Report Project Bba 4a
Report Project Bba 4a
INTRTODUCTION
COVID-19, one small virus has shaken the entire world. According to IMF, the
global economy is expected to shrink by over 3 percent in 2020 – the steepest
slowdown since the Great Depression of the 1930s. It has caused impact on
personal lives and corporate world. India’s first COVID -19 cases was registered
on January 30, 2020. As on July 31, 2020 the number has skyrocketed to
whopping 1.66 million. Indian Government imposed a nationwide lockdown from
March 25, 2020. The lockdown caused panic buying among the customers. In
metro cities people usually have a habit of buying their necessities including
groceries online. Online retailers like Amazon, Flipkart, Grofers, Big Basket, etc.
are the key players in online grocery market. The lockdown has also largely
affected online retail sectors Due to shortage of stocks, lack of transport and
lack of manpower the retailers were able to provide no service or limited
service. .The pandemic has disturbed the trust, loyalty and satisfaction level of
retail customers. This paper aims to portray an overview of customer
experiences related to the services of online retailers during the pandemic. It is
worthwhile to understand that retaining the existing customers indeed is a huge
challenge for the retailers selling the groceries online during COVID-19, the
retailers should remain in touch with their customers through their own sites,
social media and other online platforms and express the concern and support in
the dire pandemic situation. This shall help the customer have the sense of
attachment. With COVID-19 becoming a new normal and the start of providing
the services, the retailers should adapt and implement the guidelines issued by
the government related to the safety hygiene and protection of their customers
particularly related to the packing and delivery of the packages at the
customers’ doorsteps.
Online grocery retailer bigbasket, like many of its competitors in the space, faced a
severed supply chain disruption and migrant labour exodus in the wake of the
lockdown. Which reduced the e-grocer’s operational capacity by 50 percent, while
at the same time, causing panic buying among consumers. In fact, bigbasket has
since experienced a 5-6x surge in demand, resulting in a major spike in orders, new
customer acquisitions, and an increase in average order value, as consumers look
and shop for safe-to-eat, hygienic products. Leaders of Tomorrow's caught up with
the Co-Founder & CEO of bigbasket, Hari Menon, to talk about the challenges the
company faced in the initial days of the lockdown, and how it navigated the crisis
to emerge as perhaps India's most successful e-grocer.
When asked about the challenges bigbasket faced in the initial days of the
lockdown, Hari Menon, Co-Founder of bigbasket said, “We had to shut down our
delivery services immediately after the lockdown announcement due to a lack of
awareness around ‘essential workers’ like our delivery service team. They were
repeatedly halted at checkpoints or sent back home.” He further added, “In fact, 2
days after the first janta curfew, 80% of our workforce left for their hometowns.
Prior to the lockdown we used to service 200,000 orders a day, but it dropped
dramatically to just 28,000 orders per day.” He continued, “This resulted in a
complete supply chain collapse so, we had to work around that and find solutions
such as reducing the number of products that we offer, hiring 12,000 workers
locally, and our company began to embrace the motto of doing more with less.”
Offering a present day snapshot, Hari Menon said, “Our sales have since doubled
however, but what's even more important is that our business has become
profitable.” He elaborated further, saying, “We were one of the earliest players to
adopt contact-less delivery. And we saw a great demand from tier 2 cities and we
continue to see exponential growth from tier 2 cities even today.”
On building brand loyalty, Hari Menon commented, “We make sure our service
qualities are always top-notch, by focusing on key areas such as - maintaining the
fill rate, ensuring on time delivery, and maintaining a high in-stock rate for all
products.” He concluded by saying, “And ultimately. the retail market in India
presents such an enormous opportunity, that there is no reason to worry about
competition.”
INDUSTRY PROFILE
E-COMMERCE INDUSTRY
Web is changing the way customers shop and purchase merchandise and enterprises, as a
quickly advancing business sector web is assuming a noteworthy part and therefore, the world is
growing quick and web enables the organizations to lessen the advertising costs which diminish
the cost of the item and administrations. Web based shopping diminishes the setback and spares
time and furnishes proficiency with secure system for simple and solid association with give
secure exchange of cash and getting the request. All the organizations are utilizing web to
convey data about their item and administrations to the clients however mail what not. Access
to web has diminished an opportunity to arrange the item and accepting the item in our
doorstep. Web causes the organizations to take input and surveys from the client or customers,
to know whether the client is fulfilled or not. It likewise helps the investor, partner, value
holders, providers, merchants, wholesalers and so on to gather essential data about the
organization's item and administrations and this causes them to settle on choice whether to
contribute their cash or not. Internet Shopping has formed the pattern of the market which gives
data about the cost of a similar item from various sites and the nature of the item, validity of the
item, deal benefit office of the organization and after deal benefit office of the organization.
