Startup Journey Of Zomato
Zomato set out to be the best restaurant search and discovery tool when it first began. There were restaurant names, menu items, pricing, reviews, and other information. It offered comprehensive details on more than 1.4 million establishments in 23 different countries.
It has evolved into an internet platform for meal delivery over the years. People can now use their app or website to order food from nearby establishments. Delivery personnel from Zomato pick up the customer’s order from the restaurant and deliver it to the specified address.
Deepinder Goyal and Pankaj Chaddah, two IIT Delhi graduates, founded Zomato. But for Deepinder, it wasn’t his first experience with entrepreneurship in the food sector.
Zomato – a Food Delivery Company has its fair share of high points and down points before becoming India’s first food tech unicorn. For instance, Foodiebay became Delhi NCR’s (National Capital Region) largest restaurant and cuisine directory after just 9 months of operation. After that, it changed its name to Zomato in 2010, and the business hasn’t looked back since. The food-tech business didn’t spend any time expanding after experiencing significant success in Delhi-National Capital Region and began doing so in Ahmedabad, Pune, Hyderabad, Chennai, and Bengaluru. The company expanded its services to Sri Lanka, South Africa, Qatar, the United Arab Emirates, the United Kingdom, and the Philippines as the effective Zomato marketing strategy paid great returns.
Moreover, in 2015, the business encountered significant challenges following a remarkable run of seven years. Due to the organization’s income problems, there had to be a significant workforce layoff. However, as we can see from Deepinder Goyal’s comment, the food-tech business soon recovered, and in the first half of FY2020, Zomato saw a staggering 225% increase in its sales. Additionally, the food delivery and aggregator firm had almost 119k establishments on its network in H1FY20, and things are going well for it.
Zomato Business Model
Zomato’s business strategy is based on four criteria: QAAA.
Quality – Initiatives such as Hyperpure that provide hygienic ingredients and kitchen supplies to restaurant partners
Assortment – A variety of tastes from different geographical locations with precise information
Affordability – Affordable food through daily deals and discounts, the Zomato Gold programme, etc
Accessibility –
From table reservations to corporate catering.
Zomato’s marketing mix is successful in part because of these four elements: product, pricing, place, and promotion.
Revenue Model of Zomato-
- The Zomato business model is complex. Online meal orders only account for 2% of the company’s overall revenue. while 72% of the budget comes from restaurant advertising.
Target Audience of Zomato-
Zomato conducts thorough market research. Zomato users range in age from 18 to 35. Due to their use of cell phones, this age group is significant.
Second, they go out to eat with coworkers or friends. They conduct research on the top eateries in the area.
This makes the Zomato app a go-to resource for finding restaurants. The target audience is the third factor that benefits Zomato. They are both working professionals and college students.
Company Partners of Zomato-
Uber and London & Partners are the two principal corporate partners of this food delivery network. The former is used to expand virtual operations in countries around Europe.
Uber Eats was acquired by Zomato in 2020. Additionally, 9.99% of Uber is owned. This partnership supports Uber’s mission to “create opportunity through movement.” Therefore, when on the go and using Uber, any user can rapidly search for eateries.
Sustainability-
- The consumer of today is Zomato’s target market. Such consumers favour companies that have fewer carbon footprints. Even so, 73% of online shoppers, according to net0, favour products that lessen the effects of climate change.
Target Audience Of Zomato
- Zomato aims to attract 18 to 35-year-olds who are habituated to using smartphones. This age group is tech-savvy and has access to mobile applications. Zomato’s target market falls into two categories.
Customers who want to dine in-
- Customers who fall under the “dining out” category utilize the Zomato app to look up the ratings and reviews of various cafés and restaurants. These consumers research nearby restaurants on Zomato before going to ensure they have a pleasant experience in terms of the food and environment. This group also receives incentives like the Zomato Gold Program, where members receive additional advantages.
Customers who are ordering food online-
Customers of the “order food online” category like to have food delivered to their homes or workplace. These customers do not prefer to go out. The customers of this category are mostly professionals who order food for the office, students who live in a hostel or flat, and people who just don’t wish to cook.
Zomato doesn’t hold back when bringing in experiential events and promoting positive vibes around food during the segmentation process in addition to identifying the target demographic. It accomplishes this by taking part in multi-city food and entertainment carnivals. Additionally, it introduces the delivery of food to homes as well as dining out. This aids the food technology company in growing its user base outside of its intended market.
