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SWIGGY

It is a food ordering and delivery company based out of Bangalore, India. Swiggy was inspired by the
thought of providing a complete food ordering and delivery solution from the best neighbourhood
restaurants to the urban foodie. A single window for ordering from a wide range of restaurants, we have our
own exclusive fleet of delivery personnel to pickup orders from restaurants and deliver it to customers .
Having our own fleet gives us the flexibility to offer customers a no minimum order policy on any restaurant
and accept online payments for all partner restaurants that we work with. Our delivery personnel carry one
order at a time which ensures we get reliable and fast deliveries."

ZOMATO

Zomato is an Indian restaurant search and discovery service founded in 2008 by Deepinder Goyal and
Pankaj Chaddah. It currently operates in 23 countries, including Australia and United States. It provides
information and reviews on restaurants, including images of menus where the restaurant does not have its
own website.

Features of the app

 Users can choose from more than 4000 restaurants
 Saves the order history and addresses
 Customer support team with strength of more than 100
 No extra fees charged from customers
 Automatically reads the location
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INTRODUCTION
Online food industry in India today and in future
With Swiggy getting $100 million in funds and Zomato $200 million a week ago, the food delivery sector
seems to be poised for growth again after a bleak couple of years.
From the latter half of 2015 through to 2016 and also the first half of 2017, a number of food-tech startups
shut down. Remember TinyOwl, SpoonJoy, Eatlo among others? But the industry emerged with new
learnings on account of several startups shutting down and with improved focus on consumer satisfaction
and key geographic areas, said RedSeer Consulting.

Zomato and Swiggy have had steady growth throughout 2017 with improved operations by reducing
delivery costs and time and innovations like cloud kitchen, said industry experts. The market has been
growing steadily in the last four quarters and the consistent performance by Zomato and Swiggy has led to
investor confidence and the investments, they said.

In the latter half of 2017, ride-hailing app Ola (owned by ANI Technologies) decided to get into the food
delivery space again, this time around by acquiring German-firm Delivery Hero’s Foodpanda India. The
pendulum seemed to be swinging positively since then for the food delivery sector in India.

RedSeer Consulting predicted the food delivery sector is on course to hit $1.5 billion by the end of 2018 and
$2.5-3.5 billion by 2021 in GMV terms. The sector valued at $750 million is expected to grow well. The
food-tech industry is growing at a 15 percent quarter-on-quarter rate and the players are moving towards
self-fleet to have a better overall control on the consumer experience, it said. Now Swiggy, the food ordering
and delivery platform, has raised $100 million in Series F funding, its largest round yet. “With this funding,
we will further invest in building differentiated offerings, plugging the white spaces in the ecosystem, and
developing our technology while keeping superlative customer experience at the core,” said Sriharsha
Majety, CEO, Swiggy.

A week ago, Zomato raised $200 million from Ant Small and Micro Financial Services Group,
the Mint valuing the company at about $1.1 billion.
"The amount invested in Swiggy and Zomato is significant and I am sure six months later, there will another
similar amount being raised," said Arvind Singhal, chairman and managing director of Teknopak Advisors.
But Singhal predicts that six months later, there will another similar amount of funds being raised.
“However, let’s not forget UberEats is also there. There are quite a lot of others too in the game but Swiggy,
Zomato and Foodpanda currently lead the pack,” he said.

Is the food delivery sector looking bright again? Looks like the food tech sector is back in vogue, said Paula
Mariwala, Partner, Seedfund and Co-Founder, Stanford Angels. With a lot of gunpowder now available in
the hands of the major three players in the sector—Foodpanda, Zomato and Swiggy—growth is expected to
be exponential. Mariwala is surprised though at the funding that food delivery startups have been getting
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recently. “I thought people are waiting and watching before investing in the sector. But for sure, the focus is
back on profitability. There is a matrix put on profitability. I am sure the funds have been on a caveat. With
the kind of funding given, I expect consolidation and focus on unit economics,” she said.

This is a moment for the industry to be more aggressive, said Rohan Agarwal, engagement manager at
RedSeer Consulting. It will pan out in two ways. The market will grow beyond the top 5-6 metros and more
markets will open up in places like Ahmedabad, Jaipur, Kochi, Chandigarh among others, he said. This will
require capital and that is where the funding received by the players will help, he said. "The funding will be
utilised in the expansion of the new markets and garnering higher volumes by innovating the model,"
Agarwal said.

The three main players in the food delivery sector have now recapitalised and raised money. "Rightfully
then, food reviews will be a big bet in India and those who are adept in terms of logistics, technology, etc
will lead," said Singhal. All the three players have technology in place in the context of merchandise and
exclusive labels which distinguishes one from the other, he pointed out.

In fact, Zomato and Swiggy have been extensively using data and building cloud kitchen verticals. These are
known as mini-kitchens that only service online food delivery where chefs from other partner restaurants
can come and cook.

Though having deep pockets will help these players to scale up soon, it will widen the space between the
competitors, said Harish HV, partner, Grant Thornton. But what is important is to provide efficiency and
reach, he said.

