Student’s Declaration

I hereby declare that the project work with the title AN ANALYSIS OF
CONSUMER DECISION MAKING VARIABLE ON ONLINE FOOD DELIVERY
SECTOR – A CASE STUDY ON SWIGGY. Submitted by me for the Part III BBA
(Hons) under the University of Calcutta is my original work and has not been
submitted earlier to any other University or Institution for the fulfillment of the
requirement for any course of study. However, extracts of any literature which has
been used for this report has been duly acknowledged providing details of such
literature in the references.

Signature :

Name: Muaaz Ahmed Laique

Registration No: 017-1121-0678-16

Date: April 26

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 Acknowledgement

My sincere thanks to my Supervisor Prof. Chiranjib Mitra for overall guidance and
support. This study report could never have seen the light of the day without
cooperation of those people who participated in the questionnaire. I am thankful to all
of them for giving me their valuable time. I am also thankful to my friends who have
been my constant support and made my research work easy. A word of gratitude to
family whose love and support enabled me to complete this project report with ease.

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 CONTENTS
ABSTRACT
CHAPTER 1
 1.1 INTRODUCTION……………………………………………. 05-09
 1.2 LITERATURE REVIEW……………………………………. 10-11
 1.3 OBJECTIVES………………………………………………… 12
 1.4 SCOPE OF THE STUDY…………………………………….. 13
 1.5 LIMITATIONS……………………………………………….. 13
 1.6 RESEARCH METHODOLOGY……………………………. 14

CHAPTER 2 – CONCEPTUAL FRAMEWORK

 2.1 COMPANY PROFILE……………………………………….. 15-17
 2.2 MARKETING MIX…………………………………………… 18-21
 2.3 SWOT ANALYSIS……………………………………………. 22-23
 2.4 STP ANALYSIS….…………………………………………… 24-25

CHAPTER 3 – DATA ANALYSIS & INTERPRETATION

 3.1 DATA ANALYSIS & INTERPRETATION……………….... 26-40

CHAPTER 4 – FINDINGS & RECOMMENDATIONS

 4.1 FINDINGS…………………………………………………….. 41
 4.2 RECOMMENDATIONS……………………………………… 42
 4.3 CONCLUSION………………………………………………… 43

BIBLIOGRAPHY…………………………………………………….. 44

ANNEXURE.......................................................................................... 45-47

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 Abstract

The purpose of this paper is to study operating practices that make tech companies
tick in the growing food delivery service sector in India. The food delivery market is
valued at over ₹12 billion as of 2016, where upwards of 7 % market share now
reserved for online food delivery services. As opposed to 'Delivery as a Service'
companies, aggregator delivery services generate a platform for consumers to
navigate through a variety of restaurants hosted on it, discovering restaurants and
placing orders manually. This study compares growth and operating strategies of four
such aggregator food delivery companies in a booming Indian market (Swiggy,
Zomato, FoodPanda, and Uber Eats) with a case study on Swiggy. The market is
expected to grow 40 % annually owing to a larger disposable income from a
wealthier middle class (also with long, erratic working hours). Growing incomes
have encouraged the creation of an increasingly health-conscious middle class,
desiring meals which may substitute nutritional values of home-cooked meals.
Aggressive growth strategies have not been as rewarding elsewhere in the food-
service industry (with multiple grocery-delivery services scaling down operations in
2015-2016). However, the future seems brighter for the online food industry, as India
catches up with developed markets (where online food orders take upwards of 30 %
of market share).

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CHAPTER - 1
1.1 INTRODUCTION .

In this case study, the potential of a growing market in the one of the largest
economies in the world is analyzed. Grocery shopping, meal planning and cooking is
now considered a chore by a good proportion of the growing Indian middle class,
causing a surge in demand for services that free them of such inconveniences.
Upwards of 50,000 restaurants in India provide home delivery, and are often only
able to see marginal profits from their take-away sectors. This indicates a high
potential in a relatively untapped market. E-commerce in India is expected to grow
from US $2.9 billion in 2013 to a mammoth US $100 billion by 2020, making it the
fastest growing e-commerce market in the world! E-commerce is also witnessing a
spurt in online food & restaurant service companies, which is expected to reach $2.7
billion by 2019. This white paper explores drivers of the growth of such online food
delivery companies in India, the current competition and how this affects the brick-
and-mortar restaurant business in India. Here’s a look at the supply and demand
drivers for online quick food services.

Demand Drivers .
Encouraging Demographics

With a population of over 1.2billion, India is undeniably one of the biggest consumer
markets in the world today. Moreover, 50% of this population fall under the age of
25, and the rest before the age of 35 years; making India among the youngest
population in the world too. Most of the fast food demand comes from age group 18-
40 years. What’s more, by the year 2025 the Indian middle-class demographic is
expected to touch 550 million. Young India’s appetite is one of the key drivers for
demand in the food and beverage industry on the whole.

