Promotional Development Plan For Mobo Assessment Answer

Answer:

List Of Professional Competences

Academic skills have been included while conducting this study. This includes:

  • Critically Reading
  • Gathering the right Information
  • Following the research ethics
  • Evaluating the data
  • Re-articulating and applying the past studies with the present study

Annotated Bibliography

Adebisi, S. and Babatunde, B. (2011). Strategic influence of promotional mix on organization sale turnover in the face of strong competitors. Business Intelligence Journal, 4(2), pp.343 - 350.

This journal article mainly focused on understanding the impact of promotion mix on the turnover of the organization by targeting on manufacturing organization. Using questionnaire, the authors collected the primary data and found that only 25% of the organization turnover is influenced by the promotional mix. However, this few percentage can actually push the organization to the highest level. But, it also necessary to consider factors like distribution, pricing and product development strategies.

Hosseini, M. and navaie, M. (2011). Analyzing the influence of promotion mix on increase of sale in cosmetics and beauty products. Asian Journal of Business and Management Sciences, 1(4), pp.99-113.

In this journal article, Hosseini and Navaie highlights, that advertising, sales promotion and personal selling are the most influencing sale factors. However, targeting on the cosmetic industry they found that direct marketing has less impact on the products. This study is conducted on the customers of Iran to understand different ways to persuade the customers using different promotional mix.

Sukhmani, D., Gupta, S. And Kalra, S. (2012). Role of promotion mix in mounting the sales of various FMCG companies in rural markets. International journal of marketing, financial services & management research, 1(3), pp.31-37.

Sukhmani, Gupta and Kalra conducted this study to understand the part of the components of promotional mix in affecting the provincial purchasers, customers were asked to rank the most critical component of promotional mix. Public relation was decreed as the most critical component, which expanded the offers of an association. Likewise, gender was found to have no distinction in crediting significance to the components of promotional mix. This was found to be exceptionally reasonable decision that helped to create high level of awareness among the rural people.

Thackeray, R., Neiger, B., Hanson, C. and McKenzie, J. (2008). Enhancing Promotional Strategies Within Social Marketing Programs: Use of Web 2.0 Social Media. Health Promotion Practice, 9(4), pp.338-343.

According to this journal, with the inventions of new technologies, there has been increase in the potential for the marketers to use different promotional strategies through internet. Thus, applications based on internet helps the marketers to enhance their promotional efforts and also control the user-communication. As per the opinion of Thackeray, Neiger, Hanson and McKenzie, these web based applications can straightforwardly captivate consumers in the imaginative methodology by both delivering and disseminating data through synergistic composing, substance imparting, social organizing, social bookmarking, also syndication furthermore improve the force of viral promoting by expanding the velocity at which purchasers offer encounters and assessments with dynamically larger audiences.

Ziliani, C. (2006). Target promotions: How to measure and improve promotional effectiveness through individual customer information. J Target Meas Anal Mark, 14(3), pp.249-259.

According to Ziliani, there exist some complexities in measuring the effectiveness of promotional strategies and also some limitation in the present methodologies. Thus, she establishes a customer-based approach that helps to measure the effectiveness of the promotion. This approach is nothing but collecting information from the customers through utilization of loyalty cards. According to this author, this process helps to expand the effectiveness of the promotional strategies in three different dimensions: space, time and objective. This takes into consideration the effectiveness of the promotional planning, with outcomes that broaden economic profits and reverberate the agreeable promotional decisions and relationship with suppliers.

Chapter 1: Introduction

1.1.Background

Effective business visionaries realize that gainfulness of a business is vigorously subject to the level of mindfulness the general population has around a products. It is the measure of data that customers have that manages whether they will create premium or a requirement for your products or services (Adebisi and Babatunde, 2011; Anantachart, 2005; Ashraf et al., 2014). Shrewd entrepreneurs stimulate this enthusiasm by taking part in advertising and promotion for their products. Promotion is a movement that involves making natural your products, thoughts, or ideas. Since business world is constantly focused, each ambitious person ought to strive to telecast what makes their products more unique or better than those of their rivals. This ought to be the base for pulling in and looking after customers (Illert and Emmerich, 2008; Alam, Almotairi and Gaadar, 2013; Ali, Gafar and Akbar, 2013).

Presently, it is vital for all associations to speak adequately with present furthermore potential purchasers to win more clients for their services and products. Tools of marketing promotional activities can give a reasonable, steady, tenable and focused message about the association and its products and services to consumers. There is no best option to get new and more client than Promotion (Bailey, 2005; Bridges, Briesch and Yim, 2006,p.304; Banerjee and Ashwini Kumar BJ, 2013). It is critical for association to advance adequately their IT benefits that is immaterial in nature. Purchaser constantly confounded to buy the services in view of the high perceived risks in numerous services buys (BELEW, 2011; Borges, Cliquet and Fady, 2005). Diverse tools of promotion can dispense with this circumstance and helps association to get more clients for their services. Promotion is characterized as giving data to influence (Riel, A,C,R. Mortanges,c,p and Streukens, 2005). Promotion incorporates promoting, special occasions, individual offering, Web site-based correspondence exercises, etc (Kim and Hyun, 2010,p.7). Promotion is one of the best showcasing apparatuses to build offers of the products and services for any association (Bridges, Briesch and Yim, 2006)

There are various promotional issues that every organization should always care for. Organizations will face issue, if there is a lack of proper structured marketing and promotional plan. Implementing a proper productive marketing plan to promote their product and services generally has been a challenging issue(Brown, 2006; Chianasta and Wijaya, n.d.). The main issue of a loosely structured promotion plan is that, it might not help the organization to target the right demographics. This would then create an issue in identifying the gaps in market place and also offer feasible solutions to the customers. Organizations might also face serious issues in maintaining viability for long-term in their business, if the promotional activities are not taken forward properly (Nelson, 2002; Christiana Shade, 2014).

Due to globalization there is increase in the competition in the marketplace. All the organizations in the same industry are looking for producing new products in the market. Thus, there is a need of different promotional activities for different products (Dogan, 2010). This makes it little difficult for the organizations in making the promotional approaches more personalized, as it incurs huge cost. Further, the changing demands, market conditions, increasing product price etc is also creating pressure on the organizations. Lastly, there exist strategic issues which might lead to increase in the expenses unnecessarily (Clayton and Heo, 2011; Considine, 2000).

Thus from the above mentioned, promotional issues, it is to be noted that promotional activities plays an important role in marketing the products and services. The promotional activities help to generate profits and sales of the organization by communicating effectively with the customers. These factors actually help to launch various new products, target the audiences according to the products, build and improve brand loyalty and also reassure the customers for effective service and also increase the bottom line of the services of the organization (Elizabeth O’Connor, 2014; Evans, 2008).

Apart from just developing and producing good quality products, making the product available to the target audiences and also pricing the products and the services rightly to the target audience also plays a vital role. Thus, this report calls for a study of promotional elements that would help to develop an effective promotional plan for MoboFree. MoboFree is an Information technology company based in Vilnius, Lithuania. Presently it is focusing on exploring the African market. Success of a business or achievement of the organizational goal is significantly reliant upon the strategies designed and adopted by the organization. It has been observed that the marketing strategy is crucial for the success of integration of the business activities in the new market (Arokiasamy, 2012; Evans, 2010).  Marketing mix is considered to be one of the most important aspects of marketing strategy consisting four important elements of marketing such as product, price, place and promotion (Ewing, 2001; Feighery, 2001)

1.2.Objective Of The Thesis

This paper has some specific goals which will be achieved upon completion of the study. However, this report focuses on providing an insight to the theoretical concept of promotion. Further, this paper will apply the theories of promotion in a real context and also understand different promotional strategies will be designed which will be suitable for MoboFree in the African market. The major objectives based on the issues of promotions are listed below:

  • To determine the target population of Mobofree for creating and carrying out the promotional activities of their products and services
  • To determine the promotional mix that Mobofree can utilize
  • To evaluate the promotional factors that influences the sales of MoboFree
  • To identify the issues or obstacles that Mobofree can face while designing the promotional strategy.

