Case Study on
Objective:
To increase average revenue per user and
make zomato profitable
College: International Institute of Information Technology (IIIT), Hyderabad
Param Dubey (paramdubey97@gmail.com)
Aniket Chandekar (aniketchandekar@gmail.com)
Shambhavi Ojha (ojhashambhavi@gmail.com)
As given in the problem statement, We (VP of Product @ Zomato) have to choose Grocery or Cloud Kitchen as a new
category to help increase revenue. After studying these options, we can draw out differences to reach a conclusion.
Grocery Cloud Kitchen
Already market occupied by big players like No major market leader in cloud kitchen spac
Jiomart,Dmart and Amazo
Biggest Competitor is Rebel Foods which has
Margins are very less on most of the product brands like Faasos,Oven Story,Behrouz Biryan
Delivery charge on per product is very hig Projected to become 2 billion dollar industry
by 2024 according to RedSeer Industr
No loyal customer base in grocer
Cloud Kitchen upfront and running cost is very
low when compared to full fledged restuarant
Inventory and Maintenance cost is high for this
category
Based on the previous differences, we have decided to go ahead with Cloud kitchen.
Industry Report and Market Research
The food made in Cloud Kitchen is cheaper than Dine out restaurant because of low upfront cos
Avg profit margin for cloud kitchen is around 14% whereas profit margin for restaurant is 4
Rent is biggest overhead which can cost around 30k per mont
Average Staff Cost with 6 people will cost around 50k per month in Cloud Kitchen whereas it can go upto
1 lakh per month for restuarant
Source: https://www.posist.com/restaurant-times/
Revenue Streams Open for Zomato
1 Upfront Fees from Cloud Kitchen Owner:
Cloud Owner will pay 10k to be on Zomato platform where he can get 32 million user base. No need for him to do marketing!!!
Featured Revenue or Ads Revenue
2
Cloud Owner can pay for ads to be on top list of Cloud Kitchen to inorder to gain more orders from customers
Minimum Discounts
3 Zomato offers many discounts on its app which cost them over 40% of the revenue which generates loss thats why minimum discounts or no
discounts here
Tiffin Meals Commission:
4 A commision of 5% will be charge for any new Tiffin Meal order done by customer.Tiffin Meals is the new feature given by cloud kitchen owners to
customers to have minimum 30 pre-paid meals at lower cost.
Logistic Charges will be different from existing charges:
As majority of the food will be at lesser price compared to restaurant as there will be no over head.We are giving options to Cloud Kitchen owners to
5
adopt our logistic or they can deliver by themselves also.
Delivery Charges will be more than existing Zomato Delivery Charges
Initial Partnership
Onboarding existing Cloud Kitchen
to give a new expericence to
exisitng customers
Rekha’s Ghar ka Khana Steam
Rekha’s Ghar ka Khana Menu Tiffins
Homemade, North Indian
Veg Non-Veg
Steam Steam
Order/Subscribe from the best cloud kitchens around you! Subscribe
Zomato
Steam FEATURED
Zomato Steam
provides a new
experience for the
end consumer to Rekha’s Ghar ka Khana 3.9
browse through 30-40 min ₹150 for one
multiple cloud Homemade North Indian
kitchens near them to
make sure they never
miss out on amazing FEATURED
and delicious food!
Steam will have a seperate tab When clicked on a particular Depending on the cloud kitchen, we
in the navbar with a similar restaurant, we can see the option to can show the menu it offered, or a
looking interface design. subscribe to the restaurant. seperate tiffins section for the user to
browse through.
Rekha’s Ghar ka Khana Steam
Frequency of Meal ordered 2
Edit Meal Timings
Subscribed meal Start date 01-08-2022
Subscribed meal End date 20-08-2022
Item Total ₹360
No. of days subscribed 20
Taxes & charges ₹2187
Grand Total ₹9387
₹9387
Drawer element showing details of Item being added in the cart The quantity of food item is confirmed
the food item and asking for quantity and the frequency of food item per day
is asked. Subscription start date and
end date is also asked. The total
payment is made upfront.
Go-to-Market Strategy
1 Business objective 2 Target market 3 Unique value propostion 4 Marketing strategies 5 Key metrics
Objectives Customers New Features Marketing Channels Success Metrics
Increase Gain new Existing New Cloud Kitchen
Cheaper than Online Notifications North Star
Revenue per customers for Customers
Customers Ever Before
Youtube Ads
to Existing Metric
user new launched Both Premium for new Try out new App user Increase in
features and Non feature of cusine and Cloud Kitchen Instagram base
User Base
Increase
Premium Tiffin meals food from provides food Posts and Revenue per
Customers differnt cloud directly to the Ads Competitions User
kitchen customer to encourage
Make Zomato
with no House wives
overhead Email to open cloud
Profitable
expense
Tiffin Meals
Marketing To kitchen and Increase in
Exisitinng give number of
Can pre-book Customer discounts on orders per
for minimum regarding the upfront fees month
30 meals at annoucement
cheaper price of new Increase in
service
User
Engagement
Mobile SMS
Success Metrics
North Star Metric
Number of orders per month through Cloud Kitchens
Other Metrics to consider
Increase in Customer Bas
Number of Pre-paid orders for full 30 day meal
Increase in Cloud Kitchen on app
Press Release
S t e a m
Zomato is thrilled to announce the launch of new category
THE CLOUD KITCHEN.
New Cusinies will be offered to the Zomato Users by new
Kitchens!!!!
Pre-Paid Tiffin Meals is the new feature launched under Cloud
Kitchen!!
What are you waiting for?Download Zomato now and avail
freebies
Thank You!