Promising Income and Consumption Levels

With an increasing number of young Indians being productively employed in

lucrative industries, sectors like IT services have upped the living standards and made
their wallets fatter too. The World Bank reports a staggering 50% increase in per
capita income since 2006 until now. Urban India sees a visible change in the social

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setting, which further fuels the advance of fast food restaurants in India. Higher
disposable income is also a key driver for other subcategories of food products too.

Favourable Lifestyle Changes

With dual-income families, now urban India sees both parents bring home the bacon,
thus changing the way people live drastically; with changes in routines, lifestyle and
food habits. The demand for quick access to food and one with affordable rates is on
the rise. Time crunches and an increasing need to spend quality time with 92%
nuclear families reaching out for fast food or take outs to save time and energy that
would otherwise go into cooking up a meal at home every day of the week.

Rising Number of Working Women

Keeping in line with the above point, there has been an astounding increase in
working women. Working women end up spending most of their productive hours
commuting and at work, therefore there is very less time to cook full blown meals at
home, all by themselves. Working women typically spend a large amount of their
disposable income on buying take outs or eating out. This is again a key demand-
driver for the food and beverage industry in India.

Supply Drivers .
Expanding Variety of Cuisines

With more and more restaurants offering global cuisines, this has had a significant
impact on the overall food industry. Chicken biryani, burgers, butter chicken, pizza
and Hakka noodles are customers' most preferred orders. North Indian fare tops, but
Chinese, Italian, south Indian and 'healthy food' are also popular. The more Indians
living in urban areas are willing to experiment with new cuisines, the more will
frequency of dining out increase.

Upgrading of Retail Formats

With a slew of international food brands and restaurants making themselves available
at popular malls, these seem to be the ideal space to get more customers who go to
malls to shop. And inversely, more customers going to food courts and restaurants at
malls, shop! It is a win-win situation for all parties, indeed.

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Rising of Contract Cultivation

Contract cultivation is essentially a binding agreement that guarantees farmers’

purchases from giant global companies, provided they agree and supply the preferred
crops to the companies. For example, McDonald's currently has over 400 farmers
cultivating potatoes for them in over 2000 acres of farmland in the state of Gujarat.

Emerging of Logistics Providers

It’s not just true for the emerging e-commerce industry where couriers and delivery-
handling companies are on the rise. There are logistic providers for the food industry
too, such as Radhakrishna Foodland who is a local partner, providing their logistics
services to global giants in India such as McDonald's AND Pizza Hut.

Growing of Delivery - dedicated Formats

The initial investment needed for a delivery-focused format is much lower compared
to starting up a restaurant or even a fast food joint. Investments include rent,
designing interiors, furniture and so on. Due to such cost benefits, more operators are
ready to devote their time, energy and investments in the formats dedicated to
delivering food at the doorstep. There is a considerable decrease in the costs of
labour, supplies and the biggest cost saving aspect is the need for quality real estate.
This is the most expensive of all investments in restaurants, and with a delivery
format this cost is saved.

Extension to Delivery Services in Existing Restaurants

Restaurants are now trying to maximize their business output by offering food
delivery services. This way they all are able to rationalize existing fixed costs and
also keep their business sustainable. Home Delivery is a very vital ingredient in this
mix. It’s no wonder restaurants big and small; all are vying to get a piece of this pie!
Moreover with this format, a higher number of customers can be serviced, compared
to the sit-and-dine format where at peak hours, customers will be missed. The
delivery format keeps customer loyalty going strong too.

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New Trends in the Delivery Sector

The role of mobile apps and also web-based system of ordering food cannot be
undermined at this point. With more people using smart phones, increasing literacy
and access to the Internet, the fortunes waiting to be reaped from the business of
home delivery are just a click away! Domino’s Pizza claims to deliver over 50,000
pizzas in a day and 15,000 of those orders are made online. Fassos is another popular
food chain that doles out over 60,000 orders in a day and all from their mobile app
too. Now that Dominoes and other players have tied up with the online food service
site FoodPanda, these numbers are expected to double in the coming years. E-Tailing,
which is having a sound presence online, is very promising for all delivery-based
‘quick service restaurants’ (QSR) compared to the revenues generated from the
typical brick-and-mortar format.

