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UNIVERSITY OF MUMBAI

(SIXTH SEMESTER)
T.Y.B.M.S.

A PROJECT ON:
MARKETING STRATEGIES OF SWIGGY V/S ZOMATO

ACADEMIC YEAR:
2018-2019

SUBMITED BY:
SHAH MEET HITESH

PROJECT GUIDE:
PROF. NEHA MEHTA

DATE OF SUBMISSION:
25TH MARCH, 2019

MALINI KISHOR SANGHVI COLLEGE OF COMMERCE


AND ECONOMICS
J.V.P.D. SCHEME
VILE PARLE (WEST)
MUMBAI – 400 049
DECLARATION

I , SHAH MEET HITESH of MALINI KISHOR SANGHVI COLLEGE OF


COMMERCE AND ECONOMICS, of T.Y.B.M.S. (Semester VI) declare that I
have completed this project on the “MARKETING STRATEGIES OF SWIGGY
V/S ZOMATO” in the academic year 2018 – 2019. The information
submitted is true and original to the best of my knowledge.

DATE OF SUBMISSION

25TH MARCH, 2019 SIGNATURE OF STUDENT

(SHAH MEET HITESH)


CERTIFICATE

This is to certify that SHAH MEET HITESH of MALINI KISHOR SANGHVI


COLLEGE OF COMMERCE AND ECONOMICS, of T.Y.B.M.S. (Semester VI) has
completed the project on the “MARKETING STRATEGIES OF SWIGGY V/S
ZOMATO”, in the academic year 2018 – 2019. The information submitted is
true and original to the best of my knowledge.

____________________ ________________________
SIGNATURE OF PRINCIPAL SIGNATURE OF PROJECT GUIDE
(DR. MRS. KRUSHNA GANDHI) (PROF. NEHA MEHTA)

_________________________ ___________________________________
COLLEGE SEAL SIGNATURE OF BMS CO-ORDINATOR
(PROF. NEHA MEHTA)

_____________________________________
SIGNATURE OF EXTERNAL EXAMINER
ACKNOWLEDGEMENT

It has always been my sincere desire as a management student to get an


opportunity to express my views, skills, attitude and talent in which I am
proficient. A project is one such avenue through which a student who aspires
to be a future manager does something creative. This project has given me
the chance to get in touch with the practical aspects of management.

I am extremely grateful to the University of Mumbai for having prescribed


this project work to me as a part of the academic requirement in the
Bachelor of Management Studies (BMS) course.

I wish to appreciate the management and staff of Malini Kishor Sanghvi


College, BMS for providing the entire state of the art infrastructure and
resources to enable the completion and enrichment of my project.

I wish to extend a special thanks to my project Guide Prof. Neha Mehta


without whose guidance, the project may not have taken shape.
EXECUTIVE SUMMARY

SWIGGY and ZOMATO are the two market leaders in the online food ordering and
delivery market. Swiggy is only into online food ordering and delivery where as zomato
was initially a restaurant discovery platform that entered into online food ordering and
delivery after swiggy.
In this project I have basically covered topics such as the history of swiggy and zomato
their funding history and current market position. It also includes the business model
followed by both the companies and also the their marketing mix and then the marketing
strategies used to attracts large target audience.
The data is collected from various sources like questionnaire, websites, books,
magazines, newspapers articles, etc. The research design is exploratory and conclusive in
nature.
An attempt has been made to study the company’s perspective in the Indian market and
analyze on how they use different marketing strategies to woo their customers. The
research study needed to be completed within a specified time i.e. two months in certain
areas. So the findings cannot be generalized as a whole
INDEX

SR NO. TOPIC PAGE NO.


1 Introduction 1
2 Swiggy’s story 3
3 Zomato’s story 5
4 Funding story of swiggy 9
5 Funding story of zomato 10
6 Business model of swiggy 11
7 Business model of zomato 17
8 Marketing mix of swiggy 24
9 Marketing mix of zomato 26
10 SWOT analysis of swiggy 28
11 SWOT analysis of zomato 31
12 Marketing strategy of swiggy 34
13 Marketing strategy of zomato 44
14 Five stage buying model of swiggy 52
15 Five stage buying model of zomato 55
16 Data analysis and interpretation 58
17 Conclusion 68
18 Bibliography 69
19 Annexure 70
INTRODUCTION

WHY THE NEXT UNICORN WILL BE FROM THE ONLINE FOOD


ORDERING AND DELIVERY MARKET!

India’s online food ordering sector saw a strong growth rate in the number of daily
orders, growing consistently at 15 per cent on a quarterly basis from January to
September last year, according to a report from RedSeer Consulting.

The growth has resulted in the number of orders on a daily basis clocking an average of
400,000 during the September quarter. It has also meant players, including
Swiggy, Zomato and Foodpanda, are investing in in-sourcing deliveries.

In the September quarter, self-deliveries grew to 56 per cent of the total number of orders
done by the food-tech sector in India. In-house deliveries stood at 46 per cent in the
fourth quarter of 2016.

Having a better control of their deliver fleets, food ordering platforms were able to bring
down the average time taken to deliver a meal from 47 minutes in the December quarter
of 2016 to 42 minutes in the September quarter in 2017. This number is expected to grow
as food tech players look to boost customer satisfaction and have them order more meals.

Swiggy, one of the leading players has in-sourced deliveries since its inception and
continues to process 100 per cent of deliveries.

Zomato, which started off as a restaurant discovery platform and turned to online food
ordering, acquired Runner, a hyper local logistics firm in order to boost its own in-house
delivery arm.

The growth in 2018 is expected to continue at the same pace. However, Ola, India's
largest taxi-hailing firm, buying Foodpanda could upset the market. Ola has said it would
invest $200 million into Foodpanda over the next few years, creating a scare that there
could be a price war in the food-tech space again.

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Currently, players such as Swiggy and Zomato have managed to maintain the growth
despite charging delivery fees for small-ticket deliveries. Experts and industry watchers
say the model of delivering food from restaurants, which is ordered online has been
proven, even if there’s some way to go for firms in the space to begin making profits.

This also puts the sector at risk from being invaded by players with deep pockets, who
splurge huge amounts of money to grab market share and fend off rivals in the hope that
they'll be able to turn profitable someday.

