Marketing Strategy of Swiggy – Swiggy Marketing Strategy is discussed in this article.
In the year 2014 Swiggy was founded by Sriharsha Majety, Rahul Jasmine, and Nandan Reddy. It is online service delivery and food ordering system and has its headquarters in Bengaluru, Karnataka. It operates in major Indian cities including Bangalore, Bhopal, Indore, Chandigarh, Coimbatore, Chennai, Dehradun, Delhi, Guwahati, Hyderabad, Gurgaon, Jaipur, Kochi, Kolkata, Lucknow, Ludhiana, Mumbai, Mysore, etc. Swiggy owns Package Technology and aims to associate restaurants with the city’s foodies. Swiggy’s key approach is to make the food available to customers. Swiggy’s top customers include Burger King, Dominos, and Cafe Coffee Day, etc. Swiggy strives to stand out by having curated restaurant and service lists and has its own fleet that picks up restaurant orders and delivers them to customers. Swiggy raised $1.5 trillion in total and has been expanding in major Indian cities.
Swiggy’s goal is to change the manner in which India eats.
This is the first step in Swiggy’s dream of elevating the urban consumer’s quality of life by providing unprecedented convenience. Swiggy will provide its trading partners with unrivaled access to a mix of core assets to attract both current and new customers.
The tagline of Swiggy:
SWIGGY KARO, PHIR JO CHAHE KARO!
Segmentation in the Marketing Strategy of Swiggy
Swiggy under demographic segmentation targets the youngsters. The segmentation ages include the teens, who will find it very convenient to deliver food at their doorstep, the next target group are college students as well as those who work at the workplace and find it difficult to visit their favorite restaurant.
However, the emphasis was on the consumers of the millennial and all of the brand-building efforts were made to make Swiggy their food ordering app. Swiggy has identified a consumer segment under behavioral segmentation that sees comfort when it comes to food and chooses to stay at home and have a fast meal.
The psychographic segmentation, it targets the customer who assumes that getting food delivered to them is better than driving all the way to the restaurant and avoiding all the traffic in the area. Swiggy targets people who would like to enjoy a relaxed lifestyle.
Target in the Marketing Strategy of Swiggy
Swiggy was able to appeal to the large target market and the features, ages, and attitudes of these audiences varied. Looking at the size of the market in India, Swiggy has a large population to target but its primary and ideal target demographic is between the ages of 18-35.
Swiggy target students at the college, working professionals or businessmen who have a nice lifestyle and who live in posh locations.
Positioning in the Marketing Strategy of Swiggy
Swiggy not only made the food delivery an extended arm of restaurants and made a good profit from this company. Swiggy’s key marketing tool is an app that helps clients get the food they want, wherever they want.
All the marketing efforts made by my Swiggy have helped to build the impression that Swiggy makes life simple and comfortable for its customers and offers the best customer experience and strives to please both the partner restaurants and the customers with the services.
It’s going to revolutionize how people consume their food. This has the slogan “no customers go hungry” and with a click of the button lets customers connect to their favorite restaurants.
Distribution under the Marketing Strategy of Swiggy
Swiggy has the plan to distribute the Hyperlocal product. It has a plan to diversify distribution. It aims not only to render the food distribution, but also to establish a distribution network for medication, pharmacy, gift shops, and flower shops and capture a greater share of India’s supply market. Swiggy has recently launched Swiggy Groceries and Genie Delivery.
This is the idea of “Swiggy shops” that will be unveiled at Gurugram for the first time and has already partnered with 3500 shops. It also aims to expand its services across all of India’s emerging cities and capture market share.
Swiggy has a business plan to acquire restaurants and its own supply-partner fleet. Swiggy has a dual relationship arrangement as it helps both consumers and restaurants receiving orders for food.
Brand value in the Marketing Strategy of Swiggy
Swiggy has mastered the idea of taking the food & products to the consumers. Swiggy has become extremely popular among India’s millennial customers. Swiggy has created a good brand value in terms of food delivery in India.