1.3. Structure Of Thesis

This thesis is divided into six different chapters that would help the author to analyze the overall thesis and also help the author to reach the desired outcome. Standard chapters have been followed by the author for meeting the reliability and transparency of the study. This helps the author to offer an easy interpretation of the overall study to the readers. The chapters are mentioned below:

The first chapter
ong> includes the introduction part. This chapter gives the reader a brief summary of the overall topic, the objectives that have been set for conducting this thesis and also brief concept about promotional mix. The author has focused on the brief concept of the study to meet the desired outcome.

The second chapter deals with different theories and background of the study. This chapter helps the author to understand the principles of Promotion and also various ideas that has to be including while making the promotional plan which is the desired outcome. The theories that will be mentioned will help the author to evaluate the gap between the real life situations and also theoretical evidences.

The third chapter is all about the thesis methods and instruments that will be used to conduct this thesis. It includes the thesis philosophy, approach, design and the process of data collection. This section provides the justification for understanding the thesis. The author has selected few methods to answer the questions.

The fourth chapter deals with the results and discussion that has been obtained through data collection.

The fifth chapter deals with the explanation of the findings that has been obtained in chapter four. In this chapter the thesis analyzes the results and interprets the findings.

The sixth chapter finds the profit of the organization.

The seventh chapter deals with the conclusion for the thesis.  This helps the thesis to make some effective recommendations to the company chosen for conducting this thesis.

Chapter 2: Theoretical Background

2.1. Chapter Overview

In this chapter the author will emphasize on the promotional tool to solve the issue of developing a promotional plan. This result will help the author to conduct effective analysis of data and findings of the thesis problem in the later part of this paper. By utilizing different promotional tools the author will offer different solutions to Mobfree about developing a promotional plan and attracting more customers.

2.2. Promotion

Promotion and advertising are two important elements of the overall social and economic systems. Right from small and medium enterprises to large multinational corporations in the world identify that the promotional plan is the best option for communicating with the potential customers and also promote their services and products in the market (Florkowski and Park, 2001).

Marketing strategy is developed for ensuring success of the product in the marketplace in order to achieve organizational goals. Marketing mix considered to be an important tool for designing the marketing strategy (Blythe, 2009). Promotion is one of the most important components of marketing mix (French, Reynolds and Merritt, 2011). Promotion can be described as the mix of various promotional elements which is adopted by an organization in order to ensure effective communication with the potential market regarding the product of the firm (Fourie and Ball, 2012). Promotion is considered to be one of the fundamental components of organizational success. Promotional activities help in communicating regarding the existence as well as major advantages or value of the product or service (Gregurec and Brodar, n.d.). Promotion is all about attracting as well as retaining the customers (Brodie et al. 2009). Promotional strategies are designed for expansion of markets, competing with the rivals and reaching the target market (Griffiths, Blair-Stevens and Parish, 2009).

According to Belch and Belch (2009), the promotion is mainly defined as the coordination of all the initiated efforts of the sellers to set up different informational channels and influences so as to offer products and benefits or advance a thought." It is broadly acknowledged that Promotion supports short terms sales (Hastings, Angus and Bryant, 2011). "Some activities related to promotion may make stockpiling, expand price sensitivity, and lessen after sales promotion, while others may draw in new customers or build utilization” (Gupta, n.d.; Hallam, 2012).

Sales promotion is one of the best effective methodologies that can be utilized along with the advertisement. For instance, one of the study states that “alone pricing promotion produces 15% rise in the sales volume. So, when combined with the advertising, the sales volume has increased to 19%, then again when integrated with the point-of-purchase display and featured advertising, the sales volume had risen to 24%”. This showed that advertisement and sales promotion are dependent on each other (Kabani, 2010).

2.3. Promotional Mix

There are six major elements of promotional mix as shown below in the figure:

Advertising

Advertising is the most popular as well as efficient components of promotion for reaching large number of audience. Advertising is one of the best known and most examined manifestation of special mix. Advertising is imperative instruments for organizations whose products and services are focused at mass purchaser markets. Promoting is the most financially savvy for the organization to achieve huge groups of onlookers According to (Jobber, 2007) Advertising is "any paid type of non-individual correspondence of thoughts or products in the prime media, i.e. TV, the press, outside, film and radio." The nature and purposes of Advertising vary starting with one industry then onto the next and over the circumstances of the business. Advertising can be base on the shoppers markets furthermore business and expert markets (Keller and Thackeray, 2011).

Advertising can be used for developing awareness regarding new product and service, describe the features for differentiating the offers of the competitors.  It influences the purchasing behavior of the customers through enhancing brand image. Various communication channels are used for advertising. Broadcasting media such as radio, television and print media such as newspapers, magazines etc are the popular communication channels (Luca and Suggs, 2010).

Direct Marketing

The concept of direct marketing helps the marketer to directly communicate about the product to the customers without any intervention of the middle men. Direct marketing can be defined as the distribution of information, promotional advantages of products to the targeted audiences through proper interaction and communication channels that helps the marketers to measure the responses (Hauser, 2007). It is the valuable tool that organization can utilize for product and service marketing to get immediate response from the customers in this competitive market. Direct marketing generally covers wide variety of methods like telemarketing, catalogue marketing, electronic media, door- to-door leaflecting, direct response advertising, direct mailing, inserts like leaflets in the newspapers and magazines and also mobile marketing (Palmer, 2009).  The organizations in this context uses SMS strategies, online display ads, catalogue distribution, interactive consumer websites, database marketing, promotional letters, response generating articles and outdoor advertising(Keller and Thackeray, 2011). Since the strategies are aimed directly for the customers hence the organizations benefit from the promotion and the sales revenue of the organizations availing this strategy increases (Winer and Dhar, 2010). Moreover the response rate of direct marketing strategy can be measured directly and the financing costs will also decrease (Kemp, Eagle and Verne, 2010).

Internet Marketing

This is one of the newest form of promoting the services and products in the market through internet. The internet platform offers both the marketers and the customers to communicate with more and also personalization (Kotler and Lee, 2008; Papasolomou and Melanthiou, 2012). Through internet, the marketing communication become a two way process and the customers get the chance of replying to the messages to the marketers (Chaffey, 2003). As the world is shifting toward digital information, the customers actually define the information they need and also the selling they are interested from the organizations and also the price they are willing to pay for (Lefebvre, 2009; Zarrella, 2010).

The companies can promote their services and products through various interactive channels of marketing like (Corley, Jourdan and Ingram, 2013; Lowrie and Willmott, 2006):

  • Links which appears to the customers for the information they are looking for and also related additional links.
  • Interstitials are the ads that appear on the screen of the users while they are downloading something.
  • Paid Search in which the customers pay to the marketers for looking at the ad or the link they are searching on the search engine (Lowrie and Willmott, 2006)
  • Contextual Ads are the ads targeted by the advertisers for the content displayed on the web page. (MARCU and GHERMAN, 2010)
  • Banner ads are the advertisements that are generally used by the organizations to encourage the viewers to sweepstakes and contents and also creating awareness.
  • Push technologies that the marketers generally for dispatching news updates, videos, web pages to specific target audiences. (Maruthamuthu and Rajamohan, 2013)

Sales Promotion

Availing of the correct sales promotional strategies helps the sales person to persuade the potential target customers to purchase a particular product.  The potential targets of sales promotion strategies are the customer, sales staff and the distribution channel. Some of the widely used sales promotion strategies are coupons, sample Publications, displays, rebates and point of purchase strategies (Wisner, 2010). However the two types of sales promotion strategies that can be advantageously used by the organizations are namely Push sales strategy and pull sales strategy. The incentives designed for the manufacturers helps in the push sales strategy and the attractive discounts helps in pull strategy (Mau, Schramm-Klein and Reisch, 2014).

Sales promotion methods are intended to deliver result rapidly subsequently quickens the offering process and brings amplifies sales. A fleeting price-cut or rebates, for occurrence, may be exceptionally powerful to help up the sales. Deals promotion can be more compelling than some other promotion to inspire client to buy item or services or even new services or products (Momin et al., 2014; Prendergast and Thompson, 2008). Coupons promotion can be utilized where the customer are value delicate. It could be extremely compelling for a developing nation like Africa on the grounds that buyer continually looking for good services with lower cost. Through premium, organization can publish some offer in different imperative social events like; in New Year or Christmas occasions (Moghaddam and Forough, 2012).

