Shashank Jaiswal Sip
Shashank Jaiswal Sip
Shashank Jaiswal Sip
S.NO. TOPIC
1 INTRODUCTION
2 COMPANY PROFILE
3 LITERATURE REVIEW
4 RESEARCH OBJECTIVES AND HYPOTHESIS
5 RESEARCH METHODOLOGY
6 DATA ANALYSIS AND FINDINGS
7 CONCLUSIONS
8 RECOMMENDATIONS
CHAPTER 1: - INTRODUCTION ABOUT THE FIRM:
Big Basket Daily is an Indian online grocery and food products provider, founded in
October; 2011. Headquartered in Bangalore, the brand is run by Innovative Retail
Concepts Private Limited in 30 Indian towns and cities. It sells fresh fruits and
vegetables, meat and dairy, groceries, and personal care and household items via its
website and mobile apps.
As of 2017 It had a customer base of 6 million and was the country's largest online
grocer. In 1999, founders of Big Basket, Hari Menon, Abhinav Choudhary, V S
Sudhakar, Vipul Parekh and V S Ramesh started Fab mart, one of the first online
businesses in India. But it did not succeed because of the low internet penetration in
India at the time and lack of secure digital payment gateways which discouraged
people from making online payments. After trying other ventures they regrouped in
2011 to try the online grocery market again and started Big Basket Daily.
Big Basket Daily acquired in June 2015 for an undisclosed amount. It was an online
grocery store and its specialty was using local stores to deliver groceries to people . In
2017 Big Basket partnered with MUMBAI-owned Bengal Chemicals and
Pharmaceuticals Limited (BCPL) to deliver its industrial chemicals, pharmaceuticals,
and home products to its customers in Kolkata. In April 2017, Big Basket partnered
with Snap Bizz, a retail technology firm to automate supply chain and inventory
management for local grocery stores.
E-COMMERCE
As the e-commerce sector is growing in the economy, we can see its presence and
impact on various segments. E-commerce has eased the way business transactions are
carried out. E-grocery is emerging as an exceedingly huge approach. The Researcher
has administrated the cross-sectional survey in Noida city and collected the data from
the respondents who are availing the services of Big Basket. Structured Questionnaire
has been applied and targeted to those clusters where the consumers are availing such
services. A sample size of 105 respondents are targeted from the various areas of
Noida like Sector 62, Japyee kasmos.
The study tries to focus on the categorical variables like gender, age, occupation,
income, education and qualification and various questions related to purchase
behaviour. The researcher also focuses on understanding the opinion of consumers
with respect to perceived price, perceived quality, perceived level of services and
perceived benefits. Attitude Likert Scale has been applied to understand the intensity
of big basket online consumers on different statements framed within the
questionnaire. Researcher also considers dependent variable as an overall outcome of
the above mentioned independent variables.
INTRODUCTION:-
Over the past two decades, the Indian e-commerce sector has witnessed a rising trend.
Major factors that have led to this rise are increasing net convenience and internet
penetration. Also, growing acceptableness of on-line payments and favourable
demographics has modified the approach corporations communicate, act and do
business with customers. It has altered the approach of how the Indian e-commerce
sector works. The buying behaviour of people has changed significantly from brick
and mortar to click and mortar or what we call as e -ailing. In the early years e-
retailing commerce was considered to be an aid to the business. In the meantime, it
has become more or less business enabler.
E-Grocery Out of all the sectors that have seen the rise of e-commerce, grocery is one
which has led to quite a surprising business model. If we look back to the past,
groceries have always been bought through physical stores. The idea of touching and
feeling the product before purchasing it has been the psychology of Indian consumers.
So when the concept of e-grocery was introduced there was a lot of hope that
surrounded it. Even if we look today‟s scenario the e-grocery still remains at the stage
of infancy and is growing slowly and gradually.
ADVANTAGES OF E-GROCERY: -
There are certain advantages of e-grocery as any other e-commerce sector like:-
Faster Delivery
Accessibility
Offers And ,
Discounts.
1. Product Range: Big Basket offers a huge range of products which stretches to
about 18000 products.
2. Exotic Range: It also offers exotic fruits, vegetables and imported groceries which
are not easily available in nearby retail outlets. This gives them an edge in catering to
customers who like buying such stuff.
3. Discounts: Big Basket offers huge discounts on various products. They also have
the product bundling technique to maximize sales and offering maximum discounts to
the customers. This makes them a lucrative option for customers to buy.
4. Convenience: Big Basket offers an escape from the hassle of standing in the
queues of malls or going all the way to the retail stores. They give the products right
at the door step and offer multiple payment options. The on-time delivery guarantee
makes them a lucrative option, Customers, especially in big cities where life is very
fast and it is difficult to reach the customers, can shop at any time of the day.
5. Target Group: They have selected their target customers very carefully and have
established a footing in the metropolitan and some tier-I cities. They operate in
Bangalore, Hyderabad, Mumbai, Pune, Chennai, Delhi, Mysore, Vadodara, Patna,
Indore, Vijaywada, etc. They are currently operational in about 25 cities.