Swiggy now plans to set up kitchens for higher sales jointly with restaurants. It also aims at extending its services to Swiggy stores and increasing its supply business to include other goods. Restaurants claim to be having 50 percent of their order from Swiggy and 20-25 percent from Zomato, according to a survey.
Swiggy obviously has more market share in the distribution sector and is one of India’s highest-funded startups. The Swiggy brand name has become a synonym for fast food in the mind of the consumers and Swiggy’s expanding company will prove to be a successful strategy.
Competitive advantage in the Marketing Strategy of Swiggy
The sharp emphasis on logistics: Swiggy seeks to manage the entire supply chain of the experience of the consumer and this approach has helped to prevail in the market place. Swiggy has done a lot of things well and one of them is an outstanding emphasis on the operation’s logistics.
From the outset, Swiggy realized that cracking the distribution market was creating a robust logistics network out of which Swiggy developed a sound and sustainable business model.
In 2014, Swiggy was a late entrant in online food supply and ordering rooms, but it has now become a billion-dollar business, and Zomato is now playing catch up. Swiggy has its own growing fleet of supply partners and the fleet is growing with 1.25 lakh partners currently operating.
This has helped Swiggy to fulfill its promise of delivering food to customers with just one tap within 30 minutes. Swiggy recently introduced the Swiggy Access kitchen, the ready-to-occupy kitchen provided to restaurant partners rent-free access with all the required amenities, Swiggy aims to provide restaurant owners with assistance in optimizing their kitchens with regard to demand forecasting, stock planning, and order editing, etc.
Technology focus on the Marketing Strategy of Swiggy
Swiggy is a food technology business with a key logistics platform, and Swiggy leverages heavily technology to help clients and delivery get the best service. All conditions are analyzed with the aid of data analytics such as traffic conditions, estimate the restaurant preparation time based on the number of orders, the position of delivery managers to smartly deliver the delivery time, and pledge to end customers.
The restaurants of the partnership get a snapshot of all the main operating indicators and all the financials. In the context, Swiggy has analytics engines that mine customer data to assess tastes and help Swiggy’s restaurant partners with the right ones.
Competitive analysis in Swiggy’s marketing strategy: The Indian food supply market is estimated at $15 trillion, and is expected to rise exponentially. It has now grown into a very competitive market. Zomato and other start-ups like Foodpanda and Faasos face intense competition from Swiggy.
Zomato has also grabbed Swiggy’s market share by providing the price-conscious Indian customers with cheaper and better quality food. Google also released its distribution app called Areo in Mumbai and Bangalore.
Food Delivery Market is getting tougher for Swiggy. Both Swiggy and Zomato have increased their spending by offering bonuses and discounts as they compete for dominance. Swiggy’s current burning is estimated at over $16 million, and Zomato’s at around $17-18 million.
To remain ahead of the competition Swiggy needs to be more innovative with its business model.
Swiggy has two main clients, the people who order food through the app are the restaurants through which it receives fees. The key groups of consumers are those people who don’t want to go out to eateries and restaurants to buy food.
People who want to buy food in their doorstep and want it delivered online. The recent expansion of the company is through grocery stores, electronics, flower stores, and gift shops.
Promotion Strategy: Swiggy is now a well-known brand, not just because of its quality services, but also because of its excellent social media strategy. Swiggy has 174 K followers on Facebook itself which is the largest among the competitors. Every Swiggy campaign is exceptional because it is highly engaging and interactive.
Swiggy Facebook posts are fun, quality, and based on humor. Campaigns like #SuperSwiggy, #EatYourVeggies, #EarnYourCheatMeal uses witty one-liners and punch to express the notion of eating safely. Swiggy has also used influencers to commercialize its services.
Swiggy also shows the number of offers, incentives, and recognition to build consumer brand loyalty.
Swiggy Customer Relationships
Swiggy has good relationships with customers. It offers active customer service 24/7 to assist clients anytime, wherever. Uses the services of ‘Customer Support Chat.’ It also has active social media accounts to which it promptly responds. It has developed excellent ranking, analysis, and feedback systems to keep in touch with its clients and partners.
Swiggy’s main resources
As it has relationships with local restaurants and stores, its primary resources are local partners.
To name a few, Swiggy’s bestselling restaurants include Biryani Blues, Keventers, BombayKery, Wok Paper Scissors, and Yogisthaan.
The main tools to handle logistical and operational processes are the service networks and their own human resources. Software is also another tool that it uses to run its software.
Swiggy Key Activities
The main activities include:
- developing relationships with restaurants and retail stores.
- Hiring vendors and service providers (full-time / part-time / freelancers).
- Acquisition of clients and the care of their orders.
- Managing the process of shipping and charging.
- Functional Operations Management.
- System upgrade and IT infrastructure development.
- Handling of consumer and company questions and concerns.
Swiggy’s Key Partners
Swiggy’s Key Partners are Restaurants and Shops – Restaurants that want food delivery systems to offer food on-demand to customers. Other than eateries, Swiggy’s main partners are shops (such as pharmacy, grocery stores, etc.) that as Swiggy’s partner wishes to sell their own goods and services.
Few of Swiggy’s partners are famous groceries. While many online pharma players including MedPlus, PharmEasy, Medlife, and Myra are now collaborating with them on the exploratory talks.
Swiggy’s Cost Structure
Swiggy’s day-to-day operations will bear costs and expenditures. Its key sources of costs are:
- payroll expenses for its staff and the supply partners.
- It also contains perks and rewards Swiggy provides restaurants with.
- Giving about 2-3 percent fee, for example.
- Costs of implementation and the creation of websites.
- Costs to operate and maintenance fees.
- Costs on administration, advertisement, and marketing.
- Additional costs offered to consumers in terms of promotional deals and benefits.
- Costs for kitchen base construction and maintenance.
- Returns, deductions, and costs vary.
Swiggy’s Revenue Model
How does Swiggy make money?
We need to evaluate Swiggy’s Business Model to get a definitive response. Swiggy’s revenue sources are also growing considerably as it extends its market plan and activities day by day.
There are currently primarily 7 revenue sources from which Swiggy makes money:
- Delivery charges: its customers are the first form of the revenue stream that Swiggy receives. Customers will be paid a nominal delivery fee from Rs. 20 to Rs. 40 on orders below a maximum amount of Rs. 250. Swiggy raises the charges during high demands of the order or extreme weather.
- Commissions: Swiggy is gaining another major part of the contract revenue stream. It receives commissions from restaurants to produce sales leads through Swiggy’s fleet and deliver their food products. Restaurants will pay 15 to 25 percent for any order put on the website of Swiggy.
- Advertising: Swiggy receives advertising revenue in both ways: Banner Ads – Swiggy promotes and shows advertisements from various restaurants on its app. Restaurants, linked to various regions, are granted greater exposure through the promotion of banners and the paid price for the page displayed.
- Restaurant preference ranking: Swiggy pays premium rates for restaurants to offer them preference in the list of restaurants eligible. If a restaurant wishes to be placed higher on the list, it will pay significantly.
- Swiggy Access: Swiggy came up with its Swiggy Access facility, a completely new idea based on the Cloud Kitchen model. It provides its restaurant partners with ready-to-use kitchen spaces in those places where they don’t work. With the goal of getting food closer to its customers, Swiggy helps restaurants to set up their kitchens in new locations and allow the food they obtain at the fastest pace. With about 25 percent of sales anticipated in 2 years, Swiggy is extending its cloud kitchen model to include 30 onboard restaurants with 36 kitchens into four new cities.
- Swiggy Super: Swiggy launched a subscription scheme for consumers called the ‘Swiggy Super’ Swiggy provides free delivery unconditional for all orders above 99 to Swiggy Super Users. Upon subscribing to this plan, consumers during unreasonable demands will not have to pay the spike pricing.
- Affiliate Profit: Swiggy receives income through collaborations with many financial institutions such as HSBC, Citibank, and ICICI Bank. This affiliate revenue is a recent and effective income stream of which all parties profit. It also helps clients to obtain several credit card deals from certain financial firms.
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