Bombay Dyeing 6j5g62

Brand Management Bombay Dyeing

Submitted to:

Submitted By:

Prof. Rajeev Kamble

Section B2C1 DrishyaKrishnan (2014090) GarrimaParakh(2014091) GauravGarhewal(2014093) Gazal Gupta (2014096) HarshitMathur(2014102) JatinSethi(2014122)

Contents Critical observations ..................................................................................................................................... 2 Analysis of observations vis-à-vis prevalent market scenario ...................................................................... 5 Solutions – Strategic Brand Plan .................................................................................................................. 8 Timelines for Implementation ..................................................................................................................... 13 Investment Plan........................................................................................................................................... 14 Expected Outcome ...................................................................................................................................... 14 Future Brand Strategies............................................................................................................................... 15

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Critical observations During our visit to several retail stores in Nagpur, we have made the following observations: 

Over the last few years, the company has shown a growth in its brand value and the global exposure it has in the market by sticking on to the standards and the quality assurance to the customers which has been promised by them.

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Findings in the bed brands were: Flora, Ambrosia and Zinnia brands fall within the price range of upto Rs.2000. The designs, patterns and the colour range available within the brands make it exquisite to the buyers to stick on to the brand.

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In the bath items the fast moving brands were: Santino, Alpine and Flora fall under the price range of upto Rs.800. The variant and the vibrant colours available within a reasonable range make it more demanding among the customers.

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The customers of the age group 45 & above visiting the stores are mainly due to the availability of wide range of designs in the promised quality and the standards, which make the brand and distinguishable from its competitors.

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Most of the purchases are made by the age group 30-45 from the observed customers

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The customers stick to the brand because of its high quality.

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The communication and assistance provided by the stores are satisfactory since the customers get a great help in selecting the required products.

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Due to high pricing, many customers find the products unaffordable

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Many customers have complained of unavailability of stocks in the stores.

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INDUSTRY ANALYSIS The Textile Industry in India is one of the largest segments of the Indian economy ing for over one fifth of the country's industrial production. It provides employment to around 15 million people who have helped produce one of the largest, most fascinating varieties of yarn, fabric, home textiles, home furnishings and other textile products in the world. The Home Furnishings Industry in India falls under the purview of the textile industry. Indian home furnishings manufacturers and home furnishings exporters offers a wide range of bedspreads, furnishing fabrics, curtains, rugs, durries, carpets, placemats, cushion covers, table covers, linen, kitchen accessories, made-ups, bed spreads, bath linen, and other home furnishings accessories to the world. India‟s home textile industry is expected to expand at a CAGR of 8.3 per cent during 2011–21 to USD8.2 billion in 2021 from USD3.7 billion in 2011 India s for 7 per cent of global home textiles trade. Superior quality makes companies in India a leader in the US and the UK, contributing two-third to their exports Indian products has gained a significant market share in global home textiles in the past few years The growth in the home textiles would be ed by growing household income, increasing population and growth of end use sectors like housing, hospitality, healthcare etc. In 2014, Home Textile Industry at global level was valued at USD45 billion. Of these, India‟s share was 11 per cent against China‟s share of 34 per cent. COMPANY ANALYSIS Bombay Dyeing is the flagship company of the NusliWadia Group that was established in 1879. It was started by NowrosjeeWadia, who began the operations on small scale with cotton yarn spun dip dyed in three colours Turkey red, green and orange and later was laid out in sun to dry. Presently it has a distribution chain of over 600 exclusive stores across the country. It is engaged into manufacturing textile, real estate and chemicals. It manufactures wide range of cotton suiting, polyester cotton suiting, shoe lining and duck fabrics, satin furnishings, yarn dyed fabrics, towels, table tops and napkins, satin bed sets, etc. Textile manufacturing is main activity of Bombay Dyeing with 5 manufacturing facilities confirming to international standards. Its daily production of fabrics is 300000 meters. It‟s spinning and winding facilities has an installed capacity of 135,336 ring spindles. Key Players in Home Furnishing Textiles Key players in the home textiles market have large manufacturing capacities spread over many locations and carry a sound market name, of both their company and their products. Many such players have foreign tie-ups and have their 100% owned overseas subsidiary. Most of these companies have strong presence in the overseas market as exporters. These players sell their 3

products of various ranges through their own retail outlets inside and outside the country as well as through franchisee and multi-brand retail outlets. Company Welspun

