This document evaluates the market potential and go-to-market strategy for e-commerce of Standard Motors. It analyzes the current online motor industry, finding that while major brands sell limited products on third-party sites, their full catalogs and technical specifications are not available. It also conducted primary research that found customers value real-time inventory, next-day delivery, and self-service accounts the most. The research suggests Standard Motors' customers fit the "ServeMe Buyer" category that prefers an online "Order Taker" sales model, indicating e-commerce is feasible. It identifies advantages of an e-commerce platform like standardizing prices, electronic invoicing, and improved logistics planning.

1. EVALUATION OF MARKET POTENTIAL
AND GO TO MARKET STRATEGY FOR
E-COMMERCE FOR
STANDARD MOTORS
RAJAT GARG | NEHA AGGARWAL | DONGALA SSSK TEJA
TEAM SYNCHRO30-11-2016 1

2. TEAM SYNCHRO30-11-2016 2
INDUSTRY OVERVIEW

3. TEAM SYNCHRO30-11-2016 3
CROMPTON GREAVES/ABB/BHARAT BIJLEE/SIEMENS/GE
All are sellingmotors, pumps, drives, startersonlineon“industrybuying.com”
“Snapdeal.com” too has pumps, washing machines, motors from some of the
brands.Very limitedSKUs
These are sold by distributors/retailers and not directly by the companies on
the popularmarketplaceslikeflipkartandsnapdeal
Most of the questions asked and reviews given on the e-commerce
marketplaces are byindividual buyers.
No complaints were noted due to delivery problems or logistics issues which
showsthat deliveryandlogisticsare 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 underperformancedue towrong 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
answerto customerqueries
The entire range of products is not available
online onthese thirdpartyplatforms.
Difficult to find motor of right specifications
since filters on these platforms do not give
motorparameterfilteringoptions.
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 sharedonline.
Authenticity of products is questionable as
some of the questions asked by prospective
buyersare aboutauthenticity
F
I
N
D
I
N
G
S
1
2
3
4
5
6
7
THE APP
GElaunchedtheMotor and
Generator Storefor customers
to quickly access keytechnical
information , obtain quotes &
order products
KEY FEATURES
Pricing Availability
Features Specifications
Ordering Tracking
Reviews Ratings
ADDITIONAL OPTIONS
Straight quotes ifthey are
using or stocking machines
Quoting on behalfoftheir
customers (ifthey areOEMs or
distributors)
SUPPORTOPTIONS
Library ofproduct literature,
white papers andmaintenance
manuals.
Base ratings anddata packs,
which contain specifications,
performancedata,
speed/torque curves, line
drawings, wiring diagrams and
engineering notes.
GE MOTOR & GENERATOR STORE

4. TEAM SYNCHRO30-11-2016 4
FEASIBILITY FRAMEWORK
ServeMe Buyer  Order Taker
Sales Model
• May or may not require human
intervention
• Customers questions are best addressed
online
PERFECT FOR DIGITALLY ENABLED SALES
MODELS
ShowMe 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
StandardMotor
purchasers fall
under the
‘ServeMe Buyer’
category
StandardMotor
manufacturers &
distributorsneedto
focus on the
‘Order Taker’
sales model
SELLING STANDARD MOTORS
ONLINE IS A FEASIBLE SALES
MODEL

5. TEAM SYNCHRO30-11-2016 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 SYNCHRO30-11-2016 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 SYNCHRO30-11-2016 7
RESULTS- QUESTION 1
50%
40%
10%
0%
CrossChannel ProductInformation
Very Important Important Not So Important Indifferent
40%
50%
10%
0%
CrossChannel Account Information
Very Important Important Not So Important Indifferent
90%
10%
0% 0%
CrossChannel Return/Exchange
Very Important Important Not So Important Indifferent
10%
70%
20%
0%
CrossChannel Account Information
Very Important Important Not So Important Indifferent

