Zepto Marketing Strategy | What Drove Zepto's Success in Quick Commerce?
🔍Insights
The quick commerce industry is one of the fastest-growing industries in India, and Zepto has fueled this industry with its innovative marketing strategies. Zepto, India's fastest online grocery delivery app, has disrupted the entire quick commerce market in a short period.
Convenience and super-fast delivery are the two main aspects of Zepto's incredible marketing strategy. It is on its way to becoming India's second-youngest unicorn. Since its inception, it has expanded its footprint in cities like Bangalore, Chennai, Delhi, Ghaziabad, Noida, Gurgaon, Hyderabad, Kolkata, Pune, and Mumbai.
There are a lot of interesting things you will get to know in this article, about the marketing strategy of Zepto, and how it acquired and retained customers where other big players are struggling to do so.
Zepto Marketing Mix
Zepto Target Audience
Zepto Marketing Strategy
- 10-Mins Delivery Strategy
- Advertising and Branding Strategy
- Social Media Meme Marketing
- Micro-Moments Marketing Strategy
- Customer Acquisition and Retention Strategy
- Digital Marketing
- Referral Programs
Zepto USP
Zepto Marketing Campaign
Zepto Marketing Mix
Product
Zepto stands out in the market with its 10-minute grocery delivery, catering to time-conscious customers. Offering a diverse range of high-quality products, including groceries, fresh produce, household items, and personal care products, Zepto ensures customer satisfaction and encourages repeat business. The introduction of private-label products enhances brand loyalty by providing quality at competitive prices, making Zepto a compelling choice in the fast-paced online grocery landscape.
Price
Zepto adopts a strategic pricing approach to enhance its market position by offering competitive pricing that attracts customers and ensures a sustainable market share. The company uses dynamic pricing to adjust its prices in response to demand and competition, thus optimizing revenue and profitability. Moreover, Zepto actively engages customers through various promotional offers, including discounts and coupons, aimed at not only drawing new patrons but also fostering loyalty and encouraging repeat business.
Place
Zepto primarily operates through its mobile app, which is designed to make grocery ordering quick and easy for busy customers. The company has strategically located dark stores to ensure speedy and efficient order fulfillment. Zepto has also partnered with a variety of delivery services to guarantee that orders are delivered promptly to customers' doorsteps. This integrated approach demonstrates Zepto's dedication to providing convenience and efficiency in the grocery delivery industry. Zepto's business strategy revolves around offering ultra-fast delivery, with a focus on customer convenience and satisfaction.
Promotion
Zepto employs a diverse marketing approach, utilizing digital channels like social media and influencer marketing, alongside out-of-home advertising for brand visibility. Positive media coverage enhances its reputation, while meme marketing fosters audience engagement. A referral program incentivizes customer loyalty, contributing to both acquisition and retention. Zepto's concise and varied strategies solidify its dynamic presence in the market.
Kanimozhi Sivakumar
Zepto - Target Audience
Zepto mainly targets busy people living in cities who want quick grocery deliveries. Its customers include young professionals, students, and families who need things fast. The service is for people who like using technology to save time. Zepto focuses on city areas, offering a simple online shopping experience.
Zepto Marketing Strategy
Zepto's marketing strategy has played a crucial role in growing its business to this extent. A lot of innovative steps have been taken by the company to support and boost its business growth. Zepto's target audience is generally young adults and the modern generation. Here is the detailed overview you must read.
10-Mins Delivery Strategy
The idea of online grocery delivery is not new. Startups like Dunzo and Blinkit are already providing these services. The fact that distinguishes Zepto from all its competitors is its 10-minute delivery of groceries and other products. You might have heard about Zomato Instant, which provides food delivery within 10 minutes, but Zepto is the first player in the grocery delivery segment to offer a 10-minute grocery delivery service.
The idea of 10-minute grocery delivery is unique, but it was not that easy to implement. To fulfill its promise to deliver groceries in the specified time, Zepto introduced the concept of the dark store model. The dark store is like a fulfillment center for Zepto; it is not accessible to the public but is efficient enough to fulfill orders rapidly.
Artificial intelligence is used by Zepto to pick, pack, and transport orders in leaps and bounds. Whenever any customer places an order, a person with a tablet is assigned to pick up and pack the order within 60 seconds. It means that at the time you make the payment, someone is already preparing your order for dispatch. The company claims that 8 minutes and 40 seconds is the average delivery time they have achieved.
Zepto operates its dark store delivery within a 3 km radius, and it doesn't penalize its delivery boy for late delivery.
