Big Basket - Grocery List : Product Management Case Study

Debarati Rakshit
 What transpires us to buy Groceries ?

“We all eat, and it would be a sad waste of

opportunity to eat badly. - Anna Thomas”

- We buy groceries to prepare and eat meals.

- And eating a meal, is part of being human and life experiences.
- This life experience can be contextual to who and where we are and
want to be.

Deciding and Buying Grocery

Part of who we are Part of our life context

Selection of Grocery,
as part of who we are.
 Consumer % for Online Consumer Packaged Goods (CPG)*

Generation Z Millennials Generation X Baby Boomers Silent Generation

(15-20) (21-34) (35-49) (50-64) (65+)

28 % 30 % 22 % 17 % 9%

More than 50% is below the age of 34 - For our case, we will consider
Generation Z + Millenials - as they are
more than 50% of the consumer.
More than 70% is below the age of 50

- Moreover, choosing one particular

consumer base, helps us
understanding them closer and
References :
* The Future of Grocery, April 2015, Nielsen Research in-depth.
 Tremendous Opportunities for Niche Consumer Segment
Niche Consumer Segment

“Healthy Eating Space” *

Better-For-You foods * Fresh and Natural Food helping to fight

Suggestion by Nielsen
Disease and promote good health *

User Needs - Health Conscious Millennials, trying to Millennials, falling prey to common and
practice wholesome living of widespread lifelong diseases like Sugar,
mind-health-body philosophy. Obesity, PCOS, High Blood Pressure,
Anxiety, etc.
- Many Practicing Veganism.

References : * The Future of Grocery, April 2015, Nielsen Research

Psychological Purchasing Behaviour

Psychological Consumer Buying Process

Motivation Problem Recognition

Perception Information Search Let’s try and

check this from a
Learning Evaluation of Alternatives typical user
journey
Beliefs and Attitude Purchase Decision

Purchase

Does the Psychological Continuum Influence the Consumer Behaviour?

Group 1 : Health Conscious Millennials
Group 1 : Health Conscious Millennials

Bio Desires
Dishari moved from Kolkata to Bangalore 1. A library of recipes, which she can
for her new job. She is getting used to select and create her meal plans.
cooking by herself and managing her 2. To able to get a list of groceries based
health goals. on health restrictions and goals.

Often, she checks vlogs, blogs and

YouTube on food recipes. She tries to Pain Points
understand which meal and food items
1. She has to select an item, then check
meets her fitness goals.
the Nutritional Fact Sheet, to go ahead
Name : Dishari Ray
She enjoys the process of unearthing new with selection and rejection of an item.
Age : 24
Profession : Brand Strategist recipes, ordering groceries and cooking.
→ Too many steps for her

Beliefs : Health is wealth 2. She has to subscribe to Health Apps

Quote and Services like HealthifyMe etc. to
Food Ideologies : Loves to get suggested recipes, make a list of
cook healthy food, enjoys the I wish I could already get to create them and then buy on BigBasket.
process of sourcing produces grocery list based on my health needs
and cooking. and recipes suggestions. -> Too much of Cognitive Load.
 Typical user journey of Millennial Users

Checks if recipe
ingredients fits Checks Fridge and
Google “Masala Box” Picks and select Logs in Delivery
her health goals Checks Out
Recipes Checks BigBasket Quantity Details

Explore YouTube Mentally plans her Lists down items Save Items in
Compares Nutritional Saves Payment
Videos, blogs meals for next 3-4 days Basket
Values of items against Method
health goals

Concern of BigBasket
Not part of BigBasket Experience
 Breaking Down User Journey in Phases

Feature 1 Feature 2 Feature 3 Feature 4

Discovering Aligning to Planning Comparing Items

Recipes Health Goals Grocery against Health Goals

Checks if recipe
ingredients fits Checks Fridge and
Google “Masala Box” Picks and select Logs in Delivery
her health goals Checks Out
Recipes Checks BigBasket Quantity Details

