Department of Business Administration

Proposal

Impact of the Promotional Campaign on Sales – A case study of Zong m9 Mobile Network

Submitted by:

ASGHAR ALI GHANGHRORoll No. 11Section “A”

Submitted to:

MUHAMMAD MAZHAR MANZOOR

Federal Urdu University of Arts, Science & Technology

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IMPACT OF PROMOTIONAL CAMPAIGN ON SALE –A CASE STUDY OF ZONG M9 MOBILE NETWORK

ABSTRACT

The marketing has the important role in every step of business because in 21 st century where customer demands more & more satisfaction from every given business deal so every business needs the effective marketing strategy so as the effective promotion mix for their products. In telecommunication market where industry is still developing there is huge competition in the market so every competitor just not only needs to offer distinctive deal in market but also needs an effective promotion campaign for its product. Zong m9 offers the best packages for its customer with unique call rates & best network services but there is one area for Zong m9 where it lacks & that is its promotional campaign. It has not effective promotion mix for its packages. This research paper focuses on the promotional strategies of Zong m9 by conducting the causal study from the sixty respondents which are selected randomly.

Keywords: Telecommunication, marketing strategy, promotional campaign, Zong m9.

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1. INTRODUCTION

1.1 BackgroundAfter the teaser launch of Zong’s M9 towards year 2010 end, Zong had officially launched M9 a week back. We must say that M9 did create a lot of hype in the pre-launch phase on social media. In span of around two weeks since teaser and a week after official launch, M9 has managed to have 15,000+ likes on their Face book page, while their Twitter followers are near to touch 500 and their You Tube channel has more than 250 subscribers. All these numbers reflect M9′s successful social media marketing campaign.

About M9, as expected it is a youth centric brand from Zong but with a twist of Make Your Plan element added to it.

M9, an industry first service that no one has yet thought of!  Keeping the tradition alive and touching new heights of customer satisfaction and service innovation, Zong is bringing to subscribers a new Package plan that will appeal to the internet users of Pakistan in general and the educated, smart mobile user in particular.

Specifically designed for our young at heart entertainment lovers, M9 is not just a package but altogether a new experience. The core values of the M9 plan being Flexibility & Lifestyles, combined with the product offering endow a new personality to the Package.

With M9 you can not only choose you own M9 calling plan as well as free benefits as it suits you.  On top of this, you will further receive daily free minutes based on yesterday’s usage. Means with M9 you don’t have to wait for special scheme to put your SIM back and enjoy free benefits rather keep using M9 and enjoy daily! So what’s your plan?

The price plans and other details of packages that come in M9 are given below.

M9 pricing detailsM9 price plan

(Rs/min)SMS

(Rs/SMS)GPRS

(per 8 KB)Monthly fee (Rs/month)

F&F plan(Rs/min)

2.2 1 11 paisa 0 1.12 0.2 8 paisa 0 1

1.9 0.30 8.5 paisa 0 0.951.8 0.40 9.3 paisa 0 0.91.7 0.50 10 paisa 0 0.851.6 0.60 10 paisa 0 0.81.5 0.70 11 paisa 0 0.751.4 0.80 12 paisa 7.5 0.71.3 0.90 13 paisa 15 0.651.2 1.05 14 paisa 22.5 0.61 1.25 14 paisa 27 0.5

0.9 1.3 14 paisa 30 0.45

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Plan Details

M9 price plan

(Rs/min)

Option-1 Option-2 Option-3 Option-4 Option-5

Daily benefit100% min

75% min & 25%sms

50% min & 50%sms

25% min & 75%sms

100% SMS

Min Min SMS Min SMS min SMS SMS

2.2 31 23 23 16 45 8 68 90One free min on

using 1 min

2 25 19 18 13 35 6 53 701 free min on using 2 min

1.9 22 17 15 11 30 6 45 601 free min on using 3 min

1.8 20 15 15 10 30 5 45 601 free min on using 4 min

1.7 19 14 13 10 25 5 38 501 free min on using 5 min

1.6 17 13 13 9 25 4 38 501 free min on using 6 min

1.5 - - - - - - - - 01.4 25 18 11 12 22 6 32 43 -1.3 18 14 7 9 13 5 20 27 -1.2 11 8 3 6 6 3 10 13 -1 - - - - - - - - -

0.9 - - - - - - - - -

If I had to give a personal opinion, the packages are confusing to an extent for general population. What do you think of them?

1.2 Problem Statement:To analyze the impact of promotional campaign over the sale of Zong m9 Mobile

1.3 Objectives of Research: To understand the importance of promotional campaign for Zong m9

mobile network. To identify that either Zong m9 getting desire result from its promotional

campaign. What is the current position of the Zong 9m mobile in the market? What are the lapses in promotion campaign of Zong m9 mobile network?

1.4 Purpose: The purpose of the research to understand the roll of promotional campaign in the sale of any product particularly we analyze the impact on the Zong m9 mobile network.

1.5 Limitation:This research will conducted for academic purpose with the limited resources, the sample sizes is also limited & convince sampling will be preferred by researcher due to lack of time.

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2. LITERATURE REVIEW

Businesses today are continually looking for ways to improve the effectiveness and efficiency of their operations. Coming under increasing pressure and scrutiny are promotional expenditures, viz., advertising, personal selling, public relations, and sales promotions because they have long been among the most challenging marketing costs to analyze or justify on a profit versus cost basis (Anderson et al., 1992, pp. 502-5). Two conflicting developments are forcing marketing managers to rethink their Promotional strategies. On one hand, the highly competitive market place compels marketers to increase their spending on the promotional mix. In1992 alone the total promotional spending was $177 billion and this spending is growing at an annual rate of 8 percent (Promo, 1994). While, simultaneously, on the other hand, promotional expenditures are being examined closely by top management as one of the most promising areas left for cutting costs and increasing profits. This heightened scrutiny puts intense pressure on marketers to develop and implement promotional programs that can add value to their corporations within the constraints of tighter budgets.

