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BRAND EQUITY STUDY

Veedol Lubricants

By

Prem Prakash S
PGPM student,
Indian Institute of Management,
Tiruchirappalli

Under the guidance of


Mr. Debraj Banerjee
Senior Manager - Marketing

Trichy | Puducherry |
Salem 15, 2016
TIDE WATER OIL CO. (INDIA) LTD
Kolkata

ACKNOWLEDGEMENT

It is indeed a great pleasure and moment of immense satisfaction for me to


express my gratitude towards my project supervisor Mr. Debraj Banerjee,
Marketing Manager, Tide water oil co (I) ltd, for his constant support,
encouragement while carrying out the project work. I am very thankful to
him for his valuable guidance and attention he bestowed on me right from
the inception to the successful completion of this Endeavour.
I express my sincere gratitude to Mr. Anand Gajbhiye and his team, Mr.
Kaushik Dutta and Mr. Krishna Kumar Kushwaha for their invaluable support
and assistance.
I am also thankful to all those who helped me directly or indirectly in
successful completion of the project.
I found this internship opportunity extremely valuable. Being able to interact
with various stakeholders of the industry helped me improve my knowledge
and skillsets.
I thank you all once again for helping me explore my career path.

Prem Prakash S

1 INTRODUCTION

2 OBJECTIVE

3 METHODOLOGY

3.1 SURVEY METHOD


3.2 SURVEY LOCATIONS
3.3 SAMPLE SIZE

4
4
5

4 TRICHY, TAMIL NADU

4.1 TWO WHEELERS


4.1.1 RETAILERS
4.1.2 MECHANICS
4.1.3 CONSUMERS
4.2 HEAVY/MEDIUM DUTY COMMERCIAL VEHICLES
4.2.1 RETAILERS
4.2.2 MECHANICS
4.2.3 CONSUMERS
4.3 SMALL COMMERCIAL VEHICLES
4.3.1 RETAILERS
4.3.2 MECHANICS
4.3.3 CONSUMERS
4.4 PASSENGER CARS
4.4.1 RETAILERS
4.4.2 MECHANICS
4.4.3 CONSUMERS
4.5 TRACTORS
4.5.1 RETAILERS
4.5.2 MECHANICS
4.5.3 CONSUMERS
4.6 QUALITATIVE ANALYSIS TRICHY

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5
8
9
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9
11
12
13
13
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20
21
22

5 PONDICHERRY (UT)

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5.1 TWO WHEELERS


5.1.1 RETAILERS
5.1.2 MECHANICS
5.1.3 CONSUMERS
5.2 HEAVY/MEDIUM DUTY COMMERCIAL VEHICLES
5.2.1 RETAILERS

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24
26
27
28
28
2

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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39
40

6 SALEM, TAMIL NADU

42

6.1 TWO WHEELERS


6.1.1 RETAILERS
6.1.2 MECHANICS
6.1.3 CONSUMERS
6.2 HEAVY/MEDIUM DUTY COMMERCIAL VEHICLES
6.2.1 RETAILERS
6.2.2 MECHANICS
6.2.3 CONSUMERS
6.3 SMALL COMMERCIAL VEHICLES
6.3.1 RETAILERS
6.3.2 MECHANICS
6.3.3 CONSUMERS
6.4 PASSENGER CARS
6.4.1 RETAILERS
6.4.2 MECHANICS
6.4.3 CONSUMERS
6.5 TRACTORS
6.5.1 RETAILERS
6.5.2 MECHANICS
6.5.3 CONSUMERS
6.6 QUALITATIVE ANALYSIS SALEM

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55
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57
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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.

4 TRICHY, TAMIL NADU


Locate in the center of Tamil Nadu, Trichy is well connected with all the cities and
acts as a hub for many highways. With industries such as BHEL, Rane, Trichy has a
considerable in and out traffic of HCVs & SCVs regularly. Being in Cauvery delta
area, Tractor market is also omnipresent throughout the periphery of the city. PCMO
& Two wheeler markets are among the top 5 in the state. Statistics from TN RTO
websites shows that Trichy has a 4% share of total vehicles in TN in SCV, PCMO,
Tractors & Two wheeler segments and 5% share in HCV segment.

4.1 TWO WHEELERS


4.1.1 Retailers
Castrol and Gulf are commonly stocked by surveyed retailers. Shell and
Valvoline increasing in their shelf space across retailers. Two wheeler market
is flooded with used oils. Many retailers sell used oils exclusively in their
stores.
4.1.1.1Brand Presence
Castrol present in all the retail shops surveyed. This is due to the fact that
customers are able to easily relate Castrol to engine oil. So this gives the
retailers an identity that the shop sells engine oils. So Castrol is kept at a
prominent place in all shops.
Gulf, which is very much liked by mechanics in and around Trichy (for
reasons unknown!), takes the second in shelf space of retailers because of
the demand from mechanics.
Genuine oils such as Hero, Yamalube, Bajaj & Honda also present in some of
the shops but sells little with only few unique customers
Brand presence out of 12 retail shops
8
3

2
0

H
P

H
er
o

al
ub
e

O
th
er
*

Ya
m

El
f/T
ot
al

M
ob
il

10

Sh
el
l

12

Ca
st
ro
l

14
12
10
8
6
4
2
0

4.1.1.2Summary of Analysis
Surveys were conducted between 8th April to 23rd April 2016.

