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Zomato is one of the largest online food delivery services, operating in 24 countries. The document examines Zomato's marketing strategies, including its target market of young people aged 18-35 who enjoy dining out. Zomato segments this market and positions itself as a way for customers to discover new restaurants. The analysis also looks at Zomato's competitive landscape, proposing strategies like expanding into remote areas and offering virtual restaurant tours.

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0% found this document useful (0 votes)
22 views7 pages

Fin Irjmets1662812864

Zomato is one of the largest online food delivery services, operating in 24 countries. The document examines Zomato's marketing strategies, including its target market of young people aged 18-35 who enjoy dining out. Zomato segments this market and positions itself as a way for customers to discover new restaurants. The analysis also looks at Zomato's competitive landscape, proposing strategies like expanding into remote areas and offering virtual restaurant tours.

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e-ISSN: 2582-5208

International Research Journal of Modernization in Engineering Technology and Science


( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:04/Issue:09/September-2022 Impact Factor- 6.752 www.irjmets.com
A CASE STUDY ON ZOMATO
Labhpreet*1
*1Division: Mathematics, University Institute Of Sciences, Chandigarh University,
Gharuan, Mohali, Punjab-140413, India.
ABSTRACT
The introduction of digital technology has enhanced the usage of creativity while also reshaping current
sectors. The global expansion in the digital sector has had an impact on the Indian economy. With the advent of
digitization, the food sector has embraced an e-commerce infrastructure that allows customers to make orders
via mobile-based apps and have meals delivered to their home. Among many such service providers, Zomato is
one of the most popular applications, offering an online meal delivery service to users who want to discover
eateries. This research examines Zomato's marketing mix, positioning methods, competitive landscape, and
SWOC analysis. To improve service skills, the overall study proposed that Zomato expand into remote regions
and give virtual restaurant tours. The analysis suggests that Zomato's positioning strategy is effectively defined
to capture the market but that other strategies are needed to remain in a competitive environment. Zomato's
implications have been examined.
Keywords: Online Food Delivery, SWOC Analysis, Marketing Mix Strategies, Competitive Analysis.
I. INTRODUCTION
Globalization has facilitated the usage of the Internet not just between various commercial enterprises, but also
between businesses and customers. Customers use the Internet not only to order products online, but also to
compare prices, product characteristics, and after-sales support facilities that they would receive if they
purchased the product from a certain retailer [1]. The Internet is becoming a more popular platform for
searching, selecting, and purchasing material. Online food ordering aggregators (OFA’s) provide a variety of
alternatives and conveniences that allow users to order from restaurants with a simple swipe on their cell
phones. As several new internet delivery channels fight for market positions and clients in various Indian
metropolitan centres, the industry of providing restaurant meals to the house is fast developing [2]. Food
delivery services have become highly profitable companies in the last five years, despite the fact that these
firms may swiftly take orders through internet channels and service multiple restaurants in any particular local
market. Moreover, given how busy individuals are these days, the demand for restaurant delivery services has
expanded dramatically. In their spare time, many people will make orders at restaurants and then proceed to
pick up their meal. However, with people's incredibly busy lifestyles, they now want to be able to have access to
a delivery service that can rapidly serve meals to them. As a result of the debut of these new enterprises paired
with internet applications that allow them to process orders swiftly, the popularity of food delivery services has
grown.
II. RESEARCH METHODOLOGY
This study's analysis is based on secondary data. As a result, textual sources are considered for data collecting.
The research examines Zomato's marketing practises and proposes strategies for promoting long-term growth.
The secondary data comes from the Zomato website, journal publications, blogs, and company websites.
III. COMPANIES AND FIRMS
Online meal delivery has been one of the most fast advancements in the e-commerce business. Customers may
now pick from a wide range of cuisines from a variety of restaurants listed online, internationally, and at any
time, which has transformed the way people think about food. The following is a list of online food companies,
including their country of origin and year of foundation.

