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A Summer Internship Project Report ON "Online Ordering Business"
A Summer Internship Project Report ON "Online Ordering Business"
Executive Summary
This is a great honor for me to present my internship report titled “Launching three cities under
C-500 project of Zomato”, authorized under your supervision, as a partial requirement for the
completion of Internship.
This report is a representation of my experiences, learnings and overall understanding of sales
department of Zomato.
I am also thankful to Ms. Aanchal Chawla, Sales manager Zomato (Patiala Circle) for her
constant support and guidance. I do believe I worked as per her expectations and helped her out
in launching three cities on Zomato platform. In case of any shortcomings or requirement of
clarification on any aspect, I will always be available to answer any queries and provide
assistance regarding the same.
Acknowledgement
Thanks to my classmates as they helped me in understanding the importance of sales department
in any firm and how I am capable of doing sales. It is because of their belief and constant
cheering up throughout internship period, I was able to learn, explore and understand sales at
core level.
Special thanks to my team leader Ms. Aanchal Chawla, who like a guide monitored my
performance and made me learn crucial aspects of sales at ground level. She many times made
me face challenges and taught me how to overcome them. These two months of internship were
full of learnings and challenges, and they made my knowledge about sales and marketing rigid.
An honorable mention to our logistics team, who worked just like us and helped us out in
launching three cities during these two months.
And in the last thanks to all the people I met throughout my internship as you made me learn
more about worldly affairs, market trends and challenges faced by a manager.
Table of Contents
Chap 1:
Introduction
Industry Profile
Organization Profile
Chap 2:
Review of Literature
Chap 3:
Chap 4:
Project/Training Description
Chap 5:
Conclusions
Major Finding
Learning
Chap 6:
References
Chap 7:
Appendices
Introduction
C-500 was an initiative of Zomato, which targeted launch of Zomato in 500 cities throughout
India. With the motive of providing food at doorstep, various interns and regular employees were
hired and asked to get on this mission.
Industry
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.
OUR MISSION
Our goal is to change what you eat. Changing how you eat is just a means to an end
Through the years
Our logo has been a source of identity and over time, it has been evolving in line with our
continued belief system.
COUNTRIES –24
RESTAURANTS-1.2M
FOODIES EVERY MONTH-120M
PHOTOS-30M
Our Values Humility Acceptance
Resilience
It’s always ‘us’ over Feedback is never taken personally;
‘me’. We don’t lose we break it into positive pieces and
We push ourselves beyond our ourselves in pride or strive to work on each and every
abilities when faced with tough times. confidence during element even more effectively.
When we foresee uncertainty, we individual successes,
address it only with flexibility. but focus on being our
simple selves in every Ownership
which way. People here don’t work ‘for’ Zomato,
they work ‘with’ Zomato. We treat
Spark every problem as our own, take
We believe in, stand for and are accountability and drive the change.
evangelists of our culture - both,
Judgement
within Zomato and externally with
all our stakeholders. It’s not our abilities that show who we
truly are - it’s our choices. We aim to get
these rights, at least in the majority of the
Our Journey cases.
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.
Zomans you may work with
Here are some of the key Zomans who lead our vision
.
Daminee Sawhney- VP HR Deepender Goyal-CEO &CO Founder
Two types of online platforms have risen to fill that void. The first type is the
“aggregators,” which emerged roughly 15 years ago; the second is the “new delivery”
players, which appeared in 2013. Both allow consumers to compare menus, scan and post
reviews, and place orders from a variety of restaurants with a single click. The
aggregators, which are part of the traditional-delivery category, simply take orders from
customers and route them to restaurants, which handle the delivery themselves. In
contrast, the new-delivery players build their own logistics networks, providing delivery
for restaurants that don’t have their own drivers.
HIGH
LOW HIGH
HIGH
LOW
COMPETITIORS
To be sure, India’s top two food aggregators, Zomato and Swiggy, currently also offer a cloud-
kitchen model as one of their services to help their partner restaurants with back-end supply.
Zomato Infrastructure Services (ZIS), launched in March last year, provides real estate and
kitchen equipment support to restaurant brands to scale their order volumes in new localities
without having to invest in setting up restaurant branches.
While the first cloud-kitchen was launched in Dwarka with the target to increase its penetration
to 100 kitchens by the end of 2018, industry sources say Zomato’s success rate with expanding
the model has been rather slow with only 2-3 locations being served even after a year of the
model’s launch.