Explore YouTube Mentally plans her Lists down items Save Items in
Compares Nutritional Saves Payment
Videos, blogs meals for next 3-4 days Basket
Values of items against Method
health goals
Concern of BigBasket
Not part of BigBasket Experience
Mapping User Journey Phases to Psychological Purchasing Behaviour

User Group 1 : Health Conscious Millennials

Millennial Big Basket Buying Process for

Psychological Consumer Buying Process Group 1 : Health Conscious Millennials

Acknowledging
Motivation Problem Recognition Health Goals

Perception Information Search Discovering Recipes

Learning Evaluation of Alternatives Aligning to Health Goals

Beliefs and Attitude Purchase Decision Planning Grocery

Purchase BigBasket Purchase

Group 2 : Disease prone and suffering Millennials
Group 2 : Disease prone and suffering Millennials

Bio Desires
Rahul has graduated from Rotterdam 1. To get nudged on when he buys food
Business School and moved back to which is too bad for his health conditions.
Bangalore. After growing up in London, 2. Receive suggestions on alternatives or
India and Bangalore appeared to be a very what is better for him.
polluted and fast-paced city for Rahul.
Pain Points
Having a life bogged with stress and
adrenaline, he adored the junk food, sodas 1. Rahul has to select an item, then check
and drinks with co-workers.
Name : Rahul Iyer the Nutritional Fact Sheet, to go ahead
Age : 23 Gradually Rahul gained weight, developed with selection or rejection of an item.
Profession : Entrepreneur first stage towards Diabetes and high
insulin level in Blood. A symptom common → Too many steps for him.

Beliefs : Health is wealth but in today’s millennials and Gen Z.

2. Rahul has to check Recipe Blogs, Vlogs,
can’t manage it being an young etc to get recommendations and ideas
and fast growing entrepreneur. Quote on food replacements, specially on
I wish I could already use a filter to snacks to manage his health
Food Ideologies : Cut all food select food based on my health conditions.
which contributes to imbalance conditions.
in Sugar and Insulin Level. --> Too much of Cognitive Load.
Mapping User Journey Phases to Psychological Purchasing Behaviour

User Group 2 : Disease Prone Millennials

Millennial Big Basket Buying Process for

Psychological Consumer Buying Process Group 2 : Disease prone Millennials

Acknowledging Health Goals

Motivation Problem Recognition

Perception Information Search Searching Food to find Alternatives.

Learning Evaluation of Alternatives Evaluating Options and Alternatives

Beliefs and Attitude Purchase Decision Planning Grocery for Big Basket

Purchase BigBasket Purchase

 Possible Features Landscape
Need Possible Features

Dishari : Health Conscious Millennials 1. Meal Plan Creator : A library of recipes, which she can select
1. A library of recipes, which she can select and create from and create her meal plans.
her meal plans. 2. Grocery List Creation based on Recipes

2. To able to get a list of groceries based on health 3. Health Goals Filters : A set of filters, when switched on - allows
restrictions and goals. to get Grocery suggestions and nudges based on it.

Rahul : Disease Prone Millennials

4. Better For You : Based on Health Goals, suggests Products which
1. To get nudged on when he buys food which is too
are alternative to the selected one but better for health and wellness.
bad for his health conditions.

2. Receive suggestions on alternatives or what is 3. Health Goals Filter : A set of filters, when switched on - allows to
better for him. get Grocery suggestions and nudges based on it.
Millennials and Healthy Food Options

1
2016 Goldman Sachs Study : - Millennials are eating smarter, using online information to find the healthiest
foods. And this is one space where they’re willing to spend money on compelling brands.

- Preventive healthcare market is expected to be a $100 billion industry by 2022.

2
RedSeer Consulting : 130-million Health Conscious Individuals will be actively taking preventive
measures to ensure healthy living by 2022.

