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Veedol Lubricants
By
Prem Prakash S
PGPM student,
Indian Institute of Management,
Tiruchirappalli
Trichy | Puducherry |
Salem 15, 2016
TIDE WATER OIL CO. (INDIA) LTD
Kolkata
ACKNOWLEDGEMENT
Prem Prakash S
1 INTRODUCTION
2 OBJECTIVE
3 METHODOLOGY
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5 PONDICHERRY (UT)
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5.2.2 MECHANICS
5.2.3 CONSUMERS
5.3 SMALL COMMERCIAL VEHICLES
5.3.1 RETAILERS
5.3.2 MECHANICS
5.3.3 CONSUMERS
5.4 PASSENGER CARS
5.4.1 RETAILERS
5.4.2 MECHANICS
5.4.3 CONSUMERS
5.5 TRACTORS
5.5.1 RETAILERS
5.5.2 MECHANICS
5.5.3 CONSUMERS
5.6 QUALITATIVE ANALYSIS - PONDICHERRY
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7 RECOMMENDATIONS
60
1 INTRODUCTION
Tide Water Oil Co. (India) Ltd. is a part of the multi divisional Andrew Yule group with
head office at Kolkata and regional offices at Mumbai, Chennai and New Delhi. Tide
Water Oil has been manufacturing and marketing the Veedol brand in India since its
inception in 1928. Tide Water Oil is now a leading manufacturer and marketer of
automotive lubricants in India.
2 OBJECTIVE
1. CATEGORY UNDERSTANDING & CONSUMER BEHAVIOUR
Segment-wise consumer usage practice
Key influencing factor for Retailer, Mechanic and Consumer
Consumer behaviors profiling segment-wise
Price Sensitivity
2. BRAND STANDING (VS COMPETITION)
Brand adopted in past, current brand and Future considerations
Brand Awareness
Pull vs push brands
Communication strategy for various Brands
3. BRAND EQUITY, MARKET OPPORTUNITIES
Understanding Brand strength against competitor brands and its value
Gap analysis and Market operated price (MOP) comparison between brands
3 METHODOLOGY
3.1 SURVEY
METHOD
Stakeholders in an Engine oil industry are identified as Retailers, Mechanics
and Consumers. A set of 20 questions for each category of stakeholder is
prepared. Each question captures one unique parameter for the analysis. The
answers for questionnaire is collected without revealing the veedol brand
name. This is to remove any biases if the respondent thinks we survey for a
specific brand. Apart from stakeholders, we have segmented the market as per
the type of vehicles. Five segments including Two wheelers, Passenger cars,
Small commercial vehicles (SCV), Heavy Medium commercial vehicles(HMCV)
and Tractors are surveyed. Surveys are done under the impression as an
academic project to make the respondent less doubtful.
3.2 SURVEY
LOCATIONS
Three cities with dominant Tamil speaking population from Southern India is
chosen for this study. These three locations include Trichy, Salem (both from
Tamil Nadu) and Puducherry (Union territory). Tour plan was devised to plan
the survey. Trichy and its surrounding areas were covered from 8 th April to 23rd
4
April. Puducherry was covered between 24th April to 8th May and Salem was
covered from 9th May to 21st May.
3.3 SAMPLE
SIZE
To keep the findings within range and reduce outliers, 12 samples of retailers,
13 samples of mechanics and 20 samples of consumers were allowed to
respond to survey questionnaire for each segment. With this calculation, each
location will have a total of 225 responses and total of 3 locations would be
675. Samples are selected on a random and convenient basis depends on the
locations. Retailers with single brands and petrol bunks that sell oils were
omitted in the survey.
2
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10
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12
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14
12
10
8
6
4
2
0
4.1.1.2Summary of Analysis
Surveys were conducted between 8th April to 23rd April 2016.
Areas covered
Popular Brands
Recommended Brands
Mechanics recommendations,
Great performance
Brand Ratings
In-shop branding
Castrol
Packaging
Shell
Service delivery
AC Delco
Sub-brand
Castrol
Shell
Activ go
20W-40
20W-50
10W-30
10W-40
20W-40
Power1
20W-40
Advance AX5
Activ scooter
Packsiz
e
0.9
1
1
0.8
MRP
225
245
325
MOP
300
325
Margin
8%
8-10%
245
780
Advance AX3
Premium
1
0.9
0.9
1
0.9
278
259
288
355
312
Premium
Advance AX5
Advance Ultra
1
0.9
1
314
288
399
300
10%
300
270
380
10%
10%
10%
20W-50
10W-30
10W-40
15W-40
15W-50
Mobil
Veedol
Servo
Gulf
Valvoline
MAK
20W-40
20W-50
10W-30
10W-40
20W-40
20W-50
10W-30
10W-40
20W-40
20W-50
10W-30
20W-40
Super
Super
Super 4T
Mobil1
Extra 4T
1
1
0.9
1
1
1
295
321
306
326
322
0.8
1
Pride 4t
20W-40
20W-50
10W-30
20W-40
20W-50
10W-30
20W-40
20W-50
10W-30
Pride
Champ 4T
4T Premium
1
0.9
1
0.9
1
0.9
1/0.9
1
0.8
232
213
329
257
268
260
280
380
280
380
255
380
250
11%
11%
11%
11%
11%
280
250
12-15%
12%
300/280
380
270
260
285
300
4.1.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.
4.1.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Castrol is present in all
mechanics recommendations list.
13
11
8
5
2
Castrol
Servo
Gulf
Shell
MAK
Valvoline
Elf/Total
20W-40; 85%
4.1.2.2Summary of Analysis
13 Mechanics
Areas covered
Common Grade
20W-40 (84.6%)
9
Recommended brands
Pushed Brands
MAK
Factors for
recommendation
Brand perception
rating
Quality
Castrol
Product performance
Castrol
Price
Valvoline
Valvoline
Packaging
Shell
Promotion
Castrol
4.1.3 Consumers
A sample of 20 two wheeler owners are surveyed for this. Sample includes a
mix of bikes below 150cc, above 150cc and scooters.
4.1.3.1Observations
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.
4.1.3.2Summary of Analysis
Popular Brands
MAK
Brand perception
rating
Performance
Castrol
Gulf
10
4.2 HEAVY/MEDIUM
Mechanics choice
Shell, Gulf
Price
Gulf
Advertisement
Castrol
DUTY
COMMERCIAL VEHICLES
4.2.1 Retailers
Gulf, Servo are commonly used brand by surveyed retailers throughout Trichy.
Other common brands include Castrol, Servo and MAK. HMCV market is also
flooded with used oils.
4.2.1.1Brand Presence
Servo present in 11 out of 12 retail shops surveyed. This is because Servo is
a well moving brand among cost conscious HMCV consumers (specially
drivers).