Echoing Harish HV, Devangshu Dutta, chief executive, Third Eyesight, a consulting firm said, in the final
analysis what the customer and the restaurant on board any of these food tech platforms are looking for is
[Link] consumers can look out from the ecosystem is better pricing, variety and a wider choice and
better or quicker and reliable delivery. Each food delivery operator will have to offer slightly different
merchandise with brands and discount. There may be an overlap of restaurants and kitchens in all three food
delivery startups but service will be the differentiator.
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Mission and Vision of Zomato

The mission is as simple that nobody has a bad meal! Life is too short to miss out on fun and food.

Zomato is used by millions every day to decide where to eat in over 10,000 cities across 24 countries. In a
few years, we should be able help point you to a great place to eat no matter what part of the world you're in.

Mission and Vision of Swiggy

We are all about food.

Our goal is to revolutionize the way India eat.

About the topic

Basically in this project we will try to find how Zomato and swiggy are doing business and what are the up
streams carried by this two business entities. We will conclude what are their marketing spends and how
they are converting their business into profit by giving smile to their customers and what are the values and
beliefs they are generating for their customers as well as the people who are working with them. We will
also try to put up some question in front of the users that why they are believing in them

Objectives of study

 To find out usage pattern of rest.

 To find out service level of Zomato and Swiggy.
 To find out their upcoming strategy.
 To find out how they are dealing with issues and standing on customer expectations.
 To find out their profit margins as based on commission or incentives.
 To find out whether the consumers are accepting them or not.
 To find whether they are going through their mission and vision and not.
 To find out their future sustainability
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Executive Summary

The dissertation was aimed towards the analysis of marketing spend of restaurants for Zomato and Swiggy a
food ordering app the main objectives of this project were:-

 Identifying the target audience

 Where to find the target audience.
 How to reach them in the most effective manner.

For me, I went to different restaurants and localities to work upon and understanding the consumer
behaviour and food ordering patterns of individuals. I used an questionnaire to find out the working level of
Zomato and Swiggy. Questionnaire was prepared on certain parameters such as:-

 Age group
 Lifestyle
 Frequency of ordering food
 Average amount spend per meal
 Preferred cuisines
 Entertainment preferences
 Preferred restaurants.

Introduction about the sector

Food delivery market in India worth over 12.5 billion, Online food delivery is contributing more than 7% to
this market. More than 50,000 restaurants in India provides home delivery, indicates a very high potential
and untapped market in online food delivery space.

Players in the industry broadly classified into three categories..

 Fully integrated: Those who process food and delivers (Dominos, McD etc)
 Delivery as a Service
 Aggregators: Provides a platform for customers where they could discover restaurants, navigate
through menus of different cuisines, and select the food.
 Delivery made by the restaurant. In short, aggregates information about food for customers and
function as an order generating channel for restaurants. (Zomato, FoodPanda etc)
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Reasons for growth in online food delivery industry:

 Increase in disposable income and deeper internet penetration of customers (web/mobile) .
 Restaurants tying up with online food delivery platforms claim to get a profit margin of more than 2
to 3% than dine-ins .

Driving factors

Greater awareness and disposable income along with deeper Internet penetration, availability of more
payment options, long working hours and erratic lifestyle are contributing online food ordering business. At
the same time, with more and more people wanting healthy food, or food similar to home cooked meals that
too easy on the pockets is leading to the rise of online food business in the country.

Nixon Dsouza, Brand Manager, Nom Nom, says, “Penetrating through every commercial aspect humans
have started using technology for everything and food ordering is one such developments”.

Future of the business

As per the industry experts, the overall food delivery business is more than USD 7 billion to which online
food ordering contributes 5-7 percent and is growing 40 percent per year than dine-in culture. The margin is
however two to three percent higher in deliveries. According to Ritesh Dwivedy, MD and CEO, JustEat,
“The future seems bright for the online food business in India, as we are trying to catch up with developed
markets where 30 percent of delivery takes place through online channels.”

Major players

Online food ordering is at an exciting phase now. Many local and national players are joining the space. In
fact the foreign brand JustEat has also tied up with the Bangalore based HungryZone. Foodpanda which
started its business from Delhi-NCR is the major player in the segment followed by JustEat and TastyKhana,
a Pune initiative. Besides, DeliveryChef, BigBite, Titbit and eatallnite are the emerging players in the online
food delivery market which is estimated to grow at 40 percent annually.
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Benefits

Placing food orders online benefits consumers, restaurants and the food delivery players. For consumers, it
is not only an easy and convenient tool but it is also a great platform to avail good discounts.

Vasul Chauhan, Restaurant Manager, Smokeys Barbeque & Grill, said, “We have partnered with JustEat to
explore new business opportunities and give a push to our already successful home delivery format but till
now the response is not overwhelming.”

However, Dwivedy is of the opinion that, “The profit margin is 2-3 percent higher in deliveries as compared
to dine-in these days”

Marketing strategies

Online food delivery platforms largely try to be present in all the channels that drive awareness. For
example, newspapers, television, hoardings and billboards to the social networking sites like Facebook and
Twitter, they advertise in all. Chadda explained, “We give about 15-30 percent discounts on ordering
through us. At the same time we have also organised several campaigns including the food gifting
programmes and buy one get one free deals.”

