Professional Documents
Culture Documents
On
By
II Semester
Guided by
Mr. S.S Khullar
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.
Age group
Lifestyle
Frequency of ordering food
Average amount spend per meal
Preferred cuisines
Entertainment preferences
Preferred restaurants.
Chapter 1
Introduction
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.
o Delivery as a Service
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.
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
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.
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.
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.
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.
On line surveys,
Phone conversations,
By post.
In larger scale marketing research full dedicated field team or person may be required in order.
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).
Questionnaire Design
A questionnaire is a document designed with the purpose of seeking information
from the respondents.
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
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
Chapter 3
Methodology
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
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.
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
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.
Frequency
15-20 times; 5%
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:
Way of ordering
Satisfaction
Neutral; 7%
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
SWOT Analysis:
Strengths:
Weakness:
Opportunities:
THREATS:
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.
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 .
Zomato Analysis
SWOT Analysis
Strengths
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
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
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.
Success Factor
Strategyof Zomato
Zomato works with keen interest on various strategies to achieve their goal. It
includes
Marketing Strategy
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.
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.
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.
Recommendations
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 near hostels and colleges will be most effective since
most of the students prefer to have variety of food at reasonable rates.
b. Online portal.
c. Mobile application
b. Satisfied
c. Neutral
d. Dissatisfied
e. Highly dissatisfied.
Q4. Occupation?
a. Student
b. Working individuals
b. 10-15 times
c. 15-20 times.
d. 20-25 times.
b. 2-3
c. 3-4
d. 4+
b. 250-400
c. 400-550
b. 150-300
c. 300-400
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?
b. Zomato
c. Swiggy
b. 2-3 pm
c. 7-9 pm
d. 9-11 pm