Gulf and Castrol takes the second in shelf space of retailers because of the
demand from both consumers and mechanics. Low cost used oils are also
commonly bought by drivers of old/rented vehicles.
11
10
10
10
8
8
6
4
2
2
0
Servo
Castrol
Gulf
MAK
Valvoline Veedol
Shell
Other*
Elf/Total
HP
Areas covered
Popular Brands
Recommended Brands
Brand Ratings
In-shop branding
Servo
Packaging
Servo
Service delivery
Gulf
Sub-brand
Castrol
Shell
Mobil
15W-40 CI4
15W-40 CH4
20W-40 CF4
15W-40 CF4
15W-40 CF4
15W-40
Multigrade
15W-40 CF4
Turbo +
Turbo
Prima
CRB Plus
Rimula R3X
Delvac Super
1300
Delvac
15W-40 CH4
15W-40 CF4
20W-40 MG
15W-40 CF4
Turbo pro
HDC
Super
Pride
Packsiz
e
10
10
7.5
10
7.5
10
MRP
MOP
Margin
3000
2700
2000
2750
1900
2400
8%
8-10%
10
2150
10
10
10
10
2800
2400
1900
2150
Veedol
Servo
11%
11%
11%
12
Gulf
Valvoline
MAK
BP
Vanellus
15W-40 CF4
15W-40 CH4
15W-40 CF4
15W-40 CF4
15W-40 CH4
15W-40 CI4
Premium
LE max
Superfleet
All fleet
Premium classic
Premium classic
plus
15W-40
20W-40
10
10
10
10
10
10
2400
3200
2800
2500
2700
3000
10
2000
2040
10
4.2.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.
4.2.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Gulf is present in 12
mechanics recommendations list. They even recommend it for Non-Ashok
Leyland vehicles.
ands am ong TOP 3 recom m endation by HMCV m echanics (Sam ple size 1
14
12
12
10
10
6
4
2
0
Gulf
Servo
Castrol
Shell
MAK
Valvoline
Veedol
13 Mechanics
13
Areas covered
Common Grade
Recommended brands
Pushed Brands
Servo
Factors for
recommendation
Brand perception
rating
Quality
Castrol
Product performance
Castrol
Price
Valvoline
Valvoline
Packaging
Shell
Promotion
Castrol
4.2.3 Consumers
A sample of 20 lorry & bus owners are surveyed for this. Sample includes a
mix of brands such as Tata, Eicher, Ashok Leyland, Bharatbenz.
4.2.3.1Observation:
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.
14
Popular Brands
Servo
Brand perception
rating
Performance
Castrol
11
10
10
8
6
4
4
2
2
0
Servo
Castrol
Gulf
MAK
Shell
Mobil
HP
15
Areas covered
Popular Brands
Recommended Brands
Brand Ratings
In-shop branding
Castrol
Packaging
Servo
Service delivery
Gulf
Sub-brand
Castrol
Shell
Mobil
Veedol
Servo
Gulf
Valvoline
15W-40
CH4
15W-40 CF4
15W-40 CF4
15W-40
CH4
15W-40
CH4
15W-40 CF4
20W-40
CNG
15W-40 CF4
15W-40 CF4
15W-40 CF4
RX super max
Packsiz
e
3
MRP
MOP
750
RX super
Rimula R2
Helix H5
3
3
3
720
760
Delvac
680
All fleet
3
3
3
8%
700
3
1
Pride
Margin
650
200
11%
11%
640
650
650
16
MAK
BP Vanellus
15W-40
20W-40
640
220
4.3.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.
4.3.2.1Mechanics recommendation
With initially we asked mechanics what all his top 2 recommendations for
consumers when it comes to lubricant brands. Castrol is present in 13
mechanics recommendations list.
13
5
2
Castrol
Servo
Shell
Gulf
13 Mechanics
Areas covered
Common Grade
Recommended brands
Pushed Brands
Servo
Factors for
recommendation
Brand perception
Quality
Castrol
17
rating
Product performance
Castrol
Price
Valvoline
Valvoline
Packaging
Shell
Promotion
Castrol
4.3.3 Consumers
A sample of 20 SCV & van owners are surveyed for this. Sample includes a
mix of brands such as Tata, Piaggio, Ashok Leyland.
4.3.3.1Observation:
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.
Popular Brands
Castrol
Brand perception
rating
Performance
Castrol
18
12
11
10
8
6
6
4
2
0
Castrol
Shell
Mobil
Servo
Gulf
MAK
Other*
Areas covered
Popular Brands
Recommended Brands
Castrol, Shell
across brands
Brand Ratings
In-shop branding
Castrol
Packaging
Castrol
Service delivery
Shell
Sub-brand
Castrol
Shell
Veedol
Servo
Gulf
MAK
0W-40 /5W-40
5W-40
15W-40
15W-40
20W-50
5W-40
15W-40
20W-50
15W-40
20W-50
15W-40
15W-40
20W-50
Edge
Magnetic
Magnetic Diesel
GTX diesel
GTX
Helix ultra
Helix H5
Helix H3
Packsiz
e
4
3.5
3.5
3.5
3.5
3.5
3.5
3
3
3
3.5
3.5
3
MRP
MOP
2900
1500
1550
1250
1000
2500
1350
800
750
500
1150
1300
630
Margin
8%
8-10%
11%
4.4.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.
20
4.4.2.1Mechanics recommendation
With initially we asked mechanics what all his top 2 recommendations for
consumers when it comes to lubricant brands. Castrol is present in 10
mechanics recommendations list. Closely followed by Shell Helix.
nds am ong TOP 2 recom m endation by PCMO m echanics (Sam ple size 13
12
10
10
8
8
6
2
0
Castrol
Shell
Gulf
Servo
13 Mechanics
Areas covered
Common Grade
Recommended brands
Castrol, Shell
Pushed Brands
Servo
Factors for
recommendation
Brand perception
rating
Quality
Castrol
Product performance
Castrol
Price
Valvoline
Valvoline
Packaging
Shell
21
Promotion
Castrol
4.4.3 Consumers
A sample of 20 car owners are surveyed for this. Sample includes a mix of
brands such as Tata, Hyundai, Maruthi Suzuki, Ford etc.
4.4.3.1Observation:
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.
Popular Brands
Castrol, Shell
Brand perception
rating
Performance
Castrol
4.5 TRACTORS
4.5.1 Retailers
Castrol, Servo are commonly used brand by surveyed retailers throughout
Trichy. Genuine oils mostly used wherever OEM recommends it.
4.5.1.1Brand Presence
Castrol present in all 12 retail shops surveyed. This is because Castrol CRB
became a common brand for tractors asked specifically by consumers
Servo takes the second in shelf space of retailers because of the demand
from both consumers and mechanics. Other* here means all the OEM
genuine oils for tractors.
