Jayshree BB
Jayshree BB
Jayshree BB
Founded in 2008, Zomato is a leading platform for restaurant search & discovery,
online food ordering, and restaurant table reservations. The company was founded by
DeepinderGoyal and Pankaj Chaddah and is headquartered in Gurgaon (officially
Gurugram). Zomato has been a pioneer in food ordering and restaurant discovery in
India, which has benefitted both restaurants and customers.
Featuring a robust review system, Zomato allows foodies to find the best meals and
restaurants in their neighborhood. A notable aspect about Zomato is that it is among
the few companies that have gone global after starting operations in India.
Zomato currently features more than 1 million restaurants globally on its platform
HISTORY
The story of Zomato started when the founders noticed that people did not even knew
the restaurants that were functional in their neighborhood. The founders thought that
it would be a great idea to list all the restaurants on the web and provide their menus
as well. This idea eventually led to the launch of FoodieBay in 2008. The startup
initially catered to the Delhi-NCR region and after the service gained popularity, the
founders decided to implement the idea across the country.
The founders decided to go for a rebranding exercise, which led to the transformation
of FoodieBay into Zomato in 2010. Since then, Zomato has expanded operations to
several new locations in the country. It has also launched international operations and
now covers more than 10,000 locations across 24 countries globally. Millions of
people across the globe use Zomato every day to find the best places to dine in their
neighborhood.
FUNDING
Zomato has received investments worth $443.8 million through 10 rounds of funding.
Top investors include Ant Financial, Sequoia Capital, Temasek Holdings, Info Edge,
and Vy Capital.
ACQUISITIONS
Zomato has acquired several companies over the years; with the most notable being
the acquisition of US based Urbanspoon in 2015. Other acquisitions made by Zomato
include Obedovat, Menu Mania, Lunchtime, MapleGraph, Sparse Labs, Gastronauci,
NexTable, Cibando, Mekanist, and Runnr.
COMPETITION
Zomato competes with other restaurant discovery and food delivery platforms such as
Swiggy, Dineout, Grubhub, Yelp, DoorDash, JustDial, etc.
ABOUT THE FOUNDER
Zomato was founded by DeepinderGoyal and Pankaj Chaddah, both of whom are
from IIT, Delhi. DeepinderGoyal currently serves as the Chief Executive Officer
(CEO) at Zomato. Prior to launching Zomato, he used to work at Bain & Company as
a Senior Associate Consultant. Pankaj Chaddah is the co-founder and prior to
launching Zomato, he had worked at Bain & Company as a Senior Analyst and
Associate Consultant.
OBJECTIVES
• TO Study the Awareness level of consumer about Zomato online food .
• TO Study the effect of Zomato among the consumer .
• TO understand the Benefits of Zomato among the consumer .
• TO understand the position and negative effects of Zomato among the consumer .
• TO know the satisfaction level of consumer while ordering Zomato online food .
BUSINESS MODEL
• Restaurants pay Zomato for being featured .
Users view restaurant .
More customer footfalls for the restaurant .
.
PAYMENT MODEL
• Zomato has introduced online payment for ordering food in select restaurant in India
. The latest version of the iOS and Android applications allow users to pay for their
orders through debit card , credit card and net banking.
• In addition , it has partnered with pay Pal to enable online payments.
• Users can either scan their card details or enable online payment.
• The company also introduced Zomato credit where can get referral points and
refunds.
MARKETING STRATEGY OF ZOMATO
Zomato is restaurant search and discovery and deliver business and was founded by
DeepinderGoyal and Pankaj Chaddah in the year 2008. Zomato currently operates in
more than 24 countries. Initially, it started under the name Foodiebay which was later
changed into Zomato in the year 2010.
Zomato has also expanded overseas to Sri Lanka, Qatar, Turkey, Brazil, Indonesia,
etc. al Zomato so claimed that it turned profitable in all 24 countries it operates in. In
February 2017, Zomato introduced its zero commission model in a partner restaurant.
SmartTech magazine announced that Zomato was among the top 25 most promising
internet companies and has been getting regular investments from Info Edge India.
MISSION
Our mission is to ensure nobody has a bad meal .
VISION
We want to be the ' Google ' of food. Our vision is to be the global platform when
someone is looking for food locally.
TAGLINE
Discover great places to eat around you.
SEGMENTATION TARGETING AND POSITIONING IN THE
MARKETING STRATEGY ZOMATO
SEGMENTATION
Under the Demographic segmentation strategy,Zomato targets the age 18-35.people
who want to dine out and want to research the restaurants they wish to visit. Zomato
has found a larger target segment in the working professionals who want to dine out
and also want to get food delivered at their doorstep.
