Introduction and History of Pak Electron Limited

Pak Electron Limited ( PEL ) is one of the best maker company of electrical goods in Pakistan. It was established in the twelvemonth of 1956 in proficient coaction with M/s AEG of Germany. In 1978 company was taken over by Saigol Group of Companies. The company has ever been take parting towards the promotion and development of the technology section in Pakistan by establishing a batch of choice electrical equipments and place contraptions and by bring forthing batch of applied scientists skilled workers and technicians through its preparation programmes.

PEL has continuously presenting new merchandises to its scope. Due to this PEL has gained good mark in the gross revenues section. At the occasion the company was merely fabricating transforms and exchange cogwheels. With the Saigol in direction, PEL begun spread outing its merchandise scope by come ining into air conditioner fabrication.

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In the twelvemonth on 1981, PEL launched window Air Conditioner with the proficient coaction

of General Corporation of Japan.

In 1986-87 the company introduced icebox in proficient coaction with M/S Airston of Italy


In 2006, company had started fabrication of Split Air Conditioner as the client pick has shifted from window type to Split AC.

The company divided in two class

Appliances Division

Power Division

Statement Of The Problem

During the last twosome of old ages tendencies in Pakistan utilizing place contraptions has changed due to rocket alteration in engineering and new entryway of trade names.PEL besides introduced its Split Air Conditioner in the market. PEL electronic is confronting tough clip in the Split Air Conditioner their trade name image is non strong in this class. Other rival has good trade name name and trade name image and making good concern like Mitsubishi, Hire, LG etc.

1.2 Vision

‘To excel in supplying technology goods and services through uninterrupted

betterment ”


To supply quality merchandises & A ; services to complete satisfaction of our clients and maximise returns for all stakeholders through optimum usage of resources.

To concentrate on personal development of our employees to run into future challenges

To advance good administration, corporate values and a safe working environment with a strong sense of societal duty



The strengths, failing, chances and menaces of PEL are mentioned bellow:


Brand Name

PEL has developed a good trade name image in its customeraa‚¬a„?s head Sue to high quality and low monetary values. The client of PEL ever prefer its place contraptions like icebox, micro moving ridges Owen H2O ice chest etc. PEL is really popular company in Pakistan and every one knows about PEL merchandises and its trade name name. This is the ground that PEL is a market leader when it comes to Window AC

Good Dealer Network

Its another plus point for PEL that it has created a good trader web in the marker.

These trader ever concentrate to sell PEL merchandises, gives them a good net income border. PEL direction besides gives good inducement to its trader if we compare it to its rivals. Thats why they are so witting about the PEL merchandises scope and ever convert the client to purchase PEL merchandises.

Good Gross saless Servicess:

PEL provides the good after gross revenues service to its client which enhance the client satisfaction. The chief strength of service section is that it handles client ailment with in 24 hours in any portion of the Pakistan that give border in increasing the client satisfaction.

Quality Merchandises:

PEL has besides a strong place in supplying superior quality merchandises to its client. So its spring a plus point over its rivals. Due to best quality warrant of its merchandise after sale in more than its rivals

Market Leader inWRAC ( Window Room Air Conditioner )

Its besides strength of PEL that it has become market leader in window room air conditioner. Customer ever gives precedence to PEL in window Acs so in re-introducing its split ac it could acquire advantage of its stigmatization.

Strong direction Team:

Having a strong direction squad is besides PEL ‘s another strength.

Its employees are skilled, competent efficient and cognition. They ever corporate with the hierarchy degree direction in accomplishing of mark which are assigned to them.

Distribution of Authority:

Top degree direction of PEL giving authorization to its subsidiaries to for accomplishing the market objectives in a given clip period. So each director has authorization to take speedy determination to aceive the aims in this manner they manage their undertaking in good clip and react rapidly.

Research and Development Department.

PEL has a good R & A ; D section which is continuously seeking to develop new characteristics in the merchandises. Which introduce new engineering in its merchandises minimise the cost and clip. R & A ; D section spends immense amount of money for the development of new merchandises.

Free Customer Services:

PEL provides free client service for one twelvemonth to its client after purchasing any merchandise. Due to this client become trade name loyal.

Weakness of PEL:

Like others companies PEL has few failings. If PEL overcomes these failings so I could go a market leader and acquire a immense market portion in place contraptions.

Fiscal Problems

sometimes PEL faces the fiscal jobs due to its stocks because its stocks are excessively much piled up in the shops room that become the cause of deficit of hard currency flow. Because when stocks in shops and production in procedure for all the clip 24 hours a twenty-four hours so company faces such jobs

Lack of Ad:

Its a 2nd major failing of PEL that it is non a large advertizer. But from the last twosome of twelvemonth it spend a considerable sum in the sector of advertizement but non up to the grade. Because now a even a little companies spend a immense sum in the advertizement sector. Then so would be able to accomplish there aims. So PEL has to put in this field as its rival making and acquiring advantage.