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12
10
10
6
4
Elf/Total
Valvoline
4
2
0
Castrol
Servo
Other*
Veedol
Shell
Gulf
MAK
Areas covered
Popular Brands
Recommended Brands
Castrol, Servo
Brand Ratings
In-shop branding
Servo
Packaging
Servo
Service delivery
Castrol
23
Sub-brand
Castrol
Shell
Veedol
Servo
Total
Gulf
MAK
BP
Vanellus
15W-40
15W-40 CF4
15W-40 CF4
15W-40 CF4
15W-40 CF4
15W-40 CF4
15W-40 CF4
15W-40
15W-40
Multi
CRB Plus
Rimula
Super HDB
Ultra
Packsiz
e
7.5
7.5
7.5
7.5
7.5
7.5
10
7.5
7.5
MRP
MOP
2500
2300
1900
1800
1500
1700
Margin
8-10%
3200
1350
1700
4.5.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.
4.5.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Tractor mechanics work alone
and mostly in rural areas. Still, Castrol is present in 10 mechanics
recommendations list. Wherever OEM oils are available, mechanics
recommend the same.
24
10
8
8
6
6
4
2
0
Castrol
Shell
Servo
Veedol
Gulf
Others*
13 Mechanics
Areas covered
Common Grade
Recommended brands
Pushed Brands
Servo
Factors for
recommendation
Brand perception
rating
Quality
Castrol
Product performance
Castrol
Price
Valvoline
Valvoline
Packaging
Shell
Promotion
Castrol
4.5.3 Consumers
A sample of 20 tractor owners are surveyed for this. Sample includes a mix of
brands such as M&M, John deere, TAFE, Sonalika, Escorts etc.
25
4.5.3.1Observation:
A decision on changing lubricants is calculated by both in terms of usage
hours and certain period of time.
Popular Brands
Castrol
Brand perception
rating
Performance
Castrol
Market is flooded with cheap oils, both Used oils & locally manufactured oils.
Prices of used oil goes as low as Rs. 80 per ltr.
Most retailers perception towards various engine oil brands are subjective in
nature and they find no particular major differences in performance between
various oil brands. They just cater the needs of consumers price with the
brand at that price level
26
Urban retailers had number of brands in display at their stores. Stand out in
this is the Motul which is the most preferred by the >200cc bike owners who
takes a special care on their bikes. Example Royal enfield owners. Price of
Motul is as much as 3 times of other brands, but still it was maintained by
almost all the urban retailers. Rural areas generally has atleast 3 common
brands used by the area mechanics. Common brands in order- Castrol, Gulf,
Shell, AC delco, Valvoline, Servo, MAK and genuine oils
Selling oil barrels directly to the mechanics being a major threat as perceived
by retailers followed by duplicate oils in market.
2-wheeler mechanics prefer their customers to buy oils for their vehicles. But
wherever required they would like to go with Castrol, Shell & Gulf oil in 20W40 grade. Reason being that they prefer topline oils to make the customer
come to their shops again.
Some mechanics have a direct dealing with distributers to buy specific brands
in barrel of 50ltr. By doing so, they get a high margin per liter, but issues
being in the payment side.
Consumers in this market are generally well informed when it comes to
engine oils. They are not price sensitive and prefer performance over cost.
Some consumers are aware of duplicate oils specially in Castrol & Servo
brands and states it as their reason for brand switch
Passenger Cars:
Retailers faces two types of unique consumers. One is the owners of cars
bought by individuals/families who always prefer the best brands. Second is
the rented car drivers who prefer low cost oils.
Common brands include Castrol, Shell, Mobil
Mechanics, wherever required uses the brand of his customers choice. If he
needs to give a suggestion in this, he usually prefers Castrol over others 8/10
times. Other brand suggestions include Shell, Mobil, Gulf, Veedol, Servo, MAK.
Two of the surveyed mechanics used Shell as their only preferred brand out of
their own experiences.
Consumers in this segment also are well informed about the oil used in their
cars. They do not take blind suggestions from Mechanics. They would like to
research on their own before choosing a suitable brand for their cars.
Tractors:
There are only 3 tractor specific retail oil shop in the city. This information is
gathered from mechanics. But still other HCV/SCV retailers also sold diesel
grade oil which can be used for tractors. Other retailers sell only specific
brands at low quantity.
Survey on the 3 retail shop showed few insights about Geniune OEM oils in
the market. TAFE sold their own engine oils. They sold a large quantity of
Castrol CRB, CRB+. Customers ask for CRB specifically when it comes to
tractor oil. Gulfs XHD supreme also tend to sell good. Veedol is commonly
used for Harvesting vehicle in this market.
27
UTTOs are also a common affair in tractor market which is mostly dominated
by OEM recommendations. Customers only prefer what recommendations
given by manufacturers for UTTO.
Mechanics are scattered across rural markets with most of them does not
have a proper workshop but travel to tractor location with their equipments
to service or repair. They commonly suggest for Castrol CRB for tractors. But
if his customers has his own choice, mechanics do not interfere with that.
Consumers of aged tractors preferred Castrol CRB and Gulf as their preferred
brand. New tractor owners go with OEM suggestions and their genuine oils.
HCV/MCV:
Survey in this segments retail shops show that most of the customers are
price sensitive. Many prefer oils as per the cash in hand. So the retailers
provide oils at all price point from local oils to affordable ones (Servo, MAK) to
recommended, slightly costly oils (Gulf, Castrol)
Common brands include- Gulf, Servo, MAK, Castrol, Valvoline
Mechanics market is concentrated in two areas, EB Road and Tiruverumbur. In
both the places, Gulf oil is commonly used for all types of vehicles. But the
option is left to owners/drivers wherever required because of the cost
involved in buying oil in large quantity (10/15 ltrs).
Consumers are mostly drivers of private players. They choose low cost oils for
their vehicles. Ashok Leyland owners go by OEM recommendation by using
Gulf. Tatas mostly go for Castrol & Shell.
SCV:
Retailers observed around 70% of their customers are owner cum drivers. So
they preferred only OEM recommendation or quality & performance when
choosing engine oil.
Most common brands are-Castrol minitruck, Servo, Gulf, Shell Rimula, Gulf,
Valvoline
Mechanics recommend Castrol or shell for Tata models like ace, winger
because of OEM recommendation, Gulf for Leyland SCVs. Some of the
mechanics choose their brand as per the coupon values they get.
Consumers are not informed about the use of oil brands. They either use the
OEM recommendation or mechanics/retailers recommendations. They are not
loyal to any brands.