Zomato has also entered the experiential events segment and had launched the multi-
city food and entertainment carnival called Zealand. Zomato believes that there is an
experience that is needed to be built around food and Zomato has played a significant
role in making that happen.
It intends to launch new product and business lines centered on food in both dine out
and delivery segment.
TARGET
The main target customer of Zomato is the youth who are between the ages 18-35 and
people who often want to eat out with their friends and colleagues. It targets those
customers who often refer to ratings and reviews and want to take a decision if the
place is good.
It is those customers who are seeking to have a good time with their friends and want
to be assured that the place is going to worth the price. It also targets the foodie
who want to experience food and share it with people.
These people also want to know where they get the best foods in town and visit those
restaurants. The consumption target is all the online opinion seekers of restaurants.
POSITIONING
Zomato has positioned itself as a platform that brings restaurants, suppliers,
consumers, food suppliers, and logistics partners together. It aims to create a world
where detailed food consumption and taste patterns across the globe and share that
intelligently with the suppliers.
Zomato is an Indian youth’s go-to-app when it comes to dining out. It has become a
mandate now to check reviews and recommendations before visiting a restaurant and
Zomato is positioned as the app they should look for when it comes to looking for
authentic reviews.
With the launch of Zomato Gold it has made Dining out pocket – Friendly for its
customers.
DISTRIBUTION IN THE MARKETING STRATEGY OF
ZOMATO
Zomato revealed that about 40% of the total sales were referral driven. According to
Zomato, almost 30% of the subscribers are coming through referrals and more than $2
Million orders have been made using Z coins. Zomato cross-sells its several offerings
to a customer which has brought huge success as Zomato is able to capture the
customers are any phase.
According to Zomato, customer acquisition cost is very low. Zomato claims that of
the 1.4 million listings it gets, 150,000 are from India and sees 22 million users come
on board every month. Zomato Gold is another program that is referral driven, where
on sharing their referral code, a customer gets a month of the Zomato Gold services
extended.
FOCUS ON TECHNOLOGY
The biggest advantage Zomato has over its customers is its beautifully designed User
interface. It is attractive and very easy to browse and this has helped create a pint
of Differentiation from its competitors.
The speed with which the website opens and the mobile application is also extremely
fast and extremely easy to use, even for a novice. Zomato gives a lot of focus and
effort in creating a convincing UI for its customers. Zomato has amazingly used data
science and has been able to crave its way for success.
Zomato has been able to obtain a competitive edge because it is extremely data-
driven. It has been able to drive operational and commercial efficiencies like delivery
time prediction, logistics optimization, ad delivery, and supply prioritization.
Zomato has been able to obtain a competitive edge because it is extremely data-
driven. It has been able to drive operational and commercial efficiencies like delivery
time prediction, logistics optimization, ad delivery, and supply prioritization.
Zomato aims to implement the concept of cloud kitchen, which will help a restaurant
to expand its presence without incurring any fixed cost. The focus on
Zomatotechnology will help it stay ahead of the competition.
PROMOTION STRATEGY
Zomato is one of the few companies to have been successful in the content market
and uses images to promote its products. Zomato ensures that its contents stay fresh
and has invested vastly on SME’s and SEOs.
Another important role is played by social media and it has helped Zomato become
more popular among its customers. All the promotions made by Zomato proves that
the company chooses to stick to the niche and understands exactly who it is catering
to.
Zomato’sZomaland festival turned to be a great strategy for Zomato to promote its
services and it was able to turn food into a carnival with music, dance, and stand-up
comedies. Zomato uses the number of strategies like discounts and promo codes to
make more customers use the platform .
Zomato is one of the most omnipresent brands on the Interne.
PRODUCT
Delivery, Table Reservations and management, Whitelabel Apps and online ordering
services. Whitelabel is the product or service produced by a company The product
strategy and mix Zomato marketing strategy can be explained follows:
Zomato is an app / website which shows restaurants and food menu to its users.
Zomato provides the user with the restaurant details, their images, rates, menus and
even portal for customers’ feedback where people can voice their opinions regarding
the experience, taste at a particular restaurant. This application helps the restaurants
which do not have their own websites. It is a good way to make their restaurant
visible online without making a site for their own. The main services in its marketing
mix include Point of Sale systems, Restaurant Search and (main company), and it is
used by another company to rebrand it as if it is made them. There is a discontinued
product ‘Citibank-Zomato Restaurant Guide’ which was a print version of the
website.
