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MT_Castrol

The document outlines the growth of the two-wheeler market in India, highlighting factors such as a younger demographic, strong capital markets, and rural demand. It discusses various distribution channels for motorcycle oil, including private and public players, and consumer buying behavior influenced by engine design advancements. Additionally, it identifies challenges faced by Castrol and provides insights on channel partner performance and sales metrics.

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0% found this document useful (0 votes)
4 views5 pages

MT_Castrol

The document outlines the growth of the two-wheeler market in India, highlighting factors such as a younger demographic, strong capital markets, and rural demand. It discusses various distribution channels for motorcycle oil, including private and public players, and consumer buying behavior influenced by engine design advancements. Additionally, it identifies challenges faced by Castrol and provides insights on channel partner performance and sales metrics.

Uploaded by

mrplsathya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Name SYED ZAMEER HUSSAIN

Question 1

Write your answer for Part A here.

Period Rate of Growth

2000-2004 27%

2004-2010 90%

2010-2015 50%

B. The three factors of the growth of the two-wheeler market in India mentioned in the case
are:

• Younger demographic market.

• Capital and financial markets doing well in India.

• Growth in demand from rural India.

Question 2

A. Private Players – Shell, Gulf, Valvoline Public Players – IOCL (Indian Oil Corporation
Limited), Bharat Petroleum, Hindustan Petroleum Corporation Limited.
B. Direct Distribution Channel – Forecourt (Petrol pumps and gasoline stations) and Franchise
workshops Distribution Channel through Distributors – Wholesalers, Company branded
workshops and Non-franchised workshops.

Question 3

A. Considering the below consumer buying behavior: • Shift in the shop to workshop impacted
the new demand for the Non – franchised workshops. • Feeling of an oil change as an
important aspect to ensure continuity in their personal mobility impacted a need for the
change of the consumer perception towards buying motorcycle oil. Based on the needs and
consumer segments, Castrol was able to identify three consumer segments in the market –
minimalists, appreciators, and enthusiasts.

B. The advancements in technology has led the changes in engine design. The newer design
has made the oil sumps size smaller and has increased the time between oil changes for
routine maintenance. • Shift from 2 strokes to 4 stroke engine has impacted consumer buying
behavior and choice of distribution channels. • 4 stroke engine design with a separate
lubrication system for the engine cooling impacted the change in the demand of motorcycle oil
from forecourts to workshops (FW or NFWs).

Question 4

Write your answer for Part A here.

Channel Partner Channel Share (%) 2010

Franchised workshops 31%


Spare part outlets 43%

Oil shops 12%

Non-Franchised workshops 14%

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

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

F. Following are the problem areas for Castrol: • Franchised Workshop • Oil Shops • Non –
Franchised Workshops

Question 5

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

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

• CASA will report to distributors.

• CASA will serve to Non–Franchise Workshops.

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