Abstract

In this article, we have provided an in-depth analysis of Swiggy marketing strategies. The analysis covers all key aspects, ranging from- product, price, place, promotion, people, process and physical evidence. The article also presents the Swiggy competitor analysis, and applies STP framework to identify Swiggy’s target market. Based on in-depth analysis, article provides some practical recommendations that can enhance the Swiggy’s marketing strategy. Strategic management teachers, researchers and students can read this article to learn about the Swiggy’s marketing and promotional strategies. Business analysis and industry practitioners may also find this article useful to gain fresh, and in-depth insights into Swiggy’s business strategies.

1. Introduction

Established in 2014, Swiggy has become India’s #1 online food delivery company in 2023. This article provides an in-depth analysis of the marketing strategy of Swiggy. The article applies the 7-P marketing mix model to understand how Swiggy has achieved enormous success in such a limited time.

Click here to get basic information about the Swiggy, its revenue and key competitors.

2. Swiggy marketing strategy

We have analyzed the Marketing strategies of Swiggy by applying 7-P marketing-mix framework. As the name depicts, 7-P marketing mix framework covers seven key marketing aspects:

2.1. Swiggy product strategy

2.1.1. Product strategy

Starting with the product, Swiggy product strategy focuses on convenience and hassle-free online food ordering experience.

2.1.2. Product mix

Swiggy offers a variety of services. Customers can connect to their favorite restaurants by using Swiggy website or app.

Key services include:

Swiggy and Swiggy Go	Online food ordering and delivery
Insta-Mart	Online grocery delivery
Swiggy stores	One-stop shop to meet the customers’ all home requirements
Swiggy Money	Digital wallet services that allows the customers to store and use money for online food ordering
Swiggy Super	A subscription based service that offers discounts and exclusive deals along with wider variety, and quicker delivery
Swiggy fresh	Allows the customers to order fresh fruits and vegetables

Above product mix targets the online food service customers. Swiggy offers services to restaurants as well, including:

Swiggy Ads	In-app advertising platform enables the partner restaurants to reach their target market
Swiggy Access Kitchen	Provides its partner restaurants a rent-free access to fully equipped kitchens

2.1.3. Swiggy unique selling proposition

Convenient, fast, and reliable online food delivery service with no minimum order criteria

2.1.4. Swiggy segmentation, targeting and positioning

Segmentation	Targeting	Positioning
Demographic segmentation based on age, gender, income Loyalty status based on high or low loyalty Behavioral segmentation based on busy lifestyle, and people seeking convenience	18-35 year old Tech-savvy Students and working professionals Living away from their home town	An app that helps its customers conveniently get the food they want, and wherever they want!

2.1.5. Key takeaway

Develop a unique selling point that sets differentiation basis, and identify a clear target market to whom the USP could be sold!

2.2. Swiggy pricing strategy

2.2.1. How Swiggy does pricing?

Swiggy combines different pricing strategies to attract and retain the Indian price conscious customers. As India is a diverse country, Swiggy adapts its pricing strategy according to the local market needs and conditions.

Key pricing strategies that Swiggy uses are:

• Geographic pricing

• Competitive pricing

• Promotional pricing

2.2.2. Geographic pricing

Swiggy charges different prices in different cities. Its delivery charges, discounts and promotional offers-all vary depending on the geographic area and city.

2.2.3. Competitive pricing

Swiggy also uses the competitive pricing strategy for its services. Both companies almost charge same prices with some variations. Like, unlike Zomato, Swiggy has no minimum order value. However, both companies offer free deliveries with a restriction of:

• Order value > Rs. 200

• Restaurant distance < 10 kilometer

2.2.4. Pricing comparison

Recently, the company is being challenged by a new entrant- ONDC that is charging price penetration strategy. Following table shows a comparison of Swiggy, Zomato and ONDC:

Pricing components	Swiggy	Zomato	ONDC
Platform fees discount	Yes	Yes	Yes
Packaging fee discount	No	No	Yes
Delivery fee discount for all users	No	No	Yes
Flat platform discount on all orders	No	No	Yes
Discount based on order size	Yes	Yes	No

Following table compares the prices of some food products ordered through Swiggy, Zomato and ONDC:

Food items	Swiggy	Zomato	ONDC
McDonalds- Aloo Tikki Burger	₹140	₹140	₹89
BTW- Pav Bhaji	₹210	₹210	₹128
WoW- veg steam momos	₹170	₹170	₹85
Fasees- Reshmi Kabab wrap	₹187	₹187	₹96

New entrants like ONDC compel Swiggy to offer promotional discounts to beat the competition. However, Swiggy carefully uses the promotional discounts strategy to stay away from intense price wars- says Business Insider.

