Post on 13-Apr-2017
EVALUATION OF MARKET POTENTIAL AND GO TO MARKET STRATEGY FOR
E-COMMERCE FOR STANDARD MOTORS
RAJAT GARG | NEHA AGGARWAL | DONGALA SSSK TEJA
TEAM SYNCHRO 30-11-2016 1
TEAM SYNCHRO 30-11-2016 2
INDUSTRY OVERVIEW
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CROMPTON GREAVES/ABB/BHARAT BIJLEE/SIEMENS/GE
All are selling motors, pumps, drives, starters online on “industrybuying.com”
“Snapdeal.com” too has pumps, washing machines, motors from some of the brands. Very limited SKUs
These are sold by distributors/retailers and not directly by the companies on the popular marketplaces like flipkart and snapdeal
Most of the questions asked and reviews given on the e-commerce marketplaces are by individual buyers.
No complaints were noted due to delivery problems or logistics issues which shows that delivery and logistics are not a problem
There is a constant problem regarding suitability of product for the specific customer needs which gives rise to multiple questions and negative reviews in case of underperformance due to wrong purchases
It is also noted that sellers of branded products online try to get the customer to purchase directly from retailer personnel or distributor website by sharing these details as an answer to customer queries
The entire range of products is not available online on these third party platforms. Difficult to find motor of right specifications since filters on these platforms do not give motor parameter filtering options. Most of the questions asked on these platforms are about specifications as the user is not able to get all his doubts cleared from the specifications shared online. Authenticity of products is questionable as some of the questions asked by prospective buyers are about authenticity
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THE APP
GE launched the Motor and Generator Store for customers to quickly access key technical information , obtain quotes &
order products
KEY FEATURES
Pricing Availability
Features Specifications
Ordering Tracking
Reviews Ratings
ADDITIONAL OPTIONS
Straight quotes if they are using or stocking machines
Quoting on behalf of their customers (if they are OEMs or
distributors)
SUPPORT OPTIONS
Library of product literature, white papers and maintenance
manuals.
Base ratings and data packs, which contain specifications,
performance data, speed/torque curves, line
drawings, wiring diagrams and engineering notes.
GE MOTOR & GENERATOR STORE
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FEASIBILITY FRAMEWORK Serve Me Buyer Order Taker
Sales Model
• May or may not require human intervention
• Customers questions are best addressed online
PERFECT FOR DIGITALLY ENABLED SALES
MODELS
Show Me Buyer Explainer
Sales Model
• Budget oriented purchasers with a pre-defined sales path to follow
• Explainers help buyer navigate information, compare products and reach final decision
NOT SUITED FOR DIGITAL SPACE
Guide Me Buyer Navigator
Sales Model
• Know what they want to buy, but may need help from a sales person in mapping, navigating and orchestrating multiple stakeholders and/or budget resources. CAN BE CUSTOMISED FOR DIGITALLY
ENABLED SALES MODELS
Enlighten Me Buyer Consultant
Sales Model • Never individuals but multiple
stakeholders involved in a complex buying environment
• The buying team may be undecided or unaligned as to what they need, who best to buy it from, and how to finesse the entire process. CAN BE CUSTOMISED FOR DIGITALLY
ENABLED SALES MODELS
Standard Motor purchasers fall
under the ‘Serve Me Buyer’
category
Standard Motor manufacturers &
distributors need to focus on the ‘Order Taker’ sales model
SELLING STANDARD MOTORS ONLINE IS A FEASIBLE SALES
MODEL
TEAM SYNCHRO 30-11-2016 5
PRIMARY RESEARCH METHODOLOGY
Rank each of these on a scale: Very Important, Important, Would like if available (Not so important), Indifferent 1
“How important
are the following when you
are making work-
related purchase online?”
