Professional Documents
Culture Documents
Pak Electron Limited
Pak Electron Limited
EXECUTIVE SUMMARY
I have worked as an intern at PEL for the duration of 6 weeks (11th July 2012 to 24th August
2012) I made this report while working with PEL especially in marketing department. The whole
staff was very cooperative. I have learned a lot from this organization which I have mentioned in
this report.
This report will provide its reader knowledge about the history and background of PEL its
overall strategies, objectives, Owners organization structure, its departments & their working, its
competitors goals, SWOT analysis, STP analysis,, competitive as well as marketing strategies
,business process analysis, my research findings results in PEL, and its overall analysis in the
market,. Finally this report contains my practical learning recommendations and suggestions.
The purpose of this internship was to learn while working in the practical field, especially the
knowledge related to the sales and marketing department it has really helped me to observe to
what extent the text book knowledge is being practical in real field how it can help to enhance
our knowledge. As PEL has been considered as the renowned provider of appliances in Pakistan
so I preferred to work in the appliances divisions marketing department of PEL and also this
whole report gives the information about the appliance division.
33
MISSION STATEMENT
TO provide quality products and services to the complete satisfaction of our customers
TO maximize returns for all stake holders through optimal use of resources
To focus on personal development of our employees to meet future challenges
To promote good governance, corporate values and a safe working environment with a strong
sense of social responsibility
VISION STATEMENT
To excel in providing engineering goods and services through continuous improvement.
OBJECTIVES
The continuous improvement of all products and services through total involvement of
employees.
The development and strengthening of joint ventures and partnerships with external and internal
customers and suppliers.
Providing innovative and higher quality to achieve total customer satisfaction by understanding
their requirements and anticipating their future expectations or needs through
Monitoring annual targets for quality improvements in all areas and functions of the
organization
Valuing people by understanding and drawing upon the strengths i.e. abilities and
knowledge and make efforts for their training and development.
With a dedicated team of professionals the company is striving to improve the quality of life in
Pakistan home through reliable equipments for power distribution and home appliances.
HISTORY
PEL is a synonymous with quality all over Pakistan. It was established in 1956
with the electrical collaboration of m/s AEG (former German electronics and
electrical-equipment company. as one of Germanys leading industrial
companies through much of the 19th and 20th centuries, AEG manufactured
products for industrial and domestic use.)AEG experts and PEL employees
carried out the designing and production of these equipments jointly.
In 1978, the SAIGOL GROUP of companies purchased major shares of PAK
ELEKTRON LIMITED. At that Time Company was only manufacturing the
transformers and switchgears. It has mainly two divisions power and
appliances division with the SAIGOLS in management, PEL started expanding
its product range by entering into air conditioner manufacturing and,
In 1980 the company expanded their business into consumer goods with
the introduction of window type air conditioners.
33
33
INTRODUCTION
PAK ELEKTRON LIMITED is the renowned company in the home appliances
sector. It was established in 1956 it is the oldest composite electrical
equipment manufacturing unit of Pakistan producing power and consumer
products. It has divided into two divisions.
Power division
Appliances division
POWER DIVISION
It is one of the major electrical equipment suppliers to WAPDA (water and
power development authority) and KESC.PEL equipments has been used in
various power projects of national importance within Pakistan over the years.
PEL has had the privilege of getting its equipment approved and certified. In
power sector it has different power products.
POWER PRODUCTS:
TRANSFORMERS
ENERGY METERS,
SWITCHGEARS,
APPLIANCES DIVISION
This division of PEL consists of home appliances manufacturing. In 1981 PEL
introduced window type air conditioner in collaboration with corporation of
Japan. In 1986 company introduced refrigerators in collaboration with
corporation of Italy. In 2006 company introduced split air conditioners in
various capacities,it has different product ranges.
APPLIANCES PRODUCTS
Refrigerators
Split type air conditioner
33
Microwave
Deep freezers
Washing machine
Water dispenser
Today, PEL has become a
household name. Its products
are not only in great demand in
the local market but the
Company has also started
exporting its appliances to
foreign markets
STRUCTURE
ORGANIZATION
33
MANAGEMENT HIREACHY
A committed team of highly qualified, professional, experience and
well reputed managers manages the company. The management
hierarchy of PEL is stated below.
