Minor Project Report

on

“Market Analysis and Trends - Zomato”

Submitted in Partial Fulfillment of the requirement for the

Award of the Degree

Bachelor in Business Administration (General)

Submitted To: Submitted By:

Dr. Heramb Nayak RITVI SINGH

Associate Professor SEM IV SEC A SHIFT 1

03314901721

Department of Business Administration

BATCH 2021-2024

DEPARTMENT OF BUSINESS ADMINISTRATION

Maharaja Surajmal Institute

Recognized by UGC u/s 2(f), NAAC Accredited ‘A’ Grade Affiliated to

Guru Gobind Singh Indraprastha University, Delhi

C-4, Janakpuri, New Delhi-110058

1
 CERTIFICATE

I, Ms. RITVI SINGH , Roll No. 03314901721 certify that the Minor Project
Report (Paper Code:BBA-114) entitled “ Market Analysis and Trends -
Zomato ” is done by me and it is an authentic work carried out by me.
The matter embodied in this has not been submitted earlier for the award
of any degree or diploma to the best of my knowledge and belief.

Signature of the Student:

Name of the student: RITVI SINGH

This is to certify that Project Report entitled “Market Analysis and Trends -
Zomato” which is submitted by RITVI SINGH in partial fulfilment of the
requirement for the award of degree Bachelor in Business Administration
to Maharaja Surajmal Institute Affiliated to Guru Gobind Singh
Indraprastha University, C-4, Janakpuri, New Delhi-110058 is a record of
the candidate own work carried out by him under my supervision. The matter
embodied in this report is original and has not been submitted for the award
of any other degree.

Signature of the Guide:

Name of the Guide: Dr. HERAMBH NAYAK

Designation: Associate Professor

2
 ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards

to my guide Dr. Herambh Nayak for her exemplary guidance, monitoring
and constant encouragement throughout the course of my thesis. The
blessings, help and guidance given by her time to time shall carry me a
long way in the journey of life on which I am about to embark.

I also take this opportunity to express a deep sense of gratitude for her
cordial support, valuable information and guidance, which helped me in
completing this task through various stages.

I am obliged for the valuable information provided by her in her

respective field. I am grateful for her cooperation during period of my
MINOR PROJECT REPORT.

Lastly, I thank my parents, teachers and friends for their constant

encouragement without which this would not be possible.

RITVI SINGH

03314901721

BBA (G)

SEM IV SEC A SHIFT 1

BATCH OF 2021-2024

3
 TABLE OF CONTENTS

S.NO PARTICULARS PAGE NO.

CHAPTER 1 INTRODUCTION
 Introduction 7
 Objectives of the Study 8
 Importance of the Study 9
 Literature Review 10-11
 Research Methodology 12-13
 Limitations of the Study 14

CHAPTER 2 PROFILE OF THE ORGANISATION

 Overview 16-17
 Mission and Vision 18
 Value Proposition 19
 Competitive Edge 20-21
 STP 22-23
 Customer Acquisition 24
 Competitors 25
 History 26
 About the founders 27-28

CHAPTER 3 CONCEPTUAL FRAMEWORK

 Business model 30
 Revenue Model 31-33
 Financial Model 34-37
 Technological Model 38-40
 Marketing Model 41-64

4
CHAPTER 4 ANALYSIS AND INTERPRETATION OF
DATA
 SWOC Analysis 66-68
 Growth Highlights 69-70
 Growth in Revenue 71
 Growth in hyperrevenue 72-73
 Statistics of Components of Zomato 77-79

CHAPTER 5 CONCLUSION AND RECOMMENDATIONS

 Conclusion 81-82
 Recommendations 83

REFERENCES

BIBLOGRAPHY

5
6
 CHAPTER-1
INTRODUCTION

7
 1.1Introduction

Online food ordering apps are the media by which local hotels and
restaurants, chefs, canteens are delivering take away and food parcel
directly to consumers footsteps. Due to increase in working young
generation in metro cities and hectic work life culture this type of idea is
easily spreading. This system has generated a new dimension to working
people’s kitchen. Now days consumers are getting more attracted towards
online ordering apps rather than home delivery of a specific restaurants.
In a process of online food ordering apps there is no human intervention
involved which gives it more privacy. Apps are having number of
restaurants, chef kitchens listed with their menu specifically. So, the
consumers need not to carry pamphlets and menu list for further orders. It
gives convenience to order food on click of a button. These apps can be
directly downloaded to smart phone which give them more accessibility.
By giving your address and profile, payment information account can be
created. However, the app needs to be downloaded by the customers on
their cell phones and register them on the app. Creating profile on apps
includes their address and payment information. Apps are having
different kind of mode of payments like credit cards, debit cards, cash less
accounts and free home delivery. Different apps offer different services,
offers, features or restaurants too. Downloaded app used to give some
coupons discounts, previous order history, some palette suggestions,
recent customers review on restaurants as well as dishes. This sector is
coming up with innovative ideas to provide their consumer convenience,
satisfaction and retention. There is a huge competition between free home
delivery given by particular restaurants and online food ordering apps.
Due to introduction of new technology and innovation consumers are
8
having so many options and varieties to choose from. Initially due to
adherences the investors were dicey and hesitant towards the idea but
after success of concept there are growing number of players in market.
Zomato, Swiggy, food panda, Ubereat, Just eat are some main players in
this segment. Few big restaurants brand own their own chain of delivery
like Dominos, Pizza hut, fassos, KFC.

9
 1.2 Objectives of the Study

 To do an analysis of the way Zomato has scaled up its operations,

expanded its business into various countries.

 To study in detail about Zomato’s business model, revenue model,

financial model and marketing model.

 To find out the strengths, weaknesses, future opportunities and

challenges of their business model.

 To find out how Zomato reaches to its targeted audience through

promotional strategies.

 The find out the secret of value creation for Zomato.

 To study about the marketing strategies of Zomato and find out

how it stays ahead of its competitors.

10
 1.3Importance of the Study

 Helps to analyse how the current marketing strategies have helped

Zomato to increase its market share and profits.

 Helps to understand what food delivery services like Zomato can

do to improve its service and marketing strategies taking into
account customers’ preferences.

 Helps in discovering the areas affected by organizational growth

and thereby helps in creating an organizational plan to cater to the
customer needs.

 Helps to fix the advertising budget in advance, and it also develops

a method which determines the scope of the plan, i.e., it determines
the revenue generated by the advertising plan.

 Helps in fixing the right price for organization’s goods and services
based on information collected by market research.

11
 1.4Literature Review

 Serhat Murat Alagoz & Haluk Hekimoglu (2012), opined that

e-commerce is dynamically growing worldwide, the food industry
is also indicating an increased growth. They have suggested the
Technology Acceptance Model (TAM) as a base to study the
acceptance of online food ordering apps. Their analysis of data
stated that the attitude towards online food ordering is due to the
ease and usefulness of online food ordering process and also vary
according to their innovativeness against information technology,
their trust in e commerce websites and few external influences.

 Ashoutosh bhargve (2013) said that Food panda an online food

ordering apps has been launched in the Indian market since May
2012. Foodpanda first major move was acquisition of
TastyKhana, which was started in Pune in year 2007.With
acquisition of TastyKhana and JUST EAT, it is now available in
over 200 cities and delivery partner with over 12,000 restaurants.
JUST EAT which was launched in Denmark in 2001 and was
listed publicly on the London Stock Exchange is also mentioned.
Their Indian venture was come as Hungry Bangalore in 2006. It
was reintroduced in 2011 when JUST EAT acquired a majority
share in the business. Today, the company partners with over
2,000 restaurants.

