Case Study on Godrej Chotukool
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This document discusses Godrej ChotuKool, a disruptive refrigeration product for rural India. It summarizes key trends affecting the refrigeration industry like food spoilage and low refrigerator penetration. It then introduces ChotuKool as addressing these issues through its affordable price, portability, small size, and ability to run on batteries. The document outlines challenges like scaling operations and segmentation. It proposes solutions like establishing manufacturing plants, low-cost distribution models, avoiding marketing myopia, and clear market segmentation. Finally, it analyzes the structure of the Indian consumer market.
Case Study on Godrej Chotukool
- 1. A case of ‘disruptive innovation’ that is transforming Rural India GODREJ CHOTUKOOL
- 2. Ardeshir Godrej 17 Billion Mumbai More than 60 countries
- 3. Consumer electronics segment in India (‘000 units) 12000 10000 8000 TV sets 6000 PCs Refrigerators 4000 2000 0 2005 2006 2007 2008 2009 2010
- 4. 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%
- 5. 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
- 6. Trends Implications Opportunities for ChotuKool Food Spoilage Need for refrigeration Demand can be created Low Penetration Limited access to refrigeration Huge market available for growth Rural Population Power supply issues Alternate power options Low purchasing Power Create a low cost model Lesser space available for a refrigerator Create a small sized product, easy to transport Space Constraint
- 7. What am I?
- 8. Who am I? My Family
- 9. For whom am I?
- 11. Why me? Cheapest fridge available Portable and light Occupies less space Environment friendly Runs on battery
- 12. Challenges How should they scale up operations? Lower the price to increase affordability ? Right business model? How should they segment market ?
- 13. Suggestions Establish Manufacturing Plants Low cost distribution Avoid marketing myopia Clear segmentation
- 14. Strengths Simple design Less space for manufacturing Less manpower required Less components used
- 15. Distribution: Community-based model NGO Self-help groups India Post Micro-finance institutions
- 16. Distribution
- 17. Structure of the Indian consumer market Consumer class (Using annual income) 1996 (in mn) 2001 (in mn) 2007 (in mn) The rich (Rs.215,000 and more) 1.2 2.0 6.2 The consuming class (Rs.45-215,000) 32.5 54.6 90.9 The climbers (Rs.22-45000) 54.1 71.6 74.1 The applicants (Rs. 16-22000) 44.0 28.1 15.3 The destitute (Below Rs.16000) 33.2 3.4 12.8
- 21. Presented by : : Arthi Divyant Singh Jayasri Kanwaljit kaur Gosal Manimegalai Omna Jain