Detailed Analysis of BigBasket

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INDEX

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

OVERVIEW OF THE ORGANIZATION

1.1 Company : Big Basket


Type Private
Industry Internet
Founded
2011
Founder
Hari Menon
V.S. Sudhakar
Vipul Parekh
Abhinay Choudhar
Headquarters Bengaluru – Karnataka – INDIA
Area Served India
Services E-Commerce (Online Grocery)
Website Big Basket.com
Employees 1800

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

TEAM BEHIND BIG BASKET

2.1 About The Founders


The founders of Big Basket are known in the industry for their rich
experience in building a strong and successful start-up. Mr Hari Menon
is the CEO & Head of Merchandising of the Company. Before Big Basket,
Hari was the CEO of India Skills, a vocational education firm. He has also
worked with Wipro and held the position of Country Head in Planet
Asia. He is a former student of BITS Pilani. Mr Vipul Parekh is the Head
of Finance & Marketing at the company. He was an Investment Director
at Peepul Capital prior to his current position. Vipul is a former student
of IIM Bangalore. Mr V S Sudhakar was the founder and CEO of Fabmall,
a leading retail business. Before this, Sudhakar was the CEO of
Planetasia, India’s first online service business. He also has a significant
experience in senior-level management in the IT industry.
Mr V S Ramesh is the Head of Logistics and Supply Chain at Big Basket.
He is also the co-founder of Fabmall. He has also served in the Indian
Navy with a total experience of over 21 years. He has a degree in
Electronics Engineering from Karnataka University. Mr Abhinay
Choudhari is the Head of New Initiatives at Big Basket. Prior to this role,
Abhinay has worked with some major IT companies across the globe.
He is a former student of IIM Ahmedabad.

CHAPTER 3

JOURNEY OF BIG BASKET

3.1 Current Status and Prospective Development


Big Basket, has delivered over 3 million orders. As of March 2016, the
company operates in fifteen major cities, viz. Bangalore, Delhi,
Hyderabad, Mumbai, Kolkata, Pune, Chennai, Mysore, Madurai,
Coimbatore, Vijayawada, Nashik, Vishakapatnam, Vadodara and
Lucknow. With a total employee strength of over 1,800 people, the
company is serving more than 500,000 regular customers and is
growing 20 per cent every month. Over the next year, the company
plans to expand its operations to more than 50 cities. It also intends to
increase the product range on offer significantly by adding more
categories and expanding the existing ones.

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.

3.5 Express Delivery


Logistical innovations have allowed Big Basket to provide customers
with an express delivery option. This service delivers a grocery order
within one hour of processing and although it currently exclusive to
Bangalore, the company plans to extend express delivery to all major
cities in the near future.

3.6 Happy Chef


To engage more customers, Big Basket provides ready made kits for
gourmet dishes which include recipes, cooking instructions and pre-
measured ingredients. Their recipes are categorised into salads, minis,
casual dining, and mains. With this service, Big Basket aims to
encourage home-cooking and allow customers to eat restaurant-like
food at minimal expense.

3.7 Electric Vehicle


Big Basket has signed on a range of electric vehicles to increase
efficiencies and cut down on operating costs as part of its environment-
friendly initiatives. The threewheelers will be used for deliveries across
tier-2 cities where Big Basket has a presence. It is the first order given
to Gayam motorworks for electric autos which give a mileage of 100 to
110 km for a three-hour of charge...........................

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.

4.2 Helion Ventures


Big Basket raised Rs 200 crore investment in a round led by Helion
Ventures and Zodius Capital.

4.3 Lion Rock Capital


$3 million from LionRock Capital, a Singapore-based private investor

4.4 Ascent Capital


Online grocery store Big Basket.com has raised USD 10 million (about
Rs 50 crore) from private equity firm Ascent Capital in march 2012 in its
first round of institutional funding for expansion. The funds would be
used for expansion of Big Basket.com.
4.5 Bessemer Ventures
Big Basket has raised $50 million (Rs 315 crore) from its existing
investors led by Bessemer Venture Partners even as the Bangalore -
headquartered startup has mandated Citigroup to raise $150 million (Rs
950 crore) from a set of new investors, people familiar with the matter