Total Sample Size

12 Retailer (Multi brand, Multi-segment)

Areas covered

Cantonment (Promenade road), Tiruverumbur, Vayalur


road

Popular Brands

Castrol, Gulf, Valvoline, Shell, AC Delco, Genuine oils,


Filtered used oils
6

Recommended Brands

Castrol, Gulf, Shell

Top selling factors


across brands

Mechanics recommendations,
Great performance

Brand Ratings

In-shop branding

Castrol

Packaging

Shell

Service delivery

AC Delco

4.1.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

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

Pride 4T plus premium

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.

s am ong TOP 3 recom m endation by 2 wheeler m echanics (Sam ple size


14
12
10
8
6
4
2
0

13
11
8

5
2

Castrol

Servo

Gulf

Shell

MAK

Valvoline

Elf/Total

Viscosity grade wise market share


Others; 8%
15W-40; 5%
10W-30; 2%

20W-40; 85%

Out of 10 vehicles, with sample size


of 13 mechanics, we got 130 responses of what all the grades of oil being
used for the vehicles.
Majority of the two wheelers (84.6%) use the grade of 20W-40. 10W-30, which
is being projected as a scooter oil now-a-days gets used very ow (2%), but
awareness is increasing about this scooter segment.

4.1.2.2Summary of Analysis

Total Sample Size

13 Mechanics

Areas covered

Spread across city, no specific concentrated areas

Common Grade

20W-40 (84.6%)
9

Recommended brands

Castrol (Power1), Shell, Gulf

Pushed Brands

MAK

Factors for
recommendation

Quality, Service, Availability

Brand perception
rating

Quality

Castrol

Product performance

Castrol

Price

Valvoline

Value for money

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.

>150cc 30%, 100-150cc 40%, Scooters 30%,


90% owners prefer authorized service centers for first 3 years
Of those who service through mechanics, 90% knows about the
engine oil used, 60% buys it themselves from shop.
Not price sensitive, does not know about oil grades, Performance
being the only factor.

4.1.3.2Summary of Analysis

Total Sample Size

20 two wheeler owners

Popular Brands

MAK

Brand perception
rating

Performance

Castrol

Value for money

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.

Brand Presense (12 Retailers)


12

11

10

10

10
8

8
6

4
2

2
0

Servo

Castrol

Gulf

MAK

Valvoline Veedol

Shell

Other*

Elf/Total

HP

4.2.1.2Brief on the Visit:


Surveys were conducted between 8th April to 23rd April 2016.

Total Sample Size

12 Retailer (Multi brand, Multi-segment)


11

Areas covered

EB road, Tiruverumbur, Othakadai (Promenade road)

Popular Brands

Servo, Castrol, Gulf, Valvoline, Shell, Veedol, Filtered


used oils

Recommended Brands

Servo, Castrol, Gulf

Top selling factors


across brands

Price, Great performance, OEMs recommendations

Brand Ratings

In-shop branding

Servo

Packaging

Servo

Service delivery

Gulf

4.2.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

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

4.2.2.2Brief of the survey

Total Sample Size

13 Mechanics
13

Areas covered

EB road, Chennai bypass, Tiruverumbur

Common Grade

15W-40 CF4 (68.3%)

Recommended brands

Gulf, Servo, Castrol

Pushed Brands

Servo

Factors for
recommendation

Price, Performance, OEM recommendations

Brand perception
rating

Quality

Castrol

Product performance

Castrol

Price

Valvoline

Value for money

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.

Around 50% market is of Ashok Leyland vehicles.


70% owners (drivers of rented vehicles not included) decided on Oil
brand to use within the 1-2 years of vehicle purchase and have not
changed their brand since then.
Of those who service through mechanics, 100% knows about the
engine oil brand used, 60% knows sub-brand name too.
Very price sensitive, especially drivers of rented lorries, Price &
Performance being the only factor.
Brand change: Easily convinced by retailers pushed brand. Hard to
convince using traditional advertisements.

14

4.2.3.2Brief of the survey

Total Sample Size

20 owners and drivers

Popular Brands

Servo

Brand perception
rating

Performance

Castrol

4.3 SMALL COMMERCIAL VEHICLES


4.3.1 Retailers
Servo and Castrol are commonly used brand by surveyed retailers throughout
Trichy. Other common brands include Shell, Gulf and MAK. SCV market is also
flooded with used oils.
4.3.1.1Brand Presence
Servo present in 11 out of 12 retail shops surveyed. This is because Servo is
a well moving brand among cost conscious SCV consumers.
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.

Brand Presence (12 retailers)


12

11

10

10
8

6
4

4
2

2
0

Servo

Castrol

Gulf

MAK

Shell

Veedol Valvoline Other* Elf/Total

Mobil

HP

4.3.1.2Brief on the Visit:


Surveys were conducted between 8th April to 23rd April 2016.

