

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MARKETING & OPERATIONAL STRATEGY

Adamo’s operational and marketing strategy focuses more on bumiputera’s entrepreneur who
wants to start a vending machine business. They will help bumiputera entrepreneur and give them
the lowest startup package and teach them about marketing. They also put an attractive sticker
that attach on machine body to get the crowd attention especially for the target person.

Adamo’s also expand their name and brand mostly on expo such as MAHA, FLORIA and
HALFEST. Their operational strategy also should be complimented because their prospect
customer is mainly from Klang Valley area and their new factory location is in Sg. Puloh, Klang.

Mr. Kabul as Adamo’s founder also actively inviting people on social media to join their talk
regarding the product. They also developed a website to advertise their product. By doing this it
is easier for people to browse more about their company.

FINANCIAL ACHIEVEMENTS

Adamo Vending Machine Sdn. Bhd. refuse to expose their financial report. But they shows a
progressive improvement since day 1. This can be projected from their success of upgrading
their factory from as small as 1900 sqft to 22000 sqft 3-storey building in 8 years. Their output
also increasing since they start up and now they producing more than 60 vending machine per
month.

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COMPANY ANALYSIS

SWOT ANALYSIS

STRENGTHS WEAKNESSES

a) Good marketing plan a) Limited in design

b) Top 10 well-known vending machine b) Vandalism
companies in Malaysia c) Limited funds
c) Good return in investment
d) High quality products

SWOT
OPPORTUNITIES THREATS

a) Cashless vending machine a) Price wars with competitors

b) Joint ventures programme with b) Competitors in the same market
investors c) Competitors develop new design
and innovative product

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STRENGTH

a) Good marketing plan

ADAMO VENDING SUPPLY SDN BHD implement a good marketing plan which drives
their company to the higher achievement nowadays. The marketing plans are by having
an attractive sticker that attach on machine body to get the crowd attention especially for
the target person. Other than that, the company creates a great opportunity for the
customers to win something from the sales once in a while. Lucky customers will receive
their merchandise with bank note attached or an IPad Mini.

b) Top 10 well-known vending machine companies in Malaysia

ADAMO VENDING SUPPLY SDN BHD is a company that engaged in the service industry.
They are strongly feel that customers can only be fully satisfied if the service quality
remains top notch. The vision of the company is to be one of the best Bumiputra Company
in vending machine operator. Besides, they train and provide expertise and training to
bumiputra workforce in the technical, marketing and administration in line with industry
development which lead them to became the top 3 of the largest vending machine
company in Malaysia after Pemanis company and 100 Plus company.

c) Good return in investment

ADAMO VENDING SUPPLY says vending machines offer beginners the simplicity and
the tools they need to become profitable more quickly, with much less margin for error
than a more substantial or complex franchising opportunity. This is because vending
machines can be found at every office, universities and almost everywhere that people
use them. It is convenient and well-used. Vending machines are not going to be in less
demand any time soon. The sales can achieve to 580 tin can per day for a single machine.

d) High quality products

Vending machine is supplied straight from Japan for ADAMO VENDING SUPPLY
company. The country has the highest ratio of vending machines to landmass in the entire
world. As the country's official tourist organization points out, Japan is currently home to
5.52 million vending machines. This support that their products are well trusted to be use.

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WEAKNESSES

a) Limited in design

Vending machine is designed according to specific products. Single machine will only sell
the same types of product. It has limited design and spaces for other products to be placed
in the vending machine. This happened to ADAMO VENDING SUPPLY. They increase
the variety and quantity of goods which tend them to increase the corresponding port
number of the input and output.

b) Vandalism

ADAMO VENDING SUPPLY are facing some problems with vandalism regarding their
vending machines. Since the business is located in an open area, the machines are
exposed to the negative behavior of some people. It is something that we cannot avoid
from.

c) Limited funds

All business needs funds to build up their company. It same goes to ADAMO VENDING
SUPPLY. They started the business with only RM200 in 2008 by supplying the mineral
water to some places. Then with the help of the financial institution, they managed to reach
for the higher platform in this industry.

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OPPORTUNITIES

a) Cashless vending machine

The system runs credit validity checks online and authorised transactions within few
seconds. Towards an advanced economy where all transaction is preferred to be
cashless. It is an advantage to the vending machine as it is easier for people to buy
something. This system has been used by ADAMO VENDING SUPPLY for them to
increase their machine performance. Besides, Touch N Go system is also widely used in
certain area which they provide discount 5% for every purchases by using Touch N Go
card.

b) Joint ventures programme with investors

It such programs to enhance the vending machine business and contributes a lot to
marketing strategy. People will be more interested in joining this kind of business since it
is easy handling, quite low modal with only expected 6 months for return and the rest will
be passive income. Milo, a large and well-known company that provides and illustrates
the good influence of making ADAMO VENDING SUPPLY to join them. This creates the
greater opportunities for ADAMO company.

