RESEARCH PROJECT REPORT

On

“Study on Customer Satisfaction towards

Swiggy in Lucknow City”
Towards partial fulfillment of
Bachelor of Business Administration (BBA)
(BBD University, Lucknow)

Guided By: Submitted by:

Dr. Shreyansh Singh Karan Mishra
(Assistant Professor) Roll No. 1200671223
(SOM, BBDU LUCKNOW) BBA-VITH Semester

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

in Lucknow city” submitted by me for the degree of Bachelor of Business

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,

titles in this or any other University or other institution of higher learning.

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

or other irregularities, if noticed in the Research Report.

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

research report is a result of contribution of distinct personalities whose guidance here

made my effort a producing one, as “no task is a single man’s effort”.

I would like to express my deep sense of gratitude to the respectable guide

distinguished personalities for their precious suggestions and encouragement during

the project.

The experience which is gained by me during this project is essential for me at this

turning point of my career.

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

by me during the completion of this project report.

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

Customer Satisfaction towards Swiggy and an understanding Online Food Delivery

System.

We hope that the report has made the text interesting and lucid. In writing this report,

we have benefited immensely by referring to many publications and articles. We

express my gratitude to all such authors and publishers.

Any suggestions to improve this report in contents or in style are always welcome and

will be appreciated and acknowledged.

iv
 TABLE OF CONTENT
Certificate ii

Declaration iii

Acknowledgement iv

Preface v

S. No. Particular Page No

1. Introduction 1-11

2. Literature Review 12-27

3. Company Profile 28-63

4. Objective of The Study 64-65

5. Research Methodology 66-68

6. Use And Important Of The Study 69-70

7. Data Analysis & Interpretation 71-89

8. Findings 90-91

9. Recommendation 92-93

10. Conclusion 94-95

11. Limitations of the study 96-97

12. Bibliography 98-99

11. Annexure 100-104

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 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

country’s leading food-delivery platform, Swiggy, said it had acquired Mumbai-based

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

Joshi, vice-president at Texas-based Everest Group. ”Hyper-local businesses (small

food-delivery companies like Scootsy) may earn better revenue per order but they

can’t scale up. They don’t have the economies of scale.”

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

Zomato.The heightened M&A activity is the outcome of funding returning to the

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

Chain, eMarketplace, ePayment, eEntertainment, eTicketing, eLearning, to eCitizenor

eGovernement. The Internet has been widely used in many sales and marketing

activities, from the collection of valuable data to the dissemination of information to

different stakeholders, for example, information retrieval, product communication,

sales tool, distribution channel, and as a customer support tool (Singh, Jayashankar

and Singh 2001; Calles 2000; Sandberg 1998; Peterson, Balasubramanian and

Bronnenberg 1997). The Internet has opened a window of opportunity to almost

anyone because of its ability to make viable the conduct of business in cyberspace, or

by connecting people worldwide without geographical limitations. Consumers can

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

new opportunities for marketers by offering them innovative ways to promote,

communicate, and distribute products and information to their target consumers. E-

commerce has grown phenomenally in the past decade for a variety of reasons

including changes in consumer lifestyles, technological advancements, increases in

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

3
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.

This is due largely to the Internet’s significant advantage of two-way communication

and its ability to transmit information quickly and inexpensively when compared to

other traditional mass media using solely one-way communication (Warrington,

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

importance of using the Internet in their marketing mixes, only a handful of

researchers have studied what factors encourage or discourage consumers when

buying products or services online. Despite the increasing popularity of the Internet,

most knowledge of Internet marketing is based on anecdotes and experiential

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.

However, marketers need to develop an insightful understanding of consumer

behaviour when purchasing products online. This information will help marketing

managers to plan their marketing mixes and offers to better meet customer’s

requirements. By doing so, companies will establish, maintain or increase customer

satisfaction, build strong brand loyalty and ultimately, provide consumers with a solid

4
rationale for continuing to buy the same brand. This study is thus significant as it is a

preliminary attempt to identify factors and their relative strength in influencing

consumer decision making when buying health foods online. The research problem

and objectives of this study are addressed next.

