The Marketing Strategy of DMart: India’s Leading Low-Cost Supermarket Chain

DMart is the largest supermarket chain in India offering quality products at a cheaper price. The company maintains the highest level of customer base and is perceived as one of the fastest-growing chains in the retail business. Therefore, this achievement cannot solely be accredited to a well-organized supply chain management of the brand.

DMart was founded in 2002 by Radhakishan Damani with the opening first store in Mumbai. And today after so long, the company has now crossed over 250 stores in 11 states. The company is listed in NSE & BSE under Avenue Supermarts Limited with a market price of INR 4000 and a P/E ratio over 110.

Since the IPO in 2017, the company's share price has gone up by 550% and delivered more than 20% annual ROCE. The brand has now opened more than 40 new stores since 2022-23, but still it faces the competition of brands like Spencers, Reliance, and Big Basket.

DMart Competitor Analysis
SWOT Analysis of DMart
Marketing Mix of DMart
DMart Marketing Strategy
Digital Marketing Strategy of DMart 
DMart Marketing Campaigns 

DMart Competitor Analysis

The Indian retail sector is fast-growing and one of the least tapped segments in the market. The market is highly unorganized but with some top players taking over the market, it is but time that the retail sector will become the next big thing. Some of DMart’s biggest competitors are: 

• Reliance Retail: The brand operates multiple chains such as Reliance Mart, Reliance Fresh, and JioMart, that compete directly with DMart in terms of pricing and product range. 
• Online Grocery Stores: Brands like Blinkit, BigBasket, and ZeptoNow are gaining a large traction in online grocery shopping that caters to their customer base.

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SWOT Analysis of DMart

The following is the Strengths, Weaknesses, Opportunities, and Threats Analysis: 

Strengths: 

• DMart’s EDLP strategy helps attract the middle-class audience 
• Efficient supply chain management and operational processes helped boost the brand 
• Wide range of food and non-food products at lower rates 
• Consistent growth of revenue and profits of the brand 

Weakness: 

• Lacks global presence and lesser geographic reach without any focus on opening stores in new locations 
• Bad online presence and promotion 
• Due to the low pricing of products, it can affect vendors and lead to disruptions in the supply chain. 
• DMart stores follow a basic layout that is unattractive to new customers. 

Opportunities: 

• Focus on the penetration of North and East India 
• Invest in online delivery services to compete with eCommerce retail vendors 
• Implementing automated technologies in distribution centers to reduce costs and streamline operations 

Threats: 

• Increase in online grocery shopping with apps such as Blinkit, and Jio Mart. 
• Faces tough competition from supermarkets and local stores 
• Changes in the retail sector and anti-competition policies impact business operations

Marketing Mix of DMart

A marketing mix is what the brand uses for its products to get them noticed by the right customers at the right time. This model is based on the 4Ps: Product, price, place, and promotion. So, let’s take a look at the marketing mix of DMart: 

Product Strategy of DMart 

The Product Strategy of DMart is divided into three categories - Food, non-food, and General Merchandise & Apparel. 

• Food: Groceries, processed food, staples, frozen, dairy, beverages & confectionery, fruits & vegetables. This contributes to over 52% of the total revenue. 
• Non-food: This covers homecare products, toiletries, personal care products, and other over-the-counter products. This contributes 21% in revenue. 
• General Merchandise & Apparel: Toys, bed & bath, plastic goods, footwear, crockery, utensils, garments and home appliances. This contributes 29% of total revenues. 
• DMart sells multiple products under its own brand names such as DMart Premia, DMart Minimax, Dutch Harbour, and D-Homes. 

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Price Strategy of DMart

DMart offers highly discounted merchandise as compared to its competitors. Because of this strategy, the brand has succeeded in creating an image of a low-cost retailer that attracts consumers who are price-sensitive. The company prides itself in providing affordable prices to customers whether they live in rural or urban areas. The pricing of products is generally less than the MRP except for medicines, vegetables, and fruits. During festivals, these low prices are perfect for customers who want to purchase in bulk, which in turn results in high sales. The pricing strategy of DMart is one of the biggest reasons why the supermarket chain is successful. 

