Competitive Analysis of Zomato and Swiggy

Personal Details

NAME- Eshika Das

CLASS- TYBMS (Marketing)

ROLL NO.- TYMS108

SEMESTER VI

YEAR- THIRD

REGISTERED MOBILE NUMBER- 8697765818

INSTITUTIONAL EMAIL ID- eshikadas21-22@bhavans.ac.in

GUIDING PROFESSOR- Ma'am Mansi Ranawat and

Sir Rahul Kushwaha

College Details

COLLEGE NAME- Bhavan's College

COLLEGE ADDRESS- Azad Nagar, Andheri West,

Mumbai, Maharashtra, 400 058

February, 2022
INDEX
 INTRODUCTION

Food is one of the most important needs among the basic needs of living. Food industry
has evolved from small shops that provides food covered by leaves in early period to
ordering desired food by a single touch from a comfortable spot at house or office.
Digital platforms have become potential attraction especially post Covid. People are
interested to buy clothes, groceries and food without even stepping out of their homes.
Zomato and Swiggy are the dominating players in food industry of India. In a highly
populated country like India, people could see delivery executives with red and orange t-
shirts, rushing towards their destination on regular basis. In the following bunch of
words, a comparative analysis between Zomato and Swiggy are prepared with respect to
the customers’ ratings, reviews and preferences.

Zomato

Initially, Zomato was launched in the name ‘Foodie bay’ in the year 2008 by Deepinder
Goyal and Pankaj Chaddah. In November, 2010, the company was renamed as Zomato.
Zomato concentrates mainly on food. It not only provides food delivery services; users
can also surf nearby restaurant with respect to their location. The application provides a
detailed review about the restaurants’ hospitality, dishes and price range. Before visiting
a restaurant, users can get an idea about it. Other than this, Zomato streams their original
cooking shows. The firm tries to cover all sorts of cravings for a foodie. Zomato has
acquired twelve companies on the whole such as Tongue stun, Menu Menia and Uber
eats recently. On 21st January, 2020, Zomato acquired Uber eats’ stocks worth 350
Million. Zomato provides service in twenty-four countries around the world.

Swiggy

Swiggy was started in the year 2014 by Nandan Reddy, Rahul Jaimini and Sriharsha
Majety. It was introduced at Banglore, India. This company is operated by Bundl
Technologies Private Limited. Unlike Zomato, Swiggy has a wide agenda including food
as a main part of it. Other than food, they deliver grocery and medicine delivery services.
This shows that, Swiggy might explore new branches of delivery in future. The company
attracts its users by this diverse range of services in a single application.

OBJECTIVE

 The objective of this study is to find out the best online food ordering and
delivering company i.e. ; Swiggy or Zomato
 To know the centennials perception about Swiggy and Zomato.
 To find the best company who gives maximum level of satisfaction to the
customer.
 To understand the factors influencing by people order food online.

LIMITATIONS OF THE STUDY

Common methodological limitations
Limitations due to methodological problems can be addressed by clearly and directly
identifying the potential problem and suggesting ways in which this could have been
addressed—and SHOULD be addressed in future studies. The following are some major
potential methodological issues that can impact the conclusions researchers can draw
from the research.

Issues with samples and selection

Sampling errors occur when a probability sampling method is used to select a sample, but
that sample does not reflect the general population or appropriate population concerned.
This results in limitations for your study known as “sample bias” or “selection bias.” For
example, if you conducted a survey to obtain your research results, your samples
(participants) were asked to respond to the survey questions. However, you might have
had limited ability to gain access to the appropriate type or geographic scope of
participants. In this case, the people who responded to your survey questions may not
truly be a random sample.

Insufficient sample size for statistical measurements

When conducting a study, it is important to have a sufficient sample size in order to draw
valid conclusions. The larger the sample, the more precise your results will be. If your
sample size is too small, it will be difficult to identify significant relationships in the data.

Normally, statistical tests require a larger sample size to ensure that the sample is
considered representative of a population and that the statistical result can be generalized
to a larger population. It is a good idea to understand how to choose an appropriate
sample size before you conduct your research by using scientific calculation tools—in
fact, many journals now require such an estimation to be included in every manuscript
that is sent out for review.

 Lack of previous research studies on the topic

Citing and referencing prior research studies constitutes the basis of the literature review
for your thesis or study, and these prior studies provide the theoretical foundations for the
research question you are investigating. However, depending on the scope of your
research topic, prior research studies that are relevant to your thesis might be limited.

