Developing a customer value proposition with MLCV servicing mechanics for a large automobile lubricant company​​

THE CHALLENGE

  • The popularity and demand surge for MLCVs have led to a rise in specialized workshops, unlocking potential growth areas​
  • Client wanted to understand MLCV workshop operations for fostering beneficial partnerships and to expand their service network which may include dedicated MLCV workshops to strengthen their market position

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The Ask

 

  • Increase our client’s overall market presence in the MLCV segment by focusing on MLCV workshops as a new sales channel​
  • Strategize to acquire new independent MLCV workshops, aiming at the creation of a branded workshop network to enhance traffic, efficiency, and profitability​
  • Work on increasing Castrol’s share in MLCV workshops currently selling their products by introducing value-added offers​
  • Develop a plan to build mechanic advocacy—possibly through programs for skill enhancement and community building​

MOMENTS OF TRUTH

 

  • Mechanics come from the financially weaker section of the society and most enter the profession due to a low entry barrier. Few within this set show a passion for this profession ​
  • They have the drive and want to expand their business; in terms of having one more garage / acquiring more space / servicing more vehicles / expanding their knowledge [mainly BS6 and EVs] / branch out to other type of work like denting, painting​
  • Oil change followed by brake and clutch repair provide maximum Earnings, while engine work attracts high labour cost but lose out due to lack of manpower ​
  • The location of the workshop is crucial as it significantly influences customer footfall and business growth​
  • Barriers to not stocking engine oil are mostly finance and space​
  • Reasons to stock are discounts and higher margins on bulk and it is on credit​
  • Saves time [mechanic and customer], effort and money as the product is readily available in the garage​
  • Despite company workshops having all the technology and comfort, the customer prefers to service his vehicle in a local workshop post warranty period; price being the key factor and also because of his relationship with the mechanic /owner​
  • The key challenges faced by owners today are that of scarcity of labour, lack of finance and knowledge to update themselves ​

The Approach

  • We met owners of MLCV workshops in-depth analysis of personal experiences and motivations, enabling a deeper understanding of behavioral drivers​
  • In-shop observations and interviews, present an opportunity to comprehend the actual on-ground practices, enabling us to see beyond the stated responses