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IMT Castrol

The document discusses sales data and market share of lubricant distribution channels in India's two-wheeler industry from 2005-2010. It analyzes factors like growth rates, consumer behavior, technological changes, and sales performance of franchised workshops, spare part outlets, and non-franchised workshops. It also categorizes mechanics into three segments based on their role, sales contribution, and financial conditions to identify target areas for increasing lubricant sales.

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Arjun Raj
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261 views6 pages

IMT Castrol

The document discusses sales data and market share of lubricant distribution channels in India's two-wheeler industry from 2005-2010. It analyzes factors like growth rates, consumer behavior, technological changes, and sales performance of franchised workshops, spare part outlets, and non-franchised workshops. It also categorizes mechanics into three segments based on their role, sales contribution, and financial conditions to identify target areas for increasing lubricant sales.

Uploaded by

Arjun Raj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Name Arjun Raj

Question 1

Write your answer for Part A here.

Period Rate of Growth

2000-2004 27.27%

2004-2010 90.47%

2010-2015 50%

The three factors responsible for the growth of the two - wheeler market in India was :

1. Consumers increasing disposable income

2. Aspiration to own motorized vehicle

3. Availability of easy financing

Question 2

Three Private Sector:

1. Shell
2. Gulf
3. Valvoline

Three Public Sector:

1. Indian Oil Corporation


2. Bharat Petroleum Corporation Limited
3. Hindustan Petroleum Corporation limited

Two Direct Distribution Channel:

1. Franchised Workshop
2. Forecourts

Three distribution channels serviced through the distributor:

1. Institutional
2. Bazaars / Agri Stores
3. NFWs (Non Franchise Workshops)

Question 3

Consumers had previously chosen to buy the oil of their choice and take it to their preferred
mechanic for service, but they were now more likely to take the bike directly to the
mechanic’s shop and trust the mechanic to use the right oil. This change in behavior was
termed as “from shop to workshop.” The factors driving this behavioral change were trust,
convenience, and personal attention from the mechanic, who was seen as a credible source of
information for recommending the right oil for the bike. Resultantly consumers started shifting
from franchised shops to Non-franchised Workshops.

Technological advancements happening in the two-wheeler industry:

1. Newer engine technologies and a shift from two-stroke engines to four-stroke engines
would impact consumer behaviour and choice of distribution channels.
2. Changes in engine design and newer technology meant that the oil sump sizes were
getting smaller, and the periods between oil changes were longer. These changes led to
stagnation in volume growth.

Question 4

Write your answer for Part A here.

Channel Partner Channel Share (%) 2010

Franchised workshops 30.95%

Spare part outlets 42.86%

Oil shops 11.905%

Non-Franchised workshops 14.285%

Its Higher in Franchised Workshops and Non-Franchised Workshops

Write your answer for Part C here.

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

Franchised workshops 6,666.66


Spare part outlets 578.95

Oil shops 1,103.45

Non-Franchised workshops 400

Write your answer for Part D here.

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

Franchised workshops 5323.3

Spare part outlets 577.386

Oil shops 884.153

Non-Franchised workshops 670.88

Oil Shops and Franchised Workshops Sales (in Liters) is greater

Areas of concern:

1. Franchised workshop outlets has been underperforming both in terms of channel


performance and sales per outlet
2. Sales per outlet is low for oil shops and franchise shops
3. Possibility for increasing or driving sales for spare part outlets exist due to sales being
almost at market average range

Question 5

1. Stock and Sell Mechanics


• Segment size – 10%; 0.8 Million liters
• Share in the oil change process – 30%
• Oil buying behaviour – They usually stock and sell the products. They are frequesntly
services by the distributors. They are highly skilled and trusted by the consumer.
Financial condition - They command a premium price for their services

2. Mechanics who have worked in franchise workshops and ready to set up their own
business
• Segment size – 40%; 3.2 Million liters
• Share in the oil change process – 50%
• Oil buying behaviour – Receive their supply from spare part stores.
• Financial condition – Require financial support. Based on relationship they receive
credit

3. Mechanics who are approched for small/minor jobs and apprentices under stock and
sell mechanics
• Segment size – 50%; 4 Million liters
• Share in the oil change process – 20%
• Oil buying behaviour – Consumer buy their own bottle and take to shop.
• Financial condition – Struggling to build clientele and hence struggling financially
Write your answer for Part B here.

Module Parameter 1 Parameter 2 Parameter 3 Parameter 4 Parameter 5

1 Low High Low Low High

2 High Low High High High

3 High High Low Low Low

Question 6

1. CASA should report to distributors for better span of control


2. CASA will service only NFWs

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