Submitted to:

Prof. G R
Chandrashekhar

FOUNDATIONS OF
Submitted By:

Group 3

STRATEGIC CONSULTING Abhinav Kamani

– TERM PROJECT
Ankit Kumar

Nishi Saxena

Udit Agarwal
 FOUNDATIONS OF STRATEGIC CONSULTING – TERM PROJECT

INDEX
S. NO. TITLE PAGE NO.
1 ABSTRACT 2
2 INTRODUCTION 3
3 4 P’S OF BOMBAY DYEING – TEXTILE SECTOR 4
4 ISSUE MAPS 5
5 HYPOTHESIS 6
6 RECCOMENDATIONS 7
6.1 REFORMULATE IT’S RETAIL STRATEGY 7
6.2 INCREASE OPTIONS IN ENTRY PRICE POINT 8
6.3 OPPORTUNITIES IN OUTSOURCING 9
6.4 FOCUS ON INNOVATION AND DESIGN DEVELOPMENT 10
6.5 CREATION OF DIGITAL COMMUNICATION STRATEGY 12
6.6 INVESTMENT IN BACKWARD INTEGRATION 13
7 IMPORTANCE OF RECCOMENDATIONS 14
8 LEARNINGS 14
9 REFERENCES 15

GROUP 3 – ABHINAV KAMANI | ANKIT KUMAR | NISHI SAXENA | UDIT AGARWAL 1

 FOUNDATIONS OF STRATEGIC CONSULTING – TERM PROJECT

ABSTRACT

B
ombay Dyeing is an iconic brand with deeply rooted aspirational values in each of its
product offerings. Their endeavour would be to make the brand, products, and the
overall experience 'Young, contemporary and ever-evolving' in the eyes of their
customers.

Besides strengthening their traditional core values of superior quality, unparalleled product
range for consumer franchise. They will do so through product innovations, offerings that
cater to diverse customer preferences and by expanding product availability on multi-
channel platforms.

This report is based on new ways to adopt by Bombay Dyeing to strengthen its Home textile
business and recommendations on how to get revenues flow in from textile portfolio of BD.

By using 4 P’s of marketing, we identified the pain points of Bombay Dyeing’s revenue and
brand and keeping it as base we concluded on recommending 6 new approaches to make
textile revenue take a higher % in the overall revenue of Bombay Dyeing product portfolios.

Bombay Dyeing is a home brand, known by Indians for quite a long time and company
being a century and half old, still not a market leader does alert something is not in place
and that’s how we tried to look at Bombay Dyeing from all the aspects it could possibly be
seen and reached our conclusions.

This report is a set of recommendations we would offer Bombay Dyeing if we are called as
consultants for solving falling textile revenue and how to revamp Bombay Dyeing’s textile
segment which Bombay Dyeing is actually known for!

GROUP 3 – ABHINAV KAMANI | ANKIT KUMAR | NISHI SAXENA | UDIT AGARWAL 2

 FOUNDATIONS OF STRATEGIC CONSULTING – TERM PROJECT

INTRODUCTION

E
stablished by Nowrosjee Wadia in 1879 as a small operation of Indian spun cotton yarn
dip dyed by hand, Bombay Dyeing has now grown to be one of the most respected
and trusted brands in the country.

Driven by the vision to excel, the Group has scaled great heights in the field of
entrepreneurship. Committed to advancement and innovation, we constantly look for
means to reinvent ourselves and set fresh standards of quality.

Since the first store in 1879 and the only store manager, the growth has not only been in our
presence, but also in of how much we offer today. Stylish linens, towels, home furnishings,
leisure clothing, kids wear and a whole blissful range of other products are now available
across 350+ exclusive Bombay Dyeing Retail or 2000+ Multi-brand stores.
All products come with our hallmark finish, great textures, detailed design to match the latest
trends and fine quality which has been synonymous with Bombay Dyeing for over a century.
Delivering the bet designer products at an outstanding value for money has always been our
motto and forte.