Competitors

 There are more than 20 Indian start-ups in online food delivery space.
 They faces tough competition from FoodPanda, Zomato,Swiggy, TinyOwl.
 FoodPanda and Zomato have got more funding compared to TinyOwl.
 Customer reviews states that app is more sleek and hassle free compared to other apps of same kind
 It concentrates on data and service more, whereas other Player’s like FoodPanda concentrate s more on
offers .
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Market Research
Market research is defined as “function that links the consumer, customer, and
public to the marketer through information- information used to identify and
define marketing opportunities and problems; to generate, refine, and evaluate
marketing actions; to monitor marketing performance; and to improve
understanding of the marketing process. Marketing research specifies the
information required to address these issues, designs the methods for collecting
information, manages and implements the data collection process, analyzes, and
communicates the findings and their implications.

Briefly it is a systematic design, collection, analysis, and reporting of data and

findings relevant to a specific marketing situation facing the company, allows
management to make the changes necessary for better results through adopting a
proactive approach. Therefore, if a company wants to know what type of
products or services would be profitable it should make a market research.
Furthermore, a comprehensive research will enable the company to know about
the product imperfections (if there are) and to know if it has been able to satisfy
customers’ needs. It attempts to provide accurate information that reflects a true
state of affairs. Due to market research the company can formulate a viable
marketing plan and estimate the success of its existing plan.
There are two main sources of marketing research information

Primary marketing research is collected for the first time if the

company has enough money to finance it, but in most case it is the second
more accurate one. It is original and collected for a specific purpose, or to
solve a specific problem. Primary research delivers more specific results
than secondary research, more expensive and time consuming, which are
an especially important consideration when the company is launching a
new product or service.

There are many ways to conduct primary research. By customizing tried -and true
approaches, focus groups, surveys, field tests, interviews or observation,
you can gain information about your target market. Primary research is
generally based on sampling techniques and requires statistical methodologies.
The sample size could be as small as 1 percent of the market and thus the
information and results gathered are highly accurate.
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Secondary marketing research or desk research is generally used when a

company considering, extending a business into new markets or adding
new services or product lines, because it already exist in one form or
another. This information is based on studies previously performed by
government agencies, chambers of commerce, trade associations, and
other organizations. There are number of sources available to the
marketers, which are the following: Business libraries, Public records,
Trade associations, Websites, National/international governments,
Informal contacts and Professional institutes and organizations. That is
why secondary research is relatively cheap, and can be conducted quite
quickly. However, its main disadvantage is that the information gathered
may be old and obsolete , therefore results of analysis may be inaccurate.

Marketing Research Procedure

Stage-1 Research Purpose:-
The first step in the procedure of market research is to define research purpose. Research purpose is usually
not very well defined or fully understood. The procedure of fully and accurately defining and understanding
research purpose always requires efforts. The research purpose is typically developed as result of
recognizing and understanding problem. This problem is usually generated by realization of fissure between
expected out come and the outcome in reality.

It is also important to define reason of problem that where that problem occurred. The problem definition is
the point on which the whole arrangement is formed

Stage-2 Research Objectives: -

Research objective is accurate report about required in sequence. It understands problem
statement more accurately and in more understandable way. Research objectives are designed in such a way
that chore of finding required information fully provide the research purpose.
Research objectives have three essential parts.
Research Question
The research question describes information required by organization accountable for decision making.
Research question represents the in sequence needs to obtained accordingly to research
purpose.
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Primary and Secondary Data analysis: -

There are two types of data analysis
Primary data is data that research needs to collect by himself more specific to research
conducted. Primary data is usually collected through questionnaire surveys, interviews, and focus groups
etc.
Secondary data is not first-hand data as primary research it is the data that already is available
like journals, books, articles, company records etc.
Qualitative and Quantitative Research: -
After selecting type of data required for research it is decided that what medium of data is
required. Research can be through quantitative or qualitative or both depending on the wish of
researcher.

Stage-5 Data Collection

After preparing questionnaire the next job is to practically get into filed and distribute
questionnaires among group of respondents. It can also be done through
On line surveys,
Phone conversations,
Face to face interviews, and
By post.
In larger scale marketing research full dedicated field team or person may be required in order.

Stage-6 Data Analysis

After gathering of data it is then procedures to derived results in order to change them in
conclusion, data analysis can be conducted with two methods manual or computer based data
analysis. There can be different types of mathematical formulas can be used on data that is
collected from questionnaires. It can also be checked for precision and soundness.

Stage-7 Reporting Results and Presentation

The Last and final part of research procedure is to write down in black and white whole project findings and
write report that replies that specific research question that was identified at initiation of research. Research
report also includes research loom adopted, design, collection and analysis of data together with all results of
data. This report should be in the form to be prepared for decision makers to be used in decision maker
procedure
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Sampling Design
Generally, a researcher employs sampling strategies in order to generate
statistics and generalize findings to a larger population. Sampling refers to the
process of selecting individuals from a larger group of people and drawing
conclusion that are “an accurate representation of how the larger group of
people acts or what they believe ”.