Internet business showcase is a one of a kind open door for organizations to achieve the clients
both existing and potential clients. Internet business has offered preferred standpoint to
individuals. Individuals can access and purchase great quality items from anyplace in the event
that they have web association. As research says that individuals are accomplishing more online
shopping for food same like as they are doing shopping electronic, mechanical, and so on as we
as a whole realize that individuals are purchasing more online items so the request of online
store has been 4 increment. Individuals jump at the chance to purchase more from online store
since they distinctive alternative rely upon their value restrict we can become acquainted with
about the element of various item. As we likewise realize that a large portion of individuals have
their own particular versatile and the greater part of have web so they know to do web based
shopping. What's more, reason is for doing on the web is that individuals like remain on online
via web based networking media website if any limited time action is on that they people groups
get the enthusiasm for purchasing items. In the event that any offer are they get know. Online
supermarket are deal their items same according to advertise rate, additionally they give offer so
individuals are liking to purchase items online on the grounds that they can spare their
opportunity by remaining at home putting in request and request will achieve the home with no
exertion. Conveyance charge is additionally less and in the event that we purchase items more
than certain value restrain then we get free home conveyance which is one of the benefits of
web based shopping. Site is plan in a such a route, to the point that anybody can access to items
effortlessly, it is easy to understand, if the individual having account on that site than they
sending sends so the client will stay interface with site and they additionally give online coupons
subsequent to doing certain request which draw in clients. On the site we get distinctive brand
of same item, if the items isn't accessible in one site we can likewise get to another. Today
numerous online supermarket are accessible so the items are deal at aggressive cost. we
However now days physical shop are additionally giving home conveyance which is one of the
detriment to the online market. SUCCESS 0F E-COMMERCE As web based business began the
task cost has decreased in light of the fact that there is no need of physical shop, this further
prompts increment of benefit. Because of online internet business requests of physical store has
diminishing. For retail location we require part of foundation. We can analyze cost on online
store effectively ,no required to approached anybody for getting data about item on the off
chance that we open web based 5 business site there we get any data of any items. Data such
cost , highlight of items , brand of the items, and so on. Individuals who are requesting on the
web can administration of money down (COD), or he can pay by charge or Mastercard, PAYTM,
and so forth it is protected and secure to buy items through on the web. Individual who is
working together in certain territory would extent be able to his/her business anyplace in world.
These days towns are additionally associated with web so they get shot of doing shopping on the
web. So individuals remaining in neighborhood great quality items and administration. Because
of internet business we not require to go physically in the store or shopping center, we can
purchase whenever in our bustling timetable. Additionally online networking shop helps the
internet business to develop. It is conceivable in light of the fact that the vast majority of
individuals are utilizing web-based social networking, where some ad is coming and our interest
are increment to purchase that items.
Types of E-Commerce
The term commerce refers to the trading of goods and/or services. E-commerce
is a modern-day invention that facilitates the trading of goods and/or services
through electronic means, or more precisely, the internet. This article is an
account of the various types of e-commerce businesses, each of which caters to
different business models.
The Types
The following are the different types of e-commerce platforms:
1. Business-to-Business (B2B)
2. Business-to-Consumer (B2C)
3. Consumer-to-Consumer (C2C)
4. Consumer-to-Business (C2B)
5. Business-to-Administration (B2A)
6. Consumer-to-Administration (C2A)
Business-to-Business (B2B)
A B2B model of business involves the conduct of trade between two or more
businesses/companies. The channels of such trade generally include
conventional wholesalers and producers who are dealing with retailers.
Business-to-Consumer (B2C)
Business-to-Consumer model of business deals with the retail aspects of e-
commerce, i.e. the sale of goods and/or services to the end consumer through
digital means. The facility, which has taken the business world by storm,
enables the consumer to have a detailed look at their proposed procurements
before placing an order. After the placement of such orders, the company/agent
receiving the order will then deliver the same to the consumer in a convenient
time-span. Some of the businesses operating in this channel include well-known
players like Amazon, Flipkart, etc.
Consumer-to-Consumer (C2C)
This business model is leveraged by a consumer for selling used goods and/or
services to other consumers through the digital medium. The transactions here
are pursued through a platform provided by a third party, the likes of which
include OLX, Quickr, etc.
Consumer-to-Business (C2B)
A C2B model is the exact reversal of a B2C model. While the latter is serviced to
the consumer by a business, the C2B model provides the end consumers with an
opportunity to sell their products/services to companies. The method is popular
in crowdsourcing based projects, the nature of which typically includes logo
designing, sale of royalty-free photographs/media/design elements, and so on and
so forth.
Note – the term ‘crowdsourcing’ was coined in the year 2005 as a sourcing model
that facilities individuals/organizations to obtain goods/services from internet
users.
