Department of Business Administration

Proposal

Impact of the Promotional Campaign on Sales –

A case study of Zong m9 Mobile Network

Submitted by:

ASGHAR ALI GHANGHRO

Roll No. 11
Section “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 Background
After 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 details
M9 price plan SMS GPRS Monthly fee F&F plan
(Rs/min) (Rs/SMS) (per 8 KB) (Rs/month) (Rs/min)
2.2 1 11 paisa 0 1.1
2 0.2 8 paisa 0 1
1.9 0.30 8.5 paisa 0 0.95
1.8 0.40 9.3 paisa 0 0.9
1.7 0.50 10 paisa 0 0.85
1.6 0.60 10 paisa 0 0.8
1.5 0.70 11 paisa 0 0.75
1.4 0.80 12 paisa 7.5 0.7
1.3 0.90 13 paisa 15 0.65
1.2 1.05 14 paisa 22.5 0.6
1 1.25 14 paisa 27 0.5
0.9 1.3 14 paisa 30 0.45

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 Plan Details
Option-1 Option-2 Option-3 Option-4 Option-5
M9 price
100% 75% min & 50% min 25% min 100%
plan Daily benefit
min 25%sms & 50%sms & 75%sms SMS
(Rs/min)
Min Min SMS Min SMS min SMS SMS
One free min on
2.2 31 23 23 16 45 8 68 90
using 1 min
1 free min on
2 25 19 18 13 35 6 53 70
using 2 min
1 free min on
1.9 22 17 15 11 30 6 45 60
using 3 min
1 free min on
1.8 20 15 15 10 30 5 45 60
using 4 min
1 free min on
1.7 19 14 13 10 25 5 38 50
using 5 min
1 free min on
1.6 17 13 13 9 25 4 38 50
using 6 min
1.5 - - - - - - - - 0
1.4 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 Volume

Data 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
Sales Volume of Sales Volume of Sales Volume of
S. Name of outlet / 3 months before 3 months during 3 months after
No. Customer promotion promotion. promotion
(cartons) (carton) (cartons)
1. A. A. & Sons Ltd 800 2000 2500
2. Pa Chike Ventures 400 700 800
3. Egwuonwu Ent. 150 300 360
4. Igwe Stores 600 900 903
5. Jackson Ent. 250 800 900
6. Ejinkeonye Store 200 800 1000

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7. Galaxy Stores 200 400 506
8. Goddy Stores 100 500 506
9. Obioma Stores 40 65 72
10. Agans Ventures 30 40 52
Source: 1998 Company’s Sales record

Table 4: Sales Volume before, during and after sales promotion for the period
under review, April – June 1999
S. Name of outlet / Sales Volume of Sales Volume of Sales Volume of
No. Customer 3 months before 3 months during 3 months after
promotion Promotion. promotion
(cartons) (carton) (cartons)
1. Obitex stores 1000 1400 1600
Adionyemma
2. 1320 1500 1560
Stores
3. Chidex Venture 1150 1350 1550
4. Omega & Sons Ltd 950 1300 1500
5. Mrs. Nzegwu 650 700 880
Peace Trading
6. 500 700 850
Stores
7. Rose Stores 400 5500 600
8. Goodway Stores 900 1000 1050
9. Regina Udo 350 415 460
10. Madam Uju 400 600 700
Source: 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 variables

With 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.

Intervening
Independent Dependent
variable
Variable Variable
Persuasive
Promotional Sale volume
Promotional mix
campaign Zong m9

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.

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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 promotions
By: Srini S. Srinivasan
Assistant Professor, Department of Marketing, Drexel University…..

A study of relationship effectiveness between marketing and sales managers in

business markets
By: Philip L. Dawes
Wolverhampton Business School, University of Wolverhampton, Wolverhampton,
UK,
And: Graham R. Massey
School of Marketing, University Technology, Sydney, Australia

http://www.facebook.com/m9byzong
http://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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