Project of PEL
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STUDY OF MARKETING SYSTEM
Of
Pak Electron Limited
Submitted By:
Group (D) MBA (A) M Naveed Aslam 05 Madeeha Razzaq 85 Imran Naseem 40 Tariq Mahm Mahmmod mod 77 Sadia Riaz 21
Pak Electron Limited
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Uzma Khalid 76 Submitted To:
Dedication:
We dedicate our project to COMSATS And all the students of the university. university.
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ACKNOWLEDGEMENT:
A million thanks to the Almighty, without whose support, there can be no work. I would also like to take this opportunity to extend my appreciation and gratitude to Mr.Zeeshan Ullah, without their counseling and parallel skills I would have never been able to prepare this report. We owe special thanks to PEL company for assistance, Development Work Work and data collecting. Finally we owe many thanks for the participation of all group members and their coordination to accomplish the task.
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TABLE OF CONTENTS:
EXECUTIVE SUMMARY SUMMARY
06
VISION
08
MISSION STATEMENT STATEMENT
HISTORY OF PEL
10
PEL COMPANY STRUCTURE: STRUCTURE :
11
SITUATION ANALYSIS:
Market Research
13
Porter ’s Model Porter’ SWOT Analysis
20
OBJECTIVES OBJECTI VES OF PEL
26
STRATEGIC MARKETING PLANNING:
BCG Matrix
Strategies of PEL
29
COMPATITIVE ADVANTAGE
30
MARKET SEGMENTATION SEGMENTATION
31
TARGET MARKET
32
POSITIONING
MARKETING MIX: 4
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PRODUCT MIX
Product Lines of PEL
35
Features of product line
40
Product life cycle
42
PRICING
PROMOTION:
Promotional Strategies Strategi es of PEL
47
Methods of promotion promotion
47
Advertising
PLACEMENT
COMPETITION:
Direct competitor competito r of PEL
54
Indirect competitor of PEL
55
COMPARISON BETWEEN PEL & DAWLANCE DAWLANCE
56
GROWTH RATE OF PEL
57
QUALITY QUAL ITY AWARD
58
FUTURE OUTLOOK
59
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EXECUTIVE SUMMARY:
PEL and PEL appliances fall under the Saigol Group of Companies. PEL has long been known in Pakistan as a company that produces quality products. PEL has created a brand loyalty among its users and the company credits that to its high quality and vast product range. PEL has been continuously adding new products to its range. As a result, PEL has registered a significant increase in its sales volume, during the last ten years. One sector in Pakistan that has grown considerably in the past is the Home Appliances Divi Divisi sion on.. There There is great great comp competi etiti tion on in this this secto sectorr and and PEL PEL has has surv surviv ived ed this this competition with great flair. PEL enjoys good reputation in the market for its home appliances. PEL is in a growth phase in this sector. This sector carries a lot of potential and PEL can capitalize on this fact. My stay at PEL was very beneficial due to the fact that I got the opportunity to learn the trends in the market in this sector. The company takes it as a liability to take care of its employees. The corporate culture at PEL was very healthy and induced work habits. This atmosphere helped me in building self-confidence and belief. At PEL I had an opport opportuni unity ty to deal deal directl directly y with with the customers customers and find out their demand demandss and problems associated with PEL. I got to know about the trend in the industry and also conducted a research through which I got a better understanding of the consumer buying behavior. I also got a chance to improve my decision-making skills. Further more, working at PEL also helped me in becoming a better time-managed person. I got to know the importance of teamwork at the work place.
In the end, all the experience that I have gained during my stay at PEL has helped me a lot in becoming a better organized person and will definitely help me in becoming an even better person in the future. I can say this with out doubt that the values that I have gained while working at PEL will be applied to wherever I go to work in the future .
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“To excel in providing engineering goods and services through continuous improvement”
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Dominator Group (D)
Pak Electron Limited
To
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provide quality products & services to the
comp comple lete te sati satisf sfac acti tion on of our our cu cust sto omers mers and and maximize returns for all stakeholders 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 responsibility
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Pak Electron Ltd. (PEL) was established in 1956 with the technical collaboration of M/S AEG Germany and is the oldest composite electrical equipment manufacturing unit in Pakistan. In October 1978 the company was taken over by the SAIGOL GROUP, which is one
of the the lead leadin ing g indu indust stri rial al and and comm commer erci cial al grou groups ps of Paki Pakist stan an.. The The prod produc ucts ts manufactured by PEL have always been of a high standard and the name “PEL is synonymous with quality all over Pakistan.” PEL, since its inception, has been acting as an institution working for the advancement and development of engineering and modern technology in Pakistan Sinc Sincee its incep inceptio tion, n, the the comp company any has has been been work workin ing g for for the the adva advanc ncem emen entt and and develo developme pment nt of engine engineeri ering ng know-h know-how ow in Pakist Pakistan. an. The compan company y has produc produced ed hundreds hundreds of engineers engineers and skilled skilled workers workers and technicians through its apprenticesh apprenticeship ip schemes & training programs. PEL has been continuously adding new products to its range. As a result, PEL has registered a significant increase in its sales volume, during the last ten years In 1978, the Saigol Group of Companies purchased major shares of Pak Electron
Limited Limited.. At that junctu juncture, re, the compan company y was only only manufa manufactur cturing ing transfo transforme rmers rs and switchgears. With the Saigols in management, PEL started expanding its product range by entering into Air Conditioner manufacturing. In 1981, PEL window type air conditioners were introduced in technical collaboration
with General Corporation of Japan. In 1986 1986-8 -87 7, the the comp compan any y start started ed manu manufac factu turin ring g of refri refrige gerat rator orss in techn technic ical al
collaboration with M/s IAR-SILTAL of Italy. In 1987, PEL deep freezers were also introduced in technical collaboration with M/s
Ariston of Italy. Italy.
In 2006, the Company has started manufacturing of split type air conditioners of
various capacities as the customer choice has shifted from window type to split type. The product has been well received in the market. This encourages the company to multiply its production in the coming year. Today, PEL has become a household name. Its products are not only in great demand in the local market but the Company has started exporting its appliances division products. 10
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Pak Electron Limited (PAEL or PEL) is the pioneer manufacturer of electrical goods in Pakistan. The company is listed on all the three stock exchanges of Pakistan. Its principal activity is manufacturing and sale of electrical capital goods and domestic applia appliances nces.But .But now, now, PEL is operating a single business entity without any division.
