Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 76

Industry Oriented Project

Project Title - A Study to Understand consumer perception


towards food delivery industry

Submitted in partial fulfillment of the requirements for


Post Graduate Diploma in
Management Academic Year: 2021-
2023

Submitted By
Name: Sovan Mukherjee

Roll No.: 54 (M1)


PGDM (Marketing) Batch: 2021-2023
DECLARATION

I hereby declare that this project report titled ‘A Study to understand ‘Consumer Perception

Towards Online Food Delivery Industry’ submitted in partial fulfillment of the requirement

of Post Graduate Diploma in Management to Chetana’s Institute of Management and

Research is my original work and not submitted for the award of any degree or diploma

fellowship or similar title or prize. References to work and related sources of information

have been duly acknowledged in the report.

The project has been carried out under the guidance of Dr. Anita Saxena.

I further declare that I have no objection and grant Chetana’s Institute of Management and

Research the right to publish any chapter/project or use it for future reference if they deem fit.

Place: Mumbai

Date:

Division: M1

Roll No: 54

Signature:

Sovan Mukherjee

3
Certificate

This is to certify that the project titled “Consumer Perception Towards Online Food Delivery Industry”
submitted by Sovan Mukherjee to Chetana’s Institute of Management & Research in partial fulfillment
of the requirement of, Post Graduate Diploma in Management has been done under the guidance of the
undersigned during the period December 2022 to April 2023.

Date:
Place: Mumbai

Dr. Nandita Mishra Dr. Anita Saxena

Director Faculty Guide


ACKNOWLEDGEMENT

I would like to thank Chetana Institute of Management, Mumbai for providing me with this
opportunity to complete my Industry Oriented Project Report. I am very fortunate to get Dr.
Anita Saxena as my project guide for this project. Her insights, feedback, and constant
support helped me in the project work successfully in a well-organized, organized manner
and on time. I express my gratitude towards her for taking the time out of her busy schedule
to provide constant guidance and motivation that helped me to learn more from this project.

Sovan Mukherjee

4
Chapter Conten Page no.
t
1. Summary 8
1.1 Introduction 9
1.2 About the Company 28
1.3 Social Relevance (CSR) 47
2. Literature Review 49
2.1 Review of Literature 50
2.2 Problem Statement 52
2.3 Objectives of the Project & Study 52
3. Research Methodology 54
3.1 Research Design 55
3.2 Data Collection 55
3.3 Sampling 60
3.4 Data Sources 60
3.5 Methods of Data Analysis 60
4. Analysis and Findings 57
5. Conclusion 68
5.1 Conclusion 69
5.2 Recommendations
5.3 Limitation 72
5.4 Learnings and Challenges 74
6. References 75

5
Fig. No. & Table Page
Details
No. No.

Fig 1.1 The market size of India's food delivery industry 11


Fig 1.2 Market composition 12
Fig 1.3 Market growth 13
Fig 1.4 Growth Drivers 16
Fig 1.5 Market Split and Major Players 16
Fig 1.6 Recent Trends 19
Fig 1.7 Trends in top cities 19
Fig 1.8 Success factors 19
Fig. 1.9 Loyalty factors 20
Fig 1.10 Vision of Zomato 30
Fig 1.11 Mission of Zomato 30
Fig 1.12 Revolution of the Zomato logo 31
Fig 1.13 Acquisitions of Zomato 31
Fig 1.14 Financial data for the past three years 36
Financial comparison of online vs offline for t h e
Fig 1.15 past 36
two years
Fig 1.16 Hyper pure revenue of past two years 36
Fig 1.17 Revenue breakdown of past two years 36
Fig 1.18 Quarter financials of the current year 37
Fig 1.19 Operation revenue w.r.t loses 37
Fig 1.20 Delivery unit financials 37
Fig 1.21 The global reach of Zomato 38
Fig 1.22 Traffic through SEO 39
Fig 1.23 Instagram marketing 41
Fig 1.24 Facebook marketing 41
Fig 4.1 Respondents based on their Age 53
Fig 4.2 Respondents based on their gender 54
Fig 4.3 Respondents based on their location 56
Fig 4.4 Consumer preference for buying food online 57
Fig 4.5 Reasons for not ordering food online 58
Fig 4.6 Consumer awareness for online food delivering apps 59
Fig 4.7 Consumer preference on the online platform 60
Fig 4.8 Consumer preference on apps for ordering 61
Fig 4.9 Frequency of ordering food 62
Fig 4.10 Purpose to order food online 63

6
Fig 4.11 Preferred Mode of payment 64
Fig 4.12 Motivation factors 65
Fig 4.13 Problems ordering food online 66
Fig 4.14 Importance of safety measures during COVID 67
Fig 4.15 Consumer knowledge of food prices 68
Fig 4.16 Overall customer satisfaction 69

7
SUMMARY

This report summarizes my project undertaken for Zomato Ltd. Studying the online food
delivery sector pushed me to explore more after study holistically studying the e company
reason for choosing this company was despite multiple efforts by restaurant owners, why do
customers at large prefer ordering food online as compared to offline services all pervasively.
Also, after knowing the company insights and personally working in this industry, I chose
this to be my final year report for the Industry Oriented Project. Exploring the company and
all its products gave me a very deep knowledge, I conducted a market research project to
study the consumers who prefer to order food through online portals. Altogether it was a
great learning experience wherein I learned a lot from continuous innovation to marketing of
the products. Most Importantly I learned more about the industry and the company in deep.

8
CHAPTER 1 INTRODUCTION

ABOUT THE SECTOR

Online food delivery assists the public to command and treasure the food products they want
at their access.

It comprises cruising a website or app, picking from the variability of saucers accessible, and
making expenditures in manifold ways. Website/app apprises user about anticipated food
groundwork and delivery time.

These influences united with characteristics such as luxury, rapidity, and precision of
delivery, intensification the petition for these amenities in India.

The online food delivery market is no elongated an interloper, but a title-holder. In the
early 2000s, having a food ordering market was measured as modernization, but today
the segment has prolonged to include miscellaneous demographics from around the world.

The food delivery market endures to cultivate at a stable stride as more millennials transfer to
ordering online. And as more troupes linger to enlarge this section, they are perceiving
new online food ordering tendencies.

Chirrups, computer-generated aides, smartwatches, wagons, online ordering via TV screens,


as well as seeing with your own eyes are now part of this e-commerce
sector.

Contemporary conveyance possibilities include outmoded anthropological transfer or crazy


replacements like automatons, pizza buzzes, and descend deliveries.

The new multi-restaurant food delivery software system not only progresses the way food
is brought but also generates a level playing arena for strangers employed through computer-
generated kitchenettes. And through a bionetwork at brings wholesalers composed,
businesspersons are also contributing to civilization by instigating food waste apps.

9
MARKET SIZE

• Quick digitization and reception of online food delivery services among consumers in
Tier I and Tier II cities are fueling the evolution of the market.
• However, the low-cost food and merchandising products offered by local muddled
players in Tier II and Tier II cities and townships are expected to confine the
development of organized players.
• The online food collectors’ market in India has seen a solid upsurge in investments
received by reputable industry players such as Zomato and Swiggy.
• In 2019, the organized food market, including restaurants, was valued at $21 billion,
of which online food delivery was reported for around 14%.
• In 2020, the Indian online food delivery market was treasured at around US$2.8
billion. This was a reduction compared to the earlier year when the market size was
roughly US$4.3 billion. By 2025, the food delivery market was likely to reach a value
of approximately US$14 billion.

