Big Bazaar and Reliance have positioned themselves as economical stores. Identify the type of positioning strategy adopted by them.
Big Bazaar and Reliance have positioned themselves as economical stores. Identify the type of positioning strategy adopted by them.
Options
(a) On the basis of price — Big Bazaar and Reliance position themselves as economical/value-for-money stores, which is price-based positioning strategy.
Marking Scheme
- 11 mark: Selecting option (a) On the basis of price. No mark for any other option or vague descriptions not naming price-based positioning.
Hint
Think about what the tagline 'Isse sasta aur accha kahin nahi' communicates to the customer — is it about features, users, or the cost of shopping there?
Quick Oral Answer
The correct answer is (a) On the basis of price. Big Bazaar and Reliance position themselves as economical, communicating value-for-money to consumers, which is price-based positioning.
Analysis & Explanation
Big Bazaar and Reliance advertise themselves as "economical"/value-for-money stores, which is a case of price-based positioning.
Concept
- Positioning is the final stage of STP — it shapes how a brand occupies space in the consumer's mind relative to competitors.
- Price-based positioning means a brand's central message to consumers is affordability/value-for-money, not features, quality, or exclusivity.
- Since both retailers stress being "economical," their positioning basis is price.
Common mistakes
- Choosing "product attribute" positioning by treating low price as a product feature — in the STP framework, price is a separate, distinct positioning basis.
- Confusing positioning (a perception in the buyer's mind) with pricing strategy (the actual tactical price set) — they are related but not the same concept.
Real-world
- Price-based positioning is easy for rivals to attack by undercutting on price, so retailers like Big Bazaar pair it with loyalty programmes and private labels to build stickiness beyond just low prices.
Common Mistakes
- 1Selecting 'On the basis of quality' because students assume affordability is a product quality attribute, not recognising that price and quality are distinct positioning bases in the STP framework.
- 2Selecting 'On the basis of customer benefit' because low prices benefit customers, but 'customer benefit' as a positioning strategy refers to specific functional or emotional benefits, not the price level.
- 3Confusing positioning strategy with the pricing element of the marketing mix — positioning is a perceptual concept in the consumer's mind, while pricing is the actual amount charged.
Previously Asked
What do you mean by product positioning?
A company promotes itself as offering the best quality at the lowest price. What positioning strategy is this?
Explain 'value for money' as a positioning strategy with an example.
Interesting Facts
Big Bazaar's famous tagline 'Isse sasta aur accha kahin nahi' (nowhere cheaper and better than this) is a textbook example of price-based positioning that directly attacked premium retailers when the brand launched in 2001.
Walmart, the world's largest retailer, built a $600 billion annual revenue business almost entirely on price-based positioning — its internal motto 'Everyday Low Prices' drives every supply chain and procurement decision the company makes.
Aldi, the German discount retailer, uses price-based positioning so aggressively that it limits its product range to about 1,800 SKUs compared to a typical supermarket's 30,000, allowing bulk buying that keeps prices 20-30% below competitors.
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Frequently Asked Questions
What is positioning in marketing?
Positioning is the process of creating a distinct image or identity for a product or brand in the minds of target consumers relative to competing products, so that consumers perceive it as uniquely valuable.
What are the different bases of positioning?
Products can be positioned on the basis of price (value for money or premium), product attributes (features, quality), usage occasions, user category (experts, families), competition (better than rivals), or benefits offered to consumers.
How is price-based positioning different from quality-based positioning?
Price-based positioning emphasises affordability or value for money as the primary appeal (e.g., Big Bazaar), while quality-based positioning emphasises superior craftsmanship, durability, or performance regardless of price (e.g., Apple products).