When there is very little or no prior research on a specific topic, you may need to develop
an entirely new research typology. In this case, discovering a limitation can be considered
an important opportunity to identify literature gaps and to present the need for further
development in the area of study.

Methods/instruments/techniques used to collect the data

After you complete your analysis of the research findings (in the discussion section), you
might realize that the manner in which you have collected the data or the ways in which
you have measured variables has limited your ability to conduct a thorough analysis of
the results. For example, you might realize that you should have addressed your survey
questions from another viable perspective, or that you were not able to include an
important question in the survey. In these cases, you should acknowledge the deficiency
or deficiencies by stating a need for future researchers to revise their specific methods for
collecting data that includes these missing elements.

Limited access to data

If your research involved surveying certain people or organizations, you might have
faced the problem of having limited access to these respondents. Due to this limited
access, you might need to redesign or restructure your research in a different way. In this
case, explain the reasons for limited access and be sure that your finding is still reliable
and valid despite this limitation.

Time constraints
Just as students have deadlines to turn in their class papers, academic researchers might
also have to meet deadlines for submitting a manuscript to a journal or face other time
constraints related to their research (e.g., participants are only available during a certain
period; funding runs out; collaborators move to a new institution). The time available to
study a research problem and to measure change over time might be constrained by such
practical issues. If time constraints negatively impacted your study in any way,
acknowledge this impact by mentioning a need for a future study (e.g., a longitudinal
study) to answer this research problem.
1. Formulation of research aims and objectives. You might have formulated research
aims and objectives too broadly. You can specify in which ways the formulation of
research aims and objectives could be narrowed so that the level of focus of the study
could be increased.

2. Implementation of data collection method. Because you do not have an extensive

experience in primary data collection (otherwise you would not be reading this book),
there is a great chance that the nature of implementation of data collection method is
flawed.

3. Sample size. Sample size depends on the nature of the research problem. If sample size
is too small, statistical tests would not be able to identify significant relationships within
data set. You can state that basing your study in larger sample size could have generated
more accurate results. The importance of sample size is greater in quantitative studies
compared to qualitative studies.
4. Lack of previous studies in the research area. Literature review is an important part of
any research, because it helps to identify the scope of works that have been done so far in
research area. Literature review findings are used as the foundation for the researcher to
be built upon to achieve her research objectives.

However, there may be little, if any, prior research on your topic if you have focused on
the most contemporary and evolving research problem or too narrow research problem.
For example, if you have chosen to explore the role of Bitcoins as the future currency,
you may not be able to find tons of scholarly paper addressing the research problem,
because Bitcoins are only a recent phenomenon.

5. Scope of discussions. You can include this point as a limitation of your research
regardless of the choice of the research area. Because (most likely) you don’t have many
years of experience of conducing researches and producing academic papers of such a
large size individually, the scope and depth of discussions in your paper is compromised
in many levels compared to the works of experienced scholars.

SIGNIFICANCE OF THE STUDY

Startups in India become a talk of the town in world business scenario. Youngsters are
coming up with innovative concepts to counterpart untouched concerned area of
consumers. Currently Indian Online food market is$350billion.Food technology in
broad area, online food delivery apps are just part of it. This conceptual study will give
more insight about emerging innovative technologies in restaurant industry and strategies
followed by online food start ups Zomato, Swiggy. From this research paper we would
understand drivers of online food sites. Different services given by application that makes
consumers happy and satisfied .Comfort and Convenience which makes consumer more
inclined towards online food ordering. The research concluded that due to
urbanization in Indian landscape, online food delivery applications are growing
with flying colors. Future of online food ordering website is bright. Facilities,
Comfort, User friendliness are the key features of online websites success.

RESEARCH METHODOLOGY

•Research design: Descriptive research design

•Research Approach: Survey method through questionnaires.

•Sample Unit:Students

•Data Collection Method: This survey is done through primary data collection method
with the help of questionnaires.

•PRIMARY DATA

•Students from different colleges.

•Personnel who continuously use zomatoand swiggyapp to order their food

•SECONDARY DATA

•Company database

•Internet

•Online advertisement sites

Consumer s Perception on Online FoodOrdering

•In this research paper, two objectives were set for study. The first onewas to identify the
factors which influence the consumer to orderfood online and the other one was to know
the consumer preferenceson online food ordering services provider.

•The study highlights the fact that youngsters are mostly poised to useonline food
ordering services. The study also reveals that the price ofthe products, discounts and
special offers have the most influencingfactor on online food ordering. The second most
influencing factorwas the convenience, the next most influencing factor was on-
timedelivery.

