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Study On Customer Satisfaction Towards Swiggy
Study On Customer Satisfaction Towards Swiggy
On
Session 2022-2023
School of Management
Babu Banarasi Das University
Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India
DECLARATION
I declare that the thesis entitled “Study on Customer Satisfaction towards Swiggy
Administration (BBA) is the record of research work carried out by me during the
period from April– 2022 to May- 2022 under the supervision of Dr. Shreyansh
Singh, Faculty Guide From Babu Banarasi Das University, Lucknow and this has
not formed the basis for the award of any degree, diploma, associate ship, fellowship,
I further declare that the material obtained from other sources has been duly
acknowledged in the Research Report. I shall be solely responsible for any plagiarism
Karan Mishra
Date: __/__/____ Roll No. 1200671223
Place: Lucknow BBA 6th Semester
ii
ACKNOWLEDGEMENT
In order to accomplish a task, facts, situations and persons integrate together to form a
background. “Greatness lies in being grateful and not in being great.” This
the project.
The experience which is gained by me during this project is essential for me at this
I am thankful to my project guides Dr. Shreyansh Singh for kind support and
supervision under whose kind & constant guidance I had the opportunity to expand
my horizons and view the various problems from different prospective. I am also
thanking her for sparing her valuable time to listen my problems and difficulties faced
Karan Mishra
Roll No. 1200671223
BBA 6th Semester
iii
PREFACE
The primary objective of this report is to provide the insight into the core of Study on
System.
We hope that the report has made the text interesting and lucid. In writing this report,
Any suggestions to improve this report in contents or in style are always welcome and
iv
TABLE OF CONTENT
Certificate ii
Declaration iii
Acknowledgement iv
Preface v
1. Introduction 1-11
8. Findings 90-91
9. Recommendation 92-93
v
CHAPTER-1
INTRODUCTION
INTRODUCTION
Online food ordering system is a system to manage the business. The main point of
developing this system is to help the customers to manage the business and help
customers through online ordering and lunch reservation. The project is being
developed because of the long queues that will be in the restaurant during lunch or
dinner hours, one for purchasing tickets and one for collecting food. With the new
system, the customers would be able to order their food from the comfort of their
offices, classrooms, hostels and anywhere outside the school campus without queuing.
The system will cater for the disadvantages of the traditional method which is
currently in place. India’s food-delivery industry, brimming again with funds, will
need to do much more to survive in the long run than just consolidate. After an initial
hype and a slump that followed, the last 18 months have seen a significant increase in
mergers and acquisitions (M&A) in the space Most recently, on Aug. 02, the
Scootsy for Rs50 crore ($7.3 million). Scootsy delivers food from premium eateries,
and also other items like gifts and clothes. This is the second acquisition by four-year-
old Swiggy and marks the 11th M&A deal in the food-delivery space in India since
January 2017, data from startup tracker Tracxn showed. “Consolidation is happening
as the big boys need more growth and smaller ones are looking to exit,” said Yugal
food-delivery companies like Scootsy) may earn better revenue per order but they
2
Foodpanda, which was bought by Ola in December 2017, is reportedly in talks to
acquire struggling food-tech firm Holachef. And earlier this year, the rumour mills
were abuzz about a potential merger between the two food tech biggies, Swiggy and
sector. With the coming of the 21st century, we have entered an “e” generation era.
The Internet has generated a tremendous level of excitement through its involvement
with all kinds of businesses starting from e-Commerce, eBusiness, eCRM, eSupply
eGovernement. The Internet has been widely used in many sales and marketing
sales tool, distribution channel, and as a customer support tool (Singh, Jayashankar
and Singh 2001; Calles 2000; Sandberg 1998; Peterson, Balasubramanian and
anyone because of its ability to make viable the conduct of business in cyberspace, or
order goods and services virtually anywhere, 24 hours a day; 7 days a week without
worrying about store hours, time zones, or traffic jams. The Internet has also provided
commerce has grown phenomenally in the past decade for a variety of reasons
consumer income and education, and rapid financial development throughout the
world. The use of the Internet as a shopping or purchasing vehicle has been growing
at an impressive rate throughout the last decade. The tremendous growth of online
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sales and the unique functions of the Internet have drawn a great deal of attention
from many companies rushing in to set up businesses over the Internet without
knowing what factors actually motivate consumers to buy products or services online.
Many marketers agree that Internet marketing will definitely increase customer
spending and loyalty to both online and offline products if it is executed properly.
and its ability to transmit information quickly and inexpensively when compared to
Abram& Caldwell 2000; Waldo 2000). The simultaneous and rapid rate of consumer
adoption of personal computers and network systems have encouraged and pressured
marketers to provide Internet retailing sites. Some researchers in fact predict that the
need for physical stores could be eliminated in roughly four decades and replaced
with electronic retailing (Cope 1996). While many marketers acknowledge the
buying products or services online. Despite the increasing popularity of the Internet,
evidence from television, radio, popular press or magazines In summary, the benefits
of using the Internet in marketing are enormous as they offer a huge opportunity for
marketers to create innovative activities that have not previously been viable.
behaviour when purchasing products online. This information will help marketing
managers to plan their marketing mixes and offers to better meet customer’s
satisfaction, build strong brand loyalty and ultimately, provide consumers with a solid
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rationale for continuing to buy the same brand. This study is thus significant as it is a
consumer decision making when buying health foods online. The research problem
Services are websites that feature interactive menus allowing customers to place
orders with local restaurants and food cooperatives. Much like ordering consumer
goods online, many of these allow customers to keep accounts with them in order to
make frequent ordering convenient. A customer will search for a favourite restaurant,
choose from available items, and choose delivery or pick-up. Payment can be amongst
others by credit card or cash, with the restaurant returning a percentage to the online
food company. Online food ordering services are websites that feature interactive
menus allowing customers to place orders with local restaurants and food co-
operatives. Much like ordering consumer goods online many of these allow customers
customer will search for a favourite restaurant chooses from available items, and
choose delivery or pick-up. Payment amongst others by credit card or cash with the
been around for over a decade closing the gap between food and the internet has taken
longer. The first restaurants to adopt online food ordering services were corporate
franchises such as Domino’s and Papa John’s. Online food ordering could be called
the response of the internet to the desire for delivery food. It is a growing trend
especially in urban areas and on college campuses that allows people to order from
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cases handle complicated web pages can be used to make orders, though a lot of
people rely on a desktop or laptop computer for this. ‘Ordering form grocery stores to
stock the kitchen, instead of placing one time orders with a restaurant. There are
several ways in which online food ordering from a restaurant may occur. A restaurant
can have its website with easy features for placing an order for pick up or delivery.
Some add a third option of being able to make reservation. Instead of calling for a
delivery, people just access the internet to the restaurant site and make their order.
consisting of different regions and states within. Traditionally, Indians like to have
However, with times due to increasing awareness and influence of western culture,
there is a slight shift in food consumption patterns among urban Indian families. It
started with eating outside and moved on to accepting a wide variety of delicacies
from world-over. Liberalization of the Indian economy in the early 1990s and the
subsequent entry of new players set a significant change in lifestyles and the food
tastes of Indians.Fast food is one which gained acceptance of Indian palate after the
multinational fast-food players adapted the basic Indian food requirements viz.
vegetarian meals and selected non-vegetarian options excluding beef and pork totally
from their menu. Multinational fast food outlets initially faced protests and non-
acceptance from Indian consumers. This was due to primary perception that these fast
food players serve only chicken and do not serve vegetarian meals. Perceived
expensive besides being out-of-way meals in Indian culture. Today, fast food industry
acceptance primarily from Indian youth and younger generations and is becoming part
of life. Keeping in view the Indian habits and changing preferences towards food
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consumption, this study has its focus to understand the factors affecting the perception
of Indian youth, in the age group of 20-30 years, towards consumption of fast food as
There are advantages for both the customer and for the restaurants who participate in
online ordering. First, a customer can order at will when they have time to. Also, the
customer is able to customize their order the way they like it without errors in
communication between the customer and the person taking the order. In addition to
customer advantages, the restaurant is able to take more orders with less staff. The
restaurant does not need a waiter or hostess to be on the phone to take the order. The
Customers are not able to ask about quality of food or ask for any specialized diet
foods. It is more difficult to ask for gluten free or allergy free foods with online
ordering. Also, it is more possible for a customer to place an order, but never pick up
the order which can lead to waste of food and possibly a loss of profits.
