Internship Report on PEL (2012)

Internship Report on “Pak Elektron Limited” 2012

Table of Contents

Preface......................................................................................................................................................5

Executive Summery.............................................................................................................................6

Background of PEL................................................................................................................................8

History...................................................................................................................................................8

Group Profile...........................................................................................................................................9

Kohinoor Textile Mills.......................................................................................................................9

Pak Elektron Limited (PEL).............................................................................................................9

Saritow Spinning Mills & Azam Textile Mills............................................................................9

Kohinoor Power Company Limited............................................................................................10

Kohinoor Energy Limited..............................................................................................................10

VISION AND MISSION OF PEL..........................................................................................................11

VISION STATEMENT........................................................................................................................11

MISSION STATEMENT.....................................................................................................................11

Corporate Profile.................................................................................................................................12

Board of Directors...........................................................................................................................12

Audit Committee.............................................................................................................................12

Company Secretary........................................................................................................................12

Chief Financial Officer...................................................................................................................13

Auditors..............................................................................................................................................13

Legal Advisors..................................................................................................................................13

Organizational Hierarchy of PEL................................................................................................14

Hierarchical Structure in Detailed.............................................................................................15

Over view of “Pak Elektron Limited”........................................................................................16

Power Division......................................................................................................................................16

Products of PD..................................................................................................................................17

Appliances Division............................................................................................................................18

PEL APPLIANCES LTD.....................................................................................................................19

PEL DAEWOO ELECTRONICS LTD..............................................................................................19

Products of Appliance Division...................................................................................................20

Syed Shaheer Hassan Rizvi


Refrigerators.................................................................................................................................20

Air Conditioners...........................................................................................................................20

Microwave Oven..........................................................................................................................20

Washing Machine........................................................................................................................21

Water Dispensers........................................................................................................................21

Generators.....................................................................................................................................21

DEPARTMENTS.....................................................................................................................................21

Trend Analysis......................................................................................................................................26

Vertical Analysis..............................................................................................................................26

Interpretation:..............................................................................................................................27

Horizontal Analysis.........................................................................................................................28

Interpretation:..............................................................................................................................29

Ratio Analysis.......................................................................................................................................30

Income Statement..........................................................................................................................30

Current ratio:....................................................................................................................................31

Interpretation:..............................................................................................................................31

Debt ratio:.........................................................................................................................................31

Interpretation:..............................................................................................................................31

Operating Profit Margin:...............................................................................................................32

Interpretation:..............................................................................................................................32

Net Profit Margin:............................................................................................................................32

Interpretation:..............................................................................................................................32

Return on Assets:............................................................................................................................33

Interpretation...............................................................................................................................33

SWOT ANALYSIS..................................................................................................................................33

Strengths...........................................................................................................................................33

Strong Brand Image...................................................................................................................34

Strong Dealer Network..............................................................................................................34

Strong Quality, Sale and Service...........................................................................................34

Market leader in WRAC (Window Room Air Conditioner)..............................................34



Number 2 in Refrigerators in Pakistan.................................................................................35

Strong Grip in Home Appliance..............................................................................................35

Strong Management..................................................................................................................35

Distribution of Authority...........................................................................................................35

Strong Research and Development Department.............................................................36

Good Customer Service............................................................................................................36

Public Limited Company...........................................................................................................36

Weaknesses......................................................................................................................................36

Lack of Effective Advertisement............................................................................................37

System Variations.......................................................................................................................37

Lack of Product Range..............................................................................................................37

Less Utilization of Capacity......................................................................................................38

Financial Problems......................................................................................................................38

Opportunities....................................................................................................................................38

Exploration of Market in Pakistan..........................................................................................39

Increase in Product Range.......................................................................................................39

Export Opportunity.....................................................................................................................39

Increase in Production Line.....................................................................................................39

Threats................................................................................................................................................40

Strong Competition....................................................................................................................40

China’s Product............................................................................................................................40

Price War........................................................................................................................................41

Slow Growth Rate in Pakistan.................................................................................................41

Instability of Government........................................................................................................41

Tax Department..........................................................................................................................41

World trade Organization.........................................................................................................42

Investor’s.......................................................................................................................................42

Project.....................................................................................................................................................42

Introduction.......................................................................................................................................42

Aims of research.............................................................................................................................42



General aim...................................................................................................................................42

Specific aims.................................................................................................................................42

Scope of research...........................................................................................................................43

Limitations.........................................................................................................................................43

Methodology.....................................................................................................................................43

Results of Research........................................................................................................................44

Findings..........................................................................................................................................57

Conclusion.............................................................................................................................................58

Internship Activities.......................................................................................................................59

Working with my manager in PEL.............................................................................................60

New Things Learned:.....................................................................................................................61

Recommendations..............................................................................................................................61

Effective Advertising......................................................................................................................61

Strong Check & Balance System...............................................................................................62

Reduced Receivable Time Period..............................................................................................62

Equal Incentive Schemes.............................................................................................................62

Need Strong Brand to win Customers’ Loyalty.....................................................................62

Better Product Attributes.............................................................................................................62

Increase of Advertising Budget..................................................................................................62

Seasonal Schemes & Gift Vouchers:........................................................................................63

Revolutionary Changes in Advertising Themes....................................................................63



Preface

Department of Management Sciences, The Islamia University of Bahawalpur

is making a valuable contribution in generating such business executives

who are serving in various fields throughout this world. The pre-requisite of

internship program is to make the students of B.B.A, aware of the practical

expertise and to acquaint them with the real management process. A six

weeks internship is an important part of this training. For this Program,

Department of Management Sciences assigned me to do an internship and I

chose to learn in PEL Lahore (Head office).

During a span of six weeks of training as intern I thoroughly observed the

functions of different departments of PEL (Pak Elektron Limited). As

apprentice I analyzed the basic working of PEL and especially its Marketing

(AD) department and summarize this in my internship report.

This internship report contains all the information about my work experience

with Pak Elektron Limited (PEL) which is the leading company in producing

electrical equipment and home appliance in Pakistan.



Executive Summery

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 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 by introducing wide range of quality electrical equipments and hoe

appliance and by producing hundreds of engineers, skilled workers and

technicians through its apprenticeship scheme and training programs. I did

my internship in Marketing AD department of PEL.

I learned a lot during my internship period. How to work individually as well

as in groups under relaxed and stressful environment. How to work under

someone’s supervision. How to manage affairs while launching new

products. 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.

During a span of six weeks of training as intern I thoroughly observed the

functions of different departments of PEL (Pak Elektron Limited). As

apprentice I analyzed the basic working of PEL and especially its Marketing

(AD) department and summarize this in my internship report.

Under the supervision of Mr. Suhaib Irfan Khan we carried out a research

regarding the “Home Appliance Brand Perception”

This general aim of this research is to find out the brand perception of home

electric appliance, and the perception of the customer about beliefs while

purchasing it. i.e., Refrigerator, microwave oven, washing machine, air

conditioner, and condenser, etc



This internship report contains all the information about my work experience

with Pak Elektron Limited (PEL) which is the leading company in producing

electrical equipment and home appliance in Pakistan.



