Professional Documents
Culture Documents
CHAPTER
CHAPTER––II
1. INTRODUCTION
Marketing:
The customer is king. And he is now the epicenter of all messaging activity. As
our man gets more sophisticated and multifaceted, markets are doing anything they can to
peek into his mind set and psychoanalyse what really drives his dichotomous purchase
behavior.
So marketing not only helps the company to sell the product but also shows the
ways to the company for effective advertisement, awareness of the product and diverts the
customers motive towards their product therefore marketing plays an dominant role in the
business enterprise.
Therefore a good marketing strategy will a profitable for the company and gives
all the opportunities to achieve the predetermined goals of the firm without much expense
and with concise time.
India with an area covering over three million square kilometers, encompasses a
‘Buying Public’ of over 250 millions, on the one hand, the ‘Buying Public’ represents a
market with a high growth potential and low product penetration on the other hand, the
Indian market is characterised by diverse cultures, customer aspirations, purchasing
sensitivity and modes of moving products to consumers. These constitute towards making
India a marketing paradise, as well as a night more.
Steps.
Plan implementation
Controlling
The first step in the strategic marketing process is to analyze the marketing
opportunities. Environment is free of the opportunities but the company should select on
opportunity that suits its strength and where is has a competitive advantage, opportunities are
the unsatisfied needs of the market, a company cannot satisfy are these needs therefore it
should seen the internal and external to define a comprehensive objective in the light of the
overall corporate objective.
Marketing Mix:-
Product:
Product is the soul of every marketing activities. Basically marketing is the process
of identifying consumer needs and wants translating them into goods and services and
delivering them to the customers as and when they like. The product should have the
characteristics of good shape, good design, good packaging, good brand name and suitable
product range. Ex: Castrol Engine Oil.
Price:
Price of a product is the amount for which a product can be exchanged. In other
words it is the money value of the product, pricing means the fixation of the price of the
product.
While fixing a price to the product a marketer has to consider the following factors viz.,
1) A cost of the product.
2) A nature of sales – cash or credit sale
The nature of demand – seasonal or regular.
The nature of consumer quality or quantity oriented.
The degree of competition.
3)Promotion:
Promotion means communication with the consumer to pursuit them to buy the
product. Promotion includes the various activities which are intended to inform the
consumer about the availability of a product i.e., creation of awareness, promotion included
advertising, publicity, personal selling and other sales promotional activities.
Place of Distribution:
Place of distribution is concerned with making available the goods to the
consumers at their own places. The physical distribution of a product covers the various
channels of distribution like the whole sellers, retailers, agents, middlemen etc., and the other
means of distribution like transportation ware housing, insurance etc.,
Consumer Behaviour:
The adage “ consumer is king” is truly an important fact of modern day marketing.
Unless the ‘king’ is satisfied and pampered to the extreme, there is no knowing what we will
do. This change of attitude is something new to the Indian consumer, who was told to take it
or leave it till other day. He had few choices and then it all changed. The economy was
thrown open and the markets liberalized. Suddenly there were competing products in the
markets, beckoning for ‘king’ consumers attention. He found himself being moved by the
competitors.
Consumer behaviors is the control figure of all marketing activities. The ultimate
object of marketing strategy is to provide marketing mix to bring about desired response
from the customers. Therefore the study of consumer or buyer behaviour is the basis for
marketing plans and policies. The mind decides and body acts but what enters to the buyers
mind is difficult to understand. His mind is block box wherein several factors indulgences
operates to decide his buying pattern with regard to understand fully the working of buyers
mind and diverse suitable strategies to create negative or unfavorable orientation in the mind
of customers.
The one and only book written by professor Shyam Babu Vyas, on ‘marketing and
consumer behaviour’ Basic concepts.
An Indian author and a consultant of marketing and management high lighting the
Indian consumer behaviour. As is well known, in the current Indian markets, marketing
professionals are facing an uphill task in selling their wares. Among the different areas
blamed are productions, technological and financial bottlenecks. However more than all
these is the lack of understanding of consumer behaviour at all levels of marketing
management.
In India, Castrol, the largest manufacturer of Engine Oil in the country, has set up
a research center, which among other things, carries out basic research on this commodity.
Approximately Crore is spent annually to establish that Engine Oil.
Every work is Goal oriented and otherwise a work is not goal oriented there is no
meaning in it.
This work or the project is goal oriented and expected to get some valuable
information about the product, we can get the valuable information through the respondents
only. But even through some predetermined goals are expected.
These predetermined goals can be summarized as, to know the consumer attitude
towards the Castrol Engine Oil. Awareness and buyers prospective towards the product.
Evaluating the marketing strategy or sales plan and at the end to know consumers buying
motives and preferences.
The above predetermined goals are the basic needs of a project and product.
The work will be beneficial if the above needs are fulfilled with accurate and
valuable information.
The scope of the study, that is, the boundary of the study is restricted to the study
of consumer behaviors towards Castrol, in Chickmagalur city only.
For the purpose of study, Chikmagalur city has been selected. It is developing
economically and educationally rather than developed fairly. It has an population around one
and half lakh. The working people been scattered as follows.
20% of total population depends upon agriculture.
40% of the total population depends upon business.
Rest of the people are coming under salary class.
This study covers the users of Castrol Engine Oil and some strictly other
competitive brands. This study has given also an opportunity to cover survey on dealer of
Castrol and other competitive brands which are prevailing in Chickmagalur city presently.
As the survey has been conducted at dealer shop it will be a great helpful to the
financial manager at the time of planning and thereby knowing sales forecast for the product.
It will also be helpful to students of management Studies.
Primary data: It has been largely obtained through interviews with sales representative of
the Brooke bond red label which produced the below said.