Image: company website
PRICE
Below is the pricing strategy in Zomato Marketing strategy :
Zomato does not charge for restaurants to put their details on their application or
website. The restaurant advertising which Zomato does on their site or application is
the major source of their revenue. Restaurant advertising includes banners ads for
restaurants which gives them maximum visibility as soon as a person logs into the app
or the site. Event based advertising when restaurant hold an event and use Zomato as
a medium to advertise their event. There is a commission set on the ticket sales
through Zomato. They also provide consulting services to restaurants to where should
the restaurant chains open their next outlet. Zomato uses various analytical tools to
analyze where the demand lies and help them with the solution. The percentage
revenue distribution can be summarized as under; restaurant advertising- 85%, event
advertising- 5%, event ticket sales- 15% of the revenue.
PLACE
Following is the Distribution strategy of Zomato :
Zomato, an online service is available on Windows platform, Android and iOS
platform. It is available in 25 countries which include India, Australia, USA, Chile,
Malaysia, United Arab Emirates, Portugal, South Africa and many more. The UI is
user friendly and has nine language options viz. English, Italian, Spanish, Portuguese,
Turkish, Slovak, Indonesian, Polish and Italian.
Also they are active on various social platforms like Facebook, Twitter, Pinterest and
Instagram which are used to engage with customers.
PROMOTION
The promotion and Advertising strategy in the Zomato marketing strategy as follows:
Zomato is known for its content marketing strategy. In content marketing they aim to
advertise extensively via images. These images require a glimpse, have an impact on
audience and offer pure entertainment. The content is always fresh with old sayings,
messages delivered in a unique way in line with the service of Zomato. The social
media is an important channel to market their services. Their posts, messages are
always some simple industry jargons that is targeted at different audience segments.
Along with posts and messages, Zomato has collaborations with Paytm, Uber, Food
Bloggers which display Zomato as an option for any food related queries customers
search on these applications.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps
marketing mix of Zomato.
PHYSICAL EVIDENCE
Zomato being a service offers no product of its own. It has no particular physical
presence, except for the delivery system started by Zomato in 2015. The delivery
system consists of delivery men delivering the food placed by an order from Zomato
website or application. There are selected restaurants which offer delivery services
through Zomato. Basically, Zomato acts as a third party system for the deal between
these restaurants and the buyer.
PEOPLE
Majority of the companies rely on its workforce to offer their product or services.
This workforce constitutes the people segment in services. Zomato comprises a strong
team of around 3000 people working towards best services to people. They have
adopted leaner operations systems where the market demand is less. This led to the
maximum utilization of workforce. Also they are keen in suggesting best practices as
a part of their consultancy business to restaurants, employee retention methods and
maximizing their potential.
PROCESS
In food delivery service the key part lies in the fact that food should be hot and fresh
as and when it reaches customers. All the players in the food delivery space make this
as a differentiating factor from its competitors. For example Foodpanda promises
delivery within 45 minutes from the time an order is placed. In Zomato one needs to
sign in with our registered phone number and email address. The location is detected
and one can browse the menu and place the order. Payment can be made wither by
cash or online modes. The restaurant confirms the order and dispatches as soon as it is
made. Zomato asks for the feedback after the service provided. Thus an entire process
is made to be convenient to the user and the user can have an hassle free experience.
Hence this is the marketing mix of Zomato.
SWOT ANALYSIS OF ZOMATO
1.STRENGTH IN THE SWOT ANALYSIS OF ZOMATO
• FIRST MOVER ADVANTAGE:
One of the best competitive advantages of Zomato is that it is the first mover in many
of the nations where it is establishing itself. Directories and other forms of restaurant
ratings might exist. But as an app Zomato is excellent and many countries (like India)
have loved the usability of the Zomato app
• EVERGREEN INDUSTRY:
The restaurant industry is an evergreen industry. Sure, there may be recessions and
other downturns which might affect the industry. But overall, this industry is going to
stick around at all times and is only going to grow with rising disposable income.
• FAST EXPANSION :
It is appreciative that Zomato has expanded so fast. It is already in 24 countries and is
expanding year on year.
• NUMBER OF USERS :
Zomato has a huge number of users using their app. At the same time, the site also has
90 million visitors a month approximately. With so many users following the app and
site, there are more reviews and hence more chances to find better restaurants.
