STRATEGIC MANAGEMENT 2

GROUP PROJECT

Submitted to Submitted By – Group 5 (Section A)

Prof. (Dr.) Debadutta K Panda Akshay Kumar Singh (20A1HP022)
Arjun Singh (20A1HP040)
Bipul Banerjee (20A1HP012)
Ridhi Vats (20A1HP025)
Rohit Anil (20A1HP044)

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 TABLE OF CONTENTS
Organizational Structure…………………………………………………………………………..3
Strategic Alliances………………………………………………………………………………...3
Promotional Strategy………………………………………………………………………………5
Social Media Strategy……………………………………………………………………………..6
McKinsey’s 7S Model……………………………………………………………………………..7
Strategic and Structural Alignment………………………………………………………………..9
Recommendations…………………………………………………………………………………9
References………………………………………………………………………………………..10

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 ORGANIZATIONAL STRUCTURE

Zomato has a flat, decentralized and functional structure with CEO Deepinder Goyal heading the
individual functional groups such as HR/Operations, Finance, Logistics and Technology. As we
can see from the above structure, the end decisions are taken by the CEO. The structure has very
few layers between the employee and the CEO and the working of the top, middle and lower level
employees are highly integrated together.

STRATEGIC ALLIANCES
Strategic alliances are defined as the partnerships between the two participating firms by entering
into an agreement of mutual objectives while simultaneously maintaining their individual
independence.

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• Sodexo offers tax-free solutions by offering food coupons to its customers through
employer partners, including numerous public and private sector companies and has an
acceptance network in 1500 cities across India.
• Zomato offers food delivery services across multiple cities in India.
• The strategic alliance between Zomato and Sodexo aims at developing a mutual objective
of accelerated growth in customer base and revenue by offering flexibility in the choices
and conveniences in access to food through Sodexo as a payment option.
• The strategic alliance also provides wider access of multiple cuisines to Sodexo for its
users, allowing it to strengthen and broaden the 100000+ meal benefits consumer network.
• The alliance supports both the firm's organizational strategy of positively impacting
people's lives by providing access to consumers the better places to eat every day.

• The partnership between Zomato and OLA aims at creating a comprehensive, integrated
services platform
• Zomato aims at integrating the OLA API for enabling ease of access to their services to the
customers for dine-out options.
• Zomato intends to integrate services such as booking rides directly to the customer's choice
of dine-out restaurants with seamless integration through this strategic alliance.
• OLA aims to provide restaurant viewing options, food ordering, and reservation features
integrated into their application through a Zomato Micro app.
• Zomato customers will also benefit from extended OLA features such as digital payment
method OLA Money boosting flexibility in overall service choices and conveniences.
• The alliance targets revenue growth and user experience through consumer convenience
and hassle-free mobility for its customers.

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Objective - Customers use the platform to search, search and find a restaurant, seek and write
customer-generated comments, and view photos to order food supply, book a table, and book
payment at the restaurant.

PROMOTIONAL STRATEGY
Zomato uses Google AdWords to run search campaigns. It targets keywords related to groceries,
online orders, restaurant names, etc. It is aimed at users who intend to deliver groceries to them.
In addition, it also launches promotional activities on Facebook and Instagram to target users on
these platforms.

Some promotional strategies that help restaurant owners promote their business online-

Zomato Easy (Quick Value Meal)- Zomato Easy Meal ensures that a high-quality single meal is
provided in a short time. It is mainly aimed at office workers who are eager to eat fast food without
spending a lot of money. On busy working days, you don't have so much time to check different
offers, then decide what to eat, and then wait for your order.

Context-based Ads on the Zomato app- Contextual ads are graphic display banners used to
promote the brand and allow customers to enter the restaurant page when they click on the Zomato
app.

Brand discounts- Offering discounts to potential customers is one of the fastest ways to attract
customers and generate more traffic. For any restaurant, no matter how big or small-the discounts
on the online order market are very effective. If the restaurant is close to universities and offices,
that would be great.

Buy one get one (BOGO)- When promoting restaurants online, buy one get one's promotions are
very common. It offers customers two at the price of one, which means they can get a big discount,
which makes them very happy.

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 SOCIAL MEDIA STRATEGY
In terms of social media engagement, few brands can do this through creative social media
marketing strategies like Zomato. It seems that the company only knows what will happen to the
audience.

