Thursday, November 17, 2005

CASTROL's Repositioning Excercise

Changing Trends
  1. Indian consumers today are far more passionate about their cars and bikes
  2. They no longer look at their vehicles as a mere mode of transport but also want to maintain them well
  3. Caring for vehicles is becoming a priority for consumers
  4. People don't change brands easily, as they feel that by doing so, they are causing disservice to their vehicle
  5. rise in ownership value and pride in their car or bike, consumers are also careful about the brand of lubricant they use

Castrol's Financials: Turnover of around Rs 1,500 crore last year

Castrol's brand strategy: "It's more than just oil. It's liquid engineering."
The tagline `liquid engineering' talks about the inner strength of Castrol which enables the engine to perform better

Garage Owners to Masses


Media Agency: Ogilvy & Mather - Position Castrol as a brand that goes beyond other lubricant brands, and also brings out the emotional attachment people have towards their vehicles

Other Players: Most lubricant brands focus more on the vehicle, while we've tried to talk about the engine

Other Changes

  1. The brand also sports a new logo
  2. Invested in creating a new packaging for its products
  3. Previously there was not much synergy between the various packs. The packs containing truck oils looked different from the car oils. But now there is more synergy between the packs and they also bring out the brand's core proposition

Products: To fulfill the needs of a passionate biker or a car owner, the company has also rolled out a few specialised products such as Castrol Edge

Target Audience: ultra passionate consumer who wants the best for his car


Market Size: Lubricant market has registered a significant growth in value terms, but a fall in volumes. This is due to superior technology and the high-quality ingredients used in the lubricants. The market in value terms is growing by almost 7 per cent year-on-year

A truck driver who used to change the oil every 10,000 km will now do it once every 15,000 km

Promotional Campaigns

  1. Associating the brand with a lot of youth-based TV programmes such as MTV Youth Icon and Fame Gurukul on Sony
  2. Involved in a number of campus activities to promote its premium bike lubricant, Power One
  3. They sponsor rock concerts, 20:20 cricket matches and speed football
  4. They have tied up with cricketer Rahul Dravid and actor John Abraham to endorse the brand. But the initial campaigns will focus on the core proposition of the brand, which is liquid engineering

Hope Castrol will be able to realize value from the above excercise !!

3 Comments:

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February 17, 2007 2:24 AM  
Anonymous Anonymous said...

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February 23, 2007 8:33 AM  
Blogger dyutita said...

Lubricants market is getting heated up big time. There is another angle to why Castrol is repositioning its brand. The PSU's where lubes business used get a step motherly treatment is getting some attention now. reason: margins in fuel business is reduced due to governments restrictions. lubricants's pie in the company's profits are increasing. So they are attacking the market leader now. Castrol's repostioning maybe an answer to that. wht say?

August 20, 2007 1:09 AM  

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