PROJECT REPORT

On

“Market Research on Online Food App Zomato”

FOR
THE PARTIAL FULFILLMENT OF THE AWARD OF THE DEGREE OF
“MASTER OF BUSINESS ADMINSTRATION”
FROM GGS IP UNIVERSITY
DELHI

BATCH: 2017-2019

SUBMITTED BY: SUBMITTED TO:

Akash Kumar Yadav Dr Babita Bhati

ARMY INSTITUTE OF MANAGEMENT & TECHNOLOGY,

GREATER NOIDA (UP) – 201306
i
 Supervisor Certificate

This is to certify that Akash Kumar Yadav student of Master of

Business Administration, Batch –MBA-14, Army Institute Management &
Technology, Greater Noida, has successfully completed his project under my
supervision.

During this period, he worked on the project titled “Market Research and on Online
Food App Zomato” in partial fulfilment for the award of the degree of Master
of Business Administration of GGSIP University, Delhi.

To the best of my knowledge, the project work done by the candidate has not been
submitted to any university for award of any degree. His performance and conduct has
been good.

(Signature)
Dr. Babita Bhati
AIMT-Gr. Noida

Date:

ii
 Certificate of Originality

I, Mr. Akash Kumar Yadav, Roll No. 00818403917 of MBA 14 batch of

Army Institute of Management & Technology has undergone a Summer
Internship in Zomato (organization) for a duration of seven weeks on a project
title “Market Research on Online Food App Zomato”, hereby declare that
this project is my original piece of work.

Signature of the student:

Akash kumar Yadav
Date

iii
 ACKNOWLEDGEMENT

I want to show my sincere gratitude to all those who made this study possible. First of
all, I am thankful to the helpful staff and the faculty of Army Institute of Management
and Technology. Second I would like to extend my sincere thanks to my Industry
Guide, Mr. Shivang kapoor, for his untiring cooperation. One of the most important
tasks in every good study is its critical evaluation and feedback which was performed
by my faculty guide Dr Babita Bhati. I am very thankful to my Faculty as well as
Industry guide for investing his precious time to discuss and criticize this study in
depth and explained the meaning of different concepts and how to think when it
comes to problem discussions and theoretical discussions. My sincere thanks go to
my Institute and family, who supported and encouraged me.

Akash Kumar Yadav

MBA 2017-2019

iv
Executive Summary
Zomato
isIndia’soneofthelargestandmostsuccessfulstartupcompanyinashorttimewherefoodin
dustry
meets technology and connects thousands of restaurants with a single string.
Zomato initial name Foodiebay launched in 2008 and in 2010 the name changed into Zomato.
Listed with more than 1.5 Million restaurants in 23 countries and still counting. In the end of 2015 VY
capital invested $ 60 million and Info Edge invested $ 50 million. Sequoia Capital In 2013 Zomato was
funded with $37 million by Info edge and Sequoia Capital. Zomato's total funding of $225 million
primarily comes from four investors: Info Edge, Sequoia India, Vy Capital and Temasek Holdings.
Over 3000 passionate and strong ZOMANS in 23 countries representing 32 nationalities and become a
more attractive Employer.
Tripled the revenue within a fiscal year by acquiring companies and connected millions of customers and
more than 25000 restaurants. Tied up with Paytm, Food Bloggers, Mobiwiki and Freecharge.
The internship was aimed towards the launch of the Hyderabad newest online Food Ordering App Zomato.

The main objectives of this internship were

 Identifying the Target Audience.
 Where to find the Target Audience.

 How to reach them in the most active manner.

