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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
TEAM SYNCHRO01-04-2016 2
INDUSTRY OVERVIEW
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
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
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
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
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
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
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
TEAM SYNCHRO01-04-2016 10
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 Disagree
0%
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
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
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.
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
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
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
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
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

More Related Content

Final PPT

  • 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
  • 10. TEAM SYNCHRO01-04-2016 10 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 Disagree 0% 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
  • 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