A

PROJECT REPORT

ON

FOODNAMDU

By

Sirjana Thapa Magar

Nita Ghimire

Inshu Pokharel

Priyanka Sharma

Puja Dhital

Pragati Aryal

Submitted to:

Mr. Mahesh Dahal

Department of Computer Science

Padma Kanya Multiple Campus

In partial fulfillment of the requirements for the Course E-commerce

Bagbazar, Kathmandu

23rd March, 2021

i
 Acknowledgements

We would like to express our special thanks of gratitude to our teacher Mr. Mahesh Dahal for
providing us the wonderful opportunity to do this project of E-commerce on
“Foodmandu”.We express our gratitude to our teacher who helped us to complete this project
successfully.

We would like take a moment to give a special thanks to Foodmandu team who provided us
with their valuable time and also gave us essential information to complete our project.

We would also like to thank everyone who supported us due to which we completed this
project effectively and efficiently. They gave us insightful comments, which helped us a lot to
prepare this project. We will always be grateful to them.

The study and research conducted throughout the process has brainstormed us regarding
various fields which we believe would be insightful in our upcoming journey.

ii
 Abstract

How did things start? An odd question, yes. But everything needs a beginning or an
introduction. And Foodmandu might just be the big introduction Nepal needed. Nepal is very
new to the concept of home delivery and e-commerce. Restaurants themselves cannot afford to
provide this service and there hasn’t been a rise of loyalty of restaurants or fast food chains
that would help cover the investment around Kathmandu or even Nepal. People tend to choose
convenience and price over quality and Foodmandu has given a perfect mobility to this.

In the beginning, it was very difficult for them to start as it was a new trend and these trends
can be unreliable, and people are and always will be reluctant to accept change. Foodmandu
had to face this trouble as well, it was very difficult for them to convince people to join them
and to set up appropriate resources, vehicles for delivery etc. They started with 3 employees
and seed investment of 4-5 lakhs. And now they employ over 22 people and have 100
different restaurants their customers can choose from.

Foodmandu is a very simple concept. A person can order via phone or the internet and choose
from 100 restaurants working with Foodmandu, and the person only needs to pay when the
food is delivered. No complicated e-banking or an over extended ordering procedure, the same
service you get at a restaurant but at the comfort of your own home, how comforting is that?

iii
 Contents
Acknowledgements......................................................................................................................1
Abstract........................................................................................................................................2
List of Figures..............................................................................................................................4
CHAPTER 1: Introduction..........................................................................................................5
1.1 Introduction and Background of Foodmandu....................................................................5
1.2 Online Opportunity............................................................................................................1
1.3 Business Model..................................................................................................................1
Chapter 2: Marketing Strategies and Payment Method...............................................................4
2.1 Marketing strategies...........................................................................................................4
2.2 Payment Methods...............................................................................................................4
CHAPTER 3: Business problem analysis and solutions.............................................................6
3.1 SWOT Analysis.................................................................................................................6
3.2 PESTEL Analysis..............................................................................................................7
3.3 Solutions.............................................................................................................................9
HOME PAGE............................................................................................................................10
CONCLUSION..........................................................................................................................11

iv
 List of Figures
FIGURE1.1: LOGO OF FOODMANDU..............................................................................................5
FIGURE 1.2: BUSINESS MODEL....................................................................................................2
FIGURE 2.1: ORDER PROCEDURE.................................................................................................5
FIGURE 3: HOMEPAGE OF FOODMANDU (FOODMANDU, 2020)..................................................10

v
 List of table
TABLE 1.1: ANNUAL TURNOVER.................................................................................................7

vi
 CHAPTER 1: Introduction

1.1 Introduction and Background of Foodmandu

Back in the old days, looking for our favorite cuisines and ordering food online seemed like
the myth. But, after advancement in technology and increasing trend of internet users online
food ordering has become normal activities for many foodies. Founded by Mr. Manohar
Adhikari, Foodmandu.com, owned and operated by Foodmandu Pvt.
Ltd, launched in 11th November 2010, is the first
company in Nepal that delivers foods from more than
120 different restaurants in Kathmandu to our
door step.
figure1.1: Logo of Foodmandu
It is a food ordering and delivery company that was
Inspired by the thought of providing a complete food ordering and delivery solution from the
best neighborhood restaurants to the urban foodie. Foodmandu started its services realizing
the busy schedule of working class people. Today, there are more than one food delivery
company, and Foodmandu stands out among all of them not just because it was the first to
enter the food delivery market, but the first and only one of its kind to enter a service
platform. Be it, satisfying our hunger, connecting our favorite food outlets with the location
we are in or bringing together all we want from more than one place, Foodmandu is just the
right solution for us.

