Name Manas Bhushan Patil

Question 1

Answer 1A:

Period Rate of Growth

2000-2004 27%

2004-2010 90%

2010-2015 50%

Answer 1B:

The three factors for growth of two-wheeler market in India are:

1. The aspiration to own a motorised vehicle.

2. Availability of easy financing.
3. Increase in disposable incomes.
4. Younger demographic market.

Question 2

Answer 2A:

• Three private sector players in industry are:

1. Shell
2. Gulf
 3. Vavoline
• Three public sector players in industry are:
1. Indian Oil Corporation Limited
2. Bharat Petroleum Corporation Limited
3. Hindustan Petroleum Corporation Limited

Answer 2B:

• Two direct distribution channels are:

1. Forecourt: Petrol pumps and gasoline stations.
2. Franchised Workshops: Authorized workshops that serviced vehicles
under warranty, providing all services related to vehicles.
• Three distribution Channels serviced through distributors are:
1. Non- Franchised Workshops (NFWs): Small mechanics who set up
shops to service motorcycles
2. Accessories and spare parts: stores that stocked and sold vehicles
accessories and spare parts.
3. Institutional: large sellers such as co-operative stores, associations
etc.

Question 3

Answer 3A:

Most of the customers saw changing of oil as the major necessity at the time of
maintenance which could result in better performance of the motorcycle. During
the warranty they preferred going to the motorcycle dealership or franchised
workshop for warranty benefits and after warranty period was over the bikes
entered mechanic workshop as it was cheap and where easily accessible as per
the customer convenience, they had trust in the mechanic as they got
personalised attention and thus considered shop mechanic as a credible source of
information for recommending the right engine oil.

Answer 3B:

Technological advancements are the need of era, and one must continuously
develop to sustain in market. Like in our case study we saw engine design
changing from 2 stroke to 4 stroke, with this advancement where earlier the oil
was mixed with gasoline and burned with fuel was now stored separately and the
vehicles needed to change the oil at the time of maintenance or after a couple of
kilometres. During this time there was a major shift of lubricant sales from
forecourt to open market (FW or NFW).

Question 4

Answer 4A:

Channel Partner Channel Share (%) 2010

Franchised workshops 31%

Spare part outlets 43%

Oil shops 12%

Non-Franchised 14%
workshops

Answer 4B:
Franchised Workshop and Non- Franchised Workshop.

Answer 4C:

Channel Partner Sales (in litre) per channel

outlet, 2005

Franchised workshops 6667

Spare part outlets 579

Oil shops 1103

Non-Franchised
workshops 400

Answer 4D:

Channel Partner Sales (in litre) per channel

outlet, 2005

Franchised workshops 5323

Spare part outlets 577

Oil shops 884

Non-Franchised 671
 workshops

Answer 4E:

Its higher for:

1. Franchised workshop
2. Spare part outlets
3. Oil shops

Answer 4F:

Following are problem areas for Castrol:

1. Franchised workshop
2. Oil shops
3. Non - Franchised workshop

Question 5

Answer 5A:

1. Stock and sell mechanics

• Segment size: 10%
• Share in oil change process: 30%
• Oil buying behaviour: Stocks and resell MCO to customers
• Financial condition: Good financial condition and has premium pricing for
service.
2. Mechanics that have worked at the franchised workshop and are ready to
set up their own business.
• Segment size: 40%
• Share in oil change process: 50%
 • Oil buying behaviour: Brought their MCO from nearby spare part shops
and they are hesitant to keep MCO with them because they lag financial
support
• Financial condition: Low financial condition and looking for financial
support
3. Mechanics that are approached for small, minor jobs are likely to be
apprenticed under a stock and sell mechanic.
• Segment size: 50%
• Share in oil change process: 20%
• Oil buying behaviour: Customer has to purchase and bring own oil.
• Financial condition: Low on finance

Answer 5B:

Module Parameter Parameter Parameter Parameter Parameter

1 2 3 4 5

1 Low High Low High High

2 Low High High Low High

3 Low High High Low Medium

Question 6

• CASA’s (Castrol Authorized Service Associates) they will directly report to

the DSR (Distributor Sales Representative) in the distributor locations.
• CASA’s will serve to Non-Franchised Workshops.