CHAPTER – I

INTRODUCTION
PROMOTION MIX
The purpose of advertising is to promote a product or service in order to increase sales and create
a branding of the product so that a customer loyalty base will be established. Without effective
and targeted advertising, a business cannot succeed. There are many types of advertising a
business can utilize in effort to increase their sales.
The following lists a number of types of advertising available to businesses:
Television and Radio
Since television was first introduced, businesses have had tremendous success using it as an
advertising medium. This is due to the increase in consumers watching television. The cost of
television depends on the time of day or night one advertises, the popularity of the television
show (how many viewers,) and the length of the advertisement. Television advertising can reach
millions of people. Radio advertising is a traditional advertising format that uses voice and
jingles.
Print
This includes newspapers, magazines, fliers, brochures.etc. Placing advertisements in magazines
and newspapers is an age-old method of advertising. Newspapers and the magazines sell the
advertising space. Prices depend on location, size, graphics, and color. Advertising success often
depends on the number of subscribers. Print advertising allows a business to target a specific
demographic. Fliers and brochures are a great way to advertise sales and launch special product
promotion programs.
Internet Advertising
Online advertising consists of small ads, banner ads, text ads, video ads, pay-per-click
advertising, and reciprocal linking to other websites. The effectiveness of online advertising
depends on exposure and how many people actually view the advertisement. Internet advertising
allows the advertiser to track the number of impressions an ad gets (how many people see it), and
how many visits their business website receives from particular ads, making it simple to find out
what kind of conversion rates the advertisers are obtaining. Online advertising does not have any
time restraints and can be viewed day and night throughout the world. Businesses also have their
own websites as an advertising tool. A well-designed and well-promoted website can provide a
world of customers.
Out-of-Home Advertising
This can include digital signage, billboards, kiosks, tradeshows, and out-of-home advertising.
This is advertising that takes place outside of a customer's home. This form of advertising has
become very popular because it provides a new way to reach targeted customers. Billboards,
kiosks, and tradeshows have been extremely successful advertising tools because you can take
your product or service directly to the consumer. Digital signage is a newer method of
advertising that is growing in popularity. Digital signage is where monitors/plasma TVs are
placed in strategic locations and display advertisements directed at their targeted customer.
Digital signage can deliver messages in the form of text and digital video. Advertisers have the
ability to up date content from a remote location. You can find digital signage in such places as
sports arenas, retail stores, department stores, malls, schools...etc.
Regardless of the state of the economy, businesses have to keep advertising to stay successful.
Because of the broad range of advertising methods now available, businesses now have the
ability to reach their targeted customers at very affordable costs.

Promotion is one out of four basic instruments of marketing that has the purpose to inform about
other instruments of marketing mix and to contribute to sales increase on the long term. The
promotion is always serving to specific goal. These goals can be public informing, demand
increasing, product differentiation, and product value increasing or sales stabilizing. Usually the

promotion is targeting more than one goal.

Promotion is the process of communication between the company that sells the product and the
potential customer, with the purpose of influencing the attitudes and behavior. There are specific
promotional tool that are supporting chosen promotional goal. The promotion mix represents a
combination of different promotional tools. The basic elements of promotional mix are
Advertising, Public Relationship, Personal Sales and Sales Promotion.

1. Advertising is communication with current and potential customers and consumers, done
through paid mass media. The channels of communication can be TV, radio, Internet,
billboards,etc.
 
2. Public Relationship ( PR ) is communication toward public, but is turned more to
reputation and image of the company, than to it's products. The PR activity can be a press
conference, TV interview with company representative, press article about donation of
the company to charity or about latest environmental project.
 
3. Personal Sales is a way of promotion activity where sales representative is directly
contacting the customer. 
4. Sales Promotion represents a set of different promotional activities that has the goal of
animating customers for purchasing. This can be value offer ( discount ), quantity offer
( 2+1 ), prize drawings, merchandising, direct contact by animators in retail outlet, etc.
5. The approach to promotion can be different. The push strategy is transferring the supply
pressure downstream through sales channels.
6. The pull strategy is approaching the consumer directly. The consumer's demand is then
creating request for product through supply channel upstream. Usually these two
approaches are interlacing. In the early stage of product life the pull strategy is more
dominant.
7. Later, when the market is saturated with own and competitor's products the push strategy
is predominant.
It is not enough for a business to have good products sold at attractive prices. To generate sales
and profits, the benefits of products have to be communicated to customers. In marketing, this is
commonly known as "promotion".
Promotion is all about companies communicating with customers.
A business' total marketing communications programme is called the "promotional mix" and
consists of a blend of advertising, personal selling, sales promotion and public relations tools. In
this revision note, we describe the four key elements of the promotional mix in more detail.
It is helpful to define the four main elements of the promotional mix before considering their
strengths and limitations.
(1) Advertising
Any paid form of non-personal communication of ideas or products in the "prime media": i.e.
television, newspapers, magazines, billboard posters, radio, cinema etc. Advertising is intended
to persuade and to inform. The two basic aspects of advertising are the message (what you want
your communication to say) and the medium (how you get your message across)
(2) Personal Selling
Oral communication with potential buyers of a product with the intention of making a sale. The
personal selling may focus initially on developing a relationship with the potential buyer, but
will always ultimately end with an attempt to "close the sale".
(3) Sales Promotion
Providing incentives to customers or to the distribution channel to stimulate demand for a
product.
(4) Publicity
The communication of a product, brand or business by placing information about it in the media
without paying for the time or media space directly. otherwise known as "public relations" or
PR.
Advertising
 ADVERTISING is the promotion of a company’s products and services carried out
primarily to drive sales of the products and services but also to build a brand identity and
 communicate changes or new product /services to the customers. Advertising has become
an essential element of the corporate world and hence the companies allot a considerable
amount of revenues as their advertising budget. There are several reasons for advertising
some of which are as follows:

