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Big Basket's Market Strategy

Big Basket offers a wide range of 18,000 products through efficient targeted advertising campaigns. It differentiates itself by offering exotic fruits and vegetables not found in local stores. By partnering with retailers rather than maintaining inventory, Big Basket keeps fixed costs low. However, it faces high variable costs for delivery and storage. It also has minimum order amounts and risks order cancellations. While the online grocery market is growing quickly in India, Big Basket faces competition from other startups and established companies moving into the online grocery space.

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Chittesh Sachdeva
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422 views1 page

Big Basket's Market Strategy

Big Basket offers a wide range of 18,000 products through efficient targeted advertising campaigns. It differentiates itself by offering exotic fruits and vegetables not found in local stores. By partnering with retailers rather than maintaining inventory, Big Basket keeps fixed costs low. However, it faces high variable costs for delivery and storage. It also has minimum order amounts and risks order cancellations. While the online grocery market is growing quickly in India, Big Basket faces competition from other startups and established companies moving into the online grocery space.

Uploaded by

Chittesh Sachdeva
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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SW

STRENGTHS WEAKNESSES
High Variable Cost: Several delivery guys, delivery trucks,
Product Range: A wide range of 18000 products is offered by Big Basket. storage hubs need to be employed for perishable items, in
Discounts: Big Basket offers discounts and coupons on various certain situations high wastage occurs making the business
purchases. They also bundle products to maximize sales run at a high variable cost.
Target Group: They run efficient age and role specific advertisement Minimum order quantity/price compulsion: Big Basket
campaigns that targets their customers very carefully does not offer home-delivery below a certain set order
Differentiation in Products: Big Basket offers exotic fruits, vegetables price limit.
and imported groceries that are not easily available in the nearby retail Order Cancellations: Big basket depends on stores that
outlets. they have tied-up with to provide them the items. This
Low Fixed Cost business model: Most items that are offered by the Big sometimes tend in cancellation of orders if the stores do
Basket are perishable hence they depend on the retail stores they are not have that item with them.
coordinating with for the products. This means they have no inventory
cost and makes their business model more profitable. SWOT
Analysis of
Market: Indian retail market is valued at more than approx. $550 Big Basket Competition: It has small presence in terms of cities covered
million and grocery alone covers 60% of this share. Hence it’s a huge hence, it is getting a huge competition from other startups like
market Grofers, PepperTap, Nature’s Basket, Zop Now, Aaram Shop, Mera
Grocery Growth: India is the 6th largest grocery market in the world. Grocer, etc.
The online grocery market is growing with a growth rate of 19%. Customer Retention: It is very difficult to retain customers. They
Cross selling and Value Packaging – Cross selling is a major advantage would tend to move with the service provider that offers the most

OT
for Big basket as it can sell multiple products by product bundling and discounts.
suggesting them to the potential customers with certain discounts and Bigger Players: Bigger players in terms of financial backing and
incentives. presence are also entering this lucrative industry. Players like
Expansion: Many cities are still not covered by these startups and Big Amazon, Flipkart and Google have already entered.
Basket can target them and gain the first movers advantage. Smaller Players: Many other localized shops have picked up on this
trend and have started home delivery service to nearby customers
thereby killing groups of target customers across regions and cities.
OPPORTUNITIES
THREATS

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