Professional Documents
Culture Documents
Zomato 1
Zomato 1
INTRODUCTION
ZOMATO is the brainchild of Mr. Deepinder Goyal and Pankaj Chadda who were colleagues in
‘Bain And Company’. The idea to start ZOMATO came from the demand for menu cards to
order food among their colleagues. Mr. Deepinder Goyal and Pankaj Chadda initially started a
database for food menu named “Foodiebay” in 2008 which soon had gone live with menus of
1200 restaurants in Delhi NCR (INDIA) by July 2008. Later the name was changed into
ZOMATO (to avoid any legal implication as the name Foodiebay has Ebay annexed with it) in
November 2010 which is now the largest restaurant detecting platform in India listed with more
than 4200 restaurant across 12 cities in the country. And internationally it has lists of about 1.4
million restaurant across 10,000 cities in and at present it operates in 23 countries, including
India, Australia and the United States. ZOMATO got its first funding of $1 million from Info
Edge and it’s also ZOMATO’s largest shareholder. ZOMATO has over 2000 passionate Zomans
strong across 23 countries, and this number is increasing day by day. ZOMATO is widely used
by internet users who want information for dining and delivery options. ZOMATO is capturing
customers by providing all the information a customer can need before going to a restaurant or
ordering foods online. ZOMATO is following affiliate marketing model with website and mobile
apps. Customers who are ordering foods online can pay through debit cards, credit cards and net
banking. ZOMATO has also partnered with Paytm, PayPal, and Freecharge to enable online
payments. For marketing purpose, ZOMATO’s key strategy is it’s friendly website with up-to-
date information of the restaurants. It also has a global mobile application from where it gets
more than 50% of its total traffic.
ZOMATO AT A GLANCE
3.ZOMATO base – ZOMATO Base is a cloud-based POS system to help you manage your
restaurant operations from a single platform
Search & discovery services don’t charge for listing an entity with them.
OPERATIONAL MODEL
The main reason behind the success of ZOMATO was the listing of 1.4 million restaurants across
10,000 cities & 22 countries with an exclusive/extensive range of food menus/customizes food
menus and up to date information about restaurants. The incarnation of smart phones & internet
penetration plays the leading role in its success. The business model & and the operation of
ZOMATO is very unique & creative. Sustainable price of the products & expansion of operation
in a calibrated (standardized manner) has put ZOMATO the Global Map. It rebranded its logo to
go beyond cultures. Geographic boundaries & languages.
User Restaurants
Revenue Model
80% 70%
70%
60%
50%
40%
30% 10%
20% 5% 5% 5%
10%
0%
Revenue Model
1. Restaurant advertising : Banner ads of restaurant on the website accounts for 70% of
ZOMATO’s revenue.
2. Event advertising: When specific events promote an event on ZOMATO and it comes
from restaurant based advertiser. It accounts for 5% of their revenue.
3. Event ticket sale: Commission of ticket sale through ZOMATO, primarily for restaurant
venues accounts for 15% of revenue.
4. Consulting service: Account for 5% of revenue.
5. Food order commission: New addition of ZOMATO which account for 5% of revenue.
FINANCIAL MODEL
Fund Raising:
ZOMATO’s business model is based on acquiring funds. In order to achieve its goal to hit the
billion dollars plus valuation, ZOMATO has raised a total of $225 million in eight rounds
Of funding since its launch in 2008.Its five rounds of funding have been as follows:
Technological development
Cashless payment
Strategic Partnership
Payment Model:
ZOMATO has introduced online payments for ordering food in select restaurants in
India. The latest version of the iOS and Android application allows users to pay for
their orders through debit cards, credit cards and net banking.
Users can either scan their card details or enter them manually.
The company also introduced ZOMATO Credits where users can get referral points
and refunds.
It also launched ZOMATO Order, a separate app for ordering food. In app & online
payment options do not show up on it as yet.
ZOMATO also has also partnered with Paytm on September 2015. This would let
users pay for their online orders using the Paytm Wallet, in addition to the existing
payment options of credit/ debit cards, net banking, and cash on delivery. Paytm's
Wallet is the first mobile wallet to be integrated into ZOMATO. Through this
customer would experience smooth, seamless payment.
Customers across 10 cities can now seamlessly pay for their Online Food orders, in
less than 10 seconds using the Freecharge digital wallet - across all the platforms on
ZOMATO. Through this partnership Freecharge will enable thousands of
consumers who place an average of 32,000 orders a day, across over 11,000
restaurants on ZOMATO, to adopt digital wallet.
Marketing Model:
The key factor for ZOMATO is its marketing strategy and its featured & user friendly website.
They also have a Global mobile application for Google Android operating system, Windows
phone, IOS and Blackberry devices as people using smart phones are increasing day by day and
people are more likely to do the search from their mobile.
