Project On Zomato

PROJECT ON
BUSINESS OPPORTUNITIES OF ONLINE FOOD REVIEW
WEBSITE IN BANGLADESH
A comprehensive study
on
Submitted To:
Mr. Rahul Datta
Senior Trainer – Digital Marketing
LICT Project, Govt. Of Bangladesh
For partial fulfillment of Digital Marketing Certification Under
Foundation Skills Training
University Name: University of Chittagong

Project on
“BUSINESS OPPORTUNITIES OF ONLINE FOOD REVIEW WEBSITE IN
BANGLADESH- “A comprehensive study on ZOMATO”
Project Submitted to Bangladesh Computer Council for partial fulfillment of Digital

Marketing Certification under Foundation Skills Training
University Name: University of Chittagong
1. Name of the Student: Syeda Mansura Khatoon

University Registration Number: 12304114
Session Year: 2011-12
2. Name of the Student: Ferdous Kowser
3. Name of the Student: Ummay Lamisa
4. Name of the Student: Tahmina Sultana
Name and Address of the Guide:

Mr. Rahul Datta
LICT Project, Govt. of Bangladesh
STUDENT DECLARATION
I, Syeda Mansura Khatoon, University Registration number 12304114, do hereby declare that
the Project Report entitled “BUSINESS OPPORTUNITIES OF ONLINE FOOD REVIEW
WEBSITE IN BANGLADESH- A comprehensive study on ZOMATO”, has been co-
prepared by me as a part of a team, under the avid guidance and supervision of Mr. Rahul Datta,
Senior Trainer, of LICT Project, Govt. of Bangladesh as the partial fulfillment of the
requirement for the Digital Marketing Certification, under the course curriculum of LICT,
Foundation Skills training, Govt. of Bangladesh.
The information given in this Project Report is true, complete and correct to the best of my
knowledge and belief. It is my original work and not submitted for award of any other diploma /
fellowship or similar titles or prizes.
Signature of the Student

Place:
Date: ---------------------------------
(SYEDA MANSURA KHATOON)
CERTIFICATE OF GUIDANCE
This is to certify that Syeda Mansura Khatoon, University Registration number 12304114 has
carried out this project report entitled “BUSINESS OPPORTUNITIES OF ONLINE FOOD
REVIEW WEBSITE IN BANGLADESH- A comprehensive study on ZOMATO” as a
partial fulfillment of the requirement for the Digital Marketing Certification, under the course
curriculum of LICT, Foundation Skills training, Govt. of Bangladesh.
She has carried out the above Project work as a part of a team under my guidance and
successfully completed it. A lot of relevant information has been suggested by me and has been
used to complete it. Regarding primary data went through a study of this subject matter and
collection of different data required for the preparation of the Project Report from different
personalities.
It is to certify that the report presented embodies the original work of my student/s. I hereby
forward this Project Report for further evaluation.
Place:
Date : ---------------------------
(Mr. Rahul Datta)
Place:
Date : -------------------------
(Sagib Kumar Ghosh)
Chairman: Department of Marketing
University of Chittagong
STUDENT DECLARATION
I, Ferdous Kowser, University Registration number 12304034, do hereby declare that the
Project Report entitled “BUSINESS OPPORTUNITIES OF ONLINE FOOD REVIEW

Place:
Date: ---------------------------------
(FERDOUS KOWSER)
This is to certify that Ferdous Kowser, University Registration number 12304034 has carried
out this project report entitled “BUSINESS OPPORTUNITIES OF ONLINE FOOD
She has carried out the above Project work as a part of a team under my guidance and
personalities.
Place:
Date : ---------------------------
(Mr. Rahul Datta)
Place:
Date : -------------------------
( Sagib Kumar Ghosh)
STUDENT DECLARATION
I, Ummay Lamisa, University Registration number 12304043, do hereby declare that the Project
Report entitled “BUSINESS OPPORTUNITIES OF ONLINE FOOD REVIEW WEBSITE
IN BANGLADESH- A comprehensive study on ZOMATO”, has been co-prepared by me as
a part of a team, under the avid guidance and supervision of Mr. Rahul Datta, Senior Trainer,
of LICT Project, Govt. of Bangladesh as the partial fulfillment of the requirement for the Digital
Marketing Certification, under the course curriculum of LICT, Foundation Skills training, Govt.
of Bangladesh.

Place:
Date: ---------------------------------
(UMMAY LAMISA)
This is to certify that Ummay Lamisa, University Registration number 12304043has carried out
this project report entitled “BUSINESS OPPORTUNITIES OF ONLINE FOOD REVIEW
WEBSITE IN BANGLADESH- A comprehensive study on ZOMATO” as a partial
fulfillment of the requirement for the Digital Marketing Certification, under the course
He/she has carried out the above Project work as a part of a team under my guidance and
personalities.
Place:
Date : ---------------------------
(Mr. Rahul Datta)
Place:
Date : ------------------------
(Sagib Kumar Ghosh )
STUDENT DECLARATION
I, Tahmina Sultana, University Registration number 12304047, do hereby declare that the
Project Report entitled “BUSINESS OPPORTUNITIES OF ONLINE FOOD REVIEW

Place:
Date: ---------------------------------
(Tahmina Sultana)
This is to certify that Tahmina Sultana, University Registration number 12304047 has carried
out this project report entitled “BUSINESS OPPORTUNITIES OF ONLINE FOOD
He/she has carried out the above Project work as a part of a team under my guidance and
personalities.
Place:
Date : ---------------------------
(Mr. Rahul Datta)
Place:
Date : -------------------------
(Sagib Kumar Ghosh )
Preface
As a part of “Digital marketing” course under LICT program and in order to gain practical
knowledge in the field of online business ,we are required to make a project report on Business
opportunities of online food review website in Bangladesh- “A comprehensive study on
ZOMATO”. The basic objective behind doing this project report is to get knowledge about the
online businesses and the opportunities for Bangladesh.
For preparing the project report, we have visited some restaurants, to avail the necessary
information.
The whole project has been divided into two parts. The first part is for the investors of
Bangladesh and the second part is for the foreign investors.
In the first part we show the Business timeline and business model of ZOMATO. In the second
part we shows the opportunity for ZOMATO doing business in Bangladesh and the SOWT and
PESTEL analysis of it and the strategic implementation and competitor analysis for ZOMATO.
The whole project is measured through the questionnaire. The data further analyzed and
interpreted and the result was obtained.
The information presented in this project report is obtained from sources like company
personnel, company website, other websites, company reports and other literature.
The successful completion of this project was a unique experience for us because by visiting
many place and interacting with many persons we achieved knowledge and experiences which
was essential at this turning point of our career. The research provides us an opportunity to
devote our skills, knowledge and opportunities required during the technical session.
TABLE of CONTENT
No Topic Page
No
1. Executive Summery
2. Business Timeline
2.1 Business Growth
2.2 Financial Growth
2.3 Revenue Growth
Part – 01
For 2.4 Employee Growth
Investors of 2.5 Global Expansion
Bangladesh 2.6 Customer Acquisition
2.7 SOWT analysis of Zomato
3. Business Model
3.1 Operational Model
3.2 Revenue Model
3.3 Financial Model
3.3.1 Fund Raising
3.3.2 Fund Allocation and Acquisition
3.3.3 Shareholding Pattern
3.4 Technological Model
3.5 Payment Model
3.6 Marketing Model
3.7 Logistics
1 Executive Summery
2 Business Opportunities In Bangladesh
2.1 Investment Guideline
2.1.1 Information Searching
2.1.2 Physical Verification
2.1.3 Getting Structured
2.2 Government Support
2.2.1 Government Support in food processing
Part – 02 2.2.2 Government Effort in E-Commerce
For Foreign 2.3 Industry Specific Law
Investors 2.3.1 Laws regarding Food Industry
2.3.2 Laws regarding E- Commerce
2.4 Socio-Economic Condition of food Industry in
Bangladesh
2.5 An overview of Bangladesh Food Processing
Sector
3 PESTEL Analysis
4 SOWT Analysis
5 Strategic implementation
5.1 Development
5.1.1 Location
5.1.2 Technology
5.1.3 Utilities
5.2 Operation
5.3 Banking and sources of Finance
5.4 Costing
5.5 Marketing
5.5.1 Market Segmentation
5.5.2 Pricing Strategy
5.5.3 Marketing Programs for Promotion
5.6 Strategic Alliances
6 Competitors Analysis
7 Marketing Forecast
7.1 Quantitative Analysis
7.2 Qualitative Analysis
8. Final Recommendation
Annexure 9. Questionnaire
10. References
।Part 01। For Investor of Bangladesh
PART – ONE
For Investor of Bangladesh
1
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Over 2000 passionate and
strong ZOMANS in
23countries representing 32
nationalities and become a
more attractive Employer.
1. Executive Summary:
“ZOMATO- Never have a bad meal”
ZOMATO is India’s largest and most successful startup company where food industry meets
technology and connects thousands of restaurant with one thread.
Listed with more than 1.5 millions

