Name Nithin N

Question 1

Part A:

Period Rate of Growth

2000-2004 22.27 %

2004-2010 90.47 %

2010-2015 50 %

Part B:

Reasons for growth of two-wheeler segment

1.Consumers increasing disposable income

2.Aspiration to own a motorized vehicle

3.Availability of easy financing

Question 2

Part A:

Private Sector Companies

1.Shell
 2.Gulf

3.Valvoline

Public Sector Companies

1.Indian Oil Corporation Ltd.

2.Bharat Petroleum Corporation Ltd.

3.Hindustan Petroleum Corporation Ltd

Part B:

Direct Distribution Channel

1. Forecourt-Petrol Pumps and Gasoline Stations

2. FW (Franchised Workshops)-Authorized workshops that serviced vehicles under warranty.

Distribution channel serviced through distributors

1. NFWs (Non franchised workshops- Small workshops set up by mechanics to service vehicles

2. Agri stores-Stores that sells seed, fertilizers and pesticides.

3. Intuitional-Large sellers such as co-operative stores, associations etc.

Question 3

Part A:

Consumer buying behavior In India, two -wheelers are regarded as the first step of achievement and therefore,
its maintenance for long term is considered important. During the warranty period of the vehicle, most
customers do service with the authorized franchised workshops for the sake of warranty. After warranty period,
 most change over to Non franchised workshops for the sake of convenience, personal relationships, service
costs etc.

The consumer base is divided into three categories:

a) Minimalists-the consumers who seek maximum value for the money spent through the reassurance from a
credible brand.

b) Appreciators-the consumers who regard their vehicles as their lifeline and are ready to pay a slight premium,
so that vehicles don’t break down.

c) Enthusiasts-the consumers who regard vehicles as their dream and therefore, want the best for their vehicle,
irrespective of the price.

It is important for the company to develop and position the products according to the consumer base. Here,
company has to follow the concept of STP .The process of segmentation and target consumer base is done by
classifying the consumer base .Now, company has to follow the apt positioning strategy and thereby, increase
the sales

Part B:

The engine designs are changing and the sizes are decreasing.

This would result in a slump in oil use. Two stroke engines are replaced by four stroke engines which mean
PSUs are no longer the front-runners are losing the first mover advantage. All companies in the industry got the
same advantage to go penetrate deeper .Companies just have to search for better distribution networks and
can also innovate this products as per the changing technological advancements for getting advantage in the
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%

Part B:

Franchised workshop and NFW’s for Four Stoke oil market is significantly greater in (percentage) than the
Castrol for stroke oil four

Four stroke oil market Castrol

Franchised workshops 39.47 > 29.77

NFW’s 10.52 > 7.14

Part C:

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

Franchised workshops 6666.66

Spare part outlets 577.38

Oil shops 884.15

Non-Franchised workshops 670.87

Part D:

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

Franchised workshops 5323.50

Spare part outlets 577.38

Oil shops 884.15

Non-Franchised workshops 670.87

Part E:

Channels for which the sales (in litre) per channel outlet (for the four –stoke oil market) significantly greater
than the sales (in litre) per channel outlet (For Castrol)

Franchised workshops 6666.66 > 5323.30

Oil shops 1103.44 > 884.15

Spare part outlets 578.94 > 577.38

Part F:

1) Franchised workshop: While this channel would have a large part to play in future growth, Castrol had
restricted access due to limited tie-ups with original equipment manufacturers and the influence of genuine
oils.

2) Oils shops: This channel was slated to have the lowest growth rate, due to a shift in consumer’s
behaviours.
 3) Spare part Outlets and non-franchised workshops: These channels were expected to be the growth
drivers of the future.

Question 5

Part A:

Module Segment Share in oil Oil buying Financial Conditions

Size change process behaviour

Stock and sell 10% 30% the oil Routinely serviced Stock and sell mechanics are
mechanic change process by the distributor stable on finances as the product
they developed was sold easily
and was appreciated in the
market.

Mechanics who 40% of 50% in the oil Received their Mechanics were short on
have worked with the change process supply of MCO’s finances as it was a group of
Franchised mechanics from nearby youngsters wanting to start up a
workshop and are business and the distributors did
ready to set up not get any confidence related to
their own Business their existence and money.

Mechanics who 50% of 20% in the oil If the consumers Mechanics who had approached
have approached the change process needed an oil for small/minor jobs seem to be
for small/minor mechanics change , then they struggling on finances as they
jobs are likely to be base would buy their were falling short on branding to
apprenticed under own bottles of generate customer base.
a stock – and sell MCO’s and take it
mechanic to the shop.

Part B:
 Module Parameter 1 Parameter 2 Parameter 3 Parameter 4 Parameter 5

1 Low Low Low High High

2 Low High Low High High

3 High High High Low Low

Question 6

Ans 6:A: CASA’s (Castrol Authorized Service Associates) they will direct report to the DSR in the
headquarters locations. They are the trained distributors sales representatives with access to these markets

Ans 6:B: CASA’s (Castrol Authorized Service Associates) will pick up the product from small distributor’s and
they will serve the NFW’s small mechanics who set up shop to serve here