 Increasing the sales of the product/service

 Creating and maintaining a brand identity or brand image.
 Communicating a change in the existing product line.
 Introduction of a new product or service.
 Increasing the buzz-value of the brand or the company.
Thus, several reasons for advertising and similarly there exist various media which can be
effectively used for advertising. Based on these criteria there can be several branches of
advertising. Mentioned below are the various categories or types of advertising:

Print Advertising – Newspapers, Magazines, Brochures, Fliers

The print media have always been a popular advertising medium. Advertising products via
newspapers or magazines is a common practice. In addition to this, the print media also offers
options like promotional brochures and fliers for advertising purposes. Often the newspapers and
the magazines sell the advertising space according to the area occupied by the advertisement, the
position of the advertisement (front page/middle page), as well as the readership of the
publications.

Outdoor Advertising – Billboards, Kiosks, Tradeshows and Events

Outdoor advertising is also a very popular form of advertising, which makes use of several tools
and techniques to attract the customers outdoors. The most common examples of outdoor
advertising are billboards, kiosks, and also several events and tradeshows organized by the
company. The billboard advertising is very popular however has to be really terse and catchy in
order to grab the attention of the passers by. The kiosks not only provide an easy outlet for the
company products but also make for an effective advertising tool to promote the company’s
products. Organizing several events or sponsoring them makes for an excellent advertising
opportunity

Broadcast advertising – Television, Radio and the Internet

Broadcast advertising is a very popular advertising medium that constitutes of several branches
like television, radio or the Internet. Television advertisements have been very popular ever since
they have been introduced. The cost of television advertising often depends on the duration of
the advertisement, the time of broadcast (prime time/peak time), and of course the popularity of
the television channel on which the advertisement is going to be broadcasted. The radio might
have lost its charm owing to the new age media however the radio remains to be the choice of
small-scale advertisers.
The radio jingles have been very popular advertising media and have a large impact on the
audience, which is evident in the fact that many people still remember and enjoy the popular
radio jingles.

Covert Advertising – Advertising in Movies

Covert advertising is a unique kind of advertising in which a product or a particular brand is

incorporated in some entertainment and media channels like movies, television shows or even
sports. There is no commercial in the entertainment but the brand or the product is subtly( or
sometimes evidently) showcased in the entertainment show. Some of the famous examples for
this sort of advertising have to be the appearance of brand Nokia which is displayed on Tom
Cruise’s phone in the movie Minority Report, or the use of Cadillac cars in the movie Matrix
Reloaded.

Surrogate Advertising – Advertising Indirectly

Surrogate advertising is prominently seen in cases where advertising a particular product is

banned by law. Advertisement for products like cigarettes or alcohol which are injurious to heath
are prohibited by law in several countries and hence these companies have to come up with
several other products that might have the same brand name and indirectly remind people of the
cigarettes or beer bottles of the same brand. Common examples include Fosters and Kingfisher
beer brands, which are often seen to promote their brand with the help of surrogate advertising.

Public Service Advertising – Advertising for Social Causes

Public service advertising is a technique that makes use of advertising as an effective

communication medium to convey socially relevant messaged about important matters and social
welfare causes like AIDS, energy conservation, political integrity, deforestation, illiteracy,
poverty and so on. David Oglivy who is considered to be one of the pioneers of advertising and
marketing concepts had reportedly encouraged the use of advertising field for a social cause.
Oglivy once said, "Advertising justifies its existence when used in the public interest - it is much
too powerful a tool to use solely for commercial purposes.".

Celebrity Advertising

Although the audience is getting smarter and smarter and the modern day consumer getting
immune to the exaggerated claims made in a majority of advertisements, there exist a section of
advertisers that still bank upon celebrities and their popularity for advertising their products.
Using celebrities for advertising involves signing up celebrities for advertising campaigns, which
consist of all sorts of advertising including, television ads or even print advertisements.
OBJECTIVES OF THE STUDY

 To Build Awareness of the product and services of a company

 To Stimulate Demand of the products and services

 To Create Interest for the customers in companies’ services

 To Provide Information of a product and services to customers

Once a purchase is made a marketer can use promotion to build a strong relationship that can

lead to the purchaser becoming a loyal customer

SCOPE OF THE STUDY
 The role of sales promotion is to encourage purchase by temporarily improving the value

of a brand

 marketing is determined by the marketing offering of an organization

 The physical movement of the goods from producer to consumer is physical distribution

plays a key role.

 To study the customer’s awareness towards the after-sale services offered to him or her.
LIMITATIONS OF THE STUDY

 Project study is consisting of 45 days & limited to one branch

 The entire study of the project is based on secondary data

 The data analysis is completely based on theories

 The accuracy of the answers depends upon the mode of interest of respondents.

 The opinions of the sample may or may not depict the exact opinions of the total

population.
RESEARCH METHODOLOGY

The data collection methods include both primary data and secondary data.

PRIMARY DATA

Primary details that data that has not been previously published, i.e. the data is derived from a
new or original study and collected at the source, e.g. in marketing, it is information that is
obtained directly from first-hand sources by means of surveys, observation or experimentation.
This is also called first-hand data.