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WHATS THE SWIGGY STORY?

It all started back in 2014 when two BITS Pilani graduates, Sriharsha Majety and Nandan
Reddy decided they wanted to make life easier by changing the way India eats - all with
just a tap! With their idea of ‘hyper local food delivery’, all they needed was the tech to
power it and were introduced to Rahul Jaimini, who brought this vision to life with the
first website. And with this, Swiggy was launched as a food ordering & delivery
platform.

In August of 2014, Swiggy began operations by signing up a few restaurants in


Koramangala, Bengaluru. Soon enough, the first team of Hunger Saviors came into
action to deliver food within 40 minutes. Shortly after, Swiggy raised its first round of
funding and launched the app in May of 2015. Fun fact: The technology that delivers
great food right to your doorstep was completely developed in-house!

With love and support from consumers, Swiggy expanded far and wide, first through the
entire city of Bengaluru and then across the entire country. As they say, the rest is
history.

Today, Swiggy is the leading food ordering and delivery platform in India. The
innovative technology, large and nimble delivery service, and exceptional consumer
focus at Swiggy enabled a host of benefits that includes lightning fast deliveries, live
order tracking and no restrictions on order amount, all while having the pleasure of
enjoying your favourite meal wherever you'd like it.

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VALUES AT SWIGGY

MISSION

Change the way India


ndia eats
eats.

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WHATS THE ZOMATO STORY?

Zomato- India’s most used food directory was originally launched under the name
‘Foodiebay’ in 2008 at the peak of the Indian st
start-up
up boom. The founders were
Deepinder Goyal and Pankaj Chaddah. Both are IIT Delhi graduates from 2005 and 2007
respectively and were working as analysts for the consulting firm Bain & Company.

The idea for FoodieBay sprang from them when after having tto
o scrounge around for
restaurant menus they finally decided to take matters into their own control. It started
with a simple foundational idea
idea- an internet directory for restaurant menus.

The idea, even before FoodieBay, was being pursued by Deepinder with
wit another friend
Prasoon Jain in Delhi NCR as a venture called Foodlet.. However, Prasoon soon moved to
Mumbai and left behind Foodlet as a venture too.

Soon there was a severe lack of HR and business, which kept Foodlet struggling. This is
when Pankaj Chaddah stepped in to help Deepinder’s idea, and they began afresh by
starting FoodieBay. The graph, since then, started bolting only upwards for the company.

Deepinder describes Pankaj aas a “turning point for the company”. Thee team of FoodieBay
was just 6 in number but in a short span of 9 months, they became the biggest restaurant
rest
directory in the Delhi NCR region by late 2008. The service, after two years of
operations, was renamed as Zomato in 2010
2010.

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ZOMATO AN ONLINE RESTAURANT DISCOVERY PLATFORM
ADDED INTO ONLINE FOOD DELIVERY ARM

In August 2013, in an interview with Livemint, Zomato CEO Deepinder Goyal was
asked what his plans were about adding a feature that let people order food online from
Zomato. He said, “There are practical constraints that stop us. We can’t tie-up with
everyone in the eco-system—there are thousands of restaurants. There’s no point in doing
only 500 restaurants out of 10,000. The only way to make it work would be to hire a
much bigger team, and the market doesn’t support that. The other way would be to let
restaurants handle deliveries, and act as a payment medium. If we don’t handle
fulfillment, then we can’t guarantee the quality of service. But the customer doesn’t think
about that—they place an order with Zomato, and if there is a problem, then the customer
lose faith in both the restaurant and Zomato. That’s not a good situation for us. As the
industry matures though, I think it will be possible to see more features get added, but it
will take at least three to four years to happen.”

Yet barely a year and a half later, Deepinder is ready to go ahead with what he had
deemed too risky. And somewhere this acceleration validates the scale Zomato has been
able to achieve in a short span.

This time Zomato is making the news with the announcement of online food ordering,
which it plans to start from March 16 onwards. Speaking on this development, Deepinder
Goyal says that this was a planned product extension and the company has been working
on this product for quite some time.

It’s an interesting model which Zomato is getting into where it will act as a tech platform
which will help users communicate with the restaurants. So, restaurants will have to
manually accept each order coming from a Zomato user before it is processed.
That's opposed to simply passing confirmed orders from users over to restaurants as other
services do, he says.

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Notably, Zomato will leverage its existing reach and scale (sales team of over 300
people, 5000 odd advertisers) to fast track its growth in this space. Setting ambitious
targets, Zomato claims to bring over 10,000 restaurants in its food ordering network in
the next three months and also start processing over 40,000 orders a day in the near term.
And why not? “Given that we have over 400,000 people who visit our India section every
day, this shouldn't be too hard," remarks Deepinder.

“We will invest $50 million in the business in India over the next year or so," he
continues. “This will be our fastest ramp up for any business in any geography ever.”

Zomato plans to make money from this new service via a cut of each order, but the exact
size of its fee will be based on feedback from customers directly. In the case of a five star
rating, Zomato will take a 7.5 percent commission fee. But that cut will rise to a
maximum of 15 percent for the lowest customer feedback. Thus the best experience and
value for customers will be the key focus.

“We will own the customer experience on the tech end, as the platform, the delivery
and logistics will be owned by the restaurants.”

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MISSION

Our is to ensure nobody has a bad meal

VISION

zomato is used by millions everyday to decide where to eat in over 10000cities over 23
countries. In a few years we should be able to help point you to a great place to eat no
matter what part of world you are in
in.

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FUNDING HISTORY OF SWIGGY

Online food delivery startup Swiggy, which entered India’s “unicorn" club earlier this
year, has raised $1 billion in fresh capital, marking the biggest ever funding round in the
country’s booming food-tech sector and increasing pressure on arch-rival Zomato to
quickly raise fresh funds.
With the latest funding, which was led by existing investor Naspers Ltd and also saw
participation from China’s Tencent Holdings Ltd, Swiggy has become the fifth most
valuable startup in the country, commanding a valuation of $3.3 billion and underscoring
the stunning rise of a venture that was launched four years ago.
In June, a $210 million funding round made Swiggy a unicorn (startups with a valuation
of $1 billion or more). Only Paytm (One97 Communications Ltd), Ola (ANI
Technologies Pvt. Ltd), Oyo (Oravel Stays Pvt. Ltd) and Byju’s (Think and Learn Pvt.
Ltd) are now ahead of Swiggy in valuation. It competes with Zomato, UberEats and Ola’s
Foodpanda.

