In Bangladesh, grocery markets are an example of a monopolistic competitive market. It has all the features of monopolistic competition. There are only a few big supermarket chains that sell groceries such as Shwapno, Agora, Meena Bazar, Unimart, etc in the dominant segment. On the other hand, there are many small chains, shops in the local areas that sell groceries to the people in that neighborhood. These small stores are in the fringe segment.

Dominant firms such as Shwapno, Agora, Meena Bazar, and Unimart all enjoy brand loyalty and face stiff competition in this segment of the market. People who shop in supermarkets tend to stick with one supermarket chain where they feel most comfortable shopping. It gives the supermarket chains an competitive advantage over their rivals.

Often the outlets of the supermarket chains are strategically located so that other chains do not come to their territory and sweep away their customers. It is also very difficult to launch a new chain of a supermarket as it usually involves significant investment to open multiple stores.

Dominant firms in this segment create differentiation through different value-adding features such as membership discounts, collections of a variety of products, good customer service, free shipping, etc. These features separate them from their competitors and firms in the fringe segment.

In the Finge segment, as many small shops are selling the same products with very little to no product differentiation, they do not have any competitive edge over their competitors. One shop can not charge a higher price for a product since a customer can buy similar products from other shops very easily.

Customers of the fringe segment can choose to buy from the shop nearest to their home just for the sake of convenience. Which might give the seller a little power over how much he is charging for the product. Customers are often willing to pay a little extra to get the product from the shop closest to their homes.

Geographical location plays an important role in the monopolistic competitive market. All dominant supermarket chains are only located in big cities such as Dhaka or Chattogram.