This document provides a case study analysis of Castrol India Limited (CIL). It discusses CIL's history and challenges in managing growth as the lubricant market in India became more competitive. Some key points:
- CIL was established in 1919 and is a subsidiary of British Petroleum (BP). It has faced increasing competition from other players in the lubricant market.
- One of CIL's challenges is transitioning from a growth phase to a sustaining growth phase as demand growth has slowed.
- The case analysis provides potential solutions for CIL such as exploring new products/markets, improving efficiency, and strengthening brand management. Market research methods like surveys and focus groups are recommended to understand brand switching
1. REPORT
ON
CASE STUDY OF CASTROL INDIA
Submitted to
Dr. Shailendra Kumar
By
Shashwat Shankar (IMB2018017)
2. Title:- Castrol India Limited: Managing in Challenging Times
Introduction
Company name: Castrol India Ltd. (CIL)
Company CEO: Naveen K. Kshatriya
Manufacturing type: Lubricant’s for automobiles
Year of establishment: 1919
Subsidiaries: BP (British Petroleum)
Buyer: all diesel engine automobiles
Budget type: Independent
Revenue status: Stabilized.
Summary
In the given contextual investigation about CASTROL INDIA LIMITED as a
concise history of the given case it's been expressed about the development of the
oils business (Petroleum Product) in the Indian Market after the advancement
arrangement of 1991, (as expressed since 1992). Preceding the advancement period
the Indian ointment and principally the oil based commodities showcase was
overwhelmed by the 3 noteworthy state run venture, specifically INDIAN OIL
CORPORATION Restricted (IOCL), BHARAT PETROLEUM CORPORATION
LIMITED(BPCL) and HINDUSTAN PETROLEUM CORPORATION LIMITED
(HPCL), these three had the significant offer i.e. up to 90% of the aggregate
market. In any case, the circumstance changed after 2004, as the offer of the over
three market investors dropped down and a noteworthy part with the passage of
CIL, had been assumed control by the later. In any case, with time separated from
the 4 noteworthy players in the advertise, numerous multinationals have likewise
assumed control over the piece of the pie, with the rise of as numerous as 40
advertise players. The development of the lubricant advertise both as for the
request and the rise of new market players, wherein the market has three
noteworthy areas AUTOMOTIVE, Modern and MARINE. The real offer of this
market are in the hands of the 4 noteworthy players specifically IOCL, BPCL,
HPCL and CIL, who hold among themselves 70% of the aggregate piece of the
overall industry and the rest 30% being battled about for by the major worldwide
players and in addition the 40 passages in India. In a concise history about CIL, its
known the CIL being an auxiliary of BP (UK based firm), while in the pre
3. progression period, it's real concern was on development, with the requests low
and the real offer among the main 3 i.e. IOCL, HPCL and BPCL, CIL wanted to
expand its market nearness for that it converged with Indrol Lubricants and
Specialties Ltd., which was changed over to a private constrained organization and
named as CIL in 1990. Throughout the years the stakes of the outside parent
organization (i.e. BP )in the CIL have risen from 40% to 71% in the middle of
1979 to 2007. Post 2000 in the wake of being procured by BP, CIL is the main
brand under BP, for the grease business part, BP chose CIL as it was known for its
exceedingly designed items. The firm post 1996 period have confronted a few
difficulties subsequent to seeing a development stage in 1991-1996 time, while
IOCL, BPCL, HPCL saw its offer reduce from 90% to beneath 65%, however all
the while CIL's offer saw an ascent from 6% to 20%. Be that as it may, post 1996,
CIL concentrated for the most part on proficiency instead of development As a
proportion of combination, CIL has started a few activities, for example,
computerization, add up to quality administration, adjusted scorecard execution
administration framework, working capital administration, and brand
administration. As a test in the present time for CIL is to prevail in an industry that
has advanced and influenced the change from the development to stage to the
development organize. The time of quick development in request joined by quick
extension in incomes and benefit is finished. The development in request has
backed off due to the variables, for example, climb in oil costs, presentation of
Euro II grumbling vehicles, and issues in the horticulture area. Rivalry has too
expanded. New contenders have entered the market – the MNC contenders - and
new strengthened open segment units (PSUs) are battling for piece of the overall
industry.
Problem Statement
It is a case study which is a rich case having vital, promoting, money related,
and control measurements. The focal point of this determination is on the
upgrade of the administration control framework in the light of the changing
focused condition of an endeavor.
The Company needs to lead an examination with respect to the conduct of
brand exchanging by the clients and needs to know the components which
manage them to change to Castrol from other brands and the other way
around.
4. One of the problems by the case analysis of the same was:-
The difficulties for the CIL as an association is to change the period of the
organization from development to development arrange.
Possible Solution
The difficulties for the CIL as an association is to change the period of the
organization from development to development arrange.
The key drivers to quantify the development alternative are
New Product-Same Market
Same Product-New Segment
Same Product-Same Segment
New Product-New Segment
New Product-Same Market: Launch another item with same property in the
coveted market.
Same Product-New Segment: Find another fragment which could pay
premium to the execution of the item
Same Product-Same Segment: Intensify Marketing push to expand grease
utilization through increment correspondence and circulation endeavors
New Product-New Segment: Identify new item focusing on new client base.
