The Chotukool Case Study


TheChotukool Case Study

TheChotukool Case Study

Theworld of business is a diverse one characterized by competition andchange in market trends. Enterprises come up withthe aim ofaddressing theshortageof resources and human needs. In other cases, firms come up to createmore potential opportunities for generating income. Many companiesexist and give each other competition especially in scenarios wherebythe same product is involved. The establishment, growth andstabilization of a firm entirely depend on the laid plans. Theactualizationof set goals also depends on how well a company caninvolve customers and the environment in operations. Additionally,availability of capital to implement the set goals is critical inpromoting the company’s well-being. Contrary, the ability to dealwith setbacks encountered in business operations contributes to thelong-termsuccess of the enterpriseor business.

Inpursuing business goals, Invention and innovation are two criticalaspects. To achieve that, having adequate finance are important infacilitating the new ideas. Good innovated ideas should address areasthat no other business has ventured in. Additionally,it must consider all the factors relevant to the scenario inquestion. By doing so, it sets up a foundation of a firm,andin the processachieving allthe set goals. The Godrej &amp Boyce ManufacturingCompany is a firm located in India and it manufactures a variety ofproducts. The companyidentified an opportunity in Indian society and successfullyconquered it (Godrej, 2012). Therefore, this case study analysisfocuses on the approaches, strategies this company used to launch andestablish the chotukoolproject. Additionally, it documents a reflection of other methodsrelevant in a firm.

TheIndian Situation

Indiais on the top list of Asian countrieswith over one billion people in thetotalpopulation. In spite of the country having a good economic base, themajorityof the population still lags behind regardingtechnology and development (Gupta, 2011). The large population ofIndia experiences problems,especially in food storage. The rate of food consumption is very highbut unfortunately, the rate at which it spoils is very high. Themajorityof the Indian population lacks access to refrigeration systems whichare instrumental in food preservation.

Moreover,lack of electricity in most Indian communities contributes to thisfood spoilage problem. The chotukoolproject tries to addressthis issue byproviding an alternative means to food preservation without usingdependableelectricityrefrigerators.

Foodstorage remains the biggest issuein the Indian communities. The market failed to address this problemuntil the idea of the chotukoolcame into existence.Themajorityof the Indian population lacks accessibility to electricity and incases where electricityis available there is alackof refrigeration in most households. The Godrej &amp BoyceManufacturingCompany ultimately developed a Direct Current (DC) using therefrigeratorto help in food preservation. Unlike others that use electricity,this refrigerator uses a DCof twelve volts straight from a lead acid battery. The aim of thiscompany is to design new systems that can reach the community andsatisfy unmet needs. As a potential business and a way to meetthe economically stretched society, the chotukoolproject’s success is commendable. Most of the people in the Indiancommunityhave never used a refrigerator (Ferrari &amp Dhingra, 2011). Mr.Sunderraman, the company’s CEO created an attractive solution forstoring food. The success of this system implicated that the cost offood purchase would drastically reduce due to the availability ofpreservation options.

Lackof electricity is not the defining factor that facilitated massivefood spoilage in Indian societies. Research shows that the rate atwhich refrigerators have penetrated the Indian market in the pastyears is very slow. Additionally, for a long time, the low-incomecommunity in India lacked other options for food preservation (Gill,2011). The massive population also limits spacing with many housingunits having less spacing to accommodate largeelectronics. All these factors created an opportunity to come up witha system that could sustain the lives of Indian people.


Thechotukoolproducing firm system aims at making the customers more satisfied andat the same time keeping its relevance in the market by creatinga productthat is not only efficient and effectiveto the user but also attractive. The chotukoolidea focuses on the environment and customers because they are thetwo factors that determine the progress ofbusiness.Additionally, it is a groundbreaking product regardingdesign, technology and the business model employed in developing it.


Transformationofadversityinto opportunities

Thechallenges faced in an environment can turn out to be stepping stonesin achieving greatness. The Indian case is a perfect example of thissituation. Instead of working on creating a more competitiveenvironment whereby only a certain class of people can accessresources, it is better to create a commodity affordable by themajorityof the population. By doing so, a new market is successfully createdthus proving the possibility of turning limitation in the societiesinto opportunities (Seabright, 2015). The Indian company,therefore,designed a way to create an attractive and affordable food storagesolution for people with no access to refrigerators (Aditya, 2016).By doing so, the firm successfully transformed visions into reality.