 H.S. Sethu & Bhavya Saini (2016), their idea was to analyze the
student’s perception, behaviour and satisfaction of online food
ordering and delivery applications. Their study shows that online
12
 food ordering apps secure their time due to easily availability. It
is also found that visibility of their favourite food at any point of
time and always access to internet, free data are the main reasons
for using the apps.

 According to Sheryl E. Kimes (2011), his study found that

perceived control and convenience associated with the online
food ordering services were
important for both users and non-users. Non-users need more
personal attention and also had high uncertainty towards use of
early technologies.

 According to Leong Wai Hong (2016), the technological

advancement in many industries has changed the business model
to grow. Efficient systems can help improve the productivity and
profitability of a restaurant. The use of online food delivery system
is believed that it can lead the restaurants business grow from time
to time and will help the restaurants to facilitate major business
online.

 According to Varsha Chavan, et al, (2015), the use of smart

phone mobile interface for consumers to view order and follow
has helped the restaurants in delivering orders from consumers
immediately. The increase in uses of smart phones and computers
are giving platform for service industry. Their Analysis concluded
that this process is convenient, effective and easy to use, which is
expected to better day by day in coming times.

13
 1.5Research Methodology

Research methodology is a way to systematically solve the problem. It

may be understood as a science of studying how research is done
scientifically. In it we study the various steps that all generally adopted
by a researcher in studying his research problem along with the logic
behind them.

The methodology followed for conducting the study includes the

specification of research design, sample design, questionnaire design,
data collection and statistical tools used for analysing the collected data.

1. Research design:
Research design is simply the framework or plan for a study, used as a
guide in collecting and analysing data. There are three types of
Research Design:-
• Exploratory Research Design:- The major emphasis in exploratory

Research design is on discovery of ideas and insights. • Descriptive

Research Design:- The Descriptive Research Design Study is
typically concerned with determining the frequency with which
something occurs or the relationship between two variables.
• Causal Research Design:- A Causal Research Design is concerned

with determining cause and effect relationship.

The research design used for this study is of the descriptive type.
Descriptive research studies are those studies which are concerned
with describing the characteristics of a particular individual or a
group. The report is based on secondary data collected from various
published sources such as Ministries of Government of India, research
institutes and websites.
14
2. Data collection:

TYPES OF
DATA-
In the survey two types of data are collected:
• Primary data: These data are those which are collected for the

first time and therefore original in nature.

• Secondary data: Data, which have already been collected by

someone else and hence passed through the statistical process.

DATA SOURCE-
• PRIMARY DATA was not used in the report.
• Analysis of this study is composed of SECONDARY DATA.

Therefore, for data collection, written sources are taken into

consideration. The study analyses Zomato's marketing techniques and
also suggests approaches to promote sustainable growth. The
secondary data is extracted from the following sources:
o Zomato website
o Journal articles
o Journals
o Business websites

15
 1.6Limitations of the Study

1. The current information in up to date in current times of study but

may change in future.

2. The information is based on secondary data and cannot be relied upon blindly.

Secondary data may be incomplete and lack accuracy depending on;

 The research design (exploratory, descriptive, causal, primary vs.

repackaged secondary data, the analytical plan, etc.)

 Sampling design and sources (target audiences, recruitment methods)

 Data collection method (qualitative and quantitative techniques)

 Analysis point of view (focus and omissions)

 Reporting stages (preliminary, final, peer-reviewed)

 Rate of change in the studied topic (slowly vs. rapidly evolving

phenomenon, e.g., adoption of specific technologies).

 Lack of agreement between data sources.

3. The secondary data can be manipulated by the companies which in

turn affects the study overall

16
 CHAPTER-2
PROFILE OF THE
ORGANISATION

17
 2.1OVERVIEW

“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 "Foodiehay" 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 Lys 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
18
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.

19
20
 2.2Zomato’s Mission and Vision

Zomato’s mission is better food for more people. Started in 2010, Zomato
offers services like restaurant search & discovery, reviews, home delivery
of food, online table reservation, and digital payments when dining out. It
also works with restaurant partners to provide tools that enable them to
engage and acquire more customers while empowering them with a last-
mile delivery service and a one-stop procurement solution
- Hyperpure, for ingredients and kitchen products. Apart from this,
Zomato has been focusing on providing transparent and flexible earning
opportunities to its delivery fleet, and contributing towards a more
sustainable society through its non-profit entity Feeding India.

Zomato co-founder Pankaj Chaddah had declared that the vision of

Zomato "is to be the global platform when someone is looking for food
locally."

21
 2.3Zomato - Value Proposition

The company model Zomato offers its clients a selection of values. The
aim of Zomato Zomato’s work is appreciated. Zomato focuses on the
QAAA model, which promises and offers customers and partners quality,
accessibility, accessibility, and portfolio. The following are the values of
Zomato, making Zomato unique and admirable:

Zomato works to maintain an impartial platform. Hyperpure constantly

helps to keep the food supplies high. Hyperpure Zomato’s project offers
fresh, squeaky, clean, and high-quality meals to its partnering eateries.
The most sought-after food hygiene grade is a quality symbol that is well
known at its partner restaurants. Zomato supply has extended from its
beginnings to increasing numbers of towns and cities. They are
vigorously growing their services. Now they give reservations for the
tables, cater to companies, and feed India.

The popularity of Zomato Gold speaks to Zomato’s efficiency in several

fascinating choices. Zomato always strives for the best and doesn’t leave
any stone unturned. They promise affordability without jeopardizing their
business. In opening up bands, Zomato believes in providing its clients
with new flavours and experiences across regional limits. They deliver
the best information to their consumers and assist them to make an
informed choice as readable as possible.

Zomato believes in creating value for its customers in order to sustain its
business operation. The company tries to bridge the gap between the
customers and restaurants by providing efficient technology application,
22
which has helped them reduce its delivery time.

23
 2.4 Competitive Edge Over Other Brands

4.2.1. Strategy: Zomato designs creative systems which engross a

customer’s interest. The Zomato Gold is a premium membership reward

system that offers BOGO (Buy One, Get One) and two plus two free
beverages to customers as a part of a unique dine- out experience.
Presently, 600,000 customers have Zomato Gold. This program has
helped consumers to eat out more which has led to an increase in
customer rush at a higher rate.

4.2.2. Strong Brand Name: A strong brand name is a must for keeping its

brand into existence in the market and Zomato successfully has been able
to build its brand that resounds with confidence and easy accessibility.
Many competing brands such as Food Panda and Uber eats have been in
this business, but in comparison to Zomato, they need to put more effort
into creating their brand awareness. It has been able to continuously
modernize through multiple channels and has ensured that the advantages
it has generated are built on.

4.2.3. Focus on technology: Zomato's greatest benefit offered to its

clients is its attractively designed user interface. The app is very much
appealing and user-friendly which has succeeded to provide a competitive
edge over other brands. Even for a beginner, the swiftness at which the
website of Zomato opens and mobile application is very fast and simple
to access. In developing a persuasive UI for its customers, Zomato offers
a lot of attention and effort. It has data analytics which has added to its
success in an amazing manner.

24
Since it is highly data-driven, Zomato was able to gain a competitive
advantage. The company can get operational benefits and commercial
productivities such as estimation of delivery time, optimization of
logistics, advertisement, and arrangement of supply. The goal of Zomato is
to introduce the cloud kitchen model, to extend its business with limited
resources and less fixed costs. Such importance on the development of
technology at Zomato will allow it to lead in the market.
With most businesses doing exceptionally well in the market, the food
industry is facing a lot of competition from many entrants. Google Maps
are used which provides a directory of local restaurants, including
customer feedback, pictures, and ratings on the site. The key advantage
over Google Maps is that the menu listing for Maps has not begun.
Zomato is also a favourite restaurant discovery platform for clients.

