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5
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Project Report on PEL


by Commerce Solutions in Internship Report, PEL, Project Report

INTRODUCTION
BUSINESS

OF

COMPANY'S

PEL is one of the oldest manufacturing unit of home appliance in Pakistan. It


manufactures
=>
A.C
=>
deep
freezer
=>
Refrigerator.
The products manufactured by PEL have been of high started quality through out the
years. PEL was established with Technology Collaboration of AEG Germany in 1956,
1980 PEL expanded into consumer domestic market with introduction of window by PEL
A.C. into October 1978 PEL was taken by sagol family. According A then PEL is Now a
company
on
the
goes
on.
The head of HR department is called HR manager. It has 180 employees working
in
it.
Among
which
27
are
doing
clerical
job.

PEL has continued on the path of recovery and the business in both its divisions power
and home appliances have grown. Efforts for improvement in productivity, quality of our
products and diversification have yielded positive results and the company has earned a
net profit after tax of Rs.94.100 million (last year 59.000 million). Since the company had
suffered losses in the past, which had eroded its equity leaving huge bank borrowings, the
dept servicing remains a major burden on its operations. Simultaneously increasing

business volumes requiring additional working capital have not allowed the much needed
ease in its cash flows which could offer a smoothness in its operations.

Business in Power Division is propelling positively and is expected to grow


further in the ensuring years. PEL is exploring export market for our Power division
products, Crystal brand Refrigerator launched in 1998 has developed into a major source
of our consistent growth. This trend is expected to continue in the following years. On the
other hand air-conditioner sales have not reached desirable levels due to some serious
weakness in import procedures and smuggled goods, shrinkage in the size of market and
working
capital
constraints.

The continuous gain in the value of US dollar upto the September 11,
2001 incidence (which is now a declining trend) has resulted in further negative
impact on Rupee-Dollar parity. The decrease in the value of Rupee could not be
fully covered up in the prices of our products due to low purchasing power
resulting in reduction of gross margins. The company will thus have to maintain
its thrust on high volumes alongwith further reduction in costs and improved
quality measure to consistently maintain the profit path in the future.

In order to achieve less dependability on single customer bases company is


moving towards a strategy of diversification of its product and customer base. As a result
Appliances Division is being strengthened whereby marketing network has been widened
with a focus on strengthening sales team as well as the dealer's network. Concept
of 3S introduced earlier is working satisfactorily in our After Sales Service network. A
special focus is being given on widening the product range introducing new models,
sizes, colours and new finishes. The demand of appliances products especially
refrigerators which is growing at a rapid pace is augmented mainly by increased role of
consumer financing through the financial institutions and the conventional hire purchase
schemes
by
the
retailers.

POWER DIVISION
Products manufactured in Power division are Transformers, Energy Meters and
Switch gears. Business in this division has suffered badly in pervious years due
to problems in WAPDA and KESC. The most needed upgradation of WAPDA's
distribution pilferage was started by the new management. The energy meter
production of single phase and three phase are moving toward an optimum level.
Plans for further improvement in productivity and quality of our meters are also in
progress. Our shares for the supply of distribution transformers to WAPDA has
taken a quantum leap recently. Accordingly, PEL is planning to increase our
production capacity of transformer plan through the techniques of improved
production operations including manpower utilization, product innovation,
process reengineering. We are expecting to obtain the production capacity level
of 2000 transformer per annum. A break through in the Switch gear business has
been already achieved. PEL has successfully supplied a large order of Switch
gear from WAPDA against International Tender. Since entire business of Power
Division is now being carried out against L/C, international tenders or advance
payments, chronic problem of delayed payments has also been resolved.

APPLIANCES DIVISION
Business in appliances division has shown mixed trend but the Company is finally on the
right track. Crystal Refrigerator with Aero design and Danfoss compressor with
performance certification by Danfoss Germany was launched in the February 1999. This
has been received very well in the market and our refrigerator sales have shown an
increase of ver 125% since 1999. This thrust is expected to continue in the following year
as a result of company's innovative approach in product development coupled with an
aggressive
marketing
strategy.

Deep Freezer tested and certified by Danfoss Germany and with improved
aesthetics has also been well received by the market. We have already been supplying our
Deep Freezers to Coca-Cola international and lever Brothers and intend to continue our

focus

on

institutional

sales

of

this

product.

