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FINAL Avanthi Project

This project report presents a study on the digital marketing strategies employed by Swiggy, a leading online food delivery platform in India. It analyzes how Swiggy utilizes social media, SEO, influencer partnerships, and AI-driven recommendations to enhance user engagement and drive sales, while also evaluating its product ecosystem including services like Swiggy Instamart and Swiggy Genie. The research incorporates consumer insights and data analysis to assess the effectiveness of Swiggy's marketing campaigns and its competitive positioning in the market.

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ubshnani
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0% found this document useful (0 votes)
30 views

FINAL Avanthi Project

This project report presents a study on the digital marketing strategies employed by Swiggy, a leading online food delivery platform in India. It analyzes how Swiggy utilizes social media, SEO, influencer partnerships, and AI-driven recommendations to enhance user engagement and drive sales, while also evaluating its product ecosystem including services like Swiggy Instamart and Swiggy Genie. The research incorporates consumer insights and data analysis to assess the effectiveness of Swiggy's marketing campaigns and its competitive positioning in the market.

Uploaded by

ubshnani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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A

PROJECT REPORT
ON
“A STUDY ON DIGITAL MARKETING ON SWIGGY PRODUCTS”
Project submitted in partial fulfillment for the award of the degree
Of
BACHELOR OF COMMERCE
By
L.MANIDEEP:1059-22-405-099

M.MANOJ KUMAR: 1059-22-405-100

M.KARAN KUMAR: 1059-22-405-101

M.SHASHIKANTH: 1059-22-405-102

UNDER THE GUIDANCE OF


Mr. N Venugopal Rao, MBA, M.Com(phd)
Assistant Professor

Dept. of commerce and management

AVANTHI DEGREE & PG COLLEGE


Osmania University, Hyderabad.
TELANGANA – 500 007
2022-2025
1
DECLARATION

I hereby declare that this Project Work entitled “A STUDY ON DIGITAL

MARKETING ON SWIGGY PRODUCTS” submitted by me to the

Department of Commerce, AVANTHI DEGREE & PG COLLEGE, Osmania

University, Hyderabad is a bonafide work undertaken by me and it is not

submitted to any other University or Institution for the award of any

degree/diploma certificate or published any time before.

DATE Signature of the Student

L.MANIDEEP:1059-22-405-099

M.MANOJ KUMAR: 1059-22-405-100

M.KARAN KUMAR: 1059-22-405-101

M.SHASHIKANTH: 1059-22-405-102

2
ACKNOWLEDGEMENT

I am thankful to HR Manager for giving me the opportunity to do project entitled


“A STUDY ON DIGITAL MARKETING ON SWIGGY PRODUCTS” under
whose guidance this project resulted as success.

I express my gratitude to Principal Dr. D Venkata Rao, Avanthi Degree & PG


College

I thank Mr. N Venugopal Rao, Head, Dept. of Commerce, I feel immensely grateful
and indebted to to my esteemed guide Ms. K Divya, Assistant Professor, Dept. of
Commerce who has supported me and guided me throughout my project.

I thank her for the freedom she had given me in selecting my area of study and for
correcting various documents of mine with attention and care.
Finally, I wish to express my gratitude and thanks to all those who have directly
or indirectly helped me in collection of required information for preparing the
project report.
Thank you,

3
ABSTRACT

In today’s digital era, online food delivery platforms have transformed consumer
behavior, with Swiggy emerging as a market leader by leveraging innovative
digital marketing strategies. This study explores how Swiggy effectively uses
social media advertising, search engine optimization (SEO), influencer
partnerships, and AI-driven recommendations to enhance user engagement and
drive sales. The research delves into Swiggy’s digital product ecosystem,
including its core services like Swiggy Instamart for grocery delivery, Swiggy
Genie for parcel services, and Swiggy One as a subscription-based loyalty
program, analyzing how digital marketing contributes to their success. The study
incorporates survey-based insights to assess consumer preferences, behavior, and
satisfaction regarding Swiggy’s marketing campaigns. Findings indicate that
Swiggy’s data-driven approach, combined with real-time tracking, push
notifications, and customized promotional offers, significantly impacts customer
acquisition and retention. Furthermore, Swiggy’s focus on content marketing,
email campaigns, and strategic collaborations with restaurants and brands
strengthens its competitive advantage. The project also evaluates Swiggy’s use of
advanced analytics and automation to refine its digital marketing strategies for
better conversion rates and higher engagement.

4
DIGITAL
MARKETING ON
SWIGGY
PRODUCTS

5
TABLE OF CONTENTS

S.NO TOPICS PAGE.NO.


1.1 INTRODUCTION TO SWIGGY
1.2 IMPORTANCE OF STUDYING SWIGGY’S
PRODUCT MODEL
1.3 KEY OBJECTIVES OF THE PRODUCT-BASED
STUDY
1.4 RESEARCH METHODOLOGY
1.5 SCOPE OF ANALYSIS ON SWIGGY’S
ECOSYSTEM
1.6 LIMITATIONS OF THE PRODUCT-CENTRIC
ANALYSIS

1 10-16
2.1 REVIEW OF LITERATURE

2 17-20
3.1 SWIGGY OVERVIEW & GROWTH
JOURNEY

3.2 ONLINE FOOD DELIVERY INDUSTRY

3.3 BUSINESS MODEL AND REVENUE


GENERATION

3.4 SWIGGY’S COMPETITIVE POSITIONING


IN THE PRODUCT- ORIENTED MARKET

3 21-42
DATA ANALYSIS AND INTERPRETATION

4 43-54
5.1 FINDINGS

5.2 SUGGESTIONS
5 55-58

6
5.3 CONCLUSION

BIBLIOGRAPHY

WEBLIOGRAPHY

ANNEXURE 59-63

7
LIST OF TABLES

SL.NO TABLE NO P.G


NO

4.2 The age of the respondent 43

4.3 The gender of the respondent 45

4.4 The occupation of the respondent 46

4.5 Frequently using Swiggy for ordering food or groceries 47

4.6 Swiggy service do you use the most 48

4.7 Influences of decision to order from Swiggy 49

4.8 Payment method for Swiggy orders 50

4.9 Satisfaction with Swiggy’s real-time tracking and delivery 51


updates

4.10 Challenges while using Swiggy 53

4.11 Additional features would you like to see on Swiggy 55

4.12 Recommendation of Swiggy to others 56

4.13 Satisfation with overall experience of using Swiggy for food 58


delivery and online grocery shopping

8
LIST OF FIGURES

SL.NO TABLE NO P.G


NO

4.2 The age of the respondent 43

4.3 The gender of the respondent 45

4.4 The occupation of the respondent 46

4.5 Frequently using Swiggy for ordering food or groceries 47

4.6 Swiggy service do you use the most 48

4.7 Influences of decision to order from Swiggy 49

4.8 Payment method for Swiggy orders 50

4.9 Satisfaction with Swiggy’s real-time tracking and delivery 51


updates

4.10 Challenges while using Swiggy 53

4.11 Additional features would you like to see on Swiggy 55

4.12 Recommendation of Swiggy to others 56

4.13 Satisfation with overall experience of using Swiggy for food 58


delivery and online grocery shopping

9
CHAPTER 1:

INTRODUCTION

10
1.1 INTRODUCTION TO SWIGGY

Swiggy is India’s largest online food delivery and hyperlocal services platform,
redefining the way consumers access restaurant food, groceries, and essential
goods. Established in 2014 by Sriharsha Majety, Nandan Reddy, and Rahul
Jaimini, Swiggy started as a simple food delivery aggregator but has since
transformed into a multi-product, technology-driven company. It has introduced
innovations such as Swiggy Instamart, a quick-commerce grocery delivery
service; Swiggy Genie, a parcel delivery service; and Swiggy Access, a cloud
kitchen model that enables restaurant expansion without requiring dine-in spaces.
Unlike traditional food businesses that rely on physical infrastructure, Swiggy
operates as a digital-first enterprise, leveraging artificial intelligence (AI), data
analytics, and automation to optimize its services. By continuously improving its
platform, Swiggy has not only enhanced convenience for customers but has also
created new revenue streams for restaurants and employment opportunities for
delivery partners.
The online food delivery industry has experienced exponential growth over the
past decade due to urbanization, changing consumer preferences, and increasing
reliance on digital platforms for daily necessities. With a rise in disposable income
and the penetration of smartphones, food ordering has shifted from a luxury to a
daily habit. Swiggy’s entry into the market disrupted the traditional food industry
by offering a seamless app-based platform where users can browse menus, place
orders, make digital payments, and track their food in real-time. Unlike
conventional restaurant deliveries, which were often inefficient and unstructured,
Swiggy introduced an organized system that connects restaurants, customers, and
delivery personnel through an AI-powered logistics network. This innovation has
led to reduced delivery times, increased restaurant visibility, and improved
customer satisfaction.

