The document analyzes Castrol's market potential in Jhansi, India. It finds that Castrol currently has a 15% market share in Jhansi. The major competitors have larger distribution networks and control 73% of the market. Feedback from dealers suggests increasing advertising, lessening the burden on dealers, and decreasing product duplication to improve sales. Recommendations include expanding rural distribution, instituting salesperson rotations, and appointing a new customer relationship officer in the Lalitpur region.

1. SUBMITTED BY :
RAGHAV AGARWAL
INDIAN SCHOOL OF MINES

2. Why Jhansi??
Uttar Pradesh’s average GDP
growth during 2007-12 = 7.28%
Jhansi is among the major
metropolitan cities in UP.
Jhansi is surrounded by major
tourist destinations viz. Orccha,
Khajraho, etc.
Jhansi is currently having the
distributors of all major
competitors of CASTROL.

3. Market Potential Study
(slides:3-6)
Formula for Engine oil consumption (Ltr.) =
(Total no. of vehicles in respective category) *
( Assumed oil required on monthly basis)
TOTAL OIL CONSUMPTION : 1369235 Lt.
Vehicle Type Engine oil
consumption
Total
Truck 1255*80 100400
Car 13557*9 122013
3 Wheeler 10224*30 306720
Tractor 8743*30 262290
Bus 678*65 44070
Jeep 4507*30 135210
2 Wheeler 132844*3 398532
MARKET SHARE CALCULATION VIA
RTO DATA
Total lubricant consumption
in Jhansi ~1370 Kl
Total Castrol consumption in
Jhansi region ~ 180 Kl
Percentage of Castrol in sale
in Jhansi region - 13.13%
Formula for Engine oil consumption (Ltr.) =
(Total no. of vehicles in respective category)
* ( Assumed oil required on monthly basis)
TOTAL OIL CONSUMPTION : 1369235 Lt.

4. Market share on basis of data from
distributors
• Brand Segments Consumption

5. Based from above data the total market share of
Castrol in Jhansi and Lalitpur area = 15%
Castrol’s market share in various segments :
Bike segment is the major contributor.
Points of Sale (for Castrol)
Great opportunity for developing
partnerships with some leading
petrol pumps
Around 66 % of current sale from
retailers.

6. Market Potential
73% of market is captured by
major competitor distributors
Market wise Division
60% Dealer Points lie in
Centre region(i.e. Elite, Jail
Chauraha, New road and JS
Chauraha)

7. Competitors Analysis
(slides:7-12)
MARKET SHARE
Castrol’s market share = 15%

8. DISTRIBUTION STRENGTH
Competitor Wise
MAK and Servo are market
leaders.
Castrol Distribution Strength

9. Distribution of Market

10. Numeric and Weighted Distribution
(slides: 10-12)
Elite Region
• Total no. of outlets selling
CASTROL=11
• Total no. of outlets in this
market=12
Hence, ND=92%
• Total volume intake of dealers
taking Castrol = 7560 Lt
• Total volume intake of all the
dealers in this market = 8060 Lt
Hence, WD=93%
Jail Chauraha
• Total no. of outlets selling
CASTROL=19
• Total no. of outlets in this
market=20
Hence, ND=95%
• Total volume intake of dealers
taking Castrol = 4640 Lt
• Total volume intake of all the
dealers in this market = 4840 Lt
Hence, WD=96%

11. Jeevanshah Chauraha
• Total no. of outlets selling
CASTROL=13
• Total no. of outlets in this
market=20
Hence, ND=65%
• Total volume intake of dealers
taking Castrol = 1730 Lt
• Total volume intake of all the
dealers in this market = 2210 Lt.
Hence, WD=78%
New Road
• Total no. of outlets selling
CASTROL=17
• Total no. of outlets in this
market=27
Hence, ND=62%
• Total volume intake of dealers
taking Castrol = 10530 Lt
• Total volume intake of all the
dealers in this market = 13030 Lt
Hence, WD=80%

12. Kanpur road
• Total no. of outlets selling
CASTROL=11
• Total no. of outlets in this
market=23
Hence, ND=48%
• Total volume intake of dealers
taking Castrol = 4330 Lt
• Total volume intake of all the
dealers in this market=5543 Lt
Hence, WD=78%

13. Dealer’s Survey
(slides: 13-17)
he survey is based on the reviews from 60 dealers.

14. Association of Dealers in various
markets

15. Bar Graph showing the categorization of feedback of various dealers
*Categories for this survey can be found on the last slide.

