Members: DIVERSEY INDIA CASE STUDY

1. Putri Ramadhani M. (29119253)

S Y N D I C AT E 2
2. Billy Barokah (29119266)
3. Nurul Aini (29119237)
4 . Yu s u f Pe r m a n a ( 2 9 1 1 9 2 5 6 )
IS DIVERSEY A SUCCESSFUL COMPANY?

Not yet.
Market share << Market Potential
Market Penetration  Low
Market Development  Low
PORTER’S FIVE FORCES ANALYSIS
Threat of new entrants Threat of substitutes

Medium High
 New Method
 Switching costs are low
 Lower Price
 Price offers is lower
 Industry growing at 10-12%
 Other methods are available
 Swachh Bharat campaign may

bring in new players

Competitive rivalry

Medium
1. No dominant player
2. Low cost offers from
the competitor
3. Few players in end to
end cleaning solution
Bargaining power of Bargaining power of
suppliers customers
High
Medium 1. Low switching cost
• 35% of Diversey equipments 2. Lack of awareness about
are imported, 95% of the total
cleaning perception
imported equipments are from
Europe. 3. Lack of awareness about
• Low bargaining power because the brand among buyers
the market is low 4. Price sensitive
 4C ANALYSIS
COMPANY:
Total Solution Provider for Cleaning, Sanitation & Hygiene
DIVERSEY, INDIA

CUSTOMERS Large, Medium and Small size Business Company

COMPETITION Local Business who provides Low Cost & Low Quality Cleaning Services, Cleaning
Equipment Company, Cleaning Tools & Accessories Company

Technology: Diversey is using high technology for its service

CONTEXT Social: Lack of awareness about the benefits of cleaning & perception about cleaning as
daily chores in India
 S W O T

STRENGTH WEAKNESS OPPORTUNITIES THREAT

• End to end cleaning solution • Higher pricing • Largely untapped market • Lower price offerings by the
• Environment friendly products
• Distribution channels are not • Increase brand awareness competitors
• Offers a superior product and
developed yet • Digital marketing • Lack of change in customer
high level of quality
• Poor inventory management development in the world perception about the benefits
• After sales service as a feature
of cleanliness
• Strong R&D
• Direct sales network • Unorganized market

• Skilled work force • Price sensitive

• Increased competitors
VALUE CHAIN ANALYSIS
 VALUE CHAIN ANALYSIS
1. Inventory Management: Diversey maintained a huge inventory base for the spares, accompanied with significant costs for
ongoing training of technicians. The average warehouse inventory maintained by the company accounted for more than 15% of its India
sales. Diversey faced challenges in inventory management of spare parts. The company was unable to decide on a rationalization
strategy for SKUs. This posed the biggest challenge for growth and put huge pressure on margins.

2. Manufacturing: Diversey developed four regional hubs in the north, south, west and east of India and a manufacturing hub in
North India. The North hub procured most of the chemicals required for Diversey’s operations. The West acted as an import hub.
Diversey imported 35 per cent of its equipment from abroad with Europe providing 95 percent of the total imports. The company
owned its manufacturing hub in the north, and it also had five contract-manufacturing units in the north, west and south.

3. Sales & Marketing: Sales and marketing team played a key role in promotions, getting new clients and building awareness through
demos of products and services. Diversey had a strong network of distributors to deliver offerings to existing clients and generate future
demand projections. The sales support team helped in handling support issues. There was a Customer service team that acted as an
interface between sales team, suppliers and distributors.

4. Human Resource Management: The organizational structure was very wide which led to the operational cost inefficiency.
 Tap the small and mid-size customers
Generating Awareness in potential market and change their mindset, by:
1. Campaigning using digital platform (social media, etc.)
2. Promoting the lifestyle through Hindi Movies
3. Held free demos at the potential market place
Growing stronger distribution channel for the Small-Medium Enterprise:
1. Come up with a smaller range of products to cater to the SMEs. These could be
sold in different packaging with a lower price range
2. Via online marketplace

Strategic 3. Tap the very important market segment: the Dhobis. Make them as partner or
reseller

Options Increasing operational and inventory management

efficiency
1. Identifies the MTBF of the spare parts and buy the stocks for the short life time
spare parts
2. Identifies the statistics of the ‘most frequent asked’ spare parts for the
inventory planning
3. Reduction in lead time for imported components to reduce pressure on
inventory / find local suppliers to substitute the imported components
4. Joint procurement of multiple SKUs from a common supplier effectively reduces
costs
5. Merge the organizations which have the similar activities, e.g Food & Beverages
and Retail & Food Service
Lesson Learned
1. Market India culture-nya kuat  Apa yang bias mengubah hal tersebut
2. Analysis 4C untuk Customer lebih dieksplor wants & needs nya
3. Stakeholder analysis untuk memetakan bagaimana cara atau harus sekuat apa memengaruhi
stakeholders tsb
4. Diversey harusnya focus aja ke kekuatannya saat ini
5. Harus focus ke b2b jgn b2c
6. Masukin regulasi/government di climate
7. Di stakeholder analysis, pecah2 customer sesuai tiernya
8. Masukin employee & industry associate di stakeholder analysis
9. Supply chain/value chain ada 2. Kalau semua operasinya dibuat di dlm satu perusahaan, pakai
yg diversey.
10. Value chain analysis dipake untuk melihat mata rantai mana yg bermasalah atau lemah,
sehingga dapat keliatan mana yg harus diperbaiki