castrol india limited innovative distribution channel

castrol india limited innovative distribution channel

• 1.
  Krishna Govind Priyadarshini Surya Kumar SriVikash
• 2.
  Castrol India Limited Cheers Wakefield  Technological innovations and marketing expertise.  “It’s more than just oil, it’s liquid engineering.”  Headquartered in UK  Automotive and Industrial applications  Competitors: IOCL, BPCL, HPCL
• 3.
  MCO 4T  MotorcycleOil for four stroke engines  In 4T vehicle, the oil needed to be changed only once every 2000 to 2500 kilometers.
• 4.
   Supply ofonly 2.5 million litres of MCO 4T per year, which was far less than the demand of market.  Parallel outlet is possible.
• 5.
  Project team findings Teamdivided the country geographically into four sections:  Greater than 5 million people  5 million to 1 million  1 million to 500,000  Less than 500,000.
• 6.
  Distribution analysis Distribution analysisfor the following services:  Motorcycle spare part and accessory shops  Oil shops  Motorcycle NFWs
• 7.
  Non-Franchised Workshop classification Firstsegment:  Sold lubricants  It contributes 10 % of the market and 30%of oil changes. Second segment:  Mechanics ready to set up their own business  It contributes 40 % of the market and 50%of oil changes Third segment  Minor issues  It contributes 50% of market
• 8.
  Market Potential Forecastof Four-Stroke Oils in India Channel Four-Stroke Oil market in 2005(in million of litres) Four-Stroke Oil market in 2010(in million of litres) CAGR% Franchised Workshops 30 65 17 After Market Spare part outlets 22 90 33 Oil Shops 16 25 9 Non-Franchised Workshops 8 30 30 Total 76 210 23
• 9.
  Market Coverage ofCastrol’s Four Stroke Oil in India, 2005 Channel Outlet universe Outlet Selling Castrol Oil Coverage(%) Franchised Workshops 4500 665 14.8 After Market Spare Part Outlets 38000 6235 16.4 Oil Shops 14500 4411 30.4 Non-Franchised Workshops 20000 1267 6.3 Total 77000 12578 N/A
• 10.
  Castrol India’s ChannelEvaluation- Current vs Future Shares Channel Four-Stroke Oil market in 2005(in million of litres) Channel Share(2005)% Projected Four-Stroke Oil market in 2010(in million of litres) Channel Share(2010)% Franchised Workshops 3.54 29.8 11 1705 After Market: Spare Parts Outlets 3.6 30.3 24 38.1 Oil Shops 3.9 32.8 13 20.6 Non- Franchised Workshops 0.85 7.1 15 23.8 Total 11.89 100 63 100
• 11.
  Thank You