ONLINE FOOD ORDERING

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

to keep accounts with them in order to make frequent ordering convenient. A

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

restaurant returning a percentage to the online food company. While-commerce has

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

restaurants featuring interactive menus, by use of their internet connection. In many

5
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.

Food diversity in India is an implicit characteristic of India’s diversified culture

consisting of different regions and states within. Traditionally, Indians like to have

Home-cooked meals – a concept supported religiously as well as individually.

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

is getting adapted to Indian food requirements and is growing in India. Gaining

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

6
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

well as towards making choice of fast food outlets.

ADVANTAGES FOR ELECTRONIC ORDERING

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

order can go straight to the kitchen.

DISADVANTAGE FOR ELECTRONIC ORDERING

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. 

How It All Started 

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

service called “Swiggy”. 

Launch

As mentioned earlier in August 2014, Swiggy launched their service exclusively in

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

spread across about 44 cities in the country.

8
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

problem regarding your order. 

❖ The customer is the king approach:

 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

to deliver the food. 

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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

choosing. When it comes to the price, Swiggy is more than trustworthy. 

❖ 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

restaurant’s menu with the original price. 

❖ 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.

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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

on their website too. They are:

 Consumer comes first

 Strive for Excellence

 Be honest, display highest level of integrity

 Exhibit Bias for Action

 Stand Up, Disagree and Commit

 Be Humble

 Act like an owner

 Always be curious, always be learning

11
 CHAPTER 2
LITERATURE REVIEW

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 LITERATURE REVIEW

I] Automated Food Ordering System with Real-Time Customer Feedback:

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

both of these technologies in advancement of hospitality industry. This research work

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

modifications easily. The wireless application on mobile devices provide a means of

convenience, improving efficiency and accuracy for restaurants by saving time,

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

expensive and more effective than the multi-touchable restaurant management

systems.

Ii] consumer response to online grocery shopping:

Reports a preliminary assessment of consumer response to and demand for online

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

13
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

online grocery shopping.

Iii] Implementation Of E-Food Ordering System

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

after paying for the order via card or online wallet.

IV] Integration of Touch Technology in Restaurants using Android

The growing number of restaurants and population of restaurant-goers have

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

by incorporating technology. A detailed research on the integration and utilization of

technology in hospitality industries showcased that various applications based on

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

14
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

other through Wi-Fi. This wireless application is user-friendly, improves efficiency

and accuracy for restaurants by saving time, reduces human errors and provides

customer feedback. This system successfully overcomes the drawbacks in earlier

automated food ordering systems and is less expensive as it requires a one-time

investment for gadgets. Consumers’ response to the Internet has broadened

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

minutes. Prior studies on food ordering have investigated the determinants of

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

offliine environment, the online environment (Wind and Rangaswamy, 2001)

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

as a cue for customer satisfaction; a factor that drives purchase intention.

Website quality comprises factors like interactivity, customisation, care, cultivation,

choice, community, character and convenience (Srinivasan et al. 2002); interactivity,

15
novelty and complexity (Huang, 2003); community, individualisation, free services,

technical integration and convenience (Wirtz and Lihotzky, 2003); information

quality, connectivity playfulness, learning and interactivity (Chiu et al. 2005);

appearance, content quality, specific content and technical adequacy (Liao et al.

2006); website design, communication, order fulfillment, security/privacy, promotion

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,

2004). A number of attempts have been made to categorise website’s multiple

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

elements of website quality, namely information quality, website design, security

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

properties such as width of product selections, accuracy of online information, and

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

product information leads to better buying decisions and levels of consumer

16
satisfaction. Ballantine (2005) also found a positive relationship between website’s

information attributes and consumer satisfaction. However, little research has

empirically examined the effect on the amount of information provided on a

website (Peterson and Merino, 2003), and this calls for further examination (Kim

and Lennon, 2010). As a sub-set of “usability” construct, information design includes

navigation or website structure (Flavian et al., 2006). If the former is poorly designed,

a customer will leave the website (McKinney et al., 2002). Availability of

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

eventually positively influences the behavioural intention of the consumers. Hence,

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

trustworthiness (Cheskin Research and Studio Archetype/Sapient, 1999).