Every individual was provided areas to work upon and understanding the customer behaviour and food
ordering designs of individuals. The internship also aims at gaining full understanding of Zomato product
differentiation from competitors and exciting features in the Zomato App.
The early phase of internship deals with the preparation of questionnaire for the focus groups and then
reaching out to them and making them fill the questionnaire. The next phase involved the various
marketing strategies and SWOT analysis.
Questionnaire was prepared based on certain parameters such as-

• Age group

• Lifestyle

• Rate of ordering food

• Regular amount spends per meal

• Preferred cuisines
• Entertainment preferences
• Preferred restaurants

v
 TABLE OF CONTENTS
CHAPTER 1………………...…………………………………………………….
………………………...1
1.1 Introduction ofthesector………………………………………….
………………………………..2
1.1.2 DrivingFactors….……………………………………………….
……………………………….2
1.1.3 Future of Business….…………………………………………….
……………………………….3
1.1.4MajorPlayers….………………………………………………….………………………………
3
1.1.5 Benefits….…………………………………………………………….
………………………….3
1.1.6 Marketing.Strategies………………………………………………….
………………………….3
1.2 SWOT
Analysis………………………………………………………………………………….....4
CHAPTER 2……..
………............................................................................................................................8
2.1 Introduction about the
company…………………………………………………………………....9
2.1.1 Features of
APP…………………………………………………………………………………..9
2.2Competitors…………………………………………….…………………………………………
10
2.2.1 Summary of all
competitors……………………………………………………………………..11
CHAPTER 3……...…………………………………………….
………………………………………….13
3OBJECTIVES………………………………………………………………………………………14
CHAPTER 4……...………………………………………………...
……………………………………..15
4 Literature Review……………………………...
……………………………………………………16
4.1 Market Research…………………………………………………………...
……………………...18
4.1.1MarketResearchProcedure…………………………………………………...………….
…..…19
4.1.2 Simple RandomSampling……………………………………………….......
………………….21
4.1.3QuestionnaireDesign..
…………………………………………………………………………..23
 4.1.4 Advantages and disadvantages…………………………………………………...
……………..25
CHAPTER 5………..………………………………………………………………………..….
………...26
5Research………………………………………………………………………………………...
…..27
5.1 Research Methodology……………………………………………………………………...
…….27
5.2 Types of data collection methods…………………………………………………………..…..
….27
5.3Dataanalysistechniques…………………………………………………………….….….…..
….27
5.4Techniquesforanalysisquantitativedata……………………………………………….
…….….28
5.5Limitations……………………………………………………………………………………….28
CHAPTER 6 Findings…………………………………………………………………………... ……….30
CHAPTER 7………………………………………………………………………………………………37
7. Conclusion…..…………………………………………….
………………………………………..37

vi
 CHAPTER 1
INTRODUCTION

1
 1. Introduction

1.1 Introduction about the sector

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

Players in the industry approximately classified into three categories.

Fully integrated: Those who process food and delivers (Dominos, McDonald's etc.)

Delivery as a Service.

Aggregators: Provides a platform for customers where they could learn 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 making channel for restaurants. (uber eat,
Zomato, Food Panda etc.)

Reasons for growth in online food delivery industry:

 Increase in disposable revenue and deeper internet use 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.

These days’ persons are prone to placing food orders online and capitalising this trend a lot of restaurants
are yielding good returns by registering themselves on online ordering sites like Food panda, Tasty khana,
uber Eat, Zomato and many local ordering websites are also following suit.

1.1.2 Driving factors

Greater awareness and disposable income along with deeper Internet penetration, availability of
more payment options like card payment, Paytm, online payments, 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 foremost to the rise of
online
food business in the country.

2
Nixon
Dsouza,BrandManager,NomNom,says,“Penetratingthrougheverycommercialaspecthum
an have
started usingtechnologyfor everythingandfoodorderingis one such
developments”.
Rohit Chadda, MD and Founder Food panda believes that“Onlineordering is suitable giving the
customers a wider optiontochoose fromthe restaurantslistedonthe website.”

1.1.3 Future of the business

As per the business specialists, the overall food delivery business is more than USD 7 billion to which
online food ordering pays 5-7 percent and is rising 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, Just
Eat,“Thefuture seems bright for the online food business in India, as we are trying to catch up with
developed markets where 30percent of deliverytakes place through online channels.”