System fluctuations:

its besides chief failing of the PEL that there is rocket alteration in the constabularies of selling the merchandises

That creates jobs for the gross revenues section to sell the merchandises to the traders and bureaus because the demand of the top degree direction. They require pressing sum of money for different operations. Due to this gross revenues section has to sale their merchandise on difficult hard currency which cut down the monetary value of the merchandise which create the job for the direction.

Lack of Product Range:

Although PEL has introduced more merchandises for its client. But its non plenty if we have look on its rival like Haire, LG, Dawlance etc. because when client go trade names loyal so he like to hold all place contraptions of same trade names so PEL has to present new merchandises every bit good for the sale of its current merchandises.

Working Under Capacity:

Because PEL faces fiscal job that is why could non use its all resources on its full capacity. Due to this the cost of each unit addition and that ‘s why net income border besides autumn and company suffer. Sometimes, the company cant use its resources harmonizing the demand of the production section. Later on which become the job for the full use of resources.

Opportunities for Pixel:

There are more chances for the PEL to hike up its concern Following are some of them

Exploration of Market in Pakistan:

PEL has good chance to heighten its concern all over the Pakistan. Although PEL has launched its merchandises in many metropoliss of the Pakistan. But there are many metropolis on towns are yet to be explored. Because due to this company can acquire advantage and increase its market portion because other rival besides has non captured these metropoliss and towns and PEL can establish its Split AC in this country and could acquire advantage due to geographic expedition of market in Pakistan.

Addition in Product Range:

PEL can increase its Product scope which over all addition the PEL net income. Because its demand to develop new place contraption points for the PEL clients. Those client who are trade name loyal they want all scope of merchandise to carry through their demand PEL has to increae its merchandise scope due to this client will be retained by the PEL and client will non switch to other trade names. So for the keeping of the client PEL should concentrate on increasing its merchandises scope.

Export Opportunity:

PEL has besides chance to export its Split air Conditioner to other states like UAE Saudi Arabia and other Arabic and African states. Because its has cheaper labour rate in Pakistan and could present its merchandise in foreign market with good quality and at lower monetary value.

Addition in Production Line:

Pixel can besides increase its production line at the high degree. Due to this PEL can increase the efficiency if its employees and will besides cut down the overall cost of the merchandise. Due to this PEL can offer its merchandise at lower monetary value and ca: n increase its market portion.

Menaces for PEL

these are the major menaces for the PEL:

Strong Competition

China ‘s Brand

Price War

Slow Growth rate in Pakistan

Political unstable

Porters Five Forces

As market research shows that PEL has lost its competitory border when its comes to another trade name. Why this happen porters five forces.

The hazard of new entry by possible rival

Competition in established houses

The bargaining power of the purchaser

The menace of new replacement

Direct Rival:

The direct rival of PEL are dawlance moving ridges LG Haier Orient mitsubishi etc.

as the mitsubishi is market leader in the market of Pakistan

Window AC:

PEL is a market leader in Pakistan portion about 60 % of its local fabrication industry. And it has overall 35 % market portions for this merchandise.

LG has 32 % market portion and stand 2nd.

And all other remainder of makers have 23 % market portion.

Indirect rivals:

The indirect rivals for PEL are Mitsubishi Haier sabro Orient Samsung Nobel and besides some others Chines trade names. But PEL has some menace from the Mitsubishi Orient Haier because they are doing really good quality Split Ac in Pakistan

Hazard of New Entrance:

There is a high hazard of new entryway in this industry, because this is a large industry and has a batch of potency for the foreign companies. But in order to do a good trade name trueness and to be in concern PEL has to make more investing.

Dickering Power of the Buyers:

Company ‘s purchasers are those people who buy and consume its merchandises. If there is a batch scope of trade names in the market so it will consequence the bargaining power of the purchasers. As there are a batch of trade names in the market so the bargaining power of the purchasers is high.

The Bargaining Power of the Suppliers:

Suppliers dickering powers is besides a hazard. But here in Pakistan market is so huge and there is a batch of providers in the market for the production line and can supply JIT and cheaper in monetary value and good in quality. So there is no a such high hazard of providers dickering powers.

Substitute Merchandises:

As Split AC is in declined phase of PEL and there is others brands making good concern so handiness of replacement is menace but with the heightening the quality and at low monetary value PEL could over come at that place issues

Objective Puting

Following are the chief aim of the PEL for its Split AC merchandise.

To increase the Brand Image of PEL in Split AC merchandise.

To supply the good quality of merchandise and addition market portion at least half of its chief rival by the terminal of following season.

Minimize the cost of Split AC to supply it at lower cost as its possible to acquire rivals edge.

1.4 Strategy Development:

After analyzing the market I suggest to utilize the competitory scheme to turn the concern of PEL in Pakistan.