Background of PEL

History


Pakistan.

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


Pakistan by introducing a range of quality electrical equipment and home

appliance and by producing hundreds of engineers, skilled workers and

technicians through its apprenticeship scheme and training programs. PEL is

now technology forerunner and market leader in providing new product and

services to meet ever changing and technology intensive needs of its

customers. PEL’s EPC contracting division delivers customs designed and

built HV and EHV grid stations, electrification of housing projects, industrial

parks and optimum solutions for power utilization to all kinds of industries

and commercial customers. PEL aims to maintain this competitive edge and

at the same time keep striving to improve it further by continuous R&D,

creating new knowledge and adapting to global development in technology

and product design. Ever increasing local market share, growing export

orders, numerous successful power projects and greater than ever base of

satisfied customers are evidence to these aspirations.

Works of PEL are spread at two facilities in Lahore, the historical city and

cultural hub of Pakistan. The two facilities cover an area of 1,033,200 Sq ft

and 614,252 Sq ft respectively. Both are equipped with latest technology,

state of the art testing facilities and environment friendly production process.

At the heart of PEL’s operations is its human resource. PEL’s employees are

its most valuable asset and PEL keeps them very dear.



Group Profile

In 1984, the Saigol migrated from Calcutta and initiated their business in

Lyallpur (later named to as Faisalabad), the textile city of Pakistan, under the

banner of Kohinoor Industries Limited.

Kohinoor Textile Mills

The Saigol set up the first major textile unit – The Kohinoor Textile Mills

under the umbrella of Kohinoor Industries Limited. The Kohinoor Textile Mill

has state of the art quality control from raw material to finished product

manufacturing. Its laboratory is top rated amongst the best laboratories in

Pakistan for testing raw materials, other inputs and yarn.

Pak Elektron Limited (PEL)

In 1978, the Saigol Group of Companies purchased major shares of Pak

Elektron Limited. At that juncture, the company was only manufacturing

transformer and switchgears. With the Saigol in management, PEL started

expanding its product range by entering into Air Conditioning manufacturing.

The PEL Group comprises two divisions

1. Appliances Division

2. Power Division

Saritow Spinning Mills & Azam Textile Mills

In 1987, the Saritow Spinning Mills & Azam Textile Mills were established

under the banner of Saigol Group of Companies. Saritow Spinning Mills is a

spinning unit with 25.440 spindles capacity. Facilities with the most modern

and efficient Japanese and European machinery, its knitted yarn is renowned

in the Far East and Europe for its fine quality. Azam Textile Mills is reputed

for its carded and combed yarn, which is quite popular for premier knitting

and weaving.



Kohinoor Power Company Limited

In 1991, the first power unit commissioned in Pakistan, in the Private sector,

was Kohinoor Power Company Limited. Its present production capacity is

15MW.

Kohinoor Energy Limited

1995, another power unit, Kohinoor Energy Limited, was established.

Kohinoor Energy Limited is a 120 MW power plant located on the outskirts of

the city of Lahore.



VISION AND MISSION OF PEL

Every organization has Vision and Mission Statement, which demonstrate

employees, customers and other personals related to business that where

they project themselves in coming years and what they want to achieve. It

reflects company image.

Vision statements and mission statements convey in a few words, what it is

that the organization exists in the world for. PEL’s vision and mission are;

VISION STATEMENT

“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

employees to meet future challenges To promote good governance,

corporate values and a safe working environment with a strong

sense of social responsibility”



Corporate Profile

Board of Directors

Mr. M. Naseem Saigol Chairman/ Chief Executive

Mr. M. Azam Saigol

Mr. Murad Saigol

Mr. M. Zeid Yousaf Saigol

Mr. M. Abdullah Haroon Saigol

Mr. Haroon Ahmed Khan Managing Director

Mr. Syed Zubair Ahmed Shah NIT Nominee

Mr. Akbar Hassan Khan NBP Nominee U/S 182 of the

Ordinance

Ms. Tahira Raza NBP Nominee U/S 182 of the

Ordinance

Mr. Khalid Siddiq Tirmzi BOP Nominee U/S 182 of the

Ordinance

Mr. M. Khuram Khuwaja NBP Nominee U/S 182 of the

Ordinance

Audit Committee

Mr. Azam Saigol Chairman/Member

Ms. Tahira Raza Member

Mr. Syed Zubair Ahmad Shah Member

Mr. Haroon Ahmad Khan Member

Company Secretary

Mr. M. Omar Farooq



Chief Financial Officer

Syed Manzar Hassan FCA

Auditors

M/s Yousaf Adil Saleem & Co. (A member firm of Deloitee Touche

Tohmatsu)

Chartered Accountants

Legal Advisors

M/s Hassan & Hassan Advocates


Chairman

Managing Director

Direct Marketing & Sales

GM Manufacturing (AD)

Sr. Manager HR&A

GM Marketing (PD)

GM Manufacturing

(PD)

Sr. Manager QC. (AD)

GM Marketing

(AD)

GM Finance

Sr. Manager H/A


Organizational Hierarchy of PEL


Chairman

Managing Director

Power Division Appliance Division

Director Operations

Sales Manufacturing Product Development

Quality Control & Assessment

Marketing Customer Services

Finance & Accounts

Industrial Relations

Human Resources

Internal Audits

IT


Hierarchical Structure in Detailed



Over view of “Pak Elektron Limited”


Pakistan. It was established in 1956 in technical collaboration with M/s AEG


of Companies. Since its inception, the company has always been contributing


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 programmers.

The company comprises of two divisions:

Appliances Division

Power Division

Power Division

Products manufactured in Power division are Transformers, Energy Meters

and Switch gears. Business in this division has suffered badly in previous

years due to problems in WAPDA and KESC. The most needed up gradation

of WAPDA’s distribution pilferage was started by the new management. The



energy meter production of single phase and three phases are moving

toward an optimum level. Plans for further improvement in productivity and

quality of our meters are also in progress. They shares for the supply of

distribution transformers to WAPDA have taken a quantum leap recently.

Accordingly, PEL is planning to increase our production capacity of

transformer plan through the techniques of improved production operations

including manpower utilization, product innovation, process reengineering.

We are expecting to obtain the production capacity level of 2000 transformer

per annum. A breakthrough in the Switch gear business has been already

achieved. PEL has successfully supplied a large order of Switch gear from

WAPDA against International Tender. Since entire business of Power Division

is now being carried out against L/C, international tenders or advance

payments, chronic problem of delayed payments has also been resolved. PEL

also has had the privilege of getting its equipment approved and certified

from well reputed international consultants such as;

Preece, Cardeq and Rider, England

Harza Engineering Company, USA

Snam Progeti, Italy

Societe Duzmezm, France

Miner & Miner International Inc. USA

Ensa, France

Products of PD

The Power Division of PEL has following products;

EPC Contracting

Power Transformer

Distribution Transformer

Dry type Transformer

Energy Meter

Switch gear



Transformer Services

Appliances Division

Business in appliances division has shown mixed trend but the Company is

finally on the right track. Crystal Refrigerator with Aero design and

Danfoss compressor with performance certification by Danfoss Germany

was launched in the February 1999. This has been received very well in the

market and our refrigerator sales have shown an increase of ver 125% since

1999. This thrust is expected to continue in the following year as a result of

company’s innovative approach in product development coupled with an

aggressive marketing strategy.