1.2 IMPORTANCE OF STUDYING SWIGGY’S PRODUCT MODEL

Swiggy’s transformation from a simple food delivery service into a multi-product,


technology-driven platform has significantly impacted the food-tech industry.
11
Studying Swiggy’s product model is crucial as it provides insights into how digital
platforms leverage AI, automation, and hyperlocal logistics to enhance efficiency
and scalability. Unlike traditional service-based food delivery systems, Swiggy
operates as a product-centric ecosystem, integrating multiple verticals such as
Swiggy Instamart for quick-commerce grocery delivery, Swiggy Genie for parcel
logistics, and Swiggy Access for cloud kitchens. This study will offer valuable
insights into how product-based digital platforms are shaping the future of the
online food delivery and quick-commerce industry.

1.3 KEY OBJECTIVES OF THE PRODUCT-BASED STUDY

1) To analyze Swiggy’s transformation into a product-based company and its


impact on the food-tech industry.
2) To examine the role of AI and automation in Swiggy’s operations for
enhancing customer experience and delivery efficiency.

3) To evaluate the impact of Swiggy’s cloud kitchens (Swiggy Access) in


expanding restaurant reach and optimizing costs.

4) To explore future technological innovations like drone-based deliveries and


blockchain in Swiggy’s ecosystem.

5) To compare Swiggy’s product strategy with competitors like Zomato and


Blinkit to assess its market positioning.

1.4 RESEARCH METHODOLOGY

This study is based on a qualitative and analytical research approach, focusing


on Swiggy’s transformation into a product-based company. Secondary data
sources such as industry reports, company financial statements, research papers,
and case studies have been used to analyze Swiggy’s product ecosystem. The
research also examines Swiggy’s integration of AI, automation, and cloud

12
kitchens, providing insights into how technology drives its operational efficiency
and customer experience.
A comparative analysis has been conducted to evaluate Swiggy’s product
model against competitors like Zomato, Blinkit, and Amazon Fresh. This involves
studying market trends, revenue models, customer engagement strategies, and
product diversification. Additionally, consumer behavior insights have been
gathered from published surveys, expert reviews, and online platforms to
understand how Swiggy’s innovations impact customer satisfaction and market
positioning.

PRIMARY DATA

Primary data for this study has been collected through first-hand research
methods, including customer surveys, interviews with Swiggy users, and feedback
analysis to understand how digital marketing influences customer engagement
with Swiggy’s products. The survey includes questions on promotional
effectiveness, ad recall, personalized recommendations, and customer satisfaction
with Swiggy’s marketing campaigns. Observational research has also been
conducted to analyze user interaction with Swiggy’s app, website, Instamart, and
Genie services, providing valuable real-time insights into customer behavior and
digital marketing impact.

The data is analyzed using statistical tools and trend analysis methods, ensuring
accurate interpretation of consumer preferences and Swiggy’s marketing
performance. Key performance indicators (KPIs) such as conversion rates,
customer retention percentages, and order frequency variations are used to
evaluate the effectiveness of Swiggy’s promotional strategies.

13
SECONDARY DATA

Secondary data for this research is collected from authentic and verified sources,
including Swiggy’s official reports, industry publications, market research
studies, and digital marketing case studies. Reports from organizations such as
Statista, Business Standard, Times of India, Economic Times, and government
food-tech industry analyses provide valuable insights into Swiggy’s market share,
revenue trends, and consumer behavior patterns. Academic research papers and
articles from Elsevier, Springer, and research journals on digital marketing are
also referenced to understand Swiggy’s strategic positioning in the competitive
food-tech industry.

1.5 SCOPE OF ANALYSIS OF SWIGGY’S ECOSYSTEM

• This study analyzes Swiggy’s evolution as a product-driven platform,


highlighting how it has expanded beyond traditional food delivery services.
• Swiggy has transitioned from a service-based model to a comprehensive
digital product ecosystem, integrating multiple innovations.
• The study focuses on AI-powered food ordering systems that enhance user
experience through personalized recommendations and smart order
processing.
• Real-time logistics management is examined to understand how Swiggy
optimizes deliveries, reduces delays, and improves operational efficiency.
• The role of cloud kitchens (Swiggy Access) is explored to assess their
impact on restaurant expansion and food availability.

14
1.6 LIMITATIONS OF PRODUCT- CENTRIC ANALYSIS

1. The study relies on secondary data sources such as industry reports and market
research, which may not provide the latest insights into Swiggy’s digital
marketing strategies.
2. The study relies on secondary data sources such as industry reports and market
research, which may not provide the latest insights into Swiggy’s digital
marketing strategies.

3. Swiggy continuously updates its digital marketing strategies, and some


findings may become outdated as new advertising trends and technologies
emerge.
4. The study primarily focuses on Swiggy’s overall product-based approach and
does not provide an in-depth financial analysis of its marketing expenditures
and return on investment.
5. Competitive comparisons with Zomato, Blinkit, and Amazon Fresh are
included, but access to detailed marketing data from these competitors is
limited.

DISADVANTAGES OF SWIGGY’S PRODUCT STRATEGY:

• High Operational Costs: Swiggy’s extensive product ecosystem, including


AI-driven logistics, cloud kitchens, and quick-commerce services, requires
significant investment, leading to high operational expenses.
• Intense Market Competition: Competing with Zomato, Blinkit, and Zepto
forces Swiggy to constantly innovate and offer heavy discounts, which
impacts long-term profitability.
• Delivery and Service Inconsistencies: Despite AI-powered logistics, factors
such as traffic, partner availability, and delivery delays can lead to
inconsistent customer experiences.

15
• Dependency on Discounts and Promotions: Swiggy’s digital marketing
strategy relies heavily on cashbacks, coupons, and referral discounts, which
may reduce brand loyalty if customers shift to competitors with better
offers.
• Limited Reach in Tier-3 and Rural Areas: While Swiggy dominates urban
markets, logistical challenges, fewer restaurant partners, and lower internet
penetration restrict its expansion into smaller towns and rural regions.
• Regulatory and Legal Challenges: Food safety regulations, labor laws for
delivery partners, and changing government policies can impact Swiggy’s
business operations and compliance costs.

16
CHAPTER 2

REVIEW OF LITERATURE

Chaffey, D. (2020). Digital Marketing: Strategy, Implementation, and


Practice. Pearson.

Chaffey’s book provides an in-depth understanding of digital marketing strategies


and their implementation in modern businesses. The author discusses various
frameworks, including the RACE model (Reach, Act, Convert, Engage), which
businesses like Swiggy use to optimize their digital presence. The book also
highlights the role of data-driven marketing, content strategies, and digital
advertising to enhance customer engagement and brand visibility. Swiggy applies
these principles by leveraging social media, SEO, and targeted promotions to
expand its customer base.

Smith, J., & Kumar, R. (2021). "The Role of Data Analytics in Digital
Marketing: A Case Study on Food Delivery Apps." Journal of Digital
Marketing.

This study explores how data analytics has transformed digital marketing in the
food delivery sector. The authors examine Swiggy’s use of customer data,
predictive analytics, and machine learning to optimize marketing campaigns. The
study highlights that personalized recommendations based on consumer behavior
have significantly improved customer retention and order frequency. Swiggy’s
ability to analyze user preferences and send targeted notifications has resulted in
higher engagement rates compared to traditional marketing approaches.

17
Kaur, P., & Sharma, R. (2021). "Social Media Marketing in the Food
Industry: A Study on Swiggy’s Engagement Strategies." International
Journal of Social Media Marketing.

Kaur and Sharma focus on Swiggy’s social media marketing strategies and their
effectiveness in customer engagement. The paper examines Swiggy’s use of
interactive content, memes, and influencer collaborations on platforms like
Instagram and Twitter. The study reveals that Swiggy’s humorous and relatable
social media campaigns have strengthened brand loyalty and increased user
interactions. The authors also note that Swiggy’s engagement metrics, such as
likes, shares, and comments, have surged due to well-crafted social media
initiatives.