6. Low Fixed Cost business model: Most of the items that Big Basket offers are
perishable hence they depend on the retail stores they are coordinating with for the
products. This means they have no inventory cost and makes their business model
more profitable.
DISADVANTAGES:
1. Delivery Time: Big Basket delivers the groceries the next day. Many retailers have
started the facility of home delivery to nearby societies and customers in just few
minutes to hours. So customers prefer this instead of waiting for 24 hours.
2. High Variable Cost: Cost of running many delivery guys, delivery trucks, storage
for perishable items, wastage during transportation makes the business run at a high
variable cost. They have to bleed more money and will take longer to break even.
3. Minimum order quantity/price compulsion: Big Basket does not offer home-
delivery below a certain set order price limit. This means that customers would be
forced to add a product or two just to avail the service. This makes them lose a
customers.
4. Be at home: Customers have to be at home when Big Basket is about to deliver.
This means the customers have to plan according to the delivery time. If by some
means the order gets delayed customer gets angry and unhappy by the service. On top
of this they have to pay a little add on price for the home delivery.
5. Order Cancellations: They depend on stores that they have tied-up with to
provide them the items. If they do not have the items available they won‟t be able to
deliver them. This sometimes tend in cancellation of orders. Out of stock issues tend
to make the customers unhappy and repetitive of such issues makes the customers
reluctant to reuse the service.
LIMITATIONS :-
While on the other hand it also struggles with certain limitations like difficulty in
penetrating in small towns :-
Lack Of Awareness Among Homemakers,
Freshness Of Fruits And
Vegetables, Etc.
The major players dominating the market currently are Big Basket. The success of Big
Basket is attributed to a number of factors like offering wide variety of product range at
lowest prices and efficient services. The flexibility of offering delivery time is considered
to be a USP of Big Basket. The delivery time brackets start from morning 6:00 am to
evening 9:00 pm. Big Basket has recently crossed 10 million customers mark and is
clocking close 1 lakh orders per day. With its presence in 30 towns and cities in India it is
now planning to dig deeper into the cities it already has a foothold in, rather than focusing
on expansion into more cities. It is expected that over the coming years the digital
footprint in the Asian countries is going to be on rise and it is expected that the market
share of online grocery in India by 2022 will be 0.6%.
Did you ever imagine that the freshest of fruits and vegetables, top quality pulses and food grains,
dairy products and hundreds of branded items could be handpicked and delivered to your home,
all at the click of a button? India‟s first comprehensive online megastore, bigbasket.com, brings a
whopping 20000+ products with more than 1000 brands ,to over 4 million happy customers.
From household cleaning products to beauty and makeup, big basket has everything you need for
your daily needs. Bigbasket.com is convenience personified They have taken away all the stress
associated with shopping for daily essentials, and you can now order all your household products
and even buy groceries online without travelling long distances or standing in serpentine queues.
Add to this the convenience of finding all your requirements at one single source, along with
great savings, and you will realise that big basket-India‟s largest online supermarket, has
revolutionized the way India shops for groceries. Online
grocery shopping has never been easier. Need things fresh? Whether it‟s fruits and vegetables
or dairy and meat, they have this covered as well! Get fresh eggs, meat, fish and more online
at your convenience. Hassle-free Home Delivery options They deliver to 25 cities across
India and maintain excellent delivery times, ensuring that all your products from groceries to
snacks branded foods reach you in time.
Slotted Delivery: Pick the most convenient delivery slot to have your grocery delivered.
From early morning delivery for early birds, to late-night delivery for people who work the
late shift, big basket caters to every schedule.
Express Delivery: This super useful service can be availed by customers in cities like
Bangalore, Mumbai, Pune, Chennai, Kolkata, Hyderabad and Delhi-NCR in which we
deliver your orders to your doorstep in 90 Minutes .
BB Speciality stores: Missed out on buying that essential item from your favourite
neighbourhood store for tonight‟s party? They‟ll deliver it for you! From bakery, sweets and
meat to flowers and chocolates, they deliver your order in 90 minutes, through a special
arrangement with a nearby speciality store, verified by us.
After getting materials from their vendors, it is stored in warehouses (warehouses cater to
cities within KMs range of 250–300) where packing of items is done.
Refrigerated vans are placed in different regions from where order is delivered to customers
or now they have storage facilities by name of dark storage where they store materials before
dispatching to customers.
Dark storage facilities get a direct feed from warehouses. To order on Big Basket, just
follow: Browse, select and pay. It deals in staples, vegetables, meat and fish to gourmet and
ready-to-eat food, household goods and personal care items now. Use of data analytics is
helping them to avoid wastage as items are perishable. Big Basket processes 35000+ orders
every day and operates in 23+ cities nation wide. Currently, they are operating 25 warehouses
and 63 storage facilities. With a customer base of three million, company is targeting
revenues of Rs 1800 crores in FY17 .
● In-house logistics: Big Basket has its own fleet and warehouses, giving them better
control and better margins .
