International Marketing Report: Zomato's Global Strategy and Analysis

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This report provides an executive summary of Zomato's international marketing strategy, focusing on its potential expansion into the German market. It begins with an introduction to international marketing and Zomato's business model, including its evolution and current global trends affecting the food delivery industry. The report then analyzes opportunities for Zomato in Germany, considering political, economic, social, and technological factors. It also examines existing consumer behavior towards competitive products in Germany. A detailed marketing strategy is proposed, including vision, objectives, internal analysis, marketing mix (product, price, place, promotion), and implementation considerations. The report concludes with a summary of key findings and recommendations for Zomato's international marketing efforts.
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International Marketing
Management
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Executive Summary
International marketing which means performing marketing activities of a organisational on
international level and at international markets. This international marketing has been discussed
in the report which will include what are the factors which allow company to internationalize its
products and services. Along with this file also included some of the opportunities available to
companies and what is the consumer behaviour related to a market place.
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Table of Contents
INTRODUCTION...........................................................................................................................5
MAIN BODY..................................................................................................................................5
Evolution of Zomato and current global trends affecting Zomato..............................................5
Opportunities for Zomato in Germany........................................................................................6
Existing consumer behaviour towards competitive products......................................................8
Marketing Strategy......................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
International marketing refers to activities of marketing which are carried out in
international market with purpose of expanding the products and operations of the company.
This report will discuss about international marketing of Zomato, this is a restaurant aggregator
and food delivery start up. The company was started 2008 and already is serving and operating in
24 countries at international market. This report will discuss about features of Zomato related to
globalisation and current trends in food industry. Later plan will be made in context of its further
expansion in another international market considering opportunities of the market and consumer
behaviour for its competitive product in the selected international market.
MAIN BODY
Evolution of Zomato and current global trends affecting Zomato
Zomato was started as Foodiebay in 2008 and changes its name in 2010. Services of
Zomato are restaurant search and Discovery, Online Ordering, Table Reservation and
management, POS system and subscription service, menu and user-reviews of restaurant. The
company started is headquartered in Haryana, India. In 2011 company started expansion of its
service across India in major and big cities and later in 2012 Zomato expanded its services in
international markets. Its expansion started from UAE and later expansion gets increased and
Zomato started operating in UK and later in 2013 company started its operations in New Zealand
(Raman, 2018). Zomato acquired Seattle based food portal Urbanspoon and this allowed firm’s
entry in US market. There are various reasons because of which Zomato managed to expand its
international business and one of the reason is that Zomato is available in several languages and
this make it easy for users ffrom various languages to easily use. The data that Zomato avails is
also another reason for its successful global expansion as of 2019 Zomato operates in 24
countries and operates in 10000 cities. This suggests that Zomato which started at local level
expanded to international markets and made it services internationalized.
Current Global Trends to affect Zomato
Millennial Trend
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This is the key driver affecting business of Zomato. This trend is millennial trend and most of the
food service and delivery companies are focusing on millennial as their priority customer. The
reason for this is that as compared to other generation millennial audience spend their highest
budget on prepared food.
Modern Delivery options
This is another trend that affect and can affect Zomato in future as developed and technologically
advanced countries adopting several new ways of delivering food through robots, drones and
parachute (Prabhu and Dongre, 2018). This delivery options contribute in faster delivery result in
customer satisfaction.
Customer service
Like all other businesses focusing on customer service and satisfaction, food delivery business is
also affecting from that. Customers are willing to get their order as soon as possible and this is
why it has become important that Zomato delivers in promised to time to maintain customer
satisfaction.
Big Data
Data integration and availability has changes the entire scenario for business operations. bid data
also affected Zomato and similar businesses as they have knowledge about traffic, impact of
temperature on food products, integration to avail faster delivery and purchasing history of
customers. Data helps in improving customer service and also allows benefit to customers as
they can be provided various offers and this also works as marketing.
