What is your internet strategy?
Grove: We will continue to build our website to provide useful information for customers and distributors worldwide. Several changes have been made recently and we will be adding more information soon.
Link-Belt: Our strategy is based on the use of three vehicles; the internet, intranet and extranet, each having a clear purpose and objective. All three compliment each other, though the scope of content is defined by target audience, i.e. internet, the public; intranet, our employees; and extranet, our distributors and vendors.
IMT: To increase our visibility and provide information to help end-users better understand products and services. To maintain a secured site as an official way to communicate with distributors.
Shuttlelift: As of right now, we really have no internet strategy as such.
Effer: To maximise its use as a communication tool. As such, the internet becomes part of the whole company communication strategy. It is targeted at two audiences: distributors (actual and prospective) and end-users (actual and prospective). We aim to give all of them a chance to know the Effer world and to start a direct dialogue with Effer.
Potain: We saw the opportunity early and have had a website since 1996. We are now reassessing our strategy. It is too important to disclose details, but we want to take advantage of it to ease information flow and promote our name and the value of the brand.
Liebherr Nenzing: Our strategy at Nenzing is closely tied to that of the Liebherr group as a whole which employs 17,000 people in more than 50 companies throughout the world. The group web page has separate links to the individual company pages. Each company’s web page has a similar structure: products, services, sales and service stations worldwide, history (general information), and locations. But all individual web pages are integrated into one general web page that can be identified by product, so each customer who is interested in a particular product will automatically be routed to the relevant web page of the relevant Liebherr plant.
Kobelco: Kobelco’s construction equipment business has been on the internet through Kobe Steel’s website ever since the site’s launch in December 1995. When it became independent from Kobe Steel in October 1999, Kobelco Construction Machinery Co. began operating its own website at www.kobelco-kenki.co.jp.
Favelle Favco: We have not formulated a particular internet strategy but we intend to show our presence on the internet.
Enecontec: The internet in Brazil has been developing in the last few years. The biggest companies have spent a lot of money to offer services online. Small and medium sized companies cannot afford it, so they are not so up to date. We have e-mail and where clients have e-mail, we exchange documents.
Finning: We are very committed to establishing a strong presence in website and e-commerce initiatives.
AmQuip: Step one: to use it as an advertising forum where you can get a lot of information on us and our services with a click of your mouse. It is also a platform that will reach worldwide to help market our used crane sales, by listing all used cranes. Step two: to use it as an information platform for our own employees to gather information on benefits etc. We will also be adding information on our cranes so people can get a grasp of our size and breadth. Then hopefully sometime this year we would like to have an interactive page for requesting quotes. We already have a page where you can make an inquiry on a used crane. Also, as we expand our training services, the internet will be an important medium to advertise and sell training.
What has your website achieved?
Grove: (www.groveworldwide.com) It has greatly increased exposure to our products and services on the part of the crane customer.
Link-Belt: (www.linkbelt.com) It has created a public awareness of who we are, the products we offer and our philosophy, which we could not previously accomplish through brochures and other available media.
IMT: (www.imt.com) Our website has helped create global awareness for our products and services, and it allows us to track sales. The site has improved the competency of the distribution network by providing information 24 hours a day, including specification sheets, service manuals and technical specs. Distributors can also access up-to-date quotation software, and finance information will also be posted soon.
Shuttlelift: (www.shuttlelift.com) It has helped us get recognised on a global scale.
Effer: (www.effer.it) Many branches of our website are still under construction. As well as the typical structure which all manufacturers have, we want to create something different and avoid mistakes others have made. We do not want to take for granted that the visitor already knows the brand, or even the product. Casual surfers might drop by your site without even knowing that your product exists. To avoid this mistake, we will develop a section showing ‘the businesses we serve’, to show to the inexperienced visitor what the whole story is about. On the distributor level, we will open a window for used cranes and ex-demonstration units, which will help all our distributors to buy or sell the equipment faster and more easily. Although we have great expectations for our website, right now, after almost a year of regular service, the only advantage we have seen for the site has been a few enquiries originating from an apparently casual visit to the site.
Potain: (www.potain.com) It has helped us to be better known in some areas where we are not so strong, and we get enquiries every day by e-mail.
