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Submitted by Rohit Aru B-03 Seema Patil B-34 Bidyut Patowary B-35 Hardik Shah B-44 PTMBA 3rd Year
(2011-2014)
Relative Advantage
The perception that the innovation is more satisfactory than items that already exist in the same class of products.
Compatibility
Is an estimate of harmony between the innovation and the values and norms of of potential adopters.
Complexity
Is a gauge of the difficulty faced by a consumer in understanding and using the innovation.
Triability
The relative ease of testing out the innovation before making a decision
Observability
The degree of visibility afforded by the innovation
Question 2: What are the challenges (in general) of producing something for a mass market?
Answer: The challenges in general of producing something for the mass market area as follows. 1. Heavy advertising cost, to establish brands & keep them in public eye. 2. High development cost of products. 3. Competition is often fierce. 4. Companies must be market this brings high innovation & market research cost.
The advantages & challenges of mass marketing can be accessed from the following diagram.
Question 5: Discuss how you would price this service to customers, how would you manage costs.
Answer: Pricing a disruptive innovative product like Chotukool is quite a critical factor & we thing the current price that Godrej were asking for was quite competitive because It was providing the customers a value for money product. For managing cost the design & development team of this product were very much alert right from the product design stage to the production phase. In this way the customers can be provided a value for money product which they actually need by curbing out the other non essential portions.
Here in the case of Chotukool the entire compressor part was replaced with a thermoelectric or peltier cooling technique & thereby the cost of the product was drastically reduced. As the prospective market of Chotukool are mainly on the rural areas so aesthetic part of the product is not so important & thereby we can search for cheaper graded plastic granules which will reduce the cost of injection moulding of the casings & finally it will reduce the variable cost of the product.
Question 7: Discuss the risks to the Chotukool model from newer innovations.
Answer: As per the case till the time Chotukool was launched there was no direct competition to it but there was a high risk that traditional refrigerator manufactures might bring out low cost model in the near future reducing the existing price gap to a considerable extent. Chotukools current price was just about 50% of the lowest cost refrigerator, unlike other classic disruptive innovations. Mitticool is one of such low cost alternatives which had a different functionality, customer value proposition & market segment, posing less of a direct immediate threat to chotukool. However such
innovations, along with prospective low-cost versions in the category of traditional refrigerators, posed the threat of potential substitutes eventually appearing in the market for cooling solutions. Being a player of Indian origin in the home appliances market that has global giants like LG and Samsung Godrej management thinks that it had an edge over others in decoding the rural folk. While all the major appliance makers in the country are taking the Indian consumer very seriously, finding alternate channels to expand distribution reach, and investing heavily on research and development to bring out India-specific innovations, not many are as yet looking at the hinterland. Another home grown name, Mirc Electronics, which sells the Onida brand of products across electronics and appliances though, has created rural-specific brand Igo, which sells LED and solar-based torches and lanterns in villages across states like Maharashtra, Gujarat, Madhya Pradesh, Uttar Pradesh and others. Lastly to mitigate the risk from other new innovations Godrej has to concentrate on continuous improvement.