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SYNTHETIC OIL BUSINESS IN DELHI CAR MARKET(CASTROL EDGE

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COMPILED BY:ASHWANI SAFAYA SUMMER TRAINEE FEB 2010 ² MAY 2010 CASTROL INDIA LTD.

RESEARCH METHODOLOGY   



Market visit and survey for determining the potential of synthetic oil business. Interaction with dealers,customers,workshop owners, mechanics through designed questionnaire for each segment. To gather feedback about synthetic business. To ascertain the requirements and initiatives needed to develop synthetic oil business in Delhi/NCR.

RESEARCH OBJECTIVE
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To understand the synthetic oil market (mainly synthetic engine oil market of Delhi/Ncr). To analyze all the important properties and features of synthetic engine oil. To carryout comparative analysis of all the major brands of synthetic engine oil. To undertake exploratory survey of synthetic Engine Oil market of Delhi/Ncr with the help of Mechanics, workshop owners, oil dealers, retail outlets selling engine oil. To analyze all the survey data & formulate recommendations based on it.

by collecting and analyzing prices for customers (MRP) dealers (DLP).direct dealers. For Price: Direct meeting with the dealers to know other companies pricing.PRIMARY DATA COLLECTION ´ For Product: Car market survey through use of a questionnaire. and distributors. ´ .

Promotion: Observing the number of marketing activities done by the other companies by keeping the record of activities done by them. and making recommendations towards enhancing the Castrol synthetic marketing proposition especially ³place´ or in other words dealer expansion for synthetic oil business. assessing the benefits and any risks associated with possible options. ´ . after that evaluating the feedback. To establishing and implementing processes for obtaining ideas. and also analyzing the activities to feel the difference between them and Castrol marketing activities. Information and insights from the dealers regarding the Castrol marketing proposition for the synthetic oil brand.PRIMARY DATA COLLECTION ´ For Place: Obtaining feedback from the existing dealers of Castrol through direct interviews.

´ ´ .SECONDARY DATA COLLECTION ´ Through company websites.Journals. Mapping with respect to other competitors in the market in synthetic oil segment.synthetic oil articles Analyzing and interpretation.

. « The sample size was about 100 mechanics all over Delhi/Ncr. « There was a need to interact with them on a personal front to understand their problems and challenges. « An informal questionnaire was formed to gather information and feedback from the mechanics. « The survey took around 45 days to complete.SYNTHETIC MECHANIC SURVEY « All major synthetic mechanics were first sorted out from all major car markets in Delhi.

MOST PREFERRED SYNTHETIC OILMECHANIC PERCEPTION % PERCEIVED SHARE CASTROL EDGE 8% SHELL 12% MOBIL1 80% .

Castrol EDGE. Although mechanics have a very good brand image and trust on the quality of Castrol products in other category but it seems they are not well aware and properly informed about the synthetic oil of Castrol i. Some mechanics around 12% of the surveyed prefer Shell due to certain benefits attached and also reasonable quality. .FINDINGS ON PERCEIVED SHARE ´ ´ ´ ´ ´ Findings:The above pie chart clearly shows that 80% of the mechanics who recommend synthetic oil to customers prefer Mobil 1 as the brand is more visible and gives good performance results as per the perception of the mechanics. They are confused how to convince the customer of such a costly oil without any benefit to them.e.

´ This can be attributed to price difference in the synthetic brands as well as attached benefits to the mechanic in selling a particular synthetic oil brand.CONCLUSIONS Conclusions:´ The above pie chart clearly states that presently Mobil 1 is having a edge over other major synthetic players as mechanics have developed trust in the brand. ´ .

REASONS FOR THE PERCEPTION % share Attached benefits 40% Good Lubricating oil 30% Smooth running engine 30% .

Conclusions:´ The above pie chart confirms the fact that in addition to good quality of oil and its effects on smooth running of engine mechanics also give importance to their personal benefits in recommending oil.FINDINGS AND CONCLUSIONS Findings:´ The above pie chart clearly states that Mechanics give considerable importance to their attached benefits in selling a brand of oil. . ´ The mechanics also have faith in the quality of oil and its effects on the engine running and thus recommend on those parameters too.

FINDINGS AND CONCLU.. This will help in improving the perceived value Castrol in the minds of Mechanics. the company should ask its officers to talk to mechanics and know the reasons of lagging of Castrol synthetic brand from other brands. Castrol should take classroom programs for mechanics and teach them the new ways of delivering good service to their customers. This will eventually help in raising the awareness and sales generation of Castrol EDGE with the help of mechanics. So if the Castrol EDGE% is too less on the perceived chart it states that the brand is lagging in forming good perception in these parameters. So to change the perception of mechanic towards Castrol EDGE.CONTD. ´ ´ ´ The above chart shows that the perception of mechanics is formed from these three factors. .

INFLUENCING FACTORS FOR BUYING DECISION % MARKET INFLUENCE 70% 60% 50% 40% 30% 20% 10% 0% 60% 30% 10% Always Recommend Sometimes Recommend Never Recommend % MARKET INFLUENCE .

These recommendations are on the basis of the quality of oil. price margin of a particular brand. Conclusions:The above chart clearly states that around 90% of the mechanics recommend their customers to go for the usage of a particular brand. attached benefits to the mechanic and overall perceived value of the particular brand. .BUYING DECISION ´ ´ ´ ´ ´ ´ Findings:The above bar chart clearly shows that 60% of the mechanics recommend the use of specific engine oil to their customers. There are around 30% of mechanics who always recommend a particular brand of oil to their customers.FACTORS.

