INTRODUCTION: BigBasket is an Indian web-based basic food item conveyance administration. The organization basically conveys staple merchandise found in general stores, home fundamentals and food supplies to its clients. BigBasket was established in December 2011 and has its base camp in Bengaluru, India. Fabmart.com and Fabmall (1999–2004) BigBasket was established by V. S. Sudhakar, Hari Menon, Vipul Parekh, Abhinay Choudhari and V. S. Ramesh in 2011. Prior to the foundation of BigBasket, four of the five organizers, barring Abhinay, were important for a gathering of six behind India's first web-based retail location called Fabmart.com, which sent off in 1999. Fabmart.com sold music CDs and wandered into the offer of books, toys, PCs, gems, watches, and food. Helpless web entrance rates, uncommon utilization of online installment techniques and the website bubble burst in 2002 later prompted the foundation of Fabmall, which was a chain of actual retail locations. After two years, Fabmall converged with Trinethra Super Retail and the new substance had around 150 stores when it got gained in 2006 by Aditya Birla Group, which rebranded it as the store chain More. Establishment (2011–present) In 2011, they sent off India's first e-basic food item stage BigBasket after Abhinay Choudhari was roped in to turn into the fifth prime supporter. In March 2019, BigBasket brought US$150 million up in speculation from Mirae Asset, Alibaba Group and CDC Group providing the organization with a valuation of over US$1 billion. In March 2020, they obtained miniature conveyance firm, Daily Ninja. As of June 2020, it was accounted for that BigBasket had hit the annualized gross deal run pace of US$1 billion and started selling around 18,000 items from more than 300,000 orders got day by day. In February 2021, the Tata Group obtained a 64.3% stake in BigBasket for around ₹9,500 crore (US$1.3 billion). Starting at 2022, BigBasket provides food predominantly to level 3 and level 4 towns with its local gathering purchasing approach, wherein clients can make bunches through informing and web-based media stages to purchase items at marked down costs. Reports additionally arose around the same time that BigBasket plans to carry out an expedited shipment administration called BB Now to zero in additional on speedy business, wherein products are conveyed inside 15 to 30 minutes upon the position of requests. Advantages of Big Basket 1. Product Range: Big Basket has a massive product selection that includes over 18000 items. 2. Discounts: Big Basket provides substantial discounts on a wide range of products. They also use the product bundling technique to increase sales and provide customers with the best possible discounts. As a result, they are a profitable option for customers to purchase. 3. Convenience: Big Basket provides an alternative to the hassle of standing in mall lines or driving all the way to retail stores. They deliver the products right to your door and accept a variety of payment methods. Customers, particularly in large cities where life moves at a breakneck pace and it is difficult to reach them, can shop at any time of day. 4. Target Group: They have carefully chosen their target customers and have established a presence in metropolitan and tier-I cities. They have offices in Bangalore, Hyderabad, Mumbai, Pune, Chennai, Delhi, Mysore, Vadodara, Patna, Indore, and Vijaywada, among other places. They are currently available in approximately 25 cities. 5. Low Fixed Cost business model: Because the majority of the items offered by Big Basket are perishable, they rely on the retail stores with which they collaborate for the products. This means they have no inventory costs, which increases the profitability of their business model. Competitors Grofers: Grofers is the main competitor of Big Basket. It all started in 2013. Softbank is one of its backers. It differentiates itself from Bigbasket by providing more offers and products at lower prices. Unlike Big Baskets, it only operates in 13 cities. It has a much smaller consumer base and profitability than Big Basket. In comparison to Big Basket, the product selection at Grofers is a little more diverse. It is aimed at price-conscious consumers who are looking for better deals. Customers of Grofers shop there because of the low prices, whereas customers of Big Basket shop there because of the variety. The company's current strategy is to expand its private brands, open more offline locations, and cut costs. 