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Swiggy is an online food ordering and delivery based chain owned and operated by
Bundi Technologies Private Limited. The company has its headquarters in Bengaluru,
Karnataka in India and was founded in 2014. It delivers food in over more than 25
cities of India. Swiggy has a large valuation market approximately $1.3 billion and its
total funding is $465.5 million. It is about to spread its services in many cities across
the country.
Swiggy was founded by Nandan Reddy, Rahul Jaimini and Sriharsha Majesty in
August 2014. Three of them were from different field. Nandan and Sriharsha were
both alumni of Birla Institute of Technology and Science in Pilani, and in 2013 they
had a logistic company named Bundl Technologies that used to connect small and
medium companies.
After about a year and half years they thought of building an online food delivering
logistic company with the concept of “hyperlocal food delivery” and entered the
restaurant industry. They asked one of their friends, Rahul Jaimini, who was an IIT
Kharagpur alumnus and was working as a software engineer for online fashion store
Myntra to join and when he agreed, they created and began the food chain delivery
Launch
south India first and gradually expanded to the top 25 cities across the country
including all metropolitans like Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and
major cities as well. Currently, they are trying to reach small towns of India too.
According to the company, now they have more or less 40,000 restaurant partners
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Swiggy’s marketing strategy and Interesting Reasons behind its success
❖ Early disruptor:
At the very beginning, when Swiggy just started their business, there was not that
much competition because food logistics as a concept was new to the country. Swiggy
was perhaps the first one who made it possible and the game-changing policy was the
“live tracking” system. It was an extraordinary feature where in your food is getting
delivered at the doorstep along with the live status of your order.
❖ Transparency:
Transparency is something that Swiggy has maintained and kept it at the top of their
priority list. As they operate through their website and app, you can easily download
or access it from Android or iOS. They will offer you with all your nearby options of
restaurants so that you can have a look to the menu along with their actual price. Once
your order is placed they will assign a delivery boy within a very short period of time
and immediately after assigning him, they will provide you with all details along with
the contact number, name, and a short bio detail, so that you don’t have to face any
Swiggy treats their customer as their main priority. They have promised to provide
the best services with various options as they have partnered with almost 40,000
restaurants in India and they literally follow each and every movement of the assigned
delivery boy until the customer gets their order. If somehow a delay happens, Swiggy
itself calls the customer and ask them if they can wait and apologize for being late.
Other than that they are a very tough competitor of the other food delivery services
like Zomato, Foodpanda, Ubereats as they also try their best to take the minimal time
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❖ Price:
If you are ordering from Swiggy, they will provide you with the restaurants’ name
along with their food menu including price so that you can check all of them and then
decide accordingly. They even offer you with coupons that can be applied while
placing the order so that you can get an extra discount on your total amount. They
would charge you with service tax which depends on the specific restaurant you are
❖ Place:
Swiggy delivers food almost in every top city in India including Kolkata, Bangalore,
Hyderabad, Mysore, Chennai, and the list goes on. Their motto is to deliver food at
your doorstep. Swiggy accepts cash on delivery, debit and credit cards, Paytm, and
various other digital wallets. You just need to give your pin code and check out the
❖ Attention to detail:
There were few rumours about the other food delivery sites like Zomato, Foodpanda
is taking over Swiggy. But right then Swiggy gave a huge discount that shut all those
rumours down and immediately after that Swiggy started to call each of their
customers and asked for feedback. They came up with a new and refreshing ad and
again which is very simple yet meaningful. So, those rumours were completely fake.
10
Values at Swiggy
Swiggy stands for certain values which make it stand out from the rest of the food
logistic companies. The company stands for these values and have highlighted them
Be Humble
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CHAPTER 2
LITERATURE REVIEW
12
LITERATURE REVIEW
The Rampant growth of wireless technology and Mobile devices in this era is creating
a great impact on our lives. Some early efforts have been made to combine and utilize
aims to automate the food ordering process in restaurant and also improve the dining
experience of customers. In this paper we discuss about the design & implementation
of automated food ordering system with real time customer feedback (AOS-RTF) for
restaurants. This system, implements wireless data access to servers. The android
application on user’s mobile will have all the menu details. The order details from
customer’s mobile are wirelessly updated in central database and subsequently sent to
kitchen and cashier respectively. The restaurant owner can manage the menu
reducing human errors and real-time customer feedback. This system successfully
over comes the drawbacks in earlier PDA based food ordering system and is less
systems.
food retail channels. Data were collected from 243 US consumers who currently buy
their groceries online. The majorities of online users were younger than 55 years of
age, female, and reported annual incomes of $70,000 or more. Over 70 percent
reported convenience and saving time as their primary reasons for buying groceries
online but 15 percent cited physical or constraint issues that made it difficult for them
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to shop at grocery stores. Of the respondents, 19 percent bought all of their groceries
online. Also reports demographic and online shopping variables that are significantly
related to the primary reason for shopping online, willingness to buy all grocery items
online, perception of time spent shopping online vs in the store, and experience with
There has been a humongous increase in the food industry as well as the technology
industry from the past two decades and both of these sectors have a huge impact on
our lives. Our project basically aims in alleviating the tedious food ordering system by
replacing it with technology .This system uses smart phones, tablets, notes which
connects through WLAN for food ordering & its transactions. The application will be
available on the customers (users) mobile phone(android) and will have the detailed
menu of the restaurant, thus providing an easy & convenient way to place order and
also minimize human errors. The customer will get a token on his/her mobile phone
emphasized the need to enhance the working of hospitality industry. This research
work aims at improving the quality of services and business of the hospitality industry
wireless technologies are already in use enabling partial automation of the food
ordering process. In this paper, we discuss about the integration of touch technology
in restaurants using android. This system is a basic dynamic database utility system
which fetches all information from a centralized database. The tablet at the customer
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table contains the android application with all the restaurant and menu details. The
customer tablet, kitchen display and the cashier counter connects directly with each
and accuracy for restaurants by saving time, reduces human errors and provides
opportunities for many businesses, ranging from small to large corporations. The
creation of online banking has further facilitated various online businesses including
online food ordering. Online food ordering Satisfied the needs of busy individuals
living in the city who place their order online and receive delivery within a few
trust, satisfaction and loyalty mostly in the Offline consumer environment. However,
researchers have recently discovered that the online environment offers great
opportunities for interactive and personalised marketing (Burke, 2002). Unlike the
offers more opportunities for interactive and personalised marketing. The Internet
provides an impulsive shopping channel (Phau and Lo, 2004). Customers can easily
search the competitive providers that match their expectation (Singh, 2002),
besides receiving input from peers through interactive media such as blogs,
Facebook and Twitter) in making purchase decisions (Herring et al., 2005; Bernoff
and Li, 2008).The last decade has witnessed extensive literature on website quality
15
novelty and complexity (Huang, 2003); community, individualisation, free services,
appearance, content quality, specific content and technical adequacy (Liao et al.
