Problem statement

Understand the food delivery market in India and other trends through primary and secondary research.

Zomato Based on your understanding of the customers and market landscape, create a product roadmap on how
Zomato can improve the metric “Revenue per customer per month”. Guidelines on completing the
assignment:

Product 1. Market understanding will be critical in doing the assignment, so invest some time in secondary research,
and if possible primary research as well

roadmap 2. You can make any assumptions that you feel are relevant but pls do state them clearly in your document
3. We appreciate a good balance of breadth and depth in the recommended solutions
4. We expect the assignment to be completed in 3 days from the time it is shared
5. You can use either a word document or a slide deck to articulate your plan
A medium-term product roadmap to solve the problem is the expected deliverable
Contents

1)Understanding business goal

2)Zomato operating metrics and user personas
3)Primary research findings
4)Order journey
5)Product solution and roadmap
6)Prioritization
An increase in revenue per user per month can either be achieved by increasing order
frequency or AOV – the other options are company level strategy changes

2
Out of the 5 levers
1)Not considered as
Increase order frequency higher
per customer
commissions can
lead to vendor
dissatisfaction
3
2)Considered
Increase GOV per
customer Increase item values in an 3)Considered
order 4)Not considered as
Zomato pro
4 program already
Revenue per user per offers free delivery
month Increase AOV per order Increase delivery charge 5)Not considered as
one of the primary
1 drivers for online
5
food ordering is
Increase commission per
order
Decrease discounts per discount
order
5% of the customers of Zomato contributes to 34% of the orders; 18-35 years old are
the top users – majority of them order for just one person
Revenue / user / Monthly orders
Revenue MAU AOV
month per active user
₹ 26.3k cr 1.7 cr ₹ 407 (FY 23)
₹ 1,289 3.2

Just 5% of the users contribute more Zomato food delivery service is primarily targeted towards age 18-35 with a high
than a third of the orders on zomato concentration of metro cities

Customer vs orders groups Bloomers Young adults Professionals Family

Age 18-22 22-26 26-30 30-35
1%
1% 13% Working Well settled
3% Occupation Student 1st Job
professional working professional
6%
16% Family size Single Single 1-2 3-4

66% Lives at home / hostel –

Lives in a
food is either arranged Lives in a shared
shared flat. Food Lives with family.
Food by parents or by hostel flat. Food is
95% is arranged by Food is either self-
requirements owners. However, likes to arranged by either
either cook / tiffin cooked or by a cook
binge eat and order food cook / tiffin service
service
from outside

Ends up ordering on
2-3 a week –
Likes to order in a special occasions,
Mostly on Sunday
1-2 a week when mess / lot. Might stretch to weekends and
Customers Orders Ordering habits when cook is on
home food is not great 5-6 times a week desserts. Might order
leave / Friday
Less than 50 50-80 basis discounts a dish during
and Saturday
weekdays
80-100 100+
Primary research – a total of 25 personas were interviewed for the study; Age group of
25-30 with an income of 15-25lpa was given highest weightage

What is your biggest pain point Which platform do you prefer the What is the biggest pain points
with respect to your food most with these apps

I order from the cheapest option. Takes too much time to order –
29 years old single male Keeping a cook is not feasible and
However, I prefer Swiggy / Zomato so many discounts / offers, food
living alone in Kolkata. getting expensive as I live alone.
over the company apps as I options, ETA to consider it is like a
Earns around 25-30 lpa Managing groceries is also tedious
remember the UI flow well puzzle

I am indifferent and mostly

dictated by any coupon which I I am indecisive most of the times
27 years old single female I want healthy food, but my
have received. Also, as I am very and the myraid of options makes it
living in Bangalore. Earns maid doesn't know how to cook
particular about food, I do even more difficult to finalize an
around 15-20 lpa many options
complaint a lot - Swiggy gives option
refunds faster