● Focussed on weekly purchasers rather than impulse buyers to combat wafer-thin margins
so that the minimum order size exceeded a particular level.
● Apart from regular groceries, Big-Basket offered high-margin products to buyers, such as pet
food; Focussed on private-label brands such as Fresh for Vegetables, Meat and Royal & Popular
for staples, thereby earning higher profit-margins. The company has built a thriving business-to-
business vertical with its private brands, selling to restaurants, hotels and caterers. The vertical is
expected to account for about one-fourth of Big Basket‟s annual revenue.
● Use of technology for front-end customers and back-end operations: Uses a real-time
analytics software that makes sourcing almost automatic; tracking of delivery vans using
GPS; giving customers an option to pay by credit card.
● Hub and spoke model for efficient and fast delivery with warehouses in each city of operation
. Has recently introduced a 60 minute express delivery targeting weekly purchase that
typically revolves around items with a short shelf life such as milk, fruits and vegetables .
1. After getting materials from their vendors, it is stored in warehouses (warehouses cater to
cities within KMs range of 250–300) where packing of items is done.
2. Refrigerated vans are placed in different regions from where order is delivered to customers or
now they have storage facilities by name of dark storage where they store materials before
dispatching to customers. Dark storage facilities get a direct feed from warehouses. To order on
Big Basket, just follow: Browse, select and pay. It deals in staples, vegetables, meat and fish to
gourmet and ready-to-eat food, household goods and personal care items now. Use of data
analytics is helping them to avoid wastage as items are perishable. Big Basket processes 35000+
orders every day and operates in 23+ cities nation wide. Currently, they are operating
25 warehouses and 63 storage facilities. With a customer base of three million, company is
targeting revenues of Rs 1800 crores .
ISSUES WITH EXISTING SUPPLY CHAIN:
1. Competition: It has small presence in terms of cities covered hence, it is getting a huge
competition from other startups like Grofers, Pepper Tap, Nature‟s Basket, Zop Now, Aaram
Shop, Mera Grocer, etc.
2. Bigger Players: Bigger players in terms of financial backing and presence are also
entering this lucrative industry. Players like Amazon, Flipkart and Google have also entered
this industry. This may prove fatal for smaller players like Big Basket to compete with them.
3. Smaller Players: Many other localized shops have picked up on this trend and have
started home delivery service to nearby customers thereby killing groups of target customers
across regions and cities.
4. Customer Retention: It is very difficult to retain customers. They would tend to move
with the service provider that offers the most discounts.
General Business Models :- There are mainly 3 kinds of business models when it comes to
online grocery:-
Inventory based model: The company has it's own inventory and manages it based on
everyday demand. Big basket started with this model.
Hyperlocal: In this model, the hyperlocal receives the order and buys items from store based
retailers, collects them in one place and delivers it to the consumer. Companies like Grofers ,
ZopNow use this model.
Mixed Model: Companies use a bit of both of the above mentioned models. However, in
order to maintain the costs, the inventory is generally relatively smaller in size as compared
to companies that have adopted the inventory based model.
Online grocers face number of challenges. The major challenge is lack of handy experience
in consumer demands. Online market has developed its space in virtual world but is this
market worth for all kinds of products specially the perishable grocery products. Thus there is
need to study consumer perception towards the online grocery market. The marketers need to
analyse and understand what their consumer actually want and what they perceive about their
online service.
CONCEPTUAL FRAMEWORK
▪ GENDER ▪ CONVENIENCE
▪ AGE ▪ SAVES TRAVELLING TIME
▪ INCOME VARIETY AT ONE PLACE
DISCOUNTS AND OFFER
AVOIDCARRYING HEAVY
BAGS
AVOID LONG QUEUES
On the basis of literature study, it can be concluded that electronic or automated trading
system has impact in positive way but also we should keep in mind that technology comes in
both form and especially in financial markets a big question raise for the safety and security
of market health.
With the reference of working paper on computer trading in UK (Sep 2017), the actual centre
point is to fiscal stableness and electronic trading, effect of electronic trading in price
efficiency and each transaction cost and effect of developed technology.
MICHAEL J. MCGOWAN(2017), discussed about the pros and cons of high frequency
trading. The paper focused whether high frequency trading is more harmful or beneficial for
the society.
Various automated trading,HFT strategies, whereas the other side contains the problems as
lack of knowledge or understanding which would be responsible for price manipulation,
illegal activities. And heft would be harmful for the investors.
H. Y. (2016) Factors influencing consumer perceptions of brand trust online. Journal of Product
& Brand Management.Unlike the traditional bricks‐and‐mortar marketplace, the online
environment includes several distinct factors that influence brand trust.
As consumers become more savvy about the Internet, the author contends they will insist on
doing business with Web companies they trust. This study examines how brand trust is
affected by the following Web purchase‐related factors: security, privacy, brand name, word‐
of‐mouth, good online experience, and quality of information.
The author argues that not all e‐ trust building programs guarantee success in building brand
trust. In addition to the mechanism depending o n a program, building e‐brand trust requires a
systematic relationship between a consumer and a particular Web brand.