Alok Industries

Trident Group

Gujarat Heavy Chemicals Ltd (Textile Division)

Nature of Business Description Manufacturer, Exporter - A fully integrated home textile company. & Retailer - It has a strong distribution network in over 50 countries including US, UK, Europe, Canada and Australia. - It is a supplier to 14 of the top 30 global retailers - Walmart, Target, J C Penney, Kohl‟s, Macy‟s, etc. - Welspun India Ltd. also owns the following home textile brands :  Christy‟s (Luxury)  Spaces (Modern)  Welhome - 94% of WIL‟s products are exported to more than 30 countries Manufacturer & - One of the largest integrated sheet set Exporter manufacturers and exporters from India - Manufacturer of world-class home textiles, Alok has capacities of 82.50 million meters of sheeting fabric and 6700 tons of terry towels for its home textiles business. Manufacturer & - Formerly known as Abhishek Industries, it Exporter is engaged in yarn manufacturing and Terry Towels. - The company is among the top five terry towels producers in the world. - The company is a leading supplier to global retail majors including Wal-Mart, IKEA and Harrods. - Major clients include ITC Hotels, Taj Hotels Resorts & Palaces, Oberoi Hotels and Resorts. Manufacturer & - The textiles division at GHCL is a Exporter vertically integrated manufacturing facility with spinning, weaving, product design and development, sourcing and distribution, and retail stores at a global level.

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Analysis of observations vis-à-vis prevalent market scenario CURRENT SCENARIO Current STP Segmentation Bombay Dyeing divides its market as Indian and overseas market. Within India, it aims to cater to married couples, especially middle aged women as well as the working class earning medium to high level of income. In of behaviour they are focused on value seeking Indian customers who don‟t mind paying price for high quality textiles. Targeting Targets upper middle class to upper class households and niche market for design conscious customers Positioning Indian legacy brand that provides high quality home furnishing products Value Proposition Change is Beautiful Points of Parity (POP) Luxury brand Several competitive brands of Bombay Dyeing belong to the luxury textile industry. Bombay dyeing offers a considerable level of social status and prestige for the upper-income group. For example, SKumar and Welspun are some luxury brands that allow customers to enjoy the perks of owning a “branded” product, competing directly with Bombay dyeing. Distribution Channels Generally, many competing brands of Bombay Dyeing have a multi-channel distribution strategy which consists of the following: 

Physical stores

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Online store

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Multi-brand outlets

Through these channels, brands not only connect and reach out to local customers, but also make the latter feel valued and appreciated. Some of the brands offer shipping services outside India,

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while others provide an alternative route in which customers who reside outside India can call to place orders and make the necessary arrangements. Wide range of products Bombay Dyeing, along with its competitors offer various collections to cater to different customers. Take the example of the major Asian manufacturer of terry towels, Welspun. It has made a foray into the domestic retail business with a home textile brand, Spaces. Tapping the not-so crowded home furnishing segment, Spaces offers a range of bed, bath, and kitchen & table linen, all specifically for the Indian market. Indian Brands Many Bombay Dyeing competitors are Indian and exude a distinct Indian style, specifically brands like Skumar, Creative Mobus Fabrics Pvt. Ltd. and Kurlon, instantly appeal and attract the local customers. But it has been observed that the customers tend to view international brands as being better and offering higher levels of social status and prestige over local or Asian brands. As United States is perceived to be westernized, the style and attitude exuded by the brand, Portico attract Indian consumers. Points of differentiation: The given below are the points of differentiation, which Bombay dyeing pursues: Greater mindshare: Bombay dyeing started in 1879; it enjoys the legacy of being the oldest and heritage brand of India. The authentic designs: Bombay dyeing has fleet of its own in house designers who are working hard to produce new and elegant designs. Bombay dyeing exclusive stores: The brand has a legacy of having a large no. of company owned and franchised stores in India, which covers the whole India. Due to this, it has a strongly connected distribution channel network. Complete home solution: Bombay dyeing offers a wide range of home furnishing including bed and bath, linen, curtains, towels and clothing etc. 6

