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.
(Generative) AI & Marketing: - Out of the Hype - Empowering the Marketing M...
Summer internship project report on online food app- TINYOWL
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
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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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.
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. 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. 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. 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?