10
MARKET SIZE
12.7
value in million us dollars

4.35
2.9

2019 2020 2025*


Axis Title

Fig 1.1. Market size of Indian food delivery industry

• Revenue in the online food delivery segment is expected to reach US$13.95bn in


2022.
• The revenue is anticipated to show a compound annual growth rate (CAGR of 2021-
2025) of 11.85%, ensuing in an assessed market volume of US$21.88bn by 2026.
• The largest sector of the market is restaurant-to-consumer circulation with an
estimated market volume of US$9.67bn in 2022.
• In a comprehensive comparison, most of the revenue will be engendered in
China (US$157 in 2002).
• The Average Revenue Per User (ARPU) in the online food delivery segment is valued
to be US$42.52 in 2022.

• In the online food delivery segment, the number of users is expected to reach 535m
users by 2026.
• User tear in the online food delivery segment will be at 25.0% in 2022.
• The food delivery market in India is devastated and shopkeepers are implementing
organic and inorganic growth policies to rout each other in the market.

11
• The Food Delivery market tale in India provides information about several market
vendors including Bundle Technologies, Miscellaneous Pvt. Ltd., Domino's Pizza,
Dunzo Digital Ltd., McDonald's Corp, Ola and Foods.

Fig 1.2. Market composition

• The first 7-10 cities version for about 70% of the business. The lingering 490
cities make up the rest, but they linger to grow.
• In the past six months, the business has creased in this small town. We are seeing an
antagonistic movement of people into small towns, and small towns are growing
rapidly as hesitation about ordering food online decreases. In these places, people are
much more cognizant that food can be distributed instead of going to a restaurant.
• The older parent, not the inventive aim cohort, inductees the order. For brands focused
on delivery, the break is open.

12
lOMoARcPSD|27819348

GROWTH AND MARKET VALUE

• The growth rate of online food ordering and restaurant delivery has been over 25%
over the past five years
• Although guesstimates diverge from place to place, the online food delivery rate is
anticipated to outdo $221 billion by 2025. This accounts for about 45% of total
restaurant sales.

In percentage terms, around 45% of the total food ordering market is now being

placed online.
• Cooperatively, the food industry has a twelve-monthly growth rate of about 3.5%, with
online ordering and food delivery growing at a twelve-monthly rate of about 16-25%.

Fig 1.3. Market growth

13
lOMoARcPSD|27819348

• The food delivery industry is subjugated by sovereign restaurants.


• India is expected to become the third largest consumer market by 2030, which will be
a foremost enhancement to the overall consumer economy.
• The implementation of digital services rivaled city and brand catering ecosystems will
fuel the growth of online food delivery.
• Food tech presently has an occurrence in more than 500 cities in India and increasing
consumer poise gives players new opportunities to “win with consumers” in incipient
markets.
• Total online expenditure in India is growing rapidly and is expected to grow by
24% over the next five years to exceed $133 billion.
• As a result of speedy digitization and progressively increasing feasting, the grasp
of food technology companies has amplified sixfold in the past few years and will
continue to grow in the future.

14
lOMoARcPSD|27819348

GROWTH DRIVERS

• The food delivery market in the US is principally determined by authorities with a


demanding exertion calendar and high-income levels, who scarcely find time to
concoct their meals at home.
• The market is currently perceiving growth owing to the snowballing infiltration of
headlong internet facilities and increasing sales of smartphones. This, pleated with the
swelling group of people going to work and increasing fonts of income generation, is
kindling the development of the online food delivery market in India.
• Although players are mainly concerted in the urban areas of the country, with
Bangalore, Delhi, and Mumbai representing the three largest markets, sellers are
now aiming for smaller cities as well, as they have robust growth potential.
• Moreover, the rising bandwagon of food items on the go and abrupt delivery models
that offer ease, (RTE) and fewer food delivery options are growing the demand
for online food delivery services in the country.

15
lOMoARcPSD|27819348

• Aristocrat or grid encouragement (50%) was important in getting people to try food
ordering online for the first time. It was followed by advertising (18%) as a stout
incentive for subways and high-income groups across the country. Shipping costs
(16%), food quality issues (12%), and lack of personalization (15%) are other reasons
customers haven't trialed with ordering food online so far.

Growth drivers that drove the


industry consumers to buy
through online food delivery.

Fig 1.4. Growth Drivers

Online food delivery market


players and their market split
that the consumers order their
food

Fig 1.5. Market Split and major players

16

TRENDS
lOMoARcPSD|27819348

Food delivery trends are growing rapidly.

• This food delivery learning is gaining impetus, but it has many glitches.
• Uber Eats, Domino’s, Zomato, and others are efficaciously testing drone delivery.
• There is a problem. Drones have inadequate aptitudes, cannot fly far, and
have petite battery life. But already veteran food delivery networks like Domino's
have used drones to deliver pizzas.
• If we trust that drone technology will become more justifiable and become more
bearable in a hyperlocal environment, its acceptance will rise steeply.
• Drone food delivery can reduce delivery costs by plummeting manual intercession
and tumbling fuel feasting.

• Autonomous Food Delivery

• It also surpassed the 2020 Food Delivery Trend Chart.

• Londoners are getting used to robotic food delivery.

• People at Milton Keynes are conveying out Starship Technologies robots for
groceries.

• In Virginia, students at George Mason University could send the same robot to
pick up food from restaurants and canteens around campus.

• Hungry inhabitants of Denver, Berkeley, CA can order food through Kiwi Bot.
So, this is already happening.

• As with drone deliveries, if these self-governing deliveries become cost-


sustainable, the next thing you'll notice is a little robot that collisions with your
doorbell.

• Contactless Food Delivery

• This is a food delivery inclination that has occurred in the Corona era.

• With the safety of customers and delivery leaders in mind, caterers use advanced
food delivery podiums to ensure unified contactless delivery.

17

• Delivery reps use progressive food delivery platforms to send customers


pictures of their orders outside the door.
lOMoARcPSD|27819348

• Clients accept orders and pay through protected digital payment gateways.

• Customers also admit significant material about the courier's body temperature
along with a timestamp to ensure 100% delivery perceptibility.

• The Eco-Friendly Food Delivery Trend

• As the demand for online food delivery grows, more cars will appear in the world.
This means a dramatic increase in the carbon footprint of the logistics industry. But
we cannot allow this.

• stability needs to be collided between mounting carrier deliveries and putting more
vehicles on the road. Specifically at a time when consumers are unhurriedly starting
to errand brands that are accountable for improving the quality of the environment.

• Research shows that consumers will continue to recompense brands for subsidies to
their community's obligation to sustainability, with 38% of Americans citing
sustainability as one of the two characteristics most helpful in building brand trust.

• Three in five adults (69%) say they are eager to pay more for food wrapped with
sustainable constituents. In the future, it is no astonishment that customers are
demanding a low-carbon supply.

• Crowdsourcing Food Deliveries

• Oscillations in petitions for online food delivery tend to be erratic and unembellished.
• As a result, it becomes grim to accomplish delivery service leaders and progress
stratagems to increase delivery profitability.
• Savvy Food Joints is using a crowdsourcing application to meet its lithe food delivery
requirements, especially due to the ongoing pandemic.

17
lOMoARcPSD|27819348

• Crowdsourcing allows food service companies to subcontract timed


or party carriers based on rate, efficiency, juxtaposition to customers, and more.
• Crowdsourcing is becoming a smart way to certify delivery scalability and cost
optimization.

• Food Delivery from Cloud Kitchens

• Cloud or simulated kitchens are gaining thrust in the food delivery industry.
• A restaurant kitchen that principally admits orders only through online food
ordering/delivery channels.
• You are not permissible to sit or eat in these facilities.
• Thanks to their low real estate values and their forte but rewarding customer base,
these chattels are becoming very common in many countries.
• Dealings need a vigorous food delivery platform to get the most out of this type of
food service.