Liebherr Nenzing: (www.lwn.liebherr.at) Our advertising agency is still preparing the English version – it is only in German at the moment. We have to wait for the English version to assess the usefulness of the web page for our customers. The design of the web page has helped internally to document and standardise product- and service-related data.
Kobelco: Our websites operate on a country basis. Kobelco’s US unit, Kobelco America, has a detailed site at www.kobelcoamerica.com and covers North America. Kobelco Construction Machinery (Europe), based in the Netherlands, covers Europe. Its website is at www.kobelco.nl. Kobelco Construction Machinery’s own website is currently only in Japanese but we plan a site in English. Since going online, we have seen a steady stream of inquiries for product information, new and used equipment, spare parts and dealer locations, all of which increases sales potential. The internet provides a fast, convenient method for customers to contact us and vice versa.
Favelle Favco: (www.favco.com) We are unable to gauge the number of visitors who have visited our site as we did not include a counter on the site. However, we are there for those who search for information.
Enecontec: Our website has been postponed for a while.
Finning: (www.finning.cl and www.finningnews.cl) Not a great deal so far as the first is still a static page which is difficult to keep current and it has been difficult convincing the company that this technology requires an investment in manpower. The second site is brand new so we have no measurement yet. Another factor is that the Chilean market is only now catching on to the internet buzz.
AmQuip: (www.amquip.com) It gives an awareness to our infrequent customers of our abilities and services. It gives historical perspective on the company, which is important because where so much is done electronically the customer must have a level of trust. We have also received job applications on it as well as inquiries for crane purchases and training requests.
Do you sell goods or services online?
Grove: We are selling parts through our website and will soon be adding a store where promotional items can be purchased.
Link-Belt: No.
IMT: Not at this time.
Shuttlelift: We have received inquiries via e-mail that have resulted in orders, but orders that we obtain through the internet are not tracked at the moment.
Effer: We are not yet at the stage of selling through the net. We expect to sell accessories and related services through the net rather than actual cranes.
Potain: Eventually yes, but not at the moment.
Liebherr Nenzing: Not yet.
Kobelco: Our web pages are not set up for online transactions. However, customers can contact us by e-mail for further information and assistance.
Favelle Favco: We see a potential in selling spare parts online in five years’ time.
Enecontec: We don’t sell services online today but if the market needs business online, we probably will.
Finning: Not yet, but we will by the middle of the year.
AmQuip: Presently it is an infinitesimal amount, but we have only had a web page up for less than a year.
Do you buy goods or services online?
Grove: We don’t presently purchase many major items but we do buy office supplies and miscellaneous items.
Link-Belt: At present, no but it is clear that purchasing will move more to an internet-based system.
IMT: Not at this time.
Shuttlelift: Not at present.
Effer: Not yet, but we use the net more and more as a source of information about products on the market.
Potain: We buy certain support products online, such as airline tickets, for example.
Liebherr Nenzing: No.
Kobelco: No.
Favelle Favco: No.
Enecontec: No.
Finning: Not very much yet, but there are many new services springing up in Latin America that are very attractive for businesses and this year will no doubt mark a turnaround.
AmQuip: We have been buying computer equipment online for a while and we have started ordering office supplies and recently working through ordering parts for machinery that way.
How has the internet affected your business relationships?
Grove: The internet is strengthening our sales channels by allowing us to provide product information more quickly. We are now setting up literature for direct ordering via the internet and we will be adding training school schedules. These and future possibilities to improve our distribution and sales channels are exciting and provide faster responses to customers.
Link-Belt: The extranet has enabled us to greatly enhance our customer and product support channels with real time information and faster response time.
IMT: The internet has improved communication with the end-user market and the distributor base, positioning IMT as an innovative company. The website provides 24-hour access to equipment and service information – particularly important for international customers. Another feature is a secured access site for distributors that provides a variety of tools to serve customers. A discussion area on the secured site links the IMT dealer network to assist customers in finding a specific piece of equipment or part, obtaining advice on applications and other related information.
Shuttlelift: It has affected the way we do business just by the speed that we can communicate with customers. It will continue to change the way we do business as we are looking to use the internet in other ways.
