Summer Internshi P Project Report: III Semester MBA

Summer Internshi p Project Report
On
Market Research and Competitor Analysi s of Online Food App

TINY OWL
By
SAHIL JAIN
III Se me s te r M BA
Reg.No 14MB1383
Guide
Mrs. Madhu Smriti
Project Report submitted to ISBR Busines s School in partia l fulfi llme nt of the
requir e me nts of III Semester MBA examinatio ns – 2015
ISBR BUSINESS School

Electr o nic city Phase- 1
Banga lor e- 560 100
Certificate by Guide
Declaratio n
Acknowle dge me nt
List of Tables and F igures
Tab le 1 ...............................................................................................................4
F ig. 1 ............................................................................................................... 21
F ig. 2 ............................................................................................................... 22
F ig. 3 ............................................................................................................... 23
F ig. 4 ............................................................................................................... 23
F ig. 5 ............................................................................................................... 24
F ig. 6 ............................................................................................................... 24
F ig. 7 ............................................................................................................... 25
F ig. 8 ............................................................................................................... 26
F ig. 9 ............................................................................................................... 26
F ig. 1 0 ............................................................................................................. 27
F ig. 1 1 ............................................................................................................. 27
F ig. 1 2 ............................................................................................................. 28
F ig. 1 3 ............................................................................................................. 29
F ig. 1 4 ............................................................................................................. 30
F ig. 1 5 ............................................................................................................. 31
F ig. 1 6 ............................................................................................................. 32
F ig. 1 7 ............................................................................................................. 32
F ig. 1 8 ............................................................................................................. 33
F ig. 1 9 ............................................................................................................. 34
F ig. 2 0 ............................................................................................................. 34
F ig. 2 1 ............................................................................................................. 35
F ig. 2 2 ............................................................................................................. 35
F ig. 2 3 ............................................................................................................. 37
F ig. 2 4 ............................................................................................................. 38
F ig. 2 5 ............................................................................................................. 38
F ig. 2 6 ............................................................................................................. 39
F ig. 2 7 ............................................................................................................. 40
F ig. 2 8 ............................................................................................................. 40
F ig. 2 9 ............................................................................................................. 41
F ig. 3 0 ............................................................................................................. 41
F ig. 3 1 ............................................................................................................. 42
F ig. 3 2 ............................................................................................................. 42
F ig. 3 3 ............................................................................................................. 43
F ig. 3 4 ............................................................................................................. 44
Abbrev iatio ns Used
Table of Contents
Contents
Exec utive S umma r y ............................................................................................1

Chapter 1 I ntr od uc tio n ...................................................................................2
1.1 I ntr od uc tio n ab o ut the sec tor ..................................................................2
1.2 I ntr od uc tio n ab o ut the c o mpa ny ..............................................................5
1.3 Co mp e titor s ............................................................................................6
1.4 F ea ture s O f the Ap p ................................................................................6
Chapter 2 Lite ra ture Re vie w ..........................................................................7
2.1 Ma rk e t Re se ar c h........................................................................................7
2.2 Ma rk e ting Res ea rc h P ro ced ur e ..................................................................8
2.3 Sa mp ling De s ign ..................................................................................... 11
2.4 Q ue stio nna ir e De s ign .............................................................................. 13
2.5 Ad va nta ges a nd Dis ad va nta ge s o f Q ue stio nna ir e De s ign ......................... 15
2.6 S umma r y ................................................................................................. 15
2.7 C o mpe tito r Ana lys is ................................................................................ 16
Chapter 3 Me tho do lo gy ................................................................................ 17
3.1 Res ea rc h o bjec tive s ................................................................................. 17
3.2 Res ea rc h me thodo lo gy ............................................................................. 18
3.3 Data Ana lys is Tec hn iq ues ....................................................................... 19
3.4 Limita tio ns o f the pr o jec t s tud y .............................................................. 20
Chapter 4 F ind ings ...................................................................................... 21
4.1 F ind ings o f e le c tr o nic c ity ...................................................................... 21
4.2 F ind ings o f BTM La yo ut ......................................................................... 28
4.3 F ind ings o f J a ya na ga r ............................................................................. 36
Chapter 5 Co mp e titor Ana lys is .................................................................... 44
5.1 FOOD P AN DA a na lys is ........................................................................... 45
5.2 Zo ma to Ana lys is ..................................................................................... 49
5.3 S umma r y o f a ll the c o mpe tito rs ............................................................... 54
5.4 C o mpe tito r Ana lys is Gr id ........................................................................ 56
Chapter 6 I nfe re nce s a nd S umma r y o f F ind ings ........................................ 60
Page | 1
6.1 I nfe r e nc es fro m Ele c tro nic c ity ............................................................... 60
6.1. 1 Ab o ut W or k ing I nd iv id ua ls ............................................................... 60
6.1. 2 Ab o ut S tude nts .................................................................................. 60
6.2 I nfe r e nc es fro m BTM La yo ut .................................................................. 61
6.2. 2 Ab o ut S tude nts .................................................................................. 61
6.3 I nfe r e nc es fro m Ja ya na gar ....................................................................... 62
6.3. 2 Ab o ut S tude nts .................................................................................. 62
6.4 I nfe r e nc es fro m Res ta ura nts .................................................................... 63
6.4. 1 F ro m Ele c tro nic c ity ......................................................................... 63
6.4. 2 F ro m BTM La yo ut ............................................................................. 63
6.4. 3 F ro m Ja ya na gar ................................................................................. 64
Chap te r 7 Re co mme nda tio ns .......................................................... 65
Chap te r 8 Co nc lus io n ..................................................................... 66
Bib lio gra p hy .................................................................................................... 67
REF EREN C ES .............................................................................................. 67
APP EN DIC I ES ................................................................................................. 68
APP EN DI X I ................................................................................................. 68
APP EN DI X II ................................................................................................ 70
Page | 2
Executive Summary
The internship was aimed towards the launch of the Bangalore’s freshest online
Food Ordering App, TINYOWL. The main objectives of this inter ns hip were-
 Identif ying the Target Audie nce.
 Where to find the Target Audie nc e.
 How to reach them in the most effec tive manne r.
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 competitor s and excitin g feature s 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 vario us marketin g strategies and SWOT analys is .
Questio nna ire was prepared based on certain parameter s such as-
 Age group
 Life sty le
 Frequenc y of ordering food
 Average amount spend per meal
 Preferre d cuis ines
 Enterta in me nt prefere nce s
 Preferre d restaura nts.
Page | 1
Cha pte r 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 delive r y space.
Players in the industr y broadly class ified into three categor ies - - -
o Fully integrated: Those who process food and delivers (Dominos,

McD etc)
o Deliver y 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 deliver y indus tr y:
o Increase in disposable income and deeper internet penetration of

customer s (web/mo b ile) .
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 website s are also follo wing suit.
Page | 2
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.
Page | 3
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.”
Tabl e 1
Page | 4
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 locatio n of the restaura nt.
Features of app:
 Detects locatio n of app user automa tic a lly.

 User can choose from more than 4000 restaura nts.
 Saves the order histor y and addresses.
 Custome r support team with strength of more than 100
 No extra fees charged from customer s.
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 Mumba i India ns IPL team.
It Uses VVIP passes, meet & greet MIs etc for socia l media marketin g.
Marketing campaign #Anythingforfood launched as a part of their pan- India

expans io n.
Page | 5
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 startup based in Bangalore is assumed to
be a competito r of TinyO wl for its expans io n in Banga lor e.
 FoodPanda and Zomato have got more fund ing compared to TinyO wl.
 Custome r revie ws 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, where as other
player s like FoodPanda concentra te s more on offers .
o Unlike other apps, TinyOwl is not flooding the email ids of
customer s with spam message s.
o More options of food and restaurants available in TinyOwl app,
compared to competitor s.
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
locatio n and gives you a list of the nearby restaur a nts .
 The app provides you not only the lunch and dinner menus, it des cribes
each dish and provide s 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.
Page | 6
Cha pte r 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
communic ates the find ings and their imp lica tio ns. . ” .
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 informa tion that reflects a true
state of affairs. Due to market research the company can formulate a viable
marketin g plan and estimate the success of its existin g plan.
There are two main sources of marketin g research info r ma tio n :
 Primary marke ting re s e arch 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 re sults
than secondary research, more expensive and time consuming, which are
an especially important consideration when the company is launching a
new product or servic e.
Page | 7
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
info r ma tio n and results gathered are highly accurate.
 Se condary marke ting re s e arch 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 , therefor e results of analys is may be inacc ura te.
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.
Page | 8
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 informatio n: -

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
Page | 9
Primary and Secondary Data analysi s: -
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 Analysi s

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
Page | 10
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 belie ve ”.
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
follo wing:
1. Define the populatio n.
2. List all member s of the populatio n.
3. Select the sample by employing a procedure where sheer chance determines
which members on the list are drawn from the sample.
Page | 11
Step-by-ste p method for determin ing reliabil ity 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 collec te d to provid e reliab le (95% certainty) infor ma tio n :
 De te rmine coding s che me 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
categor ies ).
 Code re s pons e s . 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 divis io ns .
 Compute re liability. 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 ).
Page | 12
2.4 Questionnaire Design
A questio nna ir e is a docume nt designed with the purpose of seeking info r ma tio n
from the respondents.
Steps in Questio nna ire Design:-
1. What is involved
The researche r define s the info r ma tio n that is being sought.
 Consider research objectives .

 Discuss with others in the fie ld .
 Literature searches and wide reading on Literature searches and
wide reading on the topic.
 Review earlier questionnaires/scales or Review earlier

questio nna ir es /s ca les or instr ume nts that may be availa b le.
2. Drafting of que stionnaire
 Researcher takes the list of information they wish to obtain from
responde nts and devises draft questio ns .
 Phrasing and design of questions affect the validity of the affect the
valid ity of the info r ma tio n obtaine d .
 Sequencing the questions –background variables first, introduce

each theme /top ic area in separate sections
 Methods for coding the data

 Methods for analys is of the data
 Layout and presentation - make it easy to complete and present
profess io na lly;
 Consider your audience - type face, font size, instructions, use of
language (elderly respondents need instructions, use of language
(elder ly responde nts need large font)
 Cultura l and gender appropria te ne ss .
Page | 13
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 miss ing data, are some Qs misunde r stood ?)
 Ask the respondents or colleagues for feedback Ask the respondents
or colle a gues for feedback about design and questio ns
4. Redrafting the Questionnaire
 If problems were found then the questionnaire will need to be
redrafte d
 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
questio nna ir e 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
responde nts
 How would this be done? Postal, telephone, structured interview.
Mode of administration differences  Bias issues in clinical follow
up and patie nt satisfac tio n surve ys can arise.
 The responses are then analysed in terms of the researcher’s aims

and objective s.
Page | 14
2.5 Advantages and Disadvantages of Questionnaire Design
Tabl e 2
2.6 Summary
 Questionnaires are useful tools if properly designed and administered and

adminis te re d
 Well- constructed questionnaires can yield valuable and often novel
information relatively inexpensively and often novel information
relative ly inexp e ns ive ly
 A questionnaire is a vehicle allowing communication between the
researche r and the subject between the researche r and the subject
 A good questio n na ire is the product of testing and retesting
 Where ever possible, construct or use a valid and reliable tool, or test its
valid ity and relia b ility.
Page | 15
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
partic ula r circums ta nce s.
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
analys is of that particular indus tr y.
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
conclus io ns about strategie s that will match or fit the enviro n me nt.
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
analys is , Life cycle Analys is, Portfo lio analys is and Value chain analys is.
Page | 16
Cha pte r 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, wo rking 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 deliver y, varie tie s of cuis ines and ease of payme nt.
 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 demonstratio n of the app
was shown to all the people from whom the questio nna ir e 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 paramete r s.
Page | 17
3.2 Research methodology
A re s e arch de s ign 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 questio ns.
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 obtaine d for the purpose you are us ing it for.
Page | 18
3.3 Data Analysis Techniques
Analys is 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
diffe re nt busine ss , science , and social scienc e 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
analyze d to answer questio ns , test hypothe se s or dispro ve theor ie s .
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 categor ie s 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 centra l point than belo w 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
Page | 19
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
variatio ns on the way it can be presente d.
3.4 Limitations of the project study
There are certain limita tio ns of doing this project especia lly compr is ing
limita t io ns for doing market research.
 Cos tly: Marketing research is a costly affa ir. It needs a lot of money to
conduct vario us market research activities . Huge fund s are requir ed to pay
salar ie s, prepare questio nna ir es, conduct surve ys etc.
 Time cons umi ng : Marketing research is a lengthy and time - co ns uming
process. This process invo lve s many impor ta n t steps. Genera lly it takes at
least 3- 6 months to solve a marketing problem. There fo re it can’t be used
in urge nt situatio ns .
 Limite d s cope : Marketing research solves many busines s related
proble ms but it can’t solve all busine ss problems. It cannot solve
proble ms related to inco me , expend iture , relatio ns hip etc. thus its scope is
limite d.
 Can’t pre dict cons ume r be havio r: Marketing research collec ts data
about consumer behavior . However , this data is not accurate because
consume r behavio r keeps on changin g and cannot be predicte d. It is also
very comple x as it is influe nce d by social, religio us, economic and other
factors.
 Non availability of re liable data: The quality of marketing research
report depends on the quality of collec ted data. However, it is very
diffic ult to find latest and trustwor th y data.
 Can be mis us e d: Sometimes , marketin g research is mis us ed by the
company. It is used to delay decis io n. It is used to support the views of a
partic ula r indiv id ua l.
Page | 20
Cha pte r 4 Findings
Since, every ind ivid ua l is alloca te d 3 localitie s each for doing market surve y
and unders ta nd the behavio r of the market. So the find in gs 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
find ings from the surve y.
Working individuals (WI):
 M e thod of placing food home de live ry orde r:
Way of Ordering
direct walk in
14%
direct call
34%
mobile app
38% online
14%
Fi g. 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%).
Page | 21
 Thus most of the people prefer using apps and then through direct
walk- ins.
 Le ve l of s atis faction with online food de live ry
Satisfaction Level
highly dissatisfied
dissatisfied
0%
5%
satisfied
43%
neutral
43%
highly
satisfied
9%
Fi g. 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 delive r y, 43% neutra l and 5 % dissatis fie d.
 Dissatisfaction may be due to the payments and difficulties with
some restaur a nts regardin g online payme nt confir ma tio n.
 Aware ne s s about Tiny Owl
Page | 22
Awareness
yes
38%
no
62%
Fi g. 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 regular ly.
 Fre que ncy of orde ring food home de live ry in a month
Frequency
15 to 20 20 to 25
5% 0%
10 to 15
38%
5 to 10
57%
Fi g. 4
 57% of WIs opted for 5- 10 times per month. 38% opted for 10- 15
times and another 5% for 15- 20 times.
Page | 23
 Numbe r of pe ople for whic h food is orde re d
No. of people
3 to 4 4+
5% 0%
1
38%
2 to 3
57%
Fi g. 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 Ente rtainme nt Pre fe re nce s
Entertainment
others
5%
travelling
19%
movie
52%
going out to eat
24%
Fi g. 6
Page | 24
 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 enterta inme nt options.
Students:
 M e thod of placing food home de live ry orde r
Way Of ordering Food
online
mobile app
26%
30%
direct call
direct walk in 18%
26%
Fi g. 7
 30% of students preferred mobile apps to order from restaurants,

26% preferred direct walk in to restaurant and 18% preferred direct
call.
Page | 25
highly dissatisfied
Satisfaction dissatisfied
0%
4% highly satisfied
7%
neutral
26%
satisfied
63%
Fi g. 8
 63% of students responded satisfied, 26% were neutral and 4% were

dissatis fied.
Awareness
yes
33%
no
67%
Fi g. 9
 67% of the students were unawar e about Tiny Owl app.
Page | 26
Frequeny
15 to 20 20 to 25
7% 0%
10 to 15
15%
5 to 10
78%
Fi g. 10
 78% of students opted for 5- 10 times a month, and 7% who order

food 15- 20 time s a month and 15% order 10- 15 times a month.
4+
No of people
0%
3 to 4
1
15%
41%
2 to 3
44%
Fi g. 11
Page | 27
 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.
Entertainment
others
4%
travelling
movie
22%
44%
going out to eat

30%
Fi g. 12
 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 enterta in me nt 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
surve y.
Page | 28
Way of ordering Food
mobile app online

27% 32%
direct walk in
18% direct call
23%
Fi g. 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.
Page | 29
highly
Satisfaction dissatisfied highly
dissatisfied 0% satisfied
9% 9%
neutral
36% satisfied
46%
Fi g. 14
online food delive r y, 36% neutra l and 9% dissatis fie d.
Page | 30
Awareness
yes
45%
no
55%
Frequency 20 to 25
15 to 20 0%
9%
10 to 15 5 to 10
36% 55%
Fi g. 15
 55% of WIs opted for 5- 10 times per month. 36% opted for 10- 15
Page | 31
No. of people
3 to 4 4+
9% 0%
1
41%
2 to 3
50%
Fi g. 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 almos t nobody orders for more than
4 people.
others Entertainment
5%
travelling movie
23% 36%
going out to eat

36%
Fi g. 17
Page | 32
prefer some other enterta inme n t options.
Students:
Way of ordering food

mobile app
10%
online
40%
direct walk in
35%
direct call
15%
Fi g. 18
 40% of students preferred online portals to order from restaurants,

call.
Page | 33
Satisfaction
highly
dissatisfied
dissatisfied 5%
highly satisfied
5%
10%
neutral
35% satisfied
45%
Fi g. 19
 45% of students responded satisfied, 35% were neutral and 10%

were dissatis fie d.
Awareness
yes
35%
no
65%
Fi g. 20
Page | 34
15 to 20
Frequency 20 to 25
0%
0%
10 to 15
35%
5 to 10
65%
Fi g. 21
 65% of students opted for 5- 10 times a month and 35% order 10- 15
times a month.
No. Of people
4+
5%
1
3 to 4 25%
25%
2 to 3
45%
Fi g. 22
Page | 35
self.
Entertainment
others
0%
travelling movie
20% 35%
going out to eat

45%
 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 enterta in me nt 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
surve y.
Page | 36
Way of ordering food

mobile app
9%
online
17%
direct call
direct walk in
26%
48%
Fi g. 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.
Page | 37
highly
dissatisfied
Satisfaction
highly satisfied
4%
dissatisfied 9%
9%
satisfied
neutral 39%
39%
Fi g. 24
online food delive r y, 39% neutra l and 9% dissatis fie d.
Awareness
yes
22%
no
78%
Fi g. 25
Page | 38
Frequency
20 to 25
15 to 20
0%
9%
10 to 15
26%
5 to 10
65%
Fi g. 26
 65% of WIs opted for 5- 10 times per month. 26% opted for 10 - 15
Page | 39
No. of people
4+
0%
3 to 4 1
22% 35%
2 to 3
43%
Fi g. 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.
Entertainment
others
4%
movie
35%
travelling
39%
going out to eat

22%
Fi g. 28
prefer some other enterta inme nt options.
Page | 40
Students:
 M e thod of placing food home de live ry orde r
mobile app Way of ordering food

6%
online
direct walk in 25%
25%
direct call
44%
Fi g. 29
 25% of students preferred online portals to order from restaurants,

call.
highly satisfied
highly dissatisfied Satisfaction 6%
6%
dissatisfied satisfied
6% 19%
neutral
63%
Fi g. 30
 63% of students responded neutral, 19% were satisfied and 12%

were dissatis fie d.
Page | 41
Awareness
yes
19%
no
81%
Fi g. 31
15 to 20
Frequency 20 to 25
0%
0%
10 to 15
13%
5 to 10
87%
Fi g. 32
Page | 42
 87% of students opted for 5- 10 times a month and 13% order 10- 15
times a month.
No. of people
4+
0%
3 to 4 1
13% 25%
2 to 3
62%
Fi g. 33

self.
Page | 43
Entertainment
others
0%
movie
25%
travelling
50%
going out to eat
25%
Fi g. 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
enterta inme nt options.
Page | 44
Cha pte r 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 delive r y patterns, delive r y 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 Analys is
Stre ngths
 It is the large st America n Chines e restaura n t 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- se r ve categor y.
 The chain was one of the earlie s t entrants into the supermar ke t arena.
 Strategically located in mall food courts and other non- traditional venues
includ ing airports , colle ge campuse s, and theme parks.
 It has a successful track record of making Asian cuisine accessible to the
masses.
 Strong follo wing among Asian, Hispanic , and Caucasia n diners .
 Levera ge d lovab le pandas in their name
Page | 45
We akne s s
 Restricted to one cuis ine thus restric ting its custome r base.
 Specialty ingre d ie nts used in Chinese food might be diffic ult to source and store .
 Restricted in a few geograp hies means lower brand recall.
 Price differ e nce s in menu and app prices.
Opport unitie s
 There is a large market leading to huge custome r base.

 Ventur in g into newer markets.
 Introduc ing more items on its menu .
 Untapped market as online food apps contrib u te only 7%
Thre ats
 Managing huge emplo ye e base can be an issue.

 Stiff competitio n from multi cuisine restaura nt.
 Presence of strong competitor s in the Chinese restaura nt segment .
 Threat of New entrants .
Market Share
1) They’ ve grown to become one of the larges t 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
amongs t 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
delive r y market, and propel us towards a leaders hip positio n in the market.
Page | 46
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 inter net 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- o n- mo n th 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
channe ls.
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.
Page | 47
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 numbe r of online food delive r y service s.
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 inves to rs includ ing Phenome n Venture s.
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 millio n 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
restaura nt 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
Page | 48
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 platfor m is 20% highe r 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 res taurants, and
if we see that a restaurant is not really performing- then we take it off from our
coverage . The most impor ta nt thing for us is consumer experie nce .
5.2 Zomato Analysis
SWOT Analysis
Stre ngths
 Users perceive Zomato as ‘Specialty product’ (Focused only on foods &

restaura nts ).
 High awareness – Top of the mind product.
 Globa l presence – 25 countr ies – 1.5 millio n listed restaura nts.
 Superio r techno lo gy and a strong workforce of over 1200 people.
 Asset less busine ss model.
 High fina nc ia l levera ge due to its busine s s model.
 Simp le & user frie nd ly inter fac e.
 Aggres s ive and Innovative marketing strategy.
 Strong brand recognitio n and has won severa l accolade s & award s.
We akne s s
 Competition from search engines & other similar apps means limite d
growth.
 Drastic growth means susceptib le to bad content
Page | 49
Opport unitie s
 Opportunity to expand to furthe r more countr ies .

 Increas in g inter ne t penetratio n & numb er of smartp ho ne users .
 Rapid techno lo gy develop me nt .
Thre ats
 Intens e competitio n.
 Lack of clear rules and regulations - Changes in government policy can
easily affect the busine ss model.
 Busine s s model can be easily imita ted 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

millio n in 2013 and 0.015 millio n in 2008.
 Yearly revenue of Zomato in 2008 was 0.06 crores which incre ased to 11.3
crores in 2013.
 Spread in 21 countr ie s worldwid e.
Page | 50
Success Factor
 First mover advanta ge

 Strong content platfo r m
 Effic ie nt emplo yee s
 Good rating mecha nis m and social platfor m
 Funding from experie nce d source
Strategy of Zomato
Zomato works with keen interest on various strategies to achieve their goal. It
include s
 Financ ia l strategy: To increa se their fund and revenue

 Marketing strategy: To tap their custome rs from across the globe
 Growth strategy: To grow continuously and increase their cus tomers and
page traffic
 Globalization strategy: To expand themselves across the whole globe as a
leading service provide r.
Marketing Strategy
 Featured and user frie nd ly website

 Globa l mobile app
 Focusing on digita l marketing channe ls for potentia l customer s
 Acquire the competitors: To be the largest resource in food supply market,
Zomato bought urban spoon for $52 million to enter US, Canada and
Austra lia
 Simp le r revie w and rating syste m
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
Page | 51
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 millio n.
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
millio n 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 sectio n every day, this s hould n’ t be too hard,”
“We will inve s t $50 million in the bus ine s s in India ove r the ne xt ye ar or
s o,” he continues. “This will be our fas te s t ramp up for any bus ine s s in any
ge ography e ve r.”
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 cus tome r e xpe rie nce on the te ch e nd, as the platform, the
de live ry and logis tics will be owne d by the re s taurants . ”
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
Page | 52
media, mobile and voice solutions that allow sellers to manage stores and
inte gr a te delive r y 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 futur e 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
Page | 53
5.3 Summary of all the competitors
Partic ula rs FoodPa nda /Tas ty Swiggy Zomato

khana/ Jus t Eat
Strengths Offers and coupon Timely delivery and Ultimate destination

discounts, Market share excellent service, for food includes table
across Bangalore, more than 150 bookings, home
Promotion for brand delive r y boys delivery, and discovery
awareness, recruiting of the restaur a nt.
delivery boys (12000 at
the end of the year
2015).
Weakness Payment delay to the Services are down at Home delivery begins
restaurants, no cash on peak time. in only one segment of
delivery on some their entir e market.
restaura nts.
Opportunities Customers order food via Customers order food Customers order food
app and online is via app and online is via app and online is
increa s in g. increa s in g. increa s in g.
Threats New entry New entry New entry
M arke t
Strate gy
Funds Raised $110 million in a Raised $16.5 million Raises $50 million in
fresh round of fund in additional funding funding led by existing
raising from rocket to make a play for the inves tor Info Edge
internet and other India n market.
inves tor s
Page | 54
Short term Increase restaurant Increase manpowe r New product line i.e., a
goal partners from 12000 to product which will
15000 at the end of allow the users to pay
October 2015 restaurant bill through
mobile applica tio n
Purchas e and
us age
Average The average value of Delivers over 70000 9000 delivery per day
purchas e each order ranges orders on a monthly all over India.
between Rs 500 to Rs basis.
550.
Usage Around 45- 48% of the 50% more orders Online ordering is more
transactions come from shifting from the when compared to
smartphones based app website to the app mobile app.
and the transaction size quick ly.
of this platform is 20%
more than on web.
Page | 55
5.4 Competitor Analysis Grid
FoodPa nda Swiggy Zomato

Compa ny info.
FoodPanda is one Swiggy is an Zomato wants to
stop destination early stage on- become a singula r
Descrip tio n for ordering a demand food platfo r m for
scrumptious meal delive r y startup discove r y,tab le
at your doorstep. delighting bookings ,r es ta ura nt
customer s in ordering
Banga lor e.
"Food Panda - Bigges t focus : Zomato the
Your One Shop “neve r let our ultima te
Purpose Stop For customer s stay destinatio n for all
Delic io us Food" hungr y” things food
Product and
Se rvice s
Online & Mobile Online & Mobile Online and mobile
platfo r m to platfo r m - Open platfo r m for
discove r and market place that discove r y of
Princ ip le product order from enables online restaura nts, table
nearby ordering from bookings , home
restaura nts. nearby delive r y and
restaura nts & payme nts.
picks up and
delive rs
Pre- orderin g No Pre- ordering No Pre- ordering
Pre- orderin g facility availab le facility facility availab le
facility availa b le. All
delive r ie s done
on demand
45- 60 min 35 - 45 minute s
(Delive r y fee is
Deliver y duratio n fully waived if it
takes longe r)
Determined by Standard delive r y

restaura nts charges ( 40rs -
indiv id ua lly. 70rs dependin g
Deliver y cost for on the distance /
Deliver y charges each restaura nt restaura nt
mentio ne d in the ordered from )
website .
11 am to 11 pm 11:30am -
Page | 56
Service Timings from Monday to 10:45pm from
Sunday. Monday to
Sunday
Positio ned as an Effic ie nt Provid in g a user
online food logis tics solutio n inter fa ce platfor m
delive r y platfor m (150+ delive r y to restaur a nts .
Product/S er v ice where more executive s ), Hence giving the
Positio ning offers , coupons seamle s s on- restaura nts the
and discounts are ground power to direct ,
availa b le for operatio ns and accept orders ,
customer s, powerful change menus,
compared to techno lo gy attract custome r s ,
competito rs . provide importa nt
info r ma tio n.
Targe t Audie nce

and M arke ting
Tech savvy Tech savvy Tech savvy youth,
youth, working youth, working working people,
people, working people, working working couples in
Prima r y Target couples in the couples in the the age group of
Market age group of 18- age group of 18- 18- 40, people
40, people 40, people hesita nt to cook
hesita nt to cook hesita nt to cook and go out to have
and go out to and go out to food, who need
have food, who have food, who food at their door
need food at need food at steps on demand.
their door steps their door steps
on demand. on demand.
Attractive offers Area focused Currently they are

whic h is sales teams and focus ing on
appealing to the online platfor ms. segme nts such as
customer s. Using Online food
the carouse l ordering,
Strategy used to forma t to restaura nt booking,
market their promote its app, subscr ip tio n- b as ed
product/se r vic es foodpand a servic es and billin g
increa sed click- inside of
through rates by restaura nts
180% and
reduced their
cost per insta ll
by 39%.
Growth by Slow and Depende nt on
Page | 57
acquir ing simila r measur ed locality brand name, word
start- ups like wise expans io n of mouth through
Growth Just Eat, with strength of its network of
tastyk ha na etc logis tics team in users.
the launc h phase
to create the
right firs t
impre ss io n.
Social me dia
de tails
1.4 millio n likes 3300+ likes
Facebook
11.3K follo wer s, 312 follo wer s,

Twitter 13.2K tweets, 520 tweets, 126
2760 favor ite s favor ite s
5400+ follo we r s 270+ follo we rs ,

Linked in 691 emplo yee s 52 emplo ye es
liste d, Uses liste d
Linked I n mainly
to brand their
CSR initia tives .
Instagra m- 1200+ Instagra m- 14

Others follo we rs , 280+ follo we rs , no
posts. posts
No. of vis itors 66,583 daily, 17,949 per day, 366,353 daily,
1,997,490 538,470 per 10,990,590
monthly month monthly
M arke ting tv ads, online online ads, logos online marketing,

Campaig ns pop ups, and sticker in g sticker ing at
sticker ing at restaura nts restaura nts, ads
restaura nts
Sale s Promot io n 30% off, 300 off Rs. 75 off on any combo offers
on 450, 50% off, order
buy 1 get 1
Us e r Locality search Locality search Locality search

inte rface ( we bs ite ) option. Chat option in the option vis ib le .
option availa b le. center. Chat Collec tio n and
Page | 58
Login option featur e availa b le. categor ies of
availa b le. FAQ Login option cuis ine on right.
and Polic ie s availa b le Specific meal
availa b le. search on left.
Us e r inte rface Applica tio n Applica tio n Applica tio n

(applic at io n) availa b le. availa b le. Food availa b le.
Limited ordering prima r y. Attractive . Food
restaura nts No proper list of ordering not
availa b le. restaura nt sorted prima r y. Provid ing
as shows restaura nt and
restaura nts not cuis ine info r ma tio n
present in the prima r y target. Not
area. user frie nd ly.
M inimum de live ry yes depending on yes depending on yes depending on

amount restaura nt restaura nt. Rs 30 restaura nt
delive r y charge
for order below
150
Fe ature s of mobile
app
Mode of placing Website, mobile Website, mobile Website, mobile app

orders app app
Operating platfor ms Android, iOS, Android Android, iOS,

Windows Windows
No. of 1 million+ 5000+ 10000+

downloa ds ( Andr o id)
Minimu m no. of 10+ Less than 10 Less than 10

steps invo lve d
(From search to
order placeme n t)
Info about selected Address, P ayment No info/ reviews, Restaur a nt

restaura nt give n methods, Reviews Delivery time Locatio n
and location in indicated.
map.
Revie ws about Given while Not given Not given

restaura nt give n listing restaurants
and in the info
Page | 59
Cha pte r 6 Inferences and Summary of Findings
6.1 Inferences from Electronic city

6.1.1 About Worki ng Indi vi dual s
 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 convenie nc e in ordering food.
 From level of satisfaction we can understand that online food delivery system
is promine nt and running success ful ly in Electro n ic city.
 Statistics about frequency of ordering food home delivery indicates that there
is decent numbe r of food home deliver y orders in Electro n ic city.
 Marketing activities with emphasis on the combo offers in the app will be
fruitf ul in Electro n ic 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 enterta inme nt prefere nc es of WIs.
6.1.2 About Students
 They prefer dinin g with frie nds and going for movie s 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
enterta inme nt prefere nc es inc lud e Movie and going out for eating.
Page | 60
6.2 Inferences from BTM Layout
 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
convenie nc e in ordering food.
is promine nt and running success fully in BTM Layout.
is decent numbe r of food home deliver y orders in BTM Layout.
 Marketing activities with emphasis on the combo offers in the app will be
fruitf ul in BTM Layout.
 They prefer dinin g with frie nds in weekends.

 Majority were students have placed a food home delivery through online,
hence they chose Satisfied option.
WIs, indicates that decent number of orders can be generated from BTM
Layout.
attractive.
 North Indian was the preferred cuisine by most of the students. Major
enterta inme nt prefere nc es inc lud e Movie and going out for eating.
Page | 61
6.3 Inferences from Jayanagar
 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
convenie nc e in ordering food by going to restaura nts directly.
is not so promine n t in Jayana gar .
is less numb er of food home delive r y orders in Jayana gar .
 Marketing activities with emphasis on the combo o ffers in the app will be
fruitf ul in Jayana ga r.
 They prefer trave lling to their respective homes or with frie nd s in weekends.
 Majority of students have placed a food home delivery through direct call,
hence they chose Neutral option.
WIs, indicates that number of orders that are generated from Jayanagar ar e
very less
attractive.
Page | 62
6.4 Inferences from Restaurants
6.4.1 From El ectroni c ci ty
While inter vie win g with the restaur a nt mana ge rs /o wne rs of 12 restaura nts from
Electr o nic city regio n revealed the follo wing.
 On an average, they are getting 10 - 15 home delivery orders per day from
electro nic city.
 The number of walk- in customers per day in these restaurants averages from
100- 200 customer s /da y.
 FoodPanda and Zomato are the apps they are tied up with.
 The areas from which they get maximum number of home delivery orders are
Electr o nic city phase 1, phase 2, B- schoo ls 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 colle ge s and etc.
6.4.2 From BTM Layout
While interviewing with the restaurant managers/owners of 10 restaurants from

BTM Layout regio n reveale d the follo wing.
 On an average, they are getting 5- 10 home delivery orders per day from
BTM Layout.
from areas within 3km radius.
weekends.
Page | 63
 Also since in BTM Layout more students and companie s are there, they get
bulk order from colle ge s and etc.
6.4.3 From Jayanag ar
While interviewing with the restaurant managers/owners of 5 restaurants from

Jayana ga r regio n revealed the followin g.
 On an average, they are getting 5- 10 home delivery orders per day from
Jayana ga r.
from areas within 3km radius.
weekends.
 Also since in Jayanagar more residential societies and companies are there,
they get bulk order from homes and etc.
Page | 64
Chapter 7 Recommendatio ns
 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
intere s t in students towards the app.
 Marketing activities in PGs and colleges will be effective in catching

attentio n of more students and working indiv id ua ls.
 Marketing activities in residential areas and apartments will be effective

in catching attentio n of more people and working ind ivid ua ls .
 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 varie ty of food at reasonab le rates.
Page | 65
Chapter 8 Conclusio n
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,
Chines e, Thai, Arabic (Mughla i & Hyderabad i) .
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 fruitfu l for the expans io n and establis hme nt of these companie s.
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 gradua lly.
Page | 66
Bibliography
REFERENCES
 http://www.pc e. uw.ed u /co ur se s /d ata- a na lys is- method s. html
 http://www.r es ta ur a ntind ia. in/a r tic le /gro wth/e xp a ns io n/O nline - foo d-
delive r y- s ee s- a- bo o m.a1 37 /
 http://b lo g. zo mato. co m/po s t/943 428 698 76 /three - p ro b le ms- we- a r e- tr ying-
to- solve- a t- zo ma to
 http://yo ur s to r y. co m/20 15 /02 /zo ma to - a n no u nce s- o nline- foo d- or de r in g-
india/
 http://www. fina nc ia le xpr es s. co m/a r tic le /c o mpa nies /foo dpa nd a - ra ise s- 110-
mn- fro m- roc ke t- inte r ne t- r o hit- c hadd a- sa ys- ta r getting- 150 00- r es ta ura nts-
across- ind ia /5 321 8 /
 https ://www. tinyo wl.c o m/
 http://www. hun gr yfo re ve r.c o m/s to r y- mu mba i- ba se d- fo od- o rd er ing- app-
tinyowl/
Page | 67
APPENDICIES
APPENDIX I
Questionnaire for customers

