It is a case study on Zomato- Its SWOT Analysis, Consumer Behaviour and Trend Analysis of its Sales and Revenue

1. An Indian Start-up Globally
Acclaimed:
A study on ZOMATO
MS. SUSMITA PATRA
MS. SHEETAL KIRAN MINZ
M.PHIL IN COMMERCE
RAMA DEVI WOMEN’S UNIVERSITY

2. INTRODUCTION
• Start-up India is a flagship initiative of the Government
of India
• action plan of this initiative is based on the three pillars
o Simplification and Handholding,
o Funding Support and Incentives,
o Industry-Academia Partnership and Incubation.
• Digital India is a prestigious initiative from the
Government of India for reducing paper work
• Digital India provides a sound and well-connected e-
platform for catering their services to the customers.

3. • “ZOMATO- Never have a bad meal”
• It is a restaurant search and discovery service
founded in 2008 by Deepinder Goyal and
Pankaj Chaddah.
• Headquartered in Gurgaon
FOODIEBAY
in 2008
ZOMATO
in 2010

4. ZOMATO AT A GLANCE
Key Activities
-To provide local restaurants and
hotel search services.
-To collect data on food menus,
contacts and relevant
information for users.
Key Resources
-It has large database of
restaurants in various cities
around the world.
-Its presence across 23 countries
around the world.
Channels
-Mobile Application
-Internet
Customer Segments
-Users who try to find local
restaurants of various cuisines.
-Restaurants who want their
name to reach targeted
audiences.
-Customer preferring home
delivery.
-Database companies.
-Market research companies.
Value Proposition
-One-stop shop for dines
and offers restaurants a
way to differentiate them.
-Bridges the gap between
customers and restaurants
by efficient technology
which reduces delivery
time.

5. BUSINESS MODEL
RESTAURANTS ZOMATO CUSTOMER
Charge of
Advertisement
Provide all
information about
restaurants and food.
Download mobile app,
give reviews, share
photos and experience.
Space to advertise
and access to a wide
range of customer.

6. SWOT ANALYSIS OF ZOMATO
STRENGTHS
• Employs
aggressive and
innovative
marketing
strategy.
• Simple & user
friendly interface.
• Feature of quick
delivery as
compared to
other competitors
• Trained people for
faster delivery
• Better customer
support system.
• Covers wide range
of restaurants
across the world.
WEAKNESSES
• High staff
turnover.
• No customization
for each target
market.
• Drastic growth-
means
susceptible to
bad content
• Low turnover of
content
• Diverse app
features which
are complicating
simple things.
OPPURTUNITIES
• Delivery Service
• Rapid technology
development
• Scope to expand
in further more
countries
• Increasing
internet
penetration &
number of
smartphone
users
• Growing market
for potential
customers.
• Global Expansion
THREATS
• Growing
potential
competitors and
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

7. STRATEGIES OF ZOMATO
FUNDING STRATEGIES
February 2018- Ant Financial invested $ 200 million
October 2018- Ant Financial invested $ 210 million
April 2017- Sequoia Capital invested 20 million
September 2015- Temasek with Vy Capital jointly invested
$ 60 million
April 2015- Info Edge invested $ 50 million
November 2014- Vy Capital with Sequoia Capital jointly
invested $ 60 million
November 2013- Sequoia Capital & Info Edge jointly
invested $ 37 million
February 2013- Info Edge invested $ 10 million
September 2012- Info Edge invested $ 2.3 million
September 2011- Info Edge invested $ 3.5 million
In August 2010- Info Edge invested $ 1 million

8. MARKETING STRATEGIES
Zomato’s
key success-
it’s featured
and user
friendly
website
Employ a
variety of
marketing
tools such as
SEO, SEM
extensively
for online
marketing.
Offline tools
include
word-of-
mouth
marketing,
OOH and
B2B
advertising.
Use
television
advertising
occasionally
during high
activity
periods like
Diwali, New
Year
Global
mobile
application
for Google
Android
operating
system,
Windows
phone, IOS
and
BlackBerry
devices
Turnaround
strategy -
implementat
ion of real-
time
marketing
Integrated
other tools
like
coupons,
price-offs,
phone call
and direct
mail in their
marketing
strategy.
Rolled out a
subscription
product
called
Zomato Gold

9. Competitive Strategies
Zomato
Book,
Treat, and
Zomato
Gold
Funding,
especially from
Ant Financial
Launch of
its White
Label
Platform
Diversifying its
revenue base.
Well
Developed
Business
Model
New offerings in apps
such as cashless
payments, online
ordering, table
reservations and a
Point-of-Sale system

10. CONSUMERS’ BEHAVIOUR ANALYSIS
Yes
62%
Not Yet
15%
Sometimes
18%
Not
Interested
5%
Have you ever used the Zomato app?
Foodpanda
13%
Swiggy
39%
Loyal to
Zomato
20%
Others
28%
Which app (other than zomato) you use to
order food?
Ordering
Food
70%
Just for
Reviews
22%
Table Booking
8%
Mainly for what purpose you use Zomato
app?
Yes
13%
Are you mad?
7%
Sometimes
62%
Can't
determine
18%
Do you find the information avaialable on
the app reliable?

11. No
23%
Once
25%
More than
Once
8%
Sometimes
44%
Have you ever faced any kind of problem
while using the app?
Superfast
12%
Good
57%
More Scope
to improve
28%
Outsource
the service
3%
How is the app's customer's queries
service?
5 *****
10%
4 ****
43%
3 ***
40%
No *
7%
What is your take on overall performance
of the app?
No need
15%
Delivery
Time
44%
Customer
Care Services
32%
Others
9%
Which area it needs to focus on?
Satisfactory
59%
Need to
Work
20%
Great
19%
Very Bad
2%
How is the behaviour of the delivery men?
Yes
54%
Not Now
20%
Never
4%
Strongly
Recommende
d
22%
Would you recommend the Zomato App to
your Family and Friends?

12. TREND ANALYSIS OF REVENUE OF
ZOMATO
-800
-600
-400
-200
0
200
400
600
FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18
InCrores
Trend Analysis
Revenue
Profit/Loss

13. CONCLUSION
• Rise of ‘Me Too’ Start-ups
• Key factor for Zomato success is its marketing strategy and in-depth
knowledge of their competitors.
• Lead to the growth and expansion of the industry
• However the sector has seen several ups and downs in the past few
years owing to deep discounts, poor scalability and low margins.
• After the FY 2015, the company has diversified into the food
delivery space on seeing the rapid strides made by Swiggy and
Foodpanda.
• Revamped their advertising model and developed several loyalty
programs to retain customers.
• Zomato is having a gala time in the market but should keep
innovating and rejuvenating ideas