• Hyperlocal Food Delivery Trend

• Hyperlocal food delivery can be categorized as being delivered from a local restaurant
within an area, such as a precise block of a city.
• However, hyperlocal deliveries can be thought-provoking due to the rapidity at
which they must be accomplished and ascended up.
• Urbane cross-region food delivery tools empower businesses to lessen
delivery times and generate quicker courses that enable multiple pickups
and deliveries.
• This increases shipping profitability and upsurges customer trustworthiness.

18
lOMoARcPSD|27819348

Fig 1.6. Recent Trends

Fig 1.7. Trends in top cities

Fig 1.8. Success factors


19
lOMoARcPSD|27819348

CRITICAL SUCCESS FACTORS

• Some of the important and critical success factors are as follows:

• On-time Delivery

• Customer Service

• Food Quality

• Relationship between Website Trust and Customer Satisfaction

• Relationship between Customer Satisfaction and Loyalty

Fig. 1.9. Loyalty factors

20
lOMoARcPSD|27819348

GOVERNMENT INITIATIVES

• In order to endorse the food industry, surge the level of meting out, and tap into the
budding of inland and global markets for processed food, the Ministry of Food
Industry has organized a Vision 2025 document. 37%, value-added from 26%,
intensification in its share in world food trade from 1.8% to 3.4% by 2023.

• According to the Ministry of Education, to accomplish this goal, will necessitate an


investment of Rs 100,000 (US$15 billion) in 2022.

1. The Indian Government has strategies to permit two Indian dairy companies, Parag
Milk Foods, and Schreiber Dynamix Dairies, to export dairy products to Russia within six
months of receiving product approval from the Russian inspection authority.

2. Shri Pashu Pati Kumar Paras, Minister of Food Industry Trade Union, The
Government of India has bolted the first large-scale international food park in
Dabwala Kalan, Punjab.

3. The Ministry of Food Industry has printed the Human Resources Development Plan
(HRD) for the food industry. The HRD initiative is run by the state government
through the National Food Processing Mission.

4. The Indian Food Safety Standards Agency (FSSAI) under the Ministry of Health and
Family Welfare has issued Protocols (Food Standard and Food Additives) 2011 and
Food Safety and Standards (Contaminants, Toxins) on Food Safety and Standards.
and residues) Regulation 2011, No. sets quality and safety standards for food
respectively.

5. The Ministry of Food Industry has tossed several new ingenuities to advance the
food meting out sector, which will help intensification of returns for farmers and,
above all, increase the dissemination of agricultural products and processed foods.

21
lOMoARcPSD|27819348

6. Founded by the Ministry of Commerce to mature and promote Indian spices


worldwide, the Spice Board plans to export $2 billion worth of spices by 2018.

7. The Spice Board of India has partnered with discrete investors to open the finest retail
outlets overseas, under the brand names 'Spice India' and 'Flavourit', around 34 of
the world's most discriminatory spices and value-added absolute to sell the product.

8. The Government of India has permitted the conception of five Mega Food parks in the
states of Bihar, Maharashtra, Himachal Pradesh, and Chhattisgarh. The government
plans to produce 42 large food parks across the country over the next three to four
years.

9. In the 2015 budget, 12 million won was invested in 15 corps. 2,000 crore ($300
million) was created by the National Bank for Agriculture and Rural Development
(NABARD) to deliver inexpensive credit to the food industry. Excise tax on plants and
equipment for packaging and processing has been reduced from 11% to 7%.

10. The Indian government plans to generate 42 mega food parks in 4, countries over the
next three to four years.

11. At the end of July, FSSAI opened its non-FSSAI-certified grocery business to main e-
commerce service providers such as Swiggy, Zomato, Foodpanda, UberEATS, etc. to
the platform e-commerce by July 31, 2018.

22
lOMoARcPSD|27819348

12. Government ingenuities are also pouring evolution in developed and developing
countries, both today and throughout the prediction period. For example, in February
2021, the Government of India hurled a chief inventiveness to help fireside food
suppliers. Under the PM SVANIDHI initiative, the Department of Housing and Urban
Development is affiliating with Indian restaurant integrator and food delivery startup
Zomato to provide an online marketplace for roadside sellers. Favorable initiatives
will have an optimistic influence on the online food delivery services market during
the forecast period. Deepinder Goyal has signed an MOU with the Ministry of
Housing and Urban Development (MoHUA) under the AtmaNirbhar Nidhi (PM
SVANidhi) Street Vendor Prime Minister Scheme to congregation street food
vendors on the platform.

The Indian Food Safety and Standards Agency (FSSAI) has dispensed reviewed
procedures that unswervingly distress online food and grocery operators such as
Grofers and BigBasket, as well as food delivery platforms such as Swiggy and
Zomato. Food offered for sale is subject to specimen at any point in the supply
chain. Businesses must also provide an image in lieu of food on the platform so that
consumers can diagnose the product. All required information referred to in the Food
Safety and Standards Act (FSS) must also be provided to the consumer preceding to
purchase, and only fresh food must be transported to the consumer.

13. The city of Mumbai has permitted online delivery of food and necessities 24/7
through an e-commerce platform. Brihanmumbai Municipal Corporation's new
guidelines nullify the state's recent decision to limit all such deliveries between 7 am
and 8 pm.

23
lOMoARcPSD|27819348

ROAD MAP FOR FUTURE

• As technology endures to advance, food delivery start-ups must contemplate new


business models in the food delivery market, which are becoming gradually
prevalent, such as on-demand delivery, restaurant and food sourcing, cloud cooking,
full stack, and home food models.

1. Demand Delivery

• On-demand delivery is the instantaneous or programmed delivery of food to a


customer.
• Prompted proximately after a buyer places an order.
• The on-demand delivery platform chains many local part-time delivery associates
to deliver goods to customers proximately.
• After getting your online order, we use a high-efficiency distribution system to
deliver products hurriedly.

2. Cloud Kitchen

• Cloud machine is a carryout food stockpile that does not have feasting options.
• It functions as a manufacturing unit with planetary for food grounding.
• The name "cloud machine 'caught, because you can order food online.

3. Full Stack

• Food Stack Food delivery service is a new-fangled notion in the food delivery market.
• This is a new-fangled take on food delivery service.
• It consists of governing the entire progression, which means that the company is in
charge of customer exchanges, food preparation, and logistics organization.
• Buyers are provided with a photo of the dish, a list of constituents, and the name of
the chef. Orders characteristically arrive within an hour after a customer places an
order, or a customer can pre-order a day in advance.

24
lOMoARcPSD|27819348

4. Drone Based Food Delivery

• Technology and revolution play an imperative character in progressing the food


delivery sector.
• The technology has b e e n demonstrated a s cost-effective and effective for
restaurant partners as well as customers on the go.
• The emphasis of the business now must be on engendering a permanent revenue
stream, and the long-term goal is to keep up with embryonic and sprouting technology
trends.
• Companies may also try to make definitive plates in unforeseen customs.

25
lOMoARcPSD|27819348

HISTORY OF THE COMPANY

• The most prevalent food directory, Zomato India, was initially tossed under the
name "Foodiebay" in 2008 during India's start-up affluent.
• The founders were Deepinder Goyal and Pankaj Chaddah. Both graduated from IIT
Delhi in 2005 and 2007 respectively and functioned as forecasters at referring firm
Bain & Company.
• The idea for FoodieBay came to him when, after scrubbing restaurant menus, they
finally categorical to put the circumstances under rheostat.
• It all happens with a humble rudimentary impression of an operational
directory for restaurant menus.
• The impression was followed by Deepinder along with additional friend Prasoon Jain
in Delhi's NCR in the form of an endeavor called Foodlet, even before
FoodieBay. However, Prasoon soon moved to Mumbai and left Foodlet in business.
• Soon Foodlet agonizes a Spartan scarcity of operations and productions. That’s when
Pankaj Chadda trod in to help with Deepinder’s knowledge and hurled FoodieBay, a
fresh start.