Deep Freezer tested and certified by Danfoss Germany and with improved

aesthetics has also been well received by the market. We have already been

supplying our Deep Freezers to Coca-Cola international and lever Brothers

and intend to continue our focus on institutional sales of this product.

Sales of window Air-conditioners is almost at the same level of last year but

have not reached the desired level with a pressure on prices and exchange

rates impact causing increase in losses to the subsidiary PEL Appliances

Limited. Main reason of this situation is a huge influx of imported product as

a result of change in custom valuation recorders allowing imports at during

prices and under invoicing. In addition supply of smuggled air-conditioners

also continued even after Government’s announcement to impose controls

on such activities. This is expected to discontinue after old stocks of

smuggled goods are exhausted and fresh supplies are not allowed.

The company in order to address the above situation has embarked upon a

major plan to improve product quality, widen product range, introduce power

efficient models, add competitive features like remote control, added filters

etc. And to improve the product a esthetically. After consistent efforts in the



recent years PEL have been able to develop a new range of models under

the brands name of ‘Energy Saver’. The cooling and balancing of this

machine is tested and certified by Copeland of USA. This has received a very

positive response from the market due to its efficient energy savings,

cooling, low noise, compact size, nature friendly features. PEL anticipates

that the company will make a breakthrough in the volume of Energy Saver

as what we have successfully performed in case of Crystal brand

Refrigerators. In addition a major exercise is being done to reduce material

cost and improve manufacturing process. Technical support and know how is

being obtained from international companies and foreign laboratories to

achieve this objective.

PEL APPLIANCES LTD.

Deep Freezers and window air-conditioners are the products of subsidiary

PEL It is expected that PEL Appliances Limited should move into a healthier

situation in the ensuing years.

PEL DAEWOO ELECTRONICS LTD.

Agreement for conversion of Sony Television at the plant was concluded and

PEL has started production of their products since May 1999. Under this

arrangement television kits are supplied to us by Sony and converted

televisions are delivered to them and marketed through their own network.

The US$ denominated conversion price for the televisions assembled by us is

charged on fortnightly basis.

Tariff structure on Televisions has been rationalized in the federal budget for

2001-2002 and as a result violability of locally assembled televisions has

considerably improved. Sony intends to take full advantage of this situation

and volumes of locally assembled televisions are resultantly expected to

increase manifolds. Agreement for conversion of VEGA flat screen television



has also concluded and we have very successfully started its production in

September 2000.

Products of Appliance Division

Appliance division has following products;

Refrigerators

PEL’s refrigerators are available in 6 series of different colors, models, prices,

and capacities. The series are as follow

Xpression Series

Premier Series

6-Series

Deluxe Series

Smart Series

Mini Series

Air Conditioners

The air conditioners are available in three types;

Split Air Conditioners

Window Air Conditioners

Floor Standing Air Conditioners

Microwave Oven

PEL also introduce model series of “PEL Silver line”

Microwave Oven. PEL presents 26 different models of oven

with different prices, models and capacities.



Washing Machine

PEL’s washing machines are available in different models. The

series are as follow;

Magic Clean PWM7700

Magic Clean PWM512

Water Dispensers

PEL also Introduce water dispensers. The main purpose to introduce

it is to increase their product line and give value to their customers.

Generators

From long time Pakistan facing energy crisis, at that time

introduction of PEL Generator is very positive steps toward

appliance sector to facilitate their customers. And they are

working more to increase their product line, produce quality

products, and give value to their customers and become market leader in

home appliance.

DEPARTMENTS

Majorly there are six departments in PEL, which are;

Marketing Department

Finance Department

Production Department

Human Resource Department

Administration Department

Research &Development Department



PEL head office Lahore consists of following departments;

Chairman Secretariat

Chairman Secretariat is headed by the chairman/chief executive

officer. The Chairman has his personal staff comprising of a Director

Staff, Protocol Officer, Private Secretary, Personal Assistant, who are

responsible to assist the Chairman in all the matters. Normally he visits

and takes key decision about their company matters.

MD office

Managing Director is one of the key post in any organization, its jobs

includes various administrative jobs this person actually developing

polices and implement them.

IR & Admin

Industrial Relations (IR) is an area where a person deals with labor,

laws, statutory. Here this department deals with administration,

workers and S1 (S1=supervisors)

Human Resource

This department deals executives appraisals, their training, hiring and

firing. They traditionally have been referred as personal management

or administration.

Gate & Security office

As, Security gate officers, also known as security guards, patrol and

protect property from theft, invasion, fire and illegal activity. Here PEL

give very much restrict and have high security system.

Dispensary

This department is established to handle emergency medical

treatment of PEL personals and works. There are trained medical

officer who can provided first aid in case of emergency. They also

conduct seminar time to time and tell workers and engineers about the

safety measurement and how to prevent from accidents.



Telephone Exchange

This department controls all telephone calls within the organization

and outside the organization too. This is very good exchange system.

Carrier

PEL collaborate with a company named ‘carrier’. It is very famous

foreign company deals in air conditioner. This department is connected

with them and deals all issues related to their project.

Marketing (AD & PD)

In this department all the sales and marketing campaign are designed,

marketing research is conducted, and competitors’ information is also

studied to make their plans according to them. They are working very

hard to make their brand name famous.

Power Projects

This department deals all projects related to power. They have good

relation with Wapda and other companies.

Internal Audits

This department internally audits all accounts in PEL. The company

internal auditors try to find out faults, fraud and corruption and inspect

that workers and company are following IFRS or not.

Commercial

This department deals all issues related to Excise, Taxes & duties, etc.

Moreover it also looks after bounded wear house. As most of raw

material they purchases is from abroad. So commercial department

controls all issues related to excise, duties and taxes.

QHSE

This department focuses on Quality, Health, Safety, and Environment.

This department works very efficiently and makes PEL culture friendly.

CMD



It is department, where they offer loans to their employees and

selected government peoples. They also give appliance products at

factory rate to their employees.

Finance

This department, develop financials for their executives. Annual report

for company is also developed by this department.

Accounts

This department manages all accounts. i.e., Accounts payables,

Account receivable, inventory, pay roll, etc.

Information Technology

This era is of IT, without giving importance to IT no organization can

succeed. They are working very hard to improve al system. After

updating ‘MIS’ system, “Oracle” they become more efficient and

effective.

Buying

Buying is one of the most important department, it purchase all raw

material which is used in production process.

Stores

This is very important department all the purchase items firstly go to

store department from their other department issue it.

Civil

They deal the maintenance of machinery and factory maintenance.

Manufacturing (PD & AD)

All the manufacturing concerns aspects are controlled by this

department.