Some customers complain that Swiggy charges higher than existing players like Zomato. To know more about how Swiggy is more expensive than Zomato, click here.

2.2.5. Promotional pricing strategy

Swiggy offers discounts and promotional deals to boost the sales. Here is a glimpse of Swiggy’s latest (June 2023) promo codes and deals:

Source: Gadget360.com

2.2.6. Factors influencing Swiggy pricing strategy

Various factors influence the Swiggy’s delivery charges, including-

• Location

• Delivery time

• Distance

Other factors that Swiggy considers while developing the pricing strategy include:

• Demand patterns 

• Taxes

• Restaurant commissions

• Competition from Zomato and other players

2.2.7. Pricing tactics to boost sales

Swiggy offers various promotional offers and seasonal discounts to boost the sales. Key pricing tactics include:

• Cashback incentives

• Discounts on total purchase cost

• Exclusive deals upon using specific payment methods  

• Swiggy One (subscription based service) offering exclusive discounts upon a specific annual/monthly fee

2.2.8. No minimum order value

Swiggy offers no minimum order value, which means customers can place order with no minimum value limit. This strategy has helped Swiggy to expand its customer base to a great extent.

2.2.9. Delivery fee

In Bangalore, Swiggy offers free delivery on orders above Rs. 250, and charges Rs. 35 for orders lesser than Rs. 250. In other cities, Swiggy charges minimum delivery fee irrespective of the order amount.

Recently, Swiggy has launched Swiggy Genie (to deliver/receive anything). The company charges Rs. 40 for the first 2 kilometers, and then the charges increase/km as per terms and conditions.

To handle the competition, Swiggy tries to keep delivery charges as low as possible.

2.2.10. Key takeaway

Integrate flexibility in pricing strategy. Adapt it according to the market conditions. Align the pricing strategy to the target market needs, and brand’s unique selling proposition.

2.3. Swiggy place strategy

2.3.1. Swiggy place/distribution strategy

Swiggy adopts hyperlocal distribution strategy. The company is integrating diversity in its distribution strategy. Swiggy plans to expand the distribution channels for:

• Groceries

• Gift stores

• Medication

• Flower shops

• Fresh produce

The focus of its distribution strategy is to make the online food ordering quicker and easier for its customers.

2.3.2. Swiggy distribution channels

Swiggy is headquartered in Bangalore, and operates in more than 500 Indian cities. Customer can place their orders through Swiggy’s website or mobile app. Other than ordering through Swiggy online platform, Swiggy also offers convenient pick-up locations.

2.3.3. Swiggy distribution map

Here is the distribution map of Swiggy:

2.3.4. Swiggy distribution level

Swiggy involves ‘0’ distribution level. It means no intermediary is involved, and the product is directly delivered from Swiggy’s platform to the customer.

2.3.5. Swiggy distribution partners

• Swiggy works on partnership basis. The company charges 15% to 25% commission to restaurants. This strategy has helped Swiggy to expand its distribution network, and garner better revenue from commissions.

• Swiggy has partnered with more than 150,000 restaurants to offer a wide range of cuisine.

• In 2023, Swiggy expanded its gourmet service to 31 cities

• Swiggy also aims to acquire the restaurants and develop its own supply-chain fleet.

Findings of a survey revealed that restaurants in Kolkata get 50 percent of online orders from Swiggy.

2.3.6. Distribution challenge

However, a key limitation of Swiggy’s distribution strategy is that it offers limited reach to the Zonal restaurants. While, its competitor- Zomato covers more zonal restaurants in the same area.

2.3.7. Key takeaway

Strengthen ties with the distribution partners to expand the distribution network and widen the market reach.

2.4. Swiggy promotion strategy

2.4.1. Promotional strategy

Swiggy mainly relies on the digital marketing strategies for brand promotion. Digital marketing strategy of Swiggy has five key components:

• Search engine optimization

• Paid advertising

• Email marketing

• Social media marketing

• Online influencer marketing

2.4.2. Search engine optimization

Swiggy uses SEO tactics to get millions of organic visitors. Here is a glimpse of Swiggy’s SEO ranking and positioning:

Source: Buildd.com

2.4.3. Paid advertising

Swiggy also uses paid advertising strategy on different social networking sites that increase the app and website traffic.