2. Amazon: Amazon is ranked third in the list of big basket competitors, and it is one of the top e-commerce stores that operates both nationally and internationally. It has recently made its way into the Indian grocery market. It has over ten crore premium members, all of whom have become instant customers for its new venture. Amazon Fresh, Amazon's fresh vegetable and fruit marketplace, is now available in Bengaluru, Maharashtra, and Pune in select regions. This feature is set to be expanded to other cities as well. Its Amazon Pantry service, which sells grocery items such as ready meals, snacks, and drinks, is available in 110 Indian cities. It has a presence in 110 locations, a substantial capital base, a well-established supply chain, a wellknown brand, and a large consumer base. 3. Reliance Smart: Reliance Industries, an Indian conglomerate, has been considering entering the e-commerce market. Reliance smart/Fresh direct, its supermarket service branch, has begun in a few cities, including Maharashtra and Bengaluru. It is a retail company that relies on its customers. Its advantages include a dominant market position, a sizable capital base, and a sizable client base from other businesses. Its goal is to work with Indian Kirana retailers. Reliance will help Kirana retailers modernize by providing an elastic jio network, developing a feature that allows them to perform GST, and developing virtual assistants. Furthermore, reliance will benefit from receiving the commodities required for its e-commerce operation. Reliance's entry will be a significant mover in India's e-commerce market, putting Big Basket to the test. 4. Swiggy stores: The grocery delivery service venture, Swiggy which has worked with both online and offline businesses, delivers fruits, vegetables, pharmaceuticals, and other grocery goods. Its affiliates include Apollo Pharmacy, Zappfresh.com, Vicious, Le March, and others. Its marketing strategy is to deliver merchandise quickly from nearby stores. This service has been introduced in Gurugram, where 3500 stores are available for delivery. 5. Walmart’s Flipkart: "Supermart," Flipkart's grocery division, debuted in November 2017. The company's portfolio includes stables, FMCG items, and luxury brands. It is now available in five cities (Bengaluru, Chennai, Hyderabad, New Delhi, and Maharashtra). It has the potential to expand its operations throughout India. It has a well-established e-commerce platform, a large amount of capital, and a large retail client base. Challenges faced by BigBasket One of the most difficult obstacles for every business in India is persuading users to try the service first, given the high level of resistance. Following that, despite all other market criteria such as competition, local suppliers, and buying patterns, keep these customers. Also, because it was a one-of-a-kind business dealing with groceries, which had never been done before, it took time for customers to trust the brand and begin using its services. BigBasket's most difficult task was to provide service to consumers within the time frame provided. BigBasket's complications are compounded by the perishable nature of the product. Because there are so many participants in the e-grocery business, client happiness is the only way to stand out. Because of the nature of the product, the consumer is extremely reliant on fresh and timely deliveries, which might completely derail his or her day. An unhappy consumer will quickly migrate to another provider, affecting business and revenue. The limited window between the order and the delivery time was another concern for BigBasket. This means that shipments have a very little planning window, which is extremely difficult to manage using manual planning techniques. According to media sources, BigBasket's system crashed due to an influx of orders placed during the country's lockdown due to a unique coronavirus. Due to the ongoing closure, many citizens are ordering ration supplies via digital networks. According to the company, BigBasket has experienced an unusual rush in orders and traffic over the last few days, putting a strain on its technical systems. As a result, according to media reports, BigBasket's website and app have been periodically failing to load for some users. Following the crash, the company opted to restrict service access to just existing clients. "We are currently witnessing exceptional demand," BigBasket told the reporters. As a result, we've limited access to our website to just existing clients. Please come back in a few hours and try again." The company also stated that its employees are trying to resolve the issue so consumers may continue to place orders as usual. Despite its rapid growth, BigBasket faces stiff competition from Sequoia-backed Pepper Tap and SoftBank-backed Grofers in the industry. BigBasket's main competitors include Freshtohome, Amazon, Reliance Fresh, Swiggy, Zomato. Despite the fact that these players are gaining a strong market position over time, the company tends to stay fit and fine and win the market thanks to its vast and growing consumer base. BigBasket is now twice as strong under Tata's leadership. Role of Digital Marketing in BigBasket After BigBasket, grocery shopping will never be the same. It was launched in 2011 as an online grocery and food distributor from India. Whether or not you employ BigBasket's services, you have to agree that the work they've done for the fast-moving consumer goods retail sector has been game-changing. Yash Arora and Pratik Sasodia, two IIDE students, evaluated BigBasket's brand