ZONGs Circle

SUMMARY :

ZONG recently launched a youth brand called Circle, calling it the most
economical youth brand, on June 12, 2013 with the tagline
hamesha together that make a sense that your friends are always with you.

There are some gossips that Circle is in fact a re-branding of M9. But Ahmed
Mustafa Haq, Head of the Youth Segment Zong, disputes this perception and
explains that M9 was never positioned as a youth brand.

With the brand name Circle and tagline hamesha together it became clear
that friendship was going to be at the core. The brands role is to bring friends
closer together, and the product is specifically designed to do that. Everyone has
their own circle of friends, and this product allows all friends to be even closer by
joining an exclusive circle of friends. Add to that the fact that the circle shape has
a strong indirect link to Zong, and voila, Circle was born.

In terms of its colours, Circle is very similar to M9 (a package plan launched

by Zong in December 2010 which has since been discontinued), but Mr. Qasim
Makkani, Director Creative & Strategy, Spectrum Y& R said that this was
completely unintentional. The colour choice was made very strategically. We
looked at the current setting of colours in the logos and brand templates of all the
competition brands, and finished a different best-looking colour combination
that was not already taken.

Circle is the most economical brand for the youth as it gives lowest on-net
and off-net base rates, the lowest FnF rates and if a customer joins the Circle
Club, he/she can make unlimited calls and unlimited SMS to friends at the best
rates in the industry! The coolest thing about the Circle Club is that an unlimited

number of people can join it, so Circle Club users can invite their friends to join
in.

Circles core audience is young people (ages 18-25). It targets the real youth of
Pakistan who strongly believe that they are special and want to create experiences
of their own. And thus want to find likeminded friends to do it with.

Circle differentiates itself by its campaign which is based on youth lingo,

popular youth references and youth experiences. It delivers exactly what the
youth asks for. Circle has been introduced after almost a year of consumer
research. It will try to come up with more innovations that the youth need and
ask for because that is the mission.

INDUSTRY ANALYSIS
HISTORY OF ZONG

Zong is China Mobiles brand in Pakistan. China Mobile Pakistan (CMPak)) is a

100% subsidiary of China Mobile. China Mobiles first overseas operation came
about when acquired a license from Millicom to operate a GSM network in
Pakistan.

Paktel was the first ever company granted license to carry out cellular
phone services Pakistan. However after the launch and rapid success of its
competition in 1998, it lost market share. In 2003, Millicom Corporation bought
Paktel. In January 2007 Millicom sold Paktel to China Mobile.
Paktel was re-launched in April 2008 with the brand name Zong.
Zong is the first International brand of China Mobile. It is meant to empower and
liberate the people of Pakistan in every nook and comer of the country. CMPaks
edge comes from the experience and expertise of running the worlds largest
telecom service and the commitment they make to setting quality and customer
relations standard.

Mission Statement :
To be the leading mobile operator of Pakistan by continuously innovating and
offering exceptional quality services; to be a good corporate citizen and envoy 1 of
friendship between China and Pakistan

Vision Statement :

Zongs vision is to make communication exciting and become the leading mobile
operator in the Pakistan.

Products and Services :

ZONG offers a wide range of new services to serve customers even better. Below
is a brief introduction of all these services.
Postpaid
1

 Prepaid
Other services

Pospaid :
Exciting news for ZONG,s postpaid customers, ZONG has introduced some new
postpaid packages and may be the most feature rich in market. Now, ZONGs
postpaid packages comes with the free mins on-net and off-net, and also
unlimited SMS, 15 MB of free GPRS quota and many more. Packages are given
below:
100 Line rent package
300 Line rent package
600 Line rent package
1200 Line rent package
2000 Line rent package
When a customer purchase a prepaid SIM its default package is 80 piasa per 30
second but customer can avail any of the following packages:

Prepaid :
ZONG 65 package
ZONG free package
ZONG 12 anny package
ZONG Z20 package
ZONG aik second package
ZONG circle etc

Other Services and Offers :

