Q.1. Assess the business scenario for ChotuKool? What are the critical success factors for this product to succeed?
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. With the help of the below mentioned data we can understand the penetration and reach of a consumer durable like refrigerator in comparison to a product like Television Set, car, bike or Grinder.
This will help us in having a deeper knowledge of the placement of a retrigger in the minds of the consumer in comparison to other consumer durables. With the analysis of the below shown chart we understand that refrigerators have been able to penetrate only 46% of the urban market on the other hand it has barely scratched the rural market by just reaching a meager 8%. Overall most of the consumer durable shown below have a decent reach in the rural markets except for car and refrigerators, this helps us understand that there is an untapped market available in the rural areas for this specific consumer durable
Ownership of consumer durables (% of household)
Refrigerators
Pressure cooker
Bicycle
Wrist watch
Ceiling fan
Mixer/Grinder
Colour TV
Motorcycle
Car
0%
3%
12%
19%
17%
19%
34%
48%
56%
54%
8%
38%
53%
69%
76%
88%
89%
46%
80%
Urban
Rural
20%
40%
60%
80%
FY 2008 – 09 | Rs/cr | AC&R industry market size | 14,200 (US$ 3.0 B) | Airconditioning systems | 11,000 | Commercial refrigeration | 2,000 | AC&R servicing | 1,200 |
* Approximately 69 per cent population resides in rural India, yet only 35% sales is contributed by rural markets.
However, this sales contribution is expected to increase to 45% in near future. * Rural Consumer durables markets is growing by 30 per cent currently, expected