1. RURAL MARKETING MANAGEMENT UTKARSH PRATAP SINGH-143 Engine Oils Castrol & Servo

2. AGENDA

Overview

Project Information

4As & Marketing Mix

Consumer Interactions

Customer Buying Behavior

Suggestions

3. 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

4. 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

5. 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

6. 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

7.

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 1 8. 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

9.

Sachin Jadhav- Tempo Driver

• I have just bought this tempo and I dont know which oil has been used

• I plan to buy Servo in future because passenger cars use it

• I remember Rahul Dravid in the Servo ad though that is not the reason for purchase

• I hope companies offer promotions and discounts and reduced prices

• A good oil is one which gives good engine power

Interviewee 3 10. 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

11. Continued..

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

2)Key Influencers

• Direct

• Mechanics

• Decision makers in the family

• Indirect

• • Television and print ads.

• • Brand ambassadors

1)Brand Awareness

• Aware of brands like Castrol and Servo

• Low top of the mind recall

12. 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

13.

Expand distribution network

• Retail outlets/stalls in villages

• Establish vehicle service centers in villages

• Trade launches

• Delivering the product at the door step

Strengthening the relationships with the mechanics, a strong influencer

• Mechanic and retailer meets

• Discount offers

• Highest sale contests and rewards

Reward based programs for customers

• Loyalty programs

• Discount offers

• Schemes-freebies

• Direct interaction with Consumers

Continued.. 14.