ZONG has always provided its customer with the best offers and services some of
them are given below:
BTO2
LNO3
LBC4
FNF5
Happy hour
Super free number
Conference call
SMS6 packages
o Daily, weekly, fortnight and monthly SMS packages
o Zulu SMS package ( @2.50+tax per day)
GPRS7 packages
Ramzan value time offer
2
3
4
5
6
7

 E-care
Missed call alert
Dial tune
ZONG Mobile offer
Black Berry special discount offer
Call forwarding
BYN8
Call waiting
ZONG bijli offer
ZONG fone on hai offer
ZONG family pack
Voice bundle
Achi SIM
Bara recharge
Block unwanted call and SMS
MNP9
Mobile Music channel
Unlimited free number
ZONG weekly infotainment

CHALLENGES FACED BY ZONG

Zong is facing many challenges. Some of them are following.

Network Coverage:

8
9

The first challenge faced by the zong is their network problem

People often complaint that they feel disturbance and busy network.

The management is trying to overcome from this challenge by hiring best

engineers and technicians but the result is not shown yet

Competitors :

The competitors of zong are in very strong position.

Zong started well in 2008 but after that, they lose their market control and facing

many challenges from competitors.

They are trying to overcome from this challenge by introducing new packages and
low rates.

Advertisement :

The improvement in advertising is also the main challenge for them.

In the past zong, attract many customers with their excellent advertisements like
50 paisa, 3 paisa,1 paisa call rates.

The other competitors like ufone is the main threat in the advertising.

Franchises :

The increase in franchises is also the challenge for the zong management. The
amounts of franchises in Pakistan are 272.

In Sialkot, there are only two franchises, at kotli behram and at pasrur road.

The management has decided to open 50 more new franchises at the end of 2014
all over the country. This can also attract the new customers.

Electric crisis :

The one of the major challenge is the electric crisis faced by the zong

The load shedding is increasing day by day and due to this situation, the servers
of the company get down which makes the network unavailable.

The management of zong is trying to make huge investment for the backup of
electric crisis

Competitors Of Zong :

Warid
Telenor
Ufone
Mobilink

TOTAL MOBILE SUBSCRIBERS :

This graph is showing the total mobile subscribers of different telecommunication
companies.

NET ADDITION IN SUBSCRIBERS :

This graph shows the net addition in total subscribers during year 2011. You can see the
Zong with highest addition in subscribers.

MARKET SHARE :
This graph shows the market share of Zong and its comparison to other operating
companies.

Swot analysis:

STRENGTHS:
Lowest rates nation wide:

Zong provides lowest rates as compare to other telecom industry its great thing
which is only provided by zong.
Strong image of parent company:
Zong has a strong image of their parent company china mobile. That is plus point
for zong.

Network portability:
Over 500000 people have been switched to zong from other networks.
Zong provides a number of packages to its customer at least more than 22. Some of
them are discussed below:

Prepaid packages.

Postpaid packages.
GPRS packages.
MNP-Mobile number portability.

Zong mobile :
Zong has come up with another interesting promotion. You get a phone, almost free but
with a years payment in advance.
Resources, Assets and People

Being a multinational company Zong has huge resources in terms of capital. It

has billions of capital to invest in various projects. Its offices are equipped with
every facility.
Zong while choosing people for jobs follow the strategy of choosing the best
among all therefore majority of its staff people are highly qualified renowned
universities of Pakistan. A certain persons are foreign qualified.
So far CMPak has invested more than US$ 700 million in the telecom sector in
Pakistan and an additional US$ 800 million will be invested till year 2008.

Location and Geographical Coverage :

Zong is also covering the all cities of Pakistan and in 2008 Zong cc record sites
1000 in Pakistan its great achievement.
Zong is covering the northern areas of Pakistan rapidly.

WEAKNESSES:
Bad Image:
Bad image of associate with paktel. And now still having old staff of Paktel.
Brand Standing:
Zong have week brand standing as compared to other telecom companies because
they are new in the market.
Bad MIS:
Zong does not have the proper list of its customers. It has the list but this list is
not authentic which is increasing the unauthorized use of its sim specially prepay.
The main weakness of the zong company is their low quality service. They are
failed to provide the best service to its customers to satisfy them.

