SP601 Data-Driven Research

The Feasibility of Contracting a Door-to-Door

Caravan Project to a Marketing Agency for
Increasing Subscriber Base in the
Telecommunications Industry

Introduction
Smarta is a local telecommunications company that is considering to hire a
marketing agency to do a door-to-door sampling caravan project to give out free
prepaid SIM cards to households. The objective is to increase the subscriber base of
the company while obtaining a net profit from this project by hoping that the free SIM
card samples will eventually be activated in the future and revenue will flow from the
activated SIMs.

The marketing agency proposes to do the following sampling system:

 Ten samplers will be deployed per day to a specific barangay.

 A work day is 8 hours from 8am to 5pm.
 When at the Barangay for the day, the ten samplers will start walking around
the Barangay knocking on houses.
 If the one that answered the door is interested, the sampler hands a free SIM
card.
 Only 25% of the SIMs given away are activated after the sampling and on
average will provide a revenue return of PhP 200.00 per year.

The agency is proposing a PhP 5,000,000 contract with Smarta to do the 100 days
of sampling which includes the salaries of the ten samplers, as well as the
company's van and a driver.

Problem Statement
The problem that Smarta is facing is whether or not it is feasible to contract a door-
to-door caravan project to a marketing agency. There are a number of factors to
consider, including the cost of the project, the number of SIM cards that will be
distributed, the conversion rate of SIM cards to activated subscribers, and the
revenue that will be generated from the activated subscribers.
Scope and Limitations
This research paper will focus on the feasibility of contracting a door-to-door caravan
project to a marketing agency. The paper will not consider other methods of
distributing free SIM cards, such as online giveaways or in-store promotions. The
paper will also not consider the long-term impact of the project on Smarta's
subscriber base and revenue.

The research explores existing studies related to door-to-door marketing, subscriber

acquisition, and sampling strategies. It identifies a gap in comprehensive analyses
that consider various success metrics, operational strategies, and demographic
targeting.

Literature Review
There is a limited amount of literature on the effectiveness of door-to-door caravan
projects for distributing free SIM cards. However, the available literature suggests
that door-to-door caravan projects can be an effective way to reach a large number
of people and generate interest in a new telecommunications product or service.

Door-to-door promotion is one of effective channel to acquire the customers;

generate the high awareness level related to the products; increase the sales level
and support to create future brand recognition (Frost & Sullivan, 2012). Door-to-door
promotion is an effective traditional technique that uses to drive sales. Simply it can
be defined as a promotional tool which involves the sales people moving from door
to door and knocking uninvited target customers after that try to sell the offerings at
the door step or the house premises (Frost & Sullivan, 2012).

As telecommunications technology advances, competition among

telecommunications companies becomes more intense. Each company must market
its products and services in a way that distinguishes it from its competitors. As a
result, their marketing strategies are critical for retaining current customers and
attracting new ones. It is also important to consider other variables when determining
the effectiveness of marketing strategies.

Marketing channels are the methods used to promote a company's products and
services to consumers. There are many different marketing channels, and most
companies use a combination of them to reach their target audience.

The most important aspects of a successful marketing strategy are creative

marketing strategies and plans that can guide marketing activities. These strategies
should be tailored to the specific needs of the company and its target audience.

Proposed Research Design

The proposed research design for this study is a quantitative study. The study will
collect data on the number of SIM cards that are distributed, the number of SIM
cards that are activated, and the revenue that is generated from the activated SIM
cards. The data will be collected from the marketing agency that is contracted to do
the door-to-door caravan project.

The data will be analyzed using descriptive statistics and regression analysis. The
descriptive statistics will be used to describe the data and to identify any trends. The
regression analysis will be used to determine the factors that are most likely to affect
the conversion rate of SIM cards to activated subscribers.

Proposed Data Analysis Methodologies

Quantitative: Utilize statistical methods to analyze historical data and estimate hit
rates, acceptance rates, and conversion rates. Regression analysis can help identify
relationships between factors like demographic variables and acceptance rates.