Discounts are a way to attract customers, but as a new player in the segment, offering huge discounts was not a sustainable option for Zepto. Hence, the 10-minute delivery strategy comes out to be a panacea for Zepto.
Sarika Anand
Advertising and Branding Strategy
Zepto Ad - Groceries Delivered in 10 Minutes
There is not only one thing responsible for the success of Zepto, but an incredible advertising strategy has also played an important role in the success. L&K Saatchi and Saatchi is an advertising agency that was assigned to advertise Zepto and build a strong brand image in front of consumers. The main theme of all the ads is to emphasize the 10-minute delivery of Zepto.
Zepto's ads are attention-grabbing ads that suddenly capture the focus, and this is what every brand wants. When a boy suddenly wakes up and runs toward the door, it creates a question in the minds of viewers about why he is running. The twist and excitement of the ad make it capable of grabbing the attention of viewers.
If I try to summarize the above ad in a single sentence, then it is like this: From the time you wake up until the time you sleep, every essential product will get delivered to your doorstep within 10 minutes.
Each ad that was created is meant to make the consumer feel how Zepto is capable of changing their daily grocery shopping habit. Since advertising is the best way to market the product and build a strong brand image, Zepto has fully utilized the benefits of marketing.
Advertising was not only done on social media channels, but it also planted its hoardings in the streets of cities in which Zepto's services are operational.
Social Media Meme Marketing
In today's generation of technology and innovation, we cannot ignore the power of social media. There is a huge chance you'll find your target audience on the social media platform. Hence, every brand is focusing on social media marketing. Zepto is also not behind the race; it leverages the social platform to engage its audience through meme marketing.
For the recently released movie 'Avatar: The Way of Water,' Zepto created a meme to grab the consumer's attention by following the ongoing trend. It's just one example, but if you visit Zepto's social media page, you'll find plenty of such memes.
Meme marketing is a trend today because people often share memes with their loved ones. This will help the brand get some organic reach and, at the same time, promote the brand. Zepto knows the power of memes very well. That's why if you open their page on any platform like Facebook, Instagram, and Twitter, you'll find amazing memes.
Th has gained a lot of positive feedback from customers. Along with meme marketing, they sometimes collaborate with famous social media influencers to make videos for them. This tactic helps to create a loyal fanbase and also helps the brand image flourish.
Nitin Konde
Micro-Moments Marketing Strategy
Micro-moments are key moments in a customer's journey where brands can influence buying decisions. Zepto understands this and focuses on sending the right messages at the right time to connect with customers. Studies show that over 150 billion mobile micro-moments happen every day, influencing more than 70% of purchases. Brands using this approach see a 74% success rate in increasing revenue.
Customer Acquisition and Retention Strategy
Players in the quick commerce industry like Dunzo, Swiggy Instamart, and Blinkit are well-funded and established. These big giants have already acquired a huge market share in the segment by offering huge discounts and other offers. So it was not easy for Zepto to acquire customers and retain them.
Discounts are not the only things that attract consumers. Consumers are always hungry for something new, and exactly here, Zepto played its game. Acquisition of customers and retaining customers are two different things. Other players in the segment have easily acquired customers but struggled to retain them.
Customers are used to switching platforms and ordering items from the app, where the discount is heavy. In the case of Zepto, it has given discounts and at the same time provided high-speed free delivery. It helps to enhance Zepto's retention rate significantly.
No other players in the segment were making that fast delivery. This eventually leads to an increase in Zepto's consumer base.
Digital Marketing
Zepto uses digital marketing to reach busy customers with fast and targeted ads. They focus on social media platforms like Instagram and Facebook to promote quick delivery and special offers. Zepto also uses precision messaging or micro-moments to engage customers when they are likely to make a purchase. Through online campaigns, Zepto builds brand awareness and encourages customers to use their service for fast grocery deliveries.
Referral Programs
Zepto's referral program plays a crucial role in its successful marketing strategy. The program offers unique codes to its users for sharing, which incentivizes both existing and new users with rewards such as discounts. This helps in cost-effective customer acquisition and increases customer retention. The program's seamless integration with social media, multiple reward options, and gamification elements make it a dynamic and impactful tool for Zepto's growth and customer loyalty.
Beyond transactional benefits, Zepto's referral initiative is a brand-building powerhouse, fostering advocacy and community engagement. By creating a positive customer experience and utilizing word-of-mouth influence, the program stands as a testament to the brand's commitment to customer satisfaction and strategic marketing prowess.