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FUNDING HISTORY OF ZOMATO

In August 2010, Zomato got its first round of funding of $1 million from Info
Edge, India. And in September 2011, got its second round of funding of $3.5
million from the same financier. Next year Zomato upraised its third round of
another $2.5 million from the same investor and again in early 2013, Info Edge
funded fourth round worth $10 million which gives them a 57.9% stake in
Zomato.

In November 2014, Zomato came up with a fresh round of funding of $60 million
at a post-money valuation of ~US$660 million. This round of funding was jointly
headed by Info Edge India Limited and VY Capital, with involvement from
Sequoia Capital. This made a total funding of over US$113 million for Zomato.

Recently in a fresh round of funding in April 2015, Info Edge, India has invested
an amount of Rs 155 crore in Zomato.

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SWIGGY
SWIGGY’S BUSINESS MODEL

RESTAURANT PARTNERS

The restaurant partners are restaurants which opt to deliver to customers that come from
Swiggy application and website.

DELIVERY PARTNERS

They form the delivery fleet which is given the responsibility to pick up the order from
the partner restaurant and deliver it to the end consumer.

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HOW SWIGGY WORKS?

Swiggy provides an online platform for ordering from a wide range of listed
neighborhood partner restaurants and have their own fleet of delivery personnel who pick
up the orders from the partner restaurants and deliver it to the customers at their
doorsteps.

Swiggy works by providing a complete food ordering and delivery solution that connects
the existing neighborhood restaurants with the urban foodies proving to be beneficial for
both.

You can open the Swiggy application on your mobile phones or visit the Swiggy website
and you will find a whole list of restaurants to order from.

Once the restaurant is selected and the order placed, the restaurant which has its own
Swiggy application receives the order details and starts preparing for the order.

A broadcast signal is then sent to all the drivers in the vicinity who have their own driver
application. Those willing to accept the order can choose to accept and deliver it.

Like other on-demand delivery startups, Swiggy also has integrated the Google Maps
API which lets the customers know where their order is and the amount of time it will
take for their order to get delivered in real-time.

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HOW SWIGGY MAKES MONEY?

Swiggy’s business model has made Swiggy an early mover in the food service space in
India and has had a set base model on which their business is based, but they have started
earning revenues from other related avenues ever since they have established themselves.

The following are the different sources that Swiggy makes money from:-

COMMISSIONS

Swiggy typically charges a 15% – 25% commission on the order bill amount received by
the restaurant. This commission is charged on the full bill amount which is inclusive of
the Goods and Service Tax charged over and above the menu price.

Swiggy continuously tries to get restaurants on board to be available on Swiggy


exclusively. On this account, certain benefits are given to restaurants like greater
visibility and sometimes a drop in the commission of about 2% – 3%. But since the
resulting benefit is far more than the drop in revenue, Swiggy does this aggressively.

The percentage of commission depends on various factors like the frequency of orders
received, location of the restaurant, dependency of the restaurant on Swiggy, percentage
charged by competitors, penetration to a new city etc.

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DELIVERY CHARGES

Swiggy does not have a minimum order requirement for delivery which means that
Swiggy often receives orders amounting to less than Rs 100. This increases the logistics
cost per order.

So, after Swiggy got a strong hold of the market, it started charging delivery charges to
low order amounts (depending and varying upon city to city). Delivery charges are
typically around Rs 20 for orders less than Rs 250.

Swiggy sometimes also charges a surge in delivery prices in times of high demand, rains,
special occasions and midnight delivery in select markets.This additionally helps in
pushing customers in ordering above the threshold to avoid paying delivery charges.

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ADVERTISING

Swiggy started earning advertising revenue via two models – Banner promotions and
priority listing of restaurants.

Swiggy recently started wit


withh Banner promotions to take a leaf out of Zomato and
Foodpanda’s books. Restaurants are promoted and displayed in their app and website
pertaining to regions. Different regions on the displayed page vary in their rates based on
the visibility that the restaurant
aurant is to receive via the banner promotion.

The only limitation is that Swiggy does not share customer data, so the restaurants rely on
generating raw revenue through higher visibility only.

Swiggy typically displays a list of available restaurants to tthe


he customers. It has tapped
this very potential into a revenue stream by charging a premium from restaurants in
return of giving priority listing to the restaurants.

Higher up the list the restaurant is displayed, higher is the cost the restaurant has to pay.

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SWIGGY SUPER

Swiggy has recently launched Swiggy Super which is a membership program for
customers. It offers unlimited free delivery on orders above Rs 99 and no surge pricing
for which the customer has to pay a fixed amount.

Available options include a one-month membership for Rs 149 and a 3-month


membership for Rs 349 which are being offered at an introductory price of Rs 49 and Rs
129 respectively. This amount in addition to the repeat orders Swiggy expects through
this membership program is expected to increase revenue.

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ZOMATO’S BUSINESS MODEL

1. Restaurant pays zomato for being featured


2. User views restaurant
3. More customer footfall for the restaurant
4. Key business units
 App/website platform
 Customer service
 User and restaurant database
 Restaurant
staurant advertising
 Field team
 Data analysis

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HOW ZOMATO WORKS?

Zomato has been effectively growing since 2008. Its upward graphs and success
timeline is a result of its adequately creative business plan and a promising
revenue generation strategy. Here is a clear picture of how it works:

It enables users to search through a rundown of restaurants and select their most
loved food from their most loved cuisines via a website or mobile app.

Zomato is an astounding platform for restaurants to improve their market presence


and grow their user database.

Users can see special offers and deals by skimming through the community on the
channels.

Once the clients choose their order, Zomato gives them the leverage to pay using
different mediums.

The request received goes directly to the Zomato delivery guys. Then goes to the
specific restaurant.

The restaurant then confirms the order and packs it according to the requirements
given.

Zomato delivery personnel finish the last step by picking up the parcel from the
restaurant and deliver it to the user.

Meanwhile, Zomato likewise provides restaurants an opportunity to show and


promote their cuisines to a huge user base. Restaurants also pay to Zomato for
featured listings.