5 PONDICHERRY (UT)
Located in the Bay of Bengal coastal line of southern India, Puducherry, a former
French colony, is well connected with Chennai. Since it is an Union territory, there
are various benefits that the government and its people get as a part of it. Major
things include a reduced cost of living compared to its neighbor state Tamil Nadu
28
due to tax benefits. Puducherry is a hub of tourists from all over southern India. It is
also an agriculture hub for nearby villages. It has well known medical college JIPMER
and auroville ashram. Two wheeler market is driven by rented vehicles and
considerable local population. HCV, MCV markets also of good numbers. Since
heavy vehicles are not allowed into French, Tamil town of Puducherry, SCVs are very
common sight within city limits. Nearby Ginjee, Villupuram areas are hubs for
tractors sales and services.
12
11
10
8
6
H
er
o
ul
M
ot
l
do
Ve
e
M
AK
rv
o
Se
el
l
Sh
M
ob
il
H
P
14
5.1.1.2Summary of Analysis
Surveys were conducted between 24th April to 8rd May 2016.
29
Areas covered
Popular Brands
Recommended Brands
Mechanics recommendations,
Great performance
Brand Ratings
In-shop branding
Castrol
Packaging
Shell
Service delivery
AC Delco
Sub-brand
Castrol
Shell
Activ go
20W-40
20W-50
10W-30
10W-40
20W-40
Power1
20W-40
Advance AX5
Activ scooter
Packsiz
e
0.9
1
1
0.8
MRP
225
245
325
MOP
300
325
Margin
8%
8-10%
245
780
Advance AX3
Premium
1
0.9
0.9
1
0.9
278
259
288
355
312
300
10%
30
20W-50
Mobil
Veedol
Servo
Gulf
Valvoline
MAK
10W-30
10W-40
15W-40
15W-50
20W-40
20W-50
10W-30
10W-40
20W-40
20W-50
10W-30
10W-40
20W-40
20W-50
10W-30
20W-40
Premium
Advance AX5
Advance Ultra
1
0.9
1
314
288
399
Super
Super
Super 4T
Mobil1
Extra 4T
1
1
0.9
1
1
1
295
321
306
326
322
0.8
1
Pride 4t
20W-40
20W-50
10W-30
20W-40
20W-50
10W-30
20W-40
20W-50
10W-30
Pride
Champ 4T
4T Premium
1
0.9
1
0.9
1
0.9
1/0.9
1
0.8
232
213
329
257
268
260
280
380
300
270
380
10%
10%
10%
280
380
255
380
250
11%
11%
11%
11%
11%
280
250
12-15%
12%
300/280
380
270
260
285
300
5.1.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.
5.1.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Castrol is present in all
mechanics recommendations list.
31
13
12
10
7
2
0
Castrol
Servo
Gulf
Shell
Mobil
Valvoline
Veedol
MAK
Elf/Total
5.1.2.2Summary of Analysis
13 Mechanics
Areas covered
Common Grade
20W-40 (78.6%)
Recommended brands
Pushed Brands
Mobil
Factors for
recommendation
Brand perception
rating
Quality
Castrol
Product performance
Castrol
Price
Mobil
Mobil
32
Packaging
Shell
Promotion
Mobil
5.1.3 Consumers
A sample of 20 two wheeler owners are surveyed for this. Sample includes a
mix of bikes below 150cc, above 150cc and scooters.
5.1.3.1Observations
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.
5.1.3.2Summary of Analysis
Popular Brands
Mobil
Brand perception
rating
Performance
Castrol
Gulf
Mechanics choice
Shell, Gulf
Price
Gulf
Advertisement
Castrol
5.2 HEAVY/MEDIUM
DUTY
COMMERCIAL VEHICLES
5.2.1 Retailers
Gulf, Servo, Veedol are commonly used brand by surveyed retailers
throughout Pondy. Other common brands include Castrol, Mobil and MAK.
HMCV market is also flooded with used oils.
33
5.2.1.1Brand Presence
Servo present in 11 out of 12 retail shops surveyed. This is because Servo is
a well moving brand among cost conscious HMCV consumers (specially
drivers).
Gulf and Veedol takes the second in shelf space of retailers because of the
demand from both consumers and mechanics.
11
10
10
10
8
4
2
2
0
Servo
Veedol
Gulf
MAK
Mobil
Castrol
Shell
Valvoline Elf/Total
HP
Areas covered
Popular Brands
Recommended Brands
Brand Ratings
In-shop branding
Servo
Packaging
Servo
Service delivery
Gulf
34
Sub-brand
Castrol
Shell
Mobil
15W-40 CI4
15W-40 CH4
20W-40 CF4
15W-40 CF4
15W-40 CF4
15W-40
Multigrade
15W-40 CF4
Turbo +
Turbo
Prima
CRB Plus
Rimula R3X
Delvac Super
1300
Delvac
15W-40 CH4
15W-40 CF4
20W-40 MG
15W-40 CF4
15W-40 CF4
15W-40 CH4
15W-40 CF4
15W-40 CF4
15W-40 CH4
15W-40 CI4
Turbo pro
HDC
Super
Pride
Premium
LE max
Superfleet
All fleet
Premium classic
Premium classic
plus
Packsiz
e
10
10
7.5
10
7.5
10
MRP
MOP
Margin
3000
2700
2000
2750
1900
2400
8%
8-10%
10
2150
10
10
10
10
10
10
10
10
10
10
2800
2400
1900
2150
2400
3200
2800
2500
2700
3000
10
2000
2040
Veedol
Servo
Gulf
Valvoline
MAK
BP
Vanellus
15W-40
20W-40
10
11%
11%
11%
5.2.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.
5.2.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Castrol is present in 11
mechanics recommendations list. It was closely followed by Veedol and Gulf.
35
10
9
8
4
2
0
1
Castrol
Veedol
Gulf
Servo
Mobil
MAK
13 Mechanics
Areas covered
Common Grade
Recommended brands
Pushed Brands
Mobil, Servo
Factors for
recommendation
Brand perception
rating
Quality
Castrol
Product performance
Castrol
Price
Valvoline
Valvoline
Packaging
Shell
Promotion
Castrol
36
5.2.3 Consumers
A sample of 20 lorry & bus owners are surveyed for this. Sample includes a
mix of brands such as Tata, Eicher, Ashok Leyland, Bharatbenz.
5.2.3.1Observation:
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.
Popular Brands
Servo
Brand perception
rating
Performance
Castrol
37
11
10
10
10
8
4
2
2
0
Servo
Veedol
Gulf
MAK
Mobil
Castrol
Shell
Valvoline Elf/Total
HP
Areas covered
Popular Brands
Recommended Brands
Brand Ratings
In-shop branding
Servo
Packaging
Servo
Service delivery
Gulf
38
Sub-brand
Castrol
Shell
Mobil
Veedol
Servo
Gulf
Valvoline
MAK
BP Vanellus
15W-40
CH4
15W-40 CF4
15W-40 CF4
15W-40
CH4
15W-40
CH4
15W-40 CF4
20W-40
CNG
15W-40 CF4
15W-40 CF4
15W-40 CF4
15W-40
20W-40
RX super max
Packsiz
e
3
MRP
MOP
750
RX super
Rimula R2
Helix H5
3
3
3
720
760
Delvac
680
3
3
3
3
All fleet
1
8%
700
3
1
Pride
Margin
650
200
11%
11%
640
650
650
640
220
5.3.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.