15

Total Sample Size

12 Retailer (Multi brand, Multi-segment)

Areas covered

EB road, Tiruverumbur, Othakadai (Promenade road)

Popular Brands

Servo, Castrol, Gulf, Shell, MAK, Filtered used oils

Recommended Brands

Servo, Castrol, Gulf

Top selling factors


across brands

Price, Great performance, OEMs recommendations

Brand Ratings

In-shop branding

Castrol

Packaging

Servo

Service delivery

Gulf

4.3.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

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.

among TOP 2 recommendation by SCV mechanics (Sample


14
12
10
8
6
4
2
0

13

5
2

Castrol

Servo

Shell

Gulf

4.3.2.2Brief of the survey

Total Sample Size

13 Mechanics

Areas covered

EB road, Tiruverumbur, Ponmalai

Common Grade

15W-40 CF4 (80%)

Recommended brands

Castrol, Gulf, Servo

Pushed Brands

Servo

Factors for
recommendation

Price, Performance, OEM recommendations

Brand perception

Quality

Castrol
17

rating

Product performance

Castrol

Price

Valvoline

Value for money

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.

Around 80% market is of vehicles is driven by owners themselves.


60% owners (drivers of rented vehicles not included) decide on Oil
brand to use within the 1-2 years of vehicle purchase and have not
changed their brand since then.
Of those who service through mechanics, 100% knows about the
engine oil brand used, 60% knows sub-brand name too.
Moderate price sensitive, Price & Performance being the only factor.
Castrols two ranges (RX & CRB) go by the colour of the packs, people
specifically ask for white colour packs etc.

4.3.3.2Brief of the survey

Total Sample Size

20 owners and drivers

Popular Brands

Castrol

Brand perception
rating

Performance

Castrol

18

4.4 PASSENGER CARS


4.4.1 Retailers
Castrol and Shell are commonly used brand by surveyed retailers throughout
Trichy. Other common brands include Gulf, Servo, Mobil and MAK.
4.4.1.1Brand Presence
Castrol is present in 12 out of 12 retail shops surveyed, followed closely by
Shell.
Mobil and Servo 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.

Brand Presense (12 Retailers)


14
12

12

11

10

8
6

6
4

2
0

Castrol

Shell

Mobil

Servo

Gulf

MAK

Elf/Total Valvoline Veedol

Other*

4.4.1.2Brief on the Visit:


Surveys were conducted between 8th April to 23rd April 2016.

Total Sample Size

12 Retailer (Multi brand, Multi-segment)

Areas covered

Othakadai (Promenade road), Cantonment area

Popular Brands

Castrol, Shell, Mobil, Servo, Lesser known brands (AC


delco, Crizol)

Recommended Brands

Castrol, Shell

Top selling factors

Great performance, Mechanics recommendations


19

across brands
Brand Ratings

In-shop branding

Castrol

Packaging

Castrol

Service delivery

Shell

4.4.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

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

4.4.2.2Brief of the survey

Total Sample Size

13 Mechanics

Areas covered

Cantonment area, Across city

Common Grade

15W-40 CF4 (54.3%)

Recommended brands

Castrol, Shell

Pushed Brands

Servo

Factors for
recommendation

Performance, Brand, Mechanics recommendations

Brand perception
rating

Quality

Castrol

Product performance

Castrol

Price

Valvoline

Value for money

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.

Around 70% over the counter 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.
Shell helix is aggressively capturing market from Castrol

4.4.3.2Brief of the survey

Total Sample Size

20 owners and drivers

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.
22

Brand presence (12 retailers)


14
12

12
10

10

6
4

Elf/Total

Valvoline

4
2
0

Castrol

Servo

Other*

Veedol

Shell

Gulf

MAK

4.5.1.2Brief on the Visit:


Surveys were conducted between 8th April to 23rd April 2016.

Total Sample Size

12 Retailer (Multi brand, Multi-segment)

Areas covered

Othakadai (Promenade road)

Popular Brands

Servo, Castrol, Gulf, Valvoline, Veedol, Geniune oils

Recommended Brands

Castrol, Servo

Top selling factors


across brands

Great performance, OEMs recommendations

Brand Ratings

In-shop branding

Servo

Packaging

Servo

Service delivery

Castrol

23

4.5.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

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

s among TOP 3 recommendation by tractor mechanics (Sample siz


12
10

10
8

8
6

6
4

2
0

Castrol

Shell

Servo

Veedol

Gulf

Others*

4.5.2.2Brief of the survey

Total Sample Size

13 Mechanics

Areas covered

Rural areas around Trichy

Common Grade

15W-40 CF4 (100%)

Recommended brands

Castrol, Veedol, Shell, Servo

Pushed Brands

Servo

Factors for
recommendation

Performance, OEM recommendations

Brand perception
rating

Quality

Castrol

Product performance

Castrol

Price

Valvoline

Value for money

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.

