A Study on Consumer Perception Towards Food Ordering Portal with Reference to Swiggy and Zomato in Chennai

INFOKARA RESEARCH ISSN NO: 1021-9056

COVER PAGE

Title of the Paper : A Study on Consumer perception towards Food Ordering Portal with reference to Swiggy and Zomato in Chennai

Name of the author and co-author : Ms. CibiyaAngelin. A, Dr. Smitha Poulose

Professional affiliation of the author : 1. Ms. CibiyaAngelin. A III B.Com (General), Department of Commerce, Women’s Christian College, Chennai

: 2. Dr. Smitha Poulose Assistant Professor, Department of Commerce, Women’s Christian College, Chennai-06.

Postal address of author & co-author : 1. Ms.CibiyaAngelin. A

Door 16/19, Sathangadu High Road, Kaladipet,

Thiruvotriyur, Chennai-19.

2. Dr. Smitha Poulose Door S2, No.20/4, PalaniNivas, Kuppuswamy Street, Nr. SreeMithai Sweets, Chetpet, Chennai-31.

Track Area and Sub-theme : E Commerce/Digital Marketing

E-mail of author and co-author : [email protected], [email protected]

Volume 8 Issue 11 2019 377 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056

A STUDY ON CONSUMER PERCEPTION TOWARDS FOOD ORDERING PORTAL WITH REFERENCE TO SWIGGY AND ZOMATO IN CHENNAI

Abstract

Marketing has always been about connecting with your audience in the right place and at the right time, especially in this era of mobile applications. Mobile application development is driven by advancements in technology which has drastically increased the usage of mobile phones and applications. The online food ordering market creates convenience and saves times by delivering food at customer’s door step. The online food portal gives choice, attractive offers which attracts customers and also increase their profit by providing services. The online food ordering market increased in the U.S with 40% of U.S adults having ordered their food online once. This research paper aims at discussing the consumer’s perception towards the online food ordering and services among students in Chennai. The survey was conducted for a purposeful analysis with 70 respondents. The paper embarks on the satisfaction level and the influencing factors towards the food ordering portals with reference to Swiggy and Zomato and also the preference of the students between these two apps.A SWOT analysis was done to analyse the result of customer’s preference.

The food delivery landscape has been undergoing significant change in the last few years. As the world becomes more and more interconnected, technology has began to be considered as a convenient and useful tool for communication. In fact, technology has, among other things, provided the type of social interaction that has, indeed, bridged the gap between customers and sellers.Food delivery technology allows consumers to plan ahead or order on the go, adapting to the changing habits. Convenience is the prime factor to the consumers, as to place order is as simple as few clicks on any mobile devices. The online portals now act as the key source for any kind of restaurant business. The popularity of online food ordering and delivery services is steadily growing; expectations of the users are also increasing.

This research paper is aimed to find out the factors that allow the users to use online food ordering portals in Chennai and to investigate the satisfaction level betweenZomato and Swiggy. This study also concentrates on comparing both the apps globally. This paper will help the service providers to understand the consumer’s perception on the basis of the result. The survey, results and the findings will help the online business to create better strategies to attract many customers and to provide them with better convenience.

Volume 8 Issue 11 2019 378 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056

Key Words:Online food ordering portals, food delivery service, consumer perception, preferences, satisfaction

A STUDY ON CONSUMER PERCEPTION TOWARDS FOOD ORDERING PORTAL WITH REFERENCE TO SWIGGY AND ZOMATO IN CHENNAI CibiyaAngelin and Dr. Smitha Poulose

A CRITICAL LOOK AT THE FOODTECH GIANTS – AN OVERVIEW

E-commerce in India is expected to grow at a faster pace with the rapid evolution of computing and communication technologies which encompass spurring and dawning innovations in Food services. With the overwhelming popularity of e-commerce, customers taste and perceptions keeps changing from time to time. In today’s bandwagon of E- commerce platform, foodtech giants like Zomato and Swiggy emerged as popular drivers in online food & restaurant service companies which will cause a spurt in the demand and supply of food services in India.Zomato and Swiggy are the two top food delivery apps in India, which offers service to customers by delivering the food ordered by them at their doorstep. The on-demand food delivery apps such as Zomato and Swiggy have grown a great deal in recent years. They manage their entire food order and delivery system with centralized platform. 1. ZOMATO Vs. SWIGGY – A COMPARATIVE STUDY Zomato started under the name, Foodiebay initially is an Indian restaurant aggregator and food delivery start up foundation in July 2008. Later in November 2010, it was renamed Zomato. It was started by DeepinderGoyal and PankajChaddah. It provides information, menus and user-reviews of restaurants, and also has food delivery options from partner restaurants in select cities. As of 2016, the service is available in 24 countries. And it shows that there are 80 million monthly active users. It is also an online discovery guide for restaurants, clubs and for dine-outs. The registered users are required to post reviews and rate (on a scale of 1-5 stars) the restaurants on the basis of their choice, visit and experience. Swiggy is one of the largest and most valuable online food ordering and delivering platform in India. It was founded in 1014, which is based out of Bangalore and as of March 2019, it has been operating out of Indian cities which has currently served in 300+ cities across India. The two founders SriharshaMajety and Nandan Reddy designed an E-