3 2015 Nielsen Report : Suggests that there is tremendous expenditure behaviour and thus opportunities for
investment in the niche consumer segment, specially related to “Healthy Foods”.

Conclusion and Probable Direction :

1. Investing in “Health Food” Option is a great way to go.

2. Millennials will be consciously spending more on “Healthy Food” option → Costly Segment -> Higher Revenue
 Selection of Grocery,
as part of our Life Context
Group 3 : Migrant and Living Together Millennials

Life Story of 2 Roomies Desires

1. To able to plan and buy Groceries
Akila and Railey met through Flat and together.
Flatmates - Bangalore Group. They
moved together and immediately Rather than sharing a planner, buy from
bonded very well. one’s account and then using Splitwise
to keep a tab.
They like to plan and cook their meals
together. On Weekends, they call over → Too many steps
Name : Akila and Railey
their friends for parties and
Age : 26 and 28 2. To able to name a Grocery List of their
get-together. They prefer home-cooked
Profession : Brand Strategists, favourite food or a set meal, which they
Same Organisation. meals as it is economical and healthy.
They buy for their groceries together. usually splurge on a weekend - and then
able to directly buy the set.
Beliefs : Roommates, who
cooks together, lives together. Quote
Food Ideologies : Food is for We wish we could share a common 3. Akila and Railey, are always on the move
celebration. Experimental and grocery list planner between us and as being part of the service industry. The
Celebratory Cooking most buy our groceries together. ability to make a Grocery list from voice
weekends. Input is wonderful to them.
Possible Features Landscape
Need Possible Features

Akila and Railey : Roommates and Celebratory Meals are

important.

1. To able to plan and buy Groceries together. 1. BB Plan Together → This feature lets you have a joint
account, order grocery together and then do a split amount.

2. To able to name a Grocery List of their favourite food or

a set meal (vatha kuzhambu, Railey’s-another-breakup), 2. Named List → This feature lets you order a group of
which they usually splurge on a weekend - and then able to grocery items together under a particular name. Then you can
directly buy the set. always order the same list, by just selecting the list name.

3. Able to plan and make a grocery list with Voice Input. 3. Voice Smart → Allows user to make a Grocery list, with
voice input.
Prioritising Features
Ease of Revenue Customer
Trend in Total
Features Engineering Effort Impact Delight Priority
Investment (Out of 5)
(Our of 5) (Out of 5) (Out of 5)

Prioritisation Factor 0.35 0.45 0.2

Meal Plan Creator 3.5 3.5 5 - 3.8 Medium

Grocery List Creation

3.5 4 4.5 - 3.925 Medium
based on Recipes

Health Goal Filters 3.5 5 4 Positive 4.275 Medium - High

Better For You 4 5 4.5 Positive 4.55 High

BB Plan Together 4 4 5 - 4.2 Medium - High

Named List 5 5 4 - 4.8 High

Voice Smart 3.5 3.5 3.5 - 3.5 Medium

Prioritised Features are :

BB Fitter You BB Love Life

Health Goal Filters : BB Plan Together :

A set of filters, when switched on - allows to get
This feature lets you have a joint account, order grocery together
Grocery suggestions and nudges based on it. and then do a split amount.

+ +
Better For You : Named List :
Based on Health Goals, suggests Product This feature lets you group grocery items together under a
Alternatives to the selected ones . particular name. Then you can always order the same list, by just
selecting the list name.
BB Fitter You
What is BB Fitter You

“Cultural factors and eating habits make Indians prone to weight issues, and with consumers now judging themselves on
international body-image parameters, the general consensus is that a concerted effort on health and wellness is
imperative,” said Manoj Kulkarni, director at Nielsen India.

- Big Basket launches to their suite a set of features, with which our aim is to make you fitter,
healthier and better, everyday.

- Often, you might have wondered how tedious is the process to always check the Nutritional
Fact tab of a product, measure how much it is away from your health goals, then having to
Google Search (or BigBasket Search) to find an alternative.

