Rural Innovation - Chotu kool
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Godrej & Boyce wanted to boost growth in its household appliance business in India by attracting the more than 80% of households that lacked basic appliances like refrigerators. With the help of Professor Clayton Christensen's idea through Innosight, they developed ChotuKool, an affordable and portable cooling device priced at $69 that uses thermoelectric chips instead of compressors. ChotuKool was designed to meet the needs of low-income households by keeping items cool for a day or two, and over 100,000 units were distributed through community networks in two years.
Rural Innovation - Chotu kool
- 1. ChotuKool GOOD THINGS COMES IN SMALL PACKAGES
- 2. Creating a Market in 80% In India, leading manufacturer Godrej & Boyce wanted to reinvigorate growth in its venerable household appliance business. We helped find a way to attract non- consumers—the more than 80% of Indian households that lacked basic appliances such as refrigerators
- 3. The Inception – Team Innosight The idea of Professor Clayton Christensen of Harvard Business School through Innosight. living in a home without a refrigerator - earning under $5 per day Worked with Godrej Vice President G. Sunderraman observing the daily routines of villagers - rural consumers purchased, prepared and stored food and drinks.
- 4. Understanding the need Not cheap refrigerators - affordable way to keep milk, vegetables and leftovers cool for a day or two One third of all food is lost to spoilage, according to the United Nations Commission on Sustainable Development.
- 5. Technicalities Instead of traditional compressors, ChotuKool is based on a thermoelectric chip that maintains a cool temperature on a 12-volt DC current or an external battery. The unconventional opening ensures cold air settles down in the cabinet to minimize heat loss and power consumption. Highly portable, with 45 liters of volume weighing less than 10 pounds.
- 6. Practicality Priced at $69, about half of an entry level refrigerator, Chotukool creates a new product category, with a targeted value proposition that serves a new segment of customers.
- 7. Innovation with impact Distribution – Community Network 100000 units in 2 Years Godrej being named India's most innovative company of the year by Business Standard magazine 2012 Edison Award Gold prize - Social Impact Category
- 10. “ ” Thank You
Editor's Notes
- #4: The idea to address the basic refrigeration needs of rural families in India began in 2006 at a disruptive innovation workshop led by Professor Clayton Christensen of Harvard Business School through Innosight. The Innosight team began its work by imagining living in a home without a refrigerator. Electricity is unavailable or unreliable in many rural parts of India, where families earning under $5 per day can't afford major appliances. Could a community step up and help create a solution? Godrej Vice President G. Sunderraman led trips around rural India, observing the daily routines of villagers. Using our "jobs-to-be-done" approach, he and the Innosight team witnessed how rural consumers purchased, prepared and stored food and drinks.
- #5: We concluded that these homes didn't need cheap refrigerators. The "job" was much more basic. People needed an affordable way to keep milk, vegetables and leftovers cool for a day or two—both at home or away. This job is urgent in a country where a third of all food is lost to spoilage, according to the United Nations Commission on Sustainable Development. Godrej developed prototypes for feedback at "co-creation" events. In a straw poll of 600 women in the village of Osmanabad, the community voted to make the product red, the color of harmony and bliss. From this effort came the ChotuKool, or "little cool" in Hindi. A disruptive innovation for the base of the economic pyramid, ChotuKool has been called "the Tata Nano of appliances," in a reference to India's super-compact car. Instead of traditional compressors, ChotuKool is based on a thermoelectric chip that maintains a cool temperature on a 12-volt DC current or an external battery. The unconventional opening ensures cold air settles down in the cabinet to minimize heat loss and power consumption. The unit is highly portable, with 45 liters of volume inside a fully plastic body weighing less than 10 pounds.
- #8: Since ChotuKool is so unique, Godrej needed to evolve a new business model to fit the market. Innosight suggested options for a new kind of financing plan and low-cost distribution system that generates profits. Moving beyond a single-state test market, Godrej is now in the process of expanding distribution using community networks. The result is an innovation with impact. Godrej & Boyce is on pace to sell 100,000 ChotuKools in only its second full year on the market. The early success of ChotuKool led to Godrej being named India's most innovative company of the year by Business Standard magazine in a ceremony conducted by the nation's Prime Minister. BusinessWeek and Fast Company named Godrej one of the world's "most innovative companies." ChotuKool was also awarded the 2012 Edison Award Gold prize for the Social Impact category. Most recently, Godrej redesigned and relaunched ChotuKool as a major consumer brand, with expanded distribution and a way for consumers to order personalized versions online.