and merchandising (Jin and Park, 2006); and, transaction speed, information
quality security and user-friendliness (Shih and Fang, 2006). Among all these
factors, customers usually expect three website merits to assist their online
encounters, that is, system quality, information quality, and service quality (Shih,
attributes (Dholakia and Zhao, 2010). Online shopper viewing time averages 30
seconds before he moves to another website (Brohan, 1999). The website must be
enticing (Dawson and Kim, 2010) because its cues lead to affective and cognitive
internal states (Robert and John, 1982) compared with traditional retail stores with
tactile and olfactory cues (Eroglu et al. 2003). Recently, a number of researchers
have conducted empirical study on website quality such as Dickinger and Stangl
(2013), Rahimnia and Hassanzadeh (2013), Liu, Li and Hu (2013), Xu, and Benbasat
and Cenfetelli (2013). Therefore, the preceding discussion proposes four important
and payment system. Information is a prerequisite to trust (Flavian et al., 2006; Wang
and Emurian, 2005). In a related study, Yoon (2002) tested the relationship of website
form’s reputation to website trust. He found that website properties have a significant
relationship with website trust. According to Park and Kim (2003), more extensive
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satisfaction. Ballantine (2005) also found a positive relationship between website’s
website (Peterson and Merino, 2003), and this calls for further examination (Kim
navigation or website structure (Flavian et al., 2006). If the former is poorly designed,
information reduces search time and hence increases consumer satisfaction (Glazer,
1991; Lynch and Ariely, 2000) and facilitates informed decision making. Moreover,
the amount of information (Ballantine, 2005) available may determine the success or
failure of electronic commerce (Yang, 2001). Website design deals with emotional
appeal, balance, uniformity and aesthetics of the website. It includes colour, shapes,
photography, or even the font style (Garrett, 2003). Some research suggests positive
association between trust and aesthetic beauty of the websites (Karvonen, 2000)
although a few of them show significant association between these two (Wang
and Emurian, 2005). However, all empirical studies show the positive stance in
terms of the relationship between enjoyable user experience and website aesthetics
(Tarasewich, 2003). According to McKinney et al. (2002), “No matter how thorough
the information content of a site is, a customer who has difficulty in searching and
getting the needed information is likely to leave the site” (p. 308). Intention to buy a
product from the website is affected by the level of trust. Therefore, security
has been addressed as the primary concern among online consumers (Flavian et
al., 2006). Mukherjee and Nath (2007) also suggest that perceived value over
privacy and security features of the websites is the crucial antecedent of trust which
17
security and privacy of all the e-service providers have been addressed as the
primary concern in many studies (Sathye, 1999; Liao and Cheung, 2002; Poon,
2008). Specific ally, privacy is treated as the key element for generating the online
trust (Hoffman et al. 1999) while security indicators such as Better Business Bureau
and trustee seals adopted by the websites have positive association with
Online shoppers are known for low tolerance (Chen and Chang, 2003) for system
feedback. On average, online shoppers only wait for eight seconds before leaving
(Dellaert and Kahn, 1999). A web page design should consider appearance,
design should save the customers’ transaction time. Otherwise, the customers may
hesitate to use the website’s payment system. If the company’s website is considered
and Cannon, 1997) and likeability (Hawes et al. 1989; Doney and Cannon, 1997)
which are positively associated with customer trust in the salesperson and the
company (Doney and Cannon, 1997; Friedman et al., 2000; Tan and Thoen, 2000-
and payment system play important roles in determining customers’ trust in their
Website quality has positive impact on customer satisfaction. Service quality plays an
important role for customer satisfaction because it is the customers who are the
quality are invaluable to companies who earn their revenues or part of it from
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SERVQUAL tool is widely used by various organizations to measure their customer
satisfaction and loyalty (Landrum, et al., 2009). The concept of SERVQUAL was first
measurement of service quality on the basis of focus group’s inputs. Despite its
organizations such as libraries and web services (Gede and Sumaedi, 2013; Reichl,
Tuffen and Schatz, 2013; Wang et al., 2014). Quality has generally been defined as
“fitness for use” and “those product features which meet customer needs and
services provider to customer, which can be tangible products and something that is
Rolland and Freeman (2010), the concept of service quality in e-Tailing defines (1)
purchasing and receipt of products and services, and (2) the customer service
the service. While service perceptions influence loyalty (Juga et al., 2010),
loyalty (Olsen, 2002). The core sustainable strategy for online food ordering
perceived quality of the service provided by the online food ordering companies has a
19
large influence on the customer satisfaction. In the e-commerce environment, the time
of delivery plays a crucial role in satisfying and retaining customers. Dholakia and
Zhao (2010) found that timing plays an important influence n the relationship between
online store attributes and satisfaction. Delayed delivery beyond the common practice
(e.g. one hour delivery) will have a negative effect on satisfaction regardless of the
Liu et al. (2008) found that 25 per cent of Chinese customers were not Satisfied with
delayed delivery or wrong product. Furthermore, their research revealed that delivery
customer evaluations and satisfaction (Dholakia and Zhao, 2010). Delivery becomes
(Dholakia and Zhao, 2010). As a result, on time delivery plays a very significant role
Customer ServiceReibstein (2002) found that perceived customer service support has
a high correlation with likelihood to purchase again. Posselt and Gerstner (2005),
using the theory of order effect, argue that satisfaction with a service will be
influenced by the sequence of service encounters. In fact, websites that were rated
poorly in customer service were the least likely to be shopped again which reflects
customer service quality has strong effect on overall online customer satisfaction.
Many Internet customers are concerned with real time, return and replacement
issues, and speed of response time to their queries from customer service
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representative. Finally, despite a considerable debate about the causal ordering
between service quality and satisfaction, this research proposes in line with
previous researchers (Selnes, 1998; Wiertz et al. 2004) that service quality is an
related to satisfaction with fast-food restaurants (Kivela et al., 1999; Law et al.,
2004). Although food can be argued to not be part of service quality, the focus is on
its characteristics such as fresh, healthy, well presented and cooked which are
influential factors for the customers to be Satisfied and make their decisions to
purchase again. In line with this observation, according to Kotler (1991), service also
which can be a tangible product and something that is added to intangible service, or
in an independent form. Previous researchers (Qin et al., 2010) found that three
factors, that is, food quality, perceived value and service quality all had a direct and
positive relationship with satisfaction. Also, other researchers such as Andaleeb and
Conway (2006) and Parasuraman et al. (1994) revealed that price and product
several studies on fast food restaurants showed that food quality is related to
(Kivela et al., 1999; Law et al., 2004). In this study, it is expected that there will be
food delivery companies should consider that food quality is one of critical strategies
commerce environment, if the customer has positive experience from his or her
previous use of a product or service, then he or she will choose the same website to
21
place the order. Likewise, in the case of online food ordering, customers will revisit
the website if they trust it. Yoon (2002) found that there are four factors that are
search functionality, and personal variables. These four factors formulate trust and if
they are fulfilled then the overall satisfaction is increased (Yoon, 2002). Therefore,
based on this discussion, it is expected that website trust will have a significant effect
satisfaction is the ultimate objective of the customer relationship and has some major
antecedents such as perceived value and perceived quality. It eventually leads to the
approach, whereas the literature reveals only limited number of studies in online
retailing (Evanschitzky et al. 2004; Hsu, 2008; Jiang and Rosenbloom, 2005; Kim et
al., 2006; Szymanski and Hise, 2000). Indeed, customer satisfaction drives several
beneficial outcomes. For instance, Fornell et al. (2006) shows a list of published
evidences that confirms the favourable association between consumer satisfaction and
choice probability and repeat purchase probability of a brand) and attitude (e.g.
Most of the consumers remain with the service providers due to the customised based
and/or desired based attachments (Bansal et al., 2004; Juga et al. 2010; Tsai and
Hunag, 2007). Caruana (1999) depicts service loyalty as the level to which a
consumer shows repeat purchasing attitude from a specific value provider, have the
favourable attitudinal disposition towards the offer and consider only these providers
22
when a demand for this specific need exists. Many of the previous studies confirmed
(Mittal and Kamakura, 2001; Oliver, 1997; Yu and Dean, 2001), and positive
(Hackman et al., 2006). Cass (2001) argues that a Satisfied customer is expected to
al., 2006; Yoon, 2002). Hence, on the basis of the foregoing discussion, the
loyalty.
According to D’Incau D. and B. Anckar (2002), Mobile commerce has been emerging
as one of the important aspects of every person’s life. Mobile commerce has also, in a
way, given freedom to most of the people. Scharl and Dickenger (2005) stated that
One of the most important key factor in mobile marketing communication is through
According to Tsang and Liang(2004), This study focuses on the attitude of the
consumers had a very negative impact on the consumer. Persuad and Azhar(2012)
stated that Mobile phones have become a very integral part of every human being’s
life. Though humans adopt mobile phones to improve their social, professional and
private lives, it also helps the marketers in marketing their product. To deliver mobile
chains including technology, people, processes and costs. For participating in mobile
marketing, brand loyalty is the basis for it. Kimes(2011) said that The amount of
increase in online food ordering is because of convenience and control. Almost half of
the populations has ordered food online. Personal interaction with restaurant
23
employees, satisfaction level of consumers after ordering food online and changed
behavior of the consumers regarding food mobile ordering Apps shows the perception
of consumers for mobile food ordering apps. Parashar and Ghadiyali(2002) stated that
A huge rise in digital technologies have given rise to the industry because of which
Zomato has become one of the most popular online food ordering service. With the
boom in the digital industry, market size of food is expected to reach 42 lac crore by
2020. These apps should also be trustworthy. One more major reason for the
customers getting attracted towards these apps are the special offers given to them.