Figure 1

RightMarket Entry Strategy

Thechotukoolis designed to meet the needs of Indians with alittlesalary scale. Additionally,the company aimed at providing a product that people could use tomeet their daily needs. Therefore all these observations andapproaches define what is called the right market entry strategy andphilosophy. The relevance of this methodis not only in India but also other parts of the world. Observationis crucialin successfully achieving this system. It helps in understanding andfinding solutions to the unmet needs ofthe society.

Designand Technology

Unlikeother refrigeration systems in the market, the chotukoolone is a portable system which gives it a better advantage because itis movable with ease. It is a plastic of 45 liters in volume capableof cooling food to temperatures of up to eight degrees. The use ofplastic in these systems cuts down on the cost of production andmaintenance. Additionally, the plastics are more suitable forinsulation because they are poor conductors thus won’t allowentrance of heat into the system. The freezer box is designed to usedirect current voltage considering that the target population islow-incomeearners and the lower class people of the Indian community.Technologically, the system employs a solid state technology ratherthan a compressor driven and conventional technology. The adoption ofthis type of technology makes the chotukoolsuitable in these low-incomecommunities. A combination of the design and technology used inmaking the chotukoolaims at creating a sustainable system that minimizes on space, powerconsumption but with a high efficiency in functionality.


TheGodrej and Boyce Company considered several factors in the marketbefore successfully implementing the development of the chotukool.The Indian economy consists of a majority of low-incomeearners with the highrate of consumption in the food industry. Therefore, the companyobserved a loophole in the food storage sector whereby the annuallosses recorded asa result of foodspoilage was alarming. Forthe lucky come up with a selling product,the company focused on the demand, environmental factors andaffordability of this system (Nair, 2011). Theneedof an alternative preservation system already existed considering thelosses encountered by the Indian population. Consideringenvironmental factors like lack of electricity in target areas alsoplayed a critical in designing the product.Theaffordability of the chotukoolsystem was also a key issue to factor in considering that majority ofthe population is alowincome earning. Therefore, a combination of these factors helped indesigning a good marketing strategy and making of the chotukool.By exploring all these factors and combining them, the companycreated a value chain for its brand.

Avalue chain generatesideas ina company whose role is to createmore value and facilitate theexpansionof the market through an increase in supply to satisfy the demand. Itcreates a competitive advantage in a way that the firm canseparate itself from other competitors by sellingan exclusive product (Walters &amp Rainbird, 2012). Achieving asuccessful value chain system is through a series of activities thatoffers customers an affordable value which exceeds the cost ofproduction ultimately resulting in a profit margin.

Differentmodels of distributing products in the market exist. By rejecting thestandard models on market entry and distribution and focusing onuniqueones, the company successfully penetrated the market with a surety ofmaximum sales. The marketing strategy reliedonword of mouthconsidering that verbal communication is an accurate way ofdelivering information compared to othermeans.Additionally, the use of non-governmental organization and self-helpgroups works out because these institutions are more attached to thesociety.


Managinga business in an environment that keeps changing with technology istough. Moreover, sticking in a similar trend in the market is createsloopholes in the system. Competitors are likely to outsmart abusiness that has stuckto one patternbecause they come in with new ideas. Additionally, maximization ofprofit is only achievable through embracing a dynamic businessenvironment. Aprimary cause ofchanging trends is the shifting in customer desires.A dynamic companylasts longer because it canblend in the market with the changing trends. Dynamism also helps acompanyrealize the long term goals.

Thecompany is embracing dynamism in the chotukoolsystem by working on innovation. Moreover, plans for diversifying thebusiness are also underway. Unlike before when the chotukoolcould only reach minimum temperatures of 8 degrees Celsius, thecompany expectsthat the new design should reach lower temperatures of two degreessessions. Additionally, the earlier cooling and preservation systemsonly stored food,therefore,there is aneedfor advancement. The expansion focus on the medical sector wherebythe new chotukoolfreezer will preserve vaccines and medicine. The idea ofventuringinto the medical industryarises from the fact that most of the Chotukoolusers stay in low-incomeareas where diseases are prevalent. Therefore, the company isproviding solutions to this problem indirectly by designing coolingsystems that can preserve medicine. By doing so, the communitiesresiding in these low-incomeIndian areas will have access to medical care. Business, theexpansion to health is a way of attracting new stakeholderslike the government whose role is to take care of citizen’swelfare.

IntellectualProperty Rights

Annually,many people lose the rights to the ownership of innovations orinventions in the business world because they follow the wrongchannels in claiming ownership. The business market also experiencesproblems of replication and copy products where the badpeople generate income.There are high probabilities of acompanynot reaching the expectations of the owner because people haveintroduced cheaper products of the same identity into the market. Thecase is acriticalsetback in the process of developing a free business world wherepeople succeed independently with their ideas without necessarilyworrying about replica products. Since achieving that is impossible,Intellectual property right offersan ultimate solution. It enables an organization of individual claimownership of an idea in the business world. By doing so,the threat competition ceases to exist because only one producer isentitled to meeting customer’s needs.

