Responding to a changing marketing environment
A Castrol case study

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Page 5: A constantly evolving product portfolio

The challenge facing Castrol today is to provide the right products in the right markets.

Castrol is therefore continually adjusting its product portfolioin line with new technological developments. This is best illustrated by means of a number of examples.

Increased emphasis on synthetic oils

Everyone knows that oils have a mineral base and that crude oil is extracted from the ground or from under the sea. However, modern high performance engine oils have an important synthetic content i.e. additional ingredients that improve performance.

High quality oils involve increasing quantities of man made ingredients rather than crude content. The proportion of high quality additives is continually increasing and Castrol is at the leading edge of this development because of its emphasis on research into new technology. Castrol provides the best possible solutions to meet the needs of different market segments.

New oils at Castrol are technology-driven

In the past the emphasis was on developing oils that protected vehicle engines. Today Castrol focuses on bringing to market products that improve engine performance and lengthen the life of the engine.

By pioneering new technology even at the molecular level, Castrol has introduced a new generation of engine protection. For example, GTX Magnatec uses 'Unique Molecular Attraction' or UMA technology. UMA molecules are attracted to the metal surfaces of the engine and form a protective layer. This protective layer means that Magnatec starts protecting as soon as the engine starts from cold and continues to protect while the engine warms up. There are products also specifically designed for diesel engines, such as GTD Magnatec as well as engines with high mileages (75,000 miles) such as GTX High Mileage.

Research into emissions

Castrol is also proud of its research into environmental solutions. The company invests heavily into producing oils that reduce harmful emissions through fuel economy technology.

Products fit for purpose

Castrol provides a full range of product SKUs, i.e. an item that you would see for sale on a store shelf. For example, Castrol GTX Magnatec comes in a 4.5 litre bottle that is used for a complete oil change by a specialist garage, as well as a 1 litre bottle which enables knowledgeable motorists to 'top up' their engine oil as required.

In line with market changes, Castrol has not only focused on updating the product portfolio, but also the way the organisation goes to market, i.e. the commercial strategy. To offer better products to consumers, it is important that Castrol becomes more marketing driven, i.e. that it creates product offerings that meet the needs and desires of consumers.

To do this, Castrol has recruited marketeers from traditional FMCG companies to bring different perspectives and ways of working. For example, the gathering of 'Consumer Market Research' from which 'Customer and Consumer Insights' can be derived.

This helps an organisation get closer to consumers and understand the unique needs and desires across different geographies and cultures. Castrol wants to ensure that everything the company does is tailored to meeting the needs of its many types of consumers across the globe.

Castrol | Responding to a changing marketing environment