Opportunities for Zomato in Germany
Zomato is operating in 24 countries and around 10000 cities and in several languages. In
its international expansion Zomato can expand to Germany. Some of the reasons are;
Germany is one of the developed countries in Europe and Zomato success in Germany will
strengthen its competitive position in Europe (Dave and et.al., 2020). German food delivery
industry is strong and profitable as its own companies has acquired various businesses in
international markets. But there are several other factors which requires consideration before
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selection of particular international markets these are, political, social, economic and
technological factors. These factors provide threats and opportunity to businesses and this is why
its analysis will help in identifying opportunities available to Zomato in Germany.
Political Factors
Political condition of Germany is stable though the country has faced some turmoil in its
politics because of changes in leadership but looking at the history this again will become normal
and favourable. Political factor is an opportunity as there is less political unrest which may affect
Zomato negatively.
Economic Factors
Germany is developed country and their GDP and per capita income is high and this is
why Germany is a country which offers opportunity for Zomato (Chin, Kam and Goh, 2019).
Developed countries often have high rate of spending and this is a opportunity for Zomato along
with busy lifestyle in developed countries is also advantageous for Zomato. Developed country
along with developed and strong economies also provides stable and qualitative infrastructure
and this is also opportunity that Zomato will be able to operate effectively.
Social Factors
This is concerned with people of Germany and what they think about such services. In
this regard Germany is one of the best opportunities for Zomato as German people has positive
lookout for such services and busy people prefer that they can order food at their place. Germany
also has some of the biggest food service and delivery companies.
Technological Factors
Technologically Germany is advanced and technological factor is completely favourable
in Germany. This is an opportunity for Zomato that they will be able to efficiently operate
because operations and functioning of Zomato is based on technology (Zambetti, Lagori and
Pinto, 2017). IT, AI and machine learning in every sector of technology Germany is advanced
and this is a positive factor for Zomato.
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Existing consumer behaviour towards competitive products
Consumer behaviour is one of the most important factors affecting the success of the
product and service. This becomes more important when expansion is to take place in
international market. Germany is home of various companies which are involved in online food
ordering and delivering services. Some of the big companies which are domestic competition for
Zomato in Germany are Delivery Hero this is a global online food ordering and delivering
market place. Though Delivery Hero is not only limited to food but food is one of the offering of
Delivery Hero (Reddy and Pentyala, 2019). Lieferando is another competition for Zomato in
Germany this holds major market share in the industry is Germany. Other competitors of Zomato
in Germany are LIeferheld, Pizza DE, Deliveroo, Foodora etc.
In relation with consumer behaviour for this competitors it can be said that that on the basis of
gender major customers of these companies are Male, on the basis of age highest number of
customers are from the age 20-25 and on the basis of occupation highest number of customers
are students and Zomato has to consider these factors before starting its operation in Germany.
Marketing Strategy
Marketing strategy will simplify future practices regarding expansion and marketing in
Germany by Zomato.
Vision
To be the best online food service company in the world
Objectives
To gain 10% market shares in Germany
To increase international market share
To increase and improve services of the company in international market
To increase profit by 25%
Internal Analysis of the Zomato
Strength
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Fast Expansion (Zomato has expanded its business fast than and this has enabled it to
take advantage of first mover in many countries)
Design of the app (app can be operated in many languages making it easy to be operated
by various users from different countries)( Wu, 2016).
Marketing (Marketing approach of Zomato is best as it uses comic approach in its
massages and this helps users and audience to connect with the brand quickly)
Weakness
Security issues with the application (security issues with a application of the internet
business is a really big issues and this might affect business and its image in Germany)
Expansion required (funding available to Zomato is enough that company can expand
further)
Opportunity
Cloud Restaurants (cloud restaurants are those where restaurants do not need any
physical space)
Further Expansion (expansion is a opportunity which Zomato can utilize to increase
profit and market share, company also has fund to do that)
Creating Community (Zomato have huge followings and Zomato can create its own
community of its users (Raman, 2018). This can create and increase customers and
become beneficial for the company)
Threat
Increasing Competition (this is one of the biggest threat company can get affected from
as there are various strong competitors like in India Foodpanda and Swiggy are its
competitors)
Marketing Mix
Product
Product of the Zomato is its online food service which includes ordering and delivering food and
along with various other services and Zomato as it increase and expand to Germany its product
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will remain same. Expansion in Germany requires some of the changes as the language in which
Zomato can be operated this have to include German as official language of Germany is German
(Wu and Li, 2018). Along with this application of Zomato also needs to be user friendly and the
way users of Germany prefer. This will attract customers of Germany and will retain them once
they start using Zomato.