identity and business model and proposed a digital marketing approach that they believe would considerably help the company. Search engine optimization refers to the use of specific keywords to guarantee that a brand's website receives the most traffic possible. These are the keywords that their target customers are searching for the most on Google. If a website can optimize itself based on search engine terms, it is almost likely that it will be able to reach the most number of people who are interested. Online grocery shopping, grocery online, online supermarket, grocery shopping online, big basket Pune, online grocery store, and dry fruit online are some of the most popular BigBasket keywords. This implies that BigBasket's results will be the first to appear when someone searches for these terms online. Best food brands online, organic fruit delivery, online supermarket, and best homecare items are some of the proposed bid terms for BigBasket. This assures that when someone searches for the terms online, BigBasket's website will come up as one of the first results. This makes the website more accessible to consumers trying to shop for the products mentioned online, which is the demographic BigBasket wants to reach out to the most. BigBasket's digital marketing would be considerably boosted as a result of this. Social media is one of the most important components in the success of any business these days, especially e-commerce enterprises. And BigBasket has already figured it out after only 7 years. They have 170k Facebook likes, 4k Instagram followers, 23k Twitter followers, and 1.5k YouTube subscribers. Some social media campaigns they can run to grow their following include #GharLeAoBigBasket on Facebook, where the company posts creatives with captions that show their fans how BigBasket can help them in specific scenarios. "Can you grab me some fruits and vegetables?" Mom would ask. "Mom, why don't you order it from BigBasket?" says the son. You'll also save a lot of money!" This allows BigBasket's social media followers to comprehend the influence the brand's services can have on their life. #DetoxWithBB is another social media campaign they can follow. This will primarily be done on Instagram, where BigBasket can share health suggestions in the form of photos of detoxifying meals, thereby assisting their followers in achieving a healthier diet. For example, an apple with the caption "Its fibre pectin aids in getting rid of accumulated up metals and food additives." This ensures that health-conscious people may follow BigBasket's Instagram page for beneficial material and eventually shop from the brand due to online discounts and other perks they learn about through social media. Trusted Company like Quora, Mouth Shut, Google Play Store, and Yahoo Answers are a few online venues that could be useful for BigBasket's Online Reputation Management (ORM). Customers can use these platforms to share their experiences with BigBasket's services and thereby help spread the word! 'Would you buy your fruits and vegetables online?' and other similar questions are frequently asked on platforms like Quora and Yahoo Answers. It must be ensured that BigBasket is mentioned in responses to all of these queries on the aforementioned channels! This enhances the likelihood that the Quora topic with BigBasket as the solution will be the top answer when someone searches for something relevant! Collaboration with social media influencers to promote your company is known as Influencer marketing. Influencers are a great way to contact your target audience and expand your brand's reach because they have a significant social media following. BigBasket could run influencer campaigns in which it approaches influencers and asks them to promote their brand on social media. For example, Being Momma, a 57k-follower middleaged female influencer, can mention BigBasket when discussing health and baby products. By cooperating with BigBasket on his YouTube channel, Beer Biceps, a male bodybuilding influencer with 675k subscribers, could help spread the word about the brand. These will entice the influencer's followers to look into BigBasket and possibly give it a try! SERVICE INNOVATION Over the course of a few years, big basket has grown to become one of India's largest supermarkets. Having this app on your device allows you to do your grocery shopping from the comfort of your own couch. The e-grocer relieves clients of the need to physically visit grocery stores, saving them time and effort. The story behind big basket's success, as described by Your Tech Story, demonstrates a great level of passion and faith. The internet business in India was created in 1999 by Mr. V.S. Sudhakar, Mr. Vipul Parekh, Mr. Hari Menon, Mr. V.S. Naresh, and Mr. Abhinay Choudhari. Fabmart.com was the company's original name. In 2001, the company created Fabmart, which included an online grocery business. The founders chose to establish a physical retail chain called Fabmall, which was a component of a food chain supermarket in