Sales of window Air-conditioners is almost at the same level of last year but have
not reached the desired level with a pressure on prices and exchange rates impact causing
increase in losses to the subsidiary PEL Appliances Limited. Main reason of this situation
is a huge influx of imported product as a result of change in custom valuation recorders
allowing imports at during prices and under invoicing. In addition supply of smuggled
air-conditioners also continued even after Government's announcement to impose
controls on such activities. This is expected to discontinue after old stocks of smuggled
goods are exhausted and fresh supplies are not allowed.
The company in order to address the above situation has embarked upon
a major plan to improve product quality, widen product range, introduce power
efficient models, add competitive features like remote control, added filters etc.
And to improve the product aesthetically. After consistent efforts in the recent
years PEL have been able to develop a new range of models under the brands
name of 'Energy Saver'. The cooling and balancing if this machine is tested &
certified by Copeland of USA. This has received a very positive response from
the market due to its efficient energy savings, cooling, low noise, compact size,
nature friendly features. PEL anticipates that the company will make a break
through in the volume of Energy Saver as what we have successfully performed
in case of Crystal brand Refrigerators. In addition a major exercise is being done
to reduce material cost and improve manufacturing process. Technical support
and know how is being obtained from international companies and foreign
laboratories to achieve this objective.

PEL APPLIANCES LTD.


Deep Freezers and window air-conditioners are the products of subsidary PEL It
is expected that PEL Appliances Limited should move into a healthier situation in
the ensuing years.

PEL DAEWOO ELECTRONICS LTD.


Agreement for conversion of Sony Television at the plant was concluded and PEL has
started production of their products since May 1999. Under this arrangement television
kits are supplied to us by Sony and converted televisions are delivered to them and
marketed through their own network. The US$ denominated conversion price for the
televisions
assembled
by
us
is
charged
on
fortnightly
basis.

Tariff structure on Televisions has been rationalized in the federal budget for
2001-2002 and as a result violability of locally assembled televisions has
considerably improved. Sony intends to take full advantage of this situation and
volumes of locally assembled televisions are resultantly expected to increase
manifolds. Agreement for conversion of VEGA flat screen television has also
concluded and we have very successfully started its production in September
2000.

COMPANY'S

MISSION

STATEMENT

1. To grow the size of the organization, develop better business practice and build-up
greater
resources.
2. To practice actively and consistently in Pakistan's economic development.
3. To

build

up

better

operating

philosophy.

4. To build a better commercial outlook for operating successfully in this competitive


environment.
5. To

keep

pleasant

working

environment.

6. To

always

7. To

maintain

exclusive

promote

service

standards.

professional

co-operation.

8. To motivate the employees by making them feel that management cares about them
by recognizing their efforts by remuneration or by promotion depending on the individual
efficiency
and
what
he
deserves.
9. To create feeling of co-operation so that all employees are satisfied.
10. To
11. To

build
provide

wide

up
range

of

customer
products

and

services

satisfaction.
to

customers.

COMPANY'S OBJECTIVES
1. The continuous improvement of all products and services through total involvement
of
employees.
2. The development and strengthening of joint ventures and partnerships with external
and
internal
customers
and
suppliers.
3. Providing innovative and higher quality products to achieve total customer
satisfaction by understanding their requirements and anticipating their future expectations
or
needs
through:
Monitoring Annual Targets for quality improvement in all areas and function of the
organization.
Valuing people by understanding and drawing upon their strengths i.e. abilities and
knowledge
and
make
efforts
for
their
training
and
development.
4. With a dedicated team of professionals the company is striving to improve the quality

of life in Pakistan homes through reliable equipment for power distribution and home
appliances.
5. The growth in the size of the organization develops better business practices and
builds
up
greater
resources.
6. The aspiration to capture the complete product family of the product.

DEPARTMENTS

There

are

major

departments

in

PEL

they

are

:-

(i) Marketing

Department

(ii) Finance

Department

(iii) Production

Department

(iv) Human

Department

(v) Administration

Department

(vi) Research

1. MARKETING

&Development

Department

DEPARTMENT

This

department

is

headed

MANAGING

DIRECTOR YOUSAF. H. ISHAQ. Then Further down in hierarchy there are: Brand

Managers.

Manager

Distribution

Credit.

Customer

service

officers.