OPPORTUNITIES :

Expand Globally
Zong can expand the globally and can develop it strategy in other countries.
Acquire/Merger:
As warid is going in loss and in the condition of liquidations its big oppurtunities
for zong to acquire warid telecom.
New Product Development :

Zong can introduce new products such as Dish Tv.

Zong is one of the fastest growing cellular markets in the Pakistan and it has a
chance to expand in the current situation.
One main opportunity of zong is that it is a china mobile company and Chinese
products are famous in the Pakistani markets. They have already developed a
good will and entity in Pakistan and they know better the customer needs and
wants. So they have chance to grow high and maintain their market share for a
long period.

Opportunity in northern areas:

Zong can have a clear edge over the competition in the Northern Areas
especially as China Mobile has huge experience of network in similar high
mountainous areas in China itself.

Pak China Border:

Zong can cover the border of China, with the Karakoram highway ( old silk
route) and can play a vital role in freight transportation.

THREATS :
A number of competitors are in the market like jazz, ufone, telenor, warid etc. all
of them are trying to defeat one another. Competition of the telecommunication
companies is rising day by day. Another problem are facing that according to the
new rule of Pakistan telecommunication authority( PTA). Every customer is free
to transfer his/her sim into another network which they think are reliable. Due to
this reason all companies are trying to defeat their competitors by decreasing
their call rates to attract more, providing lowest sms packages etc to attract more
and more customers. In this way one company is trying to overcome another and
in this process some companies are facing loss.

Threats of new entrance

Bargaining power of buyers

Bargaining power of suplliers
Economic and political condition

Threat of New Entry :

As government of Pakistan is showing liberalism in telecommunication sector

and opened its policies to award new licenses to new mobile service providers so
threat of new entry is high.
As for this business companies need a well established distributions franchises
network so threat of new entrant is high in this case.

Bargaining Power of Buyer :

Power of buyer is high in telecommunication sector. There are players and

players are offering different packages at different prices and situation of price
war is running. Buyers have a power to buy any package which is suited to them

Cost of switching from one company package to other company low. Hence,
power of buyers is high.

Bargaining Power of Suppliers:

The power of suppliers is low in case of telecommunication sector.

But the fact is that numbers of suppliers are few in the market but they are
competing in the market to make agreements with mobile service providers.
Threat of Substitute Products
Government also gave so many land lines and wireless local loop different
companies like PTCL wireless local, GO CDMA CALL etc. these services in future
will be like mobile phone services they are planning to offer services a lot but
currently they are offering sms and CLI services to their customers.

COMPETITIVE ANALYSIS
Zong Youth Package: Circle
Zongs latest launch is a youth specified brand, they named it as
Circle-Humesha together. There are exciting call and SMS rates
especially tailored for the young blood of our country to enjoy &
have fun with. Circle is totally an innovation of its own kind to
inspire the youngsters of Pakistan.
Youth Circles tagline is of great importance as it shows the concept behind launching
this package. It is very important for the young nation particularly, to stay in touch with
their friends all the time. They really wish to connect with chums 24/7 for friends play a
significant role in their lives; with Zong Circle it is possible now to fulfill this desire.
Zong Circle is the most economical and easy brand for them to entertain themselves. It
has all the pocket friendly call and messaging rates for all. Circle is launched on June
12th 2013 with the aim to surprise the new generation of Pakistan. Zong especially
ordered a Circle-Humesha Together cake for the launch which was cut by Zong team
to mark the day for the beginning of the Zong Circle.
Zong Circles one of the best feature is its Circle Club. Now by subscribing to Circle
Club friends could remain Humesha Together with each other. It is designed for all

those innocent buddies who want to keep in touch together moment by moment to share
the experiences of life.
Zong customers could activate a new SIM for joining this Club or by dialing *456# from
their already activated Zong numbers.
Zongs chief commercial officer, Sajid Mehmood said that it is their responsibility to
empower the youth of Pakistan that is about 63 % in the country and assist them to
become talented and skillful. He added further that Zong has always done it and this
time again by introducing the Zong-Circle, it is helping them simply in a way to save
their money and buy affordable call and message packages..