25
 2.5 Segmentation-Targeting-Positioning (STP) of Zomato

Segmentation:

If we visit the demographic segmentation strategy of Zomato, we can

discover that the brand targets the age 18-35. Along with ordering food
online, people also visit Zomato when they want to dine out or research
the restaurants nearby. Zomato has also discovered a larger target
segment in the working professionals because most of them want to dine
out frequently or order food delivered to their doorstep.

Furthermore, Zomato also brings in experiential events, via multi-city

food and entertainment carnivals, to spread positive and merry vibes
around food. Besides, the brand has also further plans of launching new
products and business lines associated with food both in the segments of
food delivery and dining out.

Target:

To sum up, the target customers of Zomato are usually the people aged
between 18-35 years, who love to dine out or have food delivered to their
homes. It is the youth that the brand targets who often indulge in
experiencing different food items with their friends and colleagues.

Zomato also caters to the customers who refer to the ratings and reviews
and then decides whether a place or a particular dish is good.

Positioning:

Over the years Zomato has positioned itself quite well as a platform that
26
brings restaurants, suppliers, users, food suppliers, and logistics partners
together. It aims to create a world where the food producers and suppliers
are bonded well with their consumers and work with mutual cooperation
Zomato has earned a towering reputation not only among its target
audiences but with others as well where the authentic reviews and
recommendations from Zomato users are a must before deciding on a
particular food item from a particular restaurant. It has truly become a go-
to app for Indian youths.Besides, with the launch of Zomato Gold, dining
out has turned more pocket-friendly for its customers than it was ever
before.

27
 2.5Customer Acquisition

ZOMATO.com is largely used by internet-savvy people with high

disposable incomes who look for dining or delivery options. A significant
number of their visitors are from corporate sector-a lot of people use the
website to order in food at work. Their server statistics show that
ZOMATO receives maximum traffic just before lunch or dinner time,
confirming the fact that the website caters to a highly targeted audience.

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

millions 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 cat-out or
order in from-i.e. menus, photos, maps, reviews, contact information and
restaurant features.

28
 2.6Competitors of Zomato

Though Zomato is very predominantly present in the industry, it does face

a lot of direct and indirect competition. Zomato faces direct competition
from Swiggy, and competition from other players, including:

 Faasos
 Box8
 Domino's
 FreshMenu
 Pizza Hut
 TravelKhana

Some of the other international competitors of Zomato are:

 DoorDash
 Grubhub Inc.
 Deliveroo
 Postmates
 ChowNow

29
30
 2.8 History of Zomato

Zomato which was earlier known as Foodiebay, was established in July

2008 by two IIT graduates namely Deepinder Goyal and Pankaj Chaddah.
The idea first struck Deepinder when his colleagues consistently had a
demand for paper menu leaflets of different restaurants, to order food.
That is when he thought of converting the restaurants paper menus to a
digital app, which is far more accessible and easier to use.

In the matter of 9 months, the company grew to become the largest

restaurant directory in Delhi and later expanded to other cities due to its
success. By 2012, Zomato had started expanding internationally to
countries like UK, South Africa, Qatar, Sri Lanka, South Africa, New
Zealand, Brazil, etc. During this course, the company had to change its
name since its last four letters of ‘Foodiebay’ coincided with ‘eBay’, the
company name was changed to Zomato in 2010 to avoid any legal issues.

In 2015, the company forayed into the food delivery business and went on
to launch Gold in India which was a subscription product, under which
subscribers would get access to complimentary food and drinks. Zomato
also launched Hyperpure, which directly works with Farmers to improve
the quality of food produce and supply fresh produce to restaurants. The
company now views its business as a combination of three key large
pillars which are Delivery, Dining Out, and Sustainability.

31
 2.9 About the Founders

The founders of Zomato are Deepinder Goyal and Pankaj Chaddah.

Both are IIT graduates and were working with Bain & Co in New Delhi
before they came together to launch Zomato.

Pankaj Chaddah and Deepinder Goyal

Deepinder Goyal

Deepinder Goyal is an IIT Delhi alumnus. Goyal was not a good student
back at school but he eventually made his way to the prestigious IIT.
After completing his graduation, Goyal was hired by Bain and Company,
where he served as a Senior Associate Consultant for a little less than 4
years, after which he founded Zomato.

Deepinder Goyal has waived off his salary for FY22. This was disclosed
in a regulatory filing of Zomato dated June 7, 2022.

Pankaj Chaddah

32
Pankaj Chaddah is a BTech, Mechanical Engineering graduate from IIT
Delhi. Chaddah completed his graduation and then went to join Bain and
Company, where he served for two and half years before joining
Deepinder to found Zomato. However, this co-founder resigned from
Zomato in May 2018, where he served as a "conscience keeper, and a
support system during upheavals," as he had described his role, for over
10 years. Chaddah founded Shyft (formerly Mindhouse) in November
2019, where he currently serves as a Co-founder.

Gaurav Gupta, who initially joined as the Global Head of the Advertising
sales of Zomato and COO and was later promoted to the Co-founder
position of the platform, resigned on September 14, 2021. Gaurav
headed the supply of the food-tech company.

33
 CHAPTER-3
CONCEPTUAL
FRAMEWORK

34
 Zomato’s Business Model

During the initial phase of the company, Zomato used to scan the menu
of the restaurants, keep it on the site and the menu was received by people. It still
follows the same formula, but has also added other services to its operation. The
business model of Zomato is quite different from that of other food delivery company
such as Swiggy and Foodpanda. The key partners of Zomato are Uber and London &
Partners that could launch Zomato in UK within expected timeline.

While the key resource of the company is that it has a large database of restaurants
across 10,000 cities in 24 different countries. The business model is based on
providing local restaurants search services and collecting data on food menus, contacts
and providing relevant information to their customers. The main channels for Zomato
are the mobile applications and its online website. The target audience of the company
are the users who try to find local restaurants of various cuisine and restaurants who
want their name to reach a large number of people.

Zomato also caters to customers that prefer home delivery, it helps out database and
market research companies. While the online service is built with mandatory rating
mechanism. The business model of Zomato has revolutionized the Food business
industries by incorporating various restaurants and making it convenient for people to
find restaurants, provide feedback, check listings, and availability according to their
choice of cuisine

35
 Zomato’s Revenue Model

Zomato in itself does not offer the products to customers but the revenue is massive.
Zomato is not just a food business, as it also into the advertising business. Zomato
business has two parts, one is the delivery business and two is that they are in the
advertising business. Today, Zomato has multiple revenue channels besides online
ordering, which most consumers would be familiar with.

Restaurant Listings and Advertising

Zomato first started out as a restaurant search and rating services. This brought in the
advertising revenues from restaurants who joined the platform. They further extended
this feature to food delivery and restaurant reservations, for this Zomato charges
commissions from restaurants that want to be placed on the feed. Advertising
is the major source of revenue for Zomato. The restaurants can promote their banner
on the site in order to get better visibility and appeal to a large section of the audience
via Zomato

Food Delivery

Through the food delivery business, Zomato charges a commission to the restaurants
on the basis of orders. The company earns through restaurants who pay a commission
for each delivery, which is then spilt among the delivery partners and the company.
However, the online food delivery only contributes a low percentage of income
compared to other revenue streams because of the huge competition and the need to
provide deep discounts etc.