Institutional

sale

There

are

are

Headed

They

six

Manager.

branches

by

of

Regional

PEL

Sales

in

Pakistan.

Manager.

(RSM).

The sales policies are recommended by head office for all region. The policies
for customer service are defined by General Manager Customer Service at head office.
Targets are given to regional sales Manager of each particular region and then the RSM
gives further target and incentives to sales officers to achieve the demand targets.

In

Lahore

the

market

is

divided

into

areas:-

Abid

Market

Patiala

Market

Out

skirts

In

Abid

In

patiala

Market
Market

there
there

are
are

20
16

dealers
dealers

and

30

sub

dealers.

and

21

sub

dealers.

In

outskirts

In

there

Lahore

RSM

are
there

35

dealers

is

:-

(1)

Area

Sales

Manager

Sales

executive

(2)
(10)

Marketing department controls the 4P's in the company i.e. Product, Promotion,
Placement, Pricing. They are also responsible for the alteration and Modification in the
different brands of the company and of new product e.g. They can suggest colour change,
size of product etc. which is being demanded by the customers. They try to bring
innovations in the products to make them attractive for the customers and to compete
with
the
competitors
i.e.
Dawlance,
General,
Waves
etc.
There

are

print

as

well

as

electronic

media

for

promotion

activities.

FINANCE DEPARTMENT
The

department

is

controlled

by

general

Manager finance, Mr. Manzer Hussain this department is divided into 3 sections: Finance
Accounts
Credit

Control

(i) Finance
Finance

deals

with

Banks

(ii) Accounts
Accounts
booking

deal
transactions

with

costing
as

well

system,
as

internal

(iii) Credit
This
deals

Billing

&

auditing.

Control
section
with

of
Credit

finance
and

PRODUCTION DEPATMENT

recovery

department
procedures.

This department looks after the manufacturing of products. This


department is given targets by top management to produce a specific number of
products which are ascertained by previous sales data and market conditions.
This department is responsible for quality control as well i.e. it sees there are no
defects or any shortcomings in the product. It also overseas new technologies
and also to remain updated regarding any new machinery or other equipment for
better product performance. After manufacturing a new product it is sent to
Germany for technical assessment to Danfoss company. After approval from it
then its bulk production is started.

PLANT CAPACITY AND ACTUAL PRODUCTION

Sanctioned

Actual
Production
2001

Installed Capacity
2001
Electric motors

25,612 HP

Nil

Transformers

1500

351 MVA

Energy Meters

600,000 NOS.

431,862 NOS

Airconditioners

36,250 TONS.

3,494 TONS.

Refrigerators/Deep- Freezers

89,525 CFT

766,399 CFT

Compressors

360,000 NOS.

Nil

MVA

HUMAN RESOURCE DEPARTMENT

This department overseas the selection criteria for employees


i.e. it sets different guide lines for selection of employees. After selection of
employees it also offer the training and to upgrade their skills.
The head of HR department is called HR manager. It has 180 employees working in it.
Among
which
27
are
doing
clerical
job.

FUNCTIONS
Recruitment
Selection
Training
Transfer
Firing decisions
Labor Affairs
Staff welfare
Manpower planning for next 5 years.

RESEARCH & DEVELOPMENT DEPARTMENT

This is the most important department regarding the future of company


as a market leader this department is constantly in-touch with market to know
about customer preferences and specification for products.
After through analysis of customer expectations this department then give its
recommendations to the top management to being changes in the product for market
success. This department conduct surveys in market to get information. This department
is also responsible for bringing new technologies in the products.

PRODUCT MIX

Our report concerns about home appliances sector of PEL. There are
three main categories of products.
(i) Refrigerator

(ii) Air

Conditioner

(iii) Deep

Freezers

(iv) Split

(v) Washing

Machines

ROLE OF COMPANY IN INDUSTRY


PEL is market leader in Air conditioners through out Pakistan.
Due to the better quality of its A/C the brand loyality is high. It has introduced
different new models to attract the customers. General is No.2 in market.
In refrigerator PEL is 2nd in the Market in respect of sales. While Dawlance is
number 1. PEL is striving to become No.1 in next 3 to 4 years by introducing new
Models and modifications in their products. The market for refrigerator is growing while
for
Air-conditioner
it
is
stagnant.
There is very intense competition in the home appliance industry. The companies

in the industry are trying to capture the market by aggressive advertisement new product
launching,
bringing
innovative
features
in
existing
products.
The

active

companies

in

this

industry

are:

PEL
LG
Dawlance
Waves
General

CRYSTAL REFRIGERATOR
It is the largest in its class, rustproof from head to toe and powered by the world's
No.1 compressor (Danfoss). This low-noise compressor is extremely silent and
keeps the refrigerator running smoothly. The compressor is also well prepared to
face Pakistani electrical outages, it remains functional on voltages as low as 170
volts and has an upper limit of 250 volts.
CRYSTAL refrigerator's cooling performance has been tested and approved by
Danfoss (Germany). The refrigerator is available in a wide range of colours like
beige and green in PCM. CRYSTAL refrigerator comes with 3-year compressor
and 1 year parts warranty.

Super cool
PEL 2000 features a new aerodynamic design and is fitted with a new American
compressor, Copeland, which is the number one compressor in the world. Its
excellent cooling performance compressor cools 15%faster and has an even
lower level of electricity consumption. The cooling performance of PEL 2000

airconditioner has been tested and approved by ITS (intertek Testing Services)
USA. PEL 2000 is available in two colours, with and grey.

Powerful Airflow
PEL 2000 airconditioner is equipped an innovative airflow confirmation. The extra
large air outlet provides a strong yet comfortable air flow that covers greater
distance without losing power.

Wildest Air Sweep


PEL 2000 airconditioner has an air sweep angle of 120 degrees which is wider
than any other airconditioner in the market. Its multiway vertical louvers distribute
streams of cool air to all corners of your room. Eleven different flow patterns can
be obtained by pre-setting these "Jet-Vanes".

Progressive products, Absolute Guarantee


For complete customer satisfaction, PEL 2000 airconditioner is backed by a 5year compressor and 1 year parts guarantee.

PEL Be There When You Need Them


Excellent hassle-free service is only a phone call away. Just call the PEL Service
Centre in your city and a technician will be at your doorstep on the same day.

Window Airconditioner
Low Noise
The room airconditioner is extremely silent and very comfortable due to the latest
technology, low-noise compressor and side discharge design.

Non-Drip Feature
The window type airconditioner is designed to remain drip free at humidity levels
as high as 70%.

Split Aircnditioner
The elegant, new high-wall split system airconditioner from Carrier combines
attractive slim line styling with superior quality and efficiency. The soft white
colouring and smooth curved lines make this unit ideal for restaurants, shops,
offices and residential applications.

FEATURES
Super Quiet Operation
The new, elegant slim line indoor unit with three fan speeds and sir discharger is
designed for super quiet operation.

Computer Precision
The built-in computer responds to very small changes in temperature and adjusts
all controls continuously to keep a stable level of comfort.

Even Air Distribution


Our new generation of products provide much better comfort by addressing the needs of
the individual in terms of even air distribution throughout the conditioned space.

3-Stage Cooling
Provides more options to run the unit in desired conditions.

Easily Accessible Filter


The filter can be taken out for cleaning without removing the front grill and slides
back into its place. The filter is washable.

Bigger and Better Condenser Coil


A bigger condenser coil is used for better cooling and durability of the
compressor. Coils are made of high grade copper tube and aluminium fin.

Progressive

backed

Products,

Absolute

Guarantee

For complete customer satisfaction, the Carrier window airconditioner is


by
a
5-year
compressor
and
1
year
parts
guarantee.

Automatic Air Sweep


The indoor unit is equipped with adjustable air supply louvers and automatic air
sweep
to
set
the
cool
air
in
the
desired
direction.

Indoor Air Quality


Carrier is a company that cares for indoor Air Quality and therefore the
new unit's air filters are designed for easy removal for cleaning as and when
required.

Infrared Remote Control


An infrared remote control with programmable timer and LCD display is
supplied as standard. This allows the user to select the required features with
ease from a distance.

The carrier name on every units is your assurance of international quality. Carrier split
airconditioners are supported by a reliable 3-year compressor and 1 year parts guarantee.

Single and Twin Door Deepfreezers


CRYSTAL deepfreezers are available as single door and with door units.
All CRYSTAL deepfreezer models offer a choice of desirable colours like swan
cream and white and beige new, white grey and dark grey.
Modern Rounded Look
The rounded shape on the inside and the outside of the deepfreezer not
only gives it a modern look but also provides more contact area between the
inner cabinet and the copper pipe, thus increasing the performance of the
freezer.