The findings show that brand trust is not built on one or two components but is established by
the interrelationships between complex components.
The importance of perceived trust, security and privacy in online trading systems.
Information Management & Computer Security. The purpose of this paper is to test an
augmented technology acceptance model (TAM) in the online financial trading context. This
research aims to investigate how e‐investors are influenced by perceived trust, security, and
privacy jointly with traditional TAM constructs.
Hassanein, K., & Head, M. (2017). Manipulating perceived social presence through the web
interface and its impact on attitude towards online shopping. International Journal of Human-
Computer Studies. Electronic commerce typically lacks human warmth and sociability, since
it is more impersonal, anonymous and automated than traditional face-to-face commerce.
This paper explores how human warmth and sociability can be integrated through the web
interface to positively impact consumer attitudes towards online shopping.
An empirical study was undertaken to investigate the impact of various levels of socially rich
text and picture design elements on the perception of online social presence and its
subsequent effect on antecedents of attitudes towards websites. Higher levels of perceived
social presence are shown to positively impact the perceived usefulness, trust and enjoyment
of shopping websites, leading to more favorable consumer attitudes. Implications of these
finding for practitioners and future research are outlined.
Although several prior research projects have focused on the factors that impact on the
adoption of information technology or Internet, there is limited empirical work which
simultaneously captures the success factors (positive factors) and resistance factors (negative
factors) that help customers to adopt online banking.
This paper explores and integrates the various advantages of online banking to form a
positive factor named perceived benefit. In addition, drawing from perceived risk theory, five
specific risk facets – financial, security/privacy, performance, social and time risk – are
synthesized with perceived benefit as well as integrated with the technology acceptance
model (TAM) and theory of planned behavior (TPB) model to propose a theoretical model to
explain customers‟ intention to use online banking.
Final project report on future of computer trading in financial markets (Oct 2018),
emphasized on the high frequency trading benefits for the markets over the negative
perspective.It also reflected strong measures with cautiously and further task to inform
policies in the field of knowledge and uncertainties.
RESEARCH METHODS
RESEARCH GAP :-
Online Delivery is time consuming In the research article named “I‟ll have the ice cream soon
and the vegetables later”: A study of online grocery purchases and order lead time”(Milkman,
Katherine L.Rogers, Todd, Bazerman, Max ),it was seen that an increase in the delay between
order completion and order delivery results in online customers prioritising and ordering more of
the basic need items such as vegetables and ordering less items belonging to lesser groups of
importance by need (Ice creams among others). In a more detailed explanation, it was seen in the
research that people spend more liberally on the items of “want” over the items of “need” in
settings where there is a shorter delay time. It was noted that there was a single day increase in
delay caused approximately a 2% decrease in the size of the grocery order. In the research paper
titled “Online Grocery Shopping: The effect of Time Availability on Malaysian Consumer
Preferences”, it was seen that customers with little time on their hands preferred online grocery
shopping as compared to brick and wall retail shopping. Moreover, a general trend in the
behaviour of online shoppers was noted in the research paper titled “consumer behaviour and
attitude towards internet shopping” (S Freeman and M Gabbot 1999) where it was seen that
delays or increases in waiting time resulted in the customer abandoning the cart midway.
Similarly, A Neilsen report titled “Response times; the three important limits” (1996) led to a
broad-based conclusion that there is a loss in consumer interest if online shopping websites have
a delay of more than 10 seconds. A research paper titled “Consumer Responses to Online Food
Retailing” (by Michelle A. Morganosky and Brenda J. Cude) carries out two surveys where
76.6% in the first survey and 53.3% of the total respondents cite convenience/time as the most
important reason to shop online. Interestingly, however 47.5%
in the first survey and 19% in the second survey perceive that the time taken to shop online is
equal to or greater than the time taken to buy the same in a brick and wall shop. The study
noted that there was a marginally significant relation between the buying of grocery items
and the perception of the time taken in buying activities among the online users. In the
research paper titled “Exploratory Studies on Online Grocery Shopping” (by Ali M. Noor,
Zetty M.M. Zaini , Mohd Raziff Jamaluddin and Mohd Salehuddin Mohd Zahari),it was seen
that consumers overall tended to give less value to time when asked about searching items
,however time became an important factor while purchasing the product of their choice. The
study notes that consumers will give second thoughts to online grocery shopping if high
delays in search and purchase of grocery items were to be prevalent on the websites.
RESEARCH OBJECTIVES
2. To classify the start-ups into different categories and find the trends of market and growth
in different sector.
RESEARCH METHODOLOGY
The descriptive research design was adopted in the study. The data was collected from
primary and secondary sources. The data was collected from respondents from Greater Noida
through questionnaire by adopting convenience Sampling Technique. Percentage analysis,
Ranking analysis, Likert scale analysis were used to analyses the data.
RESEARCH PLAN
To achieve the objectives; a systematic research plan was followed.
For this, a checklist prepared, and based on checklist, a comprehensive questionnaire was
developed and pre-tested.
