DR BABASAHEB AMBEDKAR MARATHWADA UNIVERSITY

AURANGABAD

KING’S COLLEGE, JALNA

PROJECT REPORT ON

“A CASE STUDY OF SWIGGY AND ZOMATO”

SUBMITTED

In partial fulfilment of the requirement of the degree of

BACHELOR OF BUSINESS ADMINISTRATION
(MANAGEMENT SCIENCE)
2019-2020

Submitted by Project Guide

KUSHAL G AGRAWAL Prof. Agrawal Sonali

Seat no: -BBA060559

PRN no: - 2017015200364263
 DECLARATION

I have undersigned that I have completed the project work on the

topic “A CASE STUDY OF SWIGGY AND ZOMATO” in
Partial fulfilment of BBA Course as related to the Dr. BABASAHEB
AMBEDKAR MARATHWADA UNIVERSITY AURANGABAD as per the
syllabus of BBA
I hereby declare that the project is genuine and original and never
been submitted by me for award of any other degree or any other
university

Student Name
Kushal G Agrawal
 ACKNOWLEDGEMENT

With my great pleasure, we wish to express our knowledge under

the great guidance of our principal Mrs. Surekha Dargad and
President Mrs. Shakuntala Kadam who had helped me with their
graceful support and other infrastructure with their personal
attention.

I am also thankful to my Project guide Ingle.J who is a knowledgeable

person with a great brilliance. I am thanking him for his immense
interest, Valuable guidance, kindly Suggestion and co-operation
throughout the period of undertaken which have been instrumented
in the success of my project.

It is a matter of honour to express my special thanks to all the staff

members who supported me in completion of my project and
provided me their own interest.

I am also very thankful to all my friends who have directly or

indirectly supported me morally

Mr. Kushal Agrawal

BBA (IIIrd Year)
KING’S COLLEGE JALNA
 KING’S COLLEGE, JALNA.

Department of Management Science

This is to certify that Mr. KUSHAL.G. AGRAWAL the student of B.B.A.

(Bachelor of Business Administration) T.Y. (Third Year) from

KING’S COLLEGE, JALNA.

Has successfully completed the project work assigned by the

MANAGEMENT during the academic year 2019-2020

Project Guide College Stamp Principal

Lect. Agrawal Sonali

Internal External
A CASE STUDY OF SWIGGY AND ZOMATO
 CONTENTS
Page No.
Chapter 1-INTRODUCTION 01-03

1. INTRODUCTION
2. OBJECTIVE OF THE STUDY
3. SCOPE OF THE STUDY
4. METHODOLOGY OF THE STUDY
5. LIMITATIONS OF THE STUDY

Chapter 2-REVIEW OF LITERATURE 04-05

1. LITERATURE REVIEW

Chapter 3 - COMPANY PROFILE 06-13

1. STUDY OF THE SWIGGY COMPANY

2. STUDY OF THE ZOMATO COMPANY

Chapter 4 - ANALYSIS AND INTERPRETATION 14-24

1. MARKETING INSIGHTS
2. ANALYSIS OF BUSINESS MODEL
3. MARKETING-MIX STRATEGIES(4P’S)
4. PRICING STRATEGIES

Chapter 5 - CONCLUSION 25-27

1. CONCLUSION
 Page-01

CHAPTER-1
INTRODUCTION
Instant noodles or last night’s leftovers? What for? There’s no doubt that food tech
startups have transformed the way urban India eats. All you need to do is whip out
your phone and order what you like from platforms like Swiggy, Zomato.

In this case study, the potential of a growing market in the one of the largest
economies in the world is analyzed. Grocery shopping, meal planning and cooking
is now considered a chore by a good proportion of the growing Indian middle class,
causing a surge in demand for services that free them of such inconveniences.
Upwards of 50,000 restaurants in India provide home delivery, and are often only
able to see marginal profits from their take-away sectors. This indicates a high
potential in a relatively untapped market.

