Professional Documents
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PROJECT ON Zomato Print
PROJECT ON Zomato Print
WEBSITE IN BANGLADESH
A comprehensive study
on
Submitted To:
I, Syeda Mansura Khatoon, University Registration number 12304114, do hereby declare that
the Project Report entitled “BUSINESS OPPORTUNITIES OF ONLINE FOOD REVIEW
WEBSITE IN BANGLADESH- A comprehensive study on ZOMATO”, has been co-
prepared by me as a part of a team, under the avid guidance and supervision of Mr. Rahul Datta,
Senior Trainer, of LICT Project, Govt. of Bangladesh as the partial fulfillment of the
requirement for the Digital Marketing Certification, under the course curriculum of LICT,
Foundation Skills training, Govt. of Bangladesh.
The information given in this Project Report is true, complete and correct to the best of my
knowledge and belief. It is my original work and not submitted for award of any other diploma /
fellowship or similar titles or prizes.
This is to certify that Syeda Mansura Khatoon, University Registration number 12304114 has
carried out this project report entitled “BUSINESS OPPORTUNITIES OF ONLINE FOOD
REVIEW WEBSITE IN BANGLADESH- A comprehensive study on ZOMATO” as a
partial fulfillment of the requirement for the Digital Marketing Certification, under the course
curriculum of LICT, Foundation Skills training, Govt. of Bangladesh.
She has carried out the above Project work as a part of a team under my guidance and
successfully completed it. A lot of relevant information has been suggested by me and has been
used to complete it. Regarding primary data went through a study of this subject matter and
collection of different data required for the preparation of the Project Report from different
personalities.
It is to certify that the report presented embodies the original work of my student/s. I hereby
forward this Project Report for further evaluation.
Place:
Date : ---------------------------
Place:
Date : -------------------------
I, Ferdous Kowser, University Registration number 12304034, do hereby declare that the
Project Report entitled “BUSINESS OPPORTUNITIES OF ONLINE FOOD REVIEW
WEBSITE IN BANGLADESH- A comprehensive study on ZOMATO”, has been co-
prepared by me as a part of a team, under the avid guidance and supervision of Mr. Rahul Datta,
Senior Trainer, of LICT Project, Govt. of Bangladesh as the partial fulfillment of the
requirement for the Digital Marketing Certification, under the course curriculum of LICT,
Foundation Skills training, Govt. of Bangladesh.
The information given in this Project Report is true, complete and correct to the best of my
knowledge and belief. It is my original work and not submitted for award of any other diploma /
fellowship or similar titles or prizes.
(FERDOUS KOWSER)
CERTIFICATE OF GUIDANCE
This is to certify that Ferdous Kowser, University Registration number 12304034 has carried
out this project report entitled “BUSINESS OPPORTUNITIES OF ONLINE FOOD
REVIEW WEBSITE IN BANGLADESH- A comprehensive study on ZOMATO” as a
partial fulfillment of the requirement for the Digital Marketing Certification, under the course
curriculum of LICT, Foundation Skills training, Govt. of Bangladesh.
She has carried out the above Project work as a part of a team under my guidance and
successfully completed it. A lot of relevant information has been suggested by me and has been
used to complete it. Regarding primary data went through a study of this subject matter and
collection of different data required for the preparation of the Project Report from different
personalities.
It is to certify that the report presented embodies the original work of my student/s. I hereby
forward this Project Report for further evaluation.
Place:
Date : ---------------------------
Place:
Date : -------------------------
I, Ummay Lamisa, University Registration number 12304043, do hereby declare that the Project
Report entitled “BUSINESS OPPORTUNITIES OF ONLINE FOOD REVIEW WEBSITE
IN BANGLADESH- A comprehensive study on ZOMATO”, has been co-prepared by me as
a part of a team, under the avid guidance and supervision of Mr. Rahul Datta, Senior Trainer,
of LICT Project, Govt. of Bangladesh as the partial fulfillment of the requirement for the Digital
Marketing Certification, under the course curriculum of LICT, Foundation Skills training, Govt.
of Bangladesh.
The information given in this Project Report is true, complete and correct to the best of my
knowledge and belief. It is my original work and not submitted for award of any other diploma /
fellowship or similar titles or prizes.
(UMMAY LAMISA)
CERTIFICATE OF GUIDANCE
This is to certify that Ummay Lamisa, University Registration number 12304043has carried out
this project report entitled “BUSINESS OPPORTUNITIES OF ONLINE FOOD REVIEW
WEBSITE IN BANGLADESH- A comprehensive study on ZOMATO” as a partial
fulfillment of the requirement for the Digital Marketing Certification, under the course
curriculum of LICT, Foundation Skills training, Govt. of Bangladesh.
He/she has carried out the above Project work as a part of a team under my guidance and
successfully completed it. A lot of relevant information has been suggested by me and has been
used to complete it. Regarding primary data went through a study of this subject matter and
collection of different data required for the preparation of the Project Report from different
personalities.