The study was conducted for collected and calculated data up to accurate extent from primary
as well as secondary sources, and it was assured to the respondents that their response would
be kept confidential so they were very free and frank while giving their response.
Being descriptive research; collected data and information from personal interviewed with
official of different incubators, by filling questionnaires, as well as surfing on Internet,
LinkedIn, Your Story, Crunchbase, articles published in news columns.
RESEARCH APPROACH
Research instrument :-
In this research project, a questionnaire has been devised in a manner to get the
knowledge of the working in FMCG sector. The sector required for their growth, the
factors necessary for scaling and to find the gaps in society which can bridged as an
opportunity. The resources available online were also extensively used.
To study the various factors related to online purchase with respect to Big Basket
To measure the impact of various factors with reference to online purchase on the
overall purchase of consumers.
RESEARCH DESIGN :-
SAMPLING PLAN :-
1. Sampling unit:
In this project, a qualitative survey of society and incubators was done to get
information about them.
2. Sample size:
3. Sampling procedure:
ANALYSIS:
Data visualization is done using MS Excel .
The title of study was very broad so it was not possible to do detailed analysis of every
aspect.
Time duration of 45 Days for the study of whole process is very less.
Majority of process is missed the telephonic because of their busy schedule and
confidentiality.
The time given by the company was very less to understand and analyse their functioning
ORGANISATIONAL CHARTS OF BIG BASKET DAILY
COMPETITORS OF BIG BASKET
Count of Gender
70
60
50
40
30
20
10
0
Female Male
Question 2: - Age
Count
Age of Age
20-30 29
30-40 30
40-50 30
Above 50 16
Count of Age
35
30
25
20
15
10
0
20-30 30-40 40-50 Above
50
Question 3: - How much amount do you spent on your online
grocery items per month?
How much amount do you spent on your online Count of How much amount do you spent on
grocery items per month? your online grocery items per month?
1000 - 2000 Rs 38
2000 - 4000rs 32
less than 1000rs 26
more than 4000rs 9
2000 - 4000rs
1000 - 2000 rs
0 5 10 15 20 25 30 35 40
Question 4 :- Which application do you generally use for online grocery shopping ?
Which application do you generally use for Count of Which application do you generally use
online grocery shopping? for online grocery shopping?
BB Daily 43
BB Daily, Country Delight 3
BB Daily, Milk Basket 5
BB Daily, Milk Basket, Super Daily 1
BB Daily, Super Daily 2
Country Delight 13
Milk Basket 27
Milk Basket, Country Delight 2
Other 3
Super Daily 6
Super Daily
Other
Milk Basket
Country Delight
BB Daily
0 5 10 15 20 25 30 35 40 45 50
Question 5:- Rate your satisfaction level and convenience level of following with BB
Daily ? [price of different products]
(blank)
satisfied
neutral
Highly satisfied
highly dissatisfied
disastisfied
0 5 10 15 20 25 30 35 40 45 50
Question 7:- Rate your satisfaction level and convenience level of following with BB
Daily ? [quality of food and vegetables]
Rate your satisfaction level and convenience level of following with BB Daily?
[quality of food and vegetables]
Dissatisfied
highly dissatisfied
Highly satisfied
Neutral
Satisfied
satisfied
neutral
Highly satisfied
highly dissatisfied
disastisfied
0 5 10 15 20 25 30 35 40
Question 8 :- Rate your satisfaction level and convenience level of following with BB
Daily ? [Availability of milk and food items]
Rate your satisfaction level and convenience level of following with BB Daily?
[Availability of milk and food items]
Dissatisfied
highly dissatisfied
Highly satisfied
Neutral
Satisfied
satisfied
neutral
Highly satisfied
highly dissatisfied
disastisfied
0 10 20 30 40 50 60
Question 9 :- Rate your satisfaction level and convenience level of following with BB
Daily ? [Convenience of using application]
Rate your satisfaction level and convenience level of following with BB Daily?
[Convenience of using application]
Dissatisfied
highly dissatisfied
Highly satisfied
Neutral
Satisfied
(blank)
satisfied
neutral
Highly satisfied
highly dissatisfied
disastisfied
0 10 20 30 40 50 60
Question 10:- How likely are you to recommend this site to other online shoppers ?
How likely are you to recommend this Count of How likely are you to recommend
site to other online shoppers? this site to other online shoppers?
can't say 13
Highly unlikely 20
somewhat likely 40
very likely 32
40
35
30
25
20
15
10
0
can't say Highly unlikely somewhat likely very likely
Question 11:- Which item did you think you purchase most often online ?
Which item did you think you Count of Which item did you think you purchase
purchase most often online? most often online?
Breads
Dry edible items like pulses, rice etc
Fruits and vegetables
Milk and Milk products
Others
Count of Which item did you think you purchase most often
online ?
Others
Breads
0 10 20 30 40 50 60
Question: 12 What is the most important thing you want to get improved in BB Daily?
What is the most important thing you want to Count of What is the most important thing you
get improved in BB Daily? want to get improved in BB Daily?