26
lOMoARcPSD|27819348

• Since then, charts have started to run for the company.


• Like most start-ups, Indian food knowledge modernizer Zomato
has confronted numerous ups and downs laterally the method.
• They had some noteworthy jiffies and accomplishments, but also threatening areas,
and even grilled the very survival of the company.
• Deepinder describes Pankaj as "a turning point for the company." Although the
FoodieBay team had only six people, by the end of 2008, in a petite duration
of nine months, it converted the major almanac of restaurants in Delhi's NCR area.
• After two years of maneuvering, the provision name was changed to Zomato in 2010.
• During 2015's enormous redundancies and losses, Zomato's probabilities of existence
seemed slenderer.
• Shrinking its girdle, the corporation rested off about 300 workers, nearly 12% of its
entire staff, acerbic budgets on the susceptible lateral of the business, and fluctuating
concentration to more rewarding zones like uncertainties.
• However, in the era of Zomato's reality, this has been the major delinquent
pebbledash the establishment.
• Zomato fundamentally started as a rebranded type of the Foodiebay food index
provision.
• Goyal and Chadda, IIT graduates and specialists at Bain and Corporation, founded
Foodiebay in 2008.
• In just 9 months, FoodieBay has become the principal restaurant list in Delhi NCR.
After two efficacious years, the corporation was rechristened Zomato and hasn't
looked back since.
• Zomato has constructed a stimulating collection of depositors, including Info Edge
India, Sequoia, Vy Capital, Singapore-based investment
firm Temasek and Alibaba's Ant Financial, as well as stockholder provision
and assessments in manifold sequential circles of bankrolling.
• Earlier this year, Ant Financial invested $220 million, making Zomato worth more
than $1.5 billion.
• It was also in 2015 that Zomato, harassed with dwindling proceeds, carried out its
gigantic redundancy.

27
lOMoARcPSD|27819348

• However, the business did get some respectable belongings this year by
acquiring MapleOS, which inflates its catalogue, database and maneuvers,
and adds online booking and mobile bill payment to its collection of amenities.
• After a supplementary weakening in sales in 2016, Zomato decided to adjacent
commercial in the nine countries in which it had long drawn out and succeed it the
slightest bit to evade bringing up the rear market share.
• The ups and downs are what all start-ups see as they become trade goliaths. The
way they knob problematic times and the choices they make describe or abolish them.
• Goyal and Chadda did an astonishing job upholding Zomato's pole and nautical
disdain robust airstreams.
• While at the corporation, Chadda gave annexes to many new inventiveness at
Zomato, plus the Zomato Gold and Cloud Kitchen concept.
• In early 2018, under unexpected conditions, Chadda announced that she had decided
to take a break before leave-taking Zomato and "returning professionally". He still
owns a 3.22% stake in Zomato.
• The corporation is presently in quest of supplementary subsidy to enlarge its
portfolio of facilities and enlarge into novel marketplaces.
• On the home field, Zomato will face Swiggy, its main entrant,
who has attained a unicorn position in a petite period of time and with extra money.
• In rapports of statistics, Zomato sent income development of 235% in the initial quasi
of financial 2020.
• According to the corporation's semi-annual tale, sales were $217 million, up
from $70 million in the primary demi of the previous year.
• The description also states that from March to September 2019, Zomato's EBITDA
(earnings before interest, taxes, depreciation and amortization) reduced by 42%. The
amount at which the business misplaces is abridged by 62%.
• During the #logout campaign in August 2019, restaurants recorded with Food
The collector offered Zomato Gold and Immensity Feasting topographies to inspire
them to dine in the sector, giving them momentous concessions.

The Restaurant Overtone emphasized issues such as "unreasonably high fees,


payment footings, and indiscriminately functional supplements" composed of
proceeding restaurants that become part of Zomato Gold.

28
lOMoARcPSD|27819348

• After the #logout crusade, Zomato stationary portion Infinity's restaurants, altered
Gold's rubrics during manifold redundancies, and the business also observed
remonstrations from conveyance cronies.
• Contempt these encounters, Zomato said companion restaurants augmented 180%
after accumulation of 75,000 more restaurants.
• The food collector and distribution start-up had around 120,000 restaurants in the
initial half of 2020, up from 45,000 last year.

Fig 1.10. Vision of Zomato Fig 1.11. Mission of Zomato

29
lOMoARcPSD|27819348

Fig 1.12. Revolution of Zomato logo

Fig 1.13. Acquisitions of Zomato

30
lOMoARcPSD|27819348

SWOT ANALYSIS

1. STRENGTH

Initial Service Givers:

• Zomato was one of the primary corporations to present amenities in India and has
a bulky client dishonorable with over 93 million customers.

• There may be dissimilar almanacs and dissimilar kinds of restaurant assessments, but
the luxury of using the Zomato app often makes them the first choice for customers

• Zomato lets other amenities have a room in that specific place, even though they
previously existed in that country.

• This is intolerable as they themselves are flagging the method for a more
penetrating struggle.

31
lOMoARcPSD|27819348

Evergreen Nature of the Restaurant Industry:

• It is a mutual acquaintance that the nourishment provision manufacturing is a win-


win business.
• Of course, there could be approximately a n enjoyable of slump or depression
that could disturb the manufacturing, but it will continuously increase.
• It is an unchanging and requisite manufacturing that will last forever and will only
cultivate in the imminent.

User-friendly Interface:

• Zomato has already won numerous honors for its eccentric enterprise and user-
friendliness.
• This permits clientele to rapidly and effortlessly exploration for restaurants in the
neighborhood or wherever they want to appoint.

2. WEAKNESS

Security Issues:

• During its presence, the submission has been lacerated quite a few times and the
statistics of at least 18 million handlers are at jeopardy.
• Security apprehensions like this are hell for a mounting internet business like Zomato.

Inefficient Expansion:

• 9 years after its presentation, the submission has established itself in 23 countries and
endures to cultivate.
• But given the enormous quantity of currency he has; it could be healthier.
• Zomato lets other amenities to have a room in that specific place, even though
they previously existed in that country.
• This is intolerable as they themselves are flagging the method for a more
penetrating struggle.

32
lOMoARcPSD|27819348

Increased Competition:

• Struggle from exploration locomotives like Swiggy and supplementary comparable


food obtaining and distribution apps generate many barricades to variety development
in convinced positions.

3. OPPORTUNITY

Scope of Expansion in the Future:

• Zomato needs to increase its attendance in other republics and build a base quicker.
• The chief badly behaved with the facility manufacturing is that facilities can be
derivative and applied very effortlessly.
• So Zomato needs to shape and gauge quicker than others to break one stage ahead.

More Acquisitions:

• There is a ratio of novel companies large and minor every day in this arena.
• Zomato can twitch companies with numerous participants while at the same time
keeping up with modern knowledge and tendencies

33
lOMoARcPSD|27819348

4. THREATS

Fragile Business Model:

• We must not disremember that Zomato was the first to arrive the Indian marketplace
in this role.
• He unquestionably has premature transfer assistance.
• The company had sufficient openings to use its occupational prototype in the
intercontinental marketplace.
• However, lately, the company's business model has become somewhat brittle.
• Any new technology establishment with adequate acquaintance and understanding in
this ground can now use this prototypical.

