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Summer internship project report on online food app- TINYOWL

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survey of customers who order food online or through app and making them aware of the app so that they can use the app and have their food at their doorstep. Also the competitors analysis is done and their SWOT analysis.

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Summer internship project report on online food app- TINYOWL

  1. 1. Summer Internship Project Report On Market Research and Competitor Analysis of Online Food App TINY OWL By SAHIL JAIN III Semester MBA Reg.No 14MB1383 Guide Mrs. Madhu Smriti Project Report submitted to ISBR Business School in partial fulfillment of the requirements of III Semester MBA examinations – 2015 ISBR BUSINESS School Electronic city Phase-1 Bangalore-560100
  2. 2. Certificate by Guide
  3. 3. Declaration
  4. 4. Acknowledgement
  5. 5. List of Tables and Figures Table 1 ...............................................................................................................4 Fig. 1 ...............................................................................................................21 Fig. 2 ...............................................................................................................22 Fig. 3 ...............................................................................................................23 Fig. 4 ...............................................................................................................23 Fig. 5 ...............................................................................................................24 Fig. 6 ...............................................................................................................24 Fig. 7 ...............................................................................................................25 Fig. 8 ...............................................................................................................26 Fig. 9 ...............................................................................................................26 Fig. 10 .............................................................................................................27 Fig. 11 .............................................................................................................27 Fig. 12 .............................................................................................................28 Fig. 13 .............................................................................................................29 Fig. 14 .............................................................................................................30 Fig. 15 .............................................................................................................31 Fig. 16 .............................................................................................................32 Fig. 17 .............................................................................................................32 Fig. 18 .............................................................................................................33 Fig. 19 .............................................................................................................34 Fig. 20 .............................................................................................................34 Fig. 21 .............................................................................................................35 Fig. 22 .............................................................................................................35 Fig. 23 .............................................................................................................37 Fig. 24 .............................................................................................................38 Fig. 25 .............................................................................................................38 Fig. 26 .............................................................................................................39 Fig. 27 .............................................................................................................40 Fig. 28 .............................................................................................................40 Fig. 29 .............................................................................................................41 Fig. 30 .............................................................................................................41 Fig. 31 .............................................................................................................42 Fig. 32 .............................................................................................................42 Fig. 33 .............................................................................................................43 Fig. 34 .............................................................................................................44
  6. 6. Abbreviations Used
  7. 7. Page | 1 Table of Contents Contents Executive Summary ............................................................................................1 Chapter 1 Introduction...................................................................................2 1.1 Introduction about the sector ..................................................................2 1.2 Introduction about the company ..............................................................5 1.3 Competitors ............................................................................................6 1.4 Features O f the App ................................................................................6 Chapter 2 Literature Review ..........................................................................7 2.1 Market Research........................................................................................7 2.2 Marketing Research Procedure ..................................................................8 2.3 Sampling Design .....................................................................................11 2.4 Q uestionnaire Design ..............................................................................13 2.5 Advantages and Disadvantages of Q uestionnaire Design .........................15 2.6 Summary .................................................................................................15 2.7 Competitor Analysis ................................................................................16 Chapter 3 Methodology................................................................................17 3.1 Research objectives .................................................................................17 3.2 Research methodology .............................................................................18 3.3 Data Analysis Techniques .......................................................................19 3.4 Limitations of the project study ..............................................................20 Chapter 4 Findings ......................................................................................21 4.1 Findings of electronic city ......................................................................21 4.2 Findings of BTM Layout .........................................................................28 4.3 Findings of Jayanagar .............................................................................36 Chapter 5 Competitor Analys is ....................................................................44 5.1 FOOD PAN DA analysis ...........................................................................45 5.2 Zomato Analys is .....................................................................................49 5.3 Summary of all the competitors ...............................................................54 5.4 Competitor Analysis Grid ........................................................................56 Chapter 6 Inferences and Summary of Find ings ........................................60
  8. 8. Page | 2 6.1 Inferences from Electronic city ...............................................................60 6.1.1 About Working Individuals ...............................................................60 6.1.2 About Students..................................................................................60 6.2 Inferences from BTM Layout ..................................................................61 6.2.1 About Working Individuals ...............................................................61 6.2.2 About Students..................................................................................61 6.3 Inferences from Jayanagar .......................................................................62 6.3.1 About Working Individuals ...............................................................62 6.3.2 About Students..................................................................................62 6.4 Inferences from Restaurants ....................................................................63 6.4.1 From Electronic city .........................................................................63 6.4.2 From BTM Layout.............................................................................63 6.4.3 From Jayanagar .................................................................................64 Chapter 7 Recommendations ..........................................................65 Chapter 8 Conclusion .....................................................................66 Bibliography ....................................................................................................67 REFEREN CES ..............................................................................................67 APPEN DICIES .................................................................................................68 APPEN DIX I .................................................................................................68 APPEN DIX II................................................................................................70
  9. 9. Page | 1 Executive Summary The internship was aimed towards the launch of the Bangalore’s freshest online Food Ordering App, TINYOWL. The main objectives of this internship were-  Identifying the Target Audience.  Where to find the Target Audience.  How to reach them in the most effective manner. Every individual was provided 3 localities to work upon and understanding the consumer behavior and food ordering patterns of individuals. The internship also aims at gaining thorough understanding of TinyOwl product differentiation from competitors and exciting features in the TinyO wl App. The initial phase of internship deals with the preparation of questionnaire for the focus groups and then reaching out to them and making them fill the questionnaire. The next phase involved competitors analysis of the company and their various marketing strategies and SWOT analysis. Questionnaire was prepared based on certain parameters such as-  Age group  Lifestyle  Frequency of ordering food  Average amount spend per meal  Preferred cuisines  Entertainment preferences  Preferred restaurants.
  10. 10. Page | 2 Chapter 1 Introduction 1.1 Introduction about the sector Food delivery market in India worth over 12.5 billion, Online food delivery is contributing more than 7% to this market. More than 50,000 restaurants in India provides home delivery, indicates a very high potential and untapped market in online food delivery space. Players in the industry broadly classified into three categories--- o Fully integrated: Those who process food and delivers (Dominos, McD etc) o Delivery as a Service o Aggregators: Provides a platform for customers where they could discover restaurants, navigate through menus of different cuisines, and select the food. Delivery made by the restaurant. In short, aggregates information about food for customers and function as an order generating channel for restaurants. (TinyOwl, Zomato, FoodPanda etc) Reasons for growth in online food delivery industry: o Increase in disposable income and deeper internet penetration of customers (web/mobile). o Restaurants tying up with online food delivery platforms claim to get a profit margin of more than 2 to 3% than dine-ins. These days’ people are prone to placing food orders online and capitalising this trend a lot of restaurants are yielding good returns by registering themselves on online ordering sites like Foodpanda, Tastykhana, JustEat, HyderabadSpecial etc and many local ordering websites are also following suit.
  11. 11. Page | 3 Driving factors Greater awareness and disposable income along with deeper Internet penetration, availability of more payment options, long working hours and erratic lifestyle are contributing online food ordering business. At the same time, with more and more people wanting healthy food, or food similar to home cooked meals that too easy on the pockets is leading to the rise of online food business in the country. Nixon Dsouza, Brand Manager, Nom Nom, says, “Penetrating through every commercial aspect humans have started using technology for everything and food ordering is one such developments”. Rohit Chadda, MD and Founder Foodpanda, believes, “Online ordering is convenient giving the customers a broader option to choose from the restaurants listed on the website.” Future of the business As per the industry experts, the overall food delivery business is more than USD 7 billion to which online food ordering contributes 5-7 percent and is growing 40 percent per year than dine- in culture. The margin is however two to three percent higher in deliveries. According to Ritesh Dwivedy, MD and CEO, JustEat, “The future seems bright for the online food business in India, as we are trying to catch up with developed markets where 30 percent of delivery takes place through online channels.” Major players Online food ordering is at an exciting phase now. Many local and national players are joining the space. In fact the foreign brand JustEat has also tied up with the Bangalore based HungryZone. Foodpanda which started its business from Delhi-NCR is the major player in the segment followed by JustEat and TastyKhana, a Pune initiative. Besides, DeliveryChef, BigBite, Titbit and eatallnite are the emerging players in the online food delivery market which is estimated to grow at 40 percent annually.