Demand Drivers

1.Encouraging Demographics

2.Promising Income & Consumption Levels

3.FavourableLifestyle Changes

4.Rising Number of Working Women

Supply Drivers
1.Expanding Variety of Cuisines

2. Upgrading of Retail Formats

3. Rising of Contract Cultivation

4. Emerging of Logistics Providers

5.Growing of Delivery -dedicated Formats

Challenges of Online Food Delivery Business

•Chef’s Onboard

•Retaining Customers

•Food Standardization

•Pricing

•Earning Higher Profits

•Managing Logistics

•Freshness of Food

SWIGGY’S BUSINESS MODEL

The business model canvas of Swiggy is based on a hyperlocal 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.

Their app allows urban foodies to order food from nearby restaurants and get it delivered
at their doorstep. A broad list of restaurants and their menus with prices are exhibited in
the app to choose and order from.
Apart from accumulating restaurants, Swiggy also has its own fleet of delivery partners.
They pick up orders from partner restaurants and deliver it on-demand in less than 30
minutes.

Because Swiggy operates as a dual-partnership model, it also benefits restaurants that can
receive more orders from customers using their own Swiggy app.

Once the order is placed, they will know the order details, prepare the order and deliver it
to Swiggy drivers. This way, restaurants don’t need to use their own delivery personnel,
saving costs and efforts.

All the Swiggy drivers in the vicinity receive a broadcast signal on their own Swiggy
drive app when the order is placed. After they accept the order, they deliver it right on the
customer’s doorsteps.

1. Customer Segments of Swiggy

The customer segments of Swiggy include those people who do not wish to go out to
restaurants and eateries to buy food. People who want to order food online and want to
get it delivered at their doorsteps are the principal customers of Swiggy.

After its recent business expansion, people who want to buy and get other products
delivered from nearby shops and stores of groceries, pharmacies, electronics, flower
shops and gift shops in the city are also Swiggy’s customers.

Few examples of stores currently available on Swiggy platform are Sodhi Super Marche,
Garg Dastak, Best Basket and V.M Retail.

2. Value Propositions of Swiggy

The main value proposition of Swiggy is its no-restriction order policy and efficient
online payment system.
Swiggy has no minimum order requirement for delivery which is why it often receives
orders amounted to less than Rs. 100. It is the reason for Swiggy scaling up to 14 million
orders per month.

Easy access to customers on Swiggy’s app is the main value proposition offered to
restaurant partners on the platform. Also, partner restaurants that join Swiggy’s Access
can save up to 25% of their operational costs.

Swiggy Stores deliver groceries, flowers, medicines, and other things to the doorstep of
its customers within an hour.

Swiggy Go – It offers instant pick & drop services used by customers to send packages,
lunch boxes to their kids, documents to the office, and parcels anywhere across the city.
Also, customers can use Swiggy Go services to drop laundry or fetch forgotten keys.

Swiggy provides 8 different payment methods for its customers to pay conveniently for
Swiggy orders. These can be categorized in 3 ways:

Digital Wallets

Paytm – Pay through your Paytm account and enjoy plenty of wonderful offers and food
deals.

PhonePe – Get the ultimate convenience by paying through PhonePe, the simplest digital
wallet for online payment.

Freecharge – Swiggy has also included Freecharge as an online payment method to

facilitate its customers efficiently.

Mobikwik – Now you can collect SuperCash through Mobikwik’s offers. So, get ready to
avail amazing benefits on many services.

Cards

Credit and Debit Cards – Via Swiggy’s net banking facility, you can use any debit and
credit card. Plus, you can also avail great offers on them, and you can even save your
card details for your future payments.

Sodexo Meal, Ticket Restaurants Meal & Zeta Food Card – Got these meal cards? Great!
Use them on Swiggy for your food orders.

Others
LazyPay – Pay now or pay later for your meals, LazyPay is here on Swiggy for you to
handle your lazy moods of payments!

Cash-On-Delivery – Old is gold, isn’t it? Pay for your Swiggy orders in cash if that is
more convenient for you.

Another value proposition is its delivery competency. Its fleet size increased to 45,000
delivery personnel. It has over 20,000 active restaurant partners on its platform.

It’s operating in 8 cities and has even launched a central kitchen base facility for various
restaurants. Swiggy has more than a million app downloads.

3. Customer Relationships of Swiggy

Swiggy has positive customer relationships. It provides 24/7 active customer support to
help customers anytime, anywhere. It uses ‘Customer Support Chat’ services.