Delivery-dedicated Websites

Speaking of FoodPanda (– Which is one of the biggest food service websites, picking
up almost double the funding of that of Zomato, with $310 million) while global food
chains and QSR like McDonald's, and Pizza Hut have their own websites from where
you could order food, other businesses who want in on the food delivery business opt
for websites like FoodPanda and Zomato. There are many others cropping up who
have similar food delivery formats, with their own coupon and discounts system to
get more customers - Just Eat and TastyKhana for instance, who have just entered the
market recently. These exclusive websites earn commissions on every order and the
benefit to customers is that they are able to access a number of food websites
offerings at just one stop, avail discounts and exclusive offers to get maximum value
out of their online or mobile app orders. Zomato is one of the most popular apps and
websites that not only let customers order food from multiple restaurants, but have a
rating system and an exclusive phone number using which customers could make
reservations at the restaurants. Their advantage is the access to call records, using
which they continually streamline their processes. It’s no wonder they have now
picked up a funding of more than $163 million for business development. An
interesting point to be noted here is that FoodPanda plans to extend their services and
tie up with restaurants that cannot do home-delivery. There will be logistics-related
investments done by FoodPanda to simply expand their reach and get a larger bite of
the home delivery market. Regardless of who gets the better funding, it is the ‘total
recall’ of websites that would ultimately take the biggest share of the pie. Even
before Zomato or FoodPanda had made an impression on the smart Indians, there was
Burrrrp!, which is now non-existent and so are other similar websites which
mushroomed at one point, but could not stay true to their value proposition. We have
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addressed various online food services that deliver ready meals at homes &
workplaces. There is another service based on the food delivery model - the online
grocery market. Some of the leading names in this category include PepperTap,
which recently got some extravagant funding from Snapdeal and BigBasket. Other
services like TapTapMeals exist, which is delivery of “home-cooked” meals other
than the usual global QSR menu.

Impact of Online Food Services on Restaurant Business in India .

The format of home delivery or the takeaways have gained a lot more customers in
locations such as malls, offices and big-party orders for residential complexes. People
missing breakfast on the way to work, order-in. People who desire a better choice of
corporate lunch or party, order in too. Everyone seems to be in awe of the online food
order and delivery option for the convenience and immediate source of food at home.
Besides, the convenience of ordering groceries from your mobile app or web browser
has certainly taken away some market share from the trusted ‘kirana’ or the mom-n-
pop stores. India is the 6th largest grocery market in the world, but the organized
sector as run by some of the online businesses mentioned above makes up only for 5-
8% market share of the grocery business. The vast majority is still owned by these
local markets and the mom-n-pop stores. This has some obvious impacts on the
brick-and-mortar formats of in-dining restaurants as more people prefer to have
restaurant-style cuisines right in the privacy of their homes or workplaces, but the
impact is not so much as it may appear to be. The fast food business in India is only
about 2 decades old, and remains largely unorganized. Given the rate at which the
organized sector is rapidly growing, it is only a matter of time and a much larger
chunk of global investments before a really big impact is made on ongoing restaurant
businesses that may not have a delivery-focused format of their own.

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1.2 LITERATURE REVIEW .

According to Sheryl E. Kimes (2011), his study found that perceived control and
perceived convenience associated with the online food ordering services were
important for both users and non-users. Non-users need more personal interaction and
also had higher technology anxiety to use the services.

According to Serhat Murat Alagoz & Haluk Hekimoglu (2012), e-commerce is

rapidly growing worldwide, the food industry is also showing a steady growth. In this
research paper they have used the Technology Acceptance Model (TAM) as a ground
to study the acceptance of online food ordering system. Their data analysis revealed
that the attitude towards online food ordering vary according to the ease and
usefulness of online food ordering process and also vary according to their
innovativeness against information technology, their trust in e-retailers and various
external influences.

According to Varsha Chavan, et al, (2015), the use of smart device based interface
for customers to view, order and navigate has helped the restaurants in managing
orders from customers immediately. The capabilities of wireless communication and
smart phone technology in fulfilling and improving business management and service
delivery. Their analysis states that this system is convenient, effective and easy to
use, which is expected to improve the overall restaurant business in coming times.

According to H.S. Sethu & Bhavya Saini (2016), their aim was to investigate the
students perception, behavior and satisfaction of online food ordering and delivery
services. Their study reveals that online food purchasing services help the students in
managing their time better. It is also found that ease of availability of their desired
food at any time and at the same time easy access to internet are the prime reasons for
using the services.

According to Leong Wai Hong (2016), the technological advancement in many

industries have 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.

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According to Hong Lan, et al, (2016), online food delivery market is immature yet;
there are some obvious problems that can be seen from consumers‟ negative
comments. In order to solve these problems, we can neither rely merely on the self-
discipline of online food delivery restaurants nor the supervision and management of
online food delivery platforms. Only by taking laws as the criterion, with the joined
efforts of the online food delivery platforms and restaurants, the government
departments concerned, consumers and all parties in the society, can these problems
be solved and a good online take away environment can be created.

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1.3 OBJECTIVES OF THE STUDY .

 To understand consumer preference towards food delivery chain.

 To study how online food delivery services are perceived by the consumers.
 To analyse what are the various factors that influences the consumers to
choose online food delivery services.
 To analyse the most preferred online food delivery service portal by consumers
 To know what are the factors that hinders consumers to use online food
delivery services.
 To understand the factors that restrains the company to grow.

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1.4 SCOPE OF THE STUDY .

