Project Final
Project Final
Submitted By
Name: Sonali Saren
CU Registration no: 224-1213-0816-19
Supervised by
Name of the college: Seth Anandram Jaipuria College
June 2022
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Acknowledgement
I would like to express my extreme gratitude to Prof . PAMPA JANA for providing
his valuable time and inputs without which the completion of this project would not have
been possible. I am extremely thankful to her not only for his valuable assistance but also
for her moral support which motivated me from time to time to complete this project.
I would like to thank my friends and colleagues for their help and support during the making
of this project. Their inputs added many colours and variety to my project.
I would like to thank my parents and siblings for having faith in me and providing Me with
sufficient resources which were needed for the successful completion of this project. Lastly, I
would like to thank The Almighty for giving me strength and knowledge To successfully
carry out the steps required for the completion of this project.
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Supervisors certificate
This is to certify that Sonali Saren a student of BCOM Honours in Accounting and
Finance of SETH ANANDRAM JAIPURIA COLLEGE Under the
UNIVERSITY OF CALCUTTA has worked under my supervision and guidance for
her project report with the title “DIGITAL MARKETING STRATEGY
TOWARDS ONLINE FOOD DELIVERY APP , A CASE STUDY ON
ZOMATO AND SWIGGY “ . Which she is submitting , in her genuine and
original work to the best of my knowledge.
Signature
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Students Declaration
I hereby declare that the project work with the title “DIGITAL MARKETING
STRATEGY TOWARDS ONLINE FOOD DELIVERY APP , A
CASE
STUDY ON ZOMATO AND SWIGGY” Submitted by me for the partial
fulfilment of the degree of BCOM Honours in Accounting and finance under the
University of Calcutta is my original work and has not been submitted earlier to any other
University for the fulfilment of the requirement for any course of study
. I also declare that no chapter of this manuscript in whole or in part has been incorporated
in this report from any earlier work done by other or by me. However
, extracts of any literature which has been used for this report has been duly acknowledged
acknowledged providing details of such literature in the reference.
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Index
Concept 10
Chapter:2
Conceptual Framework Company Profile 11-13
Pricing Strategies 27
Findings 28
Chapter:4
Conclusion and Findings Conclusion 28
Annexure 29
Chapter:5
References and Questionnaire 29-33
Bibliography
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Chapter:1
Background of the study
In this case study, the potential of the growing market in the one of the largest economies in the world is analysed . 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 of services that free them of such inconveniences . Upward of 50,000 restaurants in India provide
home delivery, and are often only able to see marginal profits from there take away sectors. This indicates a high potential in a
relatively untapped market.
Figure 1 – Shows the relationship between key sectors involved. In food delivery sectors. Fast food 1.0 a simple
takeaway/delivery sector has been huge drops in margins. With the growth of IT infrastructure And spread of internet in
the indian subcontinent , recent years have seen introduction of two more sectors.
Aggregators : Provide a Platform for customers to discover restaurants with tha ability to navigate through menus
of different cuisines . The manage the delivery segment as well , and charge per order commission (10-15%)
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They are highly scalable and have all experienced remarkable growth in the Indian sector ( Zomato & Swiggy) .
However they also take on significant operational load couriers hiring and training , maintaining equipment etc.
Fast food 2.0 : These services opt for a full integration of the process. As in house app is developed where consumers can
order a limited range of meals. This meals are reheated In their own fleet of carcars as orders come in, and delivered in about
15-20 minutes. Here choice is given the backseat in favour of convenience . These services are yet to catch footing in
India, but command a growing market share in North America ( Sprig , Maple , SpoonRocket etc ) .
LITERATURE REVIEW :
Sanjay Anandram Advisor Sattva , Volunteer ISpirt; Advisor seed Fund , Idea spring Endiya
Ennovent , KARSEM says
“while online kitchen business bill raise money and continue to grow, the real battle and fight will be between
players like Zomato and swiggy”.
Sathish Meena , Senior Forecast Analyst , Forrester Research , says ;
“If you look at it even now , the game is of the big players . The funding is coming only for the big guys . here is a market
for food delivery and foodtech, but now that the money is being pumped deeply into one segment”.
According to a recent sectoral report published by IBEF (Indian Brand Equity Foundation).
“Food has been one of the largest segment in India's retail sector , Valued at $49 billion in 2013. The Indian food retail market
is expected to reach Rs61 Lakh Crore ( $894.98 billion) by 2022.