ZIS is not the same scalable model as the delivery platform and the organic way of growing it
is very arduous and a tediously long process. The problem will be locking the customer in a
market that unfortunately is not a very loyal one,” said the founder of a food startup that was
acquired last year.
Swiggy, which launched a similar business called Swiggy Access in November, has also found
expansion of the model to vicinities within Bengaluru itself a rather slow process. For Swiggy,
its new supply business--which includes its private label The Bowl Company has also its
cloud-kitchen model Access--will garner significant focus in 2018, a strategy for which it also
acquired the leadership team of 48East in December.
Beyond highly frequent volumes driven by low-priced meals in such a model, attractive
margins on the cloud or invisible kitchen model pegged at 35-45% makes the proposition
rather enticing for delivery firms as the timeline to grow their topline gets squeezed further.
Customer behavior
Customers drawn to the new online food-delivery platforms have a different set of needs and
expectations from the traditional pizza customer. Our study uncovered the following important
traits:
Platforms are sticky. New-delivery
platforms, which, personalize the
Orders spike on weekends. The ordering experience by storing
highest-volume days for the relevant customer data, are sticky
online platforms were Friday, (Exhibit 1). Once customers sign up,
Saturday, and Sunday, when 74 80 percent never or rarely leave for
percent of orders were placed. another platform, creating a strong
winner-take-all dynamic, in which the
Meals are for home. Most orders— reward goes to the player who can
82 percent—were from home, while sign up the most customers in the
only 16 percent were placed from shortest amount of time.
the workplace.
The enthusiasm from the restaurant industry and users from the lesser-known cities have
been nothing less than an enormous boost to our strategy of reaching out with our vision of
‘better food for more people’
Zomato CEO Mohit Gupta said that one of the company’s key learning remains that
every Indian city, whether big or small, possesses excellent exploration for business because of
mobile penetration in households.
It works on a commission model and it charges restaurants for food delivery,
advertisement and visibility on Zomato Platform. Right now, by the end of August 2019, Zomato
is targeting to be operational in 500 cities of India and this initiative known as “C-500.
The end of the company initially had set this 500-city target for August or even
September.
Meanwhile, Jeff Bezos’ Amazon is also eyeing Indian food-delivery market and is
planning to launch its own services this year, news agency Reuters reported. This move is
expected to raise competition for the current market dominators such as Zomato, Swiggy and
Uber Eats. Amazon has already started roping in staff for its ambitious plan, the news agency
cited sources as saying. Food delivery business has been on a northward trend of late and the
phenomenon is not exclusive to India. The industry is expected to see a steady 3.7% CAGR in 2020,
according to a McKinsey report.
Methodology
Zomato is now in 500 cities: An opportunity in every region thanks to mobile phones
By: Prachi Gupta |
Published: July 31, 2019 4:58:47 PM
Zomato has grown at a rate of 4 new cities every day in the last month and is tapping tier 3 and
tier 4 regions to establish a strong foothold in the domestic food-delivery market.
As the food-aggregator app Zomato establishes its presence in 500 cities, Zomato CEO Mohit
Gupta said that one of the company’s key learning remains that every Indian city, whether big or
small, possesses excellent exploration for business because of mobile penetration in
households. The food aggregator application Zomato now serves in 500 cities and has expanded
its presence from 25 towns in July 2018 to 20 folds at present. While the company has witnessed
three times growth in the top 15 cities, 40% of Zomato’s business comes from emerging regions,
Zomato announced.
Zomato has grown at a rate of 4 new cities every day in the last month and is tapping tier 3 and
tier 4 regions to establish a strong foothold in the domestic food-delivery market, the Deepinder
Goyal founded company said. With this, Zomato has also extended its services to three north-
eastern states – Meghalaya, Assam and Tripura. The company deploys a data-driven strategy to
choose potential cities for serving. The food-aggregator takes factors like overall population,
student population and restaurants into account, Mohit Gupta, CEO- Food Delivery, Zomato
said.
In its latest addition, Zomato has connected several new Indian cities to its service network.
Some of them are Pushkar (Rajasthan), Ankleshwar and Mehsana (Gujarat), Fazilka and
Nawanshahr (Punjab), Vrindavan and Azamgarh (Uttar Pradesh), Silvassa (Daman), Chittoor
(Andhra Pradesh), Pataudi (Gurgaon), and Shillong (Meghalaya) Kanyakumari, Kodaikanal.
. “We believe [online] penetration rates will grow further as the market matures,
eventually reaching 65 per cent per year,” the report said.