Maintenance

The main purpose of this department is to ensure quality and

maintenance of machinery.

EMP



Energy Meter Power, is one of the mega project of PEL, where

production of EMP is executed and all matters related to it are control.

Switch Gair

Switch Gair department is also like EMP department, where switch gair

are produced and other aspects related to it are solved and worked.

CSD

It is department where they offer loans to employees and selected

government servants.

Imports

All imported materials are controlled by import department. They also

have all knowledge about their important importers and the products

they imported.

Exports

This department controls and deals all exports to other countries, i.e.,

Bangladesh, Afghanistan and few other countries of Africa.



Trend Analysis

Vertical Analysis

31-Dec-11

31-Dec-10

2010

2011

EQUITY AND LIABILITIES SHARE CAPITAL & RESERVES Authorized capital 2,500,00

02,500,0

009.7

910.5

6Issued, subscribed and paid up capital 1,668,26

41,668,2

606.5

37.04

Reserves 164,134 164,134 0.64

0.69

Un-appropriated profits 1,665,649

2,733,582

10.71

7.03

3,498,047

4,565,980

17.88

14.77

SURPLUS ON REVALUATION OF PROPERTY, PLANT AND EQUIPMENT

3,962,040

4,162,626

16.30

16.73

NON CURRENT LIABILITIES Long-term financing – secured 4,548,85

24,954,3

3319.41

19.21

Liabilities against assets subject to finance lease

21,841 14,776 0.06

0.09

Deferred taxation 1,973,350

2,751,515

10.78

8.33

Deferred income 56,069 74,935 0.29

0.24

CURRENT LIABILITIES Trade and other payables 1,478,88

91,496,4

895.8

66.24

Interest / mark-up accrued on loans and other payables

823,896 380,197 1.49

3.48

Short-term borrowings 6,174,860

5,895,077

23.09

26.07

Current portion of: - long-term financing 1,106,37

51,138,0

264.4

64.67

- liabilities against assets subject to finance lease

38,393 96,185 0.38

0.16

9,622,413

9,005,974

35.28

40.63

CONTINGENCIES AND COMMITMENTS 23,682,6 25,530, 100 100



12 139 ASSETS NON-CURRENT ASSETS Property, plant and equipment 14,089,1

8513,434,

70952.62

59.49

Intangible assets 314,874 457,744 1.79

1.33

14,404,059

13,892,453

54.42

60.82

Long term investments 4,495 13,447 0.05

0.02

Long-term deposits 54,636 75,515 0.30

0.23

CURRENT ASSETS Stores, spares and loose tools 109,582 108,405 0.4

20.46

Stock-in-trade 4,136.28 5,652,089

22.14

0.02

Trade debts – unsecured 3,774,283

3,924,772

15.37

15.94

Advances 625,559 680,611 2.67

2.64

Trade deposits and short-term prepayments 227,555 247,266 0.97

0.96

Other receivables 17,241 45,869 0.18

0.07

Other financial assets 7,491 26,810 0.11

0.03

Sales tax refundable - 169,589 0.66

-

Income tax refundable 198,105 349,560 1.37

0.84

Cash and bank balances 123,324 343,753 1.35

0.52

Total Current Assets 9,219,422

11,548,724

45.24

38.93

23,682,612

25,530,139

100 100.00

Interpretation:



In vertical analysis total assets and total liabilities are presented as base,

and all other items of balance sheet are presented as following items of

these basis. In vertical analysis also Company performance is good. Although

the increment or decreasing trend is not so expressive in vertical analysis,

but it can be easily analyse that overall performance of Company is good,

although total liabilities are increasing but total assets also increasing which

can overcome the effect of liabilities.



Horizontal Analysis

31-Dec-11

31-Dec-10

2010

(Rupees in thousands)

EQUITY AND LIABILITIES SHARE CAPITAL & RESERVES Authorized capital 5 2,500,00

02,500,00

00.00

Issued, subscribed and paid up capital

6 1,668,264

1,668,260

0.00

Reserves 7 164,134 164,134 0.00Un-appropriated profits 7 1,665,64

92,733,58

2-39.07

3,498,047

4,565,980

-23.39

SURPLUS ON REVALUATION OF PROPERTY, PLANT AND EQUIPMENT

8 3,962,040

4,162,626

-4.82

NON CURRENT LIABILITIES Long-term financing – secured 9 4,548,85

24,954,33

3-8.18

Liabilities against assets subject to finance lease

10 21,841 14,776 47.81

Deferred taxation 11 1,973,350

2,751,515

-28.28

Deferred income 12 56,069 74,935 -25.18CURRENT LIABILITIES Trade and other payables 13 1,478,88

91,496,48

9-1.18

Interest / mark-up accrued on loans and other payables

14 823,896 380,197 116.70

Short-term borrowings 15 6,174,860

5,895,077

4.75

Current portion of: - long-term financing 9 1,106,37

51,138,02

6-2.78

- liabilities against assets subject to finance lease

10 38,393 96,185 -60.08



9,622,413

9,005,974

6.84

CONTINGENCIES AND COMMITMENTS

16

23,682,612

25,530,139

-7.24

31-Dec-11

31-Dec-10

0.90

ASSETS NON-CURRENT ASSETS Property, plant and equipment 17 14,089,1

8513,434,7

094.87

Intangible assets 18 314,874 457,744 -31.21 14,404,

05913,892,

4533.68

Long term investments 19 4,495 13,447 -66.57Long-term deposits 20 54,636 75,515 -27.65CURRENT ASSETS Stores, spares and loose tools 21 109,582 108,405 1.09Stock-in-trade 22 4,136.28 5,652,08

9-99.93

Trade debts – unsecured 23 3,774,283

3,924,772

-3.83

Advances 24 625,559 680,611 -8.09Trade deposits and short-term prepayments

25 227,555 247,266 -7.97

Other receivables 17,241 45,869 -62.41Other financial assets 26 7,491 26,810 -72.06Sales tax refundable 27 - 169,589 -Income tax refundable 198,105 349,560 -43.33Cash and bank balances 28 123,324 343,753 -64.12Total Current Assets 9,219,4

2211,548,

724-20.17

23,682,612

25,530,139

-7.24

Interpretation:

In the above horizontal analysis , 2009 is the base year and 2010 and 2011

is using as following years, in which PEL’s overall performance is very good.

But last year 2011 they facing loss, although total assets of PEL are

increasing, however investment trend is little bit decreasing. Assets side is



showing a good trend of PEL. On liability side also a good picture is depicting,

but an increment in bills payable is showing an inverse effect. Current

account of PEL is increasing. Other liabilities which include many short term

liabilities are also increasing, so the net result on liability side is increasing

trend in total liabilities.



