Hari Menon, one of the 5 founders who established BigBasket, was 50 when he launched the venture. Before that, he managed e-commerce for Fabmart, a sleep products company which they later sold to the Aditya Birla Group.
BigBasket, launched in 2011, was a bold step into uncharted territory: delivering fresh produce, staples, and household essentials straight to your doorstep, making grocery shopping as convenient click of a button.
Did you know?
BigBasket was the first online grocery service in India, currently holding a 10-15% market share with their adoption of 10-minute delivery. The brand is now a TATA enterprise.
Identifying the Gap: The Market Opportunity
Before BigBasket arrived, grocery shopping in India was, let’s face it, a bit of a chore. People had to visit crowded local markets or supermarkets, which came with its own set of challenges:
- Time-consuming:
Whether you were a working professional or a homemaker, shopping for groceries often ate into precious time.
- Limited variety:
Many local stores struggled to stock a wide range of products, often forcing customers to visit multiple places.
- Lack of convenience:
Lugging heavy grocery bags in crowded streets or struggling to find parking spaces wasn’t exactly a fun weekend plan.
This was the reality for most Indian households, and BigBasket spotted a huge opportunity here.
BigBasket’s pitch was simple yet powerful:
- Convenience:
They offered you the option to shop anytime, anywhere, and get your groceries delivered to your doorstep.
- Freshness:
Assurance of high-quality fresh produce, with 85% of the produce sourced directly from farmers, according to a 2018 report.
- Variety:
A one-stop shop with everything from staples to exotic ingredients, catering to diverse customer needs. For this, they partnered with more than 2,000 kirana stores.
BigBasket didn’t just create an online store; they built an ecosystem that understood what Indian shoppers wanted. And with their finger on the pulse of consumer needs, they turned a chore into an effortless experience, setting the stage for a grocery revolution in India.
Target Audience
Segmentation
- Urban Households:
Families living in bustling cities who needed convenience in their busy lives.
- Working Professionals:
Those with packed schedules and no time to visit crowded grocery stores.
- Tech-savvy Millennials:
Early adopters who loved the idea of shopping with a click and getting doorstep delivery.
Targeting
BigBasket focused on serving middle- and upper-middle-class families in metro cities like Bangalore, Mumbai, and Delhi. These families had:
- Disposable income to spend on convenience.
- Smartphones and internet access to shop online.
- A need for reliable, high-quality grocery services.
This strategic targeting allowed BigBasket to grow steadily without spreading themselves too thin.
Positioning
BigBasket was the first one in the game and they had to create a market of online grocery shopping in India from scratch. So, they:
- Built trust by emphasizing reliability.
- Highlighted convenience and variety.
- Created a clear image of BigBasket as the go-to solution for grocery shopping.
With their marketing, they majorly focused on building trust and roped in Shah Rukh Khan, a national favorite, for the ad films.
Marketing Mix of BigBasket
Product:
At the heart of BigBasket’s success is its product range. They understood that grocery shopping isn’t a one-size-fits-all deal. People have different preferences, and BigBasket catered to them all with a mix of essentials and specialties.
- Wide Product Range:
From daily staples like rice and pulses to fresh fruits, vegetables, and even imported goods, BigBasket ensured customers never had to visit another store.
- Private Labels for Affordability:
- Recognizing the growing demand for budget-friendly options, BigBasket introduced its private labels, like:
- Fresho:
Fresh fruits, vegetables, dairy, and meat with a focus on quality.
- Tasties:
Affordable snacks and packaged goods for everyday indulgences.
These private labels not only offered competitive pricing but also boosted BigBasket’s profit margins.
They also use AI-Powered Features for:
- Inventory Management:
Reducing waste and ensuring fresh stock availability.
- Personalized Recommendations:
Showing customers exactly what they might need, based on past purchases.
- Dynamic Pricing:
Adjusting prices to stay competitive without sacrificing margins.
Price:
BigBasket struck a fine balance between affordability and quality by employing smart pricing strategies:
- Competitive Pricing:
Bulk procurement directly from farmers and suppliers helped BigBasket offer competitive rates, ensuring they stayed ahead of local markets.
- Frequent Offers and Discounts:
- BigBasket kept its customers hooked with regular deals:
- Bundle Offers:
“Buy 1 Get 1 Free” and combo deals encouraged bigger orders.
- Seasonal Discounts:
Flash sales during festivals and harvest seasons kept the excitement alive.
- Loyalty Programs:
With initiatives like BBStar Membership, customers enjoyed additional discounts and free delivery, increasing their loyalty to the platform.
These strategies ensured that BigBasket appealed to both cost-sensitive customers and those willing to pay a premium for convenience.
Place:
BigBasket is available in 27 cities across India and manages delives through:
- Hyper-Local Delivery Model:
BigBasket built a network of micro-warehouses in every city it operated in, ensuring faster delivery and fresher goods.
- Expansion to Tier-II and Tier-III Cities:
While it started in metro cities, BigBasket’s ex pansion into smaller cities helped them tap into a growing market. With rising smartphone penetration, even customers in smaller towns could now order online.
- Flexible Delivery Slots:
Catering to modern schedules, BigBasket allowed customers to pick time slots that worked for them, adding a layer of convenience.
It currently has 400 dark stores across the country which it aims to increase to 700 by 2025 (source), which will support its complete pivot into quick commerce.
Promotion:
BigBasket knew it needed to be everywhere its customers were, so it adopted an omni-channel marketing strategy that blended traditional and digital campaigns.
One interesting observation here is that BigBasket continuously evolved according to shifting consumer preferences and created ad films to amplify it to the audience.
Initially, the TV and radio ads captured the attention of families and positioned BigBasket as an affordable solution.
Then, it moved to delivering between 15-30 mins, for which it created ads like this:
And now, with its availability in 10-minutes, they tapped into the cricket fandom in India, especially with Virat Kohli, by creating this ad:
Not only this, they are also active on social media. Currently, bigbasketcom has 236K followers on Instagram. To resonate with Gen Z and millennials, they include influencer marketing as a good part of the content mix. They also create funny content like this.
One of my favorites is when they created a series of historical + modern ads, positioning BigBasket as the easy and convenient solution against the hardships they had to place…all with a touch of humor!
With this, they keep their audience informed and engaged.
Key Takeaways from BigBasket’s Marketing
- Leverage Local Resources:
Partnering with local suppliers and kirana stores helped BigBasket deliver variety and freshness.
- Adapt to Consumer Needs:
Evolving with trends like quick commerce and AI-driven features can keep your brand ahead of the curve.
- Build Trust Through Marketing:
Using a trusted celebrity like Shah Rukh Khan positioned BigBasket as reliable and relatable.
- Embrace Omni-Channel Marketing:
Combining traditional ads with social media and influencer campaigns ensures broader reach and engagement.