This is the situation of connected business examine and the organization
should receive engaging examination strategy as there is a pre -
characterized issue here to investigate. It has basically to decide the
purchasing aim of the clients. The fundamental variables which assume a
predominant part in it are-
Accessibility:-Keeping in mind the end goal to remain the significant
player of the market, the organization needs to guarantee the
accessibility of its item particularly for the agriculture segment. As the
oil costs are high, and interest for business vehicles is low, CIL needs
to oblige the necessities of the following best market which is the
agriculture market. This is an exceptionally conclusive variable
behind the "brand move". In the event that an item is accessible even
in the remote zones, it creates a feeling of trust and increases the
generosity of the brand. The item specified here is a vital one on the
off chance that we look with the viewpoint of farming as it assumes a
key part in transportation, stockpiling and warehousing of the rural
5. deliver. On the off chance that the accessibility isn't guaranteed then
the client is probably going to change over to some other brand since
it will be the last and alternative for him.
After deal benefit
Brand picture:- CIL is an old company with a substantial history. It
originated in the year 1919. In all these years the company has
become a familiar name in the household of the country. It has created
its image of a dependable brand and has scattered to the needs as per
the expectations. Hence, brand image is not such a problem for CIL to
look into.
Brand mindfulness
Cost: - This could be an issue factor for the Organization. As the
organization was gained by an outside company, it may have
expanded the cost of similar items which were being offered by the
Competitors at a lower cost. Besides the oil costs were expanded and
the request went down for the brand. In this situation, it must break
down the costs set up by the contenders and act as needs be. Swearing
off the net revenue for a shorter time frame or presentation of offers
could assist the brand with taking up its amusement.
One of the solutions provided buy the case analysis was:-
The either potential outcomes are finding the key execution index (KPIs)
Substitution Cost working Profit: These estimates utilized by association
whose market esteem is high in the market and have critical venture
Net Cash Flow is important for survival of association
Add up to Cost per liter: It is vital for generation of association
Overhead Costs: High overhead cost prompts addressing of utility of
association
Exploratory research methods:
This refers to “referring to secondary data to develop a new hypothesis”. The
data referred are – trade journals, professional journals, market research
finding publications, statistical data of past research ,publications etc.
In master overviews, it is alluring to converse with people who are all
around educated in the territory being examined. These individuals might be
organization officials or people outside the association. Here, no survey is
6. required. The approach embraced in an ordeal overview ought to be much
unstructured, so the respondent can give disparate perspectives. Since
utilizing encounter review is to attempt issue definition, and not end,
likelihood test require not be utilized. The individuals who can't talk
unreservedly ought to be avoided from the test.
Another broadly utilized strategy in exploratory research is the center
gathering. In a center gathering, a modest number of people are united to
consider the organization issues and take choice. The gathering ordinarily is
of 8-12 people. While choosing these people, mind must be taken to see that
they ought to have a typical foundation and have comparative encounters in
purchasing. This is required in light of the fact that there ought not to be a
contention among the gathering individuals on the regular issues that are
being talked about. Amid the exchange, future purchasing states of mind,
Introduce purchasing sentiment and so on are assembled.
Breaking down a chose case here and there gives knowledge into the issue
which is being examined. Case accounts of organizations which have
experienced a comparative circumstance might be accessible. These
contextual analyses are appropriate to do exploratory research. Be that as it
may, the consequence of examination of case chronicles circular segment
constantly thought to be suggestive, instead of indisputable. If there should
arise an occurrence of inclination to "prepared to eat nourishment", many
case narratives might be accessible as past investigations made by
contenders. We should painstakingly analyze the as of now distributed
contextual investigations as to different factors, for example, value, ad,
changes in the taste, and so forth.
Blue-Print of the Research Programmers-
Distinguishing proof of clients (Old markets and the new markets)
Choice of variable utilized for estimation of brand move
Determination of Data Collection Technique (Survey and Focus Group)
Planning of poll
Contacting client, directing studies and gathering input
Preparation of database of client (for longitudinal examination)
Reviewing individuals over timeframe to quantify client maintenance and
brand move and imparted to the organization
7. Customer survey ought to be readied and purchaser ought to be explored, studied
(longitudinal investigation) and their criticism ought to be broke down to quantify
the mark move. Study cum Feedback can be of three sort i.e.
Telephonic
Face to Face
Online Survey.
Poll ought to be set up so that it essentially targets variable identified with
estimation of procurement plan, unwaveringness and fulfillment over a time of
time. For old client; Retention technique ought to be utilized to analyze mark move
and
Review will give information about new client
Conclusion:-
CIL goal to wind up pioneer in the lubricant business might be accomplished by
going into new market, advancement, esteem association, successful cost and
execution administration. It is critical to oversee connection between various levels
of worker and managers, clients and channel accomplices.
Once a client, always a client. On the off chance that the organization wants to
understand the above proclamation for genuine it must investigate the after sales
services provided by it and furthermore should catch up the activities which are
being finished by contenders. Periodical evaluation of a current client and the item
is very fundamental.
Subsequent to looking into the expressed factors, the organization can go onto the
second phase of its examination i.e. the exploration identified with direct factors.
In the said case, climate, offer of business vehicles, offer of individual vehicles
could be dealt with as the direct factors. For this the organization needs to go for
field work and information arrangement. It would assist it with realizing the figures
of the product offering which the contender is managing in. On that premise,
investigation of the gathered information can prompt an adjustment in the creation
example of the organization.