Even Refrigerator
The cooling coil winds around the freezer compartment on all sides, thus
ensuring perfectly uniform and constant low temperature throughout the freezing

compartment. This specialized coil is made of copper and is absolutely corrosionproof.

Rust & Scratch Proof


CRYSTAL deepfreezers are available with inner lining made of either
aluminum sheets or new SS sheets. They have a rust and scratch proof surface
and a stainless and odourless lining.

Easily Opened Lid


CRYSTAL uses a special rubber gasket with six small holes,
maintaining the exact temperature inside and enabling the lid to open easily.

Special Features
New handle with strong grip. Increased pipe size to reduce
compressor head pressure, greater thickness of the foam (50 mm), improved
freezer serviceability, thermoformed top frame instead of extrusion, new light
cover design, rounded hinge cover and specially deigned wheels which make the
movement of the deepfreezer easy.

New Compressor
CRYSTAL deepfreezer is powered by the world's No.1 compressor,
Danfoss (Germany). This low-noise compressor is extremely silent and well
prepared to face Pakistani electrical outages. It remains functional on voltages as
low as 170 volts and has an upper limit of 250 volts.

PROGRESSIVE

PRODUCTS,

ABSOLUTE

GUARANTEE

For complete customer satisfaction, all CRYSTAL deepfreezers are backed by

2-year

compressor

and

1-year

parts

guarantee.

6000
This washing machine offers several washing modes and the selection of high, middle
or low water-level. It has a self-circulating fiber and a new-type selection of strong,
medium or weak water flow, with two ways of rinse, for water-filling or wateraccumulating.
This type of washing machine adopts advanced water-filling and spining functions to
save
rinsing
time
and
water.
Its

out-case

is

made

of

aluminium

alloy

to

prevent

rust.

5200
New-type, generating lotus-leaf-like big agitating waves which can prevent fabrics
from
twining
with
one
another,
for
enhanced
cleanliness.
Adopts up-to-date built-in instantaneous loop and overtime safety to enhance
dependability and safety of use. It can automatically buzz an alarm stop the machine as
soon
as
washing
ends.
Adopts advanced water-filling and spinning functions to save rising time and water.
Its

out-case

is

made

of

aluminum

alloy

to

prevent

rust.

PEL is the first company to introduce the 3S concept in home appliances in Pakistan.

Now you can avail our unique sales, service and spares facilities all under one roof. With
a dealership network all over Pakistan, PEL gives you unmatched after sales support,
making every PEL appliance a value packed addition to your home. So whenever you
buy from PEL, you can be sure of getting more than what you paid for.

PEL introduces for the first time in Pakistan, the complete range of PEL Energy Savers.
Each model has been designed with different room sizes in mind and gives you
unprecedented savings on your electricity bill. Take control of your electricity bill with
PEL
Energy
Saver.

Energy

Efficient

Design

High-efficiency cooling coils, new energy efficient design and a high-efficiency


compressor help make the PEL Energy Saver the most energy efficient airconditioner
manufactured by PEL.

Quiet Operation
The new Energy Saver range has been designed to be super quiet. No matter what
fan

speed,

PEL

Energy

Saver

performs

at

its

peak

without

disturbance.

THE COMPLETE RANGE


PEL Energy Savers are available in standard size like 1, 1.5 and 2 tons, and now
for the first time in Pakistani in a new, 1.25-ton size.

WIDER SWEEP, DIFFERENT FAN SPEEDS

Thank's to its specially designed louvers, the PEL Energy Saver range
has the widest air sweep, 3 fan speeds (low, medium and high) allow you to run
the air-conditioners in different cooling modes.
ENVIRONMENT AIR QUALITY CONTROL
The anti-bacterial filter in PEL Energy Saver is designed to filter out
microorganisms and ensure that the air that comes out of the air-conditioner is
clean and healthy for you.

COMPACT SIZE
The new compact sizes now take less space inside and outside your room.

RUST-RESISTANT

The condenser and evaporator are designed to remain rust-free even in


the most humid climate and are also backed by a 7-year guarantee against rust.

