TazeDirekt.com: Branding charm or operational basics?

Abstract

TazeDirekt had cloned FreshDirect to Turkey with a very similar name and faced with a growing demand at the Turkish e-commerce market. It was an online grocery store, e-tailing organic, genetic modification free food primarily from small, local producers and from its organic farm to health-conscious and gourmet people in three big cities of Turkey. Customers were happy with the freshness, quality, and the superior service provided. Unfortunately, the profit levels were not enough to cover the operational and marketing costs of this market positioning. As the number of orders increased in scale, the savings in the unit costs were not enough to sustain the business and cover the costs of providing high-quality products with a superior service. In February 2016, the founder suddenly decided to close the business, declaring its failure. Later, in November 2016, Migros, the most massive multibrand food retail chain of Turkey, purchased the TazeDirekt and its online assets as its new online retail brand to complement its portfolio of brands. © 2021 Elsevier B.V., All rights reserved.