Qualitative: Conduct interviews or surveys to understand consumer behavior,

preferences, and perceptions related to door-to-door marketing and SIM card
adoption.

Cordillera Administrative Region (CAR)

MIMAROPA Region

Region IX (Zamboanga Peninsula)

Region VIII (Eastern Visayas)

Region X (Northern Mindanao)

Region V (Bicol Region)

Region VII (Central Visayas)

Region IV-A (CALABARZON)

0 10,000,000 20,000,000

Number of Household Household Population

Figure 1: The Household Population and the Number of Household in the Philippines by Region in 2022 from PSA.

3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000 Household Popula-
tion
500,000
0
ty la n ig ig la e ti as a a ty g n as n os
Ci ani oca agu Pas zue aqu aka Piñ lup ikin Ci yon abo vot Jua ter
on M alo T n r y l
ez en añ M Las nti Ma asa dalu Ma Na San Pa
u C
Val Par u P n
Q M a
M
Figure 2: The Household Population and the Number of Household in National Capital Region in 2022 from PSA.
The number of hits can be calculated by multiplying the number of samplers by the
number of hours worked per day by each sampler. The number of hits can also be
estimated by taking into account the acceptance rate and the conversion rate. The
acceptance rate is the percentage of households that are willing to accept a free SIM
card. The conversion rate is the percentage of households that activate the SIM card
after receiving it.

The number of hits can be broken down by city, region, and barangay size. This
information can be used to identify which areas are most likely to be successful for
the door-to-door caravan project.

It is possible to reach 500,000 hits in 100 days if the acceptance rate is high and the
conversion rate is also high. However, this would require a large number of samplers
and a significant investment of time and resources.

It is possible to go to more barangays to get more hits. However, this would also
require a larger number of samplers and a greater investment of time and resources.

Implementation Plan
1. The marketing agency will be contracted to do the door-to-door caravan
project. The contract will be for 100 days and will include the salaries of the
ten samplers, as well as the company's van and a driver. Smarta's estimates
that the agency spends PHP 10,000 per day for the van's utilization which
includes gas, van rental and driver salary. Note further that the PHP
5,000,000 contract does not include the costs of the SIM cards.
2. The data collection will be done by the marketing agency. The data will be
collected on the following:
o Number of SIM cards that are distributed
o Number of SIM cards that are activated
o Revenue that is generated from the activated SIM cards
3. The data will be analyzed by Smarta. The data will be analyzed using
descriptive statistics and regression analysis.
4. The results of the analysis will be used to determine the feasibility of
contracting a door-to-door caravan project to a marketing agency.

Conclusion
In addition to the above, here are some other factors that Smarta should consider
when making a decision about whether or not to contract a door-to-door caravan
project to a marketing agency:
  The cost of the project: The cost of the project will depend on a number of
factors, including the number of SIM cards that are distributed, the number of
samplers that are used, and the cost of the van and driver.
 The effectiveness of the project: The effectiveness of the project will depend
on a number of factors, including the quality of the marketing agency, the
target audience, and the timing of the project.
 The risks involved: There are a number of risks involved in contracting a door-
to-door caravan project to a marketing agency, such as the possibility that the
project will not be effective or that the agency will not deliver on its promises.

Smarta should carefully consider all of these factors before making a decision about
whether or not to contract a door-to-door caravan project to a marketing agency.

Bibliography
 Philippine Statistics Authority. (March, 2022) Household Population, Number
of Households, and Average Household Size of the Philippines (2020 Census
of Population and Housing). Retrieved from Philippine Statistics Authority.
https://psa.gov.ph/content/household-population-number-households-and-
average-household-size-philippines-2020-census
 D P Nayanathara Ranaweera, Nisal Gunawardane (Apr 2020). Experiential
Brand Activation on Customer Brand Trust in Mobile Telecommunication
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