Name Neha Gupta

Question 1

Write your answer for Part A here.

Period Rate of Growth

2000-2004 27 %

2004-2010 90%

2010-2015 50%

Write your answer for Part B here.

The key factors behind the growth of the two-wheeler market are:

1. Consumers increased disposable incomes

2. Aspirations to own a motorized vehicle and
3. Availability of easy financing

The above reasons are duly complimented by a younger demographic market full of
entrepreneurial energy. This also saw an increase in competition. As a result, the capital and
financial markets were doing well, and a considerable growth in demand was seen from the
rural sector.

Question 2

Write your answer for Part A here.

 3 Private Sector players – Shell, Gulf, Valvoline

3 Public Sector Players – Indian Oil Corporation Limited, Bharat Petroleum Corporation
Limited, Hindustan Petroleum Corporation Limited.

Write your answer for Part B here.

2 Direct distribution channels –

1. Forecourts
2. Franchised Workshops

3 Distribution channels serviced through distributor –

1. Non-Franchised Workshops,

2. Company Branded Workshops,

3. Market & Stores

Question 3

Write your answer for Part A here.

A change in consumer behavior that led consumers from “shop to Workshop” is seen in the
case study. The factors that led to this change were, trust, convenience and personal attention
from the mechanic.

This directly resulted in formation of NFW – Non-Franchised workshops.

Additionally, understanding and studying the reasons behind ownership also helped Castrol to
identify 3 distinct consumer segment – minimalists, appreciators, and enthusiasts.

Write your answer for Part B here.

 The significant changes in technology resulted in changes to the engine design which directly
resulted in reducing the size of oil sumps and increased the period / time gap between the oil
changes.

1. Consumer behaviour and choice of distribution channels was a result of Shift of

consumer behaviour from 2 stroke to 4 stroke engines

2. Changes and separation of the lubrication system in a 4-stroke vehicle resulted in shift
of lubricant sales from forecourts to open markets (Bazaars or high streets)

A significant growth (more than 20% per year) was seen in the MCO 4T market.

Question 4

Write your answer for Part A here.

Channel Partner Channel Share (%) 2010

Franchised workshops 31%

Spare part outlets 43%

Oil shops 12%

Non-Franchised workshops 14%

Write your answer for Part B here.

The channel share in percentage terms for Spare parts outlet is greater than the channel share
in percentage terms for Oil Shops in 2005.
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.

The sales of Universe Franchise Workshops, Spare parts outlets and Oil shops is greater than
the sales of Castrol outlets (in litres).

Write your answer for Part F here.

Castrol has been facing issues in FW’s(Franchised workshops), Oil shops & NFW ( Non
Franchised Workshops)

Question 5

Write your answer for Part A here.

The three NFW segments are as follows:

1. Stock-and-sell mechanics- only 10% of the market share and 30% of oil changes,
considered to be best in business and hence commanded premium prices.
2. Mechanics who have worked at the franchised workshops and are ready to set up their
own business – comprised of 40% of mechanics and 50% of oil changes. Their supply
of the MCO’s would come from nearby spare parts shop. Highly skilled but short on
finances.
3. Mechanics who are approached for small/minor jobs are likely to be apprenticed
under a stock-and-sell mechanic- comprised of 50% of mechanic base. Customers
would purchase their own oil for oil changes and then come to them. Apprenticed
under a skilled mechanic but struggling to establish their clientele and reputation.

Write your answer for Part B here.

Module Parameter 1 Parameter 2 Parameter 3 Parameter 4 Parameter 5

1 Low High Low Low Medium

2 High Low Low High High

 3 High Low Low Low Low

Question 6

CASA will report into distributors

CASA will serve the Non Franchised Workshops.