BOARD OF DIRECTORS
MR. MIAN NASEEM SAIGOL(Chairman/chief executive officer)
MR. MUHAMMAD AZAM SAIGOL
MR .SHAHID SETHI
MR. HAROON AHMED KHAN ( Managing Director )
MR. MUHAMMAD MURAAD SAIGOL
MR. HOMAEER WAHEED
33
GULL NAVAZ
MASOOD KARIM SHEIKH (NBP Nominee U/S 182 OF ORDINANCE)
TAJAMMAL H.BUKHARI (NBP Nominee U/S 182 Of Ordinance)
WAJAHAT A. BAQI(NBP Nominee U/S 182 Of Ordinance)
AUDIT COMMITTEE
MR. AZAM SAIGOL(Chairman/Member)
MR. HAROON A KHAN(Member)
MR.TAJAMMAL H. BUKHARI (Member)
REGISTERED HEAD OFFICE:
17 AZIZ AVENUE ,CANAL BANK GULBERG V ,
LAHORE OFFICE 14 KM , FEROZPUR ROAD LAHORE-54760
GP.D BOX NO 1614 LAHORE PAKISTAN
TEL : (+92 42 )(5811951-59)
EMAIL :shares@saigols.com
Website :www.PEL.com.pk
DEPARTMENTS
There are 5 major departments of PEL
MARKETING DEPARTMENT
FINANCE DEPARTMENT
PRODUCTION DEPARTMENT
HUMAN RESOURCES DEPARTMENT
RESEARCH AND DEVELOPMENT DEPARTMENT
MARKETING DEPARTMENT
This department is headed by category manager Mr. MUHAMMAD SHAHID.
Then further down in hierarchy there are
Marketing executives (Mr. TANVEER AHMAD, Mr. SOHAIB, Mr.IBRAR,
Mr.ASHHAD)
Marketing Research Executive (Mr. ALI ZAFAR)
Media coordinator (MR AFRAZ AHMAD)
Pricing in charge (Mr. ISHTIAQ)
33
33
FINANCE DEPARTMENT
This department is controlled by general manager finance and it has been
divided into 3 areas:
Finance
Accounts
Credit control
Finance
Finance deals with banks
Accounts
Accounts deals with costing systems, billing and booking transactions as well
as internal auditing and the next department in the finance is listed below is
also an important section.
Credit control
Credit control deals with credit and recovery procedures in the finance
department
PRODUCTION DEPARTMENT
This department looks after the manufacturing of products .this department
is given target 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 as it sees there are no
defects or shortcomings in the products .it also oversees the new
technologies as well as it also contains updates regarding the new machinery
or other equipment for better product performance.
After manufacturing the product is sent to Germany for technical assessment
to DANFOSS Company. After approval from it then its bulk production is
started.
33
FUNCTIONS
Recruitment
Selection
Training
Transfer
Firing decisions
Labor affairs
Staff welfare
MARKETING STRATEGY
My report concerns about the home appliances department of PEL so I will
briefly explain you about the marketing mix of the home appliances.
Generally it includes the 4 Ps and that they are:
PRODUCT
33
PRODUCTS
In products it includes a various sub varieties in a single product and it
mainly includes the PRODUCTS:
REFRIGERATORS
AIR CONDITIONERS
WASHING MACHINES
WATER DISPENSERS
MICROWAVE OVENS
REFRIGERATORS
In refrigerators PEL mainly includes the 5 types of series:
DESIRE MORE
ARCTIC SERIES
DESIRE SERIES
DELUXE SERIES
SMART SERIES
33
AIR CONDITIONERS
In air conditioners it has three types
Split type AC
Floor standing AC
WASHING MACHINES
In washing machine it has two series:
PMW 7700(Rs. 9350)
PMW 512(Rs.6850)
33
WATER DISPENSERS:
In water dispensers it has two series:
Silver line
Life stream
MICROWAVE OVENS
In microwave ovens it has three series:
SILVER LINE OVENS
MICROWAVE OVENS
XPRESSION SERIES
33
PRICE
Prices are kept according to the competitors level .PEL has consideration that
the market should not to be shrink because of pricing criterias
The company has appointed various informers who consistently visit and
check the retailers shop and check that either they had maintained the PEL
prices or not. Then those informers inform the company about those retailers
in case of any irregularity and then company takes an appropriate action
against those retailers.
