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BRAND EQUITY STUDY

Veedol Lubricants

By

Prem Prakash S
PGPM student,
Indian Institute of Management,
Tiruchirappalli

Under the guidance of


Mr. Debraj Banerjee
Senior Manager - Marketing

Trichy | Puducherry |
Salem 15, 2016
TIDE WATER OIL CO. (INDIA) LTD
Kolkata
ACKNOWLEDGEMENT

It is indeed a great pleasure and moment of immense satisfaction for me to


express my gratitude towards my project supervisor Mr. Debraj Banerjee,
Marketing Manager, Tide water oil co (I) ltd, for his constant support,
encouragement while carrying out the project work. I am very thankful to
him for his valuable guidance and attention he bestowed on me right from
the inception to the successful completion of this Endeavour.
I express my sincere gratitude to Mr. Anand Gajbhiye and his team, Mr.
Kaushik Dutta and Mr. Krishna Kumar Kushwaha for their invaluable support
and assistance.
I am also thankful to all those who helped me directly or indirectly in
successful completion of the project.
I found this internship opportunity extremely valuable. Being able to interact
with various stakeholders of the industry helped me improve my knowledge
and skillsets.
I thank you all once again for helping me explore my career path.

Prem Prakash S

1
1 INTRODUCTION 4

2 OBJECTIVE 4

3 METHODOLOGY 4

3.1 SURVEY METHOD 4


3.2 SURVEY LOCATIONS 4
3.3 SAMPLE SIZE 5

4 TRICHY, TAMIL NADU 5

4.1 TWO WHEELERS 5


4.1.1 RETAILERS 5
4.1.2 MECHANICS 8
4.1.3 CONSUMERS 9
4.2 HEAVY/MEDIUM DUTY COMMERCIAL VEHICLES 9
4.2.1 RETAILERS 9
4.2.2 MECHANICS 11
4.2.3 CONSUMERS 12
4.3 SMALL COMMERCIAL VEHICLES 13
4.3.1 RETAILERS 13
4.3.2 MECHANICS 14
4.3.3 CONSUMERS 15
4.4 PASSENGER CARS 16
4.4.1 RETAILERS 16
4.4.2 MECHANICS 17
4.4.3 CONSUMERS 18
4.5 TRACTORS 19
4.5.1 RETAILERS 19
4.5.2 MECHANICS 20
4.5.3 CONSUMERS 21
4.6 QUALITATIVE ANALYSIS TRICHY 22

5 PONDICHERRY (UT) 24

5.1 TWO WHEELERS 24


5.1.1 RETAILERS 24
5.1.2 MECHANICS 26
5.1.3 CONSUMERS 27
5.2 HEAVY/MEDIUM DUTY COMMERCIAL VEHICLES 28
5.2.1 RETAILERS 28

2
5.2.2 MECHANICS 29
5.2.3 CONSUMERS 30
5.3 SMALL COMMERCIAL VEHICLES 31
5.3.1 RETAILERS 31
5.3.2 MECHANICS 32
5.3.3 CONSUMERS 33
5.4 PASSENGER CARS 34
5.4.1 RETAILERS 34
5.4.2 MECHANICS 35
5.4.3 CONSUMERS 36
5.5 TRACTORS 37
5.5.1 RETAILERS 37
5.5.2 MECHANICS 38
5.5.3 CONSUMERS 39
5.6 QUALITATIVE ANALYSIS - PONDICHERRY 40

6 SALEM, TAMIL NADU 42

6.1 TWO WHEELERS 42


6.1.1 RETAILERS 42
6.1.2 MECHANICS 44
6.1.3 CONSUMERS 45
6.2 HEAVY/MEDIUM DUTY COMMERCIAL VEHICLES 46
6.2.1 RETAILERS 46
6.2.2 MECHANICS 47
6.2.3 CONSUMERS 48
6.3 SMALL COMMERCIAL VEHICLES 49
6.3.1 RETAILERS 49
6.3.2 MECHANICS 50
6.3.3 CONSUMERS 51
6.4 PASSENGER CARS 52
6.4.1 RETAILERS 52
6.4.2 MECHANICS 53
6.4.3 CONSUMERS 54
6.5 TRACTORS 55
6.5.1 RETAILERS 55
6.5.2 MECHANICS 56
6.5.3 CONSUMERS 57
6.6 QUALITATIVE ANALYSIS SALEM 58

7 RECOMMENDATIONS 60

3
1 INTRODUCTION
Tide Water Oil Co. (India) Ltd. is a part of the multi divisional Andrew Yule group with
head office at Kolkata and regional offices at Mumbai, Chennai and New Delhi. Tide
Water Oil has been manufacturing and marketing the Veedol brand in India since its
inception in 1928. Tide Water Oil is now a leading manufacturer and marketer of
automotive lubricants in India.

2 OBJECTIVE
1. CATEGORY UNDERSTANDING & CONSUMER BEHAVIOUR
Segment-wise consumer usage practice
Key influencing factor for Retailer, Mechanic and Consumer
Consumer behaviors profiling segment-wise
Price Sensitivity
2. BRAND STANDING (VS COMPETITION)
Brand adopted in past, current brand and Future considerations
Brand Awareness
Pull vs push brands
Communication strategy for various Brands
3. BRAND EQUITY, MARKET OPPORTUNITIES
Understanding Brand strength against competitor brands and its value
Gap analysis and Market operated price (MOP) comparison between brands

3 METHODOLOGY

3.1 SURVEY METHOD


Stakeholders in an Engine oil industry are identified as Retailers, Mechanics
and Consumers. A set of 20 questions for each category of stakeholder is
prepared. Each question captures one unique parameter for the analysis. The
answers for questionnaire is collected without revealing the veedol brand
name. This is to remove any biases if the respondent thinks we survey for a
specific brand. Apart from stakeholders, we have segmented the market as per
the type of vehicles. Five segments including Two wheelers, Passenger cars,
Small commercial vehicles (SCV), Heavy Medium commercial vehicles(HMCV)
and Tractors are surveyed. Surveys are done under the impression as an
academic project to make the respondent less doubtful.

3.2 SURVEY LOCATIONS


Three cities with dominant Tamil speaking population from Southern India is
chosen for this study. These three locations include Trichy, Salem (both from
Tamil Nadu) and Puducherry (Union territory). Tour plan was devised to plan
the survey. Trichy and its surrounding areas were covered from 8 th April to 23rd

4
April. Puducherry was covered between 24th April to 8th May and Salem was
covered from 9th May to 21st May.

3.3 SAMPLE SIZE


To keep the findings within range and reduce outliers, 12 samples of retailers,
13 samples of mechanics and 20 samples of consumers were allowed to
respond to survey questionnaire for each segment. With this calculation, each
location will have a total of 225 responses and total of 3 locations would be
675. Samples are selected on a random and convenient basis depends on the
locations. Retailers with single brands and petrol bunks that sell oils were
omitted in the survey.

4 TRICHY, TAMIL NADU


Locate in the center of Tamil Nadu, Trichy is well connected with all the cities and
acts as a hub for many highways. With industries such as BHEL, Rane, Trichy has a
considerable in and out traffic of HCVs & SCVs regularly. Being in Cauvery delta
area, Tractor market is also omnipresent throughout the periphery of the city. PCMO
& Two wheeler markets are among the top 5 in the state. Statistics from TN RTO
websites shows that Trichy has a 4% share of total vehicles in TN in SCV, PCMO,
Tractors & Two wheeler segments and 5% share in HCV segment.

5
4.1 TWO WHEELERS
4.1.1 Retailers
Castrol and Gulf are commonly stocked by surveyed retailers. Shell and
Valvoline increasing in their shelf space across retailers. Two wheeler market
is flooded with used oils. Many retailers sell used oils exclusively in their
stores.

4.1.1.1Brand Presence
Castrol present in all the retail shops surveyed. This is due to the fact that
customers are able to easily relate Castrol to engine oil. So this gives the
retailers an identity that the shop sells engine oils. So Castrol is kept at a
prominent place in all shops.
Gulf, which is very much liked by mechanics in and around Trichy (for
reasons unknown!), takes the second in shelf space of retailers because of
the demand from mechanics.
Genuine oils such as Hero, Yamalube, Bajaj & Honda also present in some of
the shops but sells little with only few unique customers

Brand presence out of 12 retail shops


14 12
12 10
10 8 8 8
8
6 5 5
4
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4.1.1.2Summary of Analysis
Surveys were conducted between 8th April to 23rd April 2016.

Total Sample Size 12 Retailer (Multi brand, Multi-segment)

Areas covered Cantonment (Promenade road), Tiruverumbur, Vayalur


road

Popular Brands Castrol, Gulf, Valvoline, Shell, AC Delco, Genuine oils,


Filtered used oils

6
Recommended Brands Castrol, Gulf, Shell

Top selling factors Mechanics recommendations,


across brands
Great performance

Brand Ratings In-shop branding Castrol

Packaging Shell

Service delivery AC Delco

4.1.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

Sub-brand Packsiz MRP MOP Margin


e
Castrol Activ go 0.9 225
1 245
20W-40 Power1 1 325 300 8%
20W-50 325 8-10%
10W-30 Activ scooter 0.8 245
10W-40 780
Shell 20W-40 Advance AX3 1 278
0.9 259
20W-40 Advance AX5 0.9 288
1 355 300 10%
Premium 0.9 312
20W-50
Premium 1 314 300 10%
10W-30 Advance AX5 0.9 288 270 10%
10W-40 Advance Ultra 1 399 380 10%
15W-40
15W-50

7
Mobil 20W-40 Super 1 295
20W-50 Super 1 321
Super 4T 0.9 306
10W-30 Mobil1 1 326
10W-40 Extra 4T 1 322
Veedol 20W-40 1 280 11%
20W-50 380 11%
10W-30 0.8 255 11%
10W-40 380 11%
Servo 20W-40 1 250 11%
20W-50
10W-30
Gulf 20W-40 Pride 4t 1 232
0.9 213
20W-40 Pride 4T plus premium 1 329 280 12-15%
0.9 257 250 12%
20W-50 Pride 1 268
10W-30 0.9 260
Valvoline 20W-40 Champ 4T 1/0.9 280 300/280
20W-50 4T Premium 1 380 380
10W-30 0.8 270
MAK 20W-40 260
20W-50 285
10W-30 300

4.1.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.