LAHORE FACTORY: In Lahore Factory, Refrigerators, Transformers, Energy Meters, and Switchgears are produced. Pr eviously, eviously, Window AC and Deep fr eezers were also produced in Lahore Factory but PEL quit these operations. However, PEL has restarted the production of Deep freezers once again at Lahore factory. There are following departments in the Factory of PEL: • • • • • •
Production department. Research and development. Quality control department. Human resources department. Marketing department. Finance department.
The company comprises two divisions:
Appliances Division.
Power Division.
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APPLIANCES DIVISION: PEL’s PEL’s Appliances Division is the flag carrier of the Saigol Group involved in home appliances manufacturing.
Air conditioners.
Refrigerator.
Deep freezers.
Microwave oven.
Washing machine.
Generators.
POWER DIVISION: PEL Power Division manufactures energy meters,
Transformers
Switchgears
Kiosks
Compact stations
Shunt capacitor banks
Energy meters
Generators
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) (WAPDA) and Karachi Kar achi Electrical Supply Corporation (KESC), which are the largest power utilities in Pakistan.Over the years, PEL electrical equipment has had been used in numerous power projects of national importance within Pakistan. 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.
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MARKETING RESEARCH: It is a set of activities which are performed for the purpose of getting customer knowledge in the form of Feedback to provide them ultimate satisfaction through improved and desired products. PEL is taking keen interest toward marketing research activates to know about customer desires. For this purpose, company is taking services from several research agencies. MRL (market research link) is one of these agencies providing their services to PEL and ensuring to provide authenticated results in the form of Feedback. PEL do not compromise on quality and customer satisfaction so the compan company y provid provides es 100% 100% import importanc ancee to the Feedba Feedback ck generat generated ed throug through h researc research h agencies. While conducting research for PEL, MRL also look forward to collect data about customer awareness towards new launched product.
FINDINGS AND ANALYSIS: ANALYSIS: Area
Valid
Freque Frequenc ncy y 55
Percent ercent 17 .9
Vali Valid d Perce Percent nt 1 8.3
Cumulative Percent 1 8.3
Cavalry Ground
28
9 .1
9.3
2 7.7
Gulberg
19
6 .2
6.3
3 4.0
Liberty
28
9 .1
9.3
4 3.3
Abid Market
70
22 .7
2 3.3
6 6.7
Allam Iqbal Town
18
5 .8
6.0
7 2.7
Main Market
35
11 .4
1 1.7
8 4.3
Moon Market
28
9 .1
9.3
9 3.7
Link Road Model T own
19
6 .2
6.3
10 0.0
3 00
97 .4
10 0.0
8
2 .6
3 08
1 0 0 .0
Defense
Total Missing Total
System
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Pak Electron Limited
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Valid
Frequ Frequen ency cy 22
Perce ercent nt 7 .1
Vali alid Perce ercent nt 7.3
Cumulative Percent 7. 3
15000-25000
47
1 5 .3
1 5 .7
2 3. 0
250000-35000
59
1 9 .2
1 9 .7
4 2. 7
350000-40000
1 25
4 0 .6
4 1 .7
8 4. 3
47
1 5 .3
1 5 .7
1 0 0. 0
3 00
9 7 .4
1 0 0 .0
8
2 .6
3 08
1 0 0 .0
Below15000
upto50000 Total Missing
System
Total
BRAND PREFERENCE TOWARD DIFFERENT BRANDS
Brand Prefere nce (PEL (PEL))
Valid
1
Freque Frequenc ncy y 3
Perce ercent nt 1 .0
Vali alid Perce ercent nt 1.0
Cumulative Percent 1 .0
2
30
9 .7
1 0.0
1 1 .0
3
89
2 8 .9
2 9.7
4 0 .7
4
121
3 9 .3
4 0.3
8 1 .0
5
57
1 8 .5
1 9.0
1 0 0 .0
300
9 7 .4
1 0 0.0
8
2 .6
308
1 0 0 .0
Total Missing
System
Total
Brand Preference (Dawlanc (Dawlance) e)
Valid
Missing Total
1
Frequen Frequency cy 2
Perce Percent nt .6
Vali Valid d Perce Percent nt .7
Cumulative Percent .7
2
10
3 .2
3.3
4.0
3
45
14 .6
15.0
1 9.0
4
73
23 .7
24.3
4 3.3
5
170
55 .2
56.7
10 0.0
Total
300
97 .4
1 00.0
8
2 .6
308
1 00 .0
System
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Pak Electron Limited
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Valid
1
Freque Frequenc ncy y 100
Perce ercent nt 3 2 .5
Vali Valid d Percen ercentt 3 3 .3
Cumulative Percent 3 3 .3
2
73
2 3 .7
2 4 .3
5 7 .7
3
59
1 9 .2
1 9 .7
7 7 .3
4
27
8 .8
9 .0
8 6 .3
5
41
1 3 .3
1 3 .7
1 0 0 .0
300
9 7 .4
10 0 .0
8
2 .6
308
1 0 0 .0
Total Missing
System
Total
Brand Brand Prefere nce (Haier) (Haier)
Valid
1
Frequ Frequenc ency y 1 56
Perc Percen entt 5 0 .6
Vali Valid d Percen ercentt 5 2 .0
Cumulative Percent 5 2 .0
2
1 24
4 0 .3
4 1 .3
9 3 .3
3
8
2 .6
2 .7
9 6 .0
4
5
1 .6
1 .7
9 7 .7
5
7
2 .3
2 .3
1 0 0 .0
3 00
9 7 .4
1 0 0 .0
8
2 .6
3 08
1 0 0 .0
Total Missing
System
Total
WHICH BRAND DID YOU ALREADY HAVE?
Brand Already Already Have .
Valid
Freque Frequency ncy 10 4
Perc Percent ent 3 3. 8
Vali Valid d Perc Percent ent 3 4.7
Cumulative Percent 3 4. 7
Waves
54
1 7. 5
1 8.0
5 2. 7
PEL
92
2 9. 9
3 0.7
8 3. 3
7
2 .3
2.3
8 5. 7
43
1 4. 0
1 4.3
1 0 0. 0
30 0
9 7. 4
10 0.0
8
2 .6
30 8
10 0 .0
Dawlance
Haier Others Total Missing Total
System
WHY DID YOU BUY IT?
