Marketing Channels explained with Bombay Dyeing as an example (MBA)

Marketing- DistributionChannels

The Bombay Dyeing & Mfg. Co. Ltd.

Team Members

Bernard Fernandes (A011)

Joylyn Fernandes (A012)

Shrinivas Gajengi (A013)

Makrand Kolekar (A025)

Sourav Modak (A032)

Marketing Mix

Product Price Place Promotion

Producer

Producer

Producer

Consumer

Consumer

Consumer

Retailer

Retailer

Wholesaler

Marketing Distribution ChannelsChannel 1

Channel 2

Channel 3

Role of Intermediaries• Greater efficiency in making goods available to

target markets• Intermediaries provide

– Contacts– Experience– Specialization– Scale of Operation

• Match Supply & Demand

About Bombay Dyeing• The Bombay Dyeing & Mfg Co. Ltd. established in

1879 is the flagship company of the Wadia Group• Its range of products primarily include

– Bed Linen & Top of Bed Items– Bath Linen– Uniform Fabrics– Suiting / Shirting Fabrics– Mattress

Bombay Dyeing’s presence across India

Channel 1 @ Bombay Dyeing

• The company reaches its consumers directly via the following channels:– Company Owned Stores

– Direct Institutional Sales

– Ecommerce (www.mybombaydyeing.com)

Producer Consumer

Channel 1 @ Bombay Dyeing

Direct access to customers to understand their needs better

Higher Margins

Can stock more variety

Pros High Operational Costs (in the case of stores)

Cons

Channel 2 @ Bombay Dyeing

• The company reaches its consumers via the following intermediaries:– Franchisees– Authorized Retail Sellers– Large Format Stores– Ecommerce portals

Producer ConsumerRetailer

Channel 2 @ Bombay Dyeing

Existing assets of the retailer can be used so no investment required

Retailer takes his own marketing initiative to drive sales

ProsMerchandise assortment is decided by retailer

Company has to depend on the retailer for customer feedback

The retailer may not live up to the brand standards

Cons

Channel 3 @ Bombay Dyeing

• The company has further widened its distribution network through the following intermediaries:

– Wholesalers

– Wholesalers further service Multi Brand Outlets

Producer ConsumerRetailerWholesaler

Channel 3 @ Bombay Dyeing

Huge volume of business at minimal costs

Increased the reach of products to Tier II – III towns

Distributor shares in the costs of regional marketing

Distributor’s warehouse can be used to service local retailers

ProsThe distributor will be dealing in competing brands as well

Risk of return of huge stocks if not sold

The end retailer doesn’t agree to participate in consumer schemes

Cons

Bombay Dyeing

Company Stores

Large Format Stores

Other Ecommerce

Franchisees / ARS

Wholesale Dealer

Multi Brand Outlets

Consumer

Direct Sales Team

Ecommerce

Way Forward

• To revamp the defunct Ecommerce Portal

• To increase its number of company owned stores

• To start a mail order catalogue service to make up for the space constraint at stores

Bibliography

Bombaydyeing.com

Mybombaydyeing.com

Marketingmo.com

Company Sources

Thank You