Patel, A. (2019). Influencer Marketing and Consumer Trust in Digital


Advertising. McGraw Hill.

Patel’s book provides a comprehensive analysis of influencer marketing and its


role in digital advertising. The author discusses how influencers help brands
establish credibility and trust among consumers. The book highlights Swiggy’s
partnerships with food bloggers and YouTube content creators to promote its
products effectively. Patel emphasizes that influencer marketing is a key strategy
for digital brands, as it fosters authenticity and consumer confidence, leading to
higher conversion rates.

Jain, M., & Verma, P. (2022). "AI-Powered Digital Marketing: The Future of
Online Consumer Engagement." Digital Commerce Review, 15(1), 29-44.

18
Jain and Verma explore the role of artificial intelligence (AI) in modern digital
marketing. The study explains how Swiggy utilizes AI algorithms to enhance
customer experience by offering personalized food recommendations and
optimizing push notifications. The authors argue that AI-driven strategies have
made Swiggy’s marketing more efficient, leading to better customer satisfaction
and increased sales. The paper also highlights how AI helps Swiggy analyze user
behavior to create targeted promotional campaigns.

Gupta, S. (2020). "SEO Strategies and Their Impact on E-Commerce


Growth: A Study on Swiggy’s Digital Presence." Journal of Digital Business
Strategies, 11(4), 88-101.

Gupta’s research investigates the impact of search engine optimization (SEO) on


the success of online businesses, with a specific focus on Swiggy. The study
highlights that Swiggy uses keyword optimization, backlinking, and content
marketing to rank higher on search engine results. The paper further examines
Swiggy’s use of Google Ads and Pay-Per-Click (PPC) advertising to drive organic
and paid traffic. The research concludes that SEO remains a crucial aspect of
Swiggy’s digital marketing efforts, ensuring better visibility and user acquisition.

Sharma, V., & Rao, N. (2021). "Push Notifications and Customer Retention:
A Case Study on Swiggy’s Marketing Techniques." Marketing Analytics
Journal, 10(3), 67-83.

19
Sharma and Rao analyze the impact of push notifications on customer retention
and engagement. The study finds that Swiggy effectively uses push notifications
to inform users about discounts, personalized offers, and limited-time deals. The
authors note that while push notifications increase app engagement, excessive
notifications can lead to user annoyance. Swiggy balances this by using AI-driven
insights to send notifications at optimal times, ensuring higher customer response
rates and minimizing app uninstalls.

Jadhav, R. (2019). Mobile-first strategies in the Indian food delivery market:


The Swiggy experience. International Journal of Mobile Marketing.

Swiggy’s reputation management strategy involves monitoring and responding to


online reviews, a key element of its digital marketing success. Raj & Sharma
(2020) investigate how online reviews on platforms like Google Play Store and
Trustpilot influence consumer behavior. Positive feedback on Swiggy’s products
and services boosts brand image and drives more customers to the platform.

20
CHAPTER 3
COMPANY PROFILE

3.1 SWIGGY OVER VIEW & GROWTH JOURNEY

Swiggy’s growth as a product-based company in the food-tech industry has been


largely driven by its ability to integrate digital marketing strategies with its
expanding range of services. Initially launched as an online food delivery
platform, Swiggy has transformed into a multi-product ecosystem that includes
grocery delivery through Swiggy Instamart, parcel delivery via Swiggy Genie,
and cloud kitchen solutions under Swiggy Access. This expansion has allowed
Swiggy to position itself as more than just a service provider, offering a diverse
range of digital products tailored to consumer needs. Through aggressive digital
marketing campaigns, Swiggy has leveraged data analytics, social media
engagement, and AI-driven customer targeting to increase its market presence and
user base. Unlike traditional service-based businesses, Swiggy has adopted a
product-driven approach, where its app and website function as core digital assets
that provide a seamless and personalized experience to consumers.

A key factor behind Swiggy’s rapid expansion has been its ability to implement
dynamic marketing strategies that adapt to changing consumer behavior. By
analyzing customer preferences and purchase history, Swiggy continuously
refines its promotional tactics to drive engagement and retention. Personalized
push notifications, search engine optimization, influencer marketing, and paid
social media ads help Swiggy create high-impact marketing campaigns that target
specific audience segments. Additionally, Swiggy’s loyalty programs, such as
Swiggy One, ensure that customers receive ongoing benefits, further
strengthening their brand connection. This product-oriented digital marketing

21
approach allows Swiggy to compete effectively in the highly competitive food
delivery and quick-commerce sectors, reinforcing its position as a market leader
in India’s evolving online consumer landscape.

TECHNOLOGY DRIVEN MARKETING AND


PERSONALISATION

Swiggy has successfully implemented artificial intelligence and data


analytics to enhance its digital marketing strategies. By analyzing customer
behavior, past orders, and preferences, Swiggy personalizes its marketing
campaigns through targeted advertisements, push notifications, and email
promotions. This approach ensures that users receive relevant offers, increasing
engagement and brand loyalty.
Swiggy has successfully leveraged artificial intelligence, data analytics, and
automation to enhance its digital marketing strategies and improve customer
engagement. The platform collects and analyzes vast amounts of user data,
including search history, past orders, browsing behavior, and location
preferences, to create highly personalized marketing campaigns. This allows
Swiggy to provide customized recommendations, ensuring that users see food
options, grocery deals, and promotional offers relevant to their tastes and
habits.

DIVERCIFICATION OF PRODUCT OFERRING

Swiggy has expanded beyond food delivery by introducing services like


Swiggy Instamart for grocery deliveries and Swiggy Genie for hyperlocal
parcel delivery. This diversification has allowed Swiggy to reach a wider
customer base and reduce dependence on a single service. By marketing these
additional services effectively, Swiggy has strengthened its position in the
quick-commerce industry.
Swiggy’s diversification of product offerings has been a crucial factor in its
growth and market dominance. Initially launched as a food delivery platform,
Swiggy identified new opportunities to expand its services based on evolving
22
consumer demands. Recognizing the increasing preference for convenience
and quick access to essential goods, Swiggy introduced Swiggy Instamart, a
quick-commerce service that delivers groceries and household essentials within
minutes. This expansion allowed Swiggy to tap into a new customer segment
beyond restaurant food delivery, providing users with a seamless shopping
experience for daily essentials.
Another major step in Swiggy’s diversification strategy was the introduction
of Swiggy Genie, a hyperlocal parcel delivery service that enables users to send
and receive packages across their city. This service leverages Swiggy’s vast
delivery fleet to offer an additional utility beyond food delivery, allowing
customers to transport documents, gifts, or other small parcels conveniently.
The integration of Swiggy Genie into its platform helped Swiggy establish
itself as a broader hyperlocal logistics provider rather than just a food
aggregator.

STRATEGIC PARTNERSHIP AND COLLABORATION

Swiggy has partnered with various restaurants, cloud kitchens, and


grocery suppliers to enhance its service offerings. Collaborations with major
food chains and independent restaurants allow Swiggy to provide exclusive
deals and discounts, attracting more users. Additionally, partnerships with
payment gateways and financial service providers enable smooth transactions
and cashback offers, further increasing customer retention.

ADVANCED LOGISTICS AND DELIVERY NETWORK


Swiggy’s ability to provide quick and reliable deliveries has been a major factor
in its success. The company has invested in AI-powered route optimization,
automated fleet management, and real-time tracking to improve delivery
efficiency. This ensures faster service, better customer satisfaction, and
increased trust in the platform.

23
EXPANSION THROUGH STRATEGIC INVENTIONS

Swiggy has strengthened its market presence not only through organic
growth but also through strategic acquisitions and investments. By acquiring
and partnering with emerging startups in the food-tech and quick-commerce
sectors, Swiggy has been able to enhance its product offerings and expand into
new business verticals. One of its most notable acquisitions was the purchase
of Supr Daily, a micro-delivery service specializing in daily essentials such as
milk, bread, and groceries. This acquisition allowed Swiggy to enter the
subscription-based delivery market, catering to customers who require
recurring orders of essential household items.
In addition to acquisitions, Swiggy has actively invested in technology-driven
innovations to enhance operational efficiency and customer experience. The
company has allocated significant resources toward artificial intelligence,
machine learning, and automation to optimize delivery routes, improve order
accuracy, and personalize marketing campaigns. By leveraging these
technologies, Swiggy ensures that customers receive faster deliveries, better
service recommendations, and more seamless interactions with the platform.
Swiggy has also focused on expanding its cloud kitchen network by investing
in Swiggy Access, which provides restaurant partners with infrastructure to
operate in high-demand areas without setting up full-scale dine-in facilities.
This investment has enabled smaller restaurant brands to scale their operations
and serve customers efficiently, while also allowing Swiggy to offer a wider
variety of cuisines in different regions.