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Valid
Missing
3
Frequ Frequen ency cy 2
Percen ercentt .6
Valid alid Perce ercent nt .7
Cumulative Percent .7
4
42
13.6
14 .0
14 .7
5
256
83.1
85 .3
100 .0
Total
300
97.4
1 00 .0
8
2.6
308
100.0
System
Total
Brand Purchase Purchase Due to (Brand Name) Name)
Valid
Missing
3
Frequ Frequen ency cy 21
Percen ercentt 6.8
Valid alid Perce ercent nt 7 .0
Cumulative Percent 7 .0
4
59
19.2
19 .7
26 .7
5
220
71.4
73 .3
100 .0
Total
300
97.4
1 00 .0
8
2.6
308
100.0
System
Total
Brand Purchase Purchase Due to (Features)
Valid
Missing
2
Frequ Frequen ency cy 2
Percen ercentt .6
Valid alid Perce ercent nt .7
Cumulative Percent .7
3
27
8.8
9 .0
9 .7
4
65
21.1
21 .7
31 .3
5
206
66.9
68 .7
100 .0
Total
300
97.4
1 00 .0
8
2.6
308
100.0
System
Total
Brand Purchase Purchase Due to (Re/Frnds)
Valid
1
Frequ Frequen ency cy 16
Percen ercentt 5.2
Valid alid Perce ercent nt 5 .3
Cumulative Percent 5 .3
2
49
15.9
16 .3
21 .7
3
152
49.4
50 .7
72 .3
4
81
26.3
27 .0
99 .3
5
2
.6
.7
1 0 0 .0
300
97.4
1 00 .0
8
2 .6
308
1 0 0 .0
Total Missing Total
System
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Threat of Substitute
Bargaining Power Of Buyers
Bargaining Power Of Suppliers
Dawalance
NEW ENTRANTS
The final out come of the research was that PEL has lost its competitive edge when it comes to other brands. I shall now discuss why is this so in the light of the Porter’s Five Forces Model. These five forces are following.
The risk of new entry by potential competitors
Rivalry among established firms
The bargaining power of the buyer
The bargaining power of the supplier
The threat of substitute products
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DIRECT COMPETITORS The direct competitors of PEL are Dawlance, Waves, Waves, LG, and Haier etc. The Dawlance is market leader in the refrigerator refrigerator and PEL is still on second number. number. But in window window room air conditioner (WRAC) the PEL is market leader
REFRIGERATORS.
Total market sale of refrigerator in 2003 was 367000 units. Last year sale was 256900 units. These figures show 30% market growth. But the average growth was 13% to 17%. And the PEL sale growth is 70%, which is a great achievement.
Dawlance is a market leader in refrigerator with 46% share.
PEL has 32% market share.
Waves has 11% market share.
11% shares are others.
WINDOW AC.
PEL is a market leader with a market share of about 60% in local manufacturing industry. industry. And overall has 35% market ma rket shares for this product.
LG has about 32% market share and stands on number two.
And rest of the manufacturers have 23% marker share.
Indirect Competitors:
The indirect competitors for PEL in this industry are Samsung, Orient, Mitsubishi, Sabro, Nobel and others Chinese brands available in the market. market. The PEL has no big threat from all these companies. But the Sabro pioneer for introducing the split air cond conditi ition oner er in Paki Pakist stan an.. Now Now days days the the sabr sabro o has has lost lost its its mark market et shar sharee to othe other r companies for the business of Split AC.
RISK OF NEW ENTRY BY POTENTIAL COMPETITORS •
High Investments.
Threat for new entrants is high in this industry, partly due to the fact that this industry is a lucrative industry and is very attractive for foreign companies. But in order to 18
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really make a mark in this industry, industry, you need to have strong investment investment and funding. funding. For this matter, PEL is at risk of the t he influx of foreign investments in this sector.
•
Foreign Brands.
Foreign brands like LG, Sony, Samsung, Mitsubishi and Haier etc. are a big threat for local brands. The quality and brand image of foreign brands is high as compared to local brands. Foreign brands have captured the market of split AC and television. LG and Sony are the market leader in television sector. Local brands can’t compete with these companies in this sector.
THE BARGAINING POWER OF THE BUYERS Company’s Company’s buyers are the people who ultimately purchase and consume its products. If there are so many brands and products available in the market at different prices, the bargaining power of the buyers will be high because they have many alternatives, they can demand to lower the prices. On the other hand if there are few brands or companies in the market, then the buyers will be in a weak position to bargain. As a result, the company can raise its prices and earn greater profits. If we see the Pakistani industry the bargaining power of the buyers is very high because a variety of products are available in the market at different prices. So the buyers can choose the product according to his requirements.
THE BARGAINING POWER OF THE SUPPLIERS: Suppliers can be viewed as a threat when they are in few numbers in the market. In that case, the suppliers are able to force up the price of inputs. The after effects of that can result in the reduction in the quality of inputs. If the suppliers of PEL Company are weak then company will force the suppliers to reduce the prices of input and demand for higher quality. If the suppliers are selling the products that have very few substitutes and are differentiated from others, then the suppliers are always in good bargaining position.
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SUBSTITUTE PRODUCTS There is no real substitute substitute for the products of this industry industry.. Refrigerators Refrigerators and deep freezer have there own attributes. Cold stores can be substitutes for these products, but these substitutes are more costly and can’t be easily approached.
The strengths, weaknesses, opportunities and threats of PEL are discussed below: •
Strengths: PEL has the following strengths.
Brand Name
Strong Dealer Network
Quality Products
Best Sales Services
Market leader in WRAC
Number 2 in Refrigerators in Pakistan
Strong Management Team
Distribution of Authority
Research and Development Department
Free Customer Service
Brand Name:
PEL has created a strong brand image in the mind of the customers through higher quality and low prices. The customers of PEL always prefer its home appliances like Window AC, split AC and refrigerators, during the time of purchase. PEL is a popular company in Pakistan and every one knows about the PEL products and its brand name. That’s why PEL is a market leader when it comes to Window AC.
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Strong Dealer Network:
It is also the plus point for PEL that it has developed a strong dealer network in the market. The dealers always try to sell the PEL products to the customers because, the company for its products, gives them a high margin. The management of PEL also provides more incentives to their dealers than their competitors. Dealers are very conscious about the PEL products and always guide the customer in buying the PEL products.
Quality Products:
PEL PEL is also also in a stron strong g posi positio tion n becau because se it prov provid ides es supe superio riorr qual quality ity products to customers. So it gives an edge to company over its competitors. Due to best quality, guarantee of products of PEL is more than its competitors.
Best Sales Services:
PEL PEL prov provide idess the the after after sale sale servi service ce to cust custom omers ers which which incre increas ases es the the custome customers rs satisfa satisfactio ction. n. The bigges biggestt strengt strength h of service servicess departm department ent is that it handles a complaint within 24 hours in any part of the country, that helps in increasing the satisfaction level of customers.