It is to certify that the report presented embodies the original work of my student/s. I hereby
forward this Project Report for further evaluation.
Place:
Date : ---------------------------
Place:
Date : ------------------------
(Sagib Kumar Ghosh )
Chairman: Department of Marketing
University of Chittagong
STUDENT DECLARATION
I, Tahmina Sultana, University Registration number 12304047, do hereby declare that the
Project Report entitled “BUSINESS OPPORTUNITIES OF ONLINE FOOD REVIEW
WEBSITE IN BANGLADESH- A comprehensive study on ZOMATO”, has been co-
prepared by me as a part of a team, under the avid guidance and supervision of Mr. Rahul Datta,
Senior Trainer, of LICT Project, Govt. of Bangladesh as the partial fulfillment of the
requirement for the Digital Marketing Certification, under the course curriculum of LICT,
Foundation Skills training, Govt. of Bangladesh.
The information given in this Project Report is true, complete and correct to the best of my
knowledge and belief. It is my original work and not submitted for award of any other diploma /
fellowship or similar titles or prizes.
(Tahmina Sultana)
CERTIFICATE OF GUIDANCE
This is to certify that Tahmina Sultana, University Registration number 12304047 has carried
out this project report entitled “BUSINESS OPPORTUNITIES OF ONLINE FOOD
REVIEW WEBSITE IN BANGLADESH- A comprehensive study on ZOMATO” as a
partial fulfillment of the requirement for the Digital Marketing Certification, under the course
curriculum of LICT, Foundation Skills training, Govt. of Bangladesh.
He/she has carried out the above Project work as a part of a team under my guidance and
successfully completed it. A lot of relevant information has been suggested by me and has been
used to complete it. Regarding primary data went through a study of this subject matter and
collection of different data required for the preparation of the Project Report from different
personalities.
It is to certify that the report presented embodies the original work of my student/s. I hereby
forward this Project Report for further evaluation.
Place:
Date : ---------------------------
Place:
Date : -------------------------
As a part of “Digital marketing” course under LICT program and in order to gain practical
knowledge in the field of online business ,we are required to make a project report on Business
opportunities of online food review website in Bangladesh- “A comprehensive study on
ZOMATO”. The basic objective behind doing this project report is to get knowledge about the
online businesses and the opportunities for Bangladesh.
For preparing the project report, we have visited some restaurants, to avail the necessary
information.
The whole project has been divided into two parts. The first part is for the investors of
Bangladesh and the second part is for the foreign investors.
In the first part we show the Business timeline and business model of ZOMATO. In the second
part we shows the opportunity for ZOMATO doing business in Bangladesh and the SOWT and
PESTEL analysis of it and the strategic implementation and competitor analysis for ZOMATO.
The whole project is measured through the questionnaire. The data further analyzed and
interpreted and the result was obtained.
The information presented in this project report is obtained from sources like company
personnel, company website, other websites, company reports and other literature.
The successful completion of this project was a unique experience for us because by visiting
many place and interacting with many persons we achieved knowledge and experiences which
was essential at this turning point of our career. The research provides us an opportunity to
devote our skills, knowledge and opportunities required during the technical session.
TABLE of CONTENT
No Topic Page
No
1. Executive Summery
2. Business Timeline
2.1 Business Growth
2.2 Financial Growth
2.3 Revenue Growth
Part – 01 2.4 Employee Growth
For 2.5 Global Expansion
Investors of 2.6 Customer Acquisition
Bangladesh 2.7 SOWT analysis of Zomato
3. Business Model
3.1 Operational Model
3.2 Revenue Model
3.3 Financial Model
3.3.1 Fund Raising
3.3.2 Fund Allocation and Acquisition
3.3.3 Shareholding Pattern
3.4 Technological Model
3.5 Payment Model
3.6 Marketing Model
3.7 Logistics
1 Executive Summery
2 Business Opportunities In Bangladesh
2.1 Investment Guideline
2.1.1 Information Searching
2.1.2 Physical Verification
2.1.3 Getting Structured
2.2 Government Support
2.2.1 Government Support in food processing
2.2.2 Government Effort in E-Commerce
Part – 02 2.3 Industry Specific Law
For Foreign 2.3.1 Laws regarding Food Industry
Investors 2.3.2 Laws regarding E- Commerce
2.4 Socio-Economic Condition of food Industry in
Bangladesh
2.5 An overview of Bangladesh Food Processing
Sector
3 PESTEL Analysis
4 SOWT Analysis
5 Strategic implementation
5.1 Development
5.1.1 Location
5.1.2 Technology
5.1.3 Utilities
5.2 Operation
5.3 Banking and sources of Finance
5.4 Costing
5.5 Marketing
5.5.1 Market Segmentation
5.5.2 Pricing Strategy
5.5.3 Marketing Programs for Promotion
5.6 Strategic Alliances
6 Competitors Analysis
7 Marketing Forecast
7.1 Quantitative Analysis
7.2 Qualitative Analysis
8. Final Recommendation
Annexure 9. Questionnaire
10. References
।Part 01। For Investor of Bangladesh
PART – ONE
1
1. Executive Summary:
“ZOMATO- Never have a bad meal”
ZOMATO is India’s largest and most successful startup company where food industry meets
technology and connects thousands of restaurant with one thread.