SOURCES OF PRIMARY DATA

The primary data was collected through various surveys held in rural areas

 Observation Method
 Survey method

SECONDARY DATA

The secondary data, on the other hand, is basically primary data collected by someone else. It
can be collected directly either from published or unpublished sources. It is collected for
purposes other than the completion of a research project and it is used to gain initial insight into
the research problem.

SOURCES OF DATA

 Official websites [Shodhganga]

 News papers
 Journals
 Author Books
 CHAPTER – II
RIVIEW OF LITRATURE
TITLE OF THE PAPER : Influence of Promotion

AUTHOR : Suci Hermiyenti1 , Yunia Wardi

JOURNAL : Business and Management Research

VOLUME : 64

YEAR : 2018

ABSTRACT

This research is motivated by the rapid development of technology at this time in all aspects
including information. In addition, according to (Made et al., 2018) and (Foster, 2016) that
brand image is an interesting topic to be a variable that influences a consumer's purchasing
decision on a cosmetic product. This is more interesting because currently Indonesian
consumers like to consume cosmetics made from natural ingredients made from plants. So the
marketing strategy which consists of promotion, price and consumer taste factors, namely
brand image influences purchasing decisions. This study aims to collect and analyze published
articles about the effect of promotion, price and brand image on purchasing decisions.
Research design is a literature review. Articles published in the last ten years that appear in 6
management and business journals that are academically recognized have been reviewed in
this study. Based on the results of the literature review that promotion, price and brand image
are expected to increase purchasing decisions. Purchasing decisions can be measured by
increasing sales data. So promotion, price and brand image have a significant influence on
purchase satisfaction.
TITLE OF THE PAPER : Factor affecting purchase decision

AUTHOR : Khan & Dhar, Kivetz & Zheng, Zikmud

JOURNAL : Business and Management Research

VOLUME : 64

YEAR : 2010, 2011,2017

ABSTRACT

The first factor affecting purchase decision of customers is promotion. According to (Zikmud,
2011) states that sale is communication function of company which has responsible to inform,
persuade and invite prospective customers. (Brata, Husani, & Ali, 2017) points high degree of
correlation has positive relationship. This result of study shows the better promotion, the more
positive of purchase decision of customers. Promotion is one of factors determining the
success of sales strategy of a company. If a company has a better product quality,
unfortunately customers do not get information about that. It will be difficult to make
purchase decision of customers (Mothersbaugh, Kenneth, & Best, 2007).
A study conducted by (Khan & Dhar, 2010) finds that purchasing bundle is more likely on
sale discount particularly offered to hedonic rather than utilitarian component. This finding
concludes that promotion is more effective in making purchases, this is in line with study by
(Kivetz & Zheng, 2017) that promotional program gives significant effect to purchase
decisions. The second factors influencing purchase decision is price. Price as heuristic cues is
more easily observed than quality (Yoon, Oh, Song, Kim, & Kim, 2014). While, according to
(Wijaya, 2011) price is amount of money to be paid by customer to obtain product benefits.
Reasonable price results in greater value by customer (Lee, 2013) and can increase purchase
decisions of consumers (Jiani, 2017) and (Jang, 2007). If price offered in accordance with
benefits perceived by consumers, they will make purchase decision easily.

TITLE OF THE PAPER : Promotion mix really help to enhance brand

equity

AUTHOR : Sandeep Thakur

JOURNAL : Business and Management Research

DOI :10.18843/ijcms/v8i2/11

YEAR : 2017

ABSTRACT

In the modern marketing, promotion is the most familiar strategy used by the various business
organizations to fascinate the customer. Promotional mix is a critical approach to enhance the
sales that are why companies try to do some more attractive, influencing promotion through
various media. The prime motive of the article is reviewing the promotions mix elements
significance (advertising, personal selling, public relations and direct marketing, sale
promotion) to brand equity dimensions. The result endorses that promotional mix component
helps to enhance the brand equity. No doubt, promotion mix elements have a dynamic and
significant impact on brand equity, but studies also recommended that monetary promotion
might harm brand image which can be a negative effect on brand equity creation. This article
discusses the significance of promotion mix element to brand equity.
TITLE OF THE PAPER : MARKETING MIX

AUTHOR : Mohammed; S., Tur, A., Andrés

JOURNAL : (IJTSRD)

VOLUME :2

YEAR : 2007

ABSTRACT

Mohammed; S., Tur, A., Andrés (2017) mentioned that services have four main characteristics
that influence the development of marketing programs: intangibility, inseparability, and
variability. These features have resulted in an extended marketing suite for all services. de
Guzman, C., D. (2016) mentioned that his study had its theoretical underpinnings on the
Marketing Mix theory of McCarthy which was often referred to as the 4Ps – Product, Promotion,
Place and Price. McCarthy’s model can be utilized in both longterm strategies and short-term
tactics. The marketing mix can be altered depending on the type or nature of the business and
differ from business to business (Palmer, 2004 In Goi, 2009). Yasanallah, P., Vahid, B. (2012)
considered that in reality, marketing mix isa set of tools by which entities achieve their
marketing goals in their target markets. Bowman, D., Gatignon, H. (2009) found that marketing
mix models help to understand how customers respond collectively to marketing activities and
how competitors interact. Appropriate models can be the basis for better marketing decisions.
The aim of the article is to analyze the marketing complex 7 P theoretical aspects.

