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GODREJ CASE STUDY (CHOTU KOOL)

SUBMITTED TO: SIR EKHLAQ AHEMD


SUBMITTED BY: ZEHBISH TAUSEEF ID#: 19537

Institute of Business Management


Marketing Strategy & Value innovation

GODREJ CHOTU KOOL


FACT SHEET OF THE CASE

Market value Rs 40 billion in 2010.


Unsaturated market (18% in urban and 2% in rural)
Market growth : Urban : 7-10% and Rural : 25%
They came up with a disruptive Innovation idea CHOTU KOOL With
the help of professor Christensen
Journey of CHOTU KOOL.
Spent time with the rural people to get consumer insights.
Analysis of the field showed one third of food in India is lost in
spoilage.
70% of India still live in rural areas where electricity supply is limited
and power cuts are frequent.
Refrigerator penetration in India is only 18%
No option available for lower income groups
Space is constraint in rural house holds
Chotu Kool was focused for the BOP Market.
Product chotu Kool was made very simple, designed to run on a
battery, had no compressor, noise free and cheap price.
Challenges faced by Chotu Cool are Low price to increase
affordability, Manage operations, how to segment the market and
reaching the right business mode.
Distribution of chotu cool is like they worked together with SSP and
PRATHAM as channel partners for selling chotu-Kool , created a
separate sales channel and also included some financial institutions
part of distribution channel. Chotu Kool was launched in
Maharashtra, but planned to go nationwide.

CORE ISSUES

Should G&B target a lower price to increase affordability?


How should they scale up operations?
How should G&B segment their market for chotu Kool effectively?
Should G&B focus on penetrating the urban markets first?
How should G&B arrive at the right business model?

SECONDARY ISSUES

Thinly spread market


Low earning power of the consumers
Limited awareness of the users
Vast culture diversity

REASONS/ ANALYSIS OF THE CORE AND SECONDARY


ISSUES

Income in rural India grew 11% per annum in 5 years but this
growth is widely distributed among different segments of different
states.
Despite the rising affordability, the pattern of penetration of
consumer durable varies distinctively in rural India.
Due to poor access to electricity, roads, infrastructure etc , demand
is lost.
Purchasing power remains low as expenses are yearlong but income
is limited for a period of time only
Cultural barriers exits within the same state itself and few states of
Maharashtra are more prosperous than others.
The consumers wanted value for money
Problem was to convince household people because they wanted
value for their money
Rural consumers were unaware of the benefits of refrigeration of
food items
Marketing of a product in rural areas was very difficult due to
diversity and different media.
Chotu Kool had a big threat of substitutes (ice boxes and Mitti cool)

SOLUTION OF THE CASE

Low cost distribution


Establish manufacture plants
Distribution via retailers channels
Dealership should be given in rural areas
Highly advertising campaign
Avoid marketing myopia
Clear segmentation should be done
Training should be given to intermediaries so that they
educate end users because it was a new product and
needed demonstration.
Segmentation should have corely focused on BOP people.

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