  12. 12. Page | 4 Benefits Placing food orders online benefits consumers, restaurants and the food delivery players. For consumers, it is not only an easy and convenient tool but it is also a great platform to avail good discounts. Vasul Chauhan, Restaurant Manager, Smokeys Barbeque & Grill, said, “We have partnered with JustEat to explore new business opportunities and give a push to our already successful home delivery format but till now the response is not overwhelming.” However, Dwivedy is of the opinion that, “The profit margin is 2-3 percent higher in deliveries as compared to dine-in these days” Marketing strategies Online food delivery platforms largely try to be present in all the channels that drive awareness. For example, newspapers, television, hoardings and billboards to the social networking sites like Facebook and Twitter, they advertise in all. Chadda explained, “We give about 15-30 percent discounts on ordering through us. At the same time we have also organised several campaigns including the food gifting programmes and buy one get one free deals.” Table 1
  13. 13. Page | 5 1.2 Introduction about the company TinyOwl is a Mumbai based company founded by Harshvardhan Mandad & fellow IIT alumni in 2014 having 400+ employees, 2000+ daily orders, and association with 4000+ restaurants. It Raised $3 million from Nexus Venture partners and Sequoia Partners in series A funding. Tiny Owl also raised Rs 100 crore from Matrix Partners, Nexus Venture partners and Sequoia Partners in series B funding. Tiny Owl is planning to expand their business operations to 50 cities in India. Target is to pass 50,000 daily orders before end of the year. Order placement is through mobile app. Payment options available are COD and online payment. Delivery time estimated 30- 45 minutes for each order depending on the location of the restaurant. Features of app:  Detects location of app user automatically.  User can choose from more than 4000 restaurants.  Saves the order history and addresses.  Customer support team with strength of more than 100  No extra fees charged from customers. TinyOwl would begin charging restaurants 10-20 percent commission per order this year. The service does not currently make money. It is the Official food ordering app of Mumbai Indians IPL team. It Uses VVIP passes, meet & greet MIs etc for social media marketing. Marketing campaign #Anythingforfood launched as a part of their pan-India expansion.
  14. 14. Page | 6 1.3 Competitors  There are more than 20 Indian start-ups in online food delivery space. TinyOwl faces tough competition from FoodPanda, Zomato. Swiggy, a prominent online food delivery start-up based in Bangalore is assumed to be a competitor of TinyO wl for its expansion in Bangalore.  FoodPanda and Zomato have got more funding compared to TinyO wl.  Customer reviews states that o TinyOwl app is more sleek and hassle free compared to other apps of same kind o TinyOwl concentrates on data and service more, whereas other players like FoodPanda concentrates more on offers. o Unlike other apps, TinyOwl is not flooding the email ids of customers with spam messages. o More options of food and restaurants available in TinyOwl app, compared to competitors. 1.4 Features of the App  The TinyOwl is a location based app that lets you order your food from a range of restaurants anywhere in available cities, right from your mobile phone.  The app does almost everything for you. It’s simple and friendly UI and is constantly updated by their team for the menus and prices, making it easy, convenient and reliable to use. When you start the app it detects your location and gives you a list of the nearby restaurants.  The app provides you not only the lunch and dinner menus, it describes each dish and provides you the chef’s profile.  They have recently launched the TinyOwl Homemade app which gives you access to food from home chefs. The Homemade app gives you the choice of having home-cooked food, and lets you know of the nearest home-chef in your locality.
  15. 15. Page | 7 Chapter 2 Literature Review 2.1 Market Research Market research is defined as “function that links the consumer, customer, and public to the marketer through information-information used to identify and define marketing opportunities and problems; to generate, refine, and evaluate marketing actions; to monitor marketing performance; and to improve understanding of the marketing process. Marketing research specifies the information required to address these issues, designs the methods for collecting information, manages and implements the data collection process, analyzes, and communicates the findings and their implications..”. Briefly it is a systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company, allows management to make the changes necessary for better results through adopting a proactive approach. Therefore, if a company wants to know what type of products or services would be profitable it should make a market research. Furthermore, a comprehensive research will enable the company to know about the product imperfections (if there are) and to know if it has been able to satisfy customers’ needs. It attempts to provide accurate information that reflects a true state of affairs. Due to market research the company can formulate a viable marketing plan and estimate the success of its existing plan. There are two main sources of marketing research information:  Primary marketing research is collected for the first time if the company has enough money to finance it, but in most case it is the second more accurate one. It is original and collected for a specific purpose, or to solve a specific problem. Primary research delivers more specific results than secondary research, more expensive and time consuming, which are an especially important consideration when the company is launching a new product or service.
  16. 16. Page | 8 There are many ways to conduct primary research. By customizing tried-and- true approaches, focus groups, surveys, field tests, interviews or observation, you can gain information about your target market. Primary research is generally based on sampling techniques and requires statistical methodologies. The sample size could be as small as 1 percent of the market and thus the information and results gathered are highly accurate.  Secondary marketing research or desk research is generally used when a company considering, extending a business into new markets or adding new services or product lines, because it already exist in one form or another. This information is based on studies previously performed by government agencies, chambers of commerce, trade associations, and other organizations. There are number of sources available to the marketers, which are the following: Business libraries, Public records, Trade associations, Websites, National/international governments, Informal contacts and Professional institutes and organizations. That is why secondary research is relatively cheap, and can be conducted quite quickly. However, its main disadvantage is that the information gathered may be old and obsolete, therefore results of analysis may be inaccurate. 2.2 Marketing Research Procedure Stage-1 Research Purpose:- The first step in the procedure of market research is to define research purpose. Research purpose is usually not very well defined or fully understood. The procedure of fully and accurately defining and understanding research purpose always requires efforts. The research purpose is typically developed as result of recognizing and understanding problem. This problem is usually generated by realization of fissure between expected out come and the outcome in reality. It is also important to define reason of problem that where that problem occurred. The problem definition is the point on which the whole arrangement is formed.
  17. 17. Page | 9 Stage-2 Research Objectives:- Research objective is accurate report about required in sequence. It understands problem statement more accurately and in more understandable way. Research objectives are designed in such a way that chore of finding required information fully provide the research purpose. Research objectives have three essential parts. Research Question The research question describes information required by organization accountable for decision making. Research question represents the in sequence needs to obtained accordingly to research purpose. Hypothesis Hypothesis is researcher’s view of probable answer to a research question. The Researcher may produce possible outcome of research question in earlier stage and carry out research to answer that if hypothesis created at start of research was right or not. Scope of Research Hypothesis development aids keeping research procedure more accurate and well-focused to serve research purpose. Another important issue of the research is indicating research boundaries or research limitations. Stage-3 Estimating the Value of Research information: - After defining research purpose, objectives and scope it is also very significant to estimate value of information needed or the value of research problem that will possibly be replied in research question. Stage-4 Research Design Research design is in general structure or framework of research that is developed in order to conduct research. Research design may include following tasks
  18. 18. Page | 10 Primary and Secondary Data analysis:- There are two types of data analysis Primary data is data that research needs to collect by himself more specific to research conducted. Primary data is usually collected through questionnaire surveys, interviews, and focus groups etc. Secondary data is not first-hand data as primary research it is the data that already is available like journals, books, articles, company records etc. Qualitative and Quantitative Research:- After selecting type of data required for research it is decided that what medium of data is required. Research can be through quantitative or qualitative or both depending on the wish of researcher. Stage-5 Data Collection After preparing questionnaire the next job is to practically get into filed and distribute questionnaires among group of respondents. It can also be done through On line surveys, Phone conversations, Face to face interviews, and By post. In larger scale marketing research full dedicated field team or person may be required in order. Stage-6 Data Analysis After gathering of data it is then procedures to derived results in order to change them in conclusion, data analysis can be conducted with two methods manual or computer based data analysis. There can be different types of mathematical formulas can be used on data that is collected from questionnaires. It can also be checked for precision and soundness. Stage-7 Reporting Results and Presentation The Last and final part of research procedure is to write down in black and white whole project findings and write report that replies that specific research question that was identified at
  19. 19. Page | 11 initiation of research. Research report also includes research loom adopted, design, collection and analysis of data together with all results of data. This report should be in the form to be prepared for decision makers to be used in decision maker procedure. 2.3 Sampling Design Generally, a researcher employs sampling strategies in order to generate statistics and generalize findings to a larger population. Sampling refers to the process of selecting individuals from a larger group of people and drawing conclusion that are “an accurate representation of how the larger group of people acts or what they believe”. Simple Random Sampling A simple random sample is one in which each member of the population has an equal and independent chance of being included in the random sample. If the sample is large, this method is the best way to obtain a sample representative of the population. Simple random sampling approximates drawing a sample out of a hat: Members of a population are selected one at a time, independent of one another and without replacement; once a unit is selected, it has no further chance to be selected. The steps in simple random sampling comprise the following: 1. Define the population. 2. List all members of the population. 3. Select the sample by employing a procedure where sheer chance determines which members on the list are drawn from the sample.