Marketing tools:
I. Online Tools: Search Engine Optimization (SEO), Search Engine Marketing (SEM).
II. Offline Tools: Attractive, colorful and good Quality pamphlets, Word of mouth, OOH,
B2B Marketing, Press etc.
III. Broadcasting Tool: Occasionally use TV advertising during high activity period like
DIWALI, NEW YEAR & other festivals.
IV. Social Media: ZOMATO uses different platforms to engage user with them.As on
August, 2016 -
a) ZOMATO has more than 600k strong Facebook community.
b) 1288337 likes on Facebook.
c) 309k Followers in Twitter.
d) ZOMATO use blog as a mouthpiece to share & update all latest Updates.
e) Share the food experience with 457 followers in Pinterest with great content to
attract customers.
f) Share foodie photographs in Instagram by using #ZOMATO and it has 39.9 k
followers.
V. Direct Marketing:
a) SMS: 6 sms per day for one month to 6 lakh unique customer at first stage.
b) Direct Mail: Effectively reached corporate in bulk & professional employees
which are primary target.
c) Sales Promotion: Coupon and price offers.
VII. Collaborations:
Paytm
Uber
Food Bloggers
Mobiwik
Delhivery
Freecharge.
Restaurants
OOH Pinterest
B2B Advertising Instagram
Press Blog
Threat
Strength
Weakness
Opportunity
Trained people for Low turnover market for potential
making delivery. of content potential
customers.
competitors
International Diverse app
understanding of Global .
features.
business. Not Expansion.
Better customer Customized for Delivery
support. each target Service.
Wide range of market.
restaurants.
Innovative culture.
Financial leverage
Technology.
3. Business Timeline :
3.1 Business Growth:
ZOMATO has been through a significant growth in the way of their journey of being India‘s best
start up company and Global best restaurants discovery platform.
2016
2013-
15
2012
ZOMATO ranks
as the top 2
Accuire startup for India
Urbanspoon in in the
201 First overseas USA and other
locaion in UAE acquisition in StartupRanking.
1
and then Srilanka, many countries
2008
Qatar and UK. and expand
business in 23
Started coverage in counries.
Bengaluru, Pune,Chennai
Hyderabad&Ahmedabad.
Founded Launched application for
foodiebay(later iOS,Android, Windows
named Phone,BlackBerry.
ZOMATO) and
listed restaurents
in Delhi NCR,
Kolkata &
Mumbai.
ZOMATO Media Private Limited, the owner company of ZOMATO, has filed its latest revenue
figures with the Registrar of Companies. It has reported revenue of Rs. 95 crores in FY 2014-15.
This is more than 2.5 times the previous year’s revenue of INR 36 crores. Out of the reported
revenue of Rs. 95 crores in FY 2014-15, Rs. 78 crores has been reported as ‘Revenue from
advertisements ‘. Remaining Rs. 16 crores is reported to be from other sources, these include Rs.
14.7 crores from ‘Net gain on sale current investment’ and Rs. 1.4 crores from bank deposits.
The company incurred expenses of Rs. 166 crores in FY 2014-15, thus making a loss of Rs. 72
crores as compared to a loss of INR 37 crores in the previous fiscal.
100
80
60
40
INR Crores
20
0
FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15
-20
-40
-60
-80
1500
1000
500
0
2008 2009 2014 2015 2016
ZOMATO has acquired nine companies since July 2014 in countries as far apart as in Czech
Republic Turkey and US.A glimpse of its acquisition is given below:
For acquiring customer, along with some macro-level indicators, they do on ground research
across several metrics like data collection, merchant, partnerships, user engagement etc. before
entering a new market. For example Colombo had fit in into the expansion plans, as it required
limited product customization for local market, allowing ZOMATO to replicate their business
model seamlessly.
ZOMATO is a revolutionary online restaurant guide, which brings million of customers and tens
of thousands of restaurant businesses together. what makes them better than others is that they
have all the information needed for a customer to decide their next place to eat-out or order in
from-i.e. menus, photos ,maps, reviews, contact information and restaurant features.
OBJECTIVE
The purpose of this case study is to do an analysis of the way Zomato has scaled up its
operations, expanded its business into various countries.
To plan to find out the strengths, weaknesses, future opportunities and threats of their
business model. This will ultimately help us understand the F&B industry and build our
opinions about few business scenarios which will help us build solutions to them.
To know whether people are satisfied with the service of zomato.
RESEARCH METHODOLOGY
More than a set of skills, it is a way of thinking: examining critically the various
Aspects of your professional work. It is a habit of questioning what you do, and a
systematic examination of the observed information to find answers with a view
to instituting appropriate changes for a more Effective professional service.
