Name Deepika Srivastava

Question 1

Answer 1A.

Period Rate of Growth

2000-2004 27.27%

2004-2010 90.47%

2010-2015 50%

Answer 1B. The three factors responsible for growth of two-wheeler market in India are:

1) Fastest growing middle-class population who are the largest consumers of two wheeler
2) Growing GPD doubled in 2000 – 2005
3) Continued Tarrif reduction, availability of easy financing

Question 2

Answer 2A. The three private sector players in the industry are : Shell, Gulf, Vedol & Elf.

The three public sector players in the industry are : HPCL, Indian Oil, Bharat Petroleum.
 Answer 2B. The two direct distribution channels for the lubricant market in India are
Forecourts and Franchised Workshops.

The three distribution channel serviced through the distributor for lubricant market in India are
Pure Lube outlets, wholesalers, Market/stores etc.

Question 3

Answer 3A. Consumer buying behavior: Most of the consumers visited Franchised workshops
during the 18-24 months warranty period, afterwards post warranty period consumers moved
to mechanics (shops) as trusted source.

Answer 3B. Technological advancements happening in two wheeler industry was the 2T to
4T i.e two stroke engine to four stroke advanced engine.

Question 4

Answer 4A.

Channel Partner Channel Share (%) 2010

Franchised workshops 30.95%

Spare part outlets 42.85%

Oil shops 11.90%

Non-Franchised workshops 14.28%

Answer 4B. Spare part outlets and the Oil shops are the channels for which the ‘channel share
(2005), in percentage terms, for the four-stroke oil market’ is greater than the ‘channel share
(2005), in percentage terms, for Castrol’s four-stroke oil sales’.

Answer 4C.

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

Franchised workshops 6666.67 ltr

Spare part outlets 578.94 ltr

Oil shops 1103.44 ltr

Non-Franchised workshops 400 ltr

Answer 4D.

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

Franchised workshops 5323.30 ltr

Spare part outlets 577.385 ltr

 Oil shops 884.15 ltr

Non-Franchised workshops 670.87 ltr

Answer 4E. In 2005, Non-Franchised workshops channel is the ‘sales (in litre) per channel
outlet (for the four-stroke oil market)’ significantly greater than the ‘sales (in litre) per channel
outlet (for Castrol)’

Answer 4F. Based on these key metrics, Castrol is facing problem in Franchised Workshops
and Oil shops.

Question 5

Answer 5A. The characteristics of three segments of NFW’s can be described as follows:

1) The first segment consisted of mechanic workshops that stock and sold lubricants
(referred to a stock-and-sell mechanics). Segment size: 10% of the market. Share in oil
change process: 30%. They stock the oil in their shops. They had earned trust of their
customers and employed labors in their mechanic shops to do the jobs. Their financial
condition is somewhat good.
2) The second segment constituted mechanics who had worked at the franchised
workshops and were ready to setup their own business. Segment size: 40% of the
market. Share in oil change process: 50%. They were not serviced by the distributors,
but would get some credit on daily basis from spare part shops which gets settled on
daily basis. They were highly skilled but short on finances.
3) The third segment included mechanics who were approached for small jobs. Segment
size: 50% of the market. Consumer would buy the oil and give it to them for oil
 change. They are basically trained in mechanic workshops, but were struggling to build
their clientele and reputation. They didn’t have any finances.

Answer 5B.

Module Parameter 1 Parameter 2 Parameter 3 Parameter 4 Parameter 5

1 Low Low Low High High

2 High High High High Low

3 Low High High Low Medium

Question 6

Answer 6. CASA’s will report to the Distributors.

NFW’s will be served by the CASA’s.