1.1.4 Major players

Online food ordering is at an inspiring phase now. Many local and national players are joining the space.
In fact, the foreign brand Just Eat has also tied up with the Bangalore based Hungry Zone. Food panda
which started its business from Delhi-NCR is the major player in the segment followed by Just
Eat and TastyKhana, a Pune inventiveness. Besides, Delivery Chef, Big Bite, Swiggy and Zomato are the
emerging players in the online food delivery market which is estimated to grow at 40 percent yearly.

1.1.5 Benefits

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

1.1.6 Marketing strategies

Online food delivery stages 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.
3
1.2 SWOT Analysis

Strengths
• Users perceive Zomato as ‘Specialtyproduct’(Focused onlyon 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 interface.

• Aggressive and Innovative marketing strategy.

• Strong brand recognition and has won several accolades & awards.

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
oropeningtimes”.Tobethelargestresourceinfoodsupplymarket,Zomatoboughturbansp
oon,aleading 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.
4
Milestones
Number of listed restaurants: in 2008 it was 4000 restaurants which increase to 94000 in 2013 and currently
384,100 in Q1 of 2018.

 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 2018.
 Spread in 21 countries worldwide.

Success Factor
 First mover advantage

 Strong content platform

 Efficient employees

 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 marketing channels for potential customers

 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

5
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, thisshouldn’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.”

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
6
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 integrate delivery with market needs.

Future strategy
Delivery is looking to expand to 250 cities, 50 delivery centres and targeting revenue of Rs.350 crore for
the fiscal year 2017-18. International expansion is part of its future strategy.

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 resents 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 aspects.
There'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 content.
Users 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 restaurants.

7
 CHAPTER 2
INTRODUCTION ABOUT THE COMPANY

8
2.1 Introduction about the company

Zomato is an online website which provides restaurant search and finding service. It provides its customers
a platform to estimate choices for great places to eat. It has set foot on 22 countries including India. The
Gurgaon headquartered company Zomato was named among the top 25 most promising internet
companies in India by Smart Techie Magazine. Because of its consistent performance and success,
it has been successful in getting regular investments from Info Edge (India).

In April 2015, Zomato acquired Delhi based start-up Maple Graph that built MaplePOS. Zomato renamed
the MaplePOS product to Zomato Base. In the same month, the firm also acquired Next able, a US-based
table reservation and restaurant management platform.

In February 2017, Zomato in a company's blog had explained the concept of cloud kitchen. With its cloud
kitchen, the company will help the restaurants to expand their presence without incurring any fixed costs

In September 2017, Zomato claimed that the company had "turned profitable" in the 24 countries it
currently operates in. Furthermore, Zomato announced that the "zero commission model" is to be
introduced for partner restaurants.

Zomatonarroweddownitslossesby34%to₹389Crforthefinancialyear2016-17, from Rs
590.1 Cr crore in the previous year 2015-16.

2.1.1 Features of app:

• Detects location of app user automatically.

• User can choose from more than 4000 restaurants.

• Saves the order history and addresses.

• Customer support team with strength of more than 100.

• The Zomato is a location-based app that lets you order your food from a range of
restaurants anywhere in available cities, right from your mobile phone.
• The app does almost everything for you. It’s simple and friendly UI and is
constantly updated by
their team for the menus and prices, making it easy, convenient and reliable to use. When you start
the app, it detects your location and gives you a list of the nearby restaurants.

9
Online Services
I. Zomato for Business

: A subscription-based model wherein merchants have access to their listings. This allows them to
share daily discounts, promos or special menus, increasing their interaction with consumers on a
real-time basis
II. Cashless transactions

: Currently available only in Dubai, diners at participating restaurants pay through the Zomato
app, eliminating the need to use cash/swipe cards. On every such transaction, Zomato
receives a percentage cut on the total amount. There is huge opportunity for such a
venture in the other existing markets like India and the US
III. Online Ordering Service
 Launched in Delhi, Bangalore and Mumbai in mid-April, soon to be launched Pan-India.
Currently with 2000 restaurant
 Partners, Zomato aims to partner with 10000 restaurants across India.

