Frugal Innovation at Godrej-Chotukool

Details

Case Code : CLMISC030
Publication date : 2016
Subject : Miscellaneous
Industry : Consumer Durable Industry
Organization : Godrej & Boyce Mfg Co Ltd
Length : 05 Pages
Teaching Note: Not Available
Country India

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Abstract:

The case “Frugal Innovation at Godrej: The ‘ChotuKool’ Refrigerator” is about a refrigerator called ChotuKool from Godrej, which is the result of frugal innovation. The case talks about Godrej’s journey of frugal innovation beginning from its coming up with the idea of inventing a low cost refrigerator for the BoP market in India to the challenges the company faced in manufacturing and distributing the product. The case also discusses how Godrej planned to make two models of the refrigerator — one for the Bottom of the Pyramid consumers and the other for consumers of traditional refrigerators. It concludes with a discussion on the future challenges and opportunities for Chotukool.

Issues:

» To understand frugal innovation and how such ideas translate into successful businesses
» To adapt frugal innovation for the mass market
» To learn the importance of the social innovation value chain
» To comprehended the need for innovating across the value chain in order to succeed in social innovation

Introduction

India-based Godrej & Boyce (G&B), a holding company of the Godrej Group (Godrej), was incorporated in 1897. As of 2016, the company was involved in 15 different businesses including consumer products and industrial products like refrigerators, washing machines, air conditioners; office & home furniture. It operated 39 plants pan-India. The company was known for its refrigerators in the Indian market. It had catered to the upper class of Indian society, when the refrigerator was a luxury product. During the late 1990s, its market share began to decline rapidly due to competition from other companies such as LG Electronics Inc , Samsung Electronics Co.Ltd , and Whirlpool Corporation . G&B then looked to come up with innovative products that were also affordable for the Bottom of the Pyramid (BOP) customers in rural India...

Key words:
Godrej,Chotukool,Frugal Innovation,affordable innovation,Social Innovation,Inclusive business model,Distribution Management,Infrastructure and Logistics,Consumer Durables,Emerging Markets,bottom of the pyramid,India,Mass Market

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