Rural Marketing

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

 Product utility: The primary motive of the product is to cater the rural market.
However the product has potential to fulfill the demand by other commercial players
like roadside kiosks, wayside grocery stores and flower vendors. If they are
considered this will help it to sustain for the long term.
 Promotion of the product features: The rural market considers the refrigerator as a
luxury product irrespective of the lower price. To make Chotukool success it is very
important to align the promotion inline to the needs of the target audience. For
example the refrigerator will help to store vegetables and milk on a day to day basis
and that too at the cheaper rate. It should be promoted against the conventional
cooling technique and portray that it is the better option for them
 Pricing of the Product: This is the main value proposition for the target audience.

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The lower price of the product is the key to the rural market which ensures that

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average spending capacity of them is met

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 Proper distribution model: To acquire rural market conventional supply chains

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cannot ensure influence of the product over the target audience. Instead if the
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distribution is done via the help of NGO who can promote the product using word of
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mouth, this will benefit the Godrej and help to achieve better penetration
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2. What criteria should Godrej use to evaluate its strategy to launch Chotukool?
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Should Godrej invest in this business or not?

Innovations in design: Godrej should attempt to get more advancements and

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
innovations to the plan of chotukool. They can likewise make plan less difficult to
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deal with. They should utilize new innovation and can likewise incorporate solar
power technique
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 Test Marketing: Godrej should conduct more pilot project in different segments of
market where the need and the culture is different which will help Godrej to
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understand the customer buying behaviour in a holistic manner

 Advertising and distribution: Create mindfulness by door to door campaign strategy.
The distribution channel should consistently be reachable when the client attempts
to approach. Chotukool requires exhibition and demonstration which doesn't occur.
Along these lines, something must be done to unravel this issue. Appropriate data
ought to be given to the country portion
 Affordability: Price of Chotukool should not be increased
 Pace of expanding market area: With the threat of being imitated in the long run,
expansion plans should be sketched out in a way to minimize the threat.

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 Rural Marketing

 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.

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

so, how?

 Although there was no direct competition to chotukool, but there was threat that the
traditional refrigerator manufacturers. As they may bring same kind of low cost

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model of refrigerator reducing the existing price gap.

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 As one of the A of the rural marketing is affordability and even though chotucool for

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many is not affortable affordable one but the value proposition for rural people is not

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that much as they considered it as “luxury” item, and would not even think of buying
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the product.
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 As no direct competition to chotukool, but there was threat that the traditional
refrigerator manufacturers would bring same kind of low cost model of refrigerator
reducing the existing price gap.
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Chotukools current price was just about half of the lowest cost refrigerator, unlike
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
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other classic disruptive innovations. There were other low cost product such as
Mitticool by Mr Mansukhani Prajapati which had a different functionality, custom
value proposition and market segment , posing less of a direct immediate threat to
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Chotukool
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 Price between 2500-3000, Two compartments and is Made out of clay.

 However, such innovations along with prospective low cost versions in the category
of traditional refrigerators, posed a threat of potential substitutes eventually
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appearing in the market

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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?

 Having a presence in both the markets is an advantage but having two parallel
business models can be risky for any company. The market penetration for
refrigerators in the urban market was 18 percent and in the rural market it was 2
percent. Hence the untapped market was huge.

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 Rural Marketing

 Godrej Chotukool is a product made for the rural areas of India. It was made
according to the needs of the rural customers. There are various advantages in being
present in both the markets but the marketing approach for the areas are different.
This makes the marketing strategies different for different areas. When the marketing
strategies vary the product may suffer.
 The sales may be affected and the focus or the target market may be confused.
Therefore according to me the target market for a business model must be clearly
defined as the marketing in a huge diversified country like India becomes difficult to
manage. But as the presence in both the markets is an advantage Godrej must
control the price differences and the marketing strategies must be planned well too.
Also being present in both the markets with the same product would call for different
promotional strategies. All these factors play an important role in the success of the
product sales.

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5. How should Godrej pursue its strategy for Chotukool? . What are its implications

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for brand and overall corporate strategy?

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A great corporate strategy for Chotukool is very important for Godrej to place the
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product into the market. Few factors that Godrej can look upon are as follows:

 Innovations in design: Godrej can come up with more innovations in the design of
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Godrej Chotukool. They can make use of new technology and can also incorporate
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solar power technique. Making the design simpler to handle would also be a great
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move.
 Advertising and distribution: Creating awareness for Godrej Chotukool via door to
door campaign can be done. The distribution channel should always be reachable
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when the customer tries to approach. Proper information should be provided to the
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rural segment. The involvement of local bodies in the distribution model, plus the
value delivered to different customer types will help in establishing Godrej’s image as
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a noble brand. Apart from it, the distribution strategy through NGOs and SHGs and
making customers part of their sales force by providing them commission for each
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unit sold will prove to be effective

 Promotion: Promotion at village haats, festival gatherings as well as demonstration
drives will attract new customers
 Affordability: Price of Chotukool is a major factor among the rural audience. Though
the price is already so low, however, it is still unaffordable to many. So, the price
should not be increased. Godrej should invest in Chotukool. This product will help in
raising the standard of living of rural segment
 Brand endorsement: Godrej can choose celebrities that have rural appeal for brand
endorsement. This will help Godrej to target the audience more effectively

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 Rural Marketing

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

The challenges faced by Godrej in its journey for taking ChotuKool for various
geographical market across the country are:

• Problems related to advertising and distribution

• To manage the transaction problems due to unique distribution model

• Cultural differences, and usage patterns in different geographies

• Price conscious consumers

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• Less awareness and information about the product

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• Problem in logistic

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• Support and service

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•
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Lack of basic infrastructure
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• Low buying power
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• Area based requirement

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• Highly unorganized rural market

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