AN ECOMMERCE

BUSSINESS MODEL
GEAR BOX- AN INITIATIVE TO DOOR TO DOOR
SEVICING

E-COMMERCE
(2015-16)

PRESENTED BYAMAN HARSHVARDHAN

JITENDRA PATHAK
SHREYA SAVARN
UTKARSH JAISWAL

INDEX

Sl. no.

Contents

GEAR BOX- MISSION STATEMENT

COMPANY IINFORMATION

WORKING OF GEAR BOX

TERMSAND POLICIES

5
MARKETING ENVIRONMENT

6
SWOT ANALYSIS
7

MAIN TARGET CUSTOMER

MARKETING MIX ENVIRONMENT

E COMMERCE BUSINESS MODEL OF GEAR BOX

10

E COMMERECE RATIONALE

11.

CRITIQUE FOR BUSINESS/ORGANISATION

12.

RECOMMENDATIONS FOR BUSINESS/ ORGANISATION

13.

APPENDIX

14,

REFERENCES

ACKNOWLEDGEMENT

We would like to extend our heartiest gratitude to this college and each and every
person who helped us in doing this study on this proposed business model of GEAR
BOX. We would like to thank our subject faculty Mr. TVSN Murthy who was always
there to help us whenever required. He

cleared all our doubts in creating the

presentation and documents as well.

GEAR BOX is a new initiative to provide bike servicing to people at their Doorstep.

1.MISSION STATEMENT
we bring GearBox at your door to save your precious time.
To provide an easy and reliable bike servicing service at one call and at the place
customer wants. In this globalise and fast moving world time is now scarcely
available. For office goers or students who are pursuing their studies generally get
less time to spend with their family, taking a break from precious time to go to a bike
servicing shop located far is a huge loss of both time and energy. Even if it is located
nearby, waiting there, while servicing is under process is surely a loss.
Therefore to save precious time of our customers, so that they can spend time with
their family while their bike will be serviced at their door.

2.COMPANY INFORMATION

We will provide doorstep bike servicing, modification and repairing.

Our target customers will be motorcycle owners.
We will have tie up with local mechanic shops and spare part distributors.
Customer can contact us both online and offline.
An initiation of bringing tangible business to ecommerce business.

3.WORKING OF GEAR BOX

PHASE 1
DISTRIBUTOR
(spare parts )

(supply)

GEAR BOX

(Orders)

Tie up(offer)
Response

LOCAL MECHANIC
SHOP (mechanics)

We will do tie up with different mechanic shops in different part of our city with
a legal agreement.
We will source spare parts in low cost from distributors and provide them to
the mechanic shop with whom we tied up according to demand.
Along with the spare parts we will provide a tool box set and tire inflator and
mini-van i.e. Tata magic.

PHASE 2
(order)
GEARBOX

(feedback)
CUSTOMER

LOCAL MECHANIC
SHOP
(MECHANICS)

Customers will contact Gearbox for required service through website and
offline i.e through telephonic conversation.
Then Gearbox will send the required information to the mechanic attach
Then the mechanic will attend the customer and provides services to the
customer as required and take payment in cash or online.
We will also take feedback from customers after servicing.
After the servicing a grace period of 7 days will be provided in which if any
problem arises in vehicle (in terms of our offered service) will be resolved free
of cost.

4.TERMS AND POLICIES

30% discount on first servicing through registration online or offline.

15% discount on second servicing if referral code provided by user is
redeemed by any third party.
After the servicing a grace period of 7 days will be provided in which if any
problem arises in vehicle (in terms of our offered service) will be resolved free
of cost.
Warranty on spare parts will vary accordingly.
Prebooking of servicing are available online and extra 5% discount is offered
if prebooking is done 7 days before.