restaurants in 23 countries and still
counting..
Tripled the revenue within a fiscal year by

acquiring companies and connected
millions of customers and more than 10000
restaurants. Tied up with Paytm, Uber,
FoodBloggers, Mobiwiki, and
Delhivery&Freecharge.
2
“ZOMATO- Never have a bad meal”
ZOMATO is the brainchild of Mr. Deepinder Goyal and Pankaj Chadda who were colleagues in
‘Bain And Company’. The idea to start ZOMATO came from the demand for menu cards to
order food among their colleagues. Mr. Deepinder Goyal and Pankaj Chadda initially started a
database for food menu named “Foodiebay” in 2008 which soon had gone live with menus of
1200 restaurants in Delhi NCR (INDIA) by July 2008. Later the name was changed into
ZOMATO (to avoid any legal implication as the name Foodiebay has Ebay annexed with it) in
November 2010 which is now the largest restaurant detecting platform in India listed with more
than 4200 restaurant across 12 cities in the country. And internationally it has lists of about 1.4
million restaurant across 10,000 cities in and at present it operates in 23 countries, including
India, Australia and the United States. ZOMATO got its first funding of $1 million from Info
Edge and it’s also ZOMATO’s largest shareholder. ZOMATO has over 2000 passionate Zomans
strong across 23 countries, and this number is increasing day by day. ZOMATO is widely used
by internet users who want information for dining and delivery options. ZOMATO is capturing
customers by providing all the information a customer can need before going to a restaurant or
ordering foods online. ZOMATO is following affiliate marketing model with website and mobile
apps. Customers who are ordering foods online can pay through debit cards, credit cards and net
banking. ZOMATO has also partnered with Paytm, PayPal, and Freecharge to enable online
payments. For marketing purpose, ZOMATO’s key strategy is it’s friendly website with up-to-
date information of the restaurants. It also has a global mobile application from where it gets
more than 50% of its total traffic. ZOMATO has partnered with Delhivery and has invested in
Pickingo and Grab to quick up its delivery process.
ZOMATO at a glance
Key Activities Value Customer Key

 Provide local  One-stop shop  Users who try to Partners
restaurants for dines and find local
and hotel offers restaurants of  Uber Taxi
search restaurants a various cuisines.  Paytm
services. way to  Restaurants who  Mobiwiki
 Collect data differentiate want their name  Delhivery
on food them. to reach targeted  Freecharge
menus,  Bridges the gap audiences.
contacts and between  Customer
relevant customers and preferring home
information to restaurants by delivery.
users. efficient  Database
 technology companies.
Key Resources which reduces  Market research
 Large delivery time. companies.
database of  Rating based
restaurants pricing model
across cities. for foods.
 Presence
across 23
countries.
Revenue streams Channels Customer

relationship
 Advertising  Mobile Online service
 Ticket sales Application build in mandatory
 Consulting  Internet rating system
2. Business model:
ZOMATO provides information of all restaurants about their food menu, detailed analysis of
restaurant, its branches and locations, service hours and reviews & comments from other user’s
who have already experience of having food on respective restaurant. The business model of
ZOMATO is affiliate marketing model which work with website and mobile apps. The website
enables user to search for food in different ways. Such as by name of food, general search in a
specific location, search for available restaurant open in particular time of a day and even they
can find out if the restaurant has a bar, buffet ,live music, happy hours and other services. This is
a great platform for people who love to eat and very choosy in terms of choice of food.
Charge of Provide all information

Advertisement about restaurants and
food.
Space to advertise and Download mobile app,

access to a widerange give reviews, share photos
ofcustomer. and experience.
Figure: Business model of ZOMATO

Products of ZOMATO:
1.Advertisement/ Banner ads – Advertise on ZOMATO.
2.ZOMATO for business app:

ZOMATO's app for restaurant businesses – puts the power in the hands of the business owner.
With an easy-to-use interface and powerful features it helps a business get the most out of
ZOMATO. Business can connect and engage with their patrons by replying to their reviews, and
keep them coming back.
3.ZOMATO base – ZOMATO Base is a cloud-based POS system to help you manage your
restaurant operations from a single platform
4.ZOMATO book – Table & reservation management.
5.ZOMATO order – Online ordering.
6.ZOMATOwhitelable – Custom apps for restaurant.
Search & discovery services don’t charge for listing an entity with them.
2.1 Operational Model:
The main reason behind the success of ZOMATO was the listing of 1.4 million restaurants
across 10,000 cities & 22 countries with an exclusive/extensive range of food menus/customizes
food menus and up to date information about restaurants. The incarnation of smart phones &
internet penetration plays the leading role in its success. The business model & and the
operation of ZOMATO is very unique & creative. Sustainable price of the products & expansion
of operation in a calibrated (standardized manner) has put ZOMATO the Global Map. It
rebranded its logo to go beyond cultures. Geographic boundaries & languages.
User Restaurants
(User Views restaurant) Restaurants pay ZOMATO
Figure: SOP Model

2.2 Revenue Model :
Revenue Model Advertising

5%
5%
Event Advertising
11% Commission from event

ticket Sale
5%
Consultaion fee
74%
Food Delivery
According to Deepinder Goyal, ZOMATO has four revenue streams :
1. Restaurant advertising : Banner ads of restaurant on the website accounts for 70% of
ZOMATO’s revenue.
2. Event advertising: When specific events promote an event on ZOMATO and it comes
from restaurant based advertiser. It accounts for 5% of their revenue.
3. Event ticket sale: Commission of ticket sale through ZOMATO, primarily for restaurant
venues accounts for 15% of revenue.
4. Consulting service: Account for 5% of revenue.
5. Food order commission: New addition of ZOMATO which account for 5% of revenue.
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2.3Financial Model:
2.3.1 Fund Raising:

ZOMATO’s business model is based on acquiring funds. In order to achieve its goal to hit the
billion dollars plus valuation, ZOMATO has raised a total of $225 million in eight rounds
Of funding since its launch in 2008.Its five rounds of funding have been as follows:


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T ।Part 01। For Investor of Bangladesh
2.3.2Fund allocation and utilization:
As an online company it uses its fund strategically on technological development to

ensure a strong and smooth network through website and mobile app.
It also focuses on building strong, energetic talented Zomans to create an unmatched
network for information flow.
Mostly they use these funds to strengthen its aggressive International rollout and invest in
newer segments like online food delivery and cashlesspayments among others. It's worth
noting that ZOMATO had spent most of its $60 million funding on the UrbanSpoon
acquisition, which it had acquired for $52 million.
In February2015, ZOMATO allocated $50 million (Rs 300 crore) to launch an online
food ordering business, taking on existing players like FoodPanda and TinyOwl among
others.
ZOMATO spent Rs. 76 lakh on the delivery of food orders in FY 2016.
It also spent Rs.44.1 crore on advertising and sales promotion in FY 2016 which is
double of Rs.22.3 crore from previous year.
A glimpse of fund allocation and utilization is given below:
2.3.3 Shareholding Pattern (as on November 2015) :
Info Edge (India) Limited is the largest

shareholder in ZOMATO with 45.3%. The founders own 19.92% shares in the company. The
shareholding pattern is as below:
Shareholders %age Shares Held

Founders 19.92 %
Info Edge (India) 45.30 %
Sequoia Capital 17.02 %
Naukri Internet Services 4.80 %
VY Investments 3.6 %
Others 9.36 %
% sheres held
9%
4% 20%
Founders
5%
Info Edge (India)
Sequoia Capital
Naukri Internet Services

17%
VY Investments
Others
45%
Source: http://www.iamwire.com/author/tofler
3.3 Technological Model:

As ZOMATO is India’s best online restaurant discovery guide it use Superior technology in the
form of :
 Featured and user friendly website.

 Global personalized Mobile app.
 Digital marketing channels .
 Business app for table management, POS system, online ordering.
 ZOMATO app review:

• ZOMATO, the popular online and mobile restaurant guide, has iOS app,
Anroid app completely overhauling the user interface and has added new
features.
• They have more than 5 million download of their app.
• More than 50 percentage of access to ZOMATO has been through mobile
platform and seems to be a perfect strategy in a country with increasing
GPS enabled-smart phones like India
• The ZOMATO app offers a much simpler user interface, in line with the
redesign of the ZOMATO website, with the home screen offering large
swappable images of nearby restaurants that lead to their respective listings, in
addition to options to browse restaurants and search for them by entering
keywords for name, location, cuisine or dish.
• The Browse Restaurants option takes one to a menu that offers mood-based
recommendations. So, one can select if you're looking to get food home
delivered, going out for a meal, going out for drinks or just catching up with
friends. Selecting the location is the next step, following which, the app offers
a list of restaurants that match the criteria.
• There's a separate screen for location based restaurants search through which
one can sort restaurants based on the distance from one’s current location.
One can apply additional filters such as ratings, whether the restaurant is open
at the time of the search, cuisine, budget and other aspects.
• There's also a 'Featured Content' section that offers lists such as top 25
restaurants, foodie leader board (for regular users), and featured reviews,
among other content.
• Users can also post pictures for restaurants they've visited in case they just
want to post picture reviews. Pictures can be posted through the restaurant's
listing page or through a section within the app that allows users to upload
reviews and pictures of restaurants.
• Users can also add restaurants to their Wish list or mark them as 'been there'
and favorites from their respective listings page.
• For the uninitiated, ZOMATO provides information such as scanned menus,
mapped coordinates, pictures, ratings, contact details and user reviews for
restaurants across a number of locations in India, New Zealand, UK, South
Africa, Philippines, and Dubai.
• The app is available in the App Store and Google play store.
 ZOMATO Business App:

1. .ZOMATO for business app:
ZOMATO's app for restaurant businesses – puts the power in the hands of the business
owner. With an easy-to-use interface and powerful features it helps a business get the
most out of ZOMATO. Business can connect and engage with their patrons by replying
to their reviews, and keep them coming back.
2. ZOMATO base – ZOMATO Base is a cloud-based POS system to help
you manage your restaurant operations from a single platform
3. ZOMATO book – Table & reservation management.
4. ZOMATO order – Online ordering.

5. ZOMATO whitelable – Custom apps for restaurant.
Search & discovery services don’t charge for listing an entity with them.
3.4 Payment Model:
 ZOMATO has introduced online payments for ordering food in select restaurants in

India. The latest version of the iOS and Android application allows users to pay for
their orders through debit cards, credit cards and net banking.
 In addition, it has partnered with PayPal to enable online payments.
 Users can either scan their card details or enter them manually.
 The company also introduced ZOMATO Credits where users can get referral points
and refunds.
 It also launched ZOMATO Order, a separate app for ordering food. In app & online
payment options do not show up on it as yet.
 This is along the lines of the company’s expansion and intentions
internationally. Dubai was the first city to receive its ‘Pay with
Cashless‘system. This online payment product allows a user to open a tab by visiting
the Cashless integrated restaurant’s page on the ZOMATO app and tapping on ‘Pay
with ZOMATO Cashless’.
 ZOMATO also has also partnered with Paytm on September 2015. This would let
users pay for their online orders using the Paytm Wallet, in addition to the existing
payment options of credit/ debit cards, net banking, and cash on delivery. Paytm's
Wallet is the first mobile wallet to be integrated into ZOMATO. Through this
customer would experience smooth, seamless payment.
 Recently Mobikwik also integrated with ZOMATO.
 In August 2016, Freecharge, India’s fastest growing digital payments
platform, has partnered with restaurant search and discovery platform ZOMATO
to offer swift and secure digital payment option to food lovers.
 Customers across 10 cities can now seamlessly pay for their Online Food orders, in
less than 10 seconds using the Freecharge digital wallet - across all the platforms on
ZOMATO. Through this partnership Freecharge will enable thousands of
consumers who place an average of 32,000 orders a day, across over 11,000
restaurants on ZOMATO, to adopt digital wallet.
3.5 Marketing Model:

The key factor for ZOMATO is its marketing strategy and its featured & user friendly website.
They also have a Global mobile application for Google Android operating system, Windows
phone, IOS and Blackberry devices as people using smart phones are increasing day by day and
people are more likely to do the search from their mobile.
 Marketing tools:
I. Online Tools: Search Engine Optimization (SEO), Search Engine Marketing (SEM).
II. Offline Tools: Attractive, colorful and good Quality pamphlets, Word of mouth, OOH,
B2B Marketing, Press etc.
III. Broadcasting Tool: Occasionally use TV advertising during high activity period like
DIWALI, NEW YEAR & other festivals.
IV. Social Media: ZOMATO uses different platforms to engage user with them.As on
August, 2016 -
a) ZOMATO has more than 600k strong Facebook community.
b) 1288337 likes on Facebook.
c) 309k Followers in Twitter.
d) ZOMATO use blog as a mouthpiece to share & update all latest Updates.
e) Share the food experience with 457 followers in Pinterest with great content to
attract customers.
f) Share foodie photographs in Instagram by using #ZOMATO and it has 39.9 k
followers.
V. Direct Marketing:
a) SMS: 6 sms per day for one month to 6 lakh unique customer at first stage.
b) Direct Mail: Effectively reached corporate in bulk & professional employees
which are primary target.
c) Sales Promotion: Coupon and price offers.
d) Simple review and rating systems
e) Print Media: City Bank ZOMATO restaurant guide 2012.
VI. Cross tie-up: Uber, City Bank.