4.1.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Castrol is present in all
mechanics recommendations list.

8
s am ong TOP 3 recom m endation by 2 wheeler m echanics (Sam ple size
14 13
12 11
10 8
8 7
6
6 5
4 2
2
0
Castrol Servo Gulf Shell MAK Valvoline Elf/Total

Viscosity grade wise market share

Others; 8%
15W-40; 5%
10W-30; 2%

20W-40; 85%

Out of 10 vehicles, with sample size


of 13 mechanics, we got 130 responses of what all the grades of oil being
used for the vehicles.
Majority of the two wheelers (84.6%) use the grade of 20W-40. 10W-30, which
is being projected as a scooter oil now-a-days gets used very ow (2%), but
awareness is increasing about this scooter segment.

4.1.2.2Summary of Analysis

Total Sample Size 13 Mechanics

Areas covered Spread across city, no specific concentrated areas

Common Grade 20W-40 (84.6%)

9
Recommended brands Castrol (Power1), Shell, Gulf

Pushed Brands MAK

Factors for Quality, Service, Availability


recommendation

Brand perception Quality Castrol


rating
Product performance Castrol

Price Valvoline

Value for money Valvoline

Packaging Shell

Promotion Castrol

4.1.3 Consumers
A sample of 20 two wheeler owners are surveyed for this. Sample includes a
mix of bikes below 150cc, above 150cc and scooters.

4.1.3.1Observations
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.

>150cc 30%, 100-150cc 40%, Scooters 30%,


90% owners prefer authorized service centers for first 3 years
Of those who service through mechanics, 90% knows about the
engine oil used, 60% buys it themselves from shop.
Not price sensitive, does not know about oil grades, Performance
being the only factor.

4.1.3.2Summary of Analysis

Total Sample Size 20 two wheeler owners

Popular Brands MAK

Brand perception Performance Castrol


rating
Value for money Gulf

10
Mechanics choice Shell, Gulf

Price Gulf

Advertisement Castrol

4.2 HEAVY/MEDIUM DUTY COMMERCIAL VEHICLES


4.2.1 Retailers
Gulf, Servo are commonly used brand by surveyed retailers throughout Trichy.
Other common brands include Castrol, Servo and MAK. HMCV market is also
flooded with used oils.

4.2.1.1Brand Presence
Servo present in 11 out of 12 retail shops surveyed. This is because Servo is
a well moving brand among cost conscious HMCV consumers (specially
drivers).
Gulf and Castrol takes the second in shelf space of retailers because of the
demand from both consumers and mechanics. Low cost used oils are also
commonly bought by drivers of old/rented vehicles.

Brand Presense (12 Retailers)


12 11
10 10
10
8
8 7
6
6 5 5
4
4
2
2
0
Servo Castrol Gulf MAK Valvoline Veedol Shell Other* Elf/Total HP

4.2.1.2Brief on the Visit:


Surveys were conducted between 8th April to 23rd April 2016.

Total Sample Size 12 Retailer (Multi brand, Multi-segment)

11
Areas covered EB road, Tiruverumbur, Othakadai (Promenade road)

Popular Brands Servo, Castrol, Gulf, Valvoline, Shell, Veedol, Filtered


used oils

Recommended Brands Servo, Castrol, Gulf

Top selling factors Price, Great performance, OEMs recommendations


across brands

Brand Ratings In-shop branding Servo

Packaging Servo

Service delivery Gulf

4.2.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

Sub-brand Packsiz MRP MOP Margin


e
Castrol 15W-40 CI4 Turbo + 10 3000
15W-40 CH4 Turbo 10 2700
20W-40 CF4 Prima 7.5 2000 8%
15W-40 CF4 CRB Plus 10 2750 8-10%
Shell 15W-40 CF4 Rimula R3X 7.5 1900
Mobil 15W-40 Delvac Super 10 2400
Multigrade 1300
15W-40 CF4 Delvac 10 2150
Veedol
15W-40 CH4 Turbo pro 10 2800 11%
15W-40 CF4 HDC 10 2400 11%
Servo 20W-40 MG Super 10 1900 11%
15W-40 CF4 Pride 10 2150

12
15W-40 CF4 Premium 10 2400
Gulf 15W-40 CH4 LE max 10 3200
15W-40 CF4 Superfleet 10 2800
Valvoline 15W-40 CF4 All fleet 10 2500
15W-40 CH4 Premium classic 10 2700
15W-40 CI4 Premium classic 10 3000
plus
MAK 15W-40 10 2000
BP 20W-40 10 2040
Vanellus

4.2.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.

4.2.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Gulf is present in 12
mechanics recommendations list. They even recommend it for Non-Ashok
Leyland vehicles.

ands am ong TOP 3 recom m endation by HMCV m echanics (Sam ple size 1
14
12
12
10
10
8 7 7
6
4
2 2 2
2
0
Gulf Servo Castrol Shell MAK Valvoline Veedol

4.2.2.2Brief of the survey

Total Sample Size 13 Mechanics

13
Areas covered EB road, Chennai bypass, Tiruverumbur

Common Grade 15W-40 CF4 (68.3%)

Recommended brands Gulf, Servo, Castrol

Pushed Brands Servo

Factors for Price, Performance, OEM recommendations


recommendation

Brand perception Quality Castrol


rating
Product performance Castrol

Price Valvoline

Value for money Valvoline

Packaging Shell

Promotion Castrol

4.2.3 Consumers
A sample of 20 lorry & bus owners are surveyed for this. Sample includes a
mix of brands such as Tata, Eicher, Ashok Leyland, Bharatbenz.

4.2.3.1Observation:
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.

Around 50% market is of Ashok Leyland vehicles.


70% owners (drivers of rented vehicles not included) decided on Oil
brand to use within the 1-2 years of vehicle purchase and have not
changed their brand since then.
Of those who service through mechanics, 100% knows about the
engine oil brand used, 60% knows sub-brand name too.
Very price sensitive, especially drivers of rented lorries, Price &
Performance being the only factor.
Brand change: Easily convinced by retailers pushed brand. Hard to
convince using traditional advertisements.

14
4.2.3.2Brief of the survey

Total Sample Size 20 owners and drivers

Popular Brands Servo

Brand perception Performance Castrol


rating

4.3 SMALL COMMERCIAL VEHICLES


4.3.1 Retailers
Servo and Castrol are commonly used brand by surveyed retailers throughout
Trichy. Other common brands include Shell, Gulf and MAK. SCV market is also
flooded with used oils.

4.3.1.1Brand Presence
Servo present in 11 out of 12 retail shops surveyed. This is because Servo is
a well moving brand among cost conscious SCV consumers.
Castrol takes the second in shelf space of retailers because of the demand
from both consumers and mechanics. Low cost used oils are also commonly
bought by drivers of old/rented vehicles.

Brand Presence (12 retailers)


12 11
10
10
8 8
8 7
6
6 5 5
4 4
4
2
2

0
Servo Castrol Gulf MAK Shell Veedol Valvoline Other* Elf/Total Mobil HP

4.3.1.2Brief on the Visit:


Surveys were conducted between 8th April to 23rd April 2016.

15
Total Sample Size 12 Retailer (Multi brand, Multi-segment)

Areas covered EB road, Tiruverumbur, Othakadai (Promenade road)

Popular Brands Servo, Castrol, Gulf, Shell, MAK, Filtered used oils

Recommended Brands Servo, Castrol, Gulf

Top selling factors Price, Great performance, OEMs recommendations


across brands

Brand Ratings In-shop branding Castrol

Packaging Servo

Service delivery Gulf

4.3.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

Sub-brand Packsiz MRP MOP Margin


e
Castrol 15W-40 RX super max 3 750
CH4
15W-40 CF4 RX super 3 700 8%
Shell 15W-40 CF4 Rimula R2 3 720
15W-40 Helix H5 3 760
CH4
Mobil 15W-40 Delvac 3 680
CH4
Veedol 15W-40 CF4 3 650 11%
Servo 20W-40 1 200 11%
CNG
15W-40 CF4 Pride 3 640
Gulf 15W-40 CF4 3 650
Valvoline 15W-40 CF4 All fleet 3 650

16
MAK 15W-40 3 640
BP Vanellus 20W-40 1 220

4.3.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.

4.3.2.1Mechanics recommendation
With initially we asked mechanics what all his top 2 recommendations for
consumers when it comes to lubricant brands. Castrol is present in 13
mechanics recommendations list.

among TOP 2 recommendation by SCV mechanics (Sample


14 13
12
10
8 6
6 5
4 2
2
0
Castrol Servo Shell Gulf

4.3.2.2Brief of the survey

Total Sample Size 13 Mechanics

Areas covered EB road, Tiruverumbur, Ponmalai

Common Grade 15W-40 CF4 (80%)

Recommended brands Castrol, Gulf, Servo

Pushed Brands Servo

Factors for Price, Performance, OEM recommendations


recommendation

Brand perception Quality Castrol

17
rating Product performance Castrol

Price Valvoline

Value for money Valvoline

Packaging Shell

Promotion Castrol

4.3.3 Consumers
A sample of 20 SCV & van owners are surveyed for this. Sample includes a
mix of brands such as Tata, Piaggio, Ashok Leyland.

4.3.3.1Observation:
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.

Around 80% market is of vehicles is driven by owners themselves.


60% owners (drivers of rented vehicles not included) decide on Oil
brand to use within the 1-2 years of vehicle purchase and have not
changed their brand since then.
Of those who service through mechanics, 100% knows about the
engine oil brand used, 60% knows sub-brand name too.
Moderate price sensitive, Price & Performance being the only factor.
Castrols two ranges (RX & CRB) go by the colour of the packs, people
specifically ask for white colour packs etc.

4.3.3.2Brief of the survey

Total Sample Size 20 owners and drivers

Popular Brands Castrol

Brand perception Performance Castrol


rating

18
4.4 PASSENGER CARS
4.4.1 Retailers
Castrol and Shell are commonly used brand by surveyed retailers throughout
Trichy. Other common brands include Gulf, Servo, Mobil and MAK.

4.4.1.1Brand Presence
Castrol is present in 12 out of 12 retail shops surveyed, followed closely by
Shell.
Mobil and Servo takes the second in shelf space of retailers because of the
demand from both consumers and mechanics. Low cost used oils are also
commonly bought by drivers of old/rented vehicles.

