Castrol India Limited: An Innovative Distribution Channel - Case StudyQ1.

What was the business

macro environment in India ?India is the fastest growing economy with a large and expanding middle
classThe growth indicator for India’s future pointed towards stable and market oriented
economyIncrease disposable income , greater aspiration to own a motorized vehicle , availability of
easy financing and demographic are the factors for increase in demand of two wheelers. Growth in
rural segmentEmployment creationEconomic empowermentShift in consumer behavior and shift in
technology in two wheeler segment and market growth Q2. What was the impact of this
environment on the lubricant market?Two wheeler expected to jump to 80mn units in 2010 from
42mn in 2004Demand shift from tier 1 to tier 2 and tier 3 with rural demand growth and related
jobsTechnological shift leading to shift in lubricant category 2T to 4TChange in consumption pattern
of 4T oilMCO 4T market growing at 17 to 18 MLPAChannel of sales of lubricant changed from FC to
after marketMc added each year 5mn4T oil is expected to grow by 176% by 2010 from 76 mlpa in
2005Overall lubricant mkt @3%Q3. Assess Castrol’s position in terms of growth opportunities in the
mco four stroke marketLarge shift towards middle class – 44%2W sales 120MUMCO 4T market | 210
ml | (17 to 18 MLPA) (CAGR 23%)Castrol’s | 2.5 MLPACastrol’s 63 MLPAAccess to 70000 retail
outletsMarket potential | 210 MCO 4T Brand awareness , channel advocacy and distributionLarge

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trade deals such as discount and better credit termsTie up with OEM, forecourts.Q4. How do

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consumers buy MCO’s? Discuss the existing consumer segments.

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●After studying the buying habits of consumer’s lubricant consumption pattern, the teamfound that

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it was inconsistent. The MCO’s are mainly sold indirectly to the consumers.●Earlier, to claim the
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benefits in the warranty period, they used to go to the franchised
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