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Launching Zomato in a new country
Zomato is an online food delivery app, where cloud kitchens/ restaurants can list their menu and buyers can choose from all the available menu and place their order by making the payment.
What problem is this solving - ordering outside food at the comfort of your home, lots of available food options, food delivered at door step
Market research -
We need to understand the user behaviour in terms of likeliness and frequency of eating outside both at a national level and then split into regional level.
We also need to understand the internet quality, smartphone coverage, digital payment availability and adoption and tech savviness of the users
We also need to understand the local sentiments, eating habits and most widely used language in the country/ region
Also, we need to understand are there any existing players already available in the market and what is their approximate market share of the total user base
For this discussion, let's assume the country has a good smartphone coverage overall, but differ in terms of regions. Internet quality and tech savviness differs from region to region
Also, a common official language is spoken across most parts of the country
Apart from this, there are currently no existing players in the market
Value proposition (for buyer) - An online food delivery app created in your own language where you can order and eat outside food at the convenience of your home without the need of going outside.
Benefits - Convenience, Unlimted options to choose from, Affordability, Faster delivery
Value proposition (for restaurant) - Larger audience reach at no extra cost, increase in ADO, no commissions for order transactions, no need of delivery partners from restaurant side
Benefits - Convenience, Affordability, Higher revenue, Lower cost, Higher margins
Strategy -
Launch MVP in one Tier-1 city, starting with few densely populated areas and then extend to rest of the city. This will be followed by gradual scale up across the other Tier-1 cities and then rest of the country based on the user demographics.
The app needs to be in native langauge both for the consumers and for the restuarant partners and assisted by an AI bot to answer queries or help navigate through the app flow
Buyer onboarding - Partner with telecom companies, to do zomato launch announcements on their website, data offers for placing orders etc.; Partner with google, meta to show zomato ads on their websites; Bill boards, TV advertisements, targetted email invites for early access, etc.
Partner onboarding - Reach out to big to medium scale restaurants in the initial phase, offer zero commission in the initial phase, targetted ads, sms, email notifications to targetted restaurants, etc.
Driver onboarding - Partner with local drivers who are interested in earning money per order delivery either by building 1P or partnering with 3P fleet
Launch plan -
Pre launch -
- Align with marketing team on the launch plan and marketing channels and plan
- Align on the in-app banner, promotions, etc. with marketing team
- Align on the ops/ support team wrt training on the objection handling and driver sourcing and training as well
- Align with engg team on the deployment prerequisites
- Pilot testing with 1-2 restaurants and early adoption users
- Monitoring dashboard in place
- Production deployment for all MVP location users
- Production sanity
- Public launch announcement
- More in app notifs, sms, push notifs, email notifs, etc.
- Influencer/ Celebrity campaigns
- Metrics monitoring -
- % app downloads
- % logins
- # restaurants registered on the platform
- % users who placed atleast one order
- % users who placed multiple orders
- % On time orders
- DAU/ WAU/ MAU
- D7/ D30 returning users
- ADO
- AOV
- ARPU
- Revenue
- Margin
- Consumer NPS
- Restaurant NPS
- Driver NPS
- User feedback
- Post mortem
- Continuous improvement
As a PM -
What is the goal here? - To expand the business to new geography
First of all I will understand the target country in terms of following 5 Cs
Aspects - 5C
- Company
- Payment methods in use
- potential of growth
- Customer
- Is the market big enough?
- Is customer willing to pay extra for convenience
- What are the eating habits of locals
- Traditions of eating and food
- How frequently locals visit restaurants
- People behavior around eating outside - quick bite, or long talks before food, or need special serving for foods etc.
- Competition
- What sort of competition is there currently. Do they even need restaurant aggregator?
- Context
- What economic factors come into play - Like spending habits, spend on food, policies on instant delivery, traffic rules for delivery partners
- Collaborators
- What sort of government regulations are there on food and delivery business.
- How restaurants work there
- Food delivery economics - Delivery partners availability, Frequency of ordering foor and dining in
These are to understand Macro Economics - to see if the country is a good option for Zom
Set target user personas - For example - Young adults - innovators - Who are tech savvy and ar open to try new things.
Once all this is understood -
I will work on 4 Ps to make my offering suitable for target market
Product -
Localization of application and website
onboarding of restaurants
Setting up of delivery fleet (local partners)
Setting up of local payment methods on app
provisions of local trends on app - Like mandatory tips etc if any
Price
Start with value pricing initially
Promotion
Discounts and offers to attract customers
Channels to reach to audience - Social media,
SEO and SEM
Media, news
Place
Which city to start with initially
2, 5 year plan for growth
Once this is sorted, I will start onboarding restaurants and accordingly start service. Along with that I will start campaigns and referral programs for PLG. I will also optimize most famous channel for my target market.
I will set up benchmark for KPIs to understand if the plan has been successful in first 3 months or there is something that needs to be done further.
Actively listen to users and make sure you set the targets.
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