CIA – I

MBA462M – FUNDAMENTALS OF SERVICE MANAGEMENT

Topic: Service Mix Report of Zomato

BY

ARAVIND S. – 2027227

HIRAN V. J. – 2027230

MOSES JEYASINGH - 2027224

SUJITHA D. – 2027255

UNDER THE GUIDANCE OF

DR. JAYANTA BANERJEE

July 2020

School of Business and Management

CHRIST DEEMED TO BE UNIVERSITY, Bengaluru

 INDIAN ONLINE FOOD INDUSTRY

Online food delivery is a service that allows clients to order food online and have it delivered
to their door. It involves the use of software that enables restaurants to accept and manage
online orders. While surfing the website from the comfort of their own homes, Indian
customers can choose from a vast choice of foods offered by various restaurants. Market
players in India are centered mostly in the country's urban areas, such as Mumbai, Delhi,
Bangalore, Delhi, and Mumbai. Smaller cities, on the other hand, are now being targeted by
vendors as they have significant growth potential.

Changes in lifestyle and eating habits are moving India's internet delivery sector further.
People in India are increasingly turning to ready-to-eat food because of their hectic schedules
and growing disposable cash. Food delivery choices have grown in popularity, especially in
urban areas, as a result of being able to get it swiftly with a single click. In addition, rising
digitalization among millennials and a growing share of working women in India are pushing
India's online meal delivery trends. Food Tech companies' reach has increased sixfold in the
previous few years, riding the wave of fast digitization and continuously rising consumption.

Zomato, Swiggy, Foodpanda, Bundl Technologies, Fasso's, Domino's, and other top Indian
online food delivery companies include Zomato, Swiggy, Foodpanda, Bundl Technologies,
Fasso's, Domino's, and others. In 2020, the Indian internet food delivery market was valued
$4.35 billion. The market has been categorised into order-focused, logistics-based, and full-
service food delivery systems depending on the business model. The market has been divided
into two modes, online and cash on delivery (COD) according to the payment.

Due to the sudden breakout of the COVID-19 pandemic in India, strict lockdown measures
were implemented, resulting in the closure of dine-in restaurants to reduce the danger of
coronavirus transmission. The demand for online food delivery services in the country has
increased as a result of this. Furthermore, several of the major players, such as Zomato,
McDonald's Corporation, and Domino's Pizza Inc., have implemented contactless delivery
services as a result of the increased cases of COVID-19. These services ensure that the food
does not come into contact with bare hands before reaching the customer, and that it is
delivered safely with proper social distancing measures.
As we can depict from the above picture, the whole nation is turning digitally. Due to this the
number of people using smart phones have increased rapidly. Overall online expenditure in
India is fast increasing, with over $130 billion estimated to be spent in the next five years,
according to Rachit Mathur, Managing Director and Partner, India Lead of BCG's Consumer
& Retail Practice. This still more leads to changes in buying behavior of foods, where people
ordering foods through online applications got increased rapidly from past five years. From
the above graph we can see that from 2019 the graph is moving forward with adequate
changes. There is a slight drop on 2021 as we an see, it is due to the Covid19 lockdown all
over the nation.
 COMPANY OVERVIEW

ZOMATO

Zomato was founded in 2008 by Deepinder Goyal and Pankaj Chaddah and is the fastest
growing restaurant discovery website. It was formerly known as Foodiebay, but in 2010 it
was renamed Zomato. It not only gives information on nearby restaurants, but also features
like online ordering, table reservations, and management. Zomato is now available in 10,000
cities across 36 countries, with 1.2 million popular eateries and 80 million monthly users. It
has 10 million reviews and 18 million bookmarks and is available in ten different languages.
It provides restaurant owners with a platform to supply a big number of people with high-
quality meals.

While Zomato competes with companies such as Swiggy, UberEats, and Ola-Foodpanda,
among others, the company continues to develop and expand in the same way it has since the
beginning. Food delivery market is growing CAGR of 16% in India. The Online food
delivery platforms are trying to acquisitions & are collaborating with logistics service
providers to expand their deliveries.

The organisation has a number of options to take advantage of. The first step is to expand
globally to new and emerging markets. Zomato can explore going global and addressing the
needs of the new market because the technology has been widely used in India. This is a
surefire technique to increase profitability by attracting new clients. Second, as the number of
people using smartphones grows, so does the number of people using the internet. This
creates a good revenue opportunity for Zomato.
BUSINESS MODEL OF ZOMATO

Zomato's success is due to its solid business model. Essentially, Zomato is a mobile
application whose business model is around meal delivery, information, user ratings, and
menus from partner restaurants. Zomato has paved the way for other online food-related
apps. The critical parts of Zomato's business plan are as follows:

Customer Segments: 

 Local restaurants: Zomato makes it possible for restaurants to reach out to their target
audience.
 Users: Zomato caters to people looking for restaurants or specialised cuisines in their
area. Users who enjoy home delivery will find Zomato to be a godsend.
 Reviewers are Zomato's content providers. They actively review foods and locales
and give users with appropriate textual and graphical information.
7PS OF SERVICE MARKETING

The service marketing mix, also known as the 7Ps strategy, analyzes a firm based on factors
such as people, process, and physical proof, as well as product, pricing, location, and
promotion. The Service Marketing Mix (7Ps) is a theory comparable to the traditional 4Ps
marketing mix, but it includes three additional elements or Ps that address service-specific
characteristics. The service marketing mix, often known as the 7Ps, aids in the
comprehension of corporate plans. Apart from the Marketing Mix, there are other elements in
the Service Marketing Mix or 7Ps marketing strategy (4Ps).

Importance of service mix

The firm uses the 7Ps approach to define goals, conduct competitive analysis, and conduct
SWOT analysis. From strategy conception to implementation, this framework is utilized to
create a marketing strategy. Apart from product, pricing, location, and advertising strategy,
people, procedures, and physical evidence are equally essential in the service sector.

The 7ps of service marketing of Zomato is as follows

PRODUCT

 The main product of zomato is its application.

 Zomato is a mobile app/website that shows consumers restaurants and meal menus.
 Zomato provides the user with restaurant information, including photographs, rates,
menus, and even a customer feedback site where users can express their thoughts on
the experience and taste of a certain restaurant.
 The company's slogan, "Never have a bad meal," has been proven true by its ability to
assist users in finding the best restaurants for their needs.
 This programme assists eateries that do not have their own websites. It's a terrific
approach for them to promote their restaurant online without having to create their
own website.
 Point of Sale systems, Restaurant Search and Delivery, Table Reservations and
Management, Whitelabel Apps, and online ordering services are among the
company's primary services.
 Whitelabel is a product or service produced by one firm (the main company) that is
rebranded by another company as if it were made by them
PEOPLE

People in service marketing refer to all people who are involved directly or indirectly. It may
be in service or consumption. People are the interface for transaction in between the
customers and company

Employees

The majority of businesses rely on their employees to provide their goods and services. The
people component of the services industry is made up of this workforce. Zomato has a robust
staff of about 3000 individuals trying to provide the finest services to their customers.
They've implemented leaner operational methods in areas where market demand is lower. As
a result, the workforce was fully utilized. They're also interested in advising restaurants on
best practices, staff retention, and maximizing their potential as part of their consulting
company.

The marketing mix may be influenced by anybody working in the business. The owners and
management create a culture that can have a positive or bad impact on public views of the
company. The corporate culture has a significant impact on whether or not there are any
unethical business activities.

The crew is responsible for maintaining the company's reputation. It's critical that employees
are properly taught, motivated to give excellent service, and have a favorable attitude
regarding the items or services they're selling. Customers frequently assess a company as
much by the service employees as by the quality of the product.

Employees contribute to service quality through promoting the company's image and
delivering superior service to rivals. Behaviour and attitude of employees affect the
customer’s perception of service.

The following are some of the variables are

 Recruiting and training of employees

 Uniforms
 Queuing and wait management systems
 Taking care of customer concerns and figuring out why services aren't working;
 Taking control of social interactions.
Target audience

The target audience is also referred to as this. The stratum of people to whom one wishes to
market their products is referred to as the target audience.

This is critical in order to satisfy the audience's expectations in terms of the service chosen by
Zomato. This would provide a clear picture of what the service should have, in terms of
quality, in order to earn popularity and profit.

Zomato has an excellent rapport with its consumers. It provides active customer assistance 24
hours a day, 7 days a week to help consumers whenever and wherever they need it. It also has
the 'Customer Support Chat' service and maintains active social media channels, which it
replies to swiftly. To stay in contact with its clients and partners, it has created outstanding
rating, analysis, and feedback tools.

Between 2019 and 2020, the number of active monthly users on Zomato is expected to rise.
The number of restaurants listed has increased by 177 percent. Active delivery partners are
the backbone of Zomato's efficient operations, and the company's 200K+ partners are pleased
to work with them.

Zomato's customers are divided into three categories:

Users: An online platform that allows users to locate nearby eateries and is ideal for
individuals who like to have food delivered to their doorstep.

Local Restaurants: The Zomato platform is important for restaurant owners who want to
advertise their company and attract the attention of their target audience.

Providers of delivery services: They can earn a good living by providing part-time or full-
time services.
PROCESS
Zomato is a popular on-demand meal delivery service that allows customers to find new
restaurants and have them delivered right to their door. You might be wondering why Zomato
makes so much money only by delivering food. Let's take a closer look at how zomato
operates and how it's grown so quickly in recent years.

Since 2008, Zomato has grown fast and is now one of India's most successful businesses.
Even seasoned business owners and entrepreneurs are curious about how it operates and how
it makes enormous profits despite giving tempting discounts.

Zomato's major function is to recommend local and neighbouring eateries to users and to take
orders from them. Users may place orders from their preferred restaurant based on previous
customers' ratings and feedback. Perhaps this is why a growing number of entrepreneurs want
to create a Zomato-like app. It provides users with convenience and assists business owners
in taking their local food company to new heights. The functioning flow of Zomato is
straightforward; let's examine how customers may have a wonderful dinner in only a few
minutes.

1) It allows customers to utilize a website or a mobile app to search through a list of

restaurants and choose their favorite dishes from their favorite cuisines.

2) Zomato is a fantastic tool for restaurants to increase their market visibility and customer
base.

3) By scanning through the community on the channels, users may find unique offers and
bargains.

4) Once customers have chosen their order, Zomato allows them to pay in a variety of ways.

5) The Zomato delivery team receives the request directly. After that, he travels to a certain
eatery.

6) After that, the restaurant validates the order and packs it according to the specifications.

7) The final stage is for Zomato delivery employees to pick up the parcel from the restaurant
and deliver it to the user.
8) In the meanwhile, Zomato allows restaurants to showcase and advertise their cuisines to a
large customer base. Zomato also charges restaurants for highlighted listings.

9) Zomato is a dependable partner for restaurants looking to extend their reach and
consumers through online branding.

10) It has formed partnerships with virtually all of the city's eateries, allowing it to provide a
wide range of culinary options to its customers.

11) Zomato has developed a ranking system that ranks restaurants based on their ratings and
reviews. Clients give restaurants ratings based on the quality of the cuisine, the ambience,
and their overall experience.

12) Its technology improves the customer experience by informing them of the distance
between a certain location and their location, the average meal price, and the delivery fee and
duration for the wait.

Main activities of the company includes

 Forming partnerships with eateries and retail establishments.

 Recruiting suppliers and service providers (full-time, part-time, and freelance).
 Obtaining clients and taking care of their requests.
 Managing the shipping and billing processes.
 Management of functional operations.
 Upgrades to the system and the development of IT infrastructure.
 Answering inquiries and concerns from customers and the firm.
Since 2008, Zomato has been steadily increasing. Its rising graphs and timeline of success are
the consequence of a well-thought-out business plan and a promising income generating
approach. Here's an illustration of how it works:
Friom the above figure we can see that the penetration of Zomato is greater than other food
delivering companies such as Swiggy, Uber eats etc. Zomato’s business model is more
effective than others and more customers has been attracted towards their process and
service. They feel more convenient in ordering food from Zomato than any others. All of the
mechanisms, planning, and decision-making that assure a seamless delivery of a product or
service are referred to as processes. The following are some of the variables that are included:

 Process design; Blueprinting (or flowcharting): allows marketers to discover

bottlenecks and consumer interaction points.
 Choosing between uniformity and customization;
 Locating key occurrences, fail-points, and system failures
 Monitoring and tracking the performance of the service;
 determining resource requirements and allocating resources;
 Developing and assessing key performance indicators (KPIs);
 Keeping in conformity with the rules;
 Manuals for operations are being written.
PLACE
Zomato had a presence in 38 Indian cities at the start of 2018. It's just been six months, but
the number has risen significantly. Today, Zomato announced its expansion into 25 additional
cities across India. The restaurant listings and ratings website is now available in 63 locations
throughout the country, with meal ordering available in 17 of them.

The newly launched cities include

● Trivandrum
● Vijayawada
● Raipur
● Madurai
● Jodhpur
● Thrissur
● Ajmer
● Manali
● Alappuzha
● Gorakhpur
● Ooty
● Kota
● Manipal
● Dharamshala
● Jammu
● Haridwar
● Jalandhar
● Rishikesh
● Mussoorie
● Udupi
● Cuttack
● Shimla
● Palakkad
● Pushkar
● Srinagar
Zomato’s major strategy towards market penetration was through trial and error method,
starting off with the Review system in place for each city in which they got the traction of
users. The company targeted Tier 1 cities at first and then later moved onto Tier 2 and Tier 3
cities consciously monitoring the growth and revenue.

As we have seen the

above graph that
shows the growth of
online ordering has
been increasing
rapidly over the
years effectively in
all locations.
Location of purchase

The solution which was implemented by the company was from door to door which made it
an hassle free experience altogether.

Open App

Choose from Various Restaurants

Select the Food required

Address

Payment Details

Get the Food delivered

Ease of transaction

Payment modes have been made simpler, and transactions of goods have become easier by
the communication through the App which was developed which is an end-end solution
which makes it easy to use User Interface.
PROMOTION

People between the ages of 18 and 35 who have access to smartphones and are familiar with
using applications are Zomato's target demographic. It caters to two types of customers: those
who want to order meals and have it delivered to their homes, and those who prefer to dine
out. In many situations, these groupings cross across. It provides meal delivery for
individuals who require it, as well as rewards for diners through its Zomato Gold programme.

Working professionals who require food at their offices, students who require food in their
hostels, those who do not have the time or room to prepare their own meals, and people who
enjoy eating out on occasion all fall into this category, a part of Zomato’s target audience.
These are the several Promotional activities constructed theoretically which is used by
companies based on their requirement and their target audience

Zomato is regarded as being one of the few businesses to achieve content marketing success.
The extensive use of pictures to advertise their products is one of their content marketing
strategies, if not the major approach.

These items have been praised for providing pure enjoyment. In other words, pictures play an
essential role in promotion. However, one must select the correct image rather than simply
any image. There isn't a single image on Zomato that doesn't make you grin. As a result, I
will continue to wait for them to post something fresh.

Zomato's material is constantly updated, with the same message being conveyed in new
ways. Zomato has therefore done more than preach about being unique; it has actually
demonstrated it.

The corporation has put a lot of money into SEO and small businesses. The usage of social
media to promote Zomato has also played a significant part in the company's success. Their
social media postings are always basic business jargons that aid to attract various audience
groups. All of their articles and advertisements demonstrate that the firm stays true to its
specialty and knows exactly who it is marketing to.

Advertising
Zomato creates URLs for websites based on the most popular terms in their area. This tells
the search engine that the pages are relevant to the user's inquiry. This is a fantastic strategy
for securing the ranking of your website.

Public Relations

The border dispute between the United States and Mexico is well-known in the United States
and across the world. Newly elected President Donald Trump pledged that Mexico will build
and pay for the border wall between the two countries.

Zomato, on the other hand, had other ideas. Food was a hot subject at the time. This post
would have gotten a lot of attention from “taco lovers.” Such messages create an effect on the
audience on social media.

Comparisons- Zomato is a specialist at using this type of interaction. There are a plethora of
instances that demonstrate how Zomato has conducted comparisons.
These are the two groups of individuals who eat.

Those who eat a lot and still never get fat vs others who eat less and still can’t seem to stay in
shape.

Girls tend to check the name of the dish and decide what to eat, while guys usually look at the
price of each dish before selecting it.