Others
0 5 10 15 20 25 30 35 40
Question:13 What is your major reason for buying groceries online from BB Daily?
What is your major reason for buying Count of What is your major reason for
groceries online from BB Daily? buying groceries online from BB Daily?
Saves time
Others
0 5 10 15 20 25 30
FINDINGS
They either store or have a tie up with distributors, the grocery model is not successful unless
accompanied by other FMCG daily use items and a vast client list , the cost of last mile delivery
is very high. As far as I am aware, companies like big basket, flip-kart etc are not working on
model in which they have vendors or tie-up will people around the places where they place there
order according to the order they receive and then a person representative of the company comes
and collect the product from the concerned vendor to dispatch it further. Still standing by their
original principle of doing things one step at a time, Big basket‟s future plans are somewhat less
exciting, perhaps, when compared with what some competitors have had in the recent past. Two
of its major competitors, Tiger Global Management-backed Grofers, which has raised $165
million so far, and Pepper Tap, paid the price for aggressive expansion. While Grofers expanded
rapidly before closing down about 10 locations between December and January citing poor
demand, Pepper Tap shut shop in April, about seven months after raising $36 million from
investors. Big basket had originally planned to expand to 50 cities in total but has now scaled that
back to the 25 it currently operates in. “Their expansion has stopped now. They are now not
going to expand anymore for some time to come. Now, their whole thing is to go deep into these
cities and start making each city work well. And one of the methods the company has identified
as key to achieving this goal is analytics. With analytics, which are constantly being built upon
in-house, the company‟s aim is to populate a customer‟s basket based on their most recent and
frequent purchases, alert them if they have not added something they usually buy in case they
have forgotten it and inform them if an item they normally buy is about to run out. To that effect,
it already has a feature called Smart Basket.
Other key focus areas in the days ahead include the fruits and vegetables supply chain and
organic and private labels. While Big basket has no acquisition or fundraising plans, it does
expect to start making announcements about profitability between now and next March. The
company has so far raised at least $220 million from investors such as the Abraaj Group,
Bessemer Venture Partners, Helion Venture Partners, Sands Capital, International Finance
Corporation and Zodius Capital among others, making it the most well-funded online grocery
start-up in the country. And even though the likes of Amazon have already entered the e-
grocery space, throwing up questions around Big basket‟s future: “The Indian retail market is
about $550 billion and 70% is grocery. It is such a large-sized market that it is very difficult
for one player to play. The more players that come, the better it is for the market because it
opens up faster and customers become a lot more confident. That is what you are going to
see. According to industry experts, an inventory model helps online stores extract
significantly higher margins as it buys directly from brands and manufacturers. On the
contrary, hyperlocal delivery start-ups such as Grofers accept orders on an app, collect items
from nearby stores and delivers them, often at a discounted price. Consequently, these firms
operate on wafer-thin margins as they charge the local shops a small percentage of the overall
order value, anything between 2% and 10%, and lose money on every order because of
discounts and offers in an attempt to attract customers. “In the inventory model, quality is
better addressed but delivery is typically faster in a hyperlocal model. The nature of the
product, whether it is standardized or non-standardized, dictates which is a better model. For
instance, if it is milk, which is standardized, hyperlocal may be a better model because
delivery is faster. But if somebody wants to buy some expensive cheese, they would be more
quality-conscious. So, the nature of the product, immediacy of the requirement, the price-
quality association plays a determinant. Some products will fly more on hyperlocal and some
other products on the inventory model. For non-standardized and expensive products, where
consumers are looking for quality, inventory model makes sense, while for standardized
products, hyperlocal model works,” said Deloitte‟s Sudarshan. A challenge for Big basket,
though, has been employee retention. Of its 12,000 employees, almost 70% are blue-collar
workers. The company has formed a trust that supports workers‟ families and ensures there
are no extra working hours, said Menon. Still, every time the company expands, its workforce
grows too and that continues to be a problem area. One of the key decisions of making us
who we are today is starting fresh from day one. That has paid off and paid off well for us as
we‟ve gone along. The second good thing that we‟ve done is making sure this business
model, which has all three ways a customer buys, is brought in.
CONCLUSION
Big basket is looking at achieving the following targets in the next one year:
1. Automation in warehouses.
2. Scale the 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.
The next round of funding may take Big basket‟s valuation to anywhere close to $1 billion.
Though it is not too concerned about the valuation, he‟s clear about continuing with his focus
on the groceries segment(and kitchen care) and does not intend to diversify the business
much. After all, a $300 billion market is by no means insignificant. Today, Big basket
operates 25 warehouses and 63 dark stores (storage facilities). The company claims to have
three million repeat customers and is targeting revenue of Rs1,800 crore in fiscal year 2017,
more than double of the around Rs750 crore it clocked last fiscal year. To be sure, revenue
has been growing steadily, from a meagre Rs3 crore in FY13 to Rs8.5 crore in FY14, before
skyrocketing to Rs200 crore in FY15 and Rs750 crore last fiscal year. During its early years,
Big basket was banking on the convenience of online shopping more than anything else. But
it realized that convenience was not a card it could play for too long. Then what clicked for
the company?
