PEL Research PU Group Aug-11

PAK ELEKTRON LIMITED.
14-km, Ferozpur Road, Lahore
PRESENTED to
HUMAN RESOURCE DEPARTMENT
PRESENTED by
UNIVERSITY of the PUNJAB, Lahore

Duration: 22-07-2012 to 15-09-2012
Pak Elektron Limited
TABLE OF CONTENTS
Contents
TABLE OF CONTENTS.................................................................................................................1
EXECUTIVE SUMMARY...............................................................................................................5
HISTORY AND BACKGROUND......................................................................................................6
Energy Meters............................................................................................................................14
Board of Directors...........................................................................................................................17
P R OD U C T...............................................................................................................................37
A/ C C om p e t it o r s ........................................................................................................................38
R e fr i g e r a to r C om p e t it or s ....................................................................................................38
P L AC E M EN T.........................................................................................................................38
P R IC IN G ............................................................................................................................40
S E GM E N TATI O N .................................................................................................................40
N or t h Zo n e ....................................................................................................................................40
S OU TH ZO N E ...............................................................................................................................41
R e gi o n s...........................................................................................................................................41
P R OM O TI O N M IX ( AP P L I AN C ES ) .............................................................................41
AD V E R TI S IN G ......................................................................................................................41
M E S S AG E FO R R E FR I GE R ATOR .............................................................................41
M E S S AG E FO R AI R C ON D I TI O N E R ..........................................................................42
T Y P E S O F M ED I A..............................................................................................................42
1 . E le c tr on i c M e d ia ..................................................................................................................42
2 . P r i nt M e di a ..............................................................................................................................42
I N C E N T IV ES F OR C U S TOMER S & R E TAIL ER S .............................................42
I N C E N T IV ES F OR D EA L ER S ....................................................................................42
C U S TOMER .........................................................................................................................43
P U B L IC R EL ATI O N I N G .................................................................................................43
DEDICATIONS
TO My Honorable Teachers, Parents and Friends who showered their wisdom and knowledge
enabling me to come to grips with the worldly life and attain my Objectives.
ACKNOWLEDGEMENTS
We are extremely grateful to Allah for granting me
the opportunity, perseverance and
determination for handling the internship at PEL for six weeks duration. i extend many
thanks to my supervisor Mr. Kashif Jafri who was extremely co-operative and guided me
throughout the Internship Program, and Mr.Waseem ,Mr. Sohaib,Mr.Abrar, Mr.Afraz and
Mr.Tanveer for their prowess in Excel and for also taking out time to explain. They helped
me a lot in performing all the activities and in gaining the practical knowledge of marketing.
They monitored my all activities and gave me the best suggestions to complete all the
assigned tasks in an effective manner.
We are so thankful to my institute and my teacher Internship Advisors for giving me the
opportunity of this internship during my course of studies, that build my personality and
enable me to do some creative work be a successful person in practical life.
EXECUTIVE SUMMARY
We have worked as intern at PEL (Pak Elektron Limited) for the duration of 6 week. We
made this report about the working of PEL specially appliances division. Whole staff is very
co-operative. We have learnt a lot from this organization which I mentioned in this report.
This report will give its reader knowledge about the history and background of PEL, its
strategic alliance with LG, its products, owners, organizational structure, departments and
their working, its competitors and goals. It also provides SWOT analysis for the overall
analysis in the market. Finally, this report contains my practical learning, recommendations
and suggestions.
The purpose of this exercise was to learn while working in the practical field, especially, the
knowledge related to the Marketing division. It has really helped me observe as to what
extent the text book knowledge is being practiced in real field.
BAC
KGR
OUN
D
AND
HIST
ORY
PART
HISTORY AND BACKGROUND
Pak Elektron was setup in 1956 as a Public Limited Company with the object of initially
producing transformers, switchgears, and electric motors. AEG experts and PEL personnel
carried out the designing and production of this equipment jointly.
After the conclusion of joint venture agreement with AEG Saigol Group acquired the PEL
COMPANY in October 1978.
The company floated its shares to the general public and was listed on Karachi Stock
Exchange (KSE) and Lahore Stock Exchange (LSE).
In 1980, Appliances Division was established and in 1981 it started the production of
Window Type Air Conditioners with the technical collaboration of General Corporation of
Japan. These air conditioners were well received in the market for its quality. Subsequently
in 1987 the production of Refrigerators and Deep Freezers was started.
In 1993 the company has started the assembly of Compressors for Refrigerators and Deep
Freezers under technical collaboration with Messrs. NECCHI COMPRESSORI of Italy.
It was in early 70s that PEL became known in overseas markets due to its quality. The
company started its export to countries like Saudi Arabia, Abu Dhabi, Qatar etc. Later on
PEL supplied electrical equipment to various other countries in the Middle East, Far East
and Africa with great success.
PEL (Pak Elektron Limited) is the flag holder of the Saigol Group of Companies. Pak
Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan. It was
established in 1956 in technical collaboration with M/s AEG of Germany.
In October 1978, the Saigol Group of Companies bought the company. Since its inception,
the company has always been contributing towards the advancement and development of
the engineering sector in Pakistan by introducing a range of quality home appliances.
In the year 1980 the company expanded into consumer products with the introduction of
Window Type Air Conditioners and today also manufactures Split Air Conditioners,
Refrigerators, Microwave ovens, Deep Freezers and Compressors etc.
PEL products right from the beginning have been of a high standard and the name PEL is
synonymous with QUALITY all over Pakistan. Since its inception, the company has been
6
acting as an institution working for the advancement and development of engineering know
how in Pakistan. The company has produced hundreds of engineers, skilled workers and
technicians through its apprenticeship schemes and training programs.
In October 1978, the company was taken over by the SAIGOL GROUP, which is one of the
leading industrial groups in PAKISTAN, having diversified business activities in the fields of:
Textile, Engineering, Banking & Finance, Fuel & Energy, Trading, Automobiles.
PEL has two divisions of its business.
1. Home Appliances Division
2. Power Division
Home Appliances Division:
Home Appliance Division includes the products like WRAC (Window Room Air Conditioner),
Split Air Conditioner, Refrigerator, Fridge, and Microwave Oven.
Power Division:
Power Division includes the products like Transformers, Switchgear and Energy Meters.
The present range of power products includes Transformers up to 33KV 5MVA capacity,
Switchgears up to 33KV, Cage Induction Motors up to 40HP, Single Phase Energy Motors,
Small Generators, Shunt Capacitor, Banks and Recloses etc.
VISION STATEMENT
Toexcel in providing engineering goods and services through continuous
improvement.
MISSION STATEMENTS
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 employees to meet future challenges
To promote good governance, corporate values and a safe working environment with
a strong sense of social responsibility.
SLOGAN
Change your Life
PEL-LG STRATEGIC PARTNERSHIP
Pak Elektron Limited, held a press conference (April 21, 2009) to announce the strategic
alliance between Pak Elektron Limited & LG Electronics. An agreement in this regards was
signed at the ceremony by Mr. MuradSaigol, Director Operations, Pak Elektron Limited &
Mr. E. D. Choi, General Manager, LG electronics, Pakistan Liaison Office. Mr. Saigol
announced this to be the biggest partnership in the history of home appliances and air
conditioners in Pakistan and this strategic alliance will expand in the times to come. PEL
has been appointed the official distributor for LG Air Conditioners, Refrigerators, Microwave
ovens, washing machines and vacuum cleaners from June 2009. The addition of LG for
Pak Elektron will now mean Pak Elektron will have two leading brands, PEL and LG, in both
the categories of home appliances and Air conditioners.
This synergy of brands will bring technologically better products to the customer at
competitive prices. PEL will be offering innovative products made from cutting edge
9
technology of LG. LG Electronics has 30 R&D centers globally and