OEM recommendations are strictly followed in Oil usage by owners.


Mechanics recommendation plays only a little part.
70% owners are single brand consumers i.e., they have using only
single brand of oil since beginning.
Of those who service through mechanics, 100% knows about the
engine oil brand used, only Castrol consumers know about its subbrand name (CRB).
Not price sensitive, because they expect good performance, willing to
pay higher for that. Performance being the only factor.
Multi vehicle owners (HMCV, Tractors) prefer single oil purchase.
Single oil to use in all their fleet diesel engine vehicles. (eg. Castrol
Multi)

4.5.3.2Brief of the survey

Total Sample Size

20 owners and drivers

Popular Brands

Castrol

Brand perception
rating

Performance

Castrol

4.6 QUALITATIVE ANALYSIS TRICHY


Since Trichy has a perfect mixture of urban and rural markets for most auto
spares, the engine oil market in the city was both scattered and concentrated
depending on the segment. For example, the retail oil market for 2-wheeler, PCMO
& Tractor are all concentrated at specific locations within the city, It acts as a hub
for consumers and mechanics across rural & urban areas to reach out for their
needs.
2-Wheeler Market:

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.

5.1 TWO WHEELERS


5.1.1 Retailers
Castrol and Mobil are commonly stocked by surveyed retailers. Shell, Servo,
Valvoline, Veedol comes next. Two wheeler market is not so flooded with used
oils. Only very few retailers sell used oils exclusively in their stores.
5.1.1.1Brand Presence
Castrol present in all the retail shops surveyed. This is due to the fact that
customers are able to easily relate Castrol to engine oil. So this gives the
retailers an identity that the shop sells engine oils. So Castrol is kept at a
prominent places in all shops.
Geniune oils such as Hero, Yamalube, Bajaj & Honda also present in some of
the shops but sells little with only few unique customers

Brand presence out of 12 retailers


12

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

Total Sample Size

12 Retailer (Multi brand, Multi-segment)

Areas covered

100 feet road, Villianur, Gorimedu

Popular Brands

Castrol, Mobil, Gulf, Valvoline, Shell, Veedol

Recommended Brands

Castrol, Mobil, Shell

Top selling factors


across brands

Mechanics recommendations,
Great performance

Brand Ratings

In-shop branding

Castrol

Packaging

Shell

Service delivery

AC Delco

5.1.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

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

Pride 4T plus premium

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

among TOP 3 recommendation by 2 wheeler mechanics (Sample s


14

13

12
10
7

2
0

Castrol

Servo

Gulf

Shell

Mobil

Valvoline

Veedol

MAK

Elf/Total

Out of 10 vehicles, with sample size of 13 mechanics, we got 130 responses


of what all the grades of oil being used for the vehicles.
Majority of the two wheelers (78.6%) use the grade of 20W-40. 10W-30, which
is being projected as a scooter oil now-a-days gets used very ow (6%), but
awareness is increasing about this scooter segment.

5.1.2.2Summary of Analysis

Total Sample Size

13 Mechanics

Areas covered

New bus stand area, 100 ft road

Common Grade

20W-40 (78.6%)

Recommended brands

Castrol, Shell, Mobil

Pushed Brands

Mobil

Factors for
recommendation

Quality, Service, Availability

Brand perception
rating

Quality

Castrol

Product performance

Castrol

Price

Mobil

Value for money

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.

>150cc 20%, 100-150cc 40%, Scooters 40%,


30-40% of vehicles are rented ones (within city limits)
80% knows about the engine oil used, 60% buys it themselves from
shop. 25% people aware that there exists a separate scooter oil.
Not price sensitive, does not know about oil grades, Performance
being the only factor.

5.1.3.2Summary of Analysis

Total Sample Size

20 two wheeler owners

Popular Brands

Mobil

Brand perception
rating

Performance

Castrol

Value for money

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.

Brand presence (12 retailers)


12

11

10

10

10
8

4
2

2
0

Servo

Veedol

Gulf

MAK

Mobil

Castrol

Shell

Valvoline Elf/Total

HP

5.2.1.2Brief on the Visit:


Surveys were conducted between 24th April to 8th May 2016.

Total Sample Size

12 Retailer (Multi brand, Multi-segment)

Areas covered

Gorimedu, Vilupuram road, 100 ft road

Popular Brands

Servo, Veedol, Gulf, MAK, Shell, Castrol

Recommended Brands

Castrol, Gulf, Veedol

Top selling factors


across brands

Price, Great performance, OEMs recommendations

Brand Ratings

In-shop branding

Servo

Packaging

Servo

Service delivery

Gulf
34

5.2.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

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

ds among TOP 3 recommendation by HMCV mechanics (Sample siz


12
10

10
9
8

4
2
0

1
Castrol

Veedol

Gulf

Servo

Mobil

MAK

5.2.2.2Brief of the survey

Total Sample Size

13 Mechanics

Areas covered

Villupuram road, Gorimedu

Common Grade

15W-40 CF4 (73.2%)

Recommended brands

Castrol, Veedol, Gulf

Pushed Brands

Mobil, Servo

Factors for
recommendation

Price, Performance, OEM recommendations

Brand perception
rating

Quality

Castrol

Product performance

Castrol

Price

Valvoline

Value for money

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.

