Zomato marketing initially started with the growing use of mobile phones in the late 2000s. Further, which increased the opportunities for facilities that the magic box can provide to the users. However, the company took time to grow with a new idea to develop which is presented below:
Zomato Marketing Case Study
Just like any other idea, Zomato was also built on one day. Deepinder Goyal and Pankaj Chaddah (founders of Zomato) realised one fine morning, noticed the routine of day to day people waiting for menus from where they got a glimpse. The ideology was thought but the question of how it is to be solved was the area that needs to be worked on.
Foodiebay, the initial name was started in 2008 with fame in starting nine months in the country which resulted in the largest directory for restaurants in Delhi. Freshly, it was a restaurant searching zone with in-depth details.
After spreading into a few states, in Nov 2010, Foodiebay gained a huge user base with investors and modifies the name to Zomato (to take it internationally).
Zomato Business Model
An upward steep curve was seen in Zomato marketing growth in the initial stage. After the fame, it earned from Delhi, NCR the company spread to the areas like Pune, Hyderabad, Ahmedabad, Bengaluru, and Chennai.
- Till the year 2012, Zomato commenced its international expansion by branching to Sri Lanka, Qatar, UK, UAE, the Philippines and South Africa.
- However, 2013 added Brazil, New Zealand and Turkey into its box.
- Furthermore, the tech segment of Zomato marketing did not stop and gave rise by launching its application. Also, the company worked aggressively for foreign competition to increase its foot around the world.
- By 2014, the company took over Italian restaurant search service, Cibando and Poland’s restaurant finder named, Gastronauci.
- Moreover, 2015 brought its biggest acquisition of US online-based table reservation – NexTable. After which soon it acquired Urbanspoon another US restaurant directory. But the company had to shut the app for five months.
Starting with Personal Selling delivery system
- Zomato marketing has around 150000 lists in India from the count of 1.4 million that it has internationally. The Indian platform provides 22 million users with regular fresh customers every two months.
- The founder stated that 5% of the 22 million new users every two months, tries food delivery and that acquisition comes no-cost.
- However, concerning the food delivery, Zomato marketing charges restaurants a commission which counts on several orders. Accordingly, the users pay the delivery charges, Zomato marketing earns from restaurants that pay to the company for each delivery.
- As a result, the fee received gets split among the delivery partners and the company. Moreover, this commission differs from one restaurant to others. Finally, this amount adds up to the income of the company.
Facing the Duct/Channel
- Although Zomato marketing had a steep upward curve. It did not stay on the same page in 2014. The year 2015 started with hardships which resulted in a few tough decisions.
- After a rebranding and acquiring Urbanspoon, the venture failed and laid off 300 employees to cover its losses (10% which was from the US). However, the stability strategy in strategic management can also be referred to as overcome the problem.
- Till the year 2016, things became worst when Zomato marketing rolled back its operations in different countries like the UK, Chile, Canada, Slovakia, US, Brazil, Sri Lanka, Italy and Ireland. As a result, when it resumed its operations, the company had to focus on remote services.
- In addition to the above, a setback was faced by the company in 2017 when with a cyber attack its existence got at stake. This happened when a hacker breached 17 million users from the company’s database.
- However, the case study of 2017 when communicated by the hacker proved his point that the company’s security system had loopholes.
- In 2019, the campaign #logout started where restaurants blamed the company for capturing their profit margins through features like Zomato Gold and Infinity Dining that provided large discounts to consumers.
- As a result, Zomato marketing revised the GOLD rules and discontinued Infinity dining service.
- As the tagline depicts “Never had a bad meal” shows the spirit intact in the company. Finally, Zomato gained a rise of 177% in restaurants partner and 73K onboard more restaurants. Till date, Zomato marketing has 119000 restaurants compared to 43000 in 2019.
- Efficient employees
- First mover advantage
- Good rating mechanism
- Good social platform
- Funding via experienced sources
- Strong content platform
- Zomato marketing target audience range from 18 to 34 years who are comfortable while using apps and smartphone.