IV. Zomato Book

: Has be launched in Australia, India and UAE, through acquiring NexTable of USA, this is a
platform for reserving restaurants and managing tables

2.2 COMPETITORS

 There are more than 20 Indian start-ups in online food delivery space. Zomato faces
tough competition from Food Panda, uber eats, Swiggy, a prominent online food delivery start-up
based in Hyderabad is assumed to be a competitor of Zomato for its expansion in Hyderabad.
 Food Panda and Swiggy have got more money compared to Zomato.
 Customer reviews states that Zomato app is sleeker and hassle free compared to other apps of
same kind
 Zomato focusses on data and service more, whereas other players like Food Panda focusses more
on offers.
 Unlike other apps, Zomato is not flooding the email ids of customers with spam messages.

10
  More options of food and restaurants available in Zomato app, compared to competitors.

2.2.1 Summary of all the competitors

Particulars Food Panda/Tasty khana/ Swiggy Zomato

Just Eat
Strengths Offers and coupon discounts, Timely delivery and Ultimate destination for food
Market share across Bangalore, excellent service, more includes table bookings, home
Promotion for brand awareness, than delivery, and discovery of
recruiting delivery boys (12000 150 the restaurant.
at the end of the year delivery boys
2015).

Weakness Payment delay to the restaurants, Services are down at Home delivery begins in
no cash on delivery on peak time. only one segment of their
some entire
restaurants. market.
Opportunities Customers order food via app and Customers order food via app Customers order food via app
online is increasing. and online is increasing. and online is increasing.

Threats New entry New entry New entry

Market
Strategy
Funds Raised $110 million in a fresh Raised $16.5 million in Raises $50 million in
round of fund raising from rocket additional funding to make a funding led by existing
internet and other play for the Indian market. investor Info Edge
investors

11
Short term goal Increase restaurant partners from Increase manpower New product line i.e., a
12000 to 15000 at the end of product which will allow the
October 2015
 users to pay restaurant bill through
mobile application

Purchase
and
usag
e
Average The average value of each order Delivers over 70000 orders 9000 delivery per day all
purchase over
ranges between Rs 500 to Rs on a monthly basis.
India.
550.

Usage Around 45-48% of 50% more orders shifting Online ordering is more when
the transactions come from the website to the compared to mobile app.
from smartphones-based app app quickly.
and the transaction size of this
platform is
20% more than on web.

1
2
 CHAPTER 3

OBJECTIVES OF THE RESEARCH

13
3. Objectives of the study:
Objective 1: To identify the consumer response to the company’s product.
Objective 2: To identify the most effective method to reach the target customers.
Objective 3: To know the nature and extent of competition and also the strength
and weaknesses of the competitors.

14
 CHAPTER 4

LITERATURE REVIEW

15
4. Literature Review

Dr. Somnath, N. Joshep (2017),“A STUDY TOWARDS FOOD

APP”Theonlinefoodadjureappsystem will be helpful for the hotels and restaurants to increase the
scope of the business by helping users to give order through online. This study was to find the awareness
level and satisfaction derived by the consumer and also to find which factor influence customers to buy
food through online from food adjure app. Most of the respondents disagree to the fact that online website
charges high delivery fees. Almost all users feel safe paying online. The Service rendered by the food
adjure app is the major factor behind its success.

Abbas Alli, Harsha Bhutiya, Nishant Asawthi, M. Khan (2016), “Study of Aggregator Food
Delivery Services in
India”ThispaperoutlinesthebusinessmodelsofthetopfourfoodaggregatorservicesinIndia
as a case study analyzing the initial phases of startups in a growing market. These aggregator services run
into an initial loss due to focus on customer acquisition, growth and changing the ecosystem of the market.
However, with heavysupportfromVC’sandinvestors, these startupscansuspend
focuson profit building. With a funding freeze in India, it is important for the business model to be
sustainable to receive more rounds of funding. This requires optimization of the entire process, which
involves decreasing cash burn and increasing the economic outlook of sales. Four distinct models:
Swiggy, Zomato Delivery, FoodPanda, and TinyOwl are compared in the study to determine correlations
between success of the growth model and how the company operates. A combined result of a SWOT
analysis along with a comparative analysis of models found that there are a few bottlenecks to early food
aggregator services.