Price
Initially Zomato can employ discounts and sales promotion to attract customers. This can be
termed as initial discounts being offered to the customers. This may be in form of first few orders
or they can avail additional benefits on further ordering from the Zomato. Other than this Zomato
to determine its price can adopt competitive pricing strategy in Germany.
Place
Zomato is available to everyone on their mobile and internet but its places are restaurants and
places from where customers get their order (Massingham and Pomering, 2017). This is most
important for Zomato as before starting to operate in Germany Zomato has to establish
integrations with local partners and also find out restaurants and their details like rating by
customers.
Promotion
Zomato has adopted and employed very effective promotion strategy which is able to grab
attention of the customers and along with that Zomato effectively communicates value it
provides to its customers.
Implementation
Once marketing plan has been developed it is followed by implementation. It is not practical and
feasible for Zomato to implement its International Marketing plan to whole country in one time.
In can it is possible this is not right as company will not be able to find out the flaws of the
marketing plan which has been made by the company (Schultz, 2017). The implementation can
be as follows-
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Implementing/Launching Zomato application in Germany – This will be first launched in
selected cities of the Germany. But before actual launch of Zomato in Germany they are required
to implement and apply their promotional strategy to increase awareness in the public.
Promotional strategy of Zomato is very effective and using that strategy they can attract and
increase willingness in audience about the use of the Zomato. They can use its success measures
in other countries like US and UK in Germany to build its brand equity (Schultz, 2017).
Promotion strategy should also focus and feature young age people who are supposed to be
major customers of the company.
Identifying and Analysis- This is important as after launch and operation company needs to
frequently monitor and analyse so that they can find out any fault in their planning at initial level
so it does not affect negatively.
Making changes accordingly- if required.
CONCLUSION
On the basis of above discussion it can be concluded that Zomato has expanded in
international market fast and this has helped it to take advantage of first mover. This report
included discussion over features and what are the factors which has made Zomato a globalised
company and can help it in globalisation. Later opportunities which are available to Zomato were
discussed. Finally consumer behaviour for Zomato was identified on the basis of its competitors.
On the basis of this marketing plan for Zomato was developed.
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REFERENCES
Books and Journals
Chin, J.J., Kam, Y.H.S. and Goh, V.T., 2019, July. Vulnerabilities in Online Food Ordering
Website. In International Conference on Advances in Cyber Security (pp. 350-357).
Springer, Singapore.
Dave, T and et.al., 2020. The Study of Online food ordering Industry. Studies in Indian Place
Names. 40(8). pp.636-649.
Massingham, P.R. and Pomering, A.A., 2017. Introducing Knowledge Management to the
Marketing Mix.
Prabhu, A. and Dongre, R., 2018. Analysis of Customer Attitude Towards Electronic Food
Ordering. KIMI Hospitality Research Journal. 3(1). p.1.
Raman, P., 2018. Zomato: a shining armour in the foodtech sector. Journal of Information
Technology Case and Application Research, 20(3-4), pp.130-150.
Reddy, M.S. and Pentyala, B., 2019. Customer perception towards on online food
ordering. International Journal of Innovative Studies in Sociology and Humanities. 4(2).
pp.102-107.
Schultz, D.E., 2017. International marketing communication as the global marketing change
agent. Strategic International Marketing: An Advanced Perspective. p.117.
Wu, C.W., 2016. The international marketing strategy modeling of leisure farm. Journal of
Business Research. 69(4). pp.1345-1350.
Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social
commerce. Internet Research.
Zambetti, M., Lagorio, A. and Pinto, R., 2017. A network design model for food ordering and
delivery services. In XXII Summer School" Francesco Turco"-Industrial Systems
Engineering 2017 (Vol. 2017, pp. 1-7). AIDI-Italian Association of Industrial
Operations Professors.
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