Professional Documents
Culture Documents
Industry Readiness
Group assignment
BBA-MBA Programme
2020-25
NAMES ROLL NO
Aastha Raisurana 207302
Akshat Singh Dasondhi 207304
Ananta Soni 207305
Gauri Vyas 207317
Sanjana Sodagar 207363
Vasu Mathur 207378
CONTENTS
S. NO TOPIC PAGE
NO.
1. introduction
2. Business model
5. challenges
Partnerships
Swiggy has partnered with burger king to provide
delivery services. It has also partnered with google
local guide to facilitate customer reviews, and with
Sodexo to enable customers for paying through meal
cards. Swiggy has partnered with Indifi Technologies to
facilitate a financing program for partner restaurants.
'Swiggy Money' is a digital wallet launched by Swiggy in
partnership with ICICI Bank. The customers who do not
have an account in the ICICI bank can also avail of the
services. It will allow the customers to store money to
pay for the orders.
Delivering to more than 500 cities in India, with over
1.4 Lac restaurant partners and more than 1 Lac
delivery partners, It has not only provided for food
delivery but also for acting as a driving force of
employment across the nation.
Then came the biggest test in the form of the
nationwide lockdown imposed on March 24 which led
to the economy undergoing a tumble, a true test of
baptism by fire for Swiggy. While most businesses
ceased operations, some tried to adapt but failed to do
so but Swiggy didn't give up. They quickly incorporated
new standards and re-engineered their business model
to effectively fight the changing structure of the
economy.
It adapted in the form of the 5-measure model
Customer Safety - Make customers take
precautions while availing delivery
Effective outreach - Assurance of safety in their
new way of operations
Temperature tracker - To help convince customers
on the safety of delivery executives
Safety badges - Badges to ensure the highest
standards of hygiene.
No contact delivery - Ensuring no contact with the
delivery associate
Swiggy’s Function/ Business
Model
Swiggy- The Leading Food Delivery Giant
India’s leading food giant Swiggy performs its functions
like payment, order billing, food delivery location, etc.
primarily through its application on various digital
platforms. The business model canvas of Swiggy is
based on a hyper-local on-demand food delivery
business operation. Working as a bridge between
restaurants and customers, Swiggy utilizes
an innovative technology platform that works as a
single point of contact.
Just like Grubhub in the USA, Swiggy operates on a
hyper-local on-demand food delivery business model.
It not only aggregates restaurants but also organizes a
fleet of delivery partners that deliver food on-demand.
Mainly like a parent restaurant for all the other
restaurants. Swiggy acts like a shed for all the
restaurants. The founders, Rahul Jaimini, Nandan
Reddy, and Sriharsha Majety saw a major gap between
these restaurants and the foodies out there. And so,
saw a major problem and found a solution through
SWIGGY.
So How Do They Function?
Swiggy’s primary operations occur through its
application or website. Making it very easy for
operation for the customers, they have designed and
also collaborated with various net banking businesses
like Paytm, Google Pay, PhonePe, etc.
In a food-delivery world, once the order gets placed,
the customer can just sit back, relax & wait for their
food to arrive at their doorstep.
In addition to this, like other on-demand
delivery startups, Swiggy also has integrated the
Google Maps API or GPS which lets the customers
know where their order is and the amount of time it
will take for their order to get delivered.
Pricing Policy
Delivery Charges
The first type of revenue stream Swiggy obtained
is from its customers. A nominal delivery fee is
charged from the customers named as ‘delivery
charges. Swiggy raises the charges during high
order demands or at the times of occasions or
festivals.
Commissions
Swiggy acquires another major part of the revenue
stream from commissions. It collects commissions
from restaurants to generate sales leads and to
deliver their food items to the customers through
their application or website.
Advertising
They say “Marketing without advertising is like winking
in the dark.” And, Swiggy has adopted this phrase
letter by letter. This happens through Banner
Promotions, Priority listing of Restaurants, and many
more.
Partners
The partners can be divided into two categories:
Restaurant Partners: The restaurant partners are
restaurants that opt to deliver to customers that
come from Swiggy application and website partner
restaurant Swiggy. They are the primary way
through which Swiggy operates.
Delivery Partners: They form the delivery fleet
which is given the responsibility to pick up the
order from the partner restaurant and deliver it to
the end consumer. They are mainly the delivery
persons. Their orange helmets, shirts, and even
the delivery box have made orange everyone’s
new favorite.
Target Market
Swiggy’s main target audience is the corporate,
students, or simply the people that don’t want to go
outside and dine at fancy restaurants, rather have their
favourite meal at their homes and maybe while
watching TV, Netflix, etc.
o
Building good relations with restaurants, bakeries,
etc. since Swiggy is in dual partnership mainly with
restaurants.