Competitive Scheme

Cost Leadership:

as the aims of the PEL is to minimise the cost and increase the market portion. So PEL should follow this scheme to minimise its cost because the market is excessively huge and the behavior of the clients to look for the cost of the merchandise and there are a batch of rivals in the market. So to go a innovator in the Pakistan PEL has to minimise the cost by this PEL will increase its sale and will increase the market portion by the transition of clip because this scheme is associated with the big figure of graduated table of concern and the market for the split Ac is excessively large and PEL has a possible to make concern on this graduated table because its already market leader in the Window Ac.

Ansoff ‘s Matrix:

The Ansoff matrix is another tool to concern scheme to growing its concern.

Market Penetration:

PEL should concentrate on market incursion because Split AC is the new tendencies in the Pakistan its cheaper in ingestion of electricity and has a good demand. An other ground is that there is no demand to travel in the other market because Pakistani market has a good potency because usually hot season remains more than 6 month and there is a good demand for Split AC.

To win in this market PEL has to concentrate on minimising the cost by this it will pull the client and it besides has to better its quality because there are a batch of other trade names offering a good quality split Ac in the market to acquire advantage on them it besides has to concentrate on the quality.

1.5 Marketing Mix


The Product of PEL is Split Air Conditioner. PEL has to look on its split Ac while comparing it with other rival because its demand a good quality in its compressor and Inner of its should be fashionable and as its offered in market with different colorss. And the filter of AC should be long life and of good quality. The distant control of PEL split AC should be in long scope and there should be display on its Inner of the Split AC.

Monetary value:

monetary value is a major component in the selling mix it impacts on the client straightly.

And every bit far as concerned with the monetary value PEL direction sets the monetary value after set abouting the monetary value of its rival. As the major population of Pakistan upfilling their criterion and endeavoring to run into their demand. So PEL direction profoundly concentrate on part of society during puting the monetary value.


publicity is an indispensable portion of marketing mix. Its includes advertisement personal merchandising and gross revenues publicity every bit good.

Push Scheme:

PELL should follow this streatgy to increase their gross revenues volume by giving some inducement programs to its traders.

Methods of Promotion:

Following are the methods which PEL will follow in publicity of its Split AC.


Personal Gross saless

Gross saless Promotion

Public Relation


there are batch of channels which could be used.

By Print Media:

PEL should utilize the Print media as others rival are utilizing this channel because now a yearss its a really goof channel for advertizement. By printing ads in local merchandising magzines.

By Electronic Media:

PEL should utilize electronic media every bit good for the publicity of its split AC. Its should convey in notice the different ethical issues and current tendencies in the place contraption merchandises.

Gross saless Promotion:

PEL should besides concentrate on the gross revenues publicity by patron happening like its trade names embassador is Hadiqa Kiyani who is a celebrated dad vocalist, it should besides used different out door activities



Road Shows

Promotions Scheme

Public Relations:

PEL should besides look at the public relation with the people to acquire soft corner in their Black Marias, because public dealingss will heighten the good trade name image of the company.

Topographic point:

this is besides a basic component of marketing mix. PEL should utilize the arrangement scheme in apportioning the right topographic point where the demand for the merchandise would be high. It concerned with the activities which are connected to the move of merchandise from marketer to purchaser, merchandise range to client by assorted channels of distribution. PEL should extinguish and seek to minimise the complexness of affecting different channels and utilize such arrangement by which client can easy entree to the merchandise.

1.6Action & A ; Execution:

for the advertizement of PEL Split AC PEL will take different action to implement its all planed channels.

PEL spent 50million Sri lanka rupees on the publicity of its merchandise one-year. Out of which about 30 million spent on Air Conditioner. PEL should pass half of which on the advertizement of the MAC series.

80 % of its entire publicity budget PKR 12016000 should be fix for the advertizement.

Budgeting for the Electronic Media

Channelss for Ad



1285000 ( 10 yearss Package )

Geo News Television

1474000 ( 18 yearss Package )

Sun multimedia Cable Network.

1085000 ( 6months bundle )

NBC Cable

1075000 ( 6month bundle )

World call web

1080000 ( 6month bundle )



Allocation Responsibility to Staff.

PEL has to utilize the companies ain staff and besides has to take services of the selling companies

like for the advertizement of PEL split AC it use some electronic media for these channels needs professional ads developer.

Equally far as concerned some print media channels PEL has to utilize its ain staff to develop the commercials in the print media and pay to them for the selling.

Scheduling and Planed Marketing Activities

Selling activities




Ad by electronic media

March to September

GEO and others channels


1.7Monitoring and command


For each aims there should be a monitoring procedure because its really indispensable portion of the direction. There should be a monitoring procedure for the PEL company to seasonably supervise all on-going activities like as its an aim of the PEL to supply the low cost Split AC for this PEL has to set up such a mechanism that it should supervise the cost of the merchandise.

An other aim of the PEL is to supply a good quality Split AC for this their should be a TQM procedure which has to implement and supervise every bit good.


Control is following to the monitoring when PEL direction happen any cringles in the on-going procedure so it has to command that issue. Sometime hurdlings comes in acquiring aims.

There should be cheques in the each section instead than at the terminal of the procedure it safe times and besides helps in minimising the cost of merchandise and besides helps in quality control.

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