2
“ZOMATO- Never have a bad meal”
ZOMATO is the brainchild of Mr. Deepinder Goyal and Pankaj Chadda who were colleagues in
‘Bain And Company’. The idea to start ZOMATO came from the demand for menu cards to
order food among their colleagues. Mr. Deepinder Goyal and Pankaj Chadda initially started a
database for food menu named “Foodiebay” in 2008 which soon had gone live with menus of
1200 restaurants in Delhi NCR (INDIA) by July 2008. Later the name was changed into
ZOMATO (to avoid any legal implication as the name Foodiebay has Ebay annexed with it) in
November 2010 which is now the largest restaurant detecting platform in India listed with more
than 4200 restaurant across 12 cities in the country. And internationally it has lists of about 1.4
million restaurant across 10,000 cities in and at present it operates in 23 countries, including
India, Australia and the United States. ZOMATO got its first funding of $1 million from Info
Edge and it’s also ZOMATO’s largest shareholder. ZOMATO has over 2000 passionate Zomans
strong across 23 countries, and this number is increasing day by day. ZOMATO is widely used
by internet users who want information for dining and delivery options. ZOMATO is capturing
customers by providing all the information a customer can need before going to a restaurant or
ordering foods online. ZOMATO is following affiliate marketing model with website and mobile
apps. Customers who are ordering foods online can pay through debit cards, credit cards and net
banking. ZOMATO has also partnered with Paytm, PayPal, and Freecharge to enable online
payments. For marketing purpose, ZOMATO’s key strategy is it’s friendly website with up-to-
date information of the restaurants. It also has a global mobile application from where it gets
more than 50% of its total traffic. ZOMATO has partnered with Delhivery and has invested in
Pickingo and Grab to quick up its delivery process.
ZOMATO at a glance
Products of ZOMATO:
1.Advertisement/ Banner ads – Advertise on ZOMATO.
2.ZOMATO for business app:
ZOMATO's app for restaurant businesses – puts the power in the hands of the business owner.
With an easy-to-use interface and powerful features it helps a business get the most out of
ZOMATO. Business can connect and engage with their patrons by replying to their reviews, and
keep them coming back.
3.ZOMATO base – ZOMATO Base is a cloud-based POS system to help you manage your
restaurant operations from a single platform
Search & discovery services don’t charge for listing an entity with them.
2.1 Operational Model:
The main reason behind the success of ZOMATO was the listing of 1.4 million restaurants
across 10,000 cities & 22 countries with an exclusive/extensive range of food menus/customizes
food menus and up to date information about restaurants. The incarnation of smart phones &
internet penetration plays the leading role in its success. The business model & and the
operation of ZOMATO is very unique & creative. Sustainable price of the products & expansion
of operation in a calibrated (standardized manner) has put ZOMATO the Global Map. It
rebranded its logo to go beyond cultures. Geographic boundaries & languages.
User Restaurants
Consultaion fee
74%
Food Delivery
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.
ZOMATO’s business model is based on acquiring funds. In order to achieve its goal to hit the
billion dollars plus valuation, ZOMATO has raised a total of $225 million in eight rounds
Of funding since its launch in 2008.Its five rounds of funding have been as follows:
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ensure a strong and smooth network through website and mobile app.
It also focuses on building strong, energetic talented Zomans to create an unmatched
network for information flow.
Mostly they use these funds to strengthen its aggressive International rollout and invest in
newer segments like online food delivery and cashlesspayments among others. It's worth
noting that ZOMATO had spent most of its $60 million funding on the UrbanSpoon
acquisition, which it had acquired for $52 million.
In February2015, ZOMATO allocated $50 million (Rs 300 crore) to launch an online
food ordering business, taking on existing players like FoodPanda and TinyOwl among
others.
ZOMATO spent Rs. 76 lakh on the delivery of food orders in FY 2016.
It also spent Rs.44.1 crore on advertising and sales promotion in FY 2016 which is
double of Rs.22.3 crore from previous year.
A glimpse of fund allocation and utilization is given below:
% sheres held
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Info Edge (India)
Sequoia Capital
Others
45%
Source: http://www.iamwire.com/author/tofler
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.
3.5 Marketing Model:
The key factor for ZOMATO is its marketing strategy and its featured & user friendly website.