It also has active social media pages where it responds promptly. To stay in touch with its
customers and partners, it has developed excellent rating, review, and feedback systems.

4. Channels of Swiggy

The channels of Swiggy are mobile app, websites, and digital marketing. Its mobile app
is available on both Android and iOS.

In 2019, Swiggy launched Swiggy Stores and Swiggy Go to expand beyond food
delivery.

5. Key Resources of Swiggy

As it has partnerships with local restaurant and shops, its main resources are local
partners.
To name a few, Biryani Blues, Keventers, BombayKery, Wok Paper Scissors, and
Yogisthaan are the bestselling restaurants at Swiggy.

Other key resources are delivery providers and its own human resources to manage
administrative and technical operations. Technology is another resource it uses to operate
its apps.

6. Key Activities of Swiggy

Its key activities include:

Building partnerships with eateries and retail shops

Hiring delivery providers and suppliers (full-time/part-time/freelancers)

Acquiring customers and managing their orders

Managing delivery and payment process

Managing technical operations

Updating system and building IT infrastructure

Handling queries and concerns of customers and partners

Picking and delivering items for customers via Swiggy Go

7. Key Partners of Swiggy

The key partners of Swiggy are:

Restaurants and shops – Restaurants who wish to have food delivery services to provide
customers with food on-demand. Other than eateries, key partners of Swiggy are shops
(like pharmacies, groceries, etc.) who wish to offer their own products and services as
Swiggy’s partner.
Grocery Stores like Sodhi Super Marche, Garg Dastak, and Best Basket are few of the
Swiggy partners. While it is now on the exploratory talks with many online pharma
players like MedPlus, Medlife, PharmEasy, and Myra to partner with them.

Instagram – Swiggy recently partnered with Instagram allowing businesses to share

Instagram’s food order sticker on their stories with customers. Users can tap on the
stickers to place similar orders using Swiggy’s website.

Delivery providers – These are the delivery suppliers. They can be full-time or
freelancers who wish to work and earn some extra money. For the first 4 km, Swiggy
pays delivery boys Rs. 4 per km. It then pays Rs. 6 per km after they have traveled 4 km.
Besides, they are paid an additional Rs.20 in unseasonal weather like rainy days. Also,
Incentives are given on the basis of productive performance.

8. Cost Structure of Swiggy

Swiggy has to incur costs and expenditures for its day-to-day functions. Its major cost
sources are:

Payroll expenses for its employees and delivery partners. It also includes incentives and
benefits which Swiggy offers to restaurants. For example, giving a commission of about
2- 3%.

Costs of application and website development

Running costs and maintenance charges

Administrative, advertising, and marketing costs

Additional costs in terms of promotional offers and benefits given to customers

Kitchen base-like facility setup and maintenance costs

Returns, refunds, and miscellaneous expenses

9. Revenue Streams of Swiggy

Now, comes the most critical question:

How does Swiggy make money?

To get a definitive answer, we need to analyze Swiggy’s Revenue Model. As it’s
expanding its business strategy and operations day by day, the revenue streams of Swiggy
are also considerably increasing.

There are mainly 6 revenue streams at present through which Swiggy makes money:

1. Delivery charges

The first type of revenue stream Swiggy obtained is from its customers. A nominal
delivery fee of Rs. 20 to Rs. 40 is charged from customers on orders below a threshold
value of Rs. 250. Swiggy raises the charges during high order demands or unusual
weather conditions.

2. 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
through Swiggy’s fleet. Restaurants have to pay 15% to 25% on every order placed from
Swiggy’s website.

3. Advertising

Swiggy earns advertising revenue in the following ways:

Banner Promotions – Swiggy promotes and displays ads of various restaurants on its app.
Restaurants, related to different regions, receive greater visibility via banner promotion
and pay price for the displayed page.
Priority listing of restaurants – Swiggy charges restaurants premium rates to give them
priority in the list of available restaurants. A restaurant has to pay high if it wants to be
displayed higher on the list.

4. Swiggy Access

An entirely new idea based on the cloud kitchen concept, Swiggy came up with its
Swiggy Access facility. It provides ready-to-use kitchen spaces to its restaurant partners
in those areas where they don’t operate.

With the aim of bringing food nearer to its customers, Swiggy enables restaurants to set
up their kitchens in new locations and let the food delivered to them at the fastest speed.

Expecting around 25% of revenues in 2 years, Swiggy expands its cloud kitchen model to
include 30 restaurants onboard with 36 kitchens to four new cities.