Sales of the product.
Demand of the product.
Annual turnover product.
Market share product
Channels share product
Interview with deals of Brooke Bond in Chikmagalur City. This was made to get answers for
the following.
Agency History.
Marketing mix strategy.
Agency relations
Annual turnover in Chikmagalur city.
b) Secondary data:
Date was also been used for the purpose of the report. The main sources are
Internet.
Newspaper & Magazines
Company’s Annual report.
Text Books.
The study has certain limitations under which it was carried out. As these
limitations are unavailable it was decided to carryout the study inspire of all these limitations.
Some of the limitations found in the study are as follows:
Time constraint:
The time period for conducting survey and getting information was so limited that
required and efficient information have not been soughout perfectly.
Maximum Reach:
As the time proven to be very less. Only 50 respondents are taken into account for
the survey. It is too less to conduct a survey in Chickmagalur city. Still having no other
alternatives. We has to conduct survey with the limited respondents only.
Less involvement:
During the survey some respondents were hesitant, some of them were not very
serious and some gave biosed answers.
Some response towards the respondents, age, education, occupation and income are not very
accurate.
CHAPTER
CHAPTER––IIII
2. Castrol Introduction
Castrol can provide a complete range of solutions using our knowledge and expertise
of your industry
Talk about leading edge technology in lubricants, and Castrol India emerges
as an undisputed leader. It is the second largest lubricant company in India with a
market share of over 20 %. Life blood of vehicles of all shapes and sizes, Castrol is
the power that keeps India’s wheels in motion.
Castrol India is the only lubricant company to have been an embedded part of
India’s economic advancement for over 85 years
All mechanical devices need lubrication to prevent over-heating and damage. This is because
when any two solid surfaces move in contact with each other, the friction that is created
generates heat and causes wear. A high quality engine oil, such as that produced by Castrol,
will lubricate, protect, cool, clean and seal your engine.
Engine oil :
Reduces friction and wear, leading to efficient engine operation and long life
Removes heat from the engine to prevent it from overheating
Prevents deposits and corrosion, and so keep the engine clean
Disperses soot and sludge
Contributes to energy savings and clean combustion, helping to safeguard the
environment
Castrol Operate
Castrol History
The success of our company owes much to the original philosophy of Charles
Wakefield
On 19th march 1899, Charles 'cheers' Wakefield set up an oil company in England.
Ten years later, he produced a new lubricant that would revolutionise transport in the first
half of the twentieth century. He called the new oil castrol.
The success of our company owes much to the original philosophy of Charles
Wakefield. He drew on the help and encouragement of his customers in developing his new
Castrol Oils because he had the foresight to see that working in partnership was the best way
to achieve success for both parties. This rationale is as relevant to us today as it was then.
Charles Wakefield played a major role in the rapidly developing transport industry,
placing his faith in the potential of the internal combustion engine as the power source of the
future. Working hand in hand with pioneering aviators and motorists of the day as aircraft,
the motorcycle and the motorcar were emerging, he aimed to create the highest quality
engine oils - and then to improve them. In doing so, he contributed to exciting record
achievements. It was natural that Castrol was the chosen oil for breaking world speed and
endurance records, on land, on sea and in the air. The Land Speed Record alone has been
broken an amazing 21 times by cars using Castrol lubricants.
Castrol products were tested and proved at the very limits of endurance…a technique
we continue to this day. Many of our lubricants that started out as competition grades have
become available to the everyday motorist, allowing millions of people worldwide to share in
the benefits of race-proven technology.
Our founder was also a pioneer in marketing - before marketing had even been
invented. His strategy of advertising record-breaking and sporting feats achieved by pace-
setting Castrol users was pure original thinking, and certainly put Castrol 'on the map' in
England and around the world. Our support of international teams in many areas of
motorsport continues to be a key part of our promotional activity in the new century.
With more than one hundred years of experience in satisfying our customers' needs,
we remain as committed today to providing the most technically advanced lubricants and
services as was Charles Cheers Wakefield when he founded our company.
Timeline
1899 - 1909
In March 1899, Charles ‘Cheers’ Wakefield founded
CC Wakefield & Co Ltd, later to become Castrol. The
Wakefield Lubricator, patented in the 1890’s for lubricating
the axlebox of steam locomotives, was invented. It is still in
use today. The Wakefield Motor Oil ‘Castrol brand’ was registered in 1909.
The 1920’s
Castrol ‘R’ helps flight pioneers Alcock and Brown
for their first non-stop flight across the Atlantic. In 1925, M.
Campbell sets a new World Land Speed record. W. Handley
becomes the first rider to win two Isle of Man TT races in
one week. Bentley win Le Mans in 1928 at an average speed of 69 mph.
Early 1930’s
The Wakefield Trophy award for World Land Speed
Record holders, is commissioned by Charles Wakefield. Amy
Johnson is the first woman to fly solo from England to
Australia in 1930. “Castrol Andy” and his mobile unit support
teams. Detergent-based ‘Patent Castrol’ for cleaner engines
appears in 1935.
1951 – 1960
Geoff Duke pictured at the Belgium GP wins the
500cc World Championship for Norton in 1951. 2 years later,
the first semi-synthetic racing motor oil, Castrol R20, is
developed in partnership with Mercedes Benz.
The Sixties
The luxury liner Queen Elizabeth II is launched in
1967and Castrol GTX, the first multigrade oil with a 20W/50
viscosity rating, in 1968. It later becomes the most famous
motor oil of all times. 16 of the 23 finishers of the 1970
London to Mexico rally are lubricated by Castrol.