Zomato is a reliable partner for Restaurants hoping to grow their business by


expanding their reach and users via online branding.

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It has partnered with almost every one of the restaurants of the urban areas thus
offering its clients a wide variety of food items.

Zomato has built up a rating framework which puts restaurants in an order based
on their ratings and reviews. The clients rate the restaurants based on the quality
of the food, look and feel of their ambiance and their experience.

Its technology enhances the user experience by telling them the distance of a
particular place from user’s area, average food price, delivery charge and
estimated wait time for the order.

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HOW ZOMATO MAKES MONEY?

Zomato just released its FY18 yearly report, and the numbers are looking truly
strong. Zomato’s overall revenue was $74 million (Rs. 480 crores) in FY18, up
almost 45% from $51 million a year ago. Zomato now makes money from
different verticals. It has its original marketing business, and over the last couple
of years, has been aggressively advertising its food delivery services as well.
Recently, Zomato also launched two successful loyalty programs, Zomato Treats
and Zomato Gold. Here are the means by which it earns money:

ADVERTISING

Zomato started as an online restaurant aggregator and still earns the main part of
its revenues through its unique — advertising. Zomato gives restaurants, eateries,
bars and pubs a chance to advertise on its platforms through sponsored listings,
and earns the greater part its incomes through this channel. This contributes to a
62% share of its overall revenue in FY18.

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FOOD DELIVERY

Zomato had launched its food delivery services in 2015. In its debut year of
operations, food delivery was just 2% of its revenue. Zomato aggressively
extended its food delivery services since – in FY18 food deliveries present 30% of
Zomato’s overall revenue, turning into the second biggest source of income for the
organization.

OTHERS

Zomato launched its excellent subscription program Zomato Gold in India in


November 2017, after piloting it in UAE and Portugal. Zomato Gold crossed
26000 subscribers inside the initial seven-eight hours and in a split second turned
into a hit among the clients in India. Zomato says that Zomato Gold now adds to
12% of its monthly revenue.

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It implies that going ahead; Zomato Gold will probably turn into a noteworthy
revenue contributor for the organization. Similarly, Zomato Treats was launched in
April a year ago and offered individuals a free sweet when they ordered food from
selected eateries. It contributes to 0.5% of its total revenues.

ZOMATO GOLD

Zomato Gold is a paid service from Zomato that allows customers with Gold membership
get complimentary food and drinks while ordering from partner restaurants and bars.

Zomato Gold service is limited to dine-in orders only and not available for deliveries.

Zomato has announced that its premium service, Zomato Gold will now be invite only.
Zomato Gold allows customers to get complimentary food and drinks from over 2,100
restaurants across Pune, Hyderabad, Delhi NCR, Mumbai and Bangalore.

Zomato had launched the Zomato Gold paid service back in November last year with a
launch price of Rs. 999 for a year for the first 10,000 customers. The subscription price
has been increased from Rs. 999 to Rs. 2,399 for a year. Zomato has said that the
subscription price of Rs. 2,399 will be increased further, once the service goes invite-
only.

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ZOMATO PIGGY BACK

As the name suggests, it’s a reward points program for loyal users of the food delivery
service on Zomato. The iidea
dea behind this membership is to reward loyal users on our food
delivery service, whilst also doing our bit in helping others give a bit back to the society.

Every time you order food online on Zomato at any restaurant,, 10% of your order value
will be credited
ited back as Z Coins into your Zomato Piggybank. That’s right, that’s 10%
earned on every single completed order
order!! Using these points, you can pay 10% of the
value of the next order you place at a wide selection of exclusive top-rated
top restaurant
partners. You
ou even earn Z Coins in your Piggybank when you use Piggybank coins on a
particular order.

And this offer is valid along with any other offers running on Zomato. Any restaurant
funded discounts will continue to be available on Zomato Delivery.

Every time you


ou order food using your Piggybank, you get a chance to spread smiles
somewhere. You’d be able to do this because Zomato will donate ₹1 on your behalf to
Akshaya Patra Foundation, world’s largest NGO running mid
mid-day
day meal programs for
children. Yes, we donate ₹1 per order. As a customer, you don’t pay, but you enable us
to. So you are directly responsi
responsible
ble for the good deed that we do on your behalf.

One rupee per order is a lot – if all orders at Zomato were placed using Piggybank points,
we would be donating ₹1.25 crore a month on your behalf to Akshay Patra Foundation.
That changes the lives of millio
millions of children in our country.

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MARKETING MIX OF SWIGGY

PRODUCT

Swiggy is one of the popular delivery companies that supplies ordered food and beverage
items to its customers. It has created a single window and included a wide range of food
parlors and restaurants under its umbrella customer now can make a choice from visual
menus of restaurants in neighborhood and order online. Ordering food and getting a swift
delivery has become a hassle-free option from a customer viewpoint because of Swiggy.
The company has estimated seven hundred and fifty restaurants on its platform and
receives nearly seventy thousand orders on monthly basis. Swiggy is not accountable for
the quality of food as it only delivers from one hand to another.

In the case of complaints it usually takes up to the restaurant in question. The company
encourages promotions and ratings of restaurants for online delivery. Swiggy has
launched an On-Time-Delivery service titled Swiggy Select that guarantees cashback if
the order does not reach a customer in stipulated time-frame.

PLACE

Swiggy has spread its presence to few cities in India like Bengaluru, Gurgaon, Pune,
Chennai, Delhi, Hyderabad, Kolkata and Mumbai. It has its headquarters base at
Bengaluru in Karnataka and has established its corporate offices at Hyderabad in
Telangana and Gurgaon in Haryana. It is a popular app that takes order for food delivery
from listed restaurants on its portal. Swiggy has set up a strong and widespread
distribution network to offer prompt and best results.

It has an exclusive fleet of personnel that includes services of nearly eight hundred
delivery people working on-field. They are involved in picking up orders from selected
restaurant and delivering it to customers. Delivery boys are equipped with Swiggy App
and smartphones that make tracking of a delivery throughout routeing algorithms easy.

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Swiggy has hired Shadowfax Technologies, a third-party delivery company, for part-time
distribution in Delhi and Bengaluru.