It took three years for Mr. Adhikari in his own software company before the Foodmandu we
know today, came into existence. The initiation started with only 10 restaurants with
readiness to change as partners and worked day and night to prove their business model with
the initial 15 employees they hired. At present, the entire team consists of 35 members in
which the company have dedicated 20 people for the delivery and others on the customer
service, marketing, and other departments. Foodmandu is wonderful online sustenance
1
request and conveyance service with its head office in Naxal, Kathmandu that furnish best
cafés list with menu things with value indication (2021).

BUSINESS OBJECTIVES

 To manage the details of the food, item category, shopping cart, and order.
 To reduce manual work for managing the food, item category, delivery address,
shopping cart.
 To increase efficiency and faster delivery service.
 Manage the information about the food and transaction.

PRODUCTS AND SERVICES

 Online food delivery

 Online restaurant registration
 Online payment
 Cash on delivery

With the increasing demand of the online businesses, Foodmandu has been increasing its
products and services on various fields with increased employees and partners. The data
of Foodmandu can be presented below:

Table 1.1: Annual Turnover

2
1.2 Online Opportunity

Every ecommerce business in Nepalese Market is in a nascent stage and same applies to
Foodmandu. Despite being at the initial stage of the online business, the business could
be benefitted by various online opportunities that can be listed as below:

 Tap into a wider range of customers who may currently not be able to source
Foodmandu’s products and services;
 Deliver a high quality buying experience which provides a high level of service
and point of difference in the marketplace;
 Access global export opportunities and widen the geographic reach;
 With increasing numbers of customers getting comfortable with online shopping
and increase in numbers of internet users in Nepal, there is a huge potential;
 Establishing their operations in other districts of Nepal beyond Kathmandu will
help improve its revenues;
 The best service and support, any time convenient in ordering. immediate refunding,
good quality of restaurants possess a high opportunity
 Being the pioneer with minimal competition in the food delivery sector is a boon;

1.3 Business Model

Foodmandu operates on A HYPERLOCAL ON-DEMAND FOOD DELIVERY

BUSINESS MODEL. It not only aggregates restaurants but also organizes a fleet of
delivery partners which deliver the food (in less than 30 minutes) on-demand. The
partners can be divided into two categories:

Restaurant Partners: The restaurant partners are restaurants which opt to deliver to
customers that come from Foodmandu application and website.

Delivery Partners: They form the delivery fleet which is given the responsibility to
pick up the order from the partner restaurant and deliver it to the end consumer.
3
Figure 1.2: Business Model

The company folllows the SUBSCRIPTION MODEL where the partner restaurants must
pay a recurring price at regular intervals for access to utilizing the facility. It earns its
revenue through restaurant registration and their yearly subscription. This model assures
a predictable and constant revenue stream from subscribed individuals for the duration
of the subscriber's agreement. Not only does this greatly reduce uncertainty and the
riskiness of the enterprise, but it often provides payment in advance while allowing
customers to become greatly attached to using the service.

Foodmandu works on a 4 steps dynamic model which goes in the following way:

1. Search
2. Place an order
3. Process
4. Delivery
4
 The B2C model focuses on direct selling and marketing between a business and a
consumer via an e-commerce website.

Figure 1.3: Market Segment

The majority of customer segment of Foodmandu are those people who do not wish to go
to restaurants and want their food to be delivered at home. The traffics, busy lifestyle of
people is the reason behind people preferring to order food rather than going to the
restaurants. This invites an opportunity for online business like Foodmandu. The top
priority for any organization is to maintain a positive relationship with their customers so it
is the B2C model that provides direct interaction with the customer.