WHY IT FAILED? Bombay Dyeing has business in three segments- Real Estate, Polyester Manufacturing and Textile. Their major revenue comes from Real Estate business and Polyester Manufacturing. In 2008, Bombay Dyeing‟s real estate business contributed 30% to its total revenue; textiles brought in 20% and PSF, 50%. So the company earlier focused more on real estate business and polyester than Textiles. Bombay Dyeing‟s competitors such as Alok Industries Ltd, Welspun Group and Trident Group have done well in the bed and bath linen segment. These companies have developed strong market with a good portfolio of export and domestic products. Now, because of increased competition, it will be difficult for Bombay Dyeing to increase their focus on textile business. Over the years Bombay Dyeing has become a household name across the country, but its brand is being eroded by its failure to move beyond simple franchising opportunities and creating a brand for itself. Also, the textile sector suffered slowdown in 2008-09 because of reduction in export volumes as a result of slowdown in US and pricing pressure because of oversupply in the market. India was losing its market in foreign markets to the textile exports from China. The recession had a severe impact on the profitability of many textile companies with many not being able to recover their costs and running into losses during the recession and Bombay Dyeing was one of them. Also, for a long duration Bombay Dyeing offered huge discounts to their customers in the textile segment and as a result customers became habitual to the habit of getting discounts. In fact, people started calling it a “discount brand.” BOMBAY DYEING’S PLAN OF ACTION: Bombay dyeing has planned to undertake various measures to rejuvenate its company. The following are the action plan as told:  Bombay dyeing is planning to have a dual retail strategy i.e. cater to both low end and high end of the segment :  High End Customer: For the high end of the segment, the company is roping in new designers and staying away from too many discount sales in order to change its brand image with consumers. Its new retail initiative would include having shops to exclusively cater to the end of the market.New categories such as mattresses are also being introduced to expand its product portfolio with price points between ₹8,000 and ₹45,000.

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 Low End Customer : Bombay Dyeing has set its sights on the rural home textile market, following the expansion of its range.Bombay Dyeing is planning to tap organised rural marts to beef up its distribution network. Targeting the rural and semi-rural areas would pose a challenge.  Young Consumers : Bombay Dyeing has also been trying to address the changing needs of younger consumers who might find the 135-year-old textile brand too „old fashioned‟ for their tastes.A new television campaign with the tagline „Change is Beautiful‟ is also expected to help Bombay Dyeing‟s new positioning.  Going Digital:  In order to engage with young customers, Bombay Dyeing is going digital. It gives the brand real-time on what is being accepted and what is not being liked.  Today most of the youngster / working people prefer buying products online thus buying by selling the products on Amazon, Flipkart and various other e-commerce sites it has enabled itself to become more visible in the minds of generation Y.