5. Swiggy Super

Swiggy has launched a membership program called ‘Swiggy Super’ for customers. This
program offers unlimited free delivery on all orders above ₹99. After subscribing to this
program, customers don’t have to pay surge pricing during excessive demands.

6. Swiggy Go

Another revenue stream for Swiggy is a concierge service Swiggy Go that was launched
in 2019 to offer instant pick & drop service.

Through Swiggy Go, the company earns by helping customers to send, pick, and drop
anything to and from different locations anywhere across the city.
7. Affiliate Income

Swiggy earns revenue by partnering with various financial institutions like Citibank,
HSBC, and ICICI Bank. This affiliate income is a new yet successful revenue stream
where both parties benefit.

It also allows customers to receive several credit card offers from those financial
companies.

SWOT OF SWIGGY

1. Fast Delivery

Swiggy is famous for its quick delivery service. Its technical platform is prepared in such
a way that it accepts orders from customers based on its location, and the food would be
taken from the nearest hotel of the customers.

The customers would get the hotels that are near to them in their interface. With this
model, Swiggy can efficiently process the orders for every customer.

2. Neat User Interface

For customers to view comfortably, Swiggy has maintained an excellent interface to take
their orders. Its user interface is neatly arranged in a way that the hotels are listed, and its
menu and rates can be seen on clicking the hotel.

When the customers choose their hotel and food, its payment gateways are also simple,
and all the offers that the customers are eligible are listed. Then it takes to the payment
process, and the transaction gets completed. Once the order is done, customers can also
check the live update of their order.
3. Trained Employees

One main strength of the brand is its trained employees. The front and the back-end
teams are well-trained and get the service delivered for the customers.

4. Wide Selection

Yet another strength of the brand is the wide selection it has of the eateries. It provides
various selection of eateries at the nearby location and with an extensive menu available
there. It would also show you the eateries based on your preference, whether vegetarian
and non-vegetarian.

5. Neat Packing

Swiggy delivers food to its customers with a neat pack. The hygiene part is also well-
maintained.

Weaknesses

1. Targets Zonal Restaurants

Swiggy takes orders that are only from the restaurants located within the zone of the
customers. Many competitors increase the customer’s requirement and expand to more
restaurants.

2. Increase in Brand Name

Currently, Swiggy’s brand awareness is less, and it needs to pay more attention to
branding. Swiggy should create more marketing strategy to have the right brand image.

3. 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.
Opportunities

1. Innovator of this Idea

Swiggy was the first online platform for food delivery and the first to get this service to
the market. They have shown new methods to deliver food and sees more opportunities to
serve the customers.

2. Growing Marketplace

Swiggy sees a vast opportunity in the market as there are many potential customers. They
have many people and likely to increase so that it would benefit the brand. When
customers increase, the brand also increases.

3. Increase in Market Share

Swiggy can increase its position in the market by showing its place more in the market. It
can improve its market share by focusing more on its branding. Swiggy should invest
more in branding so that it can be reachable to many.

4. More Service

Swiggy 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.

Threats

1. Fewer Customers

Currently, Swiggy has few customers, and this is a significant threat to the brand. When
there are fewer customers, it would be tough to increase their sales that would impact its
profit.
2. Increasing Competitors

Swiggy sees many competitors from a small scale. 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.

3. Increase in Health-Conscious People

Nowadays, people are more health-conscious and prefer less of outside food. Not seeing
the restaurant location and cleanliness of the place, people would hesitate to order food
online. This is a big threat to the brand.

Zomato - Business Model

During the initial phase of the company, Zomato used to scan the menu of the restaurants,
keep it on the site and the menu was received by people. It still follows the same formula,
but has also added other services to its operation. The business model of Zomato is quite
different from that of other food delivery company such as Swiggy and Foodpanda. The
key partners of Zomato are Uber and London & Partners that could launch Zomato in UK
within expected timeline.

While the key resource of the company is that it has a large database of restaurants across
10,000 cities in 24 different countries. The business model is based on providing local
restaurants search services and collecting data on food menus, contacts and providing
relevant information to their customers. The main channels for Zomato are the mobile
applications and its online website. The target audience of the company are the users who
try to find local restaurants of various cuisine and restaurants who want their name to
reach a large number of people.

Zomato also caters to customers that prefer home delivery, it helps out database and
market research companies. While the online service is built with mandatory rating
mechanism. The business model of Zomato has revolutionized the food business
industries by incorporating various restaurants and making it convenient for people to
find restaurants, provide feedback, check listings, and availability according to their
choice of cuisine.

