Introduction

Syed Adeel shah

MBA
Section “B”
Semester 2nd
PEL (Pakistan Elektron Limited)
 Established in 1956 with technical
collaborations with M/S AEG Germany

 Take over by Saigol Group of Company in

October, 1978

 16th company in Pakistan with ISO

certification in 1997
PEL (Pakistan Elektron Limited)
 Appliances  Power Division
Division
Consists of home appliances Consists of power related
manufacturing products

 Deep Freezer  Energy Meter

 Refrigerator
 Micro Oven
 Air Conditioner
 television
 Transformer
 Switchgear
 Kiosk
 Shun Capacitor
 Compact Station
Marketing Plan for Hybrid Split
Specification

 Product Line: Air Conditioner

 Brand Name: Hybrid Split
 Product Division: Appliances Division
 Product Features: Cooling + Heating
 Product Category: Split
2.0 Situation Analysis
2.1.1
Target Market
Market Summary
 Government
 Serving customers for last 57 Institutions
years
 Significant improvement in sale
volume.  Private Institutions
 13% Market share for split unit
Market Share
 Households
PEL

Mitsubishi

Waves

Dowlance

L.G

Others
2.0 Situation Analysis
2.1.1 Market Segmentation

Segments Variables Selection

Major cities of Pakistan especially

 Geographics Lahore and Karachi in start.

Male/Female, young/aged,
profession/Non-professionals,
 Demographics Urban and especially Rural.

Sign of identification, unique brand,

 behavioral occasion, user status
2.0 Situation Analysis
2.1.2 Market Needs
 Quality
 Affordability
 Durability
 Availability
 After Sale Service
2.0 Situation Analysis
2.1.3 Market Trends

Major portion of the population has tendency to have AC.

The behavior factor contributes more here in Pakistani

society. Because households wish to appear more smart

than their neighbors.

2.0 Situation Analysis
2.1.4 Market Growth

The industry is experiencing a phenomenal growth in last

three to four years. Three years back the total demand
for split units was 18000 Units/year which rapidly
increased to 28000 Units/year 2006-07. in 2008 the
demand reached to30,000 units, units and it is
expected to reach 1,00,000 units in 2009-10.
2.2 SWOT Analysis
2.2.1 Strengths 2.2.2 Weaknesses

 An innovative idea in the market  Dependence on foreign

suppliers
 Efficient and cost effective product
 Easy installation  The difficulty to aware our
target customer
 Sale and distribution through own
channels  Fund raising problems

 Skilled and efficient labor force  Lack of local skilled labor

 Recognized brand name  The training of the local

personnel
 Low price
2.2 SWOT Analysis
2.2.3 Opportunities 2.2.4 Threats

 Growing industry for the same  Competition from other

products established companies

 Chances to capture the whole  The failure of the product being

market being innovative new in the market

 The cost will become less in the  The downwards turn of the
future economy in the near future

 The sale of other products may  The recognition of the product

increase in the future from all target customers
2.3 competition
The list of our already existing competitors
includes

 Mitsubishi 34% M/S

 Waves 7% M/S
 L.G 20% M/S
 Dawlance 7% M/S
 Philips
 Orient
2.4 Services
PEL will provide the customers attractive
services in form of

 On time delivery

 Free installation

 Timely contact

 Warranty

 Product installation video disk and user

manual
2.5 Key to Success

The success of the product will depend upon

the recognition of the product, compatibility

of the product, satisfaction of the customer

and reliability from the customer side.

2.6 Critical Issues

 Contradiction among customer satisfaction and

company objectives

 Law and order situation in the country

 The correct measurement of the customer

satisfaction level
2.7 Channels
Already existing authorized dealers across the
country

 Bahawalpur  Mirpur - AJK

 Batkhela  Multan
 Burewala  Okara
 Dera Ghazi Khan  Peshawar
 Dera Ismail Khan  Quetta
 Faisalabad  Rahim Yar Khan
 Gojar Khan  Rawalpindi
 Gujranwala  Sargodha
 Gujrat  Sheikhupura
 Hyderabad  Sialkot
 Karachi  Sukkur
 Lahore  Wah Cantt.
2.8 Macro Environment
 Technological

