Innovative Positioning as a Marketing Tool of Retailers on the Food Market

Abstract

Objective : The aim of the paper is to develop the theory of retail business positioning as a part of marketing innovation-based strategy. It is proposed that innovative retail formats and business models should be included in it. Research Design & Methods : The critical literature review on the existing dimensions of business positioning as well as the new, suggested dimensions is made. General trends in food retailers’ positioning in Poland and the positioning strategy development of Carrefour are analysed in the form of examples and a short case study. They are based on the secondary sources like academic papers, retail magazines and companies’ web sites. Findings: On the fragmented food markets retailers position themselves by introducing format innovations and stressing low price. Then they have to reposition themselves by attributes other than price. Big mass merchandisers are now segmenters. Implications & Recommendations: In Poland the tendencies for buying natural, Fair Trade, diabetics, organic or functional products, as well as the focus on the elderly segment are opportunities for retailers. Yet, trading up creates new opportunities for discounters. Contribution & Value Added: The paper contributes to the theory of retail positioning by linking elements of the marketing and the entrepreneurship approaches. It also develops knowledge about the Polish retail food market.