Zomato: Redefining Digital Marketing

Case Code: MKTG418
Case Length: 19 Pages
Period: 2017-2021
Pub Date: 2020
Teaching Note: Not Available
Price: Rs.500
Organization : Zomato
Industry :-
Countries : India
Themes: Digital Marketing/ Business Strategy/ Marketing Communication/
Global Economic Impact of Coronavirus – Assessment and Mitigation (B)
Abstract Case Intro Excerpts


The Growth Story

Zomato was co-founded by two Gurgaon-based employees of Bain & Co. – Deepinder Goyal and Pankaj Chaddah (Chaddah) – in 2008, under the name Foodiebay.com. The sight of their colleagues queuing up at the office cafeteria every day to go through a file of restaurant menu cards to order food resulted in Goyal coming up with the idea of an online restaurant information service. He scanned the menu cards and listed them on an intranet website. Many employees soon started using the service. Seeing the huge traffic to the site, Goyal and Chaddah launched their site publicly in 2008. The website foodiebay.com listed restaurants in Delhi NCR . By the end of 2008, it had become the biggest restaurant directory in the region. In 2010, Foodiebay was renamed Zomato. ..

Competition and Stakeholder Tension

While Zomato had been able to grow at a brisk pace, it had to also contend with aggressive and well-funded rivals in a cut throat market. The food service sector in India was valued at around Rs 4,238 billion as of March 2019, according to a report by the National Restaurant Association of India (NRAI) . And much of this growth was attributed to the rise of food delivery platforms. According to consulting firm Redseer, the number of orders placed on such ordering apps had increased from around 1.7 million a day in 2018 to about 2.2 million in 2019...

Digital Marketing Strategy of Zomato

With the tagline “Discover great places to eat around you”, Zomato targeted the age group of 18-35 years who had access to smartphones and were comfortable using apps. The company’s target segment was the working professional, who wanted to dine out, wanted to refer to ratings and reviews of the restaurants they wished to visit, and also wanted to get food delivered at their doorstep. Zomato positioned itself as a platform that brought restaurants, suppliers, consumers, food suppliers, and logistics partners together. It also positioned itself as the app consumers should look for when it came to authentic reviews and recommendations before visiting or ordering from a restaurant. ..

The Road Ahead

In the first half of FY2020 (i.e. April-September 2019), Zomato reported revenue of US$205 million compared to US$63 million in the first half of FY19 – an increase of 225%. The company also reported that its monthly burn rate, which measures the rate at which a company is losing money, was down by 60%. In the segment of ‘Dining Out’, globally the number of restaurant listings on Zomato was increased from 1.2 million in September 2018 to 1.5 million in September 2019. In table reservations, Zomato had reported 800 thousand booked covers in January 2019 to over 1.3 million booked covers in September 2019. The revenue from Hyperpure for April-September 2019 was USD 6.5 million. “We achieved tremendous results in optimizing our costs, without affecting new product launches or innovation,” commented Goyal...


Exhibit I: Screenshot of Zomato Tweet
Exhibit II:The Digital Ad
Exhibit III: Financial Highlights of Zomato
Exhibit IV: Some Major Food Aggregators in India
Exhibit V: Funding and Investor details of Some Major Food Aggregators in India
Exhibit VI: Zomato’s Text Massages
Exhibit VII: Zomato’s Usage of SEO
Exhibit VIII: Zomato’s Ad Campaigns
Exhibit IX: Zomato’s Content Marketing on Facebook
Exhibit X: Zomato’s Content Marketing on Twitter
Exhibit XI: The Response of the Anti Marketing Tweet by Zomato
Exhibit XII: Zomato’s Web Streaming Service
Exhibit XIII: Tweet about Zomato’s Contactless Dining

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