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,

functionality and loading time (Weinberg, 2000). Therefore, trustworthy website

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

equivalent to characteristics of a salesperson, then the former should embody

characteristics of the salesperson such as expertise (Crosby et al., 1990; Doney

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-

2001). During information search, information quality, website design, security

and payment system play important roles in determining customers’ trust in their

online experiences. Based on the above discussion, it is hypothesised that: H1:

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

patrons of the products or services. Consequently, efficient tools to assess service

quality are invaluable to companies who earn their revenues or part of it from

delivery of service. Furthermore, service quality dimensions known as the

18
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

introduced by Parasuraman et al. (1988) as a generic instrument used for the

measurement of service quality on the basis of focus group’s inputs. Despite its

development in the marketing sector, it has been applied by many other

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

thereby provide customer satisfaction” (Juran and Godfrey, 1999). According to

Gravin (1984), the definition of quality varies depending on the methods of

approach driven to transcendental experience, product, manufacture, value, and user.

On other hand, service means an intangible activity or benefit provided by the

services provider to customer, which can be tangible products and something that is

added to intangible service, or in an independent form (Kotler, 1991). According to

Rolland and Freeman (2010), the concept of service quality in e-Tailing defines (1)

the extent to which a website facilitates efficient and effective shopping,

purchasing and receipt of products and services, and (2) the customer service

delivered throughout the whole experience from initial contact to fulfillment of

the service. While service perceptions influence loyalty (Juga et al., 2010),

satisfaction represents a more general evaluative construct in comparison with the

episodic and transaction-specific nature of service performance (Oliver, 1997)

which works as a mediator in linking service quality and a customer’s repurchase

loyalty (Olsen, 2002). The core sustainable strategy for online food ordering

companies is the provision of excellent service to the customers. Therefore,

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

road and weather conditions. According to China Online Shopping Report

produced by China Internet Network Information Centre (CNNIC) accessed in 2004,

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

is found to have a significant positive influence on customer satisfaction. Order

fulfillment variables, particularly on-time delivery, dominate the effects on overall

customer evaluations and satisfaction (Dholakia and Zhao, 2010). Delivery becomes

particularly important to non-store, including online, retailing where there is a

temporal separation between order placement and delivery of ordered merchandise

(Dholakia and Zhao, 2010). As a result, on time delivery plays a very significant role

in overall satisfaction and loyalty of customers in online food ordering business.

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

the state of customer dissatisfaction. Furthermore, Suleyman (2010) found that

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

20
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

important antecedent of satisfaction. Food QualityFood quality is viewed to be

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

means an intangible activity or benefits provided by the services provider to customer,

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

quality together with service quality influence customer satisfaction. Furthermore,

several studies on fast food restaurants showed that food quality is related to

satisfaction and it was tested as a potential determinant of customer satisfaction

(Kivela et al., 1999; Law et al., 2004). In this study, it is expected that there will be

significant relationship between food quality and customer satisfaction. Therefore,

food delivery companies should consider that food quality is one of critical strategies

to create customer satisfaction. Relationship between Website Trust and Customer

SatisfactionTrust is earned based on previous experience of the customer. In the e-

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

crucial in the formation of trust such as transactional security, website properties,

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

on customer satisfaction. H3: Website trust has positive influence on customer

satisfaction. Relationship between Customer Satisfaction and Loyalty Customer

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

customer loyalty. Numerous studies have been focusing on the relationship

between satisfaction and the form’s performance in the conventional marketing

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

performance of a business entity. Loyalty can be measured in terms of behaviour (e.g.

choice probability and repeat purchase probability of a brand) and attitude (e.g.

commitment, intention to buy and brand preference) (Dekimpe et al. 1997).

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

the significant association between repurchase intention and customer satisfaction

(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

show brand loyalty, and customer e-loyalty is influenced by satisfaction (Flavian et

al., 2006; Yoon, 2002). Hence, on the basis of the foregoing discussion, the

following hypothesis is proposed:H4: Customer satisfaction has positive impact on

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

sending text messages. Factors such as time, location-sensitive and personalized

information to promote goods and services helps in promoting mobile marketing.