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According to Dwyer and Welsh (1985)
Marketing channel strategies refer to the choice of structure in designing the distribution channel by manufacturers. They
also include influence Strategies which refer to content , frequency and intensity of communication intended to achieve
demonstration of favourable behaviour of their channel partners.
Bhavik Rathod , Head of Uber Eats India says;
“It is a huge opportunity. The unorganized food delivery is still $80 billion. And one of the reasons it is so attractive is a
problem- can you bring the cost of delivery down so low that the economics actually become super viable? Today with
better technology it is easier to bring the cost of delivery lower with a sizeable business.
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OBJECTIVES OF THE STUDY :
Understanding different marketing strategies of two major Indian players in the aggregator food tech
sector.
Using quality tools to isolate reasons for growth and development of these two particulars companies.
Developing a line of action in fields where there exists scope of improvement.
To examine the measures taken by these companies.
To study the SWOT analysis of both company.
RESEARCH METHODOLOGY :
Primary data we collected from various people and their opinion and information for the specific purposes of study
helped to run the analysis. In essence , the question asked were tailored to elicit the data that will help for study. The
data was collected through questionnaire to understand their experience and preference towards their loyal company.
Secondary data we collected from various sources such as different business websites and published papers.
A variety of quality tools have been applied to the problem of interest. The study starts with a marketing insights of both the
company that outline the feature of both the giant food-tech market in India. A comparison of business model is done
qualitatively and the marketing mix strategies of both the companies are compared.These tools are used in conjunction to
develop a set of conclusion for the industry.
Employees were hesitant for providing the working information about their companies.
Review were very much contradicting .
Very limited information about the strategies of these companies in different websites.
The study was based on samples so results may not be absolute.
There is chance of bias in the information given by the respondents.
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Chapter: 2
Conceptual framework
Digital marketing is the component of marketing that uses the internet and online based digit technologies such as desktops,
computers mobile phones and other digital media and platforms to promote products and services.
Its development during the 1990s and 2000s changed the way brand and businesses uses technology for marketing. As
digital platforms became increasingly incorporated into marketing plans and every day life and as people increasingly use
digital devices instead of visiting physical shops digital marketing campaign have become prevalent , employing
combinations of Search Engine Optimization (SEO) , Content marketing , Influencers marketing, content automation ,
campaign marketing, data-driven marketing, E-commerce marketing , Social media marketing, e-mail direct marketing,
display advertising, e-bookse- books and optical disks and games have became commonplace. Digital marketing extends
to non-internet channel that provide digital media, such as Television, mobile phones, (SMS and MMS) , Call back and on-
hold mobile ring tones . The extension to non-internet channels differentiates digital marketing from online
advertising.
A Digital Marketing Strategy is a plan for maximising the business benefits of data assets and technology focused
initiatives. A successful digital strategy requires a cross functional teamteam with executive leadership , marketing and
information technology (IT) members. It involves breaking down the silo between information technology leaders and
those of other customer – facing departments to deliver a consistent a digital customer experience.
While traditional information technology strategies tend to focus on Long-term road maps and budget forecasts that extend
years into the future , digital strategies tend to rely on short- term , month to month road maps that are tied to actionable
items measurable business objectives. To be successful the , the strategy should place focus on where the company value
change is vulnerable to disruption and could be made stronger and economically viable from a digital reboot. One of
the challenges for a establishing a digital strategy is to figure out which services should be outsourced to a third-party
provider and which services require customization in order to be effective.
In some companies , the CIO is in charge of both customer-facing initiatives and the backend infrastructure that
supports them. In other companies , however a Chief Digital Officer (CDO) may be appointed to create and execute
strategies and provide management with data and demonstrates how digital Initiatives are adding value to the company. Either
way a digital strategy should be customer-focused and address ways to improve the company's social media footprint ,
organic search results customer engagement and brand recognition.
The purpose of a digital marketing plan for any organization is to force you through the process of researching and clearly
articulating the aims and goals Of your digital initiatives, along with clearly targeting digital personals and methodically
choosing which channels to go after them and how.
The best digital marketers have a clear picture of how each digital marketing campaign support their overarching goals.
And depending on the goals of their marketing strategy, marketers can support a larger campaign through the free and paid
channels at their disposal.
