bigbasket.pptx

About Company
Company History
Recent Changes
Major Competitors
Success
Market Strategy
Future Plans
BigBasket was founded by V. S. Sudhakar, Hari Menon, Vipul Parekh, Abhinay Choudhari and V. S. Ramesh in 2011.
Before the establishment of BigBasket, four of its five founders, excluding Abhinay, were part of a group of six behind India's first online retail store called Fabmart.com, which launched in 1999. Fabmart.com sold music CDs and ventured into the sale of books, toys, computers, jewelry, watches, and groceries. Poor internet penetration rates, rare use of online payment methods and the dot-com bubble burst in 2002 later led to the establishment of Fabmall, which was a chain of physical retail stores.
In March 2020, they acquired micro-delivery firm, DailyNinja. As of June 2020, it was reported that BigBasket had hit the annualized gross sale run rate of US$1 billion and began selling about 18,000 products from over 300,000 orders received daily.
In February 2021, the Tata Group acquired a 64.3% stake in BigBasket for around ₹9,500 crore (US$1.2 billion
As of 2022, BigBasket caters mainly to tier 3 and tier 4 towns with its community group buying approach, wherein users can create groups through messaging and social media platforms to buy products at reduced prices.

1. Presented by: Komal Singh

2. CONTENTS About Company Company History Recent Changes Major Competitors Success Market Strategy Future Plans

3. About Company : Trade name: Big Basket Type : Private Industry: Retail Founded: Dec 2011, 10 years ago Founders: Hari Menon, V . S. Sudhakar , Vipul Parekh, Abhinay Choudhari , V.S. Ramesh Headquarters: Fairway Business park, Embassy Golf link, challaghatta , Bengaluru Karnataka, India Area served: India Services: Grocery Delivery

4. Founders Hari Menon, V. S. Sudhakar , Vipul Parekh, Abhinay Choudhari , V.S. Ramesh

5. Owner: Tata Group (68%)

6. History BigBasket was founded by V. S. Sudhakar , Hari Menon, Vipul Parekh, Abhinay Choudhari and V. S. Ramesh in 2011. Before the establishment of BigBasket , four of its five founders, excluding Abhinay , were part of a group of six behind India's first online retail store called Fabmart.com, which launched in 1999. Fabmart.com sold music CDs and ventured into the sale of books, toys, computers, jewelry, watches, and groceries. Poor internet penetration rates, rare use of online payment methods and the dot-com bubble burst in 2002 later led to the establishment of Fabmall , which was a chain of physical retail stores.

7. Two years later, Fabmall merged with Trinethra Super Retail and the new entity had about 150 stores when it got acquired in 2006 by Aditya Birla Group, which rebranded it as the supermarket store chain More In March 2019, BigBasket raised  US$ 150 million in investment from  Mirae Asset, Alibaba Group  and  CDC Group  giving the company a valuation of over  US$ 1 billion .

8. INITIAL FIVE YEARS OF COMPANY’S GROWTH 2011-16

9. Recent Changes: In March 2020, they acquired micro-delivery firm, DailyNinja . As of June 2020, it was reported that BigBasket had hit the annualized gross sale run rate of US$1 billion and began selling about 18,000 products from over 300,000 orders received daily . In February 2021, the  Tata Group  acquired a 64.3% stake in BigBasket for around ₹9,500 crore (US$1.2  billion As of 2022, BigBasket caters mainly to tier 3 and tier 4 towns with its community group buying approach, wherein users can create groups through messaging and social media platforms to buy products at reduced prices .

10. Reports also emerged in the same year that BigBasket plans to roll out an express delivery service called BB Now to focus more on quick commerce, wherein goods are delivered within 15 to 30 minutes upon the placement of orders. In February 2022, BigBasket acquired Kerala based deep-tech startup Agrima Infotech for undisclosed amount.The acquisition was part of BigBasket's vision to revolutionize offline retail in India. BigBasket will utilize Agrima Infotech’s unique customer vision technology platform,  Psyight , at the self-checkout counters of the its offline retail stores.

11. MAJOR COMPETITORS

12. SUCCESS The mantra that has enabled big basket to become India’s largest online grocer is simply a maniacal focus on customer service. Our customer-facing metrics are best in class in the world – 99% on-time delivery, 98% fill rate, less than 1% returns, 95% 1st call issue resolution are some things that we are proud of and keep working to get even better on.

13. Big Basket Marketing Strategy & Marketing Mix: Marketing Strategy of Big Basket analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Big Basket marketing mix, help the brand succeed. Big Basket marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.

14. Big Basket Product Strategy: The product strategy and mix in Big Basket marketing strategy can be explained as follows: Big Basket is a leading Indian ecommerce website focusing on grocery items being delivered. The main product in its marketing mix is its website and app, which gives access to users to buy groceries and food online. Big Basket offers a variety of products ranging from grocery to dairy products, to staples to meat products. Following are the varieties of product categories it offers: Fruits & Vegetables – Fresh fruits, Fresh Vegetables, Cut fruits, Cut Vegetables, Exotic fruits & vegetables, Sprouts, Organic produce, Flowers.

