BigBasket's Big Dreams
Case Code: BSTR581
Case Length: 17 Pages
Pub Date: 2019
Teaching Note: Available
Industry: Food & Beverage
Themes: Strategy Formulation, Five Forces, Business Models, Brand Strategy
Abstract Case Intro 1 Case Intro 2 Excerpts
The Customer Value Proposition
As of 2017, BigBasket was one of the leading online grocery stores in India. Its success was based primarily on three factors: outstanding customer service, wide range of products, and use of the latest technology to bring in new services with unique features.
BigBasket provided exceptional customer service to its customers; the customers were given same day delivery for products ordered daily on their platform. With 99.3% on time delivery and a 99.5% order fill rate, BigBasket created a high degree of customer loyalty. Its 'no questions asked' return policy earned it good feedback from consumers. .. ...
BigBasket provided everything on its platform from fresh foods like vegetables and fruits, milk and dairy products, foodgrains, cereals, and FMCG products along with kitchen appliances. There was a mix of third-party brands and in-house brands among the products with 36 percent of sales being contributed by the in-house brands. Menon, said, "From a customer standpoint, they (buyers) need range and a single place where they get as much as they need."..
The online retail market in India was huge with the revenues expected to touch Rs 1.8 trillion by FY 2020. In the online retail market, the online grocery market was expected to reach Rs 100 billion by FY 2020 with a CAGR of 65-70%, which made it the fastest growing segment. The online grocery market had many players vying for the top spot. As of 2018, BigBasket was leading the online grocery delivery segment with a market share of 37-40% followed by Grofers, Amazon...
The Road Ahead
With all its back-end processes in place, a robust team, and operations in 30 cities of India, BigBasket was concentrating on consolidation of its business rather than expansion. The company was looking forward to increasing its revenues and becoming a billion dollar (Rs 69.56 billion) entity by FY 2020. Menon said, "We are present in 30 cities, we are not expanding anymore. Our expansion is over. We are now going to consolidate and grow bigger in the cities we are in. So, no expansion of cities, no expansion of channels." ..
Exhibit I: Key Stakeholders in BigBasket
Exhibit II: The Funding Rounds of BigBasket from 2011 to 2019
Exhibit III: The Order Process at BigBasket
Exhibit IV: Product Groups at BigBasket
Exhibit V: Comparison of BigBasket and its Competitors
Exhibit VI: BigBasket's Revenue Growth over the Years from 2014 to 2019
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