Published by MBA Skool Team, Last Updated: December 18, 2017
Marketing Strategy of Castrol analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Castrol marketing mix, help the brand succeed in the market.
Castrol marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Castrol Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Castrol marketing strategy can be explained as follows:
Castrol is a leading brand which specialises in motor-oil for cars, trucks etc. Castrol engine oil, grease, dry lubricants, etc. are aimed at 2 wheeler, 4 wheeler, heavy automotive like Tractor and buses. The entire Castrol product portfolio in its marketing mix come with some variety that allows a customer to choose from a range of options. The biggest issue with Engine oil is the knowledge available with the potential customer and the existing customer. They don’t always make the best decision for the health of their vehicle’s engine. More than making customers aware about the brand, they need to be enlightened about the benefits of using a good engine oil that allows the engine to last a longer duration. Every category offered by Castrol is divided into the type of vehicle, viscosity of the oil and subsequent brands in the category.
Castrol Price/Pricing Strategy:
Below is the pricing strategy in Castrol marketing strategy:
As mentioned above, every product category of Castrol has different variations within them.
Each has a different offering and subsequently come in different sizes and quantities. Prices vary accordingly. For a more rugged use, for example a truck, would need a different sort of oil that keeps the engine smooth even on longer travel durations. For something like a Motorcycle less quantity of oil is needed. Prices therefore are not same and hence offers affordability through choices. The competition in this segment derives the prices. Castrol uses competitive pricing strategy in its marketing mix. The prices are not only determined by competition but also by market dynamics and forces which drive the oil and petroleum industry.
Castrol Place & Distribution Strategy:
Following is the distribution strategy in the Castrol marketing mix:
Castrol is a well renowned and trusted brand across India. A number of customer prefer Castrol over any other brand. This therefore leads to Castrol maintaining a brand presence across the country to serve its customer base. Distribution of Castrol depends heavily on the kind of traffic an area experiences or the number of vehicles that pass through a given area daily. A lot of consumer insight goes into deciding the right locations for a brand like Castrol.
Castrol serves its customers by placing their products at petrol pumps, Retail outlets, rural and agricultural dealers, etc.
Castrol Promotion & Advertising Strategy:
The promotional and advertising strategy in the Castrol marketing strategy is as follows:
Castrol makes use of its Urban and Rural network to market itself. A lot of direct marketing is also put into use to gain the trust of a vehicle owner that would potentially use the Castrol engine oil someday. Word of mouth is also impactful in various areas to attract customers to the point of sale. Otherwise, heavy investments are pushed into advertising and marketing through conventional means of Television, Radio, newspapers and especially automotive magazines that consist of relevant content. Castrol has tied up with ITC e-chaoupal, Reliance India and Godrej Adhar to connect with the right audience. Hence this concludes the marketing mix of Castrol.
Castrol is one of the leading car engine oil brand used in cars, trucks and other vehicles. Engine Oil market is a steady market which does not offer many thrills or jump scares to the players in it. The growth is steady and slow as customers turn into loyalist eventually. Also, a new entrant could take long duration to dig deep roots in the sector and compete with legacy brands neck to neck.
Castrol enjoys a market share of approximately 30% and is currently leading. There are enough competitors that exist in the market but legacy brands enjoy most of the profits.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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