IMT Castrol - Casestudy on real time concepts of Supply chain

management
MBA-General Management Papers (Indian Institutes of Management)

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Name Suruchi

Question 1

A.
Period Rate of Growth

2000-2004 27%

2004-2010 90%

2010-2015 50%

B. The three factors of the growth of two-wheeler market in India mentioned in the case are:

 Younger demographic market.

 Capital and financial market doing well in India.
 Growth in demand from rural India.

Question 2

A. Private Players – Shell, Gulf, Valvoline

Public Players – IOCL (Indian Oil Corporation Limited), Bharat Petroleum, Hindustan
Petroleum Corporation Limited.

B. Direct Distribution Channel – Forecourt (Petrol pumps and gasoline stations) and
Franchise workshops

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 Distribution Channel through Distributors – Wholesalers, Company branded workshops and
Non-franchised workshops.

Question 3

A. Considering the below consumer buying behavior:

 Shift in shop to workshop impacted the new demand for the Non –
franchised workshops.
 Feeling of oil change as an important aspect to ensure continuity in their personal
mobility impacted a need for the change of the consumer perception towards
buying the motorcycle oil.

Based on the needs and consumer segments, Castrol was able to identify three consumer
segments in the market – minimalists, appreciators, and enthusiasts.

B. The advancements in the technology has led the changes in engine design. The newer
design has made the oil sumps size smaller and has increased the time between oil changes
for routine maintenance.
 Shift from 2 stroke to 4 stroke engine has impacted the consumer buying behavior
and choice of the distribution channels.
 4 stroke engine design with separate lubrication system for the engine cooling
impacted the change in the demand of the motorcycle oil from forecourts to workshops
(FW or NFWs).

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Question 4

A.

Channel Partner Channel Share (%) 2010

Franchised workshops 31%

Spare part outlets 43%

Oil shops 12%

Non-Franchised workshops 14%

B. It is higher for Spare Parts Outlet and Oil Shops.

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

Franchised workshops 6667

Spare part outlets 579

Oil shops 1103

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 Non-Franchised workshops 400

D.

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

Franchised workshops 5323

Spare part outlets 577

Oil shops 884

Non-Franchised workshops 671

E. It is higher for Franchised Workshops, Spare Part Outlets and Oil shops.

F. Following are the problem areas for Castrol:

 Franchised Workshop
 Oil Shops
 Non – Franchised Workshops

Question 5

A. Three NFW segment are as follows:

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 1. Stock and sell mechanics.
2. Mechanics who have worked at the franchised workshops and are ready to set up their
own business.
3. Mechanics who are approached for small, minor jobs are likely to be apprenticed
under a stock and sell mechanic.

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 to distributors.

 CASA will serve to Non – Franchise Workshops.

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