Name Swandip Ranjan Dhar

Question 1

Answer of Part 1 (A) here.

Period Rate of Growth

2000-2004 27.27%

2004-2010 90.47%

2010-2015 50%

Answer for Part 1(B) here:

Reasons for growth of two-wheeler segment:

1. Consumers' increasing disposable income

2. Aspiration to own a motorized vehicle
3. Availability of easy financing

Question 2

Answer for Part 2 (A) here.

Private Sector Companies:

1.Shell
2.Gulf
3.Valvoline

Public Sector Companies:

1. Indian Oil Corporation Ltd.

2. Bharat Petroleum Corporation Ltd.
3. Hindustan Petroleum Corporation Ltd.

Answer for Part 2 (B) here.

Direct Distribution Channel:

1.Forecourt-Petrol Pumps and Gasoline Stations

2. FW (Franchised Workshops)-Authorized workshops that serviced vehicles under warranty.

Distribution channel serviced through distributors:

1. NFWs (Non franchised workshops-small workshops set up by mechanics to service

vehicles
2. Agri Stores-Stores that sells seed, fertilizers, and pesticides.
3. Intuitional-Large sellers such as co-operative stores, associations etc.

Question 3

Answer for Part 3(A) here.

Consumer buying behavior In India,

two -wheelers are regarded as the first step of achievement and therefore, its maintenance
for long term is considered important. During the warranty period of the vehicle, most
customers do service with the authorized franchised workshops for the sake of warranty. After
warranty period, most change over to Non franchised workshops for the sake of convenience,
personal relationships, service costs etc.

The consumer base is divided into three categories,

a) Minimalists-the consumers who seek maximum value for the money spent through the
reassurance from a credible brand.

b) Appreciators-the consumers who regard their vehicles as their lifeline and are ready to pay
a slight premium, so that vehicles don’t break down.

c) Enthusiasts-the consumers who regard vehicles as their dream and therefore, want the
best for their vehicle, irrespective of the price.

It is important for the company to develop and position the products according to the
consumer base. Here, company must follow the concept of STP. The process of
segmentation and target consumer base is done by classifying the consumer base. Now,
company has to follow the apt positioning strategy and thereby, increase the sales.
Answer for Part 3(B) here.

The engine designs are changing, and the sizes are decreasing. This would result in a slump
in oil use. Two stroke engines are replaced by four stroke engines which mean PSUs are no
longer the front-runners are losing the first mover advantage. All companies in the industry
got the same advantage to go penetrate deeper. Companies just have to search for better
distribution networks and can also innovate this product as per the changing technological
advancements for getting advantage in the market.

Question 4

Answer for Part 4(A) here.

Channel Partner Channel Share (%) 2010

Franchised workshops 30.95%

Spare part outlets 42.85%

Oil shops 11.90%

Non-Franchised workshops 14.28%

Answer for Part 4 (B) here.

Franchised workshop and NFW’s for Four Stoke oil market are significantly greater in
(percentage) than the Castrol for stroke oil
 Four Stroke Oil Castrol
Market

Franchised 39.47 > 29.77

workshop

NFW’s 10.52 > 7.14

Answer for part 4(C) here:

Channel Partner Sales (in litre) per channel outlet, 2005

Franchised workshops 6666.66

Spare part outlets 578.94

Oil shops 1103.44

Non-Franchised workshops 400.00

Answer: For part 4(d) here :

Channel Partner Sales (in litre) per channel outlet, 2005

Franchised workshops 5323.30

Spare part outlets 577.38

 Oil shops 884.15

Non-Franchised workshops 670.87

Answer: for part 4(e)

Channels for which the sales (in litre) per channel outlet (for the four –stoke oil market)
significantly greater than the sales (in litre) per channel outlet (For Castrol)

Franchised workshop 6666.66 > 5323.30

Oils shops 1103.44 > 884.15

Spare part Outlets 578.94 > 577.38

Answer: for part 4 (f)

1) Franchised workshop: While this channel would have a large part to play in future
growth, Castrol had restricted access due to limited tie-ups with original equipment
manufacturers and the influence of genuine oils.
2) Oils shops: This channel was slated to have the lowest growth rate, due to a shift in
consumer’s behaviors.
3) Spare part Outlets and non-franchised workshops: These channels were expected to
be the growth drivers of the future

Question 5
Write your answer for Part A here.

Segment Share in oil Oil buying Financial

change process behavior Conditions
Size

Stock and sell

mechanics are
Routinely stable on
serviced by the finances as the
30% the oil
Stock and sell mechanics 10% distributor product they
change process
developed was
sold easily and
was appreciated
in the market
Mechanics were
short on finances
as it was a group
of youngsters
wanting to start
Mechanics who have worked
40% of Received their up a business
with Franchised workshop and 50% in the oil
the supply of MCO’s and the
are ready to set up their own change process
mechanics from nearby distributors did
business
not get any
confidence
related to their
existence and
money.
Mechanics who
If the consumers had approached
Mechanics who have needed an oil for small/minor
approached for small/minor 50% of change, then jobs seem to be
jobs are likely to be the 20% in the oil they would buy struggling on
apprenticed under a stock – mechanics change process their own bottles finances as they
and sell mechanic base of MCO’s and were falling short
take it to the on branding to
shop generate
customer base

Write your answer for Part B here.

Modul Parameter 1 Parameter Parameter Parameter 4 Parameter 5

e 2 3
 1 Low Low High High High

2 Low High Low High High

3 High High High Low Low

Question 6

Write your answer here.

Who will these CASAs report to?

CASA’s (Castrol Authorized Service Associates) they will direct report to the DSR in the
headquarters locations. They are the trained distributors sales representatives with access to
these markets

Who will these CASAs serve?

CASA’s (Castrol Authorized Service Associates) will pick up the product from small
distributor’s and they will serve the NFW’s small mechanics who set up shop to serve.