Simple Random Sampling

A simple random sample is one in which each member of the population has an
equal and independent chance of being included in the random sample. If the
sample is large, this method is the best way to obtain a sample representative of
the population. Simple random sampling approximates drawing a sample out of a
hat: Members of a population are selected one at a time, independent of one
another and without replacement; once a unit is selected, it has no further
chance to be selected. The steps in simple random sampling comprise the
following:
1. Define the population.
2. List all member s of the population.
3. Select the sample by employing a procedure where sheer chance determines
which members on the list are drawn from the sample.
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About Questionnaire
A questionnaire is a document designed with the purpose of seeking informa t ion
from the respondents.
Steps in Questionnaire:-
1. What is involved
The researcher defines the information that is being sought.
 Consider research objectives .
 Discuss with others in the field.
 Literature searches and wide reading on Literature searches and
wide reading on the topic.
 Review earlier questionnaires/scales or Review earlier
questionnaires /scales or instruments that may be available.
2. Drafting of questionnaire
Researcher takes the list of information they wish to obtain from
respondents and devises draft questions.
 Phrasing and design of questions affect the validity of the affect the
 validity of the information obtained.
 Sequencing the questions –background variables first, introduce
 each theme /topic area in separate sections
 Methods for coding the data
 Methods for analysis of the data
 Layout and presentation - make it easy to complete and present
professionally;
 Consider your audience - type face, font size, instructions, use of
 language (elderly respondents need instructions, use of language
 (elderly respondents need large font)
 Cultural and gender appropriateness .
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Advantages and Disadvantages of Questionnaire Design

Summary
 Questionnaires are useful tools if properly designed and administered and
Administered

 Well-constructed questionnaires can yield valuable and often novel

 information relatively inexpensively and often novel information

relatively inexpensively

 A questionnaire is a vehicle allowing communication between the

researcher and the subject between the researcher and the subject

 A good questionnaire is the product of testing and retesting

Where ever possible, construct or use a valid and reliable tool, or test its
validity and reliability.
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Methodology
Research objectives
Identifying the target audience: -The main objective of this
Dissertation is to identify the target audience for the online food ordering app. Mostly the target audience
which we found out includes students, working individuals, working married
couples and some home makers. These target audience generally tend to
order food through online portals due to their hectic working schedules,
ease of delivery, varieties of cuisines and ease of payment.
Where to find the target audience: - The next objective is to know
where we will get our target audience. Usually these target audience we
found out near small shops beside the companies where employees used to
come and hangout for sometimes, in restaurants and various hangout
places according to the areas allocated. Most of the target audience which
I found was near small tea shops and stalls.
How to reach them in most effective manner: - The next main
task is to know that how we can reach out to our target audience in the
most effective manner so that we can get our responses and at the same
time people can get to know about the app and its features. For this
purpose a small questionnaire was designed comprising of 10 questions so
that people don’t find it too long to fill.
Competitor analysis: - The last main objective is to identify the
competitors of this app like Food panda, dominos etc. And the services which these competitors are
providing to the customers which would help Zomato and Swiggy to make different strategies to capture the
market. These services include promo offers, cashback offers, delivery time and many other parameters.
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Types of Data Collection Methods

Primary research: Primary research is defined as factual, firsthand

accounts of the study written by a person who was part of the study. The
methods vary on how researchers run an experiment or study, but it
typically follows the scientific method. One way you can think of primary
research is that it is typically original research. In a nutshell, primary
research is original research conducted by you (or someone you hire) to
collect data specifically for your current objective. You might conduct a
survey, run an interview or a focus group, observe behaviour, or do an
experiment. You are going to be the person who obtains this raw data
directly and it will be collected specifically for your current research
need.

Secondary research: Secondary research is defined as an analysis and

interpretation of primary research. For instance, secondary research often
takes the form of the results from two or more primary research articles
and explains what the two separate findings are telling us. It involves
searching for existing data that was originally collected by someone
else. You might look in journals, libraries, or go to online sources like
the US census. You will apply what you find to your personal research
problem, but the data you are finding was not originally collected by you nor was it obtained for the purpose
you are using it for.
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Data Analysis Techniques

Analysis of data is a process of inspecting, cleaning, transforming, and

modelling data with the goal of discovering useful information, suggesting
conclusions, and supporting decision-making. Data analysis has multiple facets
and approaches, encompassing diverse techniques under a variety of names, in
different business , science , and social science domains.
Analysis refers to breaking a whole into its separate components for individual
examination. Data analysis is a process for obtaining raw data and converting it
into information useful for decision-making by users. Data is collected and
analyzed to answer questions, test hypotheses s or disprove theories .

Techniques for analyzing Quantitative data

Graphs: There are many types of graphs, but the most common and most
useful for the statistician are bar charts, histograms, and frequency
polygons. Each has two axes, the vertical axis (the y-axis) and the
horizontal axis (the x-axis), and labels to identify the variables and the
values, with tick marks showing where each indicated value falls along
each axis. A bar chart contains solid bars separated by spaces. It is a
good tool for displaying the distribution of variables measured in discrete
categories (e.g., nominal variables such as religion or marital status),
because such categories don’t blend into each other .

