Name Vijayanand M

Question 1

Write your answer for Part A here.

Period Rate of Growth

2000-2004 27.27%

2004-2010 90.47%

2010-2015 50%

Part 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

Part A

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.

Part B

Direct Distribution Channel

1.Forecourt-Petrol Pumps and Gasoline Stations

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

Distrubution channel serviced through distrubutors

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.Instutional-Large sellers such as co-operative stores, associations etc.

Question 3
 Part A

Consumer buying behaviour

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, wants 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 has to 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 their increase the sales.

Part B
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 means 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 their products as per the changing technological
advancements for getting advantage in the market.

Question 4
Write your answer for Part A here.

Channel Partner Channel Share (%) 2010

Franchised workshops 30.9

Spare part outlets 42.8

Oil shops 11.9

Non-Franchised workshops 14.2

Part B
Franchised workshop (39.5%) and NFWs (11.1%)

Write your answer for Part C here.

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

Franchised workshops 6,666.67

Spare part outlets 578.95

Oil shops 1103.45

 Non-Franchised workshops 400

Write your answer for Part D here.

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

Franchised workshops 5,323.31

Spare part outlets 577.39

Oil shops 884.15

Non-Franchised workshops 670.88

Part E

In 2005, 'sales (in liters) per channel outlet (for Castrol)' were much higher than franchised
workshops, spare part outlets, and oil shops.

Part F
Castrol must sell MCOs from spare parts shops and NFWs.
Question 5

Part A

Model 1

In the small segment, which accounts for 10% of the mechanic population 30 percent of oil
changes are due to it. This segment's mechanics frequently purchase oil and stock for resale.
Mechanics charge premium costs because people trust them, and as a result, they have a
secure financial situation.

Model 2

It accounts for 40% of the mechanic base. 50 percent of oil changes are due to it.
Purchase oil on a regular basis—not too often or too infrequently. Financially strapped and in
desperate need of assistance.

Model 3

It's made up of half of the mechanics' foundation. 20 percent of oil changes are due to you.
Mechanics in this group rarely buy oil unless their consumer work necessitates it. As a result,
their financial situation is precarious.

Write your answer for Part B here.

Module Parameter 1 Parameter 2 Parameter 3 Parameter 4 Parameter 5

1 Low High Low Low Medium

2 High Low Low High High

3 High Low Low Low Low

Question 6

Who will these CASAs report to?

Because distributors are the ones who supply in this distribution arrangement, CASAs will have
to report to them.

Who will these CASAs serve?

The CASAs will serve the Non-Franchised Workshops (NFWs). The CASAs are expected to
transport goods to the NFWs after obtaining them from distributors, therefore they will be
served by these NFWs.