Godrej Chotukool

885 Words Oct 1st, 2013 4 Pages
Solutions to case study
GODREJ CHOTUKOOL: A COOLING SOLUTION FOR MASS MARKETS

ANSWER 1.For Chotukool to succeed following factors should be there: (i) Product utility: Channelizing on the ability of product to satisfy the demand of different users like roadside kiosks, wayside grocery stores and flower vendors will help for the success of product in long term.

(ii) Pricing: With price about half of an entry level refrigerator, Chotukool creates a new product category, with a targeted value proposition that serves a new segment of customers.
So, for the product to succeed the target segment must be convinced to pay the price for the product i.e. customers who are aspirational should find the pricing reasonable.

(iii) Promotion
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e. Catering to demands of different customer segments: Apart from domestic purposes test findings showed that Chotukool found commercial utility amongst roadside kiosks, wayside grocery stores and flower vendors. Thus the requirements of all these segments should be kept in mind.

Considering the product being aimed at the rural market with minimal penetration at the time of launch (only 2%) and having high annual growth rate (25%) Chotukool is a promising product. It creates a new product category, with a targeted value proposition that serves a new segment of customers. Godrej should certainly invest in this business.

ANSWER 3. Yes there is a quick threat of imitation by competitors which should be considered by Godrej.
The idea for a low cost cooling solution has been there before with Mitticool.
The market being untapped and having high potential for growth will certainly appear to be lucrative to the competitors with the risk of imitation even becoming larger if Chotukool receives a positive response. The risk compounds from the fact that the cooling technology thermoelectric or peltier cooling being known for decades.

ANSWER 4. 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