Histograms: Histograms, in which the bars are adjacent, are used to

display the distribution of quantitative variables that vary along a
continuum that has no necessary gaps. Exhibit 8.4 shows a histogram of
years of education from the 2010 GSS data. The distribution has a clump
of cases centred at 12 years. The distribution is skewed because there are
more cases just above the central point than below it.
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Pie charts: A pie chart (or a circle chart) is a circular statistical

graphic, which is divided into slices to illustrate numerical proportion. In
a pie chart, the arc length of each slice (and consequently its central angle and area), is proportional to the
quantity it represents. While it is named for its resemblance to a pie which has been sliced, there are
variations on the way it can be presented.

Limitations of the project study

There are certain limitations of doing this project especially comprising
limitations for doing market research.
Costly: Marketing research is a costly affair. It needs a lot of money to
conduct various market research activities . Huge funds are required to pay
salaries, prepare questionnaires, conduct surveys etc.
Time consuming: Marketing research is a lengthy and time-consuming
process. This process involve s many important steps. Generally it takes at
least 3- 6 months to solve a marketing problem. Therefore it can’t be used
in urgent situations .
Limited scope : Marketing research solves many business related
problems but it can’t solve all business problems. It cannot solve
problems related to income , expenditure , relationship etc. thus its scope is
limited.
Can’t predict consumer behaviour: Marketing research collects data
about consumer behaviour . However, this data is not accurate because
consumer behaviour keeps on changing and cannot be predicted. It is also
very complex as it is influenced by social, religious, economic and other factors.
Can be misused: Sometimes , marketing research is misused by the
company. It is used to delay decision. It is used to support the views of a
particular individual .

Findings
Since, I went to 3 localities each for doing market survey
and understand the behavior of the market. So the findings of each locality are
presented as under.
Findings of Eco space
Ecospace, belonging to south B, is predominantly an IT area and
management schools (more individual B- schools, compared to apartments),
surrounding the small business units, IT companies.
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Working individuals:-

Majority of the WIs (38%) prefer to order through mobile apps

since most of them are students. 34% of WIs preferred ordering
food through direct call to restaurant, direct walk in to restaurant
(14%) and online web portals (14%).
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44% of students usually order food for 2-3 people and 15% of
students order food for 3-4 peoples. 41% students order food for self.
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Inferences and Summary of Findings

Inferences from Eco Space

About Working Individuals
it can be inferred that working indiviual who prefer ordering food through mobile apps
We can say that(38%), online web portals (14%) indicates the presence of who like to
have convenience in ordering food.

From level of satisfaction we can understand that online food delivery system
is prominent and running success fully in Kolkata city.

Statistics about frequency of ordering food home delivery indicates that there
is good number of food home delivery orders in Kolkata city.

Marketing activities with emphasis on the combo offers in the app will be
fruitful in the city.
Regarding the preferred cuisines of respondents, Indian was the
predominant cuisine, followed by Biryani items. Going out for eating an
movie were the major entertainment preferences of Working Indiviuals.

About Students
They prefer dining with friends and going for movies in weekends.

Majority were students have placed a food home delivery through online,
hence they chose Satisfied option.
Frequency of food home delivery orders placed in a month by students and
WIs, indicates that decent number of orders can be generated from Kolkata
city.
While showing the demo of the app, students found the free meals
offer which enables them to earn cashbacks
North Indian was the preferred cuisine by most of the students. Major
entertainment preferences include Movie and going out for eating.
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Inferences from Restaurants

From newtown bustand
While interviewing with the restaurant managers /owners of 12 restaurants from
Newtown area region revealed the following.

 On an average, they are getting 10-15 home delivery orders per day from this area.

 The number of walk- in customers per day in these restaurants averages from
100-200 customer s /day.

 FoodPanda , Zomato and Swiggy are the apps they are tied up with.

 Also since in the city more students and PGs are there, they get bulk
order from colleges and etc.

From Chinar park

While interviewing with the restaurant managers/owners of 10 restaurants from
Chinar park region revealed the following.
 On an average, they are getting 15-25 home delivery orders per day
 The number of walk- in customers per day in these restaurants averages from
100-200 customers /day.
 FoodPanda, Zomato nd Swiggy are the apps they are tied up with.
 The areas from which they get maximum number of home delivery orders are
from areas within 3km radius.
 Peak hours of home delivery are from 12-2pm in week days and 7-9pm in
weekends.
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Competitor Analysis
This research was mainly carried out by visiting various restaurants within the localities and asking from
them about the services other competitors are providing and their way of taking or giving orders to the
restaurants on behalf of the customers and also by doing some
secondary research about the competitors available. This also includes knowing
about their delivery patterns, delivery charges etc.
Mainly according to the market research in Bangalore there are mainly 2 big
competitors of zomato and swiggy i.e. Food Panda and justeat. Also, available
food app of the restaurants is also giving tough competition to them in terms of its
delivery boys. Following are the findings of the 2 major competitors i.e. Food
Panda and justeat.