They also have a Global mobile application for Google Android operating system, Windows
phone, IOS and Blackberry devices as people using smart phones are increasing day by day and
people are more likely to do the search from their mobile.
Marketing tools:
I. Online Tools: Search Engine Optimization (SEO), Search Engine Marketing (SEM).
II. Offline Tools: Attractive, colorful and good Quality pamphlets, Word of mouth, OOH,
B2B Marketing, Press etc.
III. Broadcasting Tool: Occasionally use TV advertising during high activity period like
DIWALI, NEW YEAR & other festivals.
IV. Social Media: ZOMATO uses different platforms to engage user with them.As on
August, 2016 -
a) ZOMATO has more than 600k strong Facebook community.
b) 1288337 likes on Facebook.
c) 309k Followers in Twitter.
d) ZOMATO use blog as a mouthpiece to share & update all latest Updates.
e) Share the food experience with 457 followers in Pinterest with great content to
attract customers.
f) Share foodie photographs in Instagram by using #ZOMATO and it has 39.9 k
followers.
V. Direct Marketing:
a) SMS: 6 sms per day for one month to 6 lakh unique customer at first stage.
b) Direct Mail: Effectively reached corporate in bulk & professional employees
which are primary target.
c) Sales Promotion: Coupon and price offers.
d) Simple review and rating systems
e) Print Media: City Bank ZOMATO restaurant guide 2012.
VII. Collaborations:
Paytm
Uber
Food Bloggers
Mobiwik
Delhivery
Freecharge.
Restaurants
OOH Pinterest
B2B Advertising Instagram
Press Blog
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-
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2012
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3.2 Financial growth:
ZOMATO Media Private Limited, the owner company of ZOMATO, has filed its latest revenue
figures with the Registrar of Companies. It has reported revenue of Rs. 95 crores in FY 2014-
15. This is more than 2.5 times the previous year’s revenue of INR 36 crores. Out of the reported
revenue of Rs. 95 crores in FY 2014-15, Rs. 78 crores has been reported as ‘Revenue from
advertisements ‘. Remaining Rs. 16 crores is reported to be from other sources, these include
Rs. 14.7 crores from ‘Net gain on sale current investment’ and Rs. 1.4 crores from bank deposits.
The company incurred expenses of Rs. 166 crores in FY 2014-15, thus making a loss of Rs. 72
crores as compared to a loss of INR 37 crores in the previous fiscal.
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FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15
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3.4 Employee growth:
ZOMATO has over 2000 passionate Zomans strong across 23 countries, and they are growing by
the day. At last count, the team represents 32 nationalities ,and speaks twice as many languages.
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.
PART –TWO
1.Executive Summary
Bangladesh has proved to be an attractive investment location with its 160 million populations
and consistent economic growth for a decade leading to strong and growing domestic demand.
The economy of Bangladesh is currently $180 billion which according to IMF will rise to $322
billion by 2021 creating enormous economic opportunities.
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Food Safety Act 2013
No Specific laws regarding
E-commerce.
।Part 02।For Foreign Investors
Government support
Tax holiday
Relaxed FDI norms.
Private Public
Partnership Model
Fast Track
Approvals of
Citizenship
Permanent
Residency
Quick Immigration
Skilled work
Permits
NRB Preferences
If ZOMATO wants to start its business in Bangladesh, it needs to follow some investment
guidelines. Bangladesh government is always encouraging and attracting foreign investors to
invest here and for this purpose, the state government is willing to offer a number of incentives
to the investors. Apart from these, government has also taken initiatives such as lowering of
VAT rates to promote the industry. To promote e-commerce in Bangladesh, government has
taken several steps including manufacturing optical fiber network, mobile banking, 3G based
telecom network and has established laws for transactions over electronic media. Bangladesh
National Parliament has enforced the Food Safety act, 2013 on October 10, 2013 to ensure the
people’s right toward access to safe food. At present in Bangladesh, the demand for food
products is increasing and people are encouraging more for eat outs. And for this many foreign
and local restaurants have entered in Bangladesh and added different types of menus and
cuisines. B2C websites such as HungryNaki and FoodPanda have become very popular as online
food deliver network not only among youths but also in all ages of people.
So finally we can say that Bangladesh is a winning combination of competitive market, business-
friendly environment and competitive cost structure.
।Part 02।For Foreign Investors
o BOI
o FBCCI , FICCI , ICC , DCCI , MCCI , BCI, CCCI and other regional
chambers.
o Business associations
o UN bodies like World Bank, UNCTAD, UNDP, WTO, IFC, MIGA, Foreign
Investment Advisory Service (FIAS), etc. and other international
organizations could be reliable sources.
On the basis analysis of the information which has been collected and initial decision to
approach for the business, the investor needs to visit Bangladesh to have physical verification.