Brand Presense (12 Retailers)


14
12
12 11
10
8 8
8
6 6
6
4 4 4
4 3
2
0
Castrol Shell Mobil Servo Gulf MAK Elf/Total Valvoline Veedol Other*

4.4.1.2Brief on the Visit:


Surveys were conducted between 8th April to 23rd April 2016.

Total Sample Size 12 Retailer (Multi brand, Multi-segment)

Areas covered Othakadai (Promenade road), Cantonment area

Popular Brands Castrol, Shell, Mobil, Servo, Lesser known brands (AC
delco, Crizol)

Recommended Brands Castrol, Shell

Top selling factors Great performance, Mechanics recommendations

19
across brands

Brand Ratings In-shop branding Castrol

Packaging Castrol

Service delivery Shell

4.4.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

Sub-brand Packsiz MRP MOP Margin


e
Castrol 0W-40 /5W-40 Edge 4 2900
5W-40 Magnetic 3.5 1500
15W-40 Magnetic Diesel 3.5 1550 8%
15W-40 GTX diesel 3.5 1250
20W-50 GTX 3.5 1000 8-10%
Shell 5W-40 Helix ultra 3.5 2500
15W-40 Helix H5 3.5 1350
20W-50 Helix H3 3 800
Veedol 15W-40 3 750
Servo 20W-50 3 500 11%
15W-40 3.5 1150
Gulf 15W-40 3.5 1300
MAK 20W-50 3 630

4.4.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.

20
4.4.2.1Mechanics recommendation
With initially we asked mechanics what all his top 2 recommendations for
consumers when it comes to lubricant brands. Castrol is present in 10
mechanics recommendations list. Closely followed by Shell Helix.

nds am ong TOP 2 recom m endation by PCMO m echanics (Sam ple size 13
12
10
10
8
8
6 5
4 3
2
0
Castrol Shell Gulf Servo

4.4.2.2Brief of the survey

Total Sample Size 13 Mechanics

Areas covered Cantonment area, Across city

Common Grade 15W-40 CF4 (54.3%)

Recommended brands Castrol, Shell

Pushed Brands Servo

Factors for Performance, Brand, Mechanics recommendations


recommendation

Brand perception Quality Castrol


rating
Product performance Castrol

Price Valvoline

Value for money Valvoline

Packaging Shell

21
Promotion Castrol

4.4.3 Consumers
A sample of 20 car owners are surveyed for this. Sample includes a mix of
brands such as Tata, Hyundai, Maruthi Suzuki, Ford etc.

4.4.3.1Observation:
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.

Around 70% over the counter purchase is made by owners of the


vehicle.
Of those who service through mechanics, 100% knows about the
engine oil brand used, 90% knows sub-brand name too.
Not price sensitive at all, especially family car owners, Brand,
mechanics recommendation & Performance being the factors.
Shell helix is aggressively capturing market from Castrol

4.4.3.2Brief of the survey

Total Sample Size 20 owners and drivers

Popular Brands Castrol, Shell

Brand perception Performance Castrol


rating

4.5 TRACTORS
4.5.1 Retailers
Castrol, Servo are commonly used brand by surveyed retailers throughout
Trichy. Genuine oils mostly used wherever OEM recommends it.

4.5.1.1Brand Presence
Castrol present in all 12 retail shops surveyed. This is because Castrol CRB
became a common brand for tractors asked specifically by consumers
Servo takes the second in shelf space of retailers because of the demand
from both consumers and mechanics. Other* here means all the OEM
genuine oils for tractors.

22
Brand presence (12 retailers)
14
12
12
10
10
8
8 7
6 6 6
6
4 4
4

0
Castrol Servo Other* Veedol Shell Gulf MAK Elf/Total Valvoline

4.5.1.2Brief on the Visit:


Surveys were conducted between 8th April to 23rd April 2016.

Total Sample Size 12 Retailer (Multi brand, Multi-segment)

Areas covered Othakadai (Promenade road)

Popular Brands Servo, Castrol, Gulf, Valvoline, Veedol, Geniune oils

Recommended Brands Castrol, Servo

Top selling factors Great performance, OEMs recommendations


across brands

Brand Ratings In-shop branding Servo

Packaging Servo

Service delivery Castrol

23
4.5.1.3Market Operated Price data:
As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

Sub-brand Packsiz MRP MOP Margin


e
Castrol 15W-40 Multi 7.5 2500
15W-40 CF4 CRB Plus 7.5 2300 8-10%
Shell 15W-40 CF4 Rimula 7.5 1900
Veedol 15W-40 CF4 7.5 1800
Servo 15W-40 CF4 7.5 1500
Total 15W-40 CF4 Super HDB 7.5 1700
Ultra
Gulf 15W-40 CF4 10 3200
MAK 15W-40 7.5 1350
BP 15W-40 7.5 1700
Vanellus

4.5.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.

4.5.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Tractor mechanics work alone
and mostly in rural areas. Still, Castrol is present in 10 mechanics
recommendations list. Wherever OEM oils are available, mechanics
recommend the same.

24
s among TOP 3 recommendation by tractor mechanics (Sample siz
12
10
10
8 8 8
8
6
6

4 3

0
Castrol Shell Servo Veedol Gulf Others*

4.5.2.2Brief of the survey

Total Sample Size 13 Mechanics

Areas covered Rural areas around Trichy

Common Grade 15W-40 CF4 (100%)

Recommended brands Castrol, Veedol, Shell, Servo

Pushed Brands Servo

Factors for Performance, OEM recommendations


recommendation

Brand perception Quality Castrol


rating
Product performance Castrol

Price Valvoline

Value for money Valvoline

Packaging Shell

Promotion Castrol

4.5.3 Consumers
A sample of 20 tractor owners are surveyed for this. Sample includes a mix of
brands such as M&M, John deere, TAFE, Sonalika, Escorts etc.

25
4.5.3.1Observation:
A decision on changing lubricants is calculated by both in terms of usage
hours and certain period of time.

OEM recommendations are strictly followed in Oil usage by owners.


Mechanics recommendation plays only a little part.
70% owners are single brand consumers i.e., they have using only
single brand of oil since beginning.
Of those who service through mechanics, 100% knows about the
engine oil brand used, only Castrol consumers know about its sub-
brand name (CRB).
Not price sensitive, because they expect good performance, willing to
pay higher for that. Performance being the only factor.
Multi vehicle owners (HMCV, Tractors) prefer single oil purchase.
Single oil to use in all their fleet diesel engine vehicles. (eg. Castrol
Multi)

4.5.3.2Brief of the survey

Total Sample Size 20 owners and drivers

Popular Brands Castrol

Brand perception Performance Castrol


rating

4.6 QUALITATIVE ANALYSIS TRICHY


Since Trichy has a perfect mixture of urban and rural markets for most auto
spares, the engine oil market in the city was both scattered and concentrated
depending on the segment. For example, the retail oil market for 2-wheeler, PCMO
& Tractor are all concentrated at specific locations within the city, It acts as a hub
for consumers and mechanics across rural & urban areas to reach out for their
needs.
2-Wheeler Market:

Market is flooded with cheap oils, both Used oils & locally manufactured oils.
Prices of used oil goes as low as Rs. 80 per ltr.
Most retailers perception towards various engine oil brands are subjective in
nature and they find no particular major differences in performance between
various oil brands. They just cater the needs of consumers price with the
brand at that price level

26
Urban retailers had number of brands in display at their stores. Stand out in
this is the Motul which is the most preferred by the >200cc bike owners who
takes a special care on their bikes. Example Royal enfield owners. Price of
Motul is as much as 3 times of other brands, but still it was maintained by
almost all the urban retailers. Rural areas generally has atleast 3 common
brands used by the area mechanics. Common brands in order- Castrol, Gulf,
Shell, AC delco, Valvoline, Servo, MAK and genuine oils
Selling oil barrels directly to the mechanics being a major threat as perceived
by retailers followed by duplicate oils in market.
2-wheeler mechanics prefer their customers to buy oils for their vehicles. But
wherever required they would like to go with Castrol, Shell & Gulf oil in 20W-
40 grade. Reason being that they prefer topline oils to make the customer
come to their shops again.
Some mechanics have a direct dealing with distributers to buy specific brands
in barrel of 50ltr. By doing so, they get a high margin per liter, but issues
being in the payment side.
Consumers in this market are generally well informed when it comes to
engine oils. They are not price sensitive and prefer performance over cost.
Some consumers are aware of duplicate oils specially in Castrol & Servo
brands and states it as their reason for brand switch
Passenger Cars:

Retailers faces two types of unique consumers. One is the owners of cars
bought by individuals/families who always prefer the best brands. Second is
the rented car drivers who prefer low cost oils.
Common brands include Castrol, Shell, Mobil
Mechanics, wherever required uses the brand of his customers choice. If he
needs to give a suggestion in this, he usually prefers Castrol over others 8/10
times. Other brand suggestions include Shell, Mobil, Gulf, Veedol, Servo, MAK.
Two of the surveyed mechanics used Shell as their only preferred brand out of
their own experiences.
Consumers in this segment also are well informed about the oil used in their
cars. They do not take blind suggestions from Mechanics. They would like to
research on their own before choosing a suitable brand for their cars.

Tractors:

There are only 3 tractor specific retail oil shop in the city. This information is
gathered from mechanics. But still other HCV/SCV retailers also sold diesel
grade oil which can be used for tractors. Other retailers sell only specific
brands at low quantity.
Survey on the 3 retail shop showed few insights about Geniune OEM oils in
the market. TAFE sold their own engine oils. They sold a large quantity of
Castrol CRB, CRB+. Customers ask for CRB specifically when it comes to
tractor oil. Gulfs XHD supreme also tend to sell good. Veedol is commonly
used for Harvesting vehicle in this market.

