Hype machine: Zong’s elaborate marketing campaign

M9 builds up curiosity amongst customers.

KARACHI: Pakistani mobile telecom operator Zong is building up hype for its new mobile phone package, M9, which is expected to be launched within the next 24 hours. However, details on what exactly M9 will offer have not yet been disclosed and analysts are questioning whether the company will be able to deliver on the excitement it has managed to generate.

Rumours are that M9 customers will be offered special pricing for voice and data calls.

The company’s impressive, and probably quite expensive, media campaign began on the internet. They started giving out hints as to what the package would offer and launched a website where people could book numbers in advance and have the Sim cards home-delivered.

It also uploaded a few commercials online, aggregating around 12,000 hits on YouTube, an impressive number in the Pakistani context as this may be the first teaser campaign of its kind in the country.

While around 11,000 people ‘liked’ the M9 Facebook page, its twitter feed has only managed to attract 432 followers.  It is interesting to note that discussions on the Facebook page tend to revolve around details regarding the package.

Package details

The company has not been very forthcoming regarding package details – all Zong says is that it will allow customers to choose their own package. Unofficial sources, however, contend that the company will allow customers to structure packages. For example, it may cut down on call charges in return for higher priced text messaging. Or, it might allow for cheaper edge internet with higher per minute call rates, depending on customer preference.

Meanwhile, industry insiders are sceptical about Zong’s ability to undercut prices of other mobile operators by a large enough amount to entice customers to shift operators. They point out that Pakistan’s tariffs are amongst the lowest in the world and that call rates have already gone as low as Rs0.45 per minute.

The downside

At present, the mobile telecom sector is fighting ‘churn’ – an industry term used to describe the deactivation of Sim cards because they are not being utilised. “People are shifting around too much and a lot of them have more than one Sim card at a time,” noted one telecom analyst.

This needs to be rectified, assert analysts. “The Pakistan Telecommunication Authority (PTA) needs to set benchmarks – minimum call rates – so that the mobile operators stop squabbling.” Telecom companies spend huge sums of money to advertise the fact that their call rates are more competitive than those of the next company.

“Companies will stop trying to undercut each other if a benchmark exists. They will be forced to focus on better call quality, faster edge internet and most importantly better customer service,” commented an observer.

Published in The Express Tribune, January 5^th, 2011.