1978 – 1983
Bjorn Waldegard wins the Swedish Rally and the
World Rally Drivers Championship the following year. 1983
sees Nelson Piquet (Brabham BMW) winning the F1 Drivers
Championship, Freddie Spencer (Honda) the 500cc World
Title and Richard Noble setting a new World Land Speed
Record (633 mph) in Thrust II.
1968
1917
1929 1999
1946
2001
1958
Castrol India Limited is a Public Limited Company with 70.92% of the equity
held by Castrol Limited UK (part of BP Group). In 2003 the company's turnover was
Rs.1360.51 crores and Profit After Tax was Rs. 137.38 crores. From a minor oil company,
with a share of about 6% in 1991, Castrol India has grown to become the second largest
lubricant company in India with a market share of around 22%. Castrol India manufactures
and markets a range of automotive and industrial lubricants. It markets its automotive
lubricants under two brands - Castrol and BP. The company has leadership positions in most
of the segments in which it operates including passenger car engine oils, premium 2-stroke
and 4-stroke oils and multigrade diesel engine oils. Castrol India has the largest
manufacturing and marketing network amongst the lubricant companies in India. The
company has 5 manufacturing Plants across the country, including a state-of-the-art plant in
Silvassa. The company reaches its consumers through a distribution network of 270
distributors, servicing over 70,000.retail outlets.
Castrol India has clearly demonstrated its commitment to Indian consumers
for over 80 years, by offering its international range of high performance products backed
by the highest level of customer service. The company has managed to gain sustainable
competitive advantage through:
Distinctiveness driven by continuous innovation in all areas of business
Winning culture and a desire to excel Strong meaningful relationships with all
stakeholders
Local Partners
Castrol India Limited has a strategic partnership with Tata Cummins limited, the
largest engine manufacturer in India for an exclusive supply of Castrol manufactured and
TCL approved engine oil as factory fill. Taking forward the partnership both the companies
plan to and undertake joint-marketing activities aimed at common customers. They will
partner in the field of intensive customer care activities, joint marketing and working together
in Research and product development for newer engines.
The ITC’s E Chaupal model for agri produce procurement has revolutionized the
procurement process in some key states. Taking forward the same success they have decided
to convert 100 such Hubs into Retail Stores cum procurement centers. The products being
sold from this store ranges from apparels, white goods, footwear, agri inputs, FMCG goods
etc. Castrol India will be ITC’s partner in supplying the lubricant requirement of the retail
shelves.
Godrej Adhaar
Godrej Agrovet limited is in the process of setting up rural departmental stores aimed
at providing complete solutions to farmers ranging from Agri inputs to FMCG good to white
goods etc. They have already set up more than 12 stores across the country and have plans to
set up more than 500 stores in the coming years. Presently Castrol is the sole lubricant
supplier to this channel. Each store has more than 10000 unique footfalls in a year and has
more than 2500 loyal members. Apart from sales and enhanced rural distribution width, these
Adhaar outlets also provide us with a platform for consumer communication & brand
activation in media dark areas.
Castrol India has agreements with Reliance for supplies to their Company owned
Company operated and franchised fuel forecourts. Our partnership in this channel has
significantly increased our presence and visibility along the highways. This will also enable
us to do a number of joint marketing activities aiming at similar objectives.
Essar Oil Limited, and Castrol India Limited have an agreement for sale of Castrol
lubricants through Essar Oil Fuel outlets throughout the country.Essar pumps have s strong
brand equity among fuel forecourts and are fondly known as "Lal Pump". This agreement
will give the customers, access to Castrol lubricants at Essar outlets with the promise of
reliability, right price and good customer service. Essar Retail outlets are serviced by
authorized Castrol distributors only. It is especially beneficial to scooter owners, who hitherto
did not have access to Castrol lubricants at petrol forecourts. This tie up is uses the promotion
synergy of both companies, through highway promotion vans, mechanic and fleet owners'
meets to the mutual benefit of both companies.
Castrol also has alliances with other major manufacturers like Telcon, L&T John
Deere, L&T Komatsu Limited, Escorts Limited, Ford India Limited, LML Limited, L&T
Case Limited and Bajaj Auto Limited
Global Partners
Castrol is the main lubricants brand recommended by BMW for their 3,500-plus
dealerships worldwide. In addition, we source and market BMW-branded lubricants
wherever appropriate. The two companies also collaborate in after-sales service, to enhance
dealer service efficiency. From the customer's point of view, our agreement with BMW
delivers even better customer care in after-sales activities. Castrol partners the BMW
WilliamsF1 team as well as other BMW motorsports, such as sports cars, touring cars and, on
two wheels, BMW motorcycle racing in events including the famous Dakar Rally. We
provide technical assistance on the race track and in test programmes, and supply all
lubricants to the BMW WilliamsF1 team.
We have also been appointed as the worldwide strategic lubricants partner for Jaguar
Cars Ltd, Land Rover, Volvo Car Corporation, and Aston Martin.
History
In February 1899, Charles Cheers Wakefield took what was perhaps the greatest risk
of his working life: he resigned from the Vacuum Oil Company over a disagreement with the
management regarding Vacuum Oil's foray into the railroad lubricants sector, and set himself
up as competition. The firm he left behind would go on to become Mobil Oil. Wakefield
rented three small rooms on the third floor of 27 Cannon Street in the heart of London, and it
was there, on Thursday 9 March 1899, that the firm of C.C.Wakefield & Co opened its doors
for the first time.
Products
Castrol offers lubricants for virtually all domestic, commercial and industrial applications.
Some of the bigger, current product brands offered by Castrol include:
More specialist, less well-known or discontinued brands of note for cars include XL,
GTD, Formula RS, Synt and SLX. For motorcycles, they include TT, TTS, GP, GPS and Go!.