FOOD PANDA analysis

SWOT Analysis
Strengths
 It is the largest America n Chinese restaurant chain in the United States.
 It has close to 1,700 plus restaurants located across all different states in
the United States.
 Offers a variety of food along with combo meals.
 Panda Express is among the US's 25 largest quick- service operations and
 Asian quick- serve category.
 The chain was one of the earliest entrants into the supermarket arena.
 Strategically located in mall food courts and other non- traditional venues
 including airports , college campuses, and theme parks.
 It has a successful track record of making Asian cuisine accessible to the
masses.
 Strong following among Asian, Hispanic , and Caucasian diners .
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Weakness
Opportunities
Threats
 Restricted to one cuisine thus restricting its customer base.
 Specialty ingredients used in Chinese food might be difficult to source and store .
 Restricted in a few geographies means lower brand recall.
 Price differences in menu and app prices.
 There is a large market leading to huge customer base.
 Venturing into newer markets.
 Introducing more items on its menu.
 Untapped market as online food apps contribute only 7%

Threats
 Managing huge employee base can be an issue.
 Stiff competition from multi cuisine restaurant.
 Presence of strong competitor s in the Chinese restaurant segment
 Threat of New entrants

Market Share
1) They’ve grown to become one of the largest food ordering portals in India.
2) Built a network of 2000+ partners including some of the well know brands
like: Pizza Hut, Subway, Nirula’s , Baskin Robbins, Mast Kalandar, Faasos
amongst many others.
3) We have quite steadily ‘shaped the market’ towards ordering food online,
instead of ordering on phone. This has helped us gather a lion share of the food
delivery market, and propel us towards a leadership position in the market
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Growth
India is a market with huge potential where the scope for growth is immense.
However, with internet penetration of only 8%, it is only logical to target the
more cosmopolitan Tier I cities which have a sizable working population with
mature internet users.
We’ve seen a steady growth in traffic since our launch last year. However, the
focus has really always been on quality traffic & targeting potential customers,
which we have been able to achieve very successfully. We are growing by 25-
30% on month-on-mont h basis.
Currently we get around 25000-30000 unique visitor a day. With this 65% of our
traffic comes from Delhi, Mumbai & Bangalore and rest 35% from Chandigarh,
Hyderabad and Pune.

Market Strategy
Being an ecommerce business, we believe it is best to target our potential
customers when they are online in front of their computer screens, in encourage
them to try us out. Hence our focus has majorly been on digital marketing
channels.

We believe in providing the best customer experience on our site and hence our
product is continuously evolving adding new features almost every other week.
We launched our mobile app in January and was very well received. We have
already seen more than 250,000 app downloads worldwide which is a clear
indicator of the need for innovation in the space and we are happy to take the
lead.
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Financial funding
Food panda announced that it has raised $20 million to fuel its aggressive growth strategy.
Food Panda’s steepest competition is Delivery Hero, a Berlin-based start-up that operates in 14 Countries
around the world. Delivery Hero has raised nearly $200 million to date and claims it has 6 million
customers, 55,000 restaurants, and did $500 million in annual sales last year. Another competitor is Just Eat,
a UK-based service that raised $64 million in 2012. The U.S. saw consolidation in this space last year with
the union of Grub Hub and Seamless.

Food Panda has 22,000 restaurants in its database. It raised $20 million last May and added 20 more markets
in 2013. With this financing, it plans to hit 40 countries by the end of the first quarter of 2014. Croatia,
Bulgaria, Serbia, Slovenia, Kazakhstan, Azerbaijan, Tanzania and Uganda are next up for expansion.

Popularity
Foodpanda has over 892,000 likes on Facebook, 383 followers on their Pakistan
twitter account (@FoodPandapk), and a thriving campaign tempting people to
try them out. What sets them apart from their competitors is that they are able to
take a worldwide brand and make it country specific, and market themselves
accordingly.

They know what their consumers want, and they know how to get it to them.
Foodpanda has been able to distinguish itself in a market that is seeing a
growing number of online food delivery services.

Forward Expansion
Foodpanda is now available in 41 countries and is looking to expand to even
more. The company made an announcement in February stating: “Foodpanda and
its affiliated brand hellofood, the fastest growing online food delivery
marketplace worldwide, received another USD 20 million in funding from a
group of inves tors including Phenomenon Ventures.

With the new investment Foodpanda is aiming to continue its global ambitions
and roll out to over 40 markets.” The company previously received another USD
20 million from AB Kinnevik in Sweden, and Phenomenon Ventures. They also
received USD 8 million from iMENA.
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Foodpanda raised $110 million in a fresh round of fund raising from Rocket
Internet and other investors. Since 2012, Foodpanda has raised over $200
million and plans to invest into product and technology. With the entry of
Zomato and TinyOwl in the online food ordering space, Foodpanda wants to
focus on providing the best customer service to its users. In an interview, Rohit
Chadda, co- founder and managing director of Foodpanda, tells Neha
Bothra about plans to tap potential in tier 2 and tier 3 cities, and increase
restaurant partners from 12,000 to 15,000 in the next six months .