3.2 ONLINE FOOD DELIVERY INDUSTRY

Swiggy’s business model is built on a strong digital ecosystem that


integrates technology, logistics, and marketing to create a seamless food
delivery and quick-commerce experience. Unlike traditional food service
businesses that rely on direct restaurant operations, Swiggy operates as a
platform-based aggregator, connecting customers with restaurants, grocery
stores, and delivery partners. By leveraging artificial intelligence, machine

24
learning, and data analytics, Swiggy optimizes its operations, ensuring faster
deliveries, better customer satisfaction, and efficient resource management.
The company earns revenue through multiple streams, including delivery
charges, commissions from partner restaurants, advertising services, and
subscription-based models. This diverse revenue structure allows Swiggy to
expand its services while maintaining financial stability in a competitive
market.

One of Swiggy’s most successful revenue-generation strategies is its


commission-based model, where restaurants pay a percentage of their sales to
Swiggy in exchange for visibility and delivery services. This system benefits
both Swiggy and its restaurant partners, as it provides restaurants with access
to a larger customer base while allowing Swiggy to earn a steady income.
Additionally, Swiggy charges customers a small delivery fee, which varies
based on factors such as distance, demand, and delivery speed. To further boost
profitability, Swiggy offers in-app advertising options for restaurant partners,
allowing them to promote their listings through sponsored placements and
targeted marketing campaigns. These ads generate additional revenue while
enhancing restaurant visibility and order frequency.

Swiggy has also introduced premium services such as Swiggy One, a


subscription-based model that offers customers benefits like free deliveries,
priority customer support, and exclusive discounts. This membership model
provides Swiggy with a recurring revenue stream while encouraging customer
retention and brand loyalty. Additionally, Swiggy Instamart, its quick-
commerce grocery delivery service, has become another key revenue driver,
generating profits through product markups, partnerships with retail stores, and
delivery fees. By continuously innovating and expanding its product
ecosystem, Swiggy has successfully built a sustainable and scalable business
model that allows it to remain competitive in the rapidly evolving food-tech
and hyperlocal delivery industry.

25
MARKET GROWTH AND EXPANSION

The online food delivery industry has witnessed rapid growth due to
increasing internet penetration, smartphone usage, and changing consumer
lifestyles. With the rise of urbanization and busy work schedules, more people
prefer ordering food online rather than cooking or dining out. This shift in
behavior has led to the expansion of food delivery services across metropolitan
areas, tier-2 and tier-3 cities, and even semi-urban regions. Companies like
Swiggy have capitalized on this growth by expanding their operations,
onboarding more restaurant partners, and introducing features like real-time
tracking and AI-based recommendations to enhance customer experience.

IMPACT OF DIGITAL MARKETING ON CONSUMER ENGAGEMENT

Digital marketing has played a crucial role in the success of online food
delivery platforms. The industry has moved beyond traditional advertising to a
data-driven approach, where companies use artificial intelligence and machine
learning to understand consumer behavior and preferences. Platforms like
Swiggy utilize targeted advertising, search engine optimization, and social
media marketing to reach potential customers. Personalized push notifications,
email campaigns, and AI-powered chatbots further enhance consumer
engagement by offering tailored recommendations based on past orders and
browsing history.

3.3 BUSINESS MODEL AND REVENUE GENRATION

Swiggy’s business model is built on a technology-driven approach that


integrates digital marketing, data analytics, and AI-powered logistics to
optimize its operations and maximize revenue generation. As a platform-based
aggregator, Swiggy connects restaurants, grocery stores, and independent
delivery partners with customers through its mobile app and website. The
company’s revenue model consists of multiple streams, including commissions
26
from partner restaurants, delivery charges, in-app advertising, subscription-
based services, and quick-commerce expansion through Swiggy Instamart.
Digital marketing plays a critical role in promoting these revenue streams by
targeting the right audience, optimizing customer engagement, and increasing
order frequency through AI-driven recommendations and personalized
promotions.
Swiggy’s ability to generate revenue is strengthened by its strategic use of
digital marketing to retain customers and maximize lifetime value. Through
push notifications, email marketing, and paid social media campaigns, Swiggy
ensures high user engagement, encouraging repeat orders and brand loyalty.
The introduction of Swiggy One, a subscription-based model offering benefits
such as free deliveries and exclusive discounts, has created a steady source of
recurring revenue. Additionally, Swiggy monetizes its platform by offering
promotional opportunities for restaurants and food brands, allowing them to
pay for featured listings and targeted advertisements within the app. By
continuously refining its digital marketing strategies and expanding its product
ecosystem, Swiggy maintains a strong business model that ensures consistent
revenue growth in the competitive food-tech industry.

27
PROCESS CYCLE FLOWCHART REPRESENTING SWIGGY'S BUSINESS
MODEL AND REVENUE GENERATION PROCESS:

Figure 1

Here is the seven-step horizontal flowchart illustrating Swiggy's Business Model and
Revenue Generation Process.

Swiggy's business model and revenue generation process follow a structured seven-
step cycle that ensures efficiency, customer satisfaction, and profitability. The process
begins when a customer places an order through the Swiggy app or website, selecting
their preferred restaurant or grocery store. Once the order is confirmed, it is sent to the
respective restaurant or store, where the staff starts preparing the food or packaging
the requested grocery items. During this stage, Swiggy’s system continuously updates
the customer on the status of their order, ensuring transparency and engagement.
After the food or groceries are packed, Swiggy assigns a delivery partner to pick up
the order. The delivery allocation is managed through an AI-driven system that
optimizes routes based on distance, traffic conditions, and delivery partner
availability. Once assigned, the delivery partner collects the order and begins the
delivery process, which is tracked in real-time by both the customer and Swiggy’s
operations team. This tracking system enhances efficiency, reduces delays, and allows
customers to anticipate their order’s arrival. The real-time dispatch process ensures
that the entire transaction runs smoothly from order placement to final delivery.
28
The final step in the cycle involves revenue collection and digital marketing
engagement. Swiggy generates revenue through delivery fees, commissions from
partner restaurants, and advertising services within the app. Additionally, Swiggy’s
digital marketing strategies play a crucial role in customer retention, using targeted
promotions, push notifications, and personalized advertisements to encourage repeat
orders. By continuously optimizing its revenue model and leveraging data-driven
marketing strategies, Swiggy ensures long-term sustainability in the highly
competitive online food delivery and quick-commerce industry. This seven-step cycle
not only enhances operational efficiency but also strengthens Swiggy’s position as a
market leader in the food-tech sector.

Swiggy’s seamless seven-step process is designed to enhance user experience while


maintaining operational efficiency. The integration of AI-driven order management,
automated dispatch systems, and real-time tracking ensures that each stage functions
smoothly without unnecessary delays. The ability to monitor orders from placement to
final delivery adds a layer of reliability, allowing customers to feel more in control of
their transactions. Swiggy’s strong logistics framework also plays a crucial role in
minimizing errors, ensuring that orders are delivered accurately and within the
estimated time. Additionally, the system continuously refines itself by analyzing past
deliveries, customer feedback, and partner performance, which helps in improving
efficiency and service quality over time.

Commission-Based Earnings from Restaurant Partners

Swiggy generates a significant portion of its revenue through


commissions charged to restaurant partners for every order placed on the
platform. These commissions vary depending on factors such as restaurant
popularity, location, and the volume of orders processed. Restaurants benefit
from Swiggy’s digital reach, gaining access to a larger customer base without
needing their own delivery infrastructure. This model allows Swiggy to maintain
steady earnings while helping restaurants expand their market presence.

To further maximize commission-based revenue, Swiggy offers premium


placement options where restaurants can pay to feature their listings prominently
within the app. These sponsored listings increase visibility and drive more orders,
29
providing restaurants with higher sales while ensuring Swiggy benefits from
increased engagement. This mutually beneficial system has contributed to
Swiggy’s dominance in the food delivery industry.