OBJECTIVES OF RESEARCH
RESEARCH DESIGN
1. Exploratory Research.
2. Descriptive Research.
EXPLORATORY RESEARCH
DESCRIPTIVE DESIGN
RESEARCH PROCESS
The research process has four distinct yet interrelated step for research analysis It
has a logical and hierarchical ordering:
A sample design is a definite plan for obtaining a sample from a given population.
It refers to the technique or procedure adopted in selecting items for the sample.
The main constitution of the sampling design are given below.
Sampling unit.
Sample size.
Sample procedure.
Geographical area covered
Mowa
St. Vincent pallotti college
locality
DATA ANANLYSIS
Parameter Respondents
Often 46
Weekends 25
Once in a month 27
Never 02
Total 100
Respondents
50%
45%
40%
35%
30%
25%
46%
20%
15% 27%
25%
10%
5%
0% 2%
often weakend ones in a month never
Analysis:
In the above graph 46% people often visit the restaurant, 25% in weakends,27%
ones in a month and 2% never.
Interpretation:
The graph gives us a view that maximum number of people often visit the
restaurant.
2. What time of the day do you prefer to eat at restaurant?
Time Respondents
Morning 2
Noon 21
Evening 55
Night 22
Total 100
TIme Prefered
60%
50%
40%
30%
55%
20%
0% 2%
Morning Noon Evening Night
Analysis:
From the above chart ,2% prefer to eat at restaurant in morning,21% in noon, 55%
in evening and 22% at night.
Interpretation:
From the above it shows that most of the people prefer to eat at restaurant in the
evening.
3. Which of the following factors you like more in any restaurants?
Factors Respondents
Service 20
Food quality 52
Ambience 08
Menu 10
Price 10
Total 100
60%
50%
40%
30%
52%
20%
10% 20%
8% 10% 10%
0%
sevice food quality ambience menu price
Analysis:
In the above graph ,it represents that 20% people like service of the restaurant,52% food
quality,8% ambience, 10% menu and 10% price.
Interpretation:
From the above graph it seems that most of the people prefer food quality and service of the
restaurants.
4. What is the main problem you faced at enjoying foods?
Problems Respondents
Lack of information 24
High waiting time 30
Long queues 06
Wrong order 04
High price 36
Total 100
Respondents
40%
35%
30%
25%
20%
36%
15% 30%
24%
10%
5%
6% 4%
0%
lack of information high waiting time long queues wrong order high price
Analysis:
From the above chart ,24% respondents faced main problem at enjoying food due to lack of
information, 30% due to high waiting time, 6% due to long queues ,4% due to wrong order, and
36% due to high price.
Interpretation:
From the above chart it shows that most of the respondents faced main problem at enjoying food
due to high price and high waiting time.
5. How do you order your food?
Order Respondents
Direct call to restaurants 15
Online portal 08
Mobile application 12
Direct walk-in 65
Total 100
70%
60%
50%
40%
65%
30%
20%
10%
15% 12%
8%
0%
direct call to restaurants online portal mobile application direct walk-in
Analysis:
In the above graph 15% order food by direct call to restaurants, 8% order by online portals, 12%
order by mobile application and 65% order by direct walk-in to the restaurant.
Interpretation:
The graph gives us a view that maximum number of people order food by direct walk-in to the
restaurants.
Qualitative analysis
ZOMATO is basically an online food related guidebook. While doing business in Raipur they
can add a new specification to their business. They can add some new features which will give
them competitive advantage to be successful in doing business in Raipur.
SUGGESTION
ZOMATO a very well known company in food delivery industry around world. Now a days, food
habits of Raipur people are changing. They are very fond of testing different foods from different
countries. And to satisfy this hunger of the food lovers, there are many more restaurants being
established. In this case, ZOMATO may have very much profitable opportunity to establish business
in Raipur.
They only provide orderd food to their valued customer. But, along with this service, ZOMATO has
very attractiSve & unique value added services like reservation service, food review etc. With these
value added services it may easily take advantage on its competitors. And another competitive
advantage for ZOMATO is its competitors don’t have that much updated technology like ZOMATO.
Although very few people do order through online but the number is increasing day by day. Because
young generation are very techno freak as their target market. So it’s a huge opportunity for
ZOMATO to attract them easily.
In my survey, I have seen that many more restaurants have appreciated this type of online food
portal. They are very much interested for tying up with this as they will get international
standard service. So, ZOMATO has vast opportunity of investment in Raipur. They may have
to face very low level of risk. They can easily be a market leader with their sophisticated
technology & services.
With the operation of ZOMATO, restaurants business in Raipur will be more flourished which will
contribute in our GDP.
So in the end we may hope that if ZOMATO operates in our country, they may capture the
market easily and restaurant business will be more successful in Raipur.
FINDINGS
From the survey conducted it was concluded that most of the people liking zomato
application.
It was concluded that most of the people are preferring to order food from restaurant
online by zomato application.
Maximum no. of people order snacks from zomato.
