E-BUSINESS

CIA1

Submitted To: Prof. Papri Ray

Institute of Management
Christ University, Bengaluru.

Submitted By: Name: - Dev Kakkar

Juhi Sharma
Aditya Kiran
Jegadesh Prabhu
Sheetal Talwar

Life is changing very fast. People used to be more traditional but now they have become more professionals.
They are ready to spent money in order to live a convenient life. Internet has made very drastic change in ones
life. People working in MNCs have no time to go and shop for their basic needs. Taking this as an opportunity
6 entrepreneurs started e commerce business which is also known as bigbasket.com. It is portal through
which you as customer can buy all the basic goods which are required in day to day activities.
BigBasket.com (Innovative Retail Concepts Private Limited) is Indias largest online food and grocery
store. With over 10,000 products and over a 1000 brands in our catalogue you will find everything you are
looking for. Right from fresh Fruits and Vegetables, Rice and Dals, Spices and Seasonings to Packaged
products, Beverages, Personal care products, Meats we have it all. They have a wide range of options in
every category, exclusively handpicked to help the customers find the best quality available at the lowest
prices. We need to select a time slot for delivery and order will be delivered right to your doorstep, anywhere in
Bangalore, Mumbai & Hyderabad. You can pay online using your debit / credit card or by cash / sodexo on
delivery. They guarantee on time delivery, and the best quality!
HISTORY :In December 2011, V.S Sudhakar, Hari Menon, Vipul Parekh and V.S Ramesh launched BigBasket in
Bangalore. The idea was seeded by serial entrepreneurs and angel investors Krishnan and Meena Ganesh. This
wasn't the founder team's first e-commerce venture. In 1999-2000, it had started a company called Fabmart.
The Bangalore-based firm sold various products online - music, books, groceries, etc. However, given the low
internet penetration in India at that time, the venture failed. In 2003, Fabmart was rebranded as Fabmall and
launched as an offline grocery store. Subsequently, it was acquired by the Aditya Birla group and is now called
More. The online entity was acquired and merged with US-based Indiaplaza. Since 2012, BigBasket has been
present in Hyderabad and Mumbai. Within a year, the company started services in Delhi and Chennai as well.
Currently, BigBasket has a 600-strong team across three cities. BigBasket has started delivering perishable
items too.Currently the cities they serve in are : Bangalore
Hyderabad
Mumbai
Pune
Chennai
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 Delhi-Noida
Mysore
Madurai
Coimbatore
Vijayawada-Guntur
Kolkata
Ahmedabad-Gandhinagar
Nashik
Lucknow-Kanpur
Gurgaon
Vadodara
Visakhapatnam
Surat
Nagpur
Patna
Indore
Chandigarh Tricity
Jaipur
Bhopal
Ludhiana

WORKING MODEL :The company has two working models . When they started the business they had the just-in-time model. This
means that not just perishables but everything they bring against an order. Because you dont yet have the
volumes for suppliers to supply in bulk and for you to stock in a warehouse. So you consolidate orders for the
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day, go and buy the products and deliver. When you reach a particular volume, you move from the just-in-time
model to what is called the warehouse stocking model. That is where they are as far as Bangalore is concerned.
They now buy products directly from the supplies, like Unilever and Procter & Gamble, they buy from farmers
and mills and stock the products in the warehouse. They stock a certain number of days of sales, depending on
the product and sales. They are able to set initial inventory levels and then decide what the re-ordering levels
are. So it is all completely automated. They buy directly from the manufacturers or suppliers and add a margin
to the product price before selling. At a mature stage, the blender margin stands at 20-25 per cent.
The company's unique selling point lies in its range of products, both in fresh and frozen categories. They
have significant experience in own-branded products and that helps keep a check on quality. Their delivery
track record is strong - 99.99 per cent orders are delivered on time, else they refund 10 per cent of the order
cost to the customer's account. They also track the delivery and update the customer of the status. Also, if the
company cannot fill an item, it refunds one and a halftimes the item value back to the customer. If a product is
returned, the money is refunded.

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Infrastructure:It is not necessarily very infrastructure-heavy. One of the things that they invest heavily in is technology. The
only area where they have infrastructure is essentially is in warehouses. In the warehouse they have equipment
that helps us pick products against an order. It is all completely automated. They use handheld devices that
allows the picker to choose the right product. On the delivery side they have vehicles but again these are not
infrastructure-heavy because we lease them or you can outsource the entire fleet. BigBasket has a warehouse
each in Bangalore, Hyderabad and Mumbai, as well as hubs (where delivery vehicles wait). Goods are sent to
hubs and from there, to customers. The routing is done automatically and the vehicles are GPS-tracked. Each
city is split into zones and each zone has a hub.