The best way for the marketer to promote these apps is through social media. J.
Das(2018) has studied, analyzed and compared the top 4 food delivery apps namely,
Zomato, Swiggy, Foodpanda and Ubereats. Providing better discounts” and “better
also positioned at the top by the customers while considering on delivery on time and
good customers service. In both the situations, customers ranked Ubereats at the last
position.
According to Sethu and Saini(2016), The online food ordering apps were analyzed by
the researcher on the basis of certain characteristics. Majority of the consumers were
aware about purchasing on the internet and found that it is very convenient to use
internet. Boyer and Hult(2005) said that the Behavioral Scoring Model which says
that the companies analyzes the feedback surveys of the customers, studies their
purchasing behavior and patterns and predict the future purchasing behaviors of the
customers. This research model comprises of few elements which helps the company
in India has been growing at a larger pace due to technology. From making orders on
call to ordering online and satisfying all the needs of the customers and making
24
changes according to the changing needs of the customers. Now everything can be
delivered to the customers at their doorstep. According to Adithya R., Singh, Pathan
and Kanade(2017), A food menu is set in the online food ordering system so that the
customers can place their orders successfully and with this they can also track their
orders. Also, various facilities are also provided by these apps for making its access
convenient for the customers. Donkoh and Quainoo(2012) stated that the Customers
perceptions about food and services are very important for the food and service
industry because it helps them to identify the needs and preferences of the customers
and satisfy them. In this study the perception of the customer were judged on various
factors. Dang and Tran(2018) said that Internet has played a major role in increasing
the awareness of the online food delivery apps. Through internet, people can search
about foods and restaurants, compare their prices and their services and have easy
access to them. Internet has made all these things convenient for the customers.
Kanteti(2018) stated that Startups have become the trend setters in India and are
ruling the economy since past few years. These companies are started by tech savvy
young individuals. These young individuals having fresh brains and mew and
innovative ideas starts different kinds of businesses with the help of technology.
delivery systems in order to serve the customers well. Yang Fan(2014) stated that
Web App and Android Apps have been developed in recent years after the
advantages of web App are that there is no need of updating or installation and
browsers can be easily visited. The advantages of android App are the development of
powerful framework, convenience, wide market place for app distribution. Leong Wai
25
Hong(2016) stated that People have managed their task easily and efficiently because
manpower task, helps in reducing the time, and further helps in generating report for
Ordering.”(2018): The study found out that recent development of the Internet has
development has made Online food ordering services seamless for people who want
to get food delivered at their doorstep. Although consumers continue to go out for the
meals, consumers feel very convenient to order food online since it frees the
customer from personally visiting the restaurants. In this study, our main focus
was to analyze the perception of consumer towards Online food ordering services. In
order to understand what factors have played a dominant role to attract consumer in
the developing country like India towards them, we decided to study on the
consumer perception on online food ordering. In this research paper, two objectives
were set for study. The first one was to identify the factors which influence the
consumer to order food online and the other one was to know the consumer
understand the behavior and perception of people for online food ordering. It shows
how easily people search for a favorite restaurant, choose from available items and
H.S. Sethu & bhavya saini “Customer Perception and Satisfaction on Ordering
Food”. (2016): The study revealed that the online food ordering services was used by
100 percent of the respondents, and the buying decisions were largely influenced by
26
opinions of friend’s family and discussions on online forums. The study reveals that
good word of mouth and experiences by existing customers and online forums decides
the success of web based food shopping. Dr. Neha Parashar & Ms. Sakina
Food App Services”. (2017): The study found that Services are intangible products
where in there cannot be any transfer of possession or ownership, and they cannot be
sold but come into existence at the time they are consumed or bought. Services
education, etc. Digital services on the other hand are services that are anything that
forms i.e. applications, web pages, social media, etc. In the paper the major focus will
be on the various apps that are available either by 3rd party for delivery purpose or by
restaurants themselves for various purposes like delivery, pointing system, in house
app ordering, etc. Consumer behavior is the study of how individual customers,
groups or organizations select, buy, use, and dispose ideas, goods, and services to
satisfy their needs and wants. It refers to the actions of the consumers in the
marketplace and the underlying motives for those actions. From this research paper
technology and what are the different kinds of applications that consumers are
satisfied with and what makes them happy and satisfied about the service. The
main objective of the paper is to understand the relation between facilities and the
purchase behavior. Secondly to find the most popular app in the food delivery
the restaurant industry. Keywords: Consumer behavior, Food delivery app, zomato,
fasso, e-commerce.
27
CHAPTER 3
COMPANY PROFILE
28
COMPANY PROFILE
Swiggy is a leading food ordering and delivery startup in India. The company started
platform that allows customers to order food from nearby restaurants and get it
delivered at their doorstep. With Swiggy, customers do not have to keep the contact
numbers of various restaurants and eateries in their locality. Swiggy works as a single
point of contact for ordering food from all restaurants that may be there at a particular
location. Swiggy has its own team of delivery professionals who pickup orders from
restaurants and deliver it at the customer’s doorstep. This has made the task of
ordering food a lot easier for customers. Restaurants also gain by getting more orders
and avoiding costs and efforts associated with maintaining their own delivery
personnel.
29
History:
The idea for Swiggy came in 2014, when the founders realized that there was a huge
gap in the food ordering and delivery space. Restaurants often faced manpower
problems and their delivery personnel were also not trained to deliver food in time.
Swiggy started as a small setup in August 2014, with a team of six delivery personnel
and covering 25 restaurants. However, the idea soon became a huge hit among
customers and restaurants alike. Swiggy now has operations in 8 cities and more than
Funding:
Swiggy has received investments worth USD 155.5 million via six rounds of funding.
Acquisitions:
Swiggy had acquired gourmet food startup ’48East’ in December 2017. The
acquisition of 48East has helped Swiggy to strengthen its service offerings and add
additional capabilities as well. The deal was done for an undisclosed amount.
Competition:
Swiggy competes with other players in the food ordering and delivery space such as
30
About the Founders:
Swiggy was founded by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini.
currently serves as the Chief Executive Officer (CEO) at Swiggy. Co-founder Nandan
Kharagpur and he is the Chief Technical Officer at Swiggy. Prior to Swiggy, he had
Indian company that was launched with the purpose of offering a complete solution to
the urban foodie in terms of food ordering and delivery from best restaurants located
in the vicinity. It is a partnership based company and was founded in the year 2014,
August by its co-founders Nandan Reddy, Sriharsha Majesty and Rahul Jasmine. It
Foodpanda
Tiny owl
Zometa
SpoonJoy
BOX8
Deliver
Swiggy is one of the popular delivery companies that supplies ordered food and
beverage items to its customers. It has created a single window and included a wide
31
range of food parlours and restaurants under its umbrella.A customer now can make a
choice from visual menus of restaurants in neighbourhood and order online. Ordering
food and getting a swift delivery has become a hassle-free option from a customer
viewpoint because of Swiggy. The company has estimated seven hundred and fifty
restaurants on its platform and receives nearly seventy thousand orders on monthly
basis. Swiggy is not accountable for the quality of food as it only delivers from one
delivery. Swiggy has launched an On-Time-Delivery service titled Swiggy Select that
guarantees cashback if the order does not reach a customer in stipulated time-frame.