Policies by the Government:

• Numerous subjects such as individuality robbery, cybersecurity, data privacy


concerns, etc. have made the overall community conscious of and very attentive to
their online happenings.
• For this reason, the administration is familiarizing innovative guidelines and
procedures for these Internet podiums.
• These policies actually destabilize the sustainability of a corporation's business model.

Tough Competition:

• Not astonishingly, the online food delivery market is exceedingly cheap.


• These punitive circumstances hamper the development and affluence of the firm.

34
lOMoARcPSD|27819348

KEY FINANCIAL DATA

Fig 1.14. Financial data of the past three years

Fig 1.16. Hyper pure revenue of


Fig 1.15. Financial comparison of online vs
past two years
offline for past two years

Fig 1.17. Revenue breakdown of past two years

35
lOMoARcPSD|27819348

Fig 1.18. Quarter financials of current year

Fig 1.19. Operation revenue w.r.t loses

Fig 1.20. Delivery unit financials

36
lOMoARcPSD|27819348

GLOBAL REACH

Fig 1.21 Global reach of Zomato

• Zomato has augmented their presence by opening 5 new cities in 3 countries.


• In accumulation to the 20 metropolises in which it has occurred, Zomato has long-
drawn-out into South Africa (Cape Town), the UK (Manchester, Birmingham) and
cross the threshold in the New Zealand market (Auckland and Wellington).
• In India, Zomato has prolonged its list of Indian cities by initiating the Guwahati
section.
• Operators can now shadow other operators with food favorites and only see their
combined restaurant evaluations.
• Handlers can also use other communal systems to create their own kind of Zomato.
• Zomato presently has over 13 million operators globally and is existing on network
and mobile devices.
• The web site is currently in 7 countries and there are 102,000 restaurants worldwide.

37
lOMoARcPSD|27819348

SOCIAL MEDIA PRESENCE


• Zomato is ubiquitous on all hydroplanes.
• It governs the food delivery industry and is one of the greatest spoken
about sustenance obtaining podiums.
• Zomato is now like household and has fashioned a zealous community around it.

1. Search Engine Optimization


• The Zomato blog is the representative for the company, distributing all the state-of-
the-art bulletin about the product and wits.
• Zomato put a lot of exertion into SEO. Zomato uses keywords in URLs.
• In 2018, the brand tossed a large-scale TV movement for an "on-time or free"
feature founded on the melody "Kabhi to late ho jaat".
• The ad demonstrates users selecting "on time or free" with the confidence that Zomato
will be late, but dissatisfied when they reach on time.
• 'Thoda sa late ho jaata' in the contextual couriers the emotions of operators who are
dissatisfied whensoever they obtain a command on period.
• The company also hired Vijay Deverakonda to familiarize a movement in
the southerly marketplace.
• Zomato tweeted an image of three drinks deliberately placed to impersonate the three-
chamber project of lately hurled phones.

Fig 1.22. Traffic through SEO

38
lOMoARcPSD|27819348

• Zomato makes webpage URLs by taking the most prevalent keywords from your
role.
• This says search engines that the page is pertinent to the operator’s hunt footings.
• This is a very decent plan for positioning your spot.
• Zomato uses keywords on its web pages. Keywords covering plate names, restaurant
names, and expressions such as "order food online in Mumbai" express search
engines that these sheets have gratified pertinent to that exploration term.

2. Facebook
• Facebook is a bit more still likened to Twitter and additional like a Zomato apprise
display place.
• For example, a new announcement on the authorized diary, a replacement
column or a photograph scrapbook from a Zomato occasion.

3. Twitter
• Zomato frequently runs competitions on Twitter.
• Gourmet Friday was a success and got a countless rejoinder.
• Delicious Yatra was a fresh track and nearly all departed live on Twitter.
• Twitter emphasizes on statements/connections rather than apprises.

4. Pinterest
• Graphic enjoyment and true foodie pleasure, gratified featured on the Zomato
Pinterest network is just astonishing!
• Though the explanation doesn't claim many groups, the gratified is just spectacular.

 Zomato Spends ₹1.2K Crore on Advertising.


 Zomato spent Rs 1416 crore in FY19 on advertising, an 11-fold rise from
201,6, & posted a 3 times upsurge in income in FY19.
 Things are getting exceedingly stimulating in the distribution world cheers to the
speedy and desolate Zomato advertisements.

39
lOMoARcPSD|27819348

Fig 1.23. Instagram marketing

Fig 1.24 Facebook marketing

SOCIAL RELEVANCE

Code of conduct

1. Keep out the confusion


• Lunch reviews should be at least 150 typo scripts so we can work organized to
produce top-quality gratified that is beneficial to everyone.
• It's all about the span of a chirrup, so it's handy for all microbloggers too.

40
lOMoARcPSD|27819348

• If you're talking about food, provision and atmosphere, you have to catch up with
the typescripts.
• There is no 150-character limit for online order review.
• However, if your review is complete of secondhand goods, you may need to get
purge of it completely.

2. Keep it relevant
• Stay up to date with your aids to Zomato.
• Accounts posting inappropriate, unfitting or profile-raising content, evaluations with
similar digital signatures spamming restaurants, or accounts based on formerly
quantified or provided restaurant strategies and practices may be uninvolved without
notice.
• If your review is aloof or vapid by us, and if you republish a
different experience with the same restaurant, we reserve the right to eradicate
that review, even if it obeys with our gratified procedures. In case of unsolicited
mail, you can limit reviews on Zomato.

3. Don't solicit
• Your prompt or oblique accord (whether written or oral) to write a review in exchange
for coinage for feedback, free food or beverages, etc.

4. Don't misrepresent
• Recognizing or encouraging as an official Zomato blogger or intimidating to collect
an undesirable valuation of Zomato or using your situation to obtain assistances in
exchange for a preferment is not tolerable.
• We reserve the right to delete your Zomato Profile without hesitation if we find any
reports or evidence of such cases.

41
lOMoARcPSD|27819348

Employee code of Conduct


• Zomato employees are expected to stick to and sustain the uppermost morals of
beliefs and veracity.
• This includes enduring action in harmony with our fundamental values
and the policies listed below.
• Zomato employees are verboten from using their
employee credentials to receive markdowns, assistance, or privileged treatment at
restaurants.
• Zomato employees must not identify themselves as Zomato employees, except
when visiting restaurants for official business purposes

42
lOMoARcPSD|27819348

CORPORATE SOCIAL RESPONSIBILITIES (CSR)

Zomato’s philosophy and Vision

• Zomato Limited (formerly Zomato Private Limited and Zomato Media Private
Limited) (the "Company") is a responsible enterprise dedicated to the
overall improvement of society as a whole.

• To this end, the Company is committed to carrying out Corporate Social


Responsibility (“CSR”) activities that go yonder business with a precise emphasis on
addressing starvation, malnourishment, tutoring and healthiness issues, with a
concentration on human, environmental and communal possessions.

Objectives and Scope of the CSR Policy

• The CSR policy delivers rules for the company's CSR activities intended at
constructing constructive contributions to civilization through
various sustainability and communal well-being ingenuities.
• The Company's CSR Policy is administered by the various supplies of the Company
 Act 2013 (“the Act”), the Company (CSR Policy) Rules 2014 (“CSR
Rules”), and other rules espoused in accordance with or may apply from.

Implementation of the CSR Activities

• In accordance with Article 135 of the Act, the Company's Board of Directors
(hereinafter referred to as the “Board”) has reputable the CSR Committee (hereinafter
“CSR Committee”) in accordance with the decision of August 7, 2015, which has
been modified by the decision of the Board of Directors.
• The CSR Committee and the Board of Directors are accountable for guaranteeing that
• The company conducts CSR activities in accordance with pertinent laws and protocols.