It amassed a wide product assortment, including categories such as home and personal care,
maintained that quality is sacrosanct, especially in fresh produce, and finally, offered a
competitive price. It also had to ensure customer stickiness. Grocery buying has three distinct
patterns: planned, bulk purchase at the beginning of every month; weekly purchase that typically
revolves around items with a short shelf life such as milk, fruits and vegetables; and specialty
store buying. Specialty stores are local stores that garner a very loyal customer base for a
particular product or brand, which customers typically refuse to buy from elsewhere such as
Karachi Bakery‟s biscuits in Hyderabad or Bengaluru‟s Iyengar Bakery‟s breads. Big basket has
those kind of niche stores listed under its specialty stores category. Initially, Big basket serviced
the first category. Fast forward to 2016, the company has launched a 90-minute express delivery
service to cater to the second category, a segment which is being eyed by hyperlocal delivery
start-ups including SoftBank and Tiger Global Management-backed Grofers, and started
aggregating local specialty stores online to capture the third category of
customers. To be sure, grocery delivery as a segment has been on a rise globally. According
to a report by CB Insights in May, grocery delivery start-ups globally raised $436 million in
funding until May this year, surpassing food delivery start-ups, which raised $352 million,
for the first time since 2012.
The team, to ensure stickiness, built a „Cocaine‟ model. The customers are classified under
trial one, two and three, and silver, gold and platinum. Trial one refers to the first order, the
second order moves to trial two and trial three is the third order. On the fourth order, the
customer moves to silver, and this is when the team knows they have got a customer. The
highest churn is from trials one, two and three, and the retention rate at platinum is at 95
percent. So the team focuses on getting the customer to move higher up the chain by
incentivising them. Their overall customer retention rate is 35 percent. The idea is to
understand what the customer has purchased in the past, and retain him or her on the
available data. “They use different offers for different people. What retains Mr X is different
from what retains Mr Y. The past year was focused on growth and expansion. This coming
year, the focus will be on deepening their presence in the cities they operate in. New
additions to the „basket‟: Big basket is operational in seven cities (including six metros)
currently and with fresh funding, it plans to expand to two more metros and 50 tier two cities.
1. Ware houses :The company is in the process of opening large warehouses (approximately
100,000 square feet) in theme of Bengaluru, Hyderabad, Mumbai, Pune, Chennai, Delhi-NCR,
Ahmedabad and Kolkata. These eight warehouses will also cater to cities that fall within a 250-
300 kms to these metros. For example, the Bangalore warehouse is serving Mysore at the
moment, similarly Chennai can be a feeder to Madurai, Trichy; Ahmedabad to Surat, Baroda;
and Hyderabad to Vijay waada, Vizag and Guntur. There will be a support network of 60
smaller warehouses getting direct supply from the large warehouses.
2. Expansion :Big basket will be launching in Kolkata and Ahmedabad by October. By the year
end(March 2016), Big basket aims to be present in 35 cities. Even after these launches, we expect
60% of our revenues coming from metros. 3. One hour express deliveries: For emergency items,
the company is introducing an option of one hour express delivery using a two-wheeler network
of Delyver, the start up acquired in January 2015. Big basket is setting up dark stores or small
warehouses with 1000-2000 SKUs, for the same which will get direct feed from the main
warehouses. Delyver co-founders are now a part of the management team of Big basket and the
rest of the team will be supporting the one hour express delivery feature.
RECOMMENDATIONS
In online terminal, investor can‟t get customized expert advice, whereas in offline the
broker gives suggestions according to investor‟s strategy.
Brokerage is high compared to offline. So brokerage can be reduced. Privacy is less due
to hacking scandals. So strong security must be provided.
The customer‟s occupation level availing the online trading are private compare to other
business and other group. The company has to target the other groups.
The customers predominantly investing in mutual fund compare to another financial
instrument.
The company has to emphasize and provide the awareness to the investor for another
financial instrument.
Awareness of stock market and online trading must be provided among customers whose
education qualifications are School and Professional Degree.
Promotional activities must be taken to promote bonds and shares.
The investors feel that the Demat charges are too high, so the SEBI can consider to
reduce the applicable securities transaction taxes which can improve substantial volume
and help small investors to trade and invest.
So lesser taxes and duties will as well attract more investments from mutual funds, large
corporate brokers and private equity funds.
To reduce delay in Demat of shares, processing time should be to the minimum so as the end
investors will be able to trade in a favourable market more faster and also delay on account
on information technology should be controlled for effective process of Demat
REFERENCES
Email address
Program Internship Semester
Overall GPA
Internship Preferences
Location Core Area Company/ institution
F-1 Preferance-1
Preferance-2
Preferance-3
Faculty mentor Signature: Date .
(Signature confirms that the student has attended the internship orientation and has met all paperwork and
process requirements to participate in the internship program, and has received approval from his/her Advisor)
Student Signature: Date .