Figure 1 shows the relationship between key sectors involved in food-delivery

sectors. Fast Food 1.0, the simple takeaway/delivery sector has seen huge drops in
margins. With the growth of IT infrastructure and spread of internet in the Indian
subcontinent, recent years have seen the introduction of two more sectors:

Aggregator Fast Food

Logistic
s

Softwar Fast
e food 1.0

Fig.1 Structure of Food

Services
 Page-02

a) Aggregators: Provide a platform for customers to discover restaurants, with the

ability to navigate through menus of different cuisines. They manage the delivery
segment as well, and charge per order commission (10-15%). They are highly
scalable and have all experienced remarkable growth in the Indian sector (, Zomato
and Swiggy). However, they also take on a significant operational load- couriers’
hiring and training, maintaining equipment, etc.

b) Fast Food 2.0: These services opt for a full integration of the process: An in-
house app is developed where consumers can order a limited range of meals. These
meals are reheated in their own fleet of cars as orders come in, and delivered in
about 15-20 minutes. Here, choice is given the backseat in favor of convenience.
These services are yet to catch footing in India, but command a growing market
share in North America (Sprig, Maple, SpoonRocket etc).
OBJECTIVES OF THE STUDY:

● Understanding different marketing strategies of two major Indian players in

the aggregator food-tech sector.
● Using quality tools to isolate reasons for growth and development of these
two particular companies.
● Developing a line of action in fields where there exists scope of
improvement.
● To examines the measures taken by these companies.
● To study the SWOT analysis of both the company.

SCOPE OF THE STUDY:

After a deep analysis and research for 4 months in this study we will be covering
the following:
1. different marketing strategies and statistics of both the company
2. finally draw a comparison in terms of marketing strategies between them
 Page-03

RESEARCH METHODOLOGY:

Primary data was collected from various people and their opinion and
information for the specific purposes of study helped to run the analysis. In
essence, the questions asked were tailored to elicit the data that will help for study.
The data was collected through questionnaire to understand their experience and
preference towards their loyal company.

Secondary data was collected from various sources such as different business
websites and published papers.

A variety of quality tools have been applied to the problem of interest. The study
starts with a Marketing Insights of Both The Companies that outlines the features
of both the giant food-tech market in India. A comparison of business models is
done qualitatively and the marketing mix strategies of both the companies are
compared. These tools are used in conjunction to develop a set of conclusion for
the industry.

LIMITATIONS OF THE STUDY:

■ Employees were hesitant for providing the working information

about their companies.
■ Reviews were very much contradicting.
■ Very limited information about the strategies of these companies
in different websites.
■ The study was based on samples so the result may not be absolute
■ There is chance of bias in the information given by the
respondents.
 Page-04

CHAPTER-2
REVIEW OF LITERATURE

Sanjay Anandaram Advisor Sattva, Volunteer iSpirt; Advisor Seed

Fund, Ideaspring, Endiya, Ennovent, KARSEM says:

“While online kitchen businesses will raise money and continue to grow, the
real battle and fight will be between players like Zomato and Swiggy,”.

Sathish Meena, Senior Forecast Analyst, Forrester Research, says:

“If you look at it even now, the game is of the big players. The funding is
coming only for the big guys. There is a market for food delivery and foodtech,
but now that the money is being pumped deeply into one segment.”

According to a recent sectoral report published by IBEF (Indian

Brand Equity Foundation)

“food has been one of the largest segments in India’s retail sector, valued at
$490 billion in 2013. The Indian food retail market is expected to reach Rs 61
lakh crore ($894.98 billion) by 2021”.

Hart & Stapleton in the year 1977 says:

" a statement in very general terms of how the marketing objective is to be

achieved, e.g. acquiring a competitive company, by price reductions, by product
improvement, or by intensive advertising. The strategy becomes the basis of the
marketing plan"
 Page-05

Nashwan Mohammed Abdullah Saif , Wang Aimin School of

Management, Wuhan University of Technology, Wuhan, China

“In terms of the program perspective the marketing strategy

standardization/adaptation is important in the sense it can separate marketing
mix elements to be standardized or adapted in the international market. “

According to Chavan et al., (2015)

digital restaurant uses smart phones to take customer orders. PDA interface was
replaced with smart phones to provide customer user interface to view menu or
track their orders. With secured login system, customers have the facility to view
menu, place orders, track their orders, receive real time updates and make online
payment and collect receipts from smart phone itself increasing customer
comfort.

according to Dwyer and Welsh (1985)

Marketing channel strategies refer to the choice of structure in designing the

distribution channel by manufacturers. They also include influence strategies
which refer to content, frequency and intensity of communications intended to
achieve demonstration of favorable behaviors by their channel partners.