43
lOMoARcPSD|27819348

Objectives and Scope of the CSR Policy

• The CSR policy delivers rules for the company's CSR activities intended at
constructing constructive contributions to civilization through
various sustainability and communal well-being ingenuities.
• The Company's CSR Policy is administered by the various supplies of the Company
 Act 2013 (“the Act”), the Company (CSR Policy) Rules 2014 (“CSR
Rules”), and other rules espoused in accordance with or may apply from.

Implementation of the CSR Activities

• In accordance with Article 135 of the Act, the Company's Board of Directors
(hereinafter referred to as the “Board”) has reputable the CSR Committee (hereinafter
“CSR Committee”) in accordance with the decision of August 7, 2015, which has
been modified by the decision of the Board of Directors.

New CSR Activities

• The company must contrivance the CSR plan in accordance with the vagaries
projected by the board of directors.

Revisions to the CSR Policy

• The CSR Committee assesses and endorses modifications to the CSR Policy as it
deems apposite, at least once a year, and acquiesces the CSR Policy, including crafts
of such amendments, to the Committee for committee sanction.
• Any changes to the CSR policy are made only after consent by the Board of Directors.

CSR Expenditure

• The Board of Directors must certify that the company devotes at least 3% of
the company's middling disposable income in the prior two fiscal years on its CSR
activities in each fiscal year.

44
lOMoARcPSD|27819348

CHAPTER 2
LITERATURE REVIEW

45
lOMoARcPSD|27819348

REVIEW OF LITERATURE

1 St. Research Paper:

Consumer's Perception on Online Food Ordering by Suryadev Singh Rathore, and


Mahik Chaudhary

• Customer discernments of online food collation diverge from discrete to distinct, and
discernment is imperfect to some degree by suitable influences and admittance to
online food facilities.
• Customer discernments have a diversity of resemblances and changes based
on discrete sentiments
• Scholarships show that the mainstream of undeveloped persons is devoted to
collating food online, so grownup persons use these online amenities less than
fledgling persons.
• The schoolwork tourist attractions detail that early persons are usually more
enthusiastic to use connected food ordering services.
• The study also demonstrates that product amounts, reductions, and unusual
propositions influence online food ordering.
• The second principal manipulating feature is suitability, and the major manipulating
influence is just-in-time delivery.
• The study initiates those defendants often selected to instruction paper, with samples
and banquets existence the most favored mealtime kinds.
• The mainstream of defendants liked debauched nourishment out of culinary
choices. The study also states that a big fraction of 6, defendants ordered 5, food
online using Uber Eats or Zomato.

46
lOMoARcPSD|27819348

2 ND. Research Paper:

A STUDY ON CONSUMER SATISFACTION AND PREFERENCE TOWARDS


ONLINE FOOD ORDERING APPLICATIONS

• Online food collation request scheme will help guesthouses and restaurants enlarge
their commercial by serving users online.
• The drive of this study is to classify 3, heights of customer consciousness, favorite,
and gratification through online food ordering claims, and to identify 2, issues that
move customers' food purchases.
• The determination of this online food ordering system is mostly to save time for
clienteles.
• Particularly when you need to invite people to some junctures.
• The key motive for microelectronic ordering is expediency.
• The solitary most significant quality of an electric incantation is correctness.
• Customers who rate the excellence of the facility based on their connections with
3, staff are unlikely to want to use self-service.
• Likewise, clientele who have aversion skill may not want to try the self-service e-site
because of being disordered by the technology.

47
lOMoARcPSD|27819348

3rd. Research Paper:

Examining Services Gaps and Competitive Analysis of Online Food Ordering Apps

• After rereading the amenity hole and modest examination of online food
collation claims, each scheme has its own exclusive assets and paleness.
• The determination of this online food ordering system is mostly to save customer
time.
• Particularly if the purchaser requirements to summons people on some junctures.
• A consumer's perception of online food ordering differs from person to person, and a
suitable joining and admission to the online food service is obligatory to boundary the
insight to some degree.
• Consumer perception has numerous resemblances and changes among entities
Estimation.

48
lOMoARcPSD|27819348

OBJECTIVES OF THE PROJECT/STUDY

1. To find out the knowledge and awareness about online food ordering apps
2. To know the consumer preferences on online food ordering services provider
3. To study the key factors that drives the consumers to use online food delivery apps to
order food instead of conventional methods
4. To identify the problems faced by the consumer while using online food ordering
applications
5. To examine the consumer's perception regarding online food delivery apps and
restaurants during Covid -19 Pandemic

49
lOMoARcPSD|27819348

CHAPTER 3. RESEARCH METHODOLOGY

RESEARCH DESIGN:

The research design chosen here was Descriptive Research Design. Responses were
taken via Google Form which was circulated to consumers

TYPE OF RESEARCH:

DATA COLLECTION:

• The data was collected through primary sources. Structured questionnaire.


• Close-end questions | The tools used for data analysis and representation were Microsoft Excel,
• Pie Charts and Graphs.

SAMPLING:

SELECTION OF SAMPLE:

Since the company is used by many people at large, the sample decided was pan India but
was limited with n number of respondents due to time restrictions.

SAMPLING TECHNIQUE:

Convenience Sampling was adopted in the selection of samples.


Sample Size: The data of 100 consumers were obtained from the Google Form which was
circulated to consumers.

50
lOMoARcPSD|27819348

AREA COVERED:

The area covered for the responses was the PAN India.

DATA ANALYSIS TOOL:

The tools used for data analysis and representation were Microsoft Excel, Pie Charts and
Graphs.

Closure- In this chapter, Research Design, Data collection, Scales, Sampling, Data Sources,
Methods of Data Analysis was discussed. In the next chapter, Data Analysis and Findings are
going to be discussed.

51
lOMoARcPSD|27819348

CHAPTER 4 DATA ANALYSIS TOOL:

The tools used for data analysis and representation were Microsoft Excel, Pie Charts and
Graphs.

Closure- In this chapter, Research Design, Data collection, Scales, Sampling, Data Sources,
Methods of Data Analysis was discussed. In the next chapter, Data Analysis and Findings are
going to be discussed.

Fig 4.1. Respondents based on their Age

52
lOMoARcPSD|27819348

Purpose: - To segment the audience as per their age. Fig. shows the general information of
the age year of all the respondents. This will help Zomato to know their target audiences
better considering what age is more likely to order from them.

Result: - The maximum number of responses came from the consumers who were between
the age group of 15-25 which summed up 67% followed by two age groups similarly
contributing at 12% (26-35 and 45&above). Remaining 9% were between the age group of
36-45 which was the least set of audience that responded to the survey.

Fig 4.2 Respondents based on their gender

53
lOMoARcPSD|27819348

Purpose: To segment the audience as per their gender. Fig. shows the general information of
the gender of all the respondents. This will help Zomato to know their target audiences better
considering what sex is more likely to order from them.

Result: The maximum number of responses came from the consumers who are Males
i.e., 56% followed by Females (44%).

Purpose: To segment the audience based on their occupation. Fig. shows the general
information of the occupation of all the respondents. This will help Zomato to know their
target audiences better considering which type of working population is more likely to order
from them.

Result: The maximum number of responses came from the consumers who are working (Job)
that were 48% followed by students (38%). A few respondents who were were not working
also made their part in the responses which were about hardly 8% followed by self-employed
class at 6%. In short working men/women prefer more to order online as compared to others.

Location?

a. Metro cities
b. Non metro cities
c. Rural

54
lOMoARcPSD|27819348

Fig 4.3 Respondents based on their location

Purpose: To segment the audience based on their location. Fig. shows the general
information about the location of all the respondents. This will help Zomato to know their
target audiences better considering the geographic area they live in.