Subscription programs
36
The next major source of revenue for Zomato is a subscription fee. Restaurants pay a
certain amount of fee monthly and in return, Zomato offers them the analytical tools.
Zomato has huge amount of databases that knows what a customer wants to eat, where
he/she wants to eat, what the consumers is searching for and knows all this
information through the cookies. It has a tool called Zomato order and is given to
restaurants, which helps them know about the consumers interest. The restaurants then
use this tool to flash their discount offers on food.

Live Events

Zomato has forayed into events space by partnering with restaurants and creating
limited events. By which they made a sale through the price of the tickets. Zomato
recently introduced Zomaland, and entered the live event market in 2019. Zomato
charges users an entry fee to attend zomaland where besides food, they can witness
live musical performances and other acts. Zomato also organized an entertainment
carnival in 2018, in Delhi, Pune and Bengaluru, where more than 100 thousand people
showed up.

White Label Access

The next source of revenue is app development. Zomato launched the service called
Zomato Whitelabel under which they give offers to the restaurants to develop and
customized food delivery app. It also works with cloud kitchens and restaurants for
consultancy services. Zomato works with select restaurant operators to help in
identifying locations for expansions at a minimal fixed cost, but with increased options
for the user. It provides the requisite licenses and operational enablement for such
restaurant partners.
37
Zomato Kitchens
Zomato also provides kitchen infrastructure services to select restaurant operators, it
works with entrepreneurs to set up and operate Zomato kitchen under various other
labels. This helps entrepreneur’s fund restaurant in the right location with an
investment of Rs. 35 lakhs. It also claims to offer returns in the range of Rs. 2 lakh to
Rs. 4 lakh per month to the investors and has so far completed with more than 180
affiliated kitchens.

Zomato Gold

Zomato Gold is a premium subscription based service which is offered by Zomato. It

started in 2018 and is a paid service that allows customers with Gold memberships get
complimentary food and drinks at the time of ordering form partner bars or
restaurants. However, the Gold service is only applicable to dine in orders and not
available for deliveries and can be used only once at each partner restaurant in a day.
Zomato Gold offers either 1 + 1 on food or 2 + 2 on drinks when the customers visit
their partner restaurants.

38
39
 3.1 Zomato’s Financial Model

3.3.1 FUND RAISING

Revenue from operations increased by 110% to INR 41.9 billion from INR
19.9 billion in FY21.

a) Food delivery revenue grew 126% YoY in FY22 , which was in line with
the GOV growth of the business.

b) Hyperpure revenue grew 170% YoY in FY22 which was primarily driven
by expanding operations from 6 cities as at March 31, 2021 to 10 cities by
Marc 31, 2022 as well as growth in number of unqiue restaurant partners that
purchased from
Hyperpure from 25,091 in FY21 to 51,111 in FY22

c) Other segments revenue decreased 15% YoY in FY22, primarily on account

of shut down of most of our international operations as we decided to focus
only on the India business. The Company also discontinued other non-core
businesses during the year

Other income increased by 297% YoY in FY22 to INR 4.9 billion in from INR
1.2 billion in FY21. Increase in FY22
has been primarily on account of increase in interest income from deposits by
INR 3.7 billion due to increase in
bank deposits of the Company from the funds raised during the IPO.

40
3.3.2 Mergers and Acquisitions

Zomato has acquired 12 startups globally.

 In July 2014, Zomato made its first acquisition by buying

Menu-mania for an undisclosed sum.
 The company pursued other acquisitions including
lunchtime.cz and obedovat.sk for a combined US$3.25 million.
 In September 2014, it acquired Poland-based restaurant
search service Gastronauci for an undisclosed sum.
 In December 2014, it acquired Italian restaurant search service Cibando.
 It acquired Seattle-based food portal, Urbanspoon, for an
estimated US$60 million in 2015.
 Other acquisitions of 2015 include Mekanist in an all-cash deal,
[69]
the Delhi-based startup MapleGraph that built MaplePOS
(renamed Zomato Base),[70][71] and NexTable, a US-based table
reservation and restaurant management platform.
 In 2016, it acquired Sparse Labs, a logistics technology startup,
[73]
and the food delivery startup, Runnr, in 2017 (renamed from
Roadrunnr when it acquired TinyOwl in 2016).
 In September 2018, it acquired Bengaluru-based food e-
marketplace, TongueStun Food, for about US$18 million in a
cash and stock deal.
 In December 2018, it acquired a Lucknow-based startup,
TechEagle Innovations, that works exclusively on drones, for
an undisclosed amount. Zomato claimed that the acquisition
will help pave the way towards drone-based food delivery in
India, building technology aimed at a hub-to- hub delivery
network.
41
 On 21 January 2020, Zomato acquired its rival Uber Eats'
business in India in an all stock deal, giving Uber Eats 10% of
the combined business.[78][79]
 On 29 June 2021, the firm signed a deal with Grofers to invest
nearly US$120 million in the online grocery firm by acquiring
9.3% stakes of the company.
 On 24 June 2022, Zomato acquired Blinkit for US$720million
in an all- stock deal.

42
 June2022

$720 million

43
 Zomato’s Technological Model

As ZOMATO is India's best online restaurant discovery guide it use

Superior technology in the form of:

 Featured and user friendly website.

 Global personalized Mobile app.
 Digital marketing channels.
 Business app for table management, POS system, online ordering.

3.4.1 ZOMATO app review:

 ZOMATO, the popular online and mobile restaurant guide, has an

android as well as an iOS app. Anroid app completely overhauling
the user interface and has added new features. They have more than
5 million downloads and a 4.1 star rating on their app.
 More than 50 percentage of access to ZOMATO has been through
mobile platform and seems to be a perfect strategy in a country
with increasing GPS enabled-smart phones like India.
 The ZOMATO app offers a much simpler user interface, in line
with the redesign of the ZOMATO website, with the home screen
offering large swappable images of nearby restaurants that lead to
their respective listings, in addition to options to browse restaurants
and search for them by entering keywords for name, location,
cuisine or dish.
 The Browse Restaurants option takes one to a menu that offers
mood-based recommendations. So, one can select if you're looking
to get food home delivered, going out for a meal, going out for
drinks or just catching up with friends. Selecting the location is the
next step, following which, the app offers a list of restaurants that
44
 match the criteria.
 There's a separate screen for location based restaurants search
through which one can sort restaurants based on the distance from
one's current location. One can apply additional filters such as
ratings, whether the restaurant is open at the time of the search,
cuisine, budget and other aspects.
 There's also a 'Featured Content' section that offers lists such as top
25 restaurants, foodie leader board (for regular users) and featured
reviews, among other content.
 Users can also post pictures for restaurants they've visited in case
they just want to post picture reviews. Pictures can be posted
through the restaurant's listing page or through a section within the
app that allows users to upload reviews and pictures of restaurants.
 Users can also add restaurants to their Wish list or mark them as
'been there' and favorites from their respective listings page.
 For the uninitiated, ZOMATO provides information such as
scanned menus, mapped coordinates, pictures, ratings, contact
details and user reviews for restaurants across a number of
locations in India, New Zealand, UK, South Africa, Philippines,
and Dubai.
 The app is available in the App Store and Google play store.

45
3.4.2 ZOMATO Business App:

1. 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.

2. ZOMATO base - ZOMATO Base is a cloud-based POS system to help

you manage your restaurant operations from a single platform

3. ZOMATO book- Table & reservation management.

4. ZOMATO order Online ordering.

5. ZOMATO whitelable Custom apps for restaurant.

Search & discovery services don't charge for listing an entity with them.