Business-to-Administration (B2A)
This model enables online dealings between companies and public
administration, i.e. the Government by enabling the exchange of information
through central websites. It provides businesses with a platform to bid on
government opportunities such as auctions, tenders, application submission,
etc. The scope of this model is now enhanced, thanks to the investments made
towards e-government.
Consumer-to-Administration (C2A)
The C2A platform is meant for consumers, who may use it for requesting
information or posting feedbacks concerning public sectors directly to the
government authorities/administration. Its areas of applicability include:
Why E-Commerce?
Here are a few important benefits, among a host of others, of this revolutionary
model of business:
• E-commerce bridges the gap between local sellers and global audiences,
thereby helping them in widening their reach across the global market
segment without making further investments.
• The consumers are provided with a gamut of options for procurements.
• It facilitates the round-the-clock conduct of trade.
COMPANY PROFILE
BIG BASKET
BigBasket – Company Profile Bigbasket is the largest online grocery supermarket in India. It was
launched in 2011, quite about the time when ecommerce was in its nascent stage in the country.
Bigbasket was founded by Hari Menon, VS Sudhakar, V S Ramesh, Vipul Parekh and Abhinay
Choudhari. Bigbasket is headquartered in Bengaluru and delivers to various cities in India such as
Hyderabad, Mumbai, Pune, Chennai, Delhi, Noida, Mysore, Coimbatore, Vijayawada-Guntur,
Kolkata, Ahmedabad-Gandhinagar, Lucknow-Kanpur, Gurgaon, Vadodara, Visakhapatnam, Surat,
Nagpur, Patna, Indore and Chandigarh Tricity city limits.
Bigbasket was launched at a time when India’s busy workforce in cities was finding it difficult to allocate
time to buy groceries and home essentials. Bigbasket gave them the flexibility to place their order
anytime and get the things delivered at their preferred time. Bigbasket offers groceries and food
supplies in various categories such as fruits & vegetables, food grains, oil, masalas, bakery items,
beverages, branded foods, personal care products, household supplies, eggs, meat, fish, etc. Bigbasket
currently offers more than 18,000 products across various categories and features more than 1000
brands in its catalogue. Bigbasket comes with the promise of lowest rates and prompt delivery services.
History: Bigbasket was launched in 2011, but its journey had begun much earlier. It was in the year 1999
that a group of people comprising V S Sudhakar, Hari Menon, Vipul Parekh, Abhinay Choudhari and V S
Ramesh launched their online retail business called Fabmart. The business did quite well and later
physical retail malls called Fabmall were launched in various locations in South India. The business was
eventually sold to the Aditya Birla Group and now it is known popularly as ‘More’ retail chain. However,
the founders were itching to start something new and with their experience in retail business, they
came together once again to launch Bigbasket in 2011. Bigbasket currently has revenue of around $3.2
million and approximately 4,000 employees. Funding: Bigbasket has received funding worth around
$526 million. The investors include Alibaba Group, Abraaj Group, Ascent Capital, Bessemer Venture
Partners, Brand Capital, Helion Venture Partners, ICICI Venture, IFC Venture Capital Group, LionRock
Capital, Paytm Mall, Sands Capital Management, Sands Capital Ventures, Trifecta Capital and Zodius
Capital. There are talks about additional funding of around $200 million, post which, the company would
be valued at around $900 million. Acquisitions: Bigbasket acquired Delyver in June 2015 for an
undisclosed amount. Delyver was also an online grocery store and its specialty was using local stores to
deliver groceries to people. Now, all business assets of Delyver have been merged with Bigbasket.
Competition: Bigbasket competes with various other startups in the online grocery segment.
Competitors include Grofers, Zopnow, Peppertap, Naturesbasket, Aaramshop, etc. Various city-specific
online retail stores have also come up, which are giving tough competition to Bigbasket. Even bigger e-
commerce players such as Amazon India and Snapdeal have also started selling groceries online, which
is creating new challenges for Bigbasket. About the Founders: Hari Menon is the CEO of Bigbasket. He is
an alumnus of BITS Pilani. V S Sudhakar is a cofounder and deals with senior management decisions at
the organizational level. Vipul Parekh is an alumnus of IIM Bangalore and heads the Finance & Marketing
department. Abhinay Choudhari is an alumnus of IIM Ahmedabad and he heads the new initiatives at
Bigbasket. V S Ramesh is an engineering graduate from Karnataka University and he heads logistics and
supply chain at Bigbasket.
2. Exotic Range: It also offers exotic fruits, vegetables and imported groceries
which are not easily available in nearby retail outlets. This gives them an edge in
catering to customers who like buying such stuff.
