Name Harsh Vardhan

Question 1

Write your answer for Part A here.

Period Rate of Growth

2000-2004 27.2 %

2004-2010 90.5%

2010-2015 50%

Write your answer for Part B here.

Below are 3 factors which are responsible for growth in 2 wheeler market in India

1.Consumers increasing disposable income

2.The aspiration to own a motorized vehicle

3.Availability of easy financing

Question 2

Write your answer for Part A here.

Indian MCO market was fragmented as below

Private:

1.Shell
2.Gulf

3.Valvoline

Public sector:

1.Indian Oil Corporation

2.Bharat Petroleum corporation

3. Hindustan Petroleum corporation limited

Write your answer for Part B here.

Direct Distribution channels

1.Forecourts/ Fueling stations

2.Franchised workshops

Distributor channels

1.Wholesalers

2.Non-Franchised workshops

3.Company branded workshops

4.Market or stores

Question 3

Write your answer for Part A here.

Consumer buying behavior Impact:

4 Stock Motorcycle made consume change oil necessary as part of vehicle maintenance.
During the warranty period of 18 to 24 months (depending on vehicle) these oil changes were
made either in motorcycle dealership or franchised workshop.

On completion of warranty period consumer behavior was changed inclining towards

Trust,convenience, and personal attention from the mechanic and these were the source of
information to recommend right oil for the bike.

These behaviors of consumers were categorized as below

Minimalists:- Need for them was to do the thing right, with the insights of valuing money, with
reassurance from a credible brand.

Appreciators:- Need for them was to inspire freedom and confidence. With the insight that bike
was a means of transport for them, and they needed assurance that it remain reliable, and
were also ready to pay a slight premium to avoid breakdowns.

Enthusiasts:- Need for them was to get the most out of their bike’s engine. Insight for them was
that, they wanted to be associated with the best, as bike was their vehicle for dreams through
which they would uncover new opportunities.

Write your answer for Part B here.

Technological advancements happening in the two-wheeler industry

New technology in engine and shift from two stroke engines to four stroke impacted

1.Consumer behavior

2.Distribution channel

Consumer Behavior: 2 wheeler with 2 stroke engine had to be fed with engine oil every time
during fueling, here most consumers would depend on fueling station and the choice of
lubricant was decided by fueling station. Whereas with advancement on 4 stroke engine
lubrication oil system was separate and oil change need only once in 2000 to 2500 kms,
whichmade consumer to decide oil change based on workshop where vehicle were serviced

Distribution Channel: Above said change in technology and due to consumer behavior
distribution channel had to be changed to suite new requirement from fueling station to
workshop where vehicle will be serviced. This led to a shift of lubricant sales from forecourts
to the open market(bazzars). Whole strategy of distribution channel had to change to new
customer behavior

Question 4

Write your answer for Part A here.

Channel Partner Channel Share (%) 2010

Franchised workshops 31%

Spare part outlets 42.9%

Oil shops 11.9%

Non-Franchised workshops 14.3%

Write your answer for Part B here.

It is higher for Spare Parts Outlet and Oil Shops.

Write your answer for Part C here.

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

Franchised workshops 6667

 Spare part outlets 579

Oil shops 1103

Non-Franchised workshops 400

Write your answer for Part D here.

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

Franchised workshops 5323

Spare part outlets 577

Oil shops 884

Non-Franchised workshops 671

Write your answer for Part E here.

It is higher for Franchised Workshops, Spare Part Outlets and Oil shops.

Write your answer for Part F here.

Following are the problem areas for Castrol:

● Franchised Workshop
● Oil Shops
● Non – Franchised Workshops

Question 5
Write your answer for Part A here.

The three NFW segments are as follows:

1. Stock-and-sell mechanics
2. Mechanics who have worked at the franchised workshops and are ready to set up their
own business
3. Mechanics who are approached for small/minor jobs are likely to be apprenticed under
a stock-and-sell mechanic

1. Stock and sell mechanics

Segment Size: This segment was very small in market which account to 10% of market
Share in oil change process: This segment contributed to 30% of oil changes
Oil Buying behavior: These are the mechanic workshops that stocked up and sold lubricants,
normally these segments would buy oils from distributors or wholesalers.
Financial condition: This segment mechanics were highly respected and skills for their work.
They were financially sound due to which they could stock and sell lubricants

2. Mechanics who have worked at the franchised workshops and are ready to set up their
own business:

Segment Size: This segment was medium size market which accounted to 40% of market

Share in oil change process: This segment contributed to 30% of oil changes

Oil Buying behavior:-This segment was not supported by distributors since no payment
guarantee and these mechanics not financially good. These mechanics would buy oil from
nearby spare parts shops.

Financial condition:-These segment mechanics were highly skilled but short of finances and
were looking for finance supports.

3. Mechanics who are approached for small/minor jobs are likely to be apprenticed under
a stock-and-sell mechanic:

Segment Size: This segment accounted to 50% of market with mechanic base

Share in oil change process:-This segment accounted to remaining 20% of oil change where
consumer buy their own oil and provide tp mechanic.
Oil Buying behavior: In this segment consumer who want their 2 wheelers to get serviced had
to buy their own oil and provide to mechanic.

Financial condition: This segment mechanics were approached for small jobs, even though
they were skilled they did not had reputation. Financially they had to depend on very small
work and had to depend on consumer buying oil any spares

Write your answer for Part B here.

Module Parameter 1 Parameter 2 Parameter 3 Parameter 4 Parameter 5

1 LOW LOW HIGH HIGH HIGH

2 HIGH HIGH HIGH HIGH MEDIUM

3 HIGH HIGH LOW LOW LOW

Question 6

Write your answer here.

Castrol Authorized Service Associates (CASAs)

CASA's would be reporting to Regional distribution Manager who is responsible for all the
distributor in that region. CASA's would report sales progress to Regional distribution
manager.

CASA's would serve to distributors and the NFW's by working as intermediate retailer in-
between who manages the short-term working capital to make distribution flow effective