5.3.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Castrol is present in 13
mechanics recommendations list.
39
12
10
8
6
2
0
Gulf
Servo
Veedol
Shell
Shell
Castrol
Others
Valvoline
13 Mechanics
Areas covered
Common Grade
Recommended brands
Pushed Brands
Servo
Factors for
recommendation
Brand perception
rating
Quality
Castrol
Product performance
Castrol
Price
Valvoline
Valvoline
Packaging
Shell
40
Promotion
Castrol
5.3.3 Consumers
A sample of 20 SCV & van owners are surveyed for this. Sample includes a
mix of brands such as Tata, Piaggio, Ashok Leyland.
5.3.3.1Observation:
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.
Popular Brands
Servo
Brand perception
rating
Performance
Castrol
41
12
11
10
8
6
6
4
2
0
Castrol
Shell
Mobil
Servo
Veedol
ENEOS
Elf/Total Valvoline
MAK
Other*
Areas covered
Across city
Popular Brands
Recommended Brands
Castrol, Shell
Brand Ratings
In-shop branding
Mobil
Packaging
Servo
Service delivery
Gulf
42
Sub-brand
Castrol
Shell
Veedol
Servo
Gulf
MAK
0W-40 /5W-40
5W-40
15W-40
15W-40
20W-50
5W-40
15W-40
20W-50
15W-40
20W-50
15W-40
15W-40
20W-50
Edge
Magnetic
Magnetic Diesel
GTX diesel
GTX
Helix ultra
Helix H5
Helix H3
Packsiz
e
4
3.5
3.5
3.5
3.5
3.5
3.5
3
3
3
3.5
3.5
3
MRP
MOP
2900
1500
1550
1250
1000
2500
1350
800
750
500
1150
1300
630
Margin
8%
8-10%
11%
5.4.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.
5.4.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Castrol is present in al
mechanics recommendations list. Closely followed by Shell Helix, ENEOS.
43
13
12
10
8
7
6
4
2
2
0
Castrol
Shell
ENEOS
Gulf
Shell
Veedol
Valvoline
13 Mechanics
Areas covered
Across city
Common Grade
Recommended brands
Pushed Brands
Servo, Mobil
Factors for
recommendation
Brand perception
rating
Quality
Castrol
Product performance
Castrol
Price
Valvoline
Valvoline
Packaging
Shell
Promotion
Castrol
44
5.4.3 Consumers
A sample of 20 car owners are surveyed for this. Sample includes a mix of
brands such as Tata, Hyundai, Maruthi Suzuki, Ford etc.
5.4.3.1Observation:
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.
Around 70% over the counter oil purchase is made by owners of the
vehicle.
Of those who service through mechanics, 100% knows about the
engine oil brand used, 90% knows sub-brand name too.
Not price sensitive at all, especially family car owners, Brand,
mechanics recommendation & Performance being the factors.
ENEOS is silently getting popularity among mechanics who in turn
recommend to most consumers.
Popular Brands
Brand perception
rating
Performance
Castrol
5.5 TRACTORS
5.5.1 Retailers
Castrol, Veedol are commonly used brand by surveyed retailers. Other
common brands include Gulf, Servo, Valvoline and MAK.
5.5.1.1Brand Presence
Castrol present in all 12 retail shops surveyed. This is because Castrol CRB
became a common brand for tractors asked specifically by consumers
Veedol takes the second in shelf space of retailers because of the demand
from both consumers and mechanics. Other* here means all the OEM
genuine oils for tractors.
45
12
10
10
8
7
6
Gulf
MAK
Elf/Total
Shell
4
2
0
Castrol
Veedol
Other*
Servo
Valvoline
Areas covered
Popular Brands
Recommended Brands
Castrol, Veedol
Brand Ratings
In-shop branding
Servo
Packaging
Servo
Service delivery
Gulf
46
Sub-brand
Castrol
Shell
Veedol
Servo
Total
Gulf
MAK
BP
Vanellus
15W-40
15W-40 CF4
15W-40 CF4
15W-40 CF4
15W-40 CF4
15W-40 CF4
Multi
CRB Plus
Rimula
Super HDB
Ultra
15W-40 CF4
15W-40
15W-40
Packsiz
e
7.5
7.5
7.5
7.5
7.5
7.5
MRP
MOP
Margin
2500
2300
1900
1800
1500
1700
10
7.5
8-10%
3200
1350
1700
7.5
5.5.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.
5.5.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Tractor mechanics work alone
and mostly in rural areas. Still, Castrol is present in 10 mechanics
recommendations list. Wherever OEM oils are available, mechanics
recommend the same.
10
8
8
6
6
4
2
0
Castrol
Shell
Servo
Veedol
Gulf
Others*
47
13 Mechanics
Areas covered
Common Grade
Recommended brands
Pushed Brands
Servo
Factors for
recommendation
Brand perception
rating
Quality
Castrol
Product performance
Castrol
Price
Servo
Veedol
Packaging
Veedol
Promotion
Castrol
5.5.3 Consumers
A sample of 20 tractor owners are surveyed for this. Sample includes a mix of
brands such as M&M, John deere, TAFE, Sonalika, Escorts etc.
5.5.3.1Observation:
A decision on changing lubricants is calculated by both in terms of usage
hours and certain period of time.
Popular Brands
Castrol, Veedol
Brand perception
rating
Performance
Castrol
Most retailers perception towards various engine oil brands are subjective in
nature and they find no particular major differences in performance between
various oil brands. They just cater the needs of consumers price with the
brand at that price level
Selling oil barrels directly to the mechanics being a major threat as perceived
by retailers followed by duplicate oils in market.
2-wheeler mechanics prefer their customers to buy oils for their vehicles. But
wherever required they would like to go with Castrol, Shell & Gulf oil in 20W40 grade. Reason being that they prefer topline oils to make the customer
come to their shops again.
Some mechanics have a direct dealing with distributers to buy specific brands
in barrel of 50ltr. By doing so, they get a high margin per liter, but issues
being in the payment side.
Consumers in this market are generally well informed when it comes to
engine oils. They are not price sensitive and prefer performance over cost.
Passenger Cars:
Retailers faces two types of unique consumers. One is the owners of cars
bought by individuals/families who always prefer the best brands. Second is
the rented car drivers who prefer low cost oils.
Mechanics, wherever required uses the brand of his customers choice. If he
needs to give a suggestion in this, he usually prefers Castrol over others 8/10
49
times. Other brand suggestions include Shell, Mobil, Gulf, Veedol, Servo, MAK.
Two of the surveyed mechanics used Shell as their only preferred brand out of
their own experiences.