TITLE OF THE PAPER : ELEMENTS OF MARKETING MIX

AUTHOR : Kusumawati,

JOURNAL : (IJTSRD)

VOLUME :5

ABSTRACT

Kusumawati, R., D., Oswari, T., Utomo, R., B., Kumar, V. (2014) mentioned that partial test
results showed that the single price variable influences consumers ’intentions to purchase a digital
music product online , but the results of concurrent testing results where all variables in the
marketing mix, consisting of product, price, promotion, place, people, evidence of the object.
Constantinides, E. (2006) argues that the documents identify two main blends of marketing as
management tools, constraints common to all areas under consideration, namely, internal model
orientation and non-personalization. Rathod, M., K. (2016) considered that the concept of
Marketing Mix helps marketers to review and define key issues such as Product, Price, Place,
Promotion, People, Process & Physical evidence that affect the marketing of their tangible
offering (Products) and intangible performances (Service). As a tool of marketing strategy to
review competition in the market, the service marketing mix which also known as extended
marketing mix is an significant part of a service plan which essential for optimum service
delivery. Abril, C., Cínov, R., B. (2016) stated that the the most effective marketing tools to build
private label brand ownership are private label communication in the store, private label
distribution intensity, and perceived price. Kwok, L., Tang, Y., Yu, B. (2020) mentioned that
marketing mix later, extended the 4 Ps model by adding three Ps, including Participant (or
People), Physical Evidence, and a more comprehensive and detailed framework in analysing a
service product’s marketing mix). Besides its ability to assess the critical marketing elements of a
service product, the 7 Ps Model can also be applied to other areas as a generic marketing
framework in such inquiries as qualitative content analysis, and big data analytics for
business/marketing intelligence.

TITLE OF THE PAPER : E-MARKETING MIX

AUTHOR : GANDOLFO DOMINICI

JOURNAL : INTERNATIONAL JOURNAL OF BUSINESS AND

MANAGEMENT

VOLUME :3

YEAR : AUGUST 2009

ABSTRACT

The marketing mix paradigm, in its famous version of the 4Ps, went all the way through the
evolution of marketing theory: from the marketing concept, through relationship marketing, to
digital economy, being object of discussion both in academic literature and managerial practice. If
it is a fact that the 4Ps marketing mix is a milestone of marketing theory, it is also true that the
evolution of business contexts has created, in many fields, the need to review the "controllable
factors" which form the marketing mix. The digital business represents the more recent of the
business contexts and the one with the greater needs of differentiation of the mix. Throughout this
evolutionary process, researchers have always been divided between the "conservatives", who
think the 4Ps paradigm is able to adapt to the environmental changes by including new elements
inside each "P", and the "revisionists", who affirm that the 4Ps paradigm is obsolete and propose
new paradigms. This paper aims to clarify these two different approaches to marketing mix
evolution through a review of the main literature on e-marketing mix, focusing on the
development of marketing mix theory for the digital context.

Recent retail studies, lower sale price proves the improvement of consumer purchases greatly
(Yoon et al., 2014). These findings provide theoretical basis for direct effect hypothesis and
mediation of perceived price on perceived value and purchasing decision. (Lien, Wen, Huang, &
Wu, 2015), (Mulya Firdausy & Idawati, 2017) mention that prices have positive effect on
purchasing decisions made by consumers directly. It can be said that in purchasing decision, price
is a direct effect for consumers to decide making purchase or not. However, brand image
mediating price to purchase decision.

The third factors affecting purchase decision is brand image which is called as mediating variable.
Brand image is interesting to use as mediating variables because brand image is one thing easily
for consumers to remember (Sari & Djatikusuma, 2013). While according to (He, Sha, & Yang,
2013) brand image is overall perceptions of a certain product, seen from understanding
information of a product. Brand image is also to help consumers to recognize their need and
desire of certain brand and to differentiate one product with other products (Anwar & Gulzar,
2011). The better brand image, the more positive costumer’s attitude toward that products
(Aghekyan-Simonian, Forsythe, Suk Kwon, & Chattaraman, 2012).

The similar result of a study conducted by (Lien et al., 2015)shows that brand image has a
positive effect on purchasing decisions. (Ryu, Han, & Kim, 2008) reports that image of a
restaurant gives positive influence and improve profitable as the willingness of custumers to buy.
(H. Bin Chen, Yeh, & Huan, 2014) examine a nostalgic consumption in a restaurant and shows
that image of restaurant has a positive impact on consumer purchasing decision. A good brand
image boosts consumer confidence because it can reduce the risk of purchasing (Y. H. Chen, Hsu,
& Lin, 2010) and (Jang, 2007)
 CHAPTER – III
INDUSTRY PROLIFE
&
COMPANY PROFILE
F&B INDUSTRY IN INDIA
India is expected to become the fifth largest consumer market in the world by 2025, according to
paper prepared by the Confederation of Indian Industry (CII) and Grant Thornton.

Food and beverages is the biggest of the consumption categories. The F&B sector is supported
by the vast agriculture sector: India is the biggest producer of pulses, and the second biggest
producer of rice, wheat, sugarcane, and fruits and vegetables.

It is also the biggest producer of milk and buffalo meat and ranks fifth in poultry production.
The other helpful factors: large extents of arable lands, favourable climate, long coastline, and
low wages. The liberalisation of the economy in the early 1990s minimised business barriers.
The sector has found more avenues to the market with the development of modern retail systems
such as supermarkets. Meanwhile, transportation and storage logistics have improved.