Market leader in WRAC (Window Room Air Conditioner):
It is also strength of PEL that it is a market leader in WRAC. Costumer always gives preference to PEL in window AC market because because of low price, high quality and durabili ty. ty.
Number Two Two in Refrigerators in Pakistan:
After After the the Dawl Dawlanc ancee refrig refrigera erato tors rs,, PEL PEL has has the the secon second d posi positi tion on in the the refrigera refrigerators tors market. market. PEL is gradually gradually coming coming up in refriger refrigerator ator market market and increasing increasing its market share.
Due to improved improved quality, quality, innovative innovative features and
good sales services PEL is becoming the first choice for customers.
Strong Management Team:
It is another plus point that PEL has a strong management. Its employees are competent, efficient, skilled and knowledge. They always cooperate with the 21
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top management in achieving of goals that are assigned to them. Employees are well aware about the company objectives and are committed to the development of company. Distribution of Authority:
Top manage manageme ment nt of PEL PEL deleg delegate atess the the power power to the the subo subord rdin inate atess for achieving the marketing objectives in a specified time period. So every manager has an authority to take decisions to achieve the goals of company. In this way they save the time and react quickly.
Research and Development Department:
PEL has a strong research and development department that is continuously trying to develop new features for the products. R&D department spends huge amount of money for the development of new products.
Free Customer Service:
PEL provides free customer service for one year to its customers. The customers who buy the PEL products become brand loyal due to this facilit y.
•
Weaknesses of PEL:
Like Like othe otherr compan companie iess PEL PEL has has some some weak weakne ness sses es.. If PEL PEL overc overcome omess thes thesee weaknesses then it can become a market leader in home appliances. PEL looses some competitive edge in the following areas:
Financial Problems
Lack of advertisement
System variations
Lack of Product range
Less Utilization of capacity
Financial problems:
Sometimes PEL faces the financial problems because its stocks are so much piled up in the stores that creates problem of cash flow because when the
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stocks are not sold and the production is in process for 24 hours a day then the company faces such problems.
Lack of advertisement:
It is a second major weakness of PEL that it is not a vigorous advertiser. Only recently has PEL invested a considerable amount in advertisement, but when we look at its competitors, PEL still has to do a lot in this sector.
System variations:
It is also the main weakness of PEL that there is a rapid change in polices of selling the products. That creates problems for the selling team to sell the products to the dealers because the top management requires urgent amount of money. Thus the products are sometimes sold on hard cash that reduces the prices of products that creates problems for the management.
Lack of Product Range:
PEL has introduced more products of consumer items but there are more needs needs to develop develop new consum consumer er items items like PEL washing washing Machine Machines, s, Vacuum acuum cleaner and other items.
Less utilization of capacity:
Due to lack of finance a company cannot utilize all its resources resources on its full capacity. It increases the cost of products per unit that decreases the profit margin of each consumer item. Sometimes, the company cannot allocate the resources accor accordi ding ng to the the requi requirem rement entss of the the prod product uctio ion n depa departm rtment ent,, which which later later on becomes a problem for the complete utilization of resources.
•
Opportunities for PEL:
For PEL, there are more opportunities for expansion in business. Following are the opportunities for the PEL.
Exploration of market in Pakistan
Increase in product range
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Export opportunity
Increase in production capacit
Exploration of market in Pakistan:
PEL has the opportunity to explore the market in all over the Pakistan. Even though PEL has introduced its products in many cities of Pakistan but there are so many places that are yet to be exploited.
Increase in Product Range:
PEL can increase its product range that will be more profitable for the company. There are more needs to develop new consumer items like PEL washing Machines, Vacuum Vacuum cleaner and other items.
Export opportunity:
PEL has also the opportunity to export their products in other international countries like UAE, SAUDI ARABIA, and other Arabic and African countries.
Increase in production Line:
Company can also increase its production line at the maximum level that will increase the efficiency of the employees and will also reduce the total cost.
•
Threats for PEL:
Following are the main threats for the PEL:
Strong competition
China’s product introduction in the market
Price war
Slow growth rate in Pakistan
Instability of government
Tax depar tment
World Trade Organization
Strong competition:
There is very strong competition in the home appliance division. Every company adopts different strategies for selling of the products. It reduces the
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profit margin of each company and increases the bargaining power of the buyers who will demand higher quality of products at lower cost.
China’s product:
China’s products are another threat for the Pakistani companies because these products are cheaper than the Pakistani products. China products stress the indigenous companies to lower the quality and prices that will not be profitable in the long run.
Price war:
As there is stiff competition in the home appliance market that will cause the price wa r.
Slow growth rate in Pakistan:
There is also slow growth rate of home appliance in Pakistan that will increase the stocks of the company. Although, this industry is in the growth phase, but the speed of the growth is very slow.
Instability of Government:
The rapid changes in governments will become a threat for the companies beca becaus usee ever every y gove govern rnme ment nt adop adopts ts new new poli polici cies es for for the the indu indust stri ries es.. So it increasesthe uncertainty for the investors who want to invest heavy amounts in their new projects.
Tax department:
Tax department is another major threat for the company that will restrain the business expansion. There is a most complicated tax procedure operating in the country that creates creates hurdle hurdle in the productio production n and smooth smooth functio functionin ning g of different companies in Pakistan.
World trade organization:
World trade organization will give the permission in 2005 to each company of home appliance to export their products after paying less duties or duty free products. That will increase the pressures for the indigenous companies to reduce the prices and 25
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increase the quality. It will increase the competition among the foreign companies and indigenous companies.
The objectives and mission for which the company is established are as following:
•
To carry on the business or businesses of manufacturing, selling, install installing ing,, maintain maintaining ing designi designing ng and dealing dealing in all kinds kinds of electrical equipment.
•
To carry on any business whether manufacturing or otherwise which maybe found convenient to undertake undertake in connection connection with or in addition to any of these objectives mentioned above.
•
To do all such things that are incidental for the attainment of the above objectives or any of them.
•
To produce high qualit y and standard products.
•
To prod produce uce equi equipm pmen entt to be used used in nume numero rous us proj project ectss of national importance.
•
To secure a high share / quota of WAPDA’s demand for power products.
•
To prod produc ucee
skil skille led d
work worker erss and and tech techni nici cian anss
thro throug ugh h its its
apprenticeship schemes and training programs for engineers and technician
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BCG stands for Boston consulting group. It is a portfolio planning method that evaluates the company’s strategic business unit .Using this model an organization classifies each of its separate business units (SBU) according to two factors: Market share relative to competition and growth rate of the industry in which SBU operates
When these factors are divided into high and low categories, a 2 x 2 grid is created as displayed in following figure:
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STAR: Star is a business unit that has large market share in fast growing industry. Such unit requires more investment to generate more cash. If due to more investment it will become successful and become cash cow and it will reach at maturity stage. For star product the strategy is called harvest
Refrigerator of PEL is the product having high market share and high annual
growth rate.