27
UTTOs are also a common affair in tractor market which is mostly dominated
by OEM recommendations. Customers only prefer what recommendations
given by manufacturers for UTTO.
Mechanics are scattered across rural markets with most of them does not
have a proper workshop but travel to tractor location with their equipments
to service or repair. They commonly suggest for Castrol CRB for tractors. But
if his customers has his own choice, mechanics do not interfere with that.
Consumers of aged tractors preferred Castrol CRB and Gulf as their preferred
brand. New tractor owners go with OEM suggestions and their genuine oils.
HCV/MCV:

Survey in this segments retail shops show that most of the customers are
price sensitive. Many prefer oils as per the cash in hand. So the retailers
provide oils at all price point from local oils to affordable ones (Servo, MAK) to
recommended, slightly costly oils (Gulf, Castrol)
Common brands include- Gulf, Servo, MAK, Castrol, Valvoline
Mechanics market is concentrated in two areas, EB Road and Tiruverumbur. In
both the places, Gulf oil is commonly used for all types of vehicles. But the
option is left to owners/drivers wherever required because of the cost
involved in buying oil in large quantity (10/15 ltrs).
Consumers are mostly drivers of private players. They choose low cost oils for
their vehicles. Ashok Leyland owners go by OEM recommendation by using
Gulf. Tatas mostly go for Castrol & Shell.
SCV:

Retailers observed around 70% of their customers are owner cum drivers. So
they preferred only OEM recommendation or quality & performance when
choosing engine oil.
Most common brands are-Castrol minitruck, Servo, Gulf, Shell Rimula, Gulf,
Valvoline
Mechanics recommend Castrol or shell for Tata models like ace, winger
because of OEM recommendation, Gulf for Leyland SCVs. Some of the
mechanics choose their brand as per the coupon values they get.
Consumers are not informed about the use of oil brands. They either use the
OEM recommendation or mechanics/retailers recommendations. They are not
loyal to any brands.

5 PONDICHERRY (UT)
Located in the Bay of Bengal coastal line of southern India, Puducherry, a former
French colony, is well connected with Chennai. Since it is an Union territory, there
are various benefits that the government and its people get as a part of it. Major
things include a reduced cost of living compared to its neighbor state Tamil Nadu

28
due to tax benefits. Puducherry is a hub of tourists from all over southern India. It is
also an agriculture hub for nearby villages. It has well known medical college JIPMER
and auroville ashram. Two wheeler market is driven by rented vehicles and
considerable local population. HCV, MCV markets also of good numbers. Since
heavy vehicles are not allowed into French, Tamil town of Puducherry, SCVs are very
common sight within city limits. Nearby Ginjee, Villupuram areas are hubs for
tractors sales and services.

5.1 TWO WHEELERS


5.1.1 Retailers
Castrol and Mobil are commonly stocked by surveyed retailers. Shell, Servo,
Valvoline, Veedol comes next. Two wheeler market is not so flooded with used
oils. Only very few retailers sell used oils exclusively in their stores.

5.1.1.1Brand Presence
Castrol present in all the retail shops surveyed. This is due to the fact that
customers are able to easily relate Castrol to engine oil. So this gives the
retailers an identity that the shop sells engine oils. So Castrol is kept at a
prominent places in all shops.
Geniune oils such as Hero, Yamalube, Bajaj & Honda also present in some of
the shops but sells little with only few unique customers

Brand presence out of 12 retailers


14
12
12 11
10 9
8 8
8
6 6
6 5 5
4 4 4
4 3
2
2

0
0
AK
il

ul
l

l
o

P
el

do
ob

rv

er

H
ot
Sh

M
Se

H
M

M
Ve

5.1.1.2Summary of Analysis
Surveys were conducted between 24th April to 8rd May 2016.

29
Total Sample Size 12 Retailer (Multi brand, Multi-segment)

Areas covered 100 feet road, Villianur, Gorimedu

Popular Brands Castrol, Mobil, Gulf, Valvoline, Shell, Veedol

Recommended Brands Castrol, Mobil, Shell

Top selling factors Mechanics recommendations,


across brands
Great performance

Brand Ratings In-shop branding Castrol

Packaging Shell

Service delivery AC Delco

5.1.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

Sub-brand Packsiz MRP MOP Margin


e
Castrol Activ go 0.9 225
1 245
20W-40 Power1 1 325 300 8%
20W-50 325 8-10%
10W-30 Activ scooter 0.8 245
10W-40 780
Shell 20W-40 Advance AX3 1 278
0.9 259
20W-40 Advance AX5 0.9 288
1 355 300 10%
Premium 0.9 312

30
20W-50
Premium 1 314 300 10%
10W-30 Advance AX5 0.9 288 270 10%
10W-40 Advance Ultra 1 399 380 10%
15W-40
15W-50
Mobil 20W-40 Super 1 295
20W-50 Super 1 321
Super 4T 0.9 306
10W-30 Mobil1 1 326
10W-40 Extra 4T 1 322
Veedol 20W-40 1 280 11%
20W-50 380 11%
10W-30 0.8 255 11%
10W-40 380 11%
Servo 20W-40 1 250 11%
20W-50
10W-30
Gulf 20W-40 Pride 4t 1 232
0.9 213
20W-40 Pride 4T plus premium 1 329 280 12-15%
0.9 257 250 12%
20W-50 Pride 1 268
10W-30 0.9 260
Valvoline 20W-40 Champ 4T 1/0.9 280 300/280
20W-50 4T Premium 1 380 380
10W-30 0.8 270
MAK 20W-40 260
20W-50 285
10W-30 300

5.1.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.

5.1.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Castrol is present in all
mechanics recommendations list.

31
among TOP 3 recommendation by 2 wheeler mechanics (Sample s
14 13
12
10
8 7
6 6 6
6 5
4
4 3
2
2
0
Castrol Servo Gulf Shell Mobil Valvoline Veedol MAK Elf/Total

Out of 10 vehicles, with sample size of 13 mechanics, we got 130 responses


of what all the grades of oil being used for the vehicles.
Majority of the two wheelers (78.6%) use the grade of 20W-40. 10W-30, which
is being projected as a scooter oil now-a-days gets used very ow (6%), but
awareness is increasing about this scooter segment.

5.1.2.2Summary of Analysis

Total Sample Size 13 Mechanics

Areas covered New bus stand area, 100 ft road

Common Grade 20W-40 (78.6%)

Recommended brands Castrol, Shell, Mobil

Pushed Brands Mobil

Factors for Quality, Service, Availability


recommendation

Brand perception Quality Castrol


rating
Product performance Castrol

Price Mobil

Value for money Mobil

32
Packaging Shell

Promotion Mobil

5.1.3 Consumers
A sample of 20 two wheeler owners are surveyed for this. Sample includes a
mix of bikes below 150cc, above 150cc and scooters.

5.1.3.1Observations
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.

>150cc 20%, 100-150cc 40%, Scooters 40%,


30-40% of vehicles are rented ones (within city limits)
80% knows about the engine oil used, 60% buys it themselves from
shop. 25% people aware that there exists a separate scooter oil.
Not price sensitive, does not know about oil grades, Performance
being the only factor.

5.1.3.2Summary of Analysis

Total Sample Size 20 two wheeler owners

Popular Brands Mobil

Brand perception Performance Castrol


rating
Value for money Gulf

Mechanics choice Shell, Gulf

Price Gulf

Advertisement Castrol

5.2 HEAVY/MEDIUM DUTY COMMERCIAL VEHICLES


5.2.1 Retailers
Gulf, Servo, Veedol are commonly used brand by surveyed retailers
throughout Pondy. Other common brands include Castrol, Mobil and MAK.
HMCV market is also flooded with used oils.

33
5.2.1.1Brand Presence
Servo present in 11 out of 12 retail shops surveyed. This is because Servo is
a well moving brand among cost conscious HMCV consumers (specially
drivers).
Gulf and Veedol takes the second in shelf space of retailers because of the
demand from both consumers and mechanics.

Brand presence (12 retailers)


12 11
10 10
10
8
8 7
6
6 5 5
4
4
2
2

0
Servo Veedol Gulf MAK Mobil Castrol Shell Valvoline Elf/Total HP

5.2.1.2Brief on the Visit:


Surveys were conducted between 24th April to 8th May 2016.

Total Sample Size 12 Retailer (Multi brand, Multi-segment)

Areas covered Gorimedu, Vilupuram road, 100 ft road

Popular Brands Servo, Veedol, Gulf, MAK, Shell, Castrol

Recommended Brands Castrol, Gulf, Veedol

Top selling factors Price, Great performance, OEMs recommendations


across brands

Brand Ratings In-shop branding Servo

Packaging Servo

Service delivery Gulf

34
5.2.1.3Market Operated Price data:
As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

Sub-brand Packsiz MRP MOP Margin


e
Castrol 15W-40 CI4 Turbo + 10 3000
15W-40 CH4 Turbo 10 2700
20W-40 CF4 Prima 7.5 2000 8%
15W-40 CF4 CRB Plus 10 2750 8-10%
Shell 15W-40 CF4 Rimula R3X 7.5 1900
Mobil 15W-40 Delvac Super 10 2400
Multigrade 1300
15W-40 CF4 Delvac 10 2150
Veedol
15W-40 CH4 Turbo pro 10 2800 11%
15W-40 CF4 HDC 10 2400 11%
Servo 20W-40 MG Super 10 1900 11%
15W-40 CF4 Pride 10 2150
15W-40 CF4 Premium 10 2400
Gulf 15W-40 CH4 LE max 10 3200
15W-40 CF4 Superfleet 10 2800
Valvoline 15W-40 CF4 All fleet 10 2500
15W-40 CH4 Premium classic 10 2700
15W-40 CI4 Premium classic 10 3000
plus
MAK 15W-40 10 2000
BP 20W-40 10 2040
Vanellus

5.2.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.

5.2.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Castrol is present in 11
mechanics recommendations list. It was closely followed by Veedol and Gulf.

35
ds among TOP 3 recommendation by HMCV mechanics (Sample siz
12
10
10 9
8
8
6
6 5

2 1

0
Castrol Veedol Gulf Servo Mobil MAK

5.2.2.2Brief of the survey

Total Sample Size 13 Mechanics

Areas covered Villupuram road, Gorimedu

Common Grade 15W-40 CF4 (73.2%)

Recommended brands Castrol, Veedol, Gulf

Pushed Brands Mobil, Servo

Factors for Price, Performance, OEM recommendations


recommendation

Brand perception Quality Castrol


rating
Product performance Castrol

Price Valvoline

Value for money Valvoline

Packaging Shell

Promotion Castrol

36
5.2.3 Consumers
A sample of 20 lorry & bus owners are surveyed for this. Sample includes a
mix of brands such as Tata, Eicher, Ashok Leyland, Bharatbenz.

5.2.3.1Observation:
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.