Castrol produce oils for the whole arena of automotive lubrication, including
motorcycle 2-stroke and 4-stroke engines, car petrol and diesel engines, an extensive range of
manual and automatic transmission fluids, chain lubricants and waxes, coolants, suspension
fluids, brake fluids, greases, cleaners and maintenance products. Castrol also produce
products for agricultural machinery, plant, general industry and marine engineering uses.
Sponsorship
Castrol is one of the most popular oils used in the Australian Touring Car/V8
Supercar series with Castrol as one of Ford Performance Racing's title sponsors. Castrol has
been sponsoring Perkins Engineering for many years, most of them as a title sponsor until
For the 2007 Formula 1 World Championship, Castrol also sponsor the Williams F1
Toyota team.
Castrol sponsored Swindon Town Football Club from 1995 to 1997. In the first
season of this two-year deal, Swindon were Division Two champions.
Castrol has recently began to sponsor a popular Nintendo podcast called Lithcast.
Speed records
Historically, Castrol has been a prolific sponsor of World Land Speed Records, with
21 "titles" to their credit, and their rightful claim of the "World's 'Fastest' Oil", with their
current unbroken record of a supersonic speed of 763.035 mph (1,228 km/h) set by RAF
fighter pilot Sqn Ldr (then) Andy Green, in the Richard Noble 'brainchild' ThrustSSC. This
occurred in the USA at the Black Rock Desert in Nevada, on 15 October 1997.
Advertising
Castrol products are still marketed under the red, white and green colour scheme
that dates from the launch of Castrol motor oil in 1909. Advertisements for Castrol oil
historically featured the slogan "Castrol - liquid engineering"; this was more recently
refreshed and reintroduced as "It's more than just oil. It's liquid engineering." In 2008, this
slogan is also being featured as the name for a new rewards club called the "Castrol Liquid
Engineering Crew" in which members get the chance to win prizes.
For many years the opening notes of the second Nachtmusik movement of
Mahler's Seventh Symphony were used as the signature theme of Castrol TV commercials.
CHAPTER
CHAPTER––III
III
3. Product Profile
7 Critical Engine Factors
WE LOVE MACHINES
Your car engine is the last thing you’ll want to be worrying about when you’re on
the road. Specially selected additives in Castrol EDGE manage the damaging effects of
the engine environment, controlling dirt, neutralizing acid and fighting oxidation.
This keeps the metal in your engine how it should be, solid and strong.
When Castrol EDGE is in your engine, the oil stays in prime condition – just the
way it should be, only for longer. This is how Castrol EDGE stretches to go the distance
for your machine, prolonging engine life.
Your car goes wherever you do, that's why it needs to withstand extreme
weather conditions. Castrol EDGE sees to that.
CLEANER ENGINE
Car engines that are clean inside last longer and run better. Catalysts and diesel
exhaust filters also work better when they’re clean.
This is why Castrol EDGE’s unique mix of detergents and dispersants keeps engine
parts cleaner and maintains your machine to its maximum.
POWER PROTECTION
You run your engine hard and for that reason, Castrol EDGE has been designed to
survive against the performance stresses you place on your car.
It fights power-robbing oil deterioration, giving your engine that extra protection it
needs when using full power.
FUEL ECONOMY
When you choose a better oil, you will subsequently use less fuel.
The Castrol EDGE range contains oils that have been specially designed to give fuel
economy savings while protecting the engine and keeping it running efficiently
THERMAL CONTROL
Castrol EDGE oils run cooler. Castrol EDGE reduces stress on the engine and
increases useful oil life, creating significantly less oxidation and deposits within the
engine.
We let your machine concentrate on what it does best – performing at its peak.
Castrol Magnatec
SEEK: Magnatec's Intelligent Molecules seek out and bond to critical engine
parts, providing active and continuous protection against engine wear where it's
needed most. Not only do the Intelligent Molecules work from the start, but they
also protect throughout the entire journey under all driving styles, conditions and
temperatures.
BOND: From the moment you turn the key, Magnatec's Intelligent Molecules are
ready and waiting with an active layer of protection. As your engine heats up, the
Intelligent Molecules become more active strengthening the protective layer to
safeguard the components that need it the most during stop-start driving.
PROTECT: As your engine gets hotter, other Intelligent Molecules are activated,
bonding to vulnerable areas and forming an extra layer of active and continuous
protection for driving on the open road.
GTX
Application
Recommended for use in all types of petrol cars
Consumer Benefits
Technology
GTD
APPROVED BY TATA MOTORS FOR USE IN ALL TATA DIESEL CARS AND
UTILITY VEHICLES
Application
Recommended for use in all Tata diesel cars and utility vehicles
Consumer Benefits
Technology
Support Recommended by Tata Motors – Passenger car division
Specifications API CF - 4
Motorcycles
Trizone Technology
Modern 4 stroke motorcycle engines are a miracle of technology with their compact
design and engineering. These engines typically operate at high speeds and generate a lot of
heat which lead to wear and tear of the engine. The ideal motorcycle lubricant has to be
designed very carefully to operate at optimum levels in three critical parts – From the engine
zone, need to combat the huge pressures of heat, compression and combustion deposits. From
the clutch zone, the need for the optimum balance between slip and grip. And from the
gearbox zone, the need to reduce wear and noise. To get the best performance from a
motorcycle it is essential for these three critical zones to perform in a synchronized manner.
Castrol has always been at the cutting edge of lubricants technology for automobiles
with world class products like Activ and Power1 for motorcycles. Castrol has now raised the
bar on motorcycle lubricants technology by introducing Trizone Technology across it’s range
of 4 stroke motorcycle oils. Trizone Technology provides the ultimate combined protection to
the three critical parts of the engine – the engine, the clutch and gear. Castrol Trizone
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Technology represents the state-of-the-art in motorcycle lubricant technology to help
motorcyclists get the most out of their vehicles.