VII. Collaborations:
 Paytm
 Uber
 Food Bloggers
 Mobiwik
 Delhivery
 Freecharge.
 Restaurants
Online Offline Social Media Direct Marketing
SEO Pamphlets Facebook SMS

SEM Word of mouth Twitter Direct Mail
OOH Pinterest
B2B Advertising Instagram
Press Blog
Figure: Table of Marketing Tool

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3.6 SOWT Analysis of ZOMATO:
3. Business Timeline :
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3.1 Business Growth:
3.2 Financial growth:

2011
2012
ZOMATO has been through a significant growth in the way of their journey of being India‘s best
start up company and Global best restaurants discovery platform.
2013-
15
2016
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3.3 Revenue Growth:
ZOMATO Media Private Limited, the owner company of ZOMATO, has filed its latest revenue
figures with the Registrar of Companies. It has reported revenue of Rs. 95 crores in FY 2014-
15. This is more than 2.5 times the previous year’s revenue of INR 36 crores. Out of the reported
revenue of Rs. 95 crores in FY 2014-15, Rs. 78 crores has been reported as ‘Revenue from
advertisements ‘. Remaining Rs. 16 crores is reported to be from other sources, these include
Rs. 14.7 crores from ‘Net gain on sale current investment’ and Rs. 1.4 crores from bank deposits.
The company incurred expenses of Rs. 166 crores in FY 2014-15, thus making a loss of Rs. 72
crores as compared to a loss of INR 37 crores in the previous fiscal.
3.4 Employee growth:

INR Crores
100
80
60
40
20
0
-20
-40
-60
-80
FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15
ZOMATO has over 2000 passionate Zomans strong across 23 countries, and they are growing by
the day. At last count, the team represents 32 nationalities ,and speaks twice as many languages.
Employee Growth Chart

3500
3000
2500
2000 No of Employee
1500
1000
500
0
2008 2009 2014 2015 2016
3.5 Global Expansion:
ZOMATO has acquired nine companies since July 2014 in countries as far apart as in Czech
Republic Turkey and US.A glimpse of its acquisition is given below:
3.6 Customer Acquisition:

ZOMATO.com is largely used by internet –savvy people with high disposable incomes who look
for dining or delivery options. A significant number of their visitors are from corporate sector-a
lot of people use the website to order in food at work. Their server statistics show that ZOMATO
receives maximum traffic just before lunch or dinner time, confirming the fact that the website
caters to a highly targeted audience.
For acquiring customer, along with some macro-level indicators, they do on ground research
across several metrics like data collection, merchant, partnerships, user engagement etc. before
entering a new market. For example Colombo had fit in into the expansion plans, as it required
limited product customization for local market, allowing ZOMATO to replicate their business
model seamlessly.
ZOMATO is a revolutionary online restaurant guide, which brings million of customers and tens
of thousands of restaurant businesses together. what makes them better than others is that they
have all the information needed for a customer to decide their next place to eat-out or order in
from-i.e. menus, photos ,maps, reviews, contact information and restaurant features.
PART –TWO
For Foreign Direct Investment (FDI)
1.Executive Summary
“Bangladesh: Next rising star in South Asia for foreign investment”
Bangladesh has proved to be an attractive investment location with its 160 million populations
and consistent economic growth for a decade leading to strong and growing domestic demand.
The economy of Bangladesh is currently $180 billion which according to IMF will rise to $322
billion by 2021 creating enormous economic opportunities.
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Food Safety Act 2013
No Specific laws
regarding E-commerce.
।Part 02।For Foreign Investors
Government support
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Tax holiday
Relaxed FDI norms.
Private Public
Partnership Model
Fast Track Approvals
of Citizenship
Permanent Residency
Quick Immigration
Skilled work Permits
NRB Preferences
If ZOMATO wants to start its business in Bangladesh, it needs to follow some investment
guidelines. Bangladesh government is always encouraging and attracting foreign investors to
invest here and for this purpose, the state government is willing to offer a number of incentives
to the investors. Apart from these, government has also taken initiatives such as lowering of
VAT rates to promote the industry. To promote e-commerce in Bangladesh, government has
taken several steps including manufacturing optical fiber network, mobile banking, 3G based
telecom network and has established laws for transactions over electronic media. Bangladesh
National Parliament has enforced the Food Safety act, 2013 on October 10, 2013 to ensure the
people’s right toward access to safe food. At present in Bangladesh, the demand for food
products is increasing and people are encouraging more for eat outs. And for this many foreign
and local restaurants have entered in Bangladesh and added different types of menus and
cuisines. B2C websites such as HungryNaki and FoodPanda have become very popular as online
food deliver network not only among youths but also in all ages of people.
So finally we can say that Bangladesh is a winning combination of competitive market, business-
friendly environment and competitive cost structure.
2.Business opportunities in Bangladesh:

2.1 Investment Guideline:
To set up a business in Bangladesh whether is local, join venture or 100% foreign follows a very
simplified process. The entire process could be divided into 5 (five) major steps which is
presented in the following diagram. BOI supports are available in Step 1 through 4.
2.1.1 Info Searching:
Once an investor decides to conduct business in Bangladesh, the first

thing is to have relevant, sufficient and reliable information regarding
 investment and business climate, opportunity
 Competitive strengths,
 Industry structure etc. of the country.
Investors can collect this information from different agencies like:
o BOI
o GOB Agencies Ministries :
o FBCCI , FICCI , ICC , DCCI , MCCI , BCI, CCCI and other regional
chambers.
o Business associations
o UN bodies like World Bank, UNCTAD, UNDP, WTO, IFC, MIGA, Foreign
Investment Advisory Service (FIAS), etc. and other international
organizations could be reliable sources.
o Independent business consulting firms and consultants provideprofessional

services and assistance .
2.1.2 Physical Verification:
On the basis analysis of the information which has been collected and initial decision to
approach for the business, the investor needs to visit Bangladesh to have physical verification.
He could either visit independently or ask BOI to arrange the visit. However, to make the visit
more worthy and effective, BOI recommends the investor to contact and avail BOI Welcome
Service at Hazrat Shahjalal International Airport, Dhaka.
2.1.3 Getting Structured:
 Selecting a Business Structure:

To know the appropriate procedures for
doing business in Bangladesh, it is important to select the type of business operation. These
could either be:
a. Establishing Industrial Projects/Factories/Plants etc.
b. Operating as a Branch or Liaison or Representative Office.
 Incorporating a Company:
Business in Bangladesh may be conducted
by a company formed and incorporated locally or by a company incorporated abroad but
registered in Bangladesh. The incorporation or registration is done by the Registrar of Joint
Stock Companies and Firms (RJSC&F), under the provisions of the Companies Act 1994.
 Incorporation options for Foreign investors:

Incorporation options to a foreign investor include:
 Setting up a 100% foreign-owned company in Bangladesh
 Setting up a Joint Venture with Bangladeshi company / investor
 Establishing the Company’s Place of Business in Bangladesh
 Setting up a branch or a subsidiary of a foreign company in Bangladesh
 Setting up a Bangladeshi Company or participate in a Bangladeshi Company already
formed.
2.1.4 Company Formation Procedure:

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Step-1: Name Clearance:
on the Memorandum of Association.
Step-3: Submission of required Documents:

The company must select a unique name. RJSC provides name

clearance for one of the proposed names on satisfaction that it does not closely match or
resembles with any of the names that have already been taken. The status of the application can
be checked online and is usually accepted or rejected within one working day. If accepted, the
company name is reserved for six months. A print out of the name clearance certificate must be
submitted to the RJSC, along with the other required documents for incorporation.
Step-2: Payment of stamp fees:
Payment of adhesive stamp fees at a designated bank is needed.

