Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Chapter
Particulars
No.
1
FINANCIAL STRENGTH
PAYMENT MODES
MARKETING STRATEGY
SWOT ANALYSIS
10
FACING CHALLENGES
11
12
FUTURE PROJECTIONS
Page
No.
2
4
5
7
9
14
16
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CHAPTER 1
OVERVIEW OF THE ORGANIZATION
Type
Private
Industry
Internet
Founded
Founder
2011
Hari Menon
V.S. Sudhakar
Vipul Parekh
Abhinay Choudhar
Headquarters
Area Served
India
Services
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 -
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 Baskets
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 companys 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 Baskets 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, Indias 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.
3.4 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 Baskets sales revenues.
Fresho Coffee is a service that delivers freshly ground, premium filter coffee on an
order-by-order basis. The brand offers a series of in-house coffee blends, namely
Dark Nectar, Smooth Caramel, Exotica, Morning Dew, and Noir Creme.
Aiming to capture a slice of the baked goods market, Fresho also offers freshly
baked bread, using a baked-to-order business model.
CHAPTER 4
FINANCIAL STRENGTH
4.1 Funding
As per the documents filed with the Registrar of Companies, the company has raised
a total fund of INR 695 crores from various investors including Bessemer Ventures,
Helion Partners and Sands Capital. The latest investment of INR 124 crores was
done by the US based Sands Capital.
Helion Ventures
Big Basket raised Rs 200 crore investment in a round led by Helion Ventures
and Zodius Capital .
Lion Rock Capital
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
Series C&A
Series C (Lead)
Series C
ICICI Venture
Series B
Zodius Capital
Series B
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.
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
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Big Basket is also planning to introduce private labels in categories like jams
and pickles, but that will be one year down the line.
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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.
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(l) Feedback
They always welcome feedback, both positive and negative from all their
customers. Customers can write to them at customerservice@Bigbasket.com
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
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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.
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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.
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CHAPTER 8
8.1 Marketing Strategy
a) Target Segment
Students
Families
Corporates & Professionals
Others i.e, Event planners, co-operatives
b) Promotion
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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
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1.
2.
3.
4.
5.
6.
(c) Opportunities
Expanding Overseas
Product extension
Strategic Alliances
Licensing
Capture Venture capitalists
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.
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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 9095 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 dont mind purchasing everything offline.
Another problem is of suggesting alternatives for stock-outs and at present.
Big Basket.coms platform doesnt have the intelligence to do so. For the time
being, its 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,
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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:
21
Employee Benefit Expense
Others
10
26
93
237
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 14-15:
CHAPTER 12
FUTURE PROJECTIONS
12.1 Future Projections
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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
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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.
References
"Big Basket raises Rs.200 Cr". Business Standard. Retrieved 15
September 2014.
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