- There are two ways to use the app: Firstly who order food online and secondly the group that wish to dine out. However, these groups may overlap. The application delivers food along with providing incentives to groups who wish to dine out via Zomato Gold.
- People who cannot cook, students who stay in hostels, professionals with a lack of time or groups who are occasional – all get served by Zomato marketing.
Zomato focuses on various strategies to develop and grow by engaging human traffic regularly. The strategies opted are as follows:
- Financial strategy: Increment in revenue and funding
- Growth strategy: Continuous growth with a target to increase page traffic
- Globalisation strategy: Expansion of the company globally to become a leading service provider
- Marketing strategy: Since the company deals with the customers, there has to be a dynamic Zomato marketing strategy to attract the customers which will be studied below.
- Digital marketing focused techniques
- Globally connected mobile app
- Simpler rating system and review
- Largest in the food supply market
- Tools used to hike their business like sales promotion and direct marketing
SEO(Search Engine Organisation)
Zomato marketing invested efforts in its SEO. According to Urbansuggest, it ranked 13,696,471 keywords in Feb 2021 with organic traffic of 58,901,810 users every month. As a result, the statistics depicted were appreciable. This was cleverly done by the company by blocking the SEO techniques to scan their sites.
Zomato worked in their sector using top keywords and created a webpage URL. Therefore this explained that their page is capable to search a query faced by the user. As result, this strategy worked so that the website ranks.
Zomato gain around 11,387302 backlinks. Along with which the company receives 42,098 backlinks from unique websites like .edu and .govt. As result, this helps Zomato to increase its domain authority and make him rank higher.
Zomato marketing also enrols in paid advertising through Google Adwords and Google Ads ran by Search Engine Campaign which focuses on the keywords related to restaurants, food names, etc.
Social media strategy
In today’s scenario, social media has become a powerful source to attract customers and advertise their aim. It becomes easier for people to reach. As result, Zomato tapped this area up to the great extent.
The popular social media were targeted :
Zomato has around 1900K people in their Zomato community which shows a huge engagement of consumers.
Twitter had a sparkling record of 114K followers which is used as a conversation segment by Zomato marketing. The company must be appreciated for attracting customers and answering queries on the platform.
Pinterest and blogs
This app involves task to make its followers which are used as a promotional tool by the company.
However, Instagram works as a sharing media for knowledge to new customers of the places. It allows customers to share and upload photos with hashtags which get shared with a microsite.
Zomato has been always creative by posting trendy stuff related to the current topics. They know what is liked, shared and viewed by the audience to connect with the viewers. Furthermore, they realise that social media is famous for crazy stuff and funny contents.
- Zomato marketing used the noteworthy sports i.e Olympics advertised in the year 2016 and posted the content.
- Another example that can be quoted is the symbol of the cartoons“ Pokemon Go” on which the company capitalized as well.
- Zomato marketing also extremely encourages comparison content.
For example, Two ways of how people grab a pizza connect people to themselves and encourages to share or comment.
- Using the popular series like Game of Thrones loved by the viewers was also modified by the Zomato marketing strategy like below.
- Moreover, using info-graphs to connect groups with their personal life is also a quoted gesture by the company.
- Furthermore, using the influencers trending content, the company posts funny material too. For example A YouTuber Yashraj, the video got trending and Zomato used it as a promotional tool.
Going with the numbers or records, Zomato traced a rise of 225% in their revenue in the first half of the year 2020. Further, the company registered $205 million in revenue compared to $63 million of last year.
Although Zomato faced ups and downs it is meant to be a part of every business or startup. In the end, there will to face hard decisions and make things work matters for the organisation.
Likewise, the founder Pankaj wished to quit Zomato and took time off but continued to hold a stake of 3.11% in the company. However, in present, the company is growing with a vision to enlarge its service portfolio.
For future, it targets to reach new markets and tap other domains to grow. Along with its competition with Swiggy, it becomes a greater deal to manage with new entrants.