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e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:04/Issue:09/September-2022 Impact Factor- 6.752 www.irjmets.com
Table 1: Presents the list of online food delivery companies

S. No. List of Companies Country of origin Year of Establishment

1. Domino’s Pizza Ypsilanti, Michigan, U.S. 1961

2. Just Eat London, England, UK 2001

3. Grubhub Chicago, Illinois, U.S. 2004

4. Zomato Haryana, India 2008

5. Postmates San Francisco, California, US 2011

6. FoodPanda Berlin, Germany 2012

7. Deliveroo London, England, UK 2013

8. DoorDash San Francisco, California, US 2013

9. Swiggy Bangalore, India 2014

10. UberEats San Francisco, California, U.S. 2014


IV. OVERVIEW OF ZOMATO
Zomato was founded in 2008 under the name 'Foodiebay,' and in 2010 it was renamed Zomato [3]. It began
with a home initiative in Delhi 12 years ago and has since grown to become one of the world's largest food
suppliers. Currently operating in 24 countries and 10000+ cities throughout the world, allowing more people to
view better cuisine and aiming not just to connect people with food in any way but also to work closely with
restaurants to establish a sustainable environment.
Zomato's Principles Framework:[4]
A. RESILIENCE: When faced with adversity, Zomato pushes itself beyond its capabilities. They approach it
solely with adaptability since they anticipate uncertainty.
B. ACCEPTANCE: Customer feedback is divided into constructive data, and the company continues to improve
its functions even more efficiently.
C. OWNERSHIP: They take every issue as their own and work to bring about change.
D. HUMBLENESS: It's always about 'us' over 'me.' They do not lose themselves in pride or trust during
individual triumphs, but instead focus on being our plain selves in every aspect. E. SPARK: They are
evangelists who believe in faith and push for it.
E. JUDGMENT: In the majority of situations, they attempt to obtain the correct judgement.
V. MARKETING STRATEGIES
Zomato was meant to be the Foodies' hangout. It is now known as Food Network. According to the Boston
Consulting Company, the food industry in India in 2015 was over 23 trillion Indian rupees, and by 2020 it is
expected to reach 42 lakh crores and is redefining the experience of foodservice delivery, with technology
playing a key role [5].
A. SEGMENTING: Zomato appeals to the 18-35 age range who enjoy dining out and want to be well-informed
about restaurants. Zomato discovered a broader target market in Professionals who prefer to dine out in the
office and even enjoy to nibble food if it is brought to their places of stay [6]. In the experiential events sector,
they host several entertainment and cuisine festivals named Zealand in numerous places. Zomato claims to give
clients with a pleasurable culinary experience. It plans to do this by developing new food-centered products for
the banqueting out and delivery segments.
B. TARGET: Zomato intends to attract young people between the ages of 18 to 35, who frequently wish to dine
out with their loved ones. It tries to attract consumers who consistently provide reviews and feedback about