Around 50% market is of Ashok Leyland vehicles. They have an


association that buys Gulf oil in bulk to distribute at low cost to
members. Sold in loose.
Of those who service through mechanics, 100% knows about the
engine oil brand used, all of Gulf users know sub-brand name too
(Superfleet, LEmax).
Very price sensitive, especially drivers of rented lorries, Price &
Performance being the only factor.
Brand change: Easily convinced by retailers pushed brand. Hard to
convince using traditional advertisements.

5.2.3.2Brief of the survey

Total Sample Size

20 owners and drivers

Popular Brands

Servo

Brand perception
rating

Performance

Castrol

5.3 SMALL COMMERCIAL VEHICLES


5.3.1 Retailers
Servo and Castrol are commonly used brand by surveyed retailers. Other
common brands include Shell, Gulf, Veedol and MAK.
5.3.1.1Brand Presence
This trend is similar to that of HMCV segment since there is no unique shops
to exclusively sell engine oils for SCVs. It is sold along with other segments
especially HMCVs.

37

Brand presence (12 retailers)


12

11

10

10

10
8

4
2

2
0

Servo

Veedol

Gulf

MAK

Mobil

Castrol

Shell

Valvoline Elf/Total

HP

5.3.1.2Brief on the Visit:


Surveys were conducted between 24th April to 8th May 2016.

Total Sample Size

12 Retailer (Multi brand, Multi-segment)

Areas covered

100 feet road, Gorimedu

Popular Brands

Servo, Castrol, Gulf, Veedol, MAK

Recommended Brands

Servo, Castrol, Gulf

Top selling factors


across brands

Price, Great performance, OEMs recommendations

Brand Ratings

In-shop branding

Servo

Packaging

Servo

Service delivery

Gulf

38

5.3.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

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

ds among TOP 3 recommendation by HMCV mechanics (Sample size


14
12

12

10

8
6

2
0

Gulf

Servo

Veedol

Shell

Shell

Castrol

Others

Valvoline

5.3.2.2Brief of the survey

Total Sample Size

13 Mechanics

Areas covered

JN Road, New bus stand, 100 feet road

Common Grade

15W-40 CF4 (80%)

Recommended brands

Veedol, Gulf, Servo

Pushed Brands

Servo

Factors for
recommendation

Price, Performance, Mechanic recommendations

Brand perception
rating

Quality

Castrol

Product performance

Castrol

Price

Valvoline

Value for money

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.

Around 80% market is of vehicles is driven by owners themselves.


40% of the owners also owned one or more vehicles of another
segment (lorry, tractors etc)
Of those who service through mechanics, 80% knows about the
engine oil brand used, only 10% knows sub-brand name. 20% owners
do not care about oils. They buy anything cheap for the vehicles,
majority in this category is share autos.
Moderate price sensitive, Price & Performance being the only two
factors.

5.3.3.2Brief of the survey

Total Sample Size

20 owners and drivers

Popular Brands

Servo

Brand perception
rating

Performance

Castrol

5.4 PASSENGER CARS


5.4.1 Retailers
Castrol & Shell are commonly used brand by surveyed retailers throughout
city. Other common brands include Mobil, Servo and MAK.
5.4.1.1Brand Presence
Castrol and Shell is almost present in all 12 retail shops surveyed. Mobil,
Servo, Veedol also comes next. The surprise entry into this list is ENEOS.
Some mechanics already started using ENEOS as their preferred brand.

41

Brand Presence (12 retailers)


14
12

12

11

10

8
6

6
4

2
0

Castrol

Shell

Mobil

Servo

Veedol

ENEOS

Elf/Total Valvoline

MAK

Other*

5.4.1.2Brief on the Visit:


Surveys were conducted between 24th April to 8th May 2016.

Total Sample Size

12 Retailer (Multi brand, Multi-segment)

Areas covered

Across city

Popular Brands

Castrol, Shell, Mobil, Veedol, ENEOS

Recommended Brands

Castrol, Shell

Top selling factors


across brands

Great performance, Mechanics recommendations

Brand Ratings

In-shop branding

Mobil

Packaging

Servo

Service delivery

Gulf

42

5.4.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

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

among TOP 2 recommendation by PCMO mechanics (Sampl


14

13

12
10
8

7
6

4
2

2
0

Castrol

Shell

ENEOS

Gulf

Shell

Veedol

Valvoline

5.4.2.2Brief of the survey

Total Sample Size

13 Mechanics

Areas covered

Across city

Common Grade

15W-40 CF4 (54.3%)

Recommended brands

Castrol, Shell, ENEOS

Pushed Brands

Servo, Mobil

Factors for
recommendation

Performance, Mechanics recommendations

Brand perception
rating

Quality

Castrol

Product performance

Castrol

Price

Valvoline

Value for money

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.

