Question 4C: Step 1: In exhibit 12, the data on the total number of outlets is given against each distribution channel (Refer to the column named outlet universe). You need to calculate the sales per channel outlet (for the four-stroke oil market). For each channel, find out the sales (in litre) per outlet universe for the four-stroke oil market industry (for the year 2005).

Question 4D: Step 2: Sales per channel outlet (for Castrol): For each channel, find out Castrols four-stroke oil sales (in litre) per outlet selling Castrol oil (2005) (Hint: In exhibit 12, the number of outlets selling Castrols four-stroke oil is given in the column named Outlet Selling Castrol Oil.)

Question 4E: In 2005, find out for which channel(s) is the sales (in litre) per channel outlet (for the four-stroke oil market) significantly greater than the sales (in litre) per channel outlet (for Castrol). (2 marks)

Question 4F: Based on these key metrics, determine the area(s) where Castrol is facing a problem(s).

EXHIBIT 11: MARKET POTENTIAL FORECAST OF FOUR-STROKE OILS IN INDIA Channel Four-Stroke Oil Market in 2005 (in millions of litres) Four-stroke Oil Market Potential in 2010 (in millions of litres) CAGR % Franchised Workshops 30 65 17 After Market: Spare Part Outlets 22 90 33 Oil Shops 16 25 9 Non-Franchised Workshops 8 30 30 Total 76 210 23 EXHIBIT 12: MARKET COVERAGE OF CASTROL'S FOUR-STROKE OIL IN INDIA, 2005 Channel Outlet Universe Outlets Selling Castrol Oil Four-Stroke Castrol's Oil Market Four-Stroke Potential in Coverage (%) Oil Sales 2005 (in million of (in millions of litres) litres) Potential Tapped Franchised Workshops 4,500 665 14.8 30 3.54 11.8 After Market: Spare Part Outlets 38,000 6,235 16.4 22 3.6 16.4 Oil Shops 14,500 4,411 30.4 16 3.9 24.4 Non-Franchised Workshops 20,000 1,267 6.3 8 0.85 10.6 Total 77,000 12,578 N/A 76 11.89 N/A EXHIBIT 13: CASTROL INDIA'S CHANNEL EVALUATION-CURRENT VERSUS FUTURE SHARES Channel Four-Stroke Oil Sales in 2005 (in million of litres) Channel Share (2005) % Projected Four- Stroke Oil Sales in 2010 (in millions of litres) Channel Share (2010) % Franchised Workshops 3.54 29.8 11 17.5 After Market: Spare Parts Outlets 3.6 30.3 24 38.1 3.9 32.8 13 20.6 Oil Shops Non- Franchised Workshops 0.85 7.1 15 23.8 Total 11.89 100 63 100 EXHIBIT 11: MARKET POTENTIAL FORECAST OF FOUR-STROKE OILS IN INDIA Channel Four-Stroke Oil Market in 2005 (in millions of litres) Four-stroke Oil Market Potential in 2010 (in millions of litres) CAGR % Franchised Workshops 30 65 17 After Market: Spare Part Outlets 22 90 33 Oil Shops 16 25 9 Non-Franchised Workshops 8 30 30 Total 76 210 23 EXHIBIT 12: MARKET COVERAGE OF CASTROL'S FOUR-STROKE OIL IN INDIA, 2005 Channel Outlet Universe Outlets Selling Castrol Oil Four-Stroke Castrol's Oil Market Four-Stroke Potential in Coverage (%) Oil Sales 2005 (in million of (in millions of litres) litres) Potential Tapped Franchised Workshops 4,500 665 14.8 30 3.54 11.8 After Market: Spare Part Outlets 38,000 6,235 16.4 22 3.6 16.4 Oil Shops 14,500 4,411 30.4 16 3.9 24.4 Non-Franchised Workshops 20,000 1,267 6.3 8 0.85 10.6 Total 77,000 12,578 N/A 76 11.89 N/A EXHIBIT 13: CASTROL INDIA'S CHANNEL EVALUATION-CURRENT VERSUS FUTURE SHARES Channel Four-Stroke Oil Sales in 2005 (in million of litres) Channel Share (2005) % Projected Four- Stroke Oil Sales in 2010 (in millions of litres) Channel Share (2010) % Franchised Workshops 3.54 29.8 11 17.5 After Market: Spare Parts Outlets 3.6 30.3 24 38.1 3.9 32.8 13 20.6 Oil Shops Non- Franchised Workshops 0.85 7.1 15 23.8 Total 11.89 100 63 100