5.MARKETING ENVIRONMENT

Marketing
Environm
ent
External
Environm
ent

Internal
Environm
ent

Macro

Micro

The macro environment in our business model consists of following factors:

1. Demographic
- Mostly male population of region
- Age can vary from 18-senior citizen
- Can be accessed only within a particular city
- Mostly working class people
2. Economic factors
- Exchange rates of spare parts
- Interest rate
3. Political factors
- Labour laws for hiering of labours for servicing
- Tax policy of government (service tax etc.)
4. Technological factors
- Advancement in technology to propose business online
- Introduction of new tools that are portable
- Online payment through payment gateways
- Introduction of various payment methods (such as credit cards, virtual
card)

5. Cultural factors
- Beliefs of customer on shop servicing
- Trust building of customers
The micro environment in our business model consists of following factors:
1. The distributors or wholesalers of spare parts, and other tools and
equipments.
2. Different service centres in the range of organization.
3. Mechanics invoved in servicing process.
4. Profits generated from bulk purchasing of products from customer.
5. Our business model department are as follows:
- Sourcing department
- Operating department
- Sales and finance
- Accounting department

6.SWOT ANALYSIS OF PROPOSED MODEL OF GEAR BOX

It is going to be first of its kind (i.e. door to door
service)
Creating consumer convenience factor
Various discounts and offer on the basis of referrals
STRENGTH and first service
Reliability at security factor.

WEAKNESS

Lack of awareness of existence any such

services
Competition with local workshop.

Expansion of business at different levels

Addition of more services.
OPPURTUN Technological Advancement.

ITY

THREAT

Orthodox thinking will drive customer

towards local service centers/authorized
dealers

7.MAIN TARGET CUSTOMER

We have created a survey form and distributed and taken 100 response as a
standard for the customer view in which we have mentioned the following questions
to know about the target customer:

Figure 1: AGE GROUP OF CUSTOMER

Figure 2: THE WORKING AND NON- WORKING POPULATION

Figure 3: THE SEX RATIO

The following analysis through our survey describes the major target customer of our
organization in different forms through gender, sex ratio, working- non working
population and age group.

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8.MARKETING MIX OF ORGANIZATION

The marketing mix is determined by 4Ps factor of business model proposed as
follows:

11

 services
Functionality
spare parts
Modification function
Returns

List price
Discounts
Service charge
Payment terms

PRODU
CT

Location
Inventory
Transport

PLACE

PRICE

PROMOTI
ON
Public relationship
Advertisement
Online portal

Figure 4: 4P's of Business model

1. PRODUCT: Marketers should consider how to position the product, how to

exploit the brand, how to exploit the company's resources and how to
configure the product mix so that each product complements the other. Under
this consideration our strategy is how to place our service as a product in
market which includes the following:
services
Functionality
spare parts
Modification function
Returns
2. PRICE: The amount a customer pays for the product. The price is very
important as it determines the company's profit. Our business model
somehow based on supply chain management where revenue generated by
customer is distributed among the different supply chain departments.
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List price
Discounts
Service charge
Payment terms

3. PLACE: Refers to providing the product at a place which is convenient for

consumers to access. The factors are as follows:
Location (nearby place)
Inventory
Transport
4. PROMOTION: Promotion comprises elements such as:advertising, public
relations, sales organisation and sales promotion. Our business should
consists of following promotion:
Public relationship
Advertisement
Online portal
MAJOR COMPETITORS OF OUR BUSINESS ARE:
1.
2.
3.
4.
5.

Company service centres.

Local service centres
Different e- commerce websites selling spare parts
Branded shops selling spare parts of bike
Distributor and wholesalers of spare parts

9.E COMMERCE BUSINESS MODEL OF GEAR BOX

13

Gear box is a business to customer e-commerce business model providing customer

service through door to door bike servicing and spare parts modification.
The model is proposed as follows:

BUSINESS
ORGANISATI
ON
ORDEP
SUPPLIES

CUSTOMER

WEBSITE
ORDERS

Figure 5: Gear box E-commerce Business Model

The E- business infrastructure of Gear box consists of following:

1. E- business services- application layer: Our business is based on supply

chain management and feedback system where the process flow of
information will be between customer to organization and organization to
distributor and local mechanic shop with tie ups and again feedback from
customer to business organization.
2. The system software layer: It consists of networking software and database
management which keep all the data records of customer who have logged in
the website and got the servicing done.
3. The website: The domain name of our business is WWW. GEARBOX.COM
providing door to door bike servicing.

The website is accessed only after logging into it through signup option
where customer has to provide its email id along with its new password
which will be generated for its future login as well.