Trizone technology has been developed by drawing on Castrol’s unique heritage, its
vast experience in countries around the globe and its experience gained from working with
several winning racing teams across the years. It harnesses Castrol’s cutting edge know how
in motorcycle engine oil technology, honed at the leading edge of speed and endurance
4 Stroke
Power 1
INCREASED POWER
Application
Recommended for use in all 4-stroke high performance
motorcycles of Bajaj, Hero Honda, Honda, Suzuki, TVS and all other
manufacturers
Consumer Benefits
Technology Support
Trizone Technology
Power Release Formula
Specifications
Part Synthetic
Meets API SL valve train wear performance and exceeds the requirements of JASO-
Ma2 standards.
Activ
CONTINUOUS PROTECTION
Consumer Benefits
Continuous Protection
Reduced Engine Wear
Longer Engine Life
Technology Support
Trizone Technology
APM Technology
Viscometrics
SAE 20W-40
Specifications
Meets API SL valve train wear performance and exceeds the requirements of JASO MA2
standards
Packs Available - 210 ltr, 50 ltr, 20 ltr, 1Ltr, 900 ml
Application
Recommended for use in all 4-stroke motorcycles and scooters.
Consumer
Benefits
Trouble Free ride
Viscometrics
SAE 20W-40
Specifications
Meets the requirements of API SG and JASO MA standards
2-Stroke
Power 1 JettX
INCREASED PICK UP
Application
Recommended for use in all high performance 2-stroke motorcycles
Consumer Benefits
Increased pickup
End Catalyst life
Low Exhaust Smoke
Technology Support
Enhanced Catalyst Protection
Specifications
Exceeds the requirements of JASO FC and API TC
Power 1 Super TT
INCREASED POWER
Application
Recommended for use in 2-stroke motorcycles
Consumer Benefits
Increased power
Faster pickup
Technology Support
Clean Burn Formula
Specifications
Exceeds the requirements of JASO FC and API TC Standards
2T
TROUBLEFREE RIDE
Application
Recommended for use in 2-stroke motorcycles and scooters
Consumer Benefits
Technology Support
Carbon Buster Formula
Specifications
Exceeds the requirements of JASO FC and API TC
Commercial Vehicles
Castrol offers range a of products for regular and turbo charged trucks
Castrol's DEO range includes Castrol CRB Range, RX range and Diesel range of products
Castrol is trucker's trusted companion for diesel engine oils (DEO)
Castrol DEO products are engineered to provide superior performance in diesel engines even
under most severe conditions
CRB Plus +
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CRB Turbo
RX Super Plus
RX Super Max
CRB Prima
CRB Prima Plus
RX Super Gas
RX Deusol Super
Diesel Oil CRD 30 Xtra
Diesel Oil CRD 40 Xtra
RX Super Max
Diesel Oil CRD 40 Xtra
RX Super Gas
Application
Castrol CRB Plus is a premium multigrade diesel engine oil recommended for use in all
naturally aspirated dies
Consumer Benefits
Technology Support
Syntech 4 Formula to handle stresses of modern engines & keep engine newer for longer
Viscosity
SAE 20W-40
Specifications
Exceeds the requirements of API CF4
CRB Turbo
Application
Castrol CRB Turbo is a premium mulitgrade diesel engine oil
specially formulated for Turbocharged Diesel Engines. Castrol CRB
Turbo with futuristic synthetic technology provides advanced engine protection
Consumer Benefits
Technology Support
Syntech 4 Formula to handle stresses of modern engines & keep engine newer for longer
Specifications
CRB Prima
Application
Recommended by Mahindra & Mahindra for use in all models of their
tractors except Arjun models
Specifications
Application
Recommended by Mahindra & Mahindra for use in Arjun tractor
models
Consumer Benefits
Technology Support
Perma Stick Molecules
Viscosity
SAE 15W-40
Specifications
Application
Recommended for use in High performance, Euro III diesel engines fitted
in trucks, buses, LCVs and MUVs
Consumer Benefits
Technology Support
Advanced heavy duty diesel engine oil for Euro III engines
Specifications
API CG-4/CH-4
MB-Approval 228.3
Cummins CES – 20071/20072
IS 13656: 2002 Type EDL – 7
RX Super Max
Application
Recommended engine oil for Tata vehicles fitted with Cummins
engines and Tata engines
Consumer Benefits
Specifications
API CF-4
IS 13656: 2002
Volvo VDS
MB-Approval 228.1
Packs available - 210 ltr, 50 ltr, 15 ltr, 8 ltr, 2.5 ltr, 1ltr
RX Super Gas
Application
Recommended for use in all gas engines (CNG / LPG) fitted in trucks,
buses, LCVs, Cars and other vehicles.