This payment might be made to the mentioned bank accounts of the Treasury
For an authorized share capital of up to Tk1, 000,000, the total stamp duty fees are Tk2,500.
These include Tk 2,000 for affixing stamps on the Articles of Association, and Tk500 for stamps
To register a company, the following documents must be submitted to the registrar:
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Name clearance certificate
Memorandum and Articles of Association
Form I (Declaration on the registration of the company)
Form VI (Notice of the registered office)
Form IX (Consent to act as directors)
Form X (The list of persons consenting to act as directors)
Form XII (Particulars of the directors, managers, and managing agents)
 Proof of payment (i.e. receipt from the designated bank) for Treasury Stamps
 The registration fees payable at a designated banks
 For filing six documents (five filled in forms and the Memorandum and Articles of
Association, the fee is Tk200 per document): Tk1,200
 For an authorized share capital of up to Tk20, 000, the fee is Tk360.
 An additional fee of Tk180 is applicable for every Tk10,000 or part from the first
Tk20,000 up until Tk50,000
 An additional fee of Tk45 is applicable for every Tk10,000 or part from the first
Tk50,000 up until Tk1,000,000
Step-4: Getting Tax Identification Number:
For starting business operations, every company

must register for taxes at the appropriate taxation authority (Deputy Commission of Taxes of
Company Circle, Zonal Taxation Department) under the National Board of Revenue (NBR) and
obtain a tax identification number.
Step-5: Registration For VAT:
For the purposes of VAT , companies have to register with the

Customs, Excise, and VAT Commission under the National Board of Revenue. The company’s
VAT is regulated by the Customs, VAT and Excise Department of the region in which it
operates.
Step-6: Obtain a Trade License:
Companies have to collect a trade license from the city corporation. The proposed
company will have to file its application at the nearest city corporation office. Following
Documents must be provided for getting Trade License.
 A certified copy of the company’s articles and Memorandum of Association.
 A copy of certificate of Incorporation
 Company’s statement of bank solvency
 The company’s TIN certificate
 Three photographs
 Particulars of person in Charge of the main corporate functions.
Step-7: Contact RJSC offices:
There are four offices of RJSC in Bangladesh. The head office is

situated in Dhaka and three divisional offices are located in Chittagong, Khulna and Rajshahi.
2.2.1 Government Support in food processing :
Investment climate in Bangladesh is very attractive. One main goal of government is to attract
foreign investors and boost export.
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rates to promote the industry.
2.2.2 Government Effort in e commerce:

Apart from these, the state governments have also taken initiatives such as lowering of VAT
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Bangladesh is a small country and still we are third world people, but our government effort not
too much cheap for e-commerce. These are:
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2.3Industry Specific law:
2.3.1 Laws regarding food industry:
The Bangladesh National Parliament has passed the Food Safety Act, 2013 on October 10, 2013
(after repealing and re-enacting the existing outdated laws in this regards).
 Main purpose of this law is to make provisions for the establishment of an efficient,
effective, scientifically based Authority and for regulating, through coordination, the
activities relating to food production, import, processing, stockpiling, supplying,
marketing and sales .
 Furthermore this law is to ensure the people’s right toward access to safe food through
appropriate application of scientific processes and state of the art technology.
 The Bangladesh Food Safety Authority, which has been set up on February 2, 2015, is
committed to make a united start with its full strength and unstinting efforts.
 The Authority whole-heartedly welcomes the all out support of all food control agencies,
food business operators and people of the country towards the landmark goal of
establishing a Modern and Technological Food Safety System in Bangladesh to
contribute to the government’s Vision 2021.
2.3.2 Laws for E commerce in Bangladesh :
Bangladesh government has made some efforts in establishing a regulatory framework for
transactions over electronic media. A committee has been set up to draft cyber law about a year
back but no appreciable progress has been made. Though there are no specific legal frameworks
of international or national laws for e-commerce, additional laws have been enacted or are in the
process in many countries. Moreover, UNCITRAL in 1996 has adopted a model law on
electronic commerce and some of our neighboring countries like India have also enacted laws
recognizing evidence and validity of electronic signature and contracts. This can be used as a
basis for development of local laws and regulations. Absence of such laws does not provide
validity to transactions of e-commerce and as such are not likely to be used by business
organizations. The types of laws are divided into four categories:
 Laws on e-commerce,
 Laws on e-signature,
 Laws on personal data protection and
 Laws on electronic crimes. On the open of the Modern technologies, new challenges are
arising. One of them relates to the legal allegations of e-commerce.
2.4 Socio-Economic condition of food industry in Bangladesh :
Bangladesh has a rapidly growing consumer market. As the population of

Bangladesh is rising day by day, the demand for food products is always on the rise. The market
and the product range have grown significantly over the last decade and many foreign and local
companies have entered the food business which was otherwise not into this level of
diversification in the past.
 Food industry accounts for 22% of total manufactured products, 20% of total labor force
and 5% of total GDP – equal to around 4.48 bills USD.
 This sector employs a significant portion of the labor force in the country.
 Between 2004 and 2010, the food processing industry in Bangladesh grew at an average
7.7 percent per annum.
 The food industry employs 2.45 percent of the country's total labor force and its share in
the GDP was 2.01 percent in 2010.
 In 2010, Bangladesh exported over $700 million worth of processed food and beverages,
over 60 percent of them were shrimp and fish products.
 The major food processing sub-sectors in Bangladesh include dairy, edible oil, sugar,
rice, wheat, fruit and vegetable, tea, poultry/beef, pulses and spices and fish processing
industries.
2.5 Bangladesh Food Processing Sector an overview:
Within the industrial segments, the processed food industry in

Bangladesh represents one of the major potential sectors in terms of its contribution to value
addition and employment. The sector accounts for over 22% of all manufacturing production
and employs about 20% of labor forces. All food processing enterprises account for 2% of
the GDP. The food processing industry in the country is heterogeneous in nature displaying
greater diversity in size, technology, quality of products, processing, preserving and
marketing and distributions systems. The sector is primarily dominated by small and medium
enterprises with their strong linkage to the local production and high potential for processing,
value addition and export. There are nearly 700 processed food manufacturing enterprises in
the country including homemade processing units, of which, at least 30 enterprises are
processing fruits and vegetables. These include processing of bakery, confectionery, fruits
and vegetables, cereals, dairy, carbonated and non carbonated fruit juices, drinks, other
beverages and various other food items. Bangladesh itself with nearly 150 million
populations possesses a huge domestic market for processed food. It’s important has been
further multiplied due to its closer proximity to north eastern part of India with another over
70 million homogeneous people in terms of food habit and culture.
The annual turnover of food processing sector has been given below-
Food Sector Drinks
Dairy products
Processed food and vegetables

12% 4% 29%
3% Fish and seafood products
5% Prepared meals and dishes
Grain mill and strach products
6% Meat products
Chocolate and confectionery
12% Oils and fats

12% 4% 4% 6%
Prepared animal feeds
3%
Other food products
Bakery and farinaceous products
• B2C websites have also become very popular in Bangladesh as evidenced by the growth
and commercial success of online-based home delivery of food, such as HungryNaki and
FoodPanda. This has come as a panacea to citizens given the high levels of traffic in
areas.
• Hungrynaki
Hungrynaki Founded by Ahmad A D, Sazid Rahman, Rifat Nabi and Tausif Ahmad the
website first began operating from October, 2013. Hungrynaki started its journey with
just two developers, four executives and one delivery man, catering to the need of
Gulshan and Banani residents. But they kind of knew it was coming, because online
businesses are something which is still new in our country. But as they were growing, the
restaurant owners understand how it is helping them make more profit. Now Hungrynaki
has over 60 people working for them including delivery men, and operates in Dhaka,
Chittagong and Sylhet. In two years their annual turnover has been 1.2 billion taka.
• FoodPanda
Foodpanda Bangladesh started its journey in December 2013 and has

