Name Mukul Milind Joshi
Question 1
Part A:
Period Rate of Growth
2000-2004 = ((42-33) *100)/33 = 27.27%
2004-2010 = ((80-42) *100)/42 = 90.48%
2010-2015 = ((120-80) *100)/80 = 50%
Part B:
1) Increasing disposable incomes
2) Aspiration to own a motorized vehicle
3) Availability of easy financing
Question 2
Part A:
Private Players:
1) Shell
2) Valvoline
3) ELF
Public sector Players:
1) IOCL (Indian Oil Corporation Limited)
2) BPCL (Bharat Petroleum Corporation Limited)
3) HPCL (Hindustan Petroleum Corporation Limited)
Part B:
Direct distribution channels:
1) Forecourts
2) FWs (Franchise Workshops)
Distribution channels serviced through Distributors:
1) Accessories and Spares
2) Wholesalers
3) Agri stores
4) Franchise workshops, etc.
Question 3
Part A:
With the economic growth, the consumer behavior was also changing.
1) The attitude of the customer was changing from Shop to Workshop (people wanted
value for money servicing, less to zero breakdown, emotionally attached to their bikes,
etc.).
2) Post warranty period, consumers were moving to after market garages (Non-
Franchise workshops) due to various reasons like they trusted the mechanics at NFWs
due to their skillsets, personal now how with each other, low servicing cost.
3) Consumers were not differentiating between product and brand offerings.
Part B:
Technological advancements happening in two-wheeler industry:
1) Due to environmental restrictions and efficiency in combustion cycle, two-wheeler
industry was shifting from 2 stroke engines to 4 stroke engines.
2) As the new engine designs were developing, the sump size was getting smaller which
means less oil required as compared to earlier oil quantity.
3) Also, the engine oil changing intervals getting longer due to advancement in oil
technology.
Question 4
Write your answer for Part A here.
Channel Partner Channel Share (%) 2010
Franchised workshops = (65/210) * 100 = 30.95%
Spare part outlets = (90/210) * 100 = 42.86%
Oil shops = (25/210) * 100 = 11.91%
Non-Franchised workshops = (30/210) * 100 = 14.29%
Part B:
Channel share for Spare part outlets (38.1%) and Non-Franchised workshops (NFWs)
(23.8%) is estimated to grow in 2010 when compared with 2005 channel share (30.3% and
7.1% respectively).
Part C here.
Channel Partner Sales (in litre) per channel outlet, 2005
Franchised workshops = 3,00,00,000/4500 = 6666.67
Spare part outlets = 2,20,00,000/38000 = 578.95
Oil shops = 1,60,00,000/14500 = 1103.45
Non-Franchised workshops = 80,00,000/20000= 400
Part D:
Channel Partner Sales (in litre) per channel outlet, 2005
Franchised workshops = 35,40,000/665 = 5323.31
Spare part outlets = 36,00,000/6235 = 577.39
Oil shops = 39,00,000/4411 = 884.15
Non-Franchised workshops = 8,50,000/1267 = 670.88
Part E:
Sale for Franchised workshop and Oil shops is greater for Sales per channel outlet for
overall oil as compared to sales per channel outlet for Castrol oil.
Part F:
Castrol is facing major problems in areas:
1) Franchised Workshops
2) Oil Shops
Question 5
Part A:
1) Various NFWs mentioned in the case are:
a. Stock and sell Mechanics:
i. Segment Size: 10%
ii. Share in oil change: 30%
iii. Oil Buying Behavior: Normally, they stock and sell the oil as per the
requirements.
iv. Financial condition: As they charge premium for their services, they
are financially strong and stable.
b. Mechanics worked at Franchise workshops:
i. Segment Size: 40%
ii. Share in oil change: 50%
iii. Oil Buying Behavior: Normally, they buy the oil from near-by spare
parts shops.
iv. Financial condition: Require financial support and are always short of
finances.
c. Mechanics approached for small jobs:
i. Segment Size: 50%
ii. Share in oil change: 20%
iii. Oil Buying Behavior: Consumers buy their own bottle and ask them to
refill.
iv. Financial condition: They struggle with finances and have very little or
no knowledge about cash flows and payment cycles. Hence, they
require financial assistance for establishing their business.
Part B.
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. CASAs will report to distributors.
2. CASAs will serve to Non-Franchise Workshops (NFWs)
