Introduction

Atterat Nawab

BBA Semester 7th

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 Division
Consists of home appliances manufacturing

Power Division
Consists of power related products

    

Deep Freezer Refrigerator Micro Oven Air Conditioner television

     

Energy Meter Transformer Switchgear Kiosk Shun Capacitor Compact Station

Brand 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

Market Summary
   Serving customers for last 57 years Significant improvement in sale volume. 13% Market share for split unit
M a rk e t

Target Market
 Government Institutions Private Institutions Households

 

L.G

Oth e r s

h a re
P EL M its u bis h i Wa v e s o la n e

2.0 Situation Analysis

2.1.1

Market Segmentation
Variables Selection
Major cities of Pakistan especially Lahore and Karachi in start. Male/Female, young/aged, profession/Non-professionals, Urban and especially Rural. Sign of identification, unique brand, occasion, user status

Segments

 Geographics  Demographics  behavioral

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 2008-09. In 2010 the demand reached to30,000 units, units and it is expected to reach 1,00,000 units in 2011-12.

2.2 SWOT Analysis

2.2.1

Strengths
An innovative idea in the market Efficient and cost effective product Easy installation Sale and distribution through own channels Skilled and efficient labor force Recognized brand name Low price

2.2.2

Weaknesses
Dependence on foreign suppliers The difficulty to aware our target customer Fund raising problems Lack of local skilled labor The training of the local personnel

   

  

  

2.2 SWOT Analysis

2.2.3

Opportunities
Growing industry for the same products Chances to capture the whole market being innovative The cost will become less in the future The sale of other products may increase in the future

2.2.4

Threats
Competition from other established companies The failure of the product being new in the market The downwards turn of the economy in the near future The recognition of the product 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
services in form of
On time delivery Free installation Timely contact Warranty Product installation video disk and user manual     

attractive

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 Batkhela Burewala Dera Ghazi Khan Dera Ismail Khan Faisalabad Gojar Khan Gujranwala Gujrat Hyderabad Karachi Lahore

           

Mirpur - AJK Multan Okara Peshawar Quetta Rahim Yar Khan Rawalpindi Sargodha Sheikhupura Sialkot Sukkur 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  Retail Price 1.5 Ton  Retail Price 1 Ton

Rs. 48,000 Rs. 35,000 Rs. 25,000

3.7 Marketing Mix

Promotion
 TV  Radio  News paper


40%

of total promotional budget

  

03% - - 10% - - Bill boards and Banners 20% - - Internet 01% - - Cable Network 25% - - Magazines 01% - - -

3.7 Marketing Mix

Services

     

Installation Repairing Warranty Tool free Nos 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
Contribution Margin Total Units * Profit Margin Per Unit

280 * 23215 280 * 1785

6,500,200

499,800
499,800

Total Fixed Cost 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 Cable Network Bill Board Magazines Internet Radio News Paper

10,00,000 6,25,000 5,00,000 25,000 75,000 25,000 2,50,000

5.0 Control
 Comparing customer satisfaction level with determined level  Assessing sale proceeds  Regular check up of production process