Minor Project Report - I

On

COMPARATIVE STUDY OF CONSUMER PREFERNCES TOWARDS FOOD

DELIVERY INDUSTRY WITH RESPECT TO SWIGY AND ZOMATO

Submitted in Partial Fulfillment for the Award of the

Degree of BBA 2021-2024

Under the Guidance of: Submitted By:

Mr. Inderpal Name of the Student: ISHITA GUPTA
Professor University Enrollment No.07461101721

Maharaja Agrasen Institute of Management Studies (14, Bold)

(A unit of Maharaja Agrasen Technical Education Society)
Affiliated to GGSIP University; Recognized u/s 2(f) of UGC
Recognized by Bar Council of India; ISO 9001 : 2015 Certified Institution
Maharaja Agrasen Chowk, Sector 22, Rohini, Delhi-110086

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 CERTIFICATE FROM THE INSTITUTE GUIDE

This is to certify that the minor project titled “COMPARATIVE STUDY OF CONSUMER
PREFERNCES TOWARDS FOOD DELIVERY INDUSTRY WITH RESPECT TO SWIGY AND
ZOMATO” is an academic work done by “ISHITA GUPTA (07461101721)” submitted in the partial
fulfillment of the requirement for the award of the degree of BBA at Maharaja Agrasen Institute of
Management Studies, Delhi, under my guidance & direction.

To the best of my knowledge and belief the data & information presented by him/her in the project

has not been submitted earlier.

Signature :

Name of the Guide : Mr. Inderpal

Designation : Professor

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 STUDENT DECLARATION

This is to certify that I have completed the Minor Project report titled” (title of the project)” under

the guidance of “(name of the guide)” in partial fulfillment of the requirement for the award of

Degree of BBA at Maharaja Agrasen Institute of Management Studies, Delhi. This is an original

piece of work & I have not submitted it earlier elsewhere.

Date: Signature:
Place: Name: ISHITA GUPTA

University Enrollment No.:07461101721

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 INDEX

Title Page I

Certificate II

Declaration III

Table of Contents

Chapter 1 Introduction to the Company & Industry Page No. 1-13

Chapter 2 Introduction to the topic Page No. 14-24

Chapter 3 Research Methodology Page No. 25-30

Chapter 4 Data Analysis & Interpretation Page No. 31-52

Chapter 5 Findings & Observations Page No. 53-55

Chapter 6 Suggestions & Conclusion Page No. 56-58

References & Bibliograpy

Annexure – Questionnaire
 CHAPTER 1:
INTRODUCTION TO THE
COMPANY AND
INDUSTRY

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In this report I have attempted to compare consumer behavior and preferences with
respect to Swiggy with Zomato.

Instant noodles or last night’s leftovers? What for? There’s no doubt that food tech
startups have transformed the way urban India eats. All you need to do is whip out
your phone and order what you like from platforms like Swiggy, Zomato. Grocery
shopping, meal planning and cooking is now considered a chore by a good proportion
of the growing Indian middle class, causing a surge in demand for services that free
them of such inconveniences.

Swiggy was founded by Sriharsha Majety, Rahul Jaimini and Nandan Reddy in
December, 2013 in Bangalore and became operational in FY 2014-15. The online
food-ordering and delivery start-up is owned and operated by Bundl Technologies
Private Limited.

Zomato was founded in 2008 by Deepinder Goyal and is one of India’s largest
restaurant guides, listing over 42,000 restaurants across 12 cities in the country Only
in April 2015, the company ventured into food delivering in NCR and in a month
unbundled the feature and launched a separate app- Zomato Order.

The report consists of the aims and objectives behind preparing it. A review of Swiggy
and Zomato has been given in order to understand the companies and the consumer
behavior and preferences of both the companies.

Then, questionnaires were distributed to 50 people aged 15 and above. Their takes and
opinions on both the companies were taken and an analysis was prepared on it,
followed by interpretation.

Finally, a conclusion has been given describing how both the companies have
fared up till now, their integrations with other companies, and their plans for future
and which company has been leading the charts till now.

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SWIGGY

SWIGGY INTRODUCTION:

Swiggy is a food ordering and Delivery Company based out of Bangalore, India.
Swiggy was inspired by the thought of providing a complete food ordering and
delivery solution from the best neighborhood restaurants to the urban foodie. It came
forth into the bustling 21st century world to grant every foodie within its reach, a
seamless dining experience, while adding the luxury of indulging from the comfort of
one’s couch. It has its own exclusive fleet of delivery personnel to pick up orders from
restaurants and deliver it to customers. Having its own fleet gives them the flexibility
to offer customers a no minimum order policy on any restaurant and accept online
payments for all partner restaurants that it works with. Their delivery personnel carry
one order at a time which ensures that customers get reliable and fast deliveries.

SWIGGY FOUNDERS:

Swiggy was founded by Nandan Reddy (MSc Physics Hons. from BITS Pilani
with a penchant for great food and operational efficiency), Sriharsha Majety (IIM
Calcutta & BITS Pilani alumnus, with a vision to revolutionize the restaurant
industry in India, by familiarizing the general public with the comfort of home-
delivered food), and co-founded by Rahul Jaimini (IIT-KGP alumnus and chief
technical officer) in 2013.

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SWIGGY TAGLINE:

‘Swiggy Karo, Phir Jo Chahe Karo!’

SWIGGY MISSION:

SWIGGY JOURNEY:

Swiggy began its Journey from Bengaluru with six delivery executives and 25
restaurants on its platform. In the time of 3 years, it has scaled up with over 6,000
delivery executives across India in more than 8 cities like Delhi-NCR, Mumbai,
Bengaluru, Hyderabad, Chennai, Kolkata, and Pune.

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SWIGGY BUSINESS MODEL:

The business model canvas of Swiggy is based on a hyperlocal on-demand food

delivery business operation. Working as a bridge between restaurants and
customers, Swiggy utilizes an innovative technology platform that works as a
single point of contact. Their app allows urban foodies to order food from
nearby restaurants and get it delivered at their doorstep. A broad list of
restaurants and their menus with prices are exhibited in the app to choose and
order from. Apart from accumulating restaurants, Swiggy also has its own fleet
of delivery partners. They pick up orders from partner restaurants and deliver it
on-demand in less than 30 minutes. Because Swiggy operates as a dual-
partnership model, it also benefits restaurants that can receive more orders from
customers using their own Swiggy app. Once the order is placed, they will know
the order details, prepare the order and deliver it to Swiggy drivers. This way,
restaurants don’t need to use their own delivery personnel, saving costs and
efforts. All the Swiggy drivers in the vicinity receive a broadcast signal on their
own Swiggy drive app when the order is placed. After they accept the order,
they deliver it right on the customer’s doorsteps.

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SWIGGY FUNDING:

Swiggy is backed by one of best investors available in the market. Swiggy has
raised a total of 2.9 billion dollars in funding from various investors, including
Bessemer Venture Partners, Norwest Venture, Accel Partners, SAIF Partners,
Harmony Venture Partners, RB Investments and Apoletto.

SWIGGY MARKETING STRATEGIES:

Swiggy’s marketing strategy consists of both online and offline marketing

campaigns. It promotes its campaigns via Facebook, Twitter, YouTube,
Pinterest, and Instagram. Some of its campaigns include # Secondtomom,
#DiwaliGharAayi, #SingwithSwiggy and know your food series of pictures and
food walks in a local area. The company has successfully built its brand
awareness and connects with its audience through these channels. Swiggy uses
its Social media not only for campaigning but to engage with its customers from
solving the grievances to taking the feedback.

SWIGGY COMPETETORS:

Indian food delivery market is valued at 15 billion dollars and set for an
exponential growth. Food delivery has become a very competitive market in
India. Swiggy is in direct competition with major on- demand food aggregators
like Zomato. Whereas there are other small startups like Foodpanda and Faasos
also in the competition.

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SWIGGY SWOT ANALYSIS:

STRENGTHS
1. Quick Delivery.
2. Good Brand Image.
3. Trained Delivery personnel.
4. Responsive customer support.
5. Wide range of restaurants offered.
6. Wide range of restaurants for maximum customer satisfaction with a
variety of foods and beverages.
7. Free delivery in some cities.

WEKNESSES

1. Location based restaurant finder.

2. Low marketing, branding awareness.
3. Delivery charge for orders below Rs.250.
4. Menu and app price may vary.
5. One can order from Swiggy only from restaurants within one's vicinity.
6. Technical problems in application.

OPPORTUNITIES
1. Pioneer in food delivery business.
2. Growing market.
3. Increasing market share.
4. Minimal Competition.
5. Lack of market leader.
6. Cost effective and provides good quality of food delivery options which are
lacking in the market.

THREATS

1. Unstable and low customer base.

2. Increase in health consciousness.
3. Increase potential competition.
4. Laws and government regulation
5. Since the number of competitors is less, Swiggy is negligent towards their
growing numbers.

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ZOMATO

ZOMATO INTRODUCTION:

Zomato is a restaurant search and discovery and food ordering and delivery
service founded in 2008. It currently operates in 23 countries, including India.
The service began as "Foodiebay". In November 2010, Foodiebay was renamed
as Zomato. Its parent company is Info Edge. It provides information and reviews
on restaurants, including images of menus where the restaurant does not have
its own website. Their mission is to ensure that nobody has a bad meal. They do
it by helping people discover great places around them. Its team gathers
information from every restaurant on a regular basis to ensure our data is fresh.
Another factor is to build amazing experiences around dining. And lastly by
enabling restaurants to create amazing experiences, to spend more time focusing
on food itself, which translates directly to better dining experiences with
dedicated engagement and management tools.

ZOMATO FOUNDER:
Zomato was started in 2008 by Mr. Deepinder Goyal (IIT- Delhi Alumni).

ZOMATO TAGLINE:

 Never have a bad meal

 Every meal matters

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  Shaping the future of food

ZOMATO BUSINESS MODEL:

 Restaurant Listings/Advertisings

In its first avatar, Zomato was just a listing platform and a restaurant
directory. This brought in advertising revenues from restaurants who
joined the platform. Extending this further after the launch of food
delivery and restaurant reservations, Zomato now charges commissions
from restaurants to be placed prominently on the feed. Restaurants can
pay to have their events or offers promoted as well as their overall banner,
which brings improved visibility and conversions from Zomato users.

 Food Delivery

To begin with, through its food delivery business, Zomato charges a

commission to the restaurants on the basis of orders. While users pay a
delivery fee, Zomato earns through restaurants who pay a commission for
each delivery, which is then split among the delivery partner and the
company. Commissions from restaurants vary based on whether Zomato
is fulfilling the delivery or whether the restaurant uses its own riders. This
is said to contribute in a small way to the company’s total income due to
huge competition and need for deep discounts etc.

 Subscription Programmes

With Zomato Gold for consumers and users, and subscription solutions
for restaurants, Zomato opened up a steady stream of revenue. While
users pay a subscription fee to access the Zomato Gold loyalty programme
which brings exclusive offers, restaurants also pay a monthly fee to be
part of Zomato’s bouquet of offers. Restaurants also pay Zomato a
monthly fee for miscellaneous services such as live tracking, Zomato-

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 branded tamper-proof packaging and more.

 Live Events

With Zomaland, Zomato entered the branded live events market last year.
Zomato charges users an entry fee to attend Zomaland, where besides
food, they can witness live musical performances and other acts. In 2018,
it had organised the entertainment carnival in Delhi, Pune, and Bengaluru,
where Zomato claimed over 100K people showed up. This year,
Zomaland is going to Pune, Delhi, Bangalore, Hyderabad, Mumbai,
Jaipur, Pune, Chandigarh, and Kolkata.

 White Label Access

Zomato also enables services such as Zomato White label under which
they give offers to the restaurants to develop a customized food delivery
app. It also works with cloud kitchens and restaurants for consultancy
services. Zomato works with select restaurant operators to help in
identifying locations for expansions at a minimal fixed cost, but with
increased options for the user. It provides the requisite licenses and
operational enablement for such restaurant partners.

 Zomato Kitchens

In order to be able to provide kitchen infrastructure services to select

restaurant operators, Zomato works with entrepreneurs to set up and
operate Zomato Kitchens under different labels. This helps entrepreneurs
fund restaurants in the right location with an investment of INR 35 Lakh
and more. Zomato claims it offers returns in the range of INR 2 Lakh to
INR 4 Lakh per month to the investors, with 180+ affiliate kitchens
already up and running.

ZOMATO STRATERGY:

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Zomato works with keen interest on various strategies to achieve their goal. It
includes

● Financial strategy: To increase their fund and revenue

● Marketing strategy: To tap their customers from across the globe
● Growth strategy: To grow continuously and increase their
customers and page traffic
● Globalization strategy: To expand themselves across the whole globe
as a leading service provider.
Deepinder Goyal, Co-founder and CEO, Zomato, earlier told
YourStorythat issues like changing rules, number of licenses required,
high real-estate costs, and problems with training and retaining staff are
issues that have traditionally plagued the food industry. They’re
something tech can’t really solve.

ZOMATO COMPETETORS:

Dineout: It is one of the zomato's top rivals. Dineout is a private company that
was founded in 2011 in New Delhi. Dineout competes in the application
software industry. Compared to Zomato it has 1,230 more employees. Burrp: It
is local food and restaurant recommendation engine. Search within more than
50,000 restaurant. Whereas there are other small startups like Foodpanda and
Faasos also in the competition.

ZOMATO SUCCESS FACTOR:

 First mover advantage

 Strong content platform

 Efficient employees

 Good rating mechanism and social platform

 Funding from experienced source

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ZOMATO SWOT ANALYSIS:

STRENGHTS
1. Unique ideas for each new entrant.
2. It is the first mover in many of the nations where it is establishing itself.
3. Fast Expansion.
4. Fantastic design of the app.
5. The brand has a very focused approach and has always tried to bring the most of
out of its unique offering
6. Users perceive Zomato as ‘Specialty product’ (Focused only on foods &
restaurants)
7. High awareness
8. Global presence - 25 countries
9. Superior technology and strong workforce.
10. Simple and user-friendly interface
11. Strong brand recognition and has won several accolades and awards.
12. Asset less business model
13. High financial leverage due to its business model
14. Aggressive and Innovative marketing strategy.

WEAKNESSES
1. Security issues for the app
2. Still a lot of expansion required
3. Besides such apps, in many places word of mouth still trumps apps and at the
same time, Facebook check-ins are a strong competitor wherein people might not
need Zomato.
4. Competition from search engines & other similar apps means limited growth.
5. Drastic growth means susceptible to bad content.
6. High staff turnover
7. Work Inefficiency
8. Not customized for each target market.

OPPORTUNITIES
1. More acquisitions
2. Cloud restaurants
3. Opportunity to expand to further more countries.
4. Increasing internet penetration & number of smartphone users.
5. Rapid and newer technology development can help Zomato expand and increase
efficiency.

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THREATS

1. Large number of competitors

2. Presence of large established players with substantial market shares.
3. Lack of proper tip ups as it is a costly process.
4. Lack of clear rules and regulations - Changes in government policy can easily
affect the business model.
5. Business model can be easily imitated by other players.

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 CHAPTER 2:
INTRODUCTION TO THE
TOPIC

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What is consumer behavior?

Consumer behaviour can be defined as the study of psychological, physical and

social actions when individuals buy, use and dispose of products, services, ideas,
and practices. In other words, consumer behaviour is the study of how consumers
will make their buying decision and what those factors which support or influence
these decisions.

According to marketers, by understanding the compelling reason for which a

consumer buys a particular product or service over the other, it becomes easier to
identify which product is in demand and which is obsolete so that marketing
strategies can be designed accordingly.

In marketing, understanding consumer behaviour has become very important for

businesses. Consumer behaviour refers to the study which analyses how
consumers make decisions about their wants, needs, buying or act with respect to
a product, service or organization. It is very critical to understand the behaviour
of consumers to analyze the behaviour of potential consumers towards a new
product or service. It is also very useful for companies to identify opportunities
which have not yet been met.

On the other side, those companies which failed in monitoring consumer

behaviour could not manage to fill this void in the marketplace and were left
behind. Understanding the behaviour of consumers allows pro-active companies
to increase their market share through anticipating the shift within the consumer
choice.

This study aims at the behaviour of customers towards online food delivery
platforms that are fast changing the food retailing landscape across India. Hence,
the study focuses on exploring the drivers of consumer behaviour towards online
food delivery apps.

There are various factors governing the customer or the consumers’ preferences
and behavior towards these food delivery platforms.

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1. Psychological Factors
The Psychological Factors are the factors that talk about the
psychology of an individual that drive his actions to seek satisfaction.
Some of the important Psychological Factors are:

 Motivation: The level of motivation influences the buying behavior of the

consumers. It is very well explained by Maslow through his need hierarchy theory
comprising of basic needs, security needs, social needs, esteem needs and self-

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 actualization needs. Usually, the basic needs and the security needs are more
pressing needs than the other and hence, these needs become a motive that directs
the consumer behavior to seek satisfaction.

 Perception: The consumer perception towards a particular product and

the brand also influences his buying decision. The perception is the
process through which the individual selects, organize and interpret the
information to draw a meaningful conclusion. Such as, Apple iPhone is
perceived as a premium brand and consumers are motivated to buy it to
get associated with the elite class of the society.

 Learning: The individual’s learning depends on the skills, knowledge

and intention. The skills are developed through practice while the
knowledge and intention are acquired with the experience. There could
be a conditional learning or a cognitive learning.
 Attitudes and Beliefs: The individuals have certain beliefs and attitudes towards
products on which their purchase decisions rests. These attitudes and beliefs are
the tendency to respond to a given product in a particular way, and these make up
the brand image that influences the consumer buying behavior. Thus, the
marketers try to understand the attitudes and beliefs of the individuals and modify
these through several marketing campaigns.

2. Social Factors

The Social Factors are the factors that are prevalent in the society where
a consumer live in. The society is composed of several individuals that
have different preferences and behaviors. These varied behaviors
influence the personal preferences of the other set of individuals as they
tend to perform those activities which are acceptable to the society. The
following are the important social factors that influence the behavior of an
individual in one or the other way:

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 Family: The family members play a crucial role in designing one’s
preferences and behavior. It offers an environment wherein the individual
evolves, develop personality and acquire values. A child develops his
buying behavior and preferences by watching his parents and tend to buy
the same products or services even when he grows old.

 Reference Group: A reference group is a group with which an individual

likes to get associated, i.e. want to be called as a member of that group. It
is observed, that all the members of the reference group share common
buying behavior and have a strong influence over each other. The
marketers should try to identify the roles within the reference group that
influences the behavior of others. Such as Initiator (who initiates the
buying decision), Influencer (whose opinion influences the buying
decision), Decision-Maker (who has the authority to take the purchase
decision) and Buyer (who ultimately buys the product).

 Roles and Status: An individual’s position and role in the society also
influences his buying behavior. Such as, a person holding a supreme
position in the organization is expected to purchase those items that
advocate his status. The marketers should try to understand the
individual’s position and the role very much before the endorsement of the
products.

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3. Economic Factors

The Economic Factors are the factors that talk about the level of sales in
the market and the financial position of the consumer, i.e. how much an
individual spends on the purchase of goods and services that contribute to
the overall sales of the company. The following are the main economic
factors that greatly influence the consumer buying behavior:

 Personal Income: The personal income of an individual influences his buying

behavior as it determines the level to which the amount is spent on the purchase
of goods and services. The consumer has two types of personal incomes
disposable income and discretionary income. The disposable personal income is
the income left in hand after all the taxes, and other necessary payments have
been made. The more the disposable personal income in hand the more is the
expenditure on various items and vice-versa. The discretionary personal income is
the income left after meeting all the basic necessities of life and is used for the
purchase of the shopping goods, luxuries, durable goods, etc. An increase in the
discretionary income results in more expenditure on the shopping goods through
which the standard of living of an individual gets improved.

 Family Income: The family income refers to the aggregate of the sum of the
income of all the family members. The total family income also influences the
buying behaviors of its members. The income remaining after meeting all the
basic necessities of life can be used for the purchase of shopping goods, luxury
items, durable goods, etc.

 Income Expectations: An Individual’s expectation with respect to his income

level in the future influences his buying behavior today. Such as, if a person
expects his income to increase in the future, then he will spend more money on
the purchase of the luxury goods, durables and shopping goods. And on the
contrary, if he expects his income to fall in the future his expenditure on such
items also reduces.

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Apart from these factors other economic conditions such as inflation, recession,
business cycles, etc. also influences the consumer buying behavior.

4. Personal Factors

The Personal Factors are the individual factors to the consumers that
strongly influences their buying behaviors. These factors vary from person
to person that results in a different set of perceptions, attitudes and
behavior towards certain goods and services. Some of the important
personal factors are:

 Age: The consumer buying behavior is greatly influenced by his age, i.e.
the life cycle stage in which he falls. The people buy different products in
different stages of the life cycle. Such as the purchase of confectionaries,
chocolates is more when an individual is a child and as he grows his
preferences for the products also changes.

 Income: The income of the person influences his buying patterns. The
income decides the purchasing power of an individual and thus, the more
the personal income, the more will be the expenditure on other items and
vice-versa.

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  Occupation: The occupation of the individual also influences his buying
behavior. The people tend to buy those products and services that
advocate their profession and role in the society. For example, the buying
patterns of the lawyer will be different from the other groups of people
such as doctor, teacher, businessman, etc.

 Lifestyle: The consumer buying behavior is influenced by his lifestyle.

The lifestyle means individual’s interest, values, opinions and activities
that reflect the manner in which he lives in the society. Such as, if the
person has a healthy lifestyle then he will avoid the junk food and
consume more of organic products.

These are some of the personal factors that influence the individual’s buying
behavior, and the marketer is required to study all these carefully before
designing the marketing campaign.

5. Cultural Factors

The Cultural Factors are the factors that an individual learns at a very early
stage of life due to socialization within the family and other key institutions, such
as the set of values, preferences, behavior patterns, and perceptions are learned
as the individual grows. Some of the important cultural factors are:

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 Culture: The culture refers to the beliefs, customs, rituals and practice
that a particular group of people follows. As a child grows, he inculcates
the buying and decision-making patterns through his family and the key
institutions. The culture varies from region to region and even from country
to country. Such as the sale of “sarees” and “Lungis” is more in South than
the North India. Therefore, the marketer should carefully study all the
different cultures and frame the marketing strategies accordingly.

 Subculture: The culture can be further divided into subculture wherein the
people are classified more specifically on the basis of their shared
customs and beliefs, including religions, geographic regions, nationalities,
etc. The different sub-cultures forms several market segments whose
needs can be carefully studied by the marketer, and the strategic
marketing decisions can be taken accordingly. Such as the needs of the
people living in metro cities and the ones living in B-grade cities must be
identified before the launch of the marketing campaign.

 Social Class: The social class to which an individual belongs influences

the buying decision. Generally, the people belonging to the same class
are said to be sharing the similar interest, value and the behavior. Our
society is classified into three social classes upper class, middle class,
and the lower class. The consumers belonging to these classes possess
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 different buying behaviors. Such as an individual belonging to the upper
class buy those products or services that advocate his status while the
lower class people buy those products which satisfy their basic needs.

These are some of the cultural factors that influence the individual buying
behavior due to his membership in the group where different customs, practices,
beliefs, and rituals are followed.

6. Consumer Preference

 On time delivery service: The food-tech duo take two different paths to
the same destination, but more often than not, find themselves crossing
each other. While swiggy only allows you to order food from the
restaurants near you and hence has makes deliveries within a short time
frame. On the other hand, zomato allows you to make orders from
restaurants which are not only located near you but also from the
restaurants that are a bit far away but in the city and hence the delivery
time services differ.

 Offers and promotions: Both the food delivery platforms provide their
customers with various deals, offers, coupon codes and other benefits.
These offers and promotions vary with respect to the restaurants that they
are tied-up with, different payment methods, offers through different banks
differ on both the platforms, and sometimes they have offers from their
side.

 Accessibility: In this consumer friendly market, the consumer feasibility

and accessibility has been of the significant importance. Therefore, the
food delivery app/website being consumer friendly and easily accessible
plays an important role in shaping consumer preference and behavior to
one particular app/website between the two.

 Customer service: delivering consistently excellent service to each and

every customer has been the goal of every business. It’s essential for

23
business owners to take care of their customers and cultivate positive
online relationships with loyal consumers to maintain their brand. Even if
they receive a few negative online reviews, this can diminish their effect
on their overall business by bolstering the amount of positive feedback
they have received.

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CHAPTER 3: RESEARCH
METHODOLOGY

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Objective of the Study
 Understanding different marketing strategies of two major
Indian players in the aggregator food-tech sector.

 Using quality tools to isolate reasons for growth and

development of these two particular companies.

 Developing a line of action in fields where there exists scope of

improvement.

 To examines the measures taken by these companies.

 To find out the public opinion about Swiggy and Zomato through data
research and analyse their results.

 To give a suitable conclusion as to which company is leading the market.

Scope of the Study

After a deep analysis and research, the study covers the following:

 Different marketing strategies and statistics of both the

company

 Finally draw a comparison in terms of marketing strategies

between them

Secondary data was collected from various sources such as different business websites
and published papers. A variety of quality tools have been applied to the problem of
interest. The study starts with a Marketing Insights Of both the companies that outlines
the features of both the giant food-tech market in India.

Meaning of Research Methodology

Research methodology is considered as the nerve of the project. Without a proper well-
organized research plan, it is impossible to complete the project and reach to any

26
conclusion. The project was based on the survey plan. The main objective of survey was
to collect appropriate data, which work as a base for drawing conclusion and getting
result.

Therefore, research methodology is the way to systematically solve the research

problem. Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method
has been used in the preference of the other methods.

Research Design

The research design refers to the overall strategy that is chosen to integrate the different
components of the study in a coherent and logical way, thereby, ensuring that the
research problem is effectively addressed. Research design is important primarily
because of the increased complexity in the market as well as marketing approaches
available to the researchers. In fact, it is the key to the evolution of successful marketing
strategies and programmers. It is an important tool to study buyer’s behavior,
consumption pattern, brand loyalty, and focus market changes. A research design
specifies the methods and procedures for conducting a particular study. According to
Kerlinger, “Research Design is a plan, conceptual structure, and strategy of investigation
conceived as to obtain answers to research questions and to control variance.

The type of research adopted for this study is descriptive research design with quantative
data analysis has been used and the results which came up are conclusive in nature.

Descriptive studies are undertaken in many circumstances when the researches is

interested to know the characteristic of certain group such as age, sex, education level,
occupation or income. A descriptive study may be necessary in cases when a researcher
is interested in knowing the proportion of people in a given population who have in
particular manner, making projections of a certain thing, or determining the relationship
between two or more variables. The objective of such study is to answer the “who, what,
when, where and how” of the subject under investigation. There is a general feeling that
descriptive studies are factual and very simple. This is not necessarily true. Descriptive
study can be complex, demanding a high degree of scientific skill on part of the
27
researcher.

Descriptive studies are well structured. An exploratory study needs to be flexible in its
approach, but a descriptive study in contrast tends to be rigid and its approach cannot be
changed every now and then. It is therefore necessary, the researcher gives sufficient
thought to framing research.

Questions and deciding the types of data to be collected and the procedure to be used in
this purpose. Descriptive studies can be divided into two broad categories: Cross
Sectional and Longitudinal Sectional.
A cross sectional study is concerned with a sample of elements from a given population.
Thus, it may deal with household, dealers, retail stores, or other entities. Data on a
number of characteristics from sample elements are collected and analyzed. Cross
sectional studies are of two types: Field study and Survey. Although the distinction
between them is not clear- cut, there are some practical differences, which need different
techniques and skills. Field studies are ex-post-factor scientific inquiries that aim at
finding the relations and interrelations among variables in a real setting. Such studies
are done in live situations like communities, schools, factories, and organizations.

Another type of cross-sectional study is survey result, which has been taken by me. A
major strength of survey research is its wide scope. Detail information can be obtained
from a sample of large population. Besides; it is economical as more information can be
collected per unit of cost. In addition, it is obvious that a sample survey needs less time
than a census inquiry. Descriptive research includes survey and fact-finding enquiries
of different kinds of the major purpose. Descriptive research is description of the state
of affairs, as it exists at present. The main characteristic of this method is that the
researcher has no control over the variables; he can only report what has happened or
what is happening. The methods of research utilized in descriptive research are survey
methods of all kinds including comparative and co relational methods. The reason for
using such needs to be flexible in its approach, but a descriptive study in contrast tends
to be rigid and its approach cannot be changed every now and then.

28
Sample Size

50 respondents who were mostly aged from 15 years to 25 years.

Data Collection/ Data Sources

After the research problem, we have to identify and select which type of data is to
research. At this stage; we have to organize a field survey to collect the data. One of the
important tools for conducting market research is the availability of necessary and useful
data.

Primary data collection:

It is the type of data collection methods that I have used to conduct my study.
Primary data is the type of data that has not been around before. Primary data is unique
findings of your research. Primary data collection and analysis typically requires more
time and effort to conduct compared to the secondary data research. Primary data
collection methods can be divided into two groups: quantitative and qualitative.

Quantitative data collection are based on mathematical calculations in various formats.

Methods of quantitative data collection and analysis include questionnaires with closed-
ended questions, methods of correlation and regression, mean, mode and median and
others.
Qualitative data collection method is closely associated with words, sounds, feeling,
emotions, colours and other elements that are non-quantifiable. Qualitative studies aim
to ensure greater level of depth of understanding and qualitative data collection methods
include interviews, questionnaires with open-ended questions, focus groups,
observation, game or role-playing, case studies etc.

This study adopted quantitative research with primary data collected through a
questionnaire with online food delivery platforms’ customers based on their
knowledge, attitudes, perspectives, and needs of online food delivery services.
The research also examined the growth of food aggregator industry.

29
QUESTIONNAIRE:

This is the most popular tool for the data collection. A questionnaire contains question
that the researcher wishes to ask his respondents which is always guided by the objective
of the survey.

30
CHAPTER 4: DATA
ANALYSIS AND
INTERPRETATION

31
QUESTION 1: WHICH AGE GROUP DO YOU BELONG TO?

BELOW 15 4.3%

15-20 51.4%

20-30 34.3%

30-40 7.1%

ABOVE 40 2.9%
TABLE 4.1 PERCENTAGE OF PEOPLE ORDERING FROM ONLINE FOOD
DELIVERY APPS IN DIFFERENT AGE GROUPS

FIGURE 4.1

In conclusion to this I would like to state that the major proportion from my data appeared
to be the one with the age group of 15-20, which includes the youngsters of the generation.
Food delivery apps are majorly used by the younger generation.

32
QUESTION 2: DO YOU ORDER FOOD ONLINE?

YES 94.3%
NO 5.6%
TABLE 4.2 PERCENTAGE OF PEOPLE WHO ARE ORDERING FOOD FROM
ONLINE FOOD DELIVERY APPS

FIGURE 4.2

By the data collected it can be concluded that the majority of the respondents uses the food
delivery app services, while there exists a very small section of the respondents, i.e. 5.6%,
that does not uses the food delivery app services.

33
QUESTION 3: IF YES, FROM WHICH COMPANY DO YOU
PREFER ORDERING YOUR FOOD FROM?

SWIGGY 38.6%

ZOMATO 55.7%

OTHERS 5.7%

TABLE 4.3 PERCENTAGE OF PEOPLE PREFERRING THESE ONLINE FOOD

DELIVERY APP

FIGURE 4.3

By the data collected it can be concluded that a major section of the respondents use
Zomato to order their food online through their online food delivery service in
comparison to the smaller section of respondents who order from Swiggy. There also
exists a small section of respondents who do not prefer to use any of the two food
delivery apps and use other food delivery apps.

34
QUESTION 4: HOW OFTEN DO YOU ORDER FOOD ONLINE?

DAILY 11.4%

WEEKLY 37.1%

FORTNIGHT 15.7%

MONTHLY 35.7%

TABLE 4.4 PERCENTAGE OF PEOPLE WHO OFTENELY ORDER FROM

THE FOOD DELIVERY APPS

FIGURE 4.4
By the data collected it can be concluded that most people order food online weekly and
monthly. A small section of the respondents order food online on fortnight basis and a
smaller section orders food online on daily basis.

35
QUESTION 5: WHICH MEAL YOU TYPICALLY ORDER FOR ON
THE FOOD DELIVERY APPS?

BREAKFAST 1.4%
LUNCH 14.3%

SNACKS 50%
DINNER 34.3%
TABLE 4.5 DIVISION OF PEOPLE BASED ON THE MEAL MOST ORDERED
ON A FOOD DELIVERY APP

FIGURE 4.5

By the data collected it can be concluded that half the respondents prefer to order online
food as snacks or evening meal. The other half of the data is divided into a considerable
section of respondents who order online food as dinner and a small section of them
ordering food online for lunch and a very small section of them ordering food online for
breakfast.

36
QUESTION 6: WHAT IS THE APPROXIMATE MONEY YOU
SPEND ON ORDERING FOOD ONLINE?

LESS THAN 200 5.7%

LESS THAN 350 31.4%

LESS THAN 500 50%

MORE THAN 500 12.9%

TABLE 4.6 PERCENTAGE OF PEOPLE SPENDING THE MAXIMUM MONEY
ON A FOOD ORDER

FIGURE 4.6

By the data collected it can be concluded that half the respondents prefer to spend less
than Rs 500 on their online food orders. While among the other half of the respondents, a
considerable section would spend less than Rs 350 on their online food orders and small
section of the remaining respondents would be willing to spend more than Rs 500 on
their online food orders and a very small section of the respondents spends less than Rs
200 on their online food orders.

37
QUESTION 7: WHY DO YOU PREFER ONLINE FOOD
DELIVERY?

FAST DELIVERY 30%

CONVENIENT 48.6%

TIME SAVING 32.9%

MONEY SAVING 15.7%

ALL OF THE ABOVE 38.6%

TABLE 4.7 PERCENTAGE OF THE REASON WHY PEOPLE PREFER TO
ORDER FOOD ONLINE

FIGURE 4.7

By the data collected it can be concluded that most people prefer to order food online
because it is convenient. Also a significant section of the respondents order food online
because of all the above mentioned reasons being money saving, time saving, convenient,
fast delivery.

38
QUESTION 8: HOW MUCH WOULD YOU RATE SWIGGY'S
QUALITY OF SERVICE?
1 0%
2 0%
3 1.4%
4 5.7%
5 14.3%
6 15.7%
7 18.6%
8 27.1%
9 11.4%
10 5.7%
TABLE 4.8 SWIGGY’S QUALITY OF SERVICE AS RATED BY CONSUMERS

FIGURE 4.8

By the data collected it can be concluded that the averaging rating given to Swiggy’s
quality of service by the respondents is 8.9 on a scale of 1 to 10.

39
QUESTION 9: HOW MUCH WOULD YOU RATE ZOMATO'S
QUALITY OF SERVICE?

1 0%
2 0%
3 0%
4 2.9%
5 11.4%
6 4.3%
7 27.1%
8 21.4%
9 27.1%
10 5.7%
TABLE 4.9 ZOMATO’S QUALITY OF SERVICE AS RATED BY CONSUMERS

FIGURE 4.9

By the data collected it can be concluded that the average rating given to Zomato’s
quality of service by the respondents is 9.6 on a scale of 1 to 10.

40
QUESTION 10: HOW MUCH WOULD YOU RATE SWIGGY'S
PACKAGING SERVICES?

1 0%
2 0%
3 2.9%
4 8.6%
5 7.1%
6 5.7%
7 15.7%
8 25.7%
9 27.1%
10 7.1%
TABLE 4.10 SWIGGY’S PACKAGING SERVICE AS RATED BY THE
CONSUMERS

FIGURE 4.10

By the data collected it can be concluded that the average rating given to Swiggy’s
packaging services is 9.4 on a scale of 1 to 10.

41
QUESTION 11: HOW MUCH WOULD YOU RATE ZOMATO'S
PACKAGING SERVICES?

1 0%
2 0%
3 0%
4 2.9%
5 5.7%
6 5.7%
7 25.7%
8 25.7%
9 30%
10 4.3%
TABLE 4.11 ZOMATO’S PACKAGING SERVICE AS RATED BY THE
CONSUMERS

FIGURE 4.11

By the data collected it can be concluded that the average rating given by the
respondents to Zomato’s packaging services is 9.8 on a scale of 1 to 10.

42
QUESTION 12: HOW MUCH WOULD YOU RATE SWIGGY'S
ACCESSIBILITY TO ORDER FOOD?

1 0%
2 0%
3 2.9%
4 5.7%
5 8.6%
6 11.4%
7 10%
8 22.9%
9 28.6%
10 10%
TABLE 4.12 SWIGGY’S ACCESSIBILITY TO ORDER FOOD AS RATED BY
THE CONSUMERS

FIGURE 4.12

By the data collected it can be concluded that the average rating given by the
respondents to Swiggy’s accessibility to order to food is 9.5 on a scale of 1 to 10.

43
QUESTION 13: HOW MUCH WOULD YOU RATE ZOMATO'S
ACCESSIBILITY TO ORDER FOOD?

1 0%
2 0%
3 0%
4 0%
5 7.1%
6 14.3%
7 18.6%
8 22.9%
9 21.4%
10 15.7%
TABLE 4.13 ZOMATO’S ACCESSIBILITY TO ORDER FOOD AS RATED BY
THE CONSUMERS

FIGURE 4.13

By the data collected it can be concluded that the average rating given by the
respondents to Zomato’s accessibility to order food is 9.9 on scale of 1 to 10.

44
QUESTION 14: HOW MUCH WOULD YOU RATE SWIGGY'S
BILLING PROCESS AND PAYMENT OPTIONS?

1 1.4%
2 0%
3 1.4%
4 12.9%
5 7.1%
6 11.4%
7 8.6%
8 22.9%
9 24.3%
10 10%
TABLE 4.14 SWIGGY’S BILLING PROCESS AND PAYMENT OPTIONS
SERVICES AS RATED BY THE CONSUMERS

FIGURE 4.14

By the data collected it can be concluded that the average rating given by the
respondents to Swiggy’s billing process and payment options is 9.2 on a scale of 1 to
10.

45
QUESTION 15: HOW MUCH WOULD YOU RATE ZOMATO'S
BILLING PROCESS AND PAYMENT OPTIONS?

1 0%
2 0%
3 0%
4 0%
5 12.95
6 11.4%
7 14.3%
8 25.7%
9 28.6%
10 7.1%
TABLE 4.15 ZOMATO’S BILLING PROCESS AND PAYMENT OPTIONS
SERVICES AS RATED BY THE CONSUMERS

FIGURE 4.15

By the data collected it can be concluded that the average rating given by the
respondents to the Zomato’s billing process an d payment options is 9.7 on a scale of 1
to 10.

46
QUESTION 16: HOW MUCH WOULD YOU RATE THE OFFERS
AND PROMOTIONS THAT ARE PROVIDED BY SWIGGY?

1 1.4%
2 1.4%
3 2.9%
4 10%
5 11.4%
6 7.1%
7 21.4%
8 17.1%
9 21.4%
10 5.7%
TABLE 4.16 OFFERS AND PROMOTIONS PROVIDED BY SWIGY AS RATED
BY THE CONSUMERS

FIGURE 4.16

By the data collected it can be concluded that the average rating given the respondents
to offers and promotions provided by Swiggy is 8.7 on a scale of 1 to 10.

47
QUESTION 17: HOW MUCH WOULD YOU RATE THE OFFERS
AND PROMOTIONS THAT ARE PROVIDED BY ZOMATO?

1 1.4%
2 1.4%
3 1.4%
4 4.3%
5 11.4%
6 4.3%
7 24.3%
8 22.9%
9 21.4%
10 7.1%
TABLE 4. 17 OFFERS AND PROMOTIONS PROVIDED BY ZOMATO AS
RATED BY THE CUSTOMERS

FIGURE 4.17

By the data collected it can be concluded that the average rating given by the
respondents to the offers and promotions provided by Zomato is 9.2 on a scale of 1 to
10.

48
QUESTION 18: HOW MUCH WOULD YOU RATE SWIGGY'S
CUSTOMER SERVICE?

1 2.9%
2 1.4%
3 5.7%
4 2.9%
5 11.4%
6 7.1%
7 8.6%
8 30%
9 18.6%
10 11.4%
TABLE 4.18 SWIGGY’S CUSTOMER SERVICES AS RATED BY THE
CUSTOMERS

FIGURE 4.18

By the data collected it can be concluded that the average rating given by the
respondents to Swiggy’s customer services is 9.1 on a scale of 1 to 10.

49
QUESTION 19: HOW MUCH WOULD YOU RATE ZOMATO'S
CUSTOMER SERVICE?

1 0%
2 0%
3 0%
4 2.9%
5 5.7%
6 8.6%
7 15.7%
8 37.1%
9 21.4%
10 8.6%
TABLE 4.19 ZOMATO’S CUSTOMER SERVICE AS RATED BY THE
CUSTOMERS

FIGURE 4.19

By the data collected it can be concluded that the average rating given by the
respondents to Zomato’s customer service is 9.8 on a scale of 1 to 10.

50
QUESTION 20: ACCORDING TO YOU, WHICH COMPANY HAS
MORE TIE-UPS WITH MOST RESTAURANTS?

SWIGGY
ZOMATO
TABLE 4.20 A COMPARISON BETWEEN THE FOOD DELIVERY APPS
BASED ON WHICH HAS MORE TIE-UPS

FIGURE 4.20

By the data collected it can be concluded that according to the respondents, Zomato has
more tie-ups with the most restaurants as compared to Swiggy.

51
QUESTION 21: WOULD YOU SUGGEST OTHERS TO BUY FOOD
ONLINE, IF YES THEN FROM WHICH COMPANY
APP/WEBSITE?

SWIGGY
ZOMATO
TABLE 4.21 PERCENTAGE OF PEOPLE THAT RECOMMEND SWIGGY VS.
ZOMATO

FIGURE 4.21

By the data collected it can be concluded that most of the respondents will suggest Zomato
for their food delivery services to other people and a lesser number of respondents will
suggest Swiggy for its services to other people.

52
CHAPTER 5: FINDINGS
AND OBSERVATIONS

53
FINDINGS AND OBSERVATIONS:

1. In conclusion to this I would like to state that the major proportion from my data
appeared to be the one with the age group of 15-20, which includes the youngsters of
the generation. Food delivery apps are majorly used by the younger generation.

2. By the data collected it can be concluded that the majority of the respondents uses the
food delivery app services, while there exists a very small section of the respondents,
i.e. 5.6%, that does not uses the food delivery app services.

3. By the data collected it can be concluded that a major section of the respondents use
Zomato to order their food online through their online food delivery service in
comparison to the smaller section of respondents who order from Swiggy. There also
exists a small section of respondents who do not prefer to use any of the two food
delivery apps and use other food delivery apps.

4. By the data collected it can be concluded that most people order food online weekly
and monthly. A small section of the respondents order food online on fortnight basis
and a smaller section orders food online on daily basis.

5. By the data collected it can be concluded that half the respondents prefer to order online
food as snacks or evening meal. The other half of the data is divided into a considerable
section of respondents who order online food as dinner and a small section of them
ordering food online for lunch and a very small section of them ordering food online
for breakfast.

6. By the data collected it can be concluded that half the respondents prefer to spend less
than Rs 500 on their online food orders. While among the other half of the respondents,
a considerable section would spend less than Rs 350 on their online food orders and
small section of the remaining respondents would be willing to spend more than Rs 500
on their online food orders and a very small section of the respondents spends less than
Rs 200 on their online food orders.

7. By the data collected it can be concluded that most people prefer to order food online
because it is convenient. Also a significant section of the respondents order food online
because of all the above mentioned reasons being money saving, time saving,
convenient, fast delivery.

8. By the data collected it can be concluded that Zomato has better quality of service as
compared to Swiggy as Zomato received 9.6 rating and Swiggy received 8.9 rating on
a scale of 1 to 10.

9. By the data collected it can be concluded that Zomato has packaging services as

54
 compared to Swiggy as Zomato received 9.8 rating and Swiggy received 9.4 rating on
a scale of 1 to 10.

10. By the data collected it can be concluded that Zomato has better accessibility to order
food as compared to Swiggy as Zomato received 9.9 rating and Swiggy received 9.5
rating on a scale of 1 to 10.

11. By the data collected it can be concluded that Zomato has better billing process and
payment options as compared to Swiggy as Zomato received 9.7 rating and Swiggy
received 9.2 rating on a scale of 1 to 10.

12. By the data collected it can be concluded that Zomato has better offers and promotions
as compared to Swiggy as Zomato received 9.2 rating and Swiggy received 8.7 rating
on a scale of 1 to 10.

13. By the data collected it can be concluded that Zomato has better customer service as
compared to Swiggy as Zomato received 9.8 rating and Swiggy received 9.1 rating on
a scale of 1 to 10.

14. By the data collected it can be concluded that according to the respondents, Zomato
has more tie-ups with the most restaurants as compared to Swiggy.

15. By the data collected it can be concluded that most of the respondents will suggest
Zomato for their food delivery services to other people and a lesser number of
respondents will suggest Swiggy for its services to other people.

55
 CHAPTER 6:
SUGGESTIONS AND
CONCLUSIONS

56
SUGGESTIONS:
1) The companies have to increase their quality more and also have to introduce
better services in the market to increase their market share.
2) Zomato has some more scope to increase its market share and it has to
strive for that.
3) Swiggy has to concentrate more on its services like accessibility to order food
and its quality of services to increase its market share and customer base.

CONCLUSIONS:

The online food ordering trend is sort of on a high in India, and with all that people would
love and want food delivered right to their doorstep, it sure is a delicious venture.
Although the online platforms providing the services are still in their budding stage but
that does not keep them from competing with each other. Swiggy and Zomato, came out
to be the top online food service platforms in 2016. The online food ordering business in
India is in its nascent stage, but witnessing exponential growth. The organized food
business in India is worth $48 billion, of which food delivery is valued at $15 billion.

Zomato was a ‘restaurant search and discovery app’ business and recently ventured into
food delivery. The company ventured into food delivering in NCR and in a month
unbundled the feature and launched a separate app- Zomato Order. There seems to be no
bounds shown by this venture in regard of its growth in the country.

Swiggy is surely making news adapting new ways to lead up to the charts. It is also
planning to set up kitchens jointly with restaurants as it looks for higher revenues. These
kitchens will function as production units without dine- in facilities and cater to demand
generated on Swiggy from surrounding localities.

The project was a great experience for me in order to study the marketing aspects in the
world. It was a great opportunity for me to express what I have studied.

This industry is a place where two major players are there in the world. The companies
Swiggy and Zomato gave me lot of opportunity and scope to understand the food
delivery industry and its marketing structure and distribution channels.

Lot of valuable information regarding the company, has been collected from the survey,
which helped me clearly to understand the real problems faced the companies.

57
The suggestions made to the company were really applicable for the growth and benefit
for the company in order to increase its market share and to become the market leader
in the soft drink industry, because a large number of competitors are craving for the
same market.

Thus, finally it can be said that the industry needs a lot of channel of management
activities to be done along with various promotional strategies for the customers. I wish
the company to achieve its objectives soon.

58
 REFERNCE AND BIBLIOGRAPHY
1. Kothari C.R. (2004). Research Methodology Methods and
Techniques, 2nd Edition. New Delhi. New Age International
Publication (P) ltd. Mary Bitner and Valarie Zeithaml (2010).
Services Marketing, 7th Edition

WEBSITE REFERENCES

1. www.swiggy.com

2. www.zomato.com

3. www.slideshare.net

4. https://www.clootrack.com/knowledge_base/major-factors-
influencing-consumer-behavior

5. https://www.globalscientificjournal.com/researchpaper/Consumer_
Behaviour_Towards_Food_Delivery_Apps.pdf

6. https://ijcrt.org/papers/IJCRT2003375.pdf

7. https://pdfcoffee.com/consumer-preference-towards-zomato-vs-
swiggy-pdf-free.html

8. www.wikipedia.com
ANNEXURE