46
 3.2 Zomato’s Marketing Model

3.5.1 Zomato’s Marketing Mix

1. Product: Zomato is an app/website that displays its users the

restaurants and menu of the available food and allows the customer to
place an order online. Zomato offers the user with information of the
restaurant, its photos, charges, menus, and even reviews of the customer
and has given a platform where customers can express their opinions with
respect to the food and service of the food providers. In its marketing, the
core services include systems for Point of Sale, Restaurant Expedition
and Delivery Management, and Table bookings in advance.

2. Price: For restaurants, Zomato does not charge for placing their

information on their website portal. Zomato earns its returns is the

restaurant advertising which they display on their website. They promote
the restaurant’s banner that gives them full exposure to the user who logs
their website. They also offer consulting services to restaurants as to
when they will open their next outlet for the restaurant chains. It has
increased its Gold membership rates and also began cross-selling during
checkouts and introduced a phased delivery fee as well. Lunch is the most
common meal to be ordered online and the most preferred payment form
is card payment. Unsurprisingly, it is found, 95% of respondents ordered
online food because of promotional deals and discounts, and 84% due to
hassle-free and time-saving.
3. Place: The use of a mobile smartphone app for customers is to help

them see and give orders which helped the restaurants to deliver
consumers' orders instantly and this has led to the growth in the use of
mobile phones and computers and provided good business to the service
industry. Zomato, an online service is available on Windows platform,
Android, and iOS platforms. It is available in 24 countries which include
India, Australia, the USA, Chile, Malaysia, United Arab Emirates,
Portugal, South Africa, and many more. The UI is user-friendly and has
nine language options viz.
English, Italian, Spanish, Portuguese, Turkish, Slovak, Indonesian,
Polish, and Italian. Also, they are active on various social platforms like
Facebook, Twitter, Pinterest, and Instagram which are used to engage
with customers. Moreover, in comparison to mail- order days of the
Indian Postal Service, the logistic system has a considerable change. The
distribution and delivery channels can now be regarded as capable of
meeting consumer standards of speed and timeliness of delivery with the
mushrooming of many private logistic services.

4. Promotion: Advertising for Zomato is very precise, making it highly

targeted. They have an in-built platform for analytics that runs a lot of
queries and gets Useful knowledge out there. This renders it extremely
targeted. Zomato is Renowned for its incredible offers than its rivals.
Advertises Zomato Get great deals with animation and cartoons with a
caption Faster delivery. In marketing, Zomato is aggressive when It uses
guerrilla marketing in contrast to others. Zomato organized the Zomaland
festival as a part of a promotion, a food festival with entertainment like
music, dance, and gagsters. Zomato gives concessions and promo codes
to attract consumers.
5. Physical Evidence: Zomato is a service that does not offer any of its

products and it has no specific physical presence. The delivery system

consists of employees who deliver the food placed through an order from
the website or application of Zomato. The company acts as a third-party
scheme.

6. People: Zomato consists of a strong team of about 5,000 people who

strive to provide the best services to the customers. Small companies that
outsource their non- core business operations, such as the delivery of
food, are growing; historically this practice was followed only by large
businesses. The result was the rising attention and exploration of an
increasing number of proprietors and managers of the importance of
outsourcing food delivery services.

7. Process: Customer needs to login in with their registered phone

number and email address under Zomato. The location of the customer
gets traced and a list of restaurants of that area is displayed with the menu
which can be browsed and the order can be placed. Payment towards the
order can be made by cash mode or through online modes to wither. The
restaurant will approve the order as soon as it is made and dispatches it.
Zomato demands input after the delivery of food. Therefore, the whole
process is made simple for the user to have a hassle-free experience. To
dine at the restaurant, paper waste can be avoided because they operate on
a tablet so the process does not require paperwork. For example, they do
not use records to take the order. Also, it has a digitized menu card. There
is no need to wait for the waiters to take the order from a customer
heading to the restaurant. They get the order as soon as one occupies a
seat and It will be confirmed to the customer as soon as the order is ready.
So, despite the food being ready, there would not be any problem with
late delivery.
 3.5.2 MARKETING STRATEGIES

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.

Online Tools_ Search Engine Optimization (SEO), Search Engine Marketing (SEM)

SEO strategy has no other alternative and Zomato uses it to the fullest
extent. As we have already seen that most of its traffic (over 66%) comes
from searches made online. Zomato drives around 99.44% of organic
traffic and the rest comes from paid marketing campaigns. This proves
that Zomato is fueled by a foolproof SEO strategy along with working
hard enough to keep the brand soaring in the Google organic SERP
results.

Zomato has a has put in a lot of efforts in SEO. As per Uber suggest data,
it ranks in India for 816,952 keywords as on July 2019. Its organic traffic
is 6,719,882 users per month. These stats are really amazing.

43
How has it managed to do so well?

It is very difficult to get to know the Search Engine Optimisation

techniques used by Zomato because they have blocked all the SEO tools
from scanning their sites. However, we have tried to find out some of
their techniques and list them here.

Keywords in URL

Zomato targets over 900K keywords for their SEO purposes. Targeting
these many keywords and further optimizing them organically always has
an upper hand in SEO, which is why it has obtained a dominant position
in search results.

Zomato is equipped with a colossal directory of food and restaurants, and

this is a boon in disguise for their SEO. From the names of the restaurants
to the names of the dish, places, and more, everything happens to be
keywords that boost the SEO of the brand. Even phrases like “restaurants
near me”, “bars to dine in,” etc., also serve as useful long-tail
keywords for the brand.
Linking of the URLs

Zomato takes the top keywords in their niche and creates webpage URLs
of them. This tells the search engine that their pages are relevant to the
search query of the user. This is a very good strategy to ensure that your
website ranks.

Backlinks

Zomato gets backlinks from 12,274,172 unique domains. It also gets 233
backlinks from high authority domains like .gov and .edu domains. All
this increases the Domain Authority of Zomato’s domain and helps it
rank higher. The website currently has high authority backlinks from
over 13
million domains.

Internal Linking

As we all know, the common SEO strategy is to link specific URLs

relevant to the keywords. This helps search engines recognize our web
pages and show relevant search results for the users, which also passively
betters the ranks of the keywords.

The same thing happens with Zomato but on a larger scale where the
brand targets an overwhelming number of keywords and key phrases to
link in their URLs.

Keywords on the web pages

Keywords that include food names, restaurant names, and phrases like
“order food online in Mumbai” tell the search engines that these pages
have the content related to these search queries.

1.Offline Tools:
Attractive, colourful and good quality pamphlets, Word of mouth,
OOH, B2B Marketing, Press etc.

 Visual Advertising

Zomato’s visual advertising is as appealing as its other marketing

strategies. The brand in fact comes up with some of the best visual adverts
ever since it came into prominence. Regardless of whether it is their video
adverts or billboards, Zomato always comes up with impressive content
ideas to score well.

Zomato Billboards

 Broadcasting

Occasionally use advertising during high activity period like DIWALI,

NEW YEAR & other festivals.
2. Social Media Marketing:

Zomato is active on Instagram, Facebook and Twitter. As of July 2019, it

has 154k followers on Instagram, 1,899,405 followers and 1.42 Million
followers on Twitter. Let’s analyse how their posts are:
 Trendy
Zomato engages with the audience by posting on trendy topics. The brand
understands the audience’s nature. Hence, it promotes content which
makes users share it, comment on it and view it again and again. It
utilises trendy topics and posts simple images in order to interact with
viewers online.
One of the most noteworthy events in the field of sports is the Olympics.
During the 2016 Olympics, Zomato posted something like this.