Volume 8 Issue 11 2019 379 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056

Commerce at first and seeing the drastic change in the food sector approached Rahul Jaimini and founded Swiggy. It provides a single window for ordering from a wide range of restaurants and have their own exclusive fleet of delivery personnel pick up orders from restaurants and deliver it to customers. 2. REVIEW OF LITERATURE

Dr. Mitali Gupta (2019) declares in his research the impact of food delivering Apps on restaurants. The study outlines on the benefits as well as positive and negative effects of electronic food delivery and various online food delivering applications. The researcher has also focused on strategies of food delivering applications with special reference to Zomatoand Swiggy.Jyotishman Das (2018) reveals in his study the various factors that influence the consumers to choose online food delivery services. He has analyzed about the most preferred online food delivery service portal by consumers. He has also shown the factors that hinder consumers to use online food delivery services. It is found that each food ordering apps have their own specializations, Zomato for better discounts and Swiggy for on time delivery. Dr. NehaParashar and Ms. SakinaGhadiyali (2017) in their study on Consumer’s attitude and perception towards Digital Food App services, has found the significant relationship between factors considered important while selecting a food delivery app. They have aimed in finding the most preferred option of payment by the respondents and have researched about the most popular app in the digital food delivery applications. Sometimes customers might feel unsecured while sharing their personal information such as their phone numbers, address. Also, they have analyzed the relationship between food delivery apps and the facilities provided by the same.According to Megha Gera(2018),in their study on “Operations research in food delivery” they have aimed to investigate how operations research can be used in the food industry. And have analyzed about how the research can help restaurants as well as the food delivery companies at the same time. They alsohave concluded stating that operations research can be used by the business to determine how they can decide between different food delivery companies to minimize the cost and earn greater profit margins.

Other research studies made by Suryadev Singh Rathore, (2018),revealed that online food ordering companies must pay attention to the quality of information, Mobile Application

Volume 8 Issue 11 2019 380 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056

and website design, security and privacy for payment systems towards their customers to provide them full satisfaction experience. It also reveals that product price, ease of payments, special offers and discounts play important role in the system.Zulkarnainkedah(2015), the main purpose of the research is to find the ‘key success factors’ of online food ordering services; if it depends upon the website quality(design) or service quality or website trust which leads to loyalty in an online ordering environment.service quality and loyalty reflect that efficient delivery, reliable customer service and food characteristics (e.g. freshness,presentation, healthy) are also essentials for operating successful food ordering services. Ms. Neha Gupta and Dr.DeepaliBhatnagar (2017), they have concentrated on students and their behaviour towards online shopping, as it is found that students use online portal more often than others. By the way of survey, they have found the respondents preference on the portal, usage of money per purchase. Factor analysis results reveal that Experimental Uniqueness, Customer Service and Convenience tend to be the three significant dimensions as to why customers prefer internet shopping. 3. OBJECTIVES OF THE STUDY 3. 1. PRIMARY OBJECTIVE: The primary objective of this study is, toknow the consumers perception on the food ordering and delivery portal. 3.1. SECONDARY OBJECTIVES:  To know the most preferred online food delivery service portal by consumers between Zomato and Swiggy.  To know the satisfaction level towards the online food app with reference to Zomato and Swiggy.  To analyse the influencing factors which help the consumers to choose online food delivery services.  To analyse the strengths and weakness of the most preferred app with the help of SWOT analysis.

4. SCOPE OF THE STUDY

Consumers have specific need and expectations with respect to their food. The study is conducted to know the perceptions of customers regarding electronic food ordering among the customers (students) of Chennai city. From this study, we can have a better and clear

Volume 8 Issue 11 2019 381 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056

understanding of the online food delivery portals. We will know about the preference of the consumers whether they prefer Swiggy or Zomato and will get to know the influencing factors which make the customers prefer a particular app. Also we will get to know the satisfaction level of the customers in terms of price, quality etc. Therefore the findings will help the service providers to improve and to know about customer’s preference and to fill up the gaps. 5. LIMITATIONS OF THE STUDY a. A small sample size of 70 respondents has been taken for the study. b. The study has been carried out in Chennai, so the findings may vary accordingly, as the other parts of the state, country may have different culture and eating practices. c. Customer’s perception may vary depending upon the situation. 6. ANALYSIS

6.1. INFLUENCING FACTOR WHICH MAKES CONSUMER TO USE ONLINE FOOD DELIVERY APP:

The above analysis reveals that the influencing factor which allows the consumer to use online food delivery app is the variety of choices that the customers get.

