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The Industry

The Indian Refrigerator market was valued at Rs. 40 billion. Refrigerators were approx 16% of consumer durables and was growing at 7-8 % The urban market was growing annually at 7 10 percent The rural segment was growing at 25% percent

Chotukool The Journey


The need for a market below Rs. 7000 existed for a refrigerator in India Low running costs and lower capacity is required by rural customers The product was priced at Rs. 3500 to meet customer requirements Subsequent Prototypes were developed to get more customer insights

Godrej Chotukool Product design


No compressor making it possible to produce a noise free and easy to maintain product Thermoelectric cooling was used instead which was used for beer coolers The number of parts was reduced to 20 from 200. It was a top open design weighing 7.8 kg,30 - 45 litres , was priced between Rs. 3000 Rs. 3500

Godrej Chotukool - Manufacturing


The system consisted of thermoelectric chips on one side with heat sink and the other side with heat transfer aluminum finned block The product was made out of plastic and was supplied with 12V DC power and was tested for 40 degree Celsius Chotukool had the advantage of simplicity due to design as it required only 10 to 12 persons to assemble the product

Godrej Chotukool Distribution: Community Based Model


Swayam Sikshan Prayog was used to launch the product using a community based selling model as they had good reputation Experiments were carried out to test external design features like preferred colors and the target consumers G&B working with microfinance institutes for financing the purchase for Chotukool Positive Response from vendors like milk vendors, cool drinks and other roadside kiosks

Moving Forward
To move forward with the value proposition of the product, G&B had to addressed many challenges as follows Affordability
Although cheapest, value proposition tough to sell to rural residents Refrigerator considered to be a luxury product Presence of other alternatives like Mitticool and chances of traditional manufacturers to come with cheaper model pose threat of substitute

Scaling-up Operations
Difficulty in recovering money from consumers and managing transactional complexity Logistic issues in reaching non-consumers and arriving at micro-finance models for BOP consumers Market diversity in terms of climate, culture and usage patterns

Moving Forward contd.


Segmentation and Distribution
Segmented market on the basis of community for evolving non-consumers Market heterogeneity with changing environmental conditions, demands, performance & usage requirements posed challenges Enhanced its technology platform to fight issues like complicated product design and cost containment efforts

Business Model
Right overall model with best
value proposition

cost structure complete supply chain

With lessons from these challenges G&B believed in slowly setting an Indian benchmark with a right combination of all the above 4 factors and make a mark in the international market

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