5
 Chapter 2: Marketing Strategies and Payment Method

2.1 Marketing strategies

A marketing strategy is a business's overall game plan for reaching people and turning
them into customers of the product or service that the business provides. The marketing
strategy of a company contains the company’s value proposition, key marketing
messages, information on the target customer and other high-level elements. It informs
the marketing plan, which is a document that lays out the types and timing of marketing
activities.

Generic strategies describe how a company pursues competitive advantage across its
chosen market scope. There are three/four generic strategies, either cost leadership
strategy, market differentiation strategy or focus strategy. These are known as Porter's
three generic strategies and can be applied to any size or form of business. The generic
strategy reflects the choices made regarding both the type of competitive advantage and
the scope.

Foodmandu is basically online support helps for restaurant to grow the business and
build more revenue through branding. It follows the Market Differentiation Strategy
where it provides facilities of home delivery from selected restaurants by the customers.
It does text ads, display ads and video ads as well social media support to get branding
and become success. It is possible in online marketing any business can get famous and
get more sales. Foodmandu’s marketing strategy consists of both online and offline
marketing campaigns with the online mirroring all the offline campaigns. It promotes its
campaigns via Facebook, Twitter, YouTube, and Instagram. Their face book page is
quite active with regular updates, averaging to one post a day. Foodmandu uses its
Social media not only for campaigning but to engage with its customers from solving the
grievances to taking the feedback.

2.2 Payment Methods

Foodmandu initially followed Cash-on-Delivery payment method. Buyers are usually

6
billed directly by merchant members for their orders, and "Foodmandu" will be the name
that appears on the bills we receive from the merchants but sometimes separate delivery
slip and redemption slips will be received in case there is any delivery charges or cash
back offer.

Khalti has partnered with Foodmandu as the Director of Khalti, Mr. Amit Agrawal and
Founder and CEO of Foodmandu, Mr. Manohar Adhikari signed the partnership
agreement on December 27, 2018, Thursday. This collaboration is made to facilitate
users to make digital payments for food ordered online through Foodmandu app and
website. So, this partnership can be taken as a good leap forward towards shifting the
payment system from cash-on-delivery to digital method.

(2021)

Figure 2.1: Order Procedure

7
 CHAPTER 3: Business problem analysis and solutions

3.1 SWOT Analysis

Strengths

• Quick Delivery
• Good brand image
• Trained employees
• Good organizational structure and management
• Wide range of restaurants
• Neat Packaging

Weaknesses

• Limited order placement within a specific area

• Low awareness of brand
• Delivery charges
• Price differntiation in menu and app prices

Opportunities

• Pioneer in Food Delivery Business

• Growing market for potential customers
• Increasing market share
• Cost effective and quality food
• Better and effective service

Threats

• Present customer base is low

• Increasing health consciousness
• Increasing potential Competitors

8
3.2 PESTEL Analysis

PESTEL analysis describes a framework of macro-environmental factors in the environmental

scanning component of strategic management. The relevance of PESTEL analysis for a
company is to audit its contemporary environment and assess potential changes and prepare
accordingly so that its competitors to respond to changes.

Political Environment

This is one of the most important factors because of its degree of governmental influences and
controls. These factors has positive as well as negative impact on a business therefore it is
highly beneficial to examine a political environment before starting a business. This
environment includes labour law, consumer law, trade restriction and political stability of a
country.

The political factors which bounds foodmandu are:

 The rules that the government undertakes in respect to the employment laws for the
safety of employees
 Rules regarding quality of foods and its preservation issues
 Rules regarding disposal of wastes
 Rules regarding consumers personal data protection
 Rules against employing office staffs and delivery people without contract
 Agreement on conflict management

Legal Environment

9
Legal environment revolves around the rules, laws and by-laws passed by government and
international agencies for proper regulation of activities. According to our visit on
Foodmandu, the Legal factors that bound this organization are as follows:
 Issues relating to intellectual property rights
 Concerns regarding Consumer data privacy
 Company should be aware of prevailing e-commerce laws and be up-to-date with new
laws, or changes that occurs i.e. Understanding LEGAL OBLIGATION
 Legal factors includes payment of tax, changes in inflation/deflation rate of a country,
basic salary to workers, protection to workers working in dangerous work environment
etc.