Public Relations

The public relations (PR) are a process management of the reputation of the organization with the help of promotional activities. The major role of the public relations officers is to maintain cordial relationships with the organizations target audience, media and competitors. The aim of the public relations officer is to provide the concerned stakeholders of the organization like target audience, Government, employees, partners and competitors with the relevant view and information about the organization, its leadership products, political decisions and financial status (Wenderoth, 2009; Mughal et al., 2014). The PR professional acts as the medium of presentation of the image of the organization hence it is necessary for the PR professional to convey the positive image in the mind of the stakeholders (Nassar, 2012).

Public materials incorporate identity media, events, speeches, news, public-service activities and publications. Publications incorporate annual report, magazines, leaflets, articles, organization newsletters and brochures (Norman, 2012). In events, organization can promote through news meeting and any games and social sponsorships that will help to attract the target audiences (Nyengerai, 2013). News can be helpful for organization to illuminate the potential audiences from the market place about products and services through press conferences and press releases. Organization can fabricate goodwill by contributing effort and time for social purposes through activities of public services (Kotler, 2000, p.608).

Personal Selling

Personal selling promotion is would be more successful special devices for mass buyer markets like; home broadband web customer market. In personal selling, deals persons are specifically included with potential purchaser and get criticism quickly (Promotional strategies at the Salisbury YMCA, Hong Kong, 2002). In broadband home web market it is essential for sales representative to clarify the organization's services as per the customer’s particular prerequisites. Personal selling is a methodology of personal to-personal correspondence (Podolyakina and Popova, 2014). In personal selling, organization elevates their products straightforwardly to customers through promoting and promotions or by implication through affiliates or business people. For instance: Sales people belonging to the real estate and insurance industry. Personal selling can be arranged in different courses like: telemarketing, field selling, retail selling and various other selling types (Popescu, Vrânceanu and RoÈ™ca, 2015).

As indicated by Zeithaml et al., (2011) "personal selling is face to face presentation by a delegate from the firm to make deals and manufacture customers’ connections." Personal selling is extremely secure in selling to customers and resellers. In personal direct selling, delegates can exhibit the products or services to the customers, they can persuades the customers through demonstrating the services esteem, and last if fruitful, they bring the deals to a close (Powell, Groves and Dimos, 2011). Personal contact is indispensable for specialized purchaser products like; machine, web and so forth. In these cases, personal selling is high esteem on the grounds that it gets the business close (Arens, Schaefer and Weigold, 2009)

2.4. promotion of services

Promotion of Services is not the same as promotion of products. Impalpability makes services promoting troublesome for advertisers. In promotion of services "it might be difficult to represent cordiality, diligent work, and also care of the customers in and promoting". For services, promoting can be connected to impart and reinforce the picture of services.

Some particular compelling media can be utilized for promoting services like; word of mouth, personal selling and viral communications.  Personal selling can be compelling all the more in purchasing services. There are high perceived risks associated with the purchasing services (Rajagopal, 2006). Here businessperson can clarify the points of interest of a services and its advantages of utilize and give answer of the inquiries. Business people can create arrangements of fulfilled customers to use in reference selling (PR Newswire, 2014).

Promotion must recognize the overwhelming part of personal in the decision prepare and invigorate word-of-mouth. There are four methodologies that can be connected in word-of-mouth process, as takes after (Prasanth and Jeevanandham, 2014; Virvilaitė and Matulevičienė, 2013);

  • Convincing fulfilled customers to illuminate others of theirs of their fulfillment.
  • Creating materials that customers can pass on to others.
  • Focusing on feeling pioneers in promoting crusades and
  • Swaying potential customers to converse with current customers.

Viral communication is likewise called electronic word-of-mouth and being utilized to advance services. Through this electronic word-of-mouth may take the manifestation of an email sent to a target audiences and potential customers, who are swayed to spread the statement among their companions by passing the message on electronically (Raju, Srinivasan and Lal, 1990; Tuten and Solomon, 2013).

2.5. Buying Process

It is significant for the organization to investigate how promotion and organization helps to improve the sales of the organization. Thus, the first and foremost important idea is to understand how advertising operates based on the process of personal selling. One of the best and famous models, the AIDA model is used for improving the sales of the organization and also making the marketing strategies of the organization more effective (Ranjbarian, Mahmoodi and Shahin, 2010; Tuten, 2008).

The AIDA model acts as the buying process of a product or a service from the perspective of customers in the market in four different steps. The AIDA model is a incremental way of dividing the purchase process in four different level and also advertising for leading the customers step-to-step. The four levels of the model are: A-Attention, I-Interest, D-Desire and A-Action (Richards and Patterson, 2005; Trusov, Bodapati and Cooper, 2006).

In level A; advertiser need to make Attention of the presence of an products or services, in level I; advertiser need to make Interest in giving careful consideration to the products’ banquet, in level D; advertiser need to make Desire for the products or services through special message and in level A; advertiser need put the plans and strategies into proper action, that is purchasing of the services and products (Roylance, 2006; Thackeray et al., 2008).

AIDA model depicts about level of procurement consciousness of a customers for a products or services. The sales representative needs to lead the customers from one level to next level of the model that is to say to conduct the buy emulating the four stages of AIDA (Sharma and Bharathi, n.d.; Thackeray, Neiger and Keller, 2012):

  • Making customers aware of the existence of product,
  • Interest them to stand out just enough to be noticed to the products, its features and their profits,
  • Produce the yearning to profit from the promotion and advertising of the products,
  • Finally get the demonstration of purchase

An effective promotional activity can make it conceivable to lead a customer from one stage (Attention) to next step (Action) of buying the service or the products (Petit, Dubois, Harand and Quazzoti, 2011).

2.6. New Service In Immature Market

The major activities of the firms mainly consists of introduction of various new services into immature or new market like Africa as chosen target market in this thesis. However, these activities sometimes create few risks to the firm as launching a new service or product makes the mission of the organization unpredictable in the new market. Thus promotional activities support the issues and minimize the risks (Sidhanta and Chakrabarty, 2010; Thackeray, Neiger and Hanson, 2007).

At the point when another services or products entombs in new market, the sales of the organization increase gradually. At this time, sales are generally determined by outside impacts, for example, promotions and advertising through broad cast media(Siddhanta and Banerjee, 2014).

At that point, when the products have arrived at a critical point of market penetration stage, the sales abruptly take off and, at this specific point, the business development rate normally achieves its most extreme. In this stage, sales are for the most part determined by social contagion and word-of-mouth process, until the products has infiltrated most of the market (Ryan, n.d.; Thackeray, 2005).

At the point when propelling other products there exists a sharp trade-off between the two extremes of strategies of promotion. "First and foremost, the strategy of promotion can be similar to throwing rocks, i.e. showing the products to one or various huge and strong customers groups keeping in mind the end goal to make social pressure to embrace the products (a friends groups has a solid impact on their neighbors and on others that have a place or need to fit in with that particular group) (Shen and Bissell, 2013; Singh and Diamond, 2012). Second, the promotion method can be like tossing gravel, i.e. circulating the new products to various small-small groups all through the populace of potential purchasers so as to spread as much information about the products as conceivable" (Delre, Jager, Bijmolt and Janssen,2007,pp.827-828).

2.7. Selection Of Promotion Mix

There are four separate systems for promotional routines and every strategy is having its own points of interest and impediment. Considering qualities and shortcomings of every strategy and destinations of promotion the assets are connected to attempt the endeavors of promotional fruitful.  Out of these for promotional reason any one or more are to be chosen. There is no hard and quick decide that a specific system is to be chosen. The choice is carried out by considering the prerequisite of promotional battle. The promotional endeavors ought to be exceptionally compelling. For this reason the accompanying elements are to be considered:

  • Product or services type to be sold
  • Product life cycle of the services and products
  • Objectives of the organization
  • Time of offering the items
  • Budget of Promotion
  • Methods utilized by the competitors
  • Personal enthusiasm of top administration
  • Availability of promotional techniques
  • Target audiences and their areas

There may be different purposes behind determination of specific techniques for promotion. By and large the driving organizations are utilizing two or more or as a part of mix of these systems so that their deals targets, clients relationship and picture of the organization and so forth, are looked after legitimately. The organization is in position to keep up its position in the business sector. The determination of promotional mix must be in position to give the focused edge to the organization over different contenders.