  20. 20. Page | 12 Step-by-step method for determining reliability of data As soon as data collection begins, steps can be taken to ensure the data is reliable. Following these steps will allow insight into whether or not enough data has been collected to provide reliable (95% certainty) information:  Determine coding scheme for data. Depending on the options that survey and interview respondents have to answer questions, the data will have to be coded for each question. Given the type of information most state programs seek through interviews and surveys, this data should be able to be divided into two categories. For instance, if the question is a yes or no question, then one category would be yes, the other would be no. If the question asks participants to place items into a Likert scale, then two categories would be created in order to determine which half of the Likert scale the data favored (with the total number of neutral answers being counted, divided by two, and placed equally into each of the two categories).  Code responses. Code your responses to each answer in order to determine which of the two categories created for each question the answer would fit. Once you have coded all of the answers, determine how many answers fall into each of the two divisions.  Compute reliability. Although you will have a random sample to use at this point, you will not likely be able to interview or survey all of the people in that sample. This is acceptable, as the entire 15% will likely not be needed in order to come to a reliable conclusion (although, in some rare cases where enough responses cannot be obtained from the participants originally selected, the original population must be re-visited to find more randomly selected sampling units).
  21. 21. Page | 13 2.4 Questionnaire Design A questionnaire is a document designed with the purpose of seeking information from the respondents. Steps in Questionnaire Design:- 1. What is involved The researcher defines the information that is being sought.  Consider research objectives.  Discuss with others in the field.  Literature searches and wide reading on Literature searches and wide reading on the topic.  Review earlier questionnaires/scales or Review earlier questionnaires/scales or instruments that may be available. 2. Drafting of questionnaire  Researcher takes the list of information they wish to obtain from respondents and devises draft questions.  Phrasing and design of questions affect the validity of the affect the validity of the information obtained.  Sequencing the questions –background variables first, introduce each theme/topic area in separate sections  Methods for coding the data  Methods for analysis of the data  Layout and presentation - make it easy to complete and present professionally;  Consider your audience - type face, font size, instructions, use of language (elderly respondents need instructions, use of language (elderly respondents need large font)  Cultural and gender appropriateness.
  22. 22. Page | 14 3. Questionnaire pilot  Trial the new questionnaire with a small group of intended respondents or colleagues to improve clarity, remove problems before the main survey  Analyze the responses to the pilot survey (are some response categories never used, analyze some response categories never used, analyze the missing data, are some Qs misunderstood?)  Ask the respondents or colleagues for feedback Ask the respondents or colleagues for feedback about design and questions 4. Redrafting the Questionnaire  If problems were found then the questionnaire will need to be redrafted  If there are major changes required it is best to then do another pilot  If the problems are minor the researcher may If the problems are minor, the researcher may then proceed to administration of the questionnaire to the full sample 5. Administration of the Questionnaire  After development of the questionnaire, it is administered to the full sample of respondents administered to the full sample of respondents  How would this be done? Postal, telephone, structured interview. Mode of administration differences  Bias issues in clinical follow up and patient satisfaction surveys can arise.  The responses are then analysed in terms of the researcher’s aims and objectives.
  23. 23. Page | 15 2.5 Advantages and Disadvantages of Questionnaire Design Table 2 2.6 Summary  Questionnaires are useful tools if properly designed and administered and administered  Well-constructed questionnaires can yield valuable and often novel information relatively inexpensively and often novel information relatively inexpensively  A questionnaire is a vehicle allowing communication between the researcher and the subject between the researcher and the subject  A good questionnaire is the product of testing and retesting  Where ever possible, construct or use a valid and reliable tool, or test its validity and reliability.
  24. 24. Page | 16 2.7 Competitor Analysis Competitive analysis is a process used in the formulation of strategic plans in most organizations. Very often, it is adopted due to its rational process of making long-term strategies. This is a process for identifying a specific acceptable strategy for each individual organization, determined by its own particular circumstances. In any competitive analysis, industry structure analysis is unavoidable. The first step in analyzing industry structure is to define the market or industry. Having defined the market, the next step in the analysis is to identify the structure of that market. We can do this by analyzing the external factors which may affect the market usually termed as Porter’s 5 forces. These include Threat of new entrants, Rivalry among firms, Threat of Substitutes, Bargaining power of suppliers and bargaining power of buyers. This can also be done using S WOT analysis of that particular industry. Analyzing the forces and making judgments on their relative importance should lead managers to see how they can deal with and influence the forces, thus identifying competitive advantage. The purpose of identifying a market’s structure, and the sources of competitive advantage it causes, is to draw conclusions about strategies that will match or fit the environment. Based on such frameworks, the manager need to demonstrate that strategies recommend fulfil a strategic logic. Strategic logic means that a proposed sequence of actions is consistently related to the objectives of the organization and yet matches the organization’s capability to its environment. Therefore, in order to achieve this, various analytical techniques to determine the strategic logic of a sequence of actions have been prescribed. They include SWOT analysis, Life cycle Analysis, Portfolio analysis and Value chain analysis.
  25. 25. Page | 17 Chapter 3 Methodology 3.1 Research objectives  Identifying the target audience: - The main objective of this internship is to identify the target audience for the launch of the new online food ordering app TinyOwl. Mostly the target audience which we found out includes students, working individuals, working married couples and some home makers. These target audience generally tend to order food through online portals due to their hectic working schedules, ease of delivery, varieties of cuisines and ease of payment.  Where to find the target audience: - The next objective is to know where we will get our target audience. Usually these target audience we found out near small shops beside the companies where employees used to come and hangout for sometimes, in restaurants and various hangout places according to the areas allocated. Most of the target audience which I found was near small tea shops and stalls.  How to reach them in most effective manner: - The next main task is to know that how we can reach out to our target audience in the most effective manner so that we can get our responses and at the same time people can get to know about the app and its features. For this purpose a small questionnaire was designed comprising of 10 questions so that people don’t find it too long to fill. Also a demonstration of the app was shown to all the people from whom the questionnaire was filled.  Competitor analysis: - The last main objective is to identify the competitors of this app like Food panda, Swiggy, Justeat, etc. and the services which these competitors are providing to the customers which would help TinyOwl to make different strategies to capture the market. These services include promo offers, cashback offers, delivery time and many other parameters.
  26. 26. Page | 18 3.2 Research methodology A research design is the "blue print" of the study. The design of a study defines the study type (descriptive, correlational, semi-experimental, experimental, review, meta-analytic) and sub-type (e.g., descriptive-longitudinal case study), research question, hypotheses, independent and dependent variables, experimental design, and, if applicable, data collection methods and a statistical analysis plan. Research design is the framework that has been created to seek answers to research questions. Types of Data Collection Methods  Primary research: Primary research is defined as factual, firsthand accounts of the study written by a person who was part of the study. The methods vary on how researchers run an experiment or study, but it typically follows the scientific method. One way you can think of primary research is that it is typically original research. In a nutshell, primary research is original research conducted by you (or someone you hire) to collect data specifically for your current objective. You might conduct a survey, run an interview or a focus group, observe behavior, or do an experiment. You are going to be the person who obtains this raw data directly and it will be collected specifically for your current research need.  Secondary research: Secondary research is defined as an analysis and interpretation of primary research. For instance, secondary research often takes the form of the results from two or more primary research articles and explains what the two separate findings are telling us. It involves searching for existing data that was originally collected by someone else. You might look in journals, libraries, or go to online sources like the US census. You will apply what you find to your personal research problem, but the data you are finding was not originally collected by you, nor was it obtained for the purpose you are using it for.