Zomato - Revnue Model

Zomato in itself does not offer the products to customers but the revenue is massive.
Zomato is not just a food business, as it also into the advertising business. Zomato
business has two parts, one is the delivery business and two is that they are in the
advertising business. Today, Zomato has multiple revenue channels besides online
ordering, which most consumers would be familiar with. The revenue generating ways
are:
Revenue FY18 FY19

Delivery $38 million $115 million

Dining out $30 milion $49 million

Sustainability $0 million $2 million

Restaurant Listings and Advertising

Zomato first started out as a restaurant search and rating services. This brought in the
advertising revenues from restaurants who joined the platform. They further extended this
feature to food delivery and restaurant reservations, for this Zomato charges commissions
from restaurants that want to be placed on the feed. Advertising is the major source of
revenue for Zomato. The restaurants can promote their banner on the site in order to get
better visibility and appeal to a large section of the audience via Zomato.

Food Delivery

Through the food delivery business, Zomato charges a commission to the restaurants on
the basis of orders. The company earns through restaurants who pay a commission for
each delivery, which is then spilt among the delivery partners and the company.
However, the online food delivery only contributes a low percentage of income compared
to other revenue streams because of the huge competition and the need to provide deep
discounts etc.

Subscription programs

The next major source of revenue for Zomato is a subscription fee. Restaurants pay a
certain amount of fee monthly and in return, Zomato offers them the analytical tools.
Zomato has huge amount of databases that knows what a customer wants to eat, where
he/she wants to eat, what the consumers is searching for and knows all this information
through the cookies. It has a tool called Zomato order and is given to restaurants, which
helps them know about the consumers interest. The restaurants then use this tool to flash
their discount offers on food.

Live Events

Zomato has forayed into events space by partnering with restaurants and creating limited
events. By which they made a sale through the price of the tickets. Zomato recently
introduced Zomaland, and entered the live event market in 2019. Zomato charges users
an entry fee to attend zomaland where besides food, they can witness live musical
performances and other acts. Zomato also organized an entertainment carnival in 2018, in
Delhi, Pune and Bengaluru, where more than 100 thousand people showed up.

White Label Access

The next source of revenue is app development. Zomato launched the service called
Zomato Whitelabel under which they give offers to the restaurants to develop and
customized food delivery app. It also works with cloud kitchens and restaurants for
consultancy services. Zomato works with select restaurant operators to help in identifying
locations for expansions at a minimal fixed cost, but with increased options for the user.
It provides the requisite licenses and operational enablement for such restaurant partners.

Zomato Kitchens

Zomato also provides kitchen infrastructure services to select restaurant operators, it

works with entrepreneurs to set up and operate Zomato kitchen under various other
labels. This helps entrepreneur’s fund restaurant in the right location with an investment
of Rs. 35 lakhs. It also claims to offer returns in the range of Rs. 2 lakh to Rs. 4 lakh per
month to the investors and has so far completed with more than 180 affiliated kitchens.

Zomato Gold

Zomato Gold is a premium subscription based service which is offered by Zomato. It

started in 2018 and is a paid service that allows customers with Gold memberships get
complimentary food and drinks at the time of ordering form partner bars or restaurants.
However, the Gold service is only applicable to dine in orders and not available for
deliveries and can be used only once at each partner restaurant in a day. Zomato Gold
offers either 1 + 1 on food or 2 + 2 on drinks when the customers visit their partner
restaurants.

Zomato - Value Proposition

Zomato business model offers a variety of value to its customers. Zomato's revenue
model focus has been on creating something new and extra which the customers cannot
get anywhere else. Zomato is one stop shop for dinners and offers a way for restaurants to
differentiate themselves. Restaurants have an option to create differentiation by keeping
the listing updated, responding to criticism positively and also by being accountable to
their action.
Zomato believes in creating value for its customers in order to sustain its business
operation. The company tries to bridge the gap between the customers and restaurants by
providing efficient technology application, which has helped them reduce its delivery
time.

Strengths in the SWOT analysis of Zomato

First mover advantage – One of the best competitive advantages of Zomato is that it is the
first mover in many of the nations where it is establishing itself. Directories and other
forms of restaurant ratings might exist. But as an app Zomato is excellent and many
countries (like India) have loved the usability of the Zomato app.

Evergreen industry – The restaurant industry is an evergreen industry. Sure, there may be
recessions and other downturns which might affect the industry. But overall, this industry
is going to stick around at all times and is only going to grow with rising disposable
income.

Fast Expansion – It is appreciative that Zomato has expanded so fast. It is already in 24

countries and is expanding year on year.

