NAME SUMITH SANKHLA

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
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 Station
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 that sells seed, fertilizers and pesticides.
3. Intuitional-Large sellers such as co-operative stores, associations etc.

Question 3
Part (A)
Consumer buying behaviour 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 product as per the changing technological
advancements for getting advantage in the market
Question 4
Part (A)
Channel partner Channel share% 2010
Franchised workshops 30.95%
Spare part outlets 42.85%
Oil shops 11.90%
Non franchised workshops 14.26%
Part (B)
Franchised workshops and NFW’s for four stoke oil market is significantly greater in % than
the Castrol for 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 liter) per channel outlet, 2005
Franchised workshops 6666.66
Spare part outlets 578.94
Oil shops 1103.44
Non franchised workshops 670.87
Part (D)
Channel partner sales (in liter) per channel outlet, 2005
Franchised workshops 5323.30
Spare part outlets 577.38
Oil shops 884.15
NFW’s 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>5323.3
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 behaviour
process
stock and sell mechanic 10% 30% routinely stock and sell mechanics
serviced by the are stable on finances as
distributor the product they develop
was sold easily and was
appreciated in the market
mechanics who have mechanics were short on
worked with FW and 40% 50% received their finances as it was a group
are ready to set up supply of MCO’s of youngsters wanting to
their own business from nearby start up a business and the
distributors did not get any
confidence related to their
existence and money
mechanics who 50% 20% if the consumer mechanics who had
approached for small/ needed an oil approached for small/
minor jobs are likely to change, then minor jobs seem to be
be apprenticed under they would buy struggling on finances
a stock – and sell their own as they were falling short
mechanic bottles of on branding to generate
MCO’s and take customer base
It to the shop
Part (B)

Module Parameter 1 Parameter 2 Parameter 3 Parameter 4 Parameter 5

1 Low Low High High High

2 Low High Low High High

3 High High High Low Low

Question 6
Part (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.
Part (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.