According to Loda (2014), promotional mix is the mix of one or a greater amount of the limited promotional components it decides to utilize.

2.7.1. Target Audience

D'Vari (2005) noticed that special projects are coordinated to a definitive buyer, to a middle person (distributor, wholesaler and retailer) or to both. Programs of promotion directed mainly towards the shoppers’ items utilization broad communications. Kotler and Armstrong (2004) upheld that promotion directed to the industrial purchasers is utilized specifically in exchange distributions, in any case, as mechanical purchasers have concentrated needs or specialized inquiries. Personal selling is especially imperative as the salesman can give relevant information with after sales support.

2.7.2 Product life cycle

Generally, all products have to undergo the below mentioned life cycle, and also the promotional mix composition changes with the change in the four stages of product life cycle:

1. Introduction Stage: The main objective of every promotional activity is to educate buyers with an end goal to expand their level of mindfulness. At this stage, all components of promotional mix are utilized however advertising is especially essential as a method for arriving at the same number of individuals as could reasonably be expected to develop mindfulness and investment (Pierce and Robinson, 2010)

2. Growth Stage: Kotler and Armstrong (2004) prominent that essential target of special components is to induce the shoppers to purchase the item. Advertising is the essential limited time component utilized which hassles brand contrasts. Individual offering is utilized to set the distribution channel.

3. Maturity Stage: The requirement for promotion is to keep up existing purchasers and role of advertising is to help purchasers to remember the presence of item. The organization additionally utilizes sales promotion like rebates and coupons to keep up steadfast purchasers (Palmer, 2009). This empowers group of women to keep up their clients on the grounds that if that is not done the shoppers can switch to other products of other organization.

4. Decline Stage: At this stage minimal expenditure is spent in the promotion mix as the product is almost eliminated from the market (Kotler and Armstrong, 2004).

2.7.3. Product Types

According to Avlonitis and Papastathopoulou (2006), appropriate mix of elements mainly emphasizes on the product types. The production characteristics mainly involve ancillary services, risks and complexity.

1. Ancillary Services: the auxiliary administrations relates to the service level or support needed after sales. Promoting is utilized to build the reputation of the seller. Then again, individual offering is crucial to develop confidence of the purchaser and give confirmation of effective consumer services.

2. Risks: Risk for the purchaser can be evaluated regarding money related danger, social danger and physical danger. Advertising may be utilized however the more noteworthy the danger, the more noteworthy the requirement for individual offering

3. Complexity: It alludes to the specialized complexity of the product and thus the measure of comprehension obliged utilizing it. In this case more prominent accentuation is on individual offering. This moves the need to utilize special blend components so that the potential customers may not trepidation attempting the product.

2.7.4. Buying Decision Stage

The buying decision of the consumer is a choice series that is made by the consumer before buying any product or services. Pride and Ferrell (2012) affirmed that to comprehend buyer purchasing choice, the advertiser ought to comprehend the utilization process and the consumption process by analyzing the perceptions of the consumers. They likewise proclaimed that when buying products unknowingly, customer gets through a few stages in purchasing the products like making decision, buying, and post-purchase assessment.

1. Pre-Buying Stage: In this stage, the advertising process plays a vital role compared other promotional mix. The reason behind this is that advertising illuminates the potential client of the presence of the item and the vender. Deals advancement as free specimens likewise can play an imperative part to increase okay trial

2. Buying Stage: At this stage, the personal selling plays a vital role, Sales promotion in the way of point of purchase, deals, rebates, discounts coupons etc helps to encourage the consumer demand.

3. Post Purchase Stage: This is the stage where the organization need to ensure that the chosen product by the consumer is the right product. This can be done sales promotion that helps them to make repeat purchases and also advertising help to make the assurance. Even the internet marketing also helps the consumers to understand the rightness of choosing the product through the reviews.

2.7.5. Distribution Channel

According to Forsyth (2002), the strategies of promotion help to assist to move a product through a proper distribution channel. There are two ways of channel one is the pull strategy channel and another one is the push strategy channel.

1. Pull Strategy: The producer guides its promotional mix to clients to urge them to approach retailers for the item. Seeing the interest from ultimate buyers, retailers request the item from wholesalers

2. Push Strategy: In this methodology, individual offering and sales promotion plays a significant role. Salesmen approach wholesalers to energize requests and give deals help and this builds buy of items as the wholesalers will give request.

2.7.6. IMC (Integrated Marketing Communication)

The elements of promotional mix are viewed as independent capacities are generally taken care by promotional specialists in different divisions of an organization. The sales force composed and dealt with its exercises autonomously of the sales promotion and advertising offices and open connection were frequently the obligation of outside organization on the other hand experts. Today the idea of planning the marketing communications program,  co-ordinate all special exercises to give a predictable message over all targeted audiences and also potential customers. Numerous individuals have likewise done investigates to see whether limited time components have impact on deals. For example, Ndambuki (2000) did an examination and figured out that to be sure limited time components have impact on deals which ended up being not quite the same as the discoveries of Ondiri (1998) who figured out that there is no huge distinction impact on deals. On the other hand, the distinction may have been brought on by geological contrast as Ndamuki (2000) did his exploration in country setting while Ondiri did research around the local area setting. Ndambuki's finding was likewise the same as (Kivuva, 2003) that, those items which are on advancement have a tendency to have more request than those which don't. Because of distinctive discoveries which may have been created by utilization of diverse associations and topographical contrasts, the specialist needs to see whether limited time components can have impact on deals among the customers.

2.8. Conceptual Framework

Source: Made By Author

2.9. Summary Of The Chapter

To meet the thesis objectives, the author focuses on the following theories in this chapter:

  • Promotion
  • Promotional Mix
  • Service Promotion
  • Process of Buying
  • New Services in Immature market
  • Factor effecting the promotional mix

All the above mentioned theories are very much relevant for conducting this study. The author will focus on the promotional mix that will be applied in the later chapters of the thesis like in analysis and findings of the thesis paper. In conducting this study, the author focuses on the promotional tools that will help to satisfy the purpose of thesis and along with the concepts of buying process of services and new services in an immature market. Based on the promotional tools discussed above (personal selling, public relations, sales promotion, internet marketing, direct marketing and advertising) the author will make a survey questionnaire for understanding the strategies of making an effective promotional plan for MobFree.

With the help of literature review that is being discussed in the paper, the author will try to find the below resources:

  • Finding out the most effective and important promotional tools that could be recommended to MobFree by comparing the analysis and findings from the questionnaire results in order to attract more customers.

 

Chapter 3: Thesis Methodology

3.1. Introduction

The process of thesis methodology mainly includes various activities that have to be performed to meet the end result. These are approved in legitimate time sequence for directing examination. Step by step activities are performed to finish the thesis. In this chapter, proper methods and procedures to conduct the thesis is been selected based on the objectives of the thesis. The author here mainly emphasizes on addressing the validity and objectivity of thesis by linking the findings and the results of the thesis with the objectives of the thesis. Each step described below is very important for conducting the overall thesis properly. This would help to develop an effective promotional plan for Mobofree.

The purpose of the study is to make a promotional plan for Mobofree and understand its effectiveness in Africa. Thus, based on the purpose the objective of this thesis is to answer the below mentioned thesis questions:

  • What are the necessary promotional strategies that can be adopted by the Mobofree?
  • How effective it is to implement a promotional plan in Mobofree?
  • What is the order of importance of the promotional strategies?

3.2. Thesis Approach

Generally there exists only two types of approaches to conduct a thesis, one is the inductive approach where the author mainly focuses on the observation and based on that data is collected and analyzed using different analytical tool and another one is the deductive approach, where the author initially tries to find some past studies related to the area of thesis and then tries to give a proper conclusion by analyzing the gap between the present and the previous study.  This analysis is mainly done using the testing of hypothesis, then analyzing the data and also implementing the concepts collected from the previous theories (Ketchen and Bergh, 2004).

In this current thesis, the author has already discussed the theories and concepts important to make a promotional plan in the second chapter that is literature review. Thus, the author has decided to use the deductive approach to conduct the thesis.

