Co-creating Value in New Product Development: A Case Study on Chotukool (a Portable Refrigeration System by Godrej and Boyce)

Abstract

Internet and especially Web 2.0 technology has brought in a paradigm shift in the marketers and customers' interaction. Traditionally marketing meant "talking to” customers but advent of Social media heralded the concept of "talking with” customers” with the discussions spreading far and wide through the social networks. Unlimited amount of information and the ability to communicate with other customers has resulted in a sense of empowerment in the customers' attitude and mindset leading to an enhanced role in exchanges with the company (Ernst et al, 2010). As C.K. Prahlad (2004) noted "the meaning of value and the process of value creation are rapidly shifting from a product and firm centric view to personalized consumer experiences. Informed, networked, empowered and active consumers are increasingly co-creating value with the firms”. Due to rising level of global competition combined with an era of social media where no company can ever feel safe or can afford to remain complacent, companies are faced with increasingly challenging questions, the most important being "where to find future growth” and "how to get or stay connected with the customers”. One of the concept which has overwhelmingly appeared as an answer to the above concerns is "Co- creation”. The concept of Co- creation has emerged as a real social media revolution. This paper is a modest attempt to understand the concept of co-creation, the types of co- creation and the benefits of the process to both the customers and the firms with various examples from international and Indian context. A case study on Godrej Chotukool has also been included to further highlight the process of co-creation adding value to its multiple stakeholders.