The study is basically conducted to know how consumers perceive the online food
delivery services. The perception of consumers may vary under different
circumstances. From this study, we can have a better understanding of the “Online
Food Delivery Service Market”. We will know about the consumer perception
regarding the services they provide in Pune area and will get to know the variables
affecting their perception. Therefore, these findings may help the service providers to
work upon on these variables to fill up the gaps in the mindset of consumers.

1.5 LIMITATIONS .

 The study was restricted to consumers who prefer using Online Food Delivery
Services.
 The study was confined within specific regions of Kolkata city only.
 The sample size was limited so the results obtained from the study may not be
generalized for the whole population.
 The time period of the study was not sufficient to measure the consumers’
response effectively and reach to a more valid conclusion.
 Many of the respondents may not have given the correct information due to
personal bias.

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1.6 RESEARCH METHODOLOGY .
This research design consists of both qualitative and quantitative research.
Qualitative research consists of proper measurements of those personality traits
which can't be quantified, as well as it includes quantitative research which
entails concrete data, facts and diagrammatic representation of the proper numeric
data. The research design consists of both exploratory and descriptive research.

Exploratory research means when the problem is unknown and defining the problem
requires proper questionnaires and can be implemented in understanding consumer
perceptions.

In descriptive research it consists of known problems and defining the problems

requires mainly secondary data and describing the behavior of a subject without
influencing it in any way.

Sampling design

Sampling procedure consist of both probability sampling and non-probability

sampling. In probability sampling simple random sampling and stratified sampling
have been incorporated. In non-probability sampling only snowball sampling
procedure has been incorporated. 

Questionnaire design :
Our research consist of 2 kind of questionnaires 
Open-ended and Close-ended. 
1. Marketers perfect competitive module of the system.

Sample size = 70

This project uses statistical tools like 5 point likert scale along with nominal, ordinary
and interval scale.

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CHAPTER 2 : CONCEPTUAL
FRAMEWORK
2.1 COMPANY PROFILE .
Swiggy commenced operations in 2014 in Bengaluru, India’s start-up hub. As one of
the late entrants, the company faced tough competition in a no-holds barred battle for
a share of the Food Tech market in 2016.Several players like TinyOwl, Dazo,
Zupermeal and Spoojoy failed for reasons such as lack of funding, untimely launch of
a product or service, lack of specialization and aggressive competition. On the other
hand, Swiggy clocked over 450.1 percent revenue growth in FY 2017.
 
Swiggy offers a integrated ordering solution by deploying multiple proprietary apps,
including a vendor management app provided to restaurant partners, and a delivery
app powered with routing algorithms, provided to driver partners. When a consumer
places an order with Swiggy through the iOS or Android apps or website, the order is
immediately transmitted to the merchant and the right driver, based on availability
and distance from the restaurant, is attached to the delivery.

The merchant confirms receipt of the order and starts preparing the food, while the
driver reaches just in time at the restaurant to collect the prepared food and deliver to
the customer. In-app navigation facilitates hassle-free delivery. Swiggy's goal is to
revolutionize the food delivery market in India by providing a cheap, fast and
efficient alternative to taxing the already short-staffed restaurateurs. There are several
existing and even more upcoming food-ordering platforms in the country, However,
Swiggy sets itself apart from the competitors by having their own delivery fleet,
thereby minimising the risks in delivering an order.

Swiggy currently has 650 delivery executives from diverse backgrounds - college
students working as part-time and full-time employees. It is in the process of hiring
over 12,000 delivery executives by the end of this year. According to Jaimini, co-
founder and now the technological backbone of Swiggy, the start-up's delivery fleet
is powered by algorithm-enabled smartphones that are constantly enforcing more
efficient ways to complete deliveries. The technology is developed entirely in-house
and adapts to the changing requirements based on geography, logistics etc.
 Swiggy was founded in August, 2014 by Nandan Reddy, Sriharsha Majety &
Rahul Jaimini.

15
 
Ordering food online & providing delivery solutions at your doorstep from the best
restaurants in your neighborhood. Accepts online payments for all orders with no
minimum order policy.

Further bolstering its expansion strategy, Swiggy is contemplating a foray into the
hyper local market. This has helped the company to make use of its delivery fleet
optimally during the lean time of the day (predominantly afternoon time). Globally,
food delivery players are diversifying into related businesses to best utilize their fleet.
In summary, Swiggy appears to be hitting all the right notes with a plethora of
upcoming services, strengthened senior management and value-added technological
solutions.

SWIGGY’S BUSINESS MODEL

 
Swiggy has two major revenue streams:
 
 The major part of Swiggy’s revenue from commission it collects from
restaurants for lead generation and for serving as a delivery partner.
 
 Swiggy also charges a nominal delivery fee from customers on orders below a
threshold value which 200 rupees for most cities.

HOW DOES SWIGGY’S FOOD DELIVERY SYSTEM WORKS?