Ratio Analysis

Income Statement

Note Year ended December 31,

2011

Year ended December 31, 2010

(Rupees in Thousands)

Revenue 29 13,547,832 19,895,448

Sales-tax and discount 30 2,310,594 2,372,792

Revenue – net 11,237,238 17,522,656

Cost of sales 31 10,388,689 13,814,754

Gross profit 848,549 3,707,902

Other operating income 32 36,032 50,936 884,581 3,758,83

8Distribution cost 33 692,835 1,057,01

1Administrative expenses 34 682,815 751,075Other operating expenses 35 13,890 65,934Finance cost 36 1,413,055 1,623,61

1 2,802,595 3,497,63

0(Loss)/ Profit before taxation

-1,918,014 261,208

Provision for taxation 37 -649,495 72,184(Loss)/ Profit for the year -1,268,519 189,024Other comprehensive income

- -

Total comprehensive (Loss)/ income for the year

-1,268,519 189,024

Rupees Rupees(Loss)/ earnings per share Basic 40 -10.95 1.24Diluted 40 -10.95 1.19



Current ratio:

Current ratio= current assets/current liabilities

Table A

Year Current assets

Current liabilities

Current ratio

2010 11548724 9005974 1:282011 9219422 9622413 0.96:1

Interpretation:

The current ratio is one of the most common ratio analyses which I used to

measure of the solvency of firm and its ability to pay short term obligations.

As shown in the table in 2010 the PEL has 1:28 ration which means that if it

has 1 rupee it has to pay 28 paisa as liability that is nominal ratio.

Debt ratio:

Debt ratio= Total liabilities/ Total asset *100

Table B

Year Total liabilities Total assets Debt ratio 2010 16,801,533

23682612 70. 94%

2011 16,222,525 25530139 63.54%

Interpretation:

The debt ratio measures the proportion of assets financed by the outsider’s

money. The higher the ratio the greater the amount of other people’s money

being used to generate the revenue. The company has almost same ratio in

the two years that shows its assets are financed up to 71% by the credit

money that is not a good sign because it reduces the confidence of investors

and this is acceptable up to 64% only. This ratio shows that company has

taken so many loans to run its affairs.



Operating Profit Margin:

Operating profit margin=Operating profit /Revenue

Table C

Year Operating profit

Revenue O.P margin

20112010

884,5813,758,838

13,547,83219,895,448

6.53%18.89%

Interpretation:

The operating profit margin shows the percentage of each rupee remain as

profit after the deduction of costs and all expenses except interest and

taxes. The 6.53% shows that PEL is earning minimal. The higher the ratio

better the firm is earning. But the ratio is very low, which is not a good sign.

Net Profit Margin:

Net profit Margin=Net Profit/Revenue* 100

Table D

Year Net profit Revenue N.P margin20102011

189,024-1268519

19,895,44813,547,832

0.95%-9.36%

Interpretation:

The net profit margin shows the percentage of each rupee remain as profit

after the deduction of costs and all expenses including interest and taxes.

Higher net profit margin is preferable. PEL faces loss last year.



Return on Assets:

Return on Assets=Net Profit/Total Assets* 100

Table E

Year Net profit Total assets ROA20102011

189,024-1268519

2368261225,530,139

0.79%-4.96%

Interpretation

This ratio measures the effectiveness of management that how it uses the

available assets to generate revenue. Higher the ratio better is the position.

In cases of PEL there is decline from 0.79 %to -4.96% in the FY of 2011 which

indicates the bad performance of PEL.

SWOT ANALYSIS

The strengths, weaknesses, opportunities and threats of PEL are discussed

below:

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

Strong quality, sale and service

Market leader in WRAC

Number 2 in refrigerators in Pakistan

Strong grip in home appliances

Strong Management

Distribution of Authority

Strong research and development department

Free customer service



Strong Brand Image

PEL has created the strong brand image in the mind of the customers

through higher quality and low price. The customers of the PEL always prefer

to buy the PEL home appliances like WRAC split AC and refrigerators

whenever they wanted to buy. PEL is a popular company in Pakistan and

everyone knows about the PEL products and its brand. That’s why PEL selling

of WRAC are very high in the market than the competitors selling.

Strong Dealer Network

It is also the plus point for the PEL that it has also developed the strong

dealer network in the market. The dealers are always trying to sell the PEL

appliance to the customers because they know there are high margin in the

PEL products. They can get more money after selling the PEL products. The

management of PEL also provides more incentives to their dealers than their

competitors. Dealers are very conscious about the PEL products and always

guide the customer in buying the PEL appliances and tell them the more

qualities of PEL products than others products.

Strong Quality, Sale and Service

PEL is also in a strong position that it provides the superior quality to your

customers. It makes sense in the mind of the customers that PEL products

are better in quality than the other companies’ products. PEL also provides

the after sale service to their customers which delight the customers

satisfaction. It is another way to advertise the products because when

customer is highly satisfied then he tells the other ten persons that they

should buy the PEL products. It is the free publicity of PEL products that PEL

Company gains.

Market leader in WRAC (Window Room Air Conditioner)

It is another strong point that PEL is a market leader in WRAC. The window

room air conditioner is more demanded by the customers than its



competitor’s air conditioners because it has more durability in operating

systems and cools the room in few minutes. PEL always strives to provide

the innovative features in WRAC. PEL air conditioner is cheaper and has a

higher quality than others WRAC. That’s why customers always purchase the

PEL window air conditioner.

Number 2 in Refrigerators in Pakistan

After the Dawlance refrigerators, PEL has a second position in refrigerators

market. PEL always continuously strives to pursue the strategies adopted by

the competitors. As a consequence the price war starts among the

companies so each company reduces the prices and tries to increase the

sales of its refrigerators. PEL is also making efforts for the quality

improvements than its competitor Dawlance.

Strong Grip in Home Appliance

So PEL is one of the companies, which is having a strong grip in the home

appliance i.e. WRAC, Refrigerators, micro way Owen etc that is a strong point

for the company. PEL is penetrating the market by introducing the new home

appliance like Split Air conditioner and always trying to get the maximum

shares in the home appliance market.

Strong Management

It is another plus point that PEL has a strong management. Its employees are

more competent and fully skill and knowledge. They always cooperate the

top management in achieving the goals that are assigned to them.

Employees are well aware about the company objectives and so they are

committed to the development of company.

Distribution of Authority

Top management of PEL delegates the power to the subordinates for

achieving the marketing objectives in a specified time period. So every



manager has an authority that use in achieving the Goals. He can easily

handle the complaints of customers and try to satisfy them. So it is a strong

point for the PEL because there is decentralization of powers.

Strong Research and Development Department

PEL has a strong research and development department that is continuously

trying to develop new features for the products. R&D department spends

huge amount of money for the development of product. R&D makes research

for introducing the new product and asks the customers what they want

extra in our products. For this purpose they hire the highly qualified

employees in R&D department. That is another strong position of PEL.

Good Customer Service

PEL provides free customer service for one year to its customers. So the

customers always buy the PEL products due to its free service and it

becomes loyal customer for the PEL. PEL always provides help to their

customers for repairing the WRAC, Refrigerators and other items. PEL always

make efforts to satisfy the customers.

Public Limited Company

Although PEL is owned by the SAIGOL GROUP but its shares can be

purchased and sold in stock exchange market. So everyone who is interested

in purchasing the shares of PEL he can purchase. It is also called public

limited company. So people are more interested in buying the PEL products.