Around 50% market is of Ashok Leyland vehicles. They have an


association that buys Gulf oil in bulk to distribute at low cost to
members. Sold in loose.
Of those who service through mechanics, 100% knows about the
engine oil brand used, all of Gulf users know sub-brand name too
(Superfleet, LEmax).
Very price sensitive, especially drivers of rented lorries, Price &
Performance being the only factor.
Brand change: Easily convinced by retailers pushed brand. Hard to
convince using traditional advertisements.

5.2.3.2Brief of the survey

Total Sample Size 20 owners and drivers

Popular Brands Servo

Brand perception Performance Castrol


rating

5.3 SMALL COMMERCIAL VEHICLES


5.3.1 Retailers
Servo and Castrol are commonly used brand by surveyed retailers. Other
common brands include Shell, Gulf, Veedol and MAK.

5.3.1.1Brand Presence
This trend is similar to that of HMCV segment since there is no unique shops
to exclusively sell engine oils for SCVs. It is sold along with other segments
especially HMCVs.

37
Brand presence (12 retailers)
12 11
10 10
10
8
8 7
6
6 5 5
4
4
2
2

0
Servo Veedol Gulf MAK Mobil Castrol Shell Valvoline Elf/Total HP

5.3.1.2Brief on the Visit:


Surveys were conducted between 24th April to 8th May 2016.

Total Sample Size 12 Retailer (Multi brand, Multi-segment)

Areas covered 100 feet road, Gorimedu

Popular Brands Servo, Castrol, Gulf, Veedol, MAK

Recommended Brands Servo, Castrol, Gulf

Top selling factors Price, Great performance, OEMs recommendations


across brands

Brand Ratings In-shop branding Servo

Packaging Servo

Service delivery Gulf

38
5.3.1.3Market Operated Price data:
As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

Sub-brand Packsiz MRP MOP Margin


e
Castrol 15W-40 RX super max 3 750
CH4
15W-40 CF4 RX super 3 700 8%
Shell 15W-40 CF4 Rimula R2 3 720
15W-40 Helix H5 3 760
CH4
Mobil 15W-40 Delvac 3 680
CH4
Veedol 15W-40 CF4 3 650 11%
Servo 20W-40 1 200 11%
CNG
15W-40 CF4 Pride 3 640
Gulf 15W-40 CF4 3 650
Valvoline 15W-40 CF4 All fleet 3 650
MAK 15W-40 3 640
BP Vanellus 20W-40 1 220

5.3.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.

5.3.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Castrol is present in 13
mechanics recommendations list.

39
ds among TOP 3 recommendation by HMCV mechanics (Sample size
14
12
12

10 9 9

6 5

4 3
2 2 2
2

0
Gulf Servo Veedol Shell Shell Castrol Others Valvoline

5.3.2.2Brief of the survey

Total Sample Size 13 Mechanics

Areas covered JN Road, New bus stand, 100 feet road

Common Grade 15W-40 CF4 (80%)

Recommended brands Veedol, Gulf, Servo

Pushed Brands Servo

Factors for Price, Performance, Mechanic recommendations


recommendation

Brand perception Quality Castrol


rating
Product performance Castrol

Price Valvoline

Value for money Valvoline

Packaging Shell

40
Promotion Castrol

5.3.3 Consumers
A sample of 20 SCV & van owners are surveyed for this. Sample includes a
mix of brands such as Tata, Piaggio, Ashok Leyland.

5.3.3.1Observation:
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.

Around 80% market is of vehicles is driven by owners themselves.


40% of the owners also owned one or more vehicles of another
segment (lorry, tractors etc)
Of those who service through mechanics, 80% knows about the
engine oil brand used, only 10% knows sub-brand name. 20% owners
do not care about oils. They buy anything cheap for the vehicles,
majority in this category is share autos.
Moderate price sensitive, Price & Performance being the only two
factors.

5.3.3.2Brief of the survey

Total Sample Size 20 owners and drivers

Popular Brands Servo

Brand perception Performance Castrol


rating

5.4 PASSENGER CARS


5.4.1 Retailers
Castrol & Shell are commonly used brand by surveyed retailers throughout
city. Other common brands include Mobil, Servo and MAK.

5.4.1.1Brand Presence
Castrol and Shell is almost present in all 12 retail shops surveyed. Mobil,
Servo, Veedol also comes next. The surprise entry into this list is ENEOS.
Some mechanics already started using ENEOS as their preferred brand.

41
Brand Presence (12 retailers)
14
12
12 11
10
8 8
8
6 6
6
4
4 3
2 2
2
0
Castrol Shell Mobil Servo Veedol ENEOS Elf/Total Valvoline MAK Other*

5.4.1.2Brief on the Visit:


Surveys were conducted between 24th April to 8th May 2016.

Total Sample Size 12 Retailer (Multi brand, Multi-segment)

Areas covered Across city

Popular Brands Castrol, Shell, Mobil, Veedol, ENEOS

Recommended Brands Castrol, Shell

Top selling factors Great performance, Mechanics recommendations


across brands

Brand Ratings In-shop branding Mobil

Packaging Servo

Service delivery Gulf

42
5.4.1.3Market Operated Price data:
As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

Sub-brand Packsiz MRP MOP Margin


e
Castrol 0W-40 /5W-40 Edge 4 2900
5W-40 Magnetic 3.5 1500
15W-40 Magnetic Diesel 3.5 1550 8%
15W-40 GTX diesel 3.5 1250
20W-50 GTX 3.5 1000 8-10%
Shell 5W-40 Helix ultra 3.5 2500
15W-40 Helix H5 3.5 1350
20W-50 Helix H3 3 800
Veedol 15W-40 3 750
Servo 20W-50 3 500 11%
15W-40 3.5 1150
Gulf 15W-40 3.5 1300
MAK 20W-50 3 630

5.4.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.

5.4.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Castrol is present in al
mechanics recommendations list. Closely followed by Shell Helix, ENEOS.

43
among TOP 2 recommendation by PCMO mechanics (Sampl
14 13

12

10
8
8 7
6
6 5 5

4
2
2

0
Castrol Shell ENEOS Gulf Shell Veedol Valvoline

5.4.2.2Brief of the survey

Total Sample Size 13 Mechanics

Areas covered Across city

Common Grade 15W-40 CF4 (54.3%)

Recommended brands Castrol, Shell, ENEOS

Pushed Brands Servo, Mobil

Factors for Performance, Mechanics recommendations


recommendation

Brand perception Quality Castrol


rating
Product performance Castrol

Price Valvoline

Value for money Valvoline

Packaging Shell

Promotion Castrol

44
5.4.3 Consumers
A sample of 20 car owners are surveyed for this. Sample includes a mix of
brands such as Tata, Hyundai, Maruthi Suzuki, Ford etc.

5.4.3.1Observation:
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.

Around 70% over the counter oil purchase is made by owners of the
vehicle.
Of those who service through mechanics, 100% knows about the
engine oil brand used, 90% knows sub-brand name too.
Not price sensitive at all, especially family car owners, Brand,
mechanics recommendation & Performance being the factors.
ENEOS is silently getting popularity among mechanics who in turn
recommend to most consumers.

5.4.3.2Brief of the survey

Total Sample Size 20 owners and drivers

Popular Brands Castrol, Shell, ENEOS

Brand perception Performance Castrol


rating

5.5 TRACTORS
5.5.1 Retailers
Castrol, Veedol are commonly used brand by surveyed retailers. Other
common brands include Gulf, Servo, Valvoline and MAK.

5.5.1.1Brand Presence
Castrol present in all 12 retail shops surveyed. This is because Castrol CRB
became a common brand for tractors asked specifically by consumers
Veedol takes the second in shelf space of retailers because of the demand
from both consumers and mechanics. Other* here means all the OEM
genuine oils for tractors.

45
Brand Presence (12 retailers)
14
12
12
10
10

8 7 7
6
6 5 5
4 4
4

0
Castrol Veedol Other* Servo Valvoline Gulf MAK Elf/Total Shell

5.5.1.2Brief on the Visit:


Surveys were conducted between 24th April to 8th May 2016.

Total Sample Size 12 Retailer (Multi brand, Multi-segment)

Areas covered Koot road, Mayilam, Cuddalore

Popular Brands Castrol, Veedol, Geniune oils

Recommended Brands Castrol, Veedol

Top selling factors Great performance, Mechanics recommendations,


across brands OEMs recommendations

Brand Ratings In-shop branding Servo

Packaging Servo

Service delivery Gulf

46
5.5.1.3Market Operated Price data:
As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

Sub-brand Packsiz MRP MOP Margin


e
Castrol 15W-40 Multi 7.5 2500
15W-40 CF4 CRB Plus 7.5 2300 8-10%
Shell 15W-40 CF4 Rimula 7.5 1900
Veedol 15W-40 CF4 7.5 1800
Servo 15W-40 CF4 7.5 1500
Total 15W-40 CF4 Super HDB 7.5 1700
Ultra
Gulf 15W-40 CF4 10 3200
MAK 15W-40 7.5 1350
BP 15W-40 7.5 1700
Vanellus

5.5.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.

5.5.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Tractor mechanics work alone
and mostly in rural areas. Still, Castrol is present in 10 mechanics
recommendations list. Wherever OEM oils are available, mechanics
recommend the same.

s among TOP 3 recommendation by tractor mechanics (Sample siz


12
10
10
8 8 8
8
6
6
4 3
2
0
Castrol Shell Servo Veedol Gulf Others*

47
5.5.2.2Brief of the survey

Total Sample Size 13 Mechanics

Areas covered Rural areas around Puducherry

Common Grade 15W-40 CF4 (100%)

Recommended brands Castrol, Veedol, Servo

Pushed Brands Servo

Factors for Performance, OEM recommendations


recommendation

Brand perception Quality Castrol


rating
Product performance Castrol

Price Servo

Value for money Veedol

Packaging Veedol

Promotion Castrol

5.5.3 Consumers
A sample of 20 tractor owners are surveyed for this. Sample includes a mix of
brands such as M&M, John deere, TAFE, Sonalika, Escorts etc.

5.5.3.1Observation:
A decision on changing lubricants is calculated by both in terms of usage
hours and certain period of time.

OEM recommendations are strictly followed in Oil usage by owners.


