Marketing Case Study (2) Godrej ChotuKool: A Cooling Solution for Mass Markets
Q.1. Assess the business scenario for ChotuKool? What are the critical success factors for this product to succeed?
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. 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.
This will help us in having a deeper knowledge of the placement of a retrigger in the
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A study by Assocham in 2011 estimated the rural consumer durables market to grow at 40% in 2012 as a result of higher disposable income among rural consumers. The size of the home appliance market in India is pegged at `30,000 crore, with air-conditioners, refrigerators and washing machines as the largest categories, though household peneration levels are in low single-digits.
Current Scenario in India, * Refrigerators have the 2nd highest aspirational value of all consumer durables * High growth rate of the refrigerator market. * Refrigerators are manufactured in two basic designs which are referred to as Direct Cool (DC) and Frost Free (FF) refrigerator.
Godrej’s share in the refrigeration market as shown below is 18 %
Critical success factors for chotuKool:
Let us study the critical success factors on the basis of the 4p’s of marketing
Product:
Designed specifically for rural consumer
Cooling Chip
Runs on low power and invertors
Runs on battery when there’s load shedding
Colour chosen on the basis of consumer interest
Use of unconventional cooling technology
Compared to the 200 components of a refrigerator, it has only 20 components
Power consumption is comparatively less (15 to 65 W against 90 – 100W)
It has no moving components, is almost service free
ChotuKool weights only 9kg and is therefore easy to move around and transport
The operational cost is low
The average electricity bill for running the ChotuKool is only Rs 60 to Rs 70 per month
The Indian consumer market is quite diverse with highly varied consumption behavior. The refrigerator penetration was at about 16% in 2006 growing annually at 7-8%. The growth in the rural section was, however, projected at 25% per annum. There were certain trends which led to the birth of Chotukool.
The analysis concluded that outlying India offers enormous opportunities which businesses can tap with regards to growth and progress. However, companies experience many challenges inside tackling the outlying markets. 833 million people have a home in India when compared with 377 million inside urban India therefore vast untapped opportunities can be purchased in rural India, but marketer struggle to tap these opportunities due to lack of infrastructure facilities. Literacy rate is lacking in rural area so people can't identify brand difference. However, now the literacy rate is also increasing in rural India. Variety of middle and greater income household inside rural India is anticipated to grow from 80 million to 111 thousand. There is swift development in infrastructure these opportunities attract companies to rural market. Using some technologies development in distribution as well as marketing of goods in rural Indian, companies in outlying market can earn more profits, marketplace share, etc. The Rural market is often a greater future prospect for your marketers and there are various opportunities available for him or her in rural
The stability of the refrigerant circuit has to have the focus on end customer relevance. So if there is no hunting seen in the refrigerant circuit, no further actions are needed regarding to stability.
The 1950’s was full of sensational establishments. This era took a turn in the world, by adjusting the strenuous task of producing nourishments to an uncomplicated task. During 1955 many families had to privilege of possessing the new modern and refined refrigerator. This new refrigerator was intended to change individuals life’s by providing them new feature such as a built in freezer that was attached to the refrigerator. Some other contemporary characteristics included an automatic defrost and ice maker. These new features were added so American families had a way to preserve their food for longer periods of times and that way food waste would decrease. In today’s society this type of refrigerator still exists and almost every refrigerator automatically includes a freezer and ice maker, which is a must have item to any household. It changed our lives because we are able to freeze and save food that could be used for a later time. A washer-Dryer Combination was established in the 50’s and could rank up to $600.
Q2:Various considerations Kassatly Chtaura management should consider in business expansion decisions, and its implications of suggested strategy.
The size of the plant maximizes how production flows from trucks, employees and pallets moved in and out daily. The plant was designed with safety in mind with three different buildings. There is an administration building with lab areas, and general office space. The process building has wet mixing and support equipment with production lines and distribution areas. The CUB building contains the central utility plant servicing the whole facility with electrical and
Air conditioning is an everyday appliance used by all homes and businesses today. It works by utilizing a system of fans and heating/cooling element called ‘freon’ that comes in two types; R-22 and R-410a, R-410a being the newest type of refrigerant that has the advantage of being better for the environment. Despite this, R-410a is not as effective as R-22 in heating/cooling. Air conditioning installations also come in various sizes such as 2-5 ton installations. For instance, 2-ton units will be used in small homes and apartments. Larger 5-ton units will be used for larger installations such as warehouses and offices. Additionally multiple smaller installations could be used on one setup, like 3, 3-ton units being used on a warehouse, and
Question 1. Analyze the factors leading to Colgate Max Fresh's success in the US market………………………………………………………………………………………..4
Mariotti & Glackin (2013) provide that development of marketing strategy and competitive advantage is from the "Four P's". The "Four P's" include product, price, promotion, and place. This paper further outlines each of the "Four P's". Mariotti& Glackin (2013) recommend continually referring to the mission statement and vision statement while developing the marketing strategy. This reference helps to build the marketing strategy and form the core competency for the business. The first part of the business plan, the mission and vision statements, are stated below:
By considering the literature, Company X has a good adoption of McCarthy’s 4Ps as Midgley expresses how this can determine commercial success. Muhammad also agrees that being highly rated on such aspects, suggests that Company X has been able to implement McCarthys 4Ps. However Rutkauskas disagrees that the question can determine Company X’s quality of marketing. Rutkauskas reflects on how McCarthy’s theory behind the question may be flawed. The results therefore may not be able to completely determine the effectiveness of Company X in regards to its marketing.
As an entrepreneur, you determine how to use these variables to achieve your profit potential. This publication introduces the four P’s of marketing and includes worksheets that will help you determine the most effective marketing mix for your business (James E Canales, 2011).
The marketing concept rests on four pillars: target market, customer needs, integrated marketing and profitability.
Question 1. Analyze the factors leading to Colgate Max Fresh's success in the US market………………………………………………………………………………………..4
Godrej Appliances is one of the fifteen companies that are part of Godrej & Boyce. It came into existence in the year 1958. Godrej appliances was a pioneer even then, and it brought refrigerators to India for the first time. Today Godrej Appliances is one of the major players in the consumer appliances
In order to maintain appropriate temperature levels, clean conditions and uninterrupted power supply, the plant is equipped with centralized