Fantastic design of the app – Zomato has regularly won awards for its app design and for
its user-friendliness. The App design is fantastic and it helps you discover restaurants
nearby as well as in an area you are going to visit.

Number of users – Zomato has a huge number of users using their app. At the same time,
the site also has 90 million visitors a month approximately. With so many users following
the app and site, there are more reviews and hence more chances to find better
restaurants.

Focused approach – The brand has a very focused approach and has always tried to bring
the most of out of its unique offering. It is well connected with restaurants and regularly
takes feedback from customers as well as restaurants. This focused approach has also
helped the brand image and reputation of the firm.
Excellent funding available – Zomato has picked multiple rounds of funding over the
years and because it is now so well established in many countries, there is a lot of funding
available for the app.

Multiple acquisitions – Zomato has acquired multiple companies most of which are
software or technology related.

Already turning profits – In April 2017, Zomato was profitable in all 24 countries it was
operating in. For a company which is a start-up and has so much funding, it is a big thing
to turn profitable because many funded organizations are still declaring losses even after
a decade of establishment.

Brand Equity – Zomato is valued at $1.4 billion within 7 years of inception. That says
volumes about the popularity and love for the brand.

Fantastic marketing – You can find Zomato working for its own marketing offline as well
as online. Its print ads are hilarious and make an immediate connect with the audience. It
is strong on Social media marketing and uses a combination of ATL and BTL strategies
to attract and retain customers.

Weaknesses in the SWOT analysis of Zomato

Security issues for the app – A major issue for Zomato in the past has been some security
issues due to which the app was hacked and at least 17 million users data was copied.
Such security issues are a nightmare for internet companies.

Still a lot of expansion required – Considering that the app has established in 24
countries, there is good expansion. But at the same time, the app has been started 7 years
back and with the amount of funding available for Zomato, the expansion can be much
faster. It is allowing other services to establish themselves in this niche before it reaches
their country.

Word of mouth and Facebook check-ins – Besides such apps, in many places word of
mouth still trumps apps and at the same time, Facebook check-ins are a strong competitor
wherein people might not need Zomato. Thus, it is an app for early adopters but
definitely not for laggards.

Opportunities in the SWOT analysis of Zomato

Further expansion – The number 1 opportunity for Zomato is to expand to more countries
and establish its base faster. Service industry has a major problem that services can be
copied very fast and very easily. As a result, it is critical for Zomato to establish and
expand itself faster.

More acquisitions – There are and were many small players in this space. Zomato can
acquire several of its competitors and at the same time, it has to keep an eye on the tech
industry and acquire any tech innovation it can get its hands on to keep on rising.

Cloud restaurants – Zomato is coming up with the concept of Cloud restaurants wherein
restaurants will not have to get a physical space to actually sell their food products.
Instead, they can sell from Zomato.

Creating a community – 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.

Adoption of the internet and Smartphones – There is a huge increase in the adoption of
Internet across developing and underdeveloped countries as well. Similarly, adoption of
smartphone has also increased. Thus more and more orders and research about
restaurants can happen online instead of through physical visits.

Threats in the SWOT analysis of Zomato

Google’s schema module – One of the major threats Zomato faces right now is the
Schema module of Google wherein google locations itself is getting in restaurant
recommendations. Even google homepage shows the google maps page where you can
search for restaurants within your locality. Google being such a big brand, zomato faces
huge competition from them.
Market followers and challengers – In the service industry, it is very easy to replicate the
success of another service product or offering. Similarly, marketing followers and
challengers can slowly take away the market share of Zomato.
 CONCLUSION
The food delivery industry has emerged as one of the biggest online platforms, specially
in lockdown. The shape of the market is changing with a breakneck speed with food tech
companies like Swiggy, Zomato and many more.
As the decade draws to a close, we have started to see some signs of consolidation in a
market which has undergone several shifts in terms of strategies and operating
procedures. The decade certainly belonged to the two top startups in the space, Swiggy
and Zomato.
I stated, I would choose ONE food delivery company, at last, however studying both,
despite the fact that they thrive to be on top, their business model, strategies, and working
system are all not the same. They are both great in their own specific manner.
Where Zomato’s speciality is marketing and offers, concocting these insane ideas, online
competitions, promo ads, and games for their users to be involved in and win amazing
cash back prices, Swiggy doesn’t hold back either, with their efficient user experience.
Truly, I’ve cherished more things with how the designers aim for problem solving, by
changing seemingly little details on their app. Every time the app is updated, I’m blown
at the intensity, wondering, what better they’d come up with the next time.
In the event that Swiggy chips away at their advertising techniques a bit more it is set for
days I can’t count, and its equivalent for Zomato, a little focus on User experience, can
bring their users back everytime and viola! you just made it to the user’s heart.
Case studies often shed light on aspects of the work and behaviour of a person, group or
event. There is no doubt that it is a valuable and important form of research for all of the
people who are in some or the other way involved with the brand.
It has helped in understanding the system and produce grounbreaking thoughts on the
presumptions we make based on the user perspective and market research.
With the work on the case study, I can see the anticipated change in ‘Swiggy Design’
regardless of whether it’s wasn’t pitched, but I’m glad for the path that I chose in the
entire contextual analysis, well, some of it worked and I plan on continuing in with more
improvements in my next one.

