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Case Title:

Castrol India Limited in 2006

Publication Year : 2006

Authors: Himani Yadav, Joel Sarosh Thadamalla

Industry: Oil and Natural Gas

Region:India

Case Code: GRS0155A

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:

Castrol India Limited (Castrol), subsidiary of UK based British Petroleum group (BP) was one of the active players in the retail automotive lubricant market in India in 2005. It had capacity to produce 300 million tonnes per annum of lubricant. From a minor oil company with market share of 6% in 1991, Castrol grew to become second largest lubricant company with market share of 22% in Indian lubricants market in 2005. Castrol was also a market leader in the retail automotive lubricants segment. In BP’s worldwide operations, Castrol in India was second in terms of volume of lubricants sold after US, and third in terms of profit next to US and Germany.

In 2005, Castrol initiated a new communication and re-launch exercise, laying emphasis on the liquid engineering concept, and technology upgradation. The company repositioned products on value proposition, filled up gaps in the product range and emphasized on customer benefits in each and every application. Castrol also introduced computerized vehicle service centers and entered into strategic marketing tie-ups with original equipment manufacturers (OEMs). Castrol had served over 30 million customers and expected to add another 50 million customers in 2006. Would Castrol be able to sustain its marketing advantage with repositioning in Indian lubricant market?

Pedagogical Objectives:

  • To understand the Indian Lubricant market
  • To analyse the marketing strategies of Castrol in India
  • To discuss the importance of brand repositioning as a marketing strategy.

Keywords : Castrol India Limited; India; petroleum; lubricant; market leader; retail automotive lubricants segment; Growth Strategies Case Study; British Petroleum; liquid engineering; re-positioning; value proposition; marketing tie-ups; product range; value proposition

Contents: 
Introduction
Indian Lubricant Industry
About Castrol
Commercial Business
Castrol’s Marketing Strategies
The Road Ahead
Performance Scorecard of Castrol
Company-wise Trend in Production

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