  27. 27. Page | 19 3.3 Data Analysis Techniques Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with the goal of discovering useful information, suggesting conclusions, and supporting decision-making. Data analysis has multiple facets and approaches, encompassing diverse techniques under a variety of names, in different business, science, and social science domains. Analysis refers to breaking a whole into its separate components for individual examination. Data analysis is a process for obtaining raw data and converting it into information useful for decision-making by users. Data is collected and analyzed to answer questions, test hypotheses or disprove theories. Techniques for analyzing Quantitative data  Graphs: There are many types of graphs, but the most common and most useful for the statistician are bar charts, histograms, and frequency polygons. Each has two axes, the vertical axis (the y-axis) and the horizontal axis (the x-axis), and labels to identify the variables and the values, with tick marks showing where each indicated value falls along each axis. A bar chart contains solid bars separated by spaces. It is a good tool for displaying the distribution of variables measured in discrete categories (e.g., nominal variables such as religion or marital status), because such categories don’t blend into each other.  Histograms: Histograms, in which the bars are adjacent, are used to display the distribution of quantitative variables that vary along a continuum that has no necessary gaps. Exhibit 8.4 shows a histogram of years of education from the 2010 GSS data. The distribution has a clump of cases centered at 12 years. The distribution is skewed because there are more cases just above the central point than below it.  Pie charts: A pie chart (or a circle chart) is a circular statistical graphic, which is divided into slices to illustrate numerical proportion. In a pie chart, the arc length of each slice (and consequently its central
  28. 28. Page | 20 angle and area), is proportional to the quantity it represents. While it is named for its resemblance to a pie which has been sliced, there are variations on the way it can be presented. 3.4 Limitations of the project study There are certain limitations of doing this project especially comprising limitations for doing market research.  Costly: Marketing research is a costly affair. It needs a lot of money to conduct various market research activities. Huge funds are required to pay salaries, prepare questionnaires, conduct surveys etc.  Time consuming: Marketing research is a lengthy and time-consuming process. This process involves many important steps. Generally it takes at least 3-6 months to solve a marketing problem. Therefore it can’t be used in urgent situations.  Limite d scope: Marketing research solves many business related problems but it can’t solve all business problems. It cannot solve problems related to income, expenditure, relationship etc. thus its scope is limited.  Can’t predict consumer behavior: Marketing research collects data about consumer behavior. However, this data is not accurate because consumer behavior keeps on changing and cannot be predicted. It is also very complex as it is influenced by social, religious, economic and other factors.  Non availability of reliable data: The quality of marketing research report depends on the quality of collected data. However, it is very difficult to find latest and trustworthy data.  Can be misused: Sometimes, marketing research is misused by the company. It is used to delay decision. It is used to support the views of a particular individual.
  29. 29. Page | 21 Chapter 4 Findings Since, every individual is allocated 3 localities each for doing market survey and understand the behavior of the market. So the findings of each locality are presented as under. 4.1 Findings of electronic city Electronic city, belonging to south Bangalore, is predominantly an IT area and management schools (more individual B-schools, compared to apartments), surrounding the small business units, IT companies. The survey conducted had 250 respondents, which include students, working individuals and working married couples, which completes the target audience (TA). Following are the findings from the survey. Working individuals (WI):  Method of placing food home delivery order: Fig. 1  Majority of the WIs (38%) prefer to order through mobile apps since most of them are students. 34% of WIs preferred ordering food through direct call to restaurant, direct walk in to restaurant (14%) and online web portals (14%). directcall 34% online 14% mobileapp 38% directwalk in 14% Way of Ordering
  30. 30. Page | 22  Thus most of the people prefer using apps and then through direct walk-ins.  Level of satisfaction with online food delivery Fig. 2  9% of WIs responded that they are highly satisfied with online food delivery and 43% of the WIs responded that they are satisfied with online food delivery, 43% neutral and 5% dissatisfied.  Dissatisfaction may be due to the payments and difficulties with some restaurants regarding online payment confirmation.  Awareness about Tiny Owl satisfied 43% highly satisfied 9% neutral 43% dissatisfied 5% highly dissatisfied 0% Satisfaction Level
  31. 31. Page | 23 Fig. 3  62% of working individuals were unaware about Tiny Owl app. 38% of the WIs had knowledge about the Tiny Owl app and they are using it regularly.  Frequency of ordering food home delivery in a month Fig. 4  57% of WIs opted for 5-10 times per month. 38% opted for 10-15 times and another 5% for 15-20 times. yes 38% no 62% Awareness 5 to 10 57% 10 to 15 38% 15 to 20 5% 20 to 25 0% Frequency
  32. 32. Page | 24  Number of people for which food is ordered Fig. 5  57% of the WIs order food for 2-3 people and 5% of WIs order food for 3-4 people, 38% for self and almost nobody orders for more than 4 people.  Famous Entertainme nt Preferences Fig. 6 1 38% 2 to 3 57% 3 to 4 5% 4+ 0% No. of people movie 52% going out to eat 24% travelling 19% others 5% Entertainment
  33. 33. Page | 25  Around 52% of the WIs prefer going for movie and after that 24% prefer going out to eat. 19% of WIs prefers travelling and rest prefer some other entertainment options. Students:  Method of placing food home delivery order Fig. 7  30% of students preferred mobile apps to order from restaurants, 26% preferred direct walk in to restaurant and 18% preferred direct call. online 26% directcall 18%directwalk in 26% mobileapp 30% Way Of ordering Food
  34. 34. Page | 26  Level of satisfaction with online food delivery Fig. 8  63% of students responded satisfied, 26% were neutral and 4% were dissatisfied.  Awareness about Tiny Owl Fig. 9  67% of the students were unaware about Tiny Owl app. highly satisfied 7% satisfied 63% neutral 26% dissatisfied 4% highly dissatisfied 0% Satisfaction yes 33% no 67% Awareness
  35. 35. Page | 27  Frequency of ordering food home delivery in a month Fig. 10  78% of students opted for 5-10 times a month, and 7% who order food 15-20 times a month and 15% order 10-15 times a month.  Number of people for which food is ordered 5 to 10 78% 10 to 15 15% 15 to 20 7% 20 to 25 0% Frequeny 1 41% 2 to 3 44% 3 to 4 15% 4+ 0% No of people Fig. 11
  36. 36. Page | 28  44% of students usually order food for 2-3 people and 15% of students order food for 3-4 peoples. 41% students order food for self.  Famous Entertainme nt Preferences  Around 44% of the students prefer going for movie and after that 30% prefer going out to eat. 22% of students prefer travelling and rest prefer some other entertainment options. 4.2 Findings of BTM Layout BTM Layout, belonging to south Bangalore, is predominantly an IT area and students (more individual B-schools, compared to apartments), surrounding the small business units, IT companies. The survey conducted had 230 respondents, which include students, working individuals and working married couples, which completes the target audience (TA). Following are the findings from the survey. movie 44% going out to eat 30% travelling 22% others 4% Entertainment Fig. 12
  37. 37. Page | 29 Working individuals (WI):  Method of placing food home delivery order: Fig. 13  Majority of the WIs (32%) prefer to order through online since most of them are students. 23% of WIs preferred ordering food through direct call to restaurant, direct walk in to restaurant (18%) and mobile apps (27%).  Thus most of the people prefer using online portals and then through mobile apps. online 32% directcall 23% directwalk in 18% mobileapp 27% Way of ordering Food
  38. 38. Page | 30  Level of satisfaction with online food delivery Fig. 14  9% of WIs responded that they are highly satisfied with online food delivery and 46% of the WIs responded that they are satisfied with online food delivery, 36% neutral and 9% dissatisfied.  Dissatisfaction may be due to the payments and difficulties with some restaurants regarding online payment confirmation.  Awareness about Tiny Owl highly satisfied 9% satisfied 46% neutral 36% dissatisfied 9% highly dissatisfied 0% Satisfaction
