Hari Black Book

 CONSUMER BUYING PATTERN THROUGH ZOMATO APP
DURING COVID-19
“CONSUMER BUYING PATTERN THROUGH ZOMATO APP DURING COVID-19
IN AMBERNATH”
A Project Submitted to
University of Mumbai for partial completion of the degree of
Bachelor of Commerce (Management Studies)
Under the Faculty of Commerce
By
HARI KRISHNA CHALWADI
Roll no. 20252049
Under the Guidance of
Prof. VARSHA SALWANI
SHRI SIDH THAKURNATH COLLEGE OF ARTS & COMMERCE
ULHASNAGAR – 421 004.
APRIL 2021
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Certificate
This is to certify that Mr HARI KRISHNA CHALWADI worked and duly completed
his Project Work for the degree of BACHELOR OF BUSINESS MANAGEMENT
under the Faculty of Commerce in the subject of PROJECT WORK and his project
is entitled “CONSUMER BUYING PATTERN THROUGH ZOMATO APP
DURING COVID19 IN AMBERNATH”, under my supervision.
I further certify that the entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for any Degree or Diploma of any
University.
It is his own work and facts reported by his personal findings and investigations.
Prof.GuideName
Prof. Varsha Salwani
Date of submission: 31/03/2021
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DECLARATION BY RESEARCHER
I, HARI KRISHNA CHALWADI here by declare that the work embodied in this project
Work Title” STUDY ON CONSUMER BUYING PATTERN THROUGH ZOMATO APP
DURING COVID-19 form my own contribution to the research work carried out under the
Guidance of Prof. Varsha Salwani . It is a result of my own research work and has not been
previously submitted to any other University for any other Degree to this or any other
University.
Wherever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance with academic and ethical conduct.
(Hari Krishna Chalwadi)
College seat no.: _____________2020- 2021
Exam seat no.: _____________ 2020- 2021
Name & Signature of Researcher
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CHAPTER I
Introduction
E-Commerce: Any business activity of buying or selling of products, goods or services
online with the help of internet and with the help of electronic devices. Just with the
help of internet connection & an electronic device one can practice a lot of things like:
E-commerce can be classified into six types:

 Business to Business
 Business to Consumer
 Business to Administration
 Consumer to Consumer
 Consumer to Business
 Consumer to Administration
E-commerce in the current scenario is a rapidly growing business activity where in all the
products, goods and services are made available to you at your finger tips where in with
access to internet and any electronic device you can buy or sell anything and take part in
commerce activity anywhere, anytime and anyplace. It has made things very easy and
convenient and it saves us a lot of time which therefore has resulted in the growth of E-
commerce worldwide and in India it is growing at a rate of 15% every quarter and is
expected to do more in the upcoming years and the revenue amounts to US$7,011 million in
2018.With the coming of the 21st century, we have entered an “e” generation era. The
Internet has generated a tremendous level of excitement through its involvement with all
kinds of businesses starting from e-Commerce, e-Business, e-CRM, e-Supply Chain, e-
Marketplace, e-Payment, e-Entertainment, e-Ticketing, eLearning, to e-Citizenor e-
Governement. The Internet has been widely used in many sales and marketing activities,
from the collection of valuable data to the dissemination of information to different
stakeholders, for example, information retrieval, product communication, sales tool,
distribution channel, and as a customer support tool (Singh, Jayashankar and Singh 2001;
Calles 2000; Sandberg 1998; Peterson, Balasubramanian and Bronnenberg 1997). The
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Internet has opened a window of opportunity to almost anyone because of its ability to make
viable the conduct of business in cyberspace, or by connecting people worldwide without
geographical limitations. Consumers can order goods and services virtually anywhere, 24
hours a day; 7 days a week without worrying about store hours, time zones, or traffic jams.
The Internet has also provided new opportunities for marketers by offering them innovative
ways to promote, communicate, and distribute products and information to their target
consumers. E-commerce has grown phenomenally in the past decade for a variety of reasons
including changes in consumer lifestyles, technological advancements, increases in
consumer income and education, and rapid financial development throughout the world. The
use of the Internet as a shopping or purchasing vehicle has been growing at an impressive
rate throughout the last decade. The tremendous growth of online sales and the unique
functions of the Internet have drawn a great deal of attention from many companies rushing
in to set up businesses over the Internet without knowing what factors actually motivate
consumers to buy products or services online. Many marketers agree that Internet marketing
will definitely increase customer spending and loyalty to both online and offline products if
it is executed properly. This is due largely to the Internet’s significant advantage of two-way
communication and its ability to transmit information quickly and inexpensively when
compared to other traditional mass media using solely one-way communication
(Warrington, Abram& Caldwell 2000; Waldo 2000). The simultaneous and rapid rate of
consumer adoption of personal computers and network systems have encouraged and
pressured marketers to provide Internet retailing sites. Some researchers in fact predict that
the need for physical stores could be eliminated in roughly four decades and replaced with
electronic retailing (Cope 1996). While many marketers acknowledge the importance of
using the Internet in their marketing mixes, only a handful of researchers have studied what
factors encourage or discourage consumers when buying products or services online.
Despite the increasing popularity of the Internet, most knowledge of Internet marketing is
based on anecdotes and experiential evidence from television, radio, popular press or
magazines In summary, the benefits of using the Internet in marketing are enormous as they
offer a huge opportunity for marketers to create innovative activities that have not
previously been viable. However, marketers need to develop an insightful understanding of
consumer behaviour when purchasing products online. This information will help marketing
managers to plan their marketing mixes and offers to better meet customer’s requirements.
By doing so, companies will establish, maintain or increase customer satisfaction, build
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strong brand loyalty and ultimately provide consumers with a solid rationale for continuing
to buy the same brand. This study is thus significant as it is a preliminary attempt to identify
factors and their relative strength in influencing consumer decision making when buying
health foods online. The research problem and objectives of this study are addressed next.
Online food ordering
Services are websites that feature interactive menus allowing customers to place orders with
local restaurants and food cooperatives. Much like ordering consumer goods online, many of
these allow customers to keep accounts with them in order to make frequent ordering
convenient. A customer will search for a favourite restaurant, choose from available items,
and choose delivery or pick-up. Payment can be amongst others by credit card or cash, with
the restaurant returning a percentage to the online food company. Online food ordering
services are websites that feature interactive menus allowing customers to place orders with
local restaurants and food co-operatives. Much like ordering consumer goods online many of
these allow customers to keep accounts with them in order to make frequent ordering
convenient. A customer will search for a favourite restaurant chooses from available items,
and choose delivery or pick-up. Payment amongst others by credit card or cash with the
restaurant returning a percentage to the online food company. While-commerce has been
around for over a decade closing the gap between food and the internet has taken longer. The
first restaurants to adopt online food ordering services were corporate franchises such as
Domino’s and Papa John’s. Online food ordering could be called the response of the internet
to the desire for delivery food. It is a growing trend especially in urban areas and on college
campuses that allows people to order from restaurants featuring interactive menus, by use of
their internet connection. In many cases handle complicated web pages can be used to make
orders, though a lot of people rely on a desktop or laptop computer for this. ‘Ordering form
grocery stores to stock the kitchen, instead of placing one time orders with a restaurant. There
are several ways in which online food ordering from a restaurant may occur. A restaurant can
have its website with easy features for placing an order for pick up or delivery. Some add a
third option of being able to make reservation. Instead of calling for a delivery, people just
access the internet to the restaurant site and make their order Food diversity in India is an
implicit characteristic of India’s diversified culture consisting of different regions and states
within. Traditionally, Indians like to have Home-cooked meals – a concept supported
religiously as well as individually.However, with times due to increasing awareness and
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influence of western culture, there is a slight shift in food consumption patterns among urban
Indian families. It started with eating outside and moved on to accepting a wide variety of
delicacies from world-over. Liberalization of the Indian economy in the early 1990s and the
subsequent entry of new players set a significant change in lifestyles and the food tastes of
Indians. Fast food is one which gained acceptance of Indian palate after the multinational
fast-food players adapted the basic Indian food requirements viz. vegetarian meals and
selected non-vegetarian options excluding beef and pork totally from their menu.
Multinational fast food outlets initially faced protests and non-acceptance from Indian
consumers. This was due to primary perception that these fast food players serve only
chicken and do not serve vegetarian meals. Perceived expensive besides being out-of-way
meals in Indian culture. Today, fast food industry is getting adapted to Indian food
requirements and is growing in India. Gaining acceptance primarily from Indian youth and
younger generations and is becoming part of life. Keeping in view the Indian habits and
changing preferences towards food consumption, this study has its focus to understand the
factors affecting the perception of Indian youth, in the age group of 20-30 years, towards
consumption of fast food as well as towards making choice of fast food outlets.
Advantages for Electronic Ordering

There are advantages for both the customer and for the restaurants who participate in online
ordering. First, a customer can order at will when they have time to. Also, the customer is able
to customize their order the way they like it without errors in communication between the
customer and the person taking the order. In addition to customer advantages, the restaurant is
able to take more orders with less staff. The restaurant does not need a waiter or hostess to be
on the phone to take the order. The order can go straight to the kitchen.
Disadvantage for Electronic Ordering

Customers are not able to ask about quality of food or ask for any specialized diet foods. It is
more difficult to ask for gluten free or allergy free foods with online ordering. Also, it is
more possible for a customer to place an order, but never pick up the order which can lead to
waste of food and possibly a loss of profits.
Ordering food on the internet through certain apps is different from other sources of ordering
food. Technology development has increased the e- commerce companies in countries like
India. The Indian contemporary lifestyle has developed a behavior in acceptance towards the
food delivery system. According to certain study it has been observed that the influence of
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foreign culture has contributed such positive attitude in the minds of consumers regarding the
acceptance of online food ordering. E-commerce development has made online food ordering
services through electronic apps easy for people who expect to get food delivered at their
doorsteps. Though customers continue to good to restaurants to have meals, they feel
comfortable to order food through electronic apps from the same restaurant they prefer.
According to a report from Randseer consulting, India’s online food ordering sector saw a
solid growth rate in the quantity of everyday orders. This growth has rapidly increased the
number of orders to approximately 400000. With the rise of online food ordering, many apps
such as swiggy, zomato, uber etc have been launched to promote home delivery system. This
new technology helps the customers to order food from their comfort zones i.e. offices,
classroom, and hostel, etc. This paves as a disadvantage for the traditional system. In
summary, the benefits of using the Internet in marketing have great advantage as they offer a
huge opportunity for the marketers to create innovative ideas. However, the investors need to
develop a brief understanding of the consumer behavior when purchasing products (food)
online. This will help the managers to implement new strategies to satisfy the customer’s
requirement. Thereby, companies will establish, or increase customer satisfaction and also
build a strong brand loyalty. Ultimately, it will provide consumers with a solid rationale for
continuing to buy the same brand. This study is thus significant as it is a preliminary attempt
is to analyze the perception of the consumers towards online food ordering and to identify the
factors that influence the consumer’s decision when they order food online and associate
advantages and disadvantages. The study also provides an insightful understanding regarding
the expectation of the consumers towards online food ordering.
THE FOOD SERVICE INDUSTRY:
It is a branch of the national economy that produces and sells prepared food to consumers. It
is developed more in cities than in rural areas. The food service industry is one of the largest
parts in hospitality industry. The common definition of food industry is, “the practice or
business of manufacturing, transportation and service or dispensing prepared food such as at
a restaurant.”
The modern concept of preparing food as a form of business can be traced all the way back to
at least the 11th century. There are millions of people away from their homes everyday either
by necessity or by choice. The restaurants and catering business with the help of mobile food
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service feed a huge number of people. The food service industry is one of the largest and fast
growing industries in the world
HISTORY OF ONLINE FOOD ORDERING:
According to studies, it was the period of World War II when this service was started because
most of the homes and kitchen appliances of a large population was destroyed and they did
not have any place or food to cook. In Hemel Hempstead in 1947, the service was properly
started by delivering warm and pre-cooked food to people through vans. From UK, the idea
of food delivery services soon spread to The United States Of America. Apart from
delivering food to those who required it, they also aimed to provide food delivery to those
households that were poor. This method soon spread to other parts of the country including
New York and Columbus. When other parts of the world also came to know about the service
and the benefits related to them, they also excelled in this field. In Australia, the food
delivery services started in 1952
ONLINE FOOD ORDERING IN INDIA:

Internet has generated a tremendous level of excitement through its involvement with all
kinds of businesses starting from e-Commerce, e-Business, e-CRM, e-Supply chain, e-
payment etc. The growing no. of internet user in India provides a bright future for online
related shopping .The online shopping has reached a massive growth and has become an
important part of our lifestyle. In the recent times India has entered “e” generation era. With
the population of 1.2 billion India is one of the biggest consumer markets in the world today.
Moreover 50% of the population fall under the age of 25; making India among the youngest
population in the world too. Young India’s appetite is one of the key for demand in food
industry. The other demand driving factors are:
 Promising income and consumption levels: many young Indians are being
productively employed in IT sectors which has raised their living standards. This
social change fuels the advance of online food ordering.
 Rising number of workmen: the increasing no of working men and women is
another demand driver for food industry.
 Emerging of logistics provider: the rise in the local logistic providers for food
industry also motivates online food ordering.
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 Delivery dedicated websites: Speaking of Food Panda, Zomato etc have their own
websites from where we could order food.
 Perception of the consumer: Perception is defined as a process through which
individuals are exposed to information, attend to the information, and comprehend the
information (Mowen, 1995). Understanding perception and the factors determining
how consumers view products and services is a key to effective.
ONLINE FOOD ORDERING IN INDIA:
The base of the study was done in specifically India District formerly known as Thane is a
major tier II city in the Indian state in Tamil Nadu. The India district is the fourth largest
urban agglomeration in the state. Triuchirappalli sits almost in the middle of the state.
India recorded history begins in the 3rd century BC, when it was under the rule of the Cholas.
The city has also been ruled by the Pandyas, Pallavas, Mutharaiyars, Vijayanagar
Empire, Nayak Dynasty, the Carnatic state and the British. The most prominent historical
monuments in India include the Rockfort, the Ranganathaswamy temple at Srirangam and
the Jambukeswarar temple at Thiruvanaikaval. The archaeologically important town
of Uraiyur, capital of the Early Cholas, is now a suburb of India. The city played a critical
role in the Carnatic Wars (1746–1763) between the British and the French East India
companies. The city is an important educational centre in the state of Tamil Nadu and houses
nationally recognised institutions such as Indian Institute of Management (IIMT), Indian
Institute of Information Technology (IIIT) and National Institute of Technology (NITT).
Industrial units such as Bharat Heavy Electricals Limited (BHEL), Golden Rock Railway
Workshop, Ordnance Factory India (OFT) and Heavy Alloy Penetrator Project (HAPP) have
their factories in the city. The presence of a large number of energy equipment manufacturing
units in and around the city has earned it the title of Energy Equipment and Fabrication
Capital of India.India is internationally known for a brand of cheroot known as the Thane
cigar , which was exported in large quantities to the United Kingdom during the 19 th century.
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A major road and railway hub in the state, the city is served by the India International
Airport (TRZ) which operates flights to the Middle East and Southeast Asia. Online food
delivery started in India in the late 2016. The first online food delivery website was
Feenix.com. Feenix was started by a group of guys from St.Joseph’s college, India. It was the
first startup which gave a new wave of ease to order food through online. Residents of India
came to know about food ordering only through this Then in the year 2018, many known
food apps such as Swiggy, Zomato and Uber Eats made their debut in India. With their entry
miny local online delivery apps such as Kaikart.in, Munchbox and Feenix faced a huge drop
in sales. These new apps attracted customers through its easy user interface and exciting
offers. Apps like Swiggy gave a discount for new users and also faster delivery services
attracted a huge crowd of customers to try it.
WHY PEOPLE ORDER:
 No cooking required.
 We can get food whenever we want.
 Free from going to restaurants and pickups.
FOOD ORDERING APPS IN INDIA:
 Swiggy
 Zomato Order
 Uber Eats
 Foodpanda
 Domino’s
 Pizza Hut
 JustEat
 Faaso’s
 TastyKhana
 FoodMingo
FOOD ORDERING APP IN INDIA DISTRICT:
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 Swiggy
 Zomato Order
 Uber Eats
 Domino’s
SWIGGY: Swiggy is one of the top rated food ordering mobile application in India. It was
aroused by the prospect of giving entire sustenance requesting and conveyance arrangement
from the best nearby hotels to the customers. Swiggy are the best food delivery app in India
and other top cities in India.
ZOMATO: Zomato is an online food ordering service which is launched by popular

restaurant finder Zomato. It is a food delivery service in India operating from all major cities.
Zomato is the biggest rival for Swiggy in India.
UBER EATS:Uber Eats is a popular online food ordering app in India which operates in all
major cities including Mumbai, Chennai, Bangalore, Hyderabad, Delhi and more. This
mobile app is acceptable for both android and iOS devices. This is a venture of Uber
Technologies, Inc. who is also own popular taxi service across the globe.
DOMINO’S: Domino’s is a prominent pizza delivery app is also available for both android
and iOS devices. The telephone call pizza ordering service is now upgraded as a mobile app
to place an order without calling.
STATEMENT OF THE PROBLEM: To study the customers perception towards online

food ordering among the Customers of Tiruchirapalli district.
ZOMATO
Zomato is a restaurant search, discovery and delivery service which was founded in
2008 by Deepinder Goyal and Pankaj Bhardwaj. It operates in over 23 countries which
includes India, Australia and the United States. It features restaurant information which
gives the customer or the user information about best dinning place their menus and
photos uploaded by local street teams, as well as user reviews and ratings. The
company also provides a variety of services like online ordering, table reservation etc.
Zomato collects all the required information from every restaurant on a regular basis to
ensure their data is fresh. They have a vast community of food lovers and bloggers who
share their own reviews and photos; so that the customers have all that they need to
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make their preferred choice.
INVESTMENT
The online food delivery aggregator Zomato has approximately raised around USD
16.7 million in the year 2010-13 from Info Edge India, by offering stakes of 57.9% in
Zomato. It also raised USD 37 million additionally from Sequoia Capital and Info Edge
India.
Zomato completed another round of funding which was jointly taken from Info Edge
India and Vy Capital in November 2014, the funding being around USD 60 million and
at a post-money estimation of USD 660 million.
It had funds coming from a Singapore government owned company-Temasek which

along with Vy Capital invested around USD 60 million in September. Info Edge India,
Sequoia Capital and Vy capital led a further round of investment of USD 50 million.
In October 2018, Zomato raised $210 million from Alibaba's payment affiliate Ant
Financial. Ant Financial received an ownership stake of over 10% of the company as
part of the round, which valued Zomato at around $2 billion. Zomato had also raised an
additional $150 million also from Ant Financial earlier in 2018.
Values followed by Zomato:

 Possession
 Judgement
 Communication
 Interest
 Valour
 Teamwork, Initiative, Leadership.

Starting off with providing information about over 1 million restaurants worldwide to
its users, they are now making dining much convenient and more pleasing with services
like online ordering of food and table reservations.
HIGHLIGHTS OF THE ZOMATO DELIVERY SERVICE

Their main aim is to maximise their business potential by targeting the hungry customers.
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They provide a user friendly app base which is easy to use and place an order.
Online payments are made more easier, simpler, convenient which provides ease of
payment with secured transactions and no extra service charge to banks.
They provide a lot of promotions and offers to attract a lot of customers.
They conduct Loyalty programs where in the loyal customers are rewarded and given
additional benefits.It provides exceptional customer care service which handles the
queries, complaints, refunds and technical issues.
SWOT ANALYSIS OF ZOMATO
1. STRENGTHS
 It is the first delivery service in most of the nations.

 It has a fast expanding and growing market.
 The app is user friendly compared to its competitors and also has won many
awards for its design.
 Zomato has a huge customer base which is an added advantage.
 It has a large number of investors and has a enough funding.
 Zomato has made a lot of profits since the time it was launched.
 It has a very good marketing strategy which has helped in acquiring a lot of
customers.
2. WEAKNESS
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 The major concern was related to the privacy and security issues for the app – A
recent incident where in the app was hacked and almost 17 million users data
was leaked.
 Zomato still requires a lot of expansion.
 Word of mouth and Facebook check-ins have lessened the number of people using
Zomato.
3. OPPORTUNITIES
 Further expansion.
 More acquisitions.
 The concept of Cloud restaurant where the restaurants need not have a physical
existence to sell their food, instead they can sell their food through Zomato.
 Zomato does have a huge following but the users do not interact with each
other. Creating a forum and a community out of the users already following
Zomato can be a huge benefit for the brand.
4. THREATS
 The major threat would be from the new entrants, many new food delivery start ups
have been emerging in the recent years.
 Not all the customers will be loyal towards one aggregator, if there is a better one
providing offers and discounts the existing customers may move on.
 Uncertain Research and Development outcomes, sometimes if the predictions of

the R&D may not work as thought it might lead to failure.
SWIGGY
Swiggy is an Online Food ordering and Delivery Company whose headquarter is located in
Bangalore, India. The inspirational thought of Swiggy offering a complete food ordering and
delivery service online through their apps and web from the neighbouring restaurants around
to the urban foodie.
The idea was induced into their heads noticing the vast gap between the food ordering and
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delivery space, where in a lot of restaurants faced the issue of not having sufficient delivery
boys, so this sparked a thought and they started a small setup on August 2014 with a team of
six delivery boys and covering 25 restaurants which soon became a hit and now it operates
around 13 cities and it offers a single window for ordering from a large range of restaurants,
they have their own exclusive fleet of delivery personnel to pick up orders from restaurants
and deliver it to customers. Having their own fleet gives them 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.
Started by three young entrepreneurs Swiggy set its foot mark on August 2014, the online
food ordering and delivery start-up Swiggy as of today has more than 5,000,000 mobile
application installations, and has become the most popular known brand name for almost
everyone who wants to order food.
Swiggy on an average has a tie up with more than 25,000 restaurants, Swiggy has its own
manpower which has a fleet of in-house delivery boys and it operates across different cities in
India, which includes Bangalore, Mumbai, Chennai, Delhi, Hyderabad and more.
Two graduates from BITS Pilani, Sriharsha Majety and Nandan Reddy came up with the idea
and decided they wanted to change things and make life easier by changing the way India eats
- all at the finger tips the customer. Their explicit idea of ’hyper local food delivery’, all they
wanted was the technology to power it and were introduced to Rahul Jaimini, who then
transformed that vision into reality with the first website. And with this, these young chaps
launched Swiggy an online food ordering & delivery platform, which has now made it big and
has made its way in becoming one of the top food delivery aggregator.
After having a slow start with less takers and people not relying on the online food delivery
services, Swiggy made it big by understanding the customer needs and wants and by
providing a lot of offers and top notch advertising they transformed themselves into an
unstoppable force that has now changed the way India eats.
Values followed by the Swiggy:

 Customers come first.
 Striving for excellence.
 To be sincere and display highest levels of reliability.
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 Exhibit prejudice for action.
 Being polite and humble towards its customers.
BENEFITS SWIGGY EMPLOYEES RECEIVE

 Swiggy provides personal accident insurance.
 It provides group medical insurance for all its employees/delivery boys.
 Pre-loaded food cart.
 Mobile allowance is given to all the delivery boys.
 Maternity and implementation leave policy.
 Provides free support on tax and investment planning.
Market Size in India

The meaning of foodtech has evolved over the years. Earlier, it referred to food processing
and the technology used for its manufacturing. Now, it pertains to the online food ordering
and delivery services market. Adequate funding and investments in this market space have
enabled companies to provide online food delivery services that have never been seen before.
The popularity of online food delivery service can be attributed to the several benefits it
provides, such as food delivered to the doorstep of the customer, various payment options,
attractive discounts, rewards, and cash back offers. Restaurants and cafes also find it
profitable to sell their food through online mediums since it reduces a significant amount of
operational overheads. College students, working couples and office goers are the key target
audience of food tech companies. More than 80% of the orders that come on these online
food delivery platforms are from the top five Indian cities, out of the 20 where they are
active. The report online food delivery market in India (2018-2023) takes a look at the
current market scenario, its segmentations, drivers and deterrents of growth, investments, the
competitive landscape, and recent developments.
 Revenue in the Online Food Delivery segment amounts to US$8,167m in 2019.
 Revenue is expected to show an annual growth rate (CAGR 2019-