• Deliver the next day • Make real-time inventory information available
online • Self-service my account and orders • Download product information and sales sheets • Schedule delivery by time of day • View recommendations based on past purchases and
my interests/ profile • Look up product information (across any channel) • View my activities across all channels • Return or exchange across different channels • Share unified account and order history across
channels
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RESULTS- QUESTION 1
70%
10%
10% 10%
Real Time Inventory
Very Important Important
Not So Important Indifferent
10%
20%
70%
0%
Next Day Delivery
Very Important Important
Not So Important Indifferent
70%
30%
Self Serving Accounts
Very Important Important
Not So Important Indifferent
0%
80%
10% 10%
Scheduled Delivery
Very Important Important
Not So Important Indifferent
0%
40%
50%
10%
Downoad Product Information
Very Important Important
Not So Important Indifferent0%
30%
50%
20%
Purchase Recommendation
Very Important Important
Not So Important Indifferent
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RESULTS- QUESTION 1
50%
40%
10%
0%
Cross Channel Product Information
Very Important Important Not So Important Indifferent
40%
50%
10%
0%
Cross Channel Account Information
Very Important Important Not So Important Indifferent
90%
10%
0% 0%
Cross Channel Return/Exchange
Very Important Important Not So Important Indifferent
10%
70%
20%
0%
Cross Channel Account Information
Very Important Important Not So Important Indifferent
WHAT FACTORS AFFECT PURCHASE OF STANDARD MOTORS
Total Variance Explained
Component
Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
1 4.512 45.118 45.118 4.512 45.118 45.118 3.570 35.699 35.699
2 2.168 21.676 66.794 2.168 21.676 66.794 2.362 23.618 59.317
3 1.448 14.477 81.271 1.448 14.477 81.271 1.914 19.145 78.462
4 1.045 10.449 91.720 1.045 10.449 91.720 1.326 13.258 91.720
5 .562 5.624 97.344
6 .232 2.317 99.661
7 .034 .339 100.000
8 3.602E-16 3.602E-15 100.000
9 -1.159E-16 -1.159E-15 100.000
10 -4.872E-16 -4.872E-15 100.000
Rotated Component Matrix
Component
1 2 3 4
CrossChannelProductInfo -.034 .863 -.023 -.388
CrossChannelActivityInfo .176 .094 .926 .179
CrossChannelReturnExchange -.152 -.162 .086 .820
CrossChannelAccountInfo .075 -.161 -.936 .033
NextDayDelivery -.967 -.155 -.138 .051
RealTimeInventory .986 .115 -.046 .004
Sel fServingAccounts .861 .492 .118 -.021
DownloadProductInfo .782 -.078 -.020 -.516
PurchaseRecommendation .412 .715 .174 .444
ScheduledDelivery .278 .872 .327 -.051
FACTOR ANALYSI- QUESTION 1
Factor 1: Next Day Delivery & Real Time Inventory Factor 2: Cross Channel Product Info & Scheduled Delivery Factor 3: Cross Channel Activity Information Factor 4: Cross Channel Return Exchange
ON TIME DELIVERY
SCHEDULING TRACKING
AUTHENTIC
INFORMATION
RETURN/ EXCHANGE
TEAM SYNCHRO 30-11-2016 9
PRIMARY RESEARCH METHODOLOGY
Rank each of these on a scale: Very Important, Important, Would like if available (Not so important), Indifferent 2
“To what extent do you agree or disagree with the following statements
regarding your work-related purchases?
I buy again from
the same supplier if I find
they have a”
• Consistently have the lowest prices • Excellent customer service • The broadest selection of products or
services • The most credible source of product
details and information • An easy-to-use website • The fastest delivery/shipment
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RESULTS – QUESTION 2
90%
10%
0% 0%
Fast Delivery
Strongly Agree Agree Slightly Agree Disagree
50%
40%
10%
0%
User Friendly Website
Strongly Agree Agree
Slightly Agree Disagree0%
70%
30%
0%
Product Detail Source
Strongly Agree Agree Slightly Agree Disagree
10%
60%
30%
0%
Product Selection Variety
Strongly Agree Agree Slightly Agree Disagree
80%
20%
0% 0%
Customer Service
Strongly Agree Agree Slightly Agree Disagree
10%
10%
60%
20%
Low Prices
Strongly Agree Agree
Slightly Agree Disagree
30-11-2016 TEAM SYNCHRO 11
FACTORS AFFECTING B2B BUYER LOYALTY FOR SIEMENS 6 factors
that are widely speculated to induce buyer loyalty in B2B purchases
Consistent Low prices
Fastest delivery/ shipment
Excellent customer service
Easy to use
website
Broadest Selection
of products and
services
Most credible
source of product
information
SIG
NIF
ICA
NT
As per our analysis, supplier’s fastest delivering capability among the competitors emerged as a very significant factor for its customers to stick to a particular manufacturer [Chi-square test is showing a significant association at 89.3% confidence level]
Factor-1: Fastest Delivery/ Shipment
Chi -Square Tests
Value df
Asymptotic
Significance
(2-s ided)
Exact Sig. (2-
s ided)
Exact Sig. (1-
s ided)
Pearson Chi-Square 2.593a 1 .107
Continuity Correctionb .212 1 .645
Likelihood Ratio 2.683 1 .101
Fisher's Exact Test .300 .300
Linear-by-Linear
Association 2.333 1 .127
N of Val id Cases 10
a. 3 cel ls (75.0%) have expected count less than 5. The minimum expected count is .30.