  39. 39. Page | 31  55% of working individuals were unaware about Tiny Owl app. 45% of the WIs had knowledge about the Tiny Owl app and they are using it regularly.  Frequency of ordering food home delivery in a month Fig. 15  55% of WIs opted for 5-10 times per month. 36% opted for 10-15 times and another 9% for 15-20 times. yes 45% no 55% Awareness 5 to 10 55% 10 to 15 36% 15 to 20 9% 20 to 25 0% Frequency
  40. 40. Page | 32  Number of people for which food is ordered Fig. 16  50% of the WIs order food for 2-3 people and 9% of WIs order food for 3-4 people, 41% for self and almost nobody orders for more than 4 people.  Famous Entertainme nt Preferences Fig. 17 1 41% 2 to 3 50% 3 to 4 9% 4+ 0% No. of people movie 36% going out to eat 36% travelling 23% others 5% Entertainment
  41. 41. Page | 33  Around 36% of the WIs prefer going for movie and after that 36% prefer going out to eat. 23% of WIs prefers travelling and rest prefer some other entertainment options. Students:  Method of placing food home delivery order: Fig. 18  40% of students preferred online portals to order from restaurants, 35% preferred direct walk in to restaurant and 15% preferred direct call. online 40% directcall 15% directwalk in 35% mobileapp 10% Way of ordering food
  42. 42. Page | 34  Level of satisfaction with online food delivery Fig. 19  45% of students responded satisfied, 35% were neutral and 10% were dissatisfied.  Awareness about Tiny Owl Fig. 20  65% of the students were unaware about Tiny Owl app. highly satisfied 10% satisfied 45% neutral 35% dissatisfied 5% highly dissatisfied 5% Satisfaction yes 35% no 65% Awareness
  43. 43. Page | 35  Frequency of ordering food home delivery in a month Fig. 21  65% of students opted for 5-10 times a month and 35% order 10-15 times a month.  Number of people for which food is ordered Fig. 22 5 to 10 65% 10 to 15 35% 15 to 20 0% 20 to 25 0% Frequency 1 25% 2 to 3 45% 3 to 4 25% 4+ 5% No. Of people
  44. 44. Page | 36  45% of students usually order food for 2-3 people and 25% of students order food for 3-4 peoples. 25% students order food for self.  Famous Entertainme nt Preferences  Around 35% of the students prefer going for movie and majority 45% prefer going out to eat. 20% of students prefer travelling and rest prefer some other entertainment options. 4.3 Findings of Jayanagar Jayanagar, belonging to south Bangalore, is predominantly a residential area and working class people (more apartments, compared to colleges), surrounding the small business units, IT companies. The survey conducted had 200 respondents, which include students, working individuals and working married couples, which completes the target audience (TA). Following are the findings from the survey. movie 35% going out to eat 45% travelling 20% others 0% Entertainment
  45. 45. Page | 37 Working individuals (WI):  Method of placing food home delivery order: Fig. 23  Majority of the WIs (48%) prefer to order through direct walk in since most of them are residential societies. 26% of WIs preferred ordering food through direct call to restaurant, online portals (17%) and mobile apps (9%).  Thus most of the people prefer direct walk in and then through direct calls. online 17% directcall 26% directwalk in 48% mobileapp 9% Way of ordering food
  46. 46. Page | 38  Level of satisfaction with online food delivery Fig. 24  9% of WIs responded that they are highly satisfied with online food delivery and 39% of the WIs responded that they are satisfied with online food delivery, 39% neutral and 9% dissatisfied.  Dissatisfaction may be due to the payments and difficulties with some restaurants regarding online payment confirmation.  Awareness about Tiny Owl Fig. 25 highly satisfied 9% satisfied 39%neutral 39% dissatisfied 9% highly dissatisfied 4% Satisfaction yes 22% no 78% Awareness
  47. 47. Page | 39  78% of working individuals were unaware about Tiny Owl app. 22% of the WIs had knowledge about the Tiny Owl app and they are using it regularly.  Frequency of ordering food home delivery in a month Fig. 26  65% of WIs opted for 5-10 times per month. 26% opted for 10-15 times and another 9% for 15-20 times.  Number of people for which food is ordered 5 to 10 65% 10 to 15 26% 15 to 20 9% 20 to 25 0% Frequency
  48. 48. Page | 40 Fig. 27  43% of the WIs order food for 2-3 people and 22% of WIs order food for 3-4 people, 35% for self and almost nobody orders for more than 4 people.  Famous Entertainme nt Preferences Fig. 28  Around 35% of the WIs prefer going for movie and after that 22% prefer going out to eat. 39% of WIs prefers travelling and rest prefer some other entertainment options. 1 35% 2 to 3 43% 3 to 4 22% 4+ 0% No. of people movie 35% going out to eat 22% travelling 39% others 4% Entertainment
  49. 49. Page | 41 Students:  Method of placing food home delivery order Fig. 29  25% of students preferred online portals to order from restaurants, 25% preferred direct walk in to restaurant and 44% preferred direct call.  Level of satisfaction with online food delivery Fig. 30  63% of students responded neutral, 19% were satisfied and 12% were dissatisfied. online 25% directcall 44% directwalk in 25% mobileapp 6% Way of ordering food highly satisfied 6% satisfied 19% neutral 63% dissatisfied 6% highly dissatisfied 6% Satisfaction
  50. 50. Page | 42  Awareness about Tiny Owl Fig. 31  81% of the students were unaware about Tiny Owl app.  Frequency of ordering food home delivery in a month Fig. 32 yes 19% no 81% Awareness 5 to 10 87% 10 to 15 13% 15 to 20 0% 20 to 25 0% Frequency
  51. 51. Page | 43  87% of students opted for 5-10 times a month and 13% order 10-15 times a month.  Number of people for which food is ordered Fig. 33  62% of students usually order food for 2-3 people and 13% of students order food for 3-4 peoples. 25% students order food for self. 1 25% 2 to 3 62% 3 to 4 13% 4+ 0% No. of people
  52. 52. Page | 44  Famous Entertainme nt Preferences Fig. 34  Around 50% of the students prefer travelling and 25% prefer going out to eat. 25% of students prefer movie and rest prefer some other entertainment options. movie 25% going out to eat 25% travelling 50% others 0% Entertainment
  53. 53. Page | 45 Chapter 5 Competitor Analysis This is the second phase of the internship where we have to find out the competitors of the new food app TinyOwl. This research was mainly carried out by visiting various restaurants within the localities and asking from them about the services other competitors are providing and their way of taking or giving orders to the restaurants on behalf of the customers and also by doing some secondary research about the competitors available. This also includes knowing about their delivery patterns, delivery charges etc. Mainly according to the market research in Bangalore there are mainly 2 big competitors of TinyOwl i.e. Food Panda and Zomato. Also, locally available food app Swiggy is also giving tough competition to TinyOwl in terms of its delivery boys. Following are the findings of the 2 major competitors i.e. Food Panda and Zomato. 5.1 FOOD PANDA analysis SWOT Analysis Strengths  It is the largest American Chinese restaurant chain in the United States.  It has close to 1,700 plus restaurants located across all different states in the United States.  Offers a variety of food along with combo meals.  Panda Express is among the US's 25 largest quick-service operations and Asian quick-serve category.  The chain was one of the earliest entrants into the supermarket arena.  Strategically located in mall food courts and other non-traditional venues including airports, college campuses, and theme parks.  It has a successful track record of making Asian cuisine accessible to the masses.  Strong following among Asian, Hispanic, and Caucasian diners.  Leveraged lovable pandas in their name
  54. 54. Page | 46 Weakness Opportunities Threats Market Share 1) They’ve grown to become one of the largest food ordering portals in India. 2) Built a network of 2000+ partners including some of the well know brands like: Pizza Hut, Subway, Nirula’s, Baskin Robbins, Mast Kalandar, Faasos amongst many others. 3) We have quite steadily ‘shaped the market’ towards ordering food online, instead of ordering on phone. This has helped us gather a lion share of the food delivery market, and propel us towards a leadership position in the market.  Restricted to one cuisine thus restricting its customer base.  Specialty ingredients used in Chinese food might be difficult to source and store.  Restricted in a few geographies means lower brand recall.  Price differences in menu and app prices.  There is a large market leading to huge customer base.  Venturing into newer markets.  Introducing more items on its menu.  Untapped market as online food apps contribute only 7%  Managing huge employee base can be an issue.  Stiff competition from multi cuisine restaurant.  Presence of strong competitors in the Chinese restaurant segment.  Threat of New entrants.