spends hundreds of millions of dollars on R&D making it one of the
leading brands in the world. This will be possible as LG has a wealth of
global expertise in terms of designing the right product for the consumer.
LG will also enhance the production capabilities of Pak Elektron
through technology transfer which will translate into more smart and
sophisticated designs, with competitive cost of production.
As the facility is upgraded it will be fully capable for export of LG
products thus improving the foreign exchange earnings for Pakistan.
Pak Elektron will benefit from economies of scale as a result
maximizing return to all stakeholders.
The partnership has now been ended due to some reasons and now both companies are
woking separately.
10
COMPANY PRODUCTS
The company comprises of two divisions:

1. Appliances Division
2. Power Division
1) APPLIANCES DIVISION
This Division of PEL consists of appliances manufacturing.
Pel 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.
PEL Refrigerators
The manufacturing of refrigerators started in 1986-87 in technical collaboration with M/s
IAR-SILTAL of Italy. Like the air conditioner, PEL's refrigerators are also in great demand.
Today, PEL Crystal has 30% market share. Its cooling performance is tested and approved
by Danfoss, Germany and its manufacturing facility is ISO 9002 certified by SGS
Switzerland.
PEL Deep Freezers
PEL deep freezers were introduced in 1987 in technical collaboration with M/s Ariston of
Italy. Because of durability and high quality, PEL deep freezers are the preferred choice of
companies like Unilever.
2. POWER DIVISION
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PEL Power Division is one of the major electrical equipment suppliers to WAPDA & KESC.
Over the years, PEL electrical equipment has been used in numerous power projects of
national importance within Pakistan. Since 1956 the company manufactures
Transformers
Energy meter
Switchgears
Kiosks
Compact Stations
Shunt capacitor banks
Transformers
PELs
first
major
power
product
being
produced
since
1956.The
company
manufactures Transformers upto 5000KVA capacity. These oil-immersed transformers

are suitable for both indoor and outdoor installations, being manufactured as per IEC
76, BSS 171 or VDE 0532 standards. Sealed tank designs are available up to 200KVA
while all larger sizes are conservator type. PEL Transformers have been tested in
KEMA labs Holland, against short circuit withstand in addition to Routine Type and
Impulse Tests in Pakistan.
Besides the standard 11/0.415 KV transformers, PEL also manufactures. 33/11 KV
transformers up to 45000 KVA, pad mounted transformers and Silicon Oil Transformer etc.
Switch Gears
PELs second major power product is High Tension and Low Tension switchgears being
produced for indoor and outdoor installations complying with the latest international
specification i.e. IEC, BSS or VDE, PELs switchboards are sheet fabricated totally
enclosed, floor mounting vermin and dust proof. These are supplied with factory fitted
relevant components and copper bus bars internal wiring, terminal blocks etc. in preprinted
form. Out switch gear manufacturing line consists of High Tension Indoor or Outdoor type
switch gear, metal clad, draw out type with vertical or horizontal isolation can be supplied up
to 33 KV voltage during rating and short circuit level of 750 MVA as per customers
requirements. These panels can be supplied complete with triple-pole, minimum oil/bulk
oil /SF6 Air Magnetic / Vacuum Circuit Breakers, Current and Potential Transformers,
meters protection relays and other standard accessories PELs 11KV switchgears have
been tested for short circuit withstand if the KEMA International Laboratory.
12
Energy Meters
PELs third power product is the high tech, high quality single-phase wattmeter being
produced under licensed from ABB (Asea Brown Boveri Power T&D Company) of USA.
In the range 10-40 amps and rated 240 volts. It is also being planned to expand in
other metering areas in near future. The plant with an annual production capacity of 5,
60,000 meters became the first unit of its kind in 1997, to be awarded ISO-9002
certification, in Pakistan.
Special products like 11KV and 33KV Auto Re-closers and 11KV shunt capacitor banks
were also supplied to WAPDA under IDA and USAID International contracts through
open international competition
PEL CHRONOLOGICAL LAUNCH PRODUCTS
YEAR
PRODUCT
TECHNICAL
INTRODUCED
COLLABORATION
13
Distribution
1956
Transformers, Switch
Gears, & Three Phase
AEG West Germany
Induction Motors
1978
PEL was taken over by

Saigol Group
PEL Window Type Air
General Corporation
Conditioner
Japan
1987
PEL Refrigerators
SILTAL SPA Italy
1987
PEL Deep Freezers
ARISTON Italy
1981
PEL NECCHI Fractional

1993
Horse Power
Compressors
1994
1995
1997
2001
2003
ABB, Power T&D
Hour Meters
Company USA
PEL DAEWOO Color
Daewoo Electronics,
Television
Korea
Carrier Window & Split

Type Air Conditioners
Samsung Corporation
Type Air Conditioners
Korea
PEL Split type AC

imported from China.
Floor Standing Air
Meters & Split AC

Manufacturing
2006
Carrier Corporation USA
Samsung Window & Split
Conditioners
PEL Digital Energy
2005
COMPRESSORI Italy
PEL Single Phase Watt
PEL Washing Machine &

2004
NECCHI
PEL Generator & Mini

Refrigerators
Galanz&Midea, China
Local assembling in
Washing Machine
License from ABB of
USA
Japanese Technology
14
2006
Unilever Deep Freezer

(Walls Ice-Cream)
Local Manufacturing
2007
MWO assembly
Kit import from GALANZ.
2008
PEL Water Dispenser
Trading Item
2009
LG Titan
LG
2010
New Microwave Oven at

Lowest price
PEL
COMPANY PROFILE
Pak Elektron Limited (PEL) is the flag bearer of the Saigol Group of Companies.
The products manufactured by PEL have always been of high standard and the name 'PEL'
is synonymous with QUALITY all over Pakistan. Since its inception, the company has been
working for the advancement and development of engineering know-how in Pakistan. The
company has produced hundreds of engineers, skilled workers, and technicians through its
apprenticeship 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.
15
The company has always been contributing towards the advancement and development of
the engineering sector in Pakistan by introducing a range of quality electrical equipments
and home appliances and by producing hundreds of engineers, skilled workers and
technicians through its apprenticeship schemes and training programs.
Board of Directors
Mr. M. NaseemSaigol
Mr. M. AzamSaigol
Mr. M. MuradSaigol
Mr. Muhammad ZeidYousafSaigol
Chairman / Chief Executive Officer
Mr. Muhammad Abdullah HaroonSaigol