Cash Cow: It is the business unit sometimes known as problem child. It has a large market share share and low annual growth. Each cash cow requires little investment and it generates more cash that can be used for investment purpose in other business units . For cash cow the strategy is called HOLD, you must preserve market
Split air conditioners is the product of PEL having high market share and low
annual growth rate.
Question Mark: It is the business unit that has a low market share and high annual growth. These business unit requires resources to grow market share but if they succeeded succeeded that will become STAR. STAR. For question mark the strategy strate gy is called BUILD, you try to make up the market share.
Washing machine and microwave oven are the products of PEL having low
market share but high annual growth
Dog: Dog is the business unit that has small market share as well as low annual market growth rate. A company normally would be unwise to invest substantial funds in SBUs in this category. Marketing strategies for dogs are intended to maximize any potential profits by minimizing expenditures or to promote a differential advantage to build market shareAnd the company can diverts or liquidate the dog product
Deep freezer is the product of PEL having low market share plus low annual
growth share.
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Question Mark
Star
.
Dog
Cash Cow
Deep freezer of PEL has low market share in low market growth rate. So it regarded as a dog. So company should drop this product.
STRATEGIES STRATEGI ES OF PEL AS MARKET MARK ET CHALLANG CHAL LANGER ER
In competitive environment challengers strategies are very significant to survive in the market. Firms in this category can adopt one of the following strategies:The leader is attacked but it is very risky and high payoff.Company can attack unprogressive and under financed firms, it is less risky and less payoffIt can also attack on small local and regional firms, it is neither risky nor high payoff
Choosing A General attack strategies: Frontal attack: The attacker matches its opponent price, product, advertisement and distribution. The principle of force says that side with greater manpower (resources) will win Flank Attack: The attacker can attack along two dimensions: Segmental. • Geographical • •
Technological leap fogging: Challenger patiently researches and develops the next technology then launches its attack Guerrilla Warfare: It consists of small but continuous attacks to harass and demoralize the opponents.
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Encirclement attack: It involves launching grand offenses on several fronts attack on every feature of opponents products As far as PEL is concerned, it uses technological leap fogging strategy to attack. PEL is launching products having having several innovative features to differentiate differentiate its product from competitors Water dispenser refrigerator is the product having innovative feature of getting cool water without opening refrigerator ♦ 6- Series refrigerator is the product having differential feature of light bulb in freezer PEL Genset Aircon Power Electric generator is the product having following differential features: Performance capable of running following items continuously for 10 hours. One 1.5 ton split One television Six tube lights One computer One fridge Five fans One deep freezer ♦
The main compatitve advantage of PEL is it is pioneer company of PAKISTAN. PEL companies engaged in same business of Home Appliances. However, PEL is also making Power Products like Energy Meters, Transformers, Switch Gears etc. PEL is pioneer of eletrical appliances in Pakistan as it started its activities in 1956. PEL was taken over by Saigol Group of Companies. PEL is awarded SuperBrands Pakistan 2007-08. The Brand Ambessdor of PEL is Hadiqa Kayani which is famous singer of Pakistan.
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Segment marketing offers several benefits over mass marketing. The company can more easily select the best distribution and communication channels and it will also have a clear picture of its competitors.Market segmentation refers to the different areas of the population that companies can aim their products towards. The market segment that PEL has chosen to aim is the quality conscious people.
Segmentation
Geographic
Psychographic
Demographic
Behavioral
Geographic Segmentation: Segmentation: PEL is doing mass market which is not limited to one county but all over
the world.
The main target of PEL is Pakistani market.In Pakistan,PEL is available at every city because its very famous and good product of market.
Demographic Segmentation: PEL divide its market on the basis of following characteristics of population •
Age group:
Earlier PEL used to segments segments its market among people people age ranges from 35----45years.But Now PEL focus between the age group ranges from 25----35 years. •
Gender group:
For the segmentation, the company is recently focusing on young graduate girls and the latest ad of PEL reveals the fact in which famous singer Hadiqa is representing young college girl.
Psychographic Segmentation: 31
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Income group:
PEL is offering its several products to different income groups of society •
In case of Generators, company focuses on elite class.
•
In case of refrigerators, split air conditioners, washing machines, deep freezer.
•
Televisions Company focus on middle class.
•
In case case of Micro Microwa wave ve oven oven,, the the comp compan any y focu focuse sess on elite elite and and middle class.
Behavioral Segmentation: Segmentation: We provide a quality product for our customers. It is purely base on local demands and needs, and we sure that our product will be appreciated by that people who are quality conscious.
It is the segment for which the seller designs particular marketing mix. Target market Strategies: Following are the target market strategies:
Aggregation strategy
Single segment strategy
Multiple segment strategies
Aggregation strategies: In this strategy total market is treated as a single segment and single market mix is developed to reach the customers in the entire Market.The company offers a single marketing mix.
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Position is the way a firm’s product, brand or organization is viewed relative to the competition by current and prospective customer. Positioning is a firm’s 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 r efrigerators the company is challenger of DAWLANCE. DAWLANCE. In case of air conditioners company is challenger c hallenger for WA WAVES and MITSUBISHI. In case of televisions company is challenger of LG and some other companies.
PEL doing the mass marketing and using only one marketing mix for the complete Pakistani market. :
Product is “heart” Price
Promotion
Place (Distribution) 33
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Product mix is a set of all products that are offered for sale by a company. Product mix consists of both breadth and depth.
BREADTH: Breadth is a measured by the total number of product line offered by b y a company. company.
DEPTH: Depth is the variety of sizes, colors and models offered within each product line
PORTFOLIO OF PEL PEL divides its portfolio in two divisions •
Appliances division.
•
Power division.
PORTFOLIO PORTFOLIO OF APPLIANCES APPLIANCES DIVISION
Following are the products of appliances division:
Air conditioners
Refrigerator
Television
Microwave Oven
Washing machine
Generators
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BREAD BR EADTH TH
DEPTH DE PTH
REFRIGERATORS: REFRIGE RATORS:
MODEL
1. PREMIER SERIES:
PC 20185
15Cft
PC 20165
14Cft
PC 2017
16Cft
PC 2500
10Cft
PC 2300
8Cft
2. CRYSTAL SERIES :
PC 2012
10Cft
PC 2010
8Cft
PC 2009
7Cft
3. 6-SERIES IES:
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SIZE
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PC 6400
12Cft
PC 6300
11Cft
PC 6200
10Cft
4. MINI MINI-S -SER ERIE IES: S:
PMR 110-S PMR 11
PMR-111 (DS)
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MICROWAVES:
MODEL
SIZE
PMO 1052
2CF
TG (Silver)
PMO 23
1.5CF
Manual (Silver)
PMO 20
1CF
Touch (White)
PMO 23
2CF
TGS (Silver)
WASHING MACHINES: :
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Magic Clean
10KV
(PWM-7700)
Magic Clean
5KV PWM 0510
AIR CONDITIONERS:
MODEL
Silver Line (QB)
SIZE 1,1.5 & 2ton
High Vita
1.1.5
(HV7)
& 2T 2Ton on
WAC
1.5Ton
(19K)
Floor Standing Air Conditioners
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WATER DISPENSORS:
MODEL
PLS 691 SL
SIZE
360x390x1035
(Silver & White)
PLS 681 SL
385x395x1025
(Silver)
PORTFOLIO OF POWER DIVISION These are following products of power division.
BREADTH
DEPTH 39
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TRANSFORMER :
25 KVA 50 KVA
100 KVA 1250 KVA
ENERY METER:
VOLTAGE
220-240V
CURRENT (NOMINAL)
SWITCH GEARS :
10, 20,40A
CURRENT (MAXIMUM)
40,
60,
80,100A
GENERATOR:
Model No. PG5040D
Capacity 5.2KVA
FEATURES OF PRODUCT LINE
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
Refrigerators: The manufacturing of refrigerators started in 1986-87 in technical collaboration with M/s IAR-SILTAL of Italy. Like the air conditioner, PEL refrigerators are also in great demand. Today, PEL Crystal has 38% of total market share. Its cooling performance is 40
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tested and approved by Danfoss, Danfoss, Germany and its manufacturing manufacturing facility is ISO 9001 certified.
Deep freezers: PEL deep freezers were introduced in 1987 in technical collaboration with M/s Ariston of Italy. Due to several reasons the production of deep freezers was stopped but now company is restarting its production again.
Microwave Oven: PEL PEL the the trus trustfu tfull compa company ny name name in home home appl applian iance cess all over over the the coun country try,, now now introd introduce uced d all new models of "PEL "PEL Power Power Wave" ave" Microw Microwave ave Ovens Ovens.. Now PEL customers can have four models of PEL Power Wave in which they can enjoy the grilling feature as well. PEL Microwave Ovens are available in different sizes, inner cavities (steel & painted) and features.
Washing Washing Machine: PEL introduced washing machine in 2006 first time and it got appreciative response from customers, Now it is being produced by the company on large scale and due to its improved quality its sales volume is increasing.
Generators: Generator is another product of PEL that is used to generate electricity. It is very famous product in elite class. It has several features as self start, no noise, digital display panel, dual exhaust system (environment friendly), special air cooling system, continuous 10 hours running at 3 KV.
PRODUCT LIFE CYCLE
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Sales and Profits
Sales
Profits Time Product Development
Introduction
Growth
Maturity
Decline
Losses/ Investments
A product life cycle consists of aggregate demand over an expected period of time for all brand comprising a generic product category. A life cycle can be foraged by b y plotting aggregate sales volume for a product category over time usually years
Stages of product life cycle:
Management must be able to recognize what part of life cycle its product is in at any given time. The completive environment and marketing strategies that should be used ordinarily depends on the particular life cycle stage There are four stages of product life cycle and explanation of each is given below
Introduction:
This This stag stagee some some times times know known n as pion pioneer eerin ing g stag stagee in whic which h a prod produc uctt is launched into the market in a full scale marketing program it has gone through product development development,, including idea generation, generation, idea screening, prototype prototype and market tests. For new products normally there is very little direct competition.
GENERATORS are on introduction stage.
Growth:
Growth stage also called market acceptance stage. In this stage sales volume and profits rises and competitors enter the market. At the end of growth stage , profit starts to decline. 42
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Water Dispensers are ar e on growth stage.
Maturity:
During Maturity stage, sales continuous to increase but at decreasing rate. When sales level off, profits of both producer and middlemen decline. The primary reason is intense price competition
Refrigerators of PEL on the maturity stage.
Decline:
This stage is inevitable. In this stage profit and sales volume of the product both decrease rapidly and finally its life comes to an end.
Longest life cycle:
As far far as PEL PEL is conc concer erne ned, d, the the long longes estt prod produc uctt life life cycle cycle is of cryst crystal al class classic icss refrigerators having three years duration.
Shortest life cycle:
Life cycle of crystal classic 2009 refrigerator is the shortest among the portfolios of PEL appliances.
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Price is a strong element in the marketing mix. It has a direct impact on the customer, business. To To the consumer, the price is a major indicator of the quality of good and an important factor in making decision about it’s purchase In deciding the price the business management must consider the kind of competition in the market for the good, the elasticity of demand for product, its cost of production etc As far as PEL organization is concerned, sets its prices of product line regarding the competition in the market. Prices of product line varies from product to product, some of its product’s prices are set on quality base PEL organization is very well aware of the limited buying power of the average population of Pakistan so to uplifting their living standard & trying to meet their expectations regarding necessities of home appliances. So company tries to focus on this portion of society, while setting the prices.
Internal costs include in prices:
12-
Raw Material Labor Charges
3-
Factory Overheads
4-
Advertisement Cost
5-
Governmental Duty
6-
Excise Duty
7-
Company's Profit Margin
PEL PRICE LIST Model
Prices
(Rs) REFRIGERATOR SLIM LINE 2009-VCM
15500
2010-VCM
16500 44
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2012-VCM
18000
2009-STAR PLUS
16000
2010-STAR PLUS
17000
2300-STAR PLUS
17500
2500-STAR PLUS
18500
2300-PREMIER
17900
2500-PREMIER
18900
WHITE BODY 20140--Crystal Classic
20500
20145-Crystal Classic
21000
20165-Crystal Classic
22500
2017-Crystal Classic
25500
20140-Premier
21000
20145-Premier
21300
20165-Premier
23000
2017-Premier
25000
6 SERIES 6200
20000
6300
20500
6400
21000
MICROWAVE MICROWAVE OVEN PMO-20 Manual
4200
PMO-20 Touch
4700
PMO-23 M
4900
PMO-23 TG
5800
PMO-23 TGS
6300 45
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PMO-36 TG
7000
PM0-36TGS
7400
PM0-52
7400
WASHING MACHINE PWM-508
5500
PWM-510
5700
PWM-7500
7500
SPLIT AIR CONDITIONER 1 TON
19400
1.5 TON
25900
2 TON
36700
GENERATORS PG 5040-D
74000
Promotion is an essential for increasing the demand of the product. Promotion includes advertising, personal selling and sales promotion. The seller informs the customers through news papers, television and posters about the product available in the market.
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PRMOTIONAL STRATEGIES OF PEL: PUSH STRATEGY:
It is promotion program primarily aimed at dealers in which company focuses to sell the product. In past PEL used this strategy to increase their sales volume by giving more and more incentive to the dealers
PULL STRATEGY:
It is another promotional program primarily aimed at final consumer. Now a days, PEL is using PULL strategy by improving product quality For example: PEL is using the imported DANFOSS compressors in i ts appliances.
METHODS OF PROMOTION: An organization adopts one or more of the following methods which are very common now a day in uplifting its performance:
Advertising
Personal selling
Sales promotion
Public relations
PRMOTONAL BUDGET BUDGE T:
•
PEL spends 3% of sales on promotion.
ADVERTISING:
Advertising is non personal communication paid for by a clearly identified sponsor promoting ideas, organizations or products. The most familiar outlets for ads are the broadcast and print media. :
The company highly believed in advertising. The company is expanding a lot of money on different advertising media which are: -
Television
-
Hording
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Neon Sign
-
Stickers
-
Banners
-
Point Of Sale
-
Calendars
-
Wall
-
Clocks
-
Brochures
-
Key Chain
-
Billboards
Organizing advertisement: advertisement:
A firm can manage its advertising program through following ways:
By developing an internal advertising department
By using an outside agency
By using a combination of above both
ADVERTISING THROUGH PRINT MEDIA:
is
PEL
conducting
adve advert rtis isin ing g
thro throug ugh h
adve advert rtis isin ing g
depa departm rtmen ent. t.
per perfo form rmed ed hot
by
its inte intern rnal al It
is
publ publis ishi hing ng ads ads in
selli ellin ng
magazi azines. es.
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ADVERTISING THROUGH ELECTRONIC MEDIA:
PEL is conducting its advertising campaigns through advertisement several outside
agencies. PEL sister concern “Red Communication” is the main advertising agency used for the purpose of making ads according to changing trends of market and considering ethical issues. Latest ad of PEL is designed by this agency by focusing on a college girl and its requirements from technology and PEL is providing the appliances which is fulfilling theses requirement.
Advertising duration:
For refrigerators and air conditioners:
from March to June
For oven and washing machine:
from November to March
.
SALES PROMOTION: Sales Sales
prom promot otio ions ns
spon sponso sorr-fo foun unde ded, d,
dema demand nd-s -stim timul ulati ation on
activ activity ity
desi design gned ed
supplement advertising and facilitate personal selling. PEL uses out door activities:
Exhibitions
Road shows
Promotion schemes etc.
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PUBLIC
RELATIONS: Public relations encompass an wide verity of communication effort to contribute to generally favorable attitude att itude and opinions towards an organizations and its products. PEL also engaged in public relations activities just to create a soft image in the hearts people.
SOCIETAL MARKETING: Firm that sufficiently extents the breadth and commitment dimensions of its marketing goals to fulfill its social responsibility are practicing what has become known as the societal marketing. In these days PEL is giving donations for rehabilitation of earthquake affected areas. The company company has donated donated several several necessi necessities ties for the help help of earthqu earthquake ake affect affected ed people. PEL uses to collect zakat funds on the behalf of several charity institution as Shokat Khanam hospital Installment Facility:
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PEL gives installment faculty to all government employees, all of the account holders of Banks Alflah Limited and bank of Punjab
This element of marketing is concerned with all those activities with are related to move the product or service from seller to buyer. PEL uses place strategy which ensures that product is available to consumer at the right time when they are needed (time utility) At the place where they are demanded (place utility) in the form or shape they are required (form utility) and the ownership of goods is transferred with less financial risk (possession utility) A product product reaches customer customer through through a channel channel of distributio distribution. n. This channel channel might be short or much complex involving many kinds of middlemen but PEL uses short channel of distribution to minimize the expenses and ensure timely supply of goods to end user
DISTRIBUTION CRITERIA:
PEL has the head office in Lahore and it also has 22 sub-offices in different cities of Paki Pakist stan an and and they they have have diff differ eren entt sales sales mana manage gerr in each each city city. Every Every mana manage gerr is responsible to maintain strict control over the market they are assigned. The company estimates its sales volume by the past sales made by dealers and expected future demand of authorized dealers The volume of productions which is to be produced is also calculated by the same methods that is the sales target given to the dealers for the year The Company imports raw material for their products. They believe that the imported raw material is of superior quality. They are importing raw material from different countries which are: -Germany
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-Japan
The parts which are imported:
1-
Compressor
2-
Copper Pipe
3-
Insulation Chemicals
4-
Crystal sheet
5-
Thermostat
6-
Monogram
7
Bulb
The parts which are locally manufactured:
1-
Gas Kit
2-
Handle
3-
Knobs
4-
Wheel
5-
Wracks etc.
DEALERSHIP PROCEDURE: PEL bases on dealers for its sales and ultimate production. That is why they have a very strict system of giving dealership and a very efficient procedure of allotting target to each and every dealer. The company makes a contract with every dealer for the
period of one or more years depends upon the relation with company and efforts put by the dealers in specific territories. Follow Following ing are the consid considera eratio tions ns which which compan company y looks looks for while while allot allottin ting g dealership.
Considerations for allotment of dealership: These points are specially considered while allotting dealership:
FINANCIAL BACKGROUNDS/RESOURCE:
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Financial background is the main point of consideration for allotting dealership dealership PEL does does not allow allow credit facility facility to its dealers dealers they have to pay advance payment to get delivery of goods. g oods.
LOCATION OF OUTLET OUTL ET::
Another Another major major consid considera erati tion on in gettin getting g the dealer dealershi ship p is locat location ion of outlets. The selling point should in the existing market place and it should be easily accessible by customers
EXPERIENCE AND KNOWLEDGE OF DEALER:
The The deal dealer er shoul should d have have a fair fair asse assess ssme ment nt and and knowl knowled edge ge abou aboutt the the par parti ticu cula larr terr territ itor ory y. He shoul should d be cons consci cious ous of his his good good point pointss in persuading the customers to purchase the goods
DEALERS ATTITUDE:
The attitude of the dealer should be polite to the customers so that he may convince them.
