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Company introduction:

Pak Electron Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan. It was established in 1956 in technical collaboration with M/s AEG of Germany. In October 1978, the company was taken over by Saigol Group of Companies. Since its inception, the company has always been contributing towards the advancement and development of the engineering sector in Pakistan by introducing a range of quality electrical equipments and home appliances and by producing hundreds of engineers, skilled workers and technicians through its apprenticeship schemes and training programmes. The company comprises of two divisions:

Appliances Division Power Division

APPLIANCES DIVISION
This Division of PEL consists of appliances manufacturing.

PEL Air Conditioners


PEL window-type air conditioners were introduced in 1981 in technical collaboration with General Corporation of Japan. Ever since their launch, PEL air conditioners have a leading position in the market. PEL air conditioners cooling performance has been tested and approved by Copeland and ITS USA. With the shift of users preference from window type to split type air conditioners, PEL has started manufacturing split type air conditioners.

PEL Refrigerators

The manufacturing of refrigerators started in 1986-87 in technical collaboration with M/s IARSILTAL of Italy. Like the air conditioner, PEL's refrigerators are also in great demand. Today, PEL Crystal has 30% market share. Its cooling performance is tested and approved by Danfoss, Germany and its manufacturing facility is ISO 9002 certified by SGS Switzerland.

PEL Deep Freezers


PEL deep freezers were introduced in 1987 in technical collaboration with M/s Ariston of Italy. Because of durability and high quality, PEL deep freezers are the preferred choice of companies like Unilever.

POWER DIVISION
PEL Power Division manufactures energy meters, transformers, switchgears, Kiosks, compact stations, shunt capacitor banks etc. All these electrical goods are manufactured under strict quality control and in accordance with international standards. PEL is one of the major electrical equipment suppliers to Water and Power Development Authority (WAPDA) and Karachi Electrical Supply Corporation (KESC), which are the largest power utilities in Pakistan. Over the years, PEL electrical equipment has been used in numerous power projects of national importance within Pakistan. PEL has the privilege of getting its equipment approved and certified by well-reputed international consultants such as:

Preece, Cardew and Rider, England Harza Engineering Company, USA Snam Progeti, Italy Societe Dumezm, France Miner & Miner International Inc. USA Ensa, France

In spite of stiff competition from emerging local and multinational brands, PEL Group's appliances and electrical equipments have remained in the spotlight due to constant innovation. Strategic partnership with multinationals of repute have enabled the PEL Group to incorporate new technologies into existing product ranges, thus giving the Pakistani market access to innovative, affordable and quality products.

Vision
To excel in providing engineering goods and services through continuous improvement.

Mission Statement
To provide quality products & services to the complete satisfaction of our customers and maximize returns for all stakeholders through optimal use of resources To focus on personal development of our Human Resource to meet future challenges To promote good governance, corporate values and a safe working environment with a strong sense of social responsibility

SWOT Analysis
The strengths, weaknesses, opportunities and threats of PEL are discussed below:

Strengths
PEL has the following strengths and is in more competitive position in these areas than its competitors. Following are the main strong points of PEL:

Strong brand image Strong dealer network Strong quality, sale and service

Leading Manufacturers of Refrigerators in Pakistan Strong Management Free customer service

Weaknesses
Like other companies PEL has some weaknesses in operating the business. If PEL overcome on these weaknesses then it can become a market leader in the home appliance. PEL loose some competitive edge in the following points: Lack of advertisement Lack of product range Lack of distribution of authority Less growth opportunity Lack of excellent relationship management

Opportunities
For the PEL there are more opportunities for the expansion of their business. Increase in product range. Some of the opportunities are:

Exploration of Market in Pakistan Increase in Production Range

Threats
PEL faces a lot of threat in local market, some of those threats are as follows:

Strong competition Chinas product Price war

Slow growth rate in Pakistan Instability of Government Tax

RELATIONSHIP MARKETING
Within the marketing department Further down in hierarchy there are: Brand Managers. Manager Distribution Credit. Customer service officers. Institutional sale Manager. Marketing department monitors the customers demands, their preferences, and changing needs. With the main purpose of attracting, retaining and growing profitable customers which cant be possible without relationship management. Organization uses the 4Ps tool in the company i.e. Product, Promotion, Placement, and 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, and Waves etc. There are print as well as electronic media for promotion activities.

Customer Service Department (CSD)


CSD is a customer service department under the Marketing Head. Where the after sale service is provided to satisfy customers having problem in their appliances. PEL is well known for their customer care service.

Consumer Marketing Department (CMD)

This department is basically under the marketing department. At the start this department did not exist in the hierarchy but with the passage of time and with the success of relationship management in industry, this department came into being. There are many regional offices in major cities for example in Multan, Sahiwal, Karachi, Hyderabad, Faisalabad, Gujranwala, Hattar, Rawalpindi, Sialkot, Bahawalpur, Sukker, Sargodha and AJK (Azad Jammu Kashmir) and the head-office is in the factory that is Consumer Marketing Department.

FUTURE OUTLOOK
PEL plans to focus around key objectives of building a strong demand for core products through effective marketing and product improvement so the have to focus on emerging need of relationship management. 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.

MARKETING STRATEGY:

PLACEMENT
For good relationships with customer ypur should be easily available. The distribution set-up of PEL has undergone many changes indicating that they started realizing the importance of relationship management. 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. Then the company decided to form an effective dealership network. The company had its dealers in all major cities. After that management plane to form a region to further improve the distribution system. The whole country was divided into four major regions. It is further improved 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 are given below.

PEL has two channel levels. DIRECT MARKET CHANNEL (1 to 1 marketing for relationship marketing): It has no intermediacy level. The Company through sales officers directly sale products to large organizations and corporate sector. INDIRECT MARKET CHANNEL It is a channel with one or more intermediary level. The general customers can buy PEL products through authorized dealers. PEL has been network; Regional sales force is connected with dealer. Core customer is directly attached. Dealers are also visit and analyze 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.

SEGMENTATION

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

NORTH ZONE
North Zone includes: Punjab KPK

SOUTH ZONE
South zone includes:

Sindh Baluchistan

REGIONS
There are six regions of PEL in Pakistan. They are:Karachi Lahore Multan Gujranwala Rawalpindi Faislabad

PRICING
Prices are kept according to customers psyche that customer dont feel that product is low than its competitors. PEL considers market should not shrink because of pricing. Prices do not depend on seasons. Pricing is important to control sales. Pricing depends upon market conditions. Marketing Manager is independent in his region for batter relationships with dealer and ultimately to facilitate customers well. But he has to get approval from company for giving more incentives to dealers. The dealers play important role in sales.

PROMOTION MIX

ADVERTISING

The objectives of advertising are: To increase sales To increase recall of products To restore message in consumers 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

ELECTRONIC MEDIA
TV chamnnels preferably family channels e.g. ARY digital and HUM tv.

PRINT MEDIA
(i) (ii) National Newspaper e.g. Jang, News, Dawan and etc. Magzines => Herald, News line, Banking business.

OUT DOOR MEDIA


(i) Boarding

(ii)

Neon Signs

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

INCENTIVES FOR RELATIONSHIPS:


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.

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.

CONCLUSION
PEL should concentrate on promotion of their products and try to enhance the Target Market of split. To get more market share it needs STRONG BANDS OF RELATIONSHIP AND 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. Although PEL is concentrating toward relationship. But its not enough they should look toward the top multinational organizations who excel in relationship no matter, customer relation

programs, employees relation or dealers or suppliers relation. Its takes them among top organizations. They should concentrate on promotion programmes and after sale services.