2023) of 9.1%, resulting in a market volume of US$11,569m by 2023.
 The market's largest segment is Restaurant-to-Consumer Delivery with
a market volume of US$7,477m in 2019.
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 In global comparison, most revenue is generated in China (US$38,411m in
2019).
Pestle Analysis:
Figure: 1.3
Political
Any business firm wishing to enter the overseas market is highly prone to political risks. The
political decisions made by a host country are likely to affect the organizational productivity
and profitability. Extreme political actions can very detrimental. The digital India campaign
that was recently launched by the country's Prime Minister Narendra Modi is more likely to
allow the company to get more internet penetration in India and everyone can easily access
from every corner of the market. Zomato can exploit this opportunity to cover many
restaurants of cities using the Digital India Campaign. The Indian government puts more
focus on ease of doing business in the country because it encourages foreign direct
investment. In this regard, Zomato can be a beneficiary with such kinds of investment. The
government puts emphasis on skill development among the youths who will eventually help
many people with skills and knowledge. Zomato requires skilled people to enable it to
penetrate and establish itself in the market. In this case, Zomato can hire skilled people from
the Pradhan Mantri Kaushal Vikas Yojana program that develops skills of the youths.
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Economic
Between the periods of 2011 and 2014, Zomato achieved an overwhelming growth by
1399%. This comes as a result of its tremendous achievements in 22 countries, thus,
contributing effectively to economies of the countries. Besides, there is a potential rise in
service prices after the country announced a service tax from 12.36% to 14%. This move is
likely to affect the economic well-being of Zomato. Furthermore, the company is initiating
cashless transaction aimed at creating jobs in different countries. As it stands, the company
has 2319 employees, and it has somehow managed to solve the unemployment problems in
the country. Lastly, the company attracts several investments as well as funding from the
government and foreign investment, all of which are good for the country's economy.
Socio- Cultural
In the last six years, Zomato has turned out to be the country's favourite online restaurant
discovery tool. However, it has influenced the manner in which individuals select their
preferred restaurants. The changing lifestyle patterns and income levels of the Indian
working population, and this is advantageous to Zomato. This is because many young people
and new age working couples like eat out, with this category attracting about 30% in 2012.
For this reason, user engagement in its website is therefore critical for customer participation.
Finally, customer service Zomato has been amazing and going by the friendly replies from
the customers, the company has managed to maintain customer loyalty. As a dimension of
social engagement with people, Zomato stays ahead over its competitors.
Technological
Zomato has enjoyed a greater advantage by using technology in designing a beautiful user
interface that makes it easier for the users to browse. One advantage that Zomato continues to
enjoy out of this kind of technological innovation is that the service is much faster despite the
fact that the high resolution is needed for the menus. In essence, the technology encourages
online services. For example, incorporating what the restaurant into mobile app helps the
customers to select the restaurant on the go. The restaurant information is customised in a
manner that the customer to obtain the information he or she needs without necessarily
making a hassle. Technology also makes the company have a good business model that keeps
the customers' information. The only thing a customer is required to do is to log and use the
service. This move exposes the company to a competitive environment with the likes Google.
However, since the product is purely made to for Indian restaurants, it cannot serve the
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demands of the global market. Therefore, Zomato has used technology effectively to achieve
competitive advantage
Environmental
Achieving business sustainability is dependent on how the company addresses the ecological
requirements and in online food delivery business these days all major players come up
together to work for environmental welfare. Bengaluru-based food ordering and delivery
platform Swiggy has announced the launch of ‘Swiggy Packaging Assist’, a new initiative
that will help restaurant partners access a range of innovative packaging solutions.. Also,
Gurugram-based restaurant search and discovery service Zomato has expressed its concern
over the environmental hazards caused due to plastic packaging. It has introduced a new
feature in their app that enables customers to opt out of cutlery when they order, thereby
reducing the use of plastic.
Legal
The company is required by the Indian law to comply with all regulations that control
technology firms in the country. This ensures that it is used effectively without being
subjected to abuse. The Food Safety and Standards Authority of India (FSSAI) has issued
revised guidelines that directly impact online food and grocery operators such as Grofers and
BigBasket as well as food delivery platforms like Swiggy and Zomato. The national food
regulator said it's stepping up scrutiny of ecommerce food companies because there can be no
compromise on last-mile delivery and safety of food products. Food products offered for sale
are liable to sampling at any point in the supply chain. Companies will also need to provide an
indicative image of the food on their platforms so that consumers can recognise the product.
All mandatory information mentioned in the Food Safety and Standards (FSS) Act will also
have to be provided to consumers before purchase and only fresh food should be delivered to
consumers.
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Porter’s Five Forces Model:
Figure: 1.4
Threat from Substitutes Zomato is of the strong belief that their focus on restaurant
discovery and facilitating a holistic dining experience gives them an edge over competition.
As Deepinder Goyal, founder, Zomato, says, Zomato is driven to constantly improve our
product within the space with a small margin of error. Zomato realizes that it is a winner-
takes-all and is therefore focused on dominating the competition within its space.
Google Maps - Latest release of Google Maps for desktops includes listings of restaurants in
the neighborhood. It also facilitates restaurant search and provides photos, reviews, ratings
and even the floor the business is located at. Zomato’s advantage over Maps is that Maps
hasn’t started menu listings yet.
Local Competition- FoodPanda and swiggy- FoodPanda gained first mover advantage by
launching the online order facility earlier than Zomato, thus resulting in Zomato losing
relevant market share
JustDial- JustDial offers a wide range of restaurant listings; however, it loses out against
Zomato as it doesn’t have an equivalent collection of reviews, photos and user engagement.
Also, in the minds of consumers, Zomato offers a specialized and differentiated service thus
making it a natural choice.
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Global Competition- Yelp-Basic difference between Yelp and Zomato is that while Yelp
publishes crowd-sourced reviews, organizes social events and provides basic data about
businesses, Zomato provides information (photos, menus and geographic coordinates) and
allows users to create their own network of foodies for personalized recommendations. The
flipside for Zomato: Total number of unique monthly visitors to Yelp is a staggering 139
million, amounting to four times Zomato’s existing traffic of 35 million. In terms of
revenue, Zomato earned $6 million in revenue compared to Yelp’s $232 million in 2014.
Timeout- Founded in 1968, it has become a global authority on entertainment and events all
across the world. With a reach to 39 million people, it has a huge market share, however is
more known for providing information on events and happenings than restaurant listings and
reviews Since majority of users check rating and not reviews, it is very important to
maintain fair ratings on the website.
Competitive Rivalry-
Foodpanda– foodpanda who has also acquired TastyKhana and JustEat is a competitor to
Zomato in this marketspace. But, as per one of interviews with Mr. Deepinder Goyal, Zomato
doesn’t consider it as a threat because foodpanda in spite of being present in market for 3
years has clocked only 10,000 orders a day whereas people visiting Zomato has 1, 00,000
searches a day. Zomato’s large sales team gives an added advantage to Zomato.
Burrp! – Burrp! is a competitor to Zomato. But due to its expansion from restaurant listing to
other divisions such as events and retail outlets, the company’s focus has been distributed
whereas Zomato has stuck to its core functions.
TinyOwl – TinyOwl is an emerging start-up with business model of food ordering through
App on smart phones. It is currently present in Bangalore, Mumbai, Gurgaon, Hyderabad and
Pune.
Swiggy- Swiggy 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 neighborhood restaurants to the urban foodie. A single window for
ordering from a wide range of restaurants, they have our own exclusive fleet of delivery
personnel to pick up orders from restaurants and deliver it to customers. Having their own
fleet gives them the flexibility to offer customers a no minimum order policy on any
restaurant and accept online payments for all partner restaurants that they work with. Our
delivery personnel carry one order at a time which ensures they get reliable and fast
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deliveries.
UberEATS- On-demand cab hailing services firm Uber on Tuesday launched a new food
delivery service named UberEATS to rival services offered by Zomato, foodpanda and
Swiggy. Food prices are set by restaurant partners according to their own menu and there’s a
delivery fee of Rs 15, inclusive of taxes. There is no minimum order size.
Barriers to Entry – Barriers to entry are very high as there are already major players
established in market. Zomato is very well established and market leader. There are other
players such as foodpanda, TinyOwl and ubereats, which have already having decent market
share.
Bargaining power of buyers
 Presence of various competitor apps in the market means that it is easy for the
buyers to switch to other apps like food panda, swiggy, ubereats.
 With improving features, and upgrades such as food ordering, people may switch to
other apps offering better features.
 Since it is easy-to-use online platform, constraints related to distribution is
eliminated. This removes a potential factor for bargaining of buyers
Bargaining power of suppliers
For Zomato the suppliers are the restaurants with which the company makes a
collaboration and deliver the food of that particular restaurant to the end customer.
As these days there are many online food delivery businesses available in the market
thus, restaurants have the ability to partner with any of the major food delivery services
with fairly low switching cost hence it makes the bargaining power of supplier strong.
Threat of new entrants Advanced technologies:
This is another area where Zomato has taken huge strides. As mentioned earlier in the
technological analysis, the app and website are aesthetically beautiful and the whole
experience is enriching! Thus new entrants will have to come up with an overhaul of the
whole strategy as far as application and technological advancements are concerned.
Innovation in technology positively affects Zomato.
Industry affects economies of Scale:
Economies of scale positively affects large producer by lowering the cost of the next unit of
output at lower cost. Thus it is relatively easier and economical for Zomato to expand at a
faster pace. Any new entrant will have to pump in a lot of investment to challenge Zomato
because they will have smaller economies of scale. However, this is one area where if the
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new entrant can generate enough capital they can challenge Zomato on the ground level even
though economies of scale are tilted towards Zomato.
Strong Brand Name:

A brand name is a must to survive in the industry. Zomato has been very effective in the past
few years. However, they have been late in entering the ordering segment and Food Panda has
taken effective strides in the same. Any new competitors will need to work extensively on
their brand value in order to effectively compete. Thus this threat is low for Zomato however
they need to constantly innovate in different verticals to ensure that they build on the
advantage that they have created.
Geographical Factors affecting Competition:

Food Panda is present in 200 Indian cities and has made huge strides in the recent past
however it is still considerably lagging Zomato in terms of territory covered as Zomato has
presence not only in huge number of Indian cities but also in different countries and they are
taking strides very fast. Tying up with restaurants and getting the information organized in the
way Zomato has done is a huge challenge for any new entrant. However, seeing the pace at
which Zomato has reached out and expanded it seems possible and thus Zomato will have to
constantly maintain that advantage and keep coming out with new and innovative models.
MARKETING STRATEGY
Marketing strategy is very much important for developing any of the business. Without it, the
effort of the business to attract customer is random and very inefficient. The main focus of
your strategy must make sure that your product should fulfill the demands of the consumers
and as well as it maintains the long-term relationship with those consumers. To achieve this,
you will have to initiate flexible strategy that responds to change in customer demand and
perception. It may also give brand name to your product which will help you to run your
business in new markets smooth and efficient manner. First of all the main purpose of your
marketing strategy should be to identify the weather the target customer's are satisfied with
your product and services of your business. Once you have created and implemented your
strategy, try to identify the feed from you customer and if any changes or improvement is
required apply it for the maximum satisfaction of customersThis helps you to identify that,
where your strategy needs to be improved and how it can be developed, so that it can be
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implemented for effective action. Before applying any strategy in the business proper
planning programs must be organized within the members of the organization.
What is marketing?
"Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large." From the above definition we are able to understand that a successful
marketing deals with satisfaction of both the parties. The definition basically explains that
there is a simple process i.e. "selling something to somebody" however, the definition
conveys that an exchange of goods and services without any barter system and having
common currencies, that exchange is called a sale. So while achieving the goals of the
marketing by selling, it is not compulsory that both the parties should agreed upon the
transaction. Satisfaction of both parties is a hided in the exchange relationship. Marketing
must understand the "product, ideas and services" along with the "Needs &Wants" of the
consumers. Marketing must not only understand this equation but also establish the policy to
maintain balance between both the sides, by implementing "marketing strategy".
DEFINITION OF MARKETING STRATEGY
 Marketing Strategy is a set of specific ideas and actions that outline and guide decisions on
the best or chosen way to create, distribute, promote, and price a product or service (manage
the marketing mix variables).
 A marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable
competitive advantage.
Introduction McDonald's
McDonald's in India is a 50-50 joint venture partnership between McDonald's Corporation
[USA] and two Indian businessmen. Amit Jatia's company Hard castle Restaurants Pvt. Ltd.
owns and operates McDonald's restaurants in Western India. While Connaught Plaza
Restaurants Pvt. Ltd headed by Vikram Bakshi owns and operates the Northern operations.
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Amit Jatia and Vikram Bakshi are like-minded visionaries who share McDonald's complete
commitment to Quality, Service, Cleanliness and Value (QSC&V). Having signed their joint-
venture agreements with McDonald's in April 1995, they trained extensively, along with their
Indian management team, in McDonald's restaurants in IndFromsia and the U.S.A. before
opening the first McDonald's restaurant in India. Mc Donald's international through its
wholly owned subsidiary McDonald's India entered into two JVs, From with Connaught
Plaza Restaurants Pvt. Ltd. in the northern & eastern region and another with Hard castle
Restaurants Pvt. Ltd. in the western & southern region. As a leader in QSR (Quick Service
Restaurant) segment McDonalds has piFromered various industry benchmark practices over
the past decade of serving Indian customers, including new concepts.McDonalds is a leader
in convenient foods and beverages, with revenues of about $23 billion and over 1.6 million
employees serving the customer’s worldwide. The company consists of the snack business of
Beverages and Foods. PepsiCo brands are available in nearly 115 countries having more than
24,500 restaurants in the world providing 24 hour service having about 1 billon customers to
be served all over the world.
McDonalds’s success is the result of superior products, high standards of performance,
distinctive competitive strategies and the high integrity of our people. McDonalds is
continuing to expand and introduce new alternative beverages in the market. Approximately
85% of McDonald’s restaurant businesses world-wide are owned and operated by franchisees
.All franchisees are independent, full-time operators. McDonald’s was named Entrepreneur’s
Number-From franchise for 1997.
Mc Donald's in INDIA
• McDonald’s entered India in 1996.
• McDonald’s India has a joint venture with Connaught Plaza Restaurants and Hard
Castle Restaurants.
• Connaught Plaza Restaurants manages operations in North India whereas Hard Castle
Restaurants operates restaurants in Western India.
• Today it has around 211 Restaurants across India.
• Presently, it has around 57 outlets in the National capital region.
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McDonald’s has developed a menu especially for India with vegetarian selections to suit
Indian tastes and preferences. Keeping in line with this, McDonald's does not offer any beef
or pork items in India. In the last decade it has introduced some vegetarian and non-
vegetarian products with local flavours that have appealed to the Indian palate. There have
been continuous efforts to enhance variety in the menu by developing more such products.
McDonald's has also re-engineered its operations repeatedly in its 11 years in India to address
the special requirements of a vegetarian menu. Vegetable products are 100% vegetarian, i.e.
 They are prepared separately, using dedicated equipment and utensils.
 Only pure vegetarian oil is used as a cooking medium.
 Cheese and sauces are completely vegetarian and egg less.
 Separation of vegetarian and non-vegetarian food products is maintained throughout

the various stages of procurement, cooking and serving.
BUSINESS MODEL
The McDonald's Corporation's business model is slightly different from that of most other
fast-food chains. In addition to ordinary franchise fees, supplies, and percentage of sales,
McDonald's also collects rent, partially linked to sales. As a condition of the franchise
agreement, the Corporation owns the properties on which most McDonald's franchises are
located. The UK business model is different, in that fewer than 30% of restaurants are
franchised, with the majority under the ownership of the company. McDonald's trains its
franchisees and others at Hamburger University in Oak Brook, Illinois.
According to Fast Food Nation by Eric Schlosser (2001), nearly From in eight workers in
the U.S. have at some time been employed by McDonald's. (According to news piece on Fox
News this figure is From in ten). The book also states that McDonald's is the largest private
operator of playgrounds in the U.S., as well as the single largest purchaser of beef, pork,
potatoes, and apples. The selection of meats McDonald's uses varies with the culture of the
host country.
McDonald’s corp. is currently From of the most successful peoples products

company in the world with annual revenues exceeding $23 million and has more than 1.6
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million employees. McDonald’s products are recognized and are most respected all around
the globe. Currently, its divisions operate in all over the world in beverages, snack foods, and
restaurants. The corporations increasing success has been based on high standards of
performance, marketing strategies, competitiveness, determination, commitment, and the
personal and professional integrity of their people, products and business practices.
PRODUCTS
McDonald's predominantly sells hamburgers, various types of chicken sandwiches and

products, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's
offers salads and vegetarian items, wraps and other localized fare. This local deviation from
the standard menu is a characteristic for which the chain is particularly known, and From
which is employed either to abide by regional food taboos (such as the religious prohibition
of beef consumption in India) or to make available foods with which the regional market is
more familiar (such as the sale of McRice in IndFromsia).
PRICING STRATEGY
Value Ladder strategy:-
i. Started offering value meals in a range of prices.

ii. Ensure affordability and attract widest section of customers.
iii. Brought the customer and provided arrange of entry-level products.
iv. Try those new items and graduate to higher-rungs
v. E.g. - if a customer starts with McAloo Tikki, he will finally graduate to McVeggie
and so in Non veg.
80-20 MENU BOARD
1. 80% visual.
2. 20% descriptive.
3. Easier for customers to understand what 29, 39, 49, 59, 89, 99 rupee options are.
4. Pricing range, quick service, no-tips environment attracted middle class and students.
PACKAGE DEAL
• The most common strategy in fast food industry.
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• The most preferred style for customers of McDonald’s.
• Plays on Psychological factor of the customer.
• Peoples appreciate the resulting simplification of the purchase decision
ADVERTISING
Over the years, McDonald's has developed TV advertising campaigns that have become, like
McDonald's, a part of our lives and culture. McDonald's commercials have focused not only
on product, but rather on the overall McDonald's experience, portraying warmth and a real
slice of everyday life. This "image" or "reputation" advertising has become a trademark of the
company and created many memorable television moments and themes, including
 McDonald's is Your Kind of Place (1967)