- Talking to our customers, we have realised that having the access to high-quality Healthy
Food delivered at home, is their key concern.
 Market Potential of BB Fitter You

Progressive health and wellness consumers changing Food and Beverage Culture **

- *The overall health and wellness food products segment crossed Rs 10,000
crore sales mark in 2015, less than 10% of the overall food market,
according to a latest report by Nielsen

- *Food Companies can charge 22-82% extra for more healthier and
premium options like Oats Maggi.

- ** The global wellness industry grew 12.8 percent from 2015-2017, from a
$3.7 trillion to a $4.2 trillion market. To put that in context, from
2015-2017, the wellness economy grew nearly twice as fast as global
economic growth.

- 36% of the Indian Millennials have a fitness App. ***

- *Health Food Industry crosses Rs 10,000 crore in revenue, The Economic Times, Sep 05, 2016
- ** [Link]
- ***What the millennial Indian wants: Not cars & houses, just fun & convenience. ET Contributors. Nov 02, 2017
How does BB Fitter You works ? OPTION A

Health Filters 1 Set your Health Filters

switched on
Health Goal Filters

Switch on Health Filters 2

Then when you Select Food Items

buy something 3

Suggests alternatives 4
based on Health Filters Show alternative
Food Items

Buy the alternative food, for

healthier and Fitter You
 How does BB Fitter You works ? OPTION B
Setting Health Goals
while Onboarding First Step : Onboarding with Health Goals

Pre-selects Health Filters

Select Food Items

Show alternative
Food Items

Buy the alternative

food, for healthier and
Fitter You
How does BB Fitter You works ? OPTION B
Setting Health Goals
while Onboarding

Pre-selects Health Filters Second Step : Health Goals

Pre-selected (auto-suggested)

Select Food Items

Show alternative
Food Items

Buy the alternative

food, for healthier and
Fitter You
 Probable Market Size for BB Fitter You

Users Probable % Number of Users

No. of Big Basket User (Internet Source) 1,500,000 (internet)

Gen Z + Millennials on Big Basket 58% (Nielsen Research) 870000

Gen Z + Millennials interested

Probable 65% 565500
in Healthy Food

Average Billing Size INR 1200 565500 X 1200

Increase in Cost if Healthy Food 52% (average of 22-82%) 565500 X 1200 X 1.52

Market Size for Healthy Food 52% (average of 22-82%) 565500 X 1200 X 0.52

Possible Healthy Food Market on Big Basket (in INR) INR 35,28,72, 000

BigBasket Business : Delivery Charge + % on Food

INR 5,29,30,800
Price = 15 % (Quora)

Probable Market Size for BB Fitter You - to serve is INR 35,28,72,000 and profit INR 5,29,30,800 (for 1 year)
Development Timeline for BB Fitter You

1.5 Weeks 1 Week 1.5 Weeks 10 Weeks 2 Weeks Continuous

User Requirement UX and Development + Testing and Ship Data Collection

Interviews Gathering Prototyping Decision Science Iterating and Iteration
(Development)

16 Weeks = 4 Months

Development Time for BB Fitter You is nearly 4 Months (approximately).

Development Effort Cost for BB Fitter You
Number Approximate
Development Effort
Expertise Specialisation (of Salary Weekly Cost Effort Cost
(in weeks)
resources) (INR/Month)

Design
Design 1 1,00,000 25,000 3 37,500
UX Prototype + Research

Development Front-End 1 1,00,000 25,000 5 (1+4) 125,000

Back-End 1 1,66,666 41667 12 (10+2) 500,004

Market + User Feedback +

Data Analysis 1 1,25,000 31250 4 (1+1+2) 125000
Adoption

Product Manager
Product
Product Vision+ 1 1,50,000 37500 9.6 (60% of 16 ) 360,000
Management
Backlog+Scrum
Total Development
INR 11,85,004
Cost of BB Fitter You

Total Development cost for BB Fitter You for 4 month (approx) is INR 11.5 Lakhs
Development Cost v/s Possible Market to Capture

Probable Market Size for 1st year only : INR 5, 29, 30, 800

Development Effort Time : 4+ Months

Development Cost : INR 11,85,004

% of Development Cost to Revenue of 1st Year (only) : 0.022%

.
.
% of Development Cost to Revenue gradually decreases exponentially.