Targets Hot News-

In terms of social media engagement, few brands can do this through creative social media
marketing strategies like Zomato. It seems that the company only knows what will happen to the
audience.

Giving Popular Primetime a Foodie Twist- Zomato knows how to attract audiences through its
strong brand strategy. The brand took advantage of the popularity of TV shows such as "Game of
Thrones," "How I Met Your Mother," and "House of Cards."

Comparison Posts-

No matter how much everyone hates being compared, comparing people is an instinct. Zomato
took full advantage of this psychology and created fascinating posts with various comparisons as
a business plan.

Few steps that Zomato considers while using its social media strategy-

1. Always be there for your customer:

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 Our users encourage us, criticize us, suggest that we improve our products, and ask us to
help find the best restaurants near them. We always value listening to what they say and
respond as quickly as possible. This touched them. We have been successfully doing this
by keeping social media internally.

2. Stick to your domain:

Our focus has always been on food and nightlife, and we are expanding it to social media.
Our posts are related to food and nightlife, our product launches, and Zomato updates.
We will not advertise to our customers on Twitter.

3. Be yourself, Be original:
We like to have interesting conversations with our users on social media; it feels like we
are talking to friends, which works best for us.

MCKINSEY’s 7S MODEL
Intro: It is a tool to analyze the firms organizational design by taking into consideration 7 key
internal elements that identify whether they are efficiently aligned and enable the organization to
reach its goals.

1. Strategy:
a. To ensure nobody has a bad meal.
b. The vision is to be a global platform when someone is looking for food locally
c. Discover great places to eat around you.
d. They target young population, working professionals who want to eat out but prefer
home delivery.
e. They also lay an emphasis on technology by having a robust application with top
notch user interface, they are data driven and make use of cloud kitchen
f. They are extremely active on social media and make efficient use in marketing their
services to their target audience with bright red ads and catchy one liner
2. Structure:

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 a. They have a defined hierarchical structure.
b. The restaurants pay Zomato for being featured on the app and the user reviews the
restaurant
c. It provides easy of decision and is also time saving
3. System
a. Their main operation and focus are food delivery. They earn through restaurants
who pay a commission for each delivery, which is then split among the delivery
partner and the organization.
b. They are a listing platform and a restaurant directory. This brings in advertisement
revenue from the restaurants that join the platform.
c. Zomato Gold offers users subscriptions for restaurants too.
4. Shared Value
a. They push themselves during trying times using their skills
b. They don’t take feedback personally; they break it into positive items and figure
things out one by one
c. Employees at Zomato don’t work for Zomato they work with them
5. Skills
a. They aggressively train their employees in soft skills
b. Getting executives accustomed with technology to deal with supply problems
c. Using data to provide better services
d. Training delivery partners on technology, behavioral skills etc.
6. Styles
a. They bring in strong leadership with owning 52% of the market
b. Management is friendly and the employees feel valued.
c. Employees are provided with medical coverage, no probation and notice period, in
office psychiatrist
7. Staff
a. They have more than 5000 employees all over India
b. They have well skilled staff
c. They use multiple ways of hiring

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 STRATEGIC & STRUCTURAL ALIGNMENT

• The strategic alliance between Zomato and Ola signifies a good alignment between the
organization’s structure and strategy as we can see that the flat structure helps in
collaboration between functional teams. This ensures the marketing and promotional
activities being executed in co-existence with the operational business strategy aligning it
with the company’s organizational structure.
• Zomato’s integration of twin features of GPS based order delivery operations presents the
alignment of operational strategy with technological structure.
• The company’s acquisition of its competitors in the Indian economy presents strong
alignment with its long-term strategy.

RECOMMENDATIONS
• Zomato’s strategic efforts towards marketing its brand takes higher revenue lot leading to
a lesser fulfillment of operational and HR strategies such as better employee benefits and
working environments.

• Zomato’s higher emphasis of logistical performance underplays the overall organizational

strategy and hence the company must focus its efforts with specific emphasis on employee
first to realign towards long term strategy of customer centricity.

REFERENCES

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1. Top 6 hot social media marketing strategies by Zomato. (2019, September 3). Think
to Share. https://thinktoshare.com/zomato-social-media-marketing-strategy
2. Promotional strategies for a restaurateur on Zomato. (2019, December 3).
UrbanPiper Blog. https://blog.urbanpiper.com/promotional-strategies-for-a-
restaurateur-on-zomato-74360991144d/

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