Economic Factors

Economic factors generally includes inflation, interest rate, rate of employment, exchange
rate, balance of payment and economic policies. The economic factors which has impacted
foodmandu are:

 Nepalese youth are more inclined to outdoor food rather than an indoor food as it has a
good scope in a upcoming days.
 Inflow of remittance has increased in Nepal as it has increased the purchasing power of
Nepalese people.
 Monetary policy of Nepal has supported the growth of ecommerce as it is a growth
opportunity to foodmandu.
 Increasing disposable income of customer.
 Increasing number of competitors like bhoj, food Mario, pathao food etc.

Socio-cultural Factor

Socio-cultural factor includes psychological perception, value proportion, ease of use, trust
and security, usage, location, motivation for use of online services etc.

The factors which has impacted foodmandu are:

10
  Simplicity to use
 Trust of customer on data protection
 Treat of security breach as it has happened already once.
 Adaptation of e-business by small firms like resturants, cafe etc.
 Lack of technical knowledge and operation infrastructure among all age group, it has
created difficulty reaching mass population.

Technological Factor

Technological factor includes devices, network, payment security, content, communication

etc.

The factor that foodmandu has been impacted are:

 Security breaches and privacy protection issues

 Communication infrastructure is still developing.
 Wide scope in future if consistency is maintained as Nepal is technologically adopting.

3.3 Solutions
 Use of strong market strategy and advertisement that helps to set the idea of
Foodmandu in the mind of the potential customers.
 Expansion of market outside Kathmandu valley to provide services to the
potential customers.
 Increasing the speed of delivery period can help to increase the customer satisfaction.
 Expansion in the range of services they are offering.
 Participation as well as sponsorship in exhibition, trade fairs and other events so as
to make customers aware about Foodmandu and its services.
 Facility of orders at any range can make the market segment more flexible.

11
 Instant update on the websites and mobile application must be made to
eliminates confusion.

12
 HOME PAGE
Homepage also known as page and Web page is the introductory page of a website,
typically serving as a table of contents for the site. A home page typically contains
hypertext and navigation buttons that allows the user to navigate the site by clicking
them with a mouse and invoking hyperlinks to other pages and even other sites.
The homepage of Foodmandu is quiet simple yet classy. It provides all the details
necessary for the customers.

Figure 3: Homepage of Foodmandu (Foodmandu, 2020)

The homepage of foodmandu includes the following:

 On the top left, we have the FOODMANDU Logo.
 On the top right, we have the LOGIN option where customers can log in to the already
made foodmandu account or create a new account with an email address and password.
 In the middle we have the SEARCH option where we can search our desired
restaurants for food choices.
 Right below it, we have the cuisine option where we get to choose restaurants
according to the food cuisine by clicking to the options given, i.e. Burger, Chinese,
Continental, and Japanese and so on.

13
CONCLUSION

The eight years of continuous and consistent effort has seen Foodmandu grow from a
startup looking for a business model to a business based on platform serving customers
regularly. The Kathmandu-based startup with the added resource might soon see them go
beyond Kathmandu and Lalitpur to serve other customers. What exactly future holds is
still uncertain but going by their journey and current success, seems like the sky is the
limit for this Kathmandu-based startup.

Foodmandu stands out among all of other online businesses not just because it was the
first to enter the food delivery market, but the first and only one of its kind to enter a
service platform. As a service company, Foodmandu believes their strength lies in their
customer retention which is at 80%. Rather than investing heavily in marketing, they
invested on the logistics and focused on delivering quality service for good word of
mouth. After eight years of measured and sound growth, today, Foodmandu delivers an
average of 200 orders every day from more than 160 partner restaurants and with more
than 30 people running on wheels. Foodmandu’s growth and success have set an
example to aspiring entrepreneurs, startups and onlookers alike. Many ponder the key
towards Foodmandu’s growth and the key in summary from what we have observed is
nothing more than approaching the right problem, with the right solution, and the right
attitude.

14
 Bibliography
(2021, 03 22). Retrieved from http://startupsnepal.com/stories/entry/understanding-foodmandu-a-
platform-connecting- the-hungry-you-with-your-favorite-food
(2021, 03 22). Retrieved from https://blogortech.com/foodmandu-app-food-delivery-from-the-best-
restaurants-in- kathmandu/
Foodmandu. (2020). Retrieved 03 22, 2021, from https://foodmandu.com

15