3.3. Thesis Design

Thesis design is the process of interpreting the data collected to conduct the research. Four different types of thesis design can be used by the author one is the casual research which is mainly conducted for understand and analyze the cause and effect relationship among different variables. This research mainly includes the video equipments, interview room etc. Then, is the applied research that mainly helps in identifying the right solution of a thesis problem (Newman and Benz, 1998). It mainly deals with the real life circumstances. Then is the exploratory research that is mainly conducted including a group to identify a cause behind an already stated problem and also reduce and proceed with the root cause and fourthly, the descriptive study which mainly uses facts by understanding and effectively defining the present scenario (Hamersveld and Bont, 2007).

Here, the author decides to conduct the thesis by using the descriptive design. The data are collected from the different marketing managers and investors of Mobofree. Through this the author tries to relate the study objective and conclusion.

3.4. Sources Of Data

The author mainly focuses on collecting both the primary and secondary data for conducting the present research. The thesis topic is to make a promotional plan for Mobofree. The primary data for conducting this present study is mainly collected from the marketing managers and investors of Mobofree, who are the people who are dealing with the products. The secondary data is mainly collected from the past records like online journals, books, articles that cover the concept of promotional plan. Both the secondary and the primary data is been collected to wrap different aspects of the study into single point that is promotional plan. The primary data is mainly related to response and behavior of the employees of Mobofree and the secondary data shows the importance and relevance of the promotional strategy concepts. However, both the data have some disadvantages and benefits that can help to conduct the present thesis effectively. These are as follows:

Primary Data: It is the data that is collected by the researcher or the author for conducting the thesis or any specific research. These data are unique in nature and straightforwardly identified with the issue or issue and current information. They are the information which the analyst gathers through different strategies like surveys, questionnaires and interviews etc. However, the disadvantage of using this data is that some respondents might give fake responses to hide the realities that might create issue later on the thesis.

Secondary Data: These data gathered by a gathering not identified with the examination ponder yet gathered these information for some other reason and at diverse time before. On the off chance that the analyst utilizes these information then these get to be auxiliary information for the current user. It gives an approach to get to the work of the best researchers everywhere throughout the world. Furthermore gives an attitude to the scientist that in which heading he/she ought to strive for the particular exploration. Then again, information gathered can bend the aftereffects of the examination. For utilizing secondary data a unique consideration is obliged to alter or change for utilization furthermore raise issue identified with credibility.

3.5. Intruments For Data Collection

For collecting the primary data, the author decides to use questionnaire that will be send to the target audiences through mail. Questionnaire is a situated of inquiries has been readied to solicit a number from inquiries and gather answers from respondents identifying with the examination theme. Various inquiries for the most part in printed or electronic structure are to be replied by the people. The structures regularly have clear spaces in which the answers can be composed. Sets of such structures are circulated to gatherings and the answers are gathered identifying with examination theme. A Questionnaire is a progression of inquiries asked to people to get measurably helpful data around a given point. At the point when appropriately built and mindfully controlled, polls turn into a key instrument by which articulations can be made about particular gatherings or individuals or whole populaces. Unseemly inquiries, mistaken requesting of inquiries, wrong scaling, or terrible Questionnaire arrangement can make the review valueless, as it may not precisely mirror the perspectives and assessments of the members (Hamersveld and Bont, 2007). A helpful strategy for checking a Questionnaire and verifying it is precisely catching the planned data is to pretest among a littler subset of target respondents. In an exploration or overview inquiries asked to respondents, and intended to concentrate particular data. It fills four fundamental needs: to (1) gather the fitting information, (2) make information practically identical and amiable to investigation, (3) minimize inclination in detailing and making inquiry, and (4) to make inquiries captivating and shifted. For our study reason a set of inquiries has been readied to gather data identifying with the theme of the study. In this study an organized poll has been utilized with diverse sorts of inquiries, for example, shut finished and open finished. Exceptional case has been taken to choose the scales for the inquiries for gathering of reactions successfully (Brace, 2008).


For collecting the data from the respondents who are placed at a long separation and don't have any correspondence office. They can be reached through sent mail. Just thing is obliged that the specialist ought to have the postal locations of the respondents. The mail may be given to the respondents or sent to them, yet in all cases they are come back to the scientist by means of mail. The expense included is less however no illumination can be given to the respondents if needed. Respondents can reply at their own particular accommodation. The respondents can't be one-sided by the specialists and the point of interest data can be gathered for the examination reason. Stand out detriment this instrument gives is that the reaction rate is less because of absence of enthusiasm for the subject of respondents and low proficiency rate.

3.6. Thesis Method

There are two different methods of conducting this thesis, one is qualitative and another one is the quantitative method. The qualitative research mainly focuses on improving the products and services of the organization and thus it is subjective in nature. However, quantitative research emphasizes on the numerical analysis of the services and product acceptance and thus, it is relativistic in nature. Here, the author mainly emphasizes on quantitative data to understand first the effectiveness of promotional plan and then based on that a plan is developed for Mobofree. Quantitative design is a phenomenal method for concluding results and demonstrating or refuting a theory (Ketchen and Bergh, 2004). The structure has not changed for a considerable length of time, so is standard crosswise over numerous exploratory fields and orders. After factual examination of the outcomes, a thorough answer is arrived at, and the outcomes can be honest to goodness examined and distributed. Quantitative analyses likewise channel out outer variables, if legitimately outlined, thus the outcomes picked up can be seen as genuine and impartial. Quantitative tests are valuable for testing the outcomes picked up by a progression of subjective examinations, prompting a last reply, and a narrowing down of conceivable bearings for subsequent examination to take (Newman and Benz, 1998).

The author mainly conducts a survey method for making a quantitative analysis. Survey is utilized to gather quantitative data about things in a populace. Overviews are utilized as a part of diverse regions for gathering the information even out in the open and private divisions. A review may be directed in the field by the scientist. The respondents are reached by the research individual through mail. This technique takes a ton of time, endeavors and cash however the information gathered are of high exactness, present and pertinent to the theme. At the point when the inquiries are managed by an analyst, the Survey is known as an organized meeting or a specialist managed review. At the point when the inquiries are regulated by the respondent, the Survey is alluded to as a poll or oversaw toward oneself overview. It is an effective method for gathering data from countless. Substantial tests are conceivable (Ketchen and Bergh, 2004). Measurable methods can be utilized to focus legitimacy, unwavering quality, and measurable noteworthiness. Surveys are adaptable as in an extensive variety of data can be gathered. They can be utilized to Survey mentality, qualities, convictions, and past practices. Since they are institutionalized, they are generally free from a few sorts of blunders. There is an economy in information gathering because of the center gave by institutionalized inquiries. Just inquiries of enthusiasm to the specialist are asked, recorded, classified, and analyze (Ketchen and Bergh, 2004).

3.7. Sampling Method And Size

As the current research focuses on the numerical analyzes the author emphasizes on the probability sampling. Here the researcher focuses on the non-probability sampling to collect that data. The reason behind choosing this sampling method is that it is quicker, cheaper and easier to conduct the study effectively. Further, this sampling method also makes sure that research study taking after a quantitative exploration configuration is not just relinquished in light of the fact that it can't meet the criteria of probability sampling or meeting such criteria is exorbitantly excessive or consumes a lot of time, such that it would not be supported. This could altogether lessen the potential for analysts to study certain sorts of populace, for example, those populaces that are shrouded or hard-to-reach, where a rundown of the populace essentially does not exist. It likewise serves to consider a moral way to figure out whether issues worth analyzing in more profundity, since fewer members are subjected to an exploration extend superfluously (Newman and Benz, 1998).

Thus, based on these advantages, the author mainly focuses on using the convenient sampling process. This sampling method helps the author to reach the sample chosen easily and also helps to gather the required information easily.

Here, the author focuses on collecting the data from marketing managers and investors of Mobofree and of sample size 30 to make an effective promotional plan with prior appointment.

3.8. Data Analysis

According to Govaert (2009), thesis studies should start with analytical strategy that would help the researcher with a new framework through which she or he can establish priorities for conducting the study. This process mainly includes tabulating, categorizing, examining and recombining the overall collected data for the study. Two analytical strategies should be emphasized on while performing the thesis study:

  • Emphasize on the theoretical proposition: The results from the past literatures should be compared with the present findings of the study. This is one of the most important strategies that should be used in any thesis study.
  • Creating a description framework: This is all about organizing the study.

