market research-ppt
Post on 18-Aug-2015
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Group 01 – Ankit Sinha
Arun PalaniappanChaitali KarnikShuyaasha Misra
Objective
A research on prospective suppliers:
1. Their current distribution strategies – online vs traditional.
2. Functionalities and benefits enabling adoption.
3. Parameters think can leverage to develop marketing strategies /infographics.
Research ProblemTo conduct a market research on what suppliers need,
and how think can use these insights to make them early
adopters.
Background Information
think is an organisation which
provides e-procurement, SaaS based
solutions that:
- Re-engineer
- Innovate and
- Enhance
procurement initiatives for its clients.
It offers services such as data
cleansing, 3-way matching system, as
well as a comprehensive travel
management system.
Research Question
Our research centered around the question :
“Do you have an online selling portal of your own or a third party website? And if not, would you be interested in coming on board on one?”
Literature Review
- Four cycles for e-procurement market : Advantage, Choice, Cost, Replacement.
- Key Drivers for successful solutions : Speed of implementation, Quick ROI, High User Adoption, Ease of use.
- The concept of SUM: Spend under management, which leads to supervised spending and controlled costs. It allows the company to have a select few suppliers and spend volumes only with these suppliers leading to gains via volume discounts.
Literature Review
Reduction in processing costs by electronic invoicing
25% Think reducing
receivables processing costs is most important
45%
Average debtor days
7.3 days
Of organizations indicated cutting costs as #1 priority
53%
Research Concept
Questions asked :
• Rate the effectiveness of their existing
distribution channels.
• Select the factors that they wish to improve
in their current online distribution strategy.
Information regarding invoicing and debtor
days.
• Factors determining success of an online
distribution strategy.
Theory Propositions
Develop measures & sample
Collect Data
Analyze Data
Implications
The logic of research process:
Research Design
- Convenience sampling technique.- Sample size of 450.- No. of respondents – 32. - Conversion rate – 7%.
- Small to medium range of organizations.- Supplier annual turnover less than 20 mn.- Indian and Australian suppliers targeted.
- Industries – IT, Healthcare, Hospitality, Retail, Manufacturing, Real Estate. - Survey floated by means of phone, email, as well as social platforms like LinkedIn, SME organizations (SMEA, ASSA, SBA).
Data Analysis
No online portal
72% Looking
for an online portal
70%
Stock turn-over
Increase profit
Sales conversion percentage
Reduce accounts receivables
Increase in number of customers
0% 5% 10% 15% 20% 25% 30%
Importance of factors for Online Distribution
Minimal Invest-ment
Analytics User Interface Ease in reconciling
invoices
0%
5%
10%
15%
20%
25%
30%
35%
40%
Functionalities affecting choice of Online Distribution
Data Analysis
We used Discriminant analysis to predict the suppliers’ interest in signing up for an online distribution channel.
Y variable: Data for signing
up(Yes/No)
Company turnover
Average debtor’s
days
Target Market
Availability of Portal
No. of invoices raised
• The result showed that the demographic factors were out of significance range and the psychographics factors were highly significant.
• Hence we can model an equation based on them to predict correctly with a 78.1 % confidence.
Test of function
Wilk’s Lambda
Chi-Square df Sig
1 .331 20.998 6 0.002
Duplication
Descriptor differences between customer purchase order and our invoice
Difficulty in follow ups
Customer Losing Invoices
Debt Collection
0 2 4 6 8 10 12 14
Online Portal vs Problems faced
Yes No Online portal
<14 15-30 31-60 61-90 91-1200%
10%
20%
30%
40%
50%
60%
70%
Online Portal Availability vs Debtors Days
No Online portal Online Portal in place
Data Analysis
Problems faced for suppliers with an online portal vs suppliers with no online portal.• Debt collection #1 for both• Customer losing invoices #2 for
suppliers with no online portal• Duplication #2 for suppliers with
online portal
Chi-square test run between online portal availability & debtors days.Findings:• Significantly different • Up to 75% reduction possible in debtors
days by having an online portal
Healthcare Hospitality IT Manu & Construction
Retail0
1
2
3
4
5
6
7
Industry wise factors important to business
No of distribution channels Revenue
Customer loyalty
Revenue Profits No of clicks0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Effectiveness of current online portal
Own website Third Party
Data Analysis
On analyzing the type of online portal against an effectiveness rating of 1-5, Revenue was rated lowest by respondents with a third party online portal
On analyzing supplier’s industry type against factors that are important to their business (on a scale of 1-7), IT rated no of distribution channels lowest & Hospitality rated customer loyalty to be the highest
Porter’s 5
forces
Threat of new
entrants
Threat of substitute
s
Bargaining power
of buyers
Bargaining power
of suppliers
Degree of rivalry
Business Analysis
TenderSearch, RS etc.
Own/Third party websites
Lesser power – new market
Small suppliers
Nascent market
Recommendations
• Think Procurement should assume the role of industry leaders and adopt an aggressive content strategy.
• Materials on industry best practices, resolving issues of procurement managers etc should be used as marketing material and distributed via social media channels such as Twitter, Facebook, LinkedIn
• Use improvement in debtor’s day and number of invoices per month as the crux of their marketing strategies.
• Think has a very user friendly interface and it should leverage as its USP in the market.
• Highlight advantages of the 3 way matching process.
Thank You
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