South India, when it became a success. Despite the fact that the company was sold to the Aditya Birla Group in 2006 and rebranded as "More," the founders' love for online groceries maintained, as a consequence of which they were able to continue operating. With smartphone usage at an all-time high, the timing of this launch was extremely opportune. People were increasingly willing to purchase products online, which Big basket took advantage of well. The company received its first round of funding from Ascent Capital, for a total of $10 million, after which they sought to expand their scope. The firm's most pressing concern was maintaining its business model in the face of adversity, for which they spent five years conducting research and finding that the most successful strategy for safeguarding their position was to provide individualized services to their consumers. E-grocers have been going all out to engage modern shoppers, being aided in this mission by new-age technologies. Big basket is making use of Artificial Intelligence, Machine Learning, and analytics to simplify logistics and boost customer experience. "We're in the e-commerce sector, and data is the new gasoline." We use data-driven capabilities from a variety of sources. To construct a range of algorithms, data is collected from transactions, consumer preferences, shopping habits, and so on (statistical algorithm, Deep Learning algorithm, and ML algorithm). "All of these algorithms are utilised for a variety of purposes." - Big Basket's Head of Analytics, Subramanian M S Below are a couple of crucial technologies being leveraged by the E-grocer: How Big Basket uses Analytics A couple of the analytics tools that Big basket leverages are tableau which is leveraged for converting complex data to simplified versions and Power BI which is leveraged for interpreting data as well as for sharing insights on it. Data analytics is playing a very pivotal role in boosting Big basket’s market. Let’s check out how Big basket is taking advantage of these tools. 1. Extracting essential information from the unstructured data The Big basket team has to deal with a huge section of data that is largely unstructured. This data is obtained from studying the customer’s online behaviours and interpreting their transaction records. Hence customer analytics helps the company to comprehend the correlation between delivery matrix and customer loyalty. 2. Enabling personalization through analytics The analytics team aims at enhancing and personalizing customer experience by facilitating them with all kinds of solutions. It also helps in detecting customers as well as boosting engagements such as communications as well as offers. The analytics aids in studying customer behaviour so that the company can design its personalization according to it. 3. Reducing inventory from the flux through predictive analytics Predictive analytics helps to make sure that the firm is neither out of stock nor overstocked. This approach implies forecasting the demand, that will aid the supply chain team in their planning abilities such as the drivers, vans, CEEs, and equipment that are employed for various facilities. It also aids in examining the array of orders and volumes so that the team of the supply chain can strategize accordingly. Big basket also employs applications that are powered by IoT ensuring the quality as well as the freshness of products like fruits, vegetables, or other grocery items. While delivering fresh items from the warehouse to the doorsteps of the customer various issues need to be conquered which include managing the right temperature of the product or dividing hot, frozen, or cold items. The IoT application aids in interpreting the information about the item to ensure that it is packed in the correct container and to help in balancing the varying temperatures of each individual item throughout the journey, from the warehouse to the final delivery place. Artificial Intelligence and Machine Learning are yet another technology that Big basket has adopted. The firm has invested in Artificial Intelligence and Deep Learning for coming up with smart kiosks which are also termed as “BB instant” as clarified by Subramanium in an interview. These kiosks are basically smart machines connected via an app. The customer visits the machine and places their order via the app. The customer can then walk away immediately with the cart items, while the billing is automated from a cashless domain, in which the customer receives the bill through the app with multiple options for payment available. The AI system is powered with in-built techniques for recognition, that detect the purchased products by employing image scanning principles through advanced deep learning solutions. The system interprets and gives the right product to the customer and also handles the procedure of availability as well as billing. When it comes to Machine Learning, Big basket relies on it as well as on analytics for guaranteeing prompt delivery. The delivery process is now