Castrol Rural Marketing

Description
Talks about rural marketing initiatives taken by castrol to tap indian market. It includes topics like marketing mix of castrol, castrol's rural marketing initiative called project attack.

Rural Marketing by Castrol India Ltd

Content of Presentation

Overview 4A’s & Marketing Mix Customer Buying Behavior Project Attack

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 A’s
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 4P’s
Product
• Engine Oil, Grease, 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

Factors affecting buying behavior..

Awareness
• Aware of brands like Castrol • Low top of the mind recall

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

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

Price Sensitivity
• Highly price sensitive consumer who would switch brands if offered a more competitively priced quality product. • Affordable Packaging

Factors affecting buying behavior..
? 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 Loyalty programs Discount offers Schemes-freebies Direct interaction with Consumers

? Strengthening the relationships with the mechanics, a strong influencer
? ? ?

? Reward based programs for customers
?

?
? ?

Project Attack
? Marketing Initiative Tractor engine oil CRB Plus in rural areas with

population 20,000-1,00,000 ? Awarded the best Innovative Marketing Initiative for Rural Marketing 2008 ? Brief Objective:
? ? ? ?

To demonstrate the benefits of CRB plus with heat proof formula To show how the engine oil lubricates even at 300deg C protecting the engine Re-establish CRB plus in strong competition market Trigger consumer conversion from competitors to CRB Plus Farmers and Mechanics Age group 20-45 years Owner of 1-2 tractors Decision maker Can be influenced and seek value for money

? Target Audience:
? ? ? ? ?

Project Attack
? Concept: Taking the customer experience the

Inside of the engine of a tractor by making him visually see
?

The working of the oil inside the engine through a larger than life mechanism so as to demonstrate the benefits of CRB plus to the TG
Do a comparison between an ordinary oil and CRB plus at a higher temperature of 300 degree to show the difference

?

Project Attack
•Reaching customer through a movie Jai Kissan with a tone of communication that would appeal to the emotions of the lapsed CRB plus user like a long lost friend. •The movie encouraged TG to embrace a friend in the form of CRB plus who has always protected his tractor

How rural marketing made a difference to Castrol
? Top of Mind Awareness of CRB plus
?

Increased by 12.1% viz-a-viz last quarter. plus by 3.1% in comparison to last quarter.

? Preference share increased of CRB
?

? Brand proposition recall and intention to purchase ? 79% recall the brand proposition correctly. (post campaign feedback) ? 65% CRB non users explicitly expressed their willingness to shift to CRB Plus

? Percentage growth in D1, D2, D3 market
? ? ?

17% 8% 7%

Dl=High potential, low CRB share D2=High potential, strong CRB hold D3=0EM market with M&M tractors

D1

D2

D3

Thank You



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