Zomato Digital Marketing Strategy
- You could be thinking right now that Zomato’s digital marketing approach doesn’t do anything out of the ordinary. Contrarily, it performs the same functions that you would anticipate from a typical business with an internet presence. So, we’ll talk about the key elements that distinguish Zomato’s advertising approach here.
Offering Diversified Things-
Zomato’s commitment to providing its consumers with “something extra” is one of its strongest USPs. Therefore, in addition to providing satisfying food delivery services, it never stops thinking of ways to improve its clients’ whole app experience. One of those concepts was the 2017 debut of Zomato Gold. It was a premium service that customers may subscribe to for a monthly price and receive a variety of discounts. It proved to be a “masterstroke” and became one of the most effective methods for monetizing apps. Afterwards, Zomato launched Hyper pure in August 2018. This endeavour made sure that the restaurant’s supplies were of the highest calibre and were extremely hygienic.
On-Time or Free Campaign-
In December 2019, Zomato launched its “On-Time or Free” promotion, replicating Domino’s Pizza’s strategy. Furthermore, it went one step further than Domino’s because Zomato’s marketing applied to all of its products, not just pizza. The ‘On-Time or Free’ service was made available to clients by simply touching a button on the Zomato app. After that, clients will receive a refund if the food is not delivered on time. To promote this campaign, the provider of meal delivery services used TV commercials, social media platforms of all kinds, and online advertising.
Acquiring Major Companies-
Zomato has been committed to ongoing innovation since its inception. As a result, during its development, it has adhered to the model of “continuous innovation” and acquired several businesses, including Uber Eats, Uber Spoon, MapleGraph, Nestable, etc. Despite the fact that these acquisitions weren’t cheap, Zomato was able to build momentum for the brand and continuously develop thanks to them.
Zomato Premier League-
Zomato is a brand that is deeply aware of India’s obsession with cricket. The Zomato Premier League was thus introduced by the food-tech business. The brand made an excellent attempt at gamification, and it was well-received by the audience. The brand highlighted fantastic offers and discounts made available by the partnering eateries through this. Additionally, by picking the outcome of the game, users had a chance to receive additional discounts.
Zomato Gold Membership Program-
The gold membership programme was created by Zomato with the goal of increasing consumer loyalty. The programme is a monthly subscription plan that offers users exceptional discounts and free meals. Zomato’s marketing approach was incredibly effective and contributed to the brand’s revenue growth. Zomato gold membership is accessible in 41 Indian cities and 9 other nations through July 2021.
Influencer Marketing Strategy
By promoting its content in local dialects and interacting with micro-influencers, Zomato has pushed the idea of “hyper-local marketing.” Zomato becomes more credible as a result of being able to interact with more people.
Zomato has given influencer marketing a lot of consideration in its advertising strategy because it sees its potential. Zomato isn’t hesitant to go above and beyond and uses its notoriety to build its user base, regardless of whether it’s a macro or micro-influencer.
Through its tweets, Zomato has made us all aware of its humorous takes on numerous situations. No matter what problem its users are now facing or come across on a regular basis, Zomato offers stuff that will make them smile. Additionally, its humor has a significant domino effect and spreads like wildfire.
Because it understands the importance of memes, which are hugely popular on social media, Zomato has mastered the art of “meme marketing.” This content marketing strategy helps the food tech company create a lot of organic traffic, which eventually contributes to an increase in overall income.
Zomato Collaboration Strategy
In addition to helping the thousands of people who are a part of their delivery network by setting up a fund to cover any income they would have lost due to the crisis, Zomato is actively collaborating with the government to ensure that its services can continue to run smoothly throughout the crisis. They also made sure their delivery crew members had masks.
When it comes to appreciating the importance of videos and utilising them to it advantage on the YouTube platform, Zomato has always been a trailblazer. Zomato routinely posts unskippable, sharp, and brief video advertisements on YouTube with a subtle “call-to-action”. Therefore, it will be accurate to say that video advertising is a key component of Zomato’s digital marketing approach.
Zomato Marketing Strategy During Covid-19
- With its extensive delivery network and logistical capabilities, Zomato is in an ideal position to be significantly impacted during the crisis, and they have done just that. They have truly helped during these difficult times by sending groceries and food.
For Daily Wage Earner-
To help the families of daily wage laborers who were trapped indoors during those times and unable to make any money, the food delivery business established a fund called Feed the Daily Wager. Out of their 50-crore target, they have already collected more than 28.13 crores. With the money they raise, they give families meal kits that can feed up to 5 people for a week. To make sure the food gets to the correct individuals, they have worked with a network of NGOs and other organizations.