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As soon as you have placed your order, the wheels are set into motion. The swiggy
restaurant partner app receives instant notification about the order. After your order,
In the meanwhile, the restaurant checks if they can prepare your order. In case
they’re running low on a secret sauce or have completely sold out a popular
dish you ordered, they inform the Swiggy team, who in turn gets in touch with you to
select another dish. So, now wondering where your order is? You have got so many
ways to find out. Your order’s being tracked every second and is visible to you on the
Swiggy app. After adding the finishing touches, the restaurant packs your order and
hands it over to the assigned Hunger Saviour. The Hunger Saviour is now given
directions so he can navigate to your destination to deliver your order. The food has
left the building! From the point where you select your order till it’s in your hands.
They track your order at every step and overcome all the hurdles along the way.

2.2 MARKETING MIX OF SWIGGY .

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Product in the Marketing Mix of Swiggy

Swiggy is one of the popular delivery companies that supplies ordered food and
beverage items to its customers. It has created a single window and included a wide
range of food parlours and restaurants under its umbrella. A customer now can make
a choice from visual menus of restaurants in neighborhood and order online.

Ordering food and getting swift delivery has become a hassle-free option from
customerviewpoint because of Swiggy. The company has estimated seven hundred an
d fifty restaurants on its platform andreceives nearly seventy thousand orders on
monthly basis. Swiggy is not accountable for the quality of food as it only delivers
from one hand to another. In the case of complaints, it usually takes up to the
restaurant in question. The company encourages promotions and ratings of
restaurants for online delivery. Swiggy has launched an On-Time-Delivery service
titled Swiggy Select that guarantees cashback if the order does not reach a customer
in stipulated time-frame.

 Swiggy is one of the most popular delivery company that supplies ordered
food and beverage items.
 A customer can go to the Swiggy Website or App, make a choice from online
menus of restaurants in his or her neighborhood, and orders online and, if all
goes well, get a swift delivery.
 Payment can be done online or on delivery.

Place in the Marketing Mix of Swiggy

 

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  Swiggy has spread its presence to few cities in India like Bengaluru, Gurgaon,
Pune, Chennai, Delhi, Hyderabad, Kolkata and Mumbai.
 It has its headquarters base at Bengaluru in Karnataka and has established its
corporate offices at Hyderabad in Telangana and Gurgaon in Haryana.
 It is a popular app that takes order for food delivery from listed restaurants on
its portal.
 Swiggy has set up a strong and widespread distribution network to offer
prompt and best results.
 It has an exclusive fleet of personnel that includes services of nearly eight
hundred delivery people working on-field.
 They are involved in picking up orders from selected restaurant and delivering
it to customers. Delivery boys are equipped with Swiggy App and smartphones
that make tracking of a delivery throughout routing algorithms easy.
 Swiggy has hired Shadow fax Technologies, a third- party delivery company,
for part-time distribution in Delhi and Bengaluru

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Price in the Marketing Mix of Swiggy

Swiggy has an extensive workforce and this flexibility prompts it to allow its
customer a policy of no minimum order. This has increased its customer base to a
great deal. Swiggy was able to raise 2 million dollars in Series A funding from Accel
Partners and SAIF Partners. During Series B it raised 16.5 million dollars funding
from an undisclosed investment firm and Norwest Venture Partners. Swiggy has tie-
ups with restaurants that offer a minimum of 15% to 25% commission and this has
helped it in increasing its distributive channel and garnering better revenues. It also
charges a minimum delivery fee from its customer irrespective of a small or high
amount order. 

• Its success depends on keeping delivery prices extremely low.

• In Bangalore, for example Swiggy gives free delivery for any order over Rs 250 and
a delivery fee of Rs 35 for orders below 250.

• It generates its revenue by taking a cut from the restaurants itself.

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 Promotion in the Marketing Mix of Swiggy

Swiggy realizes the importance of a good marketing strategy and has adopted several
plans to create further brand awareness. It relies heavily on mouth publicity and
satisfied customers are its greatest advertising tools as they recommend the brand to
friends and family. Swiggy has adopted online marketing strategy and has taken help
of social media platforms like Twitter, Facebook, Instagram, YouTube and Pinterest
via innovative and interesting ad campaigns like #SingWithSwiggy and
#DiiwaliGharAayi. Its Facebook page is very popular and active as it offers regular
updates and encourages active participation. Swiggy has launched innovative videos
that have become very popular amongst masses like Swiggy Goes International. The
company runs contests to encourage direct participation by customers through
#SwiggyTuesdays and offers to munch bag and coupons as rewards. Ahead of its
launch in Mumbai city, it partnered with popular Dabbawallas of Mumbai to get a
better grasp of the situation and later used it as a promotional strategy to gain brand
exposure.

