Table of Contents
- Key Takeaways
- Food Delivery Apps Beginnings
- Zomato Business Strategies
- Swiggy Business Strategies
- How do both brands differentiate from each other?
- Conclusion
Beginnings
Zomato and Swiggy are two of the most popular food delivery companies in India. Both companies have experienced rapid growth in recent years. Each of them has established itself as a major player in the online food delivery market. In this post, we will compare the marketing strategies of Zomato and Swiggy. To see how they have differentiated themselves from each other and from competitors.
Zomato and Swiggy leave no chance to compete with each other. While on one hand, Zomato is good with marketing strategies on the other Swiggy recommends new places.
Food Delivery Apps Beginnings
Food delivery apps have made it easy for everyone to deliver food. From restaurants to homesick people and even office workers. All of their tension has disappeared since Zomato & Swiggy came by.
Zomato was founded in 2008, but at that time it was only an app that used to tell about the menu, prices, and timings of restaurants. It became a food delivery app after Swiggy succeeded in 2014 and joined it as a competition in 2015. They both hold a proper grip on the food delivery industry.
The industry suffered a downturn at the beginning of the pandemic but has grown customer traffic year-over-year. While both companies have been fighting for customer traffic Zomato has been winning in the number of app downloads and website traffic.
Zomato Business Strategies
One key difference between the marketing strategies of Zomato and Swiggy is their focus on different segments of the market. Zomato has traditionally focused on attracting more upscale, high-end customers, while Swiggy has targeted a younger, more budget-conscious demographic.
To appeal to its target market, Zomato has used a number of marketing tactics, including TV and print advertising, as well as promotions and discounts to attract new customers. The company has also invested heavily in building up its brand image, using high-quality product photography and carefully crafted messaging to convey a sense of luxury and exclusivity.
Zomato has introduced their ‘Intercity Legends’ problem solver, which enables people from popular cities like Hyderabad, Old Delhi, Mumbai, Kolkata, and Jaipur to order food from the cities and get the iconic dishes delivered the next day. Made for the foodies of India, with Zomato’s vast network for their customers’ favorite dishes.
Swiggy Business Strategies
Swiggy, on the other hand, has taken a more grassroots approach to the market. The company has focused on building up a loyal customer base by offering convenient and reliable service, as well as promotions and discounts to encourage repeat business. In addition, Swiggy has used social media marketing and influencer partnerships to reach younger, more digitally savvy customers.
Swiggy focused on diversification, it demonstrated business fundamentals by building multiple income streams through similar services. Swiggy has no minimum orders which enables it to attract small-unit customers which is its effort to increase its number of orders.
Aside from delivery charges, Swiggy also earns from advertising and commissions from restaurants.
How Do Both Brands Differentiate from Each Other?
Another area where Zomato and Swiggy have differentiated themselves is in their delivery models. Zomato has experimented with a number of different models, including using its own fleet of delivery drivers, as well as partnering with restaurants to offer pickup and delivery services. Swiggy, on the other hand, has relied almost exclusively on its own fleet of delivery drivers and has focused on building up a large network of independent contractors to handle delivery orders.
Conclusion
Overall, Zomato and Swiggy have taken very different approaches to market in the crowded and competitive Indian food delivery market. While Zomato has focused on attracting more upscale customers and building up its brand image, Swiggy has targeted a younger, budget-conscious demographic and has emphasized convenience and reliability in its marketing efforts. Both companies have achieved significant success in their respective markets, and it will be interesting to see how their marketing strategies evolve in the future.
Both companies started suffering a loss in their business as the pandemic was hitting in 2019. After that, both companies increased their social media marketing and began selling on other platforms like Instamart. While also doing the basics such as email marketing, search engine marketing, and search engine optimization for the brands to increase their traffic on their apps and website.