Product Portfolio

Bombay Dyeing is currently into three main product portfolios, namely Textile, Reality & PS
Fiber. Highest revenue flowing in from Fiber sales business and contribution from textile being
10%

HOME TEXTILE

BOMBAY POLYESTER
REALITY STAPLE FIBER

GROUP 3 – ABHINAV KAMANI | ANKIT KUMAR | NISHI SAXENA | UDIT AGARWAL 3

 FOUNDATIONS OF STRATEGIC CONSULTING – TERM PROJECT

4P’S FOR BOMBAY DYEING – TEXTILE

SEGMENT

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 FOUNDATIONS OF STRATEGIC CONSULTING – TERM PROJECT

ISSUE MAP
Focus: How to increase Market Share
Product Categories

SKU’s
Product
Product Collection

Competition
Offerings

MRP Price Points

Prevalent Market
Prices
Price
Raw Material Cost

Increase Market Share Outsourcing v/s

Inhouse

Wholesale Offer

Retail Offer
Promotion
Offer Updates

Online Presence

EBO

Place MBO

Wholesale

Looking closely at the issue map, we can see that, 4 P

analysis did give a bigger picture on what all sector
Bombay Dyeing- Textile needed improvement or
revamping.

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 FOUNDATIONS OF STRATEGIC CONSULTING – TERM PROJECT

HYPOTHESIS TREE

To increase
Market Share

Product Price Place Promotion

Bombay dyeing
Focus on innovation Increase Options in Exit textile Create A Digital
needs to
& design Entry Price Point manufacturing, Communication
development reformulate its
Bedsheets Enter outsourcing Strategy
retail strategy

Hypothesis tree gives in-depth sight to the solutions we are

recommending on what should we do to solve the pain
points and as shown in the figure, based on 4Ps we could
focus on solutions addressing the pain points and
following will the discussions on the recommendations.

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 FOUNDATIONS OF STRATEGIC CONSULTING – TERM PROJECT

RECCOMENDATIONS

Bombay dyeing needs to reformulate its retail

strategy

Revenue, Store Presence and Market Share

700 7%
602 590
600 6% 6%
498
500 5%
400 4%
3%
300 250 258 3% 3%
2%
200 128 150 150 2%
100 1%
0 0%
D DÉCOR PORTICO SPACES BOMBAY DYEING

REVENUE STORE PESENCE MARKET SHARE

• From the graph we can infer that D décor earns the highest revenue even though it
has the least number of stores. This is due to the fact that D décor focuses on
Exclusive Business Units (EBU’s) targeting the upper middle-class segment of the
society.
• Even though Bombay Dyeing as a brand should target the basic price range, they
should still get into EBU’s to emphasize their in-house designs and showcase
themselves as design innovators instead of being a monotonous brand with similar
kind of designs.
• BD should initially commence the operations of their EBU’s in Metros and then move
to Tier-1 and Tier-2 cities.
• Also, BD should implement strategic partnership with wholesale channels.

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 FOUNDATIONS OF STRATEGIC CONSULTING – TERM PROJECT

Increase Options in Entry Price Point Bedsheets

MRP v/s SKU’s for Bedsheets
18
Portico 110
190

50
Spaces 156
390

26
D'Décor 59
140

Bombay 15
78
Dyeing 200

0 50 100 150 200 250 300 350 400 450

>2999 1899-2999 799-1899

• The above graph depicts the number of variety of bedsheets available for each
brand. For instance, Bombay Dyeing has 200 units of varieties in the price range of
799-1899. The figures have been taken from online merchandises like Amazon,
Pepperfry and Myntra.
• It can be inferred from the graph that Spaces dominates the market in terms of Stock
Units (SKU’s). More significantly it dominates the market in every price range. This can
be attributed to the fact that Spaces has tie-ups with numerous MBO’s like Hypercity,
Big Bazaar, Pantaloons, Home Stop, Central to name a few.
• Bombay Dyeing needs to target the basic price range of (799-1899). This price range
accounts for the maximum percentage of sales in India and hence gives BD a huge
potential for Market penetration.
• BD should implement a similar strategy as Spaces to tie up with Multi-brand Outlets
(MBO’s) and increase its shelf presence as much as possible thereby improving its
brand visibility.