Since Swiggy bridges the gap between customers
and restaurants through food delivery; it has to
have proper recruitment and selection of these
delivery persons.
The primary job is to have effective and efficient
management of delivery and payment. The
company requires to control and supervise all the
operations from order food to delivering it to the
customer.
Building its IT infrastructure is an essential activity
because it is an online food delivery platform and
needs to be constantly updated and renovated.
Alongside this, the server has to be protected so
that it does not crash and the information does
not get hacked.
The most important role is to have good relations
with customers. Hearing their grievances and
queries is a small but significant job Swiggy
performs.
Building A Brand
Real-time tracking
Swiggy’s software is equipped with real-time GPS
tracking systems so that the customers can track when
their delicious food will arrive at their doorstep. The
map will show the exact location of the delivery boy
and the time it will take for him to reach.
Loyalty points
Online food ordering like Swiggy, offers loyalty points
which will further help them place future to order in
the forms of offering some compensation, discounts,
gift hampers, combo offers, etc. This encourages
customers to always choose Swiggy.
Effective customer support
Swiggy offers 24/7 customer support facilities that
could be in the form of messaging, calling, emailing, or
even through social media. They are known to be very
responsive to any query or complaint that the
customer has.
A Foodie’s Dream Come True
Due to such different features and a host of different
options provided by Swiggy, it might soon gain a
competitive advantage and increase its customer base
as we already see happening.
They have become our answer to all our food cravings
and in every literal way have become a foodie’s
favourite destination for food delivery at his/her home.
SWIGGY’S GROWTH AND
DEVELOPMENT STRATEGIES
Swiggy has been able to cater to a huge target
audience and these audiences have varied
characteristics, ages, and behaviour. Looking at India’s
market size, Swiggy has a great population to target.
These are the people who are college students,
working professionals, and entrepreneurs who have a
good lifestyle and are living in posh localities.
Swiggy uses various strategies to achieve the target
audience:
Segmentation strategy:
Under the segmentation strategy, Swiggy uses
demographic segmentation in which it targets the
younger audience as they find it convenient to get food
at their doorsteps. The segmentation includes
teenagers, college students, and working-class people
who are living independently.
Under behavioural segmentation, the company targets
the people who want to get the food at their doorstep
quickly and prevent going out. Swiggy spends most of
its expenditure on making Swiggy a go-to app for the
people so that it can be preferred over others.
Under psychographic segmentation, Swiggy targets
people who want a convenient lifestyle and will prefer
staying at home to get the food to deliver rather than
going out and get stuck in the traffic.
Positioning strategy:
Swiggy’s positioning strategy is the application by
which any individual can access food wherever they
want. All the marketing efforts create a brand image of
Swiggy as it can provide you food conveniently and
easily at your home. It believes in consumer
satisfaction and provides the best consumer
experience through which people can rely on it.
The partner restaurants are also satisfied as Swiggy
acts as a mediator between the restaurant and
consumer. As it increases their sales and market
capture.
Diversification strategy:
Swiggy has the strategy of making Hyperlocal product
deliveries. It has a delivery diversification strategy. It
aims to not only make the delivery for the food, but it
also aims to create a delivery system for medicine,
grocery, gift shops, and flower shops and capture a
larger share of the delivery market of India.
40%
60%
#WhatsInAName
Swiggy launched this ad campaign with an intent to sensitise its user
base to empathize with Swiggy delivery partners and highlight the
dignity of labour and how they deliver happiness to our homes.
Email marketing:
Swiggy has an efficient email marketing strategy in
which it sends the email to its customers with a catchy
advertisement and one-liner. The regular customers
get emails with coupon codes, vouchers, and
discounts. The visuals in the emails are also very
enticing. They also make use of current affairs and
events to send humorous emails. Such emails ensure
that a high number of people open their emails. These
emails give various reasons to customers to order from
Swiggy. This is how successful email strategies must be
thought of.
Strengths
Fast Deliveries
Swiggy is famous for its fast deliveries. It accesses the locations of its
customers, allowing them to place orders in Hotels
and restaurants nearest to them. In the interface, the
customers are shown the hotels nearest to them.
With this model, Swiggy can process the orders of its
customers efficiently.
Trained Employees
Yet another strength of Swiggy is its well-trained
employees. The delivery men are well trained and
get the service delivered to the customers.
Wide Selection
Another strength of the company is the huge
number of selections it has of the restaurants. It
gives the customer numerous varieties of eateries
in the nearby places and an extensive menu
available there. It also tries to show you the places
based on your preference, whether veg or non-
veg.
Weakness
Delivery Charges
The brand incurs some delivery and packing charges
from the customer wherein the total bill amount would
increase. So, this is a great weakness for the brand
because some customers might hesitate to order
through the platform as it might cost an extra amount.
Also, its competitors allow the customers to pay online,
i.e. through digital wallets and net banking, it is not
available in Swiggy.
