Presentation on Zomato

Submitted to – Submitted by –
Dr. Rupa Rathee Mam Vipul
MBA 3rd Sem
19001532065
 Introduction
 Zomato is a restaurant searching platform and discovery service founded
in 2008 by Deepinder Goyal and Pankaj Chaddah.
 It currently operates in 24 countries, including India, Australia and thea
United states.
 It is named by foodiebay in 2008 but in 2010 it was changed as ZOMATO.
 Service provided by zomato i.e restaurant searching , discovery, online
ordering and table reservation , etc.
 Employees working in industry 5000+.
 Users of the consumer service industry is above 80 millions visits
monthly
 It is available in the various language i.e English, Turkish,
polish,Indonesion, spanish , Italian, etc.
 Compititors – Food panda, swiggy , and just eats.
 Internet and mobile app andwebsite are the only channel used for the whole
process for customers to find a suitable restaurant with better discount
deals and place an order.
 History
The service started as “Foodiebay” in the cafeteria of Bain and
Company. Customer looks up the menus at the lunch hour then then
the entreprenuer scan the menus on the websites and the websites
have lots of the traffic and was lauched publicly in 2008.


The
In websites 2010
november coverthe
thecompany
delhi NCR restaurants,
renamed as kolkata and
ZOMATO and Mumbai.
covers the
 world.
In2011, Zomato started to cover in Banglore, pune, chennai,for ios,
hyderabad and Ahmedabad and they launched
android, Window phone, and blacberry devices. applications
Zomato expand most of the contries that is the world in 2012 –

2013.
In 15th October, 2015 Zomato changed business strategies from a

Full-Stack market to an enterprise market. This led to Zomato firing

10% of its
Zomato workforce
covers over awhich equals
million about 300
restaurants people.
across 10,000+ cities in 23
countries
 Acquisitions by Zomato
Menu-mania, In july 2014 zomato make its first acquistion by buying
menu-mania for an undisclosed sum.
The company pursued other acquisitions including 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. In December 2014, it
acquired Italian restaurant search service Cibando.
Zomato also acquired Seattle-based food portal, Urbanspoon, for an
estimated $60 million in 2015.
In September 2018, Zomato acquired Bengaluru-based food e-
marketplace, TongueStun Food, for about $18 million in a cash and stock
deal.
On 21 January 2020, Zomato acquired its rival Uber Eats business in
India in an all stock deal, giving Uber Eats 10% of the combined business.
Countries where zomato is availaible
 MISSION
 Our mission is to ensure nobody has a bad meal

They do this by –
 Helping people discover great places around them

 Building amazing experiences around dining

 Enabling restaurants to create amazing experiences

SWOT ANALYSIS
STRENGTH

 Users perceive Zomato as ‘Specialty product’ (Focused only

on foods & restaurants)
 High awareness – Top of the mind product
 Global presence – 25 countries – 1.5 million listed
restaurants
 Superior technology and a strong workforce of over
1200 people
 Asset less business model
 Simple & user friendly interface
 Aggressive and Innovative marketing strategy
WEAKNESS
 Competition from search engines & other similar
apps means limited growth

 Drastic growth means susceptible to bad

content

 Not customized for each target market

 Work inefficiency

 High staff turnover

OPPORTUNITIES
 Opportunity to expand to further more countries

 Increasing internet penetration & number of

smartphone users

 Rapid technology development

THREATS

 Intense competition

 Lack of clear rules and regulations - Changes in

government policy can easily affect the business
model

 Business model can be easily imitated by other

players
 Reasons for upliftment of their business:

.To differentiate themselves from their competitors, Zomato concentrated

on adding approx. 18,000 new places to eat from.

.The key factor for Zomato success is its marketing strategy and in-
depth knowledge of their competitors. 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
 Zomato was based on the simple idea of providing scanned menus to
customers, along with contact numbers of restaurants, to enable them
to order food over the phone.
 In a span of seven years, it has emerged as the country’s largest online
and mobile restaurant discovery service, with over one million
restaurant listings across 500 cities in 22 nations, clocking more than
19 million monthly visits on an average
 BUSSINESS MODEL

 Cashless payment.
 Advertising on
Zomato website and
app.
 Consulting services
with data.
 Zomato event.
 Ordering food online.
 Zomato restaurent
guide.
 MARKETING STRATEGY
Social media marketing
 Facebook
 Twitter
 Tumblr
 Google+
 Blog
COMPETITORS
FOODPANDA
 It operates in 24 countries and territories
 The company has partnered with over
40,000 restaurants.
 Foodpanda was launched in March 2012 in
Singapore

