Professional Documents
Culture Documents
PAKISTAN ELEKTRON
LTD
Submitted To
Mr. Rashid Saeed
Submitted by
Ayesha Ashraf
BBA-44
[INTERNSHIP REPORT]
This is the internship report of PEL , prepared during the internship from 11 July 2013 to 23 August
2013 for the COMSATS institute of information technology.
ACKNOWLEDGEMENT
In the name of ALLAH, the most Merciful and Beneficent
I think honestly reflects on who I am, how I got here, what I think I might do well, and
so forth, I discover a debt to others that has shaped my life. The work of some
unknown people makes our lives easier every day. I believe its appropriate to
acknowledge all of these unknown persons; but it also necessary to acknowledge
those people I know have directly shaped my life and my work.
Regards
ADEEL AHMAD
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Table Of Contacts
Contents
ACKNOWLEDGEMENT .................................................................................................................... 2
TABLE OF CONTACTS ...................................................................................................................... 3
EXECUTIVE SUMMARY ................................................................................................................... 6
MISSION STATEMENT ..................................................................................................................... 7
VISION STATEMENT ........................................................................................................................ 7
OBJECTIVES ........................................................................................................................................ 7
HISTORY .............................................................................................................................................. 7
INTRODUCTION ................................................................................................................................ 9
POWER DIVISION: .................................................................................................................................9
POWER PRODUCTS:.........................................................................................................................9
APPLIANCES PRODUCTS: ...............................................................................................................9
DEPARTMENTS .............................................................................................................................. 11
MARKETING DEPARTMENT .............................................................................................................. 12
FINANCE DEPARTMENT .................................................................................................................... 13
Accounts ........................................................................................................................................... 13
Credit control .................................................................................................................................... 13
PRODUCTION DEPARTMENT ........................................................................................................... 13
HUMAN RESOURCES DEPARTMENT .............................................................................................. 13
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FUNCTIONS: ................................................................................................................................... 14
RESEARCH AND DEVELOPMENT DEPARTMENT .......................................................................... 14
OPPORTUNITIES: .......................................................................................................................... 24
THREATS ............................................................................................................................................. 24
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OCCUPATION: ................................................................................................................................ 27
INCOME: .......................................................................................................................................... 27
EDUCATION: ................................................................................................................................... 28
CONCLUSION ................................................................................................................................... 37
BIBLIOGRAPHY: ............................................................................................................................. 38
Internet sources:................................................................................................................................. 38
person soure ....................................................................................................................................... 38
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EXECUTIVE SUMMARY
I have worked as an intern at PEL for the duration of 6 weeks (11th July 2012 to 24th
August 2012) I made this report while working with PEL especially in marketing
department. The whole staff was very cooperative. I have learned a lot from this
organization which I have mentioned in this report.
This report will provide its reader knowledge about the history and background of
PEL its overall strategies, objectives, Owners organization structure, its departments
& their working, its competitors goals, SWOT analysis, STP analysis,, competitive as
well as marketing strategies ,business process analysis, my research findings results
in PEL, and its overall analysis in the market,. Finally this report contains my
practical learning recommendations and suggestions.
The purpose of this internship was to learn while working in the practical field,
especially the knowledge related to the sales and marketing department it has really
helped me to observe to what extent the text book knowledge is being practical in
real field how it can help to enhance our knowledge. As PEL has been considered as
the renowned provider of appliances in Pakistan so I preferred to work in the
appliances divisions marketing department of PEL and also this whole report gives
the information about the appliance division
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MISSION STATEMENT
TO provide quality products and services to the complete satisfaction of our
customers
TO maximize returns for all stake holders through optimal use of resources
To focus on personal development of our employees to meet future challenges
To promote good governance, corporate values and a safe working environment with
a strong sense of social responsibility
VISION STATEMENT
To excel in providing engineering goods and services through continuous
improvement.
OBJECTIVES
The continuous improvement of all products and services through total involvement
of employees.
The development and strengthening of joint ventures and partnerships with external
and internal customers and suppliers.
Providing innovative and higher quality to achieve total customer satisfaction by
understanding their requirements and anticipating their future expectations or needs
through
Monitoring annual targets for quality improvements in all areas and functions
of the organization
Valuing people by understanding and drawing upon the strengths i.e. abilities
and knowledge and make efforts for their training and development.