Hence, there is a crucial need to re-examine how promotional dollars are spent. One promotional element attracting intense scrutiny is sales promotion which consists of a diverse collection of mostly short-term incentives designed to motivate consumers or the trade to purchase a product immediately and/or in larger quantities by lowering the price or adding value (Lamb et al., 1996, p. 573). Because they have been shown to have a significant sales impact, sales promotions (e.g. coupons, samples, premiums, contests, point-of-purchase displays, and frequent-buyer programs) are widely employed by manufacturers and retailers. Generally, each sales promotion tool is used to achieve a unique objective. For example, coupons are widely used to discriminate between more-price-elastic and less-price elastic consumers and sampling is used to induce trial so that some of the consumers who try the brand can be motivated subsequently to purchase the product. Other objectives of sales promotions are to induce brand switching, accelerate purchases, stockpile the promoted product, and expand overall sales.

Impact of Promotion on Sale

Effects of Sales Promotion on Sales VolumeData of sales volume before, during and after promotion for 1998 and 1999 promotion were compared and analyzed using the chi-square.

Table 3: Sales volume before, during and after sales promotion for period under review, April – June 1998

S. No.

Name of outlet / Customer

Sales Volume of 3 months before

promotion (cartons)

Sales Volume of 3 months during

promotion.(carton)

Sales Volume of 3 months after

promotion (cartons)

1. A. A. & Sons Ltd 800 2000 25002. Pa Chike Ventures 400 700 8003. Egwuonwu Ent. 150 300 3604. Igwe Stores 600 900 9035. Jackson Ent. 250 800 9006. Ejinkeonye Store 200 800 1000

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7. Galaxy Stores 200 400 5068. Goddy Stores 100 500 5069. Obioma Stores 40 65 7210. Agans Ventures 30 40 52Source: 1998 Company’s Sales record

Table 4: Sales Volume before, during and after sales promotion for the period under review, April – June 1999

S. No.

Name of outlet / Customer

Sales Volume of 3 months before

promotion (cartons)

Sales Volume of 3 months during

Promotion. (carton)

Sales Volume of 3 months after

promotion (cartons)

1. Obitex stores 1000 1400 1600

2.Adionyemma Stores

1320 1500 1560

3. Chidex Venture 1150 1350 15504. Omega & Sons Ltd 950 1300 15005. Mrs. Nzegwu 650 700 880

6.Peace Trading Stores

500 700 850

7. Rose Stores 400 5500 6008. Goodway Stores 900 1000 10509. Regina Udo 350 415 46010. Madam Uju 400 600 700Source: 1998 Company’s Sales Record

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3. METHODOLOGY

3.1 Theoretical framework:After problem statement next stage to develop the theoretical frame work for our research which based on our three variables dependent, independent & intervening variable by evaluating them we get the answers which will be helpful in our research conclusion.

3.2 Research Design:The casual study will be done for checking the impact of promotion on sale volume for Zong m9.

3.3 Sample size: The sixty students of federal Urdu university are selected randomly form three different departments of university to conduct the research.

3.4 Data collection method:

Primary data: The 15 close end questionnaires will fill by the sixty respondents.

Secondary data: The secondary data will be collected from the ten different research articles, website, Zong m9 official website, & personal observation…..

3.5 Setting the variablesWith in our research we have three variables one dependent variable one

independent & one moderating variable….

Dependent variable:Sale volume of Zong m9 is our dependent variable

Independent variable:Promotional campaign is our independent variable

Intervening variable:Persuasive promotional mix campaign is our intervening variable.

Defining relationship:Sale volume is our dependent variable it depends on the promotional campaign if the effective promotional campaign is done by introducing the intervening variable we will get the positive results. The intervening variable will force customer to act positive like persuasive ads create the unique image in customer mind which allows companies to build the successful customer relationship with customer.

DependentVariable

Sale volume Zong m9

Intervening variable

Persuasive Promotional mix

IndependentVariable

Promotional campaign

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3.6 Developing hypothesis:Hypothesis can be set as fallows…..

Null Hypothesis:H0 = The promotional campaign was ineffective.

Alternative Hypothesis:H1 = The promotional campaign was effective. If null hypothesis comes true it will verify that there is negative relationship between two variables which shows that promotion campaign is effective for Zong m9 mobile network, its doesn’t requires the intervening variable since its current promotional campaign is effective to increase the sale volume.

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REFERENCES:

Andrew J., (2008), “Effect of Sales Promotion on the Volume of Sales of Agro-Product”, Journal of Agriculture and Social Research (JASR) Vol. 8, No. 2, 2008.

Concepts and strategy guidelines for designing value enhancing sales promotionsBy: Srini S. SrinivasanAssistant Professor, Department of Marketing, Drexel University…..

A study of relationship effectiveness between marketing and sales managers in business marketsBy: Philip L. DawesWolverhampton Business School, University of Wolverhampton, Wolverhampton, UK, And: Graham R. MasseySchool of Marketing, University Technology, Sydney, Australia

http://www.facebook.com/m9byzonghttp://www.purepakistani.com/2011/01/m9-zong-m9-package-detail/http://telecomnewspk.com/2011/01/zong-m9-now-available-got-superb-response/http://www.zong.com.pk/http://www.m9.com.pk/index.html

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