The huge population (1.27 billion in 2015) and the burgeoning middle class are the other
advantages for the industry. About half the population is under 30 years of age, and many of
them start to earn early and strive to lead a better quality of life.
The higher income levels of consumers give them higher disposal incomes. Lifestyles have
changed, and more families are eating out and trying out different cuisines. Working couples are
increasingly purchasing convenience foods.
Consumers have become more discerning and those in urban areas particularly trust branded
foods for their promise of quality.
A section of consumers have become extremely health conscious. This segment is moving
towards protein-rich foods and fruits and vegetables from carbohydrate-rich or fat-laden items.
Quality-conscious customers have taken the bottled water market to $50 million.
The F&B industry would do well to adopt global standards of quality and safety to earn more
consumer trust. The need of the hour is the introduction of Total Quality Management principles.

Online Food Delivery Market: Global Industry Analysis 2015 To 2020 And Opportunity
Assessment 2021 To 2027

Global Online Food Delivery Services Market: Global Size, Trends, Competitive, Historical &
Forecast Analysis, 2021-2027- Increasing number of working population and busy schedule,
rapid growth of internet and improvement in telecommunication infrastructure are some of the
major factors driving the growth of Global Online Food Delivery Services Market.

Global Online Food Delivery Services Market is valued at USD 108.6 Billion in 2020 and
expected to reach USD 198.8 Billion by 2027 with the CAGR of 10.6% over the forecast period.

Major players in the global online food delivery services market are Cavlar, Deliveroo, Delivery
hero, DoorDash, Domino’s, Eat24, Ele.me, Foodpanda, GrubHub, Just Eat, Takeaway.com, Uber
Eats and others.

Online food delivery is the process of ordering food from a website or mobile applications. The
product can be either ready-to-eat food or unprepared food for direct consumption. Citizens
around the country are increasingly turning to online ordering and other low-cost purchasing
options. Convenience is the biggest appeal to consumers, as placing an order requires just a few
clicks on mobile devices such as smartphones, tablets, or laptops. Food prepared by restaurants,
food prepared by independent individuals, and groceries ordered online and picked up or
delivered are all part of the online food delivery service market. Online food delivery services
can either be responsible for recruiting and training professional delivery people, or they can also
resort to crowdsourcing logistics, using delivery people who are not necessarily employed by the
online food delivery platform. The first online food delivery service was started by
PizzaHut.com in January 1994. The online food delivery services market is growing rapidly in
today’s digital market setup.

During the Covid-19 pandemic, the careful steps taken by governments of different nations have
led to the temporary suspension of online food delivery services. However, problems like
shortage of food inventory, unavailability of public transport, reduced hours at grocery and
supermarkets can be related largely to the fact that there is a rapid increase in the number of
online food apps that allow people to order meals online and have them delivered to their homes
or picked up without having to visit the restaurant. Ordering food online will also help to reduce
the spread of the Covid-19 virus by reducing customer-seller contact, resulting in a safer climate.

The India online food delivery market is expected to exhibit a CAGR of 28.9% during
2022-2027. Keeping in mind the uncertainties of COVID-19, we are continuously
tracking and evaluating the direct as well as the indirect influence of the pandemic. These
insights are included in the report as a major market contributor.

Online food delivery assists individuals in ordering and receiving the desired food
products at the doorstep. It involves browsing the website or application, selecting from a
wide variety of cuisines available and making the payment  through different methods.
The website/application updates the user about the expected duration of food preparation
and delivery. These features, in confluence with attributes such as ease, speed and
precision of delivery, are increasing the demand for these services in India.

 India Online Food Delivery Market Size, 2022-2027 (in US$ Billion)

202220232024202520262027050100150200

imarcgroup.com

2022 159 159

2023 168 168

2024 176 176

2025 185 185

2026 193 193

 imarcgroup.com

2027 200 200

Note: Values and trends in the above chart consists of dummy data and are only shown
here for representation purpose. Kindly contact us for the actual market size and trends.

The market is currently witnessing growth on account of the increasing access to high-
speed internet facilities and the boosting sales of smartphones. This, in confluence with
the growing working population and inflating income levels, is propelling the online food
delivery market growth in India. Although the players are mainly concentrated in the
urban regions of the country, with Bangalore, Delhi and Mumbai representing the three
largest markets, vendors are now also targeting smaller cities, as they have strong growth
potential.

Moreover, the rising trend of the on-the-go food items and quick home delivery models
that offer convenience, ready-to-eat (RTE) and cheaper food delivery options are
escalating the demand for online food delivery  services in the country. Furthermore,
owing to the rising cases of COVID-19, some of the leading players like Zomato,
McDonald's Corporation and Domino’s Pizza Inc. have introduced contactless delivery
services. These services ensure that the food reaches the customer without being touched
by bare hands and is delivered safely with adequate social distancing measures.

GLOBAL ONLINE FOOD DELIVERY SERVICES MARKET SEGMENTATION:

By Channel Type:

Website

Application

By Type:

Platform-to-Customer
 Restaurant -to-Customer

By Payment Method:

Online payment

Cash on delivery payment

By Regional & Country Analysis:

North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China,
Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and
Africa, GCC, Africa, Rest of the Middle East and Africa

Zomato is a company that offers a restaurant search and discovery app and website, providing in-
depth information about restaurants. Zomato is used by consumers to discover, rate and review
restaurants, as well as create their own personal network of foodies for trusted recommendations. It
has expanded its offering to include Online Ordering, Table Reservations, a Whitelabel Platform,
and a Point-of-Sale system, creating the technology to connect restaurant businesses and customers.