WARRANTY

All PEL Energy Saver models are backed by a 5-year compressor, 1 year parts
warranty and a 7-year condenser and evaporator guarantee against rust.

FUTURE OUTLOOK

PEL plans to focus around key objectives of building a strong demand for core products through
effective marketing and product improvement. Under the difficult business environment PEL are
confident to perform satisfactorily in the coming year by keeping a watch on quality, achieve
cost

reductions

through

improved

efficiency

and

growth

momentum.

A/C COMPETITORS
General
Waves
L.G

REFRIGERATOR COMPETITORS
Dawlance
Samsung
L.G.
Waves

PLACEMENT
The

distribution

set-up

of

PEL

has

undergone

many

changes..

In 1988 the set up was very simple. There were only four sale officers who use to
manage area offices in Multan, Rawalpindi, Lahore and Faisalabad.
1989 the company decided to form an effective dealership network. The company had its

dealers

in

all

major

cities.

In 1993 management plane to form a region to further improve the distribution system.
The whole country was divided into four major region. 1996 it is further improve by
increasing
region
from
4
to
6.

Distribution system of PEL is designed in such a way as to cover the whole market and
ensure timely delivery of products to the consumers. Details of their distribution setup is
given
below.
PEL

has

two

channel

levels.

(i) DIRECT MARKET CHANNEL


It has no intermediacy level. The Co through sales officers directly sales to large
organizations and corporate sector.

(ii) INDIRECT

MARKET

CHANNEL

It is a channel with one or more intermediary level. The general public can buy PEL
products
through
authorized
dealers.
PEL has been network; Regional sales force is connected with dealer. Core customer are
directly attached. Dealers are also visit and analyse distribution system.
During the selection of dealers for PEL, they consider => Worthiness of dealers, =>
Potential demand. They offer them incentive, schemes for cost sales and always adopt
policies
in
response
to
competitors.

PRICING
Prices are kept according to competitor level. PEL considers market should
not shrink because of pricing. Prices does not depend on seasons.
The prices are strictly observed by the Co e.g. A dealer sells a product below the price
given by company to any customer then the company can fine dealer upto 5000 Rs. and
can cancel his dealership. The company has appointed various "Informers"who
constantly visit and check that company price is being maintained. These people inform
the company if any irregularities in pricing and then company takes appropriate action
against dealers. Pricing is important to control sales. Pricing depends upon market
conditions. Marketing Manager is independent in his region but has to get approval from
company for giving more incentives to dealers. The dealers play important role in
sales.

SEGMENTATION
(i) GEOGRAPHIC

SEGMENTATION

Segmentation is done on the basis of geography. Pakistan is divided into two zones; =>
North, => South.

NORTH ZONE
North
Punjab
NWFP

SOUTH ZONE

Zone

includes:-

South

zone

This

includes:

zone

Sind

Baluchistan

REGIONS
There

are

six

regions

of

PEL

in

Pakistan.

They

are:-

Karachi
Lahore
Multan
Gujranwala
Rawalpindi
Faislabad

PROMOTION MIX (APPLIANCES)


ADVERTISING
The

objectives

To
To

of

advertising

are

increase
increase

recall

:sales

of

products

To restore message in consumer's mind

MESSAGE FOR REFRIGERATOR


"All New PEL, All New Technology, All New Style".

MESSAGE FOR AIRCONDITIONER


"Every Second Air-conditioner sold in Pakistan is PEL, so we are # 1

TYPES OF MEDIA
1. ELECTRONIC MEDIA
It

includes

T.V.

i.e.

PTV.

PTV

World

and

prime

T.V.

and

etc.

2. PRINT MEDIA
(i) National
(ii) Magzines

3. OUT
(i) Boarding

Newspaper
=>

e.g.
Herald,

Jang,

News,

News

line,

DOOR

Dawan
Banking

business.

MEDIA

(ii) Neon

Signs

(iii) Tri

Visions

PEL uses all these above mentioned Media Activities to promote its products.

INCENTIVES FOR CUSTOMERS & RETAILERS


PEL uses "Push and Pull Strategy" for attracting dealers and customers. The
main aim is to push dealers to sell PEL products and pull customers to buy
products.

INCENTIVES FOR DEALERS


Credit

for

Rs.400/- Per

set

Hajj
Car

if

dealer

sixty
sells

scheme
is

given

to

Dubai

the

target

days
No.

for
best

dealer

of

sets.
dealers

which set

target
tours.