8. WHAT FACTORS AFFECT PURCHASE OF STANDARD MOTORS
Total Variance Explained
Component
InitialEigenvalues Extraction Sums ofSquared Loadings RotationSums ofSquared Loadings
Total % ofVariance Cumulative% Total % of Variance Cumulative% Total % ofVariance 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 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
SCHEDULINGTRACKING
AUTHENTIC
INFORMATION
RETURN/
EXCHANGE

9. TEAM SYNCHRO30-11-2016 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
regardingyour
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 SYNCHRO30-11-2016 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%
ProductDetail Source
Strongly Agree Agree Slightly Agree Disagree
10%
60%
30%
0%
Product Selection Variety
Strongly Agree Agree Slightly Agree Disagree
80%
20%
0% 0%
CustomerService
Strongly Agree Agree Slightly Agree Disagree
10%
10%
60%
20%
Low Prices
Strongly Agree Agree
Slightly Agree Disagree

11. 30-11-2016 TEAM SYNCHRO 11
FACTORS AFFECTING B2B BUYER LOYALTY FOR SIEMENS
6 factors
that are widely speculatedto induce
buyer loyaltyin B2B purchases
Consistent
Low prices
Fastest
delivery/
shipment
Excellent
customer
service
Easyto
use
website
Broadest
Selection
of products
and
services
Most
credible
source of
product
information
SIGNIFICANT
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-sided)
Exact Sig. (2-
sided)
Exact Sig. (1-
sided)
PearsonChi-Square 2.593a 1 .107
ContinuityCorrectionb
.212 1 .645
LikelihoodRatio 2.683 1 .101
Fisher's Exact Test .300 .300
Linear-by-Linear
Association
2.333 1 .127
N of ValidCases 10
a. 3 cells (75.0%) have expectedcount less than5. The minimumexpectedcount is .30.
b. Computedonlyfor a 2x2 table

12. Factor-2: Credible Product
Information Source
30-11-2016 TEAM SYNCHRO 12
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-sided)
Exact Sig. (2-
sided)
Exact Sig. (1-
sided)
PearsonChi-Square 2.744a
1 .098
Continuity
Correctionb
.816 1 .366
LikelihoodRatio 2.657 1 .103
Fisher's Exact Test .183 .183
Linear-by-Linear
Association 2.469 1 .116
N of ValidCases 10
a. 4 cells (100.0%) have expectedcount less than5. The minimumexpectedcount is
.90.
b. Computedonlyfor 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)
PearsonChi-Square 5.238a
2 .073
LikelihoodRatio 6.672 2 .036
Linear-by-LinearAssociation 4.714 1 .030
N of ValidCases 10
a. 6 cells (100.0%) have expectedcount less than5. The minimumexpectedcount is .30.

13. 30-11-2016 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
Insightsfrom Market Research
on Buyer LoyaltyFactors

14. TEAM SYNCHRO30-11-2016 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

15. TEAM SYNCHRO30-11-2016 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 SYNCHRO30-11-2016
16
STANDARD MOTOR CONSUMERS CHANNEL PREFERENCE
Large Corporate Houses, OEMs and Contract Purchasers
•Will prefer one on one interaction duringthe buyingcycle
• Large volume purchases  more bargaining,morediscounts
• Low probability of usinge-channel to placeorder
Distributors
• Want to deal with the company sales department directly for purchase
• Would liketo have a e-channel to track order, get more details aboutproducts,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 PriceAssurance
• Purchaseonlineif present in remote locations and no directcontact with distributor
Independent Exchange Consortia Based Exchange Private Exchange
Allow distributors tosell on
independent platformsto
increase volume sales
Create aprivate platformfor
distributorstomanage and
track sales, monitor inventory.
Eventually give buying options
on this platform
Do not gofor ConsortiaBased
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 SYNCHRO30-11-2016 17
ADVANTAGES OF E-COMMERCE FOR SIEMENS

18. THANK YOU
TEAM SYNCHRO30-11-2016 18