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Place Strategy of DMart 

One of the fast-growing supermarket retail brands in India, DMart has about 214 stores in 11 states, with a large presence in cities like Hyderabad, Ahmedabad, Chennai, Bangalore, Mumbai, and more. All of the stores are strategically built to help the brand gain a competitive edge while attracting more customers, which leads to proper operations-relating functioning. The brand is also moving into online ordering and delivery options with its DMart Ready sector. 

Promotion Strategy of DMart 

Considered to be one of the largest multi-brand organizations in India, it maintains its positioning as a supermarket that offers products at lower rates. Thanks to multiple coupons, rewards, and offers, the brand boosts sales, especially for bulk purchases. 

For example, in festive seasons, the brand provides 15% off on sweets and other products, with some products going up to 50% off. 

The brand does not engage in aggressive marketing options but promotes itself through Outdoor ads and newspaper ads. Recently, the brand collaborated with HDFC Bank to provide additional discounts on payments made with HDFC Cards. 

DMart Marketing Strategy

Today’s ever-changing retail sector has intense competition where customer preferences are constantly evolving. In this stage, DMart is now building itself as a leader. With priority offered in value and pricing, DMart has revolutionized the Indian retail landscape. So, let’s take a look at the key factors of the winning marketing strategy of DMart: 

• Customer Satisfaction: DMart is considered a leader in the retail market by prioritizing customer satisfaction by exceeding expectations and creating positive shopping experiences. The brand includes well-organized stores that are easy to navigate, knowledgeable staff, and swift checkout options, both online and in-person. 
• Streamlining Operations: DMart has a streamlined approach to its store decoration and focuses more on functionality rather than elaborate store design. This cost-effective strategy helps the brand allocate resources to its product variety and affordability. 
• Asset Acquisition: DMart is prioritizing buying its own properties instead of leasing them. This long-term strategy eliminates any rental expenses that contribute significantly to their profit. 
• Expansion Plans: DMart does not rush into expanding rapidly. They prefer to make smaller moves that not only help them manage their supply chain while keeping a close eye on inventory. 

Digital Marketing Strategy of DMart 

When it comes to offline presence, no other retailer can compete with DMart. But sadly, this does not extend to their digital marketing strategy. This is because the brand does not believe it needs one. 

We know that digitization is highly important especially for retail stores as there are more competitors online than offline. This is why, DMart is now slowly embracing the idea of digitization by launching DMart Ready and installing a chatbot on FB Messenger. But this major retailer has a long way to go. DMart generally uses Facebook to clarify customer doubts but is not present on other platforms such as Twitter and Instagram. This major drawback means that the brand is lagging, especially against its major competitor Reliance. 

DMart Marketing Campaigns 

• CSR Activity - Better School, Brighter Futures!: DMart as a brand is committed to helping its employees by making a positive impact on the lives of those who work for them and those around t hem. With this campaign, the brand helped students gain a better education, access to research facilities, and network with like-minded peers as well. 
• Promoting through low-cost mediums: DMart mostly uses print ads to promote its brand. The visual components consist of hoardings in major locations and newspaper ads with coupons. 

Conclusion 

DMart is slowly carving out a unique niche for itself in the retail landscape with a focus on its efficiency, value, and customer satisfaction. By concentrating on its strategic cost management, and providing a seamless shopping experience, the brand is now establishing itself as a leader in the hypermarket sector. 

The brand is committed to creating a strong supply chain, with a customer-centric approach that has garnered a loyal customer base for continued success in the Indian retail market. 

But, with a rapidly digitizing world, and the entry of big retail giants such as Amazon India, Reliance Retail, Walmart-owned Flipkart, and Tata-owned BigBasket, it is time for DMart to enter into this market as well.  

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FAQs

What is the marketing strategy of DMart?

DMart's marketing strategy focuses on low prices, word-of-mouth marketing, and customer experience.

Who is the founder of DMart?

DMart was founded by Radhakishan Damani, a veteran investor and businessman.

Does DMart have an online presence?

Yes, DMart launched DMart Ready, an online grocery delivery platform, to cater to urban customers, but its primary focus remains on offline retail.