According to Hedeker and Gibbons (2006), specific procedures should be utilized for analyzing the data; comparing the collected data with the previous theories as discussed above. Further, the quantitative data analysis mainly consists of three activities flow:

  • Data Reduction: This is the stage of quantitative analysis, where the author or the researcher mainly emphasizes and transforms the data collected. The main aim is to organize the data collected to draw proper conclusion linked with the objectives.
  • Display the data: After completing the reduction of the data, it should be compressed and organized for making effective conclusion
  • Drawing effective conclusion: Here the author decides the conclusion of the thesis with causal propositions and explanations aligned with the derived objectives.

This proposition of Hedeker and Gibbons is followed by the author to conduct the thesis. Firstly, the data was reduced by simplifying as shown in the next chapters, and then the analysis is made based on the reduced data. Later, on based on the reduced data and the analysis, final conclusion is drawn. The use of analytical tool during the data analysis helps the author to demonstrate the apt of concluding the thesis in an effective way. The selected methods of quantitative data rotate around the numerical data that are mainly collected from the primary data. In order to effectively analyze the numeric data collected, a SPSS (Statistical Package For Social Science) is used (Ntoumanis, 2001). This SPSS tool helps the author to have easy access to various functions like the descriptive statistics like median, standard deviation and mean and helps the author to find the statistical test easily. Further, it also has various charts and graphs that help the author to create the necessary charts easily (Field, 2009).

3.9. Limitation Of The Study

To carry out the present thesis study, the following limitations are expected to occur:

  • Location, time and cost factors can become the major issue
  • The marketing managers may not share their views on the topic properly
  • Sample size considered is not universal so results might differ.

 

Chapter 4: Results And Findings

Here the researcher uses the regression analysis model. Regression analysis is a statistical tool for understanding the quantifying relationship among the variables in the present study.

This statistical tool is used in order to evaluate three types of primary questions within the research process

  • To evaluate whether the different promotional tools have any impact on the promotions of Mobofree
  • To evaluate whether collaboration has any impact on Mobofree
  • To evaluate whether social networking is the best tool for promotion

Hence separate regression analysis has been done for the three separate questions. In order to analyze the impact of the different independent variables on the dependent variables the researcher has decided to frame three different regression models for the three different questions. However, for the other primary question that is question numbers 2 and 5 the researcher uses the statistical excel analysis to ascertain the results. For the next part of the questionnaire, involving the qualitative questions the researcher records the responses of the respondents and uses academic theories and secondary reference sources in order to analyze the responses obtained.

Question 4. Which promotional tools are more effective for Mobofree?

Multiple regression model

Effectiveness of promotional tool = A + B * Public Relation + C * Event and Experience + D * Sales Promotion + E * Direct Marketing + F * Advertising

Where,

A = Intercept of the model

B = Coefficient of Public Relation

C = Coefficient of Event and Experience

D = Coefficient of Sales Promotion

E = Coefficient of Direct Marketing

F = Coefficient of Advertising

The details of the analysis and findings are shown in the mentioned tables:

Regression Statistics

Multiple R

0.810565899

R Square

0.657017077

Adjusted R Square

0.585562301

Standard Error

0.594126747

Observations

30


Table 1: Regression statistics for effectiveness of promotional tools

(Source: Created by author)

ANOVA

         

 

df

SS

MS

F

Significance F

Regression

5

16.22832

3.245664

9.194866

5.43E-05

Residual

24

8.471678

0.352987

   

Total

29

24.7

 

 

 


Table 2: ANOVA table for effectiveness of promotional tools

(Source: Created by author)

 

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95.0%

Upper 95.0%

Intercept

-0.93992636

0.610125

-1.54055

0.13651

-2.19916

0.31931

-2.19916

0.31931

Public Relation

0.752877144

0.19024

3.957507

0.000587

0.360241

1.145514

0.360241

1.145514

Event and Experience

0.025044363

0.114599

0.218538

0.828857

-0.21148

0.261566

-0.21148

0.261566

Sales Promotion

0.51515429

0.114529

4.498023

0.000149

0.278778

0.751531

0.278778

0.751531

Direct Marketing

0.143011434

0.120619

1.185646

0.247369

-0.10593

0.391957

-0.10593

0.391957

Advertising

0.070095046

0.147438

0.475421

0.638785

-0.2342

0.374392

-0.2342

0.374392


Table 3: Regression coefficients for effectiveness of promotional tools

(Source: Created by author)

Question 6. Collaboration is helpful for Mobofree

Regression model

Collaboration is helpful for Mobofree = A + B * Collaboration with a big brand

Where,

A = Intercept of the model

B = Coefficient of Collaboration with a big brand

The details of the analysis and findings are shown in the mentioned tables:

Regression Statistics

Multiple R

0.463013055

R Square

0.214381089

Adjusted R Square

0.186323271

Standard Error

0.905145454

Observations

30


Table 4: Regression statics for effectiveness of collaboration

(Source: Created by author)

ANOVA

         

 

df

SS

MS

F

Significance F

Regression

1

6.259927798

6.259927798

7.64069

0.009978

Residual

28

22.9400722

0.819288293

   

Total

29

29.2

 

 

 


Table 5 :
ANOVA table for effectiveness of collaboration

(Source: Created by author)

 

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95.0%

Upper 95.0%

Intercept

1.3566787

0.412035311

3.292627268

0.002691

0.512663

2.200695

0.512663

2.200695

Collaboration with a big brand

0.368231047

0.133215302

2.764179791

0.009978

0.095352

0.64111

0.095352

0.64111


Table 6:
Regression coefficients for effectiveness of collaboration

(Source: Created by author)

Question 7. Social Networking is the best tool for promotion

Regression model

Social Networking is the best tool for promotion = A + B * social networking

Where,

A = Intercept of the model

B = Coefficient of social networking

The details of the analysis and findings are shown in the mentioned tables:

Regression Statistics

Multiple R

0.322671

R Square

0.104117

Adjusted R Square

0.072121

Standard Error

1.423892

Observations

30


Table 7 : Regression statistics for effectiveness of social media promotion

(Source: Created by author)

ANOVA

         

 

df

SS

MS

F

Significance F

Regression

1

6.597518

6.597518

3.254065

0.082016

Residual

28

56.76915

2.02747

   

Total

29

63.36667

 

 

 


Table 8:
ANOVA table for effectiveness of social media promotion

(Source: Created by author)

 

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95.0%

Upper 95.0%

Intercept

1.368085

0.545573

2.507612

0.018229

0.25053

2.485641

0.25053

2.485641

Social networking

0.324468

0.17987

1.803903

0.082016

-0.04398

0.692915

-0.04398

0.692915


Table 9:
Regression coefficients for effectiveness of social media promotion

(Source: Created by author)

The responses of the other questions are recorded as below:

Question 2: Analysis of the gender composition of the respondents

Options

Total respondents

Number of responses

Percentage of responses (%)

Male

30

20

66.66%

Female

30

10

33.34%


Table 10: Gender composition of respondents

(Source: created by author)

Figure 1: Gender composition

(Source: created by author)

Among the total number of respondents interviewed the gender composition of the respondent’s shows that more than 65% of the respondents were male and around 33% of the respondents are female.

Question 5. If Mobofree is endorsed with the celebrity from Africa, will it affect the purchasing behaviour of the target audience in Africa?

Options

Total respondents

Number of responses

Percentage of responses (%)

Yes

30

19

63.33

No

30

11

36.66


Table 11: Celebrity endorsement by Mobofree

(Source: created by author)

Figure 2: Celebrity endorsement affecting consumer behavior

(Created by author)

The data findings shows that around 63% of the respondents confirmed that celebrity endorsements will be helpful for Mobofree however 36% of the respondents opined that celebrity endorsements will lead to further promotional expenses and there is no security about the success rate of the same.

Question 8. How does Mobofree decide the promotional budget? What factors are generally taken into account for arriving at promotional budget?

This question had two parts. In the fisrt part the researcher’s motive was to acquire responses to the process in which Mobofree decides the promotional budget. In the second part, however the researcher wanted to focus on the factors that Mobofree should keep in mind while framing the promotional budget.The overall responses collected from the 30 participants are summarized below for the two parts of the questions together.

