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Project Report on PEL by Commerce Solutions in Internship Report, PEL, Project Report

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 DIVISIONProducts 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 DIVISIONBusiness 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 OBJECTIVES1.      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:-

 Brand Managers.

 Manager Distribution Credit.

 Customer service officers.

 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:-

 Abid Market

 Patiala Market

 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 :-

RSM                                      (1)

 Area Sales Manager                  (2)

Sales 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:-

 Finance

 Accounts

 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

                                       Sanctioned                 

                                  Installed Capacity

                                            2001

ActualProduction

2001

Electric motors

Transformers

25,612  HP

1500     MVA

Nil

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

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 REFRIGERATORIt 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.

 

FEATURESSuper 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

 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.

 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

PLACEMENTThe 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 ZONENorth Zone includes:-

 Punjab

 NWFP

SOUTH ZONE

   South zone includes:  

 This zone Sind

 Baluchistan 

 

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

 Karachi

 Lahore

 Multan

 Gujranwala

 Rawalpindi

 Faislabad

PROMOTION MIX (APPLIANCES)ADVERTISINGThe objectives of advertising are :-

 To increase sales

 To increase recall 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 MEDIA1. ELECTRONIC MEDIAIt 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 Credit for sixty days

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

 Hajj scheme for dealers

 Car is given to best dealer which  set target

 Dubai tours.

CUSTOMERFor customer PEL gives some additional gifts with products i.e. Wall Clock,

Watches.

 

PUBLIC RELATIONINGIn 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 # 1 window A/C in Pakistan.

 It is available in three models.

 It has been manufactured with collaboration of carrier.

 It has 5 years compressor guarantee.

 Specially designed for environment of Pakistan to provide cooling.

WEAKNESS It consumers more energy.

 More weight which create problem in transportation and installation.

 It is available only in two colours.

OPPORTUNITIES Removal of excise duty by Govt.

 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 standard.

 Noiseless compressor.

 5-years Guarantee of compressor.

WEAKNESS Advertising is very much low.

 Target market for split is less.

 Installation cost is high.

 It is only available in two models.

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

OPPORTUNITIES By increasing advertisement demand can be generated.

 By providing more models PEL can capture more market.

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

 Target market in Pakistan is lower as compared to 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 in size as compared to its competitors.

 Crystal is available in many colours as designed by people.

 It is available is attractive shapes.

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

 Dealers Complain about Margin in pricing.

OPPORTUNITIES

 PEL Crystal is well received by customer.

 By increase in Advertising PEL can easily capture refrigerator market.

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

 Any innovation by competitors can effect market share of PEL.

 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.  

 

CONCLUSIONPEL 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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