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Company profile
Swiggy Founder :
Swiggy was founded by Nandan Reddy, Sriharsha Majety , and Rahul Jaimini in August 2014 , Nandan Reddy aged 29
and Sriharsha Majaty age 31 both are both alumini of Birla Institute of Technology and Science ( BITS) Pilani while
Rahul Jaimini aged 31 is an alumnus of IIT Kharagpur.
Swiggy journey :
Swiggy began its journey from bengaluru with six delivery executives and 25 restaurants on its platform. In the time of 3
years, it has scaled up with over 6000 delivery executives across India is more than 8 cities like Delhi – NCR ,
Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata and Pune.
1. The major part of swiggy’s revenue from commission it collects from major restaurants for lead generation
and for serving as a delivery partner.
2. Swiggy also charges a nominal delivery fee from customers on orders below threshold value which 200
Rupees for most cities.
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Swiggy Funding :
Swiggy is backed by one of best investors available in the market . Swiggy has raised a total 75.5 million dollars in
funding from various investors including Bessemer Venture Partners, Norwest venture, Accel Partners, SAIF Partners ,
Harmony Venture Partners, RB Investments and Apoletto.
Swiggy competitors :
Indian food delivery market is valued at 15 billion dollardollar and set for an exponential growth. Food delivery has
become a very competitive market in India. Swiggy is in direct competition with major on- demand food aggregators like
Zomato whereas there are other small startups like Foodpanda and Ubereats also in the competition.
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Date Round Amount Lead Investor
20 May 2017 Series E $80mn Naspers
19 Sep 2016 Series D $15mn Bessemer Venture
partners
10 May 2016 Series C $7mn Norwest Venture
Partners
18 Jan 2016 Series C $35mn SAIF Partners &
Norwest Venture Partners
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Zomato Founder :
Zomato initially named as Foodiebay started at 2008 by Mr. Dipender Goyal. It is a restaurant searching platform
providing in-depth details with autonomous reviews and ratings. Foodiebay initial name was changed to Zomato in
November 2010 to increase their reach among people.
Vision :
To expand to more 50 countries.
Milestones :
Number of listed countries : in 2008 it was 4000 restaurant which increase to 94000 in 2013 and currently
384,100 in Q1 of 2015.
Monthly visitors of zomato increases to 35 million in 2014 which was 11 million in 2013 and 0.015 million
in 2008.
Yearly revenue of Zomato in 2008 was 0.06 crores which increased to 11.3 crores in 2013.
Spread in 21 countries worldwide.
Success Factor :
First mover advantage.
Strong content platform.
Efficient employees.
Good rating mechanism and social platform.
Funding from experienced sources.
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Strategy of Zomato :
Zomato works with keen interest on various strategies to achieve their goal. It includes
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Date Round Amount Lead Investors
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Chapter 3
Data Analysis and Interpretation
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Product Differentiation ( Zomato) :
Curbing over hire :
Zomato laid off a large number of a employees , however without creating a bitter environment and strengthening
investor confidence . 40% of the restaurant on zomato accounted for over 90% of traffic. The company had to rethink the
our processes to make sure that the frequncy to their data updates go up in multiples for the 40%of restaurants. This
led to cut in about 60% of their contest team across the world . “over- hire” is a common money-pit in a early startup
culture in part due to investor pressure and wild business projection. This hire and fire culture has left a sour after tastetaste
in the food tech community.
Differential commission :
Another proposed model where the exact size of commission fee will be based on feedback from customers. In the case of
five year rating , Zomato will take a 7.5% commission fee . That cut could rise to a maximum of 15% for the lowest
customer feedback. Hance this attempts to quantify and reward good customer feedback and quality, which serves to be
good differentiator.
Strategy
Swiggy Zomato
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led to cut in about 60% of their contest team across the world . “over- hire” is a common money-pit in a early startup
culture in part due to investor pressure and wild business projection. This hire and fire culture has left a sour after tastetaste
in the food tech community.
Differential commission :
Another proposed model where the exact size of commission fee will be based on feedback from customers. In the case of
five year rating , Zomato will take a 7.5% commission fee . That cut could rise to a maximum of 15% for the lowest
customer feedback. Hance this attempts to quantify and reward good customer feedback and quality, which serves to be
good differentiator.