He could either visit independently or ask BOI to arrange the visit. However, to make the visit
more worthy and effective, BOI recommends the investor to contact and avail BOI Welcome
Service at Hazrat Shahjalal International Airport, Dhaka.
Incorporating a Company:
Business in Bangladesh may be conducted
by a company formed and incorporated locally or by a company incorporated abroad but
registered in Bangladesh. The incorporation or registration is done by the Registrar of Joint
Stock Companies and Firms (RJSC&F), under the provisions of the Companies Act 1994.
Companies have to collect a trade license from the city corporation. The proposed
company will have to file its application at the nearest city corporation office. Following
Documents must be provided for getting Trade License.
A certified copy of the company’s articles and Memorandum of Association.
A copy of certificate of Incorporation
Company’s statement of bank solvency
The company’s TIN certificate
Three photographs
Particulars of person in Charge of the main corporate functions.
Investment climate in Bangladesh is very attractive. One main goal of government is to attract
foreign investors and boost export.
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।Part 02।For Foreign Investors
Apart from these, the state governments have also taken initiatives such as lowering of VAT
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2.2.2 Government Effort in e commerce:
।Part 02।For Foreign Investors
Bangladesh is a small country and still we are third world people, but our government effort not
too much cheap for e-commerce. These are:
।Part 02।For Foreign Investors
The Bangladesh National Parliament has passed the Food Safety Act, 2013 on October 10, 2013
(after repealing and re-enacting the existing outdated laws in this regards).
Main purpose of this law is to make provisions for the establishment of an efficient,
effective, scientifically based Authority and for regulating, through coordination, the
activities relating to food production, import, processing, stockpiling, supplying,
marketing and sales .
Furthermore this law is to ensure the people’s right toward access to safe food through
appropriate application of scientific processes and state of the art technology.
The Bangladesh Food Safety Authority, which has been set up on February 2, 2015, is
committed to make a united start with its full strength and unstinting efforts.
The Authority whole-heartedly welcomes the all out support of all food control agencies,
food business operators and people of the country towards the landmark goal of
establishing a Modern and Technological Food Safety System in Bangladesh to
contribute to the government’s Vision 2021.
Bangladesh government has made some efforts in establishing a regulatory framework for
transactions over electronic media. A committee has been set up to draft cyber law about a year
back but no appreciable progress has been made. Though there are no specific legal frameworks
of international or national laws for e-commerce, additional laws have been enacted or are in the
process in many countries. Moreover, UNCITRAL in 1996 has adopted a model law on
electronic commerce and some of our neighboring countries like India have also enacted laws
recognizing evidence and validity of electronic signature and contracts. This can be used as a
basis for development of local laws and regulations. Absence of such laws does not provide
validity to transactions of e-commerce and as such are not likely to be used by business
organizations. The types of laws are divided into four categories:
Laws on e-commerce,
Laws on e-signature,
Laws on personal data protection and
Laws on electronic crimes. On the open of the Modern technologies, new challenges are
arising. One of them relates to the legal allegations of e-commerce.
।Part 02।For Foreign Investors
Food industry accounts for 22% of total manufactured products, 20% of total labor force
and 5% of total GDP – equal to around 4.48 bills USD.
This sector employs a significant portion of the labor force in the country.
Between 2004 and 2010, the food processing industry in Bangladesh grew at an average
7.7 percent per annum.
The food industry employs 2.45 percent of the country's total labor force and its share in
the GDP was 2.01 percent in 2010.
In 2010, Bangladesh exported over $700 million worth of processed food and beverages,
over 60 percent of them were shrimp and fish products.
The major food processing sub-sectors in Bangladesh include dairy, edible oil, sugar,
rice, wheat, fruit and vegetable, tea, poultry/beef, pulses and spices and fish processing
industries.
beverages and various other food items. Bangladesh itself with nearly 150 million
populations possesses a huge domestic market for processed food. It’s important has been
further multiplied due to its closer proximity to north eastern part of India with another over
70 million homogeneous people in terms of food habit and culture.
The annual turnover of food processing sector has been given below-
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• B2C websites have also become very popular in Bangladesh as evidenced by the growth
and commercial success of online-based home delivery of food, such as HungryNaki and
FoodPanda. This has come as a panacea to citizens given the high levels of traffic in
areas.
• Hungrynaki
।Part 02।For Foreign Investors
Hungrynaki Founded by Ahmad A D, Sazid Rahman, Rifat Nabi and Tausif Ahmad the
website first began operating from October, 2013. Hungrynaki started its journey with
just two developers, four executives and one delivery man, catering to the need of
Gulshan and Banani residents. But they kind of knew it was coming, because online
businesses are something which is still new in our country. But as they were growing, the
restaurant owners understand how it is helping them make more profit. Now Hungrynaki
has over 60 people working for them including delivery men, and operates in Dhaka,
Chittagong and Sylhet. In two years their annual turnover has been 1.2 billion taka.