Verdict
We should go ahead with building BB Fitter You, with a potential to capture a global wellness
industry of $4.2 trillion market.
BB Love Life
 Love and Friendship Central to Millennials on the Move

Emotions and Qualitative Analysis of Millennial Intentions

“Co-living too is growing to be a very viable option of living among many single Indians, promising a convenient living situation
and a more fulfilling lifestyle.” - Your Own Room*

OYO LIFE is currently witnessing about 85-90% occupancy, and within a year of launch, have expanded their footprint
to 9 cities. This reflects how Millennials love living together, celebrating and enjoying life together with friends and
communities.

Study finds Indians have among the largest group of friends in the world. ***
“While friendship may be different across regions and age groups, it plays a universally central role in our happiness”
- a respondent.

Conclusion : Celebrating life, friendship and able to share meals together is big part of Life Experiences for Millennials.
This behaviour is also true with roommates and flatmates, where they want to share account to plan groceries together.

References :
*[Link]
** [Link]
***[Link]
What is BB Love Life

BB Love Life is a set of two powerful feature which helps Generation Z and millennials enjoy life with their roommates
and partners more efficiently.

BB Plan Together : Named List :

This feature lets you have a joint account, order This feature lets you group grocery items together
grocery together and then do a split amount. under a particular name. Then you can always order
the same list, by just selecting the list name.

Advantages Advantages
- It helps Account Partners plan their groceries
together and keep a tab on their planning. - Named List Feature helps you to manage grocery
planning.
- It saves account holder to always refer back to recipes,
bookmark them and plan the ordering from Big Basket.
- BB Plan Together also let you split your payment
- Named List Feature encourages Smart Buying.
without having to use other apps to keep a tab on your
grocery expenses.
BB Plan Together
How does BB Plan Together Work ?

Create Joint Account,

Name it like “Roomies”

Add Account Holders

Manage a Grocery
List together

When either one account

holder clicks on Pay Bill

Bill gets splitted and charged separately

from each account holder’s card
 Development Timeline for BB Plan Together

1.5 Weeks 1 Week 1 Weeks 8 Weeks 3 Weeks 2.5 Weeks Continuous

User Requirement UX and Development Testing and Compliance Ship Data Collection
Interviews Gathering Prototyping Iterating and Iteration
(Development)

17 Weeks = 4+ Months

Development Time for BB Fitter You is nearly 4.5 Months (approximately).

 Development Effort Cost for BB Plan Together
Number Approximate Salary Development Effort
Expertise Specialisation Weekly Cost Effort Cost
(of resources) (INR/Month) (in weeks)

Design
Design 1 1,00,000 25,000 2.5 62,500
UX Prototype + Research

Development Front-End 1 1,00,000 25,000 3 75,000

Back-End 1 1,66,666 41667 9 375,003

Market + User Feedback

Data Analysis 1 1,25,000 31250 2 62500
+ Adoption

Product Manager
Product 17 (60% Effort
Product Vision+ 1 1,50,000 37500 382,500
Management Time)
Backlog+Scrum

