pel export marketing plan
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Pak Elektron Limited.
Export Marketing-PEL
Pak Elektron Limited.
Export Marketing-PEL
Group MembersUmer Shahzad 17Muhammad Usman 20Hafiz Farhan Saleem 28Umer Farooq 45Sajjad Zafar Pirzada 52Muhammad Umar Farooqi 145
Global Marketing
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Introduction By Muhammad Usman Roll # 20
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TEXTILES
Kohinoor Industries
Azam Textile Mills
Saritow Spinning
311,678500569
SECTORS COMPANY
TURNOVER
MUSD 2007-08
EMPLOYEES
(Nos.)
ENGINEERING
Pak Elektron
Ltd.232 7,036
FUEL & ENERGY
Kohinoor Power
Kohinoor Energy
86 98137
TOTAL 349 10,018
PEL is a flag bearer of Saigol Group
PEL Introduction
Pak Elektron Limited.
PEL Introduction
• Pioneer manufacturer of electrical goods in Pakistan• One of the oldest and amongst the leading Home Appliances
Manufacturer and Distributor in Pakistan.• The company has an annual turn over of Rs 20.3 billion.• It was established in 1956 in technical collaboration with M/s AEG of • Germany.• In October 1978, the company was taken over by Saigol Group of
Companies.• Since its inception, the company has always been contributing
towards the advancement and development of the engineering sector in Pakistan.
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Pak Elektron Limited.
Historical Overview
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Pak Elektron Limited.
Company’s operations are divided into two divisions:
1) Power Division 2) Appliances Division
COMPANY OPERATIONS
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Pak Elektron Limited.
PEL Product Line
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Pak Elektron Limited.
PEL Product Line
DISTRIBUTION TRANSFORMER
POWER TRANSFORMER
DRY TYPE TRANSFORMER
SWITCHGEAR
PMT TRANSFORMER EPC CONTRACTINGExport Marketing-PEL
Pak Elektron Limited.
CERTIFICATION
Source: www.pel.com.pkExport Marketing-PEL
Pak Elektron Limited.
ChairmanDirector Operations
Managing Director
Power Division
Sales & Marketing
Manufacturing
EPC Contracting
Appliances Division
Sales & Marketing
Manufacturing
Finance
Finance / Accounts
Supply Management
QA&QC
HRD / IR&A
Internal Audit
PEL HEIRARCHI
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Pak Elektron Limited.
Chairman BOD
Managers200
Executive670
Line Staff800
Workers4274
Management Level sat PEL
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Pak Elektron Limited.
VISION
“To excel in providing engineering goods and services through continuous improvement.”
MISSION STATEMENT
To provide quality products & services to the complete satisfaction of our customers and maximize returns for all stakeholders through optimal use of
resources.
To focus on personal development of our Human Resource to meet future challenges.
To promote good governance, corporate values and a safe working environment with a strong sense of social responsibility
MISSION VISION
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Pak Elektron Limited.
• Afghanistan• Kingdom of Saudi Arabia• Swaziland• Greece• Kuwait• Kazakhstan• Bangladesh• Yemen• Nigeria• Hungry
Exporting Countries
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Pak Elektron Limited.
True reliable Partner Over Decades
Shanghai
Kazakhstan
Athens, Greece
- Saudi Arabia
- Doha/Qatar Arabian Gulf
- Abu Dhabi
- Bangladesh
- Nepal
- Mombasa Kenya
- Greece
- Kazakhstan
- Yemen
- China
- Afghanistan
Exporting Countries
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Pak Elektron Limited.Export Marketing-PEL
Explore New Markets
Pak Elektron Limited.
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First Impression
Pak Elektron Limited.
Product Development
Export Relay Control Panel To NigeriaExport Marketing-PEL
Pak Elektron Limited.
External Factors By Umar Farooq
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Pak Elektron Limited.
• Economic Forces:– Devaluation of Currency– Interest Rate– Uncertain Economic Situation– Dumping Pricing.– Competition inside; China & Korea.– Competition outside; China, Korea, India & Turkey.– GST: 17%– Price Preference: 30% to the importing country.
External Forces
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Pak Elektron Limited.
• Political, Legal & Govt. Forces:– Frequently Changes in tax laws– Unstable Political Environment– Energy Crisis– Local Rules: PPRA Rules.– International Rules: World Bank, ADB & JICA Rules.– “Lowest most responsive”.– No negotiations.– Bank Guarantee; 10% of Bid value.– Performance Guarantee; 10% of Purchase Order value.– Bound to Contractual agreements.
External Forces
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Pak Elektron Limited.
• Technological Forces:– New Products.– Extended Services.– New Emerging Markets.– New Marketing methods.– Supply Chain Management.– Manufacturing Process & Techniques.
External Forces
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Pak Elektron Limited.
• Social, Cultural, Demographic & Environmental Forces– Vary country to country
• Competitive Forces:– More than 50 competitors.– New Entrants.– Low pricing.
External Forces
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Pak Elektron Limited.
SWOT ANALYSIS
OPPORTUNITIES
Expansion of Energy Sector
Increase in Population
Large Product Range
Globalization
Joint ventures, merger, acquisition or take over
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Pak Elektron Limited.
