LB5202 Marketing and Management: Examining Price Mix on Zomato

This report analyzes the impact of the price mix on Zomato, an online food delivery service, specifically within the Australian market. It begins with a literature review of the price mix, a key component of the marketing mix, and its various facets including price transparency, price discrimination, and its role in the commercial concept of pricing. The report then applies these concepts to Zomato, examining how the company utilizes pricing strategies to attract customers, establish market presence, and compete with other food delivery services. It highlights Zomato's implementation of price transparency, discounts for new customers, and the importance of pricing in Zomato's success, while also acknowledging the limitations of applying the price mix theory in its entirety. The report concludes by summarizing the key findings, emphasizing the significance of pricing in Zomato's growth and its alignment with the marketing mix principles.

RUNNING HEAD: MARKETING AND MANAGEMNT
An essay examining the implication of the Price mix on the Zomato
Student name:
Student number:
Submitted to: Dr David Gration
Subject assessment: Marketing Management
Date Submitted:
Work count: 1500

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Contents
Bibliography....................................................................................................................................8

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The research report aims to review the marketing mix theory topic of ‘Price mix’ and its
relation with Zomato. It includes the application of specific marketing mix theory with respect to
Zomato food delivery service in Australia. A marketing mix is a group of variables or set of
actions taken by the company for the promotion of its product and service. There are 4Ps that
form a crucial part of the marketing mix. It includes Price, Product, Promotion and Place
(Londhe, 2011). These marketing mix variables play a vital role in the performance of the
business. The main aim of the discussion is to pour light on the price mix. According to Philip
Kotler, ‘price is the amount of money charged for a product or service’ (Kotler, 2019). The
discussion provides an opportunity to practically apply the knowledge gained in respect of
marketing mix.
According to Chai Lee Goi, price forms the origination of the marketing mix. It is a
theory that assists managers in responding to the customer’s needs. It supports in framing the
long-term strategies and short term plans for the business. It suggests that price forms the
creation of other three p’s including product, place and promotion. However, the concept of four
P’s has received criticism as it laid emphasis on the production rather than a customer.
Regardless of criticism, it has been marked as one of significant concept in marketing. The
author poured light on the significance of all the four P’s marketing mix (Goi, 2009).
It is evaluated that various authors have a diverse approach with the price mix. By
emphasizing on the price mix, it states that price attains the characteristics of being transparent,
discriminatory and customized. It evaluates that price transparency allows the customers to
inquire price regardless of time. Price transparency is the ability to determine the price of the
commodity and service regardless of time. The theory suggests that Price discrimination allow

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the companies to charge diverse price from each customer for similar goods and services (Goi,
2009).
According to marketing mix theory, propose by Muhammad Tariq Khan, it states that
pricing is based on certain customer factors and thus it is used as a strategy to appeal to specific
customers. It suggests that price mix forms the part of the commercial concept. It means price
forms a major part of earning profit rather than providing service to the customers. It is also
regarded as a key to modern marketing. It is the adoption of methodology that assists the
brands in connecting with their potential customers. It is also included in the service marketing
mix. It is the integration of several marketing activities that an organization adopts to offer
intangible services to the customers. It states that price mix is also used to provide intangible
services to the customer (Khan, 2014).
According to S Goyat, price mix does not have much relevance in today’ world. It is
stated that Personalization must become the basis of marketing practice to gain long-term
success. It is that segmentation and differentiation form the basis of successful positioning of the
business. It is evaluated that customer choice is based on the shop picture developed by the
customer but not on the price mix. Additionally, it states that the internet can fulfill the role of
elements of the marketing mix. It focuses on reducing the traditional marketing mix approach
(Goyat, 2011).

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Figure 1: Zomato demand in Australia
Source: (RoyMorgan , 2016)
Zomato is an online food delivering company. It is an Indian multinational company and
it had also marked its presence in the Australian market (Zomato , 2019). It had entered the
global online food market in the year 2012 (Business Standard , 2019). Within a short passage of
time, it has gained the attention of the large mass of people (Whitehead, 2016). It is assessed that
approximately 5.3% of the Australia population uses Zomato. It is because it is aligning with the
culture and food habits of the people in Australia (Whitehead, 2016). Additionally, it has also
gained popularity among the Australians because of an individual’s long working hours, cooking
habits, lack of interest in cooking and many more. It is examined that Zomato is aligning with

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the pricing concept of discussed marketing mix theory. As mentioned above, Zomato is an online
food delivery service, it allows transparency in its service price. Zomato allows its users to check
the price of the products through its website. Further, it provides the facility to its customer to
enquire the quantity and price of the delivered food product (Sparta, 2019).
It follows the aspect of price discrimination. It is evaluated that Zomato charges diverse
prices from different customers. It is assessed that it charges subsequently low price from its
irregular or new customers (Deals Shutter , 2019). It offers multiple discounts to new customers
to enhance its potential customers. Additionally, to attract new customers and generate more
loyal customers it provides attractive offers and coupons (Raman, 2018). It is evaluated that it
charges diverse pricing based on certain customer factors. It is known that it has taken the use of
price mix to establish a market in Australia. As mentioned above, Australians prefer ordering
food and this factor has a major effect on the pricing of the Zomato service. It charges nominal
pricing and also regards pricing as the commercial concept (Sparta, 2019).
The multinational company aims at achieving a higher profit in the Australian market. In
order to diversify its market, it has taken an initiative of entering in other countries as well
including the United States and Dubai (Julka , 2015). Through the effective use of price mix, it
has fulfilled the modern marketing aspect. It provides its customers with a diversified range of
choice in respect of food and food outlets. With the usage of price mix, it has provided intangible
services to its customers. It provides its customers with the delivering service at their doorsteps.
It also provides the service of self-pickup to its customers (Bagla, 2017).
However, the theory also suggests that price mix does not attain much significance in
today’s world. This is not appropriate as product and service price still plays a vital role in

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today’s competitive world. Zomato offers its services at an appropriate price in the Australian
market. Its pricing strategy has helped the company in establishing its market in Australia.
Zomato does not use any personalized service to attract its users. In the absence of personalized
service, it has received recognition and fine demand for its food delivery. Additionally, the
pricing strategy assisted the company to retain loyal customers (Khanna, 2015).
Its success is not determined by its segmentation and differentiation approach but rather
they are just the major aspects of marketing planning. Its affordable pricing has helped the
company in establishing its market. It is evaluated that each customer has perceived a diverse
picture of Zomato. Thus, it suggests that the shop picture does not attain many roles in attaining
the customer demand but rather pricing has a major effect. It is assessed that the internet has
played a vital role in Zomato as it helped the company in attracting more demand. However, the
internet alone has not benefitted the Zomato in establishing its market but its effective and
attractive pricing also attains a key role for Zomato in the Australian market (Sparta, 2019).
The discussion is summarized on the title ‘Marketing and Management’. The above
discussion concludes that price mix is an effective marketing tool that plays a key role in the
business process of the company. After comparing the findings of the literature review on pricing
mix, with the real-world case study of ‘Zomato’, it is assessed that there are several similarities
between the price mix theory and Zomato. There is a similarity of price transparency, price
discrimination, commercial concept, service modern marketing, service marketing mix and
provides intangible service. However, it also faces dissimilarity in respect of many factors
prescribed in the marketing theory. It is suggested that price attains great importance among the
customer. It is evaluated that segmentation, differentiation and internet alone have not provided
success to Zomato but its pricing has a key role in its growth in the Australian market. Thus, it is

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concluded that all the aspect of marketing theory does not fully applicable to the Zomato
company.

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