initiated by detecting the common routes and status of vehicles in order to pack multiple order sets. In order to initiate a flawless, prompt delivery, the team gains insights regarding the best route, the number of vehicles required on a particular route, and the present traffic situations from a variety of data sources. Through informative data channels, the Machine Learning driven model interprets real-time scenarios as well as the requirements of customers. The model aids in handling multi-level track of pickers, reverse pickers, scheduled deliveries, etc. Hyper-personalization is another approach that aids in tracing the purchasing pattern. It offers the capacity to facilitate management right at the individual level. The company’s well-known Smart basket feature employs Artificial Intelligence and algorithms to comprehend the customer’s preference towards buying certain items, which in turn enhances the overall purchasing experience of the customer. The biggest challenge faced by the startup was to get the users to adopt the service initially with the resistance level being largely higher. This challenge was followed by the challenge of retaining these customers while battling contradicting factors in the market such as competitors, local vendors, and purchasing habits. Prevailing as a startup for grocery items at a time when traditional stores were not that outdated was definitely not an easy task and it took Big basket quite some time to gain the trust of its target market and get its potential consumers to start adopting its services. The start up’s market has witnessed cut-throat competition in spite of the rising rate. Although these professionals are gaining a strong market position over time. The company proceeds to be successful in the market with a good customer base. "Tech is a vital facilitator, but the supply chain plays a huge role," says CEO Hari Menon to Tech in Asia. Although Technology is being used for tracking orders, updating delivery details, managing inventory batches, and maintaining the website and its apps, yet as of now it does not find much paramount adoption when it comes to its distribution centres. In terms of its future plans, Big basket has emphasized on a higher degree of investment in the field of IoT as well as Artificial Intelligence-driven innovations in the company. Conclusion and strategies Bigbasket can adopt Strategies to adopt Bigbasket can adopt the following strategies to compete in the market: Subscription service Under this, the company can start a subscription service (like Amazon Prime), that will help in creating a large and permanent customer base. Once users subscribe to the service, it is highly likely that they buy from Bigbasket itself as these customers would get special services for subscribing. It can be free and quick delivery, early access to promotional deals etc. Subscription service has been very successful with e-commerce companies and there is high chance that it will work for Bigbasket as well. Happy Days Happy days, is a marketing technique used currently by Grofers. Under this, the company declares a few days of month, say Oct 25 to Oct 29 as Happy days. In these days, customers would get special discounts and offers on products. This is like Amazon’s ‘Great Indian festival’ and Flipkart ‘Big billion days. There is high probability that this technique would for Bigbasket, the same way it worked with e-commerce companies. This also helps in repurchase of customers. Expanding the Product catalogue Bigbasket can focus on expanding the range of products offered. Grocery is a good business for Bigbasket, but to stand in this hypercompetitive market, it should bring in new products to be offered in its catalogue. New product offerings mean catering to broader range of customer needs. Expand to New cities Bigbasket, no doubt is trying hard to serve the best in most metros and Tier 2 cities. It can also work on expanding to newer cities. With Amazon Pantry, backed by its cash rich parent Amazon, now entering the market of Grocery, it is now important for Bigbasket to fine tune its logistics and improve efficiency. Continuously improving from buyers’ feedback Bigbasket should be active enough it taking buyers feedback, it can be from Bigbasket App or website and should seriously work on improving where its lagging. This is a great source of information where Bigbasket can understand where its good at and where it must improve. Ex: If majority of customers are complaining on delivery, then Bigbasket got a queue that it has work on logistics. Working on its IT, CRM strategies At present, majority of businesses have a strategic IT team to take care of Information Management. IT has become a key enabler in today’s business. Bigbasket should work on integrating all of IT, be it lifecycle management, change management etc. An integrated platform provides a much better holistic view of business. It can also focus on enhancing customer relations through much effective usage of Customer Relationship Management (CRM) tools.