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 lose some competitive edge in

the following points:

Lack of effective advertisement



System variations

Lack of Product range

Less Utilization of capacity

Financial Problems

Lack of Effective Advertisement

It is a second major weakness of PEL that it they don’t make effective

advertisement campaign. That creates hurdle in selling the products and

customers cannot know the changes, which are made in products by the

company time to time. Company is not in a position that it made advertising

of all their products on a wide range because of its high cash requirement

towards the production side. Due to this problem company always make

efforts to develop strong relationships with dealers.

System Variations

It is also the main weakness of PEL that there are rapidly a change in polices

of selling the products. That’s creates problems for the selling team how to

sell the products to the dealers because the top management requires the

urgent amount of money. So selling team sells the products sometimes on

hard cash that will reduce the prices of products that gives the benefits to

the dealers and creates problems for the management.

Lack of Product Range

PEL has introduced more products of consumer items but there are more

needs to develop new consumer items like PEL washing Machines, Vacuum

cleaner and other items. Due to lack of product Range, Company cannot

earn more profit because consumers have high demand of these products

and they say that if company is investing in these products then we can keep

all PEL items and we never need to keep other’s company products.



Less Utilization of Capacity

Due to lack of finance a company cannot utilize all its resources on its full

capacity. It increases the cost of products per unit that decreases the profit

margin of each consumer item. Sometimes company cannot allocate the

resources according to the requirements of production department that’s

becomes the problem for the complete utilization of resources. For the

company it is also the main point of weakness.

Financial Problems

Sometimes PEL faces the financial problems because its stocks are so much

piled up in the stores that create the problem of cash flow because when the

stocks are not sold and the production is in process for 24 hours a day than

the company faces such problems. So company aggressively researches the

sources of cash and stresses the dealers to sell the PEL’s products to the end

consumers. Company sometimes sells their products on advance bases to

the dealers and gives them high margin of profit. That’s why a company is

facing the financial problems and company never pays attention on the

alternative resources that will help in reducing the stocks. That is a customer

demand and due to this it is the main weakness of company.

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



Increase in production capacity

Exploration of Market in Pakistan

PEL has the opportunity to explore the market in all over the Pakistan. Even

though PEL introduce its products in all cities of Pakistan but there are so

many places that have the capacity to absorb the PEL’s products. These

places are tribal areas in NWFP and northern areas of Punjab and NWFP,

central area of SIND. If company introduces their products in these areas

then it can get a large amount of profit and increase its market shares.

Increase in Product Range

It is the main opportunity for the PEL that it can increase its product range

that will be a more profitable for the company. There are more needs to

develop new consumer items like PEL washing Machines, Vacuum cleaner

and other items. Due to lack of product Range, Company cannot earn more

profit because consumers have high demand of these products. If PEL does

not take this opportunity then it will lose high margin of profit and market

share. It will reduce the fixed cost and increase the efficiency of the

employees.

Export Opportunity

PEL Company has also the opportunity to export their products in other

international countries like UAE, SAUDI ARABIA, and other Arabic and African

countries. It will not only reduce the dependence on one market but also

increase the market shares and profits. It will also help the company to

spread the fixed cost on all of its production that will reduce the total cost

and company will enjoy the high profit.

Increase in Production Line

Company can also increase its production line at the maximum level that will

increase the efficiency of the employees and also will reduce the total cost.

Sometimes company cannot allocate the resources according to the



requirements of production department that’s becomes the problem for the

complete utilization of resources. Company should look the market

conditions then it will produce their products.

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:

Strong competition

China’s product introduction in the market

Price war

Slow growth rate in Pakistan

Instability of government

Tax department

World Trade Organization

Investors

Strong Competition

There is very strong competition for the home appliance in the market. So

every company tries to come in the number 1 position for achieving the

maximum shares in the market. Every company adopts different strategies

for selling of the products. It reduces the profit margin of each company and

increase the bargaining power of the buyers who will demand higher quality

of products and lower cost. That is the main threat for the PEL Company.

China’s Product

China’s products are another threat for the Pakistani companies because

these products are cheaper than the Pakistani products. An even china

product not well in quality but it is comparatively in low prices than the

consumer’s home appliance that are manufactured by the indigenous



company. China products stress the indigenous companies to lower the

quality and prices that will not be profitable in the long run.

Price War

Due to stiff competition in home appliance market, which cause price war. So

every company reduces the prices of its products to increase the sales. It will

not only reduce the profit margin of the company but also reduce the quality

of products. So price war is the main threats for all the companies, which are

operating in these products.

Slow Growth Rate in Pakistan

There is also slow growth rate of home appliance in Pakistan that will

increase the stocks of the company. It becomes the burden for the company

that how to sell these stocks. Its main reason is that purchasing power of the

buyer is very low and it has no income to buy the expensive the home

appliance. It is also becoming a main threat for all the companies.

Instability of Government

The rapid changes in governments will become threats for the companies

because every government adopts its own policies for the industries. So it

increases the uncertainty for the investors who want to invest heavy amount

in their new projects. That’s become the major threat for the companies and

decreases the profitability. Due to fear of politically instability companies will

also not invest the heavy amounts.

Tax Department

Tax department is another major threat for the companies that will restrain

the business expansion. There is more complicated tax procedure for the

companies, which are interested to increase the investment in their

businesses. A tax department also asks the company from where it receives



the money and where this money will spend. Due to fear of heavy taxes

companies would not like to invest the heavy amount.

World trade Organization

World trade organization will give the permission in 2005 to each company of

home appliance to export their products after paying fewer duties or duty

free products. That will increase the pressures for the indigenous companies

to reduce the prices and increase the quality. It will increase the competition

among the foreign companies and indigenous companies. But our companies

also run under uncertainty conditions. This will decrease the morale of

indigenous companies.

Investor’s

There are few people who have big investments and they are importing the

Chinese product by their own Brand name. This is a very big threat for the

company and company is trying to create some attraction for the investors

to demotivate the investors.

Project

Introduction

Under the supervision of Mr. Suhaib Irfan Khan, 2 internees from Marketing -

Advertising department namely Shaheer Rizvi, Muhammad Ammar carried

out a research regarding the “Home Appliance Brand Perception”

Aims of research

General aim

This general aim of this research is to find out the brand perception of home






Specific aims

The research conducted aimed at finding out:

Which brand customers like more in home appliance

How did they get to know about their favorite brand?

How much they appeal from advertisement

What type of advertisement appeal the customers

How they rank the brand

How much sale person view affects

Product

Scope of research

Home Appliance Brand Perception questioner (ATBEQ) is adopted as a

measurement scale. Sample size of 53 people was taken from all over

Pakistan through phone calls and personal interviews.

Limitations

Time constraint for carrying out the research

Research could not be carried out all over Pakistan properly

Unwillingness of customers to cooperate

Not a good support from company

Lack of finance and budget

Methodology

The research was carried out using both Primary and Secondary resources.