  • Media of promotion (high for traditional media like newspaper)
  • Setting of objectives
  • Industry and financial reports
  • Composition of Target population
  • Advertising frequency
  • Product suitability
  • Competitor analysis

Question 9. What kind of support does Mobofree provide to buyers and service providers?

The overall responses collected from the 30 participants are summarized below:

  • Provides online selling opportunities for consumer electronics and consumer durables like PCs, laptops, phones (both old and new)
  • Provides exchange services between the users of the application
  • Allows users to access necessary background information about on another in order to make friendships
  • Provides enhanced customer care services
  • Provides a combined service of social network along with classifieds from different fields

Question 10. What plans does Mobofree devise in order to create stronger and long lasting relation with customers?

  • Provides 24 hours customer service
  • Keeps a detail database of the users so that the purchase and exchange transactions can be successfully and reliability made

 

Chapter 5: Data Interpretation

5.1. Statistical analysis

Multiple regression analysis for questions 5, 6 and 7 shows that the coefficients 0.810565899, 0.463013055, 0.322671 for the questions respectively indicate that the co relation among the variables of independent variables of the dependent variables is positively valued. Therefore the dependent variables effectiveness of promotional tools, effectiveness of collaboration and effectiveness of social network promotion is positively linked with the independent variables as mentioned.

The coefficient of determination (R) is valued at 65%, 21% and 10% respectively. From this, it can be concluded that 65%, 21% and 10% of variation that is related with the value of dependent variable is analyzed by the variable of independent in order to come to a feasible point.

The adjusted R square, which is considered as a measure of explanatory power, is valued at 0.585562301, 0.186323271, and 0.072121 respectively. The interesting point that can be related with this statistical data is that it is neither considered s a percentage such as R square nor as a significance test that is F statistics. Therefore, it can be represented as adjusted R square and are not generally explained.

The standard error of regression is valued at 0.594126747, 0.905145454, and 1.423892 respectively. This value indicates the variation estimate in relation to the observed changes in the dependent variables. Analysis of variance (ANOVA) shows the calculation where the dependent variable is broken down into unexplained portions and explained portions separately. From the estimated regression lines, it is seen that for question number 4 the independent variable public relation is positively linked with the dependent variable showing that majority of the respondents supports public relations as an effective way to promote Mobofree.

The SS regression is the variation that is outlined by the regression line and SS residual is the variation calculated based on the dependent variable. As per the calculations the SS regression for the questions are 16.22832, 6.259927798 and 6.597518 respectively. The SS valuation is followed by the F static. F static has been calculated based on the mean square regression in relation to Mean square residual. After the calculations, it can be suggested that the proposed regression line comprises of the approximate co efficient, coefficient standard errors, computed statistic, corresponding P value and confidence intervals. Thus the relationship between the dependent and independent variables are positive. In the open-ended questions, the researcher is able to understand the opinion of the customers regarding the services, products and other plans of Mobofree. The suggestion in relation to providing of 24 hours customer service will help Mobofree to attain the customer satisfaction levels. The company can thus make use of the following responses to develop the market for the newly launched app.

5.2. Data analysis

The researcher uses the quantitative excel sheet calculation and research philosophies and academic references in order to analyze the data of the remaining questions.

Question 2: Analysis of the gender composition of the respondents

The researcher framed this question in order to determine the gender composition of the target customers. The promotional strategies are generally framed keeping in mind the demographic composition of the target customers. Gender determination is an important part of demographic profile analysis of the respondents. The collected data shows that more than 65% of the respondents are male which suggests that the male respondents are majorly the users of the services and products of Mobofree. From the gender of the respondents, it is confirmed that females in Africa are still not comfortable with the use of online apps. Although 35% of the respondents were female however, majority of the female respondents opined that they use Mobofree only for the social networking purpose. Hence, they are not aware of the other services of Mobofree. Thus the company should formulate two types of promotional strategies. Firstly, the promotional strategies should be generated in order to make the exiting male customers aware of the services of Mobofree and provoking them to use the services. Secondly, the promotional strategies should be directed towards the female population of Africa. The low percentage of female users gives Mobofree an opportunity to focus on a new target customer segment. Thus the company should use new and effective promotional strategies like celebrity endorsements by female celebrities in order to connect with the female population of Africa so that they should equally avail the services of Mobofree.

Question 5. If Mobofree is endorsed with the celebrity from Africa, will it affect the purchasing behaviour of the target audience in Africa?

The researcher framed this direct question in order to understand the effectiveness of celebrity endorsements in case of initial promotional strategies for an online app company. The responses shows that majority of the respondents opined that celebrity endorsements will be helpful for bringing Mobofree in the front line

Since Mobofree is a company targeting the young age population of the country hence the celebrity endorsements should be made accordingly. The company can use sportspersons or any celebrity from the entertainment industry to endorse the services and applications of Mobofree. With the help of celebrity endorsement, the company will be able to attrct the attention of the target population and thus the customers will register themselves with the services of the company. It is to be noted that appropriate celebrity endorsements helps the company to gain the confidence and loyalty of the customers from the very beginning. In case of Mobofree thus the endorsements will help the company to generate loyalty from the customers at the initial stage of the company and this will act as a source of revenue for the company.

Question 8. How does Mobofree decide the promotional budget? What factors are generally taken into account for arriving at promotional budget?

Advertising budgets are assumed to be expenses for the organization without any or vague returns for the company. However, for companies like Mobofree who are in their introduction stage of the industry product life cycle, extensive promotional strategies are very important. On being asked about the necessary factors that Mobofree should consider in order promoting the services various opinions were obtained. Majority of the respondents suggested that primarily Mobofree should first set the objective of the business that is the company should try to analyze the vision and mission of the company. This will help the company to promote the vision and the company will be able to connect to the customers readily. The other important factor is the choice of the suitable advertising media based on the composition of the target population. Since the majority of the target population and users of Mobofree are males, hence the company can adopt social media promotion, mobile alerts and hoarding promotions outside golf and swim clubs, bars etc. Moreover, some percentage of the respondents opined that analyses of the promotional strategies of the Competitors are also important for Mobofree in order to use different techniques and make the product and service competitive. Finally, a certain percentage of the respondents opined that to make a promotional campaign successful the advertising frequency should also be included within the promotional budget. Since Mobofree is a new company, hence, the frequency for advertisement should be high and thus the promotional budget should be framed accordingly. Promotional budget is a repetitive process and Mobofree needs to repeat the budget making process for all new products and services and for each financial year. Thus abiding by the stated factors will help Mobofree to construct a feasible budget for the product and service.

Question 9: What kind of support does Mobofree provide to buyers and service providers?

On analysis of the data in relation to the services of Mobofree it was noted that the customers have provided with the various services that the online market place provides. This shows that the customers are aware of these services of Mobofree only and hence the company should frame the promotional strategies for the other services. On being asked that service of Mobofree that is frequently being availed by the customers, majority of the customers opined that the online swap deals are generally the most availed service of Mobofree followed by the social networking services. However, the secondary analysis shows that the customers are not aware of two important services of Mobofree. Firstly, Mobofree provides services like horoscope readings, information for domestic help, repair services, health beauty and fitness services. Secondly, the company also provides access to easy product formulas for the FMCG products like automobile cleaning products, soaps and body washes, detergent powders, house cleaners, fabric softeners’ etc, which helps the customers to manufacture these products and start an independent home business.

Thus, the company should focus extensively in devising strategies for promoting the new services to the customers. If Mobofree is able to promote these two services then the company will be able to attract more visitors and registered users for the application. Mobofree acquires around 80% of its revenue from the registered users. Thus in order to increase the user base the company needs to promote these services in a successful manner. The product formula for the FMCG product is an innovative service provided by the company that is not available with any other competitor online companies. Thus, the promotional technique should exclusively focus on creating awareness of this service not only in Africa but also in other countries where the facilitie of online mobile classifieds are not available.

Question 10. What plans does Mobofree devise in order to create stronger and long lasting relation with customers?