• FOCUSED APPROACH :
The brand has a very focused approach and has always tried to bring the most of out
of its unique offering. It is well connected with restaurants and regularly takes
feedback from customers as well as restaurants. This focused approach has also
helped the brand image the reputation of the firm.
• MULTIPLE ACQUISITION :
Zomato has acquired multiple companies most of which are software or
technology related.
• BRAND EQUITY :
Zomato is valued at $1.4 billion within 7 years of inception. That says volumes about
the popularity and love for the brand.
• FANTASTIC MARKETING :
You can find Zomato working for its own marketing offline as well as online. Its print
ads are hilarious and make an immediate connect with the audience. It is strong on
Social media marketing and uses a combination of ATL and BTL strategies to attract
and retain customers.
• MORE ACQUISITION :
There are and were many small players in this space. Zomato can acquire several of
its competitors and at the same time, it has to keep an eye on the tech industry and
acquire any tech innovation it can get its hands on to keep on rising.
• CLOUD RESTAURANT :
Zomato is coming up with the concept of Cloud restaurants wherein restaurants will
not have to get a physical space to actually sell their food product. Instead, they can
sell from Zomato.
• CREATING A COMMUNITY :
Zomato does have a huge following but the users do not interact with each other.
Creating a forum and a community out of the users already following Zomato can be
a huge benefit for the brand.
2. ECONOMIC :
Between the periods of 2011 and 2014, Zomato achieved an overwhelming
growth by 1399%. This comes as a result of its tremendous achievements in
22 countries, thus, contributing effectively to economies of the countries.
Besides, there is a potential rise in service prices after the country announced a
service tax from 12.36% to 14% (Deshpande, 2016). This move is likely to
affect the economic well-being of Zomato. Furthermore, the company is
initiating cashless transaction aimed at creating jobs in different countries
(Chakraborty, 2016). As it stands, the company has 2319 employees, and it
has somehow managed to solve the unemployment problems in the country
(Deshpande, 2016). Lastly, the company attracts several investments as well
as funding from the government and foreign investment, all of which are good
for the country’s economy.
3. SOCIO – CULTURAL :
In the last six years, Zomato has turned out to be the country’s favourite online
restaurant discovery tool. However, it has influenced the manner in which
individuals select their preferred restaurants. The changing lifestyle patterns
and income levels of the Indian working population, and this is advantageous
to Zomato (Wikiwealth, 2017). This is because; many young people and new
age working couples like eat out, with this category attracting about 30% in
2012 (Deshpande, 2016). For this reason, user engagement in its website is
therefore critical for customer participation. Finally, customer service Zomato
has been amazing and going by the friendly replies from the customers, the
company has managed to maintain customer loyalty (Chakraborty, 2016). As a
dimension of social engagement with people, Zomato stays ahead over its
competitors.
4. TECHNOLOGICA :
Zomato has enjoyed a greater advantage by using technology in designing a
beautiful user interface that makes it easier for the users to browse
(Wikiwealth, 2017). One advantage that Zomato continues to enjoy out of this
kind of technological innovation is that the service is much faster despite the
fact that the high resolution is needed for the menus. In essence, the
technology encourages online services. For example, incorporating what the
restaurant into mobile app helps the customers to select the restaurant on the
go. According to Deshpande (2016), the restaurant information is customised
in a manner that the customer to obtain the information he or she needs
without necessarily making a hassle. Technology also makes the company
have a good business model that keeps the customers’ information
(Wikiwealth, 2017). The only thing a customer is required to do is to log and
use the service. This move exposes the company to a competitive environment
with the likes Google. However, since the product is purely made to for Indian
restaurants, it cannot serve the demands of the global market. Therefore,
Zomato has used technology effectively to achieve competitive advantage
(Deshpande, 2016 ) .
5. ENVIRONMENTAL :
Achieving business sustainability is dependent on how the company addresses
the ecological requirements (Deshpande, 2016). Being a service company,
there are no significant environmental impacts from Zomato Company .
6. LEGAL :
The company is required by the Indian law to comply with all regulations that
control technology firms in the country (Wikiwealth, 2017). This ensures that
it is used effectively without being subjected to abuse.
FINANCIAL STRATEGY :
To increase their fund and revenue .
MARKETING STRATEGY :
To top their customers from across the globe .
GROWTH STRATEGY :
To grow continuously and increase their customers and page traffic .
GLOBALIZATION STRATEGY :
To expand themselves across the whole globe as a leading service provider .
MARKETING STRATEGY :
Featured and user – friendly websites .
