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Innovation in and for Emerging Markets

In today’s society, innovation is critical to the long-term success of organizations across different industries. A case study involving Chotokool addresses the importance of achieving success in emerging markets where there are significant challenges related to creativity and innovation.  Innovation must be explored in a new and exciting manner so that there are sufficient opportunities in place to influence outcomes and to reflect upon the opportunities that innovation provides to organizations in this manner (Simanis and Hart 79). By using the Bottom of the Pyramid (BOP) concept, this demonstrates the potential impact of a product that is both cost effective and useful to the largest group of consumers for which marketing of a product is relatively unexplored (Simanis and Hart).

The Chotukool, a cooler developed and marketed in India as a feasible alternative to a refrigerator, was created with the mindset of disruptive innovation, whereby non-users of a product would develop interest and perhaps create a niche market for a new product that provides them with a level of convenience that is not currently known, particularly since BOP consumers are typically lower income with fewer resources available to them (Richard Ivey School of Business 4). The design of this product required an innovative yet realistic approach that would translate into an affordable product for mass purchase and use (Richard Ivey School of Business 4).It was expected that the product would attract a large audience because of its portability and efficiency over time (Richard Ivey School of Business 5). The BOP group is a key target market for the Chotukool because this group does not have preconceived notions regarding the product and its potential within their lives to improve the level of convenience that they experience (Simanis and Hart).

The use of a creative strategy to improve the visibility and market share of the Chotukool required a marketing practice that would attract bottom of the pyramid groups to the fold (Richard Ivey School of Business 6). This was an important tool in providing BOP individuals with a form of refrigeration that would meet their needs and that would also demonstrate their understanding of the importance of innovation and product growth (Richard Ivey School of Business 6). One of the key factors was to introduce new values to the mix because many people in less suburban areas of India did not understand the importance of refrigeration (Richard Ivey School of Business 6). Therefore, they faced critical challenges that required creativity to ensure that BOP audiences would find this product attractive (Richard Ivey School of Business 6). Larger organizations with many products would benefit from the BOP group as a potential market and could focus on how to best move forward with drive and a focus towards products that will serve this larger population in an effective manner that would improve their revenue and growth streams (Simanis and Hart).

The ability to innovate in an emerging market such as refrigeration in a country of over a billion people is a challenging task; therefore, this requires an effective approach that is based upon creative ideas that will generate interest but will also be attractive to a broader audience. It is important to identify these challenges and to take the steps that are necessary to develop new ideas to expand visibility and growth during product introduction and beyond. The product in question reflects the ability to capture a wider audience and to encourage the growth of the product due to its innovative strategy and development. These efforts will encourage continued innovation in specific markets to achieve improved financial results for the organization and its people.

Works Cited

Richard Ivey School of Business. “Godrej Chotukool: a cooling solution for mass markets.”  2011: 1-11.

Simanis, E., and Hart, S. “Innovation from the inside out.” MIT Sloan Management Review,  50.4(2009): 77-86.