Solutions – Strategic Brand Plan Segmentation: The segment for the brand would be Home Textiles Target Market: We will be targeting the upper middleclass segment, specifically people in the age group of 2540. The target market can be further broken down into 3 subcategories:   

Young urban professionals Newly Married couples Urban Working couples (Double Income No Kids)

Positioning: Quality & Style

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Capitalizing on their brand recall Bombay Dyeing will be repositioning itself as a brand.Since Bombay Dyeing is known for high quality products, the new campaign will highlight this feature while at the same time coupling it with their new and contemporary outlook. Value Proposition: New Age Homemaker NEW PRODUCT OFFERINGS The following are the new product offerings by the brand:  BED COLLECTION Bed sheets, comforters, quilts, blankets, pillow covers, cushions Wedding Collection A wonderful amalgamation of Couture and Tradition, this collection celebrates the joy of The Great Indian Wedding. Inspired by the beauty of India‟s rich past this collection has beautiful colours, prints and fabrics fit for royalty. At its core this collection offers elegance and unmatched luxury. The patterns and motifs depict regal Indian art and culture with an emphasis on bold designs to give an aura of opulence and timelessness.

Urban Living

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This collection was conceptualized for consumers who love to constantly change their home décor. These designs are for the contemporary households. Bold and graphic designs are coupled with bright colours representing the various moods with each design cherishing every special moment in life. Blush Every season brings with itself a fresh wave of tones and tints that enthralls us. This collection is for those who want to liven up their indoors with an earthy, exotic beauty. It features a truly artistic and detailed range full of floral and motifs and elegant patterns.

Forever Young This collection is defined by young pop culture with solid colours and graphic prints and slogans representing individuality, attitude and style. The funky graffiti style prints in vivid and vibrant colours is meant to represent the spontaneity and originality of the new generation. PRICE Since we are targeting the upper middle class, Bombay Dyeing‟s positioning will change from a low value brand to an aspirational one. The brand‟s offerings will feature more

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products enabling it to charge a price. It will have extended price points ranging from Rs. 500- Rs. 10,000. PLACE Due to price range the main focus areas would be Metros and Tier 2 cities. PROMOTION  MARKETING COMMUNICATION a) TVC Its more recent TVC came out for Father‟s Day. Its bid to connect with the young customer was backed by a customer survey that said that the young shopper did not perceive the brand as modern or progressive. From a new ad campaign, fluorescent colours to revamping the store experience, Bombay Dyeing laid out an elaborate plan. It set its sights on the new-age homemaker. The new TVC featuring a recently divorced father and his teenage daughter is a statement on contemporary times. There were two main thoughts behind the ad. One was that it is no longer a married woman with kids who is a homemaker. A divorced father is also a homemaker as is his teenage daughter who looks after his house. The concept behind the TVC was fine but it suffered due to lack of exposure because it was not heavily promoted on television. What the company should focus on now is to create more such commercials and also increase the frequency of these to garner more viewership. To capitalize on their brand recall they should focus on corporate branding. b) CATALOGUES/MAGAZINES 

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To further facilitate the brand‟s outreach Bombay Dyeing can a couple of its collections in home décor magazines such as House Beautiful, Housekeeping, Refresh Your Style, Décor as well print ads in newspaper supplements such as BRUNCH (Hindustan Times) and Graphiti (The Telegraph). They can provide exclusive catalogues featuring their latest collection to reputed interior deg houses as well as prominent home décor showrooms to broaden their outreach.

 SHOWROOMS Apart from their existing stores Bombay Dyeing will set up exclusive showrooms across major cities in the country such as Delhi, Kolkata, Mumbai, Chennai, Bangalore, Pune, Hyderabad, Chandigarh and Jaipur.

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In order to appeal to the customers‟ sense of vision and touch, these showrooms will showcase replicas of contemporary living rooms and bed rooms.

This will provide the brand with an added advantage of enabling their customers to actually experience and visualize their dream home. With India being a diverse country it becomes very essential to customize the product according to tastes and preferences of the various regions. For example, the product line of North India will contain more of embroidered patterns and vibrant colours; meanwhile block prints, mirror work and tie and dye will feature prominently in the Western region; East India will have handloom and handicrafts whereas the Southern part of India will be dominated by silk products.  EVENTS  Participation in Textile Exhibitions like “Heimtextil” organized annually at PragatiMaidan.  Sponsor sporting events like marathons where they can give away their towels to all the participants, thereby increasing their brand visibility. 12

 BRAND ASSOCIATIONS Bombay Dyeing can partner with some of the 4 star hotels, resorts and spas and expand their B2B customer base. The B2B market had great potential for both bed and bath products and therefore needs to be exploited more extensively.

