How Castrol Increase Market Share : Good Begining is half done
Posted 12-17-2009 at 08:50 AM by ichkoguy
Managing data is the most important aspect for a business to flourish and even a layman has knowledge of that. Indian business organizations have been quiet pro when it has come to the managing of data. Whenever it has come to cracking the rural code, Indian marketers have ignored this very important facet, but then again some have been very keen with this aspect. We can thank Castrol India Ltd. for taking this one vigilant step in the year 2009 and gaining back a majority of market share for from the competition.
To achieve this Castrol along with Linterland embarked on a journey to educate its potential customer on advantages of Castrol CRB, the reason being the launch of a new synthetic technology in the engine oil with a motive to take the brand `s market share to new heights .But due to change in the vehicle technology and the market for diesel engine oil market getting fragmented into new generation vehicles, the brand had started losing its sheen.
Moreover Castrol CRB plus consumers,”Synthetic “was an unknown technology. The one context in which they understand the term synthetic is possible in the arena of synthetic clothes versus cotton clothes said an executive from Linterland.
But then it’s a known fact that a fellow successful farmer is the biggest influencer in the village and acts as agricultural specialists for other farmers. This also creates a hunger for first hand information about modern farming techniques amongst other farmers. One of the examples for this is the high unawareness right tillage techniques in farming.
Based on this insight, an Agriculture Modernization programme for tractor owners was created by Castrol to educate farmers on appropriate tilling techniques for a better yield besides making them aware that by using CRB plus they can enhance the life of a tractor. But identification of core consumer, prioritizing and mapping markets turned out to be the key campaign designing challenges for Castrol and Linterland. Certainly non availability of tractor owner’s data at village level was a big challenge for village selection.
But like they say where there is a will there is a way. Company’s sales data was used to prioritize states. Using Lincompass, a Castrol Market Potential Index (cmpi) was developed for this selection of most potential districts in priority states. Then to create CMPI for the district, a multivariate correlation analysis was done to understand the brand sales affinity with 256 socio economic parameters. Out of 432, top 110 districts (contributing 56 percent of total sales and 61 per cent of tractor owner’s winner) were then selected for the campaign. Result: A 94 percent accuracy level was achieved in estimating the number of tractor owners per village. What’s more? An immediate impact was observed in the campaign areas 18 percent in company’s incremental sales (as per company’s local dealer sales report).
To achieve this Castrol along with Linterland embarked on a journey to educate its potential customer on advantages of Castrol CRB, the reason being the launch of a new synthetic technology in the engine oil with a motive to take the brand `s market share to new heights .But due to change in the vehicle technology and the market for diesel engine oil market getting fragmented into new generation vehicles, the brand had started losing its sheen.
Moreover Castrol CRB plus consumers,”Synthetic “was an unknown technology. The one context in which they understand the term synthetic is possible in the arena of synthetic clothes versus cotton clothes said an executive from Linterland.
But then it’s a known fact that a fellow successful farmer is the biggest influencer in the village and acts as agricultural specialists for other farmers. This also creates a hunger for first hand information about modern farming techniques amongst other farmers. One of the examples for this is the high unawareness right tillage techniques in farming.
Based on this insight, an Agriculture Modernization programme for tractor owners was created by Castrol to educate farmers on appropriate tilling techniques for a better yield besides making them aware that by using CRB plus they can enhance the life of a tractor. But identification of core consumer, prioritizing and mapping markets turned out to be the key campaign designing challenges for Castrol and Linterland. Certainly non availability of tractor owner’s data at village level was a big challenge for village selection.
But like they say where there is a will there is a way. Company’s sales data was used to prioritize states. Using Lincompass, a Castrol Market Potential Index (cmpi) was developed for this selection of most potential districts in priority states. Then to create CMPI for the district, a multivariate correlation analysis was done to understand the brand sales affinity with 256 socio economic parameters. Out of 432, top 110 districts (contributing 56 percent of total sales and 61 per cent of tractor owner’s winner) were then selected for the campaign. Result: A 94 percent accuracy level was achieved in estimating the number of tractor owners per village. What’s more? An immediate impact was observed in the campaign areas 18 percent in company’s incremental sales (as per company’s local dealer sales report).
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