 Scalability: Capital heavy models with high customer acquisition costs are unsustainable
 Innovation: Lower profit margins necessitate the need for innovative product strategy that helps
cut costs and build customer bases
 Cash-burn: Investor pressure to achieve growth causes startups to start cycles of cash-burn through
over-hire and heavy discounting

The TinyOwl model was prey to all three of the bottlenecks mentioned above, causing heavy cash-burn
rate, ultimately scaling down of the business to just two cities in India. These errors are common to a lot of
other spaces (including grocery delivery) in India (and abroad), and this paper manages to isolate the root
causes for the same.

Riya, Shashak, Priya M. Shankar, Madhu Rana, (2, February 2013), “Automated Food
Ordering System” In this paper, The author present an automated food ordering system with-real
time customer feedback (AOS-RTF).This system is convenient, effective and easy thereby improving the
performance of

16
restaurant’sstaff.Itwillalsoprovidequalityofserviceandcustomersatisfaction.Overallcon
clusionisthat, this is a fabulous food ordering system for the restaurant sector, made by
combining the Android and Wireless technology. In next phase, the author will be working on providing
provisions to accept different types of payments like checks, credit cards, debit cards, tips, etc. The system
can be further extended to register and link multiple restaurants to enhance the dining experience of
customers.

Rohit Shukla, Ayush (2005), “The Application of Wireless Food Ordering System”
mentioned that there are several aspects that should be included in a good online food ordering
system. System should be simple to navigate, not clustered and easy to make an order.

Rajeev Rapat, Rajpal Singh (20017),” Multi-Touchable Restaurant System,” reports that most of the
people hate waiting for an order. Therefore, they prefer self-service technology, which can be in form of
text messaging, the internet and kiosk. Usually, the customer prefers self-service because of speed
and convenience in making order and transaction while minimize the miscommunication. He also
mentioned that self-activated terminals are more likely to serve as ordering innovation in the future. The
implementation of alternative ordering can increase check size, free up counter staff that need to serve
customers and take money handling out of service equation.

Sanjeev Sharma, (2007), “How Online Food Ordering System Helps You Run More
Efficiently” designed with professionals looking with search engine optimize capability and
available 24hours. The
systemshouldalsohaveasecurepaymentgatewaytoprotecttheircustomers’creditcards
information, fast
and keep track on orders and sales history easily as well as generate a comprehensive sales report.
17
4.1 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, analyses, 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. 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 exists 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.
18
4.1.1 Marketing Research Procedure

Stage-1 Research Purpose: -

The first step in the process of market research is to define research purpose. Research purpose is usually
not very well defined or fully understood. The process of fully and precisely 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 made by understanding 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: -

Investigation objective is accurate report about required in sequence. It understands problem statement
more accurately and in more understandable way. Research purposes 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.

Hypothesis
Hypothesis is researcher’s view of possible answer to a research question. The Researcher may produce
possible outcome of research question in earlier stage and carry out research to answer that if hypothesis
created at start of research was right or not.

Scope of Research
Hypothesis growth assistances keeping research procedure more accurate and well-focused to serve
research purpose. Another important issue of the research is indicating research boundaries or research
limitations.

19
Stage-3 Estimating the Value of Research information: -
After defining research purpose, purposes and scope it is also very significant to estimate value of
information needed or the value of research problem that will possibly be replied in research question.

Stage-4 Research Design

Research design is in general structure or framework of research that is developed in order to
conduct research.

Research design may include following tasks.

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.