Swiggy has spread its presence to few cities in India like Bengaluru, Gurgaon, Pune,
Chennai, Delhi, Hyderabad, Kolkata and Mumbai. It has its headquarters base at
Telangana and Gurgaon in Haryana. It is a popular app that takes order for food
delivery from listed restaurants on its portal. Swiggy has set up a strong and
widespread distribution network to offer prompt and best results. It has an exclusive
selected restaurant and delivering it to customers. Delivery boys are equipped with
Swiggy App and smartphones that make tracking of a delivery throughout routeing
32
Price in the Marketing Mix Of Swiggy :
Swiggy has an extensive workforce and this flexibility prompts it to allow its
great deal. Swiggy was able to raise 2 million dollars in Series A funding from Accel
Partners and SAIF Partners. During Series B it raised 16.5 million dollars funding
from an undisclosed investment firm and Norwest Venture Partners. Swiggy has tie-
ups with restaurants that offer a minimum of 15% to 25% commission and this has
charges a minimum delivery fee from its customer irrespective of a small or high
amount order.
satisfied customers is its greatest advertising tools as they recommend the brand to
friends and family. Swiggy has adopted online marketing strategy and has taken help
#DiiwaliGhayAayi. Its Facebook page is very popular and active as it offers regular
updates and encourages active participation. Swiggy has launched innovative videos
that have become very popular amongst masses like Swiggy Goes International. The
#SwiggyTuesdays and offers to munch bag and coupons as rewards. Ahead of its
better grasp of the situation and later used it as a promotional strategy to gain brand
exposure.
33
SWOT Analysis
Strengths — The Swiggy brand has grown to be a good and respected brand in the
eight cities it currently serves. It is associated with quick delivery, a wide range of
Weaknesses — The company’s main weakness is the delivery charge for all orders
below Rs 250 while some of their main competitors like Zomato have free delivery on
all orders.
regulations present a threat to startup companies like Swiggy. Another cause for
concern is the growing health consciousness in India which poses a threat to all food
delivery and serving companies if they fail to meet or maintain improved health
standards. A study by Ali, Kapoor, and Moorthy (2010) showed that a significant
amount of the Indian population is shifting their top priority of food from price to
cleanliness and freshness. Swiggy and other food delivery service need to maintain
Swiggy aims to offer reliable, fast, and consistent service delivery. They also want to
increase market share within the cities they currently exist in, while also expanding to
all cities in India. Their target customers currently include 20–30 year olds, college
students, working professionals the e-Commerce savvy, and people living away from
their hometowns.
Competitors
34
The Indian food delivery market is fairly new and is currently valued at USD15 billion
(Nair, 2017). The market is fast growing, and its current main players besides Swiggy
SpoonJoy, BOX8, and Deliver. Even though there seems to be a lot of players in the
market, Swiggy’s main competition comes from Zomato and UberEATS. What sets
Swiggy apart from most of its competitors is their fast delivery service and the tracking
feature on their mobile app which has also enabled them to attract venture capital.
Sumer Juneja, a principal representing one of the VC companies funding Swiggy said
Swiggy to deliver a truly end-to-end service for consumers and restaurants in India
(Amarja, 2016). Swiggy’s delivery infrastructure solves a major need in the market by
enabling restaurants to concentrate on their core business and scale up their delivery
revenues.”
Swiggy’s marketing strategy aims to leave no one behind from social media users to
campaigns. The offline marketing strategy also includes the use of billboards and bus
stickers. The online campaigns are promoted via Facebook, Instagram, Youtube,
Twitter, and Pinterest. The company also uses social media to engage and collect
feedback from its customers. Swiggy’s most popular promotions are #SwiggyTuesdays
and Swiggy POP. Swiggy POP is an everyday offering of Rs 99 meals from different
their customers directly with their partnership restaurants. The Indian youth enjoys free
things, promotions, and sells which something that most local and international
35
companies know and exploit. On top of the promotions on their app, Swiggy also
organizes food trails. These events are daylong walks with free food at Swiggy’s
partnership restaurants. During these food trails, influencers, bloggers, and local
celebrities dress up in the brand’s clothing and lead the customers to the popular food
joints for free meals (Gupta, 2017). Cricket is almost a sacred sport in India. Swiggy
has sponsored cricket games and other sports. In 2017 Swiggy ran a big campaign at
the Indian Premier League where they used both print and TV campaigns to extend the
brand’s reach. After the games, Swiggy reported a 23% increase in new user orders
and 19% increase in the overall orders during the season (Susmita Biswa, 2017). By
doing so, Swiggy has demonstrated an understanding of the Indian youth culture of
loving cheap and free food and used that to their advantage. The low-income
customers can pay Rs 99 meals through Swiggy for meals they could have paid up to
Rs 300 for if they walked to the restaurant. The use of local celebrities and influencers
knowledge to raise market share.Indian city roads are usually congested with traffic
and to obtain a fast delivery service, Swiggy uses bikes which can quickly push their
way through traffic. Swiggy also allows cash on delivery on all their orders taking into
account that most of their Indian customers do not have bank accounts or credit cards.
Their media marketing mix also takes into account local considerations by also using
traditional media like TV, print, and radio because there is still a significant population
of their target market that still uses these platforms. They maintain a balanced mix of
36
Surviving one blood bath
However, these are the only players who survived the first stage. Investors and
entrepreneurs burnt their fingers and realised that food was a tough business.
But what worked for Zomato and Swiggy? Sathish Meena, Senior Forecast Analyst,
“If you look at it even now, the game is of the big players. The funding is coming
only for the big guys. There is a market for food delivery and foodtech, but now
But what helped the two players survive? What is it that they did differently? Was it
only capital that aided their growth? Sriharsha Majety, Co-founder and CEO, Swiggy,
began with one premise: “We aim to change the way India eats,”
37
What did Swiggy and Zomato do differently?
For Swiggy and Zomato, that was just one more competitor. Swiggy at least had the
first mover advantage and was miles ahead and Zomato had successfully survived.
Even when late last year Ola forayed into the space by acquiring FoodPanda for $200
million, Swiggy and Zomato seem to hold the top spots. Sriharsha, during the launch
“We do our basic service really well. We are boringly predictable. Our hope is there
should be no touch points between a customer and us beyond them placing the order
on the app and us handing over the food to them. It is a challenging business and we
were able to get the basic service right through a mix of technology and operational
excellence. One of the big contributors was having our own fleet. We had five riders
when we started; we have crossed 20,000 riders now. We have India’s largest last-
like changing rules, number of licenses required, high real-estate costs, and problems
with training and retaining staff are issues that have traditionally plagued the food
industry. They’re something tech can’t really solve. The restaurant business involves
high investments in space and equipment. Operating expenses are also high, with raw
material contracts and staff — for every minute these aren’t utilised, they lose value
and hit margins. The only way to make money is to ensure a growing number of
orders—that’s what Swiggy brings in. Today, apart from the restaurant chains and
bigger players, Swiggy also works with small restaurant owners, who form a big part
of the unorganised restaurant business. For many small restaurants, Swiggy is the
38
primary route through which orders flow in. Restaurant owners claim that they started
15 and are now 20 percent. Zomato, on the other hand, recently crossed the three
million deliveries a month mark. This is in just two years since launching the meal
delivery service. It has 25,000 restaurants on its platform in India, including 7,500
that are exclusively available only on Zomato. It had revenue of Rs 333 crore in
FY2017. While losses stood at Rs 389 crore last fiscal, they were grown from Rs 590
“Entrepreneurial organisations keep pushing the envelope, and we want to think that
we are one such organisation. Already, at Zomato what sets us apart is that we are a
ordering food, and booking tables - with more coming up,” Deepinder says.
39
Zomato is also focusing on increasing its repeat user rate by launching subscription
products. Both Zomato and Swiggy have also launched the cloud kitchen vertical,
where the company provides the space and sets up a physical kitchen for participating
restaurants that just have to get the food made and fulfil deliveries.
Interestingly, while Zomato and Swiggy survived the bloodbath and the market settled
pushing aggressively into the India market by acquiring delivery boys and adding
40
more restaurant partners with each passing week. Ola late last year said $200 million
invested will be focused on creating more value and growing the business. Foodpanda
currently claims to have 15,000 restaurant partners in across 100 cities in the country.
Both layers are late in the game. And yet they aren't contenders one can
“It is a huge opportunity. The unorganised food delivery is still $80 billion. And
one of the reasons it is so attractive is a problem - can you bring the cost of
delivery down so low that the economics actually become super viable? Today
with better technology it is easier to bring the cost of delivery lower with a
sizeable business.”
