Diversey in India Cleaning Industry in India General mindset of India for cleaning was that of a daily chore.

. Use of Broom and plain clothes (pochas) was prevalent. Cleaning was considered as a operation to be done by lowest socio-economic segment of society. There was absence of organised players offering end to end solution. The advent of MNCs, big shopping malls warranted more scientific approach towards cleaning. Unorganised sector was having a predominant share in the market (70%). This presented a huge opportunity for future growth for market players in organised sector.

Diversey in India Diversey entered India in 1998 launching the concept of mechanised and scientific cleaning. The company grew by leaps and bounds achieving a growth of 20 times in around 11-12 years by differentiating itself from completion. The company strives to achieve a growth of atleast 3 times in next 3 years. The Indian market is still in a concept building phase and customers need to be educated and persuaded to adopt scientific cleaning methods.

Creating a Niche Diversey Launched itself as Leading provider of cleaning, sanitation and hygiene products and services across industries. The company also provided consulting and maintenance services thereby differentiating itself from competitors as a end to end solution provider. The company generated public awareness about mechanised and scientific approach to cleaning challenging the extant mindset of cleaning as a chore. The company differentiated itself from other service providers by focusing onf B2B customers. They also focused on selling the products emphasising on protect, preserve and transform. Company was providing high quality, safe and reliable cleaning related products and service solutions as well as awareness on science of cleaning to the institutional customers.

Diversey Timeline Diversey was founded in 1923 in Chicago, USA. In 1978 it was acquired by Molson group. Unilever took it over in 1996 and merged it with Lever industrial creating Diversey Lever. Johnson group acquired Diversey from Level Industrial to form Johnson Diversey. Subseqently, in 2010, the name of the company was changed to DIVERSEY. By 2012 the company was a global player providing commercial cleaning, hygiene products, food storage solutions, etc.

Challenges in Indian Market The Indian Market was captured by lots of local players. Indians had a mindset of cleaning being a daily chore. For them cleaning was basically by water and phenyl. Pocha was the major cleaning tool. Furthermore, the Indian market was price driven. The abundance of

labour at cheap rate lead to non adoption of mechanised/ scientific approach. Additionally the price factors lead to no emphasis on brand, service or product quality. The unoragnised sector was holding 70% market share even in 2012. There was an absence of end to end solution provided giving an edge to the Company. However, presence of various players in different segment created fragmented competition for Diversey in different segments.

Diversey differentiated itself by placing itself as Total Solution Provider. It ensured Usage of only environment friendly chemicals (no banned/ harmful chemicals). Quality of product was emphasised upon. Also it emphasised that the chemicals it was using/ providing ensured longer life of surfaces/ floors and fabrics it was used upon compared to other products. Hence, the solutions provided were to be considered on value delivered basis and not on per kg basis. It projected itself as a unique and best quality end to end solution provider. It also provided supplementary education to users to change the prevailing mindset. It formed a dedicated teamChannelsto reach the lower and mid end market. Organisational Setup The company operated by setting up four different lines of business (LOBs) which looked after: 1. 2. 3. 4. Hospitality and health care Building, retail, education and government Food and beverages Emerging Markets

It had a separate setup for administrative purposes which looked after Finance, HR, Operations, R&D, Marketing, Value chain, etc. All the LOB heads and administrative heads reported to VP, Indian Subcontinent. Clients The company focused on four categories of market. The first category consisted of International Large Accounts comprising Multi-National Companies having buying arrangements across multiple countries. The services provided were as per global standards customised to local requirements. The second category comprised local large accounts. This category consisted of large Hotels, Hospitals & Corporate having presence in more than one city of India. These had large volume requirements. The mid-sized market included Hotels, Hospitals, Offices having medium volume requirements for cleaning needs. The fourth category was small units which were predominantly controlled by unorganised sector. Operational Setup To ensure pan India presence and ease in logistics the company has manufacturing setups in North, West and South. One of the northern plants is owned by the company itself and is the chemical procurement and production Hub. The other setups are on contract basis. The western plant acts as an import hub.

The company had a robust Sales & Marketing Setup. It had a Direct Delivery Channel, Network of distributors across country and a sales support team. Key Resources and Competency The company had a good dedicated team who were focused on understanding Customer Needs. After understanding the customer needs the solutions were customised for each customer. The chemical provided by the company was superior in quality. It emphasised on end to end delivery solutions which benefited the customer as they had to interact at only one point. In additional to the marketing and operational setup the company had a full fledged R&D centre. The centre had an Innovation Cell which developed products based on Performance, Stability & Consistency, Usage Cost and viability. The expert centre group of R&D managed the queries of the customers and provided consulting activities. Development Services was responsible for activities related to management and sourcing of packaging material and raw material as well as process engineering. Future Challenges SolutionsCoping up with local competition: Advertise more about Unique Selling Points (USP) End to End Solution Value for Money Environment Friendly products (no banned chemicals) Spread awareness about efficacy of mechanised cleaning Tie up with mid segment hotels creating brand ambassadors (akin to Intel Inside) Caption in work areas YOU ARE UNDER DIVERSEY PROTECTION helping in information percolation to consumers (B2C)

Changing Mindset of people wrt: Cleaning a daily chore Usage of water and Phenyl One size fits all (one product for all service)

Endorsement by Health Service providers Tie up with Government Agencies (Health care and Environment protection) Enter cleaning agreement with schools/ colleges/ institutions Reaching potential customers like dhobis:

Place products in retail (kirana) stores Direct selling, educate them about cost effectiveness Providing credit facility to dhobis Bringing down inventory carrying cost: Attempt to indigenise products Develop local spare part suppliers