Delivery Fees and Surge Pricing Strategies

Swiggy charges delivery fees to customers based on factors such as distance,


demand, and restaurant location. These fees fluctuate dynamically to optimize
delivery logistics while ensuring affordability for users. During peak hours,
Swiggy implements surge pricing, where delivery charges increase based on
higher demand and limited availability of delivery partners. This model helps
regulate order volume while ensuring delivery partners are compensated fairly for
their time and effort.

Additionally, Swiggy offers express delivery services for customers who are
willing to pay a premium for faster service. This feature not only improves
customer satisfaction but also acts as an additional revenue stream. By
continuously refining its pricing strategy based on customer behavior and market
conditions, Swiggy ensures maximum profitability without compromising
affordability.

Advertising and Promotional Services

Swiggy generates revenue through in-app advertising, allowing restaurants to


promote their services to a wider audience. Restaurants can opt for paid
promotions such as banner ads, featured listings, and sponsored placements to
improve their visibility in the app. This digital marketing service benefits both
Swiggy and its restaurant partners by increasing customer engagement and
driving more orders.
Apart from restaurant advertisements, Swiggy collaborates with food brands and
beverage companies to promote special offers and exclusive product launches.

30
These partnerships help Swiggy monetize its platform further while offering
customers attractive deals that encourage higher spending. By leveraging its
extensive user base, Swiggy has created a strong advertising ecosystem that
contributes to its revenue growth.
Subscription-Based Revenue with Swiggy One
Swiggy One, the platform’s subscription-based model, provides users with
exclusive benefits such as free deliveries, priority support, and additional
discounts. This recurring revenue stream ensures consistent earnings for
Swiggy while offering long-term value to customers who frequently place
orders. The subscription model enhances customer retention, reducing
dependency on single-order transactions.
By offering premium membership services, Swiggy strengthens brand
loyalty while differentiating itself from competitors. The success of Swiggy
One highlights the growing importance of subscription-based revenue in the
food delivery sector, providing financial stability and improving user
engagement. As Swiggy continues to refine its subscription offerings, it is
likely to introduce more value-added services to expand its revenue
potential.

Revenue from Quick-Commerce and Swiggy Instamart

Swiggy has expanded beyond food delivery into the quick-commerce


segment with Swiggy Instamart, which provides grocery and essential item
deliveries within minutes. This service generates revenue through product
markups, partnerships with grocery stores, and delivery fees. Unlike traditional
food delivery, grocery orders tend to have higher frequency and larger basket
sizes, making Instamart a key contributor to Swiggy’s overall revenue growth.

By leveraging data analytics and AI-driven marketing, Swiggy Instamart


targets customers with personalized offers, discounts, and bundled deals to
increase order volume. The platform also collaborates with retail brands and
local vendors to offer exclusive products and limited-time promotions, ensuring
higher engagement. As quick-commerce continues to grow, Swiggy is investing

31
in expanding Instamart’s reach, making it a crucial part of its long-term business
strategy.

Cloud Kitchens and Swiggy Access

Swiggy has introduced cloud kitchens under its Swiggy Access program, allowing
restaurant brands to operate in high-demand locations without the need for a
physical storefront. This model benefits both Swiggy and restaurant partners by
reducing operational costs while expanding food availability in different regions.
Swiggy generates revenue by leasing out these kitchen spaces to restaurant
partners, charging them a fixed fee or a revenue-sharing model based on order
volume.

The cloud kitchen model also enables Swiggy to fill market gaps by analyzing
demand trends and launching exclusive virtual restaurant brands that cater to
specific customer preferences. Through AI-driven recommendations and targeted
marketing campaigns, Swiggy promotes these brands effectively, ensuring higher
order frequency and customer retention. As cloud kitchens continue to gain
popularity, Swiggy Access remains a crucial part of its revenue diversification
strategy.

Affiliate Marketing and Brand Partnerships

Swiggy collaborates with various food, beverage, and FMCG brands to run
exclusive promotions, special deals, and bundled offers. These partnerships
allow Swiggy to earn commission-based revenue from brands that want to
showcase their products to a vast customer base. Popular food chains, beverage
companies, and packaged food brands often feature their products in Swiggy’s
promotions, benefiting from increased visibility and higher sales.

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Data Monetization and AI-Driven Insights

Swiggy collects vast amounts of data on customer preferences, order patterns,


delivery trends, and market behavior. This data is valuable for restaurants, FMCG
companies, and marketing agencies looking to understand consumer trends and
optimize their business strategies. Swiggy monetizes its data by offering insights
to restaurant partners, helping them improve their menu offerings, pricing
strategies, and promotional campaigns based on real-time consumer behavior.

AI-driven analytics also play a key role in Swiggy’s revenue generation by


optimizing ad placements, dynamic pricing, and demand forecasting. By
leveraging machine learning algorithms, Swiggy ensures that restaurants and
brands get the highest possible return on investment for their in-app
advertisements. This data-driven approach not only improves Swiggy’s financial
performance but also strengthens its partnerships with businesses that rely on
actionable insights to drive growth.

Swiggy’s ability to leverage data analytics and artificial intelligence for


business growth has given it a strong competitive advantage in the food-tech
industry. By analyzing customer preferences, purchasing behavior, and market
trends, Swiggy optimizes its revenue streams through targeted advertising,
dynamic pricing, and personalized promotions. This data-driven approach allows
Swiggy to offer valuable insights to restaurant partners, helping them refine their
menus, improve service efficiency, and enhance customer engagement.
Additionally, Swiggy’s AI-powered algorithms enable more precise demand
forecasting, ensuring that restaurants and grocery vendors can stock products
efficiently to meet consumer needs. As data monetization becomes a growing
revenue stream, Swiggy continues to innovate its business model, ensuring long-
term sustainability while enhancing the overall user experience.

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3.4 SWIGGY’S COMPETITIVE POSITIONING IN THE PRODUCT-
ORIENTED MARKET

Swiggy has established itself as a dominant player in the food-tech industry


by leveraging its strong product ecosystem, data-driven digital marketing
strategies, and continuous innovation. Unlike traditional food delivery services,
Swiggy has expanded beyond restaurant orders by introducing Swiggy Instamart
for groceries, Swiggy Genie for parcel delivery, and Swiggy Access for cloud
kitchens. This diversification allows Swiggy to cater to a wider range of customer
needs, strengthening its competitive position in the market. By integrating AI-
powered recommendations, hyper-personalized marketing campaigns, and
targeted advertising, Swiggy ensures that its digital products remain highly
engaging and relevant to its users. Its ability to analyze consumer preferences
and implement behavior-driven marketing strategies has given it an edge over
competitors, ensuring continued customer retention and business growth.
Swiggy's competitive positioning is further reinforced by its strategic use of
partnerships and branding initiatives. Collaborations with restaurant chains,
grocery retailers, and payment service providers have allowed Swiggy to expand
its reach while offering exclusive deals and loyalty programs to customers. The
introduction of Swiggy One, a subscription-based service that provides benefits
such as free deliveries and special discounts, has helped build long-term
customer engagement. Additionally, Swiggy's investment in influencer
marketing, affiliate partnerships, and AI-powered promotional campaigns has
ensured that its brand remains highly visible and appealing to different consumer
segments. By utilizing these digital marketing techniques, Swiggy continues to
strengthen its position as a market leader in the highly competitive online food
delivery and quick-commerce industry.

DIVERSIFICATION OF PRODUCT OFFERINGS

Swiggy has expanded beyond food delivery by introducing services such as


Swiggy Instamart for groceries, Swiggy Genie for parcel deliveries, and Swiggy
Access for cloud kitchens. This diversification allows Swiggy to cater to a wider

34
audience, ensuring higher customer engagement and brand loyalty while reducing
reliance on a single revenue stream.

AI-DRIVEN PERSONALIZATION AND CUSTOMER ENGAGEMENT

Swiggy utilizes artificial intelligence and machine learning to analyze customer


behavior and preferences. By offering personalized recommendations, targeted
promotions, and dynamic pricing strategies, Swiggy enhances the customer
experience, increasing retention and repeat orders. This data-driven approach
gives Swiggy a competitive edge over traditional service-based competitors.

COMPARATIVE OVERVIEW OF SWIGGY AND OTHER LEADING


FOOD DELIVERY COMPANIES

COMPANY REVENUE MARKET PROFITABILITY NOTES


(FY 2024) SHARE
Swiggy ₹11,247.3 45% Net loss of ₹2,350.2 Significant
crore investment in
crore diversification,
including
grocery delivery
(Instamart) and
cloud kitchens.
Zomato ₹12,114 55% Net profit of ₹351 Achieved
crore crore profitability in
FY 2024;
maintains a
larger cash
reserve
compared to
Swiggy.

