AN ANALYSIS OF THE FEASIBILITY OF DOOR-TO-DOOR SIM CARD DISTRIBUTION: THE

SMARTA CHALLENGE

Introduction.

Mobile phone devices have been an essential part of individuals' daily life over the past
few decades. From being just a tool of communication, via text and call, the functions of phone
have expanded to the point that it has become a tool of connection and interaction wherein people
can interact with one another beyond the usual text and voice communication to that of social
media, video calls, and the like. Furthermore, transactions that are mostly done face to face can
now be done via mobile phone. In the data provided by Statista, in 2023, there is an estimated
80.34 million mobile phone users in the Philippines, and this number is expected to grow by 14.94
percent in the year 2028. Hence, with this rate of growth, mobile phones and other mobile phone-
related services and products are a booming and lucrative business.
Smarta, a local telecommunications company specializing in sim cards aims to take
advantage of this opportunity by expanding its base of customers by employing the strategy of
distributing free sim cards to various households with the hope that such sim will be activated
later which in turn can generate revenue through the utilization of various services such as load,
internet, and the like from the potential subscriber. In order to maximize the return, the company
decided to employ a door-to-door distribution using a sampler that will be deployed in various
locations identified. The aim of these approaches is to be able to reach as many as possible and
distribute as many of the target sim cards as distribution.
In line with the abovementioned, this study is focused on analyzing whether or not the
employment of the door-to-door strategy of the company is feasible or not in line with its intended
objectives. At the end of the paper, the researcher hopes to provide a final decision on whether
to pursue the strategy or not.

Statement of the Problem

As stated in the abovementioned, this paper aims to explore the feasibility of the door-to-
door distribution of SMARTA to maximize its distribution of sim cards with the hope of generating
of additional revenue once the sim packs has been activated.

Scope and Limitations

This research paper will only focus on the analysis of the feasibility of the door-to-door
distribution of SMARTA on its sim cards. As such this paper is not concerned with or does not
include any form of analysis of another marketing strategy. Furthermore, the analysis is limited to
the location identified by the company as well as the indicated amount of budget for other
expenditures of the project. Other variables not indicated in the paper is not considered in the
analysis.

Literature Review

This section of the paper, provides the review of related literature that will help provide
more context of the study.

The Challenge of Marketing

The competitive landscape of business has been one of the many compounding
challenges that business needs to contend in the context of marketing its marketing product and
services.. In today's globalized economy, companies face intense competition from both
established players and innovative startups. It is of great importance to new and innovative ways
to market their products and services, utilizing not only traditional means of marketing but also
new methodologies of marketing. Marketers in short must identify and communicate their
product's unique value proposition to differentiate it effectively within the market. (OECD, 2017).

With the challenges of marketing, it is important that marketers employ the form of analysis
that will evaluate the feasibility and the productivity of various approaches in order to employ a
strategy, that is the most feasible and the most productive. (Alkhayat and Ahmed, 2022). This is
to ensure that the organization is able to maximize the return on investment of the resources,
whether finances, man-hours, materials, and effort. Hence, the feasibility of the marketing and its
strategy for distribution needs to be established in order to make the necessary and appropriate
decision.

A successful marketing strategy is essential to a product or service's success. Along with

boosting revenue, it also strengthens brand recognition, encourages client loyalty, and gives
businesses a competitive edge. Furthermore, a successful marketing strategy can provide an
avenue for the company to increase its revenue, as highlighted in the study of Ambler and Roberts
in 2008.

Door to Door Distribution as Marketing Approach

Door-to-door marketing has been utilized by companies to contact with clients face-to-
face at their homes. Direct delivery of marketing materials or products to homes enables targeted
communication and one-on-one interactions. The following literature review provides information
on the historical significance, advantages, disadvantages, and effectiveness of door-to-door
delivery as a marketing strategy.

The practice of door-to-door distribution dates back to the early days of trade. Hansen
(2012) asserts that direct sales pitches to homes were a common tactic used by traveling
salespeople. The delivery of printed materials, samples, and subscription services have all been
incorporated into this strategy over time, according to Walsh and Hildebrandt (2016).

Door-to-door delivery has its roots in early commercial history. As Hansen (2012) underlined, it
was a standard tactic used by itinerant sellers to directly pitch their goods to residences. As
discussed by Walsh and Hildebrandt (2016), this method has evolved over time to include the
provision of printed materials, samples, and subscription services.

Through door-to-door distribution, marketers can precisely target specific geographic

areas or demographic groupings. Door-to-door distribution offers personalized messaging and
services, making it helpful for focusing on niche markets or communities, according to West et al.
(2002). This is a strategic advantage.

Door-to-door delivery has disadvantages in addition to its benefits. Schmidt and Eisend
(2015) talk about how consumers could perceive door-to-door salespeople as being invasive or
unpleasant. Additionally, as Wilcox et al. (2013) examined, door-to-door distribution necessitates
significant logistical efforts and can be time-consuming.

The results of door-to-door distribution, according to research, can be favorable in terms

of conversion rates. In comparison to other kinds of advertising, the face-to-face character of this
strategy can result in higher attention levels and memory rates, claim Polatoglu and Ekin (2001).
Furthermore, Sundaram et al. (1998) discover that individualized interactions have a considerable
impact on consumers' intentions to make purchases.
Distribution from door to door is still evolving in the digital age. Studies like Kim et al.'s
(2018) investigation look at how it might be integrated with online platforms to improve the entire
marketing plan. Through this combination, firms may use both analog and digital resources to
take a more thorough approach.

Sim Card Distribution Strategy

In the context of the telecommunications industry, the continuous increase in the number
of users of mobile phones and the increased number of subscription to various mobile phone-
related services has created a stiff competition to among service providers of such devices and
services (Meena and Geng, 2022). This include the providers of sim cards.

In the past, retail stores, information kiosks, and service facilities have been the main
distribution routes for SIM cards. However, the investigation of alternate distribution strategies
has been pushed by the growth of digitization and the demand for convenience. In order to reach
a larger consumer base, the idea of door-to-door SIM card distribution has come to light (Locket,
2018)
 Door-to-door distribution has been noted as being somewhat successful for promoting and
selling SIM cards. This is especially true in locales where local engagement and interpersonal
connections play a significant role in consumer choice. Through door-to-door marketing, telecom
companies may establish a personal connection with potential customers, respond to their
questions, and overcome any adoption barriers. Below is a brief explanation with relevant
citations.

Through door-to-door marketing, telecom companies may individually engage with

potential customers, successfully addressing their issues and educating them about the features
and benefits of SIM cards. According to Sundaram et al. (1998), door-to-door distribution is
particularly effective for providing difficult product information like telecommunications services
since one-on-one interactions have a beneficial impact on consumers' intents to make a purchase.

Analysis of Gap
This study is focused on evaluating the feasibility of door-to-door distribution as strategy
for distributing sim cards of SMARTA. As indicated in the above literature, with the degree of
competitiveness in the market, it is important to employee variations of strategy. One of this
strategy is the door to door distribution. Some literatures would contend that such strategy is
effective while other contends otherwise. Hence, in this paper it will explored how feasible the
strategy is in the context of SMARTAs objective.

METHODS

Research Design

This study will utilized a mixed method approach as its research design. This means that it will
employ both quantitative and qualitative research designs. For the quantitative method, it will
utilize a cross sectional deign while for its qualitative component it will employ an In Depth
Interview (IDI) with key informants. Then the research will corroborate the results in order to come
up with the results which will serve as basis for the discussion and conclusion. In addition to the
data provided by the quantitative and qualitative domains of the study, the research will also utilize
data coming from various sources for further triangulation of result.

Sampling and Respondents

This study will use non-probability sampling technique specifically quota sampling and
snowball sampling as its method for choosing respondents. All in all this study hope to have 500
participants and respondents for the quantitative portion of the study and 25-30 in the qualitative
part.

Instrument

This study will employ survey forms and interview forms as its primary research
instruments for the study.

Statistical Tool

For the quantitative part of the study, this will utilized statistical analysis tool such as
Descriptive Statistics, Frequency Distributions, Crosstabulation and Chi-Square Test, Logistic
Regression, and Principal Component Analysis (PCA).

For the qualitative part of the study this will utilized thematic analysis to draw out emerging
theme from the data being analyzed.

Implementation Plan

For SMARTA's 100-day SIM card distribution, the marketing agency requested a
Php5,000,000.00 contract (SIM card fees not included). ]
 As per the sampling plan proposed by the marketing agency mentioned earlier, the
allocated time for distributing SIM cards is limited to six hours per day for a team of ten samplers.
Given that there's a population of 26,213 individuals residing in a barangay with an average
household size of four, similar to Barangay Bangkal in Makati, which has around 5,698
households, and considering the area of 0.88 km², the samplers will need to cover approximately
70.809 kilometers each day.

