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--vis prevalent market scenario ...................................................................... 5
Solutions Strategic Brand Plan .................................................................................................................. 8
Timelines for Implementation ..................................................................................................................... 13
Investment Plan........................................................................................................................................... 14
Expected Outcome ...................................................................................................................................... 14
Future Brand Strategies............................................................................................................................... 15

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.

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.

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.

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 premium and distinguishable from its competitors.

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

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

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

Due to high pricing, many customers find the products unaffordable

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

INDUSTRY ANALYSIS
The Textile Industry in India is one of the largest segments of the Indian economy accounting 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.
Indias home textile industry is expected to expand at a CAGR of 8.3 per cent during 201121 to
USD8.2 billion in 2021 from USD3.7 billion in 2011 India accounts 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 supported 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, Indias share was 11 per cent against Chinas 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. Its
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
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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,
Kohls, Macys, etc.
- Welspun India Ltd. also owns the
following home textile brands :
Christys (Luxury)
Spaces (Modern)
Welhome
- 94% of WILs 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.

Analysis of observations vis--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 terms of behaviour they are focused on value seeking Indian
customers who dont mind paying price premium 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

Online store

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,

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.
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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 Dyeings 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 Dyeings 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 DYEINGS 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 premium 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.

 Low End Customer :

Bombay Dyeing has set its sights on the rural home textile market, following the expansion
of its premium range.Bombay Dyeing is planning to tap upcoming 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
Dyeings new positioning.
Going Digital:
In order to engage with young customers, Bombay Dyeing is going digital. It gives the brand
real-time feedback 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

Capitalizing on their brand recall Bombay Dyeing will be repositioning itself as a premium
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 Indias 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

This collection was conceptualized for consumers who love to constantly change their home
dcor. 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 Dyeings positioning will change from a
low value brand to an aspirational one. The brands offerings will feature more premium

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products enabling it to charge a premium price. It will have extended price points ranging from
Rs. 500- Rs. 10,000.
PLACE
Due to premium 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 Fathers 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

To further facilitate the brands outreach Bombay Dyeing can advertise a couple of its
collections in home dcor magazines such as House Beautiful, Housekeeping, Refresh Your
Style, Dcor 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
designing houses as well as prominent home dcor 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.
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 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 , Dcor 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.
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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.

Sponsor a Home Improvement show in a lifestyle channel.

Bombay Dyeing can be the title sponsor of a TV show focused on giving home dcor
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 customers needs. They can partner with channels like NDTV Good Times,
TLC etc.

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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