The Hindu Business Line : Castrol shifts gears

AROUND one million cars and 50 million bikes were sold last year in India, now regarded as one of the fastest growing car markets in the world and the second largest bike market.

Going by analysts' views, Indian consumers today are far more passionate about their cars and bikes. They no longer look at their vehicles as a mere mode of transport but also want to maintain them well.

This has propelled lubricant brands such as Castrol to invest in a complete overhaul of brand positioning. The company recently kicked off its new brand strategy that says, "It's more than just oil. It's liquid engineering."

Navin Kshatriya, Managing Director, Castrol India, says that as caring for vehicles is becoming a priority for consumers, the company decided to focus on the well-being of the vehicle instead of drawing a correlation between the vehicle and life, which most lubricant brands do. "The tagline `liquid engineering' talks about the inner strength of Castrol which enables the engine to perform better. It is about how the specialist molecules of Castrol help in increasing the performance of the engine, by keeping the compression up, reducing the sludge and so on."

"The various ingredients of the oil address various aspects of an engine. Therefore, it's not just oil," says Kshatriya.

Abhijeet Awasthi, Creative Director, Ogilvy & Mather (the agency which handles the Castrol account), says the idea was to position Castrol as a brand that goes beyond other lubricant brands, and also brings out the emotional attachment people have towards their vehicles. "Most lubricant brands focus more on the vehicle, while we've tried to talk about the engine."

The brand also sports a new logo and has invested in creating a new packaging for its products. Awasthi says that 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."

To cater to the needs of a passionate biker or a car owner, the company has also rolled out a few specialised products such as Castrol Edge, which according to Sudhanshu Vats, Vice-President (Marketing), Castrol, "is meant for the ultra passionate consumer who wants the best for his car."

Brand consciousness

How brand-conscious are Indian consumers when it comes to buying a lubricant? Kshatriya says the brand consciousness was always there and is growing each day. "People don't change brands easily, as they feel that by doing so, they are causing disservice to their vehicle."

An industry observer says the lubricant market a few years ago was highly commoditised. However, with the rise in ownership value and pride in their car or bike, consumers are also careful about the brand of lubricant they use. "This increase in passion has created a need for the lubricant brands to invest in brand building."

Yogendra Pratap, Editor of auto magazine Overdrive, says Castrol's focus on technology as a selling point comes at a time when performance culture is getting into India. "The brand has undergone a much needed makeover at a time when Indian consumers are getting conscious about lubricants."

The market

Kshatriya says the lubricant market has registered a significant growth in value terms, but a fall in volumes. He attributes this fall to the superior technology and the high-quality ingredients used in the lubricants. "These products are able to withstand the rigours more effectively. Moreover, the quality of engines today is far superior to what it was earlier. For instance, a truck driver who used to change the oil every 10,000 km will now do it once every 15,000 km."

The market in value terms is growing by almost 7 per cent year-on-year. Kshatriya says this is due to the specialist oils that have been launched at a premium.

Youth-driven

From a brand that addressed a focussed market such as those driving automobiles or those associated with the industry such as garage owners, the brand is now associating itself with speed and has started addressing the general mass, especially the youth. "We were also choosy about the channels we advertised on," says Kshatriya.

"But now, Castrol is all about speed and excitement. We have, therefore, started associating the brand with a lot of youth-based TV programmes such as MTV Youth Icon and Fame Gurukul on Sony," adds Vats.

The company is also involved in a number of campus activities to promote its premium bike lubricant, Power One. "We sponsor rock concerts, 20:20 cricket matches and speed football," says Vats.

The company has also 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," says Vats.

The company registered a turnover of around Rs 1,500 crore last year. Kshatriya hopes that its new brand strategy will ensure considerable growth in the coming fiscal. With the automobile market booming in India, and the number of diehard bikers and passionate car owners on the rise, Kshatriya hopes that Castrol'spositioning will engineer phenomenal sales.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
It destroys turned

The business of hospitality

Castrol shifts gears

On the horns of a dilemma

'India vital part of our jigsaw'

AAAI symposium

Customers teach, simply by being themselves