become the number one food ordering platform in a very short span of time. Its Co-
founder & MD are Ambareen Reza Cr &Zubair B.A. Siddiky .foodpanda is an online
food delivery portal that enables customers to order food from the best restaurants and get
it delivered to their homes. With an extensive roaster of 450+ restaurants available in 3
cities Dhaka, Chittagong, Shylet, foodpanda is a one-stop food delivery service for all.
FoodPanda is also available with the free App for Android and iOS devices. The App
offers great features such as the possibility of saving favorite restaurants and orders.
Furthermore, new customers can also read comments left by previous customers and find
discounts and promotional vouchers. Currently our head office is located in Banani
Dhaka and we also have offices in Chwak Bazar Joynagar Chittagong, Amberkhana
Ghurni Housing Shylet. All offices are rented on monthly basis.
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3.PESTEL Analysis:
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4. SOWT Analysis :
5.Strategic Implementation:
5.1 .Development:
5.1.1 Location:
Bangladesh is the fastest growing emerging market in the world. ZOMATO has a huge
potentiality in doing business in Bangladesh. For doing business in Bangladesh they will first
need a office to run their business.. For buying or renting an office space they can contact with
City Development Authorities or Real Estate Agents. Selecting business location is the foremost
task for any business to successful. In this regard ZOMATO can take few initiatives which are
given below:
• Dhaka is the capital city of Bangladesh which has more than 1 crore people living here.
And it is the center of many International and Multinational Company. Dhaka is located
by many local and international restaurants and hotels. Food business flourished here.
Furthermore Foodpanda ,Hungrynaki and many other online food delivery business has
their head office in Dhaka. So they can start a business here.
• In Old Dhaka they have reputation for many traditional food.It is also located by many
historical places.
• Chittagong is the port city of Bangladesh and heart of trade and commerce of
Bangladesh. It has also potentiality in online food review and delivery business.
• Other major cities like Cox’s Bazar, Rajshahi, Comilla, Shylet where many people go for
vacation on different tourist places. These location can be utilized by ZOMATO for
business expansion.
• Many consulting firm is providing help for any business related problems.
• BOI also giving support for FDI.
5.1.2 Technology:
The Government of Bangladesh has taken some important initiatives

to develop our IT sector. Still we are waiting to see a fruitful change in our Information
Technology. However, some remarkable steps of government are highlighted for information.
 IT has been declared as a thrust sector.

 Quick implementation of the recommendations of JRC report (a high powered committee
for software export).
 Waiving all taxes and duties from import of computer hardware and software.
 Hundred percent remittances of profit and capital gains for foreign investors without any
approval.
 BTTB's implementation of DDN service.
 Decision to link Bangladesh to global highway through submarine cable link by next two
years.
5.1.3 Utilities:
 For electricity support they have to write an application to Bangladesh Power

Development Board . They can also write to BOI where they have representative of
Power Development Board.
 For water supply they have to contact with WASA (Water Supply and Sewerage
Authority).
 For Gas connection they have to take permission from Titas Gas Authority who have
representative of Board of Investment.
 For connection of telephone, cable TV, voice over Internet protocol and Internet they
have to contact with BTCL (Bangladesh Telecommunications Company Limited).
5.2 Operation:
Human Resource Management:
 Human Resource is the main component for any business. Bangladesh has a huge
educated, unemployed youth force with the ability to read and write English.
 ZOMATO can take advantage of its immense manpower , programmers, IT
professionals.
 They can easily get candidates from BUET, CUET, RUET,IUT , DU, CU and many other
reputed universities.
 A work permit is for a foreign national is a prerequisite for employment in Bangladesh. If
they want to recruit foreign nationals they have to apply in advance to BOI using
prescribed form.
5.3Banking and sources of finance:

 In Bangladesh there are 1 central bank, 4 state- owned banks, over 40 Commercial banks
and 9 Foreign banks who are providing loan facility to business.
 Other than that Govt. has many initiative regarding this and many banks like Bangladesh
Shilpo Rin Shongstha has established for providing loans to businesses.
 Banks may extend working capital loan or term loan in local currency for foreign
controlled company.
 For borrowing from abroad in foreign currency a company will need approval of BOI and
Bangladesh Bank.
5.4 Costing:
As per ZOMATO’s model its overall costs will be involved into inventory, Utilities connections,
Website and app development for Bangladesh, Marketing and promotional activities.
5.5 Marketing:
At first ZOMATO have to analyze the market to understand the current market, potential market,
market segmentation, market needs, current market trends, industry and competitors, market
growth and strategy to develop service according to market needs and to deliver and build
profitable relationship.
5.5.1Market Segmentation:
In segmentation the whole market have to divide into different groups. Demographic and
geographic segmentation will be effective in this regard.
 Initially target market will be Dhaka metropolitan area and then Chittagong.
 The target group can be middle to high income range people with age group between 15
to 60 .
 The restaurants with wide variety of food will be in the lime light.
5.5.2Pricing Strategy:
To capture the market and to tie up with the restaurants ZOMATO should
follow market penetration strategy as the people of this region are relatively more price sensitive.
They can charge low to restaurant who will tie up with them. Other than that they can introduce
some discount packages online for food with the agreement of restaurants.
5.5.3Marketing Programs for promotion:

Various types of marketing programs can be undertaken by ZOMATO. Through these they will
be able to communicate with the customers effectively. They can take following steps:
 Organizing food fair where they can invite different restaurants to display their food and
can arrange for competition for restaurant where they will take part and the voting by
customer will choose a restaurant as a winner. ZOMATO will give them special
preference with some benefits. And through this fare ZOMATO will be able to categorize
the restaurants and making a preference list to approach for tying up.
 Advertisements – TV, Radio, Billboards, Print media etc. to let people know about our
services.
 Discounting coupons.
 For marketing purpose, our main focus should be Facebook and mobile marketing as the
people are greatly involve in Facebook and more youngs are using smartphone. Then
they can promote on G+, Pinterest, Instragam, LinkedIn and Twitter. We shall post
pictures on a regular basis, ask questions from customers, create conversations and have
fun.
 They shall update their website on a regular basis to ensure our data is fresh.
 They can distribute leaflets in front of the colleges and universities to inform people
about their services.
 They can advertise on movies before starting and also in the movie.
5.6 Strategic alliances:

ZOMATO can make strategic alliances with Bkash ,DBBL mobile banking, My cash etc. for
payment and can allied with different delivery service company like : Sundarban, Continental
courier service, S.A. Paribahan etc for delivering facilities.
Challenges in doing Business in Bangladesh:
 Poor concept of online marketing.

 Poor ICT education and Training.
 Conservative Cultural tradition.
 High cost on Internet usage.
 Lack of privacy policy.
 Feeble site development and maintenance.
 Political instability.
 Banking sector are not negotiable for electronic transactions.
 Internet coverage arena is limited.
 High cost of products or services comparing traditional market.
 Communication is haphazard over the country.
 Lack of trust on online business.
6.Competitor Analysis :
At present in Bangladesh there are 4 online food ordering system is available. They
are Foodpanda, Hungrynaki, Khanahero and newly launched hurricane. But among them the
most competitive players are Foodpanda and Hungrynaki.The others are not playing significant
role yet.So a brief competitor analysis on Foodpanda & Hungrynaki is given below:
Particulars Foodpanda Hungrynaki

About FoodPanda is an excellent HungryNaki.com is a 100%
globalonline food delivery Bangladeshi Online Food
system. Ordering & Delivering Service
Launched Lunched on November 19th, Launched in 2013