Pricing depends upon market conditions and it is important from the sales
point of view. Marketing manager has full authority in this region but he also
has to take permission from the companys top management.
PLACEMENT
The distribution setup of PEL has undergone many changes.
In 1988; the setup was very simple .there were only four sale officers who
use to manage area offices in Multan, Rawalpindi, Lahore and Faisalabad.
In 1989 the company decided to form an effective dealership network. The
company had its dealers in all major cities.
In 1993 management planto form a region to further improve the
distribution system. The whole country was divided into four major regions.
In 1996 It is further improved, by increasing regions from 4 to 6.
CHANNEL LEVELS
PEL has two channel levels
DIRECT MARKET CHANNEL
INDIRECT MARKET CHANNEL
33
PROMOTION
The main advertisement criteria used by PEL in appliances division is through
media. The main types of media used in PEL Are mentioned below.
TYPES OF MEDIA
There are major 3 types of media:
Electronic media
Print media
Outdoor media
ELECTRONIC MEDIA
The electronic media mainly includes different channels and
It Includes HUM, ARY, GEO, PTVworld and prime TV
33
PRINT MEDIA
National newspapers e.g. Jung, news, dawn, and etc
Magazines as herald, news lines, banking business
PROMOTIONAL ACTIVITIES
PEL participate in exhibition time to time.
It also participates in the electronic exhibitions in order to recall the brand in
the minds of the customers and It includes:
Dawn life style 2012
Dealer shop display
Musical clarity concert sponsorship
33
SWOT ANALYSIS
33
STRENGTHS
PEL has established a strong brand image in the mind of the customers
with the strenuous effort of more than 50 years through higher quality and
low price.
PEL is the first Home Appliances Company in Pakistan Industry to achieve the
super brand award. This shows that the company is now able to complete
the market in such a way that people have got faith in them.
PEL was the market leader for a long time in window ac. Because of that
brand image, PEL had captured the high market share.
PEL has more than 1600 appliances dealers all over Pakistan and it shows
that it has also developed the strong dealer network in the appliances
market.
PEL is one of the companies, which is having a strong grip in the home
appliances. PEL is penetrating the market by introducing the new series of
home appliance.
33
WEAKNESSES:
Like other companies PEL has some weaknesses in operating the business. If
PEL overcome these weaknesses then it can become a market leader in the
home appliance. PEL lose some competitive edge in the following points:
OPPORTUNITIES:
If PEL take advantage of the opportunities it has, then it will be more fruitful
and profitable it can have following opportunities by.
33
Having a strong and nationwide network throughout Pakistan and with a long
and enduring relationship with major industrial sector in Europe, Asia and
America. PEL has massive opportunity of outsourcing partial and fully
developed products.
Company has also an opportunity that it can increase its product range to
attract more customers towards its products. Due to lack of product range,
company can earn limited amount of profit.
The Company also has an opportunity to export its products. As they have
skilled and crafted foreign procurement department which use to import raw
material from almost all over the world. This activity will not only reduce the
reliance on one market but also helps to improve the revenue for the
company and will make PEL as a global brand.
Through all these acquisition of opportunities the PEL can gain a more better
position than that its competitors.
THREATS
33
33
EXECUTIVE LEVEL
At executive level executives report to the manager and who then report to
the general managers.
WORKER LEVEL
At worker level usually 10 to 30 workers report to a foreman .three to seven
foreman reports to a section in charge.
DIVISION OF LABOR
Permanent employees
Temporary employees
BEHAVIORAL SEGMENTATION
PEL provides the quality products for their customers based on local
demands and needs
33
DEMOGRAPHIC SEGMENTATION:
Demographics are on the basis of age, occupation, Income and education.
AGE:
The percentage of people especially whose ages are between 25-40 and it
also focuses on the people above 40
OCCUPATION:
It considers the people of all sectors containing the businessman,
industrialists, govt. employees, bankers, teachers as well as people doing the
private jobs.