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e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:04/Issue:09/September-2022 Impact Factor- 6.752 www.irjmets.com
the location in order to attract additional customers who believe the location is worthy, good, and value for
money. People who enjoy eating more food and who want to share it with others are also targeted. These
people just want to know where the greatest dishes in town can be found and then visit those establishments.
Consumption is aimed for all internet restaurant opinion seekers [7].
C. POSITIONING: The website is popular among young people since they want to discover new locations to eat
outside with family and friends [8].
VI. ZOMATO’S MARKETING MIX
A. PRODUCT: Zomato is an app/website that shows its customers available restaurants and menus, as well as
the ability to make an order online. Zomato provides the user with restaurant information, images, costs,
menus, and even customer reviews, as well as a forum where customers can share their ideas about the cuisine
and service of the food providers [9]. In its marketing, the primary services include point-of-sale systems,
restaurant expedition and delivery management, and advanced table bookings.
B. COST: Zomato does not charge restaurants for listing their information on their online portal. Zomato
makes money by displaying restaurant advertisements on their website.
They advertise the restaurant's banner, which offers them maximum visibility to users that visit their website.
They also provide restaurant consulting services, such as advising restaurants on when to launch their next
location for restaurant chains. It has raised its Gold membership fees, begun cross-selling during checkouts, and
implemented a phased delivery cost. Lunch is the most commonly bought meal online, and card payment is the
favoured payment method. Surprisingly, it was discovered that 95 percent of respondents purchased internet
meals because of special deals and discounts, and 84 percent because it was convenient and time-saving [10].
C. LOCATION: The use of a mobile smartphone app for customers to let them view and provide orders has
allowed restaurants to deliver consumers' orders instantaneously, which has contributed to the increase in the
usage of mobile phones and computers and brought good business to the service sector [11]. Zomato, an online
service, is accessible on the Windows, Android, and iOS platforms. It is present in 24 countries, including India,
Australia, the United States, Chile, Malaysia, the United Arab Emirates, Portugal, South Africa, and many others.
The UI is simple to use and comes in nine languages: English, Italian, Spanish, Portuguese, Turkish, Slovak,
Indonesian, Polish, and Italian [12].They are also active on social media sites such as Facebook, Twitter,
Pinterest, and Instagram, which are utilised to connect with consumers. Furthermore, the logistic system has
changed significantly since the Indian Postal Service's mail-order days. With the proliferation of various private
logistic firms, distribution and delivery routes may now be recognised as capable of achieving consumer
expectations of speed and timeliness of delivery [13].
D. PROMOTION: Zomato's advertising is exceedingly exact, making it highly targeted. They have an analytics
platform built in that executes a large number of queries and disseminates useful information. This makes it
incredibly targeted. Zomato is well-known for providing more spectacular deals than its competitors. Zomato
promotes Get excellent savings on animation and cartoons with captions. Faster delivery. In marketing, Zomato
is aggressive when it employs guerrilla marketing in comparison to others [14]. As part of a campaign, Zomato
arranged the Zomaland festival, a culinary festival including entertainment such as music, dancing, and gagsters
[15]. Zomato offers discounts and promotional coupons to entice customers.
E. PHYSICAL EVIDENCE: Zomato is a service that does not sell any items and has no physical presence. The
delivery system consists of personnel that deliver the meal ordered through Zomato's website or application.
The firm functions as a third-party scheme.
F. INDIVIDUALS: Zomato is made up of a strong team of over 5,000 people that work hard to deliver the finest
services to their clients. Small firms that outsource non-core company functions, such as food delivery, are
rising; previously, only major organisations practised this. As a result, an increasing number of proprietors and
managers are becoming aware of the significance of outsourcing food delivery services [16].
G. PROCESS: Customers must use their registered phone number and email address to access Zomato. The
customer's geolocation is tracked, and a list of places in the neighbourhood is provided, along with a menu that
can be explored and then an order can be placed. To wither, payment for the purchase can be performed in cash
or through online ways. The restaurant will approve and ship the order as soon as it is placed. After the dish is
www.irjmets.com @International Research Journal of Modernization in Engineering, Technology and Science
[526]
e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:04/Issue:09/September-2022 Impact Factor- 6.752 www.irjmets.com
delivered, Zomato requests feedback. As a result, the entire procedure has been simplified to ensure that the
user has a pleasant experience. Paper waste may be minimised by dining at the restaurant because they run on
a tablet and do not require documentation. They don't utilise records to take orders, for example. It also comes
with a computerised menu card. There's no need to wait for the servers to take a customer's order when they
enter the restaurant. They get the order as soon as a client takes a seat, and it is verified to the customer as
soon as it is ready. So, despite the fact that the food is ready, late delivery would not be an issue [17].
VII. DIFFERENTIATION MARKETING STRATEGY OF ZOMATO
A. STRATEGY: Zomato creates innovative solutions that attract a customer's attention. Zomato Gold is a
premium membership reward programme that provides clients with BOGO (Buy One, Get One) deals as well as
two plus two complimentary drinks as part of a unique dine-out experience. Zomato Gold is now available to
600,000 customers. This initiative has encouraged customers to eat out more, resulting in a greater rate of
customer rush.
B. STRONG BRAND NAME: A strong brand name is essential for maintaining a company's brand in the
marketplace, and Zomato has effectively built a brand that resounds with confidence and ease of access. Many
competitors, such as Food Panda and Uber Eats, have been in this market for a while, but in comparison to
Zomato, they need to focus more on brand awareness. It has been able to continually modernise through a
variety of channels, ensuring that the benefits it has created are preserved.
C. FOCUS ON TECHNOLOGY: Zomato's most appealing feature to its customers is its well-designed user
interface. The app is visually beautiful and user-friendly, giving it a competitive advantage over rival
