INTERNAL ASSIGNMENT PROJECT FOR MANAGERIAL ECONOMICS (ME) – MARKETING 1 (2019-2021)

ON

DETAILED ACCOUNT ON DEMAND OF FOOD DELIVERY APPS IN RANCHI CITY BY

COLLECTING DATA FROM PRIMARY SOURCES

Submitted in partial fulfilment of the Post Graduate Diploma in Management

(MARKETING)
BY
FARHAN AZAD
Roll no-38
UNDER THE GUIDANCE OF
Dr.Bhabani Prasad Mahapatra

XAVIER INSTITUTE OF SOCIAL SERVICE

DR.CAMIL BULCKE PATH, RANCHI
Session-2019-21
 DECLARATION

THIS IS TO DECLARE THAT I FARHAN AZAD STUDENT OF XAVIER INSTITUTE OF

SOCIAL SERVICE RANCHI, (JHARKHAND), PGDM BATCH 2019-2021 HAS GIVEN
ORIGINAL DATA AND INFORMATION TO THE BEST OF MY KNOWLEDGE IN THE

PROJECT REPORT TITLED “DETAILED ACCOUNT ON DEMAND OF FOOD DELIVERY

APPS IN RANCHI CITY BY COLLECTING DATA FROM PRIMARY SOURCES “IS A

RECORD OF INDEPENDENT WORK CARRIED OUT BY ME UNDER THE GUIDANCE
OF DR.BHABANI PRASAD MAHAPATRA TOWARDS THE PARTIAL
FULFILLMENT OF REQUIREMENT FOR THE PGDM COURSE.

I ALSO AGREE IN PRINCIPAL NOT TO SHARE THE VITAL INFORMATION WITH ANY
OTHER PERSON OUTSIDE THE ORGANISATION AND THAT I HAVE NOT
SUBMITTED IT FOR ANY AWARD OR TITLE.

DATE – 08.07.2019
PLACE – RANCHI, JHARKHAND
NAME – FARHAN AZAD
ROLL NO – 38
MARKETING MANAGEMENT
 ACKNOWLEDGEMENT

It has been a great honor and privilege to make this project. I have been able to
complete this project only due to the support and guidance of many individuals. However, it
would be wrong on my part to not express my sincere thanks to all of them.

I would like to take the opportunity to express my humble gratitude to my teacher

DR.BHABANI PRASAD MAHAPATRA who has helped me to execute this project. His
constant guidance and willingness to share his vast knowledge made me understand this
project and its manifestations in great depth. I am highly obliged to him without whose
support this work would not have been accomplished. His invaluable guidance helped me
understand the project better.
 INTRODUCTION

E-commerce in India is expected to grow from US $2.9 billion in 2013 to a mammoth US $100
billion by 2020, making it the fastest growing e-commerce market in the world! E-commerce is
also witnessing a rise in online food & restaurant service companies, which is expected to reach
$2.7 billion by 2019. This white paper explores drivers of the growth of such online food
delivery companies in India, the current competition and how this affects the brick-and-mortar
restaurant business in India. Here’s a look at the supply and demand drivers for online quick
food services. With a population of over 1.2billion, India is undeniably one of the biggest
consumer markets in the world today. Moreover, 50% of this population fall under the age of 25,
and the rest before the age of 35 years; making India among the youngest population in the world
too. Most of the fast food demand comes from age group 18-40 years. What’s more, by the year
2025 the Indian middle-class demographic is expected to touch 550 million. Young India’s
appetite is one of the key drivers for demand in the food and beverage industry on the whole.
With an increasing number of young Indians being productively employed in lucrative
industries, sectors like IT services have upped the living standards and made their wallets fatter
too. The World Bank reports a staggering 50% increase in per capita income since 2006 until
now. Urban India sees a visible change in the social setting, which further fuels the advance of
fast food restaurants in India. Higher disposable income is also a key driver for other
subcategories of food products too. With dual-income families, now urban India sees both
parents bring home the bacon, thus changing the way people live drastically; with changes in
routines, lifestyle and food habits. The demand for quick access to food and one with affordable
rates is on the rise. Time crunches and an increasing need to spend quality time with 92% nuclear
families reaching out for fast food or takeout’s to save time and energy that would otherwise go
into cooking up a meal at home every day of the week.
Swiggy Vs Zomato:
Who Has a Better Chance to Win India’s
Hunger Games? 
Investors have placed bigger bets on Swiggy as it vies with older peer Zomato to deliver piping
hot food to hungry customers. The two restaurant search and ordering startups gulped nearly $2
billion of investor money this year. Swiggy got more than half of it. It raised nearly $1 billion
from a clutch of investors this week, making it the largest online food venture in India valued at
$3.3 billion

