PEL Export Marketing Plan

Pak Elektron Limited.

Export Marketing-PEL



Group MembersUmer Shahzad 17Muhammad Usman 20Hafiz Farhan Saleem 28Umer Farooq 45Sajjad Zafar Pirzada 52Muhammad Umar Farooqi 145

Global Marketing


Introduction By Muhammad Usman Roll # 20


TEXTILES

Kohinoor Industries

Azam Textile Mills

Saritow Spinning

311,678500569

SECTORS COMPANY

TURNOVER

MUSD 2007-08

EMPLOYEES

(Nos.)

ENGINEERING

Pak Elektron

Ltd.232 7,036

FUEL & ENERGY

Kohinoor Power

Kohinoor Energy

86 98137

TOTAL 349 10,018

PEL is a flag bearer of Saigol Group

PEL Introduction


PEL Introduction

• Pioneer manufacturer of electrical goods in Pakistan• One of the oldest and amongst the leading Home Appliances

Manufacturer and Distributor in Pakistan.• The company has an annual turn over of Rs 20.3 billion.• It was established in 1956 in technical collaboration with M/s AEG of • Germany.• In October 1978, the company was taken over by Saigol Group of

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

towards the advancement and development of the engineering sector in Pakistan.



Historical Overview



Company’s operations are divided into two divisions:

1) Power Division 2) Appliances Division

COMPANY OPERATIONS



PEL Product Line



PEL Product Line

DISTRIBUTION TRANSFORMER

POWER TRANSFORMER

DRY TYPE TRANSFORMER

SWITCHGEAR

PMT TRANSFORMER EPC CONTRACTINGExport Marketing-PEL


CERTIFICATION

Source: www.pel.com.pkExport Marketing-PEL


ChairmanDirector Operations

Managing Director

Power Division

Sales & Marketing

Manufacturing

EPC Contracting

Appliances Division

Sales & Marketing

Manufacturing

Finance

Finance / Accounts

Supply Management

QA&QC

HRD / IR&A

Internal Audit

PEL HEIRARCHI



Chairman BOD

Managers200

Executive670

Line Staff800

Workers4274

Management Level sat PEL



VISION

“To excel in providing engineering goods and services through continuous improvement.”

MISSION STATEMENT

To provide quality products & services to the complete satisfaction of our customers and maximize returns for all stakeholders through optimal use of

resources.

To focus on personal development of our Human Resource to meet future challenges.

To promote good governance, corporate values and a safe working environment with a strong sense of social responsibility

MISSION VISION



• Afghanistan• Kingdom of Saudi Arabia• Swaziland• Greece• Kuwait• Kazakhstan• Bangladesh• Yemen• Nigeria• Hungry

Exporting Countries



True reliable Partner Over Decades

Shanghai

Kazakhstan

Athens, Greece

- Saudi Arabia

- Doha/Qatar Arabian Gulf

- Abu Dhabi

- Bangladesh

- Nepal

- Mombasa Kenya

- Greece

- Kazakhstan

- Yemen

- China

- Afghanistan

Exporting Countries


Pak Elektron Limited.Export Marketing-PEL

Explore New Markets



First Impression


Product Development

Export Relay Control Panel To NigeriaExport Marketing-PEL


External Factors By Umar Farooq



• Economic Forces:– Devaluation of Currency– Interest Rate– Uncertain Economic Situation– Dumping Pricing.– Competition inside; China & Korea.– Competition outside; China, Korea, India & Turkey.– GST: 17%– Price Preference: 30% to the importing country.

External Forces



• Political, Legal & Govt. Forces:– Frequently Changes in tax laws– Unstable Political Environment– Energy Crisis– Local Rules: PPRA Rules.– International Rules: World Bank, ADB & JICA Rules.– “Lowest most responsive”.– No negotiations.– Bank Guarantee; 10% of Bid value.– Performance Guarantee; 10% of Purchase Order value.– Bound to Contractual agreements.

External Forces



• Technological Forces:– New Products.– Extended Services.– New Emerging Markets.– New Marketing methods.– Supply Chain Management.– Manufacturing Process & Techniques.

External Forces



• Social, Cultural, Demographic & Environmental Forces– Vary country to country

• Competitive Forces:– More than 50 competitors.– New Entrants.– Low pricing.

