Detailed Analysis of BigBasket
Detailed Analysis of BigBasket
Detailed Analysis of BigBasket
CHAPTER
NO.
PARTICULARS PAGE NO.
1 OVERVIEW OF THE ORGANISATION
2 TEAM BEHIND BIGBASKET
3 JOURNEY OF BIGBASKET
4 FINANCIAL STRENGTH
5 AWARDS AND RECOGNITION
6 PAYMENT MODES
7 INVENTORY BASE MODEL
8 MARKETING STRATEGY
9 SWOT ANALYSIS
10 FACING CHALLENGES
11 GROWTH AND FUTURE VISION
12 FUTURE PROJECTIONS
CHAPTER 1
1.2. INTRODUCTION
Big Basket is an Indian online grocery store which is owned and
operated by the Company Supermarket Grocery Supplies Private
Limited. The company claims to have more than 18,000 products in
numerous categories including grocery & staples, fruits, vegetables,
beverages, branded foods, Personal Care, Health Care, Meat, Home &
Kitchen Products, Electronics & Appliances, gourmet products,
household among others from more than 1,000 brands. They are
planning for more categories for expansion. It was started in Bangalore
and subsequently, expanded its operations in Delhi, Chennai,
Coimbatore, Hyderabad, Mysore, Pune and expanding further in
Ahmedabad, Baroda, Surat. It is currently present across 15 cities in
India. As of August 2015, Big Basket raised $100 million in fund raising
rounds led by Zodius Capital and Helion Ventures. The company is
currently valued at a billion dollars.
1.3. History
In 1999, Six businessmen - K Vaitheeswaran, V S Sudhakar, V S Ramesh,
Hari Menon, Sundeep Thakran and Vipul Parekh – founded
Fabmart.com, an online business in India. Two years after the start of
this website, they included grocery as part of their business. Despite
being in its nascent stage, the website fared well. Following its success,
the founders started a brick and mortar chain store named Fabmall in
various parts of South India. This business grew to be a large grocery
chain and was sold to the Aditya Birla Group in 2006, which was
renamed as More. The founders continued to be interested in the
concept of an online grocery store, which ultimately gave birth to
Bigbasket.com in 2011. The company was started with three principles -
a high focus on customer satisfaction, inclusion of a wide variety of
products and brands and continuous innovation through technology.
Big Basket’s success can be attributed to the implementation of these
three principles.
Customers have access to same day delivery if they are in one of the
major cities where the company operates. The company’s 99.3 per cent
on-time delivery and 99.5 per cent order fill rate, along with a no-
inquiry customer return policy, have greatly contributed to Big Basket’s
high customer satisfaction. More than 35 per cent of the products sold
in the online grocery store are from their own brands. Recently, the
company also launched a bakery that delivers freshly baked bread,
launched its own brand of premium coffee and recipe kits for cooking
gourmet meals at home.
CHAPTER 2
CHAPTER 3
3.2 Innovation
Big Basket has launched both iOS and Android mobile phone apps,
which allow customers to order from anywhere at anytime using their
smart phones.
3.3 Smart Basket
The store also has a feature called Smart Basket, which is capable of
predicting the needs of recurring customers. This can reduce order time
by up to 10 minutes for regular customers. The company utilizes the
unique automation processes to run their operations. One of these is a
system to help staff pick the right items and reduce order errors to
almost 0.2 per cent. To boost customer retention, Big Basket has
automated systems to gather feedback on all aspects of service. They
also make use of customer analytics for marketing automation
programs directed at specific customer lifecycle stages.
3.4 Fresho
The company launched the Fresho brand of products in 2015. Fresho
encompasses vegetables and fruits, meat, coffee & bread products and
currently accounts for almost 30 per cent of Big Basket’s sales
revenues. Fresho Coffee is a service that delivers freshly ground,
premium filter coffee on an order-by-order basis. The brand offers a
series of in-house coffee blends, namely Dark Nectar, Smooth Caramel,
Exotica, Morning Dew, and Noir Creme. Aiming to capture a slice of the
baked goods market, Fresho also offers freshly baked bread, using a
baked-to-order business model.