 You Deserve a Break Today (1971)
 We Do it All for You (1975)
 Two all beef patties special sauce lettuce cheese pickles onions on sesame seed bun
(1975)
 You, You're The From (1976)
 Nobody Can Do It Like McDonald's Can (1979)
 Renewed: You Deserve a Break Today (1980 & 1981)
 Nobody Makes Your Day Like McDonald's Can (1981)
 McDonald's and You (1983)
 It's a Good Time for the Great Taste of McDonald's (1984)
 Good Time, Great Taste, That's Why This is My Place (1988)
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 Food, Folks and Fun (1990)
 McDonald's Today (1991)
 What You Want is What You Get (1992)
 Have you Had your Break Today? (1995)
 My McDonald's (1997)
 Did Somebody Say McDonald's (1997)
 We Love to See You Smile (2000)
 There's a little McDonald's in Every From (2001) - Canada Only
 I’m lovin' it (2003)
McDonald's has for decades maintained an extensive advertising campaign. In
addition to the usual media (television, radio, and newspaper), the company makes significant
use of billboards(outdoors, on which large advertisements or notices are posted.) and signage,
sponsors sporting events from ranging from Little League to the Olympic Games, and makes
coolers of orange drink with their logo available for local events of all kinds. NFromtheless,
television has always played a central role in the company's advertising strategy. The taglines
were always centralized towards the concept of overall dining experience and complete
service satisfaction.
EMPLOYEE BENEFIT PLANS
The Company’s Profit Sharing and Savings Plan for U.S.-based employees includes a
401(k) feature, a leveraged employee stock ownership (ESOP) feature, and a discretionary
employer profit sharing match. The 401(k) feature allows participants to make pre-tax
contributions that are partly matched from shares released under the ESOP. The Profit
Sharing and Savings Plan also provides for a discretionary employer profit sharing match at
the end of the year for those eligible participants who have contributed to the 401(k) feature.
All contributions and related earnings can be invested in several investment alternatives as
well as McDonald’s common stock in accordance with each participant’s elections.
Participants’ contributions to the 401(k) feature and the discretionary employer match are
limited to 20% investment in McDonald’s common stock. The Company also maintains
certain supplemental benefit t plans that allow participants to (i) make tax-deferred
contributions and (ii) receive Company-provided allocations that cannot be made under the
Profit Sharing and Savings Plan because of Internal Revenue Service limitations. The
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investment alternatives and returns are based on certain market-rate investment alternatives
under the Profit Sharing and Savings Plan.
TRAINING
 February 24, 1961, Hamburger Universities first class of 14 students graduated.

Today, more than 5,000 students attend HAMBURGER UNIVERSITY each year.
 Since 1961, more than 80,000 restaurant managers, mid-managers and
owner/operators have graduated from this facility
 McDonald’s invests more than $1 billion annually in training
 Best Place to Work” – Fortune Magazine 2005
FINANCE DEPARTMENT
McDonald’s Finance Department has two key areas of responsibility: financial reporting and
management accounting. Although each of these functions has different priorities, working
together ensures the best financial position for the company now and for the future.
McDonald’s has two sources of profit:
 Sales made by company-owned restaurants

 Rental and royalty income from franchised restaurants
RESTAURANT SALE
McDonald’s retains all of the profit earned by company-owned restaurants. In addition to

variable costs, which increase or decrease depending on the level of sales, McDonald’s also
incurs costs that are largely fixed, for example utilities and advertising, which need to be paid
for even before the restaurant makes any sales. Increasing sales and controlling costs are
fundamental to ensuring the profit of each restaurant is either maintained or increased.
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 SUPPLY CHAIN MANAGEMENTR AT McDonald (India)
The seed of McDonald's success was sown in 1990 - six years before it started its actual
operations. About two decades ago, the QSR (Quick service restaurants) wouldn't have meant
much to the Indian F&B segment. Today, the acronym has been seamlessly absorbed in the
industry lingo. McDonald's arguably, From of the first brands that left a strong imprint on
the Indian QSR history, has much to do with this. And its success is credited to its well-
established supply management chain. According to Vikram Bakshi, managing director and
joint venture partner of McDonald's India (North & East), the company invested about Rs
400 crore even before its first restaurant commenced operations in October 1996. "We had to
ensure that we had the back-end linked up to the farm level for delivery commitment."
The company also deployed the latest state-of-the-art food processing technology for having
a sound supply chain. The transition towards the latest technology, which has been
subsequently noticed in other QSRs as well, changed the Indian fast food scenario to match
international standards.
TRACING IN SUCCESS PATH
McDonald's had been working critically on its supply chain part. Considering, an
international brand trying to make inroads into the Indian consciousness, its Indian supplier
partners were developed in such a manner that made them stay with the company from the
beginning. Bakshi explains, "The success of McDonald's India is a result of its commitment
to sourcing almost all its products from within the country. For this purpose, it has developed
local Indian businesses, which can supply them the highest quality products required for their
Indian operations." As per today's standings, McDonald's India works with as many as 38
Indian suppliers on a long-term basis, besides several others standalFrom restaurants working
with it, for various requirements.
McDonald's entered its first distribution partnership agreement with Radha Krishna
Foodland, a part of the Radha Krishna Group engaged in food-related service businesses. As
distribution centre, the company was responsible for procurement, the quality inspection
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programme, storage, inventory management, deliveries to the restaurants and data collection,
recording and reporting. Value-added services like shredding of lettuce, re-packing of
promotional items continued since then at the centers playing a vital role in maintaining the
integrity of the products throughout the entire 'cold chain'. The operations and accounting is
totally transparent and is subject to regular audits. "McDonald's had worked aggressively to
attain the right suppliers and systems that ensured that 90 per cent of yield was indigenous
before the doors were opened to peoples. The only products that we used to import were oil
and fries, for which we have had made arrangements to manufacture the oil in India. We
ensured that the products developed locally abide by global McDonald's standards," informs
Bakshi.
McDonald's – Challenges in SCM
 Full Supply Chain responsibility

 Multi Temp. Products - Over 65 % temperature controlled
 Stores as far as 500 – 1000 kms
 Drops per month - Over 1000
 Movement mainly by road
 Regular movement of perishables by air
 Routing Challenges
 No margin for error – Operations critical client
 No Stock Outs at store
 On time delivery record – above 97 %
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 Clean delivery record – above 99 %
 Unfailing inbound supply chain
RESTAURANT COUNT
McDonald's has 165 restaurants in India of which 90 are in north & east India and 75
in west & south India McDonald's India..... Culturally sensitive. McDonald's in India is a
locally owned and managed company run by Indians, employing local staff, procures from
local suppliers to serve its customers. McDonald's India opened its first family restaurant at
Basant Lok in Oct, 1996; today it has 165 Restaurants across India. This vibrant decade has
seen McDonald's evolve Indian menus, Indian sensitivities and yet remain as globally
innovative as ever. This journey has seen McDonald's develop a rich brand identity amongst
its customers and employees as well as partners alike.
At McDonald's India we have had a single mantra: providing 100% total customer
satisfaction and the formula for achieving this goal in our restaurant operation is the long-
standing commitment to the McDonald's Promise. McDonald's worldwide is well known for
the high degree of respect for the local customs and culture. McDonalds has developed a
menu especially for India with vegetarian selections to suit Indian tastes and preferences.
Keeping in line with this, McDonalds does not offer any beef or pork items in India. In the
last decade it has introduced some vegetarian and non-vegetarian products with local flavors
that have appealed to the Indian palate. There have been continuous efforts to enhance variety
in the menu by developing more such products.
McDonald's has also re-engineered its operations repeatedly in its 13 years in India to
address the special requirements of a vegetarian menu. Vegetable products are 100%
vegetarian, i.e.,
 They are prepared separately, using dedicated equipment and utensils.

 Only pure vegetarian oil is used as a cooking medium.
 Cheese and sauces are completely vegetarian and egg less.
 Separation of vegetarian and non-vegetarian food products is maintained
throughout the various stages of procurement, cooking and serving.
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McDonald's India has developed a special menu with vegetarian selections to suit Indian
tastes and preferences. Only the freshest chicken, fish and vegetable products find their way
into our Indian restaurants. In addition, we've re-formulated some of our products using
spices flavored by Indians. Among these are :-
McVeggie burger,
McAloo Tikki burger,
Veg. Pizza McPuff and
Chicken McGrill burger.
We've also created eggless sandwich sauces for our vegetarian customers. Even our Soft
serves (Ice-creams) and McShakes are egg-less, offering a larger variety to our vegetarian
peoples.
INTERNATIONAL STANDARDS
McDonald's India's local suppliers provide us with the highest quality, freshest ingredients.
Complete adherence to the Indian Government regulations on food, health and hygiene is
ensured, while maintaining our own recognized international standards. Fast, friendly service
- the hallmark of McDonald's restaurants the world over is the mantra we abide by Stringent
cleaning standards ensure that all tables, chairs, highchairs and trays are sanitized several
times each hour. Such meticulous attention to cleanliness extends beyond the lobby and
kitchen to even the pavement and immediate areas outside the restaurant.
THE McDonald’s EXPERIENCE

Marketing in a services industry is becoming an increasingly complex challenge. The
paradigms of service marketing demand a passionate understanding of customer expectations
and perceptions, and linking them to product design & delivery as well as operational
planning. This is where McDonald’s has excelled due to its ability to successfully integrate
the customer’s perspective in its products and operations in a comprehensive manner. The
revamped menu in India is an example of McDonald’s strategy of integrating the customer’s
perspective in its products.
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The ultimate aim of Service Marketing is not just to become a Service Leader but to create a
Service Brand. The Service Delivery Process is the key to achieving this aim of Service
Marketing
MARKETING STRATEGIES OF MCDONALD’S
BUSINESS STRATEGY
FRANCHISE MODLE - As per franchise model of McDonald Only 15% of the total number
of restaurants are owned by the Company. The remaining 85% is operated by franchisees.
The company follows all the framework of training and monitoring of its franchises to ensure
that they achieve good QUALITY SERVICE, CLEANLINESS AND VALUE FOR THE
MONEY offered by the company to its customers. PRODUCT CONSISTENCY- By
developing a sophisticated supplier networked operation and distribution system, the
company has been able to achieve consistent product taste and quality across the nations of
the world. ACT LIKE RETAILER THINK LIKE A BRAND- McDonald’s focuses not only
on delivering sales for the immediate present, but also protecting its long term brand
reputation.
STRATEGY AS PER INDIAN MARKET
RE-ENGINEERING THE MENU- McDonald’s thinks according to the customer’s tastes,

value systems, lifestyle, language and perception. Globally McDonald’s was famous for its
hamburgers which are prepared from beef and pork burgers. But, most Indians religion does
not allow them to consume beef or pork. So in order to satisfy demand as per Indian
preference, McDonald’s came up with chicken, lamb and fish burgers to suite the Indian diet.
THE VEGITERIAN CUSTOMER-India has a huge population of vegetarians. To satisfy this

customer’s demand, the company came up with a completely new menu of vegetarian items
like McVeggie burger and McAlooTikki. The separation of vegetarian and non-vegetarian
sections is maintained throughout the various stages.
SEGMENTATION, TARGETING AND POSITIONING
McDonald’s uses demographic segmentation strategy with age as the parameter. The main
target segments are children, youth and the young urban family. If they take children into
consideration, children are more attracted towards toys and delicious meals including today’s
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youth prefer such places for their entertainment and the urban families select McDonald's on
various occasion like birthday party, treat to their children etc.
Kids are on the top most level in FMCG purchase related to food products. So to
attract children’s McDonalds has Happy Meal in which they gift one toy on each happy meal,
there are toys ranging from hot wheels to various Walt Disney characters. Example of the
latest range is the toys of the movie Madagascar.
For this, they have a tie-up with Walt Disney. At several outlets, it also provides
special facilities like ‘PLAYING PLACE’ where children can play arcade games, air hockey,
etc.
This strategy is targeting in making McDonald’sa fun place where you can enjoy both
playing and eating. This also helps McDonald’sto attract the young urban families who
wanted to spend some quality time, while their children can enjoy every movement of
McDonald’s. To target the teenagers and young youth, McDonald’s has priced several
products aggressively, keeping in mind the price sensitivity of this target customer. In
addition, facilities like Wi-Fi are also provided to attract students to the outlets, example of
such outlet is of a Vile Parle situated in Mumbai.
“MCDONALD’S MEIN HAI KUCH BAAT” projects McDonald’s as a place for the
entire family to enjoy. When McDonald’s entered in India it was mainly targeting the urban
upper class people. But, today it had positioned itself as an affordable place to eat without
compromising on the quality of food, service and hygiene. The outlet atmosphere and mild
background music highlight the comfort that McDonald’s promises in slogans like “YOU
DESERVE A BREAK TODAY”, ‘FEED YOUR INNER CHILD’. This commitment of
quality of food and service in a clean, hygienic and relaxing atmosphere has ensured that
McDonald’s maintains a positive relationship with their customers.
ANSOFF PRODUCT MARKET GROWTH MATRIX
The Ansoff Product-Market Growth Matrix is a marketing tool created by Igor Ansoff
and first published in his article "Strategies for Diversification" in the Harvard Business
Review (1957). The matrix allows marketers to consider ways to grow the business via new
products, new markets ± there are four possible product/market combinations.
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This matrix helps companies decide what course of action should be taken given current
performance. The matrix consists of four strategies:
1. Market penetration strategy
2. Market development strategy
3. Product development strategy
4. Diversification
Other ways include attracting non-users of your product or convincing current clients
to use more of your product/service. Market penetration occurs when the product and market
already exists in market. McDonalds is one most popular brand in fast food in entire world. In
1975, the first McDonalds opened at Hong Kong; many thought that this is wrong move for
McDonalds. Various reasons were laid for this claim. Although, the main reasons lays on the
fact that Americans and Hong Kong Chinese at that time have very different perception about
food. McDonalds, being an American food chain, view breads full meal while Hong Kong
Chinese view them as snacks. As time went by, McDonalds slowly became the part of the
Hong Kong landscape and way of life rather than just being an outpost of American culture.
Hong Kong Chinese soon accepted that the food McDonalds serve are ordinary, thus they are
for ordinary people like them.
Future more, believes that the introduction of McDonalds to the Hong Kong society
changed the direction of the Hong Kong cultural framework along with the rest of the world,
Hong Kong was also McDonalized.
MARKET DEVELPOMENT STARTEGY
• Market development strategy targets non-buying customers in currently targeted segments.