Mechanics recommendation plays only a little part.
70% owners are single brand consumers i.e., they have using only
single brand of oil since beginning.
Of those who service through mechanics, 100% knows about the
engine oil brand used, only Castrol consumers know about its sub-
brand name (CRB). Veedol customers are very brand loyal, using the
brand for quite a while.

48
Not price sensitive, because they expect good performance, willing to
pay higher for that. Performance being the only factor.
Multi vehicle owners (HMCV, Tractors) prefer single oil purchase.
Single oil to use in all their fleet diesel engine vehicles. (eg. Castrol
Multi)

5.5.3.2Brief of the survey

Total Sample Size 20 owners and drivers

Popular Brands Castrol, Veedol

Brand perception Performance Castrol


rating

5.6 QUALITATIVE ANALYSIS - PONDICHERRY


Since Puducherry also has a perfect mixture of urban and rural markets for most
auto spares, the engine oil market in the city was both scattered and concentrated
depending on the segment.
2-Wheeler Market:

Most retailers perception towards various engine oil brands are subjective in
nature and they find no particular major differences in performance between
various oil brands. They just cater the needs of consumers price with the
brand at that price level
Selling oil barrels directly to the mechanics being a major threat as perceived
by retailers followed by duplicate oils in market.
2-wheeler mechanics prefer their customers to buy oils for their vehicles. But
wherever required they would like to go with Castrol, Shell & Gulf oil in 20W-
40 grade. Reason being that they prefer topline oils to make the customer
come to their shops again.
Some mechanics have a direct dealing with distributers to buy specific brands
in barrel of 50ltr. By doing so, they get a high margin per liter, but issues
being in the payment side.
Consumers in this market are generally well informed when it comes to
engine oils. They are not price sensitive and prefer performance over cost.
Passenger Cars:

Retailers faces two types of unique consumers. One is the owners of cars
bought by individuals/families who always prefer the best brands. Second is
the rented car drivers who prefer low cost oils.
Mechanics, wherever required uses the brand of his customers choice. If he
needs to give a suggestion in this, he usually prefers Castrol over others 8/10

49
times. Other brand suggestions include Shell, Mobil, Gulf, Veedol, Servo, MAK.
Two of the surveyed mechanics used Shell as their only preferred brand out of
their own experiences.
Consumers in this segment also are well informed about the oil used in their
cars. They do not take blind suggestions from Mechanics. They would like to
research on their own before choosing a suitable brand for their cars.

Tractors:

There are only 3 tractor specific retail oil shop in the city. This information is
gathered from mechanics. But still other HCV/SCV retailers also sold diesel
grade oil which can be used for tractors. Other retailers sell only specific
brands at low quantity.
Survey on the 3 retail shop showed few insights about Geniune OEM oils in
the market. TAFE sold their own engine oils. They sold a large quantity of
Castrol CRB, CRB+. Customers ask for CRB specifically when it comes to
tractor oil. Gulfs XHD supreme also tend to sell good. Veedol is commonly
used for Harvesting vehicle in this market.
UTTOs are also a common affair in tractor market which is mostly dominated
by OEM recommendations. Customers only prefer what recommendations
given by manufacturers for UTTO.
Mechanics are scattered across rural markets with most of them does not
have a proper workshop but travel to tractor location with their equipments
to service or repair. They commonly suggest for Castrol CRB for tractors. But
if his customers has his own choice, mechanics do not interfere with that.
Consumers of aged tractors preferred Castrol CRB and Gulf as their preferred
brand. New tractor owners go with OEM suggestions and their genuine oils.
HCV/MCV:

Survey in this segments retail shops show that most of the customers are
price sensitive. Many prefer oils as per the cash in hand. So the retailers
provide oils at all price point from local oils to affordable ones (Servo, MAK) to
recommended, slightly costly oils (Gulf, Castrol)
Consumers are mostly drivers of private players. They choose low cost oils for
their vehicles. Ashok Leyland owners go by OEM recommendation by using
Gulf. Tatas mostly go for Castrol & Shell.
SCV:

Retailers observed around 70% of their customers are owner cum drivers. So
they preferred only OEM recommendation or quality & performance when
choosing engine oil.
Mechanics recommend Castrol or shell for Tata models like ace, winger
because of OEM recommendation, Gulf for Leyland SCVs. Some of the
mechanics choose their brand as per the coupon values they get.

50
Consumers are not informed about the use of oil brands. They either use the
OEM recommendation or mechanics/retailers recommendations. They are not
loyal to any brands.

6 SALEM, TAMIL NADU


Locate in the industrial center of Tamil Nadu, Salem is well connected with all the
cities mainly Bangalore, Chennai and acts as a hub for many highways. With
industries such as SAIL, Powergrid, Salem has a considerable in and out traffic of
HCVs & SCVs regularly. Namakkal, which is 30KM from Salem acts as a hub for HCV
markets for southern India. Tractor market is also omnipresent throughout the
periphery of the city. PCMO & Two wheeler markets are among the top 5 in the
state.

6.1 TWO WHEELERS


6.1.1 Retailers
Castrol and Gulf are commonly stocked by surveyed retailers. Shell and
Valvoline increasing in their shelf space across retailers. Two wheeler market
is flooded with used oils. Many retailers sell used oils exclusively in their
stores.

6.1.1.1Brand Presence
Castrol present in all the retail shops surveyed. This is due to the fact that
customers are able to easily relate Castrol to engine oil. So this gives the
retailers an identity that the shop sells engine oils. So Castrol is kept at a
prominent places in all shops.
Geniune oils such as Hero, Yamalube, Bajaj & Honda also present in some of
the shops but sells little with only few unique customers

51
Brand presence out of 12 retail shops
14
12
12
10
10
8 8 8
8
6 5 5
4
4 3 3 3
2 2 2
2
0
0
l

il

al
l

P
o
e
*
el
ro

ob
er

er
ub

H
ot
Sh
st

th

f/T

H
M

al
Ca

m
El

6.1.1.2Summary of Analysis Ya

Total Sample Size 12 Retailer (Multi brand, Multi-segment)

Areas covered Old bus stand, 5 road

Popular Brands Castrol, Gulf, Valvoline, Shell, Genuine oils, Filtered


used oils

Recommended Brands Castrol, Gulf, Shell

Top selling factors Mechanics recommendations,


across brands
Great performance

Brand Ratings In-shop branding Castrol

Packaging Shell

Service delivery Shell

52
6.1.1.3Market Operated Price data:
As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

Sub-brand Packsiz MRP MOP Margin


e
Castrol Activ go 0.9 225
1 245
20W-40 Power1 1 325 300 8%
20W-50 325 8-10%
10W-30 Activ scooter 0.8 245
10W-40 780
Shell 20W-40 Advance AX3 1 278
0.9 259
20W-40 Advance AX5 0.9 288
1 355 300 10%
Premium 0.9 312
20W-50
Premium 1 314 300 10%
10W-30 Advance AX5 0.9 288 270 10%
10W-40 Advance Ultra 1 399 380 10%
15W-40
15W-50
Mobil 20W-40 Super 1 295
20W-50 Super 1 321
Super 4T 0.9 306
10W-30 Mobil1 1 326
10W-40 Extra 4T 1 322
Veedol 20W-40 1 280 11%
20W-50 380 11%
10W-30 0.8 255 11%
10W-40 380 11%
Servo 20W-40 1 250 11%
20W-50
10W-30
Gulf 20W-40 Pride 4t 1 232
0.9 213
20W-40 Pride 4T plus premium 1 329 280 12-15%
0.9 257 250 12%
20W-50 Pride 1 268
10W-30 0.9 260

53
Valvoline 20W-40 Champ 4T 1/0.9 280 300/280
20W-50 4T Premium 1 380 380
10W-30 0.8 270
MAK 20W-40 260
20W-50 285
10W-30 300

6.1.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.

6.1.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Castrol is present in all
mechanics recommendations list.

s am ong TOP 3 recom m endation by 2 wheeler m echanics (Sam ple size


14 13
12 11
10 8
8 7
6
6 5
4 2
2
0
Castrol Servo Gulf Shell MAK Valvoline Elf/Total

6.1.2.2Summary of Analysis

Total Sample Size 13 Mechanics

Areas covered Spread across city, no specific concentrated areas

Common Grade 20W-40 (85.6%)

54
Recommended brands Castrol, Shell, Gulf

Pushed Brands MAK, Servo

Factors for Quality, Service, Performance


recommendation

Brand perception Quality Castrol


rating
Product performance Castrol

Price Valvoline

Value for money Valvoline

Packaging Shell

Promotion Castrol

6.1.3 Consumers
A sample of 20 two wheeler owners are surveyed for this. Sample includes a
mix of bikes below 150cc, above 150cc and scooters.

6.1.3.1Observations
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.

>150cc 30%, 100-150cc 40%, Scooters 30%,


90% owners prefer authorized service centers for first 3 years
Of those who service through mechanics, 90% knows about the
engine oil used, 60% buys it themselves from shop.
Not price sensitive, does not know about oil grades, Performance
being the only factor.

6.1.3.2Summary of Analysis

Total Sample Size 20 two wheeler owners

Popular Brands Castrol, Shell

Brand perception Performance Castrol


rating
Value for money Gulf

55
Mechanics choice Shell, Gulf

Price Gulf

Advertisement Castrol

6.2 HEAVY/MEDIUM DUTY COMMERCIAL VEHICLES


6.2.1 Retailers
Gulf, Servo are commonly used brand by surveyed retailers throughout Trichy.
Other common brands include Castrol, Servo and MAK. HMCV market is also
flooded with used oils.

6.2.1.1Brand Presence
Gulf present in 12 out of 12 retail shops surveyed. This is because Gulf is a
well moving brand among cost conscious HMCV consumers (specially
drivers) in this locality.
Servo and Castrol takes the second in shelf space of retailers because of the
demand from both consumers and mechanics. Low cost used oils are also
commonly bought by drivers of old/rented vehicles.

Brand Presence (12 retailers)


14
12
12
10 10
10
8
8 7
6
6 5 5
4
4

0
Gulf Castrol Servo MAK Shell Valvoline Shell Total Veedol

6.2.1.2Brief on the Visit:


Surveys were conducted between 8th April to 23rd April 2016.