Bhavik Rathod, Head of uberEats India, says:

“It is a huge opportunity. The unorganized food delivery is still $80 billion. And
one of the reasons it is so attractive is a problem - can you bring the cost of
delivery down so low that the economics actually become super viable? Today
with better technology it is easier to bring the cost of delivery lower with a
sizeable business.”
 Page-06

CHAPTER-3
COMPANY PROFILE

Swiggy Founders:
Swiggy was founded by Nandan Reddy, Sriharsha Majety, and Rahul Jaimini in
August 2014. Nandan Reddy aged 29 and Sriharsha Majety aged 31 both are both
alumni of Birla Institute of Technology and Science (BITS) Pilani while Rahul
Jaimini aged 31 is an alumnus of IIT Kharagpur.

Swiggy Journey:
Swiggy began its Journey from Bengaluru with six delivery executives and 25
restaurants on its platform. In the time of 3 years, it has scaled up with over 6,000
delivery executives across India in more than 8 cities like Delhi-NCR, Mumbai,
Bengaluru, Hyderabad, Chennai, Kolkata, and Pune.

Swiggy Business Model:

Swiggy has two major revenue streams.

1. The major part of Swiggy’s revenue from commission it collects from

restaurants for lead generation and for serving as a delivery partner.
2. Swiggy also charges a nominal delivery fee from customers on orders
below a threshold value which 200 rupees for most cities.
 Page-07

Swiggy Funding:
Swiggy is backed by one of best investors available in the market. Swiggy has
raised a total of 75.5 million dollars in funding from various investors, including
Bessemer Venture Partners, Norwest Venture, Accel Partners, SAIF Partners,
Harmony Venture Partners, RB Investments and Apoletto.

Swiggy Marketing Strategies

Swiggy’s marketing strategy consists of both online and offline marketing
campaigns.It promotes its campaigns via Facebook, Twitter, Youtube, Pinterest,
and Instagram. Some of its campaigns include # Secondtomom,
#DiwaliGhayAayi, #SingwithSwiggy and Know your food series of pictures and
food walks in a local area. The company has successfully built its brand awareness
and connects with its audience through these channels. Their facebook page is
quite active with regular updates, averaging to one post a day. Swiggy uses its
Social media not only for campaigning but to engage with its customers from
solving the grievances to taking the feedback.

The business model of Swiggy is purely based upon hyperlocal on-demand food
delivery business operations. Swiggy lists out restaurants on its application and
also organizes delivery partners who deliver the food within 30 minutes on-
demand.

Key Activities:
a. Establishing partnerships with restaurants, eateries, and retail shops
b. Managing delivery providers (full-time/part-time)
c. Marketing of services and acquiring a customer
d. Management of orders
e. Management of technical operations
f. Management of payment process
g. Handling customer concerns
 Page: -08

Swiggy is very simple to use- You look up the restaurants based on location, your
order, add coupon code if you have any, track your order and after the order gets
delivered you can rate the food and the delivery guy.

Swiggy Competitors:
Indian food delivery market is valued at 15 billion dollars and set for an
exponential growth. Food delivery has become a very competitive market in India.
Swiggy is in direct competition with major on-demand food aggregators like
Zomato. Whereas there are other

small startups like Foodpanda and Faasos also in the competition.

Page-09
 Page-10

Zomato Founder

Zomato initially named as Foodiebay was started in 2008 by Mr. Deepinder

Goyal. It is a restaurant searching platform providing in-depth details with
autonomous reviews and ratings. Foodiebay, the initial name was changed to
Zomato in November 2010 to increase their reach among people.

