Dial-a-Coke

In Japan, consumers are buying plane tickets with their wireless phones. In Hong Kong, college kids are buying Coke. The Finns, meanwhile, are buying nearly everything. And in the near future, Americans will be able to "dial-a-Coke."

That's the name Coca-Cola and Marconi have given the intelligent vending process they're developing.

"We had been working with Coca-Cola on how they could improve the efficiencies of their vending machines for some two or three years," said Brian Quarendon, the Marconi Commerce Systems vice president responsible for Marconi Online, the Atlanta division heading up the project with Coke.

Marconi developed an intelligent vending system for Coke that has been trialed in Hong Kong, Poland, the United Kingdom and the United States. This past September, the companies got serious about the venture, Quarendon said.

Marconi already has put 65,000 Coke vending machines online: 45,000 in Australia and New Zealand and 20,000 in the United States with Coca-Cola bottlers in cities including Atlanta; Orlando, FL; and Tampa, FL. The 5-year plan calls for 500,000 intelligent vending machines. That's about 16% of Coke's three million worldwide, said Trey Paris, Coca-Cola manager of global communications.

The first phase, putting 65,000 machines online, involved installing an interface unit that transmits information about inventory and machine damage to the bottler. The second phase, which allows dial-a-Coke, will be operational in about 18 months, the companies said. Interactive screens also will be mounted on the vending machines.

Quarendon and Paris said that talks are under way with wireless providers. Dial-a-Coke requires two tiers of service: one to carry the data from the machine to the bottler, and another to provide consumers with the ability to select and pay for drinks with their phones.

Marconi currently is talking to other companies about wireless e-commerce (m-commerce) applications.

"We can't tell you who they are at the moment," Quarendon said. "But we are dealing with a number of companies in the similar vending industry. It won't be a soda-based drink. We have an exclusive deal with Coca-Cola. When you work with a partner like that, you want to give them the technology edge."

What does the future of m-commerce hold? Quarendon thinks consumers will eagerly pay with their mobile phones for items costing under $10. But, he said, "people will be very cautious about using this for the macro-payments above $10. A lot of people are discussing this. We are because we have a large fueling business. We are looking at payments for petrol on your phone. People are wanting to do it and would if they had the option. The roll-out may be a little slower until we get the security modules associated with the phones, and they're probably not going to be ready until next year. Once the security is there, you'll get more people willing to use their phones for (larger) payments."

Paris called intelligent vending a "real win-win for the Coca-Cola system and for the consumer."