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Opportunities lie in Outsourcing

If we look at our competitors, namely Welspun and D Décor, analyze their financials and
compare it with ours, we get to see an unobserved behavior.

Bombay
Comparisons Welspun D Décor
Dyeing

Employee Benefit Expenses 66.57 7.5 3*

Cost Of Materials Consumed 478.76 4 2.5

Finance Costs 64.76 1.3 7.4

Power & Fuel Cost 43.89 10.2 1.7

Revenue 258.65 17.7 1.3

times in comparison with BD *Red color denotes

negative

• Comparing on the parameters, such as, Employee Benefit Expenses, Cost of Materials
Consumed, Finance Costs, Power & Fuel Costs and Revenue, we see that Welspun is
far ahead on all the parameters and thus their revenue is 17.7 times higher than us.
Whereas D Décor performed 1.3 times better than us on revenue despite keeping all
the costs below our level.
• With this comparison, we concluded that companies like D Décor have been relying
on outsourcing their most of the products and smoothening their supply chain in order
to do well at revenue generation.
• Bombay Dyeing, on the other hand, is in the process of indulging in each process of
the supply chain, which has in turn proven disastrous for the company. Outsourcing
products not only helps the company to focus on the core function of the company
giving flexibility in the production and products but also regulate the prices and
achieve better financials.

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 FOUNDATIONS OF STRATEGIC CONSULTING – TERM PROJECT

Focus more on Innovation and Design

Development
In today’s world, Consumers preferences are short-lived. They consistently demand new
products with different designs every time, all the time. In addition to this, a loyal customer
expects the company to come up with products in every product category. Bombay Dyeing
has a great presence in the bedding category offering more than 30 design variants.

PRODUCT CATEGORY V/S COLLECTIONS

RUGS 15 5 10 10

TOWELS 10 10 15 10

CUSHIONS 12 10 15 15

WALLPAPERS 30 0

BLINDS 15 0

BEDDING 30 20 40 30

CURTAINS 18 10 25 10

UPHOLSTERY 25 0

0 20 40 60 80 100 120 140

D DÉCOR BOMBAY DYEING SPACES PORTICO

• Although the company is present in most of the categories like Rugs, Towels,
Cushions, Curtains and Bedding, product categories like Wallpapers, Blinds and
Upholstery are open for penetration.
• In addition, to serve the design demands of the consumers, the company needs to
create more season wise design collections to give more options to its consumers.
• The company also needs to move from only printed works to embroidered, patch
works, and laser cut. The competitors are leveraging new works that has helped them
to gain a significant market share in different product categories.

EBO
• includes the exclusivity of a brand
• creates a store image to convey its brand image
• enables the brand to choose the location, size, and configuration of the store
• get more discounts and incentives comparatively over multi brand retailers
• maintains uniformity in store design, interiors, products, store size, promotions
undertaken, and its product pricing
Drawbacks:
• get very little footfall
• lost out on customers who seek options of similar brands

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• requires high investment

• challenging for a retailer to find the right location to set his store
• Note: Customers prefer to go to a store, where they can see many brands, compare
their performance benefits, and pricing before they make their buying decisions. A
multi brand retailer would be able to satisfy this kind of customer.