Vision

● To expand to more 50 countries

Milestones:

● Number of listed restaurants: in 2008 it was 4000 restaurants which increase

to 384100 in 2015 and currently 1.4 Million in Q1 of 2020.
● Monthly visitors of Zomato increases to 35 million in 2020 which was 11
million in 2015 and 0.015 million in 2012.
● Yearly revenue of Zomato in 2008 was 0.06 crores which increased to 11.3
crores in 2013 which increased to 1000 crores in 2020
● Spread in 21 countries worldwide.
 Page-11

Success Factor:

● First mover advantage

● Strong content platform
● Efficient employees
● Good rating mechanism and social platform
● Funding from experienced source
Strategy of Zomato:

Zomato works with keen interest on various strategies to achieve their goal. It
includes

● Financial strategy: To increase their fund and revenue

● Marketing strategy: To tap 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.
Deepinder Goyal, Co-founder and CEO, Zomato, earlier told YourStory that
issues like changing rules, number of licenses required, high real-estate
costs, and problems with training and retaining staff are issues that have
traditionally plagued the food industry. They’re something tech can’t really
solve.
 Page: - 12

The Business model of Zomato is hugely different from its contemporaries Swiggy
and Foodpanda. They focus on the entire experience of the user which is all of us
and the businesses which are the restaurants we order from.
The Business model of Zomato is a well-orchestrated plan which consists of
various aspects for the smooth functioning of the application. Following are some
of the critical elements of Zomato-
a. Restaurant Listings / Advertising
b. Food Delivery
c. Subscription Programmes
d. Live Events
e. White Label Access
f. Zomato Kitchens
Page-13
 Page-14

CHAPTER-4
ANALYSIS AND INTERPRETATION

1.MARKETING INSIGHTS OF BOTH THE COMPANY

This section will give the marketing insight of both the company with the help of
product differentiation, strategies used and SWOT analysis of both the
company.

Product Differentiation (Swiggy):

Surge pricing by Swiggy: A model is being proposed where a delivery

charge of ₹20 will be levied on orders placed on festivals, holidays or rainy
days (when most delivery staff are unavailable). Swiggy’s peers in the
United States charge $3-7 per delivery (DoorDash). Hence, if a delivery
costs ₹50 and a 10% commission on a ₹300 order earns the company only
₹30, there is a cash burn (Sayan Chakraborty May 2016). Hence, companies
must realize when to move from customer acquisition mode.

Cloud Kitchens by Swiggy: Another model involves the set-up kitchens in

places where partner restaurants lack a physical presence, but have potential
to lure in consumers through the app (no dine-in facility). Cloud kitchens cut
a large amount of operational costs, and allow a large portion of revenue
generated by the kitchen to be redirected to Swiggy. This is a profitable
avenue and has increased investor confidence in the company.

Correct marketing of USP: Swiggy has managed to set a differentiator,

which happens to be a live tracking service of delivery through routing
algorithms. Their delivery personnel carry one order at a time which ensures
consumers get reliable and quick deliveries. This has been marketed to the
 Page-15

Indian consumer, which has caused a lot of consumers to flock to the company.
Others in this segment have not been able to do so, often getting lost in the
competitive sector. Similarly, an advertisement of delivery within 37 minutes is a
differentiating factor for them in this space.

Swiggy Express: An initiative (in the pilot stage) that aims to deliver food
within 15-20 minutes. Precooked food from partner restaurants is put into hot
boxes and on receipt of the order, is dispatched directly, making sure hot food
reaches the customer within 15-20 minutes. This reaches out to a
market of consumers that prefer quicker deliveries.

Product Differentiation (Zomato):

Curbing over-hire: Zomato laid off a large number of employees, however

without creating a bitter environment and strengthening investor confidence.
40% of the restaurants on Zomato accounted for over 90% of traffic. The
company “had to rethink our processes to make sure that the frequency o

their data updates go up in multiples for the top 40% of restaurants. This led
to a cut in about 60% of their content teams across the world." Over-hire is a
common money-pit in early startup culture, in part due to investor pressure
and wild business projections. This hire-and-fire culture has left a sour
aftertaste in the food-tech community. Figure 5 shows the employee strength
of the two companies.