Ufone Uth Package:

When it comes to YOUTH, Ufone dominates the

majority of them. Back in 2013, Ufone launced its Uth Package. Here are some of the
details and offers of the vast package. Among Uth package, Full time Ufone Uth Mufta
offer is the best where you get to call all Uth numbers daily from 12am to 9am free of
cost and other then that you can call at Rs. 2.20/hr. + tax if you carry on talking for
more than 1 min.
With F&F numbers you can call at Rs. 2.99/hr from 12am-5pm while other than that the
charges are Rs. 0.45/30sec. From Ufone to Ufone call becomes free after 2min while
those 2min are charged at Rs. 1.10/30sec from 10pm-7pm.
Package charges of Rupee 1 are deducted on daily basis. Some other packages offered
are Dhanso offer and nonstop offer.
Lets have a look on some of the similarities of Zong Circle and Ufone Uth Package:
Zong circle

SIMILARITIES

Ufone uth pack

1)Circle mobile music channel offers you to download music or have some personal 1)music stat
radio, favourite track etc.
2)Musicall allows you to have a background music during your call.
2)Backgroun
3)Informs you with your result ,date sheet and help students in studies.
3)In studen
4)In circle job alert portal you are informed with new jobs.
4)U job port
Here are some dissimilarities, as well:
DIFFERENCES

1)Manchester United services gives you cool stuff, video, wall papers and official ring tones.
2)Circle directory offers you the search service.
3)Comedy portal is for making someone in a good mood as you can share funny jokes and
Pakistans top comedies.
4)Does Zong offers any discount on outlets.NO
5)You have not any double number system in this pack
6)collect call option is not available.
7)Does zong provides you with missed call notification. Absolutely no.

1)Ther
2)No s
3)This

4)Disc
5)Dou
one si
6)In c
are ca

7)Miss
switch
8)By circle bundle you can enjoy full time internet with 4MB mobile internet for RS 3.99 8)By M
only.
9)Thaka-Thak SMS bundle provides you 500 sms for RS 2.5+tax.
9)In S
10)Keeps your friends privacy by not offering any service in finding your friends location.
10)U-T
11)Do you get any reminder call. Np.
11)U-R
RATES ZONG is cheaper than UFONE UTH PACK as uth pack has put much taxes on its
services discount is comfort for people but not so much .It is a kind of new offer but
overall you will get as cheaper service.

Warid Glow Package :

The 2nd main competitor of Zong Circle is Warid Glow Package.

Warid has captured large portion of youth customers by
providing them with Glow Package.
Lets have a look on some of the details and offers by Glow Package:Warid launched
Glow to attract Youth and through Glow they launched Super Dosti Package according
to which you have the facility to call one number for Rs. 1+tax/day. SMS
Free<space><Warid number> to 2129 @ Rs. 10 to get that number.
If you want an F&F package then Glow 2.0 is your man. 5 on net numbers can be called
on Rs. 3.99+tax/ hr. on Mon- Fri at 11pm-8pm and on Sat-Sun at 11pm-5pm. Rs. 1 will
be charged only on the first F&F off-net call made in a day

Zong Circle

SIMILARITIES

Warid Glow Package

1) Zong offers advance loan service under the name of Rescue 9211.
2)Musicall allows you to have a background music during your call.
3) Zong Mobile offer you to have a new handset.
4) Flutter brings some great deals for Ladies
Here are some dissimilarities, as well:
DIFFERENCES
1)Manchester United services gives you
cool stuff, video, wall papers and official
ring tones.
2)Circle directory offers you the search
service.
3)Comedy portal is for making someone in
a good mood as you can share funny jokes
and Pakistans top comedies.
4)Does Zong offers any discount on outlets.
NO
5)You have not any double number system
in this pack

1)There is no specific offer on this package

for this kind of stuff.
2)No search service available on this
package.
3)This type of service is not specified for
uth package.
4)Discounts available at 300+ outlet all
across Pakistan and growing.
5)Double number is new and interesting
service in which you can have two
numbers in one sim. So choose your
friends for two numbers.