With a dedicated team of professionals the company is striving to improve the quality
of life in Pakistan home through reliable equipments for power distribution and home
appliances.
HISTORY
PEL is a synonymous with quality all over Pakistan. It was established in 1956 with
the electrical collaboration of m/s AEG (former German electronics and electricalequipment company. as one of Germanys leading industrial companies through
much of the 19th and 20th centuries, AEG manufactured products for industrial and
domestic use.)AEG experts and PEL employees carried out the designing and
production of these equipments jointly.
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INTRODUCTION
PAK ELEKTRON LIMITED is the renowned company in the home appliances sector.
It was established in 1956 it is the oldest composite electrical equipment
manufacturing unit of Pakistan producing power and consumer products. It has
divided into two divisions.
Power division
Appliances division
POWER DIVISION:
It is one of the major electrical equipment suppliers to WAPDA (water and power
development authority) and KESC.PEL equipments has been used in various power
projects of national importance within Pakistan over the years. PEL has had the
privilege of getting its equipment approved and certified. In power sector it has
different power products.
POWER PRODUCTS:
The list of power
products are:
TRANSFORMERS
ENERGY METERS,
SWITCHGEARS,
. APPLIANCES DIVISION:
This division of PEL consists of home appliances manufacturing. In 1981 PEL
introduced window type air conditioner in collaboration with corporation of Japan. In
1986 company introduced refrigerators in collaboration with corporation of Italy. In
2006 company introduced split air conditioners in various capacities,it has different
product ranges.
APPLIANCES PRODUCTS:
Refrigerators
Split type air conditioner
Microwave
Deep freezers
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Washing machine
Water dispenser
ORGANIZATION STRUCTURE
Organizational structure mainly consists of organizational hierarchy.
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MANAGEMENT HIREACHY:
A committed team of highly qualified, professional, experience and well
reputed managers manages the company. The management hierarchy of PEL
is stated below.
BOARD OF DIRECTORS:
AUDIT COMMITTEE;
MR. AZAM SAIGOL(Chairman/Member)
MR. HAROON A KHAN(Member)
MR.TAJAMMAL H. BUKHARI (Member)
DEPARTMENTS
There are 5 major departments of PEL
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MARKETING DEPARTMENT
FINANCE DEPARTMENT
PRODUCTION DEPARTMENT
HUMAN RESOURCES DEPARTMENT
RESEARCH AND DEVELOPMENT DEPARTMENT
MARKETING DEPARTMENT
This department is headed by category manager Mr. MUHAMMAD SHAHID. Then
further down in hierarchy there are
Marketing executives (Mr. TANVEER AHMAD, Mr. SOHAIB, Mr.IBRAR,
Mr.ASHHAD)
Marketing Research Executive (Mr. ALI ZAFAR)
Media coordinator (MR AFRAZ AHMAD)
Pricing in charge (Mr. ISHTIAQ)
There are 6 regions of PEL in Pakistan. They are headed by regional sales manager
(RSM).
The sales policies are recommended by regional office for all regions. 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 majorly divided in two areas:
ABID market
Patiala market
ABID market
(In ABID market there are 20 dealers and 30 sub dealers)
Patiala market
(In Patiala market there are 16 dealers and 21 sub dealers)
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FINANCE DEPARTMENT
This department is controlled by general manager finance and it has been divided
into 3 areas:
Finance
Accounts
Credit control
Finance
Finance deals with banks
Accounts
Accounts deals with costing systems, billing and booking transactions as well as
internal auditing and the next department in the finance is listed below is also an
important section.
Credit control
Credit control deals with credit and recovery procedures in the finance department
PRODUCTION DEPARTMENT
This department looks after the manufacturing of products .this department is given
target by top management to produce a specific number of products which are
ascertained by previous sales data and market conditions. This department is
responsible for quality control as well as it sees there are no defects or shortcomings
in the products .it also oversees the new technologies as well as it also contains
updates regarding the new machinery or other equipment for better product
performance.
After manufacturing the product is sent to Germany for technical assessment to
DANFOSS Company. After approval from it then its bulk production is started.