Differential commission: Another proposed model where the exact size

of commission fee will be based on feedback from customers. In the case
of a five-star rating, Zomato will take a 7.5% commission fee. That cut
could rise to a maximum of 15% for the lowest customer feedback.
Hence, this attempts to quantify and reward good customer feedback and
 Page: - 16
quality, which serves to be a good differentiator.
The business model of Swiggy is purely based upon hyperlocal on-demand food
delivery business operations. Swiggy lists out restaurants on its application and
also organizes delivery partners who deliver the food within 30 minutes on-
demand.
Key Activities:
a. Establishing partnerships with restaurants, eateries, and retail shops
b. Managing delivery providers (full-time/part-time)
c. Marketing of services and acquiring a customer
d. Management of orders
e. Management of technical operations
f. Management of payment process
g. Handling customer concerns
The Business model of Zomato is hugely different from its contemporaries Swiggy
and Foodpanda. They focus on the entire experience of the user which is all of us
and the businesses which are the restaurants we order from.
The Business model of Zomato is a well-orchestrated plan which consists of
various aspects for the smooth functioning of the application. Following are some
of the critical elements of Zomato-
a. Restaurant Listings / Advertising
b. Food Delivery
c. Subscription Programmes
d. Live Events
e. White Label Access
f. Zomato Kitchens
 Page-17

STRATEGY:

SWIGGY ZOMATO
1. Delivery Based Model 1. Deep presence in Social Media
2. Focused on consolidation rather than especially in Facebook,Twitter and
expansion. Pinterest.
3. Delivery Free. 2. They follow the policy “CONTEXT
4. Slightly high tax rate. IS KING”.
5. High commission rate:20% 3. Keeping customers engaged by some
6. Acquire small startups like helpful conversation.
grabyourbite. 4. Heavy investment in SEO’s and
SMO’s and has always make the
conscious decision of improving it’s
UI and also moving towards a more
social food platform.
5. It has been a Customer Focused
Organization.

Table 1:SWOT analysis of Swiggy

STRENGTH WEAKNESS

1. Quick Delivery.
2. Good Brand Image. 1. Location based restaurant finder.
3. Trained Delivery personnel’s. 2. Marketing, branding awareness.
4. Responsive customer support. 3. Delivery charge for orders below
5. Wide range of restaurants Rs.250.
offered. 4. Menu and app price may vary.
 Page-18

OPPORTUNITY THREATS

1. Pioneer in food delivery business. 1. Unstable and low customer base.

2. Growing market. 2. Increase in health consciousness.
3. Increasing market share. 3. Increase potential competition.
4. Minimal Competition. 4. Laws and government regulation.
5. Lack of market leader.

Table 2:SWOT Analysis of Zomato:

STRENGTH WEAKNESS
1. Unique ideas for each new entrant. 1. Security issues for the app
2. It is the first mover in many of the 2. Still a lot of expansion required
nations where it is establishing itself. 3. Besides such apps, in many places
3. Fast Expansion. word of mouth still trumps apps and at
4. Fantastic design of the app. the same time, Facebook check-ins are
5. The brand has a very focused approach a strong competitor wherein people
and has always tried to bring the most might not need Zomato.
of out of its unique offering

OPPORTUNITY THREATS
1. Further expansion. 1. Large number of competitors
2. More acquisitions 2. Presence of large established players
3. Cloud restaurants with substantial market shares.
3. Lack of proper tip ups as it is a costly
process.

The SWOT analysis reveals that the biggest weakness of a growing market of
food startups in India is the low margins per order. The costs associated with food
packaging and delivery are increasing by the day, but increasing costs to
consumer means losing market share in a competitive marketplace. Customer
retention is a big challenge for the future, which can be achieved only with
 Page-19

innovation. The primary opportunity here is the demographic these models appeal
to. Most of the Indian food structure is disorganized and do not adhere to any food
standards. Such marketplaces appeal to a growing urban middle class, which
forms both a source of strength and opportunity. Long term scalability and
sustainability should be the key focus alongside innovation.

2.Analysis of business models

Table 3: Business model details of the two cases

SWIGGY ZOMATO

1. Hyper-local delivery service 1. Derivative of its parent

2. Operates own delivery fleet restaurant-finder service. Huge
(~2700 delivery personnel as of head start with massive consumer
2016) base.
3. No delivery charge above 2. Third party logistics for delivery
minimum order amount 3. 10-15% percent commission plus
4. Almost 20% commission on delivery fee charged to restaurant
every order 4. Phasing into model where
5. Implementing ‘Surge Pricing’ and restaurants manually confirm
‘Cloud Kitchen’ models orders before they are processed
5. Planning differential commission

Current status: Expanding and Current status: Good position with

raising capital revenue growing at 210% a year and
orders increasing exponentially
 Page-20