Consumers in this segment also are well informed about the oil used in their
cars. They do not take blind suggestions from Mechanics. They would like to
research on their own before choosing a suitable brand for their cars.
Tractors:
There are only 3 tractor specific retail oil shop in the city. This information is
gathered from mechanics. But still other HCV/SCV retailers also sold diesel
grade oil which can be used for tractors. Other retailers sell only specific
brands at low quantity.
Survey on the 3 retail shop showed few insights about Geniune OEM oils in
the market. TAFE sold their own engine oils. They sold a large quantity of
Castrol CRB, CRB+. Customers ask for CRB specifically when it comes to
tractor oil. Gulfs XHD supreme also tend to sell good. Veedol is commonly
used for Harvesting vehicle in this market.
UTTOs are also a common affair in tractor market which is mostly dominated
by OEM recommendations. Customers only prefer what recommendations
given by manufacturers for UTTO.
Mechanics are scattered across rural markets with most of them does not
have a proper workshop but travel to tractor location with their equipments
to service or repair. They commonly suggest for Castrol CRB for tractors. But
if his customers has his own choice, mechanics do not interfere with that.
Consumers of aged tractors preferred Castrol CRB and Gulf as their preferred
brand. New tractor owners go with OEM suggestions and their genuine oils.
HCV/MCV:
Survey in this segments retail shops show that most of the customers are
price sensitive. Many prefer oils as per the cash in hand. So the retailers
provide oils at all price point from local oils to affordable ones (Servo, MAK) to
recommended, slightly costly oils (Gulf, Castrol)
Consumers are mostly drivers of private players. They choose low cost oils for
their vehicles. Ashok Leyland owners go by OEM recommendation by using
Gulf. Tatas mostly go for Castrol & Shell.
SCV:
Retailers observed around 70% of their customers are owner cum drivers. So
they preferred only OEM recommendation or quality & performance when
choosing engine oil.
Mechanics recommend Castrol or shell for Tata models like ace, winger
because of OEM recommendation, Gulf for Leyland SCVs. Some of the
mechanics choose their brand as per the coupon values they get.
50
Consumers are not informed about the use of oil brands. They either use the
OEM recommendation or mechanics/retailers recommendations. They are not
loyal to any brands.
51
12
10
10
8
H
P
H
er
o
al
ub
e
Ya
m
El
f/T
ot
al
M
ob
il
O
th
er
*
Sh
el
l
Ca
st
ro
l
6.1.1.2Summary of Analysis
Areas covered
Popular Brands
Recommended Brands
Mechanics recommendations,
Great performance
Brand Ratings
In-shop branding
Castrol
Packaging
Shell
Service delivery
Shell
52
Sub-brand
Castrol
Shell
Activ go
20W-40
20W-50
10W-30
10W-40
20W-40
Power1
20W-40
Advance AX5
Activ scooter
Packsiz
e
0.9
1
1
0.8
MRP
225
245
325
MOP
300
325
Margin
8%
8-10%
245
780
Advance AX3
Premium
1
0.9
0.9
1
0.9
278
259
288
355
312
Premium
Advance AX5
Advance Ultra
1
0.9
1
314
288
399
Super
Super
Super 4T
Mobil1
Extra 4T
1
1
0.9
1
1
1
295
321
306
326
322
300
10%
300
270
380
10%
10%
10%
280
380
255
380
250
11%
11%
11%
11%
11%
280
250
12-15%
12%
20W-50
Mobil
Veedol
Servo
Gulf
10W-30
10W-40
15W-40
15W-50
20W-40
20W-50
10W-30
10W-40
20W-40
20W-50
10W-30
10W-40
20W-40
20W-50
10W-30
20W-40
0.8
1
Pride 4t
20W-40
20W-50
10W-30
Pride
1
0.9
1
0.9
1
0.9
232
213
329
257
268
260
53
Valvoline
MAK
20W-40
20W-50
10W-30
20W-40
20W-50
10W-30
Champ 4T
4T Premium
1/0.9
1
0.8
280
380
300/280
380
270
260
285
300
6.1.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.
6.1.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Castrol is present in all
mechanics recommendations list.
13
11
8
5
2
Castrol
Servo
Gulf
Shell
MAK
Valvoline
Elf/Total
6.1.2.2Summary of Analysis
13 Mechanics
Areas covered
Common Grade
20W-40 (85.6%)
54
Recommended brands
Pushed Brands
MAK, Servo
Factors for
recommendation
Brand perception
rating
Quality
Castrol
Product performance
Castrol
Price
Valvoline
Valvoline
Packaging
Shell
Promotion
Castrol
6.1.3 Consumers
A sample of 20 two wheeler owners are surveyed for this. Sample includes a
mix of bikes below 150cc, above 150cc and scooters.
6.1.3.1Observations
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.
6.1.3.2Summary of Analysis
Popular Brands
Castrol, Shell
Brand perception
rating
Performance
Castrol
Gulf
55
6.2 HEAVY/MEDIUM
Mechanics choice
Shell, Gulf
Price
Gulf
Advertisement
Castrol
DUTY
COMMERCIAL VEHICLES
6.2.1 Retailers
Gulf, Servo are commonly used brand by surveyed retailers throughout Trichy.
Other common brands include Castrol, Servo and MAK. HMCV market is also
flooded with used oils.
6.2.1.1Brand Presence
Gulf present in 12 out of 12 retail shops surveyed. This is because Gulf is a
well moving brand among cost conscious HMCV consumers (specially
drivers) in this locality.
Servo and Castrol takes the second in shelf space of retailers because of the
demand from both consumers and mechanics. Low cost used oils are also
commonly bought by drivers of old/rented vehicles.
12
10
10
10
8
7
6
Shell
Total
2
0
Gulf
Castrol
Servo
MAK
Shell
Valvoline
Veedol
56
Areas covered
Popular Brands
Recommended Brands
Gulf
Brand Ratings
In-shop branding
Servo
Packaging
Servo
Service delivery
Gulf
Sub-brand
Castrol
Shell
Mobil
15W-40 CI4
15W-40 CH4
20W-40 CF4
15W-40 CF4
15W-40 CF4
15W-40
Multigrade
15W-40 CF4
Turbo +
Turbo
Prima
CRB Plus
Rimula R3X
Delvac Super
1300
Delvac
15W-40 CH4
15W-40 CF4
20W-40 MG
15W-40 CF4
15W-40 CF4
15W-40 CH4
Turbo pro
HDC
Super
Pride
Premium
LE max
Packsiz
e
10
10
7.5
10
7.5
10
MRP
MOP
Margin
3000
2700
2000
2750
1900
2400
8%
8-10%
10
2150
10
10
10
10
10
10
2800
2400
1900
2150
2400
3200
Veedol
Servo
Gulf
11%
11%
11%
57
Valvoline
MAK
BP
Vanellus
15W-40 CF4
15W-40 CF4
15W-40 CH4
15W-40 CI4
Superfleet
All fleet
Premium classic
Premium classic
plus
15W-40
20W-40
10
10
10
10
2800
2500
2700
3000
10
2000
2040
10
6.2.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.
