Final Marketing Project on PEL

INTRODUCTION OF COMPANY’S BUSINESS

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 maintain exclusive service standards.

7.      To promote 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 build up customer satisfaction.

11.    To provide wide range of products and services 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 6 major departments in PEL they are :-

(i)      Marketing Department

(ii)    Finance Department

(iii)   Production Department

(iv)   Human Department

(v)     Administration Department

(vi)   Research &Development Department

1. MARKETING DEPARTMENT

This department is headed MANAGING

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

X Brand Managers.

X Manager Distribution Credit.

X Customer service officers.

X Institutional sale Manager.          

               There are six branches of PEL in Pakistan.

They are Headed by Regional Sales 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 3 areas:-

X Abid Market

X Patiala Market

X Out skirts

·    In Abid Market there are 20 dealers and 30 sub dealers.

·    In patiala Market there are 16 dealers and 21 sub dealers.

·    In outskirts there are 35 dealers

     In Lahore there is :-

XRSM                                      (1)

X Area Sales Manager                  (2)

XSales executive                       (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:-

X Finance

X Accounts

X Credit Control

(i)     Finance

Finance deals with Banks

(ii)    Accounts

Accounts deal with costing system, Billing &

booking transactions as well as internal auditing.   

(iii)   Credit Control

This section of finance department

deals with Credit and recovery procedures.

PRODUCTION DEPATMENT

              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

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

F Recruitment

F Selection

F Training

F Transfer

F Firing decisions

F Labor Affairs

F Staff welfare

F 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 2^nd 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:

X PEL

X LG

X Dawlance

X Waves

X 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 5-year 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 Products, Absolute Guarantee

                 For complete customer satisfaction, the Carrier window airconditioner is backed 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 corrosion-proof.

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 a 2-year compressor and 1-year parts guarantee.                                

6000

X 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 water-accumulating.

X This type of washing machine adopts advanced water-filling and spining functions to save rinsing time and water.

X Its out-case is made of aluminium alloy to prevent rust.

5200

X New-type, generating lotus-leaf-like big agitating waves which can prevent fabrics from twining with one another, for enhanced cleanliness.

X 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.

X Adopts advanced water-filling and spinning functions to save rising time and water.

X 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              

F General

F Waves

F L.G

REFRIGERATOR COMPETITORS

F Dawlance

F Samsung

F L.G.

F 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 Zone includes:-

F Punjab

F NWFP

SOUTH ZONE

   South zone includes:  

F This zone Sind

F Baluchistan 

REGIONS

There are six regions of PEL in Pakistan. They are:-  

F Karachi

F Lahore

F Multan

F Gujranwala

F Rawalpindi

F Faislabad

PROMOTION MIX (APPLIANCES)

ADVERTISING

The objectives of advertising are :-

F To increase sales

F To increase recall of products

F 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.

2. PRINT MEDIA

(i)      National Newspaper e.g. Jang, News, Dawan and etc.

(ii)    Magzines => Herald, News line, Banking business.

3. OUT DOOR MEDIA    

(i)      Boarding

(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

F Credit for sixty days

F Rs.400/-  Per set if dealer sells the target No. of sets.

F Hajj scheme for dealers

F Car is given to best dealer which  set target

F Dubai 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:

F Quite Inexpensive 

F Public Relations have more Creditability then public relations

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

SWOT ANALYSIS (AIR-CONDITIONER)

STRENGTHS

F It is # 1 window A/C in Pakistan.

F It is available in three models.

F It has been manufactured with collaboration of carrier.

F It has 5 years compressor guarantee.

F Specially designed for environment of Pakistan to provide cooling.

WEAKNESS

F It consumers more energy.

F More weight which create problem in transportation and installation.

F It is available only in two colours.

OPPORTUNITIES

F Removal of excise duty by Govt.

F Corporate sales.

THREATS

F Govt. Policy changes with time.

F Large market share has been captured by smuggled A/C e.g. Russian A/C.

F Severe competition from General.

 STRENGTHS (SPLIT A/C) 

F It is manufactured with collaboration of carrier.

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

F Cooling system is up to the required standard.

F Noiseless compressor.

F 5-years Guarantee of compressor.

WEAKNESS

F Advertising is very much low.

F Target market for split is less.

F Installation cost is high.

F It is only available in two models.

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

OPPORTUNITIES

F By increasing advertisement demand can be generated.

F By providing more models PEL can capture more market.

THREATS

F Govt. Policies may effect joint ventures of PEL & CARRIER.

F Target market in Pakistan is lower as compared to other countries.

SWOT ANALYSIS (REFRIGERATORS)

STRENGTHS

F PEL refrigerator is designed to suit the climatic conditions of Pakistan.

F Advertisement of PEL refrigerator as of good level and people are fully aware of it.

F PEL has launched crystal refrigerator with large of “Taqatwar Cooling”.

F Crystal is biggest in size as compared to its competitors.

F Crystal is available in many colours as designed by people.

F It is available is attractive shapes.

WEAKNESS

F It is No.2 Refrigerator in Pakistan after Dawlance.

F Dealers Complain about Margin in pricing.

OPPORTUNITIES

F PEL Crystal is well received by customer.

F By increase in Advertising PEL can easily capture refrigerator market.

THREATS

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

F Any innovation by competitors can effect market share of PEL.

F PEL has strong competition with Dawlance, Philips (Whirlpool) 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.