External Forces



SWOT ANALYSIS

OPPORTUNITIES

Expansion of Energy Sector

Increase in Population

Large Product Range

Globalization

Joint ventures, merger, acquisition or take over



SWOT ANALYSIS

THREATS

Strong Competition

Chinese Products

Grey Market

Devaluation of Currency

Obsoletion of Technology

Rapid Changes in Government Policies

New Entrants



Internal Factors By Farhan Saleem Roll # 28



Management Function Performed at PEL

PlanningDefining goals, establishing strategies to achieve goals, developing plans to

integrate and coordinate activities.

OrganizingTeam formation of each dept with the help of team leaderArranging and structuring work to accomplish organizational goals

Leading Proper vision and direction of team leaderWorking with and through people to accomplish goals.

ControllingMonitoring, comparing, and correcting work



PEL SWOT ANALYSIS

STRENGTHS

ERP Based Company International CertificationStrong Brand ImageNumerous Super Brand Award State of the art plantOne of the largest manufacturerStrong R&D DepartmentStrong After Sales ServiceCompliance of International Standards

New Transformer Factory



PEL SWOT ANALYSIS

WEAKNESSES

Financial Problem

Large overheads High PricesSystem Variation



Market Analysis By Umar Shahzad Roll # 17



Major Competitors of Appliances Products

1-LG

2-Samsung

3-Siemens

4-Haier



Major Competitors of Power Products

1-Transformer:

2-Energy Meters:

3-Switchgear:

4-Power Transformer:

5-EPC Project



BCG MATRIX

Distribution Transformers

Power Transformers Refrigerator

Question Mark Instrument Transformer Water Dispenser Floor Standing

Cash Cow

Energy Meters Switchgear Panel Split AC

Dog

Generators Washing Machine

Mar

ket

Gro

wth

Market Share

High Low

Hig

hLo

w



Export Documents

Certificate of InspectionCertificate of InsuranceCertificate of OriginCertificate of WeightCommercial InvoiceConsular InvoiceCustoms Form CF349Delivery Order/Dock ReceiptForwarder's Export InvoiceLetter of CreditLetter of DistributionLoss and Damage ClaimManufacturer's CertificateOcean Bill of LadingPacking ListPhytosanitary CertificationPower of AttorneyPro forma InvoiceShipper's Declaration for Dangerous GoodsShipper's Export DeclarationAutomated Export SystemShipper's Letter of InstructionTransmittal LetterAdditional Information Sources for Information about Documents


http://www.susta.org/export/documents.html


























2012 2013 Projected2014

150,000,000

207,242,587

400,000,000

Export



MARKETING MIX



PRODUCT

Physical products vary in their potential for differentiation.

– Features– Quality– Performance– Durability– Reliability– Reparability



PRICING STRATEGIES

– Different Price Range available – Added Internal features & Accessories– Penetrating Strategy for New Market– Market Pricing Strategy for local market



POSITIONING STRATEGY

PEL position its products on following positioning strategies:

• By Attributes

– Environmental Friendly– Losses Efficient

• By Competitors

– Different Ratings



PROMOTIONAL STRATEGIES

– Above the Line (ATL)• Electronic• Print• Radio

– Below the Line (BTL)• Outdoor• POS material• Incentives• Giveaways• Sales Schemes



PRODUCT LIFE CYCLE

PEL Company PEL Transformers

Introduction Growth Maturity Decline

Sales and Profits

TimeDevelopment Introduction Growth Maturity Decline

Sales and Profits

TimeDevelopment



DISTRIBUTION

Distribution network of all companies is very strong in this industry

MANUFACTURER

EXPORTER

CONSUMERS RETAILERS



CUSTOMER NEEDS

The basic needs desired by the target customers are as follows. Quality Product

Product range (colors, sizes)

Better Value for the price.

Warranty

Prompt and efficient after sales service



MARKET SEGMENTATION& TARGET MARKET

Utilities of exporting countries



PROMOTIONAL ACTIVITIES

Displays and Contribution at Exhibition Displays at Dealer Shop

Dealers Shop-board



ADVERTISING



Customers Interaction throughIn greeting Cards

PEL always remember its customers on every special day.

EID DAY 23rd MARCH New Year



Financial AnalysisBy Sajjad Zafar Pirzada Roll # 52



FINANCIALS

• Gross Sales: Rs. 20.3 Billion.• Net Sales: Rs. 17.7

Billion.• Gross Profit: Rs. 3.60 Billion.• Net Profit: Rs. 0.12

Billion.89%

11%

Gross Sales

Power DivisionAppli-ances Division



FINANCIALS



FINANCIALS



FINANCIALS



FINANCIALS



Summary of the Liquidity Ratio Comparisons

Ratio PEL Industry

Current 1.32 1.26

Acid-Test 0.82 0.88

> Strong current ratrionand weak acid test ration

indicates a potential problemin inventories account.

