MUMBAI: Godrej Appliances, the consumer durables division of the Godrej Group, today said it will focus on the bottom of the pyramid segment, following the success of its lowest-cost refrigerator 'Chotukool'. We are co-authors of multiple books from Harvard Business Review Press, including The Innovator’s Method: Bringing the lean start-up into your organization, our forthcoming book, Innovation Capital: How to compete—and win—like the world’s most innovative leaders, and Nathan is lead author of the forthcoming book Leading Transformation. We knew we couldn’t just repackage and reconfigure an existing refrigerator and just pass that off.”. Chotukool: Keeping things cool with frugal innovation. We write about leadership and innovation and are cofounders of the Innovator's DNA (www.innovatorsdna.com), an organization dedicated to helping individuals and companies realize their full innovation potential. Answer: Godrej and Boyce’s product-Chotukool is an example of Disruptive Innovation. The team conducted a number of business model experiments. Answer: After the success of Chotukool in the initial target markets of Maharashtra’s rural areas, Godrej had plans of expanding its Chotukool operations to different geographical areas in India. The Godrej group is betting big on Chotukool. It was made according to the needs of the rural customers. But perhaps more importantly, Chotukool was the test case to bring design thinking and lean start-up experimentation to Godrej—tools that are transforming the company into an innovation leader. Hypercity organizes baking fest Read More. We developed the methodology and provide the ranking of Forbes' Most Innovative Companies list and Most Innovative Leaders list. ChotuKool falls in to the business of refrigeration, to understand the business better let us understand the overall refrigeration business But before that lets looks at the consumer durable market, the consumer durable market consists of products from watches to fans. This pricing constraint meant that the traditional appliance supply chain (which had been operating for fifty years) did not work well for distributing a low-cost, low-margin product to customers in rural areas having few appliance stores. Godrej & Boyce Mfg Co Ltd ‘Seeing the invisible and understanding the latent’ is the essence of leadership! (AP Photo/Achmad Ibrahim), EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation BrandVoice, As Navroze Godrej, director of special projects, recalls. Because the team appeared to have created a solution that customers wanted, most companies would assume it had succeeded and would assimilate the product into its existing business model—its approach to communicating with and capturing value from customers. As the team members traveled all over India, they were shocked by how wrong their initial guess had been. All Rights Reserved, This is a BETA experience. As a company run for more than a century according to the best b-school thinking (it is no. As the brand name suggests, ChotuKool is a small cooling device that works almost like a refrigerator The product has been recently developed by Godrej & Boyce Ltd ChotuKool is currently being sold in villages of Maharashtra and Goa in India with some success The company plans to make it available in other states before the festive season of 2011 And we had preconceived notions of how to build a brand that resonated with these users through big promotions and fancy ad campaigns.”, To reinvent their business, Godrej utilized a set of common innovation steps that we describe in our research for The Innovator’s Method—steps that help leaders in established companies turn innovative ideas into innovations. Godrej ChotuKool: A Cooling Solution for Mass Markets Q.1. “It will certainly help us in overtaking competition,” says Sunderraman.