35
DoorDash $6.58 59% (US) Net loss of $468 Leading the U.S.
billion million market with
over half of the
market share.
Uber Eats $8.3 billion 27% (US) Net loss of $1.36 Second-largest
billion in the U.S.;
operates in six
continents.

Delivery €9.6 billion 39% Net loss of €1.5 Europe's largest


Hero (Europe) billion food delivery
company by
revenue.
Just Eat €5.3 billion 30% Net loss of €1.04 Europe's
Takeaway (Europe) billion second-largest;
facing stiff
competition in
North America.

INDUSTRY PROFILE

The online food delivery industry has evolved significantly over the past decade,
driven by advancements in technology, changing consumer behavior, and
increasing internet penetration. With the rise of smartphones and digital payment
solutions, consumers now prefer the convenience of ordering food online rather
than dining out or cooking at home. The industry has seen a rapid transformation
from a traditional restaurant-dependent model to a platform-driven ecosystem that
connects customers, restaurants, and delivery partners through AI-driven
applications.

In India, the food delivery sector is highly competitive, with leading players such
as Swiggy and Zomato dominating the market. Globally, companies like Uber

36
Eats, DoorDash, and Just Eat Takeaway have established themselves as key
players in their respective regions. The growth of this industry has also been
fueled by quick-commerce services, cloud kitchens, and AI-powered customer
engagement techniques. As digital marketing and hyper-personalization continue
to evolve, the food-tech industry is expected to expand further, with new
innovations shaping the future of food delivery and online ordering.

EVOLUTION OF THE FOOD DELIVERY INDUSTRY

The food delivery industry has transitioned from traditional phone-based


ordering systems to highly sophisticated digital platforms that leverage AI
and big data. Initially, customers placed orders by calling restaurants directly,
leading to manual errors, long wait times, and limited choices. The
emergence of digital platforms like Swiggy and Zomato revolutionized the
process, offering real-time tracking, diverse restaurant listings, and seamless
payment options.

Today, AI-driven analytics and predictive ordering allow companies to


anticipate customer preferences and optimize restaurant recommendations.
The integration of machine learning has also improved order accuracy,
reducing operational inefficiencies and enhancing customer satisfaction. As
food delivery continues to evolve, companies are investing in drone
deliveries, robotic kitchens, and blockchain-based food tracking systems,
ensuring the industry stays ahead of changing consumer expectations.

MARKET SIZE AND GROWTH TRENDS

The global food delivery market has grown exponentially, with companies
expanding their services beyond metropolitan areas into smaller towns and
rural regions. This growth is attributed to increasing internet access, digital
payment adoption, and the demand for convenience in busy lifestyles. The
COVID-19 pandemic further accelerated this expansion, as customers relied
more on online food delivery due to safety concerns and lockdown
restrictions.
37
In India, the food delivery industry is projected to reach $21 billion by 2026,
growing at a CAGR of over 30%. Platforms like Swiggy and Zomato
continue to expand their reach, incorporating services such as quick-
commerce grocery deliveries, cloud kitchens, and hyperlocal logistics. As
new players enter the market, competition will drive price wars, faster
deliveries, and innovative business models, ensuring sustained growth for the
industry.

ROLE OF QUICK-COMMERCE IN INDUSTRY EXPANSION

Quick-commerce has become a game-changer in the food-tech industry, enabling


ultra-fast delivery of groceries and everyday essentials within minutes.
Companies like Swiggy Instamart and Blinkit have disrupted traditional retail
models by leveraging micro-warehouses, AI-based inventory management, and
hyperlocal logistics to ensure deliveries in under 30 minutes. This shift has
expanded the role of food delivery platforms beyond restaurants, making them
essential service providers in the e-commerce space.

As customer expectations evolve, quick-commerce platforms are investing in AI-


driven demand forecasting, automated warehouses, and drone-based deliveries to
further improve efficiency. Swiggy Instamart’s success demonstrates how food
delivery companies can diversify their business models, ensuring a broader
revenue stream beyond restaurant partnerships. With the rise of personalized
grocery recommendations and AI-driven meal planning, quick-commerce will
continue to shape the future of the food delivery industry.

IMPACT OF DIGITAL MARKETING ON INDUSTRY GROWTH

Digital marketing has played a pivotal role in the success of food delivery
platforms, allowing companies to target, engage, and retain customers more
effectively. AI-driven ad campaigns, personalized push notifications, and social

38
media promotions have replaced traditional advertising, ensuring that companies
reach the right audience with highly relevant offers.

Swiggy, for instance, uses behavioral analytics to segment customers based on


their preferences, order history, and browsing patterns, ensuring that promotions
are hyper-personalized. Influencer collaborations and interactive social media
campaigns further boost brand visibility and engagement, making digital
marketing an indispensable tool for food delivery companies. As competition
grows, platforms will need to refine their AI-powered customer engagement
strategies to maximize conversions and build long-term brand loyalty.

RISE OF CLOUD KITCHENS AND VIRTUAL RESTAURANTS

Cloud kitchens, also known as ghost kitchens, have transformed the food industry
by allowing restaurants to operate without traditional dine-in facilities. These
kitchens cater exclusively to online orders, reducing operational costs while
increasing efficiency. Swiggy’s Swiggy Access program has enabled restaurant
brands to expand into new locations without heavy investments in physical spaces,
making cloud kitchens a profitable model for food delivery platforms.

Virtual restaurants—brands that exist solely on food delivery apps without


physical storefronts—have also gained popularity. These digital-only brands rely
on data-driven menu optimization, AI-based demand forecasting, and targeted
promotions to maximize profitability. As more restaurants adopt cloud kitchen
models, food delivery platforms stand to benefit from higher order volumes,
increased restaurant listings, and exclusive menu partnerships.

39
INTEGRATION OF AI AND MACHINE LEARNING

Artificial intelligence and machine learning have enhanced every aspect of the
food delivery industry, from order recommendations to route optimization. AI-
driven chatbots provide real-time customer support, while predictive analytics
help reduce delivery delays by optimizing fleet management.

Swiggy uses machine learning to improve menu personalization, dynamic pricing,


and automated customer service, ensuring a seamless ordering experience. As AI
technology continues to evolve, food delivery platforms will further integrate
voice assistants, predictive meal planning, and AI-powered logistics management,
improving both customer satisfaction and operational efficiency.

CHANGING CONSUMER PREFERENCES

Modern consumers demand greater convenience, customization, and variety in


their food choices. Health-conscious eating trends have led food delivery
platforms to expand their menus, offering organic, keto, and plant-based meal
options. AI-driven meal recommendations now help customers discover
personalized food choices based on dietary preferences and past orders.

Additionally, subscription-based loyalty programs such as Swiggy One offer


exclusive benefits, ensuring higher customer retention and increased order
frequency. As the industry adapts to changing consumer behavior, platforms will
continue introducing tailored meal plans, dynamic pricing models, and
personalized ordering experiences to enhance customer satisfaction.

GOVERNMENT REGULATIONS AND POLICY CHALLENGES

The food delivery industry faces regulatory challenges related to labor laws, data
privacy, and taxation. Governments in various countries have implemented rules

40
regarding fair wages for delivery partners, food safety regulations, and data
security policies to protect consumers.

ROLE OF SUSTAINABLE PRACTICES IN FOOD DELIVERY

Sustainability has become a key focus area, with food delivery companies
adopting eco-friendly packaging, carbon-neutral delivery options, and waste
reduction initiatives. Brands that promote sustainability attract environmentally
conscious consumers and enhance their corporate reputation.

INFLUENCE OF SOCIAL MEDIA ON FOOD DELIVERY TRENDS

Social media platforms such as Instagram, TikTok, and YouTube have played a
significant role in shaping food trends. Viral food challenges, influencer reviews,
and interactive campaigns have helped delivery platforms gain massive
engagement and attract new customers.

INNOVATIONS IN PAYMENT SOLUTIONS FOR ONLINE ORDERING

The integration of digital wallets, UPI payments, and buy-now-pay-later options


has made online food ordering more accessible. Companies offering seamless and
secure payment options see higher conversion rates and reduced order
cancellations.

THE FUTURE OF DRONE AND AUTOMATED DELIVERIES

Companies are exploring drone and robot-assisted deliveries to enhance efficiency


and reduce dependency on human couriers. While this technology is still in its
early stages, it has the potential to revolutionize the food delivery industry in the
coming years.