2013 in Bangladesh
Purpose Order food online Don’t want anybody to be
hungry
Interface Foodpanda has an HungryNaki has an
android/iOS app for their android/iOS app for their
service. service.
Easiness During sign-up, you have to During sign-up, you have to
enter more details on enter less details on
Foodpanda HungryNaki
Cart system Very well cart system. Trouble in cart system of
hungrynaki
Order address FoodPanda remembers your Hungrynaki doesn’t remember
previous order address your previous order address.
Advantage After ordering, they are After ordering, they are
extremely fast in placing a extremely fast in placing a
phonecall to you in order to phonecall to you in order to
guarantee your order. guarantee your order &
services extremely efficient and
useful.
Time of delivery FoodPanda decides to give HungryNaki gives a basic time
you an exact ETA (usually frame of one to one and a half
ranging around 55 minutes hours for long distance orders
instead of the 1 hour written
on their app – but that differs

for every order).
Delivery system FoodPanda has its own team HungryNaki depends on
of cyclists coming over to secondary service providers (a
deliver food to your house. courier service) for their part of
the deliver.
Delivery expense The maximum delivery The maximum delivery charge
charge is BDT 100, and is is BDT 100, and is usually
usually waived away from waived away from many
many restaurants provided restaurants provided that you
that you have a large order have a large order
Payment system You can pay as soon as you They support the following
get the food delivered. No payment methods
credit card is required to
order food, no advance
payment.
Partners Food delivery from 650+ It says a total of 750 restaurants

restaurants in Dhaka, are online across the three
Chittagong&Sylhet in cities, with approximately
58,000 registered users.
Bangladesh. Order from a
wide range of cuisines
ranging from fast food, pizza
to cake items
7.Marketing Forecast:
7.1Quantative Analysis: Graphical representations of some questionnaire for
customers are given below:
7.1.1 Summary of customer Survey:
We have collected response from 84 person from which 43.9% are male and rest are female and
the maximum age group is less than 25 from student group. We have found that most of the
people often visit restaurants in the evening time and some prefer to visit restaurants in the night
and noon time. Maximum people insisted on food quality in choosing any restaurants when we
asked about their preference. Beside this some prefer ambience, price and service quality of any
restaurants. In the survey, we got to know that high waiting time, high price and hygiene
problem are the main problem people face at enjoying food. We found that maximum people
prefer Bangladeshi, Mexican, Italian, and Indian food and very few people often try new
restaurants. It seems that, sometimes people give food reviews after having food. It is also seem
that, 78.6% are direct walk in customers and only 36.9% people order food online and maximum
of them order food through foodpanda and hungrynaki. They are neutral in satisfaction level.
Majority of people order snacks item from online and they set their budget around 250. We also
found on our survey that if restaurants near to them maximum are interested to order from there
and most of the people are interested to take the service of ZOMATO.
7.1.2 Summary of restaurants Survey:
Inour survey on many restaurants of Chittagong we found that number of order per day home
delivery is very low and below 50 and most of the customers are walk in customers. Maximum
restaurants are tied up with food ordering app and who are not, are interested to tie up and
majority of restaurants are tie up with foodpanda and hungrynaki. We also found that most of the
order restaurant owner gets from khulsi and Nasirabad area in Chittagong. The percentage of
order of the restaurant has increased upto 20%. In our survey we also found that the online
reviews and ratings affect their business in most of the cases and almost all restaurants brand
value has been enhanced since the association. We found that only 12.5% restaurant owner heard
about ZOMATO and if ZOMATO came in Bangladesh with some beneficial offer for them
maximum restaurant owner are interested to tie up because they want to expand their business in
future and are looking for a new online food portal.
VII.2 Qualitative analysis :
ZOMATO is basically an online food related guidebook. While doing business in Bangladesh
they can add a new specification to their business. They can add some new features which will
give them competitive advantage to be successful in doing business in Bangladesh.
 Categorized Restaurants in ZOMATO: In our market research we found that most of

the people prefer restaurants based on some features and quality like the ambience of
restaurants, quality of food, price, menus, Service and waiting time etc. So ZOMATO
should customize the restaurants based on the features people wanted. So that people can
find their desired restaurant on their preferences so easily.
 Customized Food Delivery: ZOMATO can add a specification which will allow users to
choose ingredients of their choice to make their own food by playing a cooking
game .The exact food will be delivered to the user and it will be from some specific
restaurants and for some specific food like burger, pizza, soup cake etc. For this
ZOMATO will be able to capture the interest of picky eaters. And restaurants which will
be a part of this specification, ZOMATO can give them discounts for such orders.
 Kids Meal: In recent times, the number of working women in Bangladesh has been
increased. They have limited time for family. Because of that, in Tiffin times their kids
are not getting hygiene meal. For this type of kids ZOMATO can offer healthy and light
meals for them by tying up with restaurants and convincing the school authority.
 Adding feature in App: ZOMATO doesn’t use customized app for each target market
which is troublesome for users. They should customize their website and app for each
targeted customer segment. Such as there are some people in our country who do not
understand English properly. For this reason, ZOMATO can add Bangla language feature
so that all people understand and get a chance to order meal from ZOMATO easily.
 Senior Citizen’s Meal: In our country, senior citizens are not willing to go to restaurants
for their various health issues. And for this they are not getting the essence of good meal.
So, ZOMATO is going to offer them 10% discounts on every meal.
 Delivery Tracking System: ZOMATO can allow customer to track their delivery. In this
system customer will be able to track the delivery man who is bringing food for him,
where he is and how much time he needs to wait. And customer can know about the
nearest restaurant from which he can order.
 Story Teller: They can add option where people can get chance to share their
experiences with ZOMATO in their website. After every month they select a winner
among those story tellers and will offer them a free meal. By this way, we will be able to
improve their service and offer the best to the customers.
 Award to Customer: They may award the valued customer on how many times they
order food through ZOMATO after certain time. This time will be 6 month. Those
customers whose no of orders is the highest will be awarded with a free meal.
 Customer Service: They can arrange their customer service for Bangladesh in Bangla
language which will help people to let ZOMATO know about their complains, demand
and recommendation. In this regard they can recruit people from Bangladesh and train
them.
8. Final recommendation:
ZOMATO, a very well known company in food delivery industry around world. Now a days, food
habits of Bangladeshi people are changing. They are very fond of testing different foods from
different countries. And to satisfy this hunger of the food lovers, there are many more restaurants
being established. In this case, ZOMATO may have very much profitable opportunity to establish
business in Bangladesh. As there is similarity of culture & economy between Bangladesh & India, it
may not face any problem to get coped up in here.
ZOMATO may only have three competitors named Foodpanda, Hungrynaki which is 100%
Bangladeshi & recently established Haricane in Bangladesh. They only provide orderd food to their
valued customer. But, along with this service, ZOMATO has very attractive & unique value added
services like reservation service, food review etc. With these value added services it may easily take
advantage on its competitors. And another competitive advantage for ZOMATO is its competitors
don’t have that much updated technology like ZOMATO.
Although very few people do order through online but the number is increasing day by day. Because
young generation are very techno freak as their target market. So it’s a huge opportunity for
ZOMATO to attract them easily.
In our survey, we have seen that many more restaurants have appreciated this type of online
food portal. They are very much interested for tying up with this as they will get international
standard service. So, ZOMATO has vast opportunity of investment in Bangladesh. They may
have to face very low level of risk. They can easily be a market leader with their sophisticated
technology & services.
With the operation of ZOMATO, restaurants business in Bangladesh will be more flourished which
will contribute in our GDP.
So in the end we may hope that if ZOMATO operates in our country, they may capture the
market easily and restaurant business will be more successful in Bangladesh.
Questionnaire for Customers
Dear Sir/Madam,
Please spare a few minutes of your valuable time to answer the questionnaire.
1. Personal profile:
Name: Phone:
Age: Email ID:
Occupation:
Please read each statement given below carefully and put a tick in the box which best reflects
your personal opinion
2. How often do you visit restaurants?
 Often
 Weekends
 Once in a month
 Never
3. What time of the day do you prefer to eat at restaurants?

 Morning
 Noon
 Evening
 Night
4. Which of the following factors you like more in any restaurants?

 Service
 Food Quality
 Ambience
 Menu
 Price
 Other ________
5. What is the main problem you faced at enjoying foods?
 Lack of information
 High waiting time
 Long queues
 Wrong order
 High price
49
 Hygiene problem
6. What type of cuisine do you mostly prefer to enjoy?
 Bangladeshi
 Thai
 Indian
 Italian
 Mexican
 Continental
 Chinese
7. How often do you try new restaurants?

 Very often
 Often
 Sometimes
 Never
8. How often do you give food reviews and ratings after enjoying food?
 Always
 Sometimes
 Never
9. How do you order your food?