Here are our 4 key learnings so far:
Far and wide is possible: Every city in India, big or small, thanks to the advent of mobile penetration, is
an opportunity worth exploring. We are yet to go wrong on any geographic conjecture of launch. We
relish the rush of being super-quick operationally but are also humbled by our collective efforts of making
things happen in the not-so-inhabited regions. All our metrics (orders per thousand, value per order) have
proven the commonly held belief that India’s economy is driven by Tier 1 and II cities only, wrong. The
top 15 cities contributed 100% of our Delivery business 12 months ago. While the growth in those cities
has tripled in the last 12 months, other cities now contribute 40 per cent of our business.
Two wheels, one ecosystem: Staying true to the belief system behind our Delivery Universe, we are
mobilizing people towards better employment. With every single launch, we are observing a spike in the
number of delivery partners who are willing to work with us – not just those who own motorcycles but
also those with bicycles at their disposal.
The beauty of brand recall: One of the most interesting and repetitive events has been the way people
(both users and restaurants partners) have shown a desire to have our food delivery services made
available in their respective cities and towns. We didn’t have to sell our brand hard as people are already
aware of how synonymous we are with food.
Challenges don’t last long: With a dedicated team and a singular focus, we have set out realistic goals
across varied geographies. It goes without saying that we’ve faced operational challenges — for instance,
despite their overwhelming drive to join us, we had to educate some of our restaurant partners about our
concerns for food safety — but none of them has made us regret our initial call to go ahead. And we
firmly believe that this won’t change in our next milestone either.
We hope to keep going until there are no new places left to explore.
Lastly, our ongoing journey has made us acutely aware of the India’s rich diversity and I am particularly
proud of my team for making it possible to bridge the gap between our users and their favorite food items.
PROJECT TRAINING/DESCRIPTION
Market Recce
Time Management
Merchants pushbacks
Discounts
Training deployments
Food License
Launch date
Market Recce
It displays the generic view of the market considering different parameters i.e., no of
restaurants in the location, different locations of the city, high customer centric points,
key attention areas.
We have to identify the location into sub locations for the delivery areas.
Target the no of restaurants in the area for making it a sub location.
Get well versed with list of the res base i.e., no of restaurants and eating points in the
location.
4Ps
Place-Get along with the working conditions of the place.
Price-Set the pricing of the model according to the place.
Promotion-Extensively approach on the promotional activities i.e., marketing and advertising of
Zomato.
People-Awareness and communicating to the people well before the launch. Tell them to avail discounts
on food.
Merchants pushbacks
One of the common problems in client interaction is pushback from the idea.
Awareness play major role in establishing a brand name in city minds of people.
Disagreements and a lot of queries put them on backstep.
Why this brand is introducing in this market and what benefit as clients we are going to
get.
Discounting conditions, benefits to the business.
Procedure of action, difficult, traditional way of working.
Documentation
CONCLUSION
In the end I would like to congratulation Team ZOMATO for providing a privilege opportunity
to be a part of remarkable mission in India. A lot of interns were hired across the nation from the
renowned Colleges and B schools in the Sales and Operations teams which have successfully
contributed to the organization goal.
A special thanks to my Team Leader who supported and motivated in every hurdle, through
which I became more ferocious and versatile in takin care of the responsibleness and duties
which were given.
MAJOR FINDINGS
A corporate world, everyone dreams. Working with the best organization and contributing to
their success is a lot more an achievement for an individual. I would really say that working for
Zomato made me the happiest person after completion this mission C500.If in future given an
opportunity, I would really want to start my career in that organization.
Business Opportunity
Strategy
Brand
Build Relations
Marketing and Advertising
LEARNINGS
Abundant of learnings with full of challenges around every corner. A sphere of exposure, which
created full of opportunities in smaller cities is one of the great learning from the business point
of view.
Communication Skills and Empathy
-Communicate effectively and build relations.
- Pay attention to emotions.
https://www.theweek.in/theweek/business/2019/04/26/how-food-
aggregator-apps-like-swiggy-zomato-are-trying-innovative-business-
methods.html
https://www.statista.com/outlook/374/119/online-food-delivery/india
https://economictimes.indiatimes.com/small-
biz/startups/newsbuzz/why-are-food-aggregators-leveraging-the-
delivery-only-model/articleshow/69178702.cms
https://www.zomato.com/about
https://retail.economictimes.indiatimes.com/news/food-
entertainment/food-services/zomato-expands-food-delivery-service-to-
500-cities-in-india/70482572
Appendices