Godrej Chotukool

GODREJ CHOTUKOOL

Q1 : - Asses the business case for chotukool. What are the critical success factors for this product to succeed.? ANS :

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Chotukool was a small refrigerator which was made for the rural India. The refrigerator was made in such a way that the refrigerator used to operate on 12-volt battery power and was priced at Rs3500.The refrigerator market in India was estimated at 40 billion. Despite of the fact that the refrigerator had immense utility, still the penetration level was below 18% for the urban market and 2% in the rural market which was very less in the rural market because of the factors like price, inadequate electric supply and size. Therefore the Godrej people came up with Chotukool – a cooling solution for mass markets. This refrigerator was small, not very expensive and did not use electricity for its operations ie they used Peltier cooling in the prototype. These were the critical success factors for Chotukool.

Q2:- What criteria should Godrej use to evaluate its strategy to launch chotukool.? Should Godrej invest in this business or not.? Ans:

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Innovations in design: Godrej should also try to bring more innovations in the design of chotukool. They can also make design more simple to handle. They should make use of new technology and can also incorporate solar power technique Advertising and distribution : Create awareness by door to door campaign. The distribution channel shoud always be reachable when the customer tries to approach. Chotukool requires demonstration which doesn’t happen So something must be done to solve this issue. Proper information should be provided to the rural segment Affordability : Price of Chotukool should not be increased .

Q3:- Is there a threat of quick imitation by competitors that Godrej should consider? If so how? Ans: 

Most of the rural residents considered a refrigerator a “luxury” item, and would not even think of buying the product. For many, the price of the product is just not affordable.

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While Chotukool is much cheaper than the lowest cost refrigerators in the market, the market feedback is that it still was not affordable to many of the rural residents. No there was no direct competition to chotukool, but there was threat that the traditional refrigerator manufacturers would bring same kind of low cost model of refrigerator reducing the existing price gap. Chotukools current price was just about 50 percent of the lowest cost refrigerator, unlike other classic disruptive innovations.There were other low cost alternatives such as Mitticool by Mr Mansukhani Prajapati which had a different functionality, custom value proposition and market segment , posing less of a direct immediate threat to chotukool. Mitticool requies No electricity, Price between 2500-3000, Two compartments and is Made out of clay. However, such innovations along with prospective low cost versions in the category of traditional refrigerators, posed a threat of potential substitutes eventually appearing in the market.

Q4:- What is your take on the simultaneous pursuits of two parallel business models in the same cooling industry (Mass market vs. Urban Market).? Does it entail any risk for the Godrej. ?

Ans: - ChotuKool is a product by Godrej & Boyce Manufacturing Company Limited, a Fast Moving Commercial Goods (FMCG). . 20 per cent of its business was done overseas with presence in more than 60 countries. . Chotukool was an unconventional cooling solution targeted at BOP segment. . Chotukool was an unconventional cooling solution targeted at the bottom of the pyramid (BOP) segment in India. . Chotukool was an unconventional cooling solution targeted at the bottom of the pyramid (BOP) segment in India. . Chotukool was an unconventional cooling solution targeted at the bottom of the pyramid (BOP) segment in India. The traditional refrigerators have the customers who use refrigerators at homes which were used for household needs and these customers mostly belong to urban areas. These traditional refrigerators where priced in the range of Rs7000-8000 . There is no risk involved in the two parallel business because the customers targeted are totally from a different background. The two markets targeted do not have links between them .

Q5:- How should Godrej pursue its strategy for chotukool? . What are its implications for brand and overall corporate strategy.?

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Innovations in design: Godrej should also try to bring more innovations in the design of chotukool. They can also make design more simple to handle. They should make use of new technology and can also incorporate solar power technique Advertising and distribution : Create awareness by door to door campaign. The distribution channel shoud always be reachable when the customer tries to approach. Chotukool requires demonstration which doesn’t happen So something must be done to solve this issue. Proper information should be provided to the rural segment Affordability : Price of Chotukool should not be increased . Godrej should invest in ChotuKool. This product will help in raising the standard of living of rural segment

Q6:- What challenge you envisage for Godrej in its journey of taking Chotukool to various geographical markets across the country.?

The challenges faced by godrej in its journey for taking ChotuKool for various geographical market across the country are as follows:     

To manage the transaction problems . issues related to advertising and distribution cultural differences, and usage patterns Price conscious. People less information about the product