Consumer Benefits
Technology Support
Recommended by Tata Motors and Cummins for gas engines
Valve Train Protection Formula
Viscosity
SAE 15W-40
Specifications
API CF
CES 200074
Application
Recommended for use in naturally aspirated and turbo –
charged engines fitted on Ashok Leyland Trucks, Cummins drilling
rigs and Gensets
Consumer Benefits
High performance
Excellent engine protection
Low oil consumption
Low wear of all critical engine components
Technology Support
Wear Protection formula
Viscosity
SAE 20W-40
Specifications
API CF - 4
IS 13656:2002 TYPE EDL - 4
Application
Recommended for use in all types of naturally aspirated diesel engines
Consumer Benefits
15% reduction in engine oil top-up
Technology Support
Quality monograde engine oil with jelly seal technology
Viscosity
SAE 30
Specifications
API CF
Application
Recommended for use in all types of naturally aspirated diesel engines
Consumer Benefits
15% reduction in engine oil top-up
Technology Support
Quality monograde engine oil with jelly seal technology
Viscosity
SAE 40
Specifications
API CF, IS 13656:2002 Type EDL -2
Application
Recommended for use in all types of naturally aspirated diesel engines
Consumer Benefits
High quality oil for basic diesel engines
Viscosity SAE 30
Specifications API CF
Application
Recommended for use in all types of naturally aspirated diesel engines
Consumer Benefits
High quality oil for basic diesel engines
Specifications API CF
Application
Recommended for use in all types of naturally aspirated diesel engines
Consumer Benefits
High quality multigrade engine oil for basic diesel engines
Viscosity
SAE 20W-40
Specifications
API CF
Application
Recommended for use in all types of naturally aspirated diesel engines fitted in tractors
Consumer Benefits
High quality engine oil for tractors
Specifications API CF
Consumer Benefits
High quality monograde engine oil for basic diesel engines
Viscosity SAE 40
Application
Recommended for use in agricultural diesel pumpsets and other small
stationary diesel engines for industrial use.
Consumer Benefits
High quality monograde engine oil for basic diesel engines
Viscosity
SAE 40
Specifications
Meets performance requirements of IS: 13656
CHAPTER
CHAPTER––IV
IV
4. Financial Report
Quarterly results in brief (Rs crore)
Sep ' 08 Jun ' 08 Mar ' 08 Dec ' 07 Sep ' 07
Sales 639.50 707.80 570.00 557.92 508.31
Operating profit 91.70 126.50 113.40 81.91 83.00
Interest 0.70 0.70 1.30 0.13 0.70
Gross profit 98.00 135.00 124.00 92.88 90.89
EPS (Rs) 4.82 6.70 6.03 4.59 4.39
Quarterly results in details
Other income 7.00 9.20 11.90 11.10 8.59
Stock adjustment -48.30 13.00 -34.90 12.99 -2.07
Raw material 388.90 327.80 291.50 252.80 234.34
Employee expenses 25.20 28.20 21.90 25.52 24.89
Excise 81.40 86.40 77.10 82.93 77.20
Admin and selling expenses - 35.30 19.90 27.76 -
Other expenses 100.60 90.60 81.10 74.01 90.95
Depreciation 6.10 6.80 6.20 5.89 5.14
Taxation 32.30 45.40 43.30 30.23 31.53
Net profit / loss 59.60 82.80 74.50 56.76 54.22
Dec ' 07 Dec ' 06 Dec ' 05 Dec ' 04 Dec ' 03
Equity share capital 123.64 123.64 123.64 123.64 123.64
Reserves & surplus 306.54 294.02 266.42 236.43 224.44
Loan funds
Unsecured loans 2.79 2.79 2.79 3.72 4.20
Total 432.97 420.45 392.85 363.79 352.28
Uses of funds
Fixed assets
Gross block 249.04 246.88 248.75 249.79 246.99
Less : accumulated depreciation 130.73 121.94 116.25 104.68 79.58
Net block 118.31 124.94 132.50 145.11 167.41
Capital work-in-progress 14.95 4.74 5.83 4.66 3.60
Investments 20.58 42.52 108.14 128.91 84.79
Current assets, loans & advances 790.74 632.52 491.20 395.20 388.82
Less : current liabilities &
511.61 384.27 344.82 310.09 292.34
provisions
Total net current assets 279.13 248.25 146.38 85.11 96.48
Total 432.97 420.45 392.85 363.79 352.28
Book value of unquoted
20.28 42.20 107.84 128.59 84.46
investments
Market value of quoted
0.30 0.30 0.31 0.32 0.35
investments
Dec ' 07 Dec ' 06 Dec ' 05 Dec ' 04 Dec ' 03
Income:
Operating income 1,886.62 1,802.54 1,464.46 1,347.66 1,209.65
Expenses
Material consumed 1,096.67 1,161.27 845.31 778.19 670.49
Manufacturing expenses 61.23 73.69 69.01 59.57 59.07
Personnel expenses 90.40 70.22 67.55 65.41 65.02
Selling expenses 203.56 215.57 201.20 174.90 150.03
Adminstrative expenses 104.13 60.82 68.18 55.27 54.03
Cost of sales 1,555.99 1,581.57 1,251.25 1,133.34 998.64
Operating profit 330.63 220.97 213.21 214.32 211.01
Other recurring income 33.85 14.81 14.78 11.71 7.73
Adjusted PBDIT 364.48 235.78 227.99 226.03 218.74
Financial expenses 3.79 4.11 3.01 2.87 2.57
Depreciation 20.78 18.01 18.93 24.88 14.31
Adjusted PBT 339.91 213.66 206.05 198.28 201.86
Tax charges 121.94 83.14 67.69 67.83 66.98
Adjusted PAT 217.97 130.52 138.36 130.45 134.88
Non recurring items -0.07 18.58 4.58 -2.99 2.50
Reported net profit 218.43 154.49 146.81 127.46 137.38
Earnigs before appropriation 258.72 185.18 163.51 146.17 150.79
Equity dividend 173.10 111.28 102.01 102.01 102.01
Dividend tax 31.26 15.61 14.81 13.46 13.07
Retained earnings 54.36 58.29 46.69 30.70 35.71
Capital structure
(Rs crore)
Paid Up
From Class OfAuthorized Issued Paid UpPaid Up
To Year Shares
Year Share Capital Capital Face Value Capital
(Nos)
Equity
2007 2007 124.00 123.64 123640298 10 123.64
Share
Equity
2006 2006 124.00 123.64 123640298 10 123.64
Share
Equity
2005 2005 124.00 123.64 123640298 10 123.64
Share
Equity
2004 2004 124.00 123.64 123640298 10 123.64
Share
Equity
2003 2003 124.00 123.64 123640298 10 123.64
Share
Equity