6) No Facebook or WhatsApp package for 6) Customers have free WhatsApp and

users
Facebook package.

Djuice BY Telenor:
The 3rd main competitor of Zong Circle is djiuce By Telenor. Telenor
was first
to understand the worth of Youth and launch a brand catering for
the needs of youth who want to utilize best offers within
their limited pocket money. Although there are some cool
offers like Djuice One plan and Djuice Din raat but the most
economical of them is Djuice Free Call Package. According to this
offer, you
can call all your on-net F&F numbers for whole day free of cost. One time subscription
charges are Rs. 8+tax. Offer shall remain suspended in peak hours of 6pm-10pm. This
offer is available on all tariff plans of djuice. It can subscribed by dialing *000#.

1) Warid o
2) Backgro
3) Warid h
4) Warid la

SIMILARITIES
Zong circle

DJUICE

1)Zong provides the latest information to 1)Telenor brings you the latest events,
customers Thorught SMS.
breaking news, and current affairs from
around the globe delivered directly to your
mobile screen
2)Zong provides you access to the New 2Telenor )provides you instant access to
business,sports,jokes etc
the latest developments across a wide
variety of interests; News, Business,
Sports, Jokes etc.
3)Informs you with your result ,date sheet 3)In student club you can get your date
and help students in studies.
sheet , result and some aid related to
studies.
DIFFERENCES
1)Manchester United services gives you cool stuff, 1)There is no specific offer on this package
video, wall papers and official ring tones.
for this kind of stuff.
2)Circle directory offers you the search service.
2)No search service available on this
package.
3)Comedy portal is for making someone in a 3)This type of service is not specified for
good mood as you can share funny jokes and Djiuce uth package.
Pakistans top comedies.
4)Does Zong offers any discount on outlets.NO
4)Discounts available at 400+ outlet all
across Pakistan and growing.
5)By circle bundle you can enjoy full time
internet with 4MB mobile internet for RS 3.99
only.
6)Thaka-Thak SMS bundle provides you 500 sms
for RS 2.5+tax.
7)Keeps your friends privacy by not offering any
service in finding your friends location.

5)By My email offer you check your mails

without any internet and GPRS.
6)In SMS buddy send messages for 30
days at RS 30+tax.
7)U-Track buddy finds exactly where your
friend is.

Jazba by Mobilink:

1)Manchester United services 1)There is no specific offer

gives
stuff, video,
onCircle
this package
kind
The
4thyou
maincool
competitor
of Zong
is JazbaforBythis
Mobilink.
and
official
ring
tones.
of
stuff.
Mobilink has launched Jazba for its Youth based customers.
2)Zongdiscount
circle directory
service
Special
rates areoffers
offered2)No
for search
those who
areavailable
among the same community of
you the search service.
on this package.
Jazba but there is an additional package for some special ones. With Bari Baat
3)Comedy portal is for making 3)This type of service is not
Offer now jazba subscribers can call their Friends and family from 11pm to 5am at
someone in a good mood as specified for uth package.
Rs.
andjokes
calls and
on remaining time of the day are as per the Tariff plan of
you1.80+tax/hr
can share funny
normal
FnFtop
calls.
Special thing about this package is that it is just no limited to FnF but
Pakistans
comedies.
Non-F&F
Mobilink
also be called
atRs.2.80+tax/hr.
Offer can be
4) Zong does
not numbers
offers anycan4)Discounts
available
at
subscribed
byoutlets.
Such Jazba customers
by dialing
discount on
500+
outlet *105*1#
all across
Pakistan and growing.
Bari
5)Zong
Baatdoes
Offer:not provides 5)Double number is new and
double number system in this interesting service in which
pack
youoffer
can Such
have two
in Jazz Jazba subscribers.
Mobilink
announced a new call rate
Barinumbers
Baat for its
sim.
SoJust
choose
your on mobile screen and
It is an hourly call rate between 11one
PM to
5 PM.
Dial *105*1#
friends
for
two
numbers.
press send to avail this free call offer. To un-subscribe from the offer dial *105*4#.
6) Zong does not provides you 6)Missed call notification
missed call notification. .
,you will be aware of every
SIMILARITIES
missed call even when your
mobile is switched off.
Zong Circle
Bari baat offer
.
1)Zong Circle mobile music channel 1) Jazz presents a new value added
offers you to download music or have service for their customers Download On
some personal radio, favourite track etc.
Demand. Jazz SMS based Content