Another trendy topic of the time was the game “Pokemon Go!” Zomato
capitalized on that as well.
Zomato gave a twist to the topic of Panama Papers.

Posting on the trendy topics built connectivity with the audience.

Probably, users don’t wish to think much when they are on social media.
As a matter of fact, users are there on social media to enjoy and see funny
content. And, when such content appears on their news feed, expect your
content to be shared. For sure!

 Current Affairs
Many in the United States and people across the world know about the
border issue between the United States and Mexico. Newly elected
President Donald Trump had promised that he would ensure that Mexico
would build the wall between the two nations and pay for it.
Zomato had some different plans in mind. Current topics were related to
food. “Taco lovers” would have surely reacted to this post in large
numbers. Such posts leave an impression on the social media audience.

 Comparisons
Zomato has been a master of utilizing this form of engagement. There
are tons of examples to showcase how comparisons have been carried out
by Zomato.
Here you go:
These two sets of people who eat.
Those who eat a lot and still never get fat vs others who eat less and still
can’t seem to stay in shape.

Girls tend to check the name of the dish and decide what to eat, while guys
usually look at the price of each dish before selecting it.
Yet another splendid image which showcases how people eat.
Yet, the best one is here,
There are two ways people eat
Pizza. They are –

You can relate to such images just by looking at it. You will like, share,
comment, recommend to others. That’s what Zomato wants, engagement
with you, interaction with you, a real-life user.

 Connectivity with the audience

‘How I ate your butter’.
Sounds wrong, right?
Does it remind you of something
else? It has to. How I met your
mother.
There is more. Check this.

Isn’t it similar to Game of Thrones?

How can Indians forget this? Demonetization
Users can relate to many things. Right from lifestyle or incidents in the
life of actors- actresses to social media content; users love such content to
which they can relate to. Wait. There is more to it.

 Fun
You wouldn’t miss out this.
It is related to your food habits. Zomato uses info-graphics in a way
which audience can relate too. 96% of the youngsters would relate to this
image with ease.
  Sarcasm
Ultimately, how can we miss out on
Sarcasm? Isn’t Facebook fully loaded
with such content? Check out how
Zomato posts sarcastic content

And beyond that While, we are sure; you wouldn’t like to miss these ones. At all!
Zomato’s Digital Marketing Strategy will have to keep changing
according to the current trends. They will have to find new ways to attract
their consumers’ attention. Right now, they are doing a great job. If they
continue working hard on it, they are going to reap a lot of benefits for it.

Unique Take on Twitter

Good communication always acts as a ladder that helps a business climb

to success and it is something that serves as an asset for every brand.
Effective communication not only helps in sustaining a business but is
also deemed as an incredibly powerful tool to boost overall engagement.
In Zomato’s case, it did just that!

Along with being engaging, Zomato’s voice on their social media handles
turned out to be quite eccentric, which helped in setting the brand apart
from its rivals.
For example, it was only in December 2020 that the brand started a
marketing campaign on Twitter, which asked Twitteratis to come up with
the most creative restaurant name that they could think of. This unique
campaign started to bring in comments and replies like anything.

Along with other marketing strategies and acquisitions, it is campaigns

like this that powered Zomato. Twitter had even declared Zomato as the
Best Brand Voice in 2020.

Another classic example of Zomato’s unique voice on Twitter and other

social media platforms is when the brand posted the groundbreaking
Tweet that said:

“Guys, kabhi kabhi ghar ka khana bhi kha lena chaiye”

Traditional marketers would quickly stand against such a stance but

Zomato rather used reverse psychology to its benefit, which garnered a
loud and unique response from all. The timing that the brand chose for
the tweet was bang on because it was during ICC World Cup 2019 when
it was customary for most of us to order food from restaurants.

This began to bring in waves of replies, comments, and tweets in return.

Furthermore, Zomato’s tweet also brought in other brands, who joined in
to support their unique post with their own creative taglines.

3.Paid Advertising:
Though paid advertising is a temporary marketing strategy that a brand
might opt for but it contributes a major part to keep the engagement up.
Effective paid advertising along with organic optimization significantly
improves the search results of a brand and Zomato never fails in doing
just that!

Zomato runs Search Ad Campaign using Google Ad words. It targets

keywords related to food, ordering online, names of restaurants and much
more. It targets users whose intent is to get some food delivered to them.

It also runs Google Display ads to target users on third party websites and
apps. Along with this, it runs promotions on Facebook and Instagram to
target users on these platforms.
4. 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.

Email Marketing Strategy of Zomato

We are all connected via our emails and thus, email marketing strategy
forms an important part of the marketing of a company. Zomato knows
how to utilize this effective tool optimally.

Many brands make efforts in using email marketing strategies to their

benefit but only a few can emerge with as witty and compelling email
marketing strategies as Zomato does. To maintain its brand loyalty,
Zomato combines compelling one-liners for the subjects, and a fitting call
to action to conclude them.

In one of its recent email marketing campaigns, Zomato themed its email
on Mirzapur season 2, one of the most popular Amazon Prime Video
series, to ride the hype that the series enjoys.

“Munna Bhaiya invited you to a weekend,” mentioned Zomato once.

At the start of another weekend, Zomato exclaimed “Enjoy a weekend to

guddu to be true.”

Furthermore, on another occasion, Zomato further used its email

marketing strategy to create a resume for the all-favorite biryani. Here,
the brand typically used phrases related to the food like “curryculum
Vitae of Biryani” and replaced “hire now” with “order now,” to form
tempting email templates that ensured a roaring success!

Zomato Email marketing

5. Key Partners and Collaborations:
 London & Partners
To extend its virtual food presence in European countries Zomato has
established a collaboration with London & Partners. In charge of
supporting Zomato with London & Partners

 Search for a London office location.

 Support for the recruitment process
 Intelligent wage advice
 Recruitment of management
 Positioning of work
 Research into the market
 Consultancy, policy, and compliance with accounting and legal procedures.

 Uber Taxi
For Uber Taxi users Zomato has allied to arrange a mode of transport to
their restaurant. The smart invention eliminates the ability to cope with
two different applications. Especially when clients strive to review, select
and find the ideal dining spot, all clearly and straightforwardly.
 Additional partners
These are payment firms such as Visa and PayPal.

3.5.3 Prominent Marketing Campaigns of Zomato

Zomato has also led a bunch of awesome marketing campaigns along
with its impressive marketing strategies. Here’s a look at 4 of the brand’s
most popular marketing campaigns:

 Zomato Premier League

Zomato has caught the Indians' nerve for cricket very early in their game
and has crafted tellable IPL marketing strategies, which include TV ads
and irresistible offers throughout the years.

Zomato has introduced the Zomato Premier League, which is an

exemplary attempt of the brand at gamification. Here, the brand has
exhibited a huge list of deals and discounts that are offered by the
participating restaurants for their customers. Moreover, the users also
stand a chance to predict the winners of the matches, and avail of further
discounts that will be unlocked whenever they are right in their
predictions.

The brand promoted this initiative with TV spots and on social media.
ZPL witnessed a huge success even last year, which saw participation
from over 4 million users!
  Zomato Gold Membership Programme

The company launched Zomato Gold as a paid loyalty program for the
users of Zomato, who can subscribe to the scheme with a monthly
subscription that would help them avail themselves of irresistible
discounts and complementary dishes.
This initiative turned out to be extremely profitable for the customers of
Zomato. Though Zomato Gold attracted numerous controversies from the
restaurant partners, which led to spreading a lot of negative vibes, it has
accounted for 12% of the brand’s revenues. Zomato Gold was available
in 41 cities and 9 countries, as of July 2021.