Mr. Haroon Ahmad Khan
Managing Director
Mr. Syed Zubair Ahmad Shah
Mr. Syed Iqbal Ashraf
Mr. WajahatA. Baqai
Mr. Rizwan Hameed
NIT Nominee
NBP Nominee U/S 182 of the Ordinance
Audit Committee
Mr. AzamSaigol
Mr. Wajahat A. Baqai
Mr. Rizwan Hameed
Mr. Haroon Ahmad Khan
Chairman/Member
Member
Member
Member
Company Secretary
Mr. M. Omar Farooq
Chief Financial Officer

Syed ManzarHasan
FCA
16
Auditors
M/s YousafAdil Saleem & Co.
Chartered Accountants
(A member firm of Deloitte Touche Tohmatsu)
Legal Advisors'
M/s Hassan & Hassan Advocate
BUSI
NES
S
OPE
RATI
ONS
PART
17
ORGANIZATIONAL STRUCTURE
18
Finance & Accounts
Industri
19
20
HIERARCHY OF MARKETING APPLIANCES DIVISION
Description of Marketing Departments
21
Marketing department is main nerve of any organization as far as PEL is concerned; PEL
has two different marketing departments i.e. separate for the two divisions:
Appliance Division.
Power Division.
Appliance Division
The products marketed and managed in Appliance Division are as follows:
Refrigerators
Microwave ovens
Split and Window Air Conditioners
Washing Machine
Water Dispenser
The primary duty of marketing department is to make an overall marketing plan for each
product and also analyze the current market situations by monitoring the competitors
separately and constructing strategies accordingly.
It includes the development of daily sales report region wise, location wise and to compare
it with the annual sales plan and in case of fluctuation take corrective actions and make
necessary arrangements. Another task of marketing department isallocation of advertising
budget and to develop promotional plans for retailers, wholesalers and end consumers
within limited financial budget for the whole year.
Beside these activities this department is also responsible for check and balance of dealers.
This department not only motivates the dealers but also check their activities. It also checks
their credit limit because dealers have awarded different credit limits according to their
potential of sales. Whenever any dealers credit crosses its limits they stop the supply and
first they try to motivate dealer to clear his credit then they restart his supply. These all
things happen because much of PELs sale is on credit.
Marketing department is a blend of following departments:
Customer Service Department

Credit Control Department
Consumer Marketing Department
Dispatch
22
Customer Service Department (CSD)

CSD is a customer service department under the Marketing Head. Where the after sale
service is provided to satisfy customers having problem in their appliances. PEL is well
known for their customer care service.
Credit Control Department (D&C)
D&C is a credit control department under the Marketing Head. A responsibility of this
department is to maintain record for all the credit transactions.
Dispatch
Dispatch is another department under the Marketing Head. In this department all the things
are maintained which are send out of the factory or to dealers.
Consumer Marketing Department(CMD)

There are three main tasks done by CMD
Processing
Debit and Credit
Recovery
The main function of this department is the collection of the monthly installments from
customers and develops monthly installment reports and ledger. It also includes the
presentation of monthly cheques, their report as well as preparation of bounced cheques
Sheet.
Cash inflow & Cash Outflow Position is Checked on daily basis. Balance with different
banks is matched with Ledger.
Wor k i n g o f Ma r k e ti n g D e p a r t m e n t
T h i s d e p a rtm e n t i s h e a d e d Ma rk e ti n g Ma n a g e r.
T h e n Fu rt h e r d o wn i n h i e r a r ch y th e re a re :
B ra n d Ma n a g e rs .
Ma n a g e r D i st ri b u t i o n C re d i t .
C u st o m e r s e r vi c e o ffi ce rs .
I n s ti tu ti o n a l sa l e Ma n a g e r.
23
T h e re a re si x b ra n ch e s o f PEL i n Pa ki s ta n . Th e y a r e h e a d e d b y
R e g i o n a l S a l e s Ma n a g e r. (R S M) . Th e s a l e s p o l i ci e s a re r e co m m e n d e d b y
h e a d o ffi ce fo r a l l r e g i o n s . Th e p o l i ci e s f o r cu s to m e r se r vi ce a re d e f i n e d
b y Ge n e r a l Ma n a g e r C u s t om e r Se r v ic e a t h e a d o ffi ce . Tar g e ts a r e g i ve n
t o re g i o n a l sa l e s Ma n a g e r o f e a ch p a r ti cu l a r re g i o n a n d t h e n th e R S M
g i ve s fu rt h e r t a rg e t a n d i n ce n ti ve s to sa l e s o ffi ce rs to a ch i e ve th e d e m a n d
targets.
I n L a h o re th e m a rk e t i s d i vi d e d i n t o 3 a re a s:
A b i d Ma rk e t
P a t i a l a Ma rk e t
O u t s ki r ts
I n Ab i d Ma rk e t t h e re a r e 2 0 d e a l e r s a n d 3 0 su b d e a l e r s.
I n p a ti a l a Ma r ke t th e re a re 1 6 d e a l e r s a n d 2 1 su b d e a l e rs .
I n o u ts ki rt s t h e re a re 3 5 d e a l e rs
I n L a h o re th e re i s:
RSM
A re a Sa l e s Ma n a g e r
S a l e s e xe cu ti ve
Ma rk e t i n g
d e p a rtm e n t
(1)
(2)
(10)
co n tr o l s
th e
4 P s
in
the
company
i.e.
P ro d u c t, P r o m o t i o n , Pl a ce m e n t, a n d Pri ci n g . Th e y a r e a l so re sp o n si b l e fo r
t h e a l te ra ti o n a n d Mo d i fi ca ti o n i n t h e d i ffe r e n t
b ra n d s o f t h e co m p a n y a n d o f n e w p ro d u c t e .g .
t h e y ca n su g g e s t c o l o r ch a n g e , s i ze o f p ro d u c t
e tc . wh i ch i s b e i n g d e m a n d e d b y th e cu st o m e r s.
T h e y tr y to b ri n g i n n o va t i o n s i n t h e p ro d u c ts to
m a ke th e m a tt ra ct i ve f o r th e cu st o m e rs a n d t o
c o m p e t e wi th t h e co m p e ti to rs i .e . D a wl a n ce ,
G e n e ra l , a n d Wave s e t c.
T h e re a r e p ri n t a s we l l a s e l e c tr o n i c m e d i a f o r
p ro m o t i o n a ct i vi ti e s .
24
DESCRIPTION OF DIFFERENT DEPARTMENTS

HUMAN RESOURCE DEPARTMENT
Human Resource Department is the most important and key department of every
organization. It not only deals with the employees of the organization but also help in
management of the affairs of the company.
PEL has a full fledge HR Department known as HR&A or administration department with the
staff strength of 38 employees. The GM is the top executive in the HR department and
there is one manager of HR to facilitate the work of G.M. and 2 personnel and an admin
officer.
HR Departments activities are spread over the whole organization. The following areas
come under direct supervision of HR department at PEL.
Hiring and right sizing of employees