FUNCTIONS:
Recruitment
Selection
Training
Transfer
Firing decisions
Labor affairs
Staff welfare
MARKETING STRATEGY
My report concerns about the home appliances department of PEL so I will briefly
explain you about the marketing mix of the home appliances. Generally it includes
the 4 Ps and that they are:
PRODUCT
PRICE
PLACEMENT
PROMOTION
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PRODUCTS
REFRIGERATORS:
In refrigerators PEL mainly includes the 5 types of series:
DESIRE MORE
ARCTIC SERIES
DESIRE SERIES
DELUXE SERIES
SMART SERIES
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AIR CONDITIONERS:
In air conditioners it has three types
Split type AC
Floor standing AC
WASHING MACHINES:
In washing machine it has two series:
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WATER DISPENSERS:
In water dispensers it has two series:
Silver line
Life stream
MICROWAVE OVENS:
In microwave ovens it has three series:
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PRICE
Prices are kept according to the competitors level .PEL has consideration that the
market should not to be shrink because of pricing criterias
The company has appointed various informers who consistently visit and check the
retailers shop and check that either they had maintained the PEL prices or not. Then
those informers inform the company about those retailers in case of any irregularity
and then company takes an appropriate action against those retailers.
Pricing depends upon market conditions and it is important from the sales point of
view. Marketing manager has full authority in this region but he also has to take
permission from the companys top management.
PLACEMENT
CHANNEL LEVELS;
PEL has two channel levels
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It is a channel with one or more intermediary levels. The general public can buy PEL
products through authorized dealers.
PEL has different networks like regional sales force is connected with dealers and
core customers are directly attached with them and also dealers visit and analyze
the distribution systems.
During selection of dealers the PEL mostly considers the Worthiness of dealers
Potential demands related to those dealers.
PROMOTION
The main advertisement criteria used by PEL in appliances division is through
media. The main types of media used in PEL Are mentioned below.
TYPES OF MEDIA:
There are major 3 types of media:
Electronic media
Print media
Outdoor media
ELECTRONIC MEDIA: The electronic media mainly includes different channels and
It Includes HUM, ARY, GEO, PTVworld and prime TV
Electronic Spending
CCTV
1%
Radio - Mr. J
7%
ARY Clock
Deal
54%
GEO
37%
CNBC
1%
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PRINT MEDIA
National newspapers e.g. Jung, news, dawn, and etc
Magazines as herald, news lines, banking business
Print Spending
Frontier Post
11%
Daw n Review
7%
Herald
2%
Jang
3%
Wahdat
3%
Express New s
25%
Good Times
3%
Khabrein
21%
Bill boards
Neon signs
Tri visions
PROMOTIONAL ACTIVITIES
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SWOT ANALYSIS
The strengths, weaknesses, opportunities and threats of PEL are discussed below:
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STRENGTHS:
PEL has established a strong brand image in the mind of the customers with the
strenuous effort of more than 50 years through higher quality and low price.
PEL is the first Home Appliances Company in Pakistan Industry to achieve the
super brand award. This shows that the company is now able to complete the
market in such a way that people have got faith in them.
PEL was the market leader for a long time in window ac. Because of that brand
image, PEL had captured the high market share.
PEL has more than 1600 appliances dealers all over Pakistan and it shows that it
has also developed the strong dealer network in the appliances market.
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PEL is one of the companies, which is having a strong grip in the home
appliances. PEL is penetrating the market by introducing the new series of home
appliance.
WEAKNESSES:
Like other companies PEL has some weaknesses in operating the business. If PEL
overcome these weaknesses then it can become a market leader in the home
appliance. PEL lose some competitive edge in the following points:
Best quality always requires more prices. In particular scenario of refrigerator market
PELs refrigerators are bit high in prices then the competitors like DAWLANCE,
HAIER and other local brands.
The major weakness of PEL that creates hurdle in selling the products is less
advertisement and customers is not aware of the changes, which are introduced in
products by the company time to time.
Lack of product range: PEL introduce more products of consumer items but there
are more needs to develop new consumer items like PEL washing machines and
vacuum cleaners.
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Less utilization of capacity: due to lack of finance company cannot utilize its
resources on its full capacity
OPPORTUNITIES:
If PEL take advantage of the opportunities it has, then it will be more fruitful and
profitable it can have following opportunities by.