3. MARKETING MIX(4P’S) STRATEGY OF BOTH THE

COMPANY

PRODUCT

SWIGGY ZOMATO

Swiggy is one of the popular delivery Zomato provides its users with
companies that supplies ordered food restaurant search information and
and beverage items to its customers. It reviews that will enable one to make an
has created a single window and informed decision in regard to the choice
included a wide range of food parlors of restaurant. Menu images are offered
and restaurants under its umbrella. A to customers, especially for those
customer now can make a choice from restaurants that aren’t running their own
visual menus of restaurants in websites. In general, their services
neighborhood and order online. The include POS Systems, Restaurant Search
company has estimated seven hundred & Discovery, White label Apps, Table
and fifty restaurants on its platform and Reservations & Management and online
receives nearly seventy thousand orders ordering services. The company lists at
on monthly basis. least 1.5 million restaurants across the
almost 25 countries where it is present.
Other products include “Citibank
Zomato Restaurant Guide”- a print
version of its website content which it
launched in 2012 in collaboration with
India’s largest bank Citibank.
 Page-21

PRICE

SWIGGY ZOMATO

Swiggy has an extensive workforce and Zomato doesn’t charge restaurants for
this flexibility prompts it to allow its putting their restaurant information on
customer a policy of no minimum the Zomato page. However, it doesn’t
order. This has increased its customer mean that the restaurants won’t
base to a great deal. Swiggy was able to ultimately pay anything. There are
raise 2 million dollars in Series A three basic revenue generation avenues
funding from Accel Partners and SAIF or sources namely: advertisements
Partners. During Series B it raised 16.5 (sponsor ads & banner ads), restaurant
million dollars funding from an booking and event ticketing. Event
undisclosed investment firm and ticketing is where tickets for special
Norwest Venture Partners. Swiggy has events are sold through the site
tie-ups with restaurants that offer a basically for large scale events or
minimum of 15% to 25% commission parties. Restaurant booking or online
and this has helped it in increasing its ordering is charged at between 7.5%
distributive channel and garnering and 15% of the sales depending on the
better revenues. It also charges a priority category of the restaurant.
minimum delivery fee from its
customer irrespective of a small or high
amount order.
 Page-22

PLACE

SWIGGY ZOMATO
Swiggy has spread its presence to few Zomato is an online search site that can
cities in India like Bengaluru, Gurgaon, be accessed by native users of
Pune, Chennai, Delhi, Hyderabad, Windows Phones, Universal Windows
Kolkata and Mumbai. It has its Platform i.e. Windows 10 and
headquarters base at Bengaluru in Windows 10 Mobile, Android users,
Karnataka and has established its iOS, and watchOS. It is currently
corporate offices at Hyderabad in available for use in about 23 countries
Telangana and Gurgaon in Haryana. It including India, Canada, Chile,
is a popular app that takes order for Malaysia, United Arab Emirates, New
food delivery from listed restaurants on Zealand, Lebanon, the United
its portal. Swiggy has set up a strong Kingdom, Ireland, Czech Republic,
and widespread distribution network to Italy, Sri Lanka, Poland, Turkey,
offer prompt and best results. Slovakia, Portugal, Qatar, South Africa,
the USA as well as Australia among
Swiggy has hired Shadow fax
Technologies, a third-party delivery others. Today, the site receives a
flooded traffic of about 90 million
company, for part-time distribution in
visits every month. Products are
Delhi and Bengaluru.
available in about ten languages
namely: English, Italian, Slovak,
Spanish, Portuguese, Turkish, Polish,
Indonesian and Slovak.
 Page-23