PRICE

Swiggy has an extensive workforce and this flexibility prompts it to allow its customer a
policy of no minimum order. This has increased its customer base to a great deal. Swiggy
was able to raise 2 million dollars in Series A funding from Accel Partners and SAIF
Partners. During Series B it raised 16.5 million dollars funding from an undisclosed
investment firm and Norwest Venture Partners. Swiggy has tie-ups with restaurants that
offer a minimum of 15% to 25% commission and this has helped it in increasing its
distributive channel and garnering better revenues. It also charges a minimum delivery
fee from its customer irrespective of a small or high amount order.

PROMOTION

Swiggy realizes the importance of a good marketing strategy and has adopted several
plans to create further brand awareness. It relies heavily on mouth publicity and a
satisfied customer is its greatest advertising tools as they recommend the brand to friends
and family. Swiggy has adopted online marketing strategy and has taken help of social
media platforms like Twitter, Facebook, YouTube and Pinterest via innovative and
interesting ad campaigns like #SingWithSwiggy and #DiiwaliGhayAayi.

Its Facebook page is very popular and active as it offers regular updates and encourages
active participation. Swiggy has launched innovative videos that have become very
popular amongst masses like Swiggy Goes International. The company runs contests to
encourage direct participation by customers through #SwiggyTuesdays and offers to
munch bag and coupons as rewards. Ahead of its launch in Mumbai city, it partnered
with popular Dabbawalas of Mumbai to get a better grasp of the situation and later used it
as a promotional strategy to gain brand exposure.

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MARKETING MIX OF ZOMATO

PRODUCT

Zomato is an app / website which shows restaurants and food menu to its users. Zomato
provides the user with the restaurant details, their images, rates, menus and even portal
for customers’ feedback where people can voice their opinions regarding the experience,
taste at a particular restaurant. This application helps the restaurants which do not have
their own websites. It is a good way to make their restaurant visible online without
making a site for their own. The main services in its marketing mix include Point of Sale
systems, Restaurant Search and Delivery, Table Reservations and management, White
label Apps and online ordering services. White label is the product or service produced
by a company (main company), and it is used by another company to rebrand it as if it is
made them. There is a discontinued product ‘Citibank-Zomato Restaurant Guide’ which
was a print version of the website.

PRICE

Zomato does not charge for restaurants to put their details on their application or website.
The restaurant advertising which Zomato does on their site or application is the major
source of their revenue. Restaurant advertising includes banners ads for restaurants which
gives them maximum visibility as soon as a person logs into the app or the site. Event
based advertising when restaurant hold an event and use Zomato as a medium to
advertise their event. There is a commission set on the ticket sales through Zomato. They
also provide consulting services to restaurants to where should the restaurant chains open
their next outlet. Zomato uses various analytical tools to analyze where the demand lies
and help them with the solution. The percentage revenue distribution can be summarized
as under; restaurant advertising- 85%, event advertising- 5%, event ticket sales- 15% of
the revenue.

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PLACE

Zomato, an online service is available on Windows platform, Android and iOS platform.
It is available in 25 countries which include India, Australia, USA, Chile, Malaysia,
United Arab Emirates, Portugal, South Africa and many more. The UI is user friendly
and has nine language options viz. English, Italian, Spanish, Portuguese, Turkish, Slovak,
Indonesian, Polish and Italian. Also they are active on various social platforms like
Facebook, Twitter, Pinterest and Instagram which are used to engage with customers.

PROMOTION

Zomato is known for its content marketing strategy. In content marketing they aim to
advertise extensively via images. These images require a glimpse, have an impact on
audience and offer pure entertainment. The content is always fresh with old sayings,
messages delivered in a unique way in line with the service of Zomato. The social media
is an important channel to market their services. Their posts, messages are always some
simple industry jargons that is targeted at different audience segments. Along with posts
and messages, Zomato has collaborations with Paytm, Uber, Food Bloggers which
display Zomato as an option for any food related queries customers search on these
applications.

27
SWOT ANALYSIS OF SWIGGY

STRENGTHS

 Fast delivery: - Swiggy is always know for its delivery. It has always taken care of
their customers by delivering their order in time.

 Sensible complete image: - We think of ordering food the first name which clicks is
swiggy. It has developed a clean and crystal image among customers.

 Trained folks for creating delivery: - Swiggy has well trained their team to march in
market.

 Wide selection of eating place offered: - The main usp of swiggy is that is provides a
wide range of options from various places

 Neat packing: - Swiggy delivers food with clean and hygienic packaging.

WEAKNESS

 Location based restaurant finder: - Through swiggy you only order food in certain
radius location so the location matters for one to order online.

 Marketing and brand awareness: - Swiggy needs to rework on their branding. they
need to create some more marketing strategy to sustain in the market.

 Delivery charges: - Swiggy charges delivery charges for orders below rs.250.

 Menu and app price difference: - Due to lack of communication between the
restaurant owner’s and swiggy the updated menu of the restaurant is not uploaded and
this creates misunderstanding in the minds of customers.

28
OPPORTUNITIES

 Pioneer in food delivery business: - Swiggy was the first platform to introduce online
delivery in the market .they have shown new way to home-delivery with minimal
charges.

 Growing market place for potential customers: - Swiggy has shown the potential to
rise and grow in the market.

 Increase in market share: - A little rebranding can re grow them in the market.

 Value effective and sensible quality food: - They need to increase their zonal
restaurant base to compete in the market.

 Give higher service: - Delivery should me quicker and no delivery charges.

THREATS

 Increasing health consciousness: - Consumer’s nowadays have become very much


health conscious and have a planned diet plan for the day.

 Increasing potential competition: - Though swiggy was the first one to enter the
market now there and many potential competitors always competing to increase
market share example – zomato, uber eats, food panda, etc.

 Negligence of potential competitors: - With increasing competitors in the market


swiggy must take care of its customers and also communicate with the restaurant
owner’s to sustain in the market.

29
SWOT ANALYSIS OF SWIGGY

30
SWOT ANALYSIS OF ZOMATO

STRENGTHS

 Employs aggressive and innovative marketing strategy: - zomato which was initially
only a restaurant locator platform has also entered the online food delivering business
and has created potential customers through its aggressive and innovative marketing
strategy.

 Simple and user friendly interface: - The main responsibility of every brand is to
provide user friendly approach to its customers and zomato is known for its branding
and marketing strategies

 Trained people for faster delivery: - Zomato has a very well trained delivery staff to
march in market.