 On-time or free

Zomato launched the “On-Time or Free” campaign in December 2019,

which was modeled on Domino’s Pizza. However, here in Zomato, the
users can avail of this lucrative offer on all of its deliveries and not just
on pizza, as it was with Domino’s.

You can also avail this simply by tapping on the “On-Time or Free”
button on the Zomato app, which will get you a refund if Zomato is
unable to deliver food on time.

Zomato used the usual route of TV creatives, online advertising, and

social media platforms to spread the word about this marketing campaign.

 Mother’s Day Campaign of Zomato

Zomato ideated the Mother’s Day campaign in 2019, which didn’t fail to
strike a chord with all audiences. Through this campaign, Zomato made it
easier for the kids to order their mother’s favourite food using the app.
This campaign gives Zomato a terrific opportunity to target the kids
living in
their homes and those who live away, allowing them to gift their mom
using the Zomato app.
 CHAPTER-4
ANALYSIS AND
INTERPRETATION
OF DATA
 4.1SWOC Analysis of Zomato

SWOC Analysis is the most widely used technique for monitoring and
assessing a company's overall competitive role and its climate. Its primary
objective is to evaluate strategies for developing a company business plan
that synchronizes the organization's capital and skills with the needs of
the world in which it operates. Businesses use SWOC framework to
analyse Strengths, Weaknesses, Opportunities, and Challenges of their
businesses, competition and products. SWOC is a thorough analysis of
the environment in which the industry runs and aids in the projection of
different facets of the environment as well as incorporating them into the
organization's decision-making mechanism.

4.1.1 STRENGTHS
Zomato has the following Strengths:
(1) Customers review Zomato as a 'Specialty Product' which only

offers foods & restaurants.

(2) Brand awareness is very high among the customers and is rated as the

top product of the mind of customers.

(3) Global presence in 25 countries with more than 1.5 million

restaurants as their members.

(4) Advanced and updated technology with powerful and dedicated

employees of more than 1200 working under its roof.

(5) It offers a modest & user-friendly interface.
(6) It adopts an encroaching and pioneering marketing strategy.
(7) Brand has won numerous awards & honours.
(8) They have a strong website www.zomato.com, which receives millions of
visitors.
(9) The mobile app has more than five million downloads globally.
(10) The content of the mobile app is frequently updated which adds to

loyal customers for repurchases.

4.1.2 WEAKNESSES
Zomato has the following weaknesses:
(1) Search engine competition & rivalries apps imply restricted growth.
(2) Rapid growth implies vulnerability to corrupt content.
(3) Lack of training to the workforce in maintaining the standard of delivery of
food.
(4) The service in rural areas is limited.
(5) The behavioural risk stems from online merchants that have the

potential to behave opportunistically by doing fraud to the customers who

place an order from distance and which are personal in nature and also
the failure of the government to properly track all the online transactions.
It encompasses product risks, psychological risks, and efficiency risks for
sellers. The volatile existence of the Internet, which is not in the hands of
the online proprietors and customers, creates environmental risk. It poses
financial hazards and threats to privacy.
(6) Lack of getting personal table service, inability to see physically or

manage the product, and concern about processes of terms and conditions
of food delivery and thereof, returns, including the dissemination of credit
card number sharing over the Internet, is perceived as a drawback.
(7) Usage of online food delivery services could minimize home cooking,

which could have repercussions for customers' overall diet efficiency.

4.1.3 OPPORTUNITIES
The opportunities in Zomato are as follows:
(1) Opportunity to further expand to more countries.
(2) Coverage to more semi-urban and rural areas.
(3) Increased internet penetration with the usage of an increasing number

of smartphone users.
(4) The fast development of technology and introduction of a simpler user interface.
4.1.4 CHALLENGES
Zomato has the following challenges to face:
(1) Intense rivalry from other food aggregators.
(2) Protecting the user data due to cyber attacks.
(3) Lack of clear rules and regulations by the government as such

business model is subject to changes due to change in government

policies.
(4) Other players can easily imitate the business model affecting the

business in the long run.

(5) In the event of disappointment, online consumers turn rapidly to rivals

because options are wide without switching costs. Therefore, customer

retention is a challenge for all businesses operating through the medium
of online which in turn demands to put more effort and strategies for
offering higher customer satisfaction.
(6) Online food delivery service providers need to ensure that the food

reaches the customer in a fairlead time, and the lead time should be
shorter to retain the customer from taking the alternative forms.
 4.2Growth highlights

Average monthly transacting customer base grew by 116% in FY22

driven by healthy customer acquisition as well as retention. Zomato
ended this fiscal year with 15.7 million average monthly transacting
customers in Q4 FY22.

Zomato delivered 535 million orders in FY22, up 124% over FY21.

The increase in monthly transacting customers was the key driver for
order growth this year. Growth was also partly driven by an increase
in average monthly order frequency (e.g., average monthly ordering
frequency was 3.2 in Q4 FY22, up from 2.8 in Q4 FY21).
 Its average monthly active food delivery restaurant partner base
increased by 64% to 180k in FY22. We ended this fiscal year with
205k average monthly active food delivery restaurant partners in Q4
FY22. They continued to support several restaurants as they
recovered from the impact of Covid.

Its average monthly active delivery partner base grew by 139% to

285k in FY22. They ended this fiscal year with 316k average monthly
active delivery partners in Q4 FY22 to support the increase in order
volumes. They provide riders with attractive and flexible earning
opportunities. They are also provided with free accidental &
medical insurance cover along with disability / death coverage. Zomato
have also instituted a variety of programs for the overall welfare of
our delivery partners and their families.
 4.3Growth in Revenue

 What was Zomato’s revenue in Dec 2022: 1,948 crores (The revenue rose 75% to Rs
1,948 crore from Rs 1,112 crore in Q3FY22)
 The gross order value of Zomato in the final quarter of 2022: 58.5 billion Indian
rupees
 Percentage of increase in Gross order value of Zomato: 2%
 The Average order value of Zomato in 2023: ₹568 (From ₹395.4 in 2021 (Q4) it rose
to ₹568 in Q1 2023)
 Zomato’s revenue in the financial year 2022 jumped by 123% to Rs 4,109 crore.
However, the company in February 2023 also reported a higher net loss of Rs 346.6 crore
for the December quarter.
 The gross order value (GOV) of Zomato from the second quarter of the financial year
2021 to 2022 reported a gross order value of 58.5 billion Indian rupees.

Source: Zomato’s Annual Report

 4.4 User Statistics And Demographics
 Target customer base: 18-35 years
 Number of Zomato monthly active users in 2023: 80 million monthly active
users as of March 2023.
 Number of countries Zomato is present in: 24 countries
 Number of cities is Zomato present in: 3200+ cities
 Zomato’s market share in the food serving business: 55%
 Total number of visits to the Zomato: 90 Billion
 Percentage contribution of referrals to the site traffic: 1.39%
 The per cent of direct traffic to the analysed website on desktop: 43.34%
 Percentage contribution of social media to the site traffic: 0.80%
 Percentage contribution of display ads to the site traffic: 0.47%
 Zomato’s organic searches: 53.63%
 The monthly transacting customer base grew in 2022: by 116%
Zomato primarily targets the 18-35-year-old target group as it is most likely to order
food because of its tech-friendliness, busy lifestyle, and monetary stability. It is
present in around 24 countries and over 10,000 cities across the world.