 Online surveys
 Phone calls

20
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 answers 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.

Sampling Design
Mostly, 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
drawingconclusionthatare“anaccuraterepresentationofhowthelargergroupofpeopleac
tsorwhatthey believe”.

4.1.2 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 people 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 members 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.
Step-by-step method for determining reliability of data

As soon as data collection begins, steps can be taken to ensure the data is reliable. Following these steps
will allow insight into whether or not enough data has been collected to provide reliable (95% certainty)
information:

21
• Determine coding scheme for data. Depending on the options that survey and interview
respondents have to answer questions, the data will have to be coded for each question. Given the
type of information most state programs seek through interviews and surveys, this data should be
able to be divided into two categories. For instance, if the question is a yes or no
question, then one category would be yes, the other would be no. If the question asks
participants to place items into a Likert scale, then two categories would be created in order to
determine which half of the Likert scale the data favoured (with the total number of neutral
answers being counted, divided by two, and placed equally into each of the two categories).
• Code responses. Code your responses to each answer in order to determine which of the
two categories created for each question the answer would fit. Once you have coded all of the
answers, determine how many answers fall into each of the two divisions.
• Compute reliability. Although you will have a random sample to use at this point, you will not
likely be able to interview or survey all of the people in that sample. This is acceptable, as the
entire
15% will likely not be needed in order to come to a reliable conclusion (although, in some rare
cases where enough responses cannot be obtained from the participants originally selected, the
original population must be re-visited to find more randomly selected sampling units).

22
4.1.3 Questionnaire Design
A questionnaire is a document designed with the purpose of seeking information from the respondents.

Steps in Questionnaire Design: -

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.

23
3. Questionnaire pilot

• Trial the new questionnaire with a small group of intended respondents or colleagues to
improve clarity, remove problems before the main survey

• Analyses the responses to the pilot survey (are some response categories never
used, analyse some response categories never used, analyse the missing data, and are
some Qs misunderstood?)

• Ask the respondents or colleagues for feedback Ask the respondents or colleagues
for feedback about design and questions

4. Redrafting the Questionnaire

• If problems were found then the questionnaire will need to be redrafted

• If there are major changes required it is best to then do another pilot

• If the problems are minor the researcher may If the problems are minor, the researcher
may then proceed to administration of the questionnaire to the full sample

5. Administration of the Questionnaire

• After development of the questionnaire, it is administered to the full sample of

respondents administered to the full sample of respondents

• How would this be done? Postal, telephone, structured interview. Mode of administration
differences.

• Bias issues in clinical follow up and patient satisfaction surveys can arise.

• Theresponsesarethen analysed in terms of theresearcher’s aims and

objectives.

24
 CHAPTER- 5

Research Methodology

25
 5. Research Methodology

Research Methodology

Research is a process of scientific and systematic search for pertinent information on a specific topic.
It is not just a process of gathering information; rather, it is about answering unanswered questions or
creating new knowledge or things which doesn’t exist in present. Good research is
conducted in a systematic manner; in such a way that it is planned, organized and has a specific goal.
Broadly, research can be either “Pure research” or “Applied research”. Pure research
is the research performed for the single goal of gaining knowledge. The applied research is
the one which is performed to solve a specific practical problem.

Research Methodology explains the research methods used in the context of study and explains why a
particular method or technique is opted over others, so that research results are capable of
being evaluated. It helps the researcher and the reader to understand the process of the research thus
giving it scientific merit. It includes the research design, population, instruments used to collect data,
ethical considerations, tools and techniques adopted for data analysis and its interpretation.

RESEARCH DESIGN

Both primary and secondary data were used in order to arrive at the conclusion of the objective of the
study.

Secondary Sources

Data was collected from research reports, Newspaper articles, Press releases and the like, to conduct
the research

Primary Sources

Some qualitative data has been arrived at by interacting with professionals working with Zomato.

A questionnaire was administered in order to study the objectives.