Primary research methods such as questionnaires, personal interviews,

telephonic interviews, observations and focus groups were used. In addition

to that, we also made use of Secondary resources such as the internet,

search engines and different competitors’ websites, different surveys report

to explore about brand perception in home appliance.

(Questionnaire is in annexure A)



Results of Research

Findings of our survey are as follows;

Gender

Male 36 68%

Female 17

32%

About 53 respondent respond

us out of them 68% are male and 32% are females. The reason to include

this question is to check the pattern of purchasing between male customers

and females.

Age

18-25 43

81%

25—32 5

9%

33-41 3

6%

42-above 2 4%

Majority of respondent are lying from 18-25 and just 4% of them are above

42. The reason to know age of respondent is that, we want to know the

trends to purchase home appliance on basis of age.



Occupation

House wife 4 8%

Business man 2

4%

Employed 8 15%

Unemployed 0

0%

Student 39

74%

Others 0

0%

During our survey we filled out questionnaire from different peoples, from

them some are house wife, business man, students and others. It is very good

experience for us to interact with versatile nature of person.

Your monthly income

Zero-25,000 35

66%

25,000-50,000 11

21%

50,000-75,000 3

6%

75,000-Above 3

6%



The purpose to know about the monthly income of people is that we can find

out the relation of budget while purchasing home appliance, and also keen to

know people prefer quality or price.



Are you really willing to opt

Local Brand 19 36%

International Brand 34 64%

From the help of this question, we try to find out the trend of purchasing

that, customers prefer local brands or international brand. Normally

customer prefer international brand. From this survey we come to know that

about 34% people prefer International Brand.

Your Favorite brand in home appliance

Haier 12 23%

PEL 4 8%

Dawlance 25 47%

Orient 6 11%

Other 6 11%

From this question, we find out the favorite brand of the peoples. According

to this survey Dawlance is market leader having 47% liking and on number

second is Heier having 23% liking and very strange PEL has just 8% liking.



How did you get to know about your favorite brand?

Dealer 3 6%Word of mouth 7 13%Advertisement 9 17%Internet 6 11%Personal experience 28 53%Other 0 0%

From this we find out the way

customer make the image about their brand. And results show about 53%

people of customers prefer and take decision on basis of personal use.

Select the name of home appliance company; in which you are really

inspire with their commercial advertisement

Haier 15 28%

PEL 5 9%

Dawlance 19 36%

Orient 12 23%

Other 2 4%

From this question we find the impact of television ad of different brands.

Most of the people like Dawlance, after this they prefer PEL. Dawlance ad

campaigns have about 36% liking.



Which type of advertisement is appealing according to your mind

setup?

Most of the people like hygiene and product base advertisement. So,

company must prefer this type of ad.


Environmental +

Corporate ad

1

3

25

%

Computer graphic +

Funny ad

1

2

23

%

Product based ad 1

2

23

%

Hygiene + Product based

ad

1

5

28

%

Other 1 2%


You rank the brand on basis of - Maximum product range

People rank importance to mximum product range, they belive that a good

brand have maximum product range.

You rank the brand on basis of – Quality

People believe that quality of

product is the most important thing in any brand.


Least Important 8 15%

Somewhat Important 5 9%

Neutral 11 21%

Important 22 42%

Most Important 5 9%



Neutral 2 4%

Important 2 4%

Most Important 42 79%


You rank the brand on basis of - Price

People also give importance to price,

so from that we can say that most of

people are price conscious.

You rank the brand on basis of - After sale service

After sale service is one of the important factor people like in their brand.




Neutral 4 8%

Important 20 38%




Neutral 5 9%

Important 1

9

36%

Most Important 1

8

34%


You rank the brand on basis of - Designing (External Appearance)

You rank the brand on basis of - Features (Internal Appearance)




Neutral 11 21%

Important 18 34%



Somewhat Important

6 11%

Neutral 2 4%

Important 20

38%

Most Important 21

40%


You rank the brand on basis of - Advertisement

You rank the brand on basis of - Sale person view


Somewhat Important

12

23%

Neutral 11

21%

Important 13

25%





Neutral 17 32%

Important 18 34%

Most Important 2 4%


While purchasing home appliances, how much rank you

give to followings: - Brand Name

Least Important

5 9%

Somewhat Important

4 8%

Neutral 2 4%

Important 23

43%

Most Important 17

32%

While purchasing home appliances, how much rank you give to

followings: - Advertisement


Somewhat Important

13

25%

Neutral 12

23%

Important 20

38%

Most Important 2 4%




followings: - Sale person view


Somewhat Important

11

21%

Neutral 13

25%

Important 16

30%

Most Important 4 8%


followings: - Quality


Somewhat Important

0 0%

Neutral 3 6%

Important 7 13%

Most Important 4 75



0 %



While purchasing home appliances, how much rank you give

to followings: - Price


Somewhat Important

1 2%

Neutral 2 4%

Important 21

40%

Most Important 25

47%


give to followings: - After sale service

Least Important

0 0%

Somewhat Important

3 6%

Neutral 8 15%

Important 23

43%



Most Important 17

32%


followings: - Designing (External Appearance)



Neutral 8 15%

Important 21 40%



give to followings: - Features (Internal Appearance)


Somewhat Important

3 6%

Neutral 4 8%

Important 18 34%




Number of daily responses

I start this survey from 29th July, 2012 to 1st August, 2012. We do telephonic

calls, one to one interviews, and social network to compile this survey. This

general aim of this research is to find out the brand perception of home




Dawlance is most favorite brand people like the most.

Normally people prefer personal experience while they preference any

brand.

Advertisement is one of the most important factor people appeals.

And people like product base advertisement

Home Appliance Brand Perception questioner (ATBEQ) is adopted as a

measurement scale. Sample size of 53 people was taken from all over

Pakistan through phone calls and personal interviews.



Findings

Finding of this survey are;

PEL have to focus on advertisement

They have to increase their product line



Conclusion

Strong brand name has very good impression in consumer’s mind and they

usually prefer to purchase the same brand which they believe that is

awesome. As now a day consumer’s demand is for Haier & Dawlance

refrigerator. People have strong faith in these brand names. All other factors

like price, advertisement, word of mouth and even dealers are secondary

importance in this regard.

I believe that PEL is focusing more on Push Strategy & Dealers network

rather than Pull Strategy to create consumer demands in the market. PEL is

not targeting through effective advertising, coordinating marketing efforts

and using advanced interactive communication tools.

This is true that new technologies and formats create new ways for

marketers to reach & analyze consumers interactively, but still majority of

consumers in Pakistan is being affected by traditional media Television,

Magazines and Newspapers.

Although PEL is doing some advertising efforts but problem is that there is no

creativity in ads. No doubt PEL is making excellent products, but

unfortunately PEL is not realizing creative advertising is also important part

of their Marketing success. As I observed, recent media campaign done with

the famous model Hadiqa Kyani, which was too much criticized as it seems

to be the modeling shoots of Hadiqa for promoting its new albums instead of

company products. They also take Sharukh Khan in their ad but there ads

are not creative, they have to focus on creativity.