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 2.3

ANALYSIS
Strengths in Swot Analysis of Swiggy

 Fast Delivery: Swiggy is always known for its fast delivery. It has always
taken care of their customers by delivering their order in time.
 Sensible Complete Image: When we think of ordering food the first name
which clicks is Swiggy. It has developed a clean and crystal image among
people.
 Trained folks for creating a delivery: Swiggy has well trained their team
to deliver as fast as possible in the market.
 Wide selection of eating places offered: The main USP of Swiggy is that
they provide eating options from various places and wide ranges.
 Free delivery: Swiggy takes care from ordering, till delivering of the food
with no charges.
 Neat Packaging: Swiggy delivers the food with neat and hygienic
packaging.

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Weakness In Swot Analysis of Swiggy

 Orders solely on the market from the restaurants that are within the zone of
the order placed. : Swiggy is targeting on the zonal restaurants. As their
competitors are increasing they need to expand their restaurant.
 Low Awareness of brand name: Swiggy needs to re work on their branding.
They need to create some more marketing strategies to be in market.
 

Opportunities in Swot Analysis of Swiggy

 Pioneer in Food Delivery Business: Swiggy was the first Platform to

introduce this concept in the Market. They have shown a new way to Home –
Delivery with minimal charges.
 Growing marketplace for Potential Customers. They have shown People to
rise and grow in the market.
 Increase in Market Share : A little re-branding can re grow them in the
Market.
 Value Effective and sensible Quality Food.: They need to increase their
Zonal Restaurant Base to compete in Market.
 Give higher Service: Delivery should be more quick and no charges.

Threats in Swot Analysis of Swiggy

 Increasing Health consciousness.

 Increasing potential competitors.
 Negligence of potential competitors.

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2.4 SEGMENTATION, TARGETING & POSITIONING OF
SWIGGY

SEGMENTATION

Segmentation of swiggy is done based on the

attributes below :

 Demographic Segmentation
 Age
 Lifestyle
 Gender
 Culture
 Behavioral segmentation
 Loyalty Status.

TARGETING
Target group is made of go- getters with a zeal for life.
While they may not have the time to plan their meals. They
still want the best and choicest food options delivered at
the touch of a button. The targeting groups are
 20—30 years old
 College students
 Working professionals
 E-Commerce Savvy
 People who are living away from their hometown

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POSITIONING
The positioning is explained by Points of Differences and Point of Parity of Swiggy
compared to its competitors-

 Points of Differences
 Quicker delivery time
 Different business model
 Private fleet
 COD Available

 Points of Parity
 Similar Service
 Similar restaurant Listings
 Unstable market base
 branding techniques

25
CHAPTER 3: DATA ANALYSIS AND
INTERPRETATION
Q: Age of the Respondents.

Answers Response Percentage

Below 18 8 11.5%
18 – 30 60 85.7%
31 – 50 1 1.4%
Above 50 1 1.4%

INTERPRETATION

 From the above graph it can be inferred that majority of the respondents
belong to the age group of 18-30. As preferred by all the delivery apps
they target this age group mostly. Rest belong to the under 18 and above
30 age groups.

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Q) Profession of the Respondents

Answers Response Percentage

Student 57 81.4%
Working Professional 9 12.9%
Businessman 3 4.3%
Employee 1 1.4%

INTERPRETATION

 From the above table we can infer that majority of the respondents are
students. The percentage is nearly 82%.
 The others are working professionals who prefer using the online
delivery apps.

27
Q)

Answers Responses Percentage

Yes 70 100%
No 0 0%
Maybe 0 0%

INTERPRETATION

 The graph above shows that all the respondents know about any one of the
online food delivery app as it shows a 100% response to the yes category.

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Q)

Answers Response Percentage

Take away 18 51.4%
Dine In 5 14.3%
Calling Nearby 10 28.6%
Restaurants
Others 2 5.8%

INTERPRETATION

 The table above shows that about 50% of the respondents don’t go out to take
away or dine in or use any other means when they don’t use any apps.
 Only 35 of the total respondents have responded to this question which
certainly implies the rest only order their food through online apps else not.

29
 Answers Response Percentage
Swiggy 64 91.4%
Zomato 68 97.1%
Uber Eats 63 90%
Food Panda 41 58.6%
Others 10 14.3

INTERPRETATION

 The above graph shows that 91.4% of the respondents know about the Swiggy
app.
 Approx. 97% know about the Zomato app.
 90% of the respondents know about Uber Eats app.
 58.6% of the respondents know about the Foodpanda app.
 Rest 14.3% knows about all the other apps which delivers food.
 From the above we can infer that about 70% know about all the food delivery
apps.

30
Q)

Answers Responses Percentage

One 7 10%
More than one 38 54.3%
Multiple 25 35.7%

INTERPRETATION

 From the above pie chart we can see that around 54.3% of the respondents use
more than one app to order food which implies they basically compare and
order.
 For about 35.7% use multiple apps to order. It may so happen that as many as
25 of the respondents use all the apps mentioned above.

