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Castrol India Limited: An Innovative Distribution Channel

Castrol India is an automotive and industrial lubricant manufacturing company that is a market leader in passenger car oils and premium 2-stroke and 4-stroke oils in India. It has a network of over 2000 distributors serving over 70000 retail outlets. Castrol conducted a distribution analysis and found low coverage of the after-market channel, particularly in smaller towns. It is considering options to achieve a 30% market share in the motorcycle crankcase oil market, including expanding its after-market channel through non-franchised workshops or spare parts shops. The recommendation is to focus on the after-market channel and route supplies through spare parts shops to better reach non-franchised workshops without employing direct sales representatives.

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RohanMohapatra
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749 views7 pages

Castrol India Limited: An Innovative Distribution Channel

Castrol India is an automotive and industrial lubricant manufacturing company that is a market leader in passenger car oils and premium 2-stroke and 4-stroke oils in India. It has a network of over 2000 distributors serving over 70000 retail outlets. Castrol conducted a distribution analysis and found low coverage of the after-market channel, particularly in smaller towns. It is considering options to achieve a 30% market share in the motorcycle crankcase oil market, including expanding its after-market channel through non-franchised workshops or spare parts shops. The recommendation is to focus on the after-market channel and route supplies through spare parts shops to better reach non-franchised workshops without employing direct sales representatives.

Uploaded by

RohanMohapatra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CASTROL INDIA LIMITED: AN

INNOVATIVE DISTRIBUTION
CHANNEL
 Automative and Industrial lubricant manufacturing company
 Public Limited company and its parent company , Castrol Limited(UK) holds 70.92% equity in
Castrol India
 Operating in India since 1910
 Manufacturing automotive lubricants under two brand:
 Castrol
 BP
 Market Leader in passenger car oils, premium 2 stroke ,4 stroke oils and multigrade diesel
engine oils.
 Networked with over 2000 distributors across 140 countries and serving over 70000 retail
outlets in India

CASTROL INDIA
PROBLEM INVESTIGATION
 Team divided the country in to 4 geographical sections based on population statistics:
 Greater than 5 million people( top 8 metro)
 1 million to 5 million people
 500,000 to 1 million people
 Less than 500,000
 Project team conducted a distribution analysis for the following services:
 Motorcycle spare part and accessory shops
 Oil Shops
 Non Franchised Workshops
 Mechanic workshops stocking and selling lubricants. Estimated to be 10% of market
 Mechanics working at franchised workshops and were ready to set up own business with less financial backing( 40 % of
mechanics and 50% of oil change)
 Small jobs mechanics( 50 percent of mechanic base)

 Inferences:
 Low coverage for after market channel
 Larger gaps in town with lower population
 Geographical area with less than 50000 people afforded greater potential
 To generate interest from distributors and sales for MCO 4T
 Distribution Strategy to achieve 30% market share in the MCO market
 Distribution channel strategy and route to market plan with regards to Non
franchised workshops

MANAGEMENT DECISION PROBLEM


OPTIONS TO ACHIEVE THE DESIRED
SALES

 After-Market Channel– NFW


 After-Market Channel– Spare-parts
 Franchised Workshop
Recommendations

 We are recommending Castrol to focus more on After Market since the market potential,
Castrol oil sales future growth and bikers choices are shifting towards it

 Within the After Market segment we are suggesting to route their supplies more through
spare parts channel since
 Spare parts channel can handle the NFW segment better
 There would be elimination of any employment of DSR
 Fear of DSR in technicalities will also be subsidised
 Distributors will be happy since they do not have to deal with NFW
 No extra cost in distribution will be incurred
THANK YOU

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