Timelines for Implementation The brand re launch coincides with major national festival that is Diwali. So, before putting the TVCs and communication strategies in place, the company should make sure that its products are available in the market.

Serial No.

Communication Medium

Start Date

1.

TVC

Prime time spots in leading TV channels like Sony, 15/10/2015 Star , Zee and Lifestyle channels like NDTV Good Times, TLC ,Fox Traveller.

2.

Magazine

Covering 2 to 4 pages in magazines like - House 25/10/2015 Beautiful , House Keeping , Décor and Refresh Your Style.

3.

Newspaper

1/11/2015 & 8/11/2015

1-1/2 page ad in leading national dailies like TOI, Hindustan Times ,etc. 8th November is just before Dhanteras which is considered very auspicious.

4.

Events (Marathon)

15/12/2015

Sponsoring Mumbai Running and Living Half Marathon.

5.

Showrooms (Phase 15/3/2016 I)

Opening of showrooms in Metros- Kolkata, Mumbai, Bangalore & Delhi before the wedding season.

6.

Showrooms (Phase 15/5/2016 II)

Opening the rest of the showrooms during the period in Jaipur, Chennai , Chandigarh , Hyderabad and Pune.

Target Medium

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Investment Plan We are using Top – Down approach for estimating the amount required for investment which would be approximately 85 Crores. 1.

TVC

20 Crore

2.

Magazine

5 Crore

3.

Newspaper

10 Crore

4.

Catalogues

25 Lakh

5.

Events (Sponsorship)

4 Crore

6.

Events (Exhibition)

1 Crore

7.

Showrooms

40 Crore

The total investment comes out to be 80.25 Crore , So the balance .i.e. 4.75 Crore will be kept in hand for any future needs.

Expected Outcome Bombay Dyeing is perceived to be a top-end manufacturer of the market, which has only 5% under organized home textile market. If it decides to be in the other side of spectrum to tap unorganized side of market through broadening its range to low-price segment, it can improve cash inflows considerably.Following our brand plan, it should also start to widen its reach by tying up with retail chains (Big Bazaar, Lifestyle, Shoppers Stop etc.). By 2025, we estimate Bombay Dyeing products to be available in at least 4,000 outlets aiming at all sections of customers, with prices ranging between Rs500 and Rs10,000. The Bombay Dyeing and Manufacturing Company Ltd. had revenues for the fiscal year 2015 of 23.28bn. This was 10.74 % below the prior year's results.

Figure 1: Bombay Dyeing expected revenue Considering our brand plan and the average growth rate of the industry to be about +5.95%, we expect its annual revenue to cross 28-30 bn by 2017. 14

Future Brand Strategies 

Tapping the rural market Once the brand is gains sufficient footing in the upper middle class segment, the company can focus on expanding into the rural market. Bombay Dyeing as a brand symbolizes quality and trust due to its past legacy hence by creating a sub-brand they can try to penetrate the rural market as well as small cities. This sub-brand will have lower price points compared to its current products.

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Sponsor a Home Improvement show in a lifestyle channel. Bombay Dyeing can be the title sponsor of a TV show focused on giving home décor makeovers to your existing house. This would provide them with an opportunity to showcase the different ways in which their wide range of products can be styled and customized according to the customer‟s needs. They can partner with channels like NDTV Good Times, TLC etc.

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Revamping their website Their website can be made more interactive by providing a space to interior lovers that showcases ideas and tips about all things Home Fashion wherein they can blog about and provide ideas for various DIY projects.

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