There are various advantages in being present in both the markets but the marketing approach for the areas are different. More recently, Godrej redesigned and relaunched ChotuKool as a major consumer brand addressing more jobs-to-be-done. One objective of disruptive innovation is to remove barriers to consumption. Till the 1980s, players like Godrej, Kelvinator, Allwyn and Voltas controlled almost 90% of the market. Considering the product being aimed at the rural market with minimal penetration at the time of launch only 2% and having high annual growth rate 25% Chotukool is a promising product. Answer: Having a presence in both the markets is an advantage but having two parallel yet business models can be risky for any company. Developed expressly for the approximately 80% of Indians who lacked access to refrigeration a market Godrej had never before targeted , the chotuKool represented a technological marvel-a small, inexpensive thermoelectric appliance powered by a rechargeable battery.
Does it entail any risk for Godrej? Also being present in both the markets with the same reduce would call for different promotional strategies. For this they had to have key insights of the market. Outlanders channel: reading an reactive low cost Electrocuted channel In a new market was tough for Godard. This product was made keeping the rural folk and their needs in mind. What are implications of brand and overall corporate strategy? It was made according to the needs of the rural customers. What was the proper target and scope for the launch? This, in turn, means greater long-run returns for the firm. It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself.
Disruptive innovation, a term of art coined by Clayton Christensen, describes a process by which a product or service takes root initially In simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors. This calls for extensive and effective marketing strategies. Answer: The criteria that Chotukool should follow to evaluate its strategy of launching Chotukool should be: Pricing: Rural India is a different market. The study tracks Godrej's journey of disruptive innovations from the conception of the idea to the marketing challenges faced by the company. The idea for a low cost cooling solution has been there before with Mitticool. This can help in increasing the customer lifetime value.
Which strategy gave them the best chance of success? So, for the product to succeed the target segment must be convinced to pay the price for the product i. Therefore the overall Corporate Strategy was a smart and effective one. This also depends the climatic conditions and lifestyle of the area. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study. You should try to understand not only the organization but also the industry which the business operates in.
Implementation framework helps in weeding out non actionable recommendations, resulting in awesome Godrej Chotukool: A Cooling Solution for Mass Markets case study solution. Could chotuKool really redefine the company and bring refrigeration to hundreds of millions of Indians? You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry. Yet their daily life can significantly improve, if they can store some milk, daily vegetables and fruits without spoiling and get half a dozen bottles of cold water. Thus the requirements of all these segments should be kept in mind. From our experience, we learn that we can solve many of these problems through collaborations. The product design must be tweaked for different markets in India as some rural areas prefer more features and some less.
The situation changed after liberalization of the economy in the early 1990s. It offers cooling solutions at a very cheap rate i. Take a small break, grab a cup of coffee or whatever you like, go for a walk or just shoot some hoops. ChotuKool falls in to the business of refrigeration, to understand the business better let us understand the overall refrigeration business But before that lets looks at the consumer durable market, the consumer durable market consists of products from watches to fans. It could enhance shelf life and reduce waste while stored.
The product must be available and understood by the target market well. Godard and Boyce: Checkout Case study Question and Answers Q 1. It could become a symbolic example of an approach to address the larger issue of Inclusive Growth. The unconventional opening ensures cold air settles down in the cabinet to minimize air loss. This product was made keeping the rural folk and their needs in mind. It is priced between Rs 3250 and Rs3500 in the market.
But there are certain challenges which Godrej needs to keep in mind that may arise while it considers expanding its operations abroad. The market being untapped and having high potential for growth will certainly appear to be lucrative to the competitors with the risk of imitation even becoming larger if Chotukool receives a positive response. The study tracks Godrej's journey of disruptive innovations from the conception of the idea to the marketing challenges faced by the company. People needed an affordable way to keep milk, vegetables and leftovers cool for a day or two—both at home or away. With the help of the below mentioned data we can understand the penetration and reach of a consumer durable like refrigerator in comparison to a product like Television Set, car, bike or Grinder.