Engine Oils: Castrol

1
Engine Oils Castrol Servo

• Rural Marketing Management

2
Who? What? Where?

• Who?
• 2-wheeldrivers, truck drivers, tempo drivers,
  mechanics
• Around 50 motorbikes, 2 tempos and 3 Jeeps in
  that area
• No trucks in the area
• What?
• Preferences with respect to purchase of engine
  oils
• Where?
• Parali village, District Satara
• Petrol pumps
• Retail outlets
• Authorized service stations, Garages(mechanics)
• Rural and agricultural dealers
• Wholesale distributors

3
Overview

• A largely fragmented market with small and big
  players. However, Market share is enjoyed by only
  a few big players, namely Castrol and Servo
• 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
• Castrol 25, Servo 20
• Volume growth is stagnating due to longer lasting
  lubricants
• Challenges to the growth of the segment are
• Illiteracy/Unawareness
• Low distribution network

4

• Bhim Rao- Tractor Driver
• I have been using Castrol for 10-15 yrs
• I use it because it was suggested by the mechanic
  and it is of good quality
• I will switch the brand if offered a lower price
• Companies have stopped offering promotions and
  discounts
• A good oil is one that is long lasting and gives
  a powerful sound

• Mohan Karande- Motorbike Owner
• I have been using Castrol for 3 yrs
• I tried Servo for a while but my mechanic
  suggests me to use Castrol
• I will switch the brand if offered a lower price
• Companies do not offer promotions and discounts
• Would prefer a shop in the village
• 1 ltr pack lasts me 3 months

5

• Sachin- Tempo Driver
• I have just bought this tempo and I dont know
  which oil has been used
• I plan to buy Servo in future because passenger
  cars use it
• I remember Rahul Dravid in the Servo ad though
  that is not the reason for purchase
• I hope companies offer promotions and discounts
  and reduced prices
• A good oil is one which gives good engine power

6
Customer Buying Behaviour

• Key Influencers
• Direct
• Mechanics
• Decision makers in the family
• Indirect
• Television and print ads.
• Brand ambassadors(Rahul Dravid)

• Brand Awareness
• Aware of brands like Castrol and Servo
• Low top of the mind recall

• Key Consideration
• Price
• Pick-up
• Increase in Engine life
• Powerful engine sound
• Long lasting
• Lubrication
• Seal

• Price Sensitivity
• Highly price sensitive consumer who would switch
  brands if offered a more competitively priced
  quality product
• One truck driver Chand Singh using BPs Vellaus

7
Suggestions

• Segmentation
• Quality conscious consumer
• Price conscious consumers
• Educate the consumers about the importance of
  using a
• good quality engine oil in a vehicle that is an
  expensive investment. Low quality could reduce
  life.
• Focus on OOH advertising and POS material
• The company should tie up with a few tractor
  manufacturers to push the product
• Expand distribution network
• Retail outlets/stalls in villages
• Establish vehicle service centers in villages
• Trade launches
• Delivering the product at the door step

8

• Strengthening the relationships with the
  mechanics which is a strong influencer category.
• Mechanic and retailer meets
• Discount offers
• Highest sale contests and rewards
• Reward based programs for customers
• Loyalty programs
• Discount offers
• Schemes-freebies
• Direct interaction between company
  representatives and consumers to further enhance
  product offering

9

• THANK YOU
• Nicole Braganza (57)
• Swati Mehra (67)
• ?