2002 2002 124.00 123.64 123640298 10 123.64
Share
Equity
2001 2001 124.00 123.64 123640298 10 123.64
Share
Equity
2000 2000 124.00 123.50 123503456 10 123.50
Share
Equity
1998 1999 124.00 123.50 123503456 10 123.50
Share
Equity
1994 1998 62.00 61.75 61751728 10 61.75
Share
Equity
1993 1994 39.00 38.59 38594830 10 38.59
Share
Equity
1992 1993 39.00 19.30 19297415 10 19.30
Share
Equity
1991 1992 16.00 15.76 15759553 10 15.76
Share
Equity
1990 1991 10.00 9.85 9849721 10 9.85
Share
Equity
1988 1990 6.50 6.16 6156076 10 6.16
Share
Equity
1986 1988 6.50 5.09 5087600 10 5.09
Share
Equity
1985 1986 3.00 2.54 2543800 10 2.54
Share
Equity
1983 1985 2.00 1.50 1500000 10 1.50
Share
Equity
1981 1983 0.20 - 2 10
Share
Cash flow
(Rs crore)
Dec ' 07 Dec ' 06 Dec ' 05 Dec ' 04 Dec ' 03
Profit before tax 339.84 232.24 210.63 195.29 204.36
Net cashflow-operating activity 356.83 93.80 110.89 162.74 104.92
Net cash used in investing activity 13.14 75.99 19.48 -42.25 138.84
Netcash used in fin. activity -141.28 -120.42 -120.21 -118.58 -233.58
Net inc/dec in cash and equivlnt 228.69 49.37 10.16 1.91 10.18
Cash and equivalnt begin of year 89.22 39.85 29.69 27.78 17.60
Cash and equivalnt end of year 317.91 89.22 39.85 29.69 27.78
CHAPTER
CHAPTER––VV
5. Board of Director
Naveen Kshatriya
Managing director
CHAPTER
CHAPTER–VI
–VI
6. Social Responsibility
Castrol Drive for Safety
"The Castrol Drive for Safety initiative is aimed at addressing the rising levels of
concern on road safety violations and to make an effort to convert these concerns into
positive behavioral changes. It is Castrol India’s effort to bring about change in the attitude
and mindset of people. It involves propagating the message of road safety by working
collaboratively with various authorities and other like-minded corporates / citizens. In 2003
the project was run as a pilot in Mumbai city and focused on car drivers. In 2004, the project
is being extended to the capital city of Delhi.
The Castrol Drive for Safety project aims to communicate various road safety
messages but the key messages, especially in mass media, are around the use of seat belts and
mobile phones. The messages are spread through mass media and on-ground activities. The
on-ground activities aim to get the target audience involved in the project and to win their
“hearts and minds”. The activities in 2003 included theatre performances / street plays, safe
driving programme for college students and a ‘Policing your parents’ programme for school
children. As part of the Safe Driving programme for college students, Castrol invited an
international expert – Simo Lampinen of Finland, to share safe driving tips with the
participants.
Simo Lampinen is an ex world rally champion and runs a very successful advanced
driving school. Under the ‘Policing your parents’ programme, over 20,000 school children
were given road safety tips through a highly interesting an interactive programme. Quite
clearly, a programme of this magnitude cannot be run by a single organization. It is also
important to get the right partners – people and organizations interested in the cause. The
Castrol drive for Safety project in Mumbai had the support of various like-minded authorities
and organizations. These included:
The traffic police
The Mumbai Municipal Corporation
The Western India Automobile Association
partners including Autocar India, Radio Mirchi Afternoon Despatch & Courier and
Zee TV
The Rotary, Rotaract and Interact Clubs of Mumbai
Maruti Udyog Limited
Every individual touched by the Drive for Safety project was requested to sign a
pledge to reinforce his commitment to the cause. The pledge stated: “I care for my loved
ones. I care for myself. I care for Mumbai city. I will always drive safely. I support the
Castrol Drive for Safety”. In Mumbai, a total of 100,000 pledges were signed.
In recognition of the work done on the above project, Castrol India Limited
has received the following awards :
The IRTE-Prince Michael International Award for promoting the cause of Road Safety
The Dalton Pen Award for a press advertisement created as part of the Castrol Drive
for Safety campaign
Finalist at the Cannes International Advertising Festival for a press advertisement
created as part of the Castrol Drive for Safety Campaign.
As a part of Social Investment activities in 2003, Castrol India launched a drive for
safety programme aimed at propagating safe driving habits amongst car owners in the city of
Mumbai. The programme was then extended to Delhi in 2004. In both Mumbai and Delhi,
over 1 lakh people were contacted and they signed the pledge to drive safely.
Year 2005 saw two social investment projects which included restoration of education
supplies of flood effected children in Mumbai and providing livelihood to fishermen by
donating Boats in Tsunami affected areas of South India.
This project has impacted over 1000 people and helped them regain their self respect and
dignity. The project was completed on schedule in mid 2003.
Post the disaster, an NGO called United Way Mumbai brought to attention the need
for education aid in various schools in Mumbai, Navi Mumbai and Thane. Castrol India
immediately responded by involving in a project to provide for school stationery, uniforms,
etc for flood-affected children. These were distributed by the partner NGO to 6 schools and
16 slum communities in the flood affected areas. With the help of this project, Castrol India
restored educational supplies of over 3000 school children.