GOOD WILL:
Company prefers the dealers having well repute in the market and dealers are very good in the eyes of customers
In this modern word, it is very hard to survive in the market due to swear competition between the companies. Every existing product in the market has its substitute or similar product.
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“Competitors are the companies that satisfy the same customer needs and wants.” To explain the competition we can classify the competitors in two ways which are given below:
Direct competitors
Indirect competitors
DIRECT COMPETITORS
The direct competitors of PEL are Dawlance, Waves, Waves, LG, and Haier etc. The Dawlance is market leader in the refrigerator refrigerator and PEL is still on second number. number. But in window window room air conditioner (WRAC) the PEL is market leader
REFRIGERATORS:
Total market sale of refrigerator in 2006 is 2924905 units. Last year sale was 2091779 units. These figures show 30% market growth. But this is not the exact figure of growth rate it varies from year to year. DAWLANCE DAWLANCE is a market leader lea der in refrigerator with 46% share. PEL has 38% market share
Waves has 10% market share. 6% shares are others
WINDOW AIR CONDITIONERS:
PEL PEL is a mark market et lead leader er with with a marke arkett shar sharee of abou aboutt 60% 60% in loca locall manufacturing industry. industry. And overall has 35% market shares for f or this product. LG has about 32% market share and stands on number two.And rest of the manufacturers have 23% marker share.
SPLIT AIR CONDITIONERS:
The main competitor of PEL in Split air conditioner is DAWLANCE. Other competitors are MITSUBISHI and HAIER
MICROWAVE OVEN:
In case of Microwave Mic rowave Oven DAWLANCE DAWLANCE is the main competitor of PEL. But the company claims to be the leader in this product line.
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INDIRECT COMPETITORS The indirect competitors for PEL in this industry are Samsung, Orient, Mitsubishi, Sabro, Nobel and others Chinese brands available in the market. The PEL has no big threat from all these companies. But the Sabro pioneer for introducing the split air conditioner in Pakistan.
COMPETITION STRATEGIES COMPETITIVE POSITION: According to AURTHER D. LITTLE a company will occupy one of the following competitive position strategies:
Dominants:
At this position a firm controls the behavior of other competitor and has a wide choice of strategic option.
Strong:
At this, a firm can take independent action without endangering its long-term position and can maintain its long-term position regardless of the competitor’s action.
Favorable:
This firm has an exploitable strength to improve it position.
Tenable:
This This firm firm is perfo performi rming ng at a satis satisfac facto tory ry leve levell to warra warrant nt cont contin inui uing ng in business.
Weak:
At this position, a firm has unsatisfactory performance and an opportunity to improvement.
Non-viable:
At this position, position, a firm has unsatisfacto unsatisfactory ry performance performance with no opportunity opportunity to improvement.
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PEL occupies the strong position in the market because, it has very good market share of 38%. PEL is the market CHALLANGER.
COMPERISION COMPERI SION BETWEEN DAWLANCE DAWLANCE AND PEL
DAWLANCE
PEL
INNOVATION: The innovation process of
The innovation process of the PEL is high but
Dawlance is very high and
not like the Dawlance their position in the
Quick.
Market.is good.
MARKET LEADER: PEL is also the market leader Dawlence is the market leader
but it comes after the Dawlance and doing
and and still still main maintai tains ns its firs firstt
a very very good good job job in the the mark market. et.
position in the market
PRODUCT RANGE: Product range of the PEL is nearly 10 to Dawlance have a very good product range all Product range is nearly 20to24.
15 which is also showing a good ratio of the products of the PEL have also very good position in the market
All the products of the Dawlance are doing very good job in the market
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In 2006-07, your Company has maintained the growth patt ern of last 5 years. Gross sales at Rs. 13.07 billion and Profit after tax of Rs. 582 million show an increase of 18.42% and 31.67% respectively. respectively. Summary of key financial financia l results is given below:
Financial Results (Rs. in Million)
200607
200506
13,077
11,042
Profit before tax
707
516
Profit after tax
582
442
6.87
5.04
6.65
4.82
Gross Sales
Earnings per share (Basic) Rupees Earnings per share (Diluted) Rupees Graph - Gross Sales
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PEL was 16th Company in Pakistan which got ISO 9002 Certif ication in 1997, since
then PEL Management is applying this International International Standard Practices for Effectively Managing Quality of Products and Services that Company Offers. The International Standard Practices in PEL have been Upgraded Upgraded as per per the Revised ISO 9001 Standards and its Scope of Application is expanding ever since since and Top Top Management is Committed to make PEL a Total Quality Management (TQM) Company. In this Company Quality is the Subject of Management at all Levels. We focus on continuous improvement in our Systems thus establishing Good Management Practices that ensure Product and Services Standards, we are committed to and making
continuous efforts in developing and strengthening our internal and external customers and suppliers, employees training and development and their participation are the KEY forces which are Increasing the Organization's Capabilities thus making it more competitive and fast growing Company.
And thus going for State-of-the-art production facility reflects management Vision and commitment for Quality. Having around Fifty years of Manufacturing experience with with a coop coopera erativ tivee and and dedi dedicat cated ed emplo employe yees es and and now now coup couple led d with with efficiency enable manage managemen mentt to take take Preven Preventiv tivee monitoring processes processes and Data Analysis Analysis enable Actions before things really go wrong. Elimination of wasteful activities, practices, processes, norms and behavior are the top management's priorities that need to be mana manage ged d so that that the the philo philoso soph phy y of ZERO can be take taken n on boar board. d. ZERO DEFECT DEFECT can 58
Dominator Group (D)
Pak Electron Limited
Change your Life
Benchmarking with National and International repute Organizations will be in our road to manu manufac factu turin ring g exce excelle llenc ncee to prov provee PEL PEL as a World Class Class Manufact Manufacture urerr .
Future Outlook:
The economy is expected to perform well in the next year however it is exposed deficit, lower lower export exports, s, increas increased ed to cert certai ain n chal challe lenge ngess like like curr curren entt acco account unt deficit, compet competitio ition n in the intern internatio ational nal market market and lack of techno technolog logical ical advance advancemen mentt as compared to competing nations. It is still hoped that national economy will continue to grow and rising prosperity will bring expanding opportunities for the Engineering Industry
and
for
your
Company.
The company will continue to focus on cost effectiveness, quality standards and best after sales services to our valued customers. We expect to go farther, faster and higher than we have ever been in serving the interests of our customers, shareholders and employees.
59
Dominator Group (D)
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