PROMOTION

SWIGGY ZOMATO

Swiggy realizes the importance of a Zomato is credited for being one of the
good marketing strategy and has adopted few brands to have become successful in
several plans to create further brand content marketing. One of their content
awareness. It relies heavily on mouth marketing strategy, in fact, the main
publicity and satisfied customers is its strategy, is the vast use of images to
greatest advertising tools as they promote their products.Zomato’s content
recommend the brand to friends and is also always fresh, with the old
family. Swiggy has adopted online message being delivered with unique
marketing strategy and has taken help of approaches. Zomato has thus more than
social media platforms like Twitter, just preached about being unique but has
Facebook, Instagram, YouTube and also proven so. The company has
Pinterest via innovative and interesting invested vastly on SEO and SME’s. The
ad campaigns like #SingWithSwiggy use of the social media to promote
and #DiiwaliGhayAayi.The company Zomato has also played an important
runs contests to encourage direct role in making the company popular.
participation by customers through Their posts on social media are always
#SwiggyTuesdays and offers to munch just some simple industry jargons that
bag and coupons as rewards. Ahead of help attract the different audience
its launch in Mumbai city, it partnered segments. All their posts and promotions
with popular Dabbawalas of Mumbai to prove that the company always sticks to
get a better grasp of the situation and the niche and also understands exactly
later used it as a promotional strategy to who it is catering to.
gain brand exposure.
 Page-24

4. PRICING STRATEGIES:

ZOMATO SWIGGY
Price, discounts Grab On 4 Coupons 23 Coupons
and allowances Coupons
Promotional First time orders Get 15% off on the User will get a
Pricing first order with the cashback of 20%
code EATIN when on the first Swiggy
you pay online. order paid via
paytm or up to
Rs.75
Differentiated Delivery Charges No delivery Swiggy charges a
Pricing Charges delivery fee on 30-
35% on the orders
it delivers. The
company chargers
Rs.30-40 on orders
below Rs.250 or
Rs.300,which
varies across
different cities
Night Delivery Nil Rs.30 after 11pm
Charges
Setting the Price From the 10% on the 15-20% on the
restaurants ordered value order value placed.
placed.
 Page-25

CHAPTER-5
CONCLUSION

CONCLUSION:
Marketing strategy is the section of your business plan that outlines your
overall game plan for finding clients and customers for your business.
Marketing strategy focuses on what you want to achieve for your
business and marketing efforts. Marketing plan details how you'll
achieve those goals.
The four Ps of marketing: product, price, place and promotion. The
marketing mix can be divided into four groups of variables commonly
known as the four Ps: Product: The goods and/or services offered by a
company to its customers. Price: The amount of money paid by
customers to purchase the product.

Swiggy’s marketing strategy consists of both online and offline

marketing campaigns. It promotes its campaigns via Facebook, Twitter,
YouTube, Pinterest, and Instagram. Some of its campaigns include
Secondtomom, #DiwaliGhayAayi, #SingwithSwiggy and Know your
food series of pictures and food walks in a local area. The company has
successfully built its brand awareness and connects with its audience
through these channels.
 Page-26

Zomato’s Marketing game focuses on the Internet

media rather than the traditional media, in fact they are one of those few
Indian brands who have figured how to get the most out of this modern
marketing medium. Using unconventional mediums or messages, using
Low-Cost Marketing Mediums, focus on Customer service/experience
and strong Customer Engagement are some of the strategies used by the
company. Zomato’s focus is on food and food alone. And it wants to
capture the whole value chain — from restaurant discovery to delivery.
Swiggy doesn’t do any of this. Instead, they’re focusing on their delivery
ecosystem to explore new categories. Granted both companies have their
eyes set on achieving a path to profitability, but it's clear that they are
beginning to adopt very different strategies to get to the end goal.
The business model of Swiggy is purely based upon
hyperlocal on-demand food delivery business operations. Swiggy lists
out restaurants on its application and also organizes delivery partners
who deliver the food within 30 minutes on-demand. The Business model
of Zomato is hugely different from its contemporaries Swiggy and
Foodpanda. They focus on the entire experience of the user which is all
of us and the businesses which are the restaurants we order from. The
Business model of Zomato is a well-orchestrated plan which consists of
various aspects for the smooth functioning of the application
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1. Both Swiggy and Zomato uses Emotional Branding to gather more

attention of the users.
2. Swiggy has a pole position on the merchant side. Zomato had
neglected the ordering part for a long time as it didn’t see much
value in it.

3. Zomato is leading in some aspect of survey.

4. Currently, Zomato accounts for about 50% of online orders from

my kitchen while Swiggy does about 20-25% orders.
5. Undoubtedly Swiggy and Zomato made their impact on customers
very strongly and captured loyal customers.

6. Both Swiggy and Zomato advertising were very innovative and

attractive. Both companies are expanding so much money on
advertising and promotions