MBO
• retailers they get the freedom choose and decide
• more product driven, and less brand driven, and hence MBOs will prove more
profitable
Drawbacks:
• face fierce competition if another multi brand outlet is launched in the same area
• get fewer benefits from the vendors
• “Zara will be opening a new store in the Ismail Building near Flora Fountain. The
whopping price tag of renting the space is nothing short of 30 crores a year, with a
minimum five-year lock-in period. Reportedly, this is the largest overseas space-
related transaction made by a high street brand.”
• “The 50,000sqft space will definitely make for happy customers who frequent the
brand on a regular basis. As for making the monthly rent of 2.5 crores, it’s clear the
estimated monthly sales will not disappoint the retailer.”

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 FOUNDATIONS OF STRATEGIC CONSULTING – TERM PROJECT

CREATION OF DIGITAL COMMUNICATION

STARTEGY

UPGRADATION OF WEBSITE
Competitors of Bombay Dyeing, brands like Spaces, Portico and D Décor have well
established ecommerce channel on website showing its latest collection, option to buy,
wwhich is missing in Bombay Dyeing.

• Living in the digital world,

a website is now a necessity for a
business. If you have a business and
don’t have a website, you are probably
losing a number of great opportunities
for your business. A website itself can be
used to accomplish many different
marketing strategies to help your
business grow.
• The web has a far wider reach
than any other form of advertising. While it takes time to build up enough traffic to
your website to make a worthwhile impact on your company`s marketing campaign,
it costs next to nothing to do so.
• Your website is the center of your company`s online presence.
• Increasing visibility is one major factor that makes having a website important. Even if
people have heard about your company, they may want to carry out research
online first, before entertaining the idea of leaving the comfort of their own home.
• Websites usually provide a map and directions to company`s shops or offices, for
visitors to less likely have trouble finding your location. Another important reason why
having a website to represent your business is to give you credibility.

Importance of Digital Marketing Stratgey

• 34% of the businesses already had an integrated digital marketing plan in 2016
• 72% marketers believe that traditional marketing is no longer sufficient and Digital
Marketing will make their company revenue to be increased by 30% by the end of
2017
• More than 80% of businesses will increase their digital marketing spending plan that
may go beyond the IT budget.
• More Cost-Effective than Traditional Marketing
• It engages more consumers to give feedback and be interactive with your brand.

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 FOUNDATIONS OF STRATEGIC CONSULTING – TERM PROJECT

Bombay Dyeing should invest in backward

integration of raw materials
Installed Capacity and Market Share of Top 4 Players
8 7.5 60%

As a percentage of Domestic Market

7
Installed Capacity in Mn Tonnes

50%
48%
6 5.5
5 40%
5
4 3.5 30%

Share
3 2.3 20%
2 17%
1.37 15%
12% 10%
1 0.5 0.25 8%
0.108 0 00.222 0 0 0
0 0%
RELIANCE INDORAMA MCPI BOMBAY OTHERS
DYEING

PTA MEG PSF MARKET SHARE (DOMESTIC)

• Backward integration in Purified Terephthalic Acid (PTA) and Monoethylene Glycol

(MEG) manufacturing can help Bombay Dyeing in below ways:
• Lower dependency on Suppliers
• Lower Cost of Production
• Lower prone to Currency fluctuations
• Can increase market share with lower cost of productions

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 FOUNDATIONS OF STRATEGIC CONSULTING – TERM PROJECT

RECCOMENDATONS IMPORTANCE
AND EFFECTIVENESS

LEARNINGS
• Role of consultant is to understand the core problem and provide a solution which is
long-lasting and balances both long-term and short-term objectives of the
organisation
• Consultant needs to understand the overall business scenario including all
departments of the organisation.
• Undemanding of customers, company competition and government regulations play
a vital role in drilling down to solutions best for the company
• Solutions need to be dynamic in nature which can be moulded as per the changing
environment

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 FOUNDATIONS OF STRATEGIC CONSULTING – TERM PROJECT

REFERENCES
• EMIS Portal
• Bloomberg
• Financial Reports
• www.myntra.com
• www.amazon.in
• www.ddecor.in
• www.spaces.in
• www.portico.co.in

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