5.4.3.2Brief of the survey

Total Sample Size

20 owners and drivers

Popular Brands

Castrol, Shell, ENEOS

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

Brand Presence (12 retailers)


14
12

12
10

10
8

7
6

Gulf

MAK

Elf/Total

Shell

4
2
0

Castrol

Veedol

Other*

Servo

Valvoline

5.5.1.2Brief on the Visit:


Surveys were conducted between 24th April to 8th May 2016.

Total Sample Size

12 Retailer (Multi brand, Multi-segment)

Areas covered

Koot road, Mayilam, Cuddalore

Popular Brands

Castrol, Veedol, Geniune oils

Recommended Brands

Castrol, Veedol

Top selling factors


across brands

Great performance, Mechanics recommendations,


OEMs recommendations

Brand Ratings

In-shop branding

Servo

Packaging

Servo

Service delivery

Gulf

46

5.5.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

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.

s among TOP 3 recommendation by tractor mechanics (Sample siz


12
10

10
8

8
6

6
4

2
0

Castrol

Shell

Servo

Veedol

Gulf

Others*

47

5.5.2.2Brief of the survey

Total Sample Size

13 Mechanics

Areas covered

Rural areas around Puducherry

Common Grade

15W-40 CF4 (100%)

Recommended brands

Castrol, Veedol, Servo

Pushed Brands

Servo

Factors for
recommendation

Performance, OEM recommendations

Brand perception
rating

Quality

Castrol

Product performance

Castrol

Price

Servo

Value for money

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.

OEM recommendations are strictly followed in Oil usage by owners.


Mechanics recommendation plays only a little part.
70% owners are single brand consumers i.e., they have using only
single brand of oil since beginning.
Of those who service through mechanics, 100% knows about the
engine oil brand used, only Castrol consumers know about its subbrand name (CRB). Veedol customers are very brand loyal, using the
brand for quite a while.
48

Not price sensitive, because they expect good performance, willing to


pay higher for that. Performance being the only factor.
Multi vehicle owners (HMCV, Tractors) prefer single oil purchase.
Single oil to use in all their fleet diesel engine vehicles. (eg. Castrol
Multi)

5.5.3.2Brief of the survey

Total Sample Size

20 owners and drivers

Popular Brands

Castrol, Veedol

Brand perception
rating

Performance

Castrol

5.6 QUALITATIVE ANALYSIS - PONDICHERRY


Since Puducherry also has a perfect mixture of urban and rural markets for most
auto spares, the engine oil market in the city was both scattered and concentrated
depending on the segment.
2-Wheeler Market:

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.

6 SALEM, TAMIL NADU


Locate in the industrial center of Tamil Nadu, Salem is well connected with all the
cities mainly Bangalore, Chennai and acts as a hub for many highways. With
industries such as SAIL, Powergrid, Salem has a considerable in and out traffic of
HCVs & SCVs regularly. Namakkal, which is 30KM from Salem acts as a hub for HCV
markets for southern India. Tractor market is also omnipresent throughout the
periphery of the city. PCMO & Two wheeler markets are among the top 5 in the
state.

6.1 TWO WHEELERS


6.1.1 Retailers
Castrol and Gulf are commonly stocked by surveyed retailers. Shell and
Valvoline increasing in their shelf space across retailers. Two wheeler market
is flooded with used oils. Many retailers sell used oils exclusively in their
stores.
6.1.1.1Brand Presence
Castrol present in all the retail shops surveyed. This is due to the fact that
customers are able to easily relate Castrol to engine oil. So this gives the
retailers an identity that the shop sells engine oils. So Castrol is kept at a
prominent places in all shops.
Geniune oils such as Hero, Yamalube, Bajaj & Honda also present in some of
the shops but sells little with only few unique customers

51

Brand presence out of 12 retail shops


14
12

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

Total Sample Size

12 Retailer (Multi brand, Multi-segment)

Areas covered

Old bus stand, 5 road

Popular Brands

Castrol, Gulf, Valvoline, Shell, Genuine oils, Filtered


used oils

Recommended Brands

Castrol, Gulf, Shell

Top selling factors


across brands

Mechanics recommendations,
Great performance

Brand Ratings

In-shop branding

Castrol

Packaging

Shell

Service delivery

Shell

52

6.1.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

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

Pride 4T plus premium

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.

s am ong TOP 3 recom m endation by 2 wheeler m echanics (Sam ple size


14
12
10
8
6
4
2
0

13
11
8

5
2

Castrol

Servo

Gulf

Shell

MAK

Valvoline

Elf/Total

6.1.2.2Summary of Analysis

Total Sample Size

13 Mechanics

Areas covered

Spread across city, no specific concentrated areas

Common Grade

20W-40 (85.6%)

54

Recommended brands

Castrol, Shell, Gulf

Pushed Brands

MAK, Servo

Factors for
recommendation

Quality, Service, Performance

Brand perception
rating

Quality

Castrol

Product performance

Castrol

Price

Valvoline

Value for money

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.