Strategy
Swiggy Zomato
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Table 2 : SWOT Analysis of Swiggy
Strength Weakness
Opportunity Threats
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Table 2 : SWOT Analysis of Zomato
Strength Weakness
Opportunity Threats
The SWOT analysis reveals that the biggest weakness of growing market of food startups in India Is the low margin per
orders. The costs associated with the food packaging And delivery are increasing day by day , but Increasing costs to
Consumers means losing market share In a competitive market place.
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Customer retention is a big challenge for the future Which can be achieved only with innovation. The primary
Opportunity here is the Demographic these models Appeal to. Most of the Indian food structure is disorganized and Do not
adhere to any food Stadards. Such market places appeal to a growing urban middle class , which form both a source of
strength and Opportunity. Long term scalability and sustainability Should be the key focus along side Innovation.
Swiggy Zomato
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3 . Marketing Mix (4P’S) Strategy of both the company.
PRODUCT
Swiggy Zomato
Swiggy is one of the popular delivery companies that Zomato provides it’s users with restaurants search
supplies order food and beverages items to it’s customer. It has information and reviews that will be enable one to make an
created a single window and included wide range of food informed decision in regards to the choice of restaurant. Menu
parlour and images are offered to the customer especially for
restaurants under it’s umbrella. A customer now can make a those restaurants that aren’t running their own website. In
choice from visual menus of restaurants in neighbourhood general their service include POS systems Restaurants Search
and order online. The company has estimated seven hundred and DiscoveryDiscovery , White lable Apps, Table
and fifty restaurants on it’s platform and receives nearly Reservation & Management and Online order services. The
seventy thousands order on monthly basis. company list al least 1.5 million restaurant across the 25
countries where it is present.
Other products include “CITIBANK
RESTAURANT ZOMATO GUIDE” –
a print version of it’s website content which it launched in
2012 conversation with India's largest bank of Citybank.
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PRICE
Swiggy Zomato
Swiggy has an extensive workforce and this flexibility Zomato doesn’t charge restaurants from putting their
promotes it to allow it’s customer base to a great deal. restaurants information on the zomato page. However
Swiggy has able to raise 2 million dollars in Series A it doesn’t mean that the restaurants won’t ultimately
funding from Accel Partners and SAIF Partners. During pay anything. There are three basic revenue generation
Series B it raised 16.5 million dollars funding from. An avenues or Sources namely :advertisement ( sponsor
undisclosed investment firm and Norwest Venture Partners. ads and banner ads) restaurants booking and event
Swiggy has tie-up with restaurants that offers a minimum of ticketing . Event ticketing is where tickets for special
15-20% commission and this has had helped it in increasing events are sold through the site basically for large
it’s distributive channel and garnering better revenue. It also scale events or parties. Restaurants booking or online
charges a minimum delivery fee from its customer ordering is charged at between 7.5% and 15% of the
irrespective of small or high amount order . scales depending on the priority category of the
restaurant
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PPLACLACE
PLACE
Swiggy Zomato
Swiggy has spread its presence to few cities in India like Bengaluru, Zomato is an online search site that can be accessed by native
Pune, Chennai, Delhi, Hyderabad, Gurgaon, Kolkata and Mumbai . users of Window Phones, Universal Windows Platform that
It has its headquarters base at Bengaluru in Karnataka and has is Windows 10 and Windows 10 Mobile , Android users,
established its corporate offices at Hyderabad in Telangana and iOS and Watch OS . It is currently available for use in about
Gurgaon in Haryana. It is popular app that takes order for food 23 countries including Canada, India, Chile, Malaysia,
delivery from listed restaurants on its portal. United Arab Emirates, New Zealand
, Lebanon, The United Kingdom, Ireland, Srilanka, Italy,
Swiggy has set up a strong and Poland, Turkey, Slovakia, Portugal, South Africa the
widespread distribution network to offer prompt and best results. USA as well as Australia among others. Today. The sites
receives a flooded traffic of about 90 million visit every
Swiggy has hired Shadowfax Technologies , a third party delivery month. Products are available in about 10 languages namely
company, for part time distribution in Bengaluru and Delhi. :
English, Italian, Slovak, Spanish , Portuguese, Turkish,
Polish and Indonesian.