CHAPTER 4
FINANCIAL STRENGTH
4.1 Funding
As per the documents filed with the Registrar of Companies, the
company has raised a total fund of INR 695 crores from various
investors including Bessemer Ventures, Helion Partners and Sands
Capital. The latest investment of INR 124 crores was done by the US
based Sands Capital.
4.7 Series A.
Series A refers to the first round of stock offered to investors during
early-stage rounds. Typical Series A rounds fall in the range of $2-5M,
offer options for 20-40% of the company, and are intended to support a
company through the early stages of building a business, from product
development to hiring to marketing. Because the Series A round is for
more significant cash, investors are usually professional angel investors
or boutique VC firms who specialize in this first round of financing.
4.8 Series B.
Series B refers to second-stage financing. Series B usually happens
after the company has already achieved certain business milestones
and thus proven its potential viability as a company. This series is also
sometimes called a venture round since it is at this point that venture
capitalists usually get involved. Venture capitalists don’t just offer a
greater capital investment for a given round; there’s also a greater
possibility for going back to this same well for future rounds. Also,
experienced VCs can offer the kind of networking opportunities and
mentorship that unconnected smaller angel investors may not.
4.9 Series C.
As companies grow, they might continue to seek additional funds to
meet future milestones. Each successive venture round follows
alphabetically down the line (e.g. C, D, E...). VCs and private equity
investors support these financing rounds as well as future funding
rounds that more established companies may have to look forward to
such as bridge financing, expansion capital, late-stage capital, and
leveraged buyout.
CHAPTER 5
5.2 Competitors
Local Banya
AaramShop.com
MyGrahek.com
EkStop
Zop Now
Atmydoorsteps.com
Grofers
(a)Registration
Registration on Big Basket.com is absolutely free. You can surf and add
products to the cart without registration but only registered shoppers
will be able to checkout and place orders. Registered members have to
be logged in at the time of checking out the cart, they will be prompted
to do so if they are not logged in.
CHAPTER 6
PAYMENT MODES
6.1 Payment
You can pay for your order on Bigbasket.com using the following modes
of payment:
a. Cash on delivery
b. Credit and debit cards (VISA / Mastercard / American Express)
c. Sodexo passes on delivery (only for food items)
The Value Added Tax (VAT) is included in the MRP of products. There
are no additional taxes added by Big Basket to your order. The prices
you see on their product pages are the prices you pay. There is a
delivery charge of Rs. 20 on orders below Rs. 1000. It is absolutely safe
to use your card on Bigbasket.com. A recent directive from RBI makes it
mandatory to have an additional authentication pass code verified by
VISA (VBV) or MSC (Master Secure Code) which has to be entered by
online shoppers while paying online using visa or master credit card. It
means extra security for customers, thus making online shopping safer.
6.4 Coupons
Once you are done selecting your products and click on checkout you
will be prompted to select delivery slot and payment method. On the
payment method page there is a box where you can enter any e-
voucher/ coupon code that you have. The amount will automatically be
deducted from your invoice value.
CHAPTER 7
CHAPTER 8
a) Target Segment
Students
Families
Corporates & Professionals
Others i.e, Event planners, co-operatives
b) Promotion
Big basket has been largely using print and radio. Now, they have added
television to their portfolio. They use digital, also but offline push is
stronger. Of the total marketing spends, They allocated nearly 20% to
digital and rest to offline. In 2016, their marketing spends is to the tune
of Rs 80 crore to Rs 100 crore. Big Basket has introduced colourful Holi
kit with special discount and Cake Box for Christmas for orders above Rs
1000. To honour women, it introduced Women's day offers and
coupons. Big Basket.com has roped in actor Shah Rukh Khan as brand
ambassador. This was followed by another— "Shah Rukh Khan is a Big
Basketeer! ... We felt it was important that people could relate to the
Big Basket brand ambassador."