Kanimozhi Sivakumar
Marketing Campaign of Zepto
boAt, India’s leading audio brand, has teamed up with Zepto to bring high-quality audio products to your doorstep in just 10 minutes. This partnership combines boAt’s top-notch audio expertise with Zepto’s quick delivery, making it easier to enjoy music, movies, podcasts, and more. Whether it's a party, a podcast, or binge-watching, boAt and Zepto ensure the perfect audio experience is just a tap away.
Zepto Marketing Strategy - Featuring Usha Uthap, Kailash Kher, Shankar Mahadevan
A marketing campaign is an integral part of any brand's effort to increase its visibility and create brand awareness. The same is true for Zepto. In the IPL 2022, Zepto created and ran a marketing campaign that truly had a new approach.
Most of the time, we have faced the issue of time stretching in different places like airports, hospitals, and restaurants. Because we usually wait for a long time in these places, it became quite common for us, but Zepto addressed this issue and showcased it in its campaign in such a way that, at the same time, it also represented the 10-minute delivery promise of Zepto.
In this campaign, three famous singers—Shankar Mahadevan, Usha Uthup, and Kailash Kher—have given their incredible voices. Three ads have been created for this campaign with the voices of these three singers. They have stretched the time with their voices in such a way that it shows our habit of waiting. At the same time, Zepto implements its tagline of 10-minute delivery.
L&K Saatchi and Saatchi created this campaign very beautifully, and the whole marketing campaign turned out to be a huge success for Zepto.
Zepto Marketing Strategy - Jet-Set-Go
In this brand campaign, Zepto has come up with a significant collaboration featuring renowned cricketer Jasprit Bumrah as the brand ambassador. Developed by L&K Saatchi & Saatchi, the 'Groceries delivered at Bumrah Speed' campaign embodies speed, precision, consistency, and rigor. This initiative not only introduces Indian audiences to cutting-edge special effects but also promises an experience comparable to the grandeur of cinema.
The campaign's focal point will be on Disney+ Hotstar, other leading OTT platforms, Zepto's application, social media channels, and various digital platforms. Outdoor advertising will be prominently displayed across major cities where Zepto operates, ensuring widespread visibility and engagement.
Zepto Marketing Strategy - Bus Mein Seat Nahi Milega
Zepto's 'Nahi Milega' brand campaign underscores its commitment, emphasizing that while life may present unattainable challenges, unlimited free deliveries on Zepto are certain.
Zepto adopted an unconventional approach by introducing Uncle Ji, a character from Delhi, several weeks before unveiling their brand campaign. The intention was to disrupt social media with Uncle Ji's distinctive personality, straightforward expressions of reality, and the recurring catchphrase 'Nahi Milega' (won't be available).
Zepto said Uncle Ji's character achieved remarkable organic traction, accumulating 10 million impressions with a substantial 10% engagement rate across all social media platforms. Uncle Ji trended at #6 on Twitter and received endorsements from popular Twitter celebrities and Instagram meme pages, solidifying his status as a cultural icon in India.
Zepto USP
Zepto’s business model focuses on customers and offers instant delivery, setting it apart from competitors. The app is known for being the fastest, delivering groceries in as little as 10 minutes, with a claimed average time of 8 minutes and 47 seconds. When users place an order, it's already on its way. Zepto also offers free shipping, unlike Amazon Fresh and Instacart, which charge delivery fees. Despite offering free delivery, Zepto doesn't raise product prices and provides great discounts on groceries.
Conclusion
Zepto is a young startup, and it has achieved this success in a short period of time because of its incredible marketing strategy. Above are a few insights into Zepto's marketing strategy that give you an overview of how a business can build a strong market presence and increase its visibility.
FAQs
What are the key components of Zepto marketing strategy?
The key components of Zepto's marketing strategy include its 10-minute delivery approach, advertising and branding tactics, and social media meme campaigns, all of which contribute to the company's success.
How does Zepto retain its customers?
In the case of Zepto, it has given discounts and at the same time provided high-speed free delivery. It helps to enhance Zepto's retention rate significantly.
How does Zepto provide fast delivery?
To fulfill its promise to deliver groceries in the specified time, Zepto introduced the concept of the dark store model. It is like a fulfillment center for Zepto that is not accessible to the public but efficient enough to rapidly fulfill orders.‌‌‌
What is Zepto tagline?
Zepto's tagline is Groceries delivered in 10 minutes.
What is USP of Zepto?
Zepto's USP is its ultra-fast delivery, providing groceries in as little as 10 minutes, along with free shipping and great discounts.
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