• FoodPanda
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।Part 02।For Foreign Investors
।Part 02।For Foreign Investors
4. SOWT Analysis :
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।Part 02।For Foreign Investors
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।Part 02।For Foreign Investors
5.Strategic Implementation:
5.1 .Development:
5.1.1 Location:
Bangladesh is the fastest growing emerging market in the world. ZOMATO has a huge
potentiality in doing business in Bangladesh. For doing business in Bangladesh they will first
need a office to run their business.. For buying or renting an office space they can contact with
City Development Authorities or Real Estate Agents. Selecting business location is the foremost
task for any business to successful. In this regard ZOMATO can take few initiatives which are
given below:
• Dhaka is the capital city of Bangladesh which has more than 1 crore people living here.
And it is the center of many International and Multinational Company. Dhaka is located
by many local and international restaurants and hotels. Food business flourished here.
Furthermore Foodpanda ,Hungrynaki and many other online food delivery business has
their head office in Dhaka. So they can start a business here.
• In Old Dhaka they have reputation for many traditional food.It is also located by many
historical places.
• Chittagong is the port city of Bangladesh and heart of trade and commerce of
Bangladesh. It has also potentiality in online food review and delivery business.
• Other major cities like Cox’s Bazar, Rajshahi, Comilla, Shylet where many people go for
vacation on different tourist places. These location can be utilized by ZOMATO for
business expansion.
• Many consulting firm is providing help for any business related problems.
• BOI also giving support for FDI.
5.1.2 Technology:
Waiving all taxes and duties from import of computer hardware and software.
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Hundred percent remittances of profit and capital gains for foreign investors without any
approval.
Decision to link Bangladesh to global highway through submarine cable link by next two
years.
5.1.3 Utilities:
5.2 Operation:
Human Resource Management:
Human Resource is the main component for any business. Bangladesh has a huge
educated, unemployed youth force with the ability to read and write English.
ZOMATO can take advantage of its immense manpower , programmers, IT
professionals.
They can easily get candidates from BUET, CUET, RUET,IUT , DU, CU and many other
reputed universities.
A work permit is for a foreign national is a prerequisite for employment in Bangladesh. If
they want to recruit foreign nationals they have to apply in advance to BOI using
prescribed form.
Banks may extend working capital loan or term loan in local currency for foreign
controlled company.
For borrowing from abroad in foreign currency a company will need approval of BOI and
Bangladesh Bank.
5.4 Costing:
As per ZOMATO’s model its overall costs will be involved into inventory, Utilities connections,
Website and app development for Bangladesh, Marketing and promotional activities.
5.5 Marketing:
At first ZOMATO have to analyze the market to understand the current market, potential market,
market segmentation, market needs, current market trends, industry and competitors, market
growth and strategy to develop service according to market needs and to deliver and build
profitable relationship.
5.5.1Market Segmentation:
In segmentation the whole market have to divide into different groups. Demographic and
geographic segmentation will be effective in this regard.
Initially target market will be Dhaka metropolitan area and then Chittagong.
The target group can be middle to high income range people with age group between 15
to 60 .
The restaurants with wide variety of food will be in the lime light.
5.5.2Pricing Strategy:
To capture the market and to tie up with the restaurants ZOMATO should
follow market penetration strategy as the people of this region are relatively more price sensitive.
They can charge low to restaurant who will tie up with them. Other than that they can introduce
some discount packages online for food with the agreement of restaurants.
Organizing food fair where they can invite different restaurants to display their food and
can arrange for competition for restaurant where they will take part and the voting by
customer will choose a restaurant as a winner. ZOMATO will give them special
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preference with some benefits. And through this fare ZOMATO will be able to categorize
the restaurants and making a preference list to approach for tying up.
Advertisements – TV, Radio, Billboards, Print media etc. to let people know about our
services.
Discounting coupons.
For marketing purpose, our main focus should be Facebook and mobile marketing as the
people are greatly involve in Facebook and more youngs are using smartphone. Then
they can promote on G+, Pinterest, Instragam, LinkedIn and Twitter. We shall post
pictures on a regular basis, ask questions from customers, create conversations and have
fun.
They shall update their website on a regular basis to ensure our data is fresh.
They can distribute leaflets in front of the colleges and universities to inform people
about their services.
They can advertise on movies before starting and also in the movie.