Order rate at Food Panda

We earn revenue from the commission we earn from restaurants on every
successful order that we place. In terms of traffic, we get around 1,30,000 to
1,50,000 visitors each day. The average value of each order ranges between Rs500 to Rs 550. This is higher
on the mobile platform. Around 45 -48% of our
transactions come from our smartphone based application, and the transaction
size on this platform is 20% higher than on the web.

Tie ups with restaurants

At present, we have 12,000 restaurants. In the next six months we will probably
be at around 15,000 restaurants across India. We believe in quality over
quantity. We have always concentrated on adding good quality res taurants, and
if we see that a restaurant is not really performing- then we take it off from our
coverage. The most important thing for us is consumer experience .
Zomato Analysis
SWOT Analysis
Strengths
 Users perceive Zomato as ‘Specialty product’ (Focused only on foods &
 restaurants ).
 High awareness – Top of the mind product.
 Global presence – 25 countries – 1.5 million listed restaurants.
 Superior technology and a strong workforce of over 1200 people.
 Asset less business model.
 High financial leverage due to its business model.
 Simple & user friendly inter face.
 Aggressive and Innovative marketing strategy.
 Strong brand recognition ion and has won several l accolade s & award s.
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Weakness
 Competition from search engines & other similar apps means limited
growth.
 Drastic growth means susceptible to bad content

Opportunities
 Opportunity to expand to further more countries .
 Increasing internet penetration & number of smartphone users .
 Rapid technology development .
Threats
 Intense competition.
 Lack of clear rules and regulations - Changes in government policy can
easily affect the business model.
 Business model can be easily imitated by other players

Differentiation from others

To differentiate themselves from their competitors, Zomato concentrated on adding approx.
18,000 new places to eat from. Along with they also decorated many special features, such as
pointed to particular dishes or opening times”. To be the largest resource in food supply market,
Zomato bought urbanspoon, a leading restaurant service providing portal for $52 million to enter
US, Canada and Australia to leverage local insights and experience and to expand their business
in overseas seeing the future goal and objective.

Milestones
 Number of listed restaurants: in 2008 it was 4000 restaurants which increase to 94000 in 2013 and
currently 384,100 in Q1 of 2015.
 Monthly visitors of Zomato increases to 35 million in 2014 which was 11
 million in 2013 and 0.015 million in 2008.
 Yearly revenue of Zomato in 2008 was 0.06 crores which increased to 11.3 crores in 2013.
 Spread in 21 countries worldwide.
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Success Factor
 First mover advantage
 Strong content platform
 Efficient employee s
 Good rating mechanism and social platform
 Funding from experienced source

Strategy of Zomato
 Zomato works with keen interest on various strategies to achieve their goal. It
includes
 Financial strategy: To increase their fund and revenue
 Marketing strategy: To tap their customers from across the globe
 Growth strategy: To grow continuously and increase their customers and
page traffic
 Globalization strategy: To expand themselves across the whole globe as a leading service provider.

Marketing Strategy
Featured and user friendly website
 Global mobile app
 Focusing on digital l marketing channels for potential customer s
 Acquire the competitors: To be the largest resource in food supply market,
 Zomato bought urban spoon for $52 million to enter US, Canada and
Australia
 Simpler review and rating system
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Financial Funding
In August 2010, Zomato got its first round of funding of $1million from Info
Edge, India. And in September 2011, got its second round of funding of
$3.5million 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.
Seeing the future and growth of Zomato, Sequoia Capital and Info Edge, India in
November 2013 funded Zomato with $37 million. Info Edge now owned 50.1%
of Zomato on an investment of INR 143 crores. The total funding raised by
Zomato till November 2013 stands at $53.5 million.
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.

Expansion
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 should n’t be too hard,”
“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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Order rate

The company works with more than 150 vendors to provide shipments across
175 cities. It averages about 9,000 deliveries daily. “We not only provide for
shipments and deliveries, but also warehousing facilities where the company
stocks and racks the products for the vendors,” said Bharati. In addition,
Delivery provides all kinds of retailers, even small businesses, technology
solutions to integrate all channels of sale. These include offline, online, social
media, mobile and voice solutions that allow sellers to manage stores and
inte gra te deliver y with market needs.

Future strategy
Delivery is looking to expand to 250 cities, 30 delivery centres and targeting
revenue of Rs.250 crore for the fiscal year 2015-16. International expansion is
part of its future strategy.
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App reviews
Zomato, the popular online and mobile restaurant guide, has updated its iOS app, completely overhauling
the user interface and has added new features.

The updated Zomato app offers a much simpler user interface, in line with the resecnt redesign of the
Zomato website, with the home screen offering large swappable images of nearby restaurants that lead to
their respective listings, in addition to options to browse restaurants and search for them by entering
keywords for name, location, cuisine or dish.
The Browse Restaurants option takes you to a menu that offers mood-based
recommendations. So, you can select if you're looking to get food home delivered, going out for a meal,
going out for drinks or just catching up with friends. Selecting the location is the next step, following which,
the app offers a list of restaurants that match the criteria.
There's a separate screen for location based restaurants search through which you can sort restaurants based
on the distance from your current location. You can apply additional filters such as ratings, whether the
restaurant is open at the time of the search, cuisine, budget and other [Link]'s also a 'Featured
Content' section that offers lists such as top 25 restaurants, foodie leader board (for regular users), and
featured reviews, among other [Link] can also post pictures for restaurants they've visited in case
they just want to post picture reviews. Pictures can be posted through the restaurant's listing page or through
a section within the app that allows users to upload reviews and pictures of restaurant.
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Summary of all the competitors

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Recommendations
 In case of working indiviuals, marketing activities with promo codes and emphasis on
combo offers will be effective.