6.2.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Gulf is present in 12
mechanics recommendations list. They even recommend it for Non-Ashok
Leyland vehicles.
ands am ong TOP 3 recom m endation by HMCV m echanics (Sam ple size 1
14
12
12
10
10
6
4
2
0
Gulf
Servo
Castrol
Shell
MAK
Valvoline
Veedol
13 Mechanics
Areas covered
Common Grade
Recommended brands
Pushed Brands
Servo
Factors for
recommendation
Brand perception
rating
Quality
Castrol
Product performance
Castrol
Price
Valvoline
Valvoline
Packaging
Shell
Promotion
Castrol
6.2.3 Consumers
A sample of 20 lorry & bus owners are surveyed for this. Sample includes a
mix of brands such as Tata, Eicher, Ashok Leyland, Bharatbenz.
6.2.3.1Observation:
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.
Popular Brands
Gulf
59
Brand perception
rating
Performance
Castrol
11
10
10
8
6
4
4
2
2
0
Servo
Castrol
Gulf
MAK
Shell
Mobil
HP
60
Areas covered
4 road, Hasampet
Popular Brands
Recommended Brands
Brand Ratings
In-shop branding
Servo
Packaging
Servo
Service delivery
Gulf
Sub-brand
Castrol
Shell
Mobil
Veedol
Servo
Gulf
Valvoline
MAK
BP Vanellus
15W-40
CH4
15W-40 CF4
15W-40 CF4
15W-40
CH4
15W-40
CH4
15W-40 CF4
20W-40
CNG
15W-40 CF4
15W-40 CF4
15W-40 CF4
15W-40
20W-40
RX super max
Packsiz
e
3
MRP
MOP
750
RX super
Rimula R2
Helix H5
3
3
3
720
760
Delvac
680
3
3
3
3
All fleet
1
8%
700
3
1
Pride
Margin
650
200
11%
11%
640
650
650
640
220
61
6.3.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.
6.3.2.1Mechanics recommendation
With initially we asked mechanics what all his top 2 recommendations for
consumers when it comes to lubricant brands. Castrol is present in 13
mechanics recommendations list.
13
5
2
Castrol
Servo
Shell
Gulf
13 Mechanics
Areas covered
Common Grade
Recommended brands
Pushed Brands
Servo
Factors for
recommendation
Brand perception
rating
Quality
Castrol
Product performance
Castrol
Price
Valvoline
Valvoline
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Packaging
Shell
Promotion
Castrol
6.3.3 Consumers
A sample of 20 SCV & van owners are surveyed for this. Sample includes a
mix of brands such as Tata, Piaggio, Ashok Leyland.
6.3.3.1Observation:
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.
Popular Brands
Castrol
Brand perception
rating
Performance
Castrol
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12
11
10
8
6
6
4
2
0
Castrol
Shell
Mobil
Servo
Gulf
MAK
Other*
Areas covered
Popular Brands
Recommended Brands
Castrol, Shell
Brand Ratings
In-shop branding
Servo
Packaging
Servo
Service delivery
Gulf
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Sub-brand
Castrol
Shell
Veedol
Servo
Gulf
MAK
0W-40 /5W-40
5W-40
15W-40
15W-40
20W-50
5W-40
15W-40
20W-50
15W-40
20W-50
15W-40
15W-40
20W-50
Edge
Magnetic
Magnetic Diesel
GTX diesel
GTX
Helix ultra
Helix H5
Helix H3
Packsiz
e
4
3.5
3.5
3.5
3.5
3.5
3.5
3
3
3
3.5
3.5
3
MRP
MOP
2900
1500
1550
1250
1000
2500
1350
800
750
500
1150
1300
630
Margin
8%
8-10%
11%
6.4.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.
6.4.2.1Mechanics recommendation
With initially we asked mechanics what all his top 2 recommendations for
consumers when it comes to lubricant brands. Castrol is present in 10
mechanics recommendations list. Closely followed by Shell Helix.
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10
8
8
6
2
0
Castrol
Shell
Gulf
Servo
13 Mechanics
Areas covered
Common Grade
Recommended brands
Castrol, Shell
Pushed Brands
Servo
Factors for
recommendation
Brand perception
rating
Quality
Castrol
Product performance
Castrol
Price
Valvoline
Valvoline
Packaging
Shell
Promotion
Castrol
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6.4.3 Consumers
A sample of 20 car owners are surveyed for this. Sample includes a mix of
brands such as Tata, Hyundai, Maruthi Suzuki, Ford etc.
6.4.3.1Observation:
A decision on changing lubricants is calculated by both in terms of distance
travelled and certain period of time.
Popular Brands
Castrol, Shell
Brand perception
rating
Performance
Castrol
6.5 TRACTORS
6.5.1 Retailers
Gulf, Servo are commonly used brand by surveyed retailers throughout
Salem. Other common brands include Castrol, Valvoline, Genuine oils and
MAK.
6.5.1.1Brand Presence
Castrol present in all 12 retail shops surveyed. This is because Castrol CRB
became a common brand for tractors asked specifically by consumers
Servo takes the second in shelf space of retailers because of the demand
from both consumers and mechanics. Other* here means all the OEM
genuine oils for tractors.
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12
10
10
6
4
Elf/Total
Valvoline
4
2
0
Castrol
Servo
Other*
Veedol
Shell
Gulf
MAK
Areas covered
5 road
Popular Brands
Recommended Brands
Castrol, Servo
Brand Ratings
In-shop branding
Servo
Packaging
Servo
Service delivery
Gulf
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Sub-brand
Castrol
Shell
Veedol
Servo
Total
Gulf
MAK
BP
Vanellus
15W-40
15W-40 CF4
15W-40 CF4
15W-40 CF4
15W-40 CF4
15W-40 CF4
15W-40 CF4
15W-40
15W-40
Multi
CRB Plus
Rimula
Super HDB
Ultra
Packsiz
e
7.5
7.5
7.5
7.5
7.5
7.5
10
7.5
7.5
MRP
MOP
2500
2300
1900
1800
1500
1700
Margin
8-10%
3200
1350
1700
6.5.2 Mechanics
As the most important stakeholder of lubricants industry, mechanics has the
power to influence a consumer in brand switching and brand retention
factors.
6.5.2.1Mechanics recommendation
With initially we asked mechanics what all his top 3 recommendations for
consumers when it comes to lubricant brands. Tractor mechanics work alone
and mostly in rural areas. Still, Castrol is present in 10 mechanics
recommendations list. Wherever OEM oils are available, mechanics
recommend the same.
