Consumer Buying Pattern Through Zomato

“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
Certificate
This is to certify that Mr Hari Krishna Chalwadi worked and duly completed his Project Work for
the degree of Bachelor of management studies(marketing) under the Faculty of
Commerce in the subject of finance and his project is entitled , “CONSUMER BUYING
PATTERN THROUGH ZOMATO APP DURING COVID-19 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.Guide Name
Date of submission: 09/04/2021
Declaration by learner
I the undersigned Mr.Hari Krishna Chalwadi here by, declare that the work embodied in this
project work titled “CONSUMER BUYING PATTERN THROUGH ZOMATO APP
DURING COVID-19 IN AMBERNATH ”, forms my own contribution to the research work
carried out under the guidance of Prof. Varsha Salwani is a result of my own search work
and has not been previously submitted to any other University for any other Degree / Diploma
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 rules and ethical conduct.
Hari Krishna Chalwadi

Certified by
Acknowledgement
To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions in
the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.
I would like to thank Principal, ___________________for providing the necessary facilities

required for completion of this project.
I take this opportunity to thank our Prof. Varsha Salwani for her moral support and
guidance.
I would also like to express my sincere gratitude towards my project guide Prof. Varsha
Salwani whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference books and
magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout my project.
Index
SR.NO PARTICULARS PAGE NO

1. CHAPTER I 1-48
1.1 Introduction
1.2 Online Food Ordering
1.3 Advantages
1.4 Disadvantages
1.5 The Food Service Industry
1.6 History of Online Food Ordering
1.7 Online Food Ordering in India
1.8 Food Apps in India
1.9 Investment
1.10 SWOT Analysis
1.11 Market Size
1.12 Pestel Analysis
1.13 Poster Five Models
1.14 M-Covid Perfomance
2. CHAPTER II 49-56
2.1 Research Methodology

2.2 Need of Study
2.3 Statement of Problem
2.4 Objectives
2.6 Scope of the Study
2.6 Data Collection
2.7 Limitation
2.8 Area of Study
3. CHAPTER III 57-63
3.1 Literature Review

4. CHAPTER IV 64-84
4.1 Data & Analysis

5. Conclusion 85-90
Bibliography
Annexure
CONSUMER BUYING PATTERN THROUGH ZOMATO APP DURING COVID-19
IN AMBERNATH
CHAPTER I
1.1 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 Ecommerce 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, eMarketplace, e-
Payment, e-Entertainment, e-Ticketing, eLearning, to e-Citizenor eGovernement. 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 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
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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 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.
1.2 Online food ordering
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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
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
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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.
1.3 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.
1.4 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
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
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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.
1.5 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
service feed a huge number of people. The food service industry is one of the largest and fast
growing industries in the world
1.6 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
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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
1.7 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, epayment 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.
• 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:
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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. 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.
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• We can get food whenever we want.
• Free from going to restaurants and pickups.
1.8 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:
• 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.
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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.
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 make
their preferred choice.
1.9 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,
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Project on Consumer Buying Behaviour of Zomato
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.
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.
1.10 SWOT ANALYSIS OF ZOMATO

1. STRENGTHS
• It is the first delivery service in most of the nations.
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• 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
• 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.
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• 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
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
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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.
• 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.
1.11 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
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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 20192023) 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.
• In global comparison, most revenue is generated in China (US$38,411m in

2019).
1.12 Pestle Analysis:
Figure: 1.3
Political
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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.
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
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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 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
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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.
1.13 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 winnertakes-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.
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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.
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.
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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 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:
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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 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
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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 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
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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.
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
jointventure 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.
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• 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.
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 nonvegetarian 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
Page 23
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 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
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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.
• 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)
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 Good Time, Great Taste, That's Why This is My Place (1988)
 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 investment alternatives and
Page 26
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.
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
Page 27
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 wellestablished
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
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
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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 %
• 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
longstanding 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
Page 29
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.
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
Page 30
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.
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
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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
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
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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.
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.
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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 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.
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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.
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
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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.
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.
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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 oBuild 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
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.
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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 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.
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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 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.
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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.
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
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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 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.
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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
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
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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

