Use 2 groceries stores and follow this questions Compare and contrast the target market for each store. Compare and contrast how each store creates value for the customer. What is the value proposition for each store? (This may be more than their slogan “low prices every day,” and it may not be the values statement on the website, “Corporate Values: Teamwork – We are a winning team working together to earn the trust and loyalty of our customers, business partners & neighborhoods every day.) Compare and contrast pricing. What part does pricing play in the store’s customer value?

The two grocery stores we have selected are India based Brick and Mortar ‘Big Bazaar’ and India based Online grocery retailer ‘Big Basket’.


Big Bazaar

Big Basket

Target Market

1. Customers who prefer brick and mortar system of buying.

2. Customers have time to go and shop.

3. Customers who don’t prefer online purchase.

4. Customers touch, feel and compare before purchase.

5. Customer age group 20-60 years.

1. Customers who prefer time-saving and online buying.

2. Customers have less time.

3. Customers who prefer online purchase.

4. Customers select a product by their photo and purchase. They return it later if needed.

5. Customer age group 15-35 years.

Value Creation

It caters middle-class segment and provides all essential groceries under a physical roof.

It caters middle to upper-class segment and provides groceries through the online store.

Value Proposition

Different discount offers overs daily sales, free parking facility, ease of access, quality products.

Fast delivery, discounts on regular purchases, easy return of goods, cash on delivery payment option.


Flexible pricing and discounts make the prices low for customers.

Reasonable pricing and offers on bulk purchase.

Pricing – Customer Value

Loyalty cards like ‘payback’ creates discounts for loyal customers.

Big bazaar loyalty card offers ‘Pay Rs. 10,000 and shop for Rs. 12,000’.

Free delivery over Rs. 1000 purchase.

These offers create value for the middle-class customer and make loyal customers in the long run.

Affordable prices and comfortable business model makes it easy for customers to buy.

First order benefits (heavy discounts on first order of a customer).

Easy delivery option (till midnight)

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