The Big Basket Customers are called as Big Basketeer.
CHAPTER 9
(a) Strength
1. Huge investment capacity
2. Convenience for Customers
3. High Quality Products
4. Low inventory cost
5. Low delivery charges
6. Good relationship with Suppliers
7. Customization
8. Closer working relationship with customers
9. A vast variety of stuffs available
(b) Weakness
1. No economies of scale
2. Limited Financial Resources
3. Lack of staff
4. Weak brand name
5. Sometimes the transportation cost increases the product cost
6. Number of potential customers who can buy through Internet is not
still enough.
(c) Opportunities
1. Expanding Overseas
2. Product extension
3. Strategic Alliances
4. Licensing
5. Capture Venture capitalists
6. Everyday number of Internet users is increasing in a rapid way.
(d) Threats
1. Competitors will go online
2. Changing Government policies.
CHAPTER 10
CHALLENGES FACED
CHAPTER 11
RESEARCH METHDOLOGY
TABLE 12.1.1
TABLE SHOWING THE AGE OF THE RESPONDENTS
INTERPRETATION:
Out of the total number of respondents 32.2% are below 20 years,
46.7% of respondents are 20-30 years of age, 13.3% of people are from
30-40 of years of age and nearly 7.8% of respondents are above 40.
Majority of the respondents (46.7%) are of the age of 20-30
TABLE 12.1.2
TABLE SHOWING THE GENDER OF THE RESPONDENTS
GENDER RESPONDENTS AGE
MALE 29 32.2
FEMALE 61 67.8
TOTAL 90 100
INTERPRETATION:
The numbers of respondents who are male are 32.2% and the
percentage of the female is 67.8%. Majority of the respondents (67.8%)
are female.
TABLE 12.1.3
TABLE SHOWING THE EDUCATIONAL QUALIFICATION OF THE
RESPONDENTS
TABLE 12.1.4
TABLE SHOWING THE FAMILY MONTHLY INCOME OF THE
RESPONDENTS
FAMILY MONTHLY RESPONDENTS PERCENTAGES
INCOME
BELOW 10000 8 8.9
10000-20000 23 25.6
20000-30000 26 28.9
Above 30000 33 36.6
Total 90 100
INTERPRETATION:
From the above table, 8.3% of respondents earn below 10000, 25% of
respondents earn from 10000-20000, 26.4% respondents earn a
monthly income of 20000-30000 and 40.3% of respondents earn above
30000.
Majority of the respondents (36.7%) have a monthly income of above
30000.
TABLE 12.1.5
TABLE SHOWING THE FREQUENCY OF PURCHASE OF
GROCERIES
TABLE 12.1.6
TABLE SHOWING EXPERIENCE OF ONLINE GROCERY
SHOPPING
INTERPRETATION:
From the above table, it is clear that 56.7% of respondents have an
experience of purchasing groceries online and 43.3% of respondents
have not experienced online grocery shopping.
Majority of the respondents (56.7%) have an experience of shopping
groceries online.
TABLE 12.1.7
TABLE SHOWING REASONS FOR ONLINE GROCERY SHOPPING
INTERPRETATION:
From the above table, 18.9% of people face mobility problems, 22.2%
of respondents feel instore shopping is tiring, 20% of people initiate e-
grocery shopping due to the recommendation, 26.7% of people need
any time shopping, and 12.2% of respondents have no time to go to the
store.
Majority of the respondents (26.7%) choose online grocery shopping
because they can shop anytime.
