Strategy of godrej

1. GODREJ CHOTUKOOL :
A cooling solution for
mass markets
Submitted By: Section B Grp
Diksha Mahajan 14P
Nidhi Kumar 14P091
Pranati Goswami14P092
Shweta Agarwal14P109
Pallavi Mishra14P112
Varun Dave 14P118

2. Indian rural markets are ideal
for disruptive innovation:
•Customer requirements lower
than established products
•Low end disruption targeting
the least profitable customer
In rural
areas
Chotukool entry
40
250
Market size(in bn Rs.)
Refrigerator
s
Consumer
durables
•Low penetration in rural areas (2%)
•High growth expected in the rural
segment (25%)
Disruptive innovation in Indian market

3. Disruptive innovation model

4. IDEA GENERATION
•Workshop by Prof
Christensen
•Idea generation by 30
Godrej participants
•4 ideas including
Chotukool selected for
pilot
VOC (Field Studies)
•Daily grocery purchases and
no requirement for storing
milk
•Space constraints
•Load shedding
•Price should be around
Rs.2500
•Low maintenance
•Aspirational product
TECHNOLOGY
ASSESMENT
•“PELTIER Cooling”
•Can run on battery or
inverter
•Less moving parts
PROTOTYPE
DEVELOPMENT
VALUE IN USE
The product could be used
for commercial purposes;
roadside kiosks, grocery
stores etc.
Development of Chotukool

5. Low Cost
• Low capex in manufacturing capacity; low capacity
• 20 parts; savings in labor and material cost
Size
• Compact model ; open top design
• 1.5 feet tall and 2 feet wide; 7.8 kgs
• Capacity of 30 lts. and 45 lts.
Load
shedding
• Ran on 12V DC; could run on battery power or inverter
• Good quality insulation to maintain temperature during power cuts
Easy
maintenance
• Highly portable
• Less no. of moving parts have lesser chances of failure
Solutions offered

6. Challenges
Lack of infrastructure
Competition from unorganized
retailers
Customers partial to unorganized
sector for purchases
Relationship marketing
Solutions
Use of micro-distributors in the form of
rural entrepreneurs
Use SHGs and NGOs for distribution and
training of rural sales force
Implement social entrepreneurship
model
Tie up with microfinance institutions for
loans and recoveries
Distribution Model

7. The way ahead
Price point?
Higher price increases
threat of substitutes
Lower price may still
not increase sales
Scalability
Recovery of money
Reaching non
customers
Microfinance models
Market diversity
Heterogeneous
consumers and
climates
Segmentation
Urban vs. rural
market
Niche uses for urban
markets like wine
chillers
Uptake can be increased by promotions
and attractive financing options
Use of relationship marketing to build
brand awareness
Price to be maintained at the same
level
SHGs can help with the recovery
of money
Product design cannot be
changed a lot as it may lead to
cost increases
Sales pitch to vary according to
consumer requirements
Small urban market; greater
threat of substitutes ; less price
sensitive consumers
Better competitive advantage in
the rural markets

8. THANK YOU