From the survey conducted it was concluded that maximum people are satisfied with the
quality service of zomato.
A good number of people are satisfied with packaging of zomato products.
From the survey conducted it was concluded that maximum people are influenced by the
service of zomato.
Maximum number of restaurants are tie-up with the zomato.
Regarding any complains ,consumer mostly prefer to complain online at zomato official
site.
LIMITATIONS
It is hard to extract response from the respondents in busy work and schedule.
Many of the respondents did not submit their form properly filled.
Some people have no knowledge about ZOMATO.
The data gathered cannot be assured that it is according to the government,it is
only the personal view of common people.
The data consumed is of only a limited number of respondents.
The availability of time factor was limited to conduct the study.
Whole population is not covered in the study.
However in spite of these limitations all efforts have been put to make the project
correct, effective and genuine.
SUGGESTION
ZOMATO a very well known company in food delivery industry around world. Now a days,
food habits of Raipur people are changing. They are very fond of testing different foods from
different countries. And to satisfy this hunger of the food lovers, there are many more restaurants
being established. In this case, ZOMATO may have very much profitable opportunity to establish
business in Raipur.
They only provide orderd food to their valued customer. But, along with this service, ZOMATO
has very attractiSve & unique value added services like reservation service, food review etc.
With these value added services it may easily take advantage on its competitors. And another
competitive advantage for ZOMATO is its competitors don’t have that much updated technology
like ZOMATO.
Although very few people do order through online but the number is increasing day by day.
Because young generation are very techno freak as their target market. So it’s a huge opportunity
for ZOMATO to attract them easily.
In my survey, I have seen that many more restaurants have appreciated this type of online food
portal. They are very much interested for tying up with this as they will get international standard
service. So, ZOMATO has vast opportunity of investment in Raipur. They may have to face very
low level of risk. They can easily be a market leader with their sophisticated technology &
services.
With the operation of ZOMATO, restaurants business in Raipur will be more flourished which
will contribute in our GDP.
So in the end we may hope that if ZOMATO operates in our country, they may capture the
market easily and restaurant business will be more successful in Raipur.
CONCLUSION
Zomato has its own innovative style of marketing itself to the future recruits. They have
positioned their workplace as youth and technology centred in such a way that Zomato is
associated with tech savvy young people who likes flexible yet challenging style of working. The
main competitors of Zomato, i.e., foodpanda and Swiggy do not employ as much of online
marketing as Zomato does. For a company that started in 2008, Zomato has come a long way
through its online marketing and by recruiting the right fit for the organization. The single
biggest thing that Zomato looks for in a recruit is passion to do work rather interest in making
money. This is perhaps their success mantra that has achieved them attain great heights. Making
every ‘zoman’ a brand ambassador is indeed a great achievement when a lot of companies are
grappling with the issues of attrition.
Zomato’s revenue model is hugely based on advertising (about 95%) . The sustainability of their
business model will heavily depend on the way they adapt the applications they develop to the
needs of the market. The creativity that they bring in to the products they develop will depend
heavily on the people they hire. As long as Zomato hires the right people in the senior
management as well as at the junior level, they will be able to work up to their vision.
Questionnaire for Customers
Dear Sir/Madam,
Please spare a few minutes of your valuable time to answer the questionnaire.
1. Personal profile:
Name: Phone:
Age: Email ID:
Occupation:
Please read each statement given below carefully and put a tick in the box which best reflects
your personal opinion
2. How often do you visit restaurants?
Often
Weekends
Once in a month
Never
Lack of information
Long queues
Wrong order
High price
Hygiene problem
6. What type of cuisine do you mostly prefer to enjoy?
Thai
Indian
Italian
Mexican
Continental
Chinese
8. How often do you give food reviews and ratings after enjoying food?
Always
Sometimes
Never
14. What is the approximately money you spend on ordering food per time?
<150 Tk
<250 Tk
<500 Tk
More than 500 Tk
17. What is the amount of money you would like to spend for delivery charge when
ordering food from online?
Below 100
100 -500
500 -1000
1000 above
18. If restaurants are located next to your house, would you like to order food from
there?
Yes
No
5. Which online application or online portal gives the maximum no. of orders?
Zomato
Food panda
swiggy
6. By what percentage has the no. of orders increased since the association/tie up?
< 20%
20% – 50%
> 50%
7. What percentage of total revenue is generated through the online portals?
< 20%
20% - 50%
> 50
8. Does the online reviews and ratings affect your business?
Yes
No
9. Has there been an enhancement in your brand value since the association?
Yes
No
10. How would you expand your business in the near future?
Continue to associate with the current online portal.
Look for a new online food portal.
Develop your own website.
Bibliography
1. Kothari C.R, Research methodology, 2 nd edition.
Webliography;-
1. www.scribd.com
2. www.g1 obusstores.com
3. www.academia.com
4. www.globus.in
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