Training and development
Compensation system
Security and fire fighting
Gate supervision
Telephone exchange
Fair price shops
Canteen supervision
Dispensary and health care
As the security in the company like PEL is very much important so there is 24-hour
arrangement of security by three shifts in charges headed by a security officer. He is also
responsible for the firefighting activities and for the placement and checking of all the
firefightingequipment. For the purpose of security and for the visitors there are two gates
under the supervision of a supervisors with two gate assistants who are responsible for all
the in and out transport and movement activities in the organization.
There is a telephone exchange in the organization having a facility of 13 lines. The
organization is providing the basic necessities to the workers e.g. flour, ghee, sugar etc.
from the fair price shop at very controlled price and quality. Because this is part of fringe
benefits these benefits are provided to the employees. There is a fair price supervisor who
is responsible for the purchase and distribution.
25
PEL is also providing the facility of mess to the workers, officer as well as to the interns.
Mess is provided at very nominal charges. Mess supervisor is responsible for the
purchases and cooking.
There is not a particular hospital in PEL but there is a dispensary with two dispensers and
one senior dispenser. For the medical checkups and for any detailed curves the employees
are sent to social security hospital.
FINANCE DEPARTMENT
Finance Management is the lifeblood of any industry. If this area of corporate activities is
improperly handled, a company may lead insolvency despite having all the resources and
opportunities. Therefore proper financial management is vital for every business concern
and PEL is not lacking behind over here.
At PEL finance department for both division (Appliance and Power) is separate but their
procedure are same. To control both another departments called Finance Center is
established. Functions of finance are:
Perform as a workstation and as an integrated circuit amongst all department of the
company.
Arrange monetary resources / funds at favorable prices and at proper time.
Allocate resources / funds throughout the organization.
Financial deals with the banks, investment firms, leasing companies, modaraba
companies, DFIs and other government agencies through Finance Center.

Carry out final auditing of financial records prepared by Accounts department of
Appliances and power division.
The finance department maintains record of all its expenses through vouchers. Generally
the following types of vouchers are used for this purpose.
Cash payment vouchers for cash transactions recording.

Purchase vouchers
Bank payment vouchers
Journal vouchers for general expenses.
Income Tax /Sales Tax Recording
26
The Finance Center prepares and keeps up to date record of income tax & Sales Tax
deductible at source on the payments made to its buyers i.e. WAPDA and others, income
tax/sales tax deductible on the salaries / wages or on sales of its employees/dealers and
tax payable to the government on the companys profit.
ADMINISTRATION (IR & A) DEPARTMENT
Key responsibilities are:
Maintenance of Attendance
Maintenance of Stores
Check the material in & out from the factory
Maintenance of factory
Provide assistance to all departments regarding material
PROCUREMENT DEPARTMENT
PEL has state of the art methods of production and they also outsource the products and
raw material not only from Pakistan but also from Asia, America, Europe, and Africa.
So for this purpose PEL has two different departments for procurement, which are:
Local Procurement
Foreign Procurement
LOCAL PROCUREMENT DEPARTMENT

Local Procurement department is responsible for all the raw materials that are required for
making various products in the factory. It includes from nails to large metal sheets. At the
start of each financial year they receive a major plan from the management, which
highlights all the raw material required for each product. Dates and maximum time limit for
raw material requirement is also mention in this major plan.
Now procurement team makes small benchmarks and milestones from the major raw
material required plan in order to ease them for remembering the required time limit and
also reminds finance department to arrange finance for such purchases.
FOREIGN PROCUREMENT DEPARTMENT
Responsibilities and duties are same as Local procurement but they vary in the dimension
that, they have to arrange the raw material from abroad. They also receive same plan as
27
local procurement for the whole financial year and develop milestones to carry out the plan
execution properly.
The skill of this department is to purchase the raw material in the optimum cost that best
satisfy the need of production department and also to finance department in quality as well
as in monetary terms respectively.
INTERNAL AUDIT DEPARTMENT
The internal audit department is made to keep record and track of each department.
The main responsibilities of this Dept. are as follows:
How things are working in each department?

Avoiding of illegal use of company resources
Creating a check and balance procedures for each department.
Keeping track for misuse of responsibilities
Indicating unnecessary usage of Budget allocation
INFORMATION TECHNOLOGY DEPARTMENT

IT departments key responsibilities are as follows:
Troubleshooting and problems facing in computers

Installing and deletion of softwares
Rights protection and issuance
Developed and maintain internal network.
Developed and maintain domain of each person.
Create and enhance internal softwares running
currently.
Hardware and all software issues
PRODUCTION DEPARTMENT
Production departments key responsibility is to develop and create products that are
required for the specific department. They also receive a major plan for the whole financial
year that indicates the number and models of each brand and the deadline time for each
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lot. PELs production department is comprised of different units according to the products.
Following are the names of production department:
Refrigerators Production Department.

Transformers And Switchgears Production Department
Electricity Meters Production Department.
ACCOUNTS DEPARTMENT
The Accounts Department looks after the financial matters. Accounts department for both
power and appliances division have similar functions as below
Financial keep of daily, including the income statement and balance sheet.
Book keeping of daily monetary transactions.
Production maintenance reports
Cost data on labor, materials and overheads.
Remittances and loans
Expense reimbursement
Tax statement
Employees Salary Recording
Cash payment vouchers for cash transactions recording.
Purchase vouchers
Bank payment vouchers
Journal vouchers for general expenses.
Income Tax /Sales Tax Recording
Controlled by Account Officer, this section is responsible for keeping three types of
employees salaries record. These records pertain to workers, staff and officers /
managers.
When a person joints the organization he needs to submit a joining report to HR&A for
verification. Only those employees are eligible for salaries that have salary authorization
and appointment letter issued by HR&A department. Every month HR&A department
send an absentees report to salary controller of Finance Center. This list contains
names of those employees who were on unauthorized leave. The salary controller
deducts required amount of money for unauthorized leave. No salary is deducted if
casual / sick / earned leave is properly applied for.
The monthly salary record of each employee is entered in the permanent master file of
computer. Necessary changes are made if any increment is observed in the employees
salary.
29
INDUSTRY ANALYSIS
There are two major local brands i.e. Dawlance and PEL.
Dawlance
The company started their operations in early 80s. Currently United Refrigeration Limited is
the leader in the Industry, its annual sales are approximated up to 240,000 refrigerators per
annum, and they are also dealing in deep freezers, Microwave ovens, washing machines,
Split air conditioners, Televisions and kitchen appliances.
Like every other brand, they also got into agreements with different financial institutions to
cater the hire purchase customer. Company also got its own network of retail outlets in
Karachi to cater the same.
Companys R&D made them the most progressive and dynamic brand in the market; they
normally introduce new design after every two three years. Dawlance offer their products
at competitive rates to their customers.
They used to offer very controlled credit and
incentive policy but now they have increased their incentives and relaxed credit policy,
because of improved competition products.
Reasons for Dawlance Growth
Following are the reasons for growth in the market share.
Quality product
Strong brand name
Strong dealership network
30
Better product range

Timely availability
Heavy advertising
PEL
PEL got into appliances business in 1983 with window room air conditioners. The product
was a big success and became the leaders in this product. In 1987 PEL added refrigerators
in their product line. The initial product didnt get a good response from the market
PEL re-launched refrigerators under the silver bullet brand CRYSTAL in 99. During the first
year of launch 50,000 units were sold against 27,000 units in 97-98. Before the launch of
Crystal, the product was at the decline stage of product life cycle. From 99 onwards PEL
refrigerator sales grew at an average internal growth of 36% per annum and emerged as
the second largest manufacturers in Pakistan market.
Reasons for PEL Growth
Following are the reasons for growth in the market share.
Improved quality product.