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THREATS

a) Price wars with competitors

ADAMO VENDING SUPPLY faced the obstacle with other competitors regarding the
price of the products. Some of the unregistered competitors sells the vending machine in
very low price and some of them sells in higher price. It is the tactic for them to earn high
profit margin. This caused the unbalance between stocks and demands from the
costumers as they will choose the lower price for the products.

b) Competitors in the same market

The production of vending machine and the products will be depending on the demands
and preferences by the customers. Company needs to be smart in the market since many
of the competitors are trying to be bold in that places. Try to find out in advance if the
owner of the place charges a site fee to have the machine on the premises. ADAMO
VENDING SUPPLY discovered competition arises if other vending outfits are willing to
pay more to place their machine on site. Owner of the place will profit from this by obtaining
a higher percentage from the sales.

c) Competitors develop new design and innovative product

Competitors tend to always come up with new developed design and innovative project,
so they must be concurrently active in planning for future in order to be on par. ADAMO
VENDING SUPPLY takes an action by updating their products from times to times in order
to provide the best and powerful vending machine.

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CUSTOMER TREND CANVAS

 Save time  24/7 service

 Cashless payment  Enjoy eat and drink with more people
 Technology improvement  Variety of choice
 Business opportunities  Easy payment

 Location
 Transportation
Vending  Crowd
Machine
 weather

 Instant order/purchase  Waiting time

 Consistent taste  Taste inconsistency
 Operated by machine  Unsatisfactory service
 Fixed price  Inconsistent price

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FINDINGS AND DISCUSSION

From the studies we found out Adamo Vending Machine Sdn. Bhd. faced few majors problem in
supplying their products such as:

1. Exposed to vandalism threat

We are told that most of their vending machine are located in open area, thus it is exposed to
negative act of public users. Due to this matter we have come out with an alternative solution to
suggest to Mr. Kabul from Adamo. One of it is, to use a surveillance cameras to monitor the
perimeter of the area. This is to avoid any potential of vandalism act to occur. Hence, Adamo
can cut the excess cost for the maintenance of defects vending machine.

2. Advancement of technology

From this study we found out that advance of technology really helps the growth of vending
machine supply in Malaysia. This is because people tend to attract to new technology. Advance
technology also ease users of vending machine. Some example of new technology used in
vending machine are, touch screen vending machine, cashless vending machine and etc. This
features can be used by Adamo in order to improve their product sales.

3. Limited in design

Adamo are having issues in providing vending machine which can sell variety product. This is
because to its limited design outcome. Most of their products are single output and input outlet.
So to overcome this matter, Adamo need to come out with vending machine which have more
output and input port so that variety products can being promoted.

4. Limited funds

This issues are faced by Adamo during their early days. They start up with only RM 200.00 by
renting machnes. We being told that many bumiputera’s are scared to take this opportunity due
to limited source of fund. So Adamo are having issues to lure in other people to start up with
them. We see this as opportunity for Adamo to help others. They should come out with a good
business layout to help bumiputera entrepreneur who interested in this. Maybe they can come
out with a low capital start up plan for anyone who interested.

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CONCLUSION

In conclusion, as we know vending machine business are growing rapidly in Malaysia since it
can ease people need to buy food and beverages during rush hour. Its simplicity and variety
choice of product fulfilled the need of current people style. In order to achieve success this
business need help of advance technology to stay compatible. That is why we can see most
Adamo product implement the new technology in their product and receive huge support from
users. It is also shows Malaysian start to implement installing vending machine at most of the
public area to ease people as we can see in Japan.

If Adamo keep on upgrading the technology on their products such as touch screen, cashless
and installing surveillance cameras it is undoubtedly can increase their quality of product. They
will also attract more bumiputera entrepreneur and investor to join them.

Finally, technology advancement really help in producing a better quality end product to
consumer. The most advance technology vending machine will help the selling of the products.
Hence, Adamo need to keep updated the changes in the vending machine’s technology.

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REFERENCES

Technology brings innovative vending machines. (2018). Retrieved from

http://www.focusmalaysia.my/Enterprise/technology-brings-innovative-vending-machines

Vending Machines Expert. (2018). Retrieved from http://www.adamo-vending.com/

Fox M, Gordon A, Nogales R, Wilson A. Availability and consumption of competitive foods in

public schools. J Am Diet Assoc. 2009;109(suppl. 2):S57-S66

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