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CASE STUDY ON
CONSUMER BEHAVIOUR
Dr.Bharath V MFM., M.Com., Ph.D
Assistant Professor
Department of Management
Kristu Jayanti College (Autonomous)
Bengaluru
bharath.v@kristujayanti.com
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The Online Food Delivery Business
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The Online Food Delivery Business Market
• India’s online food delivery business witnessed massive
growth in the last five years.
• From generating a total revenue of $4.82 billion in 2017 to
crossing $27 billion in 2023.
• online food delivery companies like Zomato and Swiggy
rule the Indian market.
• According to Statista, the projected revenue of this
segment is expected to reach $91.88 billion by the end of
2029 and is projected to grow at a CAGR of 16% during
2024-2029.
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The Online Food Delivery Business
• Post-pandemic, people choose to stay in the comfort of
their own homes and order food online.
• Convenience is one of the major factors in deciding on-
demand food delivery business models as it can create an
impact amongst the customers.
• Reference groups are groups (social groups, influencers,
work groups, family, or close friends) a consumer
identifies with and may want to join.
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Understanding the Online Food
Delivery Business Models -1
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Fully integrated Model -2
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SWIGGY: A CONSUMER
BEHAVIOR
-Case Study
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Swiggy’s history
• Founded in 2014, by BITS Pilani graduates, Sriharsha
Majety and Nandan Reddy in Bangalore.
• Started delivering food to customers in under forty
minutes in spite of the Bangalore traffic!
• Swiggy raised $80 million in funding by 2015. After
investors began to invest in the startup, the platform
began to experience great heights. The food platform had
partnered with over 100 restaurants by the end of 2015,
and it was delivering over 70,000 orders each month.
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• Swiggy experienced losses in March 2016.
• Swiggy made the decision to focus on cost-cutting and
bolstering the logistics network in April 2016.
• In order to better understand its customers' needs and
improve its operations, Swiggy made investments in core
engineering, automation, data sciences, machine
learning, and personalization in 2017.
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• By the end of December 2017, Swiggy had expanded to
more than ten cities, had partnerships with more than
20,000 restaurants, and was recording a staggering 4+
million transactions per month on their balance sheet.
• Swiggy acquired Scootsy in 2018 to expand its operations
in industries like groceries, fashion, stationery, and other
necessities, as well as to better serve its customers'
needs and to improve its operations in 2017.
• By 2019, Swiggy had a daily order volume of about 1.4
million, a delivery team of 45,000 agents, 1,30,000+
restaurant partners, and a presence in more than 325
Indian cities.
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Swiggy’s Marketing stragies
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Swiggy’s Strategy for Customer Retention
• Notifications/ads (offers, weather conditions)
• hyperlocal marketing strategy(location)
• Machine learning ( users past order, search history,
super-personalized ads) reduce CAC.
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Swiggy’s Promotional Strategies
• Email marketing: Swiggy has a successful email marketing strategy
that uses eye-catching visuals and enticing subject lines to engage
with millennials and Generation X.
• Social media marketing:Swiggy has created campaigns like
#earnyourcheatmeal and #superswiggy that use puns and clever one-
liners to humorously express the idea of healthy eating.
• Paid advertising: Swiggy runs Google text ads and Display Ads to
target people looking for food, and Facebook ads to target users.
• What's in a name:Swiggy created a film about a boy called Swiggy to
spark a cultural change and drive home the point that everyone has a
name and deserves
respect. (https://www.youtube.com/watch?v=m2nHKGKiTxo&t=111s)
• Cricket-themed ads:Swiggy's ads use everyday scenarios to
highlight the speed and convenience of their delivery service, and
compare themselves to cricket to resonate with cricket fans.
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• Swiggy also gets its services promoted by influencers.
• They use eye-catching images, smart slogans, and mind-
blowing deals to grab customers' attention. Customers
like us then increase Swiggy’s CTR by clicking on the
links and notifications to enter the sweet sweet world of
tasty food.
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How Swiggy reads customer experience?
• Swiggy is offering pre-customized carts with two items
each!
• Food Intelligence (FI) technology to make consistent
combinations of two dishes each.
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How Swiggy facilitates online consumer behavior?
• Swiggy solves one of these pressing issues - providing
good food at your convenience.
• 2020, Swiggy ventured into grocery delivery, in-city
courier services, and even delivering items from small
businesses.
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Analyzing the role of consumer behavior
• Swiggy observed online consumer behavior and converted its
application into a one-stop shop for almost all the daily needs
of Indian consumers.
• It understood the need for trust and credibility for consumers in
India while also understanding the need for comfort even when
shopping online.
• Swiggy created a platform for consumers to order food,
groceries, and meat, send and receive intra-city couriers, and
order items from their favorite small businesses.
• Promotional strategies to suit the needs of the young Indian
consumer.
• its quick and satisfactory customer service. With the pre-
customized carts, it will ensure that even more customers are
retained.
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Swiggy Vs Zomato-
An Overview Of Online Food Delivery Giants