It also targets new customers in new segments.
• Marketing manager has to think about the following questions before implementing a
market development strategy: Is it profitable? Will it require the introduction of new or
modified products? Is the customer and channel well enough researched and understood?
The marketing manager uses these four groups to give more focus to the market
segment decision: existing customers, competitor customers, non- buying in current
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segments, new segments. McDonalds is currently following above mentioned strategy, to
focus on market segments. For serving synonymously to the existing customers they are
coming up with different menus as per change in taste and preference of their customer e.g.:
happy price menu, beverages including milk shakes and cold coffees etc. Also, by keeping in
mind their rivals they are introducing products to compete them e.g. to answer the KFC they
came up with chicken mcnuggets. They are adopting pricing policies for non-buying
customer and as well as new segments.
PRODUCT DEVELOPMENT STRATEGY
In business and engineering, new product development (NPD) is the term used to describe the
complete process of bringing a new product or service to market. There are two parallel paths
involved in the NPD process: one involves the idea generation, product design, and detail
engineering; the other involves market research and marketing analysis.
Companies typically see new product development as the first stage in generating and
commercializing new products within the overall strategic process of product life cycle
management used to maintain or grow their market share.
McDonald's is always within the fast-food industry, but frequently markets new burgers.
Frequently, when a firm creates new products, it can gain new customers for these products.
Hence, new product development can be a crucial business development strategy for firms to
stay competitive.
McDonald’s are always enhancing their existing product along with it; they also try to
introduce new and new products so that they can easily survive in market.
DIVERSIFICATION
Diversification is a form of growth marketing strategy for a company. It seeks to increase

profitability through greater sales volume obtained from new products and new markets.
Diversification can occur either at the business unit or at the corporate level. At the business
unit level, it is most likely to expand into a new segment of an industry in which the business
is already in.
At the corporate level, it is generally and it’s also very interesting entering a promising
business outside of the scope of the existing business unit.
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McDonald's made its foray into the hospitality industry in 2001, opening two hotels in
Switzerland, at Zurich and Lully. The "Golden Arch Hotels" were positioned as four-star
facilities with the latest in-room technology and very original, modern interior design.
Reactions and reviews of guests following their stay there were mixed.
Most seemed to agree, that the hotel's four-star rating didn't seem to correspond with
McDonald's image. The Golden Arch in Zurich is McDonald's first hotel
CHANGE IN STRATEGY
Made for You
McDonald’s organization recently underwent drastic strategy changes to serve better

to their customers. Under their ³old system,´ the company would make several sandwiches at
once, and hold the sandwiches in a warming bin until purchased by a customer. Under this
system, management had to accurately predict how much food had to be put on hold.
Accurate prediction had to be used because if there were not enough food placed on hold, this
would create the problem of increase waiting times for customers, and too much food would
cause waste of expired items. McDonald¶s dramatically changed their strategy in order to
stay competitive with other fast food organizations.
In 1999, McDonald¶s spent $181 million to introduce their ³Made for You´ system. Under
this new system, standard food items are not held in a bin until they are sold. In the ³Made for
You´ system, modern technology greatly assists McDonald¶s operations. When a customer
places an order, the sandwich items are immediately displayed on a computer monitor in the
kitchen and a tone sounds to alert the kitchen staff.
Upon a new order, an employee in the kitchen will toast the bun, and assemble the sandwich
accordingly.
Standard items simply list the name of the sandwich, while customized orders list the
sandwich name and the desired condiments. Once the sandwich is assembled, it is presented
to the food loading area, where a different staff person retrieves the sandwich and completes
the order by adding French fries, desserts, etc. The system works the same for front counter
orders as well as drive-thru orders.
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Unfortunately, the introduction of the ³Made for You´ system did not come easily.
McDonald’s watched its customer satisfaction drop for the three consecutive years beginning
in 1999.
After further research, they realized that although the new system provided fresher
food, it was not as quick as the previous system. Instead of reverting back to the old system,
McDonald’s continues to fine tune ‘Made for You´ and add new options to help the system
work faster.
Revitalization Plan
In order to cope with the first ever quarterly loss that resulted from inefficient use of
the Made-for-you-system McDonald¶s has devised a new plan to increase profits. Previously,
the corporation emphasized adding more restaurants to increase sales, but the new plan places
emphasis on increasing sales at existing restaurants.
The new plan will reduce spending, to enable more cash to shareholders through
dividends and share repurchases. Specific goals of the revitalization plan are to:
o Attract new customers

o Encourage existing customers to visit more often
o Build brand loyalty
o
o Create enduring profitable growth
The main goal is to increase sales by creating an exceptional customer experience.

McDonald’s plan is to achieve this goal by focusing on its people, products, places, prices,
and promotions.
Menu
Along with changes in their process strategies, McDonald¶s has flirted with menu changes as
well. Last year, they offered a ³new taste menu,´ where they offered a new
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1. PEST Analysis
PEST analysis will give us details about Political, Economical, Socio-cultural and
Technological analysis and effects of these analysis on McDonald’s.
a. Political Factors
These are some influences a company doesn’t have any control of.USA politically is well
suited for business of McDonalds. McDonald is very popular in USA but government is
trying to control marketing of fast food because of health concern such as cholesterol,
cardiovascular and obesity issues. Good relations in terms of creating jobs and tax revenue
for government are a must, to succeed in any market. India is very rich country in terms of
politics. The world largest democracy is present in India but being nationalist country they
create some difficulties for foreign entries. Bhatiya Janata party is one of the leading Hindu
national party and they are against fast food chains as they want to see only vegetarian
restaurants in their country. Their party members always protest against fast food using meat
in their menu. Big risk for Mcdonald’s is BJP. Good news is that trends in India are changing
and young people like to eat fast food. Second good news is that India is changing slowly
from nationalistic society to liberal mind set up and Congress party in power is the main
proof of liberal society. McDonalds expanded very fast in the last decade.
b. Economic Factors
Economical variables such as currency exchange, employment, Interest rate, tax ratio and
need of international supply. Most of the organizations depend on foreign supply of raw
materials for their products making. Currency exchange also have a great impact on any
organistion.USA has a High tax ratio, Low unemployment developed country, dealing in
international currency (Dollars).Business for McDonalds in USA is already established and
low risked but for India, high unemployment rate, dealing in Rupees as currency and millions
of people living below poverty line is a concern for McDonalds but India is having a
booming economy, low tax rate and availability of labour in abundance and development of
middle class society in India is a positive sign for McDonald’s future.
c. Socio-Cultural Factors
Culture and society has a big impact on any organization sales. McDonalds in USA is serving
a liberal society. religion has not much effect on McDonald’s. Culture is very much simple
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but in India society is very versatile. Though India is heavily populated but still Hindu’s don’t
eat meat, Muslim only eat Halal and they don’t eat pork. In India religion has a very big
impact on society. For McDonalds it is a big concern but in India life style is changing,
earning power is increasing, middle class is getting bigger in its size and people like to eat
outside in restaurants this has a very good impact on society.
d. Technological Factors
One positive benefit of globalization was technological advancement. Although McDonald’s
doesn’t use too many complicated machines in their food production but still they need
highly competitive technology. technology is needed for example in supply chain
management, order taking, Inventory control, easy and quick payment procedures .Use of
technology can make management more reliable, effective and cost saving in short term as
well as long term. Customer’s happiness after getting what they are looking for on time and
in a disciplinary way make them come over and over again. in USA McDonalds use very
effective and expensive technology to be in a very competitive position to their rivals. In
India as franchises, they use high technology. They use very sophisticated systems for
disciplined order taking and well managed staff who knows the proper use of technologies
inside the store.
2. Micro Environment
Competitive intensity of McDonald’s can be determined with Porter’s five forces. Porter five
forces is business strategy formed by Michael E. Porter of Havard business school in 1979.
He determined five forces which actually determine attractiveness of the market and
competitiveness. These five forces are:
a. Threats of new entrants
b. Threats of substitute
c. Bargaining power of customer
d. Bargaining power of supplier
e. Competitive rivalry with in organisation.
a. Threats of New Entrance:

Entry to a restaurant Business is very difficult. It is hard to make a prominent brand name.
There is high research and development costs and high cost of entry. Strong brands already in
competition make it more difficult such as Mcdonald’s, Pizza Hut, Domino’s etc. New
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entrants face a very high competition in the start of the business. In USA and India both
Entrance of new organisation is very difficult as explained above.
b. Threats of Substitute:
The substitutes in this industry are very high. People can choose variety of products they can
either choose Burger King, KFC, Indian Cuisine, Indian local shops, Indian Vegetarian
restaurants. The same situation is faced by McDonalds in USA and all over the world.
c. Bargaining power of customers:

Bargaining power of customers refers to pressure a customer can exert on a business to get
good quality of food, good customer service and low price. Bargaining power of customer in
this industry is low. As McDonald’s provide a standard service, one price strategy and quality
of food. Customers have low bargaining power throughout the world in food industry.
d. Bargaining power of supplier :

Bargaining power of buyer in this industry is low. Situation can change if the main
ingredients are not available but with McDonalds simple menu and working with many
supplier, they are not facing a big threat, so the bargaining power is relatively low.
e. Rivalry within the industry:

Fast food restaurant industry is very competitive. the competition is so high as all the
organisations want to get hold of customer base. Food industry all over the world has the
same criteria because there are many small businesses operating in abundance and also top
brands. McDonald’s knows about the customers taste and preferences all over the world, so
they started McCafe (morning breakfast). So McDonald’s is providing quality food from
early morning till late night in order to get competitive edge In the market.
3. Locations
McDonald’s opened its first stores in New Delhi and Mumbai, the largest metropolitan cities
in India and then slowly spread throughout India. McDonald’s has very strategically opened
its stores in locations situated near colleges, markets, malls, stations and any other places
where footfall is high. This has worked very well since their target audiences are the general
people from children to adults.
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There are more than 250 outlets in India already and they plan to double this in the next 10
years. Out of these more than 50 outlets in Mumbai itself which shows that they are first
targeting the urban population and are slowly moving towards urban counterparts.
4. Push/Pull Advertising
McDonald's is a good will "push" and "pull" used in conjunction with the company.
McDonald's advertising directed primarily at those who taste not stable, like the pursuit of
fashionable and easy acceptance of new products, new things to the younger generation of
consumers, through a lot of humor and lively media advertising to attract young consumers
all over the city McDonald's Monopoly points every corner of the consumer. At the same
time within the flexible use of store promotion in the form to guide and promote the
consumption of specific products consumers.
5. Channel
McDonald's distribution channel and the way in which this fast-food restaurant chain gets its
products to the market. In the theory of the Marketing Mix, place (distribution) determines
where the product will be sold and how it will get there. In fact, as noted
on www.mcdonalds.com, McDonald's is the leading global foodservice retailer, with more
than 30,000 local restaurants serving nearly 67 million people each day in more than 120
different countries. Approximately 80 percent of all McDonald's restaurants company wants
to be the first in the market and establish the brand as rapidly as possible by advertising very
heavily. This effective distribution strategy (place) has helped McDonald's develop a strong
market share in the fast-food market around the world. Moreover, according to Kotler stores
must have a planned atmosphere that suits the target market and moves customers to buy. In
addition, McDonald's has pre-determined the locations for many of its stores to help reach a
variety and diverse population. In conclusion, McDonald's has an intensive distribution
process which is a credit to their Marketing department. As businesses and other
organizations move forward, the challenge of making their products.
The McDonald’s executive claimed that it was about being part of Disney and their theme
parks, their movies and their characters because now you can buy a Happy Meal at the
Happiest Place on Earth. There are multiple places in Disney World to buy a Happy Meal or
more so to buy McDonald’s products. A McDonald’s kiosk can be found in between
Frontierland and Adventureland and restaurants in Downtown Disney and next to the Disney
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All-Star Resorts. Not only can you find these restaurants, they are also a few of the best
McDonald’s. The kiosk in the Magic Kingdom is decorated as a Conestoga wagon depicting
the theme of Frontierland. The McDonald’s in Downtown Disney is huge and offers children
a great place to play as does the one next to the All-Star Resort. Although Disney offers a
wide range of restaurants and food, visitors flock to the McDonald’s because they know their
children love the food, the price is right, the quality of food is good and it gives their children
a place to play during the meal. This delivery channel was ingenious on McDonald’s part;
they recognized all they had to gain by joining in a partnership with the Disney Corporation.
They try to increase revenue through the following internal strategies:
 Training
 Incentive based targets
 Recognition for good work
 Performance based bonus
 Employee benefits to keep them motivated
 Promotions and compensation increments.
6. McDelivery
McDonald's India is one of the few restaurants that provide home delivery service. In
Western & Southern India, this service is currently available in select cities. Call us on 66
000 666 and place your order.
There is no restriction on the minimum order for home delivery. However, there is a fee of
Rs.25/- per order as delivery charges, irrespective of the size of the order.
Since the packaging is very convenient, one can eat food from McDonald’s at home without
littering around. There are many offers as well for using McDelivery
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Advertising
• The logo of the smiling ColFroml is probably From of the most recognized faces in the
world and instantly brings the image of fried chicken to From’s mind.
KFC and its new company jingle, “finger lickin good” is a frequent announcement on
televisions, billboards, flyers and radio. The concept of showing a normal customer deeply
involved in devouring his piece of chicken usually turns on the drool factory in everybody’s
mouth and makes them rush to the nearest KFC. In India where chicken lovers are plenty
abound these ads featuring normal people connect instantly and create a rush at their outlets.
Using the following methods KFC spreads
• Using Reminder advertisements KFC stimulates repeat purchases of its products.

