Big Basket Marketing Mix (4Ps) Strategy

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Marketing Mix of Big Basket analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the Big Basket marketing strategy. The article elaborates the pricing, advertising & distribution strategies used by the company.

Let us start the Big Basket Marketing Mix:

Product:

Big Basket is a leading Indian ecommerce website focusing on grocery items being delivered. The main product in its marketing mix is its website and app, which gives access to users to buy groceries and food online. Big Basket offers a variety of products ranging from grocery to dairy products, to staples to meat products. Following are the varieties of product categories it offers:

• Fruits & Vegetables – Fresh fruits, Fresh Vegetables, Cut fruits, Cut Vegetables, Exotic fruits & vegetables, Sprouts, Organic produce, Flowers

• Food grains, Oil & masala – Dals, pulses, Rice, Salt, Sugar, Organic Staples, Flour, Dry fruits

• Bakery & Dairy – Bakery snacks, gourmet breads, cakes, desserts, dairy

• Beverages – Tea & Coffee, Fruit Juices, Energy Drinks, Soft drinks

• Branded Foods – Breakfast Cereal, Ketchup, Pasta, Baby food etc.

• Beauty & Hygiene – Oral Care, Beauty, Grooming, Hygiene, Fragrance, Skincare

• Household – Utensils, Storage, Stationary, Car needs, Electricals etc.

• Gourmet – continental snacks and confectionaries

• Eggs & Meat, Baby Care etc


Image: company website


Price:

Big Basket is a leader in the online grocery delivery services. Big Basket is the first to venture into this sector and has many competitors currently. Even with all the competition, it continues to be the market leader and most popular amongst the customers. It tries to increase its margins by setting a nominal price of Rs.20 as a delivery charge for items ordered below Rs.1000. It also provides a nominal discount on the order of Rs.3000 or Rs.5000 and above to encourage households to buy their monthly groceries from Big Basket thus providing economies of scale. They mark up the prices of the groceries a little higher from the market prices so as to cover their high variable costs. High variable costs are incurred due to wastage of perishable items, cost of transportation, cost of labor, transportation damage, cost of storing inventory etc. Although there’s a markup in the price it still tries to keep the prices competitive with the other players in the market.


Place:

Big Basket is spread over many parts of the country which include cities like Bangalore, Mumbai, Hyderabad, Pune, Chennai, Delhi-NCR, Madurai, Coimbatore, Mysore, Vijayawada-Guntur, Ahmedabad, and Nashik. Big Basket will soon be expanding their operations soon to other cities. The customers place their orders online according to their needs. While doing so, they choose the delivery timings and the mode of delivery. It provides two types of deliveries: Standard and Express. Express delivery is done within two hours of placing the order and Standard is delivered on the next day. Since Big Basket follows an inventory model, it procures its goods from HUL, P&G and other big manufacturers, farmers and retail stores and stores it in the warehouse. Upon receiving the order, the delivery personnel picks it up from the warehouse and delivers the goods to the said person within the chosen time.


Promotion:

Big Basket has used many marketing and pricing strategies over the years to stay ahead in the business. The biggest marketing strategy they introduced was to name Shah Rukh Khan as their brand ambassador and launch TV, media and digital marketing campaigns which were aimed at gaining popularity and visibility amongst the masses, as celebrities tend to be very influential in the Indian set up. Big Basket provides offers periodically to its most frequent customers, heavy shoppers and also cash back in their digital wallets.


Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Big Basket.


People:

With the scaling up of business, it has to constantly scale up the workforce to keep up with the operations since it is a very operation oriented business. The business works on the efficiency of the delivery guys who, if fail to delivery correctly or on time, and the customer service staff who, if fail in delivering optimal solutions, would lead to customer complaints and thus degrade the Big Basket brand amongst customers.


Process:

When Big Basket started it used to follow a Just in time model where the delivery staff used to procure the items from the local retailers as and when the order is received. But with time it started to follow Inventory model. Now, the goods are procured in advance and stored in the warehouse. Whenever an order is received from the customer, it does the weighing, packaging and sends out the items for delivery on the customer-specified timing. The model of Big Basket is a hub and spoke model. It has a main warehouse in the city and many other distribution centers throughout the city where the goods are shipped for delivery. Currently, it has been focusing on implementing the hyper-local strategy where it has tie-ups with the local vendors to deliver goods within an hour or two.


Physical Evidence:

Physical Evidence of Big Basket is seen from the way that we get the delivery of the goods, the quality service provided by the customer care executives, the warehouse storage, transportation services etc. Hence this covers the marketing mix of Big Basket.


About Big Basket:

Big Basket is an on-demand online grocery retailer which started its services in December 2011 founded by Hari Menon. Big Basket revolutionized the way people used to shop for groceries. They were able to order groceries and staples and get it delivered to their doorstep for a nominal fee. It helps you to eliminate the menial work or grocery shopping by going to several places for your various needs and provides a one-stop solution for your grocery shopping Big Basket It is available in most metropolitan cities and is planning to expand further into tier 2 cities soon. It allows you to choose a delivery time so that you can get the goods delivered at a convenient time.

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Browse 4Ps Analysis of more brands and companies similar to Big Basket Marketing Mix. The Marketing Mix section covers 4Ps and 7Ps of more than 300 brands in 2 categories.

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The names and other brand information used in the Marketing Mix section are properties of their respective companies. The companies are not associated with MBASkool in any way. The brand names are used purely for educational/academic purpose only.

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