 Direct call to restaurants
 Online portal
 Mobile Application
 Direct walk-in
10. Do you order food online?

 Yes
 No
11. If yes, From which company do you prefer?

 Foodpanda
 Hungrynaki
 Huricane
 Others
12. Are you satisfied with ordering online?
 Highly satisfied
 Satisfied
 Neutral
 Dissatisfied
 Highly Dissatisfied
13. Which meal you typically order from online?
 Breakfast
 Lunch
 Snacks
 Dinner
14. What is the approximately money you spend on ordering food per time?
 <150 Tk
 <250 Tk
 <500 Tk
 More than 500 Tk
15. What features in online food website attracts you most?

 Design of a website
 Discounts offered
 Food reviews and ratings
 Variety
 Value for money
 Any other ( please specify)_______________________________
16. What is the payment system you prefer for ordering food from online?
 Cash
 Bkash
 DBBL mobile Banking
 ATM Card
 Credit Card
17. What is the amount of money you would like to spend for delivery charge when
ordering food from online?
 Below 100
 100 -500
 500 -1000
 1000 above
18. If restaurants are located next to your house, would you like to order food from
there?
 Yes
 No
19. Do you hear about Zomato?

 Yes
 No
20. Are you interested in ordering food from Zomato?
 Yes
 No
Questionnaire for restaurants owners
Name of the Restaurant:
1. No. of orders per day for home delivery?
 Below 50
 50-100
 100-250
 250-500
 500 above
2. No. of walk in customer per day?

 Below 100
 100-250
 250-500
 500 above
3. Are you tied up with any of the food ordering app?

 Yes
 No
4. If no, Are you willing to tie up?

 Yes
 No
5. Which online application or online portal gives the maximum no. of orders?
 Food panda
 Hungrynaki
 Huricane
6. From which location you get the most no. of orders?
____________________________________
7. By what percentage has the no. of orders increased since the association/tie up?
 < 20%
 20% – 50%
 > 50%
8. What percentage of total revenue is generated through the online portals?
 < 20%
 20% - 50%
 > 50
9. Does the online reviews and ratings affect your business?
 Yes
 No
10. Has there been an enhancement in your brand value since the association?
 Yes
 No
11. Have you heard about Zomato?
 Yes
 No
12. If Zomato came in Bangladesh, are you willing to tie up with them?
 Yes
 No
13. How would you expand your business in the near future?
 Continue to associate with the current online portal.
 Look for a new online food portal.
 Develop your own website.
References:
1.http://www.edupristine.com/blog/zomato-acquires-food-portal-urbanspoon
2.http://techstory.in/zomato-story-the-facts-and-the-future /
3.http://www.medianama.com/2013/05/223-zomato-in-fy13-rs-11-38-crore-operating-revenues-
rs-10-crore-operating-ebitda-loss/
4.http://www.businessinsider.com/zomato-buys-urbanspoon-2015-1
5.http://economictimes.indiatimes.com/small-biz/startups/only-defensible-indian-unicorn-
revenue-doubled-in-last-9-months-zomato-ceo-deepinder-goyal/articleshow/52185556.cms
6.https://www.owler.com/iaApp/141362/zomato-company-profile?onBoardingComplete=true
7.http://archive.dhakatribune.com/business/2016/jan/31/e-commerce-bangladesh
8. http://www.bankinginvestment.net/article/434440700/an-insight-into-the-turnaround-strategy-
of-zomato-s-business-plan/
9.http://www.foodpro.com.bd/way-to-foodpro-bangladesh
10.https://sdasia.co/2014/12/08/foodpanda-bangladesh-turns-one-success-story
11. www.medianama.com/2015/07/223-zomato-online-payments/
12. techcircle.vccircle.com/2015/09/04/zomato-integrates-paytm-wallet-for-food-payments/
13.https://www.google.com.bd/amp/wap.business-standard.com/article-amp/companies/zomato-
launches-cashless-payment-option-in-dubai-115020300252_1.html
14. Bangladesh board of investment
15. https://en.wikipedia.org/wiki/Food_industry_in_Bangladesh
16. http://www.thedailystar.net/food-industry-in-bangladesh-6622
17. http://www.hortex.org/Employment%20and%20GDP_Agro-processed_171113.pdf
18. http://www.slideshare.net/Tanvir777/the-overall-economic-condition-of-bangladesh
19.http://www.tradingeconomics.com/bangladesh/gdp-growth
20.https://prezi.com/md_q1hcyvrub/an-insight-into-zomatos-marketing-strategy/
21.http://www.slideshare.net/sahiljain7169/summer-internship-project-report-on-online-food-
app-tinyowl
22.http://dsim.in/blog/2015/04/14/zomato-an-indian-startup-acquiring-the-world/
23.http://www.digitalvidya.com/blog/zomato-successfully-leveraged-digital-marketing-to-
generate-funding/
24.http://www.slideshare.net/vgandhi86/zomato-case-study-v10-20-72015
25.https://www.socialsamosa.com/2012/07/zomatos-social-media-strategy-explained-interview/
26. Bangladesch-doing-business-in-bangladesh-2008
27. Bangladesh Next rising star in South Asia for foreign investment _ Arab News
28. A review of FoodPanda and HungryNaki – Bangladesh’s First Online Food Delivery
Services! _ UNaB Magazine
29. E-Commerce business in Bangladesh - TechiNews24.com
30. FoodPanda Bangladesh Turns One A Success Story - SDAsia

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PROJECT ON

BUSINESS OPPORTUNITIES OF ONLINE FOOD REVIEW

Mr. Rahul Datta

Senior Trainer – Digital Marketing

LICT Project, Govt. Of Bangladesh

For partial fulfillment of Digital Marketing Certification Under

Foundation Skills Training

University Name: University of Chittagong

Project Submitted to Bangladesh Computer Council for partial fulfillment of Digital

University Name: University of Chittagong

1. Name of the Student: Syeda Mansura Khatoon

Name and Address of the Guide:

Signature of the Student

Signature of the Student

Signature of the Student

Signature of the Student

For Investor of Bangladesh

Listed with more than 1.5 millions

Tripled the revenue within a fiscal year by

“ZOMATO- Never have a bad meal”

Key Activities Value Customer Key

Revenue streams Channels Customer

Charge of Provide all information

Space to advertise and Download mobile app,

Figure: Business model of ZOMATO

2.ZOMATO for business app:

4.ZOMATO book – Table & reservation management.

5.ZOMATO order – Online ordering.

6.ZOMATOwhitelable – Custom apps for restaurant.

2.1 Operational Model:

(User Views restaurant) Restaurants pay ZOMATO

Figure: SOP Model

2.2 Revenue Model :

Revenue Model Advertising

11% Commission from event

According to Deepinder Goyal, ZOMATO has four revenue streams :

2.3.1 Fund Raising:

2.3.2Fund allocation and utilization:

As an online company it uses its fund strategically on technological development to

2.3.3 Shareholding Pattern (as on November 2015) :

Info Edge (India) Limited is the largest

Shareholders %age Shares Held

Naukri Internet Services

3.3 Technological Model:

 Featured and user friendly website.

 ZOMATO app review:

 ZOMATO Business App:

4. ZOMATO order – Online ordering.

3.4 Payment Model:

 ZOMATO has introduced online payments for ordering food in select restaurants in

3.5 Marketing Model:

VI. Cross tie-up: Uber, City Bank.

Online Offline Social Media Direct Marketing

SEO Pamphlets Facebook SMS

Figure: Table of Marketing Tool

3.2 Financial growth:

3.4 Employee growth:

Employee Growth Chart

3.5 Global Expansion:

3.6 Customer Acquisition:

For Foreign Direct Investment (FDI)

“Bangladesh: Next rising star in South Asia for foreign investment”

2.Business opportunities in Bangladesh: