swiggy vs zomato

Case Study 2021 : Who does it better – Swiggy vs Zomato?

With the pandemic long way from being over, food delivery systems have been under the coverage of work that services to cater to their customers. Two of the largest food delivery platforms are Swiggy and Zomato. Now their growth has been in high and low standardized profits in the past decade. When it comes to marketing strategies, online growth, and revenue generation, we see a high-end competing structure between these two start-ups. Other online food delivery companies such as UberEats and Foodpanda have been in the play for quite a few years but haven’t been close to being successful compared to these brands. 

These two brands have been seen to be one of the biggest competing businesses in India as of this year. This including their social media presence and user persona generated towards the audience. 

Now, what stands out with the development of these brands, and how have their digital marketing structures been comparatively successful enough to keep customer loyalty intact?

In the following case study, we decipher the different formats of structure that is seemed to follow with these two nationwide known brands and how their brand structures have had an impact on society.  

Introduction to the brands. 

Case Study I : Swiggy

Timeline of Swiggy
Timeline of Swiggy

Swiggy, without a blink, is the largest food delivery platform in India. Headquartered in Bengaluru, India, and launched in 2014 by founders Nandan Reddy, Sriharsha Majety, and Rahul Jaimini, Swiggy was first designed to be a courier and shipping service website called Bundl. Now partnered up with Burger King, Google Local Guide, Indifi Technologies, Soxedo, and even ICICI Bank, Swiggy has created a brand persona for the growth of their nature of services. 

Acquiring a business model of B2B, B2C, Swiggy has had a logistically extensive network that is in constant service with their customers. The three main revenue streams that Swiggy attests to are Advertising, Delivery fees and the commission acquired.

The company has styled more into the economic-based factors, delivery of groceries and medicines, which is comparatively a very different style than what the competing company, Zomato has taken forward with. Then again, Swiggy is supported by one of the most reputable investors in the industry. 

They adopted several fundamental rules to be successful, such as delivering food to clients on time and having no minimum order requirement. Which also created in them having a high return on investment and created a positive shift in the way food was delivered to consumers. Swiggy also charges clients a modest delivery fee for items that are less than 200 rupees in most regions.

Swiggy Stores also sees tremendous potential in the coming year as it seeks to improve its delivery and logistics capabilities to compete with Grofers and Amazon.

Swiggy has secured $75.5 million in investment from Apoletto, Norwest Venture, Harmony Venture Partners, Accel Partners, Bessemer Venture Partners, SAIF Partners, and RB Investments, and many more.

Swiggy promotes its services and brand through a lot of online and offline campaigns. Many online campaigns are prominently denoted towards social media platforms such as Instagram, Twitter, and Facebook. Many famously run online campaigns include #DiwaliGharAayi, #WhatsInAName, Swiggy Karo, Phir Jo Chahe Karo!, and Swiggy Stories. The social media hold that they have do not just go into campaigning their advertisements but also take in customer complaints and feedback. 

Case Study : Swiggy - #WhatsInAName Campaign
Swiggy’s #WhatsInAName Campaign

Case Study II : Zomato

Zomato stands as the second-largest food delivery platform in India. The platform was originally termed Foodiebay, founded in 2008 by Deepinder Goyal and Pankaj Chaddah. In November 2010, the name of the company was changed from Foodiebay to Zomato to broaden its appeal.

Unlike its competitor, Zomato has its branches wide open to 24 countries and 10,000 cities with its main headquarters in Gurugram, Harayana in India. Some of these countries include Dubai, Singapore, UK, South Africa, Canada, the USA, New Zealand, Sri Lanka, and more. 

Zomato has securely raised $250 million in investment from investors such as D1 Capital, Tiger Global, Luxor, Temasek, Kora, Fidelity (FMR), Baillie Gifford, and Ant Financial.

Restaurants featured on the website launched a #logout campaign, accusing the firm of eroding their profit margins with services like Infinity Dining and Zomato Gold, which offered customers steep discounts.

The revenue streams that Zomato focuses on are Advertising, Ticket Sales from events, Delivery charges and Commission, Subscription programs (such as Zomato Gold), and Consulting. The company follows the model of B2B as well as B2C like its competitor. 

The company has spent a lot of money on SEO and has worked hard to enhance its UI and make it more user-friendly. 

They have also been managing social media-based campaigns on platforms such as Facebook, Pinterest, Twitter, and Instagram. In fact, Zomato’s Instagram reach is a lot more higher and efficient compared to Swiggy’s as the campaigns they conduct are more audience engaging within helping of online competitions and more. 

Some famous online Zomato includes #RideToFame, Zomato Premier League, On-Time or Free, and many other social media campaigns. The prominence of their campaigns runs through these social media platforms using posts and short videos rather than catching a better reach on their advertisements on YouTube.

#RideToFame Campaign by Zomato
Zomato’s #RideToFame Campaign

Comparitive Analysis – Swiggy vs Zomato

After analyzing both the companies individually, we’ll have a comparative study of how Swiggy and Zomato stand in opposing terms and also their similarities. 

Analysis between Swiggy and Zomato
Swiggy vs Zomato

Revenue

As of 2020, Swiggy has a total INR revenue of 27.76 billion and Zomato has a total INR revenue of 24.86 billion. The two firms got off to a good start, with combined monthly orders surpassing 50 million dollars and both companies’ revenues increasing. Swiggy has a far greater number of daily orders than Zomato, with approximately 1.5 million compared to 1.2 million. To fulfill orders that often cost a few hundred dollars, aggregators must invest much in technology and labor. You’ll also need to serve as many clients as possible for the company model to be financially sustainable.

Zomato boasts of a wider database, more users, and restaurants featured on their websites, a table reservation feature, and a global reach. Swiggy’s prominent USP is delivery on time which Zomato may not be able to focus upon as they also depend on the restaurant’s logistics and third-party services. 

Target Audience

The target audience of both the companies cater to a similarly different form of audience. The firms have a key demographic of age 18-35. The main audience that Swiggy caters to is those who prefer an order-in whether it is food, groceries, medicines, etc. Zomato has that feature prominently as well but also compasses in with those customers who want to dine out. Their Zomato Gold program offers both services to be enlisted.

Search Engine Optimisation

Along with the different Search Engine Optimisation techniques entailed into their specific websites, Swiggy’s website features a meta tag that incorporates their core keywords such as “food,” “online,” “food delivery,” and “order.” Whereas, food names, restaurant names, and phrases like “order food online in Mumbai” are examples of keywords used by Zomato. 

Social Media Presence

The reach that each firm obtains from social media platforms also differs in higher stances. On Instagram, Zomato has a higher reach with the audience than Swiggy because of their contributing style of advertising campaigns of posts that cater to their required target audience. On YouTube, Swiggy has a significantly higher reach and most of the audience generated into their videos are from advertisements that are generally towards a relatable, comical storyline. 

User Experience / User Interface

According to studies, quite a few users have stated that the more of a reason to use Swiggy is because of their UI structure. Whether it is the viewability of the content, accessibility of search fields and restaurants, how much more time-consuming, etc. Even on the application, Zomato shows more prominence to follow with restaurant reviews, ratings or to order whereas Swiggy has their application centered around eco-friendly, delivery of grocers and medicines, etc. As simple as it is, cutting-edge technology makes the entire process even easier, resulting in a better user experience.

Conclusion 

Although these competing online platforms have had their sets of trends and controversies along the way, the people of the country are now so bound and dependant on these applications. It mainly caters to the youth that is dependant on technologies for most services. The key target audience that Swiggy and Zomato cater to are taken into account because of their growing social media presence as well. This is applicable as most of the revenue generated by these companies comes from paid advertising on applications or webpages run by using Google Adwords. 

The Digital Marketing strategies adopted by these companies are rather followed by current trends which gives an edge in perceiving their content strategies. Although these companies provide the same form of service, the ideas put across by both companies are vividly different from the other. Zomato and Swiggy have been fighting for dominance in the sector by providing clients with infinite discounts and deals, as well as executing unending marketing and PR campaigns.

Frequently Asked Questions (FAQs)

What makes Swiggy different from Zomato?

Swiggy and Zomato come under the category of online food delivery platforms. Although they provide the same, main service, the subtopics of services under the main service are said widely different. Whether be it how their User Interface looks, the different social media platforms they prioritize to advertise, how a generation of revenue works, or how Zomato shows more prominence to follow with restaurant reviews, ratings or to order whereas Swiggy has their application centered around eco-friendly, delivery of grocers and medicines, etc. 

Why did Uber Eats fail in India?

Uber Eats was relatively newer compared to Swiggy and Zomato. It was launched in 2018 and was then acquired by Zomato. The frequency of advertisements and campaigns launched is distinctly really far-fetched with their timelines. That and revenue generation to then cutting back losses fell through for this brand. The celebrity endorsement used to advertising aside, the brand had no reach compared to its competitors, as well. 

Which is better Zomato or Swiggy?

From an unbiased point of view, Swiggy has a lot more of the targeted demographic than the other. When it comes to how their individual mobile application has helped the users to mode it easy, the prior has a benefit there as well. Swiggy is developmentally a lot more successful with their services than Zomato. 

Importance Of Having a Business Website in 2021

The Importance of Having a Business Website in 2021

“If your business is not on the internet, then your business will be out of business.”

Bill Gates, Microsoft

Have you ever pondered about the importance of having a business website? Are you one among the millions of aspire-to-be entrepreneurs sitting at home slacking away time and building castles of dreams? Oh, we know you. Read on. Or are you a seasoned player of this ever so dynamic business world mooting upon whether you should take up your trade online? Ah! Hello. We know you too. We understand. And we know that you are chalking up rational plans and ideating like crazy building pitches to squeeze capital out of those investors. You are working hard, obviously.

But, where is your business? We are stuck here at home and we can’t see it. And we are guessing your investors can’t too. But, of course, we know it’s there, unlike those tall nosed hot-shot venture capitalists. It’s there in your head. It’s also there in your storehouse or office maybe. But how will you show it to your loving investor? And how will you show it to your even more loving client?! They are sitting at home, dear tycoon. And since you can’t get into their houses, get into their phones. And laptops. Build a website! Tell them, “Look, I am changing the world. Flock hither.”

The importance of having a business website is most urgent in this post 2020 pandemic world. The more virtual your presence, the better your visibility and hence, revenue. You must be thinking, “No thanks. I can do good business with calls and emails. Why should I have a website?”

We have researched. Four solid reasons with proof down here.

Reach

Sophia from San Francisco is broke. She is a security guard who loves shoplifting. So one day, Sophia decides to sell the items she had stolen. She knows a bit of photography and using these skills she does manage to sell all of them on Ebay. Sophia begins to like her work. So now, instead of stealing, she buys vintage items real cheap from thrift stores and sells them on her website. The name of her website is Nasty Gal. They generated 100 million dollars in sales. Sophia is none other than Sophia Amoruso. Find her in ‘Forbes 30 under 30’.

Our point – Imagine Sophia never made a website. Or sold on eBay. Where would she be now? Still pinching things, maybe. Her website helped her advertise her goods well and churn out profits year on year. She found people who were willing to pay for something that would be perceived as useless by most. Why? Because her website was visible to a few people who loved her niche. She had reach. That is the importance of having a website.

Think of a trader in India who sells pashmina shawls. He takes his business online and builds a website. His company in India is not doing well because his shawls are too costly for a country with a significant portion of its population below the poverty line. Meanwhile, he gets to know that people in Britain are paying hefty prices for low grade pashmina wool shawls. So he gets hold of an e-commerce executive and asks him to optimize the site using SEO tools so that his fare lists higher on search engines in Britain. And bam! The price of his company stocks triples in two months.

All credits to clever website optimization.

First impression

“The technology you use impresses no one. The experience you create with it is everything.”

Sean Gerety

Let’s assume you sell plants. And you are switching between tabs on your phone. Whatsapp. Gmail. Calls. You are sending them a few good pictures you took of your product. You then call customers after lunch and market it using all kinds of convincing tactics you can think of at that moment, with a full stomach and a drowsy disposition. In the end, the customer haggles, and bargains and this push and pull ends with him just disconnecting the call. He feels irritated. You too? Not fair.

What if you pick up a website maintenance and design service or hire a website designer and build a gorgeous web display page of your products. You can think of all the benefits the product entails one by one as you keep developing the page with time – and add them. You can fix a reasonable price and mention why your product is priced thus without having to go through the strain of repeating it every time you deal with a customer. Your sleek and elaborate page will make a visitor feel happy. Remember that latest Apple ad? Been through their website? We have. Bet our money, take away their website marketing, and they are a losing side. Sales will plummet.

It’s about how you make them feel, dear reader. A website makes this task seamless and easy. Do you now understand the importance of having a business website?

Automation

Why do we use robots? Because we want to perform 10 tasks instead of 5 in the stipulated time. Consider a website as your own robot assistant – an ace online business manager. Automated emails for addressing grievances. AI chatbots 24/7 to help the surfer.

If your website was a man, he would be talking like this. “Oh, so you want striped denim, look here they are. I am sorry you can’t find yellow scarves, but have a look at these orange ones – they are cheap too. It’s okay if this gown doesn’t fit you right – return it back, we will give back your money; is there anything else I can do for you, sir/madam?” No wonder you end up browsing clothes on Myntra for hours, even when you do not plan on buying. That’s because these pages are optimized rigorously to suit customer needs. That’s a common attribute of every e-commerce giant in the world. They are hospitable and customer friendly to an infinite degree. Infinite since they are not prone to exhaustion like humans. Which makes us think, websites are better than waiters and hotel staff, no?

And if you are without a website, you have to do all of this by yourself. Or put up an ad to hire a guy who will do this job. But, hey. Where does human efficiency stand when compared with machines?

Credibility

A study suggests that customers attach greater trust to a brand with a website than one with just a few social media handles. Let’s take an example.

Baby succulents are in high demand now. Even though gardeners all over India are well aware of the fact that India’s tropical climate is not amiable to such plants, the rage over these tiny green cacti hardly dies down. An experienced plant lover in some corner of India is getting swayed too. He scrolls around Instagram and Pinterest, marveling over them. Finally, he decides that he will buy some. He remembers seeing shops and dealers on Instagram. Their plants indeed seemed great. But on second thought, he decides to check out some plant merchants with websites. He ends up on Trustbasket. He visits Allthatgrows. He contemplates. The website merchants have a comprehensive planting and care guide, good return policies, and reviews from verified customers. Their plants are lab certified too. So he zeroes down on Trustbasket and buys from there. One can clearly figure out the importance of having a website.

Our point – Social media merchants stand nowhere in the playing field when we take credibility into account. A website will always garner greater trust. Think about it. Given a choice to buy shoes online, which merchant would you choose? A random I love shoes merchant page on insta or a Bata’s website page?

Did the message get across?

Summing it up, a website gives you hands that can reach as far as Antarctica, ears that can hear hundreds of queries and complaints in a second and a mouth that only spells sweet answers. In addition, you get membership in the customer trust club for free and also will reek profits like Warren Buffet. We hope that by this time, you are typing down, “How to build an e-commerce website from scratch?” in another tab on google. If you are a hard nut and none of our reasoning made harmony with you, then we accept that too. Its a free world. Opinions are meant to differ. But please look at what is happening now. A roaring pandemic fails to recede. Gone are the days when a website was one of the ways to carry on business. That was in the near past. Right now, the importance of having a website lies in the fact that it is the only way to carry on business.

3 Simple Steps for a Professional Looking Business Website

Related Frequently Asked Questions(FAQs)

What is the role of a business website?

Any domain of commerce requires you to market your brand and products in the most efficient and cost effective way. The importance of having a website in business rests solely on the fact that it makes networking, advertising and client management easier with very little investment as compared to other methods of engagement.

How to make a website?

That’s super easy. Think of a domain name relevant to your business. Register it. Find an internet service provider to host your website. Design and customize away.

Can I make a website for free?

Yes! Many websites like Google offers free web design services and courses. Your website will function under Google’s domain. You could do all the learning by taking up courses and workshops for free from a plethora of sites and Youtube channels other than Google and become real savvy at this. Who knows you might even like it so much that you start taking money for it. It’s very lucrative.

How effective is a website for small businesses?

Nascent businesses face unique challenges – capital deficit, low credibility, small working group or inexperience. A website can help in each of these fields. You can look more delectable to funders, build a good client rapport, hire good interns by putting up ads and do much more.

What is the best website for a small business?

The importance of having a website is even more in case of small businesses. Go for the easy-on-the-pocket ones. Wix. Gator. GoDaddy. WordPress. Their processes and tools for website maintenance are user friendly and can be understood by a layman. In case you want to make it more personalized, look for paid website designer services online.

How do I make my website popular?

Hire a digital marketer. Or if you have the time and interest to do it yourself, high five! Google, Coursera, Udemy, Gryffindor Academy, and many other sites offer you certified Digital Marketing courses.