CASTROL EDGE-BRAND PERCEPTION % 80% 70% 60% 50% 40% % 30% 20% 10% 0% Good Quality Costly No Idea 70% 20% 10% .

e. There are about 10% of them who are not well aware about the synthetic brand of Castrol. Castrol EDGE is costly from other synthetic brands.CASTROL EDGE ´ ´ ´ ´ ´ ´ Findings:The majority 70% of the mechanics perceive Castrol as a good quality oil brand. Around 20% feel that the synthetic oil i. Conclusion:The above chart clearly states that although mechanics perceive Castrol as a quality brand name but they are not well aware and informed about the synthetic brand of the company.PERCEPTION. .

CUSTOMER PREFERENCE SELECTION 80% 70% 60% 50% 40% 30% 20% 10% 0% Discount Complimentary gifts 70% 20% 10% More oil SELECTION .

Only 10 % believe that the customers need extra oil. There are 20 % of dealers who believe that the customers are looking for gift items with the engine oil.CUSTOMER PREFERENCE ´ ´ ´ ´ ´ ´ ´ ´ Findings:Around 70% of the dealers believe that the customers need discount while buying engine oil. attractive and utility based gift items with the oil influence customer positively in taking a buying decision for a particular brand of oil. . It can be clearly seen that there is not much positive influence regarding getting extra oil to the customer. Also. Conclusion:The figures in the above graph clearly depicts that discount on oil plays a great role in influencing the customer to go for a particular brand of oil.

00% 14.00% 14% 4.00% .CASTROL EDGE V/S COMPETITION %BURN OFF 16.00% 6.00% 12.00% 2.00% 10.50% CASTROLEDGE 5W40 COMPETITIVE OIL %BURN OFF 4.00% 0.00% 8.

this test is an indication of how long an oil will last as well as how stable it can be over its lifetime. ´ . ´ EDGE has less than half the burn off when compared to competitor oil.TEST DESCRIPTION.This test is called the Noack.BURN OFF TEST DESCRIPTION:´ This test will ascertain how quickly an oil will burn off.

PERFORMANCE IN EXTREME CONDITIONS 1. FLOW TIME FLOW TIME(SEC) 45 40 35 30 25 20 15 25 10 5 0 40 41 FLOW TIME(SEC) CASTROL EDGE 5W40 COMPETITIVE OIL 15W40 COMPETITIVE OIL 20W50 .

REVOLUTIONS REVOLUTIONS 500 450 400 ¡50 ¡00     50 00 460 0 CASTROL EDGE 5W40 COMPETITIVE OIL ¢0W50 REVOLUTIONS 150 100 50 0 60 COMPETITIVE OIL ¢0W50 .2.

3. BATTERY DRAW BATTERY DRAW 400 350 300 250 200 150 360 180 CASTROL EDGE 5W40 BATTERY DRAW 100 240 COMPETITIVE OIL 15W 40 COMPETITIVE OIL 20W50 50 0 .

DEPOSITS DEPOSITS 500 450 400 350 300 250 200 150 100 50 0 460 110 CASTROL EDGE 5W40 DEPOSITS 190 COMPETITIVE OIL 20W50 COMPETITIVE OIL 20W50 .4.

This test was performed at a controlled -15degree Celsius.less battery drain.This means easier starting from cold. .less starter motor strain.and quicker delivery to vital components.PERFORMANCE IN EXTREME CONDITIONSCONCLUSION ´ EDGE 5W40 is formulated to present low viscosity at low temperatures.

5 0 CASTROL EDGE 5W40 -0.5 2 1.5 COMPETITIVE OIL 20W50 -0.CASTROL EDGE-FUEL ECONOMY V/S COMPETITION ´ EDGE showed an increase of 2.1 1 FUEL ECONOMY 0.8% in fuel economy testing against the competition.5 2. FUEL ECONOMY 2.8 -1 .

20W50 THERMAL CONTROL 141 140 139 138 141 137 136 135 134 133 136 THERMAL CONTROL CASTROL EDGE 5W40 COMPETITIVE OIL 20W 50 .THERMAL CONTROL V/S COMPETITION ´ EDGE runs 5 degrees cooler than competitor oil.CASTROL EDGE.

.HORSEPOWER MAXIMIZATION.7% more power than the competitor oil. That·s 45 meters. Only you would know the difference that a second can make. A feat demonstrating how EDGE 5W40 maximizes horsepower:EDGE 5W40 was rigged up against a semi synthetic oil on a Honda engine. That·s the difference between winning and losing.CASTROL EDGE ´ ´ ´ ´ On an average. and got a one second advantage. drove them from 0 to 160. Only you know the value of one second. EDGE 5W40 made about 1.

.BRIEF ANALYSIS ´ ´ ´ Quality´ is the top most factor which is affecting the buying decision of synthetic oil. in order to gain business and increase sales of the synthetic oil we have to develop the perceived value both in the minds of mechanics as well as customers about the ³Quality´ and ³benefits´ of synthetic oil Castrol ³EDGE´. Hence. in addition to it the perceived value both in terms of ³Quality "and ³Personal benefits´ to the mechanics in selling and recommending synthetic oil to the customer.

ANALYSIS-FACTORS The other factor which is affecting the buying decision of lube oil is the price of a particular brand. ´ . ´ So. ´ The brand has to justify the price structure to its users. in order to increase the perceived value of Castrol EDGE the company can offer discounts or complimentary gift items along with the bottle of synthetic lube oil.

´ Mechanics help a layman to judge good quality oil.MECHANIC INFLUENCE FACTOR The other major factor which is a affecting the buying decision of synthetic lube oil is the mechanic variable. ´ . So many users/customers buy oil on the recommendation of Mechanics. ´ So the company should try to develop a good perceived value in the minds of mechanics regarding synthetic oil.

MADE BY ASHWANI SAFAYA SUMMER TRAINEE FEB 2010 ² MAY 2010 CASTROL INDIA LTD. .