This has been the best year yet for India’s food search and ordering startups. Swiggy and Zomato
raised three times the funds food delivery ventures received in the last four years, according to
data shared by Venture Intelligence. Investor optimism comes after two years of consolidation
when several delivery ventures either shut down or were acquired. The market, according to
Redseer, is expected nearly quadruple to $2.5 billion by 2021. And it’s only expected to boom as
cheap data encourages online ordering.
“The food-tech industry today is more about who is able to attract most money and investors,
and then about services or innovation, Zomato, which counts Ant Financial, Sequoia Capital and
Temasek among its investors, has raised $610 million in all since inception in 2008, according to
data cited by Crunchbase which aggregates information on startups. Swiggy, founded six years
later, has already surpassed it, raising $1.5 billion in all from investors including Naspers,
China’s Tencent and Meituan Dianping, out of which nearly $240 million was part of the
secondary sale.
 ALL ABOUT SWIGGY!!
Swiggy is an Indian based food delivery company. Co-founded by Nandan Reddy, Sriharsha
Majesty, and Rahul Jasmine in 2014, Swiggy aims to deliver food from the best restaurants in the
city to urban foodies. The company has partnerships with a wide range of restaurants and has an
exclusive fleet of delivery personnel who pick up the orders from the restaurants and deliver it to
the customers. They have grown from 6 delivery executives and 25 restaurants to over 6000
delivery executives across Delhi-NCR, Mumbai, Bangalore, Hyderabad, Chennai, Kolkata, and
Pune. . Swiggy aims to offer reliable, fast, and consistent service delivery. They also want to
increase market share within the cities they currently exist in, while also expanding to all cities in
India. Their target customers currently include 20–30 year olds, college students, working
professionals the e-Commerce savvy, and people living away from their hometowns. The Indian
food delivery market is fairly new and is currently valued at USD15 billion (Nair, 2017). The
market is fast growing, and its current main players besides Swiggy are Foodpanda, Zomato, and
Aero by Google, TastyKhana, UberEATS, Tiny owl, SpoonJoy, BOX8, and Deliver. Even though
there seems to be a lot of players in the market, Swiggy’s main competition comes from Zomato
and UberEATS. What sets Swiggy apart from most of its competitors is their fast delivery service
and the tracking feature on their mobile app which has also enabled them to attract venture
capital. Sumer Juneja, a principal representing one of the VC companies funding Swiggy said
“The Company’s differentiated product offering includes delivery, which enables Swiggy to
deliver a truly end-to-end service for consumers and restaurants in India (Amarja, 2016).
Swiggy’s delivery infrastructure solves a major need in the market by enabling restaurants to
concentrate on their core business and scale up their delivery revenues. Another of their marketing
strategies is to engage their customers directly with their partnership restaurants. The Indian youth
enjoys free things, promotions, and sells which something that most local and international
companies know and exploit. On top of the promotions on their app, Swiggy also organizes food
trails.
 Swiggy’s Marketing Strategy
Swiggy’s marketing strategy aims to leave no one behind from social media users to TV viewers
at an age where most companies have slightly abandoned TV advertisements. Their marketing
strategy consists of both online and offline campaigns. The offline marketing strategy also
includes the use of billboards and bus stickers. The online campaigns are promoted via Facebook,
Instagram, Youtube, Twitter, and Pinterest. The company also uses social media to engage and
collect feedback from its customers. Swiggy’s most popular promotions are Swiggy Tuesdays and
Swiggy POP. Swiggy POP is an everyday offering of Rs 99 meals from different restaurants with
no delivery charges. In 2017 Swiggy ran a big campaign at the Indian Premier League where they
used both print and TV campaigns to extend the brand’s reach. After the games, Swiggy reported
a 23% increase in new user orders and 19% increase in the overall orders during the season .By
doing so, Swiggy has demonstrated an understanding of the Indian youth culture of loving cheap
and free food and used that to their advantage. The low-income customers can pay Rs 99 meals
through Swiggy for meals they could have paid up to Rs 300 for if they walked to the restaurant.
The use of local celebrities and influencers also demonstrates an understanding of local economic
constraints and utilizing that knowledge to raise market share. Indian city roads are usually
congested with traffic and to obtain a fast delivery service, Swiggy uses bikes which can quickly
push their way through traffic. Swiggy also allows cash on delivery on all their orders taking into
account that most of their Indian customers do not have bank accounts or credit cards. Their
media marketing mix also takes into account local considerations by also using traditional media
like TV, print, and radio because there is still a significant population of their target market that
still uses these platforms. They maintain a balanced mix of traditional and online media as
directed by local considerations. Swiggy aims to offer reliable, fast, and consistent service
delivery. They also want to increase market share within the cities they currently exist in, while
also expanding to all cities in India. Their target customers currently include 20–30 year olds,
college students, working professionals the e-Commerce savvy, and people living away from their
hometowns.
 SWOT ANALYSIS – SWIGGY

