GMM! team project

Reverse Vending Machine is a device that exchanges used and empty beverage containers with money or tickets with economic value. The machines are mainly used in locations where the legislation imposes recycling processes. In the ongoing years it brought great results in terms of return rates (70% to 100% of total beverages sold). The collection system is totally automated, and the cost for collecting the cans is very low. In addition to this product, after-services are also provided in order to build an entire solution.

After analysing the three levels of the product, we can conclude that:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1. The core product: It is a Marketing tool. The customer doesn’t buy the machine because the technology or the innovation itself, but because of the Value that it provides.
    

2. The actual product: It is the Reverse Vending Machine as well as backroom equipment.
    

3. The augmented product: Is the service offered and customization.

As mentioned before in the Strategy Section (link), The Reverse Vending Machine is an industrial and standardized product. Both the core and concrete product are standardized, but the augmented part has slight adjustments to foreign markets. By having a standardized product, we can infer that TOMRA has a production platform. With this, the company is constantly saving the costs when it produces more of the same machines, so it reaches economies of scale. Due to the adjustments to the local demands, TOMRA is not in danger of over-standardizing their product.

 

The number and models of Reverse Vending Machines will vary depending the customer needs and space designed to their location.

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Life Cycle:

 

The industrial product management is a continuous process which demands constant modifications due to the changes within technology, the market and the competition.

 

In this way, TOMRA’S products are in the initial phase of the product cycle, however all the products come to the declining phase, TOMRA is a company that is always innovating and changing the technology adding differentiation to their products, as long as there are bottle and cans in the market this product will never exit the market.