Swiggy has undoubtedly become a leading online food ordering and delivery company.
Having changed the entire landscape of how India eats, its innovative business model has
made the life of every foodie easier, tastier, and more fun.
With its fast deliveries, live order tracking, and no restrictions on order amount, Swiggy
is not far from taking a huge chunk of India’s food-tech market. It has been demonstrated
through Swiggy’s business model. Swiggy's growth over the time has been phenomenal.
It aims to raise more funds to strengthen and expand its services to more places. Despite
being a late comer into the industry, Swiggy was able to gain its deserving position
through strategic planning and stable expansion.

Our brief research clearly shows that there is a positive outlook foronline food delivery
apps in terms of satisfaction level and it isindependent of factors like age, education level,
and gender.
•If we talk about the difference in satisfaction level between SwiggyandZomatowe do not
found much difference in that so it clearly impliesthat there is cutting edge competition
between the industry leaders.
•So it will now all depends on their future strategies-that may includeexpanding in new
cities, deploying high tech technology that mayinclude use of drones and chat bots for
reducing operational cost andincreasing responsiveness.

·
1. The perception of the consumer varies according to various similarities and
difference based on their personal opinions,
2. The study reveals that mostly the youngsters / Gen Z are attached to the online
food ordering.
3.The study also reveals that the price of the products, discounts and special offers have
the most Influencing factor on online food ordering.

Have you ever heard of?

In response to the question that have you ever heard of zomato, swiggy, 66 people
responded out of 66 people 60 people have heard of both. Then while going through the
survey I have realized that actually 1 person have heard of both but rather choosing the
‘both’ option choose to tick Zomato, and Swiggy separately. That means 61 of them is
aware of the fact that companies like Zomato and Swiggy exists only 5 of them
responded that they are aware of only Swiggy’s existence and the don't know about
Zomato.
So with this response it is clear that Swiggy’s marketing is actually reaching to more
audiences than that of Zomato.
This responses actually changed my perception.
To the question that how did you got to know about Zomato 44 out of the 63 responses I
got said that social media is the reason that they know Zomato. Of Course more or less
each and everyone have seen Zomato's advertisements while scroll through Instagram,
YouTube, Facebook and Twitter, Snapchat and all the other social media platforms. Only
20 person have seen the Zomato television advertisement.
And got educated about Zomato from friends and family.
With the question asked where do you mostly order your meals from 60% of the
responses where to the option 50-50 that is sometimes from Zomato and sometimes from
Swiggy .
16.9% of the responses were only for Swiggy that is they are Swiggy's loyal customer,
and 26.2% of the responses were only for Zomato that is they are loyal for Zomato. And
they are not ready to Swiggy.
This question and it's responses lead to another question that What makes the 40% of my
sample size loyal to either of the company. What would be the reason? With the next
question asked in the survey conducted by me, we will get a clearer picture of the
reasons.
In response to the question that do y
 APPENDIX
1.How do you get to know about companies ?
o SMS/Email Marketing
o Television
o Social Media
o Friends and Family

2.Have you ever heard of?

o Zomato
o Swiggy
o Both

3.How do you order your food ?

o Website
o Moble Applicaion

4.Which Payment mode you used to make the payment?

o COD
o Credit/Debit Card
o UPI
o Net banking

5.How frequently do you use the online food ordering and delivering services?
o More than once in a week
o Once in a week
o Once in two week
o Once in a Month
6.The most preferred time to place your order?
o 8AM - 12PM
o 12PM - 4PM
o 4PM - 8PM
o 8PM - 12AM
o At night after 12

7.What would encourage you to use more services of ?

 o Speed of Delivery
o Quality of Service
o Payment options
o Discount
8.What is your opinion about the experiences of both companies ?
Excellent
Good
Bad