This document provides information about Group 5's project on the consumer services industry. It discusses the origin of the industry when division of labor became commonplace. It then summarizes key events in the history of consumer services such as the telephone's invention and the rise of online help desks. The document also gives an overview of Zomato, including its origin and evolution, product portfolio, and PESTEL analysis of the online food industry and of Zomato. It analyzes Zomato's growth, profitability, business affiliations, strategies, and performance over time.
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Zomato Presentation for Strategic Management
1. GROUP-5
• SHASHWAT RASTOGI
19DM193
• RAJAT PANDEY
19DM154
• SAHAJPREET KAUR
19DM172
• PARIMA CHOUDHRY
19DM132
• SHUBHAM SHARMA
19DM210
• V M SAI CHARAN
REDDY 19DM232
• SHUBHAM SHARMA
19DM249
• ROHIT
BANSAL(GROUP-10)
19DM165
2. INDUSTRY: Consumer services
ORIGIN OF THIS INDUSTRY:
Consumer services are the variety of services provided to
consumers of a product by the field that creates, markets, or
provides the product.
Consumer services began to boom when division of labor became
commonplace. Being the assigning of different parts of a
manufacturing procedure or tasks to different people in order to
improve efficiency and productivity
Division of labor limited the breadth of people's knowledge,
which in turn caused the need for services.
3. Some of the major history highlights of this industry :
1876: Alexander Graham Bell patents the electric telephone. Customer service takes a
leap forward as customers can avoid having to travel long distances for product
information or to arrange for repairs.
1980s: Database software, which would evolve into Customer Relationship
Management (CRM) software, evolves to be used in customer service.
Early 1990s: People begin to use the Internet. You may have heard of it.
1998: Live Person, now the largest live chat company, launches their service.
Mid-2000s The rise of the online help desk.
2009: OLARK creates the first live chat that stays on-page, eliminating the need for the
annoying "pop-out." Live chat brings back the immediacy of human interaction to the
internet.
2017: The chat world becomes differentiated by Live messaging and Live chat and we
could finally order food online.
6. Public Health Polices
Prohibition on some food items
Low Minimum Wage
High disposable income
Increasing labour cost
Health consciousness
Dietary restrictions
Technology upgradation
Self- checkout screens
Impact of meat
Safety standards
Health and safety laws
PESTEL ANALYSIS- Online Food Industry
7. Digital India Campaign
Govt. Support on FDI
Changes in Income level
Increasing employment
Changing food habits
Change in Lifestyle and Habits
Technology awareness
Concept of Drone Delivery
Increase use of technology for
Weather condition
Food safety act
No laws for online food delivery companies
PESTEL ANALYSIS- ZOMATO
9. GROWTH (PAST 3 YEARS)
• India’s online food business segment reached as high as USD 750
million in 2017 to USD 1580 million in 2019
• Registered a YOY revenue growth of 150% (2018 and 2019)
• Zomato is the leader with sales revenue of approximately INR 3.33
billion, followed by Swiggy at INR 1.33 billion and Foodpanda at INR
0.62 billion as of 2018.
• With being present only in metropolitan cities in 2016 to currently
being set up in more than 500 cities and towns
• 15 million customers, 640 million annual orders, and $2-billion gross
merchandise value
10. PROFITABILITY(PAST 3 YEARS)
Though there is huge potential for growth, large number of players are in
losses due to high maintenance costs, logistics, low commissions by
restaurants
Zomato reported a loss of Rs 1,001 crore where as Swiggy has a loss of 2363
crore till FY 2018
On an average the losses mounted to a maximum of 5 times from the starting
the operations to till date.
But investors has shown huge interest in investing in food delivery apps with
almost investing over USD 500 million .
Many players are reducing discounts in order to become profitable
Zomato and Swiggy are trying to become more profitable by investing in cloud
kitchens and also reducing the cash burn rates.
12. BUSINESS STRATEGY
Financial strategy: To increase their fund and revenue
Marketing strategy: To tap their customers from across the globe
Growth strategy: To grow continuously and increase their
customers and page traffic
Globalization strategy: To expand themselves across the whole
globe as a leading service provider
13. PERFORMANCE
Number of listed restaurants: in 2008 it was 4000 restaurants
which increase to 94000 in 2013, 384,100 in Q1 of 2015, and
currently 1.5 million in Q1 2020.
Monthly visitors of Zomato increases to 24.65 million in 2019
which was 11 million in 2013 and 0.015 million in 2008.
Yearly revenue of Zomato for FY19 was $206 mn compared to
$68 mn in 2018 ( ~ 3x growth)
Spread in 24 countries across 10000+ cities worldwide.