4.6 Abraaj Group


Grocery delivery service Big Basket has raised $150 million in fresh
funding in a round led by UAE's Abraaj Group as the company looks to
expand its services into smaller cities Ascent Capital Group Series C&A
Bessemer Venture Partners Series C (Lead) Helion Venture Partners
Series C ICICI Venture Series B Zodius Capital Series B

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

5.1 Awards & Recognition


 Big Basket secured the BMA Best Startup of the Year award in
2014.
 One of its founders, Mr Abhinay Choudhari, was awarded as one
of the 50 Most Talented Retail Professionals of India by CMO Asia
& Asia Retail Congress.
 Consumer Internet Company of the Year : Supermarket Grocery
Supplies Pvt Ltd (Big Basket.com) by VCCircle Awards 2016

5.2 Competitors
 Local Banya
 AaramShop.com
 MyGrahek.com
 EkStop
 Zop Now
 Atmydoorsteps.com
 Grofers

5.3 Inventory Based Model


 Big Basket operates on an inventory-based model so that they
can ensure delivery of most of the products ordered. It is also
partnering with about 1,800 neighbourhood stores to sell its
brands of staples, fruits and vegetables.

 They cater to both consumer needs, bulk pre-planned as well as


on-demand emergency top-ups, with an inventory-led approach.
For bulk orders, they fulfil orders through their warehouses and
for 1-hour express deliveries, they have set up about 63 'dark
stores' around the city.

 Dark stores are godowns or supermarket-like facilities meant


specifically for companies like Big Basket to source products and
saving them from the hassle of having to go to neighbourhood
stores to pick up supplies.

 Big Basket handles about 27,000 orders a day, at an average


ticket size of Rs 1,500 per order.

5.4 Sourcing Products Across Categories


They are dealing in the below broad categories.
 First is staples (rice, dhal, spices, etc.) and within a month of
starting operations, they have moved to private label. They
source these from the mandis to one of their suppliers who
cleans and packages those. From mandis, they will move further
down the supply chain to the mills, and that is how the margins
keep rising.
 One category, which will be a big differentiator for Big
Basket.com, is fruits and vegetables. But it will be very difficult to
crack. They have a farm-to-home concept where they intend to
get the produce directly from the farms, without the
intermediaries. Typically, the produce stays at least 24 hours in a
store when you see it deteriorating. They are working with Safal
but over a period of time, it will build our network of farming
bodies and that will help them ship directly to buyers.
 Another growing category is frozen meat and dairy products.
Then there is FMCG foods and non-foods (toiletries and personal
care). They deal with the distributors in these categories through
working closely with Metro Cash & Carry.
 Big Basket is also planning to introduce private labels in
categories like jams and pickles, but that will be one year down
the line.

5.5 Order and Delivery Management

(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.

(b) My Shopping List


My Shopping List is a comprehensive list of all the items previously
ordered by you on Bigbasket.com. This enables you to shop quickly and
easily in future.
(c) Delivery Slots
Delivery slots are time slots during which you will receive your order.
Big Basket currently offers 4 delivery slots each day. They are –
Slot 1 - 07:00 am to 09:30 am
Slot 2 - 10:00 am to 12:00 pm
Slot 3 - 05:00 pm to 07:30 pm
Slot 4 - 07:30 pm to 10:00 pm

(d) Cut-off Timing for Each Slot


Cut off time is the time after which the order gets processed for
delivery. After this time you will not be able to modify or cancel your
order. Cut off time for Slot 3 & Slot 4 is 12 noon on the same day and
cut off time for Slot 1 & Slot 2 is 7 pm on the previous day. You will not
be able to make any changes to your order after the cut off time for
your selected slot. However, if you do not wish to buy a product you
may return it at the time of delivery and the amount will be credited to
your big basket account. Delivery slot cannot be changed once the
order is placed. In case of an urgent requirement of change of slot
customer support team can be contacted.

(e) Checking the Current Status of the Order


The only way you can check the status of your order is by contacting
customer support team. You will receive an email as well as an SMS
about unavailable items before the delivery of your order.

