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    Castrol

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    sreeram k
    Castrol's market share of the MCO 4T oil segment is growing at a slower rate than the overall segment growth. To help close the gap between Castrol's current and target market shares, the document considers directly distributing to non-franchised workshops (NFWs). However, distributors oppose this due to concerns about the unreliability of NFWs, reduced spare parts sales, low margins, credit risk, remote locations, and high service costs associated with NFWs. The document recommends initiatives like Castrol service points, redeemable coupons, loyalty programs, and promotional events to empower mechanics and incentivize use of Castrol products at NFWs.

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    Castrol

    Uploaded by

    sreeram k
    75 views4 pages
    Castrol's market share of the MCO 4T oil segment is growing at a slower rate than the overall segment growth. To help close the gap between Castrol's current and target market shares, the document considers directly distributing to non-franchised workshops (NFWs). However, distributors oppose this due to concerns about the unreliability of NFWs, reduced spare parts sales, low margins, credit risk, remote locations, and high service costs associated with NFWs. The document recommends initiatives like Castrol service points, redeemable coupons, loyalty programs, and promotional events to empower mechanics and incentivize use of Castrol products at NFWs.

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    Castrol's market share of the MCO 4T oil segment is growing at a slower rate than the overall segment growth. To help close the gap between Castrol's current and target market shares, the document considers directly distributing to non-franchised workshops (NFWs). However, distributors oppose this due to concerns about the unreliability of NFWs, reduced spare parts sales, low margins, credit risk, remote locations, and high service costs associated with NFWs. The document recommends initiatives like Castrol service points, redeemable coupons, loyalty programs, and promotional events to empower mechanics and incentivize use of Castrol products at NFWs.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    75 views4 pages

    Castrol

    Uploaded by

    sreeram k
    Castrol's market share of the MCO 4T oil segment is growing at a slower rate than the overall segment growth. To help close the gap between Castrol's current and target market shares, the document considers directly distributing to non-franchised workshops (NFWs). However, distributors oppose this due to concerns about the unreliability of NFWs, reduced spare parts sales, low margins, credit risk, remote locations, and high service costs associated with NFWs. The document recommends initiatives like Castrol service points, redeemable coupons, loyalty programs, and promotional events to empower mechanics and incentivize use of Castrol products at NFWs.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 4

    • Growth of MCO 4T oil of 17-18 million litre per

    year. But growth of Castrol MCO 4T is 2.5 million


    litre per year
    • Potential to tap into after-market, especially
    spare part shops and NFWs in MCO 4T segment
    • Organically, Castrol can capture 24% m.s.; how to
    achieve the target of 30%?
    • Could NFWs help achieve this gap?
    • Distributors are against the idea of distributing
    Challenges directly to NFWs because of following reasons:
    • Unreliability
    • Sales drop for spare parts they are
    distributing to
    • Low margin from NFWs
    • They buy on credit and hence riskier
    • Scattered and at remote locations
    • High service cost
    • Delivery in small quantities
    Castrol Service Points: Initiative
    designed for first category NFWs
    Coupons: Redeemable Coupons to empower mechanics,
    on the cap of the bottles providing them with technical
    (Ranging from Rs.10-Rs.160) to and sales expertise through
    incentivize the mechanics trainings and providing them
    with business support materials
    and incentive programs

    Loyalty Program: Program for Accessories: Provide tools,


    Second category NFW by uniform and help in setting up
    Recommendations
    accumulating points per year to the mechanic shop for second
    provide them with benefits category NFWs

    Promotions: Sports Stars as


    Products: Pouch Pack for smaller
    Brand Ambassador and Castrol
    area shops
    powered motorcycle events
    NON FRANCHISED WORKSHOP
    Mechanics that worked at
    Mechanic workshops that franchised workshops and Mechanics approached for
    stocked and sold lubricants ready to have business on small jobs
    their own
    • 10% mechanics, 30% Oil • 40% mechanics, 50% Oil • 50% mechanics, 20% Oil
    changes changes changes
    • Ustaad Mechanics • Young • Apprenticed under an
    • Own clientele Ustaad
    • Highly skilled but short on • Limited clientele
    finances
    • Procure from spare parts
    shops
    NFC - Challenge to distributors
    • Lack of understanding of cash flow and payment cycles
    • MCO was a small part of the distributor’s portfolio
    • 10 -20% Castrol business
    • Small Business – No bulk orders
    • 2-3 Active 4T a day
    • High collection frequency and quick delivery demands
    • Need for regular contact
    • Extra DSR not economical for distributors
    • DSR reluctant to visit workshops

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