SWOT ANALYSIS
THREATS
Strong Competition
Chinese Products
Grey Market
Devaluation of Currency
Obsoletion of Technology
Rapid Changes in Government Policies
New Entrants
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Pak Elektron Limited.
Internal Factors By Farhan Saleem Roll # 28
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Pak Elektron Limited.
Management Function Performed at PEL
PlanningDefining goals, establishing strategies to achieve goals, developing plans to
integrate and coordinate activities.
OrganizingTeam formation of each dept with the help of team leaderArranging and structuring work to accomplish organizational goals
Leading Proper vision and direction of team leaderWorking with and through people to accomplish goals.
ControllingMonitoring, comparing, and correcting work
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Pak Elektron Limited.
PEL SWOT ANALYSIS
STRENGTHS
ERP Based Company International CertificationStrong Brand ImageNumerous Super Brand Award State of the art plantOne of the largest manufacturerStrong R&D DepartmentStrong After Sales ServiceCompliance of International Standards
New Transformer Factory
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Pak Elektron Limited.
PEL SWOT ANALYSIS
WEAKNESSES
Financial Problem
Large overheads High PricesSystem Variation
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Pak Elektron Limited.
Market Analysis By Umar Shahzad Roll # 17
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Pak Elektron Limited.
Major Competitors of Appliances Products
1-LG
2-Samsung
3-Siemens
4-Haier
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Pak Elektron Limited.
Major Competitors of Power Products
1-Transformer:
2-Energy Meters:
3-Switchgear:
4-Power Transformer:
5-EPC Project
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Pak Elektron Limited.
BCG MATRIX
Distribution Transformers
Power Transformers Refrigerator
Question Mark Instrument Transformer Water Dispenser Floor Standing
Cash Cow
Energy Meters Switchgear Panel Split AC
Dog
Generators Washing Machine
Mar
ket
Gro
wth
Market Share
High Low
Hig
hLo
w
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Pak Elektron Limited.
Export Documents
Certificate of InspectionCertificate of InsuranceCertificate of OriginCertificate of WeightCommercial InvoiceConsular InvoiceCustoms Form CF349Delivery Order/Dock ReceiptForwarder's Export InvoiceLetter of CreditLetter of DistributionLoss and Damage ClaimManufacturer's CertificateOcean Bill of LadingPacking ListPhytosanitary CertificationPower of AttorneyPro forma InvoiceShipper's Declaration for Dangerous GoodsShipper's Export DeclarationAutomated Export SystemShipper's Letter of InstructionTransmittal LetterAdditional Information Sources for Information about Documents
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Pak Elektron Limited.
2012 2013 Projected2014
150,000,000
207,242,587
400,000,000
Export
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Pak Elektron Limited.
MARKETING MIX
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PRODUCT
Physical products vary in their potential for differentiation.
– Features– Quality– Performance– Durability– Reliability– Reparability
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Pak Elektron Limited.
PRICING STRATEGIES
– Different Price Range available – Added Internal features & Accessories– Penetrating Strategy for New Market– Market Pricing Strategy for local market
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Pak Elektron Limited.
POSITIONING STRATEGY
PEL position its products on following positioning strategies:
• By Attributes
– Environmental Friendly– Losses Efficient
• By Competitors
– Different Ratings
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Pak Elektron Limited.
PROMOTIONAL STRATEGIES
– Above the Line (ATL)• Electronic• Print• Radio
– Below the Line (BTL)• Outdoor• POS material• Incentives• Giveaways• Sales Schemes
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Pak Elektron Limited.
PRODUCT LIFE CYCLE
PEL Company PEL Transformers
Introduction Growth Maturity Decline
Sales and Profits
TimeDevelopment Introduction Growth Maturity Decline
Sales and Profits
TimeDevelopment
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Pak Elektron Limited.
DISTRIBUTION
Distribution network of all companies is very strong in this industry
MANUFACTURER
EXPORTER
CONSUMERS RETAILERS
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Pak Elektron Limited.
CUSTOMER NEEDS
The basic needs desired by the target customers are as follows. Quality Product
Product range (colors, sizes)
Better Value for the price.
Warranty
Prompt and efficient after sales service
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Pak Elektron Limited.
MARKET SEGMENTATION& TARGET MARKET
Utilities of exporting countries
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PROMOTIONAL ACTIVITIES
Displays and Contribution at Exhibition Displays at Dealer Shop
Dealers Shop-board
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ADVERTISING
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Pak Elektron Limited.
Customers Interaction throughIn greeting Cards
PEL always remember its customers on every special day.
EID DAY 23rd MARCH New Year
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Pak Elektron Limited.
Financial AnalysisBy Sajjad Zafar Pirzada Roll # 52
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Pak Elektron Limited.
FINANCIALS
• Gross Sales: Rs. 20.3 Billion.• Net Sales: Rs. 17.7
Billion.• Gross Profit: Rs. 3.60 Billion.• Net Profit: Rs. 0.12
Billion.89%
11%
Gross Sales
Power DivisionAppli-ances Division
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Pak Elektron Limited.
