Despite having two new competitors in town—UberEATS and Google Areo—Swiggy has seen a 23% increase in new user orders on the back of IPL alone and is unfazed by the competition. The delivery service believes it has created the brand equity necessary to stay ahead of competition.
In FY16, Swiggy earned a revenue of about Rs. 23.59 crore as compared to FY15 where it earned only Rs. 11.59 lakh. An increase in revenue also came with losses. Swiggy’s losses grew nearly 65-fold. Despite this, team Swiggy is showing no signs of slowing down and has seen a six-fold increase in revenue in the last year.
Srivats TS, the company’s VP Marketing spoke to exchange4media about the company’s marketing strategy, competition from technology giants and the IPL.
Excerpts from the interview:
From Swiggy’s Food Premier League to full front-page ads, Swiggy capitalised on the event of the season. How did India eat during the IPL?
We definitely leveraged the consumer sentiment during the IPL through multiple marketing initiatives. We tied up with restaurants to give attractive offers during the days in the cities where the match was being played. We have seen a 23% increase in new user orders and 19% increase in overall orders during the IPL. From a Swiggy perspective, we did the highest ever business ever during the IPL 2017 Final.
What is your marketing strategy to showcase Swiggy’s main USPs?
In the past few months, we have rolled out ATL and outdoor initiatives in cities where we think there is a larger potential to grow or the business is healthy enough to build brand awareness. In Mumbai and Chennai, we have launched many OOH campaigns and print ads that focus on the benefits of Swiggy, which are live order tracking, no minimum order, etc. We also use a lot of performance marketing to target customers and use push notifications. In the app, we use promotions to drive sales.
We also do social media campaigns like #Swiggylicious, which show food preparation in an engaging manner. We do food trails where we partner with bloggers and local city folk to visit interesting restaurants in the city. We then inform users on the app about the local delicacies available at these restaurants and how, with Swiggy, they can access them.
There are also restaurants that have created exclusive dishes for us. Hyderabad’s trendy thick shake chain ‘The Thick Shake Factory’ has created a branded Swiggy shake. We have done something similar with the ice cream chain ‘Corner House’ in Bengaluru as well.
Being a digital company, what is your media mix for marketing like?
Digital is a big part of our overall media mix. In fact, we have gradually increased the share of ad spends on digital over the years. We see that digital spends are efficient and the ability to reach out to consumers with this medium is great. We also use traditional media like outdoor, print and radio because we noticed a strong boost to our user acquisition through traditional media. We believe that a healthy mix of traditional and online media, while continuously increasing digital spends, is the right way to go.
Swiggy charges a delivery fee for orders below Rs. 250. What has the consumer reaction been to this? What is Swiggy’s view on offering free delivery and massive promotional discounts?
Consumers really value great service. We think it is important to deliver value to the consumers. That’s why we see consumers coming back to our platform and the reason we have the highest industry repeat rate. The average consumer orders five to six times on our platform, which is much higher than the industry average. We are not here to discount our way to consumers. We believe in a sustainable business model where consumers see value in our offering.
How does Swiggy plan to counter the entry of global car-pooling service Uber with UberEATS and technology giant Google with Google Areo?
We are a very young brand and so is the industry. There is a huge potential for the market out there. We think that there is a lot of room for growth in terms of market size. It is large enough to have brands that provide great service to consumers. We are not obsessed about competition; we are obsessed about consumers.