castrol
DESCRIPTION
TRANSCRIPT
- 1. RURAL MARKETING MANAGEMENT UTKARSH PRATAP SINGH-143 Engine Oils Castrol & Servo
2. AGENDA
- Overview
- Project Information
- 4As & Marketing Mix
- Consumer Interactions
- Customer Buying Behavior
- Suggestions
3. Overview
- A largely fragmented market with small and big players. However, Market share is enjoyed by only a few big players
- Engine oil in rural India are used in 2-wheelers, heavy vehicles(trucks and tractors), light commercial vehicles (tempos and passenger vehicles), and farming equipments (water pumps)
- Market Share
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- Castrol: 25%, Servo: 20%
- Volume growth is stagnating due to longer lasting lubricants
- Challenges to the growth of the segment are
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- Low literacy/Unawareness
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- Low distribution network
4. Project Information
- Who?
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- 2-wheeldrivers, truck drivers, tempo drivers, mechanics
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- Around 50 motorbikes, 2 tempos and 3 Jeeps in that area
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- Many trucks in the area
- What?
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- Preferences with respect to purchase of engine oils
- Where?
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- Wada village, District: Bhivandi
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- Petrol pumps
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- Retail outlets
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- Authorized service stations, Garages(mechanics)
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- Rural and agricultural dealers
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- Wholesale distributors
5. 4 As
- Availability
- Retail outlets, Haats, Petrol Pumps, Hand carts etc.
- Affordability
- Comes in affordable packs of 10 to 15 rupees
- Acceptability
- 90% of the consumer use Castrol as their choice
- Awareness
- people are less aware about the other brands like, Redline, AMSOIL, and Royal Purple, Shell Lubricants, Chevron but every one knows CASTROL
6. Marketing Mix 4Ps
- Product
- Engine Oil, Greece, Dry Lubricants
- Price
- Different prices as per size and quality
- Place
- Used all over India, has market share of over 30%
- Promotion
- tie up with ITC-E chaoupal, Godrej Adhar, Reliance India
7.
- Mohan Karande- Motorbike Owner
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- I have been using Castrol for 3 yrs
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- I tried Servo for a while but my mechanic suggests me to use Castrol
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- I will switch the brand if offered a lower price
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- Companies do not offer promotions and discounts
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- Would prefer a shop in the village
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- 1 ltr pack lasts me 3 months
Interviewee 1 8. Interviewee 2
- Bhim Rao- Tractor Driver
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- I have been using Castrol for 10-15 yrs
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- I use it because it was suggested by the mechanic and it is of good quality
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- I will switch the brand if offered a lower price
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- Companies have stopped offering promotions and discounts
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- A good oil is one that is long lasting and gives a powerful sound
9.
- Sachin Jadhav- Tempo Driver
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- I have just bought this tempo and I dont know which oil has been used
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- I plan to buy Servo in future because passenger cars use it
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- I remember Rahul Dravid in the Servo ad though that is not the reason for purchase
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- I hope companies offer promotions and discounts and reduced prices
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- A good oil is one which gives good engine power
Interviewee 3 10. Customer Buying Behavior
- Factors influencing buying behavior
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- Environment (e.g. electric equipments)
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- Geographical influence(e.g. HMT watches)
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- Family
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- Economic factors
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- Place of purchase
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- Creative use of products
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- Cultural factors
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- Product
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- Social practices
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11. Continued..
- 3)Key Consideration
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- Price
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- Pick-up
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- Increase in Engine life
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- Powerful engine sound
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- Long lasting
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- Lubrication
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- Seal
- 4)Price Sensitivity
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- Highly price sensitive consumer who would switch brands if offered a more competitively priced quality product.
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- Affordable Packaging
- 2)Key Influencers
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- Direct
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- Mechanics
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- Decision makers in the family
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- Indirect
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- Television and print ads.
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- Brand ambassadors
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- 1)Brand Awareness
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- Aware of brands like Castrol and Servo
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- Low top of the mind recall
12. Suggestions
- Segmentation
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- Quality conscious consumer
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- Price conscious consumers
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- Both
- Educate the consumers about the importance of using a
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- good quality engine oil in a vehicle that is an expensive investment. Low quality could reduce life
- The company should tie up with a few tractor manufacturers to push the product
13.
- Expand distribution network
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- Retail outlets/stalls in villages
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- Establish vehicle service centers in villages
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- Trade launches
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- Delivering the product at the door step
- Strengthening the relationships with the mechanics, a strong influencer
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- Mechanic and retailer meets
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- Discount offers
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- Highest sale contests and rewards
- Reward based programs for customers
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- Loyalty programs
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- Discount offers
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- Schemes-freebies
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- Direct interaction with Consumers
Continued.. 14.