Kavan OzaAn Integral Part of Guest Lecture Committee at School of Petroleum Management, PDPU and SPM Mirror Committee. à Indian Oil Corporation Limited
The featured presentation gives a brief idea about the marketing techniques used by Castrol to monitor its place as the leading player in the automotive lubricant industry in India.
Kavan OzaAn Integral Part of Guest Lecture Committee at School of Petroleum Management, PDPU and SPM Mirror Committee. à Indian Oil Corporation Limited
2. Contents
1. Significance of Study
2. Industry Profile
3. Company Profile
4. 4 Ps of Marketing
5. SWOT Analysis
6. Porter’s Five Forces Model
7. Way Forward
8. Key Lessons
3. Oil plays an important element of
our energy basket. Also , a scarce
& expensive commodity
The ever changing oil prices and
current shift of power dynamics
globally.
A greater demand for well
informed and resourceful
managers.
The need of intelligent and
proactive approach towards
niche marketing sector
4. 2.Industry Profile
India :
• An Important market for the lubricant industry world-wide
• Contributes 6% to global automotive lubricants demand and over 4% of industrial
lubricants demand.
• Largest lubricant market after China and US
Indian
National
Oil
Companies
+ Castrol
55%
Other
Multination
als
20%
Smaller
Players
25%
Indian National Oil Companies + Castrol : share
55% of market in terms of volume
Another 20% shared by other multinationals.
Rest by smaller players largely local
5. Automotive Lubricants Non- Automotive Lubricants
Industry Segmentation
Four Wheelers, Two
Wheelers, Trucks
Marine and Energy
Lubricants
Industrial Lubricants
6. Major Industry Development
• Industry saw favourable cost of goods environment for the year due to the prevailing
crude pricing and supply situation all through the year (2015)
• Vehicle Sales grew by 2% compared to previous year
• Industry needs to respond with new products that are able to cope with the increasing
sophistication of modern vehicles.
• The advent of with higher performance has an impact on structural demand in the
industry as lubricant consumption decreases while per unit cost and price realization
increases.
• Other drivers remaining unchanged, the growth in demand for lubricants is expected to
lag vehicle population growth rate in the foreseeable future.
7. Castrol India is the 2nd largest manufacturer of automotive and industrial lubricants in
the Indian lubricant market and owns around 22% market share in the overall Indian
lubricant market
The company is headquartered in the UK and operates directly in over 40 countries,
and employing approximately 7,000 staff worldwide.
In nearly 100 other markets, it is represented by third party distributors who market and
sell our products locally.
The Castrol delivery network extends throughout 140 countries, covering 800 ports and
partnering with over 2000 distributors and agents
9. The full range of Castrol metalworking fluids,
cleaners, corrosion preventives and
lubricants. Marine - Cylinder oils-crosshead,
crankcase oils-crosshead, truck piston engine
oils, hydraulic oils, gear oils, compressor oils,
turbine oils, refrigeration oils, emulsifiable oils,
heat transfer oils, greases, and fishing.
Products range of more than 100 products
has around30 high selling products.
11. • Maximizes short and long term engine performance
• Reduces engine deposits to help maximize engine response
• Sustains maximum performance even when under pressure
• Independently proven to Improve engine efficiency
• Delivers unsurpassed levels of protection across a variety of driving
conditions and temperature
• Delivers and sustains maximum horsepower for longer, even when
under pressure
12. Castrol GTX ECO delivers 10% CO2
reduction* AND helps extend engine life .
Kedar Apte, Head - Brand and
Communications at Castrol India
commented:
“Our team of experts has achieved what was
previously thought impossible: to deliver
significant CO2 reductions from the oil’s life
cycle, while providing the benefits of Castrol
GTX Diesel, which helps to extend your engine
life by providing 2 times better protection from
soot problems**. By re-refining used oil and
delivering it as a high-quality product, Castrol
GTX ECO delivers CO2 reductions without
compromising on engine performance or
protection.”
27. 7. Way Forward
Castrol enjoys the position of leading private player in India. Yet its
major competitors are the PSUs.
The new entrants in the market are coming up with products at lower
rates than Castrol. Castrol will need to maintain the quality of its
customers and brand recall value amongst the customers.
Customer Choices: A small segment of lubricant consumer still rely on
the words of mechanic. Awareness about product needs to be
encouraged further.
28. 8. Key Lessons
Aggressive Marketing: All routes policy
Research and Development – Better market study, better
promotions, better products
Trade Marketing
Role of Distribution Channels