15. Food grains, Oil & masala – Dals, pulses, Rice, Salt, Sugar, Organic Staples, Flour, Dry fruits Bakery & Dairy – Bakery snacks, gourmet breads, cakes, desserts, dairy Beverages – Tea & Coffee, Fruit Juices, Energy Drinks, Soft drinks Branded Foods – Breakfast Cereal, Ketchup, Pasta, Baby food etc. Beauty & Hygiene – Oral Care, Beauty, Grooming, Hygiene, Fragrance, Skincare Household – Utensils, Storage, Stationary, Car needs, Electricals etc. Gourmet – continental snacks and confectionaries Eggs & Meat, Baby Care etc

16. Big Basket Price/Pricing Strategy: Below is the pricing strategy in Big Basket marketing strategy: Big Basket is a leader in the online grocery delivery services. Big Basket is the first to venture into this sector and has many competitors currently. Even with all the competition, it continues to be the market leader and most popular amongst the customers. It tries to increase its margins by setting a nominal price of Rs.20 as a delivery charge for items ordered below Rs.1000. It also provides a nominal discount on the order of Rs.3000 or Rs.5000 and above to encourage households to buy their monthly groceries from Big Basket thus providing economies of scale. They mark up the prices of the groceries a little higher from the market prices so as to cover their high variable costs.

17. High variable costs are incurred due to wastage of perishable items, cost of transportation, cost of labor, transportation damage, cost of storing inventory etc. Although there’s a markup in the price it still tries to keep the prices competitive with the other players in the market.

18. Big Basket Place & Distribution Strategy: Following is the distribution strategy in the Big Basket marketing mix: Big Basket is spread over many parts of the country which include cities like Bangalore, Mumbai, Hyderabad, Pune, Chennai, Delhi-NCR, Madurai, Coimbatore, Mysore, Vijayawada-Guntur, Ahmedabad, and Nashik. Big Basket will soon be expanding their operations soon to other cities. The customers place their orders online according to their needs. While doing so, they choose the delivery timings and the mode of delivery.

19. It provides two types of deliveries: Standard and +Express delivery is done within two hours of placing the order and Standard is delivered on the next day. Since Big Basket follows an inventory model, it procures its goods from HUL, P&G and other big manufacturers, farmers and retail stores and stores it in the warehouse. Upon receiving the order, the delivery personnel picks it up from the warehouse and delivers the goods to the said person within the chosen time.

20. Big Basket Promotion & Advertising Strategy : The promotional and advertising strategy in the Big Basket marketing strategy is as follows: Big Basket has used many marketing and pricing strategies over the years to stay ahead in the business. The biggest marketing strategy they introduced was to name Shah Rukh Khan as their brand ambassador and launch TV, media and digital marketing campaigns which were aimed at gaining popularity and visibility amongst the masses, as celebrities tend to be very influential in the Indian set up. Big Basket provides offers periodically to its most frequent customers, heavy shoppers and also cash back in their digital wallets.

21. Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Big Basket People: With the scaling up of business, it has to constantly scale up the workforce to keep up with the operations since it is a very operation oriented business. The business works on the efficiency of the delivery guys who, if fail to delivery correctly or on time, and the customer service staff who, if fail in delivering optimal solutions, would lead to customer complaints and thus degrade the Big Basket brand amongst customers.

22. Process : When Big Basket started it used to follow a Just in time model where the delivery staff used to procure the items from the local retailers as and when the order is received. But with time it started to follow Inventory model. Now, the goods are procured in advance and stored in the warehouse. Whenever an order is received from the customer, it does the weighing, packaging and sends out the items for delivery on the customer-specified timing. The model of Big Basket is a hub and spoke model. It has a main warehouse in the city and many other distribution centers throughout the city where the goods are shipped for delivery. Currently, it has been focusing on implementing the hyper-local strategy where it has tie-ups with the local vendors to deliver goods within an hour or two.

23. Physical Evidence: Physical Evidence of Big Basket is seen from the way that we get the delivery of the goods, the quality service provided by the customer care executives, the warehouse storage, transportation services etc. Hence this covers the marketing mix of Big Basket.

24. Future Plans: Despite growing as well as they had, Big Basket still had a lot of tough competition in the forms of other startups like  LocalBanya , Sequoia backed PepperTap and SoftBank funded  Grofers . The time had come for the team to up its game by securing more than double the amount of funding that it got during the initial rounds, Big Basket crushed all its competition . The next few years saw Big Basket grow from just an idea to being present in 25 cities with a combination of 150 million and looking at the size of the growth, the founders decided the time had come to bring in a partner. By zeroing in on  Alibaba (China based e commerce platform,) the team worked on mapping a growth chart for the next two years.

25. Big Basket is not just a dream but a well thought out plan that attracted and made its presence felt in the larger cities and went on to grow in the smaller cities by on boarding Shah Rukh Khan as a brand ambassador. By investing money into getting warehouses and increasing the delivery output, Big Basket plans on not only retaining its post as the largest grocery delivery platform in India but all over the world as well!