He says in a business that generally has a low basket size, has perishable goods, and is
done real time, it becomes very important that the delivery cost is significantly low.
Bhavik also believes that given Uber’s existing consumer base, it isn't going be
difficult to acquire consumers. Uber Eats is already present in different parts of the
world is present in 200 cities globally and 10 in India. A restaurant owner in Mumbai,
requesting anonymity, says: “It is Uber’s modus operandi; they wait to learn from
everyone else. And build on it. They have the patience, but once they start growing
they push aggressively with discounts and promos.” However, the point of delivery
has always been margins and marketing. Will uberEats and Ola be able to look at it
deeper? Sathish believes discounting as a model doesn’t last long. UberEATS started
as UberFresh in 2014 in Los Angeles. At that time, the online food delivery market
there had strong players like Postmates, Seamless, Sprig, GrubHub, and Caviar.
According to a Business Insider report, “When it started, it had only seven options for
its lunch menu. It didn’t carry the restaurant’s entire menu like most of its competition
did.”
41
Uber took a year to break into its competition’s space in the US, and they did it by
being patient. Only time will tell whether they can wait in India too, where there are
existing strong players. Sanjay says: “uberEats and Ola are currently purely in the
delivery game. The real online food business fight is between Zomato and Swiggy,
who are getting into different verticals of the food business.” Also, as mentioned
earlier, the delivery business runs on consistency. “uberEats and Ola are still small
players in the food delivery game. Swiggy and Zomato have a bigger game. They
have seen the market and have the advantage of understanding the space. Also the
primary focus of Swiggy and Zomato is food, unlike for Ola and Uber,” Sathish
explains.
According to RedSeer Consulting, the food delivery sector is set to hit $1.5 billion by
the end of 2018 and touch $2.5-3.5 billion by 2021 in GMV terms. The sector, which
Most big investors like Softbank have looked deeply at sectors that they can take
control over. This time around, things are different. Alibaba and Meituan-Diaping
“Softbank has always had the focus on the number one and two players in the
market. Like they have a piece in the e-commerce pie. And now it looks like it is
Interestingly, Softbank has indirectly already entered the fray. The Japanese
conglomerate has a significant stake in Ola, which in turn has acquired Food panda.
Also, Ant was looking to create an Indian version of Meituan with its funding in
Zomato. However, with Meituan pumping funds into Swiggy, the battle is going to be
interesting.
42
The question now is: will Softbank enter the fray with a significant investment in
“With so much capital pumped into the space it is highly unlikely that an investor will
seriously look at a small or relatively new startup, because they will need to compete
The Indian foodtech market is currently big enough to accommodate four players, but
most people believe that ultimately it will be a game for two strong players. And
43
Swiggy is food ordering and delivering company based in Bangalore. It provides a
single window for ordering from a wide range of restaurants and have their own
exclusive fleet of delivery personnel pick up orders from restaurants and deliver it to
Swiggy Founders:
August 2014. Nandan Reddy aged 29 and Sriharsha Majety aged 31 both are both
Nandan Reddy and Sriharsha Majety in 2013, started their first venture named Bundl,
which was a logistics aggregator that connected small and medium companies to
courier service providers. After almost a year in business, they realized their focus
had to change. They had spotted the need for an online hyperlocal logistics
44
company in the restaurant industry. Then In August 2014, the duo rolled out the
online food ordering and delivery startup Swiggy, along with Rahul Jaimini.
Swiggy Journey:
Swiggy began its Journey from Bengaluru with six delivery executives and 25
restaurants on its platform. In the time of 3 years, it has scaled up with over 6,000
delivery executives across India in more than 8 cities like Delhi-NCR, Mumbai,
Swiggy Funding:
Swiggy is backed by one of best investors available in the market. Swiggy has raised
a total of 75.5 million dollars in funding from various investors, including Bessemer
Venture Partners, Norwest Venture, Accel Partners, SAIF Partners, Harmony Venture
45
Swiggy Competitors:
Indian food delivery market is valued at 15 billion dollars and set for an exponential
there are other small startups like Foodpanda and Faasos also in the competition.
Now that Uber has finally released its food delivery app UberEATS in Mumbai and
Google has launched its hyperlocal services and meal delivery app Areo in Bangalore
maintain its market share by keeping their maximum focus on 8 major cities which
are Mumbai, Pune, Bangalore, Hyderabad, Chennai, Delhi, Gurgaon, and Kolkata.
campaigns.It promotes its campaigns via Facebook, Twitter, Youtube, Pinterest, and
#SingwithSwiggy and Know your food series of pictures and food walks in a local
area. The company has successfully built its brand awareness and connects with its
audience through these channels. Their facebook page is quite active with regular
46
updates, averaging to one post a day. Swiggy uses its Social media not only for
campaigning but to engage with its customers from solving the greviences to taking
the feedback.
Swiggy was founded in the year 2014 by Nandan Reddy, Sriharsha Majety, and
Sriharsha Majety. It is an online food ordering and delivering service and has its head
office in Bengaluru, Karnataka. It operates in over 25 cities of India and they include
Mysore, etc.
Now the total valuation in the market is $1.3 billion. Swiggy is owned by Bundle
technologies Pvt. Ltd and aims to connect restaurants to the foodies around the city.
Making food accessible to customers is the main strategy of Swiggy. The top clients
of Swiggy include Burger King, Goli Vada Pav, and Cafe Coffee Day, etc.
Swiggy aims to stand out by offering curated lists of restaurants and services and has
its own fleet that picks up orders from restaurants and deliver them to the customers.
Swiggy raised a total of $1.5 Billion and has been expanding in major cities of India.
Mission:
Vision:
It is the first milestone in Swiggy’s vision to elevate the quality of life for the urban
consumer by offering unparalleled convenience, he added. Swiggy Stores will give its
47
Tagline:
Segmentation:
segmentation ages include the teenagers, who would find it very convenient for food
to deliver at their doorstep, the next target group are the college-going students and
also the ones who work at the office and find it difficult to commute to their favorite
restaurant.
The focus, however, has been on the millennials customers and all the brand-building
efforts have been made to make Swiggy their go-to-app when it comes to food
look for convenience when it comes to food and prefers staying at home and having a
quick meal.
48
The psychographic segmentation, it targets the customer who believes that it is better
to have food delivered to them than go all the way to the restaurant and avoid all the
Target:
Swiggy has been able to cater to the huge target audience and these audiences have
varied characteristics, ages, and behavior. Looking at India’s market size, Swiggy has
a great population to target but its main and ideal target audience is the ages of 18-35.
These are the people who are college students, working professionals or entrepreneurs
Positioning:
Swiggy has made the food delivery not just an extended arm of restaurants and has
that helped customers get the food they want, wherever they want.
All the marketing efforts made my Swiggy has helped create an image that Swiggy
makes life convenient and easy for its customers and promises best customer
experience and aims to keep every customer both partner restaurants and the
It is positioned to revolutionize the way people eat their food. It has the motto that “no
customers go hungry” and helps customers connect with their favorite restaurants
49
Distribution in the Marketing strategy of Swiggy
delivery diversification strategy. It aims to not only make the delivery for the food,
but it also aims to create a delivery system for medicine, grocery, gift shops, and
flower shops and capture a larger share of the delivery market of India.
This is the concept of “Swiggy stores” will be first launched in Gurugram and has
already partnered with 3500 stores. It also aims to extend its services in all the
Swiggy has a business model to accumulate restaurants and his own fleet of delivery
partners. Swiggy has a dual partnership model, as it benefits both the customers and
50
Brand equity in the Marketing strategy Swiggy:
Swiggy has mastered the concept of bringing the food to the customers rather than the
customers to the restaurants for food. Swiggy has become a go-to-app when it comes
to delivering food at their doorsteps. Swiggy has become very popular among the
Swiggy now aims to set kitchens jointly with restaurants for higher revenues. It also
aims to extend its services to Swiggy stores and expand their delivery business into
other products. According to a report, restaurants claim that they get 50% of their
Swiggy clearly has a greater market share in the delivery business and is one of the
highest funded startups in India. The brand name Swiggy has become a synonym for
quick food in the customers head and expanding the business of Swiggy will prove to
be a good strategy.
