GALGOTIAS UNIVERSITY

BUSINESS FUNCTION OF

ZOMATO

SEMESTER- 5

SUBMITTED TO SUBMITTED BY
MR.SWATI
M/S SHIV UPVEJA
KUMAR SHARMA DHEERAJ RAWAL
17GSOB101105
U KUMAR
ZOMATO
Zomato is an online discovery guide for restaurants, bars, pubs and clubs
and for dine-outs. The registered users are required to post reviews and
rate (on a scale of 1 - 5 stars) the restaurants on the basis of their choice,
visit and experi i Internet, stag entry, live performances and outdoor
seating or whether non-vegetarian food and alcohol are served or not.
Zomato also provides information related to cuisines served, operation
timings, approximate cost of a meal for two, credit cards accepted or not.

A. History of Brand Zomato

Zomato started as the website Foodiebay.com, by Deepinder
Goyal, a post-graduate from IIT Delhi. Foodiebay officially started in
July 2008 with a list of 1,200 restaurants in the Delhi NCR region.
This database expanded to 2,000 restaurants by end 2008.
Expanded its reach to Kolkata, Mumbai, Bangalore and Pune within
the next six months That is when Info Edge (India), the parent
company of the Naukri.com group, invested 4.7 crore (US$1 million)
in the business. In November 2010, Foodiebay.com was renamed
Zomato.com. The brand name was changed due to a possible move
outside of the food vertical and also to avoid a possible conflict with
eBay, because the earlier brand name Foodiebay contained ‘ebay’
in it. (Source: www.wikipedia.com) B. Geographical Coverage By
2011, Zomato’s coverage reached Chennai and Hyderabad as well.
In 2011, Zomato also launched applications for iOS, Android,
Windows Phone and BlackBerry devices. In September 2012,
Zomato expanded to its first overseas location by launching its
services in Dubai, UAE. This was followed by quick expansion into
Sri Lanka, Qatar, the United Kingdom, The Philippines, South
Africa, New Zealand, and more recently to Brazil, Turkey and
Indonesia.
II. OBJECTIVES
The objectives of this research paper are:
 To study and understand the branding and marketing strategy of Zomato
 To analyze the current positioning of the brand as per consumer
perception
 To suggest scope of improvement for the brand as per consumer
responses
III. RESEARCH METHODOLOGY The paper is based on primary and
secondary research. Primary data was collected from respondents and
food bloggers through a set of questionnaires prepared to understand the
perception of the brand ‘Zomato’. Secondary data was collected from
consumer food blogs, newspaper research articles & social media pages
of Zomato.
IV. OVERVIEW A. Brand Elements Brand Name: Zomato named after
Foodiebay to avoid conflicts with eBay. It is an arbitrary brand name (no
relationship with the company/product) Brand Tagline: “Discover more
places to eat around you” Brand Logo: Simple and classy B. Positioning:
The brand/website is very popular and common these days among the
youth especially, since they want to experiment new places to dine-out or
enjoy with their friends and family.
The website helps in defining the restaurant/pub/club on the basis of
presence or absence of air conditioning, smoking area.
ACQUISITIONS OF ZOMATO:
Zomato has acquired 12 startups globally.
In July 2014, Zomato made its first acquisition by buying Menu-mania for
an undisclosed sum. The company pursued other acquisitions such as
lunchtime.cz and obedovat.sk for a combined US$3.25 million. In
September 2014, Zomato acquired Poland-based restaurant search
service Gastronauci for an undisclosed sum. Three months later, it
acquired Italian restaurant search service Cibando.
Zomato acquired Seattle-based food portal Urbanspoon for an estimated
$60 million in 2015. Other acquisitions of 2015 include Mekanist in an
all-cash deal, the Delhi based startup MapleGraph that built MaplePOS
(renamed as Zomato Base, and NexTable, a US-based table reservation
and restaurant management platform.)
In 2016, the company acquired Sparse Labs, a logistics technology
startup and the food delivery startup, RunnEr, in 2017.
In September 2018, Zomato acquired Bengaluru-based food e-
marketplace TongueStun Food for about $18 million in a cash and stock
deal. The same year, in December 2018, Zomato acquired Lucknow-
based startup TechEagle Innovations, that works exclusively on drones,
for an undisclosed amount. Zomato said this acquisition will help them
pave the way towards drone-based food delivery in India, creating a
technology that will power hub to hub delivery network
ZOMATO FULL STRATEGY :

Pricing Strategy Pricing:

The company earns revenue from advertising by listed restaurants. Ad

rates vary between Rs. 5,000 and Rs. 3 lakh a month, depending upon
location, cuisine and other factors. Advertising Options:
1. Headliner Strip
2. Hover Advertisement
3. Banner Advertisement
4. Enhance your business page Brand Zomato
Attractiveness as an Advertising Avenue: 15 million people visit Zomato
every month across Brazil, India, Indonesia, New Zealand, Philippines,
Qatar, South Africa, Sri Lanka, Turkey, UAE and The United Kingdom.
Foodies visit Zomato to discover more places to eat around them -
Zomato can help them discover your business. Zomato is only built for
food/restaurant discovery - Therefore, it has a very targeted audience.
Most of Zomato users buy a meal within an hour of visiting Zomato.
Zomato users spend a lot on Food - Most of Zomato users are working
professionals with high disposable incomes. And they eat out more than
thrice in a week.
Advertising Options: 1. Headliner Strip 2. Hover Advertisement 3.
Banner Advertisement 4. Enhance your business page Brand Zomato:
Attractiveness as an Advertising Avenue: 15 million people visit Zomato
every month across Brazil, India, Indonesia, New Zealand, Philippines,
Qatar, South Africa, Sri Lanka, Turkey, UAE and The United Kingdom.
Foodies visit Zomato to discover more places to eat around them -
Zomato can help them discover your business. Zomato is only built for
food/restaurant discovery - Therefore, it has a very targeted audience.
Most of Zomato users buy a meal within an hour of visiting Zomato.
Zomato users spend a lot on Food - Most of Zomato users are working
professionals with high disposable incomes. And they eat out more than
thrice in a week. Hyperlocal advertising. Advertise only to the customers
who can reach you and spend with you - Zomato defines hyper
 Majority of respondents used Zomato for checking reviews
 Respondents also used Zomato to go through the food menu of
various restaurants
 Validity of reviews was the most preferred attribute for the respondents
 This was closely followed by the Recommendation on cuisines
 53% of the respondents could correctly identify the Zomato logo
 Zomato was liked and chosen mainly because of the reviews feature
 The authenticity of the reviews made the consumers chose the brand
 28% of users use Zomato at least once a month
 17% use it once a week
 This shows most users are frequent, and this ensures better returns for
the advertiser International Journal of Engineering Research &
Technology (IJERT) http://www.ijert.org ISSN: 2278-0181
IJERTV6IS060356 (This work is licensed under a Creative Commons
Attribution 4.0 International License.) Published by : www.ijert.org Vol. 6
Issue 06, June - 2017 715
 Consumers are very loyal to the brand Zomato
 They are not willing to switch to any other similar site like Zomato in
the future
Social Media Strategy :
Zomato aims to be the place where Foodie’s hangout. In fact, it had
rechristened itself as a Food Network. It is leveraging 3 primary
platforms to power its own Food Network: Facebook, Twitter and
Pinterest. Their social media content strategy revolves around food and
restaurants but the efforts look a little half-hearted. Facebook Though
Zomato has a 1288k strong Facebook community, it is seriously lacking
in engagement The page doesn’t have regular updates going out. Only a
handful go out each month. But whatever content they share, they do a
stellar job at it.Twitter is where Zomato shines.
Twitter is primarily being used as a conversation platform and the brand
is doing an excellent job at engaging in conversation with the people.
Because Twitter allows for Realtime conversation, it is used daily to
respond to queries from people asking for recommendations. They also
periodically run contests on Twitter, Foodie Friday being one that has
taken off and seen a great response. The Yummy Yatra happened
recently and was covered live almost entirely on Twitter. Twitter is less
about updates, more about conversation/engagement. Facebook is a
little static in comparison, and is more a platform for updates from
Zomato. For example, our new TV commercial, posts fresh off our official
blog, or photo albums from events conducted by us.
Blogs The Zomato blog is the company’s mouthpiece where it shares all
the latest updates about the brand and its initiatives. Though the posts
are written very well, there is no regularity here as well.
Pinterest A visual treat and a foodie’s true delight, the content shared
on their Pinterest channel is simply amazing! They should work hard on
promoting it. Comparison of Brand Zomato with Competitors With the
might of Network 18 behind it, Burrp.com still can’t give a tough fight to
Zomato
ANALYSIS OF CONSUMER
RESPONSES:
 Zomato has an excellent Brand Equity o Most consumers are aware of
the brand Zomato o Most consumers can easily recall the brand Zomato
o Consumers can recall the brand logo o Consumers have a great
degree of loyalty for Zomato
 Sources of equity o It caters to the most relevant needs of the
customer, and fulfilled them better than the competitors o It gives ROI to
the advertiser/ restaurant owner o It is the leader in the segment which it
serves (food)
REVENUE OF ZOMATO
If you look deeper, they are building strong roots to g et a strong hold
of the restaurant business, not only in India but also all over the
world but From the outside, Zomato may seem like a simple company
with a simple product.. Yelp made revenues of $245 Million and
Zomato was just at 3% of this amount. At the rate they are spreading
and making a strong eco system, At one point like this , zomato will
take a huge piece of Yelp’s business.

CONTROVEECC
CONTROVERSEY - ZOMATO

In December,2018
Zomato delivery man was sacked by the restaurant aggregator after he
was caught hogging on a customer's order and the Internet is unhappy
about it.

The two-and-half minute video first surfaced on Facebook, and showed

the man wearing a red Zomato t-shirt pulling out a food package from his
bag, taking a couple of bites and resealing it before leaving for his
delivery location.
Taking cognizance of this, Zomato launched an investigation and
affirmed the authenticity of the video, the company revealed that the
video was shot in Madurai and the delivery man was promptly sacked
from his job.
ZOMATO INTRODUCE TEMPER PROOF PACKAGING FOR FOOD
ORDERS:-
Zomato has introduced tamper proof packaging for its food deliveries.
The packaging will be 100% tamper proof — once the food is sealed, it
can only be opened by cutting off the top-end strip.
The safety seals are made from a single material polymer and are
completely reusable and recyclable. The company would also launch
biodegradable versions of packaging.
In November 2017
when its new outdoor campaign was attacked on social media platforms
for being offensive and sexist. The controversial ad, written by Zomato’s art
director Akshar Pathak, has bold white letters MC.BC. (mac n’ cheese,
butter chicken) written against a bright red background. The ad, with letters
that are short for Hindi language expletives, started going viral on Twitter
and Facebook with people calling it sexist, cheap and crass.

Zomato to withdraw ‘offensive’ outdoor ad after social

media backlash.
THANKYOU