b. Computed only for a 2x2 table
Factor-2: Credible Product Information Source
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FACTORS AFFECTING B2B BUYER LOYALTY FOR SIEMENS
As per our analysis, supplier’s credibility to provide product details emerged as a very significant factor for its customers to choose that manufacturer [Chi-square test is showing a significant association at 90.2% confidence level]
Chi-Square Tests
Value df
Asymptotic
Significance
(2-s ided)
Exact Sig. (2-
s ided)
Exact Sig. (1-
s ided)
Pearson Chi-Square 2.744a 1 .098
Continuity
Correctionb .816 1 .366
Likelihood Ratio 2.657 1 .103
Fisher's Exact Test .183 .183
Linear-by-Linear
Association 2.469 1 .116
N of Val id Cases 10
a. 4 cel ls (100.0%) have expected count less than 5. The minimum expected count is
.90.
b. Computed only for a 2x2 table
Factor-3: Easy to use e-procurement website
This factor turned out as the most significant factor among the six factors under test [Chi-square test is showing a significant association at 92.7% confidence level]
Chi -Square Tests
Value df
Asymptotic
Significance (2-
s ided)
Pearson Chi-Square 5.238a 2 .073
Likelihood Ratio 6.672 2 .036
Linear-by-Linear Association 4.714 1 .030
N of Val id Cases 10
a. 6 cel ls (100.0%) have expected count less than 5. The minimum expected count is .30.
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FACTORS AFFECTING B2B BUYER LOYALTY FOR SIEMENS
E-procurement portal enables a faster delivery
channel
E-procurement portal itself positively impacts
the buyer loyalty
E-procurement portal increases the access and
credibility of product information supplied by
the Siemens
Insights from Market Research on Buyer Loyalty Factors
TEAM SYNCHRO 30-11-2016 14
PRIMARY RESEARCH METHODOLOGY
Select only 3 from the given options 3 “Of the
following, which three
features/ functions would you most like
your suppliers to
offer?”
0 10 20 30 40 50 60 70 80 90 100
Search Function on Website
Product Recommendations on Website
Product Ratings on Website
Product Recommendation by Manufacturer
Backend Integration with Manufacturer
Selection Percentage
• Enhanced search functionality on their website • Showing ratings and reviews of products/services • Improved personalized product or service
recommendations on their website • Integration with our back-end finance, accounting, OMS, or
ERP systems • Merchandising/recommending relevant products and
services
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PRIMARY RESEARCH METHODOLOGY
4
“Which of the
following purchasing
options have you used for
work-related
purchases?”
• Use of credit or debit card • Payments via accounts payable utilizing invoices/ purchase
orders (POs) • Use of online payment services • Purchases through e-Procurement portal
Choose only one from the options given below
0%
20%
10%
70%
Percentage of Users
Credit/Debit Card Account Payable Online Payment e-Procurement
TEAM SYNCHRO 30-11-2016
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STANDARD MOTOR CONSUMERS CHANNEL PREFERENCE
Large Corporate Houses, OEMs and Contract Purchasers
•Will prefer one on one interaction during the buying cycle
• Large volume purchases more bargaining, more discounts
• Low probability of using e-channel to place order
Distributors
• Want to deal with the company sales department directly for purchase
• Would like to have a e-channel to track order, get more details about products, etc.
• Would not mind if Siemens were to create an e-marketplace for them to sell online
Individual Buyers and Small Distributors/Retailers
• E-Commerce friendly- OUR TARGET CUSTOMER
• Small Amount Purchases Low Volumes Need Best Price Assurance
• Purchase online if present in remote locations and no direct contact with distributor
Independent Exchange Consortia Based Exchange Private Exchange
Allow distributors to sell on independent platforms to
increase volume sales
Create a private platform for distributors to manage and
track sales, monitor inventory. Eventually give buying options
on this platform Do not go for Consortia Based
Exchange
Focus on improving service to distributors by empowering them with smart e-tools for a better purchase experience Provide a marketplace to small retailers and individual consumers to buy at the best price from the distributors
Advantages
Standardization of order prices and monitoring of distributors
Electronic Invoicing
Distributor Scorecards
Sharing of Engineering Documents
Logistics Planning Made
Easier
Online quoting of orders, price
negotiation cycle time reduced significantly
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ADVANTAGES OF E-COMMERCE FOR SIEMENS
THANK YOU
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