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Castrol India Limited: An Innovative Distribution Channel
內容大綱
In January 2006, the general manager of sales at Castrol India Limited was concerned. Sales of Castrol motorcycle oil for four-stroke engines was far less than it should be, especially when considering the five million motorcycles being added to Indian roads each year. Most motorcycle oil changes took place in franchised workshops during the warranty period and in non-franchised workshops after the warranty period. The general manager wanted to increase the sales of Castrol oil in the spare parts shops and non-franchised workshops that serviced India’s growing after-market. Castrol India’s existing distributors were reluctant to sell to those segments, which they viewed as low-volume, high-cost, and risky distribution channels. The general manager needed a distribution strategy that would appeal to the existing distributors and boost Castrol Oil India’s sales without increasing costs to the company.
學習目標
This case is suitable for core MBA marketing management courses or core marketing courses in an executive MBA program to further students’ understanding of the importance of distribution. The case can also be used to highlight the challenges faced by a market leader when being innovative within its current structure and distribution strategy. The case is also suitable for elective courses on channel management. No prior understanding of distribution channels is needed to appreciate the key concepts in the case. After completion of this case, students will be able to<br><ul><li>recommend strategies for market development and penetration, when the company is a market leader;</li><li>design and plan an innovative distribution strategy to reach a new sales channel without increasing distribution costs to the company;</li><li>understand the nuances of implementation methods and related issues; and</li><br><li>manage distribution channel conflicts and any associated outcomes.</li></ul>