Opportunities
Space for Innovation
The online food delivery market is a booming one. It
has stretched itself in the Indian market in the last few
years. This provides the company to introduce
innovations in the market to expand its customer base.
Growing Marketplace
Swiggy has a vast opportunity waiting in the market as
there are many potential customers. They are many
people who have not yet tried the online food retail
market and are likely to join because of the current
pandemic as it is not advisable to go out to eat. So it
would benefit the brand. When customers increase,
the brand also increases.
More Service
It should find ways to incorporate more service in its
operations. It should also try ways to cut down on the
delivery charges so that there would be more
customers flowing in. This will increase its customer
base of those who originally preferred the other
brands.
threats
Fewer Customers
Currently, Swiggy has very few customers, and this is a
major threat to the brand. When there are fewer
customers, it would be tough to increase their sales
that would impact their profit. For this active
marketing is advised. Nowadays, the ads on YouTube
are generally Zomato’s, which might prove to be a
potential threat.
Increasing Competitors
Swiggy sees many competitors like Zomato,
Foodpanda, Uber eats, Domino’s, etc. When new
competitors arise, they will give new offers, and at
times people might tend to switch to the new brand.
So, this way, it is a significant threat to the brand. To
attract customers away from the competitors, swiggy
puts discounts during festivals, which in turn reduces
its revenue, but also increases its customer base which
is beneficial in the long run
Overview
Swiggy is a brand that has evolved amidst the
beginning of the new business model of the food
aggregator business. The idea behind the evolution of
such a business is to provide for a viable solution for
food ordering and delivering which covers restaurants
in the vicinity and urban food sellers. Such a business
thrives on efficiency and swiftness of delivery.
Since its recent emergence, the business model has
had low entry barriers but is impeded by heavy
competition. New competition threatens the market
share of the existing businesses and further cutting the
low margin on which the other businesses are
dependent for survival and profit. The pressure in the
market is evident from the sharp increase in the
number of apps used for food ordering and delivery
from 2013-16. A report suggests that about 400 apps
are available to customers for ordering food online.
Conclusion
With the onset of 2020, Swiggy is looking forward to
positive development. Recent news reveals that Swiggy
has surpassed its target of delivering 360 million orders
to 500 million orders this year. Presently, Swiggy has a
presence in more than 500 cities in pan India with 1.4
lakh restaurant partners and a fleet of 2.1 lakh delivery
partners. The tech-food startup plans to set in place a
network of thousands of kitchen locations called
“pods”, which will have 8-10 food brands. This will
direct 99 percent of customers to Swiggy within 10
minutes. The company wants to capitalize on foreign
markets where 70-80% of food is ordered by delivery.
In all, Swiggy has aggressive expansion and growth
opportunities in store for the next couple of years.
Contribution of group
members
1. Aastha Raisurana: 207302
Competition and overall analysis
Reference: https://medium.com/@nikhilborkar/competitive-analysis-of-the-indian-
food-delivery-industry-zomato-swiggy-ubereats-and-foodpanda-30bd99faece8
https://www.dnaindia.com/analysis/report-swiggy-vs-zomato-battle-of-india-s-biggest-
food-aggregator-2820924
https://krishikosh.egranth.ac.in/handle/1/5810133910
https://yourstory.com/2019/12/looking-ahead-2020-zomato-swiggy-startups-foodtech
https://www.thehindubusinessline.com/info-tech/swiggy-surpasses-2020-target-delivers-
over-500-million-orders-a-year/article29743508.ece
https://www.owler.com/company/swiggy
3. Ananta soni:207305
Challenges
Reference: https://economictimes.indiatimes.com/small-
biz/startups/newsbuzz/the-challenges-of-delivering-orders-in-the-times-of-
coronavirus/articleshow/74630908.cms
https://www.adgully.com/swiggy-is-most-popular-food-ordering-app-but-some-issues-
need-ironing-out-85726.html
https://brandequity.economictimes.indiatimes.com/news/business-of-brands/the-
backstory-of-indias-fastest-unicorn-swiggy/65361972
4. Gauri Vyas
Function/business model
Article from cdacmohali-
https://cdacmohali.in/swiggy-business-model/
Research paper on online food delivering-
https://www.researchgate.net/publication/341109906_POPULARITY_OF_ONLINE_FOOD_O
RDERING_AND_DELIVERY_SERVICES-
A_COMPARATIVE_STUDY_BETWEEN_ZOMATO_SWIGGY_AND_UBER_EATS_IN_LUDHIANA
Images-
Swiggy
Quint
5. Sanjana Sodagar
Introduction of Swiggy
Reference: https://mail-attachment.googleusercontent.com/attachment/u/0/?
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6. Vasu Mathur
SWOT Analysis
http://marketing91.com/