(f) Cancellation of the Order


You can cancel an order before the cut off time of your slot (1 pm for
evening slots and 6 am for morning slots) by contacting customer
support team.
(g) WYSIWYG Guarantee
What You See Is What You Get is their promise to deliver every item
ordered by you. If they fail to do so they will credit your big basket
account with 50% of the value of the undelivered product immediately.
For example if you had ordered for Rs. 1000 worth of products and one
product worth Rs. 100 was not delivered (or if an incorrect product was
delivered) Rs. 50 will automatically get credited .

(h) Currently Running Offers/ Promotions


There is a link called “Store Wide Offers” on the top right hand side of
their website. All products with any discount or promotions are listed
under this section.

(i) Defective (broken, leaking, expired) Products


They have a no questions asked return policy. In case you are not
satisfied with a product received you can return it to the delivery
personnel at time of delivery or you can contact customer support
team.
(j) Modes of Refund
The amount will be refunded to your Bigbasket.com account to use as
store credit in your forthcoming purchases. In case of credit card
payments also credit the money back to your credit card.

(k) Suggestions by customers


If you are unable to find a product or brand that you would like to shop
for, customers can write to them at customerservice@Bigbasket.com
and they will try their best to make the product available to you.
(l) Feedback
They always welcome feedback, both positive and negative from all
their customers. Customers can write to them at
customerservice@Bigbasket.com

(m) Delivery Model


Big basket owns fleet of 50 vans, which are being commissioned for
delivery. They follow a hub-and-spoke model where all the goods are
bought and stocked in a warehouse (it will be built as the company
moves into direct purchase in the next 6-8 months).
The warehouse will then supply to the hubs. They have three in
Bangalore – in Whitefield, Kanakpura and Yashwantpur – and they
cover the entire city. From there, the delivery executives (called
customer experience managers) deliver the goods in four time slots as
mentioned earlier. Big basket company acquired one of the earliest
hyper local grocery companies, Delyver, a month back and will use this
acquisition to additionally do time-based deliveries. The current model
of Big Basket is full service - it has upwards of 15000 SKUs(Stock
keeping unit), owns its own inventory and delivers using four wheelers
and two-wheelers across multiple cities with deliveries done by staff.

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.

6.2 Cash on delivery


Cash on delivery means that you can pay for your order at the time of
order delivery at your doorstep.
6.3 Credit card
If they are not able to delivery all the products in your order and you
have already paid for them online, the balance amount will be refunded
to your big basket account as store credit and you can use it at any time
against your future orders.

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.

6.5 Big Basket Wallet


The Big Basket Wallet is a pre-paid credit account that is associated
with your big basket account. This prepaid account allows you to pay a
lump sum amount once to big basket and then shop multiple times
without having to pay each time.
6.6 Delayed Order Delivery
In case of delay in delivery, the customer support team will keep you
updated about your delivery. Additionally 10% of the order value will
be credited to your big basket account which can be used in your next
order.

6.7 Minimum Order for Delivery


There is no minimum order for delivery but they charge a nominal
delivery fee of Rs 20 for orders below Rs1000 in value.

CHAPTER 7

7.1 Inventory Based Model


 Big Basket operates on an inventory-based model so that they
can ensure delivery of most of the products ordered. It is also
partnering with about 1,800 neighbourhood stores to sell its
brands of staples, fruits and vegetables.

 They cater to both consumer needs, bulk pre-planned as well as


on-demand emergency top-ups, with an inventory-led approach.
For bulk orders, they fulfil orders through their warehouses and
for 1-hour express deliveries, they have set up about 63 'dark
stores' around the city.

 Dark stores are godowns or supermarket-like facilities meant


specifically for companies like Big Basket to source products and
saving them from the hassle of having to go to neighbourhood
stores to pick up supplies.
7.2 Sourcing Products Across Categories
They are dealing in four broad categories. First is staples (rice, dhal,
spices, etc.) and within a month of starting operations, they have
moved to private label. They source these from the mandis to one of
their suppliers who cleans and packages those. From mandis, they will
move further down the supply chain to the mills, and that is how the
margins keep rising. One category, which will be a big differentiator for
Bigbasket.com, is fruits and vegetables. But it will be very difficult to
crack. They have a farm-to-home concept where they intend to get the
produce directly from the farms, without the intermediaries. Typically,
the produce stays at least 24 hours in a store when you see it
deteriorating. They are working with Safal but over a period of time, it
will build our network of farming bodies and that will help them ship
directly to buyers. Another growing category is frozen meat and dairy
products. Then there is FMCG foods and non-foods (toiletries and
personal care). They deal with the distributors in these categories
through working closely with Metro Cash & Carry. Big basket is also
planning to introduce private labels in categories like jams and
pickles, but that will be one year down the line.