TABLE 12.1.8
TABLE SHOWING RESPONDENTS PREFERRED GROCERY
SHOPPING SITES
TABLE 12.1.9
TABLE SHOWING THE PRODUCTS PREFERRED IN ONLINE
SHOPPING
INTERPRETATION:
The table shows the products that people prefer to buy online. The
above are the products that are commonly available to the consumers
which include the perishables such as fruits and vegetables and milk
and dairy products. The table shows that 16.66% of respondents prefer
personal care products, fruits, and vegetables12.22 %, 6.66% imported
and gourmet, 11.11% prefer snacks, 2.22% prefer household and
cleaning, 13.33% laundry supplies, 5.55% baby and child care, 11.11%
prefer milk and dairy products, 4.44% prefer beverages, 12.22% buy
edible oils and 4.44% prefer buying groceries.
Majority of the respondents (16.66%) prefer buying personal care
product.
TABLE 12.1.10
TABLE SHOWING THE ATTRIBUTES OF E-GROCERY
INTERPRETATION:
The above table shows the attributes that people prefer while using e-
grocery sites. It clearly shows that 11.11%of the respondents choose
convenient delivery slots, 43.33% of the respondents prefer cash-free
transactions, 13.33% with better deals or discounts, 15.55% with the
return policy, 11.11% choose website design and 5.55% say none of the
attributes are remarkable.
Majority of the respondents (43.33%) favor cash-free transactions.
TABLE 12.1.11
TABLE SHOWING THE METHOD OF PAYMENT BY THE
RESPONDENTS
INTERPRETATION:
The above table shows the method of payment by the respondents
where 7.8% of people use a credit card for a purchase, 23.3% use debit
card, 17.8% use net banking and 47.8% use cash on delivery.
Majority of the respondents (47.8%) prefer cash on delivery.
12.3 FINDINGS
Majority of the respondents are of the age of 20-30
Majority of the respondents are female.
The maximum number of respondents is students
Majority of the respondents have a monthly income of above
30000.
The majority shows that people purchase groceries weekly.
Majority of the respondents have an experience of shopping
groceries online.
Majority of the respondents choose online grocery shopping
because they can shop anytime
Majority of the respondents have preferred big basket.
Majority of the respondents prefer buying personal care products
Majority of the respondents favor cash-free transactions
Majority of the respondents prefer cash on delivery.
Chi-square tests show that the association between the age of
the respondents and quality of fruits and vegetables in e-grocery
shopping are not significant. Quality of fruits and vegetables is
considered important irrespective any of age of people.
CHAPTER
FUTURE PROJECTIONS
12.1 Future Projections
They have a very bright future ahead because they have identified the
needs which will rise and they have made plans to adopt those in order
to survive in this competitive world. As we know young generation is
more health conscious so they are planning to add organic food in their
portfolio, pesticides free fruits and vegetables. Though they may be bit
expensive but will have a huge demand. Not just that they planning to
keep frozen foods in their cart so that people can order the same and
eat the same without spending much time in cooking it. They are also
planning to add international brands in their kitty. Also, planning to
expand their business in different cities. By doing the same, they will
increase their brand value, revenues and profits would automatically
increase. Big Basket is looking at achieving the following targets in the
next one year:
1. Automation in Warehouses
2. Scale of footprint to 35 cities with 60 dark stores
3. Raising $ 150 million. The company has already appointed Citibank as
its investment Bank for the same.
Apart from expansion, the company is also constantly looking to invest
in new technologies – both online and mobile – to enhance customer
experience and create warehouses for quick delivery of the orders to
various parts of a city. Finally, the company has plans to invest in last
mile delivery, which includes the addition of coldchain
enabled energy-efficient vehicles.
RECOMMENDATIONS
Introduce loyalty programs
Expand geographical reach
Increase awareness through advertisement
Free delivery below purchase of Rs.1000
CONCLUSION
Big Basket being an online grocery has a bright future as people have
no time to go out to purchase groceries, traffic taking away the time of
the people, variety in products, People not willing to carry heavy bags.
By giving more offers and discounts according to the seasons Big basket
has been the No.1 online grocery store in India.
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