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10
8
8
6
6
4
2
0
Castrol
Shell
Servo
Veedol
Gulf
Others*
13 Mechanics
Areas covered
Common Grade
Recommended brands
Pushed Brands
Servo
Factors for
recommendation
Brand perception
rating
Quality
Castrol
Product performance
Castrol
Price
Valvoline
Valvoline
Packaging
Shell
Promotion
Castrol
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6.5.3 Consumers
A sample of 20 tractor owners are surveyed for this. Sample includes a mix of
brands such as M&M, John deere, TAFE, Sonalika, Escorts etc.
6.5.3.1Observation:
A decision on changing lubricants is calculated by both in terms of usage
hours and certain period of time.
Popular Brands
Castrol
Brand perception
rating
Performance
Castrol
Most retailers perception towards various engine oil brands are subjective in
nature and they find no particular major differences in performance between
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various oil brands. They just cater the needs of consumers price with the
brand at that price level
Urban retailers had number of brands in display at their stores. Stand out in
this is the Motul which is the most preferred by the >200cc bike owners who
takes a special care on their bikes. Example Royal enfield owners. Price of
Motul is as much as 3 times of other brands, but still it was maintained by
almost all the urban retailers. Rural areas generally has atleast 3 common
brands used by the area mechanics.
Selling oil barrels directly to the mechanics being a major threat as perceived
by retailers followed by duplicate oils in market.
2-wheeler mechanics prefer their customers to buy oils for their vehicles. But
wherever required they would like to go with Castrol, Shell & Gulf oil in 20W40 grade. Reason being that they prefer topline oils to make the customer
come to their shops again.
Some mechanics have a direct dealing with distributers to buy specific brands
in barrel of 50ltr. By doing so, they get a high margin per liter, but issues
being in the payment side.
Consumers in this market are generally well informed when it comes to
engine oils. They are not price sensitive and prefer performance over cost.
Passenger Cars:
Retailers faces two types of unique consumers. One is the owners of cars
bought by individuals/families who always prefer the best brands. Second is
the rented car drivers who prefer low cost oils.
Mechanics, wherever required uses the brand of his customers choice. If he
needs to give a suggestion in this, he usually prefers Castrol over others 8/10
times. Other brand suggestions include Shell, Mobil, Gulf, Veedol, Servo, MAK.
Two of the surveyed mechanics used Shell as their only preferred brand out of
their own experiences.
Consumers in this segment also are well informed about the oil used in their
cars. They do not take blind suggestions from Mechanics. They would like to
research on their own before choosing a suitable brand for their cars.
Tractors:
There are only 3 tractor specific retail oil shop in the city. This information is
gathered from mechanics. But still other HCV/SCV retailers also sold diesel
grade oil which can be used for tractors. Other retailers sell only specific
brands at low quantity.
Survey on the 3 retail shop showed few insights about Geniune OEM oils in
the market. TAFE sold their own engine oils. They sold a large quantity of
Castrol CRB, CRB+. Customers ask for CRB specifically when it comes to
tractor oil. Gulfs XHD supreme also tend to sell good. Veedol is commonly
used for Harvesting vehicle in this market.
UTTOs are also a common affair in tractor market which is mostly dominated
by OEM recommendations. Customers only prefer what recommendations
given by manufacturers for UTTO.
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Mechanics are scattered across rural markets with most of them does not
have a proper workshop but travel to tractor location with their equipments
to service or repair. They commonly suggest for Castrol CRB for tractors. But
if his customers has his own choice, mechanics do not interfere with that.
Consumers of aged tractors preferred Castrol CRB and Gulf as their preferred
brand. New tractor owners go with OEM suggestions and their genuine oils.
HCV/MCV:
Survey in this segments retail shops show that most of the customers are
price sensitive. Many prefer oils as per the cash in hand. So the retailers
provide oils at all price point from local oils to affordable ones (Servo, MAK) to
recommended, slightly costly oils (Gulf, Castrol)
Mechanics market is concentrated in two areas, Namakkal road and
Bangalore bypass road. In both the places, Gulf oil is commonly used for all
types of vehicles. But the option is left to owners/drivers wherever required
because of the cost involved in buying oil in large quantity (10/15 ltrs).
Consumers are mostly drivers of private players. They choose low cost oils for
their vehicles. Ashok Leyland owners go by OEM recommendation by using
Gulf. Tatas mostly go for Castrol & Shell.
SCV:
Retailers observed around 70% of their customers are owner cum drivers. So
they preferred only OEM recommendation or quality & performance when
choosing engine oil.
Mechanics recommend Castrol or shell for Tata models like ace, winger
because of OEM recommendation, Gulf for Leyland SCVs. Some of the
mechanics choose their brand as per the coupon values they get.
Consumers are not informed about the use of oil brands. They either use the
OEM recommendation or mechanics/retailers recommendations. They are not
loyal to any brands.
7 RECOMMENDATIONS
Trichy:
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Two wheeler flyers are issued to retailers by Shell, Servo, Enis brands which
include all the major two wheeler brands and the type of oil to be used for
that particular brand. This can be followed for the Veedol takeoff brand.
Two wheeler mechanics showed increased loyalty towards Gulf without even
any specific incentives attached to the brand. These mechanics can be
targeted with exclusive offer to change their brand to veedol.
HMCV/SCV/PCMO mechanics and consumers are very much abundant in EB
road area. If there is any targeted campaign in these areas will certainly
increase brand awareness among both mechanics & consumers.
For tractors, people blindly follow whatever the OEM says in many instances.
So reaching the consumers through OEM recommendations is the only way to
tap this market here.
Puducherry
-
Shops of two wheeler rental services can be targeted to sell oil in bulk.
Mobil follows a differential pricing among retailers. More than 30% of the
retailers are really tired of these kind of practices. Approaching them would
give a sufficient shelf space and an alternate to Mobil in those areas.
A retailer was giving away oil filter for free in a SCV segment and it induced
an increase in sales. Similar, freebies can be offered for SCV, HMCV and
tractor oils.
Sub brand specific ad campaigns can be done experimentally to increase
brand awareness. Example would be recent MAK NXT specific campaigns.
Shells rimula campaign.
Local TVs are very much common in Puducherry. A low cost ad campaign
could help.
Salem:
-
The recommendations that are given for Trichy, are applicable here too. Areas
for targeted campaigns include 5 road, 4 road, Old bus stand.
Since the HMCV, SCV markets are huge in this area and most of the drivers
are in enroute to their destinations, a non-cash freebie of sorts unrelated to
oil industry, related to travel would induce the urge to buy veedol among
consumers. Because the facilities for these drivers are so bad and anything
that helps them improving it, would be appreciated by them
For PCMO segment, a strong sub brand name to counter Castrols magnetic
and Shells helix is required.
General:
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Thank You!
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