Case Study: How Zomato Built A Billion Dollar Company In India
Zomato started its services offering a more straightforward method of finding restaurants in your area. Zomato’s founders hoped to devise a new way to find dishes at a nearby cafe. They decided to build their technology and launch an online platform.
Zomato was founded in 2010 by founders Deepinder Goyal and Ankit Bhatia. They wanted to create an online platform to help people find better food when they are out and about, especially if they are looking for Indian food.
According to Zomato’s website, “The founders of Zomato had faced many challenges while building the company over the years, but none could have been more dependent on them than the challenge of market research.
However, the challenge was solved by the founders.
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The idea behind Zomato – A brief history
The idea behind Zomato is to provide a platform for restaurants to share their menu and reviews.
The platform aggregates reviews of thousands of restaurants and allows users to select the ones they like most.
Zomato is growing exponentially and has already become one of India’s most famous online businesses today.
Zomato Business Model
Zomato’s business model is based on serving quality food to customers at an affordable price and taking orders from them directly on their website or through mobile apps (Android and iOS).
The company has over 1 million users who order food daily from its platform. These users can place an order from anywhere, anytime, even if they are away from home or don’t have a computer nearby!
The company provides delivery services across cities like Delhi-NCR, Mumbai and Bangalore, and rural areas.
Mohit Goel, Director of Zomato India, spoke about the growth of Zomato in the private sector for 15 years and said that he had faced challenges in getting his company to scale up at times, but things have changed now.
He said they first needed cash from investors and later from users’ bank accounts.
He also added that the number of users was growing over time which is why they needed more staff to keep things running smoothly.
Zomato Funding
Info Edge first invested Rs 4.7 crore in Zomato in 2010 as seed money. “Here is the ultimate reason India should invest more behind its startups and in early-stage VC funds.”
It all started with a small investment. The company quickly grew to be one of India’s biggest food delivery platforms, serving about 500 cities across India with over 30 to 40 Lakh Food Delivery Boys in India.
Zomato IPO
Zomato is among the leading online food service platforms. It is listed as an online market aggregator that connects customers to a partnered chain of local restaurants.
Its B2C model has achieved success in both food delivery and dining-out segments.
What experts say is Zomato shares were uptrend after hitting its new 52-week low of 40.60 for one stock on NSE last month as of November 2022.
The food platform stocks has risen from around 46.80 to 63.10 in August 2022, logging around a 35 per cent rise.
Zomato Marketing Strategies
Every modern brand understands the value of marketing in enabling its growth story, and Zomato is one of them.
Since its inception, Zomato’s marketing strategy has been stellar. The food delivery app focuses on creating the ideal content for its audience, including people between 18-35 years of age.
7 Things to Learn From Zomato’s Marketing Strategy
- Customer – centric, loyal and relevance in content
- Notifications for every mood.
- Emails that grab attention
- It creates fun with statistics
- Behind-the-scenes SEO
- Relatable social media memes
- Advertising everywhere: from billboards to display ads
Zomato Target Audience
Between 18 and 35 makeup.
People with smartphone experience using apps 18 and 35 make up Zomato’s target market. It aims to attract two customers: those who prefer to eat out and those who want to order food delivered to their homes.
Zomato Digital Marketing Channels
Zomato utilizes Google Adwords for its search ad campaigns. It targets terms such as “food,” “online ordering,” “restaurant names,” and many others.
It aims to attract people who want food delivered to them. It also runs Google Display advertisements to target people on apps and websites from third parties.
Zomato’s digital marketing strategies are spread across social media platforms (like Instagram, Facebook, YouTube, and Twitter), Search engines, and Paid to advertise.
All their strategies have one brand voice, portray who they are, and are highly customer-oriented.
Zomato’s Social media strategy
As we have seen earlier, most of Zomato’s target audience falls under the age category of ’18-35 years.
Therefore, it becomes essential for the food tech giant to keep its ‘social media marketing campaigns up to the mark.
The platform puts extra effort into staying connected with its audience through some unique content on social media by doing engaging posts.
Zomato’s followers on different social media platforms are:
- Instagram: 763k Followers
- Twitter: 1.5 M Followers
- Facebook: 1.9 M Liked
- YouTube: 401K Subscribers.
- LinkedIn: 1M Followers
Conclusion
Zomato, as a brand, leaves a lasting impression on consumers; therefore, the brand is unforgettable. The company has done most of the things right to be today as one of the most valued company in India.
Comment down your experience with Zomato and let us know if we have missed any points.
