Big Bazaar is positioned as the lowest cost provider in the Retail market. Even though Reliance has a better distribution channel and can get products at a lower price than Big Bazaar, it is a smart move not to do that. The reason being Big Bazaar (Iss Se Sasta Aur Accha, Kahin Nahi) is the market leader and the consumer believes that it is providing the products at lowest prices. It is the strength of Big Bazaar. So Reliance Fresh, rather than concentering on the Price factor is concentrating on, Customer service – The new tagline adopted by Reliance Fresh, “Aapki Khushi, hamari Khushi” shows that Reliance Fresh is concentrating on providing best customer service. It is clear that the focus is not on providing the best prices. 6.
Enabling growth through world-class quality and infrastructure – In general the consumer inversely associates price of a product with the quality. So as Big Bazaar increases in its strength, its weakness also grows due to the above mentioned consumer perception. “Find a weakness in the leader’s strength and attack that point” and that is exactly what Reliance Fresh is doing. Big Bazaar’s strength is “lowest prices” (Sabse Sasta), and the hidden weakness is this strength is ‘Quality’. The quality of the product may be excellent but the perception about a product’s Quality is that it is inversely proportional to the Price. And hence Reliance is attacking on this hidden weakness which will grow as Big Bazaar’s strength (i.e. lowest prices) grows in consumer’s mind.
“Launch attack on as narrow a front as possible” – Reliance Fresh, “We are pushing for leadership in Fresh Food”. Reliance Fresh’s strategy is to become a leader in Fresh Foods. Even name reflects that. Huge efforts are taken to maintain the freshness. In several localities, Reliance Fresh stores open at 6 a.m. to sell fresh flowers for Pooja (prayers). So for daily vegetables and fruits one would prefer to go to Reliance Fresh rather than Big Bazaar. “Mass forces to...
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