Engine Oils Castrol & Servo

RURAL MARKETING MANAGEMENT

UTKARSH PRATAP SINGH-143

AGENDA
Overview Project Information 4As & Marketing Mix Consumer Interactions

Customer Buying Behavior

Suggestions

Overview
A largely fragmented market with small and big players. However,

Market share is enjoyed by only a few big players

Engine oil in rural India are used in 2-wheelers, heavy vehicles(trucks

and tractors), light commercial vehicles (tempos and passenger vehicles), and farming equipments (water pumps)

Market Share

Castrol: 25%, Servo: 20%

Volume growth is stagnating due to longer lasting lubricants Challenges to the growth of the segment are

Low literacy/Unawareness Low distribution network

Project Information
Who? 2-wheeldrivers, truck drivers, tempo drivers, mechanics Around 50 motorbikes, 2 tempos and 3 Jeeps in that area Many trucks in the area What? Preferences with respect to purchase of engine oils Where? Wada village, District: Bhivandi Petrol pumps Retail outlets Authorized service stations, Garages(mechanics) Rural and agricultural dealers Wholesale distributors

4 As
Availability
Retail outlets, Haats, Petrol Pumps, Hand carts etc.

Affordability
Comes in affordable packs of 10 to 15 rupees

Acceptability
90% of the consumer use Castrol as their choice

Awareness
people are less aware about the other brands like, Redline, AMSOIL, and Royal Purple, Shell Lubricants, Chevron but every one knows CASTROL

Marketing Mix 4Ps

Product
Engine Oil, Greece, Dry Lubricants

Price
Different prices as per size and quality

Place
Used all over India, has market share of over 30%

Promotion
tie up with ITC-E chaoupal, Godrej Adhar, Reliance India

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

Interviewee 2
Bhim Rao- Tractor Driver
I have been using Castrol for 10-15 yrs I use it because it was suggested by the mechanic and it is of good quality I will switch the brand if offered a lower price Companies have stopped offering promotions and discounts A good oil is one that is long lasting and gives a powerful sound

Interviewee 3
Sachin Jadhav- Tempo Driver
I have just bought this tempo and I dont

know which oil has been used passenger cars use it

I plan to buy Servo in future because I remember Rahul Dravid in the Servo ad I hope companies offer promotions and

though that is not the reason for purchase discounts and reduced prices power

A good oil is one which gives good engine

Customer Buying Behavior

Factors influencing buying behavior Environment (e.g. electric equipments) Geographical influence(e.g. HMT watches) Family Economic factors Place of purchase Creative use of products Cultural factors
Product Social practices

Continued..
1) Brand Awareness 2) Key Influencers

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

Direct Mechanics Decision makers in the family Indirect Television and print ads. Brand ambassadors

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

4) Price Sensitivity
Highly price sensitive

consumer who would switch brands if offered a more competitively priced quality product. Affordable Packaging

Suggestions
Segmentation

Quality conscious consumer Price conscious consumers Both

Educate the consumers about the importance of using a

good quality engine oil in a vehicle that is an expensive investment. Low quality could reduce life

The company should tie up with a few tractor manufacturers

to push the product

Continued..
Expand distribution network

Retail outlets/stalls in villages Establish vehicle service centers in villages Trade launches Delivering the product at the door step Mechanic and retailer meets Discount offers Highest sale contests and rewards

Strengthening the relationships with the mechanics, a strong influencer

Reward based programs for customers

Loyalty programs Discount offers Schemes-freebies Direct interaction with Consumers