The document discusses Castrol, a manufacturer and distributor of lubricants. It operates in over 40 countries and has over 7,000 employees worldwide. The document provides details on Castrol's business model, products, market share, customer segments, and introduces the Castrol Pitstop service format. It then discusses the concept of customer lifetime value (CLV), factors that affect CLV, and provides an example calculation of CLV for a sample Pitstop location.

1. Mansi Kakatkar – 113
Pramod Gaur
Pramod Patil
Swapnil N Phadke - 74
Rahul Dubey - 24

2. Fortune 500 list from Oil & Gas Industries
 Indian Oil
 Bharat Petroleum
 Hindustan Petroleum
 Reliance
 ONGC

3. Business Model
 Crude Oil Refine
 Product – Petrol ,Diesel , Oil
 By Products – Polyprine , Polithline,Petroleum
Naptha , Gasoline , Kerosene , Jet Fuel

4. Manufacturing Products

5. Lubricant
1%
Heavy Fuel Oil
4%
Other
Products
11%
Gasoline
48%
Diesel &Other
Fuel
27%
Jet Fuel
9%
Lubricant
Heavy Fuel Oil
Other Products
Gasoline
Diesel &Other Fuel
Jet Fuel
Manufacturing Products

7.  Manufacturer, Distributor ,Marketer of Premium
Lubricating Oil ,Greases
 Headquartered In UK
 Operates in 40 + countries
 7000 + employees Worldwide
 Delivery Network : 140 countries , 800 ports , 2000
distributor

8. Industry Segmentation
Automotive Lubricants
(4 Wheelers, 2 Wheelers, Trucks)
Non-Automotive Lubricants
Marine & Energy
Lubricants
Industrial
Lubricants

9. Gulf Oil
8%
HPCL
6%
MAK
13%
Shell
9%
Total
7%
Veedol
11%
Castrol
27%
Servo
19%
Gulf Oil
HPCL
MAK
Shell
Total
Veedol
Castrol
Servo
Market Share

10. By Brand
 Castrol GTX
 Castrol Magnatec
 Castrol EDGE
By Viscosity
 5 W 20
 15 W 40
 20 W 50
By Type
 Full Synthetic
 Part Synthetic
 Non Synthetic

11. Market Segmentation for Automobile Channel
 Petrol Stations
 Wholesale Distributors
 Lube Oil Shops
 Auto Spare Shops
 Authorised Service Stations
 Garages
 Rural & Agricultural Dealers
 Super Markets

12. Castrol Service Format

13. Castrol Service Format

14. Castrol PitstopCastrol

15. Castrol Pitstop
 Best In Class Express Service
 Value For Money
 Trustworthy
 Quality Assurance
 Genuine Castrol Products

16. Castrol Pitstop
 Best In Class Express Service
 Value For Money
 Trustworthy
 Quality Assurance
 Genuine Castrol Products

17. Lifetime Mobbilities Pvt Ltd
Location : Manpada , Thane West
Vehicle Space : 15
Service Time : 6 Hours
Services Offered :
• Engine Oil Change
• Brake ,Power Steering ,Battery Fluid & Coolant Change
• 20 Point Check
• Car Wash & Polish
• Wheel Alignment & Balancing

18. Understanding Our Customer Better
They can be :
 One Time Explorer
 Loyal Repeated Customer

19. Customer Lifetime Value
 It is a prediction of all the value a business will derive
from their entire relationship with a customer.
 The projected amount of revenue a customer will
generate over the lifetime of service centre

20. Need Of Customer Lifetime Value
Factors Affecting CLV :
 Lifespan Of A Vehicle
 Brand Of Vehicle
 Discount & Offering
 Locality

21. CLV Driving Forces
 Average Service Cost
 No of Customers & Visit Frequency
 Average Visit Per Year
 Service Profit Margin
 Capacity Of Service Center

22. Elements Of Customer Lifetime Value
Service Time : 6 hours
No Of Vehicles : 15
Annual Maintenance Cost : Rs 10000 – Rs 15000
(2 oil change and 3 service)
Oil Change & Service : Rs 4000 – Rs 8000
Churn Rate Calculation : Per Year Basis

23. Arriving At Customer Lifetime Value
Average Spend Per Account for Year :
Total Revenue Generated /
No of Unique Customer
Monthly Customer Churn Rate : No of churned customer /
Total No of Customer
Customer Lifetime Value : Avg spend per account for
year / Customer Churn Rate

24. Lets Simplify Customer Lifetime Value
Customer visit per year : 5400
15 cars X 30 days X 12 months
Unique Customer Per Year : 1350 customers
25 %
Total Revenue Per Year : Rs 2,02,50,000
1350 customers X 15000 AMC cost
No of Churned Customer : 1080 customers
20%

25. Customer Lifetime Value
Average Revenue Per Account : Total Revenue /
No of Unique Customer
= 2,02,50,000 / 1350 (Unique Customer)
= Rs 15,000 /-
Monthly Customer Churn Rate : No of churned customer /
Total No of Customer
= 1080 / 5400
= 0.20
Customer Lifetime Value : Avg spend per year /
Yearly Customer Churn Rate
= 15,000 / 0.20
= Rs 75,000 /-

26. CLV Based Model Benifits For PitStop
 Planning The Favorable Yearly Schemes
 Better Prediction Of Product Stocking & Labor
Management
 Understand Profitable as well as Common
Customer Characteristics
 Acquition as well Retention Cost for new & existing
customer

27. © BP Lubricants USA Inc. 2016