THREAT’S

STRENGTHS  Low customer

 Quick delivery base

 Good brand image  Increasing health
 Trained delivery man  conciousness
 Good organizational structure
 Free delivery WEAKNESS
  Orders only availaible from the
Wide range of restaurant’s
Tie-up resturants which are situated in OPPORTUNITIES
the areas nearby of the person
ordering  Cost effective and good quality food
 Low marketing and awareness  Growing customers a potential
 Prices differ in menu and app
customer
prices
 Provide better and effective service
 Increase the market share
 ALL ABOUT ZOMATO!!
Zomato is a fastest growing restaurant discovery website,
established in 2008 by Deepinder Goyal and Pankaj Chaddah.
Initially, it was named as Foodiebay but in 2010, it was
renamed as Zomato. It provides not only information related
to nearby restaurants but also provides facilities such as
Zomato currentlyonline
servesordering,
in 10,000 table
cities reservations
across 36 countries having 1.2 million popular
and management.
restaurants with 80 million foodies every month. It is available in 10 different languages
and has 10 million reviews with 18 million bookmarks. It gives a platform to the
restaurants owners to serves a large number of users a good quality of food.
In April 2014, Zomato launched its services in PORTUGAL, followed by launches
in CANADA and IRELAND the same year.

The acquisition of Seattle-based food portal URBANSPOON marked the firm's entry into

the UNITED STATES and AUSTRALIA and brought it into direct competition with ZELP
AND ZAGAT and OPEN TABLE
In September 2017, Zomato claimed that the company had "turned profitable" in the 24
countries it currently operates in. Furthermore, Zomato announced that the "zero commission
model" is to be introduced for partner restaurants. Towards the end of 2017 Zomato stopped
accepting updates from its active users, it appears this includes no longer utilizing moderators
to verify and make updates from users. Restaurant information is not being kept up to date, this
includes not adding new restaurants nor did removing close locations. The aspects that helped
them directly compete with Yelp and Google, including reviews and images, have become
obsolete. Most new users of the app are reporting issues with the new feature to pay for orders.
The app is being updated only to keep working with newer operating systems. Zomato narrowed
down its losses by 34% to ₹389 Cr for the financial year 2016–17, from ₹590.1 Cr  in the previous
year 2015-16
 Zomato’s Marketing Strategy

Zomato is restaurant search and discovery and deliver business and was founded by Deepinder
Goyal and Pankaj Chaddah in the year 2008. Zomato currently operates in more than 24
countries. Initially, it started under the name Foodiebay which was later changed into Zomato in
the year 2010.