Comparison with various other players :-

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Delivery :-

They operate in four slots:

S1 7am to 9am

S2 11am to 1pm

S3 3pm to 5pm

S4 7pm to 10 pm

They check their orders at 6 AM and 1 PM every day. Orders placed until then are fit into the slots
according to the customers convenient time. They have 3 Hubs in Yashwanthpur, Bannerghatta Road and
Whitefiel
d from where the orders are displaced to the customers.

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Order Cutoff time:

In order to facilitate timely picking and delivery of all orders we follow a cutoff time for each delivery slot.
To be able to pick a delivery slot the order needs to be placed before the cut-off time for that particular delivery
slot. The cut-off times for delivery slots are given below:
Delivery Slot

Cut off time

7 am - 9:30 am

1 pm the previous
day

10 am - 12:30 pm

1 pm the previous
day

4:30 pm - 7 pm

6 am the same day

7:30 pm - 10 pm

6 am the same day

For e.g. Customers placing orders after the cut-off time of 6 am on any day would not be able to book for
delivery the same day in the 7-9:30 pm slot.

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KEY PLAYERS IN INDIAN E-GROCERY MARKET :-

PRODUCT PORTFOLIO :-

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ONLINE GROCERY SHOPPING INDUSTRY INDIA :The online grocery market in India has gained a lot of traction over the past few months with the emergence of
a host of first generation start-ups and already established traditional grocery chains expanding to the digital
platform. According to a recently released report, India's online grocery market is estimated to grow at a
compounded annual growth rate of 62 per cent between 2016-2022. While the market on the online platform is
still in its nascent stage, the overall grocery market in the country is already worth over US$ 360 billion (Rs
21,60,000 crore) making India is the sixth largest grocery market in the world and is expected to touch US$ 1
trillion by 2020. The online sales are expected to reach around 2 per cent of the overall grocery market by
2020, creating a potential market size of around US$ 10 billion (Rs 60,000 crore) following the surge in
number of players operating in the industry.
In fact, this niche segment is expected to contribute 10-20 per cent of overall e-commerce jobs, with each
warehouse of online grocery companies employing around 50 to 100 workers depending on the scale of
operations. On one hand, start-ups like BigBasket, ZopNow, Localbanya, Grofers, PepperTap, and Jugnoo are
making a dent in the marketplace by introducing a variety of new supply chain networks including hybrid asset
light and hyperlocal models, on the other hand, names like Godrejs Nature Basket has already expanded to the
digital platform to catch up with the changing consumer behaviour.
GREEN BASKET :8 | Page

Being green is part of the culture at bigbasket. An offline grocery store requires stocks to move from a regional
distribution centre to the individual stores, and then someone from each family has to make multiple trips to
the store to do their shopping.

Supermarkets consume a lot of energy for lighting, air-conditioning and powering their refrigerators and
freezers. We bypass these, bringing products to you straight from the wholesaler to your doorstep which cuts
down on a lot of carbon emissions generated by the traditional supply chain and also reduces the number of
cars on our roads.

We minimize the use paper and plastic bags while delivering our products, all products are delivered in crates
which are taken back and reused. Our fruit and vegetable trays are recyclable and we request our customers to
return them to us so that we can reuse them.
Delivery Charges:
They have very nominal charges for the delivery of the orders and the delivery charge is based on the order
value as per the table below:
Order value
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Delivery charges

Rs. 1000 and more Free Delivery

Rs. 20 (Rs. 25 in
Upto Rs. 1000
Mumbai)
M-COMMERCE AND SOCIAL MEDIA MARKETING :-

Social marketinga new marketing toolcan be a great asset if used properly. The beneficial effects of social
marketing for a business can be tremendous, but one must remember that it must be used in the most efficient
possible way.
Social marketing allows businesses and web sites to gain popularity over the Internet by using different types
of social media available, such as blogs, video and photo sharing sites, social networking sites and social
bookmarking web sites.
Advantages of social marketing that make it a vital tool to any marketing campaign:
1. Promotes consumption of socially desirable products.
2. Promotes health consciousness in people and helps them adopt a healthier lifestyle.
3. It helps in green marketing initiatives.
4. It helps to eradicate social evils that affect the society and quality of life.
5. Social marketing is one of the cheapest ways of marketing.
6. One of the best advantages of social marketing is that anyone can take advantage of it, even from their own
home.