FINANCIALS
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Pak Elektron Limited.
FINANCIALS
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FINANCIALS
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FINANCIALS
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Pak Elektron Limited.
Summary of the Liquidity Ratio Comparisons
Ratio PEL Industry
Current 1.32 1.26
Acid-Test 0.82 0.88
> Strong current ratrionand weak acid test ration
indicates a potential problemin inventories account.
> Note that PEL has a relatively high level of inventories.
FINANCIAL ANALYSIS
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Pak Elektron Limited.
Summary of the Liquidity Trend Comparisons
> The current ration for PEL has been declining & slowly rising
at the same time acid test ratio first declining and slowing rising.
> The current ration for Industry has been declining & slowly rising
at the same time acid test ratio first declining and slowing rising.
> This indicates inventories are a problem for PEL
FINANCIAL ANALYSIS
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Pak Elektron Limited.
Summary of the Profitability Ratio Comparisons
Ratio PEL Industry
Gross Profit Margin 22.8% 16.9%
Net Profit Margin 1.8% 2.8%
Return on Investment 1.5% 3.5%
Return on Equity 6.8% 13.7%
> PEL profitability ratios have ALL been falling since 2007.
Each except Gross Profit Margin below the industry average
for the past three years.
> This indicates that COGS and administrative costs may
both be too high and a potential problem for PEL.
> Note, this result is consistent with the low interest
coverage ratio.
FINANCIAL ANALYSIS
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Pak Elektron Limited.
Summary of the Financial Leverage Ratio Comparisons
Ratio PEL Industry
Debt to Equity 2.07 2.29
Debt to Assets 0.44 0.58
Total Capitalization 1.09 1.77
> PEL debt utilization and assets supports to debt relative
to industry is low.
> PEL long term debts also less than industry.
> That shows PEL debts utilization possition is very low
as compare to industry.
FINANCIAL ANALYSIS
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Pak Elektron Limited.
Summary of the Financial Leverage Trend Comparisons
> PEL debt utilization tred stuck down as compare to
industry and than slowly rise.
> PEL assets support to debt financing is slowly down but
much down as compare to industry.
> PEL long term debt utilization trend also down.
FINANCIAL ANALYSIS
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Pak Elektron Limited.
SUMMARY OF RATIO ANALYSIS
1. Inventories are too hihg.
2. A burden of financial charges.
3. May be paying off creditors too soon.4. Selling , general and administrative costs may be too high.
5. Less adminstrion performance.
6. Very poor profitability rates.
FINANCIAL ANALYSIS
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Pak Elektron Limited.
Strategies/ObjectivesBy Muhammad Umar Farooqi Roll # 145
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Pak Elektron Limited.
Focus on Long term Goal
Pak Elektron Limited.
Financial GoalsTarget of reducing financial cost from 13%
Strategic GoalsIncrease profitability and sales turnoverIncreasing the product line
Defined Goals at PEL
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Pak Elektron Limited.
Strategic PlansCapture 10% more market share within next 2 years.To become the leading manufacturer of electrical goods in
Pakistan.
Operational Plans Introduce a wide range of Products.To achieve the desired targets with cost cutting
techniques.Efficient utilization of resources to maximize output.
Plan at PEL
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Pak Elektron Limited.
Criticisms of Planning Main flaw in today's planning lies with the energy crisis
prevailing in the country. Due to its dynamic nature the changes in plans are very
frequent.
Effective Planning in Dynamic Environments Different plans including sales and production plans need to
be changed very often and is an ongoing process. Need to cater to market trends while planning and therefore
being static or fixed is of no use.
Contemporary Issues in Planning at PEL
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Pak Elektron Limited.
Objective
Strategic:
Increase our ExportIncrease in production plant capacityRetain local market share.Lower production cost, not effecting the quality.Change in internal design.Superior on time deliverySuperior customer services.
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Pak Elektron Limited.
Objective
Financial:
Lower factory overheads.Minimize liquidated damages on late delivery.Maximize profits.
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Pak Elektron Limited.
Recommendations
1. They should retire their expensive loans.2.They should carefully study their competitors.3.As mentioned earlier company’s liquidity position is dismal. So they need to pay off their short term loans.4.Their operating cost is very high so they should control their operating expenses.5.There should be a continuous monitoring of performance. When performance deviates from plans one does not have to wait for the next periodic review to correct it. The supervisor and subordinate should discuss the situation immediately so the corrective actions can be taken at once in order to avoid the major disasters.6.Whether performance appraisal discussions are held monthly, quarterly, annually appraise should be clear about what he/she is doing right and wrong ,and how he/she can overcome there deficiencies for the future appraisal.7. Performance appraisal should be conducted in a way that employee should not perceive it as a fatigue or threat for there job but it should take it as an opportunity to add or contribute more value in work of there organization
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Pak Elektron Limited.
Distribution Transformer Plant
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Pak Elektron Limited.
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Pak Elektron Limited.
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Pak Elektron Limited.
Question and Answer
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Pak Elektron Limited.
• www.pel.com.pk• www.wikipedia.com• www.slideshare.com• https://www.google.com.pk
References
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