MARKETING STRATEGY: FORMING COMPETITIVE ADVANTAGES IN THE SPHERE OF FOOD RETAIL

Abstract

This article examines the characteristics of developing and implementing a differentiation marketing strategy in Ukraine’s grocery retail market amid macroeconomic instability and rapid changes in consumer behavior, using Silpo-Food LLC as a case study. The necessity of modern retail chains transitioning from traditional price competition to a differentiation strategy focused on creating unique consumer value and emotional branding is substantiated. The competitive environment of the Lviv region market was analyzed using a strategic group map, which revealed the company’s distinct positioning in the segment of the widest product range and above-average prices. The application of Porter’s Five Forces model showed that the company successfully mitigates industry pressures through the conceptual design of its supermarkets and deep personalization via the “Own Account” loyalty program. A comprehensive SWOT analysis of the company was conducted, which identified key strengths: high brand recognition, a robust in-house craft production facility, an extensive product range, and a unique customer experience. At the same time, significant threats and weaknesses were identified, including macroeconomic instability, the consequences of full-scale russian aggression, a decline in consumer purchasing power, and high operating costs associated with maintaining a capital-intensive business model. Despite these challenges, the effectiveness of the chosen strategy has been proven, as evidenced by the growth in net profit in 2024. To further strengthen competitive advantages in the context of the digital economy, a set of innovative measures has been proposed. These include integrating a phygital experience using augmented reality (AR) into a corporate mobile app to gamify the shopping experience. The implementation of artificial intelligence algorithms for dynamic pricing of the “fresh” product category is also proposed to stimulate sales and minimize food waste. The environmental focus of marketing is strengthened through the implementation of the Zero Waste concept - the opening of specialized refill stations for eco-conscious consumers. Separately, the report emphasizes the decisive role of internal marketing and the service culture of staff as the fundamental basis for long-term market leadership.