Effer: The main impact has been through e-mail. The quality of communication with all our distributors and subsidiaries has changed. It is faster (some documents are now exchanged in real time), more accurate (since more and more of our documents are available by e-mail – and soon on the website – and they can be updated more often), and it is interactive (documents can now be worked on together with our partners for an easier and quicker process). There are also economic benefits: the cost of transmission for most of our literature is now lower overall.
Potain: In honesty, so far it has not changed that much. But it will ease the flow of information and it will change relationships in the medium term.
Liebherr Nenzing: Up to now there has been no massive impact on our existing business relationships apart from the fact that the proportion of enquiries and contacts by e-mail have steadily been increasing.
Kobelco: The internet makes it easier to get in contact with us. We have been receiving direct communications from people and companies that we have never done business with before. This information is relayed to our regional marketing companies. We have also received inquiries from parts suppliers. Although they have not led to any new arrangements, they do offer future opportunities.
Favelle Favco: It offers easier and faster communication methods through e-mail, particularly to and from remote sites where traditional communication lines such as the telephone or fax is poor.
Finning: It will be most profound when e-commerce is in place. Only then can we really measure this. Our relationship with Caterpillar (we are a Cat dealer) is becoming increasingly internet dependent, especially in the parts and service area.
AmQuip: We have aggressively gone after suppliers to get on the web and internet so we can communicate more and even order online. This is the future to doing business with AmQuip. It is a great way to communicate. It is also helpful when dealing with international suppliers because you can leave messages while they sleep and get answers quickly.
What impact will the internet have on our industry?
Grove: It will improve communication at all levels and provide much needed technical information in a dramatically faster manner. We can better educate customers about new products and help them make more informed buying and selling decisions. We are now adding non-current product information on our website, which will assist buyers and sellers of older units. The internet will revolutionise the used equipment market in the next 18 to 24 months.
Link-Belt: Because of the nature of our business, we believe the internet’s greatest impact will be in customer support and communication in the short term, and purchasing in the long term. On the sales side, the internet will be a valuable tool in creating awareness in new markets for new products.
IMT: With the rapid growth in internet design and technology, availability of products and services to the end-user customer will be improved. Customers will be able to choose products prior to contacting their distributor, utilise application and solution software and access local service centres.
Shuttlelift: It will be a useful tool for the crane industry for used equipment sales, for customers to order parts directly online and for other services.
Effer: We expect the internet to be a permanent showcase of equipment manufacturers. But we all have to be aware that companies and products on show are only virtual. It will be important to make prospective customers aware of this, helping them to understand what is just ‘image’ and what is real and concrete. A lot of resources will be invested by manufacturers to make the showcases on the net attractive and useful, so some of the marketing costs that manufacturers incur today will be re-directed to the net.
Potain: It will make life easier for every member of the supply chain. But it will be particularly good for the bigger brands because only the larger companies can afford to have a real presence worldwide to back up their internet presence.
Liebherr Nenzing: Due to the huge investments in the crane industry we do not expect to sell our cranes online. However, we expect that within the next five years some services might operate only via the internet, such as price enquiries and sales of spare parts.
Kobelco: Although the internet has come into common use only in recent years, we have been using it to communicate with our customers and it contributes to our marketing activities. In the Japanese market, the crane industry is reckoned to make more use of the internet than the excavator industry. We anticipate that the internet will play a more pervasive role in the construction equipment business.
Favelle Favco: The crane industry is a relationship-based industry, where relations with the end-user play an important role. End-users want to be able to see, feel and operate before they purchase. This will be the way for the next 10 years. However, the web is a good place to create product awareness and brand recognition. Overall, the impact on the crane industry is not as great as on consumer industries.
Finning: In Chile it will take some time and we will probably be about two years behind what’s happening in the northern hemisphere. I think parts ordering will be the first benefit. We are also interested in creating websites that provide more than just corporate information, and serve as information portals and tools.
AmQuip: It will aid in pushing the consolidation because the cost of interactive web pages and systems to do business directly with our customer is going to be the standard, and little guys are not going to be able to compete. The day is not far off when your more sophisticated customer will lay out the lift on the computer and then e-mail that to one or two vendors for quotes and place the order and get confirmation, all over the web.