 Socio cultural

 Political legal

 Demographic

 economic
3.0 Marketing Strategy
To achieve the goal of providing

 Right product at right time at right

price for the right people
3.1 Mission/Vision
Vision
 To market lines of high quality home appliances and
power division products at affordable prices that
satisfy consumers in the fast growing electronic and
power segment while providing challenging career
opportunities for employees
Mission
 To serve our customers beyond their expectation by
providing them qualitative and innovative product at
reasonable and affordable prices through effective and
efficient use of resources.
3.2 Marketing Objectives
 Decreasing per unit cost
 Increasing efficiency of the product
 Increasing of sale for both seasons
 Increasing in the number of the loyal
customers
 Capture a great portion of market
shares
3.3 Financial Objectives
 Increase in the revenue of the
company from 3 to 4 percent
 Maintain enough budget for
promotional purposes
 Decrease in the extra cost on the
product and services
 Spending on research and
development activities
3.4 Target Markets
 Upper Middle Class

 Middle Class

 elite
3.5 Positioning
On the basis of removal seasonal
barrier.

Positioning Statement:
 Garmi Ho ya Sardi Hum Sath Nahi

Chortai
3.7 Marketing Mix
Product

 Free Installation Kit Compressor Warranty

 Auto restart function
 Environment friendly
 Anti-rust outdoor unit
 Easy-cleaned panel
 Self diagnosis and auto-protection
 Two-direction air flow (SLR)
 Remote control system
 Trapeziform Inner groove tube
 Hydrophilic aluminum fin
3.7 Marketing Mix
Design of Hybrid Split
3.7 Marketing Mix
Parts and Functions
3.7 Marketing Mix
Services and Service Marketing

 Informative bill boards

 Participation in social activities

 Sponsorship of different kind of informative talk

shows

 Donation to different trust and social welfare

organization like SAHARA Trust and Shoukat Khanam
Memoral Hospital.
3.7 Marketing Mix
Pricing

 Retail Price 2 Ton Rs. 48,000

 Retail Price 1.5 Ton Rs. 35,000

 Retail Price 1 Ton Rs. 25,000

3.7 Marketing Mix
Promotion

 TV 40% of total promotional budget

 Radio 03% - - -
 News paper 10% - - -
 Bill boards and Banners 20% - - -
 Internet 01% - - -
 Cable Network 25% - - -
 Magazines 01% - - -
3.7 Marketing Mix
Services

 Installation
 Repairing
 Warranty
 Tool free No’s
 Customer Manual
 Installation video disc
3.7 Marketing Mix
Channels of distribution
 Already existing Authorized Dealers that are spread over
the country
3.8 Marketing Research

 Marketing research can be conducted

through simple and cost effective tools like
questionnaire, Phone etc. in the starting of
launching the product.

 Research can also be conducted on

irregular basis if there is problem or
opportunity for the business,
4.0 Financials/ Budgets and Forecasts

4.1 Break Even Analysis

Break Even point is achieved in 2nd year of sale

As Break Even = Total Fixed Cost / Selling Price – Variable Cost
499800 / 25000 – 23215 =280 units

When we sell 280 units we will achieve break even point

and such achievement is expected in second year of sale
4.0 Financials/ Budgets and Forecasts

Break Even Schedule

Total Variable Cost
Total Units * variable cost
280 * 23215 6,500,200

Contribution Margin
Total Units * Profit Margin Per
280 * 1785 499,800
Unit

Total Fixed Cost 499,800

Break Even Point (0)
4.0 Financials/ Budgets and Forecasts

4.2 Sale Forecast

Profit Margin = Rs. 2,000

Sale Forecaster for Dec, 2010= 25000*200=5,000,000

Sale Forecaster for Dec, 2011= 25000*280=7,000,000

Sale Forecaster for Dec, 2012= 25000*440=11,000,000

 4.0 Financials/ Budgets and Forecasts
4.3 Expenses Forecast
Advertisement and Promotional Cost (for three Years)
Television
10,00,000
Cable Network
6,25,000
Bill Board
5,00,000
Magazines
25,000
Internet
75,000
Radio
25,000
News Paper
2,50,000
5.0 Control

 Comparing customer satisfaction level

with determined level

 Assessing sale proceeds

 Regular check up of production

process