companies. Even for a novice, the speed with which Zomato's website and mobile apps load and operate is
impressive. Zomato devotes a lot of time and effort to creating a compelling user interface for its clients. It has
data analytics, which has greatly contributed to its success.
Zomato was able to achieve a competitive edge since it is heavily data-driven. The organisation can get
operational and commercial benefits such as delivery time estimate, logistics optimization, advertising, and
supplier arrangement.
Zomato's objective is to adopt the cloud kitchen model, which will allow it to expand its company with less
resources and lower fixed expenses. Zomato will be able to lead the market since it places such a high value on
technological advancement.
The food sector is seeing a lot of competition from newcomers, with most enterprises performing incredibly
well in the market. Google Maps is utilised to give a database of nearby locations, as well as consumer
comments, photos, and reviews. The most significant benefit over Google Maps is that the menu listing for Maps
has yet to begin. Clients also use Zomato as a restaurant finding site.
VIII. SWOC ANALYSIS ON ZOMATO
The most extensively utilised approach for monitoring and analysing a company's overall competitive role and
climate is SWOC Analysis. Its major goal is to assess options for creating a corporate business strategy that
aligns the organization's resources and capabilities with the demands of the world in which it operates [18].
Businesses utilise the SWOC framework to assess their company's competition's, and products' strengths,
weaknesses, opportunities, and challenges. SWOC is a complete examination of the environment in which the
industry operates, and it assists in the projection of many aspects of the environment as well as their
incorporation into the organization's decision-making process. [19]
STRENGTHS
Zomato's advantages include the following:
a) Customers rate Zomato as a 'Specialty Product' that solely provides food and restaurants.
b) Customer brand awareness is quite strong, and it is ranked as the top product in the minds of customers.
c) Global presence in 25 countries, with around 1.5 million restaurant members.
d) Advanced and up-to-date technology, with over 1200 powerful and devoted workers operating beneath its
roof.
e) It has a simple and user-friendly UI.
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[527]
e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:04/Issue:09/September-2022 Impact Factor- 6.752 www.irjmets.com
f) The brand has received various accolades and honours.
g) They have a powerful website, www.zomato.com, that draws millions of visits.
h) The smartphone app has received almost five million downloads worldwide.
i) The mobile app's material is often updated, which encourages devoted users to repurchase.
WEAKNESSES
Zomato has the following flaws:
a) Search engine competition & rivalries apps suggest limited growth.
b) A lack of employee training to maintain food delivery standards.
c) Service in rural regions is restricted.
d) The behavioural risk derives from online merchants that have the capacity to act opportunistically by
committing fraud against customers who place orders from a distance and which are personal in nature, as well
as the government's failure to effectively track all online transactions. It includes product risks, psychological
risks, and seller efficiency hazards. The unstable existence of the Internet, which is not under the control of
online merchants and clients, poses environmental danger. It involves financial risks as well as privacy risks.
e) Lack of personal table service, inability to view or control the goods physically, and worry over processes of
terms and conditions of food delivery and therefrom, refunds, including the broadcast of credit card data
sharing via the Internet are seen as disadvantages.
f) The use of online meal delivery services may reduce home cooking, which may have an impact on clients'
overall diet efficiency.
OPPORTUNITIES
The following are the possibilities available on Zomato:
a) Possibility of expanding into new nations.
b) Extending coverage to additional semi-urban and rural locations.
c) Increased internet penetration as a result of a rising number of smartphone users.
d) The rapid advancement of technology and the adoption of a simplified user interface.
CHALLENGES
Zomato is confronted with the following challenges:
a) Intense competition from other food aggregators.
b) Defending user data from cyber threats.
c) The government's lack of defined rules and regulations, as a result of which the business model is prone to
change according to changes in government policy.
d) Other players might readily duplicate the business model, negatively impacting the company in the long
term.
e) In the case of dissatisfaction, internet consumers quickly transfer to competitors since their selections are
diverse and there are no switching fees. As a result, client retention is a challenge for all firms functioning
through the medium of the internet, necessitating additional work and methods for providing higher levels of
customer satisfaction.
f) Online meal delivery service providers must guarantee that the food reaches the consumer in a reasonable
amount of time, and the lead time should be as short as possible in order to keep the customer from using
alternative forms.
IX. IMPLICATIONS FOR MANAGEMENT
a) Its reach is limited in rural areas. With more and more technology routes opening up, the business must
harness it through aggressive advertising.
b) Some internet stores use a false review method that misleads customers. As a result, Zomato must use a
reward-based method to validate such reviews.

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[528]
e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:04/Issue:09/September-2022 Impact Factor- 6.752 www.irjmets.com
c) Zomato must continue to innovate by offering new services, such as a virtual restaurant tour. It should
include live recordings and video shots from restaurants and cafés, especially if good musicians are
performing. To attract more customers, the company should highlight its most popular aspects.
X. CONCLUSION
According to current trends, Zomato's Digital Marketing Strategy must continue to evolve. They must come up
with new strategies to catch the interest of their customers. They are currently performing an excellent job.
They will make more money if they continue to work hard on it. Zomato must be more dynamic in order to
compete with other online meal service providers by making modifications in response to client requirements
on a rapid basis.
ACKNOWLEDGEMENT
We thank Mr. Kapil Madan [Chandigarh University] for comments that greatly improved the manuscript.
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e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:04/Issue:09/September-2022 Impact Factor- 6.752 www.irjmets.com
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