Swiggy aims to control the entire value chain of the customer’s experience and this
strategy has helped in triumph in the market place. Swiggy has done many things
right and one of them is its excellent focus on logistics of the operation.
Swiggy from the beginning knew that to crack the delivery market was to build an
extensive network for logistics due to which Swiggy has built a sound and sustainable
business model.
Business strategy:
Swiggy was a late entrant in the online food delivery and ordering space in 2014 but it
has now become a billion-dollar company and now Zomato is playing catch up.
51
Swiggy has its own growing fleet of delivery partners and the fleet is growing with
This has allowed Swiggy to deliver its promise to deliver food within 30 min to the
customers with just a tap. Swiggy has recently launched the Swiggy Access kitchen,
access with all required amenities, Swiggy aims to provide assistance to the restaurant
Technology focus:
Swiggy is a food-tech company and has a core-logistics platform and Swiggy heavily
leverages technology to help customers and the restaurants get the best of services.
All the conditions are analyzed with the help of data analytics like the traffic
conditions, predict the preparation time for the restaurants depending on the number
of orders, location of the delivery executives to smartly provide them with the
The partner restaurants get a snapshot of all the key operational metrics and also all
the financials. In the back end, Swiggy has analytics engines that mine customer data
to determine the preferences and helps Swiggy partner with the right restaurants.
52
Competitive analysis in the Marketing strategy of Swiggy
The Indian food delivery market is valued at $15 Billion and is predicted to have
exponential growth. It has now become a very competitive market. Swiggy faces
tough competition from Zomato and other start-ups like Foodpanda and Faasos.
Uber eats has also been capturing Swiggy’s market share by providing cheaper and
The competition is getting tougher for Swiggy. Both Swiggy and Zomato has been
increasing its expenditure through incentives and discounts as they battle for
supremacy. The current burning of Swiggy is pegged at more than $16 million and
Swiggy needs to get more creative in its business model to stay ahead of the
competition.
53
Customer analysis
Swiggy has two major customers, the restaurants from which it collects commission
from and serving as a delivery partner and the other customers are the people who
order food through the app. The main customer segments are the people who do not
People who want to order food online and want it delivered in their doorstep. The
recent business expansion is through the groceries, electronics, flower and gift shops.
Promotion Strategy
Swiggy is now a very reputed brand and it’s not just because of its quality services but
due to its excellent social media strategy. On Facebook itself, Swiggy has 174K
followers which are highest among the competitors. Every campaign of Swiggy is
The posts are light, appealing, have good quality and are humor based. Campaigns
eating healthy by using witty one-liners and puns. Swiggy has also used influencers to
Swiggy also proves the number of discounts, rewards, and recognition to create brand
54
CHAPTER 4
OBJECTIVES OF THE
STUDY
55
OBJECTIVES OF THE STUDY
To study the satisfaction level towards services of Online Food delivery companies
in Lucknow City.
To study the consumer buying behavior towards online food delivery companies in
Lucknow
To study the various promotional activities used by online food delivery companies
in Lucknow.
56
CHAPTER 5
RESEARCH
METHODOLOGY
57
RESEARCH METHODOLOGY
accurate way. The three main ways to collect this information are:
individuals
Lucknow City. An effort was made to select respondents evenly. The survey
were taken.
58
Data were collected and recorded
the relevant data, which are essential for the study, they are:
structured questionnaire.
internet etc…
to collect the data and data will be analyzed with the help of percentage table,
59
USE AND
IMPORTANCE OF THE
STUDY
60
USE AND IMPORTANCE OF THE STUDY
The study is basically conducted to know how consumers perceive the online food
circumstances. From this study, we can have a better understanding of the “Online
Food Delivery Service Market”. We will know about the consumer perception
regarding the services they provide in Lucknow area and will get to know the
variables affecting their perception. Therefore, these findings may help the service
providers to work upon on these variables to fill up the gaps in the mindset of
consumers.
61
CHAPTER 7
DATA ANALYSIS
&
INTERPRETATION
62
DATA ANALYSIS AND INTERPRETATION
10th/SSLC 1 1
PUC/+2 6 6
Graduation 37 37
Post-Graduation 56 56
No of respondents
1%
6%
10th/SSLC
PUC/+2
Graduation
Post-Graduation
37%
56%
Interpretation from the above graph it was found that 56 percent of the respondents
their graduation, and the least 1 percent has completed their SSLC and PUC.
63
Table 02: Showing the Age Group of Customers.
20-25 9 9
26-30 22 22
31-35 34 34
36-40 26 26
41-45 5 5
46-50 2 2
50 & above 2 2
No of respondents
2% 2%
5% 9% 20-25
26-30
31-35
36-40
22%
26% 41-45
46-50
50 & above
34%
Interpretation from the above graph it was found that most of the respondents who
percent who are between the ages of 26-30 years. 8 percent of the respondents are
between the ages of 36-40 years, 7 percent of the respondents are between 20-25
years of age, 5 percent of the respondents were between 41-45 years of age and the
64
Table 03: Showing Gender of people who have responded
Male 58 58
Female 42 42
No of respondents
Male
42%
Female
58%
Nearly 58 percent of the respondents were male and 42 percent were female who have
65
Table 04: Showing the Occupation of Customers.
Student 5 5
Self Employed 10 10
Professional 43 43
Employee 39 39
House wife 3 3
Retired 0 0
No of respondents
3%
5%
10% Student
Self Employed
Professional
Employee
39% House wife
Retired
43%
Interpretation from the above graph it was found that nearly 39 percent of the
percent of the respondents were self-employed and 3 percent were house wives.
66
Table 05: Showing the Marital Status
Single 23 23
Married 77 77
No of respondents
23%
Single
Married
77%
Interpretation from the above graph it was found that nearly 77 percent of the
respondents who were selected randomly are married and nearly 23 percent were
single.
67
Table 06: Showing the awareness about the Electronic Food ordering
channels?
Yes 85 85
No 15 15
No of respondents
15%
Yes
No
85%
Found nearly 85 percent of the people agreed that they were aware of electronic and
15 percent of the people are not aware. The electronic media is very popular and
people tend to save time and find they more comfortable in Electronic channels.
68
Table 07: Showing the findings of Electronic food ordering easy and convenient?
No 7 7
Yes 51 51
To some extent 38 38
Quite an extent 4 4
No. Of people
4% 7%
No
Yes
To some extent
38% Quite an extent
51%
From the above graph it was found that nearly 51 percent of the customers found easy
and convenient to some extent followed by 38 percent who say to some extent and
next is 7 percent No and the least is 4 percent that is quite an extent. By reviewing the
above data one can conclude that the Electronic Food Ordering media is popular and
easy to access. From the above graph it was that most of the respondents find
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Table 08: Showing the Awareness of different electronic channels
Telephone/Mobile 37 37
Restaurant Site 35 35
Restaurant App 11 11
Multiple-restaurant site 14 14
Others 3 3
No. Of Users
3%
14% Telephone/Mobile
Restaurant Site
38% Restaurant App
12% Multiple-restaurant site
Others
35%
Nearly 38 percent of the customers used Telephone because even today telephone is
the main source of communication 35 percent of the customers use Restaurant site
followed by 14 percent where customers use multiple restaurant sites and 3% users
use other channels. Telephone is the main channel which is currently used wherein the
restaurant sites are becoming more popular and will be used by people in future.
70
Table 09: Showing the convenient Electronic channel to order food online?
Telephone/Mobile 43 43
Restaurant Site 28 28
Restaurant App 11 11
Multiple-restaurant site 9 9
No. Of Users
9%
9% Telephone/Mobile
Restaurant Site
Restaurant App
43% Multiple-restaurant site
11%
All the above
28%
Nearly 43 percent of the customers used Telephone because even today telephone is
the main source of communication 28 percent of the customers use Restaurant site
followed by 11 percent who use Restaurant App, 9% use Multiple restaurant site and
remaining 9% use all channels. Telephone media is very widely used and accepted
In India now Telephone is basic necessity hence this channel is more popular. Also
the restaurant website are becoming popular and in near future definitely it will
71
Table 10: Showing what kind of Gadgets or Technology customers / users prefer
Smart phone 33 33
Laptop 32 32
i pad 12 12
others 3 3
No. Of Users
3%
32%
33%
Nearly 33 percent of the respondents used smart phone and laptops to order food
electronically followed by 32 percent who ordered food through Laptop, 20% use
simple cell phones 12% use I pad simple call phone , 3% use other gadgets. Now a
days the smart phones are the most commonly used gadgets and people are finding it
improving the services in Mobile applications will help in growing the business.
