Name Sumit Mudgil

Question 1

Write your answer for Part A here.

Period Rate of Growth

2000-2004 27.27%

2004-2010 90.47%

2010-2015 50%

The factors responsible for the growth of two-wheeler market in India are :

1. 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.

Private Sector Players:

1. Shell
2. Gulf
 3. Valvoline

Public Sector Players:

1. Indian Oil Corporation Ltd

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

Write your answer for Part B here.

Direct Distribution Channels:

1. Forecourts (Petrol pumps, Gas stations)

2. Franchised Workshops

Indirect Distribution Channels:

1. Spare parts shop

2. Dedicated oil shops
3. Mechanic workshops (NFWs)

Question 3

Write your answer for Part A here.

During the warranty period of the vehicle (i.e. 18-24 months), consumers visit the motorcycle
dealerships or franchised workshops to get the oil change for their vehicle. Once the warranty
period is over, these bikes enter the after-warranty market. Consumers used to buy oil of their
choice and take it to the mechanic for service, but now they’re more likely to buy oil directly
from the mechanic. This change in behavior is called a move “from shop to workshop”.

This change in behavior makes the NFWs an important channel for selling the oil to the
consumers. There were three customer segments – minimalists, appreciators and enthusiasts.
 Write your answer for Part B here.

The technological change in the engines, from two-stroke to four-stroke led to significant
changes in the distribution channels. In two-stroke engines the lubricant oil was mixed with
the fuel every time, and this took place at the petrol pumps. But in four-stroke engines, the
lubrication system was separate and oil changes were needed after every 2000-2500 kms. This
oil change took place at the workshops. This led to complete shift of lubricant sales from
forecourts (petrol pumps, gas stations) to the open markets (Bazaar or High street).

Question 4

Write your answer for Part A here.

Channel Partner Channel Share (%) 2010

Franchised workshops 30.95%

Spare part outlets 42.86%

Oil shops 11.90%

Non-Franchised workshops 14.28%

Write your answer for Part B here.

 Four Stroke Oil Market Castrol

Franchised Workshops 39.47% 29.8%

NFWs 10.52% 7.1%

Write your answer for Part C here.

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

Franchised workshops 6666.7

Spare part outlets 578.95

Oil shops 1103.4

Non-Franchised workshops 400

Write your answer for Part 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

Write your answer for Part E here.

Channels where the ‘sales (in liter) per channel outlet (for the four-stroke oil market)’ is
significantly greater than the ‘sales (in liter) per channel outlet (for Castrol):

1. Franchised workshops: 6666.7 > 5323.30

2. Oil Shops: 1103.4 > 884.15
3. Spare part outlets: 578.95>577.38

Write your answer for Part F here.

Castrol is facing problems in the-

1. Franchised workshops: This channel has limitations because of lack of tie ups with
original equipment manufacturers and the presence of genuine oils.
2. Oil Shops: This channel is less referred by consumers due to change in behavior.
3. Spare parts shop: Castrol needs to increase the market share in this channel as there is
huge future growth potential.

Question 5

Write your answer for Part A here.

 Segment Name Segment size Share in oil Oil buying Financial
change process behavior condition

Stock and sell 10% 30% Routinely Stable financial

mechanics serviced by a condition
distributor

Mechanics who 40% 50% Bought oil from Short on

worked at nearby spare finances,
franchises but parts shops looking for
now running financial
own business support

Mechanics who 50% 20% If customers Struggling with

are approached wanted to get oil finances as it is
for small jobs, change, they difficult to build
learned from an would buy oil clientele and
‘ustaad’ bottle and take it reputation
to these
mechanics

Write your answer for Part B here.

Module Parameter 1 Parameter 2 Parameter 3 Parameter 4 Parameter 5

1 Low High Low Low High

2 High Low High High Medium

 3 High Low Low High Low

Question 6

Write your answer here.

1. The CASAs (Castrol Authorized Service Associates) will report to the distributor sales
representatives at headquarter locations.
2. The CASAs (Castrol Authorized Service Associates) will serve the NFWs small
mechanics in remote areas.