 Covers wide range of restaurant across the world: - Zomato is now present in 23
countries and around 10000 cities.

 Number of users: - Zomato has a huge number of users using their app. At the same
time, the site also has 90 million visitors a month approximately. With so many users
following the app and site, there are more reviews and hence more chances to find
better restaurants.

WEAKNESS

 Security issues for the app: - A major issue for Zomato in the past has been some
security issues due to which the app was hacked and at least 17 million users data was
copied. Such security issues are a nightmare for internet companies.

31
 No customization for each target market: - zomato has the standard interface and
system in ever country because of which there is no customization option for the
target market.

 Still a lot of expansion required: - Considering that the app has established in 24
countries, there is good expansion. But at the same time, the app has been started 7
years back and with the amount of funding available for Zomato, the expansion can
be much faster. It is allowing other services to establish themselves in this niche
before it reaches their country.

OPPORTUNITIES

 Further expansion: - The number 1 opportunity for Zomato is to expand to more


countries and establish its base faster. Service industry has a major problem that
services can be copied very fast and very easily. As a result, it is critical for Zomato
to establish and expand itself faster.

 More acquisitions: - There are and were many small players in this space. Zomato can
acquire several of its competitors and at the same time, it has to keep an eye on the
tech industry and acquire any tech innovation it can get its hands on to keep on rising.

 Cloud restaurants: - Zomato is coming up with the concept of Cloud restaurants


wherein restaurants will not have to get a physical space to actually sell their
food products. Instead, they can sell from Zomato.

 Creating a community: - Zomato does have a huge following but the users do not
interact with each other. Creating a forum and a community out of the users already
following Zomato can be a huge benefit for the brand.

32
THREATS

 Google’s schema module: - One of the major threats Zomato faces right now is the
Schema module of Google wherein google locations itself is getting in restaurant
recommendations. Even google homepage shows the google maps page where you
can search for restaurants within your locality. Google being such a big brand,
zomato faces huge competition from them.

 Market followers and challengers: - In the service industry, it is very easy to replicate
the success of another service product or offering. Similarly, marketing followers and
challengers can slowly take away the market share of Zomato.

33
A COMPREHENSIVE ANALYSIS OF MARKETING
STRATEGY OF SWIGGY

SWIGGY – PRICING STRATEGY

COMPETITIVE PRICING

SWIGGY

PRICE DISCOUNTS GRAB ON COUPONS 23 COUPONS


AND ALLOWANCE

PROMOTIONAL FIRST TIME ORDER USER WILL GET A


PRICING CASHBACK OF 20% ON
FIRST SWIGGY ORDER
PAID VIA PAY TM UPTO
RS. 75

DIFFERENTIATED DELIVERY CHARGES THE COMPANY


PRICING CHARGES RS 30-40 AS
DELIVERY FEE ON THE
ORDERS WHICH ARE
BELOW RS. 150-250,
WHICH VARIES ACROSS
DOFFERENT CITIES

SETTING THE COMMISSION EARNED 10-15% OF THE ORDER


PRICE FROM RESTAURANT VALUE PLACED

34
STP PROCESS

SEGMENTATION

Segmentation of swiggy is done based on the attributes below -

1. Demographic segmentation

 Age
 Lifestyle
 Gender
 Culture
2. Geographic segmentation
3. Behavioral segmentation
4. Psychographic segmentation

TARGETING

Target group is made of go – getters with a zeal of life. While they may not have the
time to plan their meals, they still want the best and choicest food options delivered at the
touch of the button. The targeting group are-

1. 20-30 years old


2. College students
3. Working professtionals
4. e-commerce savvy
5. people who are living away from their hometown.

35
POSITIONING

The positioning is explained by POD’s and POP’s of Swiggy compared to its


competitors.

1. Point of difference (POD’s)


 Quicker delivery time
 Different business model
 Private fleet
 COD available.

2. Points of parity (POP’s)


 Similar services
 Similar restaurant listings
 Unstable market base
 Branding techniques

36
MARKETING INSIGHTS

ONLINE MARKETING

DIGITAL/SOCIAL
SOCIAL MEDIA MARKETING

FACEBOOK ADVERTISING

Facebook advertisements are basically used to reach out a large target audience through
proper search engine optimization a company can reach its target audience through
facebook ads and promotion where facebook promotes the company’s products.

Swiggy has a very good hold on facebook started in 2015 swiggy has targeted a wide
audience through proper allocation of resources swiggy has around 870000 followers on
its page and 864000 people who like the page.

37
INSTAGRAM POSTS AND STORIES

Encouraged by the positive results, Swiggy invested further in ads in Instagram


Stories. The brand put together appealing food imagery with enticing copy
co in a
vertical full-screen
screen format for an immersive experience. Swiggy then ran the
Instagram Stories campaign over 3 months, reaching out to new potential users in
the 15 cities where Swiggy operates.

Swiggy was one of the first in India to adopt ads in Instagram Stories, and has
successfully attracted many new app users. Today, the ads in Stories placement
makes up 10% of its marketing mix on Facebook, Instagram and Audience
Network. The campaign, which ran between January 11–March
March 31, 2018, resulted
in:

 30% lower cost per install using Instagram Stories (compared to other
campaigns)

 17% increase in app installs using Instagram Stories (compared to other


campaigns)

38
TWITTER

Through twitter swiggy promotes its brand in most efficient way. Through twitter it
promote the swiggy campaigns, swiggy events, customer experience and also uses twitter
to introduce new offers and discounts to consumers
consumers.

Swiggy has around 14.7k tweets on its account with 66.5k people following its page and
5.5k likes are added to itss pages

39
EMAIL ADVERTISING

Swiggy, India's largest food ordering and delivery platform created a new record in Email
Marketing by achieving a Click Through Rate (CTR) of 7%, Open Rate of 25% on a user
base of millions. With the average industry standard being 1-1.5%, Swiggy's campaign
has set a new benchmark in Email Marketing.

40
TELEVISION MARKETING

Among the reams of IPL ads rolled out, if there is one ad that is sure to make you chuckle
without in-your-face advertising, it is Swiggy’s gulab jamun ad which shows an old man
ordering and relishing a gulab jamun without letting his wife know. With simple insight
and its brilliant execution, Swiggy's nimble approach has helped reinforce that if a brand
tells a story well, it is sure to sell. Sticking to this truth, the brand witnessed a 25%
growth in orders during IPL.