The marketing agency has suggested a velocity of 40 kilometers per hour, indicating the
number of households a sampler can visit within an hour for calculation purposes. On average,
about 37.50 seconds are estimated to be spent during a 45-second chat time (for SIM card
acceptance/declination) plus an additional 30 seconds for households that don't respond at the
door.

During the specified sampling period of one hundred days, with ten samplers working six
hours each day, the target is to reach sixty-five households per hour, resulting in potentially
reaching around 390,000 households.

According to the marketing firm's projections, the new consumers brought in by SMARTA
are expected to yield an average annual return of Php13,162,600. This calculation accounts for
the production cost of Php40.00 and credit cost of Php50.00 for the SIM card, resulting in a total
cost of Php35,100,000.00.

Discussion based on the guide question provided

To optimize the number of hits every day throughout the whole 100-day sampling period,
SMARTA would need to carefully choose which specific barangays to visit. SMARTA must take
accessibility, household size, and population density into account in order to do this. The hits are
calculated or estimated by considering the following components:

 Households Visited Per Sampler per Hour: SMARTA has suggested a sampler's ability to
visit around sixty-five households in an hour.

 Working Hours per Day: With ten samplers working for six hours each day, the total
working time available per day is 60 person-hours.

 Chat Time and Door Non-Response: The average time spent per household includes the
45-second chat time and an additional 30 seconds for households that don't respond at
the door.

 Population and Household Data: Data on population, average household size, and the
number of households in different barangays are used to estimate the potential reach.

By taking these factors into consideration, SMARTA can determine the approximate number
of families in each barangay that can be practically reached each day. By selecting barangays
with a larger population density, a smaller average home size, and better accessibility, SMARTA
can enhance the number of hits per day.
 In order to determine the total hits possible for 100 days of sampling, SMARTA would multiply
the daily hits by the number of days. The breakdown of hits by city, region, and barangay size can
be derived from the distribution and characteristics of the chosen barangays.

The amount of hits might be 500,000 or more, depending on the anticipated daily hits, the
total number of days, and the racial and household characteristics of the chosen barangays. If
the computed hits fall short of the intended number, SMARTA may consider including additional
barangays to increase its coverage. When making this decision, it is important to consider the
logistical feasibility, the resources at hand, and any potential impacts on the nature of interactions
and data collection.

SMARTA's strategy should focus on picking barangays with a dense population, small family
sizes, and simple accessibility in order to maximize hits per day. The estimation of hits is based
on the aforementioned factors, and in order to reach the 500,000 hit target, it could be essential
to extend to other barangays while carefully balancing practicality and efficacy.

Additionally, the number of households visited every hour determines how often samplers
are used. The hourly breakdown would be 650 households per hour (65 households per
sampler/hour * 10 samplers) if the goal was to reach 65 households each hour while ten samplers
worked concurrently for six hours each day.

On the other hand, the time invested in chat conversations and door-to-door sales is the
expense of communicating with a prospective hit. The cost of transportation covers both walking
and using a van. The distance covered by each sampler at a speed of 40 km/h can be used to
compute the cost of van trip. Costs associated with walking might be computed similarly but more
slowly.

There are a lot of tactics that could be used to increase the number of hits:
• Improve sampler routes for better coverage.
• Boost sampler productivity to cut down on talk and door-knocking time.
• When demand is high, think about extending working hours or adding more samplers.
• Concentrate your efforts in high-density regions where households are closer to one
another.

Now, if the goal of the sampling strategy is to maximize sampling reach, is it advantageous
to visit provincial barangays outside of Metro Manila? The answer is that if provincial barangays
outside of Metro Manila have a sizable population density and the logistics of transport and
distribution are workable, it may be profitable to visit them. The population size, acceptance rates,
and conversion rates in these areas would all be important success criteria for the plan.

Based on the results, people in urban and suburban locations, between the ages of 18
and 45, who often use mobile devices and have moderate to high income levels, may make a
strong target market profile for SIM distribution. These people are more inclined to use new
technology and gain from what the SIM card has to offer. Changes in acceptance and conversion
rates would also have a direct effect on hits, which is another factor to take into account. The
amount of hits would probably rise proportionately if these rates rose, and vice versa. To
determine how these modifications impact the project's viability and profitability, a sensitivity
analysis should be performed.

Last but not least, the expected yearly return of PHP 13,162,600 should be compared to
the total expenditure of PHP 35,100,000. The investment might be thought to have been
worthwhile if the ROI is deemed sufficient. If not, a counter proposal can include modifying
expenses, looking into different marketing plans, or locating possible revenue sources to increase
the project's profitability.
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