Q1. How do you order your food?
a. Direct call to restaura nt
b. Online portal.
c. Mobile applica tio n
d. Direct walk in.
Q2. Are you satis fied with ordering online?

a. Highly satis fied
b. Satisfied
c. Neutral
d. Dissatis f ie d
e. Highly dissatis fied.
Q3. Are you aware about TinyO wl?

a. Yes
b. No
Q4. Are you intere sted in using this app?

a. Yes
b. No.
Q5. Occupatio n?
a. Student
b. Working individ ua ls
c. Working marrie d couples .
d. Home maker.
Page | 68
Q6. What are your famo us enterta in me nt prefere nce s?
a. Movie
b. Going out for eating
c. Trave llin g
d. Others
Q7. No. of times you order home delive r y in a month?

a. 5- 10 times
b. 10- 15 times
c. 15- 20 time s.
d. 20- 25 time s.
Q8 what are your preferr ed Cuis ine s?
Q9 For how many people you usually order food?

a. 1
b. 2- 3
c. 3- 4
d. 4+
Q10. Most popular restaur a nt you prefer?
Page | 69
APPENDIX II
Questionnaire for Restaurant Owners

Name of Re s taurant:
Q1. No. of orders per day for home delive r y?

a. 100- 250
b. 250- 400
c. 400- 550
d. 550 and above
Q2. No. of walk- in custome r s 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 applic a tio n 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 whic h locatio n you get the most numbe r of orders?
Page | 70
Q7. Any offers /d isco u nts give n to custome r s by you?
Q8. Which portal do you prefer the most?

a. Foodpanda
b. Zomato
c. TinyOwl.
d. Swiggy
Q9. Peak hours for home deliver y?

a. 12- 2 pm
b. 2- 3 pm
c. 7- 9 pm
d. 9- 11 pm
Q10. Commo n Issues faced due to home deliver y?
Page | 71

Summer Internshi P Project Report: III Semester MBA

Uploaded by

Document Information

Original Title

Copyright

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Summer Internshi P Project Report: III Semester MBA

Uploaded by

Copyright:

Summer Internshi p Project Report

Market Research and Competitor Analysi s of Online Food App

requir e me nts of III Semester MBA examinatio ns – 2015

ISBR BUSINESS School

Exec utive S umma r y ............................................................................................1

1.1 Introduction about the sector

o Fully integrated: Those who process food and delivers (Dominos,

Reasons for growth in online food deliver y indus tr y:

o Increase in disposable income and deeper internet penetration of

Future of the business

 Detects locatio n of app user automa tic a lly.

TinyOwl would begin charging restaurants 10 - 20 percent commission per

Marketing campaign #Anythingforfood launched as a part of their pan- India

1.4 Features of the App

2.1 Market Research

2.2 Marketing Research Procedure

Stage-1 Research Purpose:-

Research objectives have three essential parts.

Stage-3 Estimating the Value of Research informatio n: -

Stage-4 Research Design

Qualitative and Quantitative Research: -

Stage-5 Data Collection

Stage-6 Data Analysi s

Stage-7 Reporting Results and Presentation

2.3 Sampling Design

Simple Random Sampling

Steps in Questio nna ire Design:-

 Consider research objectives .

 Review earlier questionnaires/scales or Review earlier

 Sequencing the questions –background variables first, introduce

 Methods for coding the data

 Cultura l and gender appropria te ne ss .

 Analyze the responses to the pilot survey (are some response

 If there are major changes required it is best to then do another

 The responses are then analysed in terms of the researcher’s aims

 Questionnaires are useful tools if properly designed and administered and

3.1 Research objectives

 Identifying the target audience: - The main objective of this

Types of Data Collection Methods

Techniques for analyzing Quantitative data

3.4 Limitations of the project study

4.1 Findings of electronic city

Electronic city, belonging to south Bangalore, is predominantly an IT area and

 M e thod of placing food home de live ry orde r:

 Majority of the WIs (38%) prefer to order through mobile apps

 Le ve l of s atis faction with online food de live ry

 Aware ne s s about Tiny Owl

 Fre que ncy of orde ring food home de live ry in a month

 Famous Ente rtainme nt Pre fe re nce s

 M e thod of placing food home de live ry orde r

Way Of ordering Food

 30% of students preferred mobile apps to order from restaurants,

 63% of students responded satisfied, 26% were neutral and 4% were

 Aware ne s s about Tiny Owl

 67% of the students were unawar e about Tiny Owl app.

 78% of students opted for 5- 10 times a month, and 7% who order

 Numbe r of pe ople for whic h food is orde re d

 Famous Ente rtainme nt Pre fe re nce s

going out to eat

4.2 Findings of BTM Layout

 M e thod of placing food home de live ry orde r:

Way of ordering Food

mobile app online

 Aware ne s s about Tiny Owl

 Fre que ncy of orde ring food home de live ry in a month

 Famous Ente rtainme nt Pre fe re nce s