>150cc 30%, 100-150cc 40%, Scooters 30%,


90% owners prefer authorized service centers for first 3 years
Of those who service through mechanics, 90% knows about the
engine oil used, 60% buys it themselves from shop.
Not price sensitive, does not know about oil grades, Performance
being the only factor.

6.1.3.2Summary of Analysis

Total Sample Size

20 two wheeler owners

Popular Brands

Castrol, Shell

Brand perception
rating

Performance

Castrol

Value for money

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.

Brand Presence (12 retailers)


14
12

12
10

10

10
8

7
6

Shell

Total

2
0

Gulf

Castrol

Servo

MAK

Shell

Valvoline

Veedol

6.2.1.2Brief on the Visit:


Surveys were conducted between 8th April to 23rd April 2016.

56

Total Sample Size

12 Retailer (Multi brand, Multi-segment)

Areas covered

Namakkal road, 5 road

Popular Brands

Gulf, Servo, Castrol

Recommended Brands

Gulf

Top selling factors


across brands

Price, Great performance, OEMs recommendations

Brand Ratings

In-shop branding

Servo

Packaging

Servo

Service delivery

Gulf

6.2.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

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

6.2.2.2Brief of the survey

Total Sample Size

13 Mechanics

Areas covered

5 road, Bangalore bypass road

Common Grade

15W-40 CF4 (68.3%)


58

Recommended brands

Gulf, Servo, Castrol

Pushed Brands

Servo

Factors for
recommendation

Price, Performance, OEM recommendations

Brand perception
rating

Quality

Castrol

Product performance

Castrol

Price

Valvoline

Value for money

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.

Around 60% market is of Ashok Leyland vehicles.


Of those who service through mechanics, 100% knows about the
engine oil brand used, 60% knows sub-brand name too, specially Gulf
users.
Very price sensitive, especially drivers of rented lorries, Price &
Performance being the only factor.
Brand change: Easily convinced by retailers pushed brand. Hard to
convince using traditional advertisements.
No one knows about the fact that Gulf is a sponsor of CSK franchise in
IPL.

6.2.3.2Brief of the survey

Total Sample Size

20 owners and drivers

Popular Brands

Gulf

59

Brand perception
rating

Performance

Castrol

6.3 SMALL COMMERCIAL VEHICLES


6.3.1 Retailers
Servo, Gulf and Castrol are commonly used brand by surveyed retailers
throughout Salem. Other common brands include Shell, Valvoline and MAK.
SCV market is also flooded with used oils.
6.3.1.1Brand Presence
Servo present in 11 out of 12 retail shops surveyed. This is because Servo is
a well moving brand among cost conscious SCV consumers.
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.

Brand Presence (12 retailers)


12

11

10

10
8

6
4

4
2

2
0

Servo

Castrol

Gulf

MAK

Shell

Veedol Valvoline Other* Elf/Total

Mobil

HP

6.3.1.2Brief on the Visit:


Surveys were conducted between 9th May to 21st May 2016.

60

Total Sample Size

12 Retailer (Multi brand, Multi-segment)

Areas covered

4 road, Hasampet

Popular Brands

Servo, Castrol, Gulf, Shell, MAK, Filtered used oils

Recommended Brands

Servo, Castrol, Gulf

Top selling factors


across brands

Price, Great performance, OEMs recommendations

Brand Ratings

In-shop branding

Servo

Packaging

Servo

Service delivery

Gulf

6.3.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

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.

among TOP 2 recommendation by SCV mechanics (Sample


14
12
10
8
6
4
2
0

13

5
2

Castrol

Servo

Shell

Gulf

6.3.2.2Brief of the survey

Total Sample Size

13 Mechanics

Areas covered

5 road, Old bus stand area

Common Grade

15W-40 CF4 (80%)

Recommended brands

Castrol, Gulf, Servo

Pushed Brands

Servo

Factors for
recommendation

Price, Performance, OEM recommendations

Brand perception
rating

Quality

Castrol

Product performance

Castrol

Price

Valvoline

Value for money

Valvoline
62

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.

Around 80% market is of vehicles is driven by owners themselves.


Of those who service through mechanics, 100% knows about the
engine oil brand used, 60% knows sub-brand name too.
Moderate price sensitive, Price & Performance being the only factor.

6.3.3.2Brief of the survey


Total Sample Size

20 owners and drivers

Popular Brands

Castrol

Brand perception
rating

Performance

Castrol

6.4 PASSENGER CARS


6.4.1 Retailers
Castrol is a commonly used brand by surveyed retailers throughout Salem.
Other common brands include Shell, Servo and MAK.
6.4.1.1Brand Presence
Castrol present in 12 out of 12 retail shops surveyed, followed by Shell.
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.

63

Brand Presense (12 Retailers)


14
12

12

11

10

8
6

6
4

2
0

Castrol

Shell

Mobil

Servo

Gulf

MAK

Elf/Total Valvoline Veedol

Other*

6.4.1.2Brief on the Visit:


Surveys were conducted between 9th May to 21st May 2016.