- In addition, Zomato was actively working with the government to ensure that their services could continue to run normally throughout the crisis, as well as providing support to the thousands of people who are a part of their delivery network by creating a fund for them to cover any income they would have lost due to the crisis. Additionally, they made sure that their delivery partners had masks. Moreover, the restaurants in their partner network have all the tools necessary to maintain quality standards at that time.
For the Zomato Community-
To maintain the seamless operation of their services and allow customers to take advantage of food delivery during these trying times, Zomato has consulted with local state governments as well as the federal government.
Additionally, they have begun contactless delivery, whereby their delivery personnel is instructed to leave products outside of residences. To reduce contact, cash on delivery has been discontinued.
Additionally, Zomato just began delivering groceries throughout 80 cities in the nation as a way to demonstrate the amount of effort they are doing to forge a close relationship with their customer base. This is to make sure that people may get what they need without leaving their homes in order to fill their pantries. This is the focus of a new feature on the Zomato app called Zomato Market.
- Although this is not directly related to Zomato’s marketing strategy, it is evident from this that Zomato is committed to improving the world and forging relationships with its clients. Long-term, this results in loyalty and maybe a higher CLV (customer lifetime value).
Future Of Zomato
- The transition to mobile apps, whether for shopping, food, medical care, etc., has been enormous, and this m-commerce trend is here to stay. As a result, Zomato’s and its competitors’ futures are promising and will only improve. Additionally, the coronavirus pandemic has increased the rate of Zomato’s growth. People are now more likely to purchase food online as they get used to the “new normal,” which has improved Zomato’s revenue and user base. For instance, in the second quarter of FY21, its revenue from operations increased by 140% and reached a staggering total of Rs. 1024 crore.
Conclusion
This is how Zomato came to be one of the top websites for online food delivery. Zomato dominates the market due to an effective marketing plan. One aspect of the marketing plan that you may have noticed is how ubiquitous Zomato is. Zomato can be found online, on billboards, in search results, and on YouTube. That is how effective its marketing plan is.
A brand that leaves a strong impression on the consumer is impossible to forget, and Zomato accomplishes just that.
Zomato is adept at targeting its clients and knows exactly who they are.
You can learn from zomato how to dominate the industry and hold a powerful position with an effective marketing plan.
A businessman can pick up a lot of suggestions from Zomato’s digital marketing techniques. The online business has mastered staying relevant and focusing on its customers. Additionally, for the finest outcomes, always choose to hire a group of committed engineers if you as an entrepreneur have a comparable idea.
Top 13 Interesting Facts About Zomato
Deepinder Goyal and Pankaj Chaddah, the founders of Zomato made the most of this opportunity by launching a food directory service. They called it FoodieBay. In just 9 months, it became the largest and a popular restaurant directory in all of Delhi.
For startups and brands, it becomes very important to have a quick, catchy name that resonates with their business offerings. With the same in mind, Deepinder and Pankaj rebranded FoodieBay as Zomato in 2010.
In response to a question regarding the rebranding, Deepinder stated in an interview that “the primary goal was to make sure that food was the crux of the brand’s name, and that people thought of food when they heard this term.” A play on the word “tomato” is Zomato. When expanding globally, the founders also sought to prevent any potential misunderstanding with “eBay.”
Zomato raised $ 1.26 bn or ~Rs. 9,372 cr. in IPO by pricing its shares at Rs. 76 each.
Zomato’s IPO was oversubscribed ~38 times on the final bidding day. The IPO was one of the biggest by a startup in India.
Many businesses were impacted by the lockdown, but Zomato fought back valiantly! From Rs. 1,300 cr in FY 2019 to Rs. 2,800 cr in FY 2020, its revenue increased.
The majority of people might assume Zomato solely runs in India because it is an Indian startup. Zomato is actually present in more than 10,000 places worldwide.
The United Kingdom, Philippines, United Arab Emirates, Qatar, and more are just a few of the 24 nations where this is the only Indian food delivery app that is active. The business also owns upscale eateries around the globe.
Zomato used the Bollywood reference – ‘Tu Cheese Badi Hai Mast Mast’ – to attract all the people who love extra cheese
Zomato’s most-ordered dish in India is Biryani!
There were over 44 lakh orders placed on Zomato only during the pandemic 2020. It is like Zomato delivered 22 biryanis every minute.
Many daily wagers have lost their job due to the lockdown. In this situation, they will need someone’s support to feeding themselves. To help them, Zomato started “Feed the Daily Wager” in India wherein they will be distributing ration kits to the daily wager communities.
The costliest order amount on Zomato was of Rs 2 Lakh.
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