  55. 55. Page | 47 Growth India is a market with huge potential where the scope for growth is immense. However, with internet penetration of only 8%, it is only logical to target the more cosmopolitan Tier I cities which have a sizable working population with mature internet users. We’ve seen a steady growth in traffic since our launch last year. However, the focus has really always been on quality traffic & targeting potential customers, which we have been able to achieve very successfully. We are growing by 25- 30% on month-on- month basis. Currently we get around 25000-30000 unique visitor a day. With this 65% of our traffic comes from Delhi, Mumbai & Bangalore and rest 35% from Chandigarh, Hyderabad and Pune. Market Strategy Being an ecommerce business, we believe it is best to target our potential customers when they are online in front of their computer screens, in encourage them to try us out. Hence our focus has majorly been on digital marketing channels. We believe in providing the best customer experience on our site and hence our product is continuously evolving adding new features almost every other week. We launched our mobile app in January and was very well received. We have already seen more than 250,000 app downloads worldwide which is a clear indicator of the need for innovation in the space and we are happy to take the lead. Financial funding Foodpanda announced that it has raised $20 million to fuel its aggressive growth strategy. FoodPanda’s steepest competition is Delivery Hero, a Berlin-based startup that operates in 14 countries around the world. Delivery Hero has raised nearly $200 million to date and claims it has 6 million customers, 55,000 restaurants, and did $500 million in annual sales last year. Another competitor is Just Eat, a UK-based service that raised $64 million in 2012. The U.S. saw consolidation in this space last year with the union of GrubHub and Seamless.
  56. 56. Page | 48 FoodPanda has 22,000 restaurants in its database. It raised $20 million last May and added 20 more markets in 2013. With this financing, it plans to hit 40 countries by the end of the first quarter of 2014. Croatia, Bulgaria, Serbia, Slovenia, Kazakhstan, Azerbaijan, Tanzania and Uganda are next up for expansion. Popularity Foodpanda has over 892,000 likes on Facebook, 383 followers on their Pakistan twitter account (@FoodPandapk), and a thriving campaign tempting people to try them out. What sets them apart from their competitors is that they are able to take a worldwide brand and make it country specific, and market themselves accordingly. They know what their consumers want, and they know how to get it to them. Foodpanda has been able to distinguish itself in a market that is seeing a growing number of online food delivery services. Forward Expansion Foodpanda is now available in 41 countries and is looking to expand to even more. The company made an announcement in February stating: “Foodpanda and its affiliated brand hellofood, the fastest growing online food delivery marketplace worldwide, received another USD 20 million in funding from a group of investors including Phenomen Ventures. With the new investment Foodpanda is aiming to continue its global ambitions and roll out to over 40 markets.” The company previously received another USD 20 million from AB Kinnevik in Sweden, and Phenomenon Ventures. They also received USD 8 million from iMENA. Foodpanda raised $110 million in a fresh round of fund raising from Rocket Internet and other investors. Since 2012, Foodpanda has raised over $200 million and plans to invest into product and technology. With the entry of Zomato and TinyOwl in the online food ordering space, Foodpanda wants to focus on providing the best customer service to its users. In an interview, Rohit Chadda, co-founder and managing director of Foodpanda, tells Neha Bothra about plans to tap potential in tier 2 and tier 3 cities, and increase restaurant partners from 12,000 to 15,000 in the next six months. Order rate at Food Panda We earn revenue from the commission we earn from restaurants on every successful order that we place. In terms of traffic, we get around 1,30,000 to 1,50,000 visitors each day. The average value of each order ranges between Rs
  57. 57. Page | 49 500 to Rs 550. This is higher on the mobile platform. Around 45-48% of our transactions come from our smartphone based application, and the transaction size on this platform is 20% higher than on the web. Tie ups with restaurants At present, we have 12,000 restaurants. In the next six months we will probably be at around 15,000 restaurants across India. We believe in quality over quantity. We have always concentrated on adding good quality restaurants, and if we see that a restaurant is not really performing- then we take it off from our coverage. The most important thing for us is consumer experience. 5.2 Zomato Analysis SWOT Analysis Strengths  Users perceive Zomato as ‘Specialty product’ (Focused only on foods & restaurants).  High awareness – Top of the mind product.  Global presence – 25 countries – 1.5 million listed restaurants.  Superior technology and a strong workforce of over 1200 people.  Asset less business model.  High financial leverage due to its business model.  Simple & user friendly interface.  Aggressive and Innovative marketing strategy.  Strong brand recognition and has won several accolades & awards. Weakness  Competition from search engines & other similar apps means limited growth.  Drastic growth means susceptible to bad content
  58. 58. Page | 50 Opportunities  Opportunity to expand to further more countries .  Increasing internet penetration & number of smartphone users.  Rapid technology development. Threats  Intense competition.  Lack of clear rules and regulations - Changes in government policy can easily affect the business model.  Business model can be easily imitated by other players Differentiation from others To differentiate themselves from their competitors, Zomato concentrated on adding approx. 18,000 new places to eat from. Along with they also decorated many special features, such as pointed to particular dishes or opening times”.To be the largest resource in food supply market, Zomato bought urbanspoon, a leading restaurant service providing portal for $52 million to enter US, Canada and Australia to leverage local insights and experience and to expand their business in overseas seeing the future goal and objective. Milestones Number of listed restaurants: in 2008 it was 4000 restaurants which increase to 94000 in 2013 and currently 384,100 in Q1 of 2015.  Monthly visitors of Zomato increases to 35 million in 2014 which was 11 million in 2013 and 0.015 million in 2008.  Yearly revenue of Zomato in 2008 was 0.06 crores which increased to 11.3 crores in 2013.  Spread in 21 countries worldwide.
  59. 59. Page | 51 Success Factor  First mover advantage  Strong content platform  Efficient employees  Good rating mechanism and social platform  Funding from experienced source Strategy of Zomato Zomato works with keen interest on various strategies to achieve their goal. It includes  Financial strategy: To increase their fund and revenue  Marketing strategy: To tap their customers from across the globe  Growth strategy: To grow continuously and increase their customers and page traffic  Globalization strategy: To expand themselves across the whole globe as a leading service provider. Marketing Strategy  Featured and user friendly website  Global mobile app  Focusing on digital marketing channels for potential customers  Acquire the competitors: To be the largest resource in food supply market, Zomato bought urban spoon for $52 million to enter US, Canada and Australia  Simpler review and rating system Financial Funding In August 2010, Zomato got its first round of funding of $1million from Info Edge, India. And in September 2011, got its second round of funding of $3.5million from the same financier. Next year Zomato upraised its third round
  60. 60. Page | 52 of another $2.5 million from the same investor and again in early 2013, Info Edge funded fourth round worth $10 million which gives them a 57.9% stake in Zomato. Seeing the future and growth of Zomato, Sequoia Capital and Info Edge, India in November 2013 funded Zomato with $37 million. Info Edge now owned 50.1% of Zomato on an investment of INR 143 crores. The total funding raised by Zomato till November 2013 stands at $53.5 million. In November 2014, Zomato came up with a fresh round of funding of $60 million at a post-money valuation of ~US$660 million. This round of funding was jointly headed by Info Edge India Limited and VY Capital, with involvement from Sequoia Capital. This made a total funding of over US$113 million for Zomato. Expansion Zomato will leverage its existing reach and scale (sales team of over 300 people, 5000 odd advertisers) to fast track its growth in this space. Setting ambitious targets, Zomato claims to bring over 10,000 restaurants in its food ordering network in the next three months and also start processing over 40,000 orders a day in the near term. And why not? “Given that we have over 400,000 people who visit our India section every day, this shouldn’t be too hard,” “We will invest $50 million in the business in India over the next year or so,” he continues. “This will be our fastest ramp up for any business in any geography ever.” Zomato plans to make money from this new service via a cut of each order, but the exact size of its fee will be based on feedback from customers directly. In the case of a five star rating, Zomato will take a 7.5 percent commission fee. But that cut will rise to a maximum of 15 percent for the lowest customer feedback. Thus the best experience and value for customers will be the key focus. “We will own the customer experience on the tech end, as the platform, the delivery and logistics will be owned by the restaurants.” Order rate The company works with more than 150 vendors to provide shipments across 175 cities. It averages about 9,000 deliveries daily. “We not only provide for shipments and deliveries, but also warehousing facilities where the company stocks and racks the products for the vendors,” said Bharati. In addition, Delivery provides all kinds of retailers, even small businesses, technology solutions to integrate all channels of sale. These include offline, online, social
  61. 61. Page | 53 media, mobile and voice solutions that allow sellers to manage stores and integrate delivery with market needs. Future strategy Delivery is looking to expand to 250 cities, 30 delivery centres and targeting revenue of Rs.250 crore for the fiscal year 2015-16. International expansion is part of its future strategy. App reviews Zomato, the popular online and mobile restaurant guide, has updated its iOS app, completely overhauling the user interface and has added new features. The updated Zomato app offers a much simpler user interface, in line with the resecnt redesign of the Zomato website, with the home screen offering large swappable images of nearby restaurants that lead to their respective listings, in addition to options to browse restaurants and search for them by entering keywords for name, location, cuisine or dish. The Browse Restaurants option takes you to a menu that offers mood-based recommendations. So, you can select if you're looking to get food home delivered, going out for a meal, going out for drinks or just catching up with friends. Selecting the location is the next step, following which, the app offers a list of restaurants that match the criteria. There's a separate screen for location based restaurants search through which you can sort restaurants based on the distance from your current location. You can apply additional filters such as ratings, whether the restaurant is open at the time of the search, cuisine, budget and other aspects. There's also a 'Featured Content' section that offers lists such as top 25 restaurants, foodie leader board (for regular users), and featured reviews, among other content. Users can also post pictures for restaurants they've visited in case they just want to post picture reviews. Pictures can be posted through the restaurant's listing page or through a section within the app that allows users to upload reviews and pictures of restaurants
  62. 62. Page | 54 5.3 Summary of all the competitors Particulars FoodPanda/Tas ty khana/ Just Eat Swiggy Zomato Strengths Offers and coupon discounts, Market share across Bangalore, Promotion for brand awareness, recruiting delivery boys (12000 at the end of the year 2015). Timely delivery and excellent service, more than 150 delivery boys Ultimate destination for food includes table bookings, home delivery, and discovery of the restaurant. Weakness Payment delay to the restaurants, no cash on delivery on some restaurants. Services are down at peak time. Home delivery begins in only one segment of their entire market. Opportunities Customers order food via app and online is increasing. Customers order food via app and online is increasing. Customers order food via app and online is increasing. Threats New entry New entry New entry Market Strategy Funds Raised $110 million in a fresh round of fund raising from rocket internet and other investors Raised $16.5 million in additional funding to make a play for the Indian market. Raises $50 million in funding led by existing investor Info Edge
  63. 63. Page | 55 Short term goal Increase restaurant partners from 12000 to 15000 at the end of October 2015 Increase manpower New product line i.e., a product which will allow the users to pay restaurant bill through mobile application Purchase and usage Average purchase The average value of each order ranges between Rs 500 to Rs 550. Delivers over 70000 orders on a monthly basis. 9000 delivery per day all over India. Usage Around 45-48% of the transactions come from smartphones based app and the transaction size of this platform is 20% more than on web. 50% more orders shifting from the website to the app quickly. Online ordering is more when compared to mobile app.