 When it comes to students, they are more attracted towards the free meal
offer, which enables them to earn money into their account easily. Marketing activities with
emphasis on this offer will create interest in students towards the app.

 Marketing activities in PGs and colleges will be effective in catching

attention of more students and working individuals.

 Marketing activities in residential areas and apartments will be effective in catching attention of
more people and working individuals .

 Marketing activities need to be extensive as there is a lot of scope of people who can use the app.

 Marketing activities such as big hoardings, posters etc., if displayed, will

attract more and more customers and also people will get awareness about the app.

 Marketing activities near hostels and colleges will be most effective since
most of the students prefer to have variety of food at reasonable rates.
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Conclusion

Kolkata is also called foodie’s paradise because of vast variety of foods and
eatables available with a touch of uniqueness and tradition. Popular cuisines in
Kolkata includ(south Indian & North Indian,
Chinese, Thai, Arabic (Mughlai & Hyderabadi) .
A survey done by [Link] states that Kolkata being with a large population of young working
professionals beats other cities after Bangalore when it comes to ordering food between 3 p.m. and 7 p.m.
with 18 percent of the total orders across India.

The survey also reveals that

Italian cuisine is the most preferred choice for food in between meals at 32
percent, it is closely followed by Chinese (24 percent) and fast food (17 percent).

Hyderabadi cuisine seems to have lost the gourmet game by being

the last options preferred by foodies.

Salads and Sandwiches (8%), Mughlai (7%), multi-cuisine

(3%) and South Indian (2%) make up the rest of the least
preferred choices with bakery items and ice cream recording only one percent of
orders placed.

This data reveals that Kolkata is known for foodies and also increasing users
of smart phones clearly indicates that for such kind of mobile food apps will be
very much fruitful for the expansion and establishment of these companies.
 P a g e | 43

Bibliography

REFERENCES

http:/ /[Link] [Link]/course s /[Link]

http:/ /[Link] taurant india. in/article /growth/expansion/Online - fooddelivery-

see s-a-boom.a137/

http:/ /blog. [Link]/pos t/94342869876/ three -problems- we-a re- tryingto-

solve-at- zomato

http:/ /your story. com/2015/02/zoma to-announce s-onl ine- food-orde r ingindia/

http:/ /www. financia lexpress. com/article /companies / foodpanda - raises-110-

mn- from- rocket-internet- rohi t-chadda- says- targetting-15000- res taurantsacross-
india /53218/

https :/ /[Link]/

http:/ /[Link] [Link]/story-mumbai-based- food-ordering-apptinyowl

 P a g e | 44

APPENDICIES

Questionnaire for customers

Q1. How do you order your food?

a. Direct call to restaurant
b. Online portal.
c. Mobile application
d. Direct walk in.

Q2. Are you satisfied with ordering online?

a. Highly satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Highly dissatisfied

Q3. Are you aware about Zomato and Swiggy?

a. Yes
b. No

Q4. Are you getting offers or cashbacks using this app?

a. Yes
b. No.

Q5. Your Occupation?

a. Student
b. Working individuals
c. Working married couples
d. Home maker

Q6. What are your famous entertainment preferences?

[Link]
b. Going out for eating
c. Travelling
d. Others
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Q7. No. of times you order home deliver y in a month?

a. 5-10 times
b. 10-15 times
c. 15-20 times.
d.20-25 times.

Q8 what are your preferred Cuisines?

a. North Indian
b. Chinese
c. South Indian
d. Others

Q9 For how many people you usually order food?

a. 1
b. 2-3
c. 3-4
d. 4+

Q10. Most popular restaurant you prefer?

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Questionnaire for restaurants owners Name of the restaurants:-

Q1. No. of orders per day for home delivery?

a. 100-250
b. 250-400
c. 400-550
d. 550 and above

Q2. No. of walk- in customers per day?

a. 75-150
b. 150-300
c. 300-400
d. 400 and above

Q3. Are you tied up with any of the food ordering apps?
a. Yes
b. No.

Q4. Which mobile application or online portal gives the maximum no. of orders?
a. Foodpanda
b. Zomato
c. TinyOwl.
d. Swiggy.

Q5. Are you aware of Zomato and Swiggy?

a. Yes
b. No.

Q6. From which location you get the most number of orders?

Q7. Any offers /discounts given to customers by you?

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Q8. Which portal do you prefer the most?

a. Foodpanda
b. Zomato
c. TinyOwl.
d. Swiggy

Q9. Peak hours for home delivery?

a. 12-2 pm
b. 2-3 pm
c. 7-9 pm
d. 9-11 pm

Q10. Common Issues faced due to home delivery?