Beruflich Dokumente
Kultur Dokumente
(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
DATE OF SUBMISSION
____________________ ________________________
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
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
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.
1
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.
2
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.
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.
3
VALUES AT SWIGGY
MISSION
4
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.
5
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.
6
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.”
7
MISSION
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.
8
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.
9
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.
10
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.
11
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.
12
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.
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.
13
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.
14
ADVERTISING
Swiggy started earning advertising revenue via two models – Banner promotions and
priority listing of restaurants.
The only limitation is that Swiggy does not share customer data, so the restaurants rely on
generating raw revenue through higher visibility only.
Higher up the list the restaurant is displayed, higher is the cost the restaurant has to pay.
15
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.
16
ZOMATO’S BUSINESS MODEL
17
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.
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.
18
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.
19
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.
20
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
21
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.
22
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.
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.
23
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.
24
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.
25
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.
26
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.
THREATS
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.
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
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.
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
COMPETITIVE PRICING
SWIGGY
34
STP PROCESS
SEGMENTATION
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-
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POSITIONING
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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.
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INSTAGRAM POSTS AND STORIES
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)
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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
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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.
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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.
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OFFLINE MARKETING
HOARDINGS/ BILLBOARDS
Swiggy has very attractive and eye catching hoarding to create a brand image in the mind
of consumer.
PRINT ADS
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STORE MARKETING
All the stores which are partners with swiggy have these types of stickers, tapes and
hangers in which swiggy advertises itself.
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A COMPREHENSIVE STUDY OF MARKETING
STRATEGY OF ZOMATO
COMPETETIVE PRICING
ZOMATO
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STP PROCESS
SEGMENTATION
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-
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POSITIONING
The positioning is explained by the POD’s and POP’s of Zomato compared to its
competitors.
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MARKETING INSIGHTS
ONLINE 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.
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INSTAGRAM POSTS AND STORIES
Zomato has around 194k followers and updates it page everyday and attracts new
consumers
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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.
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OFFLINE MARKETING
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.
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PRINT ADS
Print ads basically a those form of advertising media where pamphlets, newspapers,
magazine, and many such out of home advertising is done.
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FIVE STAGE BUYING PROCESS OF SWIGGY
PROBLEM IDENTIFICATION
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.
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.
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INFORMATION SEARCH
Information search about how many people know about swiggy and where they have
seen them.
EVALUATION OF ALTERNATIVES
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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.
Options of restaurant
What problems did consumers face using swiggy and its services?
Need to add more restaurant and should minimize the delivery char
charges
ges
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FIVE STAGE BUYING PROCESS OF ZOMATO
PROBLEM IDENTIFICATION
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
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
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EVALUATION OF ALTERNA
ALTERNATIVES
PURCHASING DECISION
14
12
10
8
6
4
Series1
2
0
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POST PURCHASE EVALUATION
Restaurant listings
Zomato gold
What problem did consumers face using zomato and its services?
Application glitch
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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.
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Out of 33 respondents 90.9%
.9% of people order online
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In the total of 33 responden
respondents
ts 72.7% of the people order through online delivery platform
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Out of 33 respondents
Only a single person in the whole survey order food from food panda.
10 people from the whole survey order food from uber eats
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Out of 33 respondents
78.8% which is the highest has seen swiggy advertisements on social media
62
Out of 33 respondents
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
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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
And remaining 21.2% individuals find other competitors have better customer service
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33 respondents who were asked to rate swiggy between 11-5 have responded
8 individuals
dividuals have rated 5 star to swiggy
66
33 respondents who were asked to rate zomato between 11-5
5 have responded
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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.
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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
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ANNEXURE
Q. Age
10-20
21-30
31-40
41-50
50 & Above
yes
no
Swiggy
Zomato
Food panda
Uber eats
Others
Newspapers
Television
Social media
billboards
Newspapers
Television
Social media
Billboards
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Q. According to you, are the coupon code and offers provided by swiggy and zomato are
beneficial ?
Yes
No
May be
Swiggy
Zomato
others
1
2
3
4
5
1
2
3
4
5
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