6.Competitor Analysis :
At present in Bangladesh there are 4 online food ordering system is available. They
are Foodpanda, Hungrynaki, Khanahero and newly launched hurricane. But among them the
most competitive players are Foodpanda and Hungrynaki.The others are not playing significant
role yet.So a brief competitor analysis on Foodpanda & Hungrynaki is given below:
7.Marketing Forecast:
7.1Quantative Analysis: Graphical representations of some questionnaire for
customers are given below:
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We have collected response from 84 person from which 43.9% are male and rest are female and
the maximum age group is less than 25 from student group. We have found that most of the
people often visit restaurants in the evening time and some prefer to visit restaurants in the night
and noon time. Maximum people insisted on food quality in choosing any restaurants when we
asked about their preference. Beside this some prefer ambience, price and service quality of any
restaurants. In the survey, we got to know that high waiting time, high price and hygiene
problem are the main problem people face at enjoying food. We found that maximum people
prefer Bangladeshi, Mexican, Italian, and Indian food and very few people often try new
restaurants. It seems that, sometimes people give food reviews after having food. It is also seem
।Part 02।For Foreign Investors
that, 78.6% are direct walk in customers and only 36.9% people order food online and maximum
of them order food through foodpanda and hungrynaki. They are neutral in satisfaction level.
Majority of people order snacks item from online and they set their budget around 250. We also
found on our survey that if restaurants near to them maximum are interested to order from there
and most of the people are interested to take the service of ZOMATO.
Inour survey on many restaurants of Chittagong we found that number of order per day home
delivery is very low and below 50 and most of the customers are walk in customers. Maximum
restaurants are tied up with food ordering app and who are not, are interested to tie up and
majority of restaurants are tie up with foodpanda and hungrynaki. We also found that most of the
order restaurant owner gets from khulsi and Nasirabad area in Chittagong. The percentage of
order of the restaurant has increased upto 20%. In our survey we also found that the online
reviews and ratings affect their business in most of the cases and almost all restaurants brand
value has been enhanced since the association. We found that only 12.5% restaurant owner heard
about ZOMATO and if ZOMATO came in Bangladesh with some beneficial offer for them
maximum restaurant owner are interested to tie up because they want to expand their business in
future and are looking for a new online food portal.
ZOMATO is basically an online food related guidebook. While doing business in Bangladesh
they can add a new specification to their business. They can add some new features which will
give them competitive advantage to be successful in doing business in Bangladesh.
restaurants, quality of food, price, menus, Service and waiting time etc. So ZOMATO
should customize the restaurants based on the features people wanted. So that people can
find their desired restaurant on their preferences so easily.
Customized Food Delivery: ZOMATO can add a specification which will allow users to
choose ingredients of their choice to make their own food by playing a cooking game
.The exact food will be delivered to the user and it will be from some specific restaurants
and for some specific food like burger, pizza, soup cake etc. For this ZOMATO will be
able to capture the interest of picky eaters. And restaurants which will be a part of this
specification, ZOMATO can give them discounts for such orders.
Kids Meal: In recent times, the number of working women in Bangladesh has been
increased. They have limited time for family. Because of that, in Tiffin times their kids
are not getting hygiene meal. For this type of kids ZOMATO can offer healthy and light
meals for them by tying up with restaurants and convincing the school authority.
Adding feature in App: ZOMATO doesn’t use customized app for each target market
which is troublesome for users. They should customize their website and app for each
targeted customer segment. Such as there are some people in our country who do not
understand English properly. For this reason, ZOMATO can add Bangla language feature
so that all people understand and get a chance to order meal from ZOMATO easily.
Senior Citizen’s Meal: In our country, senior citizens are not willing to go to restaurants
for their various health issues. And for this they are not getting the essence of good meal.
So, ZOMATO is going to offer them 10% discounts on every meal.
Delivery Tracking System: ZOMATO can allow customer to track their delivery. In this
system customer will be able to track the delivery man who is bringing food for him,
where he is and how much time he needs to wait. And customer can know about the
nearest restaurant from which he can order.
Story Teller: They can add option where people can get chance to share their
experiences with ZOMATO in their website. After every month they select a winner
among those story tellers and will offer them a free meal. By this way, we will be able to
improve their service and offer the best to the customers.
Award to Customer: They may award the valued customer on how many times they
order food through ZOMATO after certain time. This time will be 6 month. Those
customers whose no of orders is the highest will be awarded with a free meal.
Customer Service: They can arrange their customer service for Bangladesh in Bangla
language which will help people to let ZOMATO know about their complains, demand
and recommendation. In this regard they can recruit people from Bangladesh and train
them.
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8. Final recommendation:
ZOMATO, a very well known company in food delivery industry around world. Now a days, food
habits of Bangladeshi people are changing. They are very fond of testing different foods from
different countries. And to satisfy this hunger of the food lovers, there are many more restaurants
being established. In this case, ZOMATO may have very much profitable opportunity to establish
business in Bangladesh. As there is similarity of culture & economy between Bangladesh & India, it
may not face any problem to get coped up in here.
ZOMATO may only have three competitors named Foodpanda, Hungrynaki which is 100%
Bangladeshi & recently established Haricane in Bangladesh. They only provide orderd food to their
valued customer. But, along with this service, ZOMATO has very attractive & unique value added
services like reservation service, food review etc. With these value added services it may easily take
।Part 02।For Foreign Investors
advantage on its competitors. And another competitive advantage for ZOMATO is its competitors
don’t have that much updated technology like ZOMATO.