SWIGGY
 Swiggy is food ordering and delivery company
based out of banglore founded in 2014.
 The company operates in 44 cities.
 Swiggy begans with 6 delivery executives and 25
restaurents but in the time of 3 years it scaled up with
over 6000 delivery executives across India.
Strategies adopted by Zomato:
1. Cost Leadership
Zomato charges restaurants 7% of each order size, compared to
15-20%
charged by rivals because of it, restaurants are able to keep
their prices low and provide the customers quality food, giving
customers an experience of value for money and a reason to
come back.
2. Capital Investment
Zomato received an initial investment of Rs.4.7 crore from Info-
Edge India in August, 2010. Due to high growth rate of the
company, they witnessed an increase in capital fund investment by
Info-Edge. Info-Edge subsequently invested Rs. 13.5 crore in
September, 2011 followed by a $2.5million and $10million
investment in year 2012 and 2013 respectively. By the end of this
period, Info Edge almost had 57% share in the company.
3. Business Model
Zomato follows a simple business model. While starting afresh in
the new city, some number of people is assigned in each city to
collect data about the restaurants and clubs around the city. There is
a centralized team based out of NCR which processes and cross-
checks the data to confirm the validity. The data is then processed to
be put up on the website. There is a separate team for advertising,
which sells the website to the restaurant owners and attracts them
to advertise with Zomato. 95% of the revenues are earned from
advertisements from the local restaurants, while the rest can be
attributed to event ticketing and restaurant booking.

4. Marketing Strategy
Zomato started with direct marketing techniques like SMS and
Direct mailers. Through direct SMS, Zomato targeted six lakh
unique customers as a first stage. Irrespective of users’ responses
Zomato blasted them with 6 SMS per day for one month. Zomato
believes it increased their reach with this technique. Next is direct
email, where they effectively reached corporate in bulk and hence
reached the professional employees which are their primary target.
They distributed pamphlets in specific areas. The pamphlets were
very specific to their business. They were attractive, colorful and of
good quality to customers.
5. Online Food Delivery
The next food order that you place from your favorite
restaurant online might be delivered to your doorstep by
Zomato itself.
 Right now Zomato promotes itself as Food Network. On Social
Media, they follow simple strategies of always be there for
your customer and only best content needs to be sent to
customers. They treat Face book and Twitter as two different
platforms. Twitter is more used .
 For interaction and conversations and Face book is primarily
used to push their content and to reach more people.
 Once a user logs into Zomato with the help of Face book or
Google account, his/her friends will be automatically
identified on the site and they can easily follow their friends.
 As the friends’ ratings are more trusted by users when
compared to Zomato’s influencing factor is much higher
withthe help of social media.
 Reason behind success

 First mover advantage.

 Strong content platform.

 Efficient employees

 Good rating mechanism and social platform.

Challenges faced in online food
delivery:
1. Being in the daily meals market, they have to work with very low ticket
sizes starting at Rs 50/- with no minimum order requirements or
delivery cost. Considering the costs associated with food production,
packaging and delivery, maintaining a strong unit margin is the
biggest challenge.
2. A very high competition is already present in the market, who have
set
the parameters to be a successful among customers.
3. Confusion may happen between the restaurant and Zomato which
may effect the end customer and the customer has to suffer.
4. Brand Zomato puts its name on stake if anything gone wrong because
of restaurants or the delivery will surely effect its image .
5. Keeping track of their competitors.It is always important to know
what other brands in the same space are doing since there is a
strong overlap in target audience.
 FINDINGS

 Social media marketing is a great success from zomato with

its great response from its users on facebook, twitter and
google+.
 There is a steep and steady rise in consumers
spending toward having food outside to some
restaurant.
 There is a need of improvement in services like
billing process and delivery service.
 Customer prefer using mobile application more than
website.
 Zomato have good competition from its competitors
with providing offers and promotion and on time
delivery.
 Restaurant also has preference for listing there restaurant
on zomato over there competitors.
 CONCLUSION

 In this highly competitive market the survival and the

success of a company depends on innovation and changing
thing for betterment. Odds of success for a startup is very
bad, according to statistics 9 out of 10 startup fails. All the
startup should consider and gaining from the strategies used
by zomato for its steady growth.
 Zomato not only maintained their quality services but
also keet improving it.
 Startup company should be careful choosing the marketing
strategy because there are various factors like target
audience, type of product or service
 One of the most important feature for a startup company is
adaptability which means to change with the change in
trend
 BIBLIOGRAPHY
WEBSITE
https://www.scribd.com/doc/298287869/Zomato-ver-2-1
https://www.slideshare.com/ppt/234564/zomato
https://en.wikipedia.org/wiki/Zomato
THANK YOU