14

The website will then provide its services into two parts:
Booking for bike servicing: under this option the customer can select the
time for servicing within upcoming one week and also has to enter the bike
model detail, vehicle number as well.
After booking the bike servicing, the customer gets a section to register
about the complaints/problems he is facing in his bike.
Booking for bike modification: bike modification detail covering bike model
details, the modification needed under the given option, the spare parts to
be chosen for change in modification.
The website offers different discounts on services termed as :
- First Service with an attractive discount of 30%
-5% extra discount on pre booking the service 1 week before
-15% discount on 2nd service with each referral code redeemed

The website will then provide with the feedback section- Feedback for
the servicing availed: under this option the customer can then rate the
servicing availed by him.

Complaint of the servicing: under this section the customer can

complain any problem faced in bike after the servicing and the issues
will be resolved free of cost but only for a period of 7 days.

The website will also have a customer care section. The customer can
leave a message regarding any queries or issues which will be
attended and will get a prompt reply.

10.E-COMMERCE RATIONALE
The need for e-commerce platform for Gear box:
15

1. To introduce people to this new concept- People can be introduced to this new
concept through the website and also they can get a detail about the services
provided by Gear Box.
2. To increase customer reach- An online website can reach more people and
they can go through the website even if they dont want to avail a service in
case they want to avail it in future.
3. To increase convenience of Customers- A Bike servicing sitting at home, will
save time and the customer does not have to face the hassles of waiting at a
service center.
4. To provide more business to Local Mechanic shops- The local Mechanic
shops get less business of some weekdays, As we provide service on
demand so they will get an extra profit on these off days by attending the
home service customers.
5. Ability to get customers 24*7 through website- as we do not have to provide
service instantly so we can continuously get customers and attend them
accordingly.

11.CRITIQUE OF ORGANIZATION/ WEBSITE

16

1. Lack of existence of any such service: people are not aware about the
existence of any such service as we are the first of its type providing door to
door bike servicing service.
2. Orthodox thinking will drive customer towards local service centers/authorized
dealers.
3. Poor inventory management: as we dont about the customer reponse there
can be overstocking or understocking of inventory .
4. No cash flow: At the most basic level, cash flow is the movement of money
into and out of a business. New ecommerce companies can get into trouble
when they dont have enough cash to keep operating. An example of this is
when an entrepreneur invests all his cash in inventory and there is no money
for marketing so sales dont rise and the business is stagnant.
5. Absence of mobile application.

12.RECOMMENDATIONS FOR THE ORGANIZATION/ WEBSITE

1. A mobile application should be developed for more reach of customer and for
convenient operation.
2. Timeliness: The service should be provided on time.
3. Diversify: The service should be expanded to different cities.

13.APPENDIX
17

1. B-C business: Business to customer E-commerce business model.

2. SWOT analysis: Strength, Weakness, Oppurtunity, Threat analysis of an
organization.
3. PEST analysis: Also known as PESTEL theory as Political, Social,
Economical, Technological, Ethical and Legal factors affecting business.
4. Porters 5 forces for analysis of market mix.
5. E- commerce: Electronic commerce
6. E- business: Electronic business
7. 4PS : Product, Price, Place , Promotion.
8. Pillars of E-commerce business infrastructure
9. Critique and recommendations: Pros and Cons of proposed business
models.
10. E- commerce rationale: The need for e-commerce website for a tangible
organization.

14.REFERENCES
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1. http://www.google.com/url?q=http%3A%2F
%2Fwww.practicalecommerce.com%2Farticles%2F75484-8-ReasonsWhy-Ecommerce-BusinessesFail&sa=D&sntz=1&usg=AFQjCNHK4LF2qrz9gP1ZgL1WM5SQkHXzYA
2. https://www.isoc.org/inet99/proceedings/1g/1g_2.htm
3. http://www.encyclopedia.com/topic/Electronic_Commerce.aspx
4. http://psut.jo/sites/raad/eBusiness_notes/Chapter%2003.pdf
5. https://en.wikipedia.org/wiki/Marketing_mix
6. https://www.isoc.org/inet99/proceedings/1g/1g_2.htm
7. http://www.startuptimes.in/2014/10/ola-cabs-business-revenue-model.html

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