Launched in 2010, Our technology platform connects customers, restaurant partners and delivery
partners, serving their multiple needs. Customers use our platform to search and discover
restaurants, read and write customer generated reviews and view and upload photos, order food
delivery, book a table and make payments while dining-out at restaurants. On the other hand, we
provide restaurant partners with industry-specific marketing tools which enable them to engage and
acquire customers to grow their business while also providing a reliable and efficient last mile
delivery service. We also operate a one-stop procurement solution, Hyper pure, which supplies high
quality ingredients and kitchen products to restaurant partners. We also provide our delivery
partners with transparent and flexible earning opportunities.
 Zomato is a restaurant search and discovery service founded in 2008 by Deepinder Goyal and
Pankaj Chaddah, headquartered in Gurgaon, Haryana, India. It currently operates in 24 countries,
including India, Australia, and United States. It provides information and reviews on restaurants,
including images of menus where the restaurant does not have its own website. Zomato provides a
user-friendly environment to consumers where they can review, rate, share and search the favorite
or nearby restaurant. Zomato was awarded as Startup of the year in 2014 by ET. Google awarded
Best Top Developer Badge to Zomato in 2016. Zomato has recently launched user’s choice award
in Delhi national capital region, Mumbai, Pune, Bengaluru, Chennai, Hyderabad and Kolkata.
Launched in Delhi 11 years ago, Zomato has grown from a home project to one of the largest food
aggregators in the world. We are present in 24 countries and 10000+ cities globally, enabling our
vision of better food for more people. We not only connect people to food in every context but
work closely with restaurants to enable a sustainable ecosystem. Back in 2008, all it took was an
idea to enable digital access to thousands of restaurant menus. Three passionate foodies who hated
waiting in lines, drove around Delhi to collect menus from restaurants, scan them and put them
online. Their idea has now grown into the vision that drives our team of 5000+ people every day.
Zomato was founded as Foodie bay in 2008. It was renamed Zomato in 2010. In 2011, Zomato
expanded across India to Delhi NCR, Mumbai, Bangalore, Chennai, Pune and Kolkata.
Subsequently, in 2012, the company expanded operations internationally in several countries like
the United Arab Emirates, Sri Lanka, Qatar, the United Kingdom, the Philippines, and South
Africa. In 2013, Zomato was launched in New Zealand, Turkey, Brazil and Indonesia, with its
website and apps available in Turkish, Brazilian Portuguese, Indonesian and English languages.
Further in April 2014, Zomato launched its services in Portugal, followed by launches in Canada,
Lebanon and Ireland in the same year. The acquisition of Seattle-based food portal Urban spoon
marked the firm's entry into the United States, Canada and Australia, and brought it into direct
competition with Yelp, Zagat and OpenTable. With the introduction of xxx domains in 2011,
Zomato also launched Zomato. XX, a site dedicated to food porn. It later launched a print version of
the website content named "Citibank Zomato Restaurant Guide" in collaboration with Citibank in
May2012, but it has since been discontinued. With its cloud kitchen, the company aimed to help
restaurants to expand their presence without incurring any fixed costs. Later in September 2017,
Zomato claimed that the company had "turned profitable" in the 24 countries operated in and
announced that the "zero commission model" to be introduced for partner restaurants. Towards the
end of 2017, Zomato stopped accepting updates from its active users by not utilizing moderators to
verify and make updates. Restaurant information was not updated. Users of the purported issues
with new features to pay for orders. Zomato narrowed down its losses by 34% to
₹389Cr[clarification needed] for the financial year 2016–17, from ₹590.1 Cr crore[clarification
needed] ithe previous year 2015-16. In September 2019, Zomato fired the highest number (541
people) of employees almost 10% of workforce working on back-end activities like customer
service, merchant and delivery partner support functions.

VISION:

We want to be the ‘Google’ of food.

Our vision is tobe the global platform when someone is looking for food locally.

MISSION STATEMENT:
Shaping the future of food
Our mission is to ensure nobody has a bad meal

TAGLINE:
Discover great places to eat around you
GOALS:
Our goal is to change what you eat.
Changing how you eat is just a means to an end.
VALUES:
Resilience:
We push ourselves beyond our abilities whenfaced with tough times. When
weforeseeuncertainty,
we address it only with flexibility.
Acceptance: Feedback is never taken personally, we break it into positive pieces and strive to
work on each and every element even more
effectively.
Ownership:
People here don’t work ‘for’ Zomato, they work ‘with’ Zomato.
We treat every problem as our own, take accountability and drive the change.
Humility:
It’s always ‘us’ over ‘me’. We don’t lose ourselves in pride or confidence during individual
successes, but focus on being our simple selves in every which way.

Spark:
We believe in, stand for and are evangelists of our culture - both, within Zomato and externally
with all our stakeholders.
Judgment:
It’s not our abilities that show who we truly are - it’s our
choices. We aim to get these right, at least in the majority of the cases.

Startup name Zomato

Headquarter Gurugram, India

Sector Food delivery

Founders Deepender goyal, gaurav gupta, pankaj chaddah

Founded 2008

Valuation $540.61 mn (rs 4192.4 crore in fy22)

Total funding $2.1 billion

Parent organization zomato™ media pvt ltd.

Website zomato.com
Between 2010 and 2013, Zomato raised approximately US$16.7 million from Info Edge India,
giving Info Edge India a 57.9% stake in Zomato.

In November 2013, it raised an additional US$37 million from Sequoia Capital and Info Edge
India.

In November 2014, Zomato completed another round of funding of US$60 million at a post-money
valuation of ~US$660 million. This round of funding was being led jointly by Info Edge India and
Vy Capital, with participation from Sequoia Capital.

While in April 2015, Info Edge India, Vy Capital and Sequoia Capital led another round of
funding for US$50 million. This was followed by another US$60 million funding led by Temasek,
a Singapore government-owned investment company, along with Vy Capital in September.