3. Discounts: Big Basket offers huge discounts on various products. They also
have the product bundling technique to maximise sales and offering maximum
discounts to the customers. This makes them a lucrative option for customers to
buy.
4. Convenience: Big Basket offers an escape from the hassle of standing in the
queues of malls or going all the way to the retail stores. They give the products
right at the door step and offer multiple payment options. The on-time delivery
guarantee makes them a lucrative option, Customers, especially in big cities
where life is very fast and it is difficult to reach thThe customers, can shop at
any time of the day.
5. Target Group: They have selected their target customers very carefully and
have established a footing in the metropolitan and some tier-I cities. They
operate in Bangalore, Hyderabad, Mumbai, Pune, Chennai, Delhi, Mysore,
Vadodara, Patna, Indore, Vijaywada, etc. They are currently operational in about
25 cities.
6. Low Fixed Cost business model: Most of the items that Big Basket offers are
perishable hence they depend on the retail stores they are coordinating with for
the products. This means they have no inventory cost and makes their business
model more profitable.
7. Delivery Time: Big Basket delivers the groceries the next day. Many
retailers have started the facility of home delivery to nearby societies
and customers in just few minutes to hours. So customers prefer this
instead of waiting for 24 hours.
11. Order Cancellations: They depend on stores that they have tied-up
with to provide them the items. If they do not have the items available
they won’t be able to deliver them. This sometimes tend in
cancellation of orders. Out of stock issues tend to make the
customers unhappy and repetitive of such issues makes the
customers reluctant to reuse the service.
12. Market: Indian retail market is valued at more than approx. $550
million and grocery alone covers 60% of this share. Hence it’s a huge
market with many players to accommodate and customers to cater.
13. Grocery Growth: India is the 6th largest grocery market in the
world. E-commerce grocery market is growing with a year on year
growth rate of 19%.
14. Expansion: Many cities are still not covered by these startups and
Big Basket can target them and gain the first movers advantage. They
can expand to tier-2 cities and increase their market.
18. 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.
5. As Bellman et al. (1999) say, socioeconomics are not all that vital in
deciding internet buying potential. Regardless of whether the shopper
has a wired way of life and the time requirements the individual has
are considerably more persuasive. Hazard taking 14 inclination is
additionally an effective factor. E-clients have higher hazard taking
inclinations. Shoppers with large amounts of protection and security
concerns have bring down acquiring rates in online markets however
they adjust this trademark with their journey for influencing utilization
of the data to favorable position of the earth (Kwak et al., 2002;
Miyazaki and Fernandez, 2001).
10. (Teo et al., 2004). Additionally examines planning to finish the full
arrangement of variables affecting purchasers' prepurchase goals are
still much anticipated.
12. (Berthon, 1996). Basic purposes behind buy hesitance are the
challenges and expenses of separation transportation, deficient
measure of procurement related data, inconveniences experienced
after the buy, for example, conveyance or discount issues, general
security fear, and different saw dangers, for example, money related,
item related or mental dangers
13. (Mayer, 2002; Chen and He, 2003). Then again, the reasons of
relinquishing buys are considerably more specialized, for example,
startling delivery expenses or exchange intricacy (Harvard Business
Review, 2000).
14. (Shim et al., 2001). Thusly, expanding on the data favorable
position can be relied upon to pay off later on. Building viable choice
emotionally supportive networks and helping shoppers with intelligent
choice apparatuses are additionally effective endeavors that should be
produced further (O'Keefe and McEachern, 1998; Barber, 2001).
17. In any case, every single fulfilled purchaser don't end up steadfast.
Personalization endeavors and expanding the social estimation of
online encounters are vital to influence purchasers to assemble solid
brand connections in the digital world. Despite the fact that Nunes and
Kambil (2001) contend the inverse, a few examinations locate that
customized Web destinations and client groups are profoundly
compelling on the customer mark relationship particularly for
experienced Internet purchasers (Thorbjornsen, 2002).
18. In addition, organizations that can make trust and increment the
apparent estimation of web based shopping can transform their
fulfilled purchasers into steadfast ones in the e-promoting condition,
as well (Anderson and Srinivasan, 2003).
19. The online condition suits such a large number of chances for
making reliability that even disconnected contributions can be
adequately encouraged with supporting after deal administrations
gave through the Web (van Riel et al., 2004).
23. Extension and Type of Activities Firms Can Perform in the Virtual
Environment – Making utilization of the data based focal points of the
Web is one noteworthy value-based region. Organizations can discuss
constantly with their business accomplices and purchasers, get and
disperse data, and tackle business issues quickly and successfully
using propelled data innovations; in this way trading sectoral data so
effectively turns into an essential wellspring of productivity for any
online organization (Emerick, 1996; Eder and Darter, 1998)