  64. 64. Page | 56 5.4 Competitor Analysis Grid FoodPanda Swiggy Zomato Company info. Description FoodPanda is one stop destination for ordering a scrumptious meal at your doorstep. Swiggy is an early stage on- demand food delivery startup delighting customers in Bangalore. Zomato wants to become a singular platform for discovery,table bookings,restaurant ordering Purpose "Food Panda - Your One Shop Stop For Delicious Food" Biggest focus : “never let our customers stay hungry” Zomato the ultimate destination for all things food Product and Services Principle product Online & Mobile platform to discover and order from nearby restaurants. Online & Mobile platform - Open market place that enables online ordering from nearby restaurants & picks up and delivers Online and mobile platform for discovery of restaurants, table bookings, home delivery and payments. Pre-ordering facility Pre-ordering facility available No Pre-ordering facility available. All deliveries done on demand No Pre-ordering facility available Delivery duration 45-60 min 35 - 45 minutes (Delivery fee is fully waived if it takes longer) Delivery charges Determined by restaurants individually. Delivery cost for each restaurant mentioned in the website. Standard delivery charges ( 40rs - 70rs depending on the distance/ restaurant ordered from ) 11 am to 11 pm 11:30am -
  65. 65. Page | 57 Service Timings from Monday to Sunday. 10:45pm from Monday to Sunday Product/Service Positioning Positioned as an online food delivery platform where more offers, coupons and discounts are available for customers, compared to competitors. Efficient logistics solution (150+ delivery executives), seamless on- ground operations and powerful technology Providing a user interface platform to restaurants. Hence giving the restaurants the power to direct , accept orders , change menus, attract customers , provide important information. Target Audience and Marketing Primary Target Market Tech savvy youth, working people, working couples in the age group of 18- 40, people hesitant to cook and go out to have food, who need food at their door steps on demand. Tech savvy youth, working people, working couples in the age group of 18- 40, people hesitant to cook and go out to have food, who need food at their door steps on demand. Tech savvy youth, working people, working couples in the age group of 18-40, people hesitant to cook and go out to have food, who need food at their door steps on demand. Strategy used to market their product/services Attractive offers which is appealing to the customers. Using the carousel format to promote its app, foodpanda increased click- through rates by 180% and reduced their cost per install by 39%. Area focused sales teams and online platforms. Currently they are focusing on segments such as Online food ordering, restaurant booking, subscription-based services and billing inside of restaurants Growth by Slow and Dependent on
  66. 66. Page | 58 Growth acquiring similar start-ups like Just Eat, tastykhana etc measured locality wise expansion with strength of logistics team in the launch phase to create the right first impression. brand name, word of mouth through its network of users. Social media details Facebook 1.4 million likes 3300+ likes Twitter 11.3K followers, 13.2K tweets, 2760 favorites 312 followers, 520 tweets, 126 favorites Linkedin 5400+ followers 691 employees listed, Uses LinkedIn mainly to brand their CSR initiatives. 270+ followers, 52 employees listed Others Instagram- 1200+ followers, 280+ posts. Instagram-14 followers, no posts No. of visitors 66,583 daily, 1,997,490 monthly 17,949 per day, 538,470 per month 366,353 daily, 10,990,590 monthly Marketing Campaigns tv ads, online pop ups, stickering at restaurants online ads, logos and stickering restaurants online marketing, stickering at restaurants, ads Sales Promotion 30% off, 300 off on 450, 50% off, buy 1 get 1 Rs. 75 off on any order combo offers User interface(we bsite) Locality search option. Chat option available. Locality search option in the center. Chat Locality search option visible. Collection and
  67. 67. Page | 59 Login option available. FAQ and Policies available. feature available. Login option available categories of cuisine on right. Specific meal search on left. User interface (application) Application available. Limited restaurants available. Application available. Food ordering primary. No proper list of restaurant sorted as shows restaurants not present in the area. Application available. Attractive. Food ordering not primary. Providing restaurant and cuisine information primary target. Not user friendly. Minimum delivery amount yes depending on restaurant yes depending on restaurant. Rs 30 delivery charge for order below 150 yes depending on restaurant Features of mobile app Mode of placing orders Website, mobile app Website, mobile app Website, mobile app Operating platforms Android, iOS, Windows Android Android, iOS, Windows No. of downloads(Android) 1 million+ 5000+ 10000+ Minimum no. of steps involved (From search to order placement) 10+ Less than 10 Less than 10 Info about selected restaurant given Address, Payment methods, Reviews and location in map. No info/ reviews, Delivery time indicated. Restaurant Location Reviews about restaurant given Given while listing restaurants and in the info Not given Not given
  68. 68. Page | 60 Chapter 6 Inferences and Summary of Findings 6.1 Inferences from Electronic city 6.1.1 About Working Individuals  It can be inferred that WIs who prefer ordering food through mobile apps (38%), online web portals (14%) indicates the presence of TA who like to have convenience in ordering food.  From level of satisfaction we can understand that online food delivery system is prominent and running successfully in Electronic city.  Statistics about frequency of ordering food home delivery indicates that there is decent number of food home delivery orders in Electronic city.  Marketing activities with emphasis on the combo offers in the app will be fruitful in Electronic city.  Regarding the preferred cuisines of respondents, North Indian was the predominant cuisine, followed by Biryani items. Going out for eating and movie were the major entertainment preferences of WIs. 6.1.2 About Students  They prefer dining with friends and going for movies in weekends.  Majority were students have placed a food home delivery through online, hence they chose Satisfied option.  Frequency of food home delivery orders placed in a month by students and WIs, indicates that decent number of orders can be generated from Electronic city.  While showing the demo of the TinyOwl app, students found the free meals offer which enables them to earn money in their TinyOwl account more attractive.  North Indian was the preferred cuisine by most of the students. Major entertainment preferences include Movie and going out for eating.