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
oAYC (All you can Eat) specially offer for Ramazan ul Mubarak
oFree 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
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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
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
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• 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.
• Be open, hFromst and direct in our dealings with From and other.
• C o m m it o u r s e l v e s t o t h e h i g h e s t s t a n d a r d t o t h e p e r s o n a l 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.
1.14 Mid COVID-19 Performance Report
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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 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-
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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
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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 preCOVID 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 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
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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.
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)
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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 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.
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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 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
2.1 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.
2.2 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.
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• To understand the mindset of consumers and provide satisfactory customer service.
• To understand the consumer need and wants.
2.3 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.
2.4 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
2.5 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
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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.
2.6RESEARCH 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 100 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 60 consumers are taken as respondents. This survey is based on simple
random sampling method. The data is restricted to 60 respondents of consumers in India.
2.7 DATA COLLECTION METHOD:
PRIMARY DATA
In order to analyze the perception of consumers towards buying food online, 60 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.
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PERIOD OF THE STUDY:
It took nearly two months of research and collecting data through various sources for this
research project.
2.8LIMITATIONS 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 two 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.
9 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).
Ambernath nearest city is Ulhasnagar
Ambernath (W): it is located on the west side of railway station

. The main center here is a market
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where many people visit from nearby areas like kalyan, ambernath, badalpur, dombivili, thane,
titvalaetc for shopping.
Ambernath east
eastern side of railway stations and it is mainly a residential area. You can see several jean
making small scale industries here. Shiv mandir
This locality is heavily populated with marathi community people.

As said earlier, Ambernath is a place which is nowhere left behind because each and
everything is available here, as it is good in providing services like – EDUCATION,
HOSPITALITY, BANKING AND INSURANCE SECTOR, TOURS AND TRAVELS,
BEING IMPROVED IN INFRASTUCTURE ALSO , ETC.
Education:
The city has colleges and an industrial-training institute like institute of technology,sices high school
and junior college,TMS high school and junior college,fatima high school and junior college , mahatma
gandhi school and degree college of Commerce,Art’sand science, ITI Institute of engeenering
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Ambernath , one of the busiest business centers in Maharashtra, has several jewellery
showrooms. Some of the popular jewellery showrooms in the city are listed here. We can watch
the gradual development of Ambernath to a shopping hub and business centre.
Specialities:
Ambernath, which is the most popular industrial and commercial township of Thane district,
is famous for shops of wedding costumes, jeans and other readymade garments. Sin
There are many shops, which are exclusively aimed for wedding costumes and jewelry
The most busy commercial and shopping center here are Ambernath west. Tourist
Attractions in Ambernath:
There are several tourist attractions in Ambernath including beautiful locations, religious
places and historical monuments etc. Some of the famous temples in Ambernath including
Shiv mandir temple
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
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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.
If we look at the history of ambernath, 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 ambernath never forget their
culture , here every festival is celebrated with great joy. As ambernath is a business hub, but
along with this, it is a culture-oriented place.
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Coming towards asset allocation of ambernath 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 ambernath 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 ambernath.
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CHAPTER III
3.1REVIEW 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
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percent of the respondents, and the buying decisions where influenced by 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.
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 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 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 cuisinewise, the
market is segmented into Indian food, fast food, Italian food, and others. On the basis
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of the business model, the market is segmented into logistics focused food delivery
system, order focused food delivery system and full-service food delivery 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 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
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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 over 3 years.
Overall satisfaction level on the scale of 5 is 3.69 which mean it is somewhat high on
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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 of nationalism,
Operators have a golden chance to exploit this phenomenon when attempting a strategy
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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
4.1Data Analysis
Q1) Are you aware about the Ordering food online channels?
• Yes
No
Food Online Channels
20%
Yes
No
80%
Q2) Do you find Ordering food online easy and convenient?

• Yes
• No
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Maybe
Easy & convinent Online Ordering
20%
Yes
No
20% Maybe
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
Multiple-restaurant site
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
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I pad
Gadegts and Technology
5% 10%
5%
Simple Cell Phone

Smart Phne
Laptop
Ipad
80%
Q6) On which occasions do you order food online?

• Business event
• Special occasion
• Social
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• Don’t want to cook
Q7) How often do you order food online?

• Daily
• Weekly
Occasion of Order
10%
20%
Business event
25% Special Ocassion
Social
Don’t Want to Cook
45%
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• Monthly
Yearly
Food Order Online
10%
10%
40% Daily
Weekly
Monthly
Yearly
40%
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Q8) What days do you order online?
• Weekdays
• Weekends
Anytime
Days Order
10%
20%
Weekdays
Weekends
Anytime
70%
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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%
Q10) On an average, how much money do you spend monthly to order food online?
• Less than 1000
• 1000-2000
• 2000-3000
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More than 3000
Average Money
5%
5%
10%
Less than 1000
1000-2000
2000-3000
More than 3000
80%
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
10% 50%
Service
Delivery time
20%
Page 77
Q12) Do you find online food ordering secured?
• Yes
No
Security
20%
Yes
No
80%
Page 78
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
50%
Credi/ Debit
Payment Apps
30%
Q14) Which app/site do you prefer while ordering food online?