(Signature confirms that the student agrees to the terms, conditions, and requirements of the Internship Program)
Dean Dean IIIC Dean Academic
Format No: GU/M-30/ Form-3
To
The General Manager (HR)
....................................... .......................................
Subject: REQUEST FOR 04/06 Weeks internship training of BBA/3 years Degree Programme,
We feel privileged to introduce Galgotias Educational Institutions (GEI) as one of the leading and
quality-driven educational groups in the Delhi-NCR Region.
Galgotias Educational Institutions consist of three institutions:
Galgotias College of Engineering & Technology (GCET)
Galgotias Institute of Management & Technology (GIMT)
Galgotias University (GU).
Further, we‟d like to furnish that as a part of the course curriculum, our students are required to
undergo a Summer Internship Program of 45 Days. The Internship Duration will be from June 1 till
July 15, 2021.
In this regard, we request you to kindly allow -Student name ---------------(Admission No.- ) student of
3 years full-time program of Business Administration (Batch-2019-22) to complete
Summer Internship in your esteemed organization by assigning project work pertinent to the stream
pursued.
Feedback on the student‟s progress and evaluation on the assigned „Project‟ will be highly
appreciated.
Yours sincerely,
Dean Industry Internship Interaction Cell
Format No: GU/M-30/ Form-4
(
Organisation/ Address) from / / 2019 to / / 2019. I hereby give an undertaking as
under.
I will strictly abide by all rules and regulations of the industry/Institute and Galgotias
University, Uttar Pradesh.
I shall be responsible for my conduct and own safety at the industry/Institute and
Galgotias University, Uttar Pradesh shall not be responsible for this in any manner.
I shall take care of my personal belongings. I shall not make any claim and no type of
any claim shall be made in my respect and on my behalf by anyone in respect of any
loss or injury to me (including fatal injury or death) or to the property of mine which
may suffer or occur during the above mentioned programme.
I will not act in any manner that defames the industry/Institute and Galgotias
University, Uttar Pradesh, in any manner whatsoever.
I will not claim the expenses over & above for stay & mess to the Industry/Institute or
to the University.
I will regardless of age, may not use or be in possession or under the influence of
alcohol or unauthorized
drugs on either the industry premises or place of stay (Hostel/ rental accommodation)
Violation of this regulation may result in suspension or expulsion from the university.
I will maintain confidentiality of work-related projects and personnel.
I will familiarize myself with, and adhere to, relevant organizational arrangements,
procedures, and functions.
I will understand what constitutes a permissible work absence and who to notify if
absent, be prompt with being on time to work and with assignments; give it my best
effort.
I will report changes in work schedule, supervision, or problems at the site to the
internship coordinator and industry supervisor.
If I feel victimized by a work-related incident, I will contact the internship coordinator
immediately.
I will dress appropriately for the work setting.
I will follow through on commitments.
I will not conduct personal business during work hours (i.e. e-mails, cell phones, and
internet).
I will keep a positive attitude, open mind; avoid jumping to conclusions; try to make
informed judgments.
I will communicate – keep people informed in a useful and succinct way, listen and
ask questions.
I will be fair, considerate, honest, trustworthy, and cooperative when dealing with co-
workers.
I will assert ideas in an appropriate and tactful manner, seek feedback from
supervisors, accept suggestions for corrective changes in behavior and attempt to
improve performance.
I will accept constructive criticism and continuously strive to improve performance,
seek to enhance professional effectiveness by improving skills and acquiring new
knowledge.
I am fully aware that no faculty coordinator is accompanying me and no coordinator
is appointed on behalf of the university at the place of internship.
Date Signature:
Place Name of Student:
Department Phone Number:
Semester Section-Roll No
I have allowed my ward (name as indicated above) for the above-mentioned
Internship and instructed him/her to take due precaution for safety and discipline as listed
above. I also undertake that the Industry/Institute or the university shall in no way be
responsible for any loss or injury to my ward during the programme.
Date: Signature
Place: Name of Parent:
Address: Mobile No:
Format No: GU/M-30/ Form-5
Evaluation: How will your work performance will be evaluated? By whom? When?
F-5 : One Page Report for Industry Training with Topic identification
Branch :
Name of student: Section-Roll No.:
Contact Number: Project Batch:
GU mail id-
Name of Company:
Company Address
Industry Person Name & Contact No Email ID
Designation
HR
supervisor:
Details of Industry:
Topic Identification
After completing training in a department, meet the Departmental Head to clarify your queries, etc.
and get his signature as indicated hereunder.
GU faculty visiting the training site may ask the students to show
their work and put their remarks on this page.
Date: Time of Arrival: Time of Departure:
Dept/Division: Project title:
Main Points of the day (including figures, if any)
How well were you able to accomplish the initial goals, tasks and new skills that were set
down in your learning contract? In what ways were you able to take a new direction or expand
beyond your contract? Why were some goals not accomplished adequately?
What has been the most significant accomplishment or satisfying moment of your
internship?
Considering your overall experience, how would you rate this internship? (Tick One)
Satisfactory Good Excellent
Give suggestions as to how your internship experience could have been improved.
Signature Date