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Godrej Chotukool A Cooling Solution for Mass Markets Case Solution

Solution Id Length Case Author Case Publisher
2791 2090 Words (8 Pages) Charles Dhanaraj, Balasubrahmanyam Suram, Prasad Vemuri Ivey Publishing : W11498
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Godrej Chotukool was a portable, low-cost, and energy-efficient small fridge designed by the Indian business Godrej & Boyce to cater to the needs of mass markets in India's rural and semi-urban areas. The product was created to answer the demand for a dependable and cost-effective solution for cooling and preserving food and beverages in locations where energy was scarce or inconsistent. Godrej focused on growing its distribution network and employing digital channels such as e-commerce platforms and social media to reach as many potential clients as possible. In addition, the business continues to innovate and improve the device, adding features like solar power compatibility and the ability to run on automobile batteries. Godrej's work with Chotukool contributed to the brand's general reputation as a developer of innovative solutions to global concerns, in spite of challenges such as competition from other companies as well as the requirement to adequately advertise and promote the product.

Following questions are answered in this case study solution:

  1. Asses the business case for chotukool. What are the critical success factors for this product to succeed?

  2. What criteria should Godrej use to evaluate its strategy to launch chotukool? Should Godrej invest in this business or not?

  3. Is there a threat of quick imitation by competitors that Godrej should consider? If so how?

  4. What is your take on the simultaneous pursuits of two parallel business models in the same cooling industry (Mass market vs. Urban Market)? Does it entail any risk for the Godrej?

  5. How should Godrej pursue its strategy for chotukool? What are its implications for brand and overall corporate strategy?

  6. What challenge you envisage for Godrej in its journey of taking Chotukool to various geographical markets across the country?

Case Study Questions Answers

1. Asses the business case for chotukool. What are the critical success factors for this product to succeed?

There are several critical success factors for the Godrej Chotukool to succeed in the mass market:

Affordability: Target customers for the Godrej Chotukool are low-income people in rural and semi-urban areas who would not have the money to buy more expensive refrigeration solutions. Due to this, it is crucial that the product be priced competitively and within reach of these customers. Chotukool established a new product category with a tailored value proposition that caters to a new client niche for around half the cost of an entry-level refrigerator. The target market must be persuaded to pay the price for the product, i.e., aspirational customers must think the pricing is fair, in order for the product to succeed.

Durability: For the product to be successful, it needs to be durable enough to withstand the rough conditions and lack of proper maintenance often found in rural and semi-urban areas.

Ease of use: The product should be easy to use and require minimal maintenance, as many of the targeted consumers may not have access to repair services.

Energy efficiency: The Godrej Chotukool is powered by a DC battery, which needs to be charged regularly. To be successful, the product needs to be energy efficient and have a long battery life to minimize the need for frequent charging.

Marketing and distribution: The product needs to be effectively marketed and distributed to reach the target consumers in rural and semi-urban areas. This may involve working with local retailers and distributors to ensure that the product is available in these areas. The community distribution model of the company, which includes the assistance of NGOs and self-help groups, will allow for greater market penetration to be achieved.

Product utility: Long-term success for a product can be increased by focusing on its capacity to meet the needs of a diverse range of customers, such as roadside kiosks, wayside food stores, and flower vendors.

2. What criteria should Godrej use to evaluate its strategy to launch chotukool? Should Godrej invest in this business or not?

Godrej should consider a variety of elements while evaluating its Chotukool launch strategy, including market demand, competitive environment, product price, distribution channels, and the resources and capabilities required to effectively market and sell the product.

a. Target group income: Godrej must select the target market while keeping in mind the diminishing number of consumers in the impoverished and aspirational classes and the increasing numbers in the consuming and climbing classes because the product is highly price sensitive (refer to exhibit 3).

b. Pricing for the rural masses: Given that most people in rural areas consider a refrigerator to be a luxury item, it is essential to choose an appropriate price tag for the appliance. 

c. Pace of growing market area: The rate at which the market region is expanding means that there is a possibility that the offering may be duplicated in the long run; development plans ought to be conceived in such a way as to reduce the likelihood of this happening.

d. Distribution complications: Due to the disorganised nature of the new sales channel, unexpected difficulties with distribution and revenue recovery may arise.

e. Meeting the needs of various client segments: In addition to its use in the house, the test findings showed that Chotukool was useful in the commercial sector for businesses such as roadside kiosks, wayside food stores, and flower vendors. As a consequence of this, it is necessary to take into account the demands of each of these divisions.

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