IMPLEMENTATATION BY ZOMATO
Zomato aims to be a place where the foodies hangout. The company has spread in 20
countries with its headquarter in New Delhi, India providing service to over 35
million values customers per month. The list of registered restaurants on the website
has increased to 384,100 till March 2015.
Facebook, Twitter and Pinterest are the 3 main platforms which made the base for the
success of Zomato with a deep presence among their customers. Other than that ,
Zomato has extensively invested a lot over SMO, SEO and has worked a lot to
improve its UI and make it more user interactive. Side by side with a goal to branch
globally, they also invest much on TV ads to bombinateZomato.
Pankaj Chaddah, the co-founder of Zomato agreed, “ads on the mobile app have
changed the revenue game for them”. More than 50% of their total traffic comes from
their mobile apps. “Using location-based services to target ads around a consumer’s
physical location helps make this decision easier” said Chaddah.
Sanjeev Bikchandani, co-founder of Info Edge and Zomato’s largest shareholder said,
“the firm will focus on segments such as online food ordering, restaurant booking,
subscription-based services and billing inside of restaurants”.
.
FACEBOOK :
There is a huge engagement of customers on Facebook. Zomato has more than 600k
strong Facebook community.
TWITTER :
Twitter is a place where Zomato is sparkling. It has more than 114 k followers there.
Used as a conversation platform with the customers, Zomato is doing a great job in
engaging their customers on their page. They answers all the queries raised over the
platform by the customers.
BLOG :
Sharing and updating with all the latest updates is a key point for any organization.
Zomato uses their blog as their mouthpiece to share all the latest updates.
PINTEREST :
The platform shares the food experience with great content to attract their customers.
The company needs to do a lot of job to make its followers on this platform which
will certainly work in their promotion.
TRENDY
Zomato engages with the audience by posting on trendy topics. The brand
understands the audience’s nature. Hence, it promotes content which makes users
share it, comment on it and view it again and again. It utilises trendy topics and posts
simple images in order to interact with viewers online.
PAID ADVERTISING :
Zomato runs Search Ad Campaign using Google AdWords . It targets keywords
related to food, ordering online, names of restaurants and much more. It targets users
whose intent is to get some food delivered to them.
It also runs Google Display ads to target users on third party websites and apps.
Along with this, it runs promotions on Facebook and Instagram to target users on
these platforms.
Zomato Digital marketing strategy will have to keep changing according to the
current trends. They will have to find new ways to attract their consumers’ attention.
Right now, they are doing a great job. If they continue working hard on it, they are
going to reap a lot of benefits for it.
TABLE BOOKING
Table booking is one of the most significant features which is required to build a
successful restaurant business . The user can easily book table whenever they want .
Table booking provide convenience to the user as well as prevent disappointment .
Zomato has more than 1.4 million restaurants in their list where you can find a
suitable restaurants to book table for your need . Most of the restaurants allow table
booking from 2-8 person .
SELF PICKUP
You can enjoy offers and promos as well as no need to wait for your delivery .
Zomato provides you with a feature that you can order your food online pick it up
from the restaurants by yourself . This option saves your time as well as you can have
your food on the go .
RESTAURANT PROFILE
The restaurant has full control over their profile in the Zomato. They can provide
useful information to their user to help them out . The restaurant has the option to
provide details like food menu , image , phone number , direction to the restaurant and
reviews .
Having an app like Zomato in your mobile is a smart thing to do . Particularly if you
are a foodie . Zomato will deliver you features that none another app can provide
you .
The “all-you-can-eat” model of the Infinity Dining program was the biggest bone of
contention between the Gurgaon-based Zomato and restaurants.
THE RECENT ZOMATO CONTROVERSIES AND THE
ADVERSE EFFECT ON THE BRAND
The #Logout campaign by restaurants forced Zomato to revoke its Infinity
Dining option in Zomato Gold
Zomato has also continuously been laying off its employees
The controversies have led to the souring of Zomato’s overall brand image
Food distribution and restaurant aggregation platform Zomato has had two
consecutive rough months. According to YouGov, a market research platform, the
brand image of the Gurugram-based company has taken a beating owing to volatile
religious feelings, angry restaurants, angry customers, angry social media and laid off
staff.
BrandIndex, the daily brand health tracker of YouGov, tracks how media and news
occurrences affect the perception of the brand and buying habits of customers.
This BrandIndex information has shown that Zomato’s Buzz, which measures
whether one has heard something beneficial or negative about the brand over the
previous two weeks, has continuously decreased owing to the rising controversy, and
has seen a 6.8-point drop from 42.7 in early July to 35.9 in late August.