> Note that PEL has a relatively high level of inventories.

FINANCIAL ANALYSIS



Summary of the Liquidity Trend Comparisons

> The current ration for PEL has been declining & slowly rising

at the same time acid test ratio first declining and slowing rising.

> The current ration for Industry has been declining & slowly rising

at the same time acid test ratio first declining and slowing rising.

> This indicates inventories are a problem for PEL

FINANCIAL ANALYSIS



Summary of the Profitability Ratio Comparisons

Ratio PEL Industry

Gross Profit Margin 22.8% 16.9%

Net Profit Margin 1.8% 2.8%

Return on Investment 1.5% 3.5%

Return on Equity 6.8% 13.7%

> PEL profitability ratios have ALL been falling since 2007.

Each except Gross Profit Margin below the industry average

for the past three years.

> This indicates that COGS and administrative costs may

both be too high and a potential problem for PEL.

> Note, this result is consistent with the low interest

coverage ratio.

FINANCIAL ANALYSIS



Summary of the Financial Leverage Ratio Comparisons

Ratio PEL Industry

Debt to Equity 2.07 2.29

Debt to Assets 0.44 0.58

Total Capitalization 1.09 1.77

> PEL debt utilization and assets supports to debt relative

to industry is low.

> PEL long term debts also less than industry.

> That shows PEL debts utilization possition is very low

as compare to industry.

FINANCIAL ANALYSIS



Summary of the Financial Leverage Trend Comparisons

> PEL debt utilization tred stuck down as compare to

industry and than slowly rise.

> PEL assets support to debt financing is slowly down but

much down as compare to industry.

> PEL long term debt utilization trend also down.

FINANCIAL ANALYSIS



SUMMARY OF RATIO ANALYSIS

1. Inventories are too hihg.

2. A burden of financial charges.

3. May be paying off creditors too soon.4. Selling , general and administrative costs may be too high.

5. Less adminstrion performance.

6. Very poor profitability rates.

FINANCIAL ANALYSIS



Strategies/ObjectivesBy Muhammad Umar Farooqi Roll # 145



Focus on Long term Goal


Financial GoalsTarget of reducing financial cost from 13%

Strategic GoalsIncrease profitability and sales turnoverIncreasing the product line

Defined Goals at PEL



Strategic PlansCapture 10% more market share within next 2 years.To become the leading manufacturer of electrical goods in

Pakistan.

Operational Plans Introduce a wide range of Products.To achieve the desired targets with cost cutting

techniques.Efficient utilization of resources to maximize output.

Plan at PEL



Criticisms of Planning Main flaw in today's planning lies with the energy crisis

prevailing in the country. Due to its dynamic nature the changes in plans are very

frequent.

Effective Planning in Dynamic Environments Different plans including sales and production plans need to

be changed very often and is an ongoing process. Need to cater to market trends while planning and therefore

being static or fixed is of no use.

Contemporary Issues in Planning at PEL



Objective

Strategic:

Increase our ExportIncrease in production plant capacityRetain local market share.Lower production cost, not effecting the quality.Change in internal design.Superior on time deliverySuperior customer services.



Objective

Financial:

Lower factory overheads.Minimize liquidated damages on late delivery.Maximize profits.



Recommendations

1. They should retire their expensive loans.2.They should carefully study their competitors.3.As mentioned earlier company’s liquidity position is dismal. So they need to pay off their short term loans.4.Their operating cost is very high so they should control their operating expenses.5.There should be a continuous monitoring of performance. When performance deviates from plans one does not have to wait for the next periodic review to correct it. The supervisor and subordinate should discuss the situation immediately so the corrective actions can be taken at once in order to avoid the major disasters.6.Whether performance appraisal discussions are held monthly, quarterly, annually appraise should be clear about what he/she is doing right and wrong ,and how he/she can overcome there deficiencies for the future appraisal.7. Performance appraisal should be conducted in a way that employee should not perceive it as a fatigue or threat for there job but it should take it as an opportunity to add or contribute more value in work of there organization



Distribution Transformer Plant







Question and Answer



• www.pel.com.pk• www.wikipedia.com• www.slideshare.com• https://www.google.com.pk

References


http://www.pel.com.pk/

http://www.wikipedia.com/

http://www.slideshare.com/

https://www.google.com.pk/search?q=hierarchy&source=lnms&tbm=isch&sa=X&ei=Yg3BUpm6M-Xu0gXr34HYDg&sqi=2&ved=0CAcQ_AUoAQ&biw=1280&bih=845