Restoration of dealers confidence in product.
Introduction of differentiated features i.e.
Jumbo Freezers, water dispenser etc.

Relatively better retailer margins as compared
to core competitor Dawlance.
31
SWOT ANALYSIS OF PEL
SWOT Analysis is a strategic planning method used to

evaluate the Strengths, Weaknesses, Opportunities,
and Threats involved in a project or in a business
venture. It involves specifying the objective of the
business venture or project and identifying the internal
and external factors that are favorable and unfavorable
to achieving that objective.
In many competitor analyses, marketers build detailed
profiles of each competitor in the market, focusing especially on their relative competitive
strengths and weaknesses using SWOT analysis. Marketing managers will examine each
competitor's cost structure, sources of profits, resources and competencies, competitive
positioning and product differentiation, historical responses to industry developments, and
other factors.
Marketing management often finds it necessary to invest in research to collect the data
required to perform accurate marketing analysis. Accordingly, management often conducts
market research (alternately marketing research) to obtain this information. Marketers
employ a variety of techniques to conduct market research, but some of the more common
include:
Qualitative marketing research, such as focus groups
Quantitative marketing research, such as statistical surveys
Experimental techniques such as test markets
Observational techniques such as ethnographic (on-site) observation
Marketing managers may also design and oversee various environmental

scanning and competitive intelligence processes to help identify trends and
inform the company's marketing analysis.
32
SWOT analysis is just one method of categorization and has its own weaknesses. For
example, it may tend to persuade companies to compile lists rather than think about what is
actually important in achieving objectives. It also presents the resulting lists uncritically and
without clear prioritization so that, for example, weak opportunities may appear to balance
strong threats.
STRENGTHS
PEL has the following strengths and is in more competitive position in these areas than its
competitors. Following are the main strong points of PEL:
Strong brand image
Strong dealer network
Good product quality and service
Number 2 in refrigerators in Pakistan
Firm grip in home appliances
Strong Management
Distribution of Authority
Free customer service
WEAKNESSES
Like other companies PEL has some weaknesses in operating the business. If PEL
overcome on these weaknesses then it can become a market leader in the home appliance.
PEL loose some competitive edge in the following points:
Financial Problems
Lack of advertisement
System variations
Lack of Product range
Lack of Job Rotation

Lack of Co-ordination
Lack of coordination with dealers
Poor after sales services
Defects in new products
33
OPPORTUNITIES
For the PEL there are more opportunities for expansion the business. If PEL realize that
opportunities then it will be more fruitful and profitable for the company. Even if company
does not take advantage of these opportunities then it will lose its competitive position and
high profit. Its `competitors will give PEL tough time to pursuing the opportunities that are
adopted by them. Following are the opportunities for the PEL.
Exploration of market in Pakistan
Increase in product range
Export opportunity
THREATS
PEL Company in such a competitive era has many threats as well. These threats are for the
present situations and future. Company should make its policies and strategies according to
these threats. So following are the main threats for the PEL:
PEL facing tough competition.
Mostly companies Give High Credit in market and get current market
High Credit market is big fever for the company
Slow growth rate in Pakistan
Instability of government
Tax department
MARKETING STRATEGY
34
Target consumers are at the center of the marketing

strategy. The company identifiesthe total market, divides it
into smaller segments, selects the most promising
segmentsand focuses on serving them. To make success
in todays competitive market place, companies need to be
customer centered. PEL understands the importance
ofcustomers and that is why it has a customer-driven
marketing strategy.
MARKET SEGMENTATION
PELs Marketing Department is responsible for identifying the attractive segmentsandto
target the best of them. As PEL does mass marketing so it is good for company. Itdesigns a
marketing mix using mechanisms under its control: product, price, place andpromotion. The
company engages in marketing analysis, planning, implementation andcontrol to find the
best marketing mix and to take action. The company uses theseactivities to enable it to
watch and adapt to the marketing environment. PEL doessegmentation of the market
according geographic and demographic variables like ruraland semi-urban areas and
income level of the customer.
MARKET TARGETING
Market targeting involves evaluating each market segment's attractiveness andselecting
one or more segments to enter. PELs target markets are customers fromlower middle,
middle and upper middle income level and PEL also targets rural and suburban areas
markets. PEL targets these markets because it has differential advantagesof economical
and durable products over its competitors; where it can generate thegreatest customer
value and sustain it over time.
MARKET POSITIONING
35
PEL positions itself as an electronic company offering durable products of bestperformance

