Name SS

Question 1

Write your answer for Part A here.

Period Rate of Growth

2000-2004 27.27%

2004-2010 90%

2010-2015 50%

Write your answer for Part B here.

The factors that contributed for the two wheeler market growth from 2004 to 2015 were,

1. Consumer’s increasing disposable incomes

2. Aspiration to own a motorized vehicle
3. Availability of easy financing

Question 2

Write your answer for Part A here.

 Private sector players:

a. Shell
b. Gulf
c. Valvoline
d. Veedol
e. Elf

Public sector players:

a. Indian Oil
b. Bharat Petroleum
c. Hindustan Petroleum

Write your answer for Part B here.

Direct Distribution channels:

1. Forecourts: Petrol pumps and gasoline stations

2. Franchised Workshops (FWs): Authorized workshops that serviced vehicles under
warranty, providing all services related to the vehicles.

Distributors (Retail) Distribution channels:

1. Non-Franchised workshops: Small mechanics who set up shop to service motorcycles.

2. Accessories and spare parts: Stores that stock and sell vehicle accessories and spare
parts
3. Pure lubricant outlets: Stores that stock and sell lubricants of all companies.

Question 3

Write your answer for Part A here.

 Consumer buying behavior: Once the warranty period of the bike is over, the vehicle entered
the after-warranty market; consumers who previously choose to buy the oil of their choice and
take it to preferred mechanics for service now more likely wanted to take their bikes directly to
mechanic’s shops and trust the mechanics to use the right oil.

Write your answer for Part B here.

There was a shift from 2 stroke engines to 4 stroke engine bikes which had a great impact on
the motorcycle oil industry. In 2 stroke vehicle, the lubricating oil would be mixed with fuel
and burned along with fuel whereas in 4 stoke vehicles, the lubrication system was separate
and oil needed to be changed only once in every 2000 to 2500 kms. Consumers would change
the oil only during maintenance service at a workshop. This trend let to a complete shift from
forecourts to the open market.

Question 4

Write your answer for Part A here.

Channel Partner Channel Share (%) 2010

Franchised workshops 30.95%

Spare part outlets 42.85%

Oil shops 11.90%

Non-Franchised workshops 14.28%

Write your answer for Part B here.

For the analysis in 2005 –

The total potential for FW is 30 million litres and Castrol’s share is 3.54 million litres,
[30mn/76mn X 100 as against 3.54mn/11.89mn X 100 translating to 39.4% >29.77% ]

The total potential for NFW is 8 million litres and Castrol’s share is 0.85 million litres,
[8mn/76mn X 100 as against 0.85mn/11.89mn X 100 translating to 10.52% >7.14% ]

Write your answer for Part C here.

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

Franchised workshops 6667 Ltrs

Spare part outlets 579 Ltrs

Oil shops 1103 Ltrs

Non-Franchised workshops 400 Ltrs

Write your answer for Part D here.

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

 Franchised workshops 5323 Ltrs

Spare part outlets 577 Ltrs

Oil shops 884 Ltrs

Non-Franchised workshops 671 Ltrs

Write your answer for Part E here.

In 2005, the Franchised workshops sold 1343 litres more than the per channel outlet of
Castrol in the same channel partner.

Write your answer for Part F here.

As per the analysis, Castrol is facing problems in Franchised Workshops and Oil Shops
channels.

Question 5

Write your answer for Part A here.

Segment Size:

1. Stock and sell mechanics (Ustaad) – 10% of the market

2. Mechanics who worked at the FW and set up their own business – 40% of the market
 3. Small job mechanics apprenticed under ustaads – 50% of the market

Share in the oil change process:

1. Stock and sell mechanics (Ustaad) – 30% share in oil change process
2. Mechanics who worked at the FW and set up their own business – 50% share in oil
change process
3. Small job mechanics apprenticed under ustaads – 20% share in oil change process

Oil Buying behavior:

1. Stock and sell mechanics shops were routinely serviced by a distributor either castrol
or a competitor
2. Mechanic shops were hesitant to stock oil products due to low in finance
3. Small job mechanics apprenticed under ustaad lacked basic understanding of credit
risk.

Financial Condition:

1. Stock and sell mechanics shops – commanded a premium price for their services and
customers never questioned their abilities. These stock and sell mechanics shops were
routinely serviced by the distributors.
2. Mechanics – These highly skilled mechanics were short on finances and looking for
financial support. Distributors refuse to service their shops as there was no guarantee
about their existence and payments
3. Small time mechanics were struggling to build their clientele and reputation, lacked
basic understanding of cash flows and payment cycles. If credit was extended to these
mechanic shops the available cash would likely be spent on daily necessities.

Write your answer for Part B here.

Module Parameter 1 Parameter 2 Parameter 3 Parameter 4 Parameter 5

 1 Low High Low Low High

2 High High High Low Medium

3 High Low Low High Low

Question 6

Write your answer here.

These CASAs will first be trained and eventually report to the distributors.

CASAs will exclusively serve the NFWs (Non Franchised Workshops)