KB’s Fair Price Shop

Pantaloon Retail India Ltd is moving into the smaller retail store format through their launch of the KB’s fair price shop. It is going to be a no-frills, fair price shops chain; with a tag line of “Saare Jahan se Sasta” the new retail chain would alter a few rules of the game in India. Subhiksha is "Bachat Mera Adhikar", while KB's (Kharido Becho) fair price shop wants to be "Saare Jahan Se Sasta" retailer in India. KBFP’s target should be to provide essential items cheaper than the market price and to look at a 20% to 30% market share of the neighbourhood retail market.

With each shop measuring an average of 2,000 square feet retail space, it will be based on neighbourhood, convenience, stores concept. Stocking only a limited variety of items required to meet daily needs of its customers, the chain proposes to offer merchandise at 10% lower prices than market for national brands and up to 20% lower than market prices for local brands. ¨

KB’s fair price shop needs to differentiate itself from Competition and then maintain a sustainable competitive advantage by offering consistency in service efficiency and product quality. ¨

These are the two areas in which Subhiksha will be lagging behind and hence it is essential to make it an immediate Point-of-Difference. ¨ Subhiksha is positioned as “Lower Priced” store as seen from the results of the primary research in the following sections. ¨

The Indian consumer however wants “Value for Money” and not “cheap” products/brands. Hence this is how KBFP should position itself against the Kiranas and organized players like Subhiksha