at economical rates. PEL plans positions durability and low prices thatdistinguish its
products from competing brands like Mitsubishi, Sabro etc. and give it thegreatest strategic
advantage in its target markets.
MARKETING MIX
PEL
plans
to
f o cu s
around
ke y
o b j e ct i ve s
of
b u i l d i n g a s tr o n g d e m a n d f o r co re p ro d u c ts th ro u g h
e ffe c ti ve m a r ke t i n g a n d p ro d u ct i m p ro ve m e n t. U n d e r
t h e d i ffi c u l t b u si n e ss e n vi ro n m e n t PEL a r e co n fi d e n t
to
p e rf o rm
sa ti sf a c to ri l y
in
th e
co m i n g
ye a r
by
k e e p i n g a wa t ch o n q u a l i t y, a ch i e ve c o s t re d u c ti o n s
t h r o u g h im p ro ve d e ffi ci e n c y a n d g ro wt h m om e n tu m .
PRODUCT
O u r re p o rt co n ce rn s a b o u t h o m e a p p l i a n c e s s e c to r o f P EL . Th e re a re
t h r e e m a i n c a t e g o ri e s o f p ro d u c ts .
(i )
R e fr i g e ra t o r
(i i )
A i r C o n d i ti o n e r
(i i i )
D e e p Fr e e z e r s
(i v)
Split
( v)
Wash i n g Ma ch i n e s
P E L i s m a r ke t l e a d e r i n Ai r co n d i ti o n e r s th ro u g h o u t Pa ki s ta n . D u e t o th e
b e tt e r q u a l i t y o f i t s A/ C th e b ra n d l o ya l t y i s h i g h . I t h a s i n t ro d u ce d
d i ffe r e n t n e w mo d e l s t o a tt ra ct t h e c u s to m e r s. G e n e ra l i s N o . 2 i n ma r ke t.
36
I n re f ri g e r a t o r P EL i s 2 n d i n t h e Ma rk e t i n re s p e c t o f s a l e s. W h i l e D a wl a n c e
i s n u m b e r 1 . PEL i s st ri vi n g to b e co m e N o . 1 i n n e xt 3 to 4 ye a r s b y
i n tr o d u ci n g n e w Mo d e l s a n d mo d i fi ca ti o n s i n th e i r p ro d u ct s . Th e m a r ke t f o r
r e f ri g e ra to r i s g ro wi n g wh i l e f o r Ai r -c o n d i ti o n e r i t i s s ta g n a n t .
T h e re i s ve r y i n t e n s e co m p e t i t i o n i n th e h o m e a p p l i a n ce i n d u st r y. Th e
c o m p a n i e s i n t h e i n d u st r y a re tr yi n g to ca p t u r e t h e m a rk e t b y a g g re ss i ve
a d ve r ti se m e n t n e w p ro d u c t l a u n ch i n g , b ri n g i n g i n n o va t i ve fe a t u re s i n
e xi s ti n g p r o d u ct s.
T h e a ct i ve co m p a n i e s i n th i s i n d u s tr y a re :
PEL
LG
D a wl a n c e
Wave s
G e n e ra l
A/ C C om p e t it o r s
G e n e ra l
Wave s
L .G
R e fr i g e r a to r C om p e t it or s
D a wl a n c e
S a m su n g
L .G
Wave s
37
PL ACEMENT
T h e d i s tr i b u ti o n se t - u p o f PEL h a s u n d e r g o n e m a n y
changes.
I n 1 9 8 8 t h e se t u p wa s ve r y si m p l e . Th e re we re o n l y
f o u r s a l e o ffi ce rs
wh o u se t o m a n a g e a re a o ffi ce s
i n Mu l t a n , R a wa l p i n d i , L a h o re a n d F a i sa l a b a d .
1 9 8 9 th e c o m p a n y d e ci d e d t o fo rm a n e ffe c ti ve
d e a l e r sh i p n e t wo rk . Th e co m p a n y h a d i t s d e a l e rs i n
a l l m a j o r ci ti e s .
I n 1 9 9 3 m a n a g e m e n t p l a n e to fo rm a re g i o n to
f u r th e r im p ro ve th e d i s tr i b u ti o n s ys t e m . Th e wh o l e
c o u n tr y wa s d i vi d e d i n t o fo u r ma j o r re g i o n s. 1 9 9 6 i t
i s fu rt h e r i m p ro ve b y i n c re a si n g re g i o n f ro m 4 t o 6 .
D i st ri b u t i o n s ys t e m o f PEL i s d e s i g n e d i n su ch a wa y a s to c o ve r th e
wh o l e ma r ke t a n d e n s u re t i m e l y d e l i ve r y o f p ro d u ct s t o th e co n su m e rs .
D e ta i l s o f t h e i r d i st ri b u t i o n s e t u p a re g i ve n b e l o w.
P E L h a s t wo ch a n n e l l e ve l s.
(i )
D ir e c t M a r k e t C h a n ne l
38
I t h a s n o i n te rm e d i a c y l e ve l . Th e C o rp o ra t i o n , t h ro u g h sa l e s o ffi ce rs ,
d i re c tl y s a l e t o l a rg e o rg a n i za ti o n s a n d c o rp o ra te se c to r.
(i i )
In d i r e c t M a r k e t C h a n ne l
I t i s a c h a n n e l wi t h o n e o r m o r e i n t e rm e d i a r y l e ve l . Th e g e n e ra l p u b l i c c a n
b u y P E L p ro d u c ts th ro u g h a u th o ri ze d d e a l e rs .
P E L h a s b e e n n e t wo rk ; R e g i o n a l s a l e s fo rc e i s co n n e c te d wi th d e a l e r.
C o re c u s to m e r s a re d i re c tl y a tt a c h e d . D e a l e r s a r e a l s o vi s i t a n d a n a l yz e
d i st ri b u t i o n s ys te m .
D u ri n g th e se l e c ti o n o f d e a l e rs fo r P EL , t h e y co n si d e r = > W orth i n e s s o f
d e a l e r s, = > Po te n t i a l d e m a n d . Th e y o ffe r th e m i n ce n ti ve , s ch e m e s fo r c o s t
s a l e s a n d a l wa ys a d o p t p o l i c i e s i n re sp o n se to c o m p e t i t o r s.
PRICING
P ri c e s
are
kept
a cc o rd i n g
to
co m p e t i t o r
l e ve l .
P EL
c o n si d e r s m a r ke t sh o u l d n o t sh r i n k b e ca u se o f p ri ci n g .
P ri c e s d o n o t d e p e n d o n se a so n s.
T h e p ri c e s a re s tr i c tl y o b se r ve d b y t h e C o e .g . A d e a l e r
s e l l s a p ro d u c t b e l o w t h e p ri c e g i ve n b y co m p a n y t o a n y
c u s to m e r th e n t h e c o m p a n y ca n fi n e d e a l e r u p to 5 0 0 0 R s.
and
ca n
ca n ce l
his
d e a l e r sh i p .
Th e
co m p a n y
has
appointed
va ri o u s I n f o r me r s wh o co n st a n tl y vi s i t a n d c h e c k t h a t c o m p a n y p ri ce i s
b e i n g m a i n ta i n e d . Th e s e p e o p l e i n fo rm th e co m p a n y i f a n y i rr e g u l a ri ti e s i n
p ri ci n g a n d th e n co m p a n y ta ke a p p ro p ri a te a c ti o n a g a i n s t d e a l e r s. P ri ci n g
i s i m p o r ta n t to c o n t ro l sa l e s . P ri ci n g d e p e n d s u p o n m a r ke t co n d i t i o n s.
Ma rk e t i n g Ma n a g e r i s i n d e p e n d e n t i n h i s r e g i o n b u t h a s t o g e t a p p ro va l
39
f ro m co m p a n y fo r g i vi n g mo r e i n ce n ti ve s t o d e a l e r s. Th e d e a l e rs p l a y
i m p o rt a n t ro l e i n s a l e s .
SEGMENTATION
(i )
G e o g ra p h i c Se g m e n ta ti o n
S e g m e n t a t i o n i s d o n e o n t h e b a si s o f g e o g ra p h y. P a ki st a n i s d i vi d e d i n t o
t wo z o n e s; => N o r th , = > S o u t h .
N or t h Zo n e
N o rt h Z o n e i n cl u d e s :F Punjab
F NW FP
S OU TH ZO N E
S o u t h zo n e i n cl u d e s :
F T h i s zo n e Si n d
F B a l u c h i s ta n
R e gi o n s
T h e re a r e si x re g i o n s o f PEL i n Pa k i s ta n . Th e y a r e : 1.
2.
3.
4.
5.
6.
K a ra ch i
Lahore
Mu l t a n
G u j ra n wa l a
R a wa l p i n d i
F a i sa l a b a d
PROMOTION MIX ( APPLI ANCES)
AD V E R TI S IN G
40
T h e o b j e c ti ve s o f a d ve rt i s i n g a re :1 . To i n c re a se s a l e s
2 . To i n c re a se r e ca l l o f p ro d u c ts
3 . To re st o re m e ssa g e i n c o n s u m e r s m i n d
M E S S AG E FO R R E FR I GE R ATOR
A l l N e w P E L , Al l N e w Tec h n o l o g y, Al l N e w St yl e .
M E S S AG E FO R AI R C ON D I TI O N E R
E ve r y S e co n d Ai r - co n d i t i o n e r so l d i n P a ki st a n i s P EL , so we a re # 1
T Y P E S O F M ED I A
1 . E le c tr on i c M e d ia
I t i n cl u d e s T.V. i .e . G e o , AR Y e tc .
2 . P r i nt M e di a
(i )
N a ti o n a l
N e wsp a p e r
e.g.
Jang,
N e ws ,
D a wn a n d e tc .
(i i )
Ma g a zi n e s => H e ra l d , N e ws l i n e , b a n ki n g
b u si n e ss .
3 . O ut D oo r M e d ia
(i )
Boarding
(i i )
N e o n Si g n s
(i i i )
Tri Visi o n s
P E L u se s a l l t h e s e a b o ve m e n ti o n e d Me d i a Ac ti vi t i e s to p r o m o te i ts
p ro d u ct s.
41
I N C E N TIV ES F OR C U S TOM ER S & R E TAI L E R S