CHAPTER
CHAPTER–VII
–VII
CASTROL India Ltd, part of the Indian lubricants market for about three decades,
is still a neck ahead of all private sector competitors in terms of sales and brand recall. Mr
Ram Savoor, CEO and Managing Director, Castrol India Ltd, recently spoke to Bu siness
Line about the company's performance, strategies and plans after its takeover by BP Amoco.
Excerpts:
This year, we have not only been able curb our loss of volumes at three per cent,
compared to 15 per cent losses sustained by our competitors, we have also improved our
market share. Castrol's present network of shoppes and presence in the bazaar market is not
enough for setting up a strong retail backbone for selling products such as diesel and petrol.
It takes an investment of at least Rs 300 to 400 crore every year, to set up 100 petrol retail
outlets. We are not looking at such a spend. So unless there is a really big plan for substantial
investment in India, BP Amoco may not approach the Indian market directly.
The Government guidelines for entering petroleum products' retail trade are
prohibitive for private sector players. The Government has been asking that private players
put up bank guarantees of Rs 2,000 crore in the absence of equivalent investments in p
etroleum infrastructure.
The BP brand now has a new proposition. While Castrol caters to the high-end
customers, BP will look at the lower end segment. We will continue to have separate products
being sold under the CIL and BP brands. BP will sell to those customer pockets and a reas
that Castrol does not cater to.
As per our estimates, we hold 26 per cent of the consumer automotive segment. In
the industrial segment, where we cater top-end speciality oils such as cutting fluids and
engineering, we hold about 10 per cent. As for whether Castrol has suffered in the bazaar
market because of competition -- no, we have managed to hold volumes and at the same time
have gained 2.5 per cent market share over the last one year. To be honest, there are no
established methods to work out market shares in the lubes market because no one knows the
exact size of this market. Players look at their volumes and compare with those of their
competitors and give an estimate in specific se gments.
Castrol shutting two of its units over the last one year
We spend around five per cent of our earnings on advertising and promotions. Our
ad spend complements our position in the market. We have to let our customers know we are
present and hence the need for advertising and promotion. For example, a few years ago, we
dyed our product red. Now everyone has followed suit. As a matter of fact, one competitor
has actually announced the colour in its name as if it were a speciality of its product.
CHAPTER
CHAPTER–VIII
–VIII
Graph showing out of 100 respondents 95% of respondents are male and 5% of
the respondents are Female.
Graph showing out of 100% of the respondents , 45% of the respondents age are
below 18 years, 10% of the respondents are 18 to 30 years, 15% of the respondents are 30%
to 45 years and 30% of the respondents are 45 and above.
Graph showing out of 100% respondents, 8% of the respondents are Below SSLC,
10% of the respondents are PUC, 42% of the respondents are Graduation, 20% of the
respondents are Post graduation and others 10% means Nursing, Diploma etc..
Graph showing respondents using type of vehicle 20% of the respondents are using
Heavy vehicle, 35% of the vehicle are using two wheeler, 15% of the respondents are using
car 22% of the respondents are using Truck and others vehicle using are 8%.
Graph showing respondents are using Engine oil quality, 20% of the respondents
are using low quality of Engine oil, 30% of the respondents are using for brand Image. 10%
of the respondents are using company preferred engine oil, 40% of the respondents using
Others.
Graph showing respondents using engine oil Company name, 25% of the
respondents are using Castrol, 10% of the respondents are using Hp, 40% of the respondents
are using Indian Oil, 20% of the respondents are using Bp, 5% of the respondents are using
others brand.
Graph showing respondents using engine oil for vehicle reasons, 5% of the
respondents are using Increase Mileage, 22% of the respondents are using for Smooth riding,
35% of the respondents are using for Engine safety, 38% of the respondents are don’t know
the uses of engine oil.
Graph showing respondents using engine oil preferred. 13% of the respondents are
using Cheap Rate, 37% of the respondents are using Brand Name 45% of respondents are
using Company Preferred and 5% of the respondents are using others.
Table 11. Classification of the respondents on the basis of when engine oil
change
Graph
showing respondents when engine oil change, 10% of the respondents are change engine oil
depend on the oil life, 45% of the respondents are don’t know, 15% of the respondents are
company suggest time change the engine oil, and 30% of the respondents are change other
reason.
Table 12. Classification of the respondents on the basis of ads seen media.
Graph showing respondents are seen ads through which media 25% of the
respondents are seen from TV, 20% of the respondents are seen from Newspaper ads, 30% of
the respondents are seen form hoardings, 25% of the respondents are seen from Company
outlets
Graph showing respondents Castrol engine Oil using regularity 20% of the
respondents are using less than 6 months, 10% of the respondents are using last 1 year
Graph showing respondent’s opinion of Castrol Engine ads Campaign, 40% of the
respondents opinion average, 10% of the respondents opinion are Good, 30 % of the
respondents opinion very Good, 20% of the respondents opinion Excellent.
Graph showing non use respondents opinion of using Castrol Engine oil, 75% of
the respondents are ready to use, 25% of the respondents are not ready.
Graph showing non use respondents opinion of using Castrol Engine oil, 75% of
the respondents are ready to use, 25% of the respondents are not ready.
Graph showing non use respondents opinion of using trail use of Castrol Engine oil,
85% of the respondents are ready to use, 15% of the respondents are not ready.
CHAPTER
CHAPTER––IX
IX
BIBLIOGRAPHY
Books :
Principals of Marketing
– Philip Kotler
Marketing Management
– Philip Kotler
Web Sites:
www.castrol.com
www.castrolraceway.com
www.moneycontrol.com
Paper:
Economic Times
Business Line