• The company anthem “finger lickin good” is just a wakeup call to the peoples to
remind them how good they felt the last time they ate KFC chicken.
• Sponsorship is another tool to strengthen an organizations image. KFC has been the
sponsor of the Australian Cricket Team for a long time before the obesity experts
contradicted the concept.
PACKAGING
The famous paper bucket that KFC uses for its larger sized orders of chicken and has come to
signify the company was originally created by Wendy's restaurants founder Dave Thomas.
Thomas was originally a franchisee of the original Kentucky Fried Chicken and operated
several outlets in the Columbus, Ohio area. His reasoning behind using the paper packaging
was that it helped keep the chicken crispy by wicking away excess moisture. Thomas was
also responsible for the creation of the famous rotating bucket sign that came to be used at
most KFC locations in the US.
 BRANDED PREPAID COUPONS
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KFC brings to prepaid coupons of different meal combo options, which act as great
distributor trade or customer incentives. These exciting incentives are guaranteed to give a
boost to your sales and can make your incentives stand out from the order run of the mill
incentives.
In order to act as true partners, KFC will print branded coupons (minimum quantity 500
coupons) of your own company or product, which can be redeemed at any of the KFC
restaurant nationwide or restaurants of your choice.
• Corporate meeting, seminars & workshops at KFC, Meeting with trade people or
customers can also be arranged at KFC.
• KFC can arrange all related facilities for the meeting. This facility is available at
select outlets.
• Lunch/Dinner for Employees/Dealers/Customers and their Families at KFC
• Companies can arrange lunch/dinner for their employees/dealers/customers at selected
KFC restaurants.
• Outdoor Catering: KFC can bring complete hassle-free meals and serve at your
specified premises.
o Promotional Discounted Coupons for Corporate Customers
o Discounted Promotional Meals on Seasonal Products
o Discounted Promotional Meals for Increasing the Sales Figures
o AYC (All you can Eat) specially offer for Ramazan ul Mubarak
o Free Meal Vouchers for Corporate Clients
o 20% VIP Discount Card for Corporate Clients on all Regular Meals except the
Promotional Deals
o Free Chicky Premium on Chicky Meals
o LSM (Local Store Marketing) special Discounted Deals or Gift for Specific
out let
o Free Meal area and Serving in case of any party and Birthday
o Free Gift for Birthday Child and Different Games for Kids
 PRICING STRATEGY
• Market skimming: KFC globally enters the market using market skimming. Their
products are priced high and target the middle to upper class people. Gradually they
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trickle down the prices focusing on the middle to lower class people to penetrate both
sides of the market We can compare the price of their products with McDonald,
Dominoes and Pizza Hut. If the competitor provides the same product at a lower
price, then the organization usually lowers the price of its product too.
• In the case of KFC, Fried Chicken is its main selling point and controls a monopoly
over the Indian fast food market (only with fried chicken). It prices its burgers, French
fries and soft beverages with relation to its competitors.
• KFC price their product keeping different points in view. They adopt the cost base
price strategy. Pricing of the product includes the govt. tax and excise duty and then
comes the final stage of determine the price of their product. The products are bit high
priced according the market segment and it is also comparable to the standard of their
product. In the cost based method we include the variable and fixed cost.
CHANNEL
• KFC believes in first level channels in the order given below:
– Manufacturers
– Retailers
– Peoples
KFC works on the flow of good operation techniques i.e. “Good Operating
Manager→ leads to “Good Team Selection →Good Services → Good Targets → Good
Revenues through the following internal strategies:
• Training
• Incentive based targets
• Recognition for good work
• Performance based bonus
• Employee benefits to keep them motivated
• Promotion
VALUES OF KFCs
 Focus all our resources to our restaurants operation because that is where we
serve our customers.
 Reward and respect the contributions of each individual at KFC.
 Expand and update training with time and be the best we can be and more.
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 Be open, hFromst and direct in our dealings with From and other.
 Commit ourselves to the highest standard to the personal
a n d professional integrity at all times.
 Encourage new and innovative ideas because these are the key to our competitive
growth.
 Reward result and not simple efforts.
 Dedicate ourselves to continuous growth in sales, profit and size of organization.
 Work as a team.
Mid COVID-19 Performance Report
Hello world.
We have been publishing our annual report in the first week of April for the last three years.
Typically, our annual reports outline our performance during the last year, and some narrative
on what we think the future holds in store for us. This year, when the pandemic hit the world,
our past became irrelevant, and the future uncertain. We decided to delay our annual report
by a few months (some perks of being a private company). Right now, in the middle of July,
as our future seems more predictable, we decided to publish this performance report for the
last five quarters combined.
This performance report consists of three parts –
1 – Financial performance (FY19 vs FY20, Q1 FY21)
2 – Business segment performance (2a – India Food Delivery, 2b – Dining Out, 2c – B2B
Supplies)
3 – Social Responsibility (Feeding Foundation)
1 – Financials (FY19 vs FY20, Q1 FY21) Our revenue in FY20 grew by 105% as compared
to FY19 while the costs grew by only 47% in the corresponding period. Moving our business
towards profitability was a core focus for us in FY20 and we made significant progress along
that journey.All numbers are basis management information system and may vary from
Indian Auditing Standards. Q1 FY21 numbers are unaudited. All data is converted to USD at
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a constant exchange rate of 1 USD = INR 75. Our business has negligible CapEx and debt;
and hence EBITDA loss is almost the same as cash loss.
In the last few quarters, as is evident from the charts above, we fast tracked our efforts
towards making our business profitable and drive efficiency into our spends. While COVID-
19 has impacted the size of our business, it has accelerated our journey to profitability. In
terms of the size of the business, COVID-19 has set us back by a year or so – but a year is
only a small blip when you are building a company for the next 100 years.
Having said that, COVID-19 has positively impacted the health of our business – we seem to
have gained 2-3 years along this vector. In July 2020, we estimate our monthly burn rate to
land under $1m, while our revenue should land at ~60% of pre-COVID peaks ($23m per
month). We expect to make a complete recovery in the coming 3-6 months while continuing
to maintain tight control on costs/profitability.
Now, let’s dive deep into our three business segments –
2a – India Food Delivery
FY20 was a defining year for food delivery in India. While FY19 saw hyper-competition
between four well-funded food delivery players, FY20 ended with a two player market
structure. Zomato’s FY20 India Food Delivery GMV grew by 108% over FY19. We acquired
Uber Eats India business in January 2020 which helped propel us to market leadership in this
hotly contested space. The transition of users and merchants from Uber Eats India to Zomato
was swift, and so well coordinated by both the teams that we were able to transfer and retain
97% of the combined GMV on the Zomato app. Right after the rise of COVID-19 cases in
India towards the end of March, our food delivery GMV hit its lowest point in two years –
GMV was 80% down in the last week of March 2020, compared to our peak pre-COVID-19
week (in mid February). As of now, our food delivery GMV has recovered to 60% of pre-
COVID levels. We have taken a number of important steps to ensure safety of our food
delivery customers, which has been a significant driver of the rebound in our business so far.
Most of the remaining delta in demand is due to young professionals in large cities migrating
to their parents’ homes (often in small town India) where home cooked food is the norm,
especially during a pandemic. As offices start opening up, these professionals are now
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starting to move back to the larger cities. We expect sharp recovery in our order volumes as
lockdowns continue to ease and the operating environment continues to improve.
The unit economics of our food delivery business has improved consistently over the last 18
months. In Q1 FY20, we used to make a contribution margin of –₹47 per order; in Q1 FY21,
we made a contribution margin of +₹27 per order. Improvement in contribution margin is
driven by drop in subsidies, reduction in delivery cost, and increase in average order values.
We do not believe that the current contribution margin in our business is sustainable in the
long term. Over time, we expect contribution margin per order to normalise between +₹15-20
per order. Net EBITDA for this business segment is expected to improve, as the growth in
order volume hereon should offset any corresponding drop in contribution margin.
2b – Dining Out
Our dining out business grew steadily in spite of headwinds (e.g. logout campaign against
Zomato Gold by restaurants in India) with significant gains in EBITDA margins across India
and our international markets in FY20. This business is fast moving towards being a
transaction-led business where the focus is to close-the-loop with restaurants by encouraging
users to pay their eating-out bills through the Zomato app.
Last month, we rebranded Zomato Gold to Zomato Pro with an enhanced value proposition
for both users and restaurants (more details here). Deals on Zomato Pro are now only
available if a user pays their restaurant bill through the Zomato app.
Our dining out business segment is the hardest hit as restaurants remain shut for dining-out –
leading to almost negligible revenue across advertising and Zomato Pro. The recovery here is
going to be slow. Users will be concerned about social distancing and hygiene and restaurants
will need to reorganise themselves to be able to build trust with users on these fronts.
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To help our industry, we have launched ‘Contactless Dining’ in India and eight more
countries. With Contactless Dining, users can enjoy visiting a restaurant without touching any
menu cards or interacting with the restaurant staff.
2c – B2B Supplies (Hyperpure)
Hyperpure is growing strongly, and we believe that we have early indications of a strong
product market fit. Until now, we have only been serving Delhi and Bangalore with
Hyperpure. We have covered a lot of ground in the last two years, and we are now expanding
rapidly into new cities.
3 – Social Responsibility (Feeding Foundation)
Zomato Feeding Foundation aims to be the largest and most impactful not-for-profit aimed at
solving hunger in the developing world.
The COVID-19 crisis hit the daily wager community badly – leading to widespread hunger
across the country. Springing into action, Feeding India (the India chapter of Zomato Feeding
Foundation) launched ‘Feed the Daily Wager’ campaign to raise money and provide food
support to daily wagers who lost their livelihood during the COVID-19 lockdown. Feed the
Daily Wager collected ₹32 Cr (~$4.2m) which was used to distribute over 65 million meals
(in the form of ration kits, see photo below) to the daily wager community. Over the last few
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weeks, the Feeding Foundation has also started working to reduce hunger in Philippines and
Indonesia.
At Zomato, we deeply appreciate the trust our countrymen put in us to make us one of the
largest and most impactful social campaigns in the country during the COVID-19 crisis. We
are deeply grateful to the thousands of volunteers and partners who helped us (help them)
make thousands of tonnes of food reach the needy.
Working with the Feeding Foundation team will make you realise (if you don’t already) that
the world is full of nice people who want to help make it a better place. We sometimes feel
that the world is going to hell, but there’s plenty of good out there – it just doesn’t get seen as
much.
We aim to grow our Feeding Foundation community multiple folds going forward. Solving
hunger is a massive problem, but a solvable one if all of us just started caring about it enough.
Team updates In order to quickly reduce our costs during the initial days of the COVID-19
crisis, we had requested our staff to volunteer for salary cuts. 75% of our employees
volunteered for partial salary cuts resulting in a total reduction of 14% in our payroll costs.
As of today, all the original salaries have been re-instated, and our net losses of under $1m
for July reflect the increased payroll cost already. We strongly believe that a founder in an
organisation is not a title, but only a mindset. We announced Mohit Gupta (MG, he leads our
food delivery business, among other things) as a founder at Zomato. While the foundation of
Zomato was built before MG joined us, he has been instrumental in significantly
strengthening it over the last two years. What he and his team have built is a very large part
of our business, and our DNA today. When I introduced the Founders Program a little over a
year ago (refer to our annual report for FY19), I outlined a few qualities that founders must
exhibit. These qualities include trustworthiness, commitment and resilience among other
things. MG checks all these boxes and more. He never shies away from telling me, or anyone,
the truth. MG is very committed towards building Zomato for the long term, and has
extremely high levels of ownership. His resilience to continue building and aim for victory
even during the toughest times, is something a number of people at Zomato lean on as we
continue to build Zomato. The way the coronavirus suddenly hit the entire world made me
realise that our world runs on an assumption of certainty, while there is none. Nobody, no
matter how big or small, poor or rich, has any control over many important aspects of the
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way this world works. The world will change when it has to. Tough times will happen when
they have to. The only way to weather what the world throws at us is by following the old
adage – ‘tough times don’t last, tough people do’. Being tough means that you handle
pressure cooker situations calmly, and continue to find ways to get out of them. The path to
building a company is non linear – you need to make enough of the right calls to make sure
that you catch the tailwind, and not make so many bad calls that you get caught in the
headwind. That’s all for now. We wish everyone the best of health, and hope that the world
gets over the pandemic soon.
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CHAPTER II
RESEARCH METHODOLOGY
Research design is a logical and systematic plan prepared for directing a research study. It
specifies the objectives of the study and techniques to be adopted to achieve the stated
objectives. It is a specification of methods and procedures for acquiring the information
needed for solving the problem. It involves arrangement of condition for collection and
analysis of data in a manner that aims to combine relevance to the research purpose with
economy in procedure. So a research design is the conceptual structure with which research
is conducted. In the previous chapter a brief review of related literature was presented. The
review of related literature helped the investigator to have a clear background about the
subject of study and also a method and procedures to be adopted for the present study. In the
present chapter it deals with the methodology of the concerned study in terms of statement of
the problem, operational definitions sampling procedures, size of the sample and description
of the tool have been explained. Research design is a logical and systematic plan prepared
for directing a research study. It is quest for knowledge. Research may be defined as a
process of knowing new facts and verifying old ones by application of scientific methods to
a natural or social phenomenon.
Meaning – Research design or methodology is simply a plan for study. It is called a blue
print to carry out the study. It is like plan made by an architect to build the house, if research
is conducted without a blue print, the result is likely to be different from that what is expected
at the start. It specifies the objectives of the study and techniques to be adopted to achieve the
stated objectives. It is a specification of methods and procedures for acquiring the
information needed for solving the problem. It involves arrangement of condition for
collection and analysis of data in a manner that aims to combine relevance to the research
purpose with economy in procedure. So a research design is the conceptual structure with
which research is conducted.
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NEED OF STUDY:
Food delivery services have increased in the recent years; there is a stringent competition
among various service providers like FoodPanda, FreshMenu, Uber Eats, Swiggy,
Zomato...Etc.
 It is important to understand the consumer behavior towards food delivery services.
 To understand the mindset of consumers and provide satisfactory customer service.
 To understand the consumer need and wants.
STATEMENT OF THE PROBLEM:
“A Problem statement is clear concise description of the issues that needs to be
addressed”.
The project is about food delivery services which are increasing rapidly in India where
there are many competitors and the best service provider gets a firm hold in the market.
Most of the people still prefer take away and visiting the restaurants instead of going for
online delivery services. Apart from which restaurants have their own delivery services
which might act as a barrier to these online food delivery services.
OBJECTIVE OF THE STUDY:
 To study consumer’s attitude and perceptions towards online food ordering system.
 To find out the factors influencing the decision of the consumer while ordering food
online.
 To identify the issues faced by the consumers while ordering food online.
 To identify whether the demographic factors has an impact on ordering food online.
 To know about the student preference level associated with different online food
ordering platforms.
 To find out the students satisfaction towards the various online food ordering
platforms.
 Factors that influence decision-making in purchasing food online.
 To find out how often they order
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SCOPE OF THE STUDY:
The difference between the organized and the unorganized sector in the Indian hospitality
industry is huge. This does not just include hotels, but also the food service segment. Apart
from the organized chain restaurants, most restaurants cater to local needs and often at a
micro market level. In such a scenario, creating a loyal customer base is not difficult and a
specialized marketing and sales force may not be necessary- By David Buttress. Enter online
food ordering websites. These websites have been developed more for consumer convenience
than anything else. But they do open a plethora of opportunities for small establishments to
grow their business further. Online food ordering has been an international phenomenon for a
while now. There have been many variations in India as well which have taken off at
different periods of time, but success has been hard to come by.
RESEARCH DESIGN:
Research design is a logical and systematic plan prepared for directing a research study. It
specifies the objectives of the study and techniques to be adopted to achieve the stated
objectives. It is a specification of methods and procedures for acquiring the information
needed for solving the problem. It involves arrangement of condition for collection and
analysis of data in a manner that aims to combine relevance to the research purpose with
economy in procedure. So a research design is the conceptual structure with which research is
conducted.
POPULATION SAMPLE:
A sample of 50 people of both male and female is drawn from India district has been given
with duly filled up questionnaire through online. Out of the whole population of the India
district a sample size 50 consumers are taken as respondents. This survey is based on simple
random sampling method. The data is restricted to 50 respondents of consumers in India.
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DATA COLLECTION METHOD:
PRIMARY DATA
In order to analyze the perception of consumers towards buying food online, 50 consumers
who have used various online apps and websites for ordering food were analyzed. In order to
collect relevant data from the respondents a questionnaire of 20 questions were framed.
SECONDARY DATA
Here the secondary data was obtained from –
 Texts books for references.