P E L u se s Pu sh a n d Pu l l St ra te g y fo r a tt ra ct i n g d e a l e rs a n d cu st o m e r s.
T h e m a i n a i m i s to p u sh d e a l e rs to se l l PEL p r o d u ct s a n d p u l l cu s to m e rs
t o b u y p r o d u ct s.
I N C E N TIV ES F OR D E AL ER S
1.
2.
3.
4.
5.
C r e d i t f o r si xt y d a ys
R s .4 0 0 /- Pe r se t i f d e a l e r se l l s t h e t a r g e t N o . o f se ts .
H a j j sc h e m e f o r d e a l e rs
C a r i s g i ve n to b e s t d e a l e r wh i ch s e t ta rg e t
D u b a i t o u rs .
C U S TOM ER
F o r cu st o m e r P EL g i ve s s o m e a d d i t i o n a l g i ft s wi t h p ro d u c ts i .e . Wal l
C l o ck , Watch e s.
P U B L IC R EL ATI O N I N G
I n p r o m o t i o n m i x P EL co n si d e r s va l u e o f p u b l i c re l a ti o n s h i p b e ca u se i t i s :
1 . Q u i te I n e xp e n si ve
2 . P u b l i c R e l a ti o n s h a ve m o re C r e d i t a b i l i t y t h e n p u b l i c r e l a t i o n s
3 . P u b l i c r e l a ti o n s ca n i n cre a se s a l e s i .e . sp o n so r sh i p s o f cr i c ke t
m a t ch e s.
BCG MATRIX
PEL divides its Strategic Business Units (SBUs) into the following divisions;
42
Appliances Division
Power Division
Telecommunication Division
Telecommunication Appliance Division
Power Division
The appliances division is considered as the Star as its market share as well as
growth rate is high.
The power division is considered as the Cash Cow for the company as its growth
rate is relative low but it has a great market share
The telecommunication division is considered as Dog because company seemed it

as not profitable and hence now company is not investing in this division.
PEL has no Question Mark in its BCG Matrix
COMPETITIVE STRATEGY
43
The competitive strategy of PEL is that it has a

wide range of products and at relative low prices.
PEL focuses on cost leadership strategy in its

power division appliances. The prices of its power
division appliances are high but they are of very
high quality. PEL has a competitive advantage of
its brand name.
PEL has high quality products both in appliances

and power division because most of the raw materials are imported from different countries
and these raw materials are of very high quality.
Market share of air condition
BUSINESS PROCESS ANALYSIS

Purchase
Raw Material
44
The raw material is processed in the production departments of different products

andcontrolled by their divisions. This raw material is put into the process where the
qualitycontrol inspection is occurred at every stage of production, and defected units
areseparated from the good units. The quality checked products are packed and then
sentto the finished goods stores in the factory. The finished goods store
departmentsmaintain the inventory of the finished goods and issue a units receiving note
toproduction department as a proof. On the other hand units received are entered in
thesystem of network of the company.
The Sales department receives orders from the customers and confirmed the orders ifstock
are available in the factory. The units from finished goods store are sent to thecustomers by
the dispatch department after receiving request from the Sales department.
DIVISION OF LABOUR
In Pak Elektron Limited (PEL), two types of employees hired
1. Permanent Workers
2. Temporary Workers
Temporary workers are employed for about 6 months, and when the seasonconcludes
the temporary workers are laid off. Temporary workers are employed ashelpers and
assigned those jobs where skills are not required.
45
LEA
RNI
NG
AS
AN
INTE
RNE
E
PART
3
46
DUTIES
Throughout the duration of our Internship, we were assigned the
following tasks which we were supposed to work on:
During first week, we observe company culture, rules and

regulation, norms and the working of Marketing
department (AD). We observe marketing manager
Mr.Kashif Jafri and Mr. Shahid.

We were asked to check the cards and envelop for if there
are some card with wear and tear and not printed well.
We were assigned a task to prepare a PowerPoint presentation for marketing
department for their meeting where they have to discuss the current situation of
product and market.

Task assigned to us was to calls the customers and inform them about the delay in
the delivery of their orders. We called several customers and inform them the
reasons of delaying their orders. As there were some changes taking place in
government policies and taxes, so our finance department took some time to finalize
the price list. So supplies delayed for about 4 to 6 working days.

We visited many departments for different assignments like accounts and finance
departments for signing of different documents and delivery of various documents.

The most important task that was assigned to me was to conduct a survey for
Appliance department regarding the products at display and sales of various
appliances at dealers shop.

We have written a proposal on how to conduct this survey and what areas I will
cover in it and receive an acceptance from the Marketing manager to conduct the
survey.
We also have designed a questionnaire to obtain the desire level of information form
the survey.
We have visited 25 dealer shops to conduct this survey.
We also have joined staff in promotional activity at Hyperstar for its home appliances.
ACCOMPLISHMENTS
47
The most promising accomplishment at PEL was to do a field work

and to conduct a survey for Appliance Department.it was really a
great experience for me.to deal with giants of dealer market and to
fetch the desired information was really a tough job at the start but
after some time everything settled and went smooth.
We are going to share the detail of this survey below:
We have asked to conduct survey of 20-25 dealers shops. The
main purpose of the survey is to check for the displays of various shops and to check in
what ratio Pel products and competitors products were there and to know the sales of all
the brands available at the display.
We have submitted a proposal to Mr.Kashif Jafri about this research and he had accepted
it. He asked us to do a sample survey to find out if all the required information can be
obtained from it.
We have completed the survey and let it be checked by him. All the required information
cant not be obtained by it so we have made some amendments in the questionnaire. We
have conducted our sample survey at Abidmarket which is a well-known market in term of
home appliances shops.
After marking amendments in the questionnaire we have surveyed Walton, Ghazi Road,
General Hospital, Main Bazar, Ismail Nagar, ChungiAmarsidu, Peco Road, College Road
areas to obtain information regarding the survey.
We have presented the finalized report to Mr.Kashif jafri.
48
NEW KNOWLEDGE ACQUIRED

Some new things, which we have learned here, are:
The way to work individually as well as in groups under relaxed and

stressful environment.
Patience is very important in dealings, as anger can lose your customer.
To increase your sales and stay in competition with top brands it is necessary to
keep your dealers happy by giving them incentives.
The way to deal with your customers complaints in such a way to satisfy them.
The way to behave in business environment
Importance ofdocuments
Importance of shelf spacing of your products in market.
We have learnt how much promotional activities an integral role in the growth of a
product.
How to deal with people and how to obtain information from them.
How to work in a group and how to lead it and how to tackle minor and major
disputes.
49
PROBLEMS ENCOUNTERED
As such we didnt face any type of problem during our
internship. The only thing I found problematic was that it was a
bit harder for me to take time from employees to teachme new
things and the working of Appliance department from their
extremely busyschedule. Initially, we had difficult time in
forming relationship with staff and felt uncomfortable in the
new place with new people. However, after some time, we
becamea part of it just like everyone else and felt completely
comfortable. The real problem we faced in the PEL was the
difference between what we had learnt from the books and what was in practiced. Practical
application of the theories learnt during academicsessions was a great challenge, which we
had overcome by the cooperation of the staff.
There was also a problem that we have assigned a field work, a survey, and for that reason
my stay at the office was less than we expected and thats why we have learned a little
about the department working instead we have learnt more about the market and the
product image in customers mind and the dealers as well.
HOW EXPERIENCE IMPACT MY CAREER