The researcher produced this question in order to analyze the customer relationship strategy of Mobofree. The customers were of the opinion that Mobofree generally has a 24 hours customer care service facility and has a good personal database management. This shows that the company’s users are satisfied with the plans that the company employs for managing the customers. However, during the survey it was seen that the customers are more satisfied with the data base management policy of Mobofree. Since majority of the company’s products are traded online involving the online transactions require the financial as well as personal information of the user. Moreover, the company also provides a social networking facility that requires the users use the personal information of each other. Thus, security and assurance of relevant data are the two major features of Mobofree. Thus from the opinions of the users it may be analyzed that because of the data security plan the company is experiencing high volume of registered users. The other customer relationship policy of Mobofree is the 24 hours online customer care service. This service helps the users to make online purchases and exchanges at any time of the day. Effective customer care service helps the company to interact effectively with the customers and solve their problems readily at any point of the day.

Chapter 6: Profit Of Organization

Profit of an organization depends on the budgeted expenses and the amount of assests and liabilities that the company is able to maintain in the financial year. Mobofree is a new company and the company is aiming to spend considerable amount of financial resources for promotional strategies in order to attract more number of registered users. In the initial stage, the company may have to incur high expenses however; the expense will be compensated when the company starts earning considerable amount of revenue. Since the services and policies of Mobofree are promising and the company has no competitors in Africa thus there is prospect of revenue growth for the company. Hence, the company can take the risk of investing in promotional expenses.

Due to lack of any appropriate financial data or annual report of the company, the following budgeted financial statement and balanace sheet has been generated based on certain assumptions as stated below. The following projected profit and loss for the three years will show the projected profit of MoboFree. For calculation of the profit and loss, it is assumed that revenue will grow by 5% every year with no assumption of the inflation rates.

Estimated Profit and loss for three years based on the above assumptions for Mobofree

Particulars

 Year1 ($)

 Year 2 ($)

 Year 3 ($)

Revenue

300000

315000

330750

Cost of sales

1000

1100

1250

Production expenses

0

0

0

Total cost of sales

10000

11000

12500

Total revenue

290000

304000

318250

gross margin

234300

239650

246850

Expenses

     

Selling expenses

500

1000

1500

Office and administrative expenses

8000

8500

10100

Social promotion expenses

10000

12000

11000

Customer care services

5000

5500

6200

Insurance

1200

1350

1400

Website expenses

10000

12000

13000

Salaries

15000

15500

17000

IT expenses

4000

5000

7000

Other operating expenses

2000

3500

4200

total expenses

55700

64350

71400


The projected profit and loss statement for Mobofree shows that the company starting from year 1 will expect to earn gross profit at the rate 80% , 78% and 77%. The gross profit rate is gradually forecasted to decrease because the company has estimated that the gross profit margin will also be affected by various factors like inflation rates, changes in the purchase behavior of the consumers and other variable factors.

Estimated balance sheet statement for the three financial years of Mobofree

Particulars

Year 1 ($)

 year 2 ($)

 Year 3 ($)

Assets

     

Current assets

     

Cash incomings

100000

250000

350000

Investments

50000

80000

120000

long term assts

150000

180000

220000

Total assets

300000

510000

690000

Liabilities

     

current liabilities

     

accounts payable

11500

35000

85000

Current borrowings

0

0

0

long term liabilities

     

paid in capital

150000

190000

210000

Retained earnings

0

0

0

Total liabilities

161500

225000

295000

Net worth

138500

285000

395000


The balance sheet is formulated keeping in mind the low level of liability and loan that the company is anticipating it will incur in the initial years of transactions. The net worth is calculated by subtracting the total liabilities from the total assets. Based on the above budgeted expenses and above net worth estimation the company can effectively use the promotional strategies in order to generate more customer purchase response.

Chapter 7: Conclusion And Recommendation

This thesis study was conducted to develop promotional strategies for MoboFree in Africa. Therefore, this chapter summarizes the overall study conducted by the author by synthesizing all the findings given by the respondents. This present study sought to respond to four objectives, first to determine the target population of Mobofree for creating and carrying out the promotional activities of their products and services, second to determine the promotional mix that Mobofree can utilize, third to evaluate the promotional factors that influences the sales of MoboFree and lastly to identify the issues or obstacles that Mobofree can face while designing the promotion mix.

From the first objective, the MoboFree mainly decided to target the African market before making its promotional mix, the reason behind this is that the market is still untapped by similar companies. By making a good entry in the African market, the organization would like to take the first mover advantage. By making such an entry, the MoboFree can become the market pioneers. Further the advantage of pioneering in the African market is that it would help to increase the profit of the organization overtime. Additionally, they can also benefit from the technological factors, where they can apply their patents for the required or necessary technology so that other companies do not try to copy it. Also, they can have control on various resources that are essential for the organization. They can also enjoy over the switching cost from the buyers side. If the customers find that the switching towards the new brand is costlier, they will stick to this brand. This helps them to dominate the market for a longer period.

For second objective, data collected signifies that public relations is the most essential promotional mix element for MoboFree that would help the organization to increase the organizational sales. The Public relations helps the in developing and increasing the reputation of MoboFree and also retain the African customers for a long period of time. This public relation can be done social networking sites. The reason behind this is that there is rapid increase in the use of internet based tools and applications. In few years, the social analysts have found that the internet penetration in Africa has increased by 5% compared to last year. Creating online public relation through social media empowers moment imparting of data and, as the quantity of individuals utilizing the Internet keeps on climbing, with numerous blogging themselves, discharges you post can be effortlessly grabbed and posted by different bloggers and online writers. This offers you more extensive scope of your news and guarantees it achieves a bigger target audience. Further, everyday individuals can post their musings on a mixed bag of subjects. Social Networking sites permit MoboFree to make inquiries and get answers rapidly from any number of customers, with shifting enthusiasms and experience. By utilizing these correspondences channels, MoboFree can create associations with customers, which MoboFree can then use in PR movement and partner focusing to guarantee MoboFree posts are significant and of investment so more prone to be perused. Expanding on this introductory relationship to connect with and keep customers, and anybody they forward MoboFree site connection to, builds activity to MoboFree site, issuing it a superior remaining on web indexes and drawing in much more customers. MoboFree additionally ready to recognize what individuals are saying in regards to their business so they can react rapidly to anything that emerges or utilize their adherents to disperse terrible “WOM(Word of Mouth)".

Discussing the third objective, from previous data it is found that as there is no specific way of conducting the promotional mix strategies, various factors MoboFree need to consider while planning to make its customized strategy. Factors like the characteristics of the product or service determines the information that is need by the customer, the direct competition        and also the target market. Different stages of product life cycle, distribution channels and also communication strategy plays vital role in determining the promotional strategies. Addition, the budget and resource allocation also reflects the objectives of the promotional mix. From the chapter 6, it is clear that MoboFree is expecting to earn gross profit at the rate 80% , 78% and 77%. The gross profit rate is expected to decrease because the gross profit margin may also be affected by various factors like inflation rates, changes in the purchase behavior of the consumers and other variable factors.

However, the accomplishment of the plan is not very easy due to several obstacles. These obstacles give answer to the fourth objective. Firstly, Africa is a developing country and finding the potential customers is quite difficult. Though MoboFree can be used by anybody of any ages above 18years, still there is issue of how many people would understand the significance of the organization, and how its services is beneficial to them. The campaign implementation within the target audience is quite scattered, this reduces the overall promotional output. Additionally, MoboFree is a startup and is trying to target the untapped market. It requires lot of financial resources. Therefore, cost is also an obstacle. Further, thought various recent researches show that there is a rapid growth of internet, however, the country still lacks in penetrating the social networking. This is due to lack of affordable, available internet.

From the above discussed objectives, the following recommendations can be made:

  • The management of Mobofree should determine their choice of promotional mix that would actual serve the objectives of the organization
  • MoboFree should emphasize on periodic measurement as this has a strong impact on the promotional activities. This would help them to gain more advantage.
  • Since, the thesis findings report that cost is an obstacle for MoboFree. The organization can think of collaboration. As the data proves that collaboration can help the organization to boost its profit margin and also get access to various resources.
  • Further, it is also recommended that MoboFree can offer free applications initially to help the African users to have easy access in their mobile itself. This would help the non-internet users also to get aware of MoboFree.
  • MoboFree can start off with online Public relation strategies using social network. However, they should not stick to only one strategy. They should give a try to all the other strategies to see if the present one is more beneficial compared to previous one or not.

 

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