Total Sample Size

12 Retailer (Multi brand, Multi-segment)

Areas covered

5 road, Old bus stand

Popular Brands

Castrol, Shell, Mobil, Servo, Lesser known brands

Recommended Brands

Castrol, Shell

Top selling factors


across brands

Great performance, Mechanics recommendations

Brand Ratings

In-shop branding

Servo

Packaging

Servo

Service delivery

Gulf

64

6.4.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

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.

65

mong TOP 2 recommendation by PCMO mechanics (Sample


12
10

10
8

8
6

2
0

Castrol

Shell

Gulf

Servo

6.4.2.2Brief of the survey

Total Sample Size

13 Mechanics

Areas covered

Salem Cantonment area, Across city

Common Grade

15W-40 CF4 (54.3%)

Recommended brands

Castrol, Shell

Pushed Brands

Servo

Factors for
recommendation

Performance, Brand, Mechanics recommendations

Brand perception
rating

Quality

Castrol

Product performance

Castrol

Price

Valvoline

Value for money

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.

Around 70% over the counter 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.
Shell helix is equally popular as Castrol magnetic.

6.4.3.2Brief of the survey

Total Sample Size

20 owners and drivers

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.

67

Brand presence (12 retailers)


14
12

12
10

10

6
4

Elf/Total

Valvoline

4
2
0

Castrol

Servo

Other*

Veedol

Shell

Gulf

MAK

6.5.1.2Brief on the Visit:


Surveys were conducted between 9th May to 21st May 2016.

Total Sample Size

12 Retailer (Multi brand, Multi-segment)

Areas covered

5 road

Popular Brands

Servo, Castrol, Gulf, Valvoline, Veedol, Geniune oils

Recommended Brands

Castrol, Servo

Top selling factors


across brands

Great performance, OEMs recommendations

Brand Ratings

In-shop branding

Servo

Packaging

Servo

Service delivery

Gulf

68

6.5.1.3Market Operated Price data:


As it is given by retailers, the data is tabulated below. It is also to be noted
that this MOP is within Rs. +/- 20 range. Because the retailers expect a
bargain from customers here usually.

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.

69

s among TOP 3 recommendation by tractor mechanics (Sample siz


12
10

10
8

8
6

6
4

2
0

Castrol

Shell

Servo

Veedol

Gulf

Others*

6.5.2.2Brief of the survey

Total Sample Size

13 Mechanics

Areas covered

Rural areas around Salem

Common Grade

15W-40 CF4 (100%)

Recommended brands

Castrol, Veedol, Shell, Servo

Pushed Brands

Servo

Factors for
recommendation

Performance, OEM recommendations

Brand perception
rating

Quality

Castrol

Product performance

Castrol

Price

Valvoline

Value for money

Valvoline

Packaging

Shell

Promotion

Castrol

70

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.

OEM recommendations are strictly followed in Oil usage by owners.


Mechanics recommendation plays only a little part.
70% owners are single brand consumers i.e., they have using only
single brand of oil since beginning.
Of those who service through mechanics, 100% knows about the
engine oil brand used, only Castrol consumers know about its subbrand name (CRB).
Not price sensitive, because they expect good performance, willing to
pay higher for that. Performance being the only factor.
Multi vehicle owners (HMCV, Tractors) prefer single oil purchase.
Single oil to use in all their fleet diesel engine vehicles. (eg. Castrol
Multi)

6.5.3.2Brief of the survey

Total Sample Size

20 owners and drivers

Popular Brands

Castrol

Brand perception
rating

Performance

Castrol

6.6 QUALITATIVE ANALYSIS SALEM


Since Salem also has a perfect mixture of urban and rural markets for most auto
spares, the engine oil market in the city was both scattered and concentrated
depending on the segment. For example, the retail oil market for 2-wheeler, PCMO
& Tractor are all concentrated at specific locations within the city, It acts as a hub
for consumers and mechanics across rural & urban areas to reach out for their
needs.
2-Wheeler Market:

Most retailers perception towards various engine oil brands are subjective in
nature and they find no particular major differences in performance between
71

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.
72

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:

73

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:

74

The legacy of the brand, its indian-ness can be emphasized in ad campaigns.


People will buy it for its legacy. Example being the Escorts tractors, the oldest
Indian tractor manufacturers, and people buy the tractor for its legacy and
indianness even though many foreign brands are in the market.
Attractive unique colours in containers might be helpful in giving Veedol an
unique experience. Example being Shells selection of colours. Grey coloured
containers can be avoided since it sits well with other oils and offers no
uniqueness.
Success of ENEOS in Puducherry is so huge. There are some mechanics who
are very much happy with the brand. This success strategy can be followed in
other markets in south region.
Consumers increased awareness can be seen in all segments and all
markets. We can capitalize on that by offering freebies to consumers in terms
of Veedol stickers. A similar strategy followed by Apple to show off that they
are users of the brand also triggered others to buy it. Apple gives away 2
apple logo stickers with each products since beginning.
A follow-up with consumers who purchase Veedol would encourage him to
think about our brand the next time he buys it.

Thank You!

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