56
Total Sample Size 12 Retailer (Multi brand, Multi-segment)

Areas covered Namakkal road, 5 road

Popular Brands Gulf, Servo, Castrol

Recommended Brands Gulf

Top selling factors Price, Great performance, OEMs recommendations


across brands

Brand Ratings In-shop branding Servo

Packaging Servo

Service delivery Gulf

6.2.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

Sub-brand Packsiz MRP MOP Margin


e
Castrol 15W-40 CI4 Turbo + 10 3000
15W-40 CH4 Turbo 10 2700
20W-40 CF4 Prima 7.5 2000 8%
15W-40 CF4 CRB Plus 10 2750 8-10%
Shell 15W-40 CF4 Rimula R3X 7.5 1900
Mobil 15W-40 Delvac Super 10 2400
Multigrade 1300
15W-40 CF4 Delvac 10 2150
Veedol
15W-40 CH4 Turbo pro 10 2800 11%
15W-40 CF4 HDC 10 2400 11%
Servo 20W-40 MG Super 10 1900 11%
15W-40 CF4 Pride 10 2150
15W-40 CF4 Premium 10 2400
Gulf 15W-40 CH4 LE max 10 3200

57
15W-40 CF4 Superfleet 10 2800
Valvoline 15W-40 CF4 All fleet 10 2500
15W-40 CH4 Premium classic 10 2700
15W-40 CI4 Premium classic 10 3000
plus
MAK 15W-40 10 2000
BP 20W-40 10 2040
Vanellus

6.2.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.

6.2.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Gulf is present in 12
mechanics recommendations list. They even recommend it for Non-Ashok
Leyland vehicles.

ands am ong TOP 3 recom m endation by HMCV m echanics (Sam ple size 1
14
12
12
10
10
8 7 7
6
4
2 2 2
2
0
Gulf Servo Castrol Shell MAK Valvoline Veedol

6.2.2.2Brief of the survey

Total Sample Size 13 Mechanics

Areas covered 5 road, Bangalore bypass road

Common Grade 15W-40 CF4 (68.3%)

58
Recommended brands Gulf, Servo, Castrol

Pushed Brands Servo

Factors for Price, Performance, OEM recommendations


recommendation

Brand perception Quality Castrol


rating
Product performance Castrol

Price Valvoline

Value for money Valvoline

Packaging Shell

Promotion Castrol

6.2.3 Consumers
A sample of 20 lorry & bus owners are surveyed for this. Sample includes a
mix of brands such as Tata, Eicher, Ashok Leyland, Bharatbenz.

6.2.3.1Observation:
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.

Around 60% market is of Ashok Leyland vehicles.


Of those who service through mechanics, 100% knows about the
engine oil brand used, 60% knows sub-brand name too, specially Gulf
users.
Very price sensitive, especially drivers of rented lorries, Price &
Performance being the only factor.
Brand change: Easily convinced by retailers pushed brand. Hard to
convince using traditional advertisements.
No one knows about the fact that Gulf is a sponsor of CSK franchise in
IPL.

6.2.3.2Brief of the survey

Total Sample Size 20 owners and drivers

Popular Brands Gulf

59
Brand perception Performance Castrol
rating

6.3 SMALL COMMERCIAL VEHICLES


6.3.1 Retailers
Servo, Gulf and Castrol are commonly used brand by surveyed retailers
throughout Salem. Other common brands include Shell, Valvoline and MAK.
SCV market is also flooded with used oils.

6.3.1.1Brand Presence
Servo present in 11 out of 12 retail shops surveyed. This is because Servo is
a well moving brand among cost conscious SCV consumers.
Castrol takes the second in shelf space of retailers because of the demand
from both consumers and mechanics. Low cost used oils are also commonly
bought by drivers of old/rented vehicles.

Brand Presence (12 retailers)


12 11
10
10
8 8
8 7
6
6 5 5
4 4
4
2
2

0
Servo Castrol Gulf MAK Shell Veedol Valvoline Other* Elf/Total Mobil HP

6.3.1.2Brief on the Visit:


Surveys were conducted between 9th May to 21st May 2016.

60
Total Sample Size 12 Retailer (Multi brand, Multi-segment)

Areas covered 4 road, Hasampet

Popular Brands Servo, Castrol, Gulf, Shell, MAK, Filtered used oils

Recommended Brands Servo, Castrol, Gulf

Top selling factors Price, Great performance, OEMs recommendations


across brands

Brand Ratings In-shop branding Servo

Packaging Servo

Service delivery Gulf

6.3.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

Sub-brand Packsiz MRP MOP Margin


e
Castrol 15W-40 RX super max 3 750
CH4
15W-40 CF4 RX super 3 700 8%
Shell 15W-40 CF4 Rimula R2 3 720
15W-40 Helix H5 3 760
CH4
Mobil 15W-40 Delvac 3 680
CH4
Veedol 15W-40 CF4 3 650 11%
Servo 20W-40 1 200 11%
CNG
15W-40 CF4 Pride 3 640
Gulf 15W-40 CF4 3 650
Valvoline 15W-40 CF4 All fleet 3 650
MAK 15W-40 3 640
BP Vanellus 20W-40 1 220

61
6.3.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.

6.3.2.1Mechanics recommendation
With initially we asked mechanics what all his top 2 recommendations for
consumers when it comes to lubricant brands. Castrol is present in 13
mechanics recommendations list.

among TOP 2 recommendation by SCV mechanics (Sample


14 13
12
10
8 6
6 5
4 2
2
0
Castrol Servo Shell Gulf

6.3.2.2Brief of the survey

Total Sample Size 13 Mechanics

Areas covered 5 road, Old bus stand area

Common Grade 15W-40 CF4 (80%)

Recommended brands Castrol, Gulf, Servo

Pushed Brands Servo

Factors for Price, Performance, OEM recommendations


recommendation

Brand perception Quality Castrol


rating
Product performance Castrol

Price Valvoline

Value for money Valvoline

62
Packaging Shell

Promotion Castrol

6.3.3 Consumers
A sample of 20 SCV & van owners are surveyed for this. Sample includes a
mix of brands such as Tata, Piaggio, Ashok Leyland.

6.3.3.1Observation:
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.

Around 80% market is of vehicles is driven by owners themselves.


Of those who service through mechanics, 100% knows about the
engine oil brand used, 60% knows sub-brand name too.
Moderate price sensitive, Price & Performance being the only factor.

6.3.3.2Brief of the survey

Total Sample Size 20 owners and drivers

Popular Brands Castrol

Brand perception Performance Castrol


rating

6.4 PASSENGER CARS


6.4.1 Retailers
Castrol is a commonly used brand by surveyed retailers throughout Salem.
Other common brands include Shell, Servo and MAK.

6.4.1.1Brand Presence
Castrol present in 12 out of 12 retail shops surveyed, followed by Shell.
Gulf and Castrol takes the second in shelf space of retailers because of the
demand from both consumers and mechanics. Low cost used oils are also
commonly bought by drivers of old/rented vehicles.

63
Brand Presense (12 Retailers)
14
12
12 11
10
8 8
8
6 6
6
4 4 4
4 3
2
0
Castrol Shell Mobil Servo Gulf MAK Elf/Total Valvoline Veedol Other*

6.4.1.2Brief on the Visit:


Surveys were conducted between 9th May to 21st May 2016.

Total Sample Size 12 Retailer (Multi brand, Multi-segment)

Areas covered 5 road, Old bus stand

Popular Brands Castrol, Shell, Mobil, Servo, Lesser known brands

Recommended Brands Castrol, Shell

Top selling factors Great performance, Mechanics recommendations


across brands

Brand Ratings In-shop branding Servo

Packaging Servo

Service delivery Gulf

64
6.4.1.3Market Operated Price data:
As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

Sub-brand Packsiz MRP MOP Margin


e
Castrol 0W-40 /5W-40 Edge 4 2900
5W-40 Magnetic 3.5 1500
15W-40 Magnetic Diesel 3.5 1550 8%
15W-40 GTX diesel 3.5 1250
20W-50 GTX 3.5 1000 8-10%
Shell 5W-40 Helix ultra 3.5 2500
15W-40 Helix H5 3.5 1350
20W-50 Helix H3 3 800
Veedol 15W-40 3 750
Servo 20W-50 3 500 11%
15W-40 3.5 1150
Gulf 15W-40 3.5 1300
MAK 20W-50 3 630

6.4.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.

6.4.2.1Mechanics recommendation
With initially we asked mechanics what all his top 2 recommendations for
consumers when it comes to lubricant brands. Castrol is present in 10
mechanics recommendations list. Closely followed by Shell Helix.

65
mong TOP 2 recommendation by PCMO mechanics (Sample
12
10
10
8
8

6 5

4 3

0
Castrol Shell Gulf Servo

6.4.2.2Brief of the survey

Total Sample Size 13 Mechanics

Areas covered Salem Cantonment area, Across city

Common Grade 15W-40 CF4 (54.3%)

Recommended brands Castrol, Shell

Pushed Brands Servo

Factors for Performance, Brand, Mechanics recommendations


recommendation

Brand perception Quality Castrol


rating
Product performance Castrol

Price Valvoline

Value for money Valvoline

Packaging Shell

Promotion Castrol

66
6.4.3 Consumers
A sample of 20 car owners are surveyed for this. Sample includes a mix of
brands such as Tata, Hyundai, Maruthi Suzuki, Ford etc.

6.4.3.1Observation:
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.

Around 70% over the counter purchase is made by owners of the


vehicle.
Of those who service through mechanics, 100% knows about the
engine oil brand used, 90% knows sub-brand name too.
Not price sensitive at all, especially family car owners, Brand,
mechanics recommendation & Performance being the factors.
Shell helix is equally popular as Castrol magnetic.

6.4.3.2Brief of the survey

Total Sample Size 20 owners and drivers

Popular Brands Castrol, Shell

Brand perception Performance Castrol


rating

6.5 TRACTORS
6.5.1 Retailers
Gulf, Servo are commonly used brand by surveyed retailers throughout
Salem. Other common brands include Castrol, Valvoline, Genuine oils and
MAK.

6.5.1.1Brand Presence
Castrol present in all 12 retail shops surveyed. This is because Castrol CRB
became a common brand for tractors asked specifically by consumers
Servo takes the second in shelf space of retailers because of the demand
from both consumers and mechanics. Other* here means all the OEM
genuine oils for tractors.

67
Brand presence (12 retailers)
14
12
12
10
10
8
8 7
6 6 6
6
4 4
4

0
Castrol Servo Other* Veedol Shell Gulf MAK Elf/Total Valvoline

6.5.1.2Brief on the Visit:


Surveys were conducted between 9th May to 21st May 2016.