 Various articles regarding the recent trends and changes.
 Magazines and Journals present.
 Websites of various online food businesses.
PERIOD OF THE STUDY:
It took nearly two months of research and collecting data through various sources for this
research project.
LIMITATIONS OF THE STUDY:
This project is limited to the retailers available in India district and does not relate to any
other regions.
 The period of study is limited to one months.
 100 samples alone are collected and thus it does not cover entire consumers in the
district.
 Due to the small size of sample it is difficult to identify significant relationship with
the consumers.
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Area of study
Ambernath is an eastern suburban city in Mumbai and is a part of the Mumbai Metropolitan

Region . Ambarnath more often spelt as Ambernath is a city in Indian
state of Maharashtra which comes under the Thane district of Maharashtra in outskirts of
Mumbai. The city has been named from the ancient Shiv Mandir 'Ambreshwar'. The temple was
built in 1060 AD and is an unique example of Hemadpanthi architecture
The city is known for various defense establishments such as Naval Materials Research
Laboratory and Artisan Training Schools. Ordnance Estate occupies a large portion of land
sprawling as large as a medium-sized town. It produces arms, ammunition and armored vehicles
for Indian army and defense services commissioned under the Ministry of Defense, Government
of India . It has two main factories namely Ordnance factory (OFA) and a Machine Tools
Prototype Factory (MPF).
Brief description:
Education:
The city has colleges and an industrial-training institute like institute of ,

technology,Bhanwabai Arjundas Talreja College Of Arts, Commerce And Science
Siddhi Education Trusts being the trustees, Bhanwabai Arjundas Talreja College
Of Arts, Commerce And Science is Day College. BR Harne College Of Engineering
And Technology,etc.
Growth:
Ambernath has a growing infrastructure owing to the increasing population in the area. The
civic as well as social infrastructure are growing in the area . Ambernath has a good
number of chemical and manufacturing industries. Some of the famous factories include
WIMCO, Ordnance factory and Swastik are located here .
Specialties :
Gnp galaxy is a universal hub in ambernath for commercials manufacturing spaces

designed by a renowned architect hafeez contractor. Spread approximately 10 acres.
Positioned in the thriving node of ambernath.
Ambarnath more often spelt as Ambernath is a city in Indian state of Maharashtra which
comes under the Thane district of Maharashtra in outskirts of Mumbai. The city has been
named from the ancient Shiv Mandir 'Ambreshwar'.
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 There are several tourist attractions in ambernath including beautiful locations,
religious places and historical monuments etc. Some of the places Ambernath Shiv Mandir,
Ambarnath Sree Sabarimala Ayyappa Temple, Chikloli Dam ,Malang Gad,Our Lady of
Fatima Church, Shantisagar Water Resort, Anand Sagar Resort & Water Park,The Parle G
Factory
Ambernath City Census:
Ambernath City Total Male Female

Population 253,475 132,582 120,893
Literates 196,261 107,126 89,135
Children (0-6) 28,449 14,855 13,594
Average Literacy (%) 87.22 91.00 83.07
Ambernath and asset allocation:
But each and every person who is earning by way of business in the form of profits or by
doing jobs in the form of salary is having some sort of stress about their earnings as
“FUTURE IS NOWHERE SAFE”.
As it is rightly said by ABRAHM LINCOLN about the future that “ the best thing about
future is that it comes only one day at the time.” And that day can be the day of your utmost
requirements- can be in the form of liquidity. Any thing can happen in future. Now a days
people are almost aware about the unforeseen things happening in future. So many people
have started thinking about future and have started investing in different areas, to control or
minimize risk associated with future.
Many people invest in stock, bonds, equities, banks, mutual funds, gold etc.to diversify risk. I
just want to know that how many people in Ulhasnagar are aware about their future and how
they are diversifying risk.
People not only invest in different kind of securities to save their future, which is about to
come. But the main reason to invest in different avenues is to get maximum rewards in terms
of profit.
As by investing in different avenues there is less risk, because if the poor performance of
anyone avenue will not affect much, because the profit is about to come from other
investments too.
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If we look at the history of Ulhasnagar, where approximately twelve to fifteen years back,
people here were only business oriented and most of the population of woman were living at
homes as housewives. But slowly and gradually everything got change and the process of
change is still ongoing. Simply everything is getting modernized. The narrow thinking of
people is getting broadened, girls, woman are also indulged in doing jobs along with
managing their household work.
As everything is getting modernized, but beside this people of Ulhasnagar never forget their
culture , here every festival is celebrated with great joy. As Ulhasnagar is a business hub, but
along with this, it is a culture-oriented place.
Coming towards asset allocation of Ulhasnagar people - If we take business oriented people
as investors, the main reason of their investment in different kind of securities is to get
maximum rewards in terms of profit.
On the other hand, if we consider salaried people as investors, the main reason of their
investment in different kind of securities is to overcome the risk associated with future and to
a certain extent profit earnings too.
From the above study on area, it could be understood that people of Ulhasnagar lives a luxury
life, of course not all, but most of them. There consumption pattern and buying behaviour
towards various brands of products is much different as compared to other customers because
of their standard of living. People of the town are very easily attracted towards the brands
which are endorsed by the celebrities. Considering the lifestyles and choices of people and
their preference, pesent study seems to fit with the town of Ulhasnagar.
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CHAPTER III
REVIEW OF LITERATURE:
 Sheryl E. Kimes (2011), the perception of users and non users differ; her study found
that perceived convenience and quality of an electronic food ordering app in the
minds of the consumers is significant. The perception of quality towards electronic
apps is also associated with the services offered by them and were considered
important for both users and non-users. Non-users need more personal interaction.
 Mathews Joao Chorneukar and Kanishka (2014), the study concentrated on the
perception of consumers towards electronic food ordering. The respondents were
more likely to recommend online food ordering. The study also identified that more
male customers preferred ordering food online than women. The study found that
there was more demand on cash on delivery payment system.
 Bhuvanesh Kumar Sharma and Deepak Tiwari (2015), E commerce is rapidly
growing in India. The study is limited as it covers only Bhopal region. It examined the
perception of college students towards fast food and also to identify the difference in
residential and non residential choice towards fast food. The study found that the
female students prefer to buy more fast foods than compared to male consumers.
There were also certain other factors that affect the choice of the consumers are price,
taste, quality and hygiene.
 Ramesh Chavan (2015), he attempted to measure the preference of the consumer
towards online grocery shopping in Bangalore. The hypothesis framed for the project
was, “Online grocery shopping stores are beneficial for consumers” and hypothesis
was proved to be positive
 Praveen Babu Chiruthuti (2015), the study concluded that there is scope for new
firms to enter the market. It also stated that the concept of instant and fortified food
products must be promoted. The study also found that the demographic factors affect
the purchasing power and perception of the buyer.
 H.S Sethu and Bhavya Saini (2016), their aim was to study the perception of
students towards ordering food online. The study was based on non probability
sampling method. The study revealed that the online food ordering was preferred and
used by 100 percent of the respondents, and the buying decisions where influenced by
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family and friends. The students also stated that the word of mouth by existing
customers decides the success of web based food shopping.
 Kathika and A. Manojanaranjani (2018), one of the most significant impacts of
technology has been the emergence of virtual stores that sell products or services
online. This has motivated the consumer to purchase products around the clock. Their
study was based on various food ordering apps based on customer preference and the
results were based on service and performance level. The study also found out that
these food ordering apps gives the consumers a different experience and has an
impact on their lifestyle as they are getting used to it.
 International Journal of Environmental Research and Public Health (2018), it
was an international research paper which studied the preference of buyers towards
ordering food online in Hanoi, Vietnam. It focused on the changed behavior of
consumers because of the internet and the consumer food safety concern of online
food products. The factors influencing were price and convenience. A majority of the
respondents were concerned about food safety certificate and their origin. The
findings also suggested the government of Vietnam to implement appropriate
legislations regarding trading food products online.
 Jyothishman Das (2018), the mobile application has made all traditional methods of
business outdated and has created new advanced methods in doing business. The
study was aimed on analyzing the perception of the consumers towards ordering food
online in Pune. The purpose of the study was to identify the factors influencing, their
perceptions, needs and the overall satisfaction towards online food delivery systems.
The study found that the previous bad experience is the major factor that affects
electronic food ordering online.
 Suryadev Singh Rathore and Mahik Chaudary (2018), the recent growth in
internet has augmented e commerce industries in developing countries like India. The
objectives of the study were to identify the factors that influence the consumers to
order food online and to identify the preference of the consumers towards online
shopping. The study found that the convenience and time of delivery were the factors
influencing the customers to order food online.
 V. Shanthi and L. Nanda Gopal (2018), the study concentrated on the classification
of online shoppers in the terms of demography. The result was equal as men and
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women had similar opinions on shopping online. The other demographic factors also
did not act as barrier for the consumers to shop online.
 Brymer (1991) states that the hospitality industry is comprised of those businesses
which practice the act of being hospitable; those businesses which are characterized
by generosity and friendliness to guest. This business that comprise the major
segments of the industry: food service, lodging, travel and recreation.
 Tran, 14 May 2018): The recent development of the Internet has boosted the
extension of online food services by enabling people to search, compare prices and
conveniently access these services. As of 2016, approximately 95% of the United
States population searched for online food service information at least once, and
while in 2015 more than one-third of Asia-Pacific participants, especially in
developing countries, answered that they looked for and ordered products via the
Internet. However, such business raises food safety and hygiene considerations,
particularly in low and middle—income countries where food systems are
heterogeneous and fragmented, with a predominance of small informal food retailers.
Specifically, uncontrolled food processing, packaging and transferring among small
online food retailers can elevate the risk of food contamination and contribute to food
poisoning outbreaks due to the development of several pathogenic bacteria.
 (Nguyen, 2018): The research is based on Consumer Preference and Attitude
Regarding Online and the study emphasized that using the Internet in seeking food
service information was a common practice among people living in Hanoi, Vietnam
and online interpersonal influences took a fundamental part. A high percentage of
consumers were unconcerned about accurate evidence regarding food safety in
selecting food products on the Internet. The conclusion of our findings produces
practical pieces of advice to consumers buying online food, to food retailers selling
food over the Internet and to the Government of Vietnam to implement appropriate
legislation regarding online food product information.
 (Gupta, November 29, 2018): The online food delivery market is segmented into
fixed online food delivery and movable online food delivery. On the basis of cuisine-
wise, the market is segmented into Indian food, fast food, Italian food, and others. On
the basis of the business model, the market is segmented into logistics focused food
delivery system, order focused food delivery system and full-service food delivery
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system. Full-service food service is useful for small-scale & independent restaurants.
On the basis of food sources, the market is segmented into grocery stores, restaurants
& food outlets and supermarkets etc. In addition, on the basis of the platform, the
market is segmented into the application based and platform based. The market for
online food delivery is mainly driven by rising disposable income. Changing
demographics, increasing penetration of internet & smart- phones, favorable
lifestyle changes, young population, consumption levels, a greater share of women in
the workforce, aggressive marketing strategies adopted by food startups and the
convenience of ordering is increasing significantly which led to the growth of the
market. Apart from the advantages some of the challenges include unpredictable
demand patterns, inability to influence external circumstances (traffic, weather &
changing demand on a daily basis), high delivery cost, highly concentrated peaks in
ordering during meal- times, limited delivery times and kitchen operations etc.
 (Das, 2018): According to this research, Zomato has gained positive opinion of
majority of the consumers in comparison to other service providers. It is mainly
because of their better on time delivery and better discounts. Zomato has been in the
first position in online food delivery service provider and if it includes the minor
improvements, it will sustain its upper hand in forthcoming future.The factors that
encourages consumers the most is Doorstep Delivery followed by Ease &
Convenience. Consumers are mostly influenced when they receive any Rewards &
Cashbacks followed by Location. Most preferred online food delivery service
provider is Zomato followed by Swiggy, The factors that prevent consumers to use
the online food delivery services are Bad Past Experience followed by Influence from
friends/family.
 (Pathan, December 2017): According to the proposed system is based on user’s
need and is user centered. The system is developed in considering all issues related to
all user which are included in this system. Wide range of people can use this if they
know how to operate android smart phone. Various issues related to Mess/Tiffin
Service will be solved by providing them a fullfledged system. Thus, implementation
of Online Food Ordering system is done to help and solve one of the important
problems of people. Based on the result of this research, it can be concluded: It helps
customer in making order easily; it gives information needed in making order to
customer. The Food website application made for restaurant and mess can help
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restaurant and mess in receiving orders and modifying its data and it is also made for
admin so that it helps admin in controlling all the Food system. With online food
ordering system, a restaurant and mess menu online can be set up and the customers
can easily place order. Also with a food menu online, tracking the orders is done
easily, it maintain customer’s database and improve the food delivery service. The
restaurants and mess can even customize online restaurant menu and upload images
easily. Having a restaurant menu on internet, potential customers can easily access
it and place order at their convenience. Thus, an automated food ordering system is
presented with features of feedback and wireless communication.
 (Mohit kumar, 1 may 2017): Online reviews have an important role in consumer
decisions for purchasing products with one survey reporting that 90 percent of
individuals indicated that positive reviews affected their purchase decisions and 80
percent indicated that negative reviews affected their purchase decisions
(Dimensional Research, 2013). Restaurant reviews are the most commonly searched
topic in online reviews with 67 percent of consumers searching for reviews about
restaurants (BrightLocal, 2013) and 15 percent indicating that they use online review
Web sites every time to search for restaurant reviews (Ghiselli and Ma, 2015).
Although online restaurant reviews are important to consumers, there appears to be
limited research on the topic of how restaurant reviews influence consumers to
choose to purchase at restaurants. One study of an anonymous Chinese restaurant
review Web site found that positive reviews and greater number of reviews were
associated with increased restaurant sales while negative reviews were associated
with decreased restaurant sales (Lu, et al., 2013).
 (Ghadiyali, 2017): With continuous influx of professionals in cities and rapid
urbanization of India the food delivery and restaurant segment is now thriving at a
blistering pace. The present study found a significant relationship between factors
considered important while selecting a food delivery app. And from the analysis it
was also found that the facilities offered play a major role in making a purchase from
an app.
 (Saini, 2016): This study is based on Customer Perception and Satisfaction on
Ordering Food via Internet, It is found from the study that almost all the respondents
have easy access to the Internet, a major percentage of the respondents buy twice or at
least once a week. Most of the respondents are familiar with ordering food online
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over 3 years. Overall satisfaction level on the scale of 5 is 3.69 which mean it is
somewhat high on reliability assurance and responsiveness. The study reveals that
penetration of online food ordering services is high. The student users of these
services are well versed with the information available on these websites and also use
help services available online. Raising the service levels could delight the customer
but at the same time create more expectations in the minds of the consumers. This
would require more investment from the company to ensure the desired service level.
 (Ismail, December 2015): The research is all about Key Success Factors of Online
Food Ordering Services, In this study, attempt was made to identify the key success
factors that lead to loyalty in an online ordering environment. Results suggest that
online food ordering companies have to emphasise on information quality, website
design, security, privacy and payment system towards their customers in order to
increase the level of web trust and satisfaction. The service providers could also enjoy
continuous recurring revenues from the loyal customers if they provide efficient
delivery, reliable customer service and food quality. The results of the empirical study
provide support for the positive relationships between website quality and web trust,
service quality and satisfaction, web trust and loyalty, and satisfaction and loyalty.
 (Ahmed, December 2015): In this study, attempt was made to identify the key
success factors that lead to loyalty in an online ordering environment. Results suggest
that online food ordering companies have to emphasise on information quality,
website design, and security/privacy and payment system towards their customers in
order to increase the level of web trust and satisfaction. The service providers could
also enjoy continuous recurring revenues from the loyal customers if they provide
efficient delivery, reliable customer service and food quality. The results of the
empirical study provide support for the positive relationships between website quality
and web trust, service quality and satisfaction, web trust and loyalty, and satisfaction
and loyalty.
 (Jenvild, 2014): According to the research Indian consumers are demanding more
take- away and home-delivery services. There is much unpenetrated scope in this
market, and successful operators should apply the new preferences and trends in an
innovative manner when developing their home-delivery services. Indians are
extremely active online, and social media marketing is very effective for this market.
Consumers from all social groups are identifying with each other under the umbrella
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of nationalism, Operators have a golden chance to exploit this phenomenon when
attempting a strategy to appeal cross-segments. Indian tastes call for more
experimentation. Consumers experience little difference of outlets, and thus will not
develop brand loyalty without more differentiation in the market. India wants more
health and hygiene. Higher education and increased lifestyles diseases has created
awareness of importance of health. The demands and supplies of “healthy” products
will continue to grow at a fast rate.
 (Hult K. K., December 2005): The results of this study provide good support for the
relationships between customer perceptions of service/Product quality, Product
freshness, Site easiness, Time saving, and their continued loyalty to both the channel
and the particular brand. The evidence clearly shows a longitudinal relationship
between higher perceptions and increased loyalty. The data provide important
insights for researchers and managers interested in developing and perfecting
methods for retaining customers in the dynamic arena of Internet retailing. The
application of behavioural models of this type is generalizable, given that most
Internet retailers have some type of ongoing data-collection system for surveying
customers regarding their satisfaction with various aspects of the transaction. While
the models developed in this article are specific to the two companies and the online
grocery industry, the general approach should generalize fairly easily because
companies generally have substantial investments in information technology of the
type necessary to support such behavioural modeling.
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CHAPTER IV
Data Analysis
Q1) Are you aware about the Ordering food online channels?
 Yes
 No
Food Online Channels
20%
Yes
No
80%
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Q2) Do you find Ordering food online easy and convenient?
 Yes
 No
 Maybe
Easy & convinent Online Ordering
20%
Yes
No
Maybe
20% 60%
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Q3) How many Ordering food online channels are you aware of?
 Telephone/Mobile
 Restaurant Site
 Restaurant App
 Multiple-restaurant site
Ordering Food
20%
25%
Telephon eMobile
Reasturant Site
Reasturant App
Multiple- Reasturant
30%
25%
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Q4) Which is the convenient channel to order food online?
 Restaurant site
 Restaurant app
Ordering Food
20%
25%
Telephon eMobile
Reasturant Site
Reasturant App
Multiple- Reasturant
30%
25%
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Q5) What kind of Gadgets and Technology you prefer to use while you order food online?
 Simple cell phone
 Smart phone
 Laptop
 I pad
Gadegts and Technology