50
Our internship experience has given me a realistic

preview of practical life. Now we feel that we better
prepared to enter the world of professional work. We
have come to know and been appreciated by a number of
professionals who are lending their services to the PEL
for more than a decade. We feel honored that we have
worked with such experienced professionals. We must
admit
that
such
interaction
in
this
respectable
professional community will help me in seeking out good

job opportunities in the near future.
Our knowledge of Microsoft Office especially MS Excel came in handy while
working here in PEL, as daily reports were made in Excel .Our knowledge of
Marketing Research and Marketing Strategies helped us while working with
Mr.Kashif Jafri (Marketing Manager) whatever we asked from him, he was so
kind to guide us in detail. So, our urge for learning in field of Marketing
Research and Marketing Strategies helped me a lot. We learnt in Business
Communication how to interact with clients/peer groups/customers with good
communication skills, which came in handy, here in PEL. We realize the
importance of research work for any organization by seeing its application.
Each task we performed was a different experience in itself. By the end of it,
we must say I realize my potentials, we have realized that practical life is not
so easy after all; it takes a lot of hard work and devotion, and not to forget
time. And we now know that if we want we can make things possible, and we
also know how good it feels to having accomplished something and being
appreciated for it. We definitely have learnt things, which will impact our career
and our character.
RECOMMENDATIONS
51
After looking into different weaknesses and future threats

We recommend following steps to PAK Elektron in order
to cope with future problems:
PEL must introduce a true decentralize setup in the organization, giving everyone
some grounds for decision making, increase employees involvement in dayto day
planning and retain back the morale plus satisfaction of the employees.
PEL should also consider the importance of Advertisement for its microwaves and
Splits, which plays an important role in increasing awareness, customer
preferences and in maximizing market share. It should also use some
promotional tools like organizing shows, schemes, gifts, etc.
PEL should at least ensure same level of growth and packages amongemployees
working at each level like its competitors are offering to its employeesin order to
retain the old employees as well as to attract new talent.
PEL should also tighten up its monitoring and inspection Networks in order
tominimize the miss-utilization of the resources by the employees and verify thedata
accuracy gathered by them.
PEL should also form especial skilled and efficient sales collection team inorder to
collect Receivables amount from the retailers and the wholesalers especially from
ones located in Karachi, Lahore and at least reduce their payment time period from
180 days to 90 days. Further should also negotiate with them to ensure that we care
for you and for the best in time delivery we need you to be more responsive in
making early payments to the company.
PEL should also ensure equal incentives to all the distributors in order toincrease
their willingness to offer more shelf space to the company.
52
PEL should also negotiate with the public leasing institutions in order to buydesired
equipments such as machines, cars at low interest rates than private
ones. Similarly ask them to introduce new packages to the company like private
sector. This will significantly help it in having a tight control over cost of
production.
PEL should also take care of the Economical, Political Factors such asinflation,
Government Policies while projecting the Cost of Production for future because this
will help the company in entering into a fix price contracts for the purchases of
material at a single time similarly than it will be able to charge stable prices to its
customer.
PEL should also adopt any other methodology for projecting upcoming time period
sales which should include seasonal factors consideration in order to getaccurate
future estimates rather than using that silly old average methodology.
Pel should also increase the efficiency of its after sales services department because
after conducting survey I have found this to be the root cause of dealers being rude
with Pel.
Pel should also increase the shelf space for its products because right now it has the
least shelf space in dealers shops.
BIBLIOGRAPHY
We were not alone in making this report many people were directly and in directly involved
in this effort. Where ever we went to get the information related to Pak Elektron Limited, We
53
got the positive response. In the organization there were many

persons who should be getting words of thanks form our side
We are very grateful to the following persons for helping us to
complete our internship under their guidance and supervision.
http://www.pel.com.pk/
http://www.google.com.pk/
Mr. Kashif Jafri (Marketing Manager Appliance Division)
Mr. Sohaib Irfan (Marketing Executive)
Mr. Tanveer Ahmed (Marketing Officer)
Mr. Waseem akram (Merchandiser)
Mr. Abrar Bajwa Marketing Executive)
Mr. M.Afraz (Media coordinator)
Above all we are especially thankful to our ALLAH who always helped us out in tough times
and helped us in compiling this Report.
GLOSSARY
PEL Pak Elektron Limited
AD - Appliance Division
AD - Appliance Department
IEC- International Electrotechnical Commission
54
R S M R e g i o n a l Sa l e s Ma n a g e r
55

PEL Research PU Group Aug-11

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PAK ELEKTRON LIMITED.

14-km, Ferozpur Road, Lahore

UNIVERSITY of the PUNJAB, Lahore

Pak Elektron Limited

Pak Elektron Limited

Pak Elektron Limited

We are extremely grateful to Allah for granting me

the opportunity, perseverance and

Pak Elektron Limited

Pak Elektron Limited

HISTORY AND BACKGROUND

Pak Elektron Limited

Pak Elektron Limited

Pak Elektron Limited

Pak Elektron Limited

PEL-LG STRATEGIC PARTNERSHIP

Pak Elektron Limited

technology of LG. LG Electronics has 30 R&D centers globally and

Pak Elektron Limited

The company comprises of two divisions:

Pak Elektron Limited

manufactures Transformers upto 5000KVA capacity. These oil-immersed transformers

Pak Elektron Limited

PEL CHRONOLOGICAL LAUNCH PRODUCTS

Pak Elektron Limited

AEG West Germany

PEL was taken over by

SILTAL SPA Italy

PEL Deep Freezers

PEL NECCHI Fractional

ABB, Power T&D

PEL DAEWOO Color

Carrier Window & Split

Type Air Conditioners

PEL Split type AC

Meters & Split AC

Carrier Corporation USA

Samsung Window & Split

PEL Single Phase Watt

PEL Washing Machine &

PEL Generator & Mini

Pak Elektron Limited

Unilever Deep Freezer

Kit import from GALANZ.

PEL Water Dispenser

New Microwave Oven at

Pak Elektron Limited

Chairman / Chief Executive Officer

Mr. Muhammad Abdullah HaroonSaigol

Chief Financial Officer

Pak Elektron Limited

(A member firm of Deloitte Touche Tohmatsu)

Pak Elektron Limited

Pak Elektron Limited

Finance & Accounts

Pak Elektron Limited

Pak Elektron Limited

HIERARCHY OF MARKETING APPLIANCES DIVISION

Description of Marketing Departments

Pak Elektron Limited

Marketing department is a blend of following departments:

Customer Service Department

Pak Elektron Limited