According to Tsang and Liang(2004), This study focuses on the attitude of the

consumers towards advertising, internet advertising and mobile marketing. In 1970s,

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

marketing campaigns, the marketers should concentrate on the mobile marketing

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

choices of restaurants”, Zomato is positioned at the top by the customers. Zomato is

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

to achieve good results. According to G. See-Kwong(2017), The food delivery system

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.

According to Hossain(2000), With the changes in attitude of the consumers,

technology and demographics in our society, there needs to be changes in food

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

development of information technology. As compared with the desktop App, 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

of technological advancements. Management system helps in reducing human

manpower task, helps in reducing the time, and further helps in generating report for

management purpose by fully utilizing the system.

Suryadev Singh Rathore, Mahik Chaudhary “Consumer's Perception on Online Food

Ordering.”(2018): The study found out that recent development of the Internet has

augmented the e-commerce industries in a country like India. E-commerce

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

preferences on online food ordering services provider. To achieve these objects

survey was held to gather the information. Survey successfully helped to

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

place their orders in just a few minutes.

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

Ghadiyali “A Study On Customer’s Attitude And Perception Towards Digital

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

cannot be stored or transported. Eg: accounting, banking, cleaning, consultancy,

education, etc. Digital services on the other hand are services that are anything that

can be delivered through an information infrastructure such as the internet, in various

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

we would understand the shift of consumer’s behaviors with the introduction of

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

industry and understand as to how have technology played an important role in

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

operations in 2014 and is headquartered in Bengaluru. Swiggy works by acting as a

bridge between customers and restaurants. It utilizes an innovative technology

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

10,000 restaurants on its platform.

Funding:

Swiggy has received investments worth USD 155.5 million via six rounds of funding.

Investors include SAIF Partners, Harmony Partners, Naspers, Norwest Venture

Partners, Bessemer Venture Partners, and Accel Partners.

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

Zomato, Box8, Holachef, Dineout, etc.

30
About the Founders:

Swiggy was founded by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini.

Sriharsha Majety is an alumnus of Indian Institute of Management, Calcutta and he

currently serves as the Chief Executive Officer (CEO) at Swiggy. Co-founder Nandan

Reddy is an alumnus of Birla Institute of Technology and Science and he heads

operations at Swiggy. He had earlier worked at Galla, Zurna, IDinsight, and

Intellecap. Co-founder Rahul Jaimini is an alumnus of Indian Institute of Technology,

Kharagpur and he is the Chief Technical Officer at Swiggy.  Prior to Swiggy, he had

worked at Myntra and NetApp.

Marketing Mix Of Swiggy

Swiggy is a delivery company associated with food and beverage industry. It is an

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

faces competition from following

 Foodpanda

 Tiny owl

 Zometa

 SpoonJoy

 BOX8

 Deliver

Product in the Marketing Mix Of Swiggy :

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

hand to another.In the case of complaints it usually takes up to the restaurant in

question. The company encourages promotions and ratings of restaurants for online

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.

Place in the Marketing Mix Of Swiggy :

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

Bengaluru in Karnataka and has established its corporate offices at Hyderabad in

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

fleet of personnel that includes services of nearly eight hundred

delivery people working on-field. They are involved in picking up orders from

selected restaurant and delivering it to customers. Delivery boys are equipped with

Swiggy App and smartphones that make tracking of a delivery throughout routeing

algorithms easy. Swiggy has hired Shadowfax Technologies, a third-party delivery

company, for part-time distribution in Delhi and Bengaluru.

32
Price in the Marketing Mix Of Swiggy :

Swiggy has an extensive workforce and this flexibility prompts it to allow its

customer a policy of no minimum order. This has increased its customer base to a

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

helped it in increasing its distributive channel and garnering better revenues. It also

charges a minimum delivery fee from its customer irrespective of a small or high

amount order.

Promotion in the Marketing Mix Of Swiggy :

Swiggy realizes the importance of a good marketing strategy and has adopted several

plans to create further brand awareness. It relies heavily on mouth publicity and

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

of social media platforms like Twitter, Facebook, Instagram, YouTube and Pinterest

via innovative and interesting ad campaigns like #SingWithSwiggy and

#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

company runs contests to encourage direct participation by customers through

#SwiggyTuesdays and offers to munch bag and coupons as rewards. Ahead of its

launch in Mumbai city, it partnered with popular Dabbawalas of Mumbai to get a

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

restaurants, and well-trained delivery executives.