Although very few people do order through online but the number is increasing day by day. Because
young generation are very techno freak as their target market. So it’s a huge opportunity for
ZOMATO to attract them easily.
In our survey, we have seen that many more restaurants have appreciated this type of online
food portal. They are very much interested for tying up with this as they will get international
standard service. So, ZOMATO has vast opportunity of investment in Bangladesh. They may
have to face very low level of risk. They can easily be a market leader with their sophisticated
technology & services.
With the operation of ZOMATO, restaurants business in Bangladesh will be more flourished which
will contribute in our GDP.
So in the end we may hope that if ZOMATO operates in our country, they may capture the
market easily and restaurant business will be more successful in Bangladesh.
Questionnaire for Customers
Dear Sir/Madam,
Please spare a few minutes of your valuable time to answer the questionnaire.
1. Personal profile:
Name: Phone:
Age: Email ID:
Occupation:
Please read each statement given below carefully and put a tick in the box which best reflects
your personal opinion
2. How often do you visit restaurants?
Often
Weekends
Once in a month
Never
Lack of information
Long queues
Wrong order
High price
Hygiene problem
6. What type of cuisine do you mostly prefer to enjoy?
Bangladeshi
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?
Food panda
Hungrynaki
Huricane
____________________________________
7. By what percentage has the no. of orders increased since the association/tie up?
< 20%
20% – 50%
> 50%
8. What percentage of total revenue is generated through the online portals?
< 20%
20% - 50%
> 50
9. Does the online reviews and ratings affect your business?
Yes
No
10. Has there been an enhancement in your brand value since the association?
Yes
No
11. Have you heard about Zomato?
Yes
No
12. If Zomato came in Bangladesh, are you willing to tie up with them?
Yes
No
13. How would you expand your business in the near future?
Continue to associate with the current online portal.
Look for a new online food portal.
Develop your own website.
References:
1.http://www.edupristine.com/blog/zomato-acquires-food-portal-urbanspoon
2.http://techstory.in/zomato-story-the-facts-and-the-future /
3.http://www.medianama.com/2013/05/223-zomato-in-fy13-rs-11-38-crore-operating-revenues-
rs-10-crore-operating-ebitda-loss/
4.http://www.businessinsider.com/zomato-buys-urbanspoon-2015-1
5.http://economictimes.indiatimes.com/small-biz/startups/only-defensible-indian-unicorn-
revenue-doubled-in-last-9-months-zomato-ceo-deepinder-goyal/articleshow/52185556.cms
6.https://www.owler.com/iaApp/141362/zomato-company-profile?onBoardingComplete=true
7.http://archive.dhakatribune.com/business/2016/jan/31/e-commerce-bangladesh
8. http://www.bankinginvestment.net/article/434440700/an-insight-into-the-turnaround-strategy-
of-zomato-s-business-plan/
9.http://www.foodpro.com.bd/way-to-foodpro-bangladesh
10.https://sdasia.co/2014/12/08/foodpanda-bangladesh-turns-one-success-story
11. www.medianama.com/2015/07/223-zomato-online-payments/
12. techcircle.vccircle.com/2015/09/04/zomato-integrates-paytm-wallet-for-food-payments/
13.https://www.google.com.bd/amp/wap.business-standard.com/article-amp/companies/zomato-
launches-cashless-payment-option-in-dubai-115020300252_1.html
15. https://en.wikipedia.org/wiki/Food_industry_in_Bangladesh
16. http://www.thedailystar.net/food-industry-in-bangladesh-6622
17. http://www.hortex.org/Employment%20and%20GDP_Agro-processed_171113.pdf
18. http://www.slideshare.net/Tanvir777/the-overall-economic-condition-of-bangladesh
19.http://www.tradingeconomics.com/bangladesh/gdp-growth
20.https://prezi.com/md_q1hcyvrub/an-insight-into-zomatos-marketing-strategy/
21.http://www.slideshare.net/sahiljain7169/summer-internship-project-report-on-online-food-
app-tinyowl
22.http://dsim.in/blog/2015/04/14/zomato-an-indian-startup-acquiring-the-world/
23.http://www.digitalvidya.com/blog/zomato-successfully-leveraged-digital-marketing-to-
generate-funding/
24.http://www.slideshare.net/vgandhi86/zomato-case-study-v10-20-72015
25.https://www.socialsamosa.com/2012/07/zomatos-social-media-strategy-explained-interview/
26. Bangladesch-doing-business-in-bangladesh-2008
27. Bangladesh Next rising star in South Asia for foreign investment _ Arab News
28. A review of FoodPanda and HungryNaki – Bangladesh’s First Online Food Delivery
Services! _ UNaB Magazine