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