CHAPTER 8

8.1 Marketing Strategy

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

9.1 SWOT Analysis

(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

10.1 Challenges of Big Basket


 The most common challenge for ecommerce companies has been
hiring and retaining talent. Especially, when it comes to the
delivery boys. Recruiting, training and retaining delivery boys has
been little tricky for them. As the catchment dries up, they now
need to go to smaller cities to hire them and provide them with
affordable housing in the city of operations. This helps a lot in
retention.
 Since Big Basket deals with groceries which are mostly perishable,
managing the complex supply chain to reduce wastage is another
big challenge. The current data of transactions helps in predicting
the orders and hence avoiding much wastage.
 Logistics is very complex as they deliver large orders unlike
Flipkart or Snapdeal that delivers only one or two items. The
average basket size of big basket is of 25 items, which includes
frozen, liquid, chilled and perishable items. So, these need to be
delivered at one time and in a proper manner as people do not
like repeat or late deliveries.
 The most pressing thing is to get fill rates right, which currently
stands at 90- 95 percent for Big Basket.com. Consumers are
expecting to get a 100 percent fill rate and that puts pressure on
them. People buy online for convenience and even if one item is
short, they don’t mind purchasing everything offline.
 Another problem is of suggesting alternatives for stock-outs and
at present. Big Basket.com’s platform doesn’t have the
intelligence to do so. For the time being, it’s tackling the issue by
mentally preparing customers before delivery. The company has
invested heavily in technology, especially for back-end logistics. A
routing software helps them divide the number of orders serviced
by each van, which are fitted with GPRS systems to monitor
movement in real-time.
 Competitors like grofers, aaram.com, local banya also provide
offers and discounts. So, Retaining the customers is an important
challenge.
 Cyber crime

CHAPTER 11

GROWTH AND FUTURE VISION


11.1 Sales & Revenue
They are growing very vast in many regions and state. Average number
of transactions which takes place in a day is around 300 and the
average value of each bill is around Rs.1200/-. So, we can clearly see
the revenue they generate each day in one state. Total revenue for the
day is 1200 X 300= Rs.3, 60,000 X 30 days = 1, 19 08, 00,000 per month.
New customers which are joining each month each month is
around 3000 and next billing for each customer is being done in 15 – 20
days. One of the advantage of this company is that they have is their
own private staple crop which 1contributes to 20% of their total
business. Profits margins also look very attractive. Gross Profit remains
in between 20 % - 23 % and net profit is around 5% - 7%. Big Basket
reported revenue of INR 178 crores against loss of INR 61 crores in FY
14-15. The revenue and PAT figures during the last fiscal were INR 71
crores and INR 22 crores respectively. The revenue from operations
stood at INR 170 crores in FY 14-15.
Big Basket operates on an inventory-led model and, hence, the biggest
expense for the company was the purchase of stock-in-trade which
stood at INR 171 crores. The company spent INR 22 crores on
advertising and promotional expenses in FY 14-15 which was a 420 per
cent increase over the previous fiscal. The following is the breakup of
the major expenses of the company:

Big Basket Expenses Breakup (In INR Crores)


11.2 Comparison
Big Basket competes with players like Grofers, Peppertap and ZopNow
in the online groceries segment. Here is how it compares with the rest
in FY 14-18:
CHAPTER 12

RESEARCH METHDOLOGY

12.1 DATA ANALYSIS


Analysis and interpretation are central steps in the research
process.The first step in the process of analyzing the data would
normally be to recode all variables measured, however, due to the
compatibility of SPSS programs the values were already coded
accordingly when importing the raw data.
12.2 PERCENTAGE ANALYSIS
Percentage methods refer to the specific kind which is used in making a
comparison between two or more series of data collected. The
percentage is based on descriptive relationship. It compares the
relative items. Through the use of percentage, the data are reduced in
the form with base equal to 100% which facilitate relative comparison.