Swiggy has garnered significant growth in orders and new user acquisitions post the IPL
season. The brand also shared that there has been over a 10X increase in consumers
searching for gulab jamuns on the platform post the ad.

41
OFFLINE MARKETING

HOARDINGS/ BILLBOARDS

Swiggy has very attractive and eye catching hoarding to create a brand image in the mind
of consumer.

PRINT ADS

Newspapers, magazines, pamphlets are the print m


media
edia used to market swiggy.

42
STORE MARKETING

All the stores which are partners with swiggy have these types of stickers, tapes and
hangers in which swiggy advertises itself.

43
A COMPREHENSIVE STUDY OF MARKETING
STRATEGY OF ZOMATO

ZOMATO – PRICING STRATEGY.

COMPETETIVE PRICING

ZOMATO

PRICE DISCOUNTS AND GRAB ON COUPONS 4 COUPONS


ALLOWANCE

PROMOTIONAL FIRST TIME ORDER GET 15% OFF UPTO


PRICING RS.100 ON YPUR FIRST
ORDER WITH THE
CODE EATIN WHEN
YOU PAY ONLINE

DIFFERENTIATED DELIVERY CHARGES NO DELIVERY


PRICING CHARGES

SETTING THE PRICE COMMISSION EARNED 10% OF THE ORDER


FROM RESTAURANT VALUE PLACED

44
STP PROCESS

SEGMENTATION

Segmentation of Zomato is done on the basis of attributes below:-

1. Demographic segmentation

 Age
 Lifestyle
 Gender
 Culture
2. Geographic segmentation
 North
 South
 East
 West
3. Behavioral segmentation
4. Psychographic segmentation

TARGETING

Target group is made of go – getters with a zeal of life. While they may not have the
time to plan their meals, they still want the best and choicest food options delivered at the
touch of the button. The targeting group are-

1. 20-30 years old


2. College students
3. Working professionals
4. e-commerce savvy
5. people who are living away from their hometown.

45
POSITIONING

The positioning is explained by the POD’s and POP’s of Zomato compared to its
competitors.

1. Point of difference (POD’s)


 Quicker delivery time
 Different business model
 Private fleet
 COD available.
 Online payments and cashbacks

2. Points of parity (POP’s)


 Similar services
 Similar restaurant listings
 Unstable market base
 Branding techniques

46
MARKETING INSIGHTS

ONLINE MARKETING

DIGITAL/SOCIAL MEDIA MARKETING

FACEBOOK ADVERTISING

Facebook advertisements are basically used to reach out a large target audience through
proper search engine optimiz
optimization
ation a company can reach its target audience through
facebook ads and promotion where facebook promotes the company’s products.

Zomato has a very reputed on facebook started in 2008 zomato has targeted a wide
audience through proper brand positioning and well planned marketing strategy. Zomato
has around 16 lakh followers on its page and 16 lakh people who like the page.

47
INSTAGRAM POSTS AND STORIES

Zomato has around 194k followers and updates it page everyday and attracts new
consumers

TWITTER

Zomato as its present in 23 countries has around 1.41 million followers

48
EVENT BASED MARKETING

In event based marketing zomato has a its own food and entertainment carnival known as
‘ZOMALAND’ where in zomato organizes the events in different cities and brings up
entertainers from the film industry and have an event of dance, music, stand up comedy
sets, and many more exciting events.

Recently zomato had their event in Bengaluru, India. The zomaland festival had a
audience of around 15k people participating in the event. There were stunning attractions
making every corner picturesque, incredible entertainment that set an electrifying vibe,
and above all, great food curated into multiple cuisine
cuisine-based zones.

49
OFFLINE MARKETING

HOARDINGS AND BILLBOARDS

Zomato has a very unique way of broadcasting itself in market via the offline marketing
strategies where the ads and the hoarding are very short and on point marketing is done of
the company. The ads and hoarding basically include small statements, phrases, movie
dialogue, and many such taglines to attract the customer towards the brand.

Though billboard advertising is very expensive thng but a brand to create a image in the
mind of a customer it is very necessary to attract them by these kind of marketing.

50
PRINT ADS

Print ads basically a those form of advertising media where pamphlets, newspapers,
magazine, and many such out of home advertising is done.

Zomato has its company broadcasted everywhere in newspaper, magazine, pamphlets,


and all other types of out of home(OOH) advertising. Zomato basically uses this print ads
to introduce events, new products offers, discounts, and coupons to attract target
audience.

51
FIVE STAGE BUYING PROCESS OF SWIGGY

According to a survey done, 60% of the people have used swiggy

PROBLEM IDENTIFICATION

Why did you start using?

 Easy, convenient and accepts online payments and also has flexible cash on delivery
option

 Some of the restaurant did not have the delivery option which was available through
swiggy.

 Convenience of ordering food at doorstep

 Online ordering an efficient way of getting food delivered and also live tracing
options available which helps in tracing the order.

 Many offers and discounts which attract people to order online through swiggy

 User friendly interface of its app and website which enables to attract a larger target
audience.

 Wide variety of restaurants.

52
INFORMATION SEARCH

Information search about how many people know about swiggy and where they have
seen them.

EVALUATION OF ALTERNATIVES

53
PURCHASING
RCHASING DECISION

Nowadays, people have changed their buying pattern and are looking for convenience
rather than price in ordering food online through swiggy. Swiggy is know for its
convenience and after convenience its price and variety of options.

POST PURCHASE EVALUATION

What did consumers like about swiggy?

 Value for money

 Options of restaurant

 Easy and convenient to use

What problems did consumers face using swiggy and its services?

 Need to add more restaurant and should minimize the delivery char
charges
ges

54
FIVE STAGE BUYING PROCESS OF ZOMATO

PROBLEM IDENTIFICATION

Why did you start using zomato?

 zomato was the first application of its types where restaurants had tied up with
zomato and zomato used to display the restaurant on its application.

 Zomato starting
tarting as a restaurant finder was only in listing restaurants and reviewing
them and then after few years entered into online food ordering and delivery business

 Through zomato it became easy for restaurants who had delivery problems

 Zomato does not charg


charges any delivery charges from consumers.

