A

Project Report
On
“Online Food
Delivery Industry”
(Zomato).
Submitted to…
Faculty of Liberal studies – Bachelor of Business
Administration with Honors
Faculty Guide:
Prof. Mrs. Niharika Bajeja
(Assistant Professor)
Prepared by:
Adarsh Jobanputra - 91700425002
Megha Thakrar - 91700425081
Jeet Dube - 91700425087
Ali Lokhandwala - 91700425116
Jaivik Charola – 91700425131
BBA Hons (Semester IV)
January 2019

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Acknowledgement:

We would like to express special thanks of gratitude to Prof.

Mrs. Niharika Bajeja as well as our dean Dr. Sunil Jakhoria
who gave us the golden opportunity to do this valuable
survey on Online Food Delivery Services in India (Zomato, to
be specific), which also helped us in doing a lot of Research
and we came to know about so many new things I am really
thankful to them.
Secondly we would also like to thank our parents and friends
who helped us a lot in finalizing this project within the limited
time frame.

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Index:

Sr. Particulars Page no.

No.
1. About Industry 1
2. About Company 2
3. 7P’s of Service Marketing 4
4. Questionnaire 7
5. Bibliography 12

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About Industry:
The first online food order was a pizza from Pizza Hut in 1994. The first
online food ordering service, World Wide Waiter (now known
as Waiter.com), was founded in 1995. The site originally serviced
only northern California, later expanding to several additional cities in
the United States.
During the dotcom boom, startups like Webvan, HomeGrocer,
and Kozmo started online grocery delivery, but ended up closing in
2001 after the dotcom crash. Seamless was also founded during this
time.
GrubHub was founded in 2004. By the late 2000s, major pizza chains
had created their own mobile applications and started doing 20-30%
of their business online.
E-commerce in India is expected to grow from US $2.9 billion in 2013
to a mammoth US $100 billion by 2020, making it the fastest growing
e-commerce market in the world! E-commerce is also witnessing a
spurt in online food & restaurant service companies, which is expected
to reach $2.7 billion by 2019.

This white paper explores drivers of the growth of such online food
delivery companies in India, the current competition and how this
affects the brick-and-mortar restaurant business in India.

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About Company:

Zomato is an Indian restaurant search and discovery service founded

in 2008 by Deepinder Goyal and Pankaj Chaddah. It currently
operates in 24 countries. It provides information and reviews on
restaurants, including images of menus where the restaurant does
not have its own website.

The restaurant search and discovery platform began its operations

under the name, Foodiebay. In November 2010, the brand was
renamed as Zomato.

By 2011, Zomato launched in Bengaluru, Pune, Chennai, Hyderabad

and Ahmedabad. With the introduction of .xxxdomains 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.

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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.

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7P’s of Service Marketing:
1. Product: In case of services, the ‘product’ is intangible,
heterogeneous and perishable. Moreover, its production and
consumption are inseparable. Hence, there is scope for
customizing the offering as per customer requirements and the
actual customer encounter therefore assumes particular
significance. However, too much customization would
compromise the standard delivery of the service and adversely
affect its quality. Hence particular care has to be taken in
designing the service offering.

2. Pricing: Pricing of services is tougher than pricing of goods. While

the latter can be priced easily by taking into account the raw
material costs, in case of services attendant costs - such as labor
and overhead costs - also need to be factored in. Thus a
restaurant not only has to charge for the cost of the food served
but also has to calculate a price for the ambience provided. The
final price for the service is then arrived at by including a mark
up for an adequate profit margin.

3. Place: Since service delivery is concurrent with its production

and cannot be stored or transported, the location of the service
product assumes importance. Service providers have to give
special thought to where the service would be provided. Thus, a
fine dine restaurant is better located in a busy, upscale market
as against on the outskirts of a city. Similarly, a holiday resort is
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 better situated in the countryside away from the rush and noise
of a city.

4. Promotion: Since a service offering can be easily replicated

promotion becomes crucial in differentiating a service offering
in the mind of the consumer. Thus, service providers offering
identical services such as airlines or banks and insurance
companies invest heavily in advertising their services. This is
crucial in attracting customers in a segment where the services
providers have nearly identical offerings.

We now look at the 3 new elements of the services marketing mix

- people, process and physical evidence - which are unique to the
marketing of services

5. People: People are a defining factor in a service delivery process,

since a service is inseparable from the person providing it. Thus,
a restaurant is known as much for its food as for the service
provided by its staff. The same is true of banks and department
stores. Consequently, customer service training for staff has
become a top priority for many organizations today.

6. Process: The process of service delivery is crucial since it ensures

that the same standard of service is repeatedly delivered to the
customers. Therefore, most companies have a service blue print
which provides the details of the service delivery process, often
going down to even defining the service script and the greeting
phrases to be used by the service staff.

7. Physical Evidence: Since services are intangible in nature most

service providers strive to incorporate certain tangible elements
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into their offering to enhance customer experience. Thus, there
are hair salons that have well designed waiting areas often with
magazines and plush sofas for patrons to read and relax while
they await their turn. Similarly, restaurants invest heavily in their
interior design and decorations to offer a tangible and unique
experience to their guests.

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Questionnaire:
Do you order food Onlne?

NO
35%

Yes
65%

Do you order food Onlne? Yes NO

If yes which company do you prefer?

7% 8%
19%

36% 30%

Food Panda Swiggy Zomato Uber Eats Others….

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 How often do you order food online?

15% 7%

28%

50%

Daily Weekly Fortnight Monthly

Which meal do you typically order onine?

4%
31% 25%

40%

Breakfast Lunch Snacks Dinner

What is approximate money you spend on

ordering food per time?
9%
24%
20%

47%

All of the above Breakfast Convinient d

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 Why do you prefer online food delivery?

20% 17%

16% 24%

23%

Faster Delivery Convinient Time Saving Money Saving All of the above

Would you suggest others to buy order food

online from zomato?

15%

20%

65%

YES NO Maybe

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Ratings:
Billing process & payment option

27
30
25 20 21
17
20
15
10
2
5
0
1 2 3 4 5

Ordering process

60
50
40
30
20
10
0
1 2 3 4 5

Menu selection

25
20
15
10
5
0
1 2 3 4 5

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 Service quality

40

30

20

10

0
1 2 3 4 5

Presentation

35
30
25
20
15
10
5
0
1 2 3 4 5

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Bibliography:
1| Wikipedia.com
Wikipedia helped out us in acquiring the information about
the details of the food delivery industry in india

2| www.managementstudyguide.com
This website helped us with the article “The 7 P’s of Services
Marketing” to better understand the 7 P’s of service marketing
which helped us to relate them with the industry we selected.

3| slideshare.com

Slide share provided us with many samples of presentations

that provided us with some better ideas to present our data
skilfully.

4| Zomato.com

The layout of zomato’s website & application was very

important to understand before conducting the survey.

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