Results: The maximum number of responses came from the consumers who live in metro
cities where almost 89% of respondents were from tier 1 cities followed by a small number of
respondents coming from non-metro cities making hardly 10% of the lot. Not to miss the
rural area, the research also mentioned one respondent from rural area as to know the
perception of the people living there.

55
lOMoARcPSD|27819348

Fig 4.4 Consumer preference on buying food online

Purpose: To know about consumers perception whether they are interested in buying
the food online or not.

Result: Almost 68% of people from the responding lot said that they are interested to
buy food through online medium and they prefer buying it online instead of dining in any
restaurant. The result was followed by respondents at 17% which were skeptical about buying
food online as they were detrimental about certain things. And 15% of respondents said that
they do not prefer to order food online.

56
lOMoARcPSD|27819348

Fig 4.5 Reasons for not ordering food online

Purpose: As we saw in the question above 15% of respondents did not prefer to order through
any online portal, this question was further asked in order tie know their reasons behind not
ordering.

Result: Almost one-third of all the respondents who did not want to buy food online said
that they were afraid to order food online because of quality concerns. They feel the
quality of the food is hampered through online services. Reason followed by this was shared
equally at 26.7% which was preference for home food and preference to go out with family
and friends. Only around 13% of the consumers were health conscious and they felt that
health is the major concern due to which they prefer to not order food from online mediums.

57
lOMoARcPSD|27819348

4.6 Consumer awareness for online food delivering apps

Purpose: To know whether the respondents are aware of the food delivery apps that are
working in the industry.

Result: There were multiple options given to them that included names of various food
delivery apps. As expected before research, Zomato was the company that was known to
everyone (100%) followed by Swiggy (96%) and Dominos (77%). Rest applications like
Uber Eats, Pizza Hut, box 8, Dunzo, Fresh Menu, and Travelkhana are known by the least
respondents.

Fig 4.7 Consumer preference on online platform

58
lOMoARcPSD|27819348

Purpose: To know which is the online portal through which consumers are comfortable
ordering their food online. This was asked concerning comfort, user-friendliness, and habit.

Results: Almost everyone prefers to order their food online through applications of
concerned brands that they like to order from. Hardly 1% of respondents said that they like to
order from social media platforms because that is much easier to altogether go to the app and
then order.

Fig 4.8 Consumer preference on apps for ordering

Purpose: To know exactly which app is used by the respondents on priority to order their
food online from all the apps that deliver food at doorsteps.

Results Equivalent to question 7. Most of the people (65%) prefer to order from Zomato as
they feel this app is user-friendly and can be trusted for a long-term basis followed by
Swiggy at 30% and the rest of the apps are hardly preferred by anyone when it comes to
order food on a prior basis.

59
lOMoARcPSD|27819348

Fig 4.9 Frequency of ordering food

Purpose: To know the frequency of people on how often they wish to order food online so
that companies can target their customers accordingly concerning if they have to send them
push notifications as a part of marketing.

Result: Maximum people prefer to order food once a week (36.5%) followed by twice or
thrice a month (25.9%) and once a month (24.7%). Most of people order after a decent gap of
days and not so frequently. However, there is still 13% of people among the

respondents who prefer to order food through online mediums at least twice or thrice a
week.

60
lOMoARcPSD|27819348

Fig 4.10 Purpose to order food online

Purpose: To know exactly at what time people prefer to order food online and
what is their purpose.

Result: Almost more than 70% of people prefer to order food at dinner time
especially when the working population comes home from their jobs and is reluctant to make
efforts to make their own food. More than 40% of people prefer to order during lunch time
followed by 30% where people feel hungry at midnight and that is when they want to order
food online.

61
lOMoARcPSD|27819348

Further purposes such as Morning breakfast and evening tea are preferred by (6%) and (13%)
respectively.

Fig 4.11 Preferred Mode of payment

Purpose: To know which method of payment is convenient to customers which they prefer to
pay for their food.

Result: After a huge revolution towards digital India, still maximum number of people
choose to pay through cash. Similarly, here, more than 30% of people prefer to make
payment

62
lOMoARcPSD|27819348

through cash on delivery followed by mobile wallets like Paytm, gpay, upi (23.5%) and cards
like credit and debit card (22.4%). There is also a decent huge lot of 20% of people that
prefer to pay through net banking where they feel secured about their transactions.

Fig 4.12 Motivation factors

Purpose: To know the key reasons that push the consumers to order food online instead
of going out and having their food.

Result: Convenience is the major factor which is proved to be the greatest reason of people
ordering food online which was culminated through secondary as well as primary research.

63
lOMoARcPSD|27819348

Even in this research, 77% of respondents feel that it is convenient to order food online
instead of walking into a restaurant and dining out. The 24/7 service is another motivator for
people where almost 60% people are intrigued to order at any point of time, they wish to
followed by variety of food options (49%) and discounts and offers (47%). Least number of
people think that affordability, variety of payment options and less human interactions are the
motivators because of which they prefer to order food online.

Fig 4.13 Problems to order food online

Purpose: To know exactly what are the problems faced by the customers while ordering
food online. So, companies can work on them in order to provide the best consumer
experience.

64
lOMoARcPSD|27819348

Result: More than 50% of the consumers think that mishandling of product is the biggest
challenge and problem for them. As in one of the previous question customers were
detrimental to the quality concerns, similarly people feel their food product is mishandled
many a times by the delivery executive and that is one of the major concerns that food
delivery companies need to work on. Similarly, hygiene concerns (46%) are major issue
followed by unreliable delivery issues (42%) and security related concerns (22.4%).

Fig 4.14 Importance of safety measures during covid

Purpose: To know whether safety measures carried out by apps and companies are
important to consumers or not especially during covid-19 times.

65
lOMoARcPSD|27819348

Result: As expected around 65% of people feel that the safety measures carried out
by restaurants and apps under their safety protocols are absolutely important to make sure
that the food delivered to you and the delivery guy both are safe. Still, 27% of people said
they were not sure whether is it that important or carries any authenticity in it. To a surprise,
around 10% of people also said that it is not that important for restaurants and apps to follow
the safety protocols.

Fig 4.15 Consumer knowledge on food prices

Purpose: To know the consumer knowledge regarding food prices and whether they have
changed post-pandemic compared to what they were pre-covid and does that has any effect
on their behavior.

66
lOMoARcPSD|27819348

Result: 63.5% of respondents said yes, they feel that the prices have been changed as
compared to pre-COVID covid which is not negligible and can be prominently seen and
almost 30% said that they may. Very few sections of respondents said no which shows that
restaurants have been hiking the prices of food items within a short span of just a year.

Fig 4.16 Overall customer satisfaction

Purpose: To know consumers' overall satisfaction with online food delivery apps and the
industry. (1 being the lowest rate and 5 being the highest rate) \

Result: 45% of people have rated 4 which means almost half the representing population
likes to order food online and is satisfied with the service they provide followed by 30% that
have rated 3 and 21% that have rated 5. There is hardly 1% of the lot that feels dissatisfied
with the service provided by online food delivery companies. So, in a nutshell, keeping all
the concerning points into consideration, companies must work on them but people at large
prefer to order online as compared to the traditional dining concept.

67
lOMoARcPSD|27819348

CONCLUSION

 This research has outlined a large array of impacts from the online Food delivery
industry that are affecting a range of customers in different ways, as summarized

 This study was to find the awareness level, preference, and reasons of satisfaction
derived by the consumer and also to find which factors influence customers to buy
food through online ordering apps.

 Less percentage of respondents were inclined towards the use of Uber Eats and
Domino.