16. Outcome
Category Count of
feedbacks
% contribution
Dealer Dis-satisfaction index 30 33
Advertise more for today’s fragmented
audience
13 47
Lessen the burden on dealers 9 57
Increase Campaign activities to interact
more with dealers and customers
9 66
Decrease Duplicacy 10 77
Satisfied With the company Policies 16 94
Price vs. Quality 5 100
So as can be seen from the above table 80% of the feedback says that
• Dealers are more or less not satisfied
• Company should try and advertise more and interact more with dealers and customers
• Lessen dealer’s grief
• Duplicacy of product should also be taken care as it hampers company market share and
brand image

17. Lalitpur region
Total Castrol sale in Lalitpur region :
2500 Lt. (from CRO)
This sale is mostly contributed by around 15
dealers in Lalitpur and some from Mehrauni-
Mandawra region. Targets of this CRO are
being achieved .
Some of the major dealers in Lalitpur(who
earlier used to take Castrol directly from the
distributor) do not take Castrol From this CRO
anymore. These used to contribute to around
2000Ltrs.
Potential for Lalitpur Market
• Total no. of outlets selling
CASTROL=19
• Total no. of outlets in this
market=27
Hence, ND = 70%
• Total volume intake of dealers
taking Castrol = 2500 Lt
• Total volume intake of all the
dealers in this market=4900 Lt
Hence, WD = 51%

18. Suggestions to increase market share
of our company – CASTROL (slides:19-22)
 Company must begin a policy of salesman-area switching: Sometimes,
after a few years , when relations of some salesmen with their retailers go
stale, retailers do not like to conduct business anymore with the
respective distributor, which can be remedied through this policy
 Company might make new retailers
 Motivating outlets currently involved in a different trade(viz. selling auto parts or tyres
or bearings, etc.), to sell Castrol products
 Company can make new retailers by start giving its products to small mechanics on no
credit basis
 Credit time should be decreased for dealers: More the credit time, less
they are enthusiastic of selling the product. Keeping this in mind the credit
time should be minimised to a week or so(This method is also used and
applied by several leading FMCGs in India). Hence, the dealers can speed
up the sales of Castrol

19. (…continued)
 Distributing free samples to customers: This method can increase sales in so many
ways.
 Brand loyal customers might try and like the sample of the new product and make a new buy
 ‘Word of mouth’ : Customer will be thinking warm thoughts about our company, and hopefully
telling other people about our products.
 Stringent steps must be taken to curb duplicity of its products. But as prevention
is always better then the cure, so we might implement these techniques:
 Use and throw packaging might be implemented.
 Coupons can be given at the back of stickers on the bottles, so that mechanic customer tears
that sticker and leave the bottle useless.
 Periodically changing the packaging.
 Might collect empty bottles from market .
 Focus on Rural Regions:
 Sachet Marketing in Rural areas: Rural consumers are generally more price conscious and
Jhansi being a region with 40% of the population below poverty and illiterate, it becomes
important to advertise more (we need to increase five per cent of our earnings spent on
advertising to 10% now) and start more consumer connecting and awareness programmes,
mainly in rural region so as to build up an emotional connect with these consumers. The
strategy which was used by the company many years ago can be used now by selling its
products in small sachets so that aspiring consumers can afford and get to know and like the
brand. This strategy of selling in sachets as in FMCG industry has been a big hit traditionally
also.

20. (…continued)
Total number of dealers I have interacted with = 105 (approx.)
Almost 60 % of them said something like, “I do not promote Castrol on my
own as the margins are very less. I keep it in my shop because it has a good
image amongst customers. If a customer ask for a Castrol product, I will
provide. But I won’t persuade him on my own.”
Thus, it is imperative that we initiate a programme to increase the brand
popularity amongst dealers.
Some ways via which we can achieve it are:
 Interactive cricket or football matches can be conducted .
 Events like campaigning activities or awareness camps can be
conducted through dealers.
 dealers can be incentivised on basis of their loyalty or how long have
they been associated with Castrol.
 Online forums may be started ,so that dealers can post their
inquiries and lodge their complains.
 free servicing to some loyal customers can be given through dealers.

21. (…continued)
So we should consider either of the following remedies:
 Making another CRO in Lalitpur region
 Increase the targets of this CRO
 Make a CRO in Mehrauni-Mandawra region (on outskirts of Lalitpur).
 Company must consider
 Appointing a new CRO in Lalitpur region
or
 In Mehrauni-Mandawra region.
or
 Increasing targets of current CRO.

22. Appendix
Questions of feedback form
1. How long have you been associated with Castrol.
2. Total intake of Castrol.
3. Total Oil intake (including other brands).
4. Which brand do you sale most.
5. Any feedback so as to increase the sale of Castrol.
6. Which brand has the maximum sale at you
dealership.

23. Categorized Customer Feedback
1. Price vs. Quality
2. Dealer Satisfaction index
3. Advertise more for today’s fragmented audience
4. Lessen the burden on dealers
5. Increase Campaign activities to interact more
with dealers and customers
6. Satisfied With the company Policies
7. Decrease Duplicacy

24. Acknowledgment
Mr. Anuj Pandey
Mr. Rajeev Singh
Mr. Sanjay Singh
Ms. Divi Agarwal

25. References:
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