31
Q)

Answers Response Percentage

Daily 3 4.3%
Once a week 13 18.6%
More than once a week 39 55.7%
Weekend 7 10%
Monthly 8 11.4%

INTERPRETATION

 From the above data we can infer that majority of the respondents are frequent
users of the food delivering system. As many as 55.7% order their food more
than once in a week.
 Daily users are merely 5%
 Respondents who order on weekends are 10%
 There are about 11.4% users who order occasionally like in a month or two.

32
Q)

Answers Response Percentage

Swiggy 13 18.6%
Zomato 38 54.3%
Uber Eats 19 27.1%
Food Panda 0 0%
Others 0 0%

INTERPRETATION

 The above chart shows maximum respondents use the Zomato app to order
their food as the percentage is 54.3%.
 Uber Eats garners as much as 27% in its favour.
 Swiggy is preferred by 18.6% of the total users.
 Food Panda and others have no users as per the study.

33
Q)

Answers Response Percentage

Pocket Pinch 47 68.1%
On time delivery 4 5.8%
Varieties of restaurant 11 15.9%
Food Quality 6 8.7%
Tracking Services 1 1.4%

INTERPRETATION

 As much as 68% of the respondents differentiate the apps on the basis of offers
provided by the various apps. This implies that most of the users are price
sensitive in nature.
 15.9% of the users differentiate on the basis of varieties of cuisines provided
by the apps.
 8.7% users check the food quality and then have their own preference of the
apps.
 Others expect fast delivery so as many as 5.8% differentiate on that rest 1.4%
want the best tracking services when it comes to ordering food.

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Q)

Answers Responses Percentage

Yes 59 84.3%
No 11 15.7%

INTERPRETATION

 This question was asked again to know what percentage of respondents

actually uses the Swiggy app to be more specific.
 About 84.3% of the respondents use the Swiggy app.

35
Q)

Answers Response Percentage

Offers 21 32.3%
Delivery Services 19 29.2%
Varieties of Restaurants 16 24.6%
Refund Deals 2 3.1%
Tracking Services 5 7.7%
Food Quality 2 3.1%

INTERPRETATION

 The Swiggy users like the offers they provide as 32.3% have mentioned this.
 29.2% like their delivery services.
 24.6% like the varieties of restaurants they have on their list.
 7.7% like the tracking services they provide.
 3.1% like the food quality and refund deals respectively.

36
Q)

Answers Response Percentage

Delivery Time 6 8.6%
Variety of Restaurants 6 8.6%
DEM 3 4.3%
Area Coverage 18 25.7%
Offer & Discounts 35 50%
Others 2 2.9%

INTERPRETATION

 On asking what they want to improve in the services of swiggy, as many as

50% of the respondents want swiggy to improve their offers to garner more
and more orders.
 25.7% of the users want to swiggy to improve its area coverage so that they
can enjoy hassle free privileges.
 8.6% of the users want swiggy to improve their delivery timing as well as the
wide range of restaurants they have.
 4.3% wants better delivery executive management to be done.
 2.9% have listed others factors to improve such as more awareness.

37
Q)

Answers Response Percentage

Totally Satisfied 5 7.1%
Satisfactory 24 34.3%
Neutral 32 45.7%
Unsatisfactory 6 8.6%
Totally Unsatisfied 3 4.3%

INTERPRETATION

 34.3% of the respondents are satisfied with the services of Swiggy on all
grounds.
 45.7% are neutral about their level of satisfaction towards swiggy.
 8.6% are unsatisfied with the services of Swiggy.
 7.1% are totally satisfied.
 4.3% are totally unsatisfied with the services of Swiggy.

38
Q)

Answers Response Percentage

Strongly recommend 4 5.7%
Recommend 29 41.4%
May recommend 26 37.1%
Not recommend 10 14.3%
Will never recommend 1 1.4%

INTERPRETATION

 About 41.4% of the respondents say that they will recommend Swiggy to other
people or their peers or friends.
 37.1% say they may or may not recommend others to use the Swiggy app.
 About 14.3% says won’t recommend Swiggy to anyone owing to their own
reasons.
 5.7% says they will strongly recommend it to others.
 1.4% says they will never recommend it to anyone.