5%
5% 10%
Simple Cell Phone

Smart Phne
Laptop
Ipad
80%
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Q6) On which occasions do you order food online?
 Business event
 Special occasion
 Social
 Don’t want to cook
Occasion of Order
10%
20%
Business event
Special Ocassion
25% Social
Don’t Want to Cook
45%
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DURING COVID-19
Q7) How often do you order food online?
 Daily
 Weekly
 Monthly
 Yearly
Food Order Online

10%
10%
Daily
40% Weekly
Monthly
Yearly
40%
Page 76
DURING COVID-19
Q8) What days do you order online?
 Weekdays
 Weekends
 Anytime
Days Order
10%
20%
Weekdays
Weekends
Anytime
70%
Page 77
DURING COVID-19
Q9) How do you come to know about online food ordering process?
 Newspaper
 Internet
 Advertisements
 Friends
Online Ordering Process

10% 10%
10%
Newspaper
Internet
Advertisment
Friends
70%
Page 78
DURING COVID-19
Q10) On an average, how much money do you spend monthly to order food online?
 Less than 1000
 1000-2000
 2000-3000
 More than 3000
Average Money
5%
5%
10%
Less than 1000
1000-2000
2000-3000
More than 3000
80%
Page 79
DURING COVID-19
Q11) What are the challenges you faced while ordering food online?
 Site is slow
 Site is not working
 Service follows up is poor
 Delivery time is more
Challenges Faced
20%
Site is Slow
Site is not working
Service
10% 50% Delivery time
20%
Page 80
DURING COVID-19
Q12) Do you find online food ordering secured?
 Yes
 No
Security
20%
Yes
No
80%
Page 81
DURING COVID-19
Q13) What mode of payment do you prefer the most?
 Internet Transaction
 Cash on Delivery
 Credit/Debit
 Payment apps(Gpay,paytm etc..)
Payment
10%
10%
Internet Transaction
Cash on Delivery
Credi/ Debit
50% Payment Apps
30%
Page 82
DURING COVID-19
Q14) Which app/site do you prefer while ordering food online?
 Zomato
 Swiggy
 Uber eats
 Foodpanda
Prefer Food Online

5%
10%
35% Zomatao
Swiggy
Uber eats
Food Panda
50%
Page 83
DURING COVID-19
CONCLUSION
The online food ordering app system 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, preference and satisfaction derived by the consumer and also to find
which factor influence customers to buy food through online from food ordering app. The
purpose of this online food ordering system is basically to save the time of the customers
especially when he/she has to invite people for any occasion. The chief reason of electronic
ordering is convenience. The single most important attribute of electronic ordering is
accuracy. Customers who evaluate service quality based on interactions with employees
won’t want to use self-service ordering. Similarly, customers who were uncomfortable with
technology may be reluctant to try an electronic self-service site because they may be afraid
of getting tangled up in the technology. It shows that perceived control and convenience are
keys to customer use of online ordering which leads to higher satisfaction. Young customers
are more likely to use online, mobile or text ordering. Young customers place a greater value
on convenience and speed than older users do. Almost all users feel safe paying online. The
Service rendered by the food ordering app is the major factor behind its success.
Page 84
DURING COVID-19
Bibliography
1. www.kfc.com
2. http://www.mcdonalds.ca/en/aboutus/faq.aspx.
3. http://www.kfc.com
4. www.McDonalds.com
5. www.slideinfo.com
6. www.scrided.co.in
7. www.mediapartner.com
8. www.mypro.co.in
9. www.sipnsurfcybercafe.com
10. www.sipnsurfpro.com
Page 85
DURING COVID-19
Annexure
Name
Age
Below 20
20-25
26-30
31-35
36-40
41-45
46-50
50 & above
Education
10th
11th & 12th
Graduation
Post Graduation
Gender
Female
Male
Occupation
Student
Self Employed
Professional
Employee
Martial Status
Single
Married
Q1) Are you aware about the Ordering food online channels?
 Yes
 No
Q2) Do you find Ordering food online easy and convenient?
 Yes
Page 86
DURING COVID-19
 No
 Maybe
Q3) How many Ordering food online channels are you aware of?
 Restaurant Site
 Restaurant App
Q4) Which is the convenient channel to order food online?
 Restaurant site
 Restaurant app
Q5) What kind of Gadgets and Technology you prefer to use while you order food online?
 Simple cell phone
 Smart phone
 Laptop
 I pad
Q6) On which occasions do you order food online?
 Business event
 Special occasion
 Social
 Don’t want to cook
Q7) How often do you order food online?
 Daily
 Weekly
 Monthly
 Yearly
Q8) What days do you order online?
 Weekdays
 Weekends
 Anytime
Page 87
DURING COVID-19
Q9) How do you come to know about online food ordering process?
 Newspaper
 Internet
 Advertisements
 Friends
 Relatives
Q10) On an average, how much money do you spend monthly to order food online?
 Less than 1000
 1000-2000
 2000-3000
 More than 3000
Q11) What are the challenges you faced while ordering food online?
 Site is slow
 Site is not working
 Service follows up is poor
 Delivery time is more
Q12) Do you find online food ordering secured?
 Yes
 No
Q13) What mode of payment do you prefer the most?
 Internet Transaction
 Cash on Delivery
 Credit/Debit
 Payment apps(Gpay,paytm etc..)
Q14) Which app/site do you prefer while ordering food online?
 Zomato
 Swiggy
 Uber eats
 Foodpanda

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 CONSUMER BUYING PATTERN THROUGH ZOMATO APP

University of Mumbai for partial completion of the degree of

Bachelor of Commerce (Management Studies)

Under the Faculty of Commerce

HARI KRISHNA CHALWADI

Roll no. 20252049

Under the Guidance of

Prof. VARSHA SALWANI

SHRI SIDH THAKURNATH COLLEGE OF ARTS & COMMERCE

ULHASNAGAR – 421 004.

Date of submission: 31/03/2021

Name & Signature of Researcher

E-commerce can be classified into six types:

Online food ordering

Advantages for Electronic Ordering

Disadvantage for Electronic Ordering

THE FOOD SERVICE INDUSTRY:

HISTORY OF ONLINE FOOD ORDERING:

ONLINE FOOD ORDERING IN INDIA:

ONLINE FOOD ORDERING IN INDIA:

WHY PEOPLE ORDER:

FOOD ORDERING APPS IN INDIA:

FOOD ORDERING APP IN INDIA DISTRICT:

ZOMATO: Zomato is an online food ordering service which is launched by popular

STATEMENT OF THE PROBLEM: To study the customers perception towards online

It had funds coming from a Singapore government owned company-Temasek which

Values followed by Zomato:

 Teamwork, Initiative, Leadership.

HIGHLIGHTS OF THE ZOMATO DELIVERY SERVICE

SWOT ANALYSIS OF ZOMATO

 It is the first delivery service in most of the nations.

 It has a large number of investors and has a enough funding.

 Uncertain Research and Development outcomes, sometimes if the predictions of

Values followed by the Swiggy:

 Striving for excellence.

 To be sincere and display highest levels of reliability.

 Being polite and humble towards its customers.

BENEFITS SWIGGY EMPLOYEES RECEIVE

 It provides group medical insurance for all its employees/delivery boys.

 Pre-loaded food cart.

 Mobile allowance is given to all the delivery boys.

 Maternity and implementation leave policy.

 Provides free support on tax and investment planning.

Market Size in India

 Revenue is expected to show an annual growth rate (CAGR 2019-

Strong Brand Name:

Geographical Factors affecting Competition:

• McDonald’s entered India in 1996.

• Today it has around 211 Restaurants across India.

• Presently, it has around 57 outlets in the National capital region.

 They are prepared separately, using dedicated equipment and utensils.

 Only pure vegetarian oil is used as a cooking medium.

 Cheese and sauces are completely vegetarian and egg less.

 Separation of vegetarian and non-vegetarian food products is maintained throughout

McDonald’s corp. is currently From of the most successful peoples products

McDonald's predominantly sells hamburgers, various types of chicken sandwiches and

Value Ladder strategy:-

i. Started offering value meals in a range of prices.

80-20 MENU BOARD

• The most common strategy in fast food industry.

• Plays on Psychological factor of the customer.

• Peoples appreciate the resulting simplification of the purchase decision

 McDonald's is Your Kind of Place (1967)