Castrol India Limited: An Innovative Distribution Channel

Case Solution

Renuka Kamath
Ivey Publishing ()

In January 2006, Castrol India Limited’s Managing Director of Sales was affected. Sales of Castrol motorcycle oil for four-stroke engines have been much lower than they should be, especially considering that each year five million motorcycles are added to the roads of India. Most motorcycle oil changes were carried out in franchise shops during the warranty period and in unlicensed shops after the warranty period has expired. The CEO wanted to increase sales of Castrol oil in the aftermarket and in non-franchise shops serving the growing aftermarket in India. Castrol India’s existing distributors were reluctant to sell to these segments which they considered low volume, costly and risky distribution channels. The CEO needed a sales strategy that would attract existing distributors and increase Castrol Oil India’s sales without increasing costs to the company.

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