In October 2018, it raised $210 million from Alibaba's payment affiliate Ant Financia, which
received an ownership stake of over 10% of the company as part of the round, which valued
Zomato at around $2 billion. Zomato had also raised an additional $150 million from Ant
Financial earlier in 2018.

In September 2020, Zomato raised $62 million from Temasek, after previously committed capitol
from Ant Financial never came through.

In October 2020, as part of a Series J round of funding, Zomato raised $52 million from Kora, a
US-based Investment firm.

In February 2021, Zomato raised US$250 million from five investors, including Tiger Global
Management, at a valuation of US$5.4 billion.
MANAGEMENT AT ZOMATO

DEEPINDER GOYAL - FOUNDER & CEO

PANKAJ CHADDAH - CO – FOUNDER

AKRITI CHOPRA - CFO

GAURAV GUPTA - COO

PRAMOD RAO - SVP MARKETING

Zomato - Hyperpure

Hyperpure by Zomato is changing the way restaurants work. It is Zomato’s B2B foodtech
vertical. Hyperpure allows restaurants to buy everything online from vegetables, fruits, poultry,
groceries, meats, seafood to dairy and beverages. It claims to be working directly with farmers,
mills, producers, and processors to source these products thus ensuring quality and consistency.
It is an initiative by Zomato to provide fresh, hygienic, high-quality ingredients and supplies.

ACQUISITIONS

Zomato has acquired 12 startups globally.

In July 2014, Zomato made its first acquisition by buying Menu-mania for an undisclosed sum.

The company pursued other acquisitions including lunchtime.cz and obedovat.sk for a combined
US$3.25 million. In September 2014, it acquired Poland-based restaurant search service
Gastronauci for an undisclosed sum.

In December 2014, it acquired Italian restaurant search service Cibando.

It acquired Seattle-based food portal, Urbanspoon, for an estimated $60 million in 2015.

Other acquisitions of 2015 include Mekanist in an all-cash deal,[58] the Delhi-based startup
MapleGraph that built MaplePOS (renamed Zomato Base),[59][60] and NexTable, a US-based
table reservation and restaurant management platform.

In 2016, it acquired Sparse Labs, a logistics technology startup, and the food delivery startup,
Runnr, in 2017 (renamed from Roadrunnr when it acquired TinyOwl in 2016).

In September 2018, it acquired Bengaluru-based food e-marketplace, TongueStun Food, for

about $18 million in a cash and stock deal.

In December 2018, it acquired a Lucknow-based startup, TechEagle Innovations, that works

exclusively on drones, for an undisclosed amount. Zomato claimed that the acquisition will help
pave the way towards drone-based food delivery in India, building technology aimed at a hub-to-
hub delivery network.

On 21 January 2020, Zomato acquired its rival Uber Eats' business in India in an all stock deal,
giving Uber Eats 10% of the combined business.On 29 June 2021, the firm signed a deal with
Grofers to invest nearly $120 Million in the online grocery firm by acquiring 9.3% stakes of the
company.
FINANCE
 Revenue (In
Year Profits/Loss (In crores) Total Assets (In crores)
crores)

FY 2011 0 -1.09

FY 2012  2  -7.6

FY 2013  12  -10

FY 2014  36  -37 Not revealed

FY 2015  96.7  -136

FY 2016  185  -492

FY 2017  399  -389

FY 2018  466  -103.68  1,374

FY 2019 1313  -965.23  3,413

FY 2020  2605 -2367.16  2,900

FY 2021  1994  -812.82  8,704

AWARDS & RECOGNITIONS

 ET Startup Awards 2021: This big-bang year belongs to Zomato

 Won top honors at the seventh edition of India's most prestigious awards for

entrepreneurship — The Economic Times Startup Awards

 2015 ASIA-PACIFIC GOLD WINNER - ZOMATO

 CHAPTER – IV

DATA ANALYSIS

&

INTERPRETATION
WHAT ARE THE BENEFITS OF ZOMATO'S MARKETING STRATEGY?
Zomato is the largest restaurant guide in India. It searches for restaurants by area, or by cuisine to
enable users to find their next meal through zomato. Additionally, zomato offer zomalist
subscription service to its customers which includes online ordering and table management features.
zomato launched zomaide in 2014, an iPad-based point of sale system which also offers cashless
payments features Zomato’s marketing strategy can be seen as one of the biggest reasons behind
such success story.

Zomato recently acquired hyperlocal start-up urban spoon that enabled zomato expand its business
into international market It also bought us polo, an online ordering platform for restaurants just
before acquiring Urban spoon which helped zomato decrease customers’ dependency on food
aggregators like JUST EAT, TABLOFOOD etc. just to increase zomato’s digital marketing efforts
where zomato offers free deliveries to its customers on their first purchase.

The digital marketing strategies adopted by zomato helped it become the most popular food delivery
app, especially in metropolitan cities like Delhi, Mumbai and Bangalore.