6. 2.INFLUENCING FACTOR AND SATISFACTION LEVEL (SWIGGY) :

Volume 8 Issue 11 2019 382 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056

1. 55% of the consumers who use Swiggy are influenced by the offers and discounts provided by them. 2. 77% of the consumers who prefer Swiggy are satisfied with the app.

6.3. THE MOST PREFERRED APP: 1. 60% of the customers prefer Swiggy and the remaining 40% of the customers prefer zomato.

7. SWOT ANALYSIS: It is a simple framework to analyze the strengths and weakness and the opportunities and threats of the app. 7.1. SWIGGY : STRENGTHS - 1. Swiggy has grown to be a good and respected service app in Chennai 2. It is known for quick delivery, a wide range of restaurants, variety of choices, well- trained delivery executives 3. It claims to own completed over one million orders during a month, which helps to create more awareness and increase profit. 4. It is said to be a lot reliable and quicker than its competitor’s-Zomato, food panda. 5. Swiggy, which has an average delivery time is 35 minutes which makes it stand apart. WEAKNESS – 1. Its main weakness is they collect delivery charge for all order above Rs. 250 while the competitors deliver for free. 2. It has a lot of middlemen to finish a particular job which may be expensive. 3. Most of the customers feel that the prices of the food items are comparatively costly. 4. Swiggy mainly concentrates on zonal restaurants; as their competitors are increasing it need to be expanded.

Volume 8 Issue 11 2019 383 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056

5. Swiggy need to work on its branding since many people are not aware of the brand name. OPPORTUNITIES – 1. Swiggy was the first platform to introduce the home delivery concept with minimal

charges.

2. A little re-branding can re-grow the market share.

3. Delivery can be quicker with no charges.

4. With correct marketing strategy Swiggy can overcome all its competitors.

5. Swiggy needs to expand their service area and not to stick to zonal restaurants.

THREATS – 1. Health consciousness 2. Increase in potential competitors 3. Negligence of competitors 4. Maintaining health standards and freshness in the product. 8. CONCLUSION: In a nutshell, according to the study conducted, it can be concluded that Swiggy has gained a positive opinion in comparison to other service providing apps. It is because of variety of choices which they provide. It also needs changes and better marketing strategies to win over the competitors and to sustain in the position.

BIBLIOGRAPHY:

BOOKS & JOURNALS 1. Jyotishman Das (2018), “Consumer perception towards Online Food ordering and Delivery Services’ An empirical study”, Vol. 5,Iss. 5, pp. 155-163, ISSN print: 2347- 3940. 2. Dr. Mitali Gupta – DAIMSR (2019) “A Study on impact of Online food delivery app on restaurant business special reference to Zomato and Swiggy”dtd., 16th Jan, Vol. 6,Issue 1, ISSN (E) : 2348-2348. 3. Megha Gera &Netal Nawander+2 (2018), “Operations research in Food delivery” International Journal of Advance Research and Development (IJARnD), Vol. 3, issue 10, pg.n0. 73-78.

Volume 8 Issue 11 2019 384 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056

4. Ms. Neha Gupta and Dr.DeepaliBhatnagar (2017) “A Study on online shopping behaviour among the students”, IOSR journal of Business and Management. Vol.19, issue 6, ver. V, ISSN: 2278-487X, PP 01-07. 5. Dr. Nehaparashar and Ms.SakinaGhadiyali (2017) “A Study on customers attitude and perception towards Digital food app services”, Amity journal of management. 6. Suryadev Singh Rathore&MahikChaudary (2018) “Consumer’s perception on online food ordering” published at (IJMBS) International Journal of Management and Business Studies, Sept-Oct, Vol. 8, issue 4, ISSN: 2230-9519. 7. Zulkarnain Kedah+3 (2015) “Key Success factors of Online food ordering services: An empirical study”, published in Malaysian management review. Vol.50 No.2 (July- December).

ONLINE SOURCES 1. https://medium.com/ - SWOT analysis 2. https://digitalwale.com/swiggy-swot-analysis/ - SWOT analysis

Volume 8 Issue 11 2019 385 http://infokara.com/