 User friendly interface for ordering online has helped gain competitive advantage in
the market

 Convenient and easy delivery with the time promised and live order tracking.
tracking

INFORMATION SEARCH

55
EVALUATION OF ALTERNA
ALTERNATIVES

PURCHASING DECISION

What do you consider while ordering from zomato?

14
12
10
8
6
4
Series1
2
0

56
POST PURCHASE EVALUATION

What did you like about zomato?

 Restaurant listings

 Live order tracking

 Zomato gold

What problem did consumers face using zomato and its services?

 Application glitch

 Need to add more restaurants

57
DATA ANALYSIS AND INTEPRATATION

There were total of 33 respondents. There were mainly 5 age groups i.e 10.-20,
10. 21-30,
31-40, 41-50, 50-above.

The majority of people were from age group 21


21- above.

The age group 10-20


20 came second

The third age group is 31


31-40 with around

The fourth age group is 50 and above.

58
Out of 33 respondents 90.9%
.9% of people order online

Only 9.1% do not order through online platform

59
In the total of 33 responden
respondents
ts 72.7% of the people order through online delivery platform

27.3% people order from Local restaurant delivery.

60
Out of 33 respondents

16 people in the whole survey order food from swiggy.

17 people in the whole survey order food fro


from zomato.

Only a single person in the whole survey order food from food panda.

10 people from the whole survey order food from uber eats

2 individuals order from other online delivery platform

61
Out of 33 respondents

6.1% people have seen swig


swiggy advertisement on newspaper

42.4% individuals have seen swiggy advertisements on television

78.8% which is the highest has seen swiggy advertisements on social media

9.1% of individuals has seen swiggy advertisements on billboards.

62
Out of 33 respondents

6.1% people have seen zomato advertisements on newspaper

36.4% people have seen zomato advertisements on television

81.8% people have seen zomato advertisements on social media

12.1% people have seen zomato advertisements on billboards

63
Out of 33 respondents,

60.6% people have found the coupon code and offers provided by swiggy and zomato beneficial

33.3% people find that only sometimes the coupon codes and offers are beneficial

And the remaining amount of percentage think that coupon codes and offer are not at all
beneficial

64
When asked about the customer service provided by swiggy, zomato and other companies it
was found that

45.5% people find zomato having better customer service in the market

33.3% individuals find


nd swiggy has better customer service

And remaining 21.2% individuals find other competitors have better customer service

65
33 respondents who were asked to rate swiggy between 11-5 have responded

14 individuals have rated 4 star to swiggy

8 individuals
dividuals have rated 5 star to swiggy

8 individuals have rated 3 star to swiggy

And only 3 individuals have rated 2 star to swiggy

66
33 respondents who were asked to rate zomato between 11-5
5 have responded

11 individuals have rated 4 star to zomato

7 individuals have rated 5 star to zomato

12 individuals have rated 3 star to zomato

And only 2 individuals have rated 2 star to zomato


zomato.

67
CONCLUSION
The food delivery landscape has been undergoing significant change in the last few years.
It is now possible to get fully prepared meals from our favorite restaurants delivered to
our door, making it convenient and time saving. This has led to massive growth of the
food delivery companies and other related industries, such as Zomato, Swiggy, UberEats
etc to capitalize on the need for delivery solutions for restaurants. Online food delivery
apps , an application as a search engine for all food delivery apps are efficient and
effective in real-time as you can have your any of your favorite restaurant foods at the
comfort of your home or your office desk.

My findings indicate that Young customers are more likely to use online, mobile or text
ordering. Young customers place a greater value on convenience and speed than older
users do. And also that customer prefer and are aware of and find multi restaurant mobile
applications and websites like Zomato, Swiggy etc more convenient to order than
Individual mobile application or websites.

Swiggy has developed a product for the efficient processing and management of online
food industry which deliver food at customers door step. This will boosts the business of
the restaurants and hotels. This website application is capable to fulfill the customer’s
requirements as well as to manage restaurant’s workload.

But since every coin has two sides, even online food ordering has few
disadvantages/challenges that are faced by its customers. Food arriving cold, packaging
not upto the mark are some of the issues faced by the customers followed by Mobile
application not working or loading, not user friendly and also difficulty in using them.
The interface of the app needs improvement along with customer care services.

Inspite of these problems faced, many of them yet opt for online food ordering through
swiggy and other such food delivery apps over other ways of food ordering because of its
various advantages and this is the reason this industry is booming. To conclude,
customers will appreciate not having to wait in long queues and getting their food
delivered on time at their convenience.

68
BIBLIOGRAPHY

 www.slideshare.net/search/slideshow?
 www.slideshare.net/search/slideshow?searchfrom=header&q=ZOMATO&ud=an
y&ft=all&lang=**&sort=
 www.swiggy.com/
 www.prezi.com/p/o2844tr6tqal/swiggy-a-comprehensive-analysis-of-marketing-
strategy/
 www.livemint.com/
 www.afaqs.com/news/story/53533_Zomato-has-always-been-a-very-limited-cost-
marketing-player
 www.iide.co/zomato-digital-marketing-strategy/
 www.exchange4media.com/advertising-news/swiggy-unveils-its-first-ever-
integrated-campaign-87876.html

69
ANNEXURE
Q. Age

 10-20
 21-30
 31-40
 41-50
 50 & Above

Q. Do you order food online?

 yes
 no

Q. From where do you generally order food?

 Online delivery platform


 Local restaurant delivery

Q. On which online ordering platform do you often order food?

 Swiggy
 Zomato
 Food panda
 Uber eats
 Others

Q. On which platform do you often see swiggy advertising?

 Newspapers
 Television
 Social media
 billboards

Q. On which platform do you often see zomato advertising?

 Newspapers
 Television
 Social media
 Billboards

70
Q. According to you, are the coupon code and offers provided by swiggy and zomato are
beneficial ?

 Yes
 No
 May be

Q. Which brand provides better customer service?

 Swiggy
 Zomato
 others

Q. On the scale of 1-5, rate for swiggy?

 1
 2
 3
 4
 5

Q. On the scale of 1-5, rate for zomato?

 1
 2
 3
 4
 5

71

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