 Mostly the youngsters are attached to the online food ordering

 A major proportion of respondents use either Zomato or Swiggy to order their food
online conveniently, 24/7 service and variety of food options are the most influencing
factor

 Mainly preferred to order was dinner followed by lunch

 Consumers prefer to order on a weekly basis

 Transformation in the trends of food ordering is occurring because of the changing


lifestyle of the consumers in India and expansion in online activity

 An Increase in service quality components increases consumer's intention to reorder


and recommend. Therefore, companies should consider delivering quality service as
the most pivotal aspect and then focus on other things.

 Employees should be trained in such a manner that they keep customer's best interest
at their heart in order to have a long-term camaraderie

 Customers response about hygiene quality as perceived by them should be considered


along with their expectations of safety and concerns for security post-COVID
situation.

68
lOMoARcPSD|27819348

 Understanding the consumers requirements and perceptions in-depth would aid the
companies and managers in realizing the e-commerce platforms full potential, which
in turn will shape people’s quality of life, companies and economy in a macro way

 Online food Companies should integrate with social media such as Facebook,
Instagram twitter etc. to facilitate customers that will in turn help them in customer
acquisition. Social media should be the most desired tool for marketing by firms

 Studying the factors which impact consumer’s perception regarding the online food
delivery apps may lead to understanding the customers better and providing them
better service which in turn attract more customers and generate the profit for the
business

69
lOMoARcPSD|27819348

RECOMMENDATIONS

o There are a lot of scope in the future for cashless society. There is still a lot to
be done to digitalize India

o One of the most important things is firms must make sure that the apps are
comfortable and user friendly.

o In terms of social sustainability, providers could help to tackle the food waste
problem by exploring ways to better communicate with their consumers about
appropriate portion sizes and avoid unduly incentivizing consumers to over
purchase.

o To improve economic sustainability by improving staff retention, online FD


providers may need to adjust the rules of delivery time with delivery people’s
benefits and safety in mind.

o With regards to environmental sustainability, the online FD industry should


consider working with both packaging producers and the restaurant sector to
explore options for the development and use of more sustainable packaging
materials.

o It is essential for online food companies to spread awareness regarding the


benefits of ordering online because customers who are uncomfortable with
technology may be reluctant to try an electronic self-service site because they
may be afraid of getting tangled up in the tech.

o In mid-2017, it was stated that the personal information of the customers


stored in Zomato was leaked as a result of which many customers uninstalled
the application. However, going in the future security and safety quotients
should be taken utmost care of which will help reduce the hampering of sales

70
lOMoARcPSD|27819348

LIMITATIONS

o First, the response of questions in the questionnaire is self-reported by respondents,


which is prone to methodological issues.

o Second, Inability to cover large area. The data were collected from only one
country, India. So, the generalization of the results is limited by the context of
online retailing in India. Online buying behavior of consumers of other countries
may not be similar to those in India

o Thirdly, A notable gap in the research is that many parameters like food wastage,
change of prices etc. are not been considered in relation to online FD services. A
different set of responses might occur after adding these parameters.

o The food delivery apps are accessible only in developed urban areas thus it limits
the study to only people living in those areas and hence survey of people living in
remote areas was not done

o A notable gap in the research is that many parameters like food wastage, change of
prices etc. are not been considered in relation to online FD services. A different set
of responses might occur after adding these parameters.

71
lOMoARcPSD|27819348

LEARNINGS:

1. The primary learning that I got from this research project was to learn in-depth about
the insights of the online food delivery industry and how unicorns like Zomato and
Swiggy work in order to beat their competitors and maintain their mark and goodwill
in the marketplace.

2. The working of restaurant industry is personally known to me as I am working in this


industry but the fact that in spite of multiple efforts by restaurant owners, customers
at large still prefer ordering food online as compared to offline services all
pervasively was the prime motive to do this research as I got to know a lot about the
strategies, they use from a user perspective as well.

3. Through the financial reports of recent pasts and forecasted CAGR with all revenue
and profits, I got to know exactly how Zomato plans to squeeze out a lucrative
business in future via their IPO and acquisitions as they happen to be the first-ever
unicorn in the market industry of online food delivery.

4. It is important to know about your competitors more than to know about yourself
first in order to make your place in the market and through this project I even got to
learn in depth about Zomato’s competitors as to how are they trying to compete with
a market leader and trying to make a place in the market.

72
lOMoARcPSD|27819348

CHALLENGES:

1. As this industry is fragmented so it was challenging to consolidate the entire


information and concise all the data under one platform for this research project. As
the company selected (Zomato) is a market leader so there was a lot to compile and in
places, it wasn’t possible to give justice to all the departments but all the important
data was compiled.

2. One of the greatest challenges was trusting different websites as multiple data were
uploaded and there was no authenticity as to how far that data was real. Due to
various plagiarism issues, different articles had vague financial figures which were
very confusing as I needed the perfect data to be concise in my report, for the same
reason had to go through a minimum of 3 websites just for one reason.

3. It was difficult to measure the contribution of the online food delivery industry to
the economy as the entire sector comes under the entire food and beverage industry
and does not have its separate entity which makes it a part of the sub-industry.

73
lOMoARcPSD|27819348

REFERENCES

References
Deb, S. (n.d.). Zomato Shows the Way to Social Media Marketing. Take Note! Retrieved from
Think to Share. You think. We share: https://thinktoshare.com/zomato-social-media-
marketing- strategy

References
Deb, S. (n.d.). Zomato Shows the Way to Social Media Marketing. Take Note! Retrieved from
Think to Share. You think. We share : https://thinktoshare.com/zomato-social-media-
marketing- strategy

Shastri, A. (n.d.). 360° SWOT Analysis of Zomato with Company Overview & Highlights.
Retrieved from IIDE. The digital school: https://iide.co/case-studies/swot-analysis-of-
zomato/

74
lOMoARcPSD|27819348

References
Deb, S. (n.d.). Zomato Shows the Way to Social Media Marketing. Take Note! Retrieved from
Think to Share. You think. We share: https://thinktoshare.com/zomato-social-media-
marketing- Strategy
Shastri, A. (n.d.). 360° SWOT Analysis of Zomato with Company Overview & Highlights.
Retrieved from IIDE. The digital school: https://iide.co/case-studies/swot-analysis-
of-zomato/
Trivedi, T. (n.d.). TO STUDY THE IMPACT OF QUALITY AND SATISFACTION
CONCERNING FOOD DELIVERY APPS ON CUSTOMERS’ CONTINUANCE
INTENTION DURING POST COVID-19 PANDEMIC.
Retrieved from ResearchGate: https://www.researchgate.net/publication/354786697

References

Deb, S. (n.d.). Zomato Shows the Way to Social Media Marketing. Take Note! Retrieved from
Think to Share. You think. We share: https://thinktoshare.com/zomato-social-media-
marketing- Strategy
Gupta, T. (n.d.). A Case Study on Zomato’s Digital Marketing Strategy. Retrieved from
VIAENS: https://viaens.com/blog/winning-strategies-a-case-study-on-zomatos-
digital-marketing- Strategy
Shastri, A. (n.d.). 360° SWOT Analysis of Zomato with Company Overview & Highlights.
Retrieved from IIDE. The digital school: https://iide.co/case-studies/swot-analysis-
of-zomato/
Trivedi, T. (n.d.). TO STUDY THE IMPACT OF QUALITY AND SATISFACTION
CONCERNING FOOD DELIVERY APPS ON CUSTOMERS’ CONTINUANCE
INTENTION DURING POST COVID-19 PANDEMIC.
Retrieved from ResearchGate: https://www.researchgate.net/publication/354786697

75

You might also like