2.4.4. Email marketing

Email marketing automation is a key component of Swiggy’s digital marketing strategy. Swiggy regularly sends emails on latest events and happenings to interact and engage with customers. In 2021, Swiggy email marketing campaign set a new record of 7 percent Click-Through-Rate on its extensive user base. Content reuse, updated cases, and all the marketing cases are crucial aspects of Swiggy’s email marketing strategy

In 2021, Swiggy email marketing campaign set a new record of 7 percent Click-Through-Rate on its extensive user base.

2.4.5. Social media marketing

• Swiggy holds strong presence over social media. It has 402K followers over Instagram, 999K followers on Facebook, 196K followers on Twitter, and 206K followers on TikTok.

• Swiggy regularly posts food related themes on social networking sites.

• Swiggy has a mixed bag of topical and funny posts. These posts are lighthearted, and centered on comedy.

• Swiggy proactively monitors the social trends and responds accordingly. For instance, considering the growing health consciousness of people, Swiggy launched campaigns like #EatYourVeggies and #EarnYourCheatMeal that cleverly conveyed the idea of eating healthy.

• Its social media ads are a blend of informational and humorous content that makes an emotional and rational appeal.

Although, Swiggy has successfully launched many social media campaigns. But in 2023, Swiggy got involved in ‘Holi’ ad controversy. The company was criticized for its cultural insensitivity, as it posted an a Holy ad, in which it urged people to not throw eggs on each other while celebrating holy festival.

2.4.6. Online influencer marketing

Swiggy also hires online influencers to promote its brand. Recently, Swiggy partnered with TikTok influencers to launch the Swiggy Star Hunt campaign. Such marketing tactics allow the Swiggy to expand the market reach, and spread e-WOM about the brand.

2.4.7. Key takeaway

Adopt a well-integrated promotion mix that sends a consistent message about brand. Select promotion tactics that match the target market characteristics, and enable the brand to actively interact and engage with the customers.

2.5. Swiggy people strategy

• Swiggy offers a flexible and empowering work environment that allows the employees to ‘order’ their work preferences.

• Swiggy has also opened ‘Swiggy skills academy’ for continuous learning and skills enhancement of its employees.

• Swiggy’s innovative app connects all key stakeholders who are involved in its partnership business model.

However, Swiggy lacks in offering good customer service. Many customers complain that Swiggy has installed a bot controlled message system that lacks the human touch.

2.6. Swiggy process strategy

Swiggy invests on the AI and ML based solutions, and automation of manual mundane tasks, with an aim to enhance the process efficiency.

2.7. Swiggy physical evidence strategy

Physical evidence refers the tangible cues that customers come across when interacting with the business. In current case, Swiggy’s mobile app and website provide the physical evidence.

• Swiggy has a user-friendly and simple interface that packs more data in a way that does not look overcrowded.

• Mostly, customers prefer Swiggy over Zomato due to its user-friendly interface.

• Below image (left- Zomato, right- Swiggy) shows the comparison of Swiggy versus Zomato mobile app:

Source: Nanduri 2021

• Swiggy websites loads quickly.

• The company accepts a variety of payment methods like- wallets, net banking, UPI, cards and cash-on-delivery.

3. Recommendations

• Try to reduce the delivery charges to handle the competition.

• Reduce the restaurant commissions and decrease food prices to handle competition from Zomato and ONDC.

• Expand the reach to cover more cities.

• Expand the zonal restaurants to give more options.

• Integrate cultural sensitivity into advertising and promotional activities.

• Improve customer service by adding the human touch, and avoiding excessive reliance on automated bot system.

4. Conclusion

A well-integrated marketing-mix has played a key role in making the Swiggy a highly successful brand. A well-diverse portfolio, competitive pricing strategy, multiple distribution channels, and efficient digital marketing strategy define the Swiggy’s marketing mix.

Click here to read the Swiggy SWOT analysis.

5. References

Dash, S. (2020, January 24). Swiggy says it’s the most loved brand and doesn’t need discounts. Business Insider.

Swiggy Coupons, Offers: Upto 60% OFF Coupon Code Today | July 2023 – Gadgets 360. (n.d.). Gadgets 360.

A Case Study On Swiggy’s Marketing Strategy. (n.d.).

SEO Wars: Zomato & Swiggy’s SEO strategy to get millions of organic users! – Part 1. (n.d.). Buildd.

Netcore Cloud. (2023, January 15). Swiggy’s Email Marketing Campaign Sets a New Record with 7% CTR on a User base of Millions – Netcore Cloud.

Nanduri, D. (2022b, January 7). Zomato & Swiggy — Experience matters – ThroughDesign – Medium. Medium.