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.

Opportunities — The food delivery market is a relatively new market in India

which lacks a leader. It is a fast-growing market which Swiggy — with the right

marketing strategy — can do well to win and become its leader.

Threats — The irregularities and constant change in Indian laws and government

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

their health standards and make cleanliness and freshness a priority.

Target market and goals

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

are Foodpanda, Zomato, Aero by Google, TastyKhana, UberEATS, Tiny owl,

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

“The company’s differentiated product offering includes delivery, which enables

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

Swiggy’s marketing strategy aims to leave no one behind from social media users to

TV viewers at an age where most companies have slightly abandoned TV

advertisements. Their marketing strategy consists of both online and offline

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

restaurants with no delivery charges. Another of their marketing strategies is to engage

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

also demonstrates an understanding of local economic constraints and utilizing that

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

traditional and online media as directed by local considerations.

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,

Forrester Research, says:

“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

that the money is being pumped deeply into one segment.”

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

of Swiggy Access, a new vertical of their business, said:

“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-

mile delivery fleet.”

A tough business but focusing helps 

Deepinder Goyal, Co-founder and CEO, Zomato, earlier told Your Story that issues

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

out by paying 6 to 7 percent margins. Margins have increased to 10 percent, then to

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

crore the year before.

“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

one stop for everything - discovering places, looking up restaurant information,

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.

Cab aggregators enter the fray 

Interestingly, while Zomato and Swiggy survived the bloodbath and the market settled

last year, uberEATS launched operations in India. Since May, uberEATS has been

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

ignore. Bhavik Rathod, Head of uberEats India, says:

“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.

Will foodtech be the next ecommerce? 

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

valued at $750 million, is growing at a 15 percent quarter-on-quarter rate.

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

have entered the market.

“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

going to be the same case with foodtech,” Sathish says.

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

Swiggy? Speculative reports are already suggesting this.

“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

with Zomato and Swiggy,” Sanjay says.

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

guess who almost everyone is betting on? Swiggy and Zomato!

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

customers. It is a complete food ordering and delivery solution that connects

neighborhood restaurants with urban foodies.

Swiggy Founders:

Swiggy was founded by Nandan Reddy, Sriharsha Majety, and Rahul Jaimini in

August 2014. Nandan Reddy aged 29 and Sriharsha Majety aged 31 both are both

alumni of Birla Institute of Technology and Science (BITS) Pilani while Rahul

Jaimini aged 31 is an alumnus of IIT Kharagpur.

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,

Bengaluru, Hyderabad, Chennai, Kolkata, and Pune.

Swiggy Business Model:

Swiggy has two major revenue streams.

1. The major part of Swiggy’s revenue from commission it collects from

restaurants for lead generation and for serving as a delivery partner.

2. Swiggy also charges a nominal delivery fee from customers on orders

below a threshold value which 200 rupees for most cities.

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

Partners, RB Investments and Apoletto.

45
Swiggy Competitors:

Indian food delivery market is valued at 15 billion dollars and set for an exponential

growth. Food delivery has become a very competitive market in India. Swiggy is in

direct competition with major on-demand food aggregators like Zomato. Whereas

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

and Mumbai. The competition is getting tougher for Swiggy. Swiggy is aiming to

maintain its market share by keeping their maximum focus on 8 major cities which

are Mumbai, Pune, Bangalore, Hyderabad, Chennai, Delhi, Gurgaon, and Kolkata.

Swiggy Marketing Strategies

Swiggy’s marketing strategy consists of both online and offline marketing

campaigns.It promotes its campaigns via Facebook, Twitter, Youtube, Pinterest, and

Instagram. Some of its campaigns include Secondtomom,#DiwaliGhayAayi,

#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.

