Title: - ZOMATO: An Indian Start Up Acquiring The World

A CASE STUDY
ON
ENTREPRENEUR
DEVELOPMENT
Title – ZOMATO: An Indian start up acquiring the
world
Presented By- Shikhar Gupta

Himani Sharma
Suraj Malik
Aditya Bhanot
Introduction
. Zomato is a restaurant searching platform and discovery
service founded in 2008 by Deepinder Goyal and Pankaj
Chaddah.
 It currently operates in 23 countries, including India, Australia and
the
United States.
 It is named by foodiebay in 2008 but in 2010 it was changed as
ZOMATO.
 Service provided by zomato i.e restaurant searching , discovery,
online
ordering and table reservation etc.
 Employees working in industry 2000+.
 Users of the consumer service industry is above 19 millions
visits monthly
 It is available in the various language i.e English, Turkish,
polish,
Indonesian, Spanish, Italian etc.
HISTOR
YThe service started as “Foodiebay” in the cafeteria of Bain and

Company. Customer looks up the menus at the lunch hour then then
the entreprenuer scan the menus on the websites and the websites
have lots of the traffic and was lauched publicly in 2008.
 The websites cover the delhi NCR restaurants, kolkata and Mumbai.
 In november 2010 the company renamed as ZOMATO and covers
the world.
 In 2011, Zomato started to cover in Banglore, pune, chennai,
hyderabad and Ahmedabad and they launched applications for
ios, android, Window phone, and blacberry devices.
 Zomato expand most of the contries that is the world in 2012 –
2013.
 In 15th October, 2015 Zomato changed business strategies from a
Full-Stack market to an enterprise market. This led to Zomato firing
10% of its workforce which equals about 300 people.
 Zomato covers over a million restaurants across 10,000+ cities in 23
countries
Reasons for upliftment of their business:
.To differentiate themselves from their competitors, Zomato concentrated

on adding approx. 18,000 new places to eat from.
.The key factor for Zomato success is its marketing strategy and in-
depth knowledge of their competitors. Zomato aims to be a place
where the
foodies hangout.
.The company has spread in 20 countries with its headquarter in New

Delhi, India providing service to over 35 million values customers per
month.
The list of registered restaurants on the website has increased to

384,100
till March 2015
 Zomato was based on the simple idea of providing scanned menus to
customers, along with contact numbers of restaurants, to enable them
to order food over the phone.
 In a span of seven years, it has emerged as the country’s largest online
and mobile restaurant discovery service, with over one million
restaurant listings across 500 cities in 22 nations, clocking more than
19 million monthly visits on an average
Strategies adopted by Zomato:
1. Cost Leadership
Zomato charges restaurants 7% of each order size, compared to
15-20%
charged by rivals because of it, restaurants are able to keep
their prices low and provide the customers quality food, giving
customers an experience of value for money and a reason to
come back.
2. Capital Investment
Zomato received an initial investment of Rs.4.7 crore from Info-
Edge India in August, 2010. Due to high growth rate of the
company, they witnessed an increase in capital fund investment by
Info-Edge. Info-Edge subsequently invested Rs. 13.5 crore in
September, 2011 followed by a $2.5million and $10million
investment in year 2012 and 2013 respectively. By the end of this
period, Info Edge almost had 57% share in the company.
3. Business Model
Zomato follows a simple business model. While starting afresh in
the new city, some number of people is assigned in each city to
collect data about the restaurants and clubs around the city. There is
a centralized team based out of NCR which processes and cross-
checks the data to confirm the validity. The data is then processed to
be put up on the website. There is a separate team for advertising,
which sells the website to the restaurant owners and attracts them
to advertise with Zomato. 95% of the revenues are earned from
advertisements from the local restaurants, while the rest can be
attributed to event ticketing and restaurant booking.
4. Marketing Strategy
Zomato started with direct marketing techniques like SMS and
Direct mailers. Through direct SMS, Zomato targeted six lakh
unique customers as a first stage. Irrespective of users’ responses
Zomato blasted them with 6 SMS per day for one month. Zomato
believes it increased their reach with this technique. Next is direct
email, where they effectively reached corporate in bulk and hence
reached the professional employees which are their primary target.
They distributed pamphlets in specific areas. The pamphlets were
very specific to their business. They were attractive, colorful and of
good quality to customers.
5. Online Food Delivery
The next food order that you place from your favorite
restaurant online might be delivered to your doorstep by
Zomato itself.
 Right now Zomato promotes itself as Food Network. On Social
Media, they follow simple strategies of always be there for
your customer and only best content needs to be sent to
customers. They treat Face book and Twitter as two different
platforms. Twitter is more used .
 For interaction and conversations and Face book is primarily
used to push their content and to reach more people.
 Once a user logs into Zomato with the help of Face book or
Google account, his/her friends will be automatically
identified on the site and they can easily follow their friends.
As the friends’ ratings are more trusted by users when
compared to Zomato’s influencing factor is much higher
with
the help of social media.
Challenges faced in online food
delivery:
1. Being in the daily meals market, they have to work with very low ticket
sizes starting at Rs 50/- with no minimum order requirements or
delivery cost. Considering the costs associated with food production,
packaging and delivery, maintaining a strong unit margin is the
biggest challenge.
2. A very high competition is already present in the market, who have
set
the parameters to be a successful among customers.
3. Confusion may happen between the restaurant and Zomato which
may effect the end customer and the customer has to suffer.
4. Brand Zomato puts its name on stake if anything gone wrong because
of restaurants or the delivery will surely effect its image .
5. Keeping track of their competitors.It is always important to know
what other brands in the same space are doing since there is a
strong overlap in target audience.
1. Relevant & Constantly updated information needs hiring the skilled
local people, in more numbers at ground level.
2. Local level tie-ups , acquisitions & mergers to support the

aggressive expansion plans, requires continuous capital funding as
well.
3. Company should try and work with every new country as a

separate unit as that will give more flavor of localness, Different
Marketing & Promotional campaigns keeping in mind local taste &
preferences.
4. Improvised customer engagement on social media to retain brand

loyalty.
Reason behind success
 First mover advantage.
 Strong content platform.
 Efficient employees
 Good rating mechanism and social platform.

MILESSTONES OF
ZOMATO
 Number of listed restaurant:
In 2008-4000 restaurants
2013-94000
restaurants
 Monthly visitors of visitors:

In 2008-0.015 millions
2013-1 millions
 Yearly Revenues:
In 2008-0.06 crores
2011-11.3 crores
THANK
YOU

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A CASE STUDY

Presented By- Shikhar Gupta

.To differentiate themselves from their competitors, Zomato concentrated

.The company has spread in 20 countries with its headquarter in New

The list of registered restaurants on the website has increased to

2. Local level tie-ups , acquisitions & mergers to support the

3. Company should try and work with every new country as a

4. Improvised customer engagement on social media to retain brand

 Strong content platform.

 Good rating mechanism and social platform.

 Monthly visitors of visitors:

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