SUBSCRIPTION MODEL

GROUP-7

Mohan Sri Ram 18PGP099

Taru Choubin 18PGP
Nikhil Ranjan Pandey 18PGP110
Vatsal Garg 18PGP123
Shefali Tirkey 18PGP
Nishant Yadav 18PGP135
Ashish Ramteke 18PGP148 1
Introduction-Subscription Model

• Subscription Model

Product/Services Periodically

Company Periodical Payment Customer

Zomato Gold-Subscription Model

Exclusive membership program that offers Gold users a complimentary dish or

complimentary drinks every time they go out

This membership can be used at any Gold partner restaurants and bars for an unlimited
number of times at little/no extra food cost.
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Zomato Gold-Cost & Benefits

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…Cost & Benefits…

Pre Gold Post Gold
Total Capacity 100 Seats Total Capacity 100Seats

Weekdays 50(Mon,Tue,Wed,Thus)
Weekdays 40(Mon,Tue,Wed,Thus)
Weekends 90(Fri, Sat, Sun)
Weekends 80(Fri, Sat, Sun)
Average for two ₹ 1,000.00 Rs. 500 per person
Average for two ₹ 1,000.00 Rs. 500 per person Discount 35%(Only to Extra people who came due to Gold)
Discount 0% Expenses (Only Food) 30% of Rev

Expenses(Ony Food) 30%of Rev

Seats occupied in Weekdays 200

Seats occupied in Weekdays 270

Seats occupied in Weekdays 160 Revenue Generated ₹ 2,35,000.00
Seats occupied in Weekdays 240 Expenses ₹ 70,500.00
Revenue Generated ₹ 2,00,000.00
Expenses ₹ 60,000.00 Discount ₹ 12,250.00 (Only to 10 people who came due to Zomato Gold)

Profit ₹ 1,40,000.00 (Per week) Profit ₹ 1,52,250.00 (Per week)

Analysis

Profit For Restaurant ₹ 1,52,250.00 ₹ 1,40,000.00

₹ 12,250.00 (Per week)

 …Cost & Benefits

For Zomato
 Hyderabad, Pune, Delhi-NCR, Mumbai and Bangalore
has crossed 250,000 subscribers for around 4000+
restaurants
 Avg. Cost is around ₹1,000 per subscriber.
 So, Total amount which Zomato is getting is around
₹25 crores or ₹62,500 from each store.(for a year)
 More Predictable income for Zomato

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 Sustainability of Subscription Model-

There are certain challenges that Zomato Gold

needs to overcome for making this a success-
 Positioning Gold well within Zomato with clear
communication

 Restaurant partners have to pay for joining Gold,

with really low ROI

 If popular restaurant won’t join, converting second

will become difficult

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 Increasing competition in the hotel industry
 To give strong competition it will require a viable customer acquisition strategy
If Zomato Gold is able to overcome these challenges, then it sustain for a longer run. But with increasing profit and
market share, there will be increase in competition in this segment from new players with new ideas and technologies,
which makes continuous development in its infrastructure and strategy a key aspect.