Total Cost INR 9,57,503

Total Development Effort cost for BB Plan Together for 4 month (approx) is INR 9.5 Lakhs
 To build or Not ? Customer Delight is Power !
Life Story of 2 Roomies Cost of Development
Total Development Effort cost for BB Together
Akila and Railey met through Flat and for 4 month (approx) is INR 9.5 Lakhs .
Flatmates - Bangalore Group. They
moved together and immediately
bonded very well. No. of Customers Satisfied
They like to plan and cook their meals Total Big Basket Customer = 1,500,000
together. On Weekends, they call over % of Gen Z + Millennials = 58%
Name : Akila and Railey Total Gen Z + Millennials = 870,000
their friends for parties and
Age : 26 and 28 Probability of staying together = 40% =348000
get-together. They prefer home-cooked
Profession : Brand Strategists, Probability of sharing grocery = 60%=208,800
Same Organisation. meals as it is economical and healthy.
They buy for their groceries together.
The power of 5/5 strong Love and Delight for
Beliefs : Roommates, who
cooks together, lives together. Quote Big Basket is : 208,800.

Food Ideologies : Food is for We wish we could share a common

celebration. Experimental and grocery list planner between us and Verdict
Celebratory Cooking most buy our groceries together.
To go ahead with BB Plan Together !
weekends.
BB Named List
What is Named List ?

Select Grocery Items

Name the Grocery List Create a Grocery List,

Name it
Edit the name

Favourite it, order the entire list by

just the selecting the Name
Grocery List

More Options

Set Calendar Time -> Days,

Repetition Order

Set the Timing

Probable Business Growth with BB Named List
Users Probable % Number of Users
No. of Big Basket User
1,500,000 (internet)
(Internet Source)

Gen Z + Millennials on Big Basket 58% (Nielsen Research) 870000

Gen Z + Millennials interested

Probable 65% 565500
Living together

Average Billing Size INR 1200 565500 X 1200

Increase in Billing when Ordering by Named List (Celebrations,

32% (average of 22-82%) 565500 X 1200 X 1.32
Special Meals)

Market Size for ordering by Named List (Celebrations, Special

32% (average of 22-82%) 565500 X 1200 X 0.32
Meals)

Growth in Business only by Named List ( in INR ) INR 21,71,52,000

BigBasket Business : Delivery Charge + % on Food Price = 3 % INR 65,14,560

Growth in business with only Named List is INR 65,14,560.

Development Timeline for BB Named List

1 Weeks 1 Week 1 Weeks 4 Weeks 2 Weeks Continuous

User Requirement UX and Development + Testing and Ship Data Collection

Interviews Gathering Prototyping Decision Science Iterating and Iteration
(Development)

9 Weeks = 2+ Months

Development Time for BB Named List is nearly 2+ Months (approximately).

Development Effort Cost for BB Named List
Number
Approximate Salary Development Effort
Expertise Specialisation (of Weekly Cost Effort Cost
(INR/Month) (in weeks)
resources)

Design
Design 1 1,00,000 25,000 2 50,000
UX Prototype + Research

Development Front-End 1 1,00,000 25,000 2 50,000

Back-End 1 1,66,666 41667 4 166,668

Market + User Feedback +

Data Analysis 1 1,25,000 31250 2 62500
Adoption

Product Manager
Product
Product Vision+ 1 1,50,000 37500 9 (60% Effort Time) 202,500
Management
Backlog+Scrum

Total Cost INR 5,31,668

Total Development Effort cost for BB Named List of 2+ Months (approx) is INR 5.3 Lakhs
To build or Not ? Development Cost v/s Market to capture

Probable Market Size for 1st year only : INR INR 65,14,560.

Development Effort Time : 2+ Months

Development Cost : INR 5,31,668

% of Development Cost to Revenue of 1st Year (only) : 0.081%

.
.

% of Development Cost to Revenue gradually decreases exponentially.

Verdict
We should go ahead with building BB Named List, with a potential to capture a the hearts of 870000
Millennials with extra revenue of INR 65,14,560 (in only first year).
Buying grocery, is not a mundane task. It is a
defining part of who we are, want to be and our life
story. It is an important part, and not just a chore.

Big Basket is helping you to form a richer and more

beautiful story, come be a part of it.