39
Q)

Swiggy Zomato Uber Eats Food

panda
5 7 29 16 2
4 29 23 23 6
3 21 13 17 14
2 9 4 12 26
1 4 1 2 22

40
CHAPTER 4: FINDINGS &
RECOMMENDATION

4.1 FINDINGS .
 The research work done tends to reveal that nowadays in this fast moving
world consumers don’t have time to take out especially for eating purpose and
their comes the need to order at a relative cost and which comes in handy.
Thus this sector has seen a lot of growth in recent times.
 The research work reveals that the consumers mostly prefer the Zomato app to
order food as it is much cheaper, provides fast delivery, a hassle free
communication and many more over the others.
 The consumers perceive this online food delivering system as an easy tool on
their fingertips as they can order anything they wish to at any time at relevant
costs. They are saving on time and money by using these apps to order what
they want to eat.
 The research analyses the factors which impels consumer to choose the online
food delivering system such as – having food on the go; easy ordering process;
saving time on going to the restaurants to have food; having your favourite
food at your doorstep, and many more. Various factors have been discussed
above.
 Factors which govern the buying behavior of a consumer are prolonged
delivery timing; pricing of the products; packaging of the food, and various
others.
 The research work reveals the factors that may be an obstacle in the growth of
a food delivery app like the competitors giving a pricing strategy which could
destroy the market, instable market conditions, inability of the delivery
executive to deliver the food on time, improper management, varieties of
restaurants not available, not being able to cover more and more area and
various others.

41
4.2 RECOMMENDATIONS .
 The researcher would like to recommend the following:

 As per the study the respondents want the swiggy app to improve
their sales promotional strategies in order to have a greater market
share and a competitive advantage over its competitors.

 Sales promotion techniques would include huge discounts,

cashbacks, refund deals, contests, scratch cards, coupons etc.

 The researcher would also like to recommend the swiggy app to

expand its area coverage as this may also be a prime reason as to why
people don’t get their orders on time or they simply can’t order
because their area doesn’t come under coverage.

 Swiggy being the oldest in the industry should strive to serve its
consumers to the fullest of their satisfaction as it has the trust of its
loyal consumers.


42
4.3 CONCLUSION .

The changing urban lifestyle of the average Indian is dramatic enough to be

favourable for the food-on-the–go and quick home delivery models to grow at higher
rates. The ever-increasing population crowded metro cities and longer travel times
are drivers for the convenient, ready-to eat and cheaper options of having food and
groceries delivered at your doorstep. Companies that are aware of the huge potential
for growth may venture straight in, but only the fittest will survive. Businesses who
keep their value proposition and their brand active in consumer’s minds, will take the
biggest share of the Indian online food service pie.

Over these years, Swiggy has grown as a brand. It has given a tough competition to
other counterparts due to its online presence. Swiggy has been way active on
YouTube and the digital marketing team has utilized the platform brilliantly by
showcasing the 7-second video to its viewers. However, certain digital marketing
strategies suggested to boost the brand’s overall marketing performance.

This paper outlines the business models of the top four food aggregator services in
India as a case study analyzing the initial phases of startups in a growing market.
These aggregator services run into an initial loss due to focus on customer
acquisition, growth and changing the ecosystem of the market. However, with heavy
support from VC’s and investors, these startups can suspend focus on profit building.
With a funding freeze in India, it is important for the business model to be sustainable
to receive more rounds of funding. This requires optimization of the entire process,
which involves decreasing cash burn and increasing the economic outlook of sales.
Four distinct models: Swiggy, Zomato Delivery, FoodPanda, and Uber Eats are
compared in the study to determine correlations between success of the growth model
and how the company operates. A combined result of a SWOT analysis along with a
comparative analysis of models found that there are a few bottlenecks to early food
aggregator services.

43
BIBLIOGRAPHY .

 www.theaims.ac.in

 www.medium.com

 www.marketing91.com

 www.financialexpress.com

44
ANNEXURE .

NAME –

AGE –

Q) Profession of the respondents

o Student
o Working professional
o Businessman
o Employee

Q) Do you know about any food delivery app?

o Yes
o No
o Maybe

Q) If not using the app, how do you order food?

o Take away
o Dine In
o Calling in Nearby restaurants
o Others

Q) What all food delivery apps do you know?

 Swiggy
 Zomato
 Uber Eats
 Food Panda
 Others

Q) How many food delivery apps do you use?

o One
o More than one

45
 o Multiple

Q) How often do you order from these apps?

o Daily
o Once a week
o More than once a week
o Weekends
o Monthly

Q) Which food delivery app do you use the most?

o Swiggy
o Zomato
o Uber Eats
o Food Panda
o Others

Q) How do you differentiate between the apps?

o Pocket pinch/Offers
o On time delivery
o Varieties of restaurants
o Food Quality
o Tracking services

Q) Do you use the Swiggy app?

o Yes
o No

Q) What do you like the most in Swiggy app?

o Offers
o Delivery services
o Varieties of restaurants
o Refund deals
o Tracking services
46
 o Food Quality

Q) What is the factor that you want Swiggy to improve?

o Delivery time
o Variety of restaurants
o Delivery executive management
o Area coverage
o Offers or discount
o Others

Q) What is your level of satisfaction towards Swiggy on all grounds?

o Totally satisfied
o Satisfactory
o Neutral
o Unsatisfactory
o Totally Unsatisfied

Q) Are you going to recommend Swiggy to your peer or friends group?

o Strongly recommend
o Recommend
o May recommend
o Not recommend
o Will never recommend

47
THANK YOU

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