Marketing Strategy of Swiggy

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

cities like Bangalore, Chandigarh, Chennai, Coimbatore, Dehradun, Delhi, Gurgaon,

Guwahati, Hyderabad, Indore, Jaipur, Kochi, Kolkata, Lucknow, Ludhiana, Mumbai,

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:

Our mission is to change the way India eats.

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

merchant-partners unmatched access to a combination of core assets to reach more

existing and new customers

47
Tagline:

Swiggy karo, phir jo chahe Karo!,

Segmentation targeting and positioning in the Marketing strategy Swiggy

Segmentation:

Swiggy under demographic segmentation mainly targets the younger generation. The

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

delivery. Under behavioral segmentation, it has found a market segment who find

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

traffic in the city. Swiggy targets people who want to live a convenient lifestyle.

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

who have a good lifestyle and are living in posh localities.

Positioning:

Swiggy has made the food delivery not just an extended arm of restaurants and has

profited well out of this business. The main positioning strategy of Swiggy is an app

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

customers satisfied with the services.

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

with a click of the button.

49
Distribution in the Marketing strategy of Swiggy

Swiggy has the strategy of making Hyperlocal product deliveries. It has a

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

developing cities of India and capture the market share.

 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

the restaurants who get the food orders.

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

millennial customers of India.

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

order from Swiggy and 20-25% from Zomato.

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.

Competitive advantage in the Marketing strategy Swiggy

The sharp focus on logistics:

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

currently 1.25 lakh active partners.

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,

which is the ready-to-occupy kitchen which is offered to restaurant partners rent-free

access with all required amenities, Swiggy aims to provide assistance to the restaurant

owners to optimize their kitchens in terms of demand forecasting, stocks planning and

order edits, etc.

Innovative strategies like these are a major point of differentiation for Swiggy.

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

delivery time and promise to the end customers.

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

quality food to the price conscious Indian customers. In Mumbai and

Bangalore, Google has also launched its delivery app called Areo.

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

Zomato about $17-18 million.

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

want to go out to eateries and restaurants to buy food.

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

remarkable as they are extremely engaging and is very interactive.

The posts are light, appealing, have good quality and are humor based.  Campaigns

like #EatYourVeggies, #SuperSwiggy, #EarnYourCheatMeal conved the notion of

eating healthy by using witty one-liners and puns. Swiggy has also used influencers to

market its services.

Swiggy also proves the number of discounts, rewards, and recognition to create brand

loyalty among the customers.

54
 CHAPTER 4
OBJECTIVES OF THE
STUDY

55
 OBJECTIVES OF THE STUDY

 To Study the Customer Preference towards Services of Swiggy In Lucknow City

 To study the satisfaction level towards services of Online Food delivery companies

in Lucknow City.

 To Understanding differences in operational models of four major Indian players in

the aggregator food-tech sector with a comparative analysis.

 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

(I) RESEARCH DESIGN

I have used Descriptive research design for this study.

Descriptive research is a study designed to depict the participants in an

accurate way. The three main ways to collect this information are:

Observational, defined as a method of viewing and recording the participants.

Case study, defined as an in-depth study of an individual or group of

individuals

(II) SAMPLIE DESIGN

SAMPLE UNIVERSE: Lucknow

SAMPLE SIZE: A sample of minimum respondents was selected from

Lucknow City. An effort was made to select respondents evenly. The survey

was carried out on 100 respondents.

SAMPLE UNIT: In this project sampling unit consisted of the Customers of

online food delivery apps, Lucknow.

SAMPLE AREA: Lucknow (Rural & Urban Areas)

SAMPLING TECHNIQUE: For the purpose of research convenient

sampling technique was used.

(III) TIME FRAME – 30 Days

The duration of study is 30 days and during the period, the following steps

were taken.

 Objectives were set and questionnaire was finalized

58
  Data were collected and recorded

 Data were analyzed and interpreted

 Reports were generated

(IV) DATA SOURCE

DATA COLLECTION SOURCE: Two methods have been used to collect

the relevant data, which are essential for the study, they are:

 Primary Data: data is collected to obtain desired information through

structured questionnaire.

 Secondary Data: it is compiled through books, magazines, newspapers and

internet etc…

(I) TOOLS OF PRESENTATION:

 STATISTICAL TOOLS TO BE USED: A structured questionnaires is used

to collect the data and data will be analyzed with the help of percentage table,

respective graph, bar graph and pie charts.