Having a strong and nationwide network throughout Pakistan and with a long and
enduring relationship with major industrial sector in Europe, Asia and America. PEL
has massive opportunity of outsourcing partial and fully developed products.
Company has also an opportunity that it can increase its product range to attract
more customers towards its products. Due to lack of product range, company can
earn limited amount of profit.
The Company also has an opportunity to export its products. As they have skilled
and crafted foreign procurement department which use to import raw material from
almost all over the world. This activity will not only reduce the reliance on one market
but also helps to improve the revenue for the company and will make PEL as a
global brand.
Through all these acquisition of opportunities the PEL can gain a more better
position than that its competitors.
THREATS
PEL Company in such a competitive era has many threats as well. Company should
make its policies and strategies accordingly. So following are the main threats for the
PEL:
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There is very tough competition in the home appliance market. So every company
tries to get maximum share in the market. It reduces the profit margin of each
company.
Chinas products are another threat for the Pakistani companies because these
products are cheaper than the Pakistani products. Even Chinese products are not
well in quality but it is comparatively in low prices.
forecast is very critical for the company as a wrong forecast can lead to shortage or
surplus of the product. The raw material is stored in the raw material stores where
from the concerned departments demand the material when needed. The Production
Manager issues a material requisition voucher to the store and also feeds its entries
in the web system of the company. After receiving this voucher the store issues the
material to the department and also does the entries in the network system which
also maintains the inventory of material.
dispatcH
purchase R.M
order
receives
R.M store
F.G
stored
production
The organizational hierarchy of PEL is both flat and tall span of administration
in case of lower level of hierarchy (the workers and their supervisors) the span is
wide but as the level goes up it becomes tall
The managing director is answerable to the chairman hold position. General
Managers are answerable to the managing director and are responsible for
respective divisions, managers are heading some departments and assistant
managers AS is leading some deputy managers and others there are senior
engineers who are section in charge supervisors and foreman reports to hem
EXECUTIVE LEVEL
At executive level executives report to the manager and who then report to the
general managers.
WORKER LEVEL
At worker level usually 10 to 30 workers report to a foreman .three to seven foreman
reports to a section in charge.
DIVISION OF LABOR
Permanent employees
Temporary employees
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SEGMENTATION
BEHAVIOURAL
DEMOGRAPHIC
PSYCHOGRAPHIC
GEOGRAPHIC
BEHAVIORAL SEGMENTATION
PEL provides the quality products for their customers based on local demands and
needs
DEMOGRAPHIC SEGMENTATION:
AGE:
The percentage of people especially whose ages are between 25-40 and it also
focuses on the people above 40
OCCUPATION:
It considers the people of all sectors containing the businessman, industrialists, govt.
employees, bankers, teachers as well as people doing the private jobs.
INCOME:
Considers the people mainly having income more than 15000 per month
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EDUCATION:
It mostly focuses on literate people.
PSYCHOGRAPHIC SEGMENTATION
GEOGRAPHIC SEGMENTATION
It has been divided according to north (Punjab, NWFP) and south (SINDH,
Baluchistan)
Zones and there are six regions of PEL in Pakistan:
Karachi
Lahore
Multan
Gujranwala
Rawalpindi
Faisalabad
TARGET MARKET:
Our customers belong to A, B+ & B classes.
These all have their income level more than Rs.15, 000 per month.
The young and old adults, working ladies and housewives are also the target market
of PEL. All the married and unmarried decision makers or joint decision makers for
the purchase of consumer durables.
The age of females should be between 25-40 years and males are between 2845
years.
TARGET CUSTOMER NEEDS:
The basic needs desired by their target customers are as follows.
Quality Product
Product range (colors, sizes)
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POSITIONING:
Positioning is what the customers believe and not what the provider wants them to
believe.PEL adopts different positioning strategies for its products. Products are
designed according to their attributes, customer needs and preferences and it also
designs the products in comparison with its competitors and it has positioned itself
as change your life.
Position is the way a firms product, brand or organization is viewed relative to the
competition by current and prospective customers.
Positioning is a firms use of all the elements at its disposal to create and maintain in
the minds of a target market particular image relative products.