• Zomato Swiggy
• Uber eats
• Foodpanda
Page 79
Prefer Food Online
5%
10%
35%
Zomatao
Swiggy
Uber eats
Food Panda
50%
Page 80
Working individuals:-
Majority of the WIs (38%) prefer to order through mobile apps
since most of them are students. 34% of WIs preferred ordering food
through direct call to restaurant, direct walk in to restaurant
(14%) and online web portals (14%).
Page 81
Page 82
Page 83
Page 84
44% of students usually order food for 2-3 people and 15% of
students order food for 3-4 peoples. 41% students order food for self.
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
Page 85
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 86
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
Annexure
Name
Age
Below 20
20-25
26-30
31-35
36-40
41-45
46-50
Page 87
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
• No
Page 88
Maybe
Q3) How many Ordering food online channels are you aware of?
• Restaurant Site
• Restaurant App
• Multiple-restaurant site
Q4) Which is the convenient channel to order food online?
• Restaurant site
• Restaurant app
• Multiple-restaurant site
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 89
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
Page 90
Q15) Satisfaction Level of Online Food Ordering?
• Neutral
• Dissatisfied
• Satisfied
Highly Satisfied
• Highly Dissatisfied
Q16) Frequency of order food home delivery in a month?
• 10 to 15 days
• 15 to 20 days
• 20 to 25 days
• 5 to 10 days
Q17) Number of people for which food is orderd?
• 2 to 3
• 3 to 4
• 1 people
• 4+
Q18) Famous Entertainment Prefrenes
• Travelling
• Going to out to eat
• Moive
• Others
Q19) Method of Placing Home Delivery
• Mobile Apps
• Online
• Direct walk in
• Direct call
Page 91
Q20) Occasion of order food
• Birthday Celebration
• House Party
• Friends
Page 92

Consumer Buying Pattern Through Zomato

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“CONSUMER BUYING PATTERN THROUGH ZOMATO APP DURING COVID-19

University of Mumbai for partial completion of the degree of

Bachelor of Commerce (Management Studies)

Under the Faculty of Commerce

Hari Krishna Chalwadi

Under the Guidance of

Prof. Varsha Salwani

SHRI SIDH THAKURNATH COLLEGE OF ARTS & COMMERCE

the degree of Bachelor of management studies(marketing) under the Faculty of

PATTERN THROUGH ZOMATO APP DURING COVID-19 IN AMBERNATH”,

Prof. Varsha Salwani

Date of submission: 09/04/2021

Hari Krishna Chalwadi

Prof. Varsha Salwani

I would like to thank Principal, ___________________for providing the necessary facilities

SR.NO PARTICULARS PAGE NO

2.1 Research Methodology

3.1 Literature Review

4.1 Data & Analysis

E-commerce can be classified into six types:

1.3 Advantages for Electronic Ordering

1.4 Disadvantage for Electronic Ordering

1.5 THE FOOD SERVICE INDUSTRY:

1.6 HISTORY OF ONLINE FOOD ORDERING:

1.7 ONLINE FOOD ORDERING IN INDIA:

• Perception of the consumer: Perception is defined as a process through which

ONLINE FOOD ORDERING IN INDIA:

WHY PEOPLE ORDER:

1.8 FOOD ORDERING APPS IN INDIA:

FOOD ORDERING APP IN INDIA DISTRICT:

Zomato is the biggest rival for Swiggy in India.

Values followed by Zomato:

• Teamwork, Initiative, Leadership.

HIGHLIGHTS OF THE ZOMATO DELIVERY SERVICE

1.10 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.

• Zomato still requires a lot of expansion.

Values followed by the Swiggy:

• Striving for excellence.

• To be sincere and display highest levels of reliability.

• Exhibit prejudice for action.

• 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.

1.11 Market Size in India

• Revenue in the Online Food Delivery segment amounts to US$8,167m in 2019.

• Revenue is expected to show an annual growth rate (CAGR 20192023) of 9.1%,

• The market's largest segment is Restaurant-to-Consumer Delivery with a

• In global comparison, most revenue is generated in China (US$38,411m in

1.12 Pestle Analysis:

1.13 Porter’s Five Forces Model:

Bargaining power of buyers

• Since it is easy-to-use online platform, constraints related to distribution is eliminated.

Bargaining power of suppliers

Threat of new entrants Advanced technologies:

Innovation in technology positively affects Zomato.

Strong Brand Name: