Project Report

On

Customer feedback and Analysis of Online Food App

By

Amit Kumar Mitra

Anchal Khar
Amrita Sharma
Shipra Soni
Aman Shivhare

II Semester

Guided by
Mr. S.S Khullar

Project Report submitted to New Delhi Institute Of management in partial

fulfillment of the requirements of II Semester MBA examinations 2016-18

 Executive Summary

This Project was aimed towards the Customer feedback about Food Ordering
Apps.

Every individual was provided 3 localities to work upon and understanding the
consumer behavior and food ordering patterns.
The initial phase of project deals with the preparation of questionnaire for the
focus groups and then reaching out to them and making them fill the
questionnaire. The next phase involved various marketing strategies and SWOT
analysis.

Questionnaire was prepared based on certain parameters such as-

Age group
Lifestyle
Frequency of ordering food
Average amount spend per meal
Preferred cuisines
Entertainment preferences
Preferred restaurants.
 Chapter 1

Introduction

1.1 Introduction about the sector

Food delivery market in India worth over 12.5 billion, Online food delivery is
contributing more than 7% to this market. More than 50,000 restaurants in India
provides home delivery, indicates a very high potential and untapped market in
online food delivery space.

Players in the industry broadly classified into three categories---

o Fully integrated: Those who process food and delivers (Dominos,

McD etc)

o Delivery as a Service

o Aggregators: Provides a platform for customers where they could

discover restaurants, navigate through menus of different cuisines,
and select the food. Delivery made by the restaurant. In short,
aggregates information about food for customers and function as an
order generating channel for restaurants. (Swiggy, Zomato,
FoodPanda etc)

Reasons for growth in online food delivery industry:

o Increase in disposable income and deeper internet penetration of

customers (web/mobile).

o Restaurants tying up with online food delivery platforms claim to

get a profit margin of more than 2 to 3% than dine-ins.
These days people are prone to placing food orders online and capitalising this
trend a lot of restaurants are yielding good returns by registering themselves on
online ordering sites like Foodpanda, Tastykhana, JustEat, HyderabadSpecialetc
and many local ordering websites are also following suit.

Driving factors
Greater awareness and disposable income along with deeper Internet penetration, availability of
more payment options, long working hours and erratic lifestyle are contributing online food
ordering business. At the same time, with more and more people wanting healthy food, or food
similar to home cooked meals that too easy on the pockets is leading to the rise of online food
business in the country.
Nixon Dsouza, Brand Manager, Nom Nom, says, Penetrating through every commercial aspect
humans have started using technology for everything and food ordering is one such
developments.
RohitChadda, MD and Founder Foodpanda, believes, Online ordering is convenient giving the
customers a broader option to choose from the restaurants listed on the website.

Future of the business

As per the industry experts, the overall food delivery business is more than USD 7 billion to
which online food ordering contributes 5-7 percent and is growing 40 percent per year than dine-
in culture. The margin is however two to three percent higher in deliveries. According to
RiteshDwivedy, MD and CEO, JustEat, The future seems bright for the online food business in
India, as we are trying to catch up with developed markets where 30 percent of delivery takes
place through online channels.

Major players
Online food ordering is at an exciting phase now. Many local and national players are joining the
space. In fact the foreign brand JustEat has also tied up with the Bangalore based HungryZone.
Foodpanda which started its business from Delhi-NCR is the major player in the segment
followed by JustEat and TastyKhana, a Pune initiative. Besides, DeliveryChef, BigBite, Titbit
and eatallnite are the emerging players in the online food delivery market which is estimated to
grow at 40 percent annually.

Benefits
Placing food orders online benefits consumers, restaurants and the food delivery players. For
consumers, it is not only an easy and convenient tool but it is also a great platform to avail good
discounts.
Vasul Chauhan, Restaurant Manager, Smokeys Barbeque & Grill, said, We have partnered with
JustEat to explore new business opportunities and give a push to our already successful home
delivery format but till now the response is not overwhelming.
However, Dwivedy is of the opinion that, The profit margin is 2-3 percent higher in deliveries
as compared to dine-in these days

Marketing strategies
Online food delivery platforms largely try to be present in all the channels that drive awareness.
For example, newspapers, television, hoardings and billboards to the social networking sites like
Facebook and Twitter, they advertise in all. Chadda explained, We give about 15-30 percent
discounts on ordering through us. At the same time we have also organised several campaigns
including the food gifting programmes and buy one get one free deals.

Major Players in the Weekly Traffic (%age) preferring cash (%age) preferring
segment on delivery online payment
FoodPanda 4-4.25 lakhs per 70% 30%
week
JustEAt 3.75-4 lakhs per 90% 10%
week
TastyKhana 2.25 lakhs per 90% 10%
week
 Chapter 2

Literature Review

2.1 Market Research

Market research is defined as function that links the consumer, customer, and
public to the marketer through information-information used to identify and
define marketing opportunities and problems; to generate, refine, and evaluate
marketing actions; to monitor marketing performance; and to improve
understanding of the marketing process. Marketing research specifies the
information required to address these issues, designs the methods for collecting
information, manages and implements the data collection process, analyzes, and
communicates the findings and their implications.. .
Briefly it is a systematic design, collection, analysis, and reporting of data and
findings relevant to a specific marketing situation facing the company, allows
management to make the changes necessary for better results through adopting a
proactive approach. Therefore, if a company wants to know what type of
products or services would be profitable it should make a market research.
Furthermore, a comprehensive research will enable the company to know about
the product imperfections (if there are) and to know if it has been able to satisfy
customers needs. It attempts to provide accurate information that reflects a true
state of affairs. Due to market research the company can formulate a viable
marketing plan and estimate the success of its existing plan.
There are two main sources of marketing research information:

Primary marketing research is collected for the first time if the company
has enough money to finance it, but in most case it is the second more
 accurate one. It is original and collected for a specific purpose, or to solve
a specific problem. Primary research delivers more specific results than
secondary research, more expensive and time consuming, which are an
especially important consideration when the company is launching a new
product or service.
There are many ways to conduct primary research. By customizing tried-and-true
approaches, focus groups, surveys, field tests, interviews or observation, you
can gain information about your target market. Primary research is generally
based on sampling techniques and requires statistical methodologies. The sample
size could be as small as 1 percent of the market and thus the information and
results gathered are highly accurate.

Secondary marketing research or desk research is generally used when a

company considering, extending a business into new markets or adding
new services or product lines, because it already exist in one form or
another. This information is based on studies previously performed by
government agencies, chambers of commerce, trade associations, and
other organizations. There are number of sources available to the
marketers, which are the following: Business libraries, Public records,
Trade associations, Websites, National/international governments,
Informal contacts and Professional institutes and organizations. That is
why secondary research is relatively cheap, and can be conducted quite
quickly. However, its main disadvantage is that the information gathered
may be old and obsolete, therefore results of analysis may be inaccurate.
 Marketing Research Procedure

Stage-1 Research Purpose:-

The first step in the procedure of market research is to define research purpose. Research purpose
is usually not very well defined or fully understood. The procedure of fully and accurately
defining and understanding research purpose always requires efforts. The research purpose is
typically developed as result of recognizing and understanding problem. This problem is usually
generated by realization of fissure between expected out come and the outcome in reality.

It is also important to define reason of problem that where that problem occurred. The problem
definition is the point on which the whole arrangement is formed.

Stage-2 Research Objectives:-

Research objective is accurate report about required in sequence. It understands problem
statement more accurately and in more understandable way. Research objectives are designed in
such a way that chore of finding required information fully provide the research purpose.

Research objectives have three essential parts.

Research Question
The research question describes information required by organization accountable for decision
making. Research question represents the in sequence needs to obtained accordingly to research
purpose.

Hypothesis
Hypothesis is researchers view of probable answer to a research question. The Researcher may
produce possible outcome of research question in earlier stage and carry out research to answer
that if hypothesis created at start of research was right or not.
Scope of Research
Hypothesis development aids keeping research procedure more accurate and well-focused to
serve research purpose. Another important issue of the research is indicating research boundaries
or research limitations.

Stage-3 Estimating the Value of Research information:-

After defining research purpose, objectives and scope it is also very significant to estimate value
of information needed or the value of research problem that will possibly be replied in research
question.

Stage-4 Research Design

Research design is in general structure or framework of research that is developed in order to
conduct research.

Research design may include following tasks

Primary and Secondary Data analysis:-

There are two types of data analysis

Primary data is data that research needs to collect by himself more specific to research
conducted. Primary data is usually collected through questionnaire surveys, interviews, and focus
groups etc.

Secondary data is not first-hand data as primary research it is the data that already is available
like journals, books, articles, company records etc.
Qualitative and Quantitative Research:-
After selecting type of data required for research it is decided that what medium of data is
required. Research can be through quantitative or qualitative or both depending on the wish of
researcher.

Stage-5 Data Collection

After preparing questionnaire the next job is to practically get into filed and distribute
questionnaires among group of respondents. It can also be done through

On line surveys,

Phone conversations,

Face to face interviews, and

By post.

In larger scale marketing research full dedicated field team or person may be required in order.

Stage-6 Data Analysis

After gathering of data it is then procedures to derived results in order to change them in
conclusion, data analysis can be conducted with two methods manual or computer based data
analysis. There can be different types of mathematical formulas can be used on data that is
collected from questionnaires. It can also be checked for precision and soundness.

Stage-7 Reporting Results and Presentation

The Last and final part of research procedure is to write down in black and white whole project
findings and write report that replies that specific research question that was identified at
initiation of research. Research report also includes research loom adopted, design, collection
and analysis of data together with all results of data. This report should be in the form to be
prepared for decision makers to be used in decision maker procedure.
 Sampling Design

Generally, a researcher employs sampling strategies in order to generate

statistics and generalize findings to a larger population. Sampling refers to the
process of selecting individuals from a larger group of people and drawing
conclusion that are an accurate representation of how the larger group of
people acts or what they believe.

Simple Random Sampling

A simple random sample is one in which each member of the population has an
equal and independent chance of being included in the random sample. If the
sample is large, this method is the best way to obtain a sample representative of
the population. Simple random sampling approximates drawing a sample out of a
hat: Members of a population are selected one at a time, independent of one
another and without replacement; once a unit is selected, it has no further
chance to be selected. The steps in simple random sampling comprise the
following:
1. Define the population.
2. List all members of the population.
3. Select the sample by employing a procedure where sheer chance determines
which members on the list are drawn from the sample.

Step-by-step method for determining reliability of data

As soon as data collection begins, steps can be taken to ensure the data is
reliable. Following these steps will allow insight into whether or not enough
data has been collected to provide reliable (95% certainty) information:

Determine coding scheme for data . Depending on the options that survey
and interview respondents have to answer questions, the data will have to
be coded for each question. Given the type of information most state
programs seek through interviews and surveys, this data should be able to
be divided into two categories. For instance, if the question is a yes or no
question, then one category would be yes, the other would be no. If the
question asks participants to place items into a Likert scale, then two
categories would be created in order to determine which half of the Likert
scale the data favored (with the total number of neutral answers being
counted, divided by two, and placed equally into each of the two
categories).

Code responses. Code your responses to each answer in order to

determine which of the two categories created for each question the
answer would fit. Once you have coded all of the answers, determine how
many answers fall into each of the two divisions.
Compute reliability. Although you will have a random sample to use at
this point, you will not likely be able to interview or survey all of the
people in that sample. This is acceptable, as the entire 15% will likely not
be needed in order to come to a reliable conclusion (although, in some
rare cases where enough responses cannot be obtained from the
participants originally selected, the original population must be re-visited
to find more randomly selected sampling units).

Questionnaire Design
A questionnaire is a document designed with the purpose of seeking information
from the respondents.

Steps in Questionnaire Design:-

1. What is involved
The researcher defines the information that is being sought.
Consider research objectives.
Discuss with others in the field.
Literature searches and wide reading on Literature searches and
wide reading on the topic.
Review earlier questionnaires/scales or Review earlier
questionnaires/scales or instruments that may be available.

2. Drafting of questionnaire
Researcher takes the list of information they wish to obtain from
respondents and devises draft questions.
Phrasing and design of questions affect the validity of the affect the
validity of the information obtained.
Sequencing the questions background variables first, introduce
each theme/topic area in separate sections
Methods for coding the data
Methods for analysis of the data
Layout and presentation - make it eas y to complete and present
professionally;
Consider your audience - type face, font size, instructions, use of
language (elderly respondents need instructions, use of language
(elderly respondents need large font)
Cultural and gender appropriateness.

3. Questionnaire pilot
 Trial the new questionnaire with a small group of intended
respondents or colleagues to improve clarity, remove problems
before the main survey
Analyze the responses to the pilot survey (are some response
categories never used, analyze some response categories never used,
analyze the missing data, are some Qs misunderstood?)
Ask the respondents or colleagues for feedback Ask the respondents
or colleagues for feedback about design and questions

4. Redrafting the Questionnaire

If problems were found then the questionnaire will need to be
redrafted
If there are major changes required it is best to then do another
pilot
If the problems are minor the researcher may If the problems are
minor, the researcher may then proceed to administration of the
questionnaire to the full sample

5. Administration of the Questionnaire

After development of the questionnaire, it is administered to the full
sample of respondents administered to the full sample of
respondents
How would this be done? Postal, telephone, structured interview.
Mode of administration differences Bias issues in clinical follow
up and patient satisfaction surveys can arise.
The responses are then analysed in terms of the researcher s aims
and objectives.
 Advantages and Disadvantages of Questionnaire Design

Advantage Disadvantage
Cheap to produce and administer Often criticized because of the crude

level of measurement
Can reach large numbers in limited Often never validated
time
Yield data not available by other means Can be fraught with bias unless well
designed
High external validity if validated
properly
 Summary

Questionnaires are useful tools if properly designed and administered and

administered
Well-constructed questionnaires can yield valuable and often novel
information relatively inexpensively and often novel information
relatively inexpensively
A questionnaire is a vehicle allowing communication between the
researcher and the subject between the researcher and the subject
A good questionnaire is the product of testing and retesting
Where ever possible, construct or use a valid and reliable tool, or test its
validity and reliability.

Chapter 3

Methodology

3.1 Research objectives

Identifying the target audience: - The main objective of this

internship is to find the customer feedback of the online food ordering
app. Mostly the target audience which we found out includes students,
working individuals, working married couples and some home makers.
These target audience generally tend to order food through online portals
due to their hectic working schedules, ease of delivery, varieties of
cuisines and ease of payment.

Where to find the target audience: - The next objective is to

know where we will get our target audience. Usually these target
audience we found out near small shops beside the companies where
employees used to come and hangout for sometimes, in restaurants and
 various hangout places according to the areas allocated. Most of the
target audience which I found was near small tea shops and stalls.

How to reach them in most effective manner: - The next main

task is to know that how we can reach out to our target audience in the
most effective manner so that we can get our responses. For this purpose
a small questionnaire was designed comprising of 10 questions so that
people dont find it too long to fill.

Research methodology

A research design is the "blue print" of the study. The design of a study defines
the study type (descriptive, correlational, semi-experimental, experimental,
review, meta-analytic) and sub-type (e.g., descriptive-longitudinal case
study ), research question , hypotheses , independent and dependent
variables , experimental design , and, if applicable, data collection methods and a
statistical analysis plan. Research design is the framework that has been created
to seek answers to research questions

Types of Data Collection Methods

Primary research: Primary research is defined as factual, firsthand

accounts of the study written by a person who was part of the study. The
methods vary on how researchers run an experiment or study, but it
typically follows the scientific method. One way you can think of primary
research is that it is typically original research. In a nutshell, primary
research is original research conducted by you (or someone you hire) to
collect data specifically for your current objective. You might conduct a
survey, run an interview or a focus group, observe behavior, or do an
experiment. You are going to be the person who obtains this raw data
 directly and it will be collected specifically for your current research
need.

Secondary research: Secondary research is defined as an analysis and

interpretation of primary research. For instance, secondary research often
takes the form of the results from two or more primary research articles
and explains what the two separate findings are telling us. It involves
searching for existing data that was originally collected by someone else .
You might look in journals, libraries, or go to online sources like the US
census. You will apply what you find to your personal research problem,
but the data you are finding was not originally collected by you, nor was
it obtained for the purpose you are using it for.

Data Analysis Techniques

Analysis of data is a process of inspecting, cleaning, transforming, and

modeling data with the goal of discovering useful information suggesting
conclusions, and supporting decision-making. Data analysis has multiple facets
and approaches, encompassing diverse techniques under a variety of names, in
different business, science, and social science domains.
Analysis refers to breaking a whole into its separate components for individual
examination. Data analysis is a process for obtaining raw data and converting it
into information useful for decision-making by users. Data is collected and
analyzed to answer questions, test hypotheses or disprove theories.

Techniques for analyzing Quantitative data

Graphs : There are many types of graphs, but the most common and most
useful for the statistician are bar charts, histograms, and frequency
polygons. Each has two axes, the vertical axis (the y-axis) and the
horizontal axis (the x-axis), and labels to identify the variables and the
 values, with tick marks showing where each indicated value falls along
each axis. A bar chart contains solid bars separated by spaces. It is a
good tool for displaying the distribution of variables measured in discrete
categories (e.g., nominal variables such as religion or marital status),
because such categories dont blend into each other.

Histograms: Histograms, in which the bars are adjacent, are used to

display the distribution of quantitative variables that vary along a
continuum that has no necessary gaps. Exhibit 8.4 shows a histogram of
years of education from the 2010 GSS data. The distribution has a clump
of cases centered at 12 years. The distribution is skewed because there are
more cases just above the central point than below it.

Pie charts: A pie chart (or a circle chart ) is a circular statistical

graphic, which is divided into slices to illustrate numerical proportion. In
a pie chart, the arc length of each slice (and consequently its central
and area), is proportional to the quantity it represents. While it is named
for its resemblance to a pie which has been sliced, there are variations on
the way it can be presented.

Limitations of the project study

There are certain limitations of doing this project especially comprising
limitations for doing market research.

Costly: Marketing research is a costly affair. It needs a lot of money to

conduct various market research activities. Huge funds are required to pay
salaries, prepare questionnaires, conduct surveys etc.\
Time consuming: Marketing research is a lengthy and time-consuming
process. This process involves many important steps. Generally it takes at
least 3-6 months to solve a marketing problem. Therefore it cant be used
in urgent situations.
 Limited scope: Marketing research solves many business related problems
but it cant solve all business problems. It cannot solve problems related
to income, expenditure, relationship etc. thus its scope is limited.
Cant predict consumer behavior: Marketing research collects data
about consumer behavior. However, this data is not accurate because
consumer behavior keeps on changing and cannot be predicted. It is also
very complex as it is influenced by social, religious, economic and other
factors.
Non availability of reliable data: The quality of marketing research
report depends on the quality of collected data. However, it is very
difficult to find latest and trustworthy data.
Can be misused: Sometimes, marketing research is misused by the
company. It is used to delay decision. It is used to support the views of a
particular individual.

Chapter 4

Findings
Our Group went to gurgaon for taking customer feedback and understanding the
behavior of the market.

Findings in Gurgaon:
Gurgaon an IT area and management schools (more individual B-schools,
compared to apartments), surrounding the small business units, IT companies.
The survey conducted had 250 respondents, which include students, working
individuals and working married couples, which completes the target audience
(TA). Following are the findings from the survey.
 WORKING INDIVIDUALS

Method of placing home delivery order:

Direct walk in; 14%

direct call; 34%

mobile app; 38%

online; 14%

Majority of the WIs (38%) preferto order through mobile apps since
most of them are students. 34% of WIs preferred ordering food
through direct call to restaurant, direct walk in to restaurant (14%)
and online web portals (14%).

Thus most of the people prefer using apps and then through direct
walk-ins.
 Level of satisfaction with online food delivery

Satisfaction level

highly satisfied; 9%
dissatisfied; 5%
Neutal; 43%

Satisfied; 43%

9% of WIs responded that they are highly satisfied with online food
delivery and 43% of the WIs responded that they are satisfied with
online food delivery, 43% neutral and 5% dissatisfied.

Dissatisfaction may be due to the payments and difficulties with

some restaurants regarding online payment confirmation.
 Frequency of ordering food home delivery in a month

Frequency

15-20 times; 5%

10-15 times; 38%

5-10 times; 57%

57% of WIs opted for 5-10 times per month. 38% opted for 10-15
times and another 5% for 15-20 times.
 Number of people for which food is ordered

No. of people

0 to 1; 17%

4+; 55%
2 to 3; 26%

3 to 4; 2%

57% of the WIs order food for 2-3 people and 5% of WIs order food
for 3-4 people, 38% for self and almost nobody orders for more than
4 people.
 Students:

Method of placing food home delivery order.

Way of ordering

online; 26% Mobile App; 30%

Direct call ; 18%

Direct walk in; 26%

30% of students preferred mobile apps to order from restaurants,

26% preferred direct walk in to restaurant and 18% preferred direct
call.
 Level of satisfaction with online food delivery

Satisfaction

Neutral; 7%

Dissatisfied; 34% satisfied; 18%

Highly satisfied; 40%

63% of students responded satisfied, 26% were neutral and 4% were

dissatisfied.
 Frequency of ordering food home delivery in a month

Frequeny

15 to 20; 7%
10 to 15; 15%

5 to 10; 78%

78% of students opted for 5-10 times a month, and 7% who order
food 15-20 times a month and 15% order 10-15 times a month.
Number of people for which food is ordered

No of people

3 to 4; 15%
1; 41%

2 to 3; 44%
 44% of students usually order food for 2-3 people and 15% of
students order food for 3-4 peoples. 41% students order food for
self.

Chapter 5

FOOD PANDA Analysis

SWOT Analysis:

Strengths:

It is the largest American Chinese restaurant chain in the United States.

It has close to 1,700 plus restaurants located across all different states in
the United States.
 Offers a variety of food along with combo meals.
Panda Express is among the US's 25 largest quick-service operations and
Asian quick-serve category.
The chain was one of the earliest entrants into the supermarket arena.
Strategically located in mall food courts and other non-traditional venues
including airports, college campuses, and theme parks.
It has a successful track record of making Asian cuisine accessible to the
masses.

Weakness:

Restricted to one cuisine thus restricting its customer base.

Specialty ingredients used in Chinese food might be difficult to source
and store.
Restricted in a few geographies means lower brand recall.
Price differences in menu and app prices.

Opportunities:

There is a large market leading to huge customer base.

Venturing into newer markets.
Introducing more items on its menu.
Untapped market as online food apps contribute only 7%

THREATS:

Managing huge employee base can be an issue.

Stiff competition from multi cuisine restaurant.
Presence of strong competitors in the Chinese restaurant segment.
Threat of New entrants.

Market Share

1) Theyve grown to become one of the largest food ordering portals in India.
2) Built a network of 2000+ partners including some of the well know brands
like: Pizza Hut, Subway, Nirulas, Baskin Robbins, Mast Kalandar, Faasos
amongst many others.

3) We have quite steadily shaped the market towards ordering food online,
instead of ordering on phone. This has helped us gather a lion share of the food
delivery market, and propel us towards a leadership position in the market.

Growth
India is a market with huge potential where the scope for growth is immense.
However, with internet penetration of only 8%, it is only logical to target the
more cosmopolitan Tier I cities which have a sizable working population with
mature internet users.

Weve seen a steady growth in traffic since our launch last year. However, the
focus has really always been on quality traffic & targeting potential customers,
which we have been able to achieve very successfully. We are growing by 25-
30% on month-on-month basis. Currently we get around 25000-30000 unique
visitor a day. With this 65% of our traffic comes from Delhi, Mumbai &
Bangalore and rest 35% from Chandigarh, Hyderabad and Pune.

Market Strategy
Being an ecommerce business, we believe it is best to target our potential
customers when they are online in front of their computer screens, in encourage
them to try us out. Hence our focus has majorly been on digital marketing
channels.

We believe in providing the best customer experience on our site and hence our
product is continuously evolving adding new features almost every other week.
We launched our mobile app in January and was very well received. We have
already seen more than 250,000 app downloads worldwide which is a clear
indicator of the need for innovation in the space and we are happy to take the
lead.
Financial funding

Foodpanda announced that it has raised $20 million to fuel its aggressive growth strategy.

FoodPandas steepest competition is Delivery Hero, a Berlin-based startup that operates in 14

countries around the world. Delivery Hero has raised nearly $200 million to date and claims it
has 6 million customers, 55,000 restaurants, and did $500 million in annual sales last year.

Another competitor is Just Eat, a UK-based service that raised $64 million in 2012. The U.S. saw
consolidation in this space last year with the union of GrubHub and Seamless.

FoodPanda has 22,000 restaurants in its database. It raised $20 million last May and added 20
more markets in 2013. With this financing, it plans to hit 40 countries by the end of the first
quarter of 2014. Croatia, Bulgaria, Serbia, Slovenia, Kazakhstan, Azerbaijan, Tanzania and
Uganda are next up for expansion.

Popularity
Foodpanda has over 892,000 likes on Facebook , 383 followers on their Pakistan
twitter account ( @FoodPandapk ), and a thriving campaign tempting people to
try them out. What sets them apart from their competitors is that they are able to
take a worldwide brand and make it country specific, and market themselves
accordingly. They know what their consumers want, and they know how to get it
to them. Foodpanda has been able to distinguish itself in a market that is seeing
a growing number of online food delivery services.
Forward Expansion
Foodpanda is now available in 41 countries and is looking to expand to even
more. The company made an announcement in February stating : Foodpanda and
its affiliated brand hellofood, the fastest growing online food delivery
marketplace worldwide, received another USD 20 million in funding from a
group of investors including Phenomen Ventures.
With the new investment Foodpanda is aiming to continue its global ambitions
and roll out to over 40 markets. The company previously received another USD
20 million from AB Kinnevik in Sweden, and Phenomenon Ventures. They also
received USD 8 million from iMENA.
Foodpanda raised $110 million in a fresh round of fund raising from Rocket
Internet and other investors. Since 2012, Foodpanda has raised over $200
million and plans to invest into product and technology. With the entry of
Zomato and TinyOwl in the online food ordering space, Foodpanda wants to
focus on providing the best customer service to its users. In an
interview, RohitChadda, co-founder and managing director of Foodpanda,
tells Neha Bothra about plans to tap potential in tier 2 and tier 3 cities, and
increase restaurant partners from 12,000 to 15,000 in the next six months .

Order rate at Food Panda

We earn revenue from the commission we earn from restaurants on every
successful order that we place. In terms of traffic, we get around 1,30,000 to
1,50,000 visitors each day. The average value of each order ranges between Rs
500 to Rs 550. This is higher on the mobile platform. Around 45-48% of our
transactions come from our smartphone based application, and the transaction
size on this platform is 20% higher than on the web.

Tie ups with restaurants

At present, we have 12,000 restaurants. In the next six months we will probably
be at around 15,000 restaurants across India. We believe in quality over
quantity. We have always concentrated on adding good quality restaurants, and if
we see that a restaurant is not really performing- then we take it off from our
coverage. The most important thing for us is consumer experience.

Zomato Analysis

SWOT Analysis

Strengths

Users perceive Zomato as Specialty product (Focused only on foods &

restaurants).

High awareness Top of the mind product.

Global presence 25 countries 1.5 million listed restaurants.

 Superior technology and a strong workforce of over 1200 people.

Asset less business model.

High financial leverage due to its business model.

Simple & user friendly interface.

Aggressive and Innovative marketing strategy.

Strong brand recognition and has won several accolades & awards.

Weakness

Competition from search engines & other similar apps means limited
growth.
Drastic growth means susceptible to bad content

Opportunities

Opportunity to expand to further more countries.

Increasing internet penetration & number of smartphone users.
Rapid technology development.

Threats

Intense competition.
Lack of clear rules and regulations - Changes in government policy can
easily affect the business model.
Business model can be easily imitated by other players
Differentiation from others

To differentiate themselves from their competitors, Zomato concentrated on adding approx.

18,000 new places to eat from. Along with they also decorated many special features, such as
pointed to particular dishes or opening times.To be the largest resource in food supply
market, Zomato bought urbanspoon, a leading restaurant service providing portal for $52
 million to enter US, Canada and Australia to leverage local insights and experience and to
expand their business in overseas seeing the future goal and objective.

Milestones

Number of listed restaurants: in 2008 it was 4000 restaurants which increase to 94000 in 2013
and currently 384,100 in Q1 of 2015.

Monthly visitors of Zomato increases to 35 million in 2014 which was 11

million in 2013 and 0.015 million in 2008.
Yearly revenue of Zomato in 2008 was 0.06 crores which increased to 11.3
crores in 2013.
Spread in 21 countries worldwide.

Success Factor

First mover advantage

Strong content platform
Efficient employees
Good rating mechanism and social platform
Funding from experienced source

Strategyof Zomato

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.

Marketing Strategy

Featured and user friendly website

Global mobile app
Focusing on digital marketing channels for potential customers
Acquire the competitors: To be the largest resource in food supply market,
Zomato bought urbanspoon for $52 million to enter US, Canada and
Australia
Simpler review and rating system

Financial Funding

In August 2010, Zomato got its first round of funding of $1million from Info
Edge, India. And in September 2011, got its second round of funding of
$3.5million from the same financier. Next year Zomato upraised its third round
of another $2.5 million from the same investor and again in early 2013, Info
Edge funded fourth round worth $10 million which gives them a 57.9% stake in
Zomato.

Seeing the future and growth of Zomato, Sequoia Capital and Info Edge, India in
November 2013 funded Zomato with $37 million. Info Edge now owned 50.1%
of Zomato on an investment of INR 143 crores. The total funding raised by
Zomato till November 2013 stands at $53.5 million.

In November 2014, Zomato came up with a fresh round of funding of $60

million at a post-money valuation of ~US$660 million. This round of funding
was jointly headed by Info Edge India Limited and VY Capital, with
involvement from Sequoia Capital. This made a total funding of over US$113
million for Zomato.

Expansion

Zomato will leverage its existing reach and scale (sales team of over 300
people, 5000 odd advertisers) to fast track its growth in this space. Setting
ambitious targets, Zomato claims to bring over 10,000 restaurants in its food
ordering network in the next three months and also start processing over 40,000
orders a day in the near term. And why not? Given that we have over 400,000
people who visit our India section every day, this shouldnt be too hard,
We will invest $50 million in the business in India over the next year or so ,
he continues. This will be our fastest ramp up for any business in any
geography ever.
Zomato plans to make money from this new service via a cut of each order, but
the exact size of its fee will be based on feedback from customers directly. In
the case of a five star rating, Zomato will take a 7.5 percent commission fee.
But that cut will rise to a maximum of 15 percent for the lowest customer
feedback. Thus the best experience and value for customers will be the key
focus.
We will own the customer experience on the tech end, as the platform, the
delivery and logistics will be owned by the restaurants.

Order rate

The company works with more than 150 vendors to provide shipments across
175 cities. It averages about 9,000 deliveries daily. We not only provide for
shipments and deliveries, but also warehousing facilities where the company
stocks and racks the products for the vendors, said Bharati. In addition,
Delivery provides all kinds of retailers, even small businesses, technology
solutions to integrate all channels of sale. These include offline, online, social
media, mobile and voice solutions that allow sellers to manage stores and
integrate delivery with market needs.

Future strategy
Delivery is looking to expand to 250 cities, 30 delivery centres and targeting
revenue of Rs.250 crore for the fiscal year 2015-16. International expansion is
part of its future strategy.

App reviews

Zomato, the popular online and mobile restaurant guide, has updated its iOS
app, completely overhauling the user interface and has added new features.

The updated Zomato app offers a much simpler user interface, in line with the
resecnt redesign of the Zomato website, with the home screen offering large
swappable images of nearby restaurants that lead to their respective listings, in
addition to options to browse restaurants and search for them by entering
keywords for name, location, cuisine or dish.

The Browse Restaurants option takes you to a menu that offers mood-based
recommendations. So, you can select if you're looking to get food home
delivered, going out for a meal, going out for drinks or just catching up with
friends. Selecting the location is the next step, following which, the app offers a
list of restaurants that match the criteria.

There's a separate screen for location based restaurants search through which
you can sort restaurants based on the distance from your current location. You
can apply additional filters such as ratings, whether the restaurant is open at the
time of the search, cuisine, budget and other aspects.
There's also a 'Featured Content' section that offers lists such as top 25
restaurants, foodie leader board (for regular users), and featured reviews, among
other content.

Users can also post pictures for restaurants they've visited in case they just want
to post picture reviews. Pictures can be posted through the restaurant's listing
page or through a section within the app that allows users to upload reviews and
pictures of restaurants.

Summary of online food ordering app

Particulars FoodPanda/Tasty Swiggy Zomato

khana/ Just Eat
Offers and coupon Timely delivery Ultimate
Strengths
discounts, Market and excellent destination for
share across service, more than food includes
Bangalore, 150 delivery boys table bookings,
Promotion for home delivery, and
brand awareness, discovery of the
recruiting delivery restaurant.
boys (12000 at the
end of the year
2015).
Weakness Payment delay to Services are down Home delivery
the restaurants, no at peak time. begins in only one
cash on delivery segment of their
on some entire market.
restaurants.
Opportunities Customers order Customers order Customers order
food via app and food via app and food via app and
online is online is online is
increasing. increasing. increasing.
Threats New entry New entry New entry
Market Strategy
Funds Raised $110 Raised $16.5 Raises $50 million
million in a fresh million in in funding led by
round of fund additional funding existing investor
raising from to make a play for Info Edge
rocket internet and the Indian market.
 other investors
Short term goal Increase restaurant Increase New product line
partners from manpower i.e., a product
12000 to 15000 at which will allow
the end of October the users to pay
2015 restaurant bill
through mobile
application
Purchase and
usage
Average purchase The average value Delivers over 9000 delivery per
of each order 70000 orders on a day all over India.
ranges between Rs monthly basis.
500 to Rs 550.
Usage Around 45-48% of 50% more orders Online ordering is
more when
the transactions shifting from the
compared to
come from website to the app mobile app.
smartphones based quickly.
app and the
transaction size of
this platform is
20% more than on
web.
 Chapter 6

Inferences and Summary of Findings

Inferences from Gurgaon

About Working Individuals:

It can be inferred that WIs who prefer ordering food through mobile apps
(38%), online web portals (14%) indicates the presence of TA who like to
have convenience in ordering food.

From level of satisfaction we can understand that online food delivery system
is prominent and running successfully in Gurgaon.

Statistics about frequency of ordering food home delivery indicates that there
is decent number of food home delivery orders in Gurgaon.

Marketing activities with emphasis on the combo offers in the app will be
fruitful in Gurgaon.

About Students

Majority were students have placed a food home delivery through online,
hence they chose Satisfied option.

Frequency of food home delivery orders placed in a month by students and

WIs, indicates that decent number of orders can be generated from Gurgaon.
 Chapter 7

Recommendations

In case of WIs, marketing activities with promo codes and emphasis on

combo offers will be effective.

When it comes to students, they are more attracted towards the free meal
offer, which enables them to earn money into their TinyOwl account
easily. Marketing activities with emphasis on this offer will create interest
in students towards the app.

Marketing activities in PGs and colleges will be effective in catching

attention of more students and working individuals.

Marketing activities in residential areas and apartments will be effective

in catching attention of more people and working individuals.

Marketing activities need to be extensive as there is a lot of scope of

people who can use the app.
 Marketing activities such as big hoardings, posters etc., if displayed, will
attract more and more customers and also people will get awareness about
the app.

Marketing activities near hostels and colleges will be most effective since
most of the students prefer to have variety of food at reasonable rates.

Questionnaire for customers

Q1. How do you order your food?
a. Direct call to restaurant

b. Online portal.

c. Mobile application

d. Direct walk in.

Q2. Are you satisfied with ordering online?

a. Highly satisfied

b. Satisfied

c. Neutral

d. Dissatisfied

e. Highly dissatisfied.

Q3. Are you interested in using online food app?

a. Yes
 b. No.

Q4. Occupation?
a. Student

b. Working individuals

Q5. No. of times you order home delivery in a month?

a. 5-10 times

b. 10-15 times

c. 15-20 times.

d. 20-25 times.

Q6 what are your preferred Cuisines?

Q7 For how many people you usually order food?

a. 1

b. 2-3

c. 3-4

d. 4+

Q8. Most popular restaurant you prefer?

Questionnaire for Restaurant Owners
Name of Restaurant:

Q1. No. of orders per day for home delivery?

a. 100-250

b. 250-400

c. 400-550

d. 550 and above

Q2. No. of walk-in customers per day?

a. 75-150

b. 150-300

c. 300-400

d. 400 and above

Q3. Are you tied up with any of the food ordering apps?
a. Yes

b. No.

Q4. Which mobile application or online portal gives the maximum no. of orders?
a. Foodpanda

b. Zomato

c. Swiggy.

Q5. From which location you get the most number of orders?
Q6. Any offers/discounts given to customers by you?

Q8. Which portal do you prefer the most?

a. Foodpanda

b. Zomato

c. Swiggy

Q9. Peak hours for home delivery?

a. 12-2 pm

b. 2-3 pm

c. 7-9 pm

d. 9-11 pm

Q10. Common Issues faced due to home delivery?