INCOME:
Considers the people mainly having income more than 15000 per month
EDUCATION:
It mostly focuses on literate people.
PSYCHOGRAPHIC SEGMENTATION
Psychographic features are mostly decided on life style;
LIFESTYLE:
It focuses mainly on middle class people.
GEOGRAPHIC SEGMENTATION
It has been divided according to north (Punjab, NWFP) and south (SINDH,
Baluchistan)
Zones and there are six regions of PEL in Pakistan:
Karachi
Lahore
Multan
Gujranwala
Rawalpind
33
TARGET MARKET:
Our customers belong to A, B+ & B classes.
These all have their income level more than Rs.15, 000 per month.
The young and old adults, working ladies and housewives are also the target
market of PEL. All the married and unmarried decision makers or joint
decision makers for the purchase of consumer durables.
The age of females should be between 25-40 years and males are between
2845 years.
POSITIONING:
Positioning is what the customers believe and not what the provider wants
them to believe.PEL adopts different positioning strategies for its products.
Products are designed according to their attributes, customer needs and
preferences and it also designs the products in comparison with its
competitors and it has positioned itself as change your life.
Position is the way a firms product, brand or organization is viewed relative
to the
competition by current and prospective customers.
Positioning is a firms use of all the elements at its disposal to create and
maintain in
the minds of a target market particular image relative products.
PEL has different positioning levels for different products,
In case of refrigerators the company is challenger of DAWLANCE.
In case of air conditioners company is challenger for WAVES and MITSUBISHI.
In case of televisions company is challenger of LG and some other
companies.
33
33
B2B Market:
Visi Coolers and ice cream freezers are business products so it have a
business to business market. Manufacturer directly sells their products to
corporate clients. The major clients of visi coolers are
Coca Cola
Pepsi-co
Nestle
These 3 corporate names take the most of the market share of visi coolers.
But there are some many other small clients which varies region to region.
Even the small business of local markets purchases it directly through
manufactures. The major corporate clients in Lahore of Visi Coolers are.
Gourmet
Doce
Rahat Sweet and bakers
Butt sweets
Adam Dairy
Anhaar milk
Hyper star
Metro
These are the major corporate clients of Lahore. Likewise every rejoin have
its own local clients But the major market available in major cities.
There are some descriptions of clients who are in contract with different
manufacturers.
Client Manufacturer
Pepsi
Coca Cola
Nestle
Varioline intercool
Varioline intercool & Caravell
Varioline intercool & Caravell
33
33
Hyperstar
33
Al fatah mart
Doce
33
Gourmet
33
Market shares:
Through market survey we analyzed that Varioline intercool is the market
leader with highest 60 % share of market following by Caravell, Haier and
Pak laser as shown in above chart.
Market Share
Market Figures
Varioline Intercool is supplying about 50,000 Visi Coolers and Chest Coolers
to its Valuable Clients. Waves are supplying approximately 6,000 ice cream
freezers to Beverages Industry of Pakistan and about 45,000 Freezers to
domestic consumer market. About 7,000 Coolers and Freezers are being
supplied by ,Caravell & Dawlence in local market.
33
Conclusion
In Current market there is opportunity to penetrate with quality product to
capture the market. PEL has a history in appliances so it has advantage of
BRAND IMAGE in the eyes of market. Visi coolers by nature is expensive
product and manufacturers are charging high prices against it.
PEL has also an advantage of available infrastructure for the production of
visi coolers .Major clients of visi coolers are bound to purchase visicoolers
from Varioline intercool because there is no else to challenge them strongly.
For PEL there is a very good opportunity to manufacture Visi cooler for the
market and challenge the current players with their quality product and
services.
33
BIBLIOGRAPHY:
Internet sources:
http://www.PEL.com.pk
http://www.google.com
http://www.scribd.com/doc/16962719/PEL-Ltd
http://www.scribd.com/doc/27836099/Internship-report-of-PEL
http://www.scribd.com/doc/27189959/PEL-Internship-ReportIntroduction
http://www.scribd.com/doc/27836099/Internship-report-of-PEL
person soure
Mr. Mahmood Ahmad
Mr. Khalid bashir
33