Project Research Type Descriptive Research

Data Sources Primary Data , Secondary Data

Research Approach Survey Method

Research Instrument Questionnaire

Sampling Procedure Convenience sampling

Sample Size 100 Respondents

Geographical Coverage Lucknow

Duration of the Survey 30 Days

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

delivery services. The perception of consumers may vary under different

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

Table 01: Showing Education level of customers.

Education Level No of respondents % of respondents

Education Level No of respondents % of respondents

10th/SSLC 1 1

PUC/+2 6 6

Graduation 37 37

Post-Graduation 56 56

Total 100 100

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

have completed their post-graduation followed by 37 percent who have completed

their graduation, and the least 1 percent has completed their SSLC and PUC.

63
Table 02: Showing the Age Group of Customers.

Age No of respondents % of respondents

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

Total 100 100

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

ordered food electronically were between the ages of 31-35years followed by 32

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

least was 2 percent between the age of 50 and above.

64
Table 03: Showing Gender of people who have responded

Sex No of respondents % of respondents

Male 58 58

Female 42 42

Total 100 100

No of respondents

Male
42%
Female

58%

Nearly 58 percent of the respondents were male and 42 percent were female who have

answered the questionnaire. It was selected randomly.

65
Table 04: Showing the Occupation of Customers.

Occupation No of respondents % of respondents

Student 5 5

Self Employed 10 10

Professional 43 43

Employee 39 39

House wife 3 3

Retired 0 0

Total 100 100

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

respondents were employees followed by 43 percent who were professionals, 10

percent of the respondents were self-employed and 3 percent were house wives.

66
Table 05: Showing the Marital Status

Occupation No of respondents % of respondents

Single 23 23

Married 77 77

Total 100 100

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?

Option No of respondents % of respondents

Yes 85 85

No 15 15

Total 100 100

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?

Details No. Of people % of respondents

No 7 7

Yes 51 51

To some extent 38 38

Quite an extent 4 4

Total 100 100

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

electronic food ordering secured.

69
Table 08: Showing the Awareness of different electronic channels

Channels No. Of Users % of respondents

Telephone/Mobile 37 37

Restaurant Site 35 35

Restaurant App 11 11

Multiple-restaurant site 14 14

Others 3 3

Total 100 100

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?

Channel No. Of Users % of Total Users

Telephone/Mobile 43 43

Restaurant Site 28 28

Restaurant App 11 11

Multiple-restaurant site 9 9

All the above 9 9

Total 100 100

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

channel, people found themselves more comfortable and safe.

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

overtake the telephone channel.

71
Table 10: Showing what kind of Gadgets or Technology customers / users prefer

to use while ordering food?

Technology/Gadget No. Of Users % of Total Users

Simple cell phone 20 20

Smart phone 33 33

Laptop 32 32

i pad 12 12

others 3 3

Total 100 100

No. Of Users
3%

12% 20% Simple cell phone

Smart phone
Laptop
i pad
others

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

very easy to access the locations/information etc., Development of application in

improving the services in Mobile applications will help in growing the business.

Usage of available mobile technology will help in expanding the business.

72
Table 11: Showing on what occasion’s customers/users ordered food

electronically?

Occasions No. Of Users % of Total Users

Business Event 24 24

Special occasion 24 24

Romantic 6 6

Social 23 23

don’t want to cook 23 23

Total 100 100

No. Of Users

23% 24%
Business Event
Special occasion
Romantic
Social
don’t want to cook

23% 24%

6%

Respondents were asked to evaluate the important of different dining occasions

(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

foods online hence the customers.

73
Table 12: How often do you order food electronically?

Frequency No. Of Users % of Total Users

Daily 2 2

Weekly 24 24

Monthly 64 64

Yearly 7 7

Never 3 3

Total 100 100

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

into improving/providing benefits to customers who order foods on monthly with

some discounts, additional benefits, etc.,

74
Table 13: Showing on what days do customers/users order?

Days No. Of Users % of Total Users

Weekdays 11 11

Weekends 37 37

Anytime 51 51

Never 1 1

Total 100 100

No. Of Users
1%

11%
Weekdays
Weekends
Anytime
Never
51%
37%

Nearly 51 percent of the respondents order food anytime followed by 37 percent of

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

the customer requirements. 24/7 support is made available to customers.