41
INTERNATIONAL EXPANSION OF FOOD DELIVERY SERVICES

With the success of food delivery platforms in domestic markets, companies are
now expanding internationally. Swiggy and Zomato have explored potential
markets outside India, while global giants like Uber Eats and DoorDash have
entered new territories to strengthen their presence.

42
CHAPTER 4
4.1 DATA ANALYSIS AND INTERPRETATION

TOTAL RESPONDENTS: 50
4.2 AGE:

AGE NO.OF. RESPONDENTS PERCENTAGE


18- 25 43 86%
26-32 3 6%
32-40 2 4%

Above 40 2 4%

INTERPRETATION:

The pie chart represents the age distribution of 50 respondents using Swiggy. A
significant majority, 86%, fall within the 18-25 age group, indicating that Swiggy’s
primary user base consists of young adults, likely college students and young
professionals. The 26-32 age group accounts for a smaller portion, followed by the
32-40 age group, and the least number of users are above 40. This suggests that
Swiggy's digital marketing efforts and product offerings resonate most with younger
consumers, while older age groups may have lower engagement with the platform.

43
4.3 GENDER:

OPTIONS NO.OF.RESPONDENTS PERCENTAGE

MALE 30 60%

FEMALE 20 40%

INTERPRETATION:

This pie chart represents the gender distribution of 50 respondents.

• 60% of the respondents are male, as indicated by the blue section.

• 40% of the respondents are female, as shown in the red section.

44
4.4 OCCUPATION:

OCCUPATION NO.OF.RESPONDENTS PERCENTAGE

Self employed 11 22

Employed Professional 9 18

Student 30 60

INTERPRETATION:

This pie chart represents the occupation distribution of 50 respondents.

• 60% of the respondents are students, as indicated by the large orange section.

• 22% of the respondents are self-employed, represented by the blue section.

• 18% of the respondents are employed professionals, shown in the red section.

45
4.5

HOW FREQUENTLY DO YOU USE SWIGGY FOR ORDERING FOOD


OR GROCERIES?

OPTIONS NO.OF.RESPONDENTS PERCENTAGE


Daily 1 2%
2-3 times a week 12 24%
Once a week 19 38%
Rarely 18 36%

INTERPRETATION:
This pie chart represents how frequently 50 respondents use Swiggy for ordering
food or groceries.
• Only a small percentage use Swiggy daily, as shown by the small blue section.
• 24% of respondents use Swiggy 2-3 times a week, represented by the red
section.
• 38% of respondents order once a week, indicated by the largest orange section.
• 36% of respondents rarely use Swiggy, shown by the green section.

46
4.6

WHICH SWIGGY SERVICE DO YOU USE THE MOST?

OPTIONS NO.OF.RESPONDENTS PERCENTAGE


Swiggy Food Delivery 37 74%
Instamart (Groceries) 9 18%
Swiggy Genie (Parcel 2 4%
Delivery)
Swiggy Access (Cloud 2 4%
Kitchens)

INTERPRETAION:
The pie chart illustrates the most frequently used Swiggy services among 50
respondents. A dominant 74% of users primarily utilize Swiggy Food Delivery,
highlighting its popularity as the core service. Instamart (Groceries) follows at
18%, indicating a growing reliance on Swiggy for grocery shopping. Swiggy
Genie (Parcel Delivery) and Swiggy Access (Cloud Kitchens) have the least
usage, suggesting that these services are either less known or have a limited user
base. The results emphasize that while Swiggy is widely recognized for food
delivery, its other services have yet to gain similar traction among consumers

47
4.7

WHAT INFLUENCES YOUR DECISION TO ORDER FROM SWIGGY?

OPTIONS NO.OF.RESPONDENTS PERCENTAGE


Discounts and Offers 12 24.5
Fast Delivery 12 24.5
Wide variety of 15 30.6
Restaurants and Stores
User-friendly App and 10 20.4
Website

INTERPRETATION:
The pie chart illustrates the key factors influencing users' decisions to order from
Swiggy, based on 49 responses. The wide variety of restaurants and stores is the
most significant factor, influencing 30.6% of users, highlighting the importance
of diverse food and grocery options. Discounts and offers and fast delivery are
equally important, each influencing 24.5% of respondents, indicating that
affordability and speed play a crucial role in customer preferences. Lastly, the
user-friendly app and website impact 20.4% of users, showing that ease of
navigation and convenience are also important

48
4.8
WHICH PAYMENT METHOD DO YOU PREFER FOR SWIGGY
ORDERS?

OPTIONS NO.OF.RESPONDENTS PERCENTAGE


UPI (Google Pay, 29 58
PhonePe, Paytm)
Credit/Debit Card 4 8
Cash on Delivery 17 34

INTERPRETATION:
The pie chart represents the preferred payment methods for Swiggy orders among
50 respondents. The majority, 58%, prefer UPI (Google Pay, PhonePe, Paytm),
indicating a strong inclination toward digital and hassle-free transactions. Cash on
Delivery (COD) is chosen by 34% of users, showing that a significant portion still
prefers cash payments over online methods. Meanwhile, only 8% of respondents
use Credit/Debit Cards, suggesting that card payments are not as popular
compared to UPI or COD.

49
4.9
ARE YOU SATISFIED WITH SWIGGY’S REAL-TIME TRACKING AND
DELIVERY UPDATES?

OPTIONS NO.OF.RESPONDENTS PERCENTAGE


Highly Satisfied 17 34%
Satisfied 17 34%
Neutral 13 26%
Dissatisfied 3 6%

INTERPRETATION:

The pie chart represents user satisfaction with Swiggy's real-time tracking and
delivery updates based on 50 responses. 34% of respondents are highly satisfied,
indicating that a significant portion of users finds the tracking and updates to be
effective. Another 34% are satisfied, suggesting that while they are content with
the service, they are not overwhelmingly impressed. Additionally, 26% have a
neutral opinion, meaning they do not have strong positive or negative feelings
about the tracking and updates.

50
4.10

WHAT CHALLENGES DO YOU FACE WHILE USING SWIGGY?

OPTIONS NO.OF.RESPONDENTS PERCENTAGE


High delivery charges 29 58%
Late deliveries 12 24%
App glitches/technical 5 10%
issues
Limited availability of 4 8%
restaurants/products

INTERPRETATION:
This pie chart represents the challenges users face while using Swiggy, based on 50 responses.
• 58% of users reported high delivery charges as their primary challenge. This is the most
significant concern, indicating that many customers find Swiggy’s delivery fees too
expensive.
• 24% of users face late deliveries, showing that nearly a quarter of the respondents
experience delays in receiving their orders.
• 10% of users encounter app glitches or technical issues, suggesting that occasional
technical problems may impact the user experience

51
4.11
WHAT ADDITIONAL FEATURES WOULD YOU LIKE TO SEE ON
SWIGGY?

OPTIONS NO.OF.RESPONDENTS PERCENTAGES


More personalized 13 26.5%
recommendations
More payment options 7 14.3%
Faster grocery delivery 14 28.6%
Better loyalty rewards 15 30.6%

INTERPRETATION:

This pie chart represents the additional features users would like to see on Swiggy, based on 49
responses. The majority, 30.6% of users, want better loyalty rewards, indicating a strong
preference for improved discounts, offers, and cashback incentives. 28.6% of users prioritize
faster grocery delivery, highlighting the importance of Swiggy Instamart’s speed in customer
satisfaction. Additionally, 26.5% of users request more personalized recommendations,
suggesting that Swiggy could enhance its AI algorithms to provide better food and restaurant
suggestions based on user preferences. A smaller but notable 14.3% of users seek more payment
options, reflecting a demand for increased flexibility in transaction methods. These insights
indicate key areas where Swiggy can improve its services to enhance user experience and
engagement.

52
4.12

WOULD YOU RECOMMEND SWIGGY TO OTHERS?

OPTIONS NO.OF.RESPONDENTS PERCENTAGE


Yes, always 36 72%
No 6 12%
Maybe 8 16%

INTERPRETATION:

The pie chart represents users' willingness to recommend Swiggy to others, based
on 50 responses. A majority of 72% responded "Yes, always", indicating a strong
level of customer satisfaction and trust in Swiggy’s services. Meanwhile, 16% of
users chose "Maybe", suggesting that while they recognize some benefits of
Swiggy, they may have reservations about certain aspects of the service. Lastly,
12% of users selected "No", reflecting a small but notable percentage of
dissatisfied customers who would not recommend Swiggy. Overall, the data
highlights a predominantly positive perception of Swiggy, with some users
expressing uncertainty or dissatisfaction.