Pakistan. It was established in 1956 in technical collaboration with M/s AEG


of Companies. Since its inception, the company has always been contributing


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 programmers.

The company comprises of two divisions:

Appliances Division

Power Division

Majorly PEL have following department;

Marketing Department, Finance Department, Production Department,

Human Resource Department, Administration Department, Research &

Development Department

Internship Activities

I have performed these duties during my internship program (June 5 to

August 20, 2012). All doings and activities are check by my supervisor, Mr.

Kashif Jafri (Marketing Manager) and his team members Mr. Junaid Iftikhar

and Mr. Irfan Bashir (Brand Managers), Mr. Suhaib Irfan (Marketing

Executive) and Mr. Tanveer Ahmed (Marketing Executive) whom I report to.

Making a report on the up gradation of price comparison on

different products with the changes in the prices of competitors.

Feeding the data of warranty cards of various appliances from all

over Pakistan and making a database of new customers along with

their addresses, phone numbers and model sold.

Participated in the distribution agreement function between LG and

PEL.

Organizing the factory display centre by replacing the old products

with the new products on the visit of LG CEO.

Making gate pass (returnable and non-returnable) for the clerical

staff so they can take various appliances out of the factory for

marketing purposes and then bring them back if the gate pass is

returnable.



Sending advertising material (posters, stickers, wobblers, buntings,

banners etc) and letters or notification to all area sale offices of PEL

in Pakistan as per instruction of Mr. Tanveer Ahmad.

Randomly calling existing customers in different areas of Pakistan

and asking them if they were satisfied with the product they

purchased, and then make a customer satisfaction report.

I have also performed the duties of dispatch at Lahore for the

launch of LG in Karachi.

Preparation of monthly report Sales Plan vs. Actual Production.

Making list of price comparisons of different brands to PEL.

I have surveyed in the market and check the response of the

market after the new scheme of free generators with the purchasing

of Splits.

I have also surveyed in the market to know the prices and products

of our competitors.

I have handled all the affairs related to our MKTG (AD) store.

Working with my manager in PEL

During my 6-week internship, I was associated with Mr. Kashif Jafri , who is

the marketing managers of PEL and his team, Mr. Suhaib Irfan (Marketing

Executive), Mr. Tanveer Ahmed (Marketing Executive) and Mr. Afraz Ahmed

(Media Coordinator). Mr. Kashif Jafri has a very pleasant personality and I

found no fear in his team which make their efficiency up to mark. I never

faced any major conflict or was under stress while working under his

management. Mr. Junaid Iftikhar (Brand Manager) has never created stress

while taking work for me, but did say a few words when he was not happy or

when the work done was not up to his standards, and when he appreciated

my work he always gave a pat on my back saying ‘good’ by showing his

thumb impression. Overall it’s not easy for me to name the whole team over

and over again but all of Mr. Kashif Jafri’s team made my vision broader.



Thanks to them, for making me learn from the activities and from the

environment.

New Things Learned:

Some new things, which I learned here, were:

How to work individually as well as in groups under relaxed and

stressful environment.

How to work under someone’s supervision.

How to manage affairs while launching new products.

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.

How to coordinate with the other sales areas of PEL via

telephone/fax.

How to deal with your customer’s complaints in such a way to

satisfy them.

How to manage promotional materials.

How to manage TIME for multiple tasks at simultaneous Hour.

How to manage a communication among different departments.

How to manage things for display center for executives.

How empowerment play’s important role in the progress of the

company

Recommendations

After careful observation of competitive market conditions, I would

recommend some remedies for PEL in order to cope with future threats.



Effective Advertising

PEL should also consider the importance of Advertisement for its microwaves

and washing machines and water dispensers, which can play an important

role in increasing awareness, customer preferences and in maximizing

market share. They could also use some promotional tools like organizing

shows, schemes, gifts and so on.

Strong Check & Balance System

PEL should also tighten up its monitoring and inspection Networks in order to

minimize the miss-utilization of the resources by the employees and verify

the data accuracy gathered by them.

Reduced Receivable Time Period

PEL should also form especial skilled and efficient sales collection team in

order to collect Receivables amount from the retailers especially from ones

located in Karachi, Lahore and at least reduce their payment time period.

Equal Incentive Schemes

PEL should also ensure equal incentives to all the dealers in order to increase

their willingness to offer more shelf space to the company and should remain

loyal to the company to promote PEL’s brand.

Need Strong Brand to win Customers’ Loyalty

As I believe, brand name is very important factor in consumer buying

behavior, thus it is advised that PEL should work on the brand image. No

doubt PEL already has strong brand name but it has quite more to do, mainly

through advertising, to compete with Dawlance, Haier, and other local and

international brands.

Better Product Attributes

The company should add more features to their products. People are

attracted towards a product with unique features and something that would

make the customers feel that they have got their money’s worth.



Increase of Advertising Budget

PEL more focus should be on electronic media to get competitive advantage

over the competitors. They have to increase their advertising budget more.

Seasonal Schemes & Gift Vouchers:

Introduction of seasonal schemes can help to boost sales like Wedding

Packages, free gift vouchers in Eids, etc.

Revolutionary Changes in Advertising Themes

The company should change the advertising theme periodically and if

necessary they could also change slogan to attract and for the attention of

customers. They should show some creativity in all promotional activities by

introducing some catchy Slogans and interactive media campaigns to

address public opinion.



Home Appliance Brand PerceptionThis questionnaire is developed to find out the brand perception of home electric appliance, and the perception of the customer about beliefs while purchasing it. i.e., Refrigerator, microwave oven, washing machine, air conditioner, and condenser, etcGender

Male

Female

Age

18-25

25-32

33-41

42-above

Occupation

House wife

Business man

Employed

Unemployed

Student

Other:

Your monthly income lies in

Zero - 25,000

25,000 - 50,000

50,000 - 75,000

75,000 - Above

Are you really willing to opt.

Local Brand

International Brand



Your favorite Brand in home appliance

Haier

PEL

Dawlance

Orient

Other:

How did you get to know about your favorite brand?

Dealer

Word of mouth

Advertisement

Internet

Personal experience

Other:

Select the name of home appliance company; in which you are really inspire with their commercial advertisement

Haier

PEL

Dawlance

Orient

Other:

Which type of advertisement is appealing according to your mind setup

Environmental + Corporate ad

Computer graphic + Funny ad

Product based ad

Hygiene + Product based ad

Other:



You rank the brand on basis of

Least Importat

Somewhat Important

NeutralImportan

tMost

Important

Maximum product range

Quality

Price

After sale service

Designing (External

Appearance)

Features (Internal

Appearance)

Advertisement

Sale person view



While purchasing home appliances, how much rank you give to followings:

Least Importa

nt

Somewhat

Important

Neutral

Important

Most Importa

nt

Brand Name

Advertisement

Sale person view

Quality

Price

After sale service

Designing (External

Appearance)

Features (Internal

Appearance)



Thanks and Bet Regards,



Internship Report on PEL (2012)

Documents

Transcript of Internship Report on PEL (2012)