Catalog allow you an easy search and

download wallpapers, ringtones or video
clips simply through SMS
2)A variety of information is offered

through this service via SMS and the list

ranges from Professional &
Entertainment info to Religion &
Personal feeds -

2) A smarter new way for Jazz Jazba

customers with GPRS access to access latest
news & content from their Mobilink
connections. Mobilink WAP Portal offers
Info, Fun, Sports, Media & Tools categories.
Details of each category are as follows

DIFFERENCES

Market Information

With an effort to reward its customers for their loyalty, Zong is offering a consumer
promotion drive under its Youth Brand Circle titled Circle sey Jeeto Aik Baat Phir.
With this promotion, Zong users can win Pakistans first Hybrid Sports Car, the 1500 CC
Honda CRZ along with many other exciting prizes including stylish Heavy bikes like
Honda CBR 500 and Honda CBR 150.

This promotion, which is effective from 12th February, 2014 till 15th March, 2014 is only
for Circle pre-paid subscribers who have activated their Circle Club Promotion.

Speaking about this latest promotional offer, Mr. Amees Ahmed, Dy. Director
Marketing, ZonG said, As important it is to ensure your customers have an amazing
service experience, it is also important to make sure they are constantly rewarded for
their loyalty. After the recent success of our Circle Heavy Bike campaign, we decided the
time was right to reward our customers even more and remind them that as a company
we are always on the look out to show our appreciation.
On a separate note, Zhao Peng, CCO, ZonG added, Our subscriber base has crossed the
24 Million mark and we are the fastest growing network in Pakistan at the moment.
Through this promotion, we want to express our gratitude towards our customers for
the support they have shown us in all these years of growth.
The Circle sey Jeeto Aik Baat Phir campaign is not the first time that the company
has decided to reward its youth customer base as it follows the recently concluded Circle
Heavy Bike Campaign.

Circle is designed especially for the youth of the nation and includes very affordable
rates, a fast internet connection and virtually free calls and unlimited SMSes . More
details on Zong Circle are as follow:

List of Prizes:

Honda CRZ Sports Car

Honda CBR 500 Heavy Bikes

Honda CBR 150 Heavy Bikes

Samsung Galaxy Note 3

DSLR Camera Nikon

Clothing Vouchers worth Rs. 25,000 each

How to Win:

Buy a Circle SIM or dial *456# if you are an existing Zong Customer.

Subscribe to Circle Club to get AMAZING rates of Rs 0.9/hr + tax (Club member
to Club member) and enjoy Unlimited Free SMS (Club member to Club member).

Use balance of Rs. 300+ tax till 15th March 2014 to be eligible for the Lucky
Draw.

And thats it.

Check Used Balance

You can check your usage by just dialing *221#. This facility is Absolutely Free

Increase your chances to win

More balance you use means more chances to win.

Use Rs. 300+tax and become eligible for the Lucky Draw (Single Entry)

Use Rs. 500+tax and become eligible for the Lucky Draw (Two Entries)

Use Rs. 550+tax and become eligible for the Lucky Draw (Three Entries)

Every Rs. 50+tax consumption from Rs. 550 and beyond, till Rs. 1000+tax will
allow the customer for an additional entry into the Lucky Draw.

RECOMMENDATIONS :

They should need to improve their network coverage especially in border side of
Pakistan.

They should improve their advertisement.

Need to open more franchises along over the Pakistan.

Need to introduce low budget packages to attract more customers.

They should take some huge steps for backup of electric crisis

CONCLUSION:

From the report concluded that the zong is facing much challenges as compared
to other telecom mobile companies.

The main primary challenges are Network coverage and their strong competitors.

They should improve their advertising and open more franchises along over the
country.

The management has taken some steps to overcome these challenges but they
need some more time to recover from these challenges