CUSTOMER
For customer PEL gives some additional gifts with products i.e. Wall Clock,
Watches.

PUBLIC RELATIONING
In promotion mix PEL considers value of public relationing because it is:

Quite

Inexpensive

Public

Relations

have

more

Creditability

then

public

relations

Public relations can increase sales i.e. sponsor ships of cricket matches.

SWOT ANALYSIS (AIR-CONDITIONER)


STRENGTHS
It

is

It
It

is
has

window

available
been

in

manufactured

It

has

Specially

designed

A/C

with

years

for

environment

in

Pakistan.

three

models.

collaboration

of

carrier.

compressor
of

Pakistan

to

guarantee.
provide

cooling.

WEAKNESS
It
More

consumers
weight

It

is

which

create

more
problem

available

only

in

energy.

transportation

and

installation.

in

two

colours.

duty

by

Govt.

OPPORTUNITIES
Removal

of

excise

Corporate

sales.

THREATS
Govt.

Policy

changes

with

time.

Large market share has been captured by smuggled A/C e.g. Russian A/C.
Severe competition from General.

STRENGTHS (SPLIT A/C)


It

is

manufactured

with

collaboration

of

carrier.

It has well designed system for after sales services all over Pakistan.
Cooling

system

is

up

to

the

required

Noiseless

standard.
compressor.

5-years

Guarantee

of

compressor.

WEAKNESS
Advertising
Target

is
market

Installation
It

very

is

for

much
split

cost
only

available

low.
is

is
in

less.
high.

two

models.

Working manual provided by company is not early understood by people.

OPPORTUNITIES
By
By

increasing

advertisement

providing

more

models

demand
PEL

can

can

be

capture

generated.

more

market.

THREATS
Govt.

Policies

Target

market

may
in

effect

Pakistan

joint
is

ventures

lower

as

of

PEL

compared

to

&

CARRIER.

other

countries.

SWOT ANALYSIS (REFRIGERATORS)


STRENGTHS
PEL refrigerator is designed to suit the climatic conditions of Pakistan.
Advertisement of PEL refrigerator as of good level and people are fully aware of it.
PEL has launched crystal refrigerator with large of "Taqatwar Cooling".
Crystal

is

biggest

Crystal

is

available

in
in

size
many

as

compared

colours

as

to

its

designed

competitors.
by

people.

It is available is attractive shapes.

WEAKNESS
It

is

No.2

Refrigerator

in

Pakistan

after

Dawlance.

Dealers

Complain

about

Margin

in

pricing.

well

received

by

customer.

OPPORTUNITIES
PEL
By

Crystal
increase

is

in Advertising PEL can easily

capture

refrigerator

market.

THREATS
Govt. Polices may effect business of PEL by changing duties & taxes.
Any

innovation

PEL

has

strong

by

competitors

competition

with

can

effect

market

share

of

Dawlance,

Philips

(Whirlpool)

PEL.
L.G.

FINDINGS
As for as production facilities are concerned, PEL is facing investment problems as
compared to its competitors. Although they are trying to adopt latest technology based
fully-automated production system but lack of funds is the main hurdle in implementing.
As for as quality is concerned, the step of management towards TQM is of great
importance
and
PEL
is
trying
to
achieve
it.
The main thing in PEL is on "EMPLOYEE FOCUS". Employees are encouraged to
give views, suggestions etc. That is the reason, which forces management to include

employees in decision making. It is the collaborative work of employees and


management that PEL has been able to achieve its targeted deletion program in June
1998.
PEL is in private sector and its administration and operations are very excellent.
As for as location is concerned, the geographic site of PEL is very excellent because
of
proximity
to
Suppliers
and
Infrastructure.
The forecasting procedure is comparatively better because the decisions are jointly
made by the representatives from all concerned departments.

CONCLUSION
PEL should concentrate on promotion of their products and try to enhance the
Target Market of split. PEL should try to capture the remove area market
especially in Rural areas.
To get more market share it needs qualitative products with innovative styles, and
aggressive marketing activities to create awareness among public regarding their
appliances
product.
More attractive Incentives should be designed to get more dealers interest in their
products.
To make their products technically round they need more technology advancement
especially after failure of their T.V. in market. More innovative & new technology is
needed.

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