Moreover, zomato is constantly working towards strengthening its online ordering arm by acquiring
new companies like uspolo and zomalist plus zomato has evolved new features like cashless
payments through wallets like Paytm which help zomato strengthen its foothold in digital field
zomato will definitely make the most of these opportunities and expand its market share further.
1. HOW DOES ZOMATO USE THEIR MARKETING STRATEGY TO INCREASE
SALES

Food offerings 30%

Customer experience 15%

Social media 45%

Marketing campaigns 10%

INCREASE SALES

Food offerings Customer experience

Social media Marketing campaigns

INTERPRETATION

The above table and graph showing that 45% of the respondents come to increase sales through
social media, 30% food offerings 10% of the respondents marketing campaigns, from customer
experience 15% of the respondents.
2. SEARCH ENGINE MARKETING OF PROMOTION MIX

Keyword Targeting 50%

Geographic Targeting 18%

Device Targeting 4%

Search Engine Marketing 28%

Chart Title

Search Engine Marketing 28%

Device Targeting 4%

Geographic Targeting 18%

Keyword Targeting 50%

0% 10% 20% 30% 40% 50% 60%

INTERPRETATION

The above table and graph showing that 50% of the respondents are Key word targeting, 28 %
of Search Engine Marketing 4% of device targeting, 18% of Geographic targeting.
3. HOW DOES ZOMATO USE ITS WEBSITE TO PROMOTE RESTAURANTS

Search Engine Marketing 28

Social Media marketing 68

Email marketing 4

Chart Title

68

70
60
50
40 28

30
20
4
10
0
1

Search Engine Marketing, Social Media marketing Email marketing

INTERPRETATION

The above table and graph showing that, how does Zomato use its website for promotional
activities in markets are like 28% of Search Engine marketing , 68% of social media marketing,
and from E mail marketing only 4% which is very low.

4. DIGITAL MARKETING CHANNELS USED BY ZOMATO

 TV advertisements 15%

Radio commercials 4%

Digital marketing 32%

Online marketing 28%

Print media marketing 21%

INTERPRETATION

The above table and graph showing that, digital marketing channels are TV Adv. are low 15%
very low media is Radio commercials and high impact media is Digital Marketing 32%
Promotion Mix

Promotion Mix is used to identify, create & deliver the best marketing message for your target
market. Promotion mix consist of Product marketing, place marketing & advertising marketing
which play most important role in creating effective marketing strategy for zomato marketing .
Marketing research helps marketers understand their target customers and create most effective
marketing message through promotions.

Different types of promotion tools are – Public Relations, Personal Selling, Advertising, Direct
Marketing etc which help zomato marketing team to promote business brand or products among
customers so that it can be noticed by them and increase their brand recognition.

PROMO ACTIVITIES

Various types of promo activities for zomato marketing are

 Personal selling, marketing research, advertising marketing among which marketing

research can provide insights into what products will be well-received through testing
different features or designs with focus groups, surveys etc
SECRETS BEHIND ZOMATO’S WINNING MARKETING STRATEGY

1. Notifications for every mood

Nowadays, apps use notifications and timely messages to grab attention, but if the message is too
pushy, customers are more likely to ignore it or even go a step further to block it. Zomato
ensures that even its notifications are interesting and something the customer will look forward
to. Its cheeky humor was even noticed by superstar Hritik Roshan, who shared the below-
mentioned screenshot. Not only does it add humor, but it also delivers the message in a way that
is subtle yet interesting.

2. Emails that grab attention

Many brands make continued efforts to create email marketing strategies that will help strike a
chord with its target audience. Zomato does this not just by releasing offers and other key
communication, but also by maintaining brand loyalty using witty one-liners in its subject lines
(not to mention the body text that is equally arresting).
3. Relatable social media memes

On social media, Zomato is a name to reckon with, not only for its services, but the incredible
content it creates to interact with its large customer base. The brand not only posts memes
relating to external topics, but it has the ability to make fun of itself too. Take its Twitter profile
for example, which is full of hilarious content, all of which ultimately focuses on the brand’s
offerings.

Zomato runs Search Ad Campaign using Google Adwords. It targets keywords related to food,

ordering online, names of restaurants and much more. It targets users whose intent is to get some

food delivered to them. It also runs Google Display ads to target users on third party websites

and apps.
 CH-V
FINDINGS
&
SUGGESTIONS, CONCLUSION

FINDINGS

 Digital marketing techniques are more using tool in market from Zomato
  Search Engine Marketing playing an important role of promotion mix

 All the respondents are who are participated in the survey are ordering food through

online are knowing from offers.

 90% of the respondents are opined that Zomato Company comes first to mind while

here the word food ordering app

SUGGESTIONS
  As 4’ps of promotion mix of Place, Product, Promotion, Price: Digital marketing

promotion plays a role.

 The online food ordering apps have to improve their restaurants sites and menus to satisfy

the consumer in a better way.

Promotion mix plays a very important role in the purchase of a online ordering foods as most

Customers are like to purchase because of advertisements in social media platforms.

CONCLUSION
  SALES PROMOTION is a promise made to the consumers & retailer by the

company.

 The challenge in front of Indian organizations today is to first understand and then

satisfy the needs of the customers.

 The needs of the customers today are experiences and not just the products.

The Indian Organizations have to concentrate on delivering the experiences to the customers

leading to satisfaction and association with all the dimensions of the brand.

BIBLIOGRAPHY
BOOKS:

1. Saxena, Ranjan, ‘Marketing Management’, TATA McGRAW HILL, New Delhi, Third
Edition.
2. Kotler, Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha,‘Marketing
Management’, PEARSON Prentice Hall, New Delhi, Twelfth Edition.
3. Ramaswamy, V. S., S Namakumari, ‘Marketing Management’,
MACMILLAN INDIA LTD., Third Edition.
4.C.R.Kothari, Business Research methodology , New age publication.
5. Bryman, Alan, Emma Bell, ‘business research method’, OXFORD, second Edition.

MAGAZINES, JOURNALS & NEWS PAPERS

1. Business world.
3. Economics Times.

Websites:

www.zomatoindia.com,
www.wikipedia.com,
www.google.co.in,
www.scribd.com