Total Sample Size 12 Retailer (Multi brand, Multi-segment)

Areas covered 5 road

Popular Brands Servo, Castrol, Gulf, Valvoline, Veedol, Geniune oils

Recommended Brands Castrol, Servo

Top selling factors Great performance, OEMs recommendations


across brands

Brand Ratings In-shop branding Servo

Packaging Servo

Service delivery Gulf

68
6.5.1.3Market Operated Price data:
As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

Sub-brand Packsiz MRP MOP Margin


e
Castrol 15W-40 Multi 7.5 2500
15W-40 CF4 CRB Plus 7.5 2300 8-10%
Shell 15W-40 CF4 Rimula 7.5 1900
Veedol 15W-40 CF4 7.5 1800
Servo 15W-40 CF4 7.5 1500
Total 15W-40 CF4 Super HDB 7.5 1700
Ultra
Gulf 15W-40 CF4 10 3200
MAK 15W-40 7.5 1350
BP 15W-40 7.5 1700
Vanellus

6.5.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.

6.5.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Tractor mechanics work alone
and mostly in rural areas. Still, Castrol is present in 10 mechanics
recommendations list. Wherever OEM oils are available, mechanics
recommend the same.

69
s among TOP 3 recommendation by tractor mechanics (Sample siz
12
10
10
8 8 8
8
6
6

4 3

0
Castrol Shell Servo Veedol Gulf Others*

6.5.2.2Brief of the survey

Total Sample Size 13 Mechanics

Areas covered Rural areas around Salem

Common Grade 15W-40 CF4 (100%)

Recommended brands Castrol, Veedol, Shell, Servo

Pushed Brands Servo

Factors for Performance, OEM recommendations


recommendation

Brand perception Quality Castrol


rating
Product performance Castrol

Price Valvoline

Value for money Valvoline

Packaging Shell

Promotion Castrol

70
6.5.3 Consumers
A sample of 20 tractor owners are surveyed for this. Sample includes a mix of
brands such as M&M, John deere, TAFE, Sonalika, Escorts etc.

6.5.3.1Observation:
A decision on changing lubricants is calculated by both in terms of usage
hours and certain period of time.

OEM recommendations are strictly followed in Oil usage by owners.


Mechanics recommendation plays only a little part.
70% owners are single brand consumers i.e., they have using only
single brand of oil since beginning.
Of those who service through mechanics, 100% knows about the
engine oil brand used, only Castrol consumers know about its sub-
brand name (CRB).
Not price sensitive, because they expect good performance, willing to
pay higher for that. Performance being the only factor.
Multi vehicle owners (HMCV, Tractors) prefer single oil purchase.
Single oil to use in all their fleet diesel engine vehicles. (eg. Castrol
Multi)

6.5.3.2Brief of the survey

Total Sample Size 20 owners and drivers

Popular Brands Castrol

Brand perception Performance Castrol


rating

6.6 QUALITATIVE ANALYSIS SALEM

Since Salem also has a perfect mixture of urban and rural markets for most auto
spares, the engine oil market in the city was both scattered and concentrated
depending on the segment. For example, the retail oil market for 2-wheeler, PCMO
& Tractor are all concentrated at specific locations within the city, It acts as a hub
for consumers and mechanics across rural & urban areas to reach out for their
needs.
2-Wheeler Market:

Most retailers perception towards various engine oil brands are subjective in
nature and they find no particular major differences in performance between

71
various oil brands. They just cater the needs of consumers price with the
brand at that price level
Urban retailers had number of brands in display at their stores. Stand out in
this is the Motul which is the most preferred by the >200cc bike owners who
takes a special care on their bikes. Example Royal enfield owners. Price of
Motul is as much as 3 times of other brands, but still it was maintained by
almost all the urban retailers. Rural areas generally has atleast 3 common
brands used by the area mechanics.
Selling oil barrels directly to the mechanics being a major threat as perceived
by retailers followed by duplicate oils in market.
2-wheeler mechanics prefer their customers to buy oils for their vehicles. But
wherever required they would like to go with Castrol, Shell & Gulf oil in 20W-
40 grade. Reason being that they prefer topline oils to make the customer
come to their shops again.
Some mechanics have a direct dealing with distributers to buy specific brands
in barrel of 50ltr. By doing so, they get a high margin per liter, but issues
being in the payment side.
Consumers in this market are generally well informed when it comes to
engine oils. They are not price sensitive and prefer performance over cost.
Passenger Cars:

Retailers faces two types of unique consumers. One is the owners of cars
bought by individuals/families who always prefer the best brands. Second is
the rented car drivers who prefer low cost oils.
Mechanics, wherever required uses the brand of his customers choice. If he
needs to give a suggestion in this, he usually prefers Castrol over others 8/10
times. Other brand suggestions include Shell, Mobil, Gulf, Veedol, Servo, MAK.
Two of the surveyed mechanics used Shell as their only preferred brand out of
their own experiences.
Consumers in this segment also are well informed about the oil used in their
cars. They do not take blind suggestions from Mechanics. They would like to
research on their own before choosing a suitable brand for their cars.
Tractors:

There are only 3 tractor specific retail oil shop in the city. This information is
gathered from mechanics. But still other HCV/SCV retailers also sold diesel
grade oil which can be used for tractors. Other retailers sell only specific
brands at low quantity.
Survey on the 3 retail shop showed few insights about Geniune OEM oils in
the market. TAFE sold their own engine oils. They sold a large quantity of
Castrol CRB, CRB+. Customers ask for CRB specifically when it comes to
tractor oil. Gulfs XHD supreme also tend to sell good. Veedol is commonly
used for Harvesting vehicle in this market.
UTTOs are also a common affair in tractor market which is mostly dominated
by OEM recommendations. Customers only prefer what recommendations
given by manufacturers for UTTO.

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Mechanics are scattered across rural markets with most of them does not
have a proper workshop but travel to tractor location with their equipments
to service or repair. They commonly suggest for Castrol CRB for tractors. But
if his customers has his own choice, mechanics do not interfere with that.
Consumers of aged tractors preferred Castrol CRB and Gulf as their preferred
brand. New tractor owners go with OEM suggestions and their genuine oils.
HCV/MCV:

Survey in this segments retail shops show that most of the customers are
price sensitive. Many prefer oils as per the cash in hand. So the retailers
provide oils at all price point from local oils to affordable ones (Servo, MAK) to
recommended, slightly costly oils (Gulf, Castrol)
Mechanics market is concentrated in two areas, Namakkal road and
Bangalore bypass road. In both the places, Gulf oil is commonly used for all
types of vehicles. But the option is left to owners/drivers wherever required
because of the cost involved in buying oil in large quantity (10/15 ltrs).
Consumers are mostly drivers of private players. They choose low cost oils for
their vehicles. Ashok Leyland owners go by OEM recommendation by using
Gulf. Tatas mostly go for Castrol & Shell.
SCV:

Retailers observed around 70% of their customers are owner cum drivers. So
they preferred only OEM recommendation or quality & performance when
choosing engine oil.
Mechanics recommend Castrol or shell for Tata models like ace, winger
because of OEM recommendation, Gulf for Leyland SCVs. Some of the
mechanics choose their brand as per the coupon values they get.
Consumers are not informed about the use of oil brands. They either use the
OEM recommendation or mechanics/retailers recommendations. They are not
loyal to any brands.

7 RECOMMENDATIONS

Trichy:

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- Two wheeler flyers are issued to retailers by Shell, Servo, Enis brands which
include all the major two wheeler brands and the type of oil to be used for
that particular brand. This can be followed for the Veedol takeoff brand.
- Two wheeler mechanics showed increased loyalty towards Gulf without even
any specific incentives attached to the brand. These mechanics can be
targeted with exclusive offer to change their brand to veedol.
- HMCV/SCV/PCMO mechanics and consumers are very much abundant in EB
road area. If there is any targeted campaign in these areas will certainly
increase brand awareness among both mechanics & consumers.
- For tractors, people blindly follow whatever the OEM says in many instances.
So reaching the consumers through OEM recommendations is the only way to
tap this market here.

Puducherry
- Shops of two wheeler rental services can be targeted to sell oil in bulk.
- Mobil follows a differential pricing among retailers. More than 30% of the
retailers are really tired of these kind of practices. Approaching them would
give a sufficient shelf space and an alternate to Mobil in those areas.
- A retailer was giving away oil filter for free in a SCV segment and it induced
an increase in sales. Similar, freebies can be offered for SCV, HMCV and
tractor oils.
- Sub brand specific ad campaigns can be done experimentally to increase
brand awareness. Example would be recent MAK NXT specific campaigns.
Shells rimula campaign.
- Local TVs are very much common in Puducherry. A low cost ad campaign
could help.

Salem:
- The recommendations that are given for Trichy, are applicable here too. Areas
for targeted campaigns include 5 road, 4 road, Old bus stand.
- Since the HMCV, SCV markets are huge in this area and most of the drivers
are in enroute to their destinations, a non-cash freebie of sorts unrelated to
oil industry, related to travel would induce the urge to buy veedol among
consumers. Because the facilities for these drivers are so bad and anything
that helps them improving it, would be appreciated by them
- For PCMO segment, a strong sub brand name to counter Castrols magnetic
and Shells helix is required.

General:

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- The legacy of the brand, its indian-ness can be emphasized in ad campaigns.
People will buy it for its legacy. Example being the Escorts tractors, the oldest
Indian tractor manufacturers, and people buy the tractor for its legacy and
indianness even though many foreign brands are in the market.
- Attractive unique colours in containers might be helpful in giving Veedol an
unique experience. Example being Shells selection of colours. Grey coloured
containers can be avoided since it sits well with other oils and offers no
uniqueness.
- Success of ENEOS in Puducherry is so huge. There are some mechanics who
are very much happy with the brand. This success strategy can be followed in
other markets in south region.
- Consumers increased awareness can be seen in all segments and all
markets. We can capitalize on that by offering freebies to consumers in terms
of Veedol stickers. A similar strategy followed by Apple to show off that they
are users of the brand also triggered others to buy it. Apple gives away 2
apple logo stickers with each products since beginning.
- A follow-up with consumers who purchase Veedol would encourage him to
think about our brand the next time he buys it.

Thank You!

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