SMART ORDERING :-

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BIG BASKET OFFERS

BASICALLY CATEGORIZED INTO : DISCOUNTS
PROMOTIONS
BUNDLE PACKS

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PAYMENT OPTIONS :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)

FINANCIAL STATS :- (FY-14-15)

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COMPETITOR ANALYSIS (FINANCE)

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SUCCESS FACTORS :Today Bigbasket.com is one of the leading online grocers in India. The company bases its success on the
three pillars namely
exceptional customer focus ( Bigbasket offers same-day delivery across a city, 99.3% on time delivery,
99.5% order fill rate and a no questions asked customer return policy, all of which has contributed to
high customer loyalty and excellent customer feedback. On top of it all, BigBasket compensates a
customer every time it is not able to deliver on its promise thus ensuring that there is consistent focus on
raising the bar higher.)

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 wide range and variety of products ( They have more than 40% of their sales coming through their
own brands.BigBasket has further innovated by offering products such as cut fruits and vegetables, a
range of recipe mixes and have recently launched their own bakery in Bangalore that delivers bread
baked to order )
continuous innovation with the help of technology(BigBasket has both android and iOS mobile apps
which allow customers to order groceries on the go. Features such as Smart-basket predicts what a
customer needs more often and reduces the time-to-order to within 5 minutes.)

BARRIERS :15 | P a g e

GROCERY SHOPPING IS A SOCIAL EXPERIENCE

PURCHASING PRODUCE IS A TACTILE PROCESS
FRESHNESS MATTERS
FISH AND MEAT ARE BEST PURCHASED BY SIGHT
STILL TECHNOLOGICAL UPGRADE REQUIRED
TIME DELIVERY WINDOWS CAN BE DISLIKED BY CUSTOMERS
SUPERMARKETS ARE MUCH MORE THAN JUST FOOD
GROCERY SHOPPERS DO NOT USE RECURRING LIST

COMPETITIVE EDGE: One reason why no e-grocery startup other than BigBasket has managed to raise money is that margins
are wafer-thin. "At a gross margin of 12 to 15 per cent, profitability cannot be more than two per cent.
The gross margin on fast-moving consumer goods is as low as 14 per cent. On fruit and vegetables, it is
around 16 per cent but shelf life is shorter. This is why many sites, including MyGrahak and FamilyKart,
stay away from fresh produce. BigBasket, however has no problem. Fruit and vegetables are procured
only on order, except for those with a longer shelf life, such as potatoes and onions.This reduces loss of
stock by three to four per cent
One of the biggest rivals of e-grocers is the local kirana store, which offers home delivery in many cities,
often within an hour. But kirana shops lack the cost advantages to offer customers the best price, and
cannot stock a wide range of products. BigBasket tries to consolidate orders in a locality and reach the
customer in eight to 24 hoursPeople can wait for books, but not groceries.
Sell inhouse brands, which improves margins by 20 to 25 per cent on staples.They sell 7,000 SKUs, of
which 300 are our own branded staples. SKU or stockkeeping unit is the retail term for product
identification code.

MAJOR RISK :16 | P a g e

 Perhaps the biggest threat to egrocers is giants such as the Future Group, which is testing a hybrid model
to sell groceries online and in brick-and-mortar stores.They are doing pilots in 30 stores in Mumbai to
check the feasibility of shipping online orders from the stores.

AMAZON FRESH entering into the Indian grocery market

RECOMMENDATIONS : Introduce Loyalty Programmes

Email should be sent to a customer once in a week to promote there weekly offers just like the Big Bazar
which says Sabse Sasta Din. Because if we send email daily it will turn out to be irritating for
consumer and they might not take it seriously and throw it into trash . So, once in a week or twice in
month with some strong attractive offer should be send to catch hold of consumers attention .
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 Can offer special foods items of different places to be available on Big Basket Website. E.g. Ratlam ka
Ratlami sev, Pune ki Bhakarwari, Mathura ke Pede , Agra ke Pethe & etc.
Search should be made possible in different languages too.
Bundling of products should be made easier
Ballet Box in society with 800-1000 households System Of Ballet Box Can Be Put Outside The Society
With Household 800-1000 Because While Going For Work People Can Drop Their List With Flat No.
And Time Mentioned. This Will Increase Consumer Interaction And By Seeing This Few More May
Also Start Using This Ballet Box/Drop Box.
Get wider range of products.In short increase the depth not width.
Never go out of stock for product as it may decrease the customer repetition.
Go for cash back schemes on a frequent basis.
Share consumer experience on their website.
Focus on bulk supply of the products.

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