35 years old male with a I started off with Swiggy as they

My kids are very fuzzy eater.
family of 2 kids and have a more friendly UI. As I Order delays are very frequent as I
I promise them ice creams /
earning wife living in Noida hardly order, I continue to use only mostly order on Sunday nights
sundaes to make them eat food
Earns around 40 lpa Swiggy
Revenue per user can either be increase by increasing the AOV or by increasing the
ordering frequency

Insight Initiative Initiative description Adopters Metrics

Retention
Ordering frequency
User should be incentivised to order daily / higher Introduce a monthly meal plan Professionals and
Monthly meal plans AOV
frequency similar to for eg. How they book cabs with themes young adults
Contribution margin of
order

Retention
Giving coupons which expires in the
Customer sticks on the app for a long time and is a Bloomers and young Ordering frequency
Retention coupons next few days. In case of refunds,
bargain hunter adults Contribution margin of
give cashbacks / send free desserts
order

The numerous combinations leads to poor customer

An item wise search without going Retention
experience which manifests in the customer Item wise search All
into the restaurants Ordering frequency
choosing not to open the app in the first place

There is not much activity on the cart page except AOV

Give option to create a meal at a Professionals
offers which at times are not utilized because of Meal crafting Contribution margin of
discounted cost and young adults
lower AOV order

Add loyalty points post every order

Retention
Customer has no reason to be loyal to a certain app which can be redeemed on Bloomers and
Loyalty engine Contribution margin of
as promotional offers can be different subsequent orders / zomato land young adults
order
passes
Revenue per user can either be increase by increasing the AOV or by increasing the
ordering frequency

Insight Initiative Initiative description Adopters Metrics

Retention
Ordering frequency
User should be incentivised to order daily / higher Introduce a monthly meal plan Professionals and
Monthly meal plans AOV
frequency similar to for eg. How they book cabs with themes young adults
Contribution margin of
order

Retention
Giving coupons which expires in the
Customer sticks on the app for a long time and is a Bloomers and young Ordering frequency
Retention coupons next few days. In case of refunds,
bargain hunter adults Contribution margin of
give cashbacks / send free desserts
order

The numerous combinations leads to poor customer

An item wise search without going Retention
experience which manifests in the customer Item wise search All
into the restaurants Ordering frequency
choosing not to open the app in the first place

There is not much activity on the cart page except AOV

Give option to create a meal at a Professionals
offers which at times are not utilized because of Meal crafting Contribution margin of
discounted cost and young adults
lower AOV order

Add loyalty points post every order

Retention
Customer has no reason to be loyal to a certain app which can be redeemed on Bloomers and
Loyalty engine Contribution margin of
as promotional offers can be different subsequent orders / zomato land young adults
order
passes
Revenue per user can either be increase by increasing the AOV or by increasing the
ordering frequency

Insight Initiative Initiative description Adopters Metrics

Retention
Ordering frequency
User should be incentivised to order daily / higher Introduce a monthly meal plan Professionals and
Monthly meal plans AOV
frequency similar to for eg. How they book cabs with themes young adults
Contribution margin of
order

Retention
Giving coupons which expires in the
Customer sticks on the app for a long time and is a Bloomers and young Ordering frequency
Retention coupons next few days. In case of refunds,
bargain hunter adults Contribution margin of
give cashbacks / send free desserts
order

The numerous combinations leads to poor customer

An item wise search without going Retention
experience which manifests in the customer Item wise search All
into the restaurants Ordering frequency
choosing not to open the app in the first place

There is not much activity on the cart page except AOV

Give option to create a meal at a Professionals
offers which at times are not utilized because of Meal crafting Contribution margin of
discounted cost and young adults
lower AOV order

Add loyalty points post every order

Retention
Customer has no reason to be loyal to a certain app which can be redeemed on Bloomers and
Loyalty engine Contribution margin of
as promotional offers can be different subsequent orders / zomato land young adults
order
passes