BigBasket is a leading Indian online grocery delivery service founded in 2011, now owned by Tata Group, and has grown significantly in recent years, including a $150 million investment in 2019 and a 64.3% stake acquisition by Tata in 2021. The company focuses on customer service, offers a wide variety of products, and employs innovative marketing strategies such as celebrity endorsements and community group buying. Looking ahead, BigBasket aims to expand its operations, introduce express delivery services, and maintain its competitive edge in the grocery delivery market both in India and globally.

1. Presentedby:KomalSingh

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

4. 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

5. FOUNDERS
Hari Menon, V. S. Sudhakar, Vipul Parekh, Abhinay
Choudhari, V.S. Ramesh

6. •OWNER: TATA GROUP (68%)

7. 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.

8. • 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.

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

10. 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.

11. • 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.

12. MAJOR COMPETITORS

13. 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.

14. 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.

15. 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.

16. • 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

17. 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.

18. • 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.

20. 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.

21. • 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.

23. 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.

24. 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.

25. • 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.

26. • 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.

27. 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.

28. • 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!