Name Anant Chauhan

Question 1

Write your answer for Part A here.

Period Rate of Growth

2000-2004 27% [=(42-33)/33)]

2004-2010 90%[=(80-42)/42]

2010-2015 50%[=(120-80)/80]

Write your answer for Part B here.

Three factors are

1. Younger Demographic Market with entrepreneurial energy

2. Increased demand in rural area
3. Financial markets were doing well hence money to spend / disposable income saw
growth.

Question 2
Write your answer for Part A here.

Private sector –

1. Shell
2. Gulf oil
3. Valvoline

Public sector -

1. Hindustan Petroleum Corporation Limited

2. Bharat Petroleum
3. Indian Oil Corporation Limited

Write your answer for Part B here.

Direct Distribution Channel –

1. Franchise Workshops.
2. Forecourt (Petrol Pumps and Gasoline stations)

Distribution Channel serviced through Distributors –

1. Wholesalers
2. Company branded workshops
3. Non-franchised workshops.
Question 3

Write your answer for Part A here.

In India, first time buyers of 2 wheelers believe in maintenance for long term and consider it
important. Warranty period ensures that the bikes are service through authorized franchised
workshops amd post warranty the consumers shift to non-franchised workshops to control
service costs and they can work with mechanics through their personal relationship and
convenience.

Also Oil change is an important activity for longer maintenance of the bike engine and its
performance. So consumers would prefer to leave the bike with mechanic to use the right oil
for same.

Castrol was able to identify three consumer segments in the market –

1. Minimalists

2. Appreciators

3. Enthusiasts

Write your answer for Part B here.

The technological advancements that were happening in the 2 wheeler industry were

1. Newer Engine designs, reduced in size and reducing the consumption of oil in running.
Thereby increasing time in oil change considerably.
2. Lubricating oil was mixed with petrol hence both burned while running whereas in 4
stroke there were separate compartments that resulted in longer time period to change
the oil.
3. PSUs lost their first mover advantage due to shift from 2 stroke to 4 stroke and
 consumer buying behavior & choice of the distribution channels changed as well
towards high streets and local players.

Question 4

Write your answer for Part A here.

Channel Partner Channel Share (%) 2010

Franchised workshops 30.95%

Spare part outlets 42.86%

Oil shops 11.90%

Non-Franchised workshops 14.29%

Write your answer for Part B here.

Based on these two metrics –

1. Franchised Workshops
2. NFWs for 4 Strokes oil market

is significantly is greater in % than the Castrol for 4 Strokes Oil.

Write your answer for Part C here.

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

Franchised workshops 6667

Spare part outlets 579

Oil shops 1103

Non-Franchised workshops 400

Write your answer for Part D here.

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

Franchised workshops 5323

Spare part outlets 577

Oil shops 884

Non-Franchised workshops 671

Write your answer for Part E here.

Franchised workshops, Spare parts outlets and Oil shops ‘sales (in litre) per channel outlet
(for the four-stroke oil market)’ is significantly greater than the ‘sales (in litre) per channel
outlet (for Castrol)’

Write your answer for Part F here.

Areas where Castrol is facing problem are the below mentioned outlets -

1. Franchised Workshops
2. Oil Shops
3. Non-Franchised Workshops

Question 5

Write your answer for Part A here.

Three NFW segment are as follows in the order of details -

Module / segment size / share in oil change process / oil buying behavior / financial condition

1. Stock and sell mechanic / 10% of mechanics base / 30% oil change process / routinely
serviced by distributor / stable on finances as the product castrol developed was sold easily
and appreciated

2. Mechanics who have worked at the franchised workshops and they are ready to set up
their own business as wel / 40% of mechanics base / 50% oil change / Receive supply of MCO
from nearby market / short of finance as these are startup mechanics and had difficulty to get
confidence from distributors.

3. Mechanics who are approached for small, minor jobs are likely to be apprenticed
under a stock and sell mechanic / 50% of mechanics base / 20% in oil change/Consumers
would buy and give it to them to change the oil / short of finance and generally struggle to get
consumer loyalty due to lack of branding and confidence from brands.

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 Low Low High High

3 High Low Low Low Low

Question 6

Write your answer here.

1. CASA will directly report to DSRs in their Headquarters locations.

2. CASA will pick up the products from small distributors & will serve to NFW’s small
mechanics who set up shop to serve.