The document evaluates the market potential and go-to-market strategy for e-commerce sales of standard motors. It finds that while other motor brands sell some products online, the selection is limited and customers have questions about product details and authenticity. However, GE has launched a mobile app for customers to access technical information, quotes, and orders for motors and generators. The document also analyzes factors affecting business-to-business purchases online for standard motors, finding that fast delivery, credible product information sources, and easy-to-use websites are very important to buyers.
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1. EVALUATION OF MARKET POTENTIAL
AND GO TO MARKET STRATEGY FOR
E-COMMERCE FOR
STANDARD MOTORS
RAJAT GARG | NEHA AGGARWAL | DONGALA SSSK TEJA
TEAM SYNCHRO01-04-2016 1
3. TEAM SYNCHRO01-04-2016 3
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
F
I
N
D
I
N
G
S
1
2
3
4
5
6
7
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
4. TEAM SYNCHRO01-04-2016 4
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
5. TEAM SYNCHRO01-04-2016 5
PRIMARY RESEARCH METHODOLOGY
Rank each of these on a scale: Very Important, Important,
Would like if available (Not so important), Indifferent1
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
6. TEAM SYNCHRO01-04-2016 6
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 Indifferent
0%
30%
50%
20%
Purchase Recommendation
Very Important Important
Not So Important Indifferent
7. TEAM SYNCHRO01-04-2016 7
RESULTS- QUESTION 1
50%
40%
10%
0%
Cross Channel Product Information
Very Important Important Not So Important Indifferent
40%
50%
10%
0%
Cross Channel Activity 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
8. 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
SelfServingAccounts .861 .492 .118 -.021
DownloadProductInfo .782 -.078 -.020 -.516
PurchaseRecommendation .412 .715 .174 .444
ScheduledDelivery .278 .872 .327 -.051
FACTOR ANALYSIS- 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
SCHEDULINGTRACKING
AUTHENTIC
INFORMATION
RETURN/
EXCHANGE
9. TEAM SYNCHRO01-04-2016 9
PRIMARY RESEARCH METHODOLOGY
Rank each of these on a scale: Very Important, Important,
Would like if available (Not so important), Indifferent2
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
11. 01-04-2016 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
SIGNIFICANT
As per our analysis, suppliers 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-sided)
Exact Sig. (2-
sided)
Exact Sig. (1-
sided)
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 Valid Cases 10
a. 3 cells (75.0%) have expected count less than 5. The minimum expected count is .30.
b. Computed only for a 2x2 table
12. Factor-2: Credible Product
Information Source
01-04-2016 TEAM SYNCHRO 12
FACTORS AFFECTING B2B BUYER LOYALTY FOR SIEMENS
As per our analysis, suppliers 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-sided)
Exact Sig. (2-
sided)
Exact Sig. (1-
sided)
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 Valid Cases 10
a. 4 cells (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-
sided)
Pearson Chi-Square 5.238a 2 .073
Likelihood Ratio 6.672 2 .036
Linear-by-Linear Association 4.714 1 .030
N of Valid Cases 10
a. 6 cells (100.0%) have expected count less than 5. The minimum expected count is .30.
13. 01-04-2016 TEAM SYNCHRO 13
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
14. TEAM SYNCHRO01-04-2016 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
15. TEAM SYNCHRO01-04-2016 15
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
16. TEAM SYNCHRO01-04-2016
16
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
17. 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
TEAM SYNCHRO01-04-2016 17
ADVANTAGES OF E-COMMERCE FOR SIEMENS