A PROJECT REPORT

ON
ZOMATO – MARKET AND CONSUMER ANALYSIS

A TRAINING REPORT

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF

THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

SUBMITTED TO
HIMACHAL PRADESH UNIVERSITY, SHIMLA
SUMMER HILL, 171005

Under The Guidance of: Submitted By:

VITIKA MAM ABHISHEK

DRONACHARYA POST GRADUATE COLLEGE OF EDUCATION,RAIT,

KANGRA

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 STUDENT DECLARATION

This is to declare that this research project report on “ZOMATO-Market and consumer
analysis” under the guidance of “VITIKA MAM” in partial fulfilment of the requirement for
the award of Degree of Bachelor of Business Administration at Dronacharya college of
education at Rait. This is an original piece of work & I have not submitted it earlier
elsewhere.

Date: Name: ABHISHEK

Place: - Rait University Roll no.5161530021

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 TABLE OF CONTENTS

CHAPTER TITLE PAGE NO.


PREFACE.,ACKNOWLEDGEMENT
CERTIFICATE,STUDENT DECLERATION

1. INTRODUCTION 4-8

2. REVIEW OF LITERATURE 9 - 11

3. COMPANY MISSION 12 - 13

4. RESERCH METHODOLOGY 14 – 15

5. DATA ANALYSIS AND INTERPRETATION 16 - 21

6. PARTER’S FIVE FOCRE ANALYSIS 22 - 24

7. FINDING AND SUGGESTION 25

8. SWOT ANALYSIS 26 - 27

9. CONCLUSION 28

10. BIBLOGRAPHY 29

11. ANNEXURE AND QUESTIONNER 30 - 31

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 Chapter - 1
INTRODUCTION

Zomato
Zomato is an online website which provides restaurant search and discovery service. It
provides its customers a platform to evaluate choices for great places to eat. It has set foot on
22 countries including India. The Gurgaon headquartered company Zomato was named
among the top 25 most promising internet companies in India by Smart Techie Magazine.
Because of its consistent performance and success, it has been successful in getting regular
investments from Info Edge (India).

We’ve been in the business of connecting people with great restaurants and dining
experiences around them for the past seven years. Today, we’re taking that a step further with
the launch of Zomato White label, a platform that enables restaurants to launch custom-
branded native mobile apps, and bridge the gap between them and their customers.

The past couple of years have seen a massive growth of internet-first restaurants, who
function on a ‘no/own kitchen + own delivery + on-demand’ model. However, traditional
asset-heavy restaurants that dominate the restaurant industry are yet to harness the power and
distribution of the internet and mobile to tap into the massive set of digitally connected
consumers. The challenge for them thus far has been the lack of a single service provider who

4
can offer a full suite of technologies they need to run an online presence that is seamlessly
integrated with their operations.

With Zomato White label, restaurants will be able to launch market-ready apps in a matter of
weeks with absolutely no technical knowledge required. These apps integrate seamlessly into
all of Zomato’s ancillary features such as Online Ordering, Table Reservations, in-app
Cashless payments, Loyalty programs and our soon-to-be-launched Zomato Base. These apps
also come with powerful business and marketing tools such as targeted push notifications,
real-time information and menu management, and analytics all bundled in, allowing
restaurants more time to focus on their core business of food and creating delightful dining
experiences for customers.

For customers, this allows for one-on-one interactions with their favourite restaurants, access
to exclusive events and offers, and loyalty programs, without having to navigate to them on
the main Zomato app.

We already have over 100 restaurant brands on board, including top brands such as Miyabi
Sushi & Bento in Dubai, Shizuku Ramen in Melbourne, and Summerhouse Cafe in New
Delhi. We’re hugely excited by the potential of the Whitelabel platform, and the role it is
going to play in ushering restaurants into the interconnected, digital world.

Founded in 2008, Zomato is a leading platform for restaurant search & discovery, online food
ordering, and restaurant table reservations. The company was founded by Deepinder Goyal

5
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 neighbourhood. 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 Foodie Bay in 2008. The start-up 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
Foodie Bay 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 neighbourhood.

The restaurant search and discovery platform began its operations under the name, Foodie
bay. In November 2010, the brand was renamed as Zomato.
By 2011, Zomato launched in Bengaluru, Pune, Chennai, Hyderabad and Ahmedabad .
With the introduction of xxx domains in 2011, Zomato also launched zomato.xxx, a site
dedicated to food porn. The company launched a print version of the website content named,
"Citibank Zomato Restaurant Guide", in collaboration with Citibank in May 2012, but it has
since been discontinued.
In September 2012, Zomato expanded overseas to the United Arab Emirates, Sri Lanka,
Qatar, the United Kingdom, the Philippines, and South Africa. In 2013, the company
launched in New Zealand, Turkey, Brazil, and Indonesia with its website and apps available
in Turkish, Brazilian Portuguese, Indonesian, and English.
In April 2014, Zomato launched its services in Portugal, followed by launches
in Canada, Lebanon and Ireland the same year. The acquisition of Seattle-based food
portal Urbanspoon marked the firm's entry into the United States , Canada and Australia, and
brought it into direct competition with Yelp, Zagat and Open Table.
In February 2017, Zomato in a company's blog, explained the concept of cloud
kitchen. With its cloud kitchen, the company will help the restaurants to expand
their presence without incurring any fixed costs.

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In September 2017, Zomato claimed that the company had "turned profitable" in the 24
countries it currently operates in. Furthermore, Zomato announced that the "zero commission
model" is to be introduced for partner restaurants.
Zomato narrowed down its losses by 34% to ₹389 Cr for the financial year 2016-17, from Rs
590.1 Cr crore in the previous year 2015-16.

Investments :
Between 2010-13, Zomato raised approximately US$16.7 million from Info Edge India,
giving them a 57.9% stake in Zomato.In November 2013, it raised an additional US$37
million from Sequoia Capital and Info Edge India. In November 2014, Zomato completed
another round of funding of US$60 million at a post-money valuation of ~US$660 million.
This round of funding was being led jointly by Info Edge India and Vy Capital, with
participation from Sequoia Capital. In April 2015, Info Edge India, Vy Capital and Sequoia
Capital led another round of funding for US$50 million. This was followed by
another US$60 million funding led by Temasek, a Singapore government-owned investment
company, along with Vy Capital in September. Zomato's total funding of ~$225 million
primarily comes from four investors - Info Edge, Sequoia India, Vy Capital, and Temasek
Holdings.
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 Urban spoon in 2015. Other acquisitions made by Zomato include
Obedovat, Menu Mania, Lunchtime, Maple Graph, 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 Founders:

Zomato was founded by Deepinder Goyal and Deepender goyal CEO,
Pankaj Chaddah, both of whom are from IIT,
and founder of ZOMATO
Delhi. Deepinder Goyal 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

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Pankaj Chaddah is the co-founder and prior to launching Zomato, he had worked at Bain &
Company as a Senior Analyst and Associate Consultant.

Save

NEW DELHI: After witnessing a slew of exits over the last year and a half, restaurant
discovery and food delivery firm Zomato is strengthening its senior management and
leadership teams. The Gurgaon based firm has brought on board former MakeMyTrip
executive Mohit Gupta as the CEO of its food delivery business. Gupta, who was formerly
COO - Online at the online travel portal, will be responsible for leading the growth and P&L
(profit and loss) of Zomato’s food delivery business, a spokesperson for Zomato said. Gupta
will report to Zomato’s Founder and CEO Deepinder Goyal. Food delivery has been one of
the most crucial areas of growth for Zomato with the vertical contributing about 30% of the
overall revenues as of FY18.
Currently, Mohit Kumar who was the co-founder of Runnr, heads global business for
Zomato’s food ordering and delivery platform and will be responsible for building the firm’s
logistics stack within that business.
Gupta`s appointment comes two months after the firm brought on board former GE executive
Sameer Maheshwary as its CFO in May.
Zomato, which saw its co-founder Pankaj Chaddah quit the firm in March, has seen a slew of
top level management changes over the last 2 quarters. The firm is increasingly looking to
strengthen its core teams and leadership to accelerate the growth of its business.

As part of this effort, Zomato has also hired Rohithari Rajan to lead its global advertising
P&Leven as former global advertising sales head Gaurav Gupta moved up the ladder taking

8
on the mantle of COO at the firm, ET had reported in March.The firm has also internally
shifted existing global senior leaders to its headquarters in Gurgaon, as part of these efforts
with Zomato’s Country manager for South Africa and sales head for Portugal, Steven
Murray, set to lead its India people .

Chapter 2
REVIEW OF LITERATURE
A number of National and International research studies have been carried out on different
aspects of financial performance by the researchers, economists and academicians in India.
Different authors have analyzed performance in different aspects. Very few research work
has been done on analysis of financial performance of Indian cement industry. Therefore, the
present chapter reviews the empirical studies related with different aspects of financial
performance. Literature review was divided in two category National review and
International review.

Kaura, M. N and Bala Subramanian (1979) analyzed ten cement units during the
period of study 1972 to 1977 shows that the financial performance of the selected cement
companies evidenced by Profitability, Liquidity and capital structure ratios has declined. The
non availability of funds has affected the modernization of plants and periodic rehabilitation
of the kilns. Besides, the bottlenecks in supply of raw materials and power and non
remunerative prices have reduced the capacity utilization, profits and cash flows. The
profitability and liquidity position in many cement companies have been affected adversely
because of the problems in supply of raw materials , transport and power.

Nagarajrao B.S and Chandar K (1980) analyzed the financial efficiency of cement
companies for the selected period of the study 1970 -71 to 1977-78. It can be analyzed
profitability of selected cement companies has been found downward trend from 1970-71 to
1974-75 because the reason of inflation, rising of manufacturing cost, continuous fall in
capacity utilization due to many reasons.

Kumar B. Das (1987) has made an analysis of the financial performance of the cement
industry. it can be analyzed that the net fixed assets as a percentage of total assets decreased
for the period 1970-71 to 1977-78 that was 553.5% to 44.04 % respectively. Current
liabilities have increased than the current assets. Liquidity performance of the cement
industry is not healthy during period of the study. The Debt Asset ratio has downward During
the period of the study and Debt Equity ratio has slightly increased while net worth ratio has
decreased over the years.

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Nair N.K. (1991) has focused the productivity aspect of Indian Cement Industry. This
study emphasised that cement, being a construction material, occupied a strategic place in the
Indian economy. This study has revealed that, in 1990-91, the industry had an installed
capacity of 60 million tonnes with a production of 48 million tonnes. In this study, the cement
industry was forecasted to have a capacity growth of about 100 million tonnes by the year
2000. This study has also analyzed the productivity and financial performance ratios of the
cement industry with a view to identifying the major problem areas and the prospects for
solving them.

Dr. Dinesh A. Patel (1992) have analyzed Financial Analysis - A Study of Cement
Industry of India for the period of 1979-80 to 1988-89. He can analyzed the profitability of
the cement industry, to examine the short term financial strength of the cement industry
through the analysis of working capital management and to analyzed the long term financial
strength through the analysis of capital structure.

Subir Cokavn and Rejendra Vaidha (1993) have analyzed to evaluate the
performance of cement industry after decontrol. They found that the performance of the
cement industry after decontrol was characterized by outcomes that were generally
competitive and welfare enhancing. This study has revealed that the structure of the industry
changed significantly with large magnitude of relative technologically and superior capacity
being created by many new entrants into the industry. It was also noticed in this study that
there were significant real price increase and an associated increase in profitability. The
performance of firms across the strategic group was different with firms operating relatively
new and large plants appeared to have an advantage. Further, the study has dealt with the
nature and effect of inter-firm heterogeneities in the cement industry.

Chandrasekaran N (1993) has made an attempt to examine determinants of

profitability in cement industry. He identified that profitability was determined by structural,
as well as, behavioural variables. He also identified that the other variables which influenced
profitability were growth of the firm, capital turnover ratio, management of working capital,
inventory turnover ratio etc. Some of the main changes in the cement industry environment
during 1980's identified in this study were: from complete control to decontrol, number of
new entrants and substantial additions of capacity, changing technology from inefficient wet
process to efficient dry process and from conditions of scarcity of cement to near gloat in the
market.

Chandrasckaran N (1994) has studied about the market structure of the Indian Cement
industry like demand and supply. It was analyzed in that study that the demand and supply
gap has been considerably reduced and supply of cement during the period of study has
increased due to creation of additional capacity and capacity utilization.

Srinivasa Rao.G and Indrasena Reddy.P (1995), in their study, analyzed the
financial strength of paper industry had been improving from year to year. The company's
performance in relation to generating internal funds in the form of reserves and surplus was
excellent and also the company was doing well in mobilizing outsiders' funds. The liquidity
position of the company was sound as revealed by current ratio and quick ratio which were
above the standard. The solvency ratio showed that the company had been following the

10
policy of low capital gearing from the 1990-91 as these ratios had been decreasing from this
year. The performance of the company in relation to its profitability was not up to the
expected level. The company's ability to utilize assets for generation of sales had not been
improved much during the period of study period as revealed by its turnover ratios.

Govind Rao and Rao (1999) studied the impact of working capital on profitability in
Indian cement industry. It can be analyzed both positive as well as negative correlations
between working capital related ratios and profitability.

Rajeswari. N (2000), in her study on liquidity management of Tamil Nadu Cement

Corporation Ltd., Alangulam, identified that the liquidity position of the Tamil Nadu
Cements Corporation Ltd. (TANCEM) was not satisfactory in terms of Quick ratio and
Current ratio. She concluded that necessary steps ought to be taken to improve the liquidity
position of the company.

Nand Kishore Sharma (2002), in his Study on financial appraisal of cement industry
in India, has found that the liquidity position was decreasing, current ratio and quick ratio
showed a decreasing trend and also these ratios varied from time to time. On comparing the
current ratio and quick ratio of cement industry, six companies were found higher than the
industry average and four companies lower than industry average. The solvency position in
term of debt-equity ratio has showed a decreasing trend in the first 4 years of study, after that,
it registered an increasing trend. The ratio of fixed assets to total debt always showed more
than 100 percent which indicated that the claims of outsiders were covered by the fixed assets
of the cement companies.

Ghosh S.K., and Maji S.G. (2004), in their paper, to examine the efficiency of
Working capital management of the Indian cement companies from the year 1992- 1993 to
2001-2002. They conclude from the study indicated that the Indian cement industry, as a
whole, did not perform good perform during the selected period of the study.

Bardia (2006), in his study on Liquidity Management of Steel Authority of India Limited,
has analyzed the overall performance of liquidity maintained by steel sector and the amount
tied-up in various components of working capital. This study has found that there was a
positive relationship between liquidity and profitability.

Amalendu Bhunia (2007), studied on liquidity management, analyzed the the short term
financial strength through the analysis of the working capital management of selected iron
and steel companies in India. The study revealed that actual values of working capital have
been found to be lower than the estimated values of working capital for the companies, such
as Steel Authority of India Limited (SAIL) and Indian Iron and Steel Corporation (IISCO).
There was a poor liquidity performance existed in case of both SAIL and IISCO, inefficient
inventory management in case of SAIL and inefficient receivable management in case of
both the enterprises. It suggested that increase in additional investment in raw materials,
reduction in the burden of current liabilities were necessary in order to improve the inventory
management and liquidity position of these steel companies.

Sudipta Ghosho (2008) has analyzed the liquidity performance of Tata Iron and Steel
Company (TISCO). During the selected period of the study, it was found that the liquidity

11
position of the company, on the basis of current ratio as well as quick ratio, was not
satisfactory. It indicated that the share of current assets in total assets of the company, on an
average, was 29.1 percent during the period of study. It was suggested that to maintain
overall control of liquidity position, the company should give special attention to the
management of current assets. He found that the degree of influence of liquidity on its
profitability was low and insignificant.

Rajamohan .S and Vijayaragavan T. (2008) have studied on production

performance of Madras Cement Limited. it can be analyzed the comparative production
performance of Madras cement and all other cement companies in India. Statistical method
Mann-Whitney U-test was applied. The results of analysis indicated that the production
performance of selected unit was equal to production performance of all other cement units in
India.

Chapter – 3
COMPANY MISSION
 Helping people discover great places around them.

Our team gathers information from every restaurant on a regular basis to ensure our data is
fresh. Our vast community of food lovers share their reviews and photos, so you have all that
you need to make an informed choice.

 Building amazing experiences around dining.

Starting with information for over 1 million restaurants (and counting) globally, we're making
dining smoother and more enjoyable with services like online ordering and table reservations.

 Enabling restaurants to create amazing experiences.

With dedicated engagement and management tools, we're enabling restaurants to spend more
time focusing on food itself, which translates directly to better dining experiences.

 And we're doing it globally

From Vancouver to Auckland, Zomato is used by millions every day to decide where to eat in
over 10,000 cities across 24 countries. In a few years, we should be able help point you to a
great place to eat no matter what part of the world you're in.

 One team

We are over 2000 passionate Zomans strong across 24 countries, and we're growing by the
day. At last count, our team represents 32 nationalities, and speaks twice as many languages.
We're split 50:50 on tea drinkers vs. coffee drinkers. The tea drinkers are the nicer ones.

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Zomato is basically a 9 year old ‘start-up’, that provides reviews and listings about
restaurants. At the moment, they are in more than 20 countries and aim to get into 30 others.
You can follow their updates via their blog site - Here. Moreover, there is an interesting
presentation about Zomato - Here. It provides a nice overview of the startup as well as their
strategy execution. At the moment, Zomato does not seem to have a formal mission and
vision statement, but according to Pankaj Chaddah, co-founder and COO of Zomato, “We
want to be the 'Google' of food. Our vision is to be the global platform when someone is
looking for food locally”. And according to its site, Zomato’s aim - “Our mission is to ensure
nobody has a bad meal”.

Our team gathers information from every restaurant on a regular basis to ensure our data is
fresh. Our vast community of food lovers share their reviews and photos, so you have all that
you need to make an informed choice.

 Building amazing experiences around dining.

Starting with information for over 1 million restaurants (and counting) globally, we're making
dining smoother and more enjoyable with services like online ordering and table reservations.

 Enabling restaurants to create amazing experiences.

With dedicated engagement and management tools, we're enabling restaurants to spend more
time focusing on food itself, which translates directly to better dining experiences.

At Zomato, we're working on solving the challenges that take us a step closer to our mission
every day.

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 Chapter – 4

RESEARCH METHODOLOGY

Objectives

 To analyse factors affecting attitude of customers regarding food delivery apps

 To find the most popular app in the digital food delivery app
 To analyze the relationship between food delivery aap and the facilities provided by
the same.

DATA COLLECTION AND ANALYSIS

The data has been collected by both i.e. primary and secondary sources. Primary data
includes information collected through questionnaire based on attitude and perception of
customers using food delivery apps in India. Secondary data included collecting information
about various apps, the industry position, etc from the various portals from the internet,
journals, magazines etc

Sample size

The total sample size was 50 respondents, out of which 25 male and 25 female i.e. people of
the age group 20-25 years.

Research Tools

Following research tools were used to do analyses and to draw conclusions

 Cronbach alpha
 Chi square
 Weighted average

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  Descriptive analysis

HYPOTHESIS
Ho: There is no significant relationship between factors affecting usage and the food apps

H1: There is a significant relationship between factors affecting usage and the food apps
Ho: There is no association of popularity with the awareness methods used.

H1: There is association of popularity of an app with the awareness methods used.
Ho: There is no most popular app for food delivery among samples

H1: There is a most popular app for food delivery among samples

ANALYSIS AND INTERPRETATION

To understand the behaviour of customers regarding usage of food delivery apps, socio-
economic characteristics of the customers were studied. They are the important variables as
they decide the consumption pattern and customer behaviour regarding these apps. Generally
it is believed that, as the income, age and education of the customer varies impact the usage
pattern of mobile apps. The following table 4 represents the socio-economic pattern of the
selected sample.

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.

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 Chapter - 5
Data analysis of Zomato culture and services
Presently, the 150-strong engineering team at Zomato includes data scientists, product
managers and analysts. “At an individual level, I continue to be fairly hands-on working
directly with data which takes 40% part of my time. Another 30% of the time is spent in
meetings with team members – clearing roadblocks, ensuring alignment between data
scientists/statisticians and ML engineers/developers who are putting models in production,”
he shared. Another 20% of Mehta’s time goes in meeting stakeholders from other teams –
since the work directly impacts different business verticals and product features, so alignment
with business heads and product managers is critical. “The rest 10% is dedicated to learning
and developing – data science domain is evolving very fast, and it is crucial to stay abreast of
recent developments. For example, if we solely look at tree-based models, basic CART got
replaced by RF which got replaced by GBMs which is now being replaced by ensemble
models – all this in last three years,” he said.

According to a report by TechSci Research, the foodtech market in India is projected to grow
at a robust pace, at a CAGR of over 12% during 2016 – 2021. The growth is expected
because of the increasing internet penetration and proliferation of smartphone users coupled
with budding e-commerce market and rising young working population. In this backdrop, the
number of foodtech players and aggregators have swelled –Swiggy, FoodPanda, InnerChef
and FreshMenu.

Consumer behaviour on Zomato

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The above results indicate that the users of Zomato are enjoying the services being offered.
Zomato is meeting its purpose of ensuring that its users do not have to go hungry. It is
guiding patrons to places to have food.

This indicates that there is still a lot of scope towards involving the consumer for value
addition and co-creation. Managers generally interact with the audience to get their views
for betterment of their restaurant.

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The responses above clearly indicate that though a large number of users roughly believe the
reviews on Zomato, there are many who have second thoughts about their authenticity. Thus
it is something which needs to be worked upon.

ANALYSIS OF CONSUMER RESPONSES

 Zomato has an excellent Brand Equity
1. Most consumers are aware of the brand Zomato
2. Most consumers can easily recall the brand Zomato
3. Consumers can recall the brand logo
4. Consumers have a great degree of loyalty for Zomato
 Sources of equity
1. It caters to the most relevant needs of the customer, and fulfilled them better than the
competitors
2. It gives ROI to the advertiser/ restaurant owner
3. It is the leader in the segment which it serves (food)

So, how does Zomato, an extremely data-driven company maintain a competitive edge?
Gurgaon-headquartered company is using machine learning to improve product UX, through
personalisation and superior features, as well as to drive more efficiencies into our
commercial and operational verticals across both online ordering and restaurants listing
business.

When quizzed about the nascent machine learning engines at Zomato, Mehta said that the
Zomato ML team has been around for more than two years now. The initial focus was on user
generated content moderation that involved image processing, reviews NLP. This gradually

18
increased to include product optimization, personalisation/recommendation engines, feature
improvements among other areas and is now extended into commercial/operational aspects of
the organisation.

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. Such experiments require reviews.

C. Customer Support: Thousands of customers view and use the Zomato website daily.
These customers belong to India, 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

Overall Brand 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

19
Though Zomato has a 1288k strong Facebook community, it is seriously lacking in
engagement.
The basic idea of analyzing the Zomato dataset is to get a fair idea about the factors affecting
the aggregate rating of each restaurant such as
 Best cuisines of every part of the world which lies in their budget
 Find the value for money restaurants in various parts of the country for the cuisines
 The needs of people who are striving to get the best cuisine of the country
“Just so that you have a good meal the next time you step out”

Business Problem
The bigger picture is to analyze the various factors aiding the customer to decide the
appropriate restaurant like
Cuisine
Location
Pocket money etc.
Some of the issues that we had to address through this analysis are:

 Converting the various local currencies to US Dollars and thereby determine a

standardized average cost for two so that you know how much you need to shell out
no matter where you are
 Analyze and understand the relationship between the Price Range and the Rating to
determine the value for money the restaurant provides

Solution
Some of the approaches to address the above issues are
1. We have converted the currency values to standardized abbreviations such as INR for
Indian Rupees and used an in-built package to convert the given currency to USD
2. Based on the converted currency value we also re-evaluated the pre-assigned price
range to the Zomato defined USD scale as shown below:

Code
AveragePrice PriceRange

0 < Price <= 10 1

10 < Price <= 25 2

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AveragePrice PriceRange

25 < Price <= 50 3

50 < Price 4

3. To address the cuisine problem we have separated the comma separated values and
spread them into individual columns and aggregated their frequency and have
determined the most favored cuisine based on its location.
4. Speaking of location since our data set consists of Latitude as well as Longitude we
have generated a map for the three continents Asia, Europe and North America and
plotted the locations of the restaurants and have color coded them according to the
Rating color and the legends help you in understanding the rating text for each
restaurant

Summary
1. The country codes unique to zomato have been re-valued to the names of the country
they stand for by using the Zomato API call which helped us in analyzing the data set
at a country level
2. The standardization of currency by looking up the currency code and converting all
local currencies to US Dollars helped us re-define the price range and thus established
a relationship between the final rating and the price range
3. The comma separated cuisines have been spread into individual columns and have
been aggregated for restaurants with rating greater than 4 and have been filtered
according to their country. This helped us understand what you should serve in order
to be popular in a particular place
4. No matter if you plan your international vacation to Europe or Asia, you will never go
hungry if you take a good luck at our maps to find some excellent restaurants
5. FoodCloud as we like to call it helps us understand which is the best selling cuisine.

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 Chapter – 6
PORTER’s FIVE FORCES ANALYSIS
Threat from Substitutes.
Zomato is of the strong belief that their focus on restaurant discovery and facilitating a
holistic dining experience gives them an edge over competition. As Deepinder Goyal,
founder, Zomato, says, Zomato is driven to constantly improve our product within the space
with a small margin of error.
Zomato realizes that it is a winner-takes-all and is therefore focused on dominating the
competition within its space.

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Google Maps - Latest release of Google Maps for desktops includes listings of restaurants
in the neighborhood. It also facilitates restaurant search and provides photos, reviews, ratings
and even the floor the business is located at. Zomato’s advantage over Maps is that Maps
hasn’t started menu listings yet

Local Competition- FoodPanda and JustEat- FoodPanda gained first mover advantage by
launching the online order facility earlier than Zomato, thus resulting in Zomato losing
relevant market share JustDial- JustDial offers a wide range of restaurant listings; however, it
loses out against Zomato as it doesn’t have an equivalent collection of reviews, photos and
user engagement.

Global Competition- Yelp-Basic difference between Yelp and Zomato is that while Yelp
publishes crowd-sourced reviews, organizes social events and provides basic data about
businesses, Zomato provides information (photos, menus and geographic coordinates) and
allows users to create their own network of foodies for personalized recommendations. The
flipside for Zomato: Total number of unique monthly visitors to Yelp is a staggering 139
million, amounting to four times Zomato’s existing traffic of 35 million. In terms of revenue,
Zomato earned $6 million in revenue compared to Yelp’s $232 million in 2014.

Industry Rivalry in Major International Markets

Yelp – Yelp is the biggest competitor to Zomato in US. It is present in 31 countries. To

counter Yelp, Zomato acquired UrbanSpoon in US but still there is major gap to reach no.1 in
US market.

HungerGo – HungerGo is major player in Singapore where Zomato doesn’t want to enter
due to tough competition poised by HungerGo.

Yadig & Timeout – Yadig and TimeOut are other major players in UAE but Zomato is
market leader in UAE with 65% market share.

Barriers to Entry – Barriers to entry are very high as there are already major players
established in market. Zomato is very well established and market leader. There are other
players such as foodpanda, TinyOwl and Burrp which have already having decent market
share.

Bargaining power of buyers

Presence of various competitor apps in the market means that it is easy for the buyers to
switch to other apps like food panda, Burrp! Tinyowl, just eat.

 With improving features, and upgrades such as food ordering, people may switch to
other apps offering better features.
 Since it is easy-to-use online platform, constraints related to distribution is
eliminated. This removes a potential factor for bargaining of buyers.

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 Bargaining power of suppliers

 Suppliers of Zomato - Print media and online media - Editors' choice on play
store
 Zomato has become famous through its publicity in print media, through play store,
through advertisements in Restaurants. To add to this, there is also dependency on
reviewers - they do not have any way to check the authenticity of reviews as of now.
These all become the suppliers of Zomato. Thus the threats which they face are:
 What if restaurants do not want to list themselves on Zomato? What if they move to
another app?
 Since the reviews are subject to the perspective of the patron, it may be a biased one -
moreover, spam may defeat the purpose - Ratings may get subjective. They have a
content team, but it needs to expand.
 Zomato does not have a system of rewarding the reviewers who spend a lot of time
writing reviews - which may put them off from writing

Threat of new entrants

Strong Brand Name
 A brand name is a must to survive in the industry. Zomato has been very effective in
the past few years. However, they have been late in entering the ordering segment
and Food Panda has taken effective strides in the same. Any new competitors will
need to work extensively on their brand value in order to effectively compete.
Advanced technologies
 This is another area where Zomato has taken huge strides. As mentioned earlier in the
technological analysis, the app and website are aesthetically
 beautiful and the whole experience is enriching! Thus new entrants will have to come
up with an overhaul of the whole strategy as far as application and technological
advancements are concerned. Innovation in technology positively affects Zomato.
Industry affects economies of Scale
 Economies of scale positively affects large producer by lowering the cost of the next
unit of output at lower cost. Thus it is relatively easier and economical for Zomato to
expand at a faster pace. Any new entrant will have to pump in a lot of investment to
challenge Zomato because they will have smaller economies of scale. However, this
is one area where if the new entrant can generate enough capital they can challenge
Zomato on the ground level even though economies of scale are tilted towards
Zomato.

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 Chapter – 7

FINDING & SUGGESTIONS

In the current year overall position of the company is very satisfactory. But there are some
considerable point like average collection had been increased in current year and last four
year it is consonantly decreased. This is due to providing more credit period to customers. It
should be given only according to credit policy. And company can make payment to creditors
on the time without any short term loan. For fast collection, company may provide trade and
cash discount to customers.

In the current year stock turnover ratio has been increased. It is favorable in the one way like
funds dose not blocked into stock it is easily sell in market but in another way it is
considerable because higher inventory leads to increase in cost.

Average Fixed assets turnover ratio had gone down during last 4 year this may be due to
underutilization of assets and less increase in sale due to recession.

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 Chapter – 8

SWOT ANALYSIS OF ZOMATO

STRENGTHS
1. Focused on the social layers on the website and on maintaining a rock solid content
platform which is funny and interactive at the same time
2. Mobile application app has recorded 2.5 million downloads; 45% traffic comes from
mobile application
3. Forayed overseas in September 2012 by launching services in UAE,followed by swift
expansion across south east Asia, UK, South Africa, Europe
4. In 2014 acquired 5 companies valued between $1 and $3 million in the Czech Republic,
Slovakia, Poland, New Zealand and Italy
5. Acquired Urban spoon in January 2015 for $55 million; establishing operations in the US,
Canada and Australia; And coming in direct competition with global players like Yelp,
Foursquare
WEAKNESSES
1. With expansion to various countries, it now has competitors like Yelp (revenue $377.5
million) which are much older and bigger than Zomato, something which it has not faced.
2. As a result of hard focus on global expansion, Zomato lost out on the first mover
advantage in the field of online food delivery to Tiny Owl, food panda.

26
3. Quality and veracity of data; in many cases the information regarding menu cards is either
incomplete or old. For example, in certain restaurants, menu card without prices in
mentioned. In certain other cases, the menu is partial
4. One of the main sources of revenue for Zomato is the promotion of restaurants. This
brings a possibility of conflict of interests and lack of clarity of ratings

OPPORTUNITIES
Opportunities can be broadly classified into 2 categories:
New/Emerging Markets
Emerging Markets: With India’s Internet population poised to rise to half a billion by 2018,
Zomato’s market is all set to grow further. The number of people using their phones to access
the Internet has grown spectacularly from 90 million in June 2013 to 185 million in June
2014; such a growth rate results in a huge market to tap.
Zomato for Business: A subscription-based model wherein merchants have access to their
listings. This allows them to share daily discounts, promos or special menus, increasing their
interaction with consumers on a real-time basis
Cashless transactions: Currently available only in Dubai, diners at participating restaurants
pay through the Zomato app, eliminating the need to use cash/swipe cards. On every such
transaction, Zomato receives a percentage cut on the total amount.

THREATS
1. Aggressive expansion in a huge market landscape – Zomato has been continuously
acquiring companies for expansion – which may not be a bad thing. But when this comes
at a cost of losing out domestic ground, it may not be the best thing to do On the other
hand, we have small players which are slowly covering ground in domestic area like –
 Foodpanda
 Tiny Owl

27
  Burrp
 Yelp
 TimesCity guide
Similarly, there are 18 startups in various stages of evolution – all set to become threats to
Zomato.
3. Restaurants low on ratings may never be able to get good number of patrons – not
everyone has the funding to improve standards – they may actually lose out their existing
customers. All such restaurants owners may resort to protest.

Chapter – 9

CONCLUSION & RECOMMENDATIONS

It was found that social media platform is not being properly utilized. The Facebook page
should be more active to interact with consumers. Also, Zomato needs to keep innovating.
New features like virtual tour of restaurants should be added. Live video shots from café/pubs
can be added if some famous band is performing over there. The brand should build on its
most used features. It must ensure that Authenticity of the reviews should be maintained. Paid
reviews should not be encouraged, as it will dilute the brand.

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 Chapter – 10

BIBLOGRAPHY
1. "After UAE, Zomato expands into Sri Lanka; adds a Colombo
section". techcircle.vccircle.com. Retrieved 15 November 2016.
2. "Zomato expands Middle Eastern presence with Doha launch". mideaster.com.
Retrieved 15 November 2016.
3. www.zomato.com
4. zomato mobile app.

29
 ANNEXURE AND QUESTIONNER
Name----

Contact No.

Address.

1. Do you order food online?

o Yes
o No

2. Which Meal you typically order food online?

o Breakfast
o Lunch
o Snacks
o Dinner

3. How old you are ?

o 20-30
o 30-40

30
 o 40-50
o 50-60

4. whats your gender ?

o Male
o Female

5. In general, How do you prefer to order Food ?

o Over the mobile app

o Over the browser
o Others

6. How often you order food online ?

o Daily
o Weekly
o Fortnight
o Monthly

7. What is the approximate money you spend on ordering food per Time ?

o Rs 150
o Rs 250
o Rs 500
o More than 500

8. Why do you prefer online food Delivery ?

o Faster delivery
o Convenient
o Time saving
o Money saving
o All of above

9. Why people are prefer most Zomato ?

o Easily available
o Fast delivery
o Restaurant and home delivery both are available
o All of above

10. Which part do you think is the most important for the an online food ordering system ?

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 o Security
o User friendly
o Respond time
o Easy to access
o Complete food menu
o Online payment support
o Others

11. Satisfaction with services of Zomato rating scale 1--------10?

o Highly Dissatisfied
o Highly satisfied

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