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Wednesday, June 30, 1999

Bkay ventures into network marketing in Tamil Nadu 

Joseph Vackayil  
Chennai, June 29: Move over Amway, Oriflame, Avon and Modicare. A Chennai-based entrepreneur has floated a company for network marketing, which will focus on operating in the South, for starters. With a range of consumer products manufactured exclusively for the company, Bkay Networking Pvt Ltd, its chairman and managing director, N Parthibbun, hopes to generate business worth over Rs 18 crore with one lakh distributors in three years.

The networking company was launched in the first week of June and claims to already have over 500 distributors. ``The target is 10,000 this year in Tamil Nadu and Pondicherry before venturing into other states, beginning with Andhra Pradesh,'' Parthibbun told The Financial Express.

The marketing strategy is similar to that of existing players. But Bkay claims it scores over others in terms of pricing of products, which begins with as low a price as Rs 13, and also by being a `swadeshi' brand, which gives the Bkay direct sellers a distinct linguistic advantage interms of local sales.

Pushed through the network currently, are a range of `Bkay' branded products in five segments: cleaning, cosmetics, detergents, healthcare and electronics. The products are being manufactured in Chennai and Pondicherry by small units according to ``our specifications and quality standards'' says Parthibbun.

The initial kit priced at Rs 1,750 contains 15 items: Vitamin E cream, Sheen, Floor-k, Clean-o, Do All, Shine, Zeero Pain, Dermo Care, Soap, Mud Mask Rose, Heena Hair Care, Keshrok Herbal hair tonic, Jasmine face pack and two electronic items Spike buster and Spliter.

Parthibbun plans to diversify into the complete range of cosmetics with exclusive manufacturing facilities to be set up in Chennai next year. He also intends to initiate discussions with Henkel for cleaning concentrates.Under the Bkay plan, the profit for the distributor will lie in the margin between the distributor price and minimum retail price-according to the company, the margin will be a minimum of 25 percent. Therefore, while a distributor joins the Bkay network by paying Rs 1,750, she get products worth Rs 2,187 according to the maximum retail price.

Besides this, Bkay is offering its distributors a 25 per cent discount on personal purchases of the Bkay brand, and a sponsorship bonus of Rs 100 for appointing another distributor. The company also provides a Rs 1 lakh accident insurance.

Bkay has built-in a well-defined ladder of mobility in the network, based on the number of new distributors appointed by each distributor.

Correspondingly, the income too increases. For a start, every new member is expected to introduce five new distributors.

Once that target is reached, a member can move up the chain as executive (marketing), then manager, general manager, divisional manager, vice-president and finally, president (marketing), when the distributor has more than 1,000 distributors under her network. According to Bkay, at this stage the monthly income will be in excess of Rs 1 lakh, and the companyplans to motivate its distributors to reach the level of president marketing within a year.

For this, Bkay has initiated training programmes for enterprising sales persons, which include self-confidence workshops and conferences. The company has tied up with a city-based institution, `Leadership revolution training organisation' for training needs.

So just who is the promoter of Bkay Networking? Parthibbun rose from the rank of agent, to senior inspector at the Peerless group, the largest networking company for concept selling, a few years ago. He then ventured into electronics products manufacturing and made a name with `Beekay Spike Buster', which protects the TV from electric leakage. The product is considered popular in Tamil Nadu and Pondicherry.

For the last 12 years, the Bkay Group has marketed TV stabilisers, boosters, antennas and other related products, to become a complete solutions provider to the cable TV operator. ``The journey from here is to the inestimable heights the network marketingof consumer products can create in the ever expanding marketplace that is India,'' says Parthibbun. ``In the process Bkay will be instrumental in creating a few millionaires,'' he adds.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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