75
Table 14: Showing how did customers/users come to know about the

electronic food ordering process?

Source No. Of Users % of Total Users

Newspapers 15 15

Internet 26 26

Advertisements 23 23

Friends 32 32

Spouse 4 4

Total 100 100

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

customer relationships helps in growth of business. Company should take measures to

improve quality, customer satisfaction, marketing, etc.

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

Total 100 100

No of respondents
Swiggy Zomato Others

30%
35%

35%

Interpretation from the above graph shows that nearly 30 percent users say that

swiggy is good packing and 35 % respondents say Zomato is good in packing.

77
 b. in quality of service

No of respondents % of respondents

Swiggy 45 45

Zomato 25 25

Others 30 30

Total 100 100

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.

78
 c. on time delivery

No of respondents % of respondents

Swiggy 33 33

Zomato 33 33

Others 34 34

Total 100 100

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

Total 100 100

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

online ordering food.

 Nearly 90 percent of the respondents found electronic food secured.

 Respondents were significantly more satisfied with online food ordering.

 Male respondents more likely than women to use or recommend online

ordering food as most of them were working in the IT companies.

 Most of the respondents even today use telephone as the main source of

communication to use electronic food ordering.

 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

online ordering food.

 Nearly 90 percent of the respondents found electronic food secured.

 Respondents were significantly more satisfied with online food ordering.

 Male respondents more likely than women to use or recommend online

ordering food as most of them were working in the IT companies.

 Most of the respondents even today use telephone as the main source of

communication to use electronic food ordering.

 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

online ordering food.

 Restaurants should focus on giving their customers the best quality and various

options on choosing the variety of food stuff.

 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.

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CHAPTER 10
CONCLUSION

85
 CONCLUSION

After studied the customers’ perception of electronic food ordering it is concluded

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

convenience. The single most important attribute of electronic ordering is accuracy.

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

higher satisfaction. My findings indicate that restaurant operators should focus on

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

motivated to try electronic food ordering.

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 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

the findings of the studies.

 Lack of prior research studies on the topic respondents don't have time to read the full

questionnaire as they fill it randomly.

 Due to small size of sample, it's difficult to identify significant relationship with the

customers.

 Respondents tried to escape some statements by simple answering

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.

 Hair, Joseph, F., Anderson, Rolph, E. and Tatham Ronald, L. (1987),Multivariate

Data Analysis, New 'fork: MacMillan Publishing Company.

 Hill, N., (1996), Hanbook of Customer Satisfaction Measurement, Gower Press,

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

6. Are you aware about the Electronic Food ordering channels?

a) Yes

b) No

7. Do you find Electronic food ordering easy and convenient?

a) Yes

b) No

c) To some extent

d) Quite an extent

8. How many electronic channels are you aware of ?

a) Telephone/Mobile

b) Restaurant Site

c) Restaurant App

d) Multiple-restaurant site

e) Others

9. Which is the convenient Electronic channel to order food online?

a) Telephone/Mobile

b) Restaurant Site

c) Restaurant App

d) Multiple-restaurant site

e) All the above

93
 10. What kind of gadgets or Technology you prefer to use while you order

food?

a) Simple cell phone

b) Smart phone

c) Laptop

d) i pad

e) others

11. On what occasions have you ordered food electronically?

a) Business Event

b) Special occasion

c) Romantic

d) Social

e) don’t want to cook

12. How often do you order food electronically?

a) Daily

b) Weekly

c) Monthly

d) Yearly

e) Never

13. what days do you order?

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

15. WHICH COMPANY SERVICES ARE GOOD IN

in packing

Swiggy

Zomato

Others

in quality of service

Swiggy

Zomato

Others

on time delivery

Swiggy

Zomato

Others

16. WHICH WEBSITE OR APP HAS EASY ACCESIBILITY TO ORDER

FOOD?

Swiggy

Zomato

others

95