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PROMOTION
Swiggy Zomato
Swiggy realises the importance of a good marketing strategy Zomato is credited for being one of the few brands to have
and has adopted several plans to create further brand become successful in content marketing. One of their content
awareness . It release heavily on mouth publicity and satisfied marketing strategy , in fact, the main strategy is the vast use
customers is it’s greatest advertising tools as they recommend of images to promote their products . Zomat's content is also
the brand to friends and family. Swiggy has adopted online always fresh, with the old image being delivered with unique
marketing strategy and has taken help on social media platform approaches. Zomato has thus more than just preached about
like Facebook, Twitter , YouTube, Instagram and Pinterest being unique bug has also proven so. The company has
via innovative and interesting ad campaigns like invested vastly on SEO and SME's. The use of the social
#Singwithswiggy and #Diwaligharaayi.The company runs media to promote Zomato has also played an important role in
contest to encourage direct participation by customers through making the company popular. Their posts on social media are
#SwiggyTuesdays and offers to much bag of Coupons as always just some simple industry jargons that help attract the
reward. A bood of it’s launch in Mumbai city . It partnered different audience segments. All their post and promotions
with popular Dabbawalas of Mumbai to get a better grasp of prove that the company always stick to the niches and also
the situation and later used it as a promotional strategy to gain understands exactly who it is catering to.
brand exposure.
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4. Pricing Strategies :
Zomato Swiggy
the orders
below Rs250 Or
Rs300 which
varies across
different cities.
Night delivery NIL Rs 30 after 11
Charges Pm.
Setting the Commercial 10% on the 15-20% on the
from the restaurants Order value order value placed.
price placed.
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Chapter 4
Findings and conclusions
Findings :
Both Swiggy and Zomato uses Emotional Branding to gather attention of the users.
Swiggy has a pole position on the merchant side. Zomato had neglected the ordering part for a long time as it
didn’t see much value in it.
Swiggy is leading in some aspects of survey.
Currently, Swiggy accounts for about 50% of online orders from my kitchen while zomato does about 20-
25% orders.
Undoubtedly Swiggy and Zomato made their impact on customer’s very strongly and captured loyal customers.
Both Swiggy and Zomato advertising were very innovative and attractive. Both company are expanding so
much money on advertising and promotions.
Conclusion:
Marketing strategy is the section of your business plan that outlines your overall game plan for finding clients and customers
for your business. Marketing strategy focuses on what you want to achieve for your business and marketing effort.
Swiggy's marketing strategy consists by online and offline marketing campaigns. It promotes it’s campaigns via
FacebookFacebook , Twitter, YouTube, Pinterest and Instagram. Some of it’s campaigns include Secondtomom ,
#Diwaligharaayi , #SingwithSwiggy and know your food series of pictures and food walk in a local area. The company
has successfully built its brand awareness and connects with its audience through this channel.
Zomato's marketing games focuses on the internet media rather than the traditional media , in fact they are one of those few
Indian brand who have figured how to get the most of this marketing medium. Using unconventional mediums Or messages
using Low cast marketing medium , focus on customer service/experience and strong customer engagement are some of the
strategies used by the company.
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Chapter:5
References and bibliography
Digital marketing strategy , An integrated approach to online marketing – book (by- Simon
kingsnorth)
'Economics Times'
https:/www.formalifesciencemarketin.com/
en.wikipedia.org/wiki/digital-marketing
Annexure:
1. Name:
2. Gender:
i. Male
ii. Female
iii. Others
3. Age groups:
i. 15-25
ii. 25-35
iii. 35-45
iv. 45-above
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4. Qualification:
i. 10th
ii. 12th
iii. Undergraduate
iv. Postgraduate
5. Occupation:
i. Yes
ii. No
i. Swiggy
ii. Zomato
iv. Others
i. Daily
ii. Weekly
iii. Monthly
iii. Others
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10. Which meal do you typically order food online.
i. Breakfast
ii. Lunch
iii. Snacks
iv. Dinner
i. Speed delivery
ii. Convenience
12. Would you be ok with longer wait time. If you did order from multiple restaurant?
i. Yes
ii. No
13. Which mode of payment do you use while ordering the food?
i. Cash
ii. UPI
v. Others
14. Do you find food available on food apps as per your taste?
i. Agree
iii. Disagree
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15. Do you find the cost of food affordable on foods apps?
i. Yes
ii. No
16. What is the approximate money you spend on order food per time?
i. <150
ii. <250
17. How many times you order a delivery each week on average.
i. Zomato
ii. Swiggy
iv. Others
i. Zomato
ii. Swiggy
iv. Others
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20. According to you which company provides more offer and promotion?
i. Zomato
ii. Swiggy
iv. Others
i. Excellent
ii. Average
iii. Poor
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