72
Table 11: Showing on what occasion’s customers/users ordered food
electronically?
Business Event 24 24
Special occasion 24 24
Romantic 6 6
Social 23 23
No. Of Users
23% 24%
Business Event
Special occasion
Romantic
Social
don’t want to cook
23% 24%
6%
(defined as at least once a month) users order food on occasion like Business Event
and Special Occasions are 23% each wherein on social and don’t want category
contributes 24% each. On Business events and special occasion’s people tend to order
73
Table 12: How often do you order food electronically?
Daily 2 2
Weekly 24 24
Monthly 64 64
Yearly 7 7
Never 3 3
No. Of Users
3% 2%
8%
Daily
24%
Weekly
Monthly
Yearly
Never
64%
As indicated in the graph 64 percent of the respondents order food monthly followed
by 24 percent who order food weekly. Nearly 7 percent of the food is ordered yearly
followed by 3 percent of the respondents who never ordered food. According to our
survey, we found foods ordered monthly is higher hence the company should look
74
Table 13: Showing on what days do customers/users order?
Weekdays 11 11
Weekends 37 37
Anytime 51 51
Never 1 1
No. Of Users
1%
11%
Weekdays
Weekends
Anytime
Never
51%
37%
users order on weekends. The major segment of order received without having any
time frames. As the demands are expected any point of time the company should be
able to meet the requirements and make necessary arrangements to accept and fulfil
75
Table 14: Showing how did customers/users come to know about the
Newspapers 15 15
Internet 26 26
Advertisements 23 23
Friends 32 32
Spouse 4 4
No. Of Users
3%
15%
Newspapers
Internet
32% Advertisements
Friends
Spouse
26%
23%
Interpretation from the above graph shows that nearly 32 percent users came to know
about the project through friends followed by 26% through internet and 23% through
advertisements. It is clear from the about details that the customer satisfaction and
76
Table 15.a WHICH COMPANY SERVICES ARE GOOD IN
in packing
No of respondents % of respondents
Swiggy 30 30
Zomato 35 35
Others 35 35
No of respondents
Swiggy Zomato Others
30%
35%
35%
Interpretation from the above graph shows that nearly 30 percent users say that
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b. in quality of service
No of respondents % of respondents
Swiggy 45 45
Zomato 25 25
Others 30 30
No of respondents
Swiggy Zomato Others
30%
45%
25%
Interpretation from the above graph shows that nearly 45 percent users say that
swiggy is good in quality of service and 25 % respondents say Zomato is good in
quality of service.
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c. on time delivery
No of respondents % of respondents
Swiggy 33 33
Zomato 33 33
Others 34 34
No of respondents
Swiggy Zomato Others
34% 33%
33%
Interpretation from the above graph shows that nearly same 33 percent users say that
swiggy and Zomato are good in on time delivery and 34 % respondents say others is
good in on time delivery.
79
Table 16. WHICH WEBSITE OR APP HAS EASY ACCESIBILITY TO
ORDER FOOD?
No of respondents % of respondents
Swiggy 45 45
Zomato 35 35
Others 20 20
No of respondents
Swiggy Zomato Others
20%
45%
35%
Interpretation from the above graph shows that nearly 45 percent users say that
swiggy has easy accesibility to order food and 35 % respondents say Zomato has easy
accesibility to order food.
80
CHAPTER 8
FINDINGS
81
FINDINGS
Users were significantly more likely to say that they would use or recommend
Most of the respondents even today use telephone as the main source of
Respondents between the ages of 31-35 years ordered electronic food more.
The analysis found that there was lot of demand on cash on delivery
82
CHAPTER 9
RECOMMENDATION
83
SUGGESTIONS
Users were significantly more likely to say that they would use or recommend
Most of the respondents even today use telephone as the main source of
Respondents between the ages of 31-35 years ordered electronic food more.
The analysis found that there was lot of demand on cash on delivery
Users were significantly more likely to say that they would use or recommend
Restaurants should focus on giving their customers the best quality and various
More and more customers should be encouraged to order food online as nowa-
days it becomes difficult for an individual to go and place orders directly to the
restaurants and also some customers are uncomfortable with the recent
upcoming technology.
84
CHAPTER 10
CONCLUSION
85
CONCLUSION
that every system has its strengths and weakness. The purpose of this online food
ordering system is basically to save the time of the customers especially when he/she
has to invite people for any occasion. The chief reason of electronic ordering is
This study found that online food. ordering is reasonably popular among the residents
of Bangalore city. Nearly 90 percent of the respondents were aware of the electronic
food ordering. Customers between 31-35 years of age ordered more electronic food
and it was often ordered as they didn’t want to cook especially during the weekends.
Customers who evaluate service quality based on interactions with employees won’t
want to use self-service ordering. Similarly, customers who were uncomfortable with
technology may be reluctant to try an electronic self-service site because they may be
afraid of getting tangled up in the technology. This study has shown that perceived
control and convenience are keys to customer use of online ordering which leads to
giving their customers higher levels of perceived control and convenience, since these
are associated with a higher intent to use online ordering in the future. Young
customers are more likely to use online, mobile or text ordering. Young customers
place a greater value on convenience and speed than older users do To conclude
customers will appreciate not having to wait and other waiting customers may be
86
CHAPTER 11
LIMITATIONS OF
STUDY
87
LIMITATIONS
The sample size is small for the accurate study of the customer.
Some respondents might have given biased answers which might have an impact on
Lack of prior research studies on the topic respondents don't have time to read the full
Due to small size of sample, it's difficult to identify significant relationship with the
customers.
88
BIBLIOGRAPHY
89
BIBLIOGRAPHY
Kotler, P (2002),”Marketing Management”, Millennium Edition, Tenth Edition,
Prentice Hall, Inc, A Pearson Education Company, Upper Saddle River, New Jersey
,pp.
Aldershot, UK.
Websites
https://www.whizsky.com/2017/09/case-study-swiggy-business-model-new-
competitors-marketing-strategies/
https://www.slideshare.net/VIVINR2/marketing-plan-swiggy
https://www.whizsky.com/2017/09/case-study-swiggy-business-model-new-
competitors-marketing-strategies/
https://www.academia.edu/21643315/
Key_Success_Factors_of_Online_Food_Ordering_Services_An_Empirical_Study
90
ANNEXURE
91
QUESTIONNAIRE
Name: -
Address: -
1. Age:-
a) 20-25
b) 26-30
c) 31-35
d) 36-40
e) 41-45
f) 46-50
g) 50 & above
2. Gender ?
a) Male
b) Female
3. Education
a) 10th/SSLC
b) PUC/+2
c) Graduation
d) Post Graduation
4. Occupation
a) Student
b) Self Employed
c) Professional
d) Employee
e) House wife
92
f) Retired
5. Marital Status
a) Single
b) Married
a) Yes
b) No
a) Yes
b) No
c) To some extent
d) Quite an extent
a) Telephone/Mobile
b) Restaurant Site
c) Restaurant App
d) Multiple-restaurant site
e) Others
a) Telephone/Mobile
b) Restaurant Site
c) Restaurant App
d) Multiple-restaurant site
93
10. What kind of gadgets or Technology you prefer to use while you order
food?
b) Smart phone
c) Laptop
d) i pad
e) others
a) Business Event
b) Special occasion
c) Romantic
d) Social
a) Daily
b) Weekly
c) Monthly
d) Yearly
e) Never
a) Weekdays
b) Weekends
c) Anytime
d) Never
94
14. How did you come to know about the electronic food ordering process?
a) Newspapers
b) Internet
c) Advertisements
d) Friends
e) Spouse
in packing
Swiggy
Zomato
Others
in quality of service
Swiggy
Zomato
Others
on time delivery
Swiggy
Zomato
Others
FOOD?
Swiggy
Zomato
others
95