Percentage = No of respondents *100


Total no of respondents

TABLE 12.1.1
TABLE SHOWING THE AGE OF THE RESPONDENTS

AGE RESPONDENTS PERCENTAGE


Below 20 years 29 32.2
20-30 42 46.7
30-40 12 13.3
Above 40 7 7.8
Total 90 100

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

EDUCATIONAL RESPONDENTS PERCENTAGES


QUALIFICATION
Up to school level 8 8.9
Under graduation 63 70
Post-graduation 13 14.4
Professional 6 6.7
Total 90 100
INTERPRETATION:
From the above table, it is seen that 8.9% of people are up to school
level, 70% of respondents are under graduation, 14.4% of respondents
are post-graduation and 6.7% of respondents are professional. Majority
of the respondents (70%) are undergraduates.

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

FREQUENCY RESPONDENTS PERCENTAGES


Daily 10 11.1
Weekly 38 42.2
Monthly 29 32.2
Only When Required 13 14.5
Total 90 100
INTERPRETATION:
From the table, the frequency of purchase of groceries are 11.1% who
purchase daily, 42.2% purchase weekly, 32.2% respondents purchase
monthly, 14.4% purchase only when required.
The majority (42.2%) shows that people purchase groceries weekly.

TABLE 12.1.6
TABLE SHOWING EXPERIENCE OF ONLINE GROCERY
SHOPPING

EXPERIENCE OF RESPONDENTS PERCENTAGE


ONLINE GROCERY
SHOPPING
Yes 51 56.7
No 39 43.3
Total 90 100

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

REASONS RESPONDENTS PERCENTAGE


Mobility Problems 17 18.9
Shopping To Tiring 20 22.2
Recommendation 18 20
Any Time Shopping 24 26.7
No Time To Go To 11 12.2
Store
Total 90 100

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

SHOPPING SITES RESPONDENTS PERCENTAGES


Big Basket 35 39
Amazon 24 27
Godrej Nature’s 14 16
Basket
Grofers 17 18
Total 90
INTERPRETATION:
From the above table, it is clear that 39% of respondents buy their
products from the big basket, 27% from Amazon, 16% from Godrej
Nature’s basket and 18% from Grofers.
Majority of the respondents (39%) have preferred big basket.

TABLE 12.1.9
TABLE SHOWING THE PRODUCTS PREFERRED IN ONLINE
SHOPPING

PRODUCT RESPONDENTS PERCENTAE


Groceries 4 4.44
Edible Oils 11 12.22
Beverages 4 4.44
Milk and Dairy 10 11.11
Baby and 5 6
Childcare
Laundry supplies 12 13.33
Household and 2 2.22
Cleaning
Snacks 10 11.11
Imported and 6 6
Gourmet
Fruits and 11 12.22
Vegetables
Personal Care 15 17
Total 90 100

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

ATTRIBUTES RESPONDENTS PERCENTAGE


Convenient Delivery 10 11.11
Slots
Cash Free 39 43.33
Transactions
Better Deals/Discount 12 13.33
Return Policy 14 15.55
Website Design 10 11.11
None 5 5.55
Total 90 100

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

PAYMENT METHODS RESPONDENTS PERCENTAGE


Credit Card 9 11.11
Debit Card 21 23.3
Net Banking 15 16.7
Cash On Delivery 43 47.8
Total 90 100

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.

12.2. Chi-Square Test


The Chi-Square Test of Independence determines whether there is an
association between categorical variables i.e., whether the variables
are independent or related.
TABLE SHOWING THE AGE FACTOR RELATIVE TO SAVING OF

TIME THROUGH SHOPPING ONLINE


Chi-Square Tests

VALUE df Asymp. Sig.


(2-Sided)
Pearson 31.180 16 0.13
Chi-
Square
Likelihood 23.348 16 .105
Ratio
N of Valid 86
Cases

a. 19 cells (76.0%) have expected count less than 5. The minimum


expected count is .02.
H0: Online grocery shopping saves time is not associated with the age
of the respondents
H1: Online grocery shopping saves time is associated with the age of
the respondents
The above table has a significance level 0.013<0.05 which shows that
online grocery shopping saves time is associated with the age of the
respondents. Thus, the alternative hypothesis is accepted and the null
hypothesis is rejected.

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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