PEL has different positioning levels for different products,
In case of refrigerators the company is challenger of DAWLANCE.
In case of air conditioners company is challenger for WAVES and MITSUBISHI.
In case of televisions company is challenger of LG and some other companies.
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2. Visit different super stores of Lahore including Hyper Star , Al Fatah & Metro
etc.
3. Collect data like company name , models, different sizes available in market.
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B2B Market:
Visi Coolers and ice cream freezers are business products so it have a business to
business market. Manufacturer directly sells their products to corporate clients. The
major clients of visi coolers are
Coca Cola
Pepsi-co
Nestle
These 3 corporate names take the most of the market share of visi coolers. But there
are some many other small clients which varies region to region. Even the small
business of local markets purchases it directly through manufactures. The major
corporate clients in Lahore of Visi Coolers are.
Gourmet
Doce
Rahat Sweet and bakers
Butt sweets
Adam Dairy
Anhaar milk
Hyper star
Metro
These are the major corporate clients of Lahore. Likewise every rejoin have its own
local clients But the major market available in major cities.
There are some descriptions of clients who are in contract with different
manufacturers.
Client Manufacturer
Pepsi
Coca Cola
Nestle
Gourmet
Dosa
Butt sweets
Varioline intercool
Varioline intercool & Caravell
Varioline intercool & Caravell
Varioline intercool & Caravell
Varioline intercool &Caravell
Pak laser
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Adam Dairy
Anharr milk
Pak laser
Pak laser
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8
7
6
5
VARIOLINE INTERCOOL
4
PAK LASER
CARAVELL
2
1
0
MARKET PLAYERS
Hyperstar
20
18
16
14
12
10
8
6
4
2
0
HYPERSTAR
MART
VARIOLINE INTERCOOL
CARAVELL
PAK LASER
MARKET PLAYERS
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Al fatah mart
9
8
AL FATAH
MART
7
6
5
VARIOLINE INTERCOOL
CARAVELL
3
2
1
0
MARKET PLAYERS
Doce
6
5
DOCE
4
VARIOLINE INTERCOOL
CARAVELL
2
1
0
MARKETPLAYERS
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FINE SUPER
STORE
WALTON ROAD
5
4
VARIOLINE INTERCOOL
3
CARAVELL
PAKLESER
2
1
0
MARKET PLAYERS
Gourmet
6
5
GOURMET
4
VARIOLINE INTERCOOL
CARAVELL
2
1
0
MARKET PLAYERS
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Market shares:
Through market survey we analyzed that Varioline intercool is the market leader with
highest 60 % share of market following by Caravell, Haier and Pak laser as shown in
above chart.
Market Share
MARKET SHARE
VARIOLINE INTERCOOL
CARAVELL
PAK LASER
HAIER
Market Figures
Varioline Intercool is supplying about 50,000 Visi Coolers and Chest Coolers to its
Valuable Clients. Waves are supplying approximately 6,000 ice cream freezers to
Beverages Industry of Pakistan and about 45,000 Freezers to domestic consumer
market. About 7,000 Coolers and Freezers are being supplied by ,Caravell &
Dawlence in local market.
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Conclusion
In Current market there is opportunity to penetrate with quality product to capture the
market. PEL has a history in appliances so it has advantage of BRAND IMAGE in
the eyes of market. Visi coolers by nature is expensive product and manufacturers
are charging high prices against it.
PEL has also an advantage of available infrastructure for the production of visi
coolers .Major clients of visi coolers are bound to purchase visicoolers from Varioline
intercool because there is no else to challenge them strongly.
For PEL there is a very good opportunity to manufacture Visi cooler for the market
and challenge the current players with their quality product and services.
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BIBLIOGRAPHY:
Internet sources:
http://www.PEL.com.pk
http://www.google.com
http://www.scribd.com/doc/16962719/PEL-Ltd
http://www.scribd.com/doc/27836099/Internship-report-of-PEL
http://www.scribd.com/doc/27189959/PEL-Internship-Report-Introduction
http://www.scribd.com/doc/27836099/Internship-report-of-PEL
person soure
Mr. Mahmood Ahmad
(marketing executive)
( sales coordinator)
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