GODREJ CHOTUKOOL : A cooling solution for

mass marketsSubmitted By: Section B Grp

Diksha Mahajan 14PNidhi Kumar 14P091

Pranati Goswami14P092Shweta Agarwal14P109Pallavi Mishra14P112Varun Dave 14P118

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.)

Refriger-ators

• Low penetration in rural areas (2%)• High growth expected in the rural

segment (25%)

Disruptive innovation in Indian market

Disruptive innovation model

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 USEThe product could be used for commercial purposes; roadside kiosks, grocery

stores etc.

Development of Chotukool

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

ChallengesLack of infrastructure

Competition from unorganized retailers

Customers partial to unorganized sector for purchases

Relationship marketing

SolutionsUse of micro-distributors in the

form of rural entrepreneursUse SHGs and NGOs for

distribution and training of rural sales force

Implement social entrepreneurship modelTie up with microfinance institutions for loans and

recoveries

Distribution Model

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 optionsUse of relationship marketing to build brand awarenessPrice 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 increasesSales pitch to vary according to

consumer requirements

Small urban market; greater threat of substitutes ; less price

sensitive consumersBetter competitive advantage in

the rural markets

THANK YOU