TheGodrej &amp Boyce ManufacturingCompany has successfully embraced ownership of the chotukoolfood preservation system toprotect thefutureinterest and the market. By doing so, they have enjoyed amonopolyin the market,and that has given them thepeacethey need to focus on satisfying the society rather than dealing withcompetitors and replicators that would threaten their business. Thestrategy is very effective in realizing business growth. The companyis a soleproducer of the chotukooland however much there are suppliers hooked to it, a good profitmargin comes in at the end of the day. Moreover, protecting theproduct also prevents the society from spending money on wrongchotukoolboxes, hence finances getsavedin the process.


Supplementationof Products

Inspite of the company successfully designing the chotukoolpreservation system, many setbacks and challenges still need to beaddressed. The Indian society as stated earlier consists of ahugepopulation with many of them earning less than two dollars s day. Themarket is also bigconsidering the size of India and therefore, distribution of thechotukoolhas encountered many setbacks. Other issues like scaling upoperations and choosing the right business model still need to beaddressed. Therefore, considering the analysis and observations ofthe Company and Indian society, the following implementations canhelp the project reach more people and realize bigger profit marginsat the same time.

Pricesand Affordability

Howevermuch the chotukoolproducing company has tried to make the boxes affordable, there arestill concerns aboutthe pricing and affordability. Themajorityof the Indian population still lives onless than two dollars, thus meeting the price of purchasing thechotukoolis still tricky. A high percentage of the Indian population needsthe prices of this productto dropped.Although, the scenario might stretch the company’s economicstrategy, designing ways while focusing on the product can help inthe situation. The company can subsidize prices by producing avariety of these boxes each supporting a different capacity. The movewill enable peopletoacquire ones which they can afford. Alternatively, a system wherebythe people are allowed to purchasethe product and pay over time can help in making the product reachtoo many people.


Havingknowledge on how the market structure looks like is crucial indetermining the demand and supply of a product. It also helps inidentifyingthecostof production in that a company canproduce on time. The Indian market is a large one consisting of theunevendistribution of thepopulation. Determiningthe actual size of thepopulationin low-incomeareas is also tricky. To successfully promote and sell a product,segmenting the market in terms regardingdemand is the solution. The company supplying chotukoolhas experienced difficulties in market segmentation. They have failedto reach some areas of needbecause of poor market penetration plans. Therefore, it is advisablefor the company to embark ondeep market research so as to find out all the localities that are inneed of research. Deploying individuals in various locations is alsoa way to design a successful market segmentation plan.

Scalingup Operations

Scalingup entails doing more than the effort in place so as to achievegreater outcomes. The chotukoolproducing company has worked hard in innovation,but the attempts on implementation need further. Rapid growth is veryexciting,but its occurrence must be managed properlybecause it is very challenging (Milligan, 2002). Since theintroduction of the chotukool,the company has experienced massive growth because the productdirectly impacts on the lives of people. Therefore scaling up ofoperations is critical in ensuring that all the necessary resourcesare in place. The availing of these elements helps prevent shortagesin supply and ensure that customers have access to the productwhenever it is needed.

RightBusiness Model

Thesuccess of business entirely depends on the modelused in promotion of a product in the market. Sticking to a systemthat works is instrumental in ensuring stability and continuousgrowth ofbusiness.Additionally, a chosen business model should be able to workefficientlywithoutstraining the company, customers and employees involved in the supply(Jeannet, Hennessey, &amp Jeannet, 2011). Additionally, creating agreatsupply chain that is efficient is a critical factor in every businessenvironment. The Godrej &amp Boyce ManufacturingCompany must,therefore,invest in an efficientsupply chain because by doing so, all the parties involved aresatisfied.


Businessmanagement enables a company to progress and expand leading to moreincome and a higher profit. Progressgets achievedthrough studying the business environment and identifying realopportunities. Additionally, checking out the presentlimitations ofthe society also helps in realizing thegrowthof the franchise. The Godrej &amp Boyce company scenario clearlyshow how innovation can assistin capturing potential markets. By identifying a limitation affectingpeople inthe society,it is easy to come up with asolutionand generate income at the same time. Practically, attaining thislevel of success requires capital, patience,and understanding of the target environment. The chotukooltemperature system has facilitated food preservation saving thousandsof Indians from more economic troubles. More of the people are yet tobenefit not only in India but also across the world.


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