GODREJ

CHOTU
KOOL

PRESENTED BY,
DILIP
SUDHIN
SRIRAM
INTRODUCTION
In 1897 a young man named Ardeshir Godrej gave
up law and turned to lock-making
Today, they have 15 diverse business divisions
offering consumer, office, and industrial products
and services of the highest quality to every corner
of India and across the globe.
80% families in India do not own a Refrigerator
Handy chotu Cool by Godrej has targeted those
people
MD- Jamshyd Godrej
official launch was on 14th Oct., 2010
in Goa, Maharashtra
FEATURES
43 Litres Capacity,
Works on- Solid state electronic Chip
Operates on 230V AC, also works on invertors
Plastic body (Rust free)
Weighs around 8.9 Kgs
Simple design
Almost Service free
ABOUT THE COMPANY
Started and worked for 3 and Half years.
DI Team- Disruptive Innovation
Its the relation between Society and Business

THEY BELIEVE
That the needs of people are specific but the
products are not available
Sustaining innovation technology delivers
more
Disruptive Innovation takes time to deliver the
needs
Indian Refrigerator Industry

Market Value - Rs. 40 billion

in 2010

Unsaturated market (18% in

urban and 2% in rural)

Market growth
Urban : 7-10% Rural :
25%
Trends affecting Refrigeration
Industry
According to UN Commission on Sustainable
Development, one third of all food in India is lost to
spoilage

According to CEAMA, refrigerator penetration in

India is only 18%

70% of India still lives in rural areas where electricity

supply is limited and power cuts are frequent

No options available for lower income groups

Space is a constraint in rural households

Emerging Market Pain Point
Non availability of effective refrigeration in
rural areas and access to fresh food and
essential drugs.
Entry level refrigerators in India are priced at
Rs.7000, way above the budget of tier II, III
and IV customers.
The needs and requirements of rural
consumers was a portable refrigerator.
critical success factors for
chotukool

Product utility
Pricing
Promotion of features
Proper distribution model
 Kinds of people

People having Pucca houses are targeted by

Godrej (they of the view that can afford to shell out
Rs. 3500/-.

Small time vendors like Vegetable vendors, fruit

vendors, flower vendors,mobile cold drink
owners etc

Shopkeepers & drugists who requires cool place

to store few items
Trends Implications Opportunities
for ChotuKool

Food Spoilage Need for refrigeration Demand can be

created

Low Limited access to Huge market available

Penetration refrigeration for growth

Rural Power supply issues Alternate power

Population options
Low purchasing Power
Create a low cost
model

Space Lesser space available for a Create a small sized

is this a social project or
business idea?

Income of target group

Pricing for rural masses
Pace of expanding market area
Distribution complexities
Catering to demands of different customer
segments
Threat of quick imitation by competitors

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.
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.

Threat of quick imitation by competitors

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.
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.
simultaneous pursuit of two parallel
business models
The simultaneous pursuit of two parallel
business models by Godrej is a promising and
challenging approach. While the traditional
refrigerators have the urban customers who
can afford 100+ liters of refrigerators for
personal and commercial use in the range of
7000-70,000.
Chotukool is targeting rural consumer who
cannot afford traditional refrigerator and is
priced in range Rs 3000 to Rs 3500. The rural
market
opens new avenues to Godrej. It does compete
with its existing market range and expands its
market to untapped segments.
 simultaneous pursuit of two parallel
business models
The simultaneous pursuit does poses the
following threats to Godrej:
(i) Godrej has a good brand image among the
rural masses, if the product being launched in
the cooling solutions category fails to deliver
customer value it will tarnish their image for
other products also.
(ii) Pursuing rural market involves setting up of
new sales channels and thus involves the
complexity of dealing with unforeseen scenarios.
Chotukool was an unconventional cooling
solution targeted at the bottom of the pyramid
(BOP) segment in India. The two markets
targeted do not have links between them .
strategy for Chotukool

Godrej should pursue its strategy for Chotukool

in tactful manner since the market being
targeted is timid.
Innovative advertising and distribution
methods are required to attract the customers
who are quite different from their existing
customer base.
The distribution strategy through NGOs and
self help groups and making customers part of
their sales force by providing them commission
for each unit sold will prove to be effective.
Promotional tools used by
GODREJ
Events- Advertising Billboard Hoarding
Wall painting Electronic media Print media -
Sales promotion.
relied heavily on the mass advertising like on
the TV, radio, and newspaper
Conducted the events in which the rural
people have the interest. Some of the events
are navratna, yaara nachle, gold awards in
Mauritius etc
Promoting Strategies
It doesnt have a normal distribution network,
it distributes through POST OFFICE, so that it
could be reached to each n every single part of
INDIA in a reasonable cost,
It has a tie up with the NGOs, Self Helped
Groups and Social Entrepreneurs,
Its distributed through 1,50,000 post offices,
(these are most trusted people in the world)
Research was being done by spending time
with the households who never owned a
refrigerator
Distribution
Innovation
The network chosen by them is very
innovative and will increase the availability
They are planning to make it available in the
cars is their next step.
,The ones who are having a refrigerator
already are also buying this HANDY CHOTU
COOL refrigerator
 challenges do you foresee for Godrej as it
takes Chotukool
Rural people have less experience in using cooling
solutions, so educating them about the product
utility for them will be daunting task.
Lack of organized channel for reaching end users will
also be an issue.
There is a great amount of market diversity in view
of the different climatic conditions in which different
users like roadside kiosks, wayside grocery stores
and flower vendors will use the product.
Rural masses are price conscious since prices even
50 percent less than the traditional low cost
refrigerator did not seem affordable to some people.
Substitute products as well as imitation by
competitors seem to be a possibility in the near
future.
 Distribution and Supply Chain
Virtual platform between company and
distributors
Project Comprehensive business Intelligence enables in
Sampark
depth primary and secondary sales analysis

Intensified rural approach, Presence in all

Increased locations with over 10000 population
penetratio
n 130 super stockiest, 2450 sub stockiest

Focus on availability of all products at all 600,000

outlets
Retail
thrust Focus on modern retailing
GODREJ-Competitive edge
Quality Policy
Value for money product
Distribution network
Brand image
Promotional edge
Innovation strategy
Strong product line