Zomato has also expanded overseas to Sri Lanka, Qatar, Turkey, Brazil, Indonesia, etc. Zomato
also claimed that it turned profitable in all 24 countries it operates in. In February 2017, Zomato
introduced its zero commission model in a partner restaurant.

Smart Tech magazine announced that Zomato was among the top 25 most promising internet
companies and has been getting regular investments from Info Edge India.

Under the demographic segmentation strategy, Zomato targets the age 18-35. People who want
to dine out and want to research the restaurants they wish to visit. Zomato has found a
larger target segment in the working professionals who want to dine out and also want to get
food delivered at their doorstep.

Zomato has also entered the experiential events segment and had launched the multi-city food
and entertainment carnival called Zealand. Zomato believes that there is an experience that is
needed to be built around food and Zomato has played a significant role in making that happen.

It intends to launch new products and business lines centered on food in both dine out and
delivery segment.

The main target customer of Zomato is the youth who are between the ages 18-35 and people
who often want to eat out with their friends and colleagues. It targets those customers who often
refer to ratings and reviews and want to take a decision if the place is good.

It is those customers who are seeking to have a good time with their friends and want to be
assured that the place is going to worth the price. It also targets the foodie who wants to
experience food and share it with people. Zomato has positioned itself as a platform that brings
restaurants, suppliers, consumers, food suppliers, and logistics partners together. It aims to create
a world where detailed food consumption and taste patterns across the globe and share that
intelligently with the suppliers.
 SWOT ANALYSIS - ZOMATO

STRENGTHS
 First Mover Advantage
 Evergreen Industry
 Fast expansion
 Fantastic design of the app
 Number of users

WEAKNESS
 Lot of expansion
required
 Word of mouth

OPPORTUNITIES
 Further Expansion
 More Acquisition
 Cloud Resturants
 Creating
ACommunity

THREATS
 Google’s schema
module
 Market Followers
and challengers
SURVEY OF THE CUSTOMERS BASED IN RANCHI
SOURCE (GOOGLE FORMS) -
https://docs.google.com/forms/d/e/1FAIpQLSeWwcvlECUW_0tPKWsx7vIr5s2kMXU693SDHx
4WmQ8nnitdvQ/viewform?usp=sf_link
  ECON
OMIC
TIMES
 THE
HINDU
BIBLIOGRAPHY
 GOOG
LE
FORM
S
 OFFICI
AL
SITE-
ZOMA
TO
 OFFICI
AL
SITE-
SWIGG
Y
 MARK
ETING
91
 CONCLUSION

This project was completely based on” DETAILED ACCOUNT ON DEMAND OF FOOD
DELIVERY APPS IN RANCHI CITY BY COLLECTING DATA FROM PRIMARY
SOURCES”
The project includes details about the individual companies that is Swiggy and Zomato which are
the market leaders in online food delivery apps.It was very difficult to draw a final conclusion
about the final leader in the business, but as the study suggests that ZOMATO clearly stands as
the winner closely followed by Swiggy.
The targeted customers for the survey was mainly the people receding in Ranchi, Jharkhand.
Ranchi is a very interesting place for this survey because most of its population is in the lower
age group and consists of STUDENTS of various colleges. The spending and consumption
behavior of this age group helps the food delivery apps to flourish in all ways. Apart from the
students the rest of people are mostly working and are in search of good quality food which is
pocket friendly, so the food delivery apps come in rescue.
The survey conducted with the help of Google forms gives us a fair picture about the market
scenario which was the actual motive of this project.
CONTENTS

 DECLAR
ATION
 ACKNOW
LEDGEM
ENT
 INTRODU
CTION
 SWIGGY
VS
ZOMATO-
WHO HAS
A
BETTER
CHANCE
OF
WINNING
 ALL