Zomato Investments

 Number of acquisitions: 15
 Number of investments: 14
 Number of exits: 2
 Total funding amount: $2.6 billion
Zomato raised a total of $2.6 billion in around 22 rounds. It has made 14
investments and 2 exits so far. 29 investors funded it, and it has acquired a
total of 15 organisations.

79
 4.5 Dining Out & Zomato Gold Statistics

 How much did the revenue for dining-out sources increase from 2019 to
2020: 20%
 Number of Zomato Gold users: 900K
 Number of Zomato Gold users in India: 26000 in 2020
 Percentage increase in the number of Zomato customers as of Feb
2023? 70%
The dining-out business was growing steadily before the pandemic hit. There was a 20%
increase in the dining out sources of revenue and significant gains in EBITDA margins
across India and other international financial markets in the financial year 2020.
Moreover, there was an increase in the number of Zomato Gold members by 70% as of
Feb 2023.
However, post-pandemic, this business segment experienced a blow as customers
became more apprehensive of going to dine in restaurants. Thus, they introduced a
‘contactless dining’ policy where any interaction with restaurant staff or menu cards was
to be avoided. Zomato Gold was rebranded to Zomato Pro with an enhanced value
proposition for both the users and the restaurants, whose bills the users are supposed to
pay through the Zomato app.

80
 4.6.1 Hyperpure

Hyperpure is an initiative by Zomato that allows restaurants to buy vegetables and fruits,
meat and poultry, seafood and dairy, and all other groceries they might need. It works
directly with farmers and mills, that is, producers and processors, to source these
products.
It is present in 11 cities currently, including Delhi, Gurugram, Noida, Bangalore,
Hyderabad, Mumbai, Pune, Kolkata, Chennai, Ahmedabad and Chandigarh and serves
more than 25000 merchants per month. It experienced growth during the first wave of
COVID since restaurants found it to be a viable option, and it is still taking off as the
restaurants find it a suitable facility to get their stuff delivered to their doorstep.
However, the second wave could not accelerate its growth as much as the first did. But as
it started with 6 cities in India, it kept expanding and serving better with time and rosed
the growth of 169% to Rs 421 crore from the past year.

81
 Number of cities hyperpure is present in:11
 Increase in the revenue from Hyperpure: Rs 421 crore (Increased by 169% to Rs
421 crore in 2022 from $14.7 Million (2021))
 Increase in the number of restaurants: 486 to 2256 in 2020, 12000 in 2021, to
25000 in 2022.

82
83
 CHAPTER-5

CONCLUSION AND
RECOMMENDATIONS

84
 5.1 Conclusion

According to current trends, Zomato's Digital Marketing Strategy will

have to keep advancing. They need to find fresh ways to draw more
interest in their customers. They are doing a stellar job right now. If they
continue to work hard on it, they will reap more profit. Zomato needs to
be more dynamic in compete with other online food service providers by
timely making changes according to customer needs.

By introducing the notion to provide access for different restaurants and

cafes, Zomato has entirely revolutionized the functioning of the food and
restaurant business. It is imperative that Zomato should expand its
platform and improve its reach to a greater audience base. They should
invest more in new technologies and grab hold of them.

Zomato is increasing its reach day by day. By now it is already in 25

countries with 1.5 million listed restaurants and this data will not stop
here. They should begin establishing their base in other 3rd world
countries to gain the most out of them. Zomato needs to expand its reach
to various other countries and it needs to establish its base faster. It is a
major issue in the service sector that services can be very easily copied
and implemented. Hence Zomato needs to establish and expand itself
faster than others in order to stay ahead of the curve.

There are many new players emerging in this field daily, both small and
big. Zomato can initiate a partnership with several of its competitors and
at the same time keep an eye on the latest technologies and trends
happening around to stay ahead and grow further.

85
Zomato is an online-based service platform, hence they make the best use
of the digital platform. They should utilize various digital marketing
channels such as SEO, Emailing, and Content Marketing to promote their
newer service and offers.
In the past few years, the number of smartphones and internet users has
been increased tremendously. And so companies like Zomato has a
very lucrative opportunity to approach new users and convert them into
their customers. Also due to the covid-19 pandemic, the platform’s
growth has further enhanced.

86
 5.2Recommendations

(1) In rural sectors, its reach is not very high. The brand needs to

leverage it through aggressive ads, with more and more

technical avenues and opening up.

(2) Some online sites have a fake review scheme that misleads

the customer. Therefore, Zomato needs to check the validity

of such reviews by having a reward-based scheme.

(3) By adding new features, such as a virtual restaurant tour,

Zomato also needs to keep innovating. It must introduce live

recordings and video shots from restaurants, cafes can be
updated features especially if good bands are performing. To
draw more consumers, the brand should use its most used
features.

87
 REFERENCES

[1] Das, J. (2018). Consumer Perception Towards “Online Food Ordering

and Delivery Services”: An Empirical Study. Journal of Management

(JOM, 5(5), 155–163.
[2] Kapoor, A. P., & Vij, M. (2018). Technology at the dinner table:

Ordering food online through mobile apps. Journal of Retailing and

Consumer Services, 43(1), 342– 351.
[3] Panigrahi, A., Gaur, V. (2020). A Case Study on Zomato – The online

Food king of India. Journal of Management Research and Analysis, 7(1),

25–33.
[4] Raina, A., Rana, V. S., & Thakur, A. S. (2018). Popularity of Online

Food Ordering and Delivery Services- A Comparative Study between

Zomato, Swiggy and Uber Eats in Ludhiana. International Journal of
Advanced in Management, Technology and Engineering, 8(1), 350– 355.
[5] Bhanot, T. (2020). Assessing the Emergence of Zomato as the Market

Leader in the Online Food Service Segment in India in Terms of

Marketing and Consumer Perception. International Journal of Science
and Research, 9(7), 1729–1735.
[6] Harshleen Kaur Sethi. (2017). Product and Brand Strategy of Zomato.

International Journal of Engineering Research and Technology, 6(6),

711–716.
[7] Neetu Dhayal, A. S. (2014). Management Sociology & Humanities

ISSN 2277 – 9809 (online) Shri Param Hans Education & Research
Foundation Trust. International Research Journal of Management
Sociology & Humanities, 5(12), 21–25.
[8] Chavan, V., Jadhav, P., Korade, S., & Teli, P. (2017). Implementing

88
Customizable Online Food Ordering System Using Web Based
Application. International Journal of Advanced Research in Computer
Engineering & Technology, 6(4), 722–727.
[9] Pinto, N. L. (2013). Understanding the Barriers to Online Shopping

Among Indian Consumers. IMPACT: International Journal of Research

in Humanities, Arts and Literature (IMPACT: IJRHAL), 1(3), 35–44.
[10] Madhuram, P. (2019). Original Research Paper Management

Research Paper on Consumer Behaviour Towards Food. Indian Journal of

Applied Research, 9(7), 22-24.
[11] Chai, L. T., & Yat, D. N. C. (2019). Online Food Delivery Services :

Making Food Delivery the New Normal. Journal of Marketing Advances

and Practices, 1(1), 62–77.

89
  BIBLOGRAPHY

 https://www.marketing91.com/marketing-strategy-of-zomato/
 https://www.zomato.com/who-we-are
 https://www.pdevice.com/how-to/the-quickest-way-to-order-food-online-
how-to- oderonline-from-zomato-official-website/8004
 https://en.wikipedia.org/wiki/Zomato
 https://food.ndtv.com/news/zomaland-kickstarts-today-all-the-details-you-
need-to- knowabout-the-food-and-entertainment-festival-2148209

90