A sample size of 85 has been arrived at by circulating the questionnaire across social media platform,
Facebook, LinkedIn and E-Mail.

26
CHAPTER 6
FINDINGS

27
 6. Findings

Since every individual is allocated 3 localities each for doing market survey and understand the
behaviour of the market. So, the findings of each locality are presented as under.

6.1 Findings of electronic city

Electronic city, belonging to Hyderabad, is predominantly an IT area and management schools (more
individual B-schools, compared to apartments), surrounding the small business units, IT companies.
The survey conducted had 50 respondents, which include students, working individuals and working
married couples, which completes the target audience (TA). Following are the findings from the
survey.

Students:

I. Method of placing food home delivery order

60% of students preferred mobile apps to order from restaurants, 8% preferred direct walk in to
restaurant and 28% online portal.

28
 II. Level of satisfaction with online food delivery

66% of students responded satisfied, 16% were neutral and 16% highly satisfied

III. Awareness about Zomato

100% of the students were aware about Zomato app.

29
IV. Frequency of ordering food home delivery in a month

84% of students opted for 5-10 times a month, and 7% who order food 10-15times a month and 10%
order 10-15 times a month.

V. Number of people for which food is ordered

64% of students usually order food for 2-3 people and 22% of students order food for 3-4 peoples.
10% students order food for self

30
VI. Famous Entertainment Preferences

Around 14% of the students prefer going for movie and after that 34% prefer going out to eat. 44% of
students prefer travelling and rest prefer some other entertainment options.

Around 94 % students prefer KFC to order food online and the second preferable restaurant is the
hyper local restaurant where students prefer to order food most of the time, this may because the
cost
of food is less when compared to KFC or other known brands.

31
VII. Mode of ordering online

Students prefer to order food from food from Foodpanda as we have highest responded from this section
and the second preferred portal to order food online is Zomato and so on. Foodpands is a well-known
brand and has market large market share where is Zomato is a late mover to jump into online food
delivery sector.

32
CHAPTER 8
CONCLUSION

33
 7. CONCLUSION

Hyderabad is also called foodie’s paradise because of vast varietyof foods and
eatables available with
a touch of uniqueness and tradition. Popular cuisines in
Hyderabad includes traditional vegetarian (south Indian & North Indian, Chinese, Thai, Arabic
(Mughlai & Hyderabadi).

A survey done by FoodPanda.in states that Hyderabad being the Silicon Valley of India with a large
population of young working professionals beats other cities when it comes to ordering food between
3 p.m. and 7 p.m. with 18 percent of the total orders across India coming from the city.

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).
 Japanese and Hyderabadi cuisine seems to have lost the gourmet game by being
the last options preferred by foodies.
 Salads and Sandwiches (eight percent), Mughlai (seven percent), multi-
cuisine (three percent) and South Indian (two percent) 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 Hyderabad 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. Since Zomato is currently serving in only all major
cities, but seeing
the interest of the customers in the app it is trying to expand its market to all over India gradually.

34
 Bibliography

REFERENCES
• http://www.pce.uw.edu/courses/data-analysis-methods.html

• http://www.restaurantindia.in/article/growth/expansion/Online -fooddelivery-sees-a-
boom.a137/
• http://blog.zomato.com/post/94342869876/three-problems-we-are-tryingto-solve-at-zomato
• http://yourstory.com/2015/02/zomato-announces-online-food-ordering-india/

• http://www.financialexpress.com/article/companies/foodpanda -raises-110mn-from-rocket-
• http://www.hungryforever.com/story-mumbai-based-food-ordering-appzomato/

35
 APPENDICIES

APPENDIX

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?

a. Yes

b. No

Q4. Are you interested in using this app?

a. Yes

b. No.

Q5. Occupation?

a. Student

b. Working individuals

36
 c. Working married couples.

d. Home maker.

Q6. What are your famous entertainment preferences?

a. Movie

b. Going out for eating

c. Travelling

d. Others

Q7. No. of times you order home delivery 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?

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?

37