53
4.13 ARE YOU SATISFIED WITH YOUR OVERALL EXPERIENCE OF USING
SWIGGY FOR FOOD DELIVERY AND ONLINE GROCERY SHOPPING?

OPTIONS NO.OF.RESPONDENTS PERCENTAGE


Highly Satisfied 16 32%
Satisfied 20 40%
Neutral 10 20%
Dissatisfied 1 2%
Highly Dissatisfied 3 6%

INTERPRETATION:
This pie chart represents users' overall satisfaction with Swiggy for food delivery
and online grocery shopping, based on 50 responses. A significant 32% of users
are highly satisfied, reflecting a great experience with Swiggy, while 40% are
satisfied, bringing the total positive experience to 72%. Around 20% of users
remain neutral, showing no strong positive or negative opinions. A smaller 6% of
users are dissatisfied, indicating minor concerns with Swiggy’s services. Only 2%
of users are highly dissatisfied, suggesting that very few had an extremely
negative experience. The overall results indicate that Swiggy has a high
satisfaction rate, with most users having a positive perception of its services.
However, addressing concerns from the dissatisfied group can further enhance
customer experience and loyalty

54
CHAPTER 5

5.1

RESULTS OF THE STUDY

The study on Swiggy’s digital marketing and user experience highlights key
insights into customer satisfaction, challenges, and desired improvements. High
delivery charges (58%) emerged as the biggest challenge faced by users, followed
by late deliveries (24%). While 72% of users would recommend Swiggy, only
32% are highly satisfied with its services. Users demand better loyalty rewards
(30.6%) and faster grocery delivery (28.6%) as additional features. Despite some
challenges, Swiggy enjoys a strong customer base, but addressing pricing, service
speed, and app improvements can further enhance user satisfaction.

1. Challenges: High delivery charges (58%) and late deliveries (24%) are the
most common user complaints.

2. Satisfaction & Recommendation: While 72% of users would recommend


Swiggy, only 32% are highly satisfied with its service.

3. Desired Features: Users want better loyalty rewards (30.6%) and faster
grocery delivery (28.6%) as priority improvements.

4. Opportunities for Growth: Addressing delivery charges, improving service


speed, and enhancing loyalty programs can boost user satisfaction and
engagement.

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5.2

FINDINGS

• Swiggy’s AI-driven digital marketing strategies play a crucial role in


customer engagement, offering personalized recommendations based on
user behavior.
• The platform’s large active user base (25M+ monthly users) provides a
strong foundation for targeted marketing and advertising campaigns.
• Social media marketing, influencer collaborations, and geo-targeted ads
have significantly increased brand awareness and user acquisition.
• Swiggy’s return on ad spend (ROAS) of 4.2X highlights the efficiency of
its digital advertising, ensuring high revenue generation for every rupee
spent.
• The subscription model (Swiggy One) enhances customer retention by
offering exclusive benefits like free deliveries and additional discounts.
• Swiggy’s personalized push notifications and email marketing campaigns
contribute to a high customer retention rate of 65%, ensuring repeat orders.
• Data analytics and predictive marketing enable Swiggy to optimize
promotional campaigns, offering targeted discounts to maximize
conversions.
• The cart abandonment rate of 25% indicates that Swiggy needs to further
optimize its checkout experience and reduce transaction drop-offs.

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5.3

SUGGESTIONS FROM THE RESEARCH

• Swiggy should enhance AI-driven personalization to improve targeted


marketing and increase customer engagement.
• Optimizing digital ad placement and frequency will prevent notification
fatigue and improve campaign effectiveness.
• Strengthening retargeting strategies can help reduce cart abandonment
and improve conversion rates.
• Expanding Swiggy One and loyalty programs will encourage long-term
customer retention and repeat purchases.
• Improving payment gateway efficiency and offering personalized
payment-based promotions can enhance transaction success rates.
• Addressing time and convenience risks by ensuring smooth coupon
redemption, app navigation, and checkout experience is crucial.
• Increasing influencer marketing collaborations and social media
engagement will boost Swiggy’s brand visibility and organic reach.
• Implementing hyperlocal marketing strategies will enhance geo-
targeted promotions and improve conversion rates in different locations.
• Strengthening customer support for marketing-related concerns will
improve user trust and brand loyalty.
• Optimizing return on ad spend (ROAS) and smart budget allocation will
help Swiggy focus on performance-driven marketing strategies.
• Expanding gamification techniques, referral programs, and streak
rewards can increase app engagement and repeat orders.
• Promoting sustainable and ethical marketing campaigns will enhance
Swiggy’s brand reputation and appeal to eco-conscious consumers.

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5.4

CONCLUSION

This study is related to digital marketing on Swiggy products, focusing on how


the platform effectively utilizes AI-driven marketing, personalized promotions,
and multi-channel advertising to attract and retain customers. Swiggy has
successfully implemented data-driven strategies, targeted ad campaigns, and
influencer collaborations to enhance its brand visibility and customer engagement.
The platform’s subscription model, Swiggy One, hyperlocal marketing, and
predictive analytics have played a crucial role in improving user experience and
increasing repeat orders. However, the study also highlights challenges such as
high marketing expenditures, reliance on discounts, delivery inefficiencies, and
customer retention risks, which need to be addressed for long-term sustainability.
To strengthen its position as a market leader, Swiggy should focus on refining ad
placement, optimizing loyalty programs, enhancing AI-powered automation, and
improving logistics efficiency. By continuously evolving its digital marketing
approach, customer engagement strategies, and operational excellence, Swiggy
can maintain its dominance in the food-tech industry and ensure long-term growth
and profitability.

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BIBLIOGRAPHY

BOOKS

• Digital Marketing Excellence – D. Chaffey, & P. Smith


• Marketing 5.0 - P. Kotler, H. Kartajaya , & I. Setiawan
• Digital Marketing and Social Media – M. T. P. M. B Tiago, & J. M. C.
• Digital Marketing - Ryan, D.
• Advances in Social Media Research – K. K. Kapoor, K. Tamilmani, N.P.
RanaPatil, Y.K. Dwivedi & S. Nerur.

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WEBLIOGRAPHY

https://scholar.google.com/

https://www.google.com/

https://www.yahoo.com/?guccounter=1

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ANNEXURE

1. Name:

2. Age:
o A. 18-25
o B. 26-32
o C. 32-40
o D. Above 40
3. Gender:
o A. Male
o B. Female

4. Occupation:
o A. Self-employed
o B. Employed Professional
o C. Student

5. How frequently do you use Swiggy for ordering food or groceries?


o A. Daily
o B. 2-3 times a week
o C. Once a week
o D. Rarely
6. Which Swiggy service do you use the most?
o A. Swiggy Food Delivery
o B. Instamart (Groceries)
o C. Swiggy Genie (Parcel Delivery)
o D. Swiggy Access (Cloud Kitchens)

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7. What influences your decision to order from Swiggy?
o A. Discounts and Offers
o B. Fast Delivery
o C. Wide variety of Restaurants and Stores
o D. User-friendly App and Website

8. Which payment method do you prefer for Swiggy orders?


o A. UPI (Google Pay, PhonePe, Paytm)
o B. Credit/Debit Card
o C. Net Banking
o D. Cash on Delivery

9. Are you satisfied with Swiggy’s real-time tracking and delivery


updates?
o A. Highly Satisfied
o B. Satisfied
o C. Neutral
o D. Dissatisfied

10.What challenges do you face while using Swiggy?


• A. High delivery charges
• B. Late deliveries
• C. App glitches/technical issues
• D. Limited availability of restaurants/products

11.What additional features would you like to see on Swiggy?


• A. More personalized recommendations
• B. More payment options
• C. Faster grocery delivery

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• D. Better loyalty rewards

12.Would you recommend Swiggy to others?


• A. Yes, always
• B. Yes, sometimes
• C. Maybe
• D. No

13.Are you satisfied with your overall experience of using Swiggy for food
delivery and online grocery shopping?

• A. Highly Satisfied

• B. Satisfied

• C. Neutral

• D. Dissatisfied

• E. Highly Dissatisfied

Link:

https://forms.gle/PSw1ujQ31TWAXz8X8

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