  69. 69. Page | 61 6.2 Inferences from BTM Layout 6.2.1 About Working Individuals  It can be inferred that WIs who prefer ordering food through online portals (32%), mobile apps (27%) indicates the presence of TA who like to have convenience in ordering food.  From level of satisfaction we can understand that online food delivery system is prominent and running successfully in BTM Layout.  Statistics about frequency of ordering food home delivery indicates that there is decent number of food home delivery orders in BTM Layout.  Marketing activities with emphasis on the combo offers in the app will be fruitful in BTM Layout. 6.2.2 About Students  They prefer dining with friends in weekends.  Majority were students have placed a food home delivery through online, hence they chose Satisfied option.  Frequency of food home delivery orders placed in a month by students and WIs, indicates that decent number of orders can be generated from BTM Layout.  While showing the demo of the TinyOwl app, students found the free meals offer which enables them to earn money in their TinyOwl account more attractive.  North Indian was the preferred cuisine by most of the students. Major entertainment preferences include Movie and going out for eating.
  70. 70. Page | 62 6.3 Inferences from Jayanagar 6.3.1 About Working Individuals  It can be inferred that WIs who prefer ordering food through direct walk in (48%), direct call (26%) indicates the presence of TA who like to have convenience in ordering food by going to restaurants directly.  From level of satisfaction we can understand that online food delivery system is not so prominent in Jayanagar.  Statistics about frequency of ordering food home delivery indicates that there is less number of food home delivery orders in Jayanagar.  Marketing activities with emphasis on the combo offers in the app will be fruitful in Jayanagar. 6.3.2 About Students  They prefer travelling to their respective homes or with friends in weekends.  Majority of students have placed a food home delivery through direct call, hence they chose Neutral option.  Frequency of food home delivery orders placed in a month by students and WIs, indicates that number of orders that are generated from Jayanagar are very less  While showing the demo of the TinyOwl app, students found the free meals offer which enables them to earn money in their TinyOwl account more attractive.
  71. 71. Page | 63 6.4 Inferences from Restaurants 6.4.1 From Electronic city While interviewing with the restaurant managers/owners of 12 restaurants from Electronic city region revealed the following.  On an average, they are getting 10-15 home delivery orders per day from electronic city.  The number of walk-in customers per day in these restaurants averages from 100-200 customers/day.  FoodPanda and Zomato are the apps they are tied up with.  The areas from which they get maximum number of home delivery orders are Electronic city phase 1, phase 2, B-schools and areas within 3km radius.  Peak hours of home delivery are from 12-2pm in week days and 7-9pm in weekends.  Also since in Electronic city more students and PGs are there, they get bulk order from colleges and etc. 6.4.2 From BTM Layout While interviewing with the restaurant managers/owners of 10 restaurants from BTM Layout region revealed the following.  On an average, they are getting 5-10 home delivery orders per day from BTM Layout.  The number of walk-in customers per day in these restaurants averages from 100-200 customers/day.  FoodPanda and Zomato are the apps they are tied up with.  The areas from which they get maximum number of home delivery orders are from areas within 3km radius.  Peak hours of home delivery are from 12-2pm in week days and 7-9pm in weekends.
  72. 72. Page | 64  Also since in BTM Layout more students and companies are there, they get bulk order from colleges and etc. 6.4.3 From Jayanagar While interviewing with the restaurant managers/owners of 5 restaurants from Jayanagar region revealed the following.  On an average, they are getting 5-10 home delivery orders per day from Jayanagar.  The number of walk-in customers per day in these restaurants averages from 150-300 customers/day.  FoodPanda and Zomato are the apps they are tied up with.  The areas from which they get maximum number of home delivery orders are from areas within 3km radius.  Peak hours of home delivery are from 12-2pm in week days and 7-9pm in weekends.  Also since in Jayanagar more residential societies and companies are there, they get bulk order from homes and etc.
  73. 73. Page | 65 Chapter 7 Recommendations  In case of WIs, marketing activities with promo codes and emphasis on combo offers will be effective.  When it comes to students, they are more attracted towards the free meal offer, which enables them to earn money into their TinyOwl account easily. Marketing activities with emphasis on this offer will create interest in students towards the app.  Marketing activities in PGs and colleges will be effective in catching attention of more students and working individuals.  Marketing activities in residential areas and apartments will be effective in catching attention of more people and working individuals.  Marketing activities need to be extensive as there is a lot of scope of people who can use the app.  Marketing activities such as big hoardings, posters etc., if displayed, will attract more and more customers and also people will get awareness about the app.  Marketing activities near hostels and colleges will be most effective since most of the students prefer to have variety of food at reasonable rates.
  74. 74. Page | 66 Chapter 8 Conclusion Bangalore is also called foodie’s paradise because of vast variety of foods and eatables available with a touch of uniqueness and tradition. Popular cuisines in Bangalore includes traditional vegetarian (south Indian & North Indian, Chinese, Thai, Arabic (Mughlai & Hyderabadi) . A survey done by FoodPanda.in states that Bangalore being the Silicon Valley of India with a large population of young working professionals beats other cities when it comes to ordering food between 3 p.m. and 7 p.m. with 18 percent of the total orders across India coming from the city. The survey also reveals that o Italian cuisine is the most preferred choice for food in between meals at 32 percent, it is closely followed by Chinese (24 percent) and fast food (17 percent). o Japanese and Hyderabadi cuisine seems to have lost the gourmet game by being the last options preferred by foodies. o Salads and Sandwiches (eight percent), Mughlai (seven percent), multi-cuisine (three percent) and South Indian (two percent) make up the rest of the least preferred choices with bakery items and ice cream recording only one percent of orders placed. This data reveals that Bangalore is known for foodies and also increasing users of smart phones clearly indicates that for such kind of mobile food apps will be very much fruitful for the expansion and establishment of these companies. Since, TinyOwl is currently serving in only 5 major cities, but seeing the interest of the customers in the app it is trying to expand its market to all over India gradually.
  75. 75. Page | 67 Bibliography REFERENCES  http://www.pce.uw.edu/courses/data-analysis- methods.html  http://www.restaurantindia.in/article/growth/expansion/O nline- food- delivery-sees-a-boom.a137/  http://blog.zomato.com/post/94342869876/three-problems- we-are-trying- to-solve-at- zomato  http://yourstory.com/2015/02/zomato-announces-online- food-ordering- india/  http://www.financialexpress.com/article/companies/foodpanda-raises-110- mn-from- rocket- internet-rohit-chadda-says- targetting-15000-restaurants- across-india/53218/  https://www.tinyowl.com/  http://www.hungryforever.com/story- mumbai-based- food-ordering-app- tinyowl/
  76. 76. Page | 68 APPENDICIES APPENDIX I Questionnaire for customers Q1. How do you order your food? a. Direct call to restaurant b. Online portal. c. Mobile application d. Direct walk in. Q2. Are you satisfied with ordering online? a. Highly satisfied b. Satisfied c. Neutral d. Dissatisfied e. Highly dissatisfied. Q3. Are you aware about TinyO wl? a. Yes b. No Q4. Are you interested in using this app? a. Yes b. No. Q5. Occupation? a. Student b. Working individuals c. Working married couples. d. Home maker.
  77. 77. Page | 69 Q6. What are your famous entertainment preferences? a. Movie b. Going out for eating c. Travelling d. Others Q7. No. of times you order home delivery in a month? a. 5-10 times b. 10-15 times c. 15-20 times. d. 20-25 times. Q8 what are your preferred Cuisines? Q9 For how many people you usually order food? a. 1 b. 2-3 c. 3-4 d. 4+ Q10. Most popular restaurant you prefer?
  78. 78. Page | 70 APPENDIX II Questionnaire for Restaurant Owners Q1. No. of orders per day for home delivery? a. 100-250 b. 250-400 c. 400-550 d. 550 and above Q2. No. of walk-in customers per day? a. 75-150 b. 150-300 c. 300-400 d. 400 and above Q3. Are you tied up with any of the food ordering apps? a. Yes b. No. Q4. Which mobile application or online portal gives the maximum no. of orders? a. Foodpanda b. Zomato c. TinyOwl. d. Swiggy. Q5. Are you aware of TinyOwl? a. Yes b. No. Q6. From which location you get the most number of orders? Name of Restaurant:
  79. 79. Page | 71 Q7. Any offers/discounts given to customers by you? Q8. Which portal do you prefer the most? a. Foodpanda b. Zomato c. TinyOwl. d. Swiggy Q9. Peak hours for home delivery? a. 12-2 pm b. 2-3 pm c. 7-9 pm d. 9-11 pm Q10. Common Issues faced due to home delivery?

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