PLACEMENT

The distribution set-up of PEL has undergone many changes..

In 1988 the set up was ve ry simple. There we re only four sa le offic ers   
who use to mana ge area offices in Multa n, Ra walpindi, La hore and
Fais ala ba d.

1989 the company decide d to form an e ffective de ale rs hip ne tw ork. The
company ha d its dealers in all major cities.

In 1993 mana ge ment pla ne to form a region   to further improve the

distribution syste m. The w hole country was divided into four major
region. 1996 it is further improve by inc re asing re gion from 4 to 6.

Distribution s yste m of PEL is des igne d in suc h a way as to cover the

whole marke t and e nsure timely delivery of products to the c ons ume rs.
De ta ils of their dis tribution setup is given below.

PEL has tw o channel le vels.

(i)         DI REC T MA RKE T C HA NNEL

It has no interme dia cy level. The Co through sales office rs direc tly sa les
to large organiza tions and corporate sec tor.

(ii)       INDI REC T MA RKE T C HA NNEL  

It is a c hannel w ith one or more interme diary leve l. The ge neral public
ca n buy PEL products through authorize d dea le rs.

PEL has bee n ne tw ork; Regiona l sa les force is c onnected with dea ler.
C ore cus tome r a re direc tly attac he d. Dea le rs a re a lso vis it and analyse
distribution syste m.
During the selec tion of deale rs for PEL, the y conside r => Worthines s of
de ale rs, => Potential de mand. The y offer the m ince ntive, sche mes for
cost sales and always adopt policies in respons e to competitors.

SEGMENTATION

(i)         GEOGR APHI C SEGM ENT ATI ON

Segme nta tion is done on the basis of ge ogra phy. Pakistan is divided into
two zones; => N orth, => South.

NORTH ZONE

North Zone includes:-

 Punja b

 NW FP

SOUTH ZONE

   South zone inc ludes :   

 This z one Sind

 Ba luc hista n  

REGIONS
The re are six re gions of PEL in Pakistan. They are :-   

 Ka rac hi

 Lahore

 Multan

 Gujra nwa la

 Ra walpindi

 Fais la bad

PLACE :( DISTRIBUTION )
Most Producer use intermediaries to bring their products to market.  They try to forge a
distribution channel a set of inter dependent organizations involves in the process of making a
product or service available for use or consumption by the consumer or business user.

Channel Levels:

Disrtibution Channels can be described by the numbers of channel levels involved.  PEL uses
both of the two major Marketing channels.

Direct Marketing Channel:

It’s a marketing channel that has a no intermediary levels.   PEL’s power division uses this type
of channels.  Its major clients are large organizations and not the end user.  So people from these
organization directly contact PEL’s marketing department of power division when tenders are
flooded, design, specification and price are discussed. 
 Indirect Marketing Channel:

It is a marketing channel containing one or more intermediary levels.  PEL’s appliances division
works this way.  These products are sole through authorized dealer shops or PEL’s own outlets.

DISTRIBUTION SYSTEM:

Appliance Division:

PEL has got a very effective distribution system that ensures the widespread supply of
company’s product through out the country for the sake of proper management.

Zone                            Area Covered

Northern Zone                        Punjab and N.W.F.P
Southern Zone                        Sind and Baluchistan

REGIONS

The zones have been further divided in to six different regions.

 Karachi
 Multan
 Lahore
 Gujranwala
 Rawalpindi
 Faisal-Abad

The distribution process at PEL Appliance is being looked after by the following personal.
1.                  National Manager Sales (NMS)

National Manager Sales (NMS) mainly responsible for watching the functioning of all Regional
Managers Sales, Area Sales Officer and  Sales Office at the National Level.

2.                  Regional Manager Sales (RMS)

 Managers Sales (RMS) controls sales in his specific region and is the connecting link of all area
offices currently the company has two controlling operation in Multan Region.

3.                  Area Sales Officers  (ASO)

Area sales officer is responsible for making contacts with dealers product display and looking
orders in his specific area.  The company has at present seven ASOs Managaging operations in
Rawalpindi, Gujranwala, Multan, Bahawalpur, Lahore etc.

4.                  Sales Officers (SO)

Sales officer (SO) looks after the sale operation in particular city.  Currently there are four sales
officers two in Lahore, one in Faisalabad and Gujranwala each.

5.                  Assistant Manager Sales (ASM)

Assistant Manager Sales (ASM) looks after the proper functions of sales in Southern Zone.    

POWER DIVISION:

For Power product there are no particular personal to deal with the distribution.  Sales procedure
for power division is as follow.

Sales Procedure

Since the major buyer of PEL in Power Product is Government Sector, the sales procedure of
Power/marketing department is quite different from Appliance/Marketing Department.
The main steps involved in sales/marketing procedure of Power Division are:

 Bid Submission
 Bid opening
 Bid Evaluation
 Letter of Indent(LOI)
 Billing
3.1.4 DISTRIBUTION STRATEGY
PEL has got around 800 dealers all over the country. PEL ensures that its
refrigerators are available almost in all appliances markets of Pakistan. They have

got 80% penetration in dealer sector. One can get very easily their product in any
city or small town of Pakistan.

PEL has got various types of dealers according to their potential. Around 25% of dealers are "A-
class" dealers who sell over 1000 units and above per year. "B- class" dealers are those dealers
who sell from 400 units up to 999 units per year. They are around 50% in total dealer and the rest
are in best 25% of "C-class" dealers sell from 200 up to 399 units per year.

In order to provide quick and timely delivery to their dealers: they have got big warehouses
located in almost all big cities and towns. Whenever they get order from the dealer they try to
provide supplies to their dealer from closest warehouse. In case stock is not available in the
warehouse then it is delivered directly from Hyderabad Factory. The maximum delivery time
incase stock is delivered from Hyderabad Factory is four (4) days. However if supply is given
from closest warehouse then hardly it takes 2-3 hours time. They believe that, timely delivery of
their product to the dealer, is one of an important element in their success in Pakistan.

They ask their dealer to maintain sufficient stock at-least 4-6 week at their end. Rather they
believe in replenishment of dealer stock based on their sales. It means dealers stock always
remain in within a limit, doesn't exceed beyond 6 week level.

As mentioned above, they have only 300 dealers mostly in big cities and some in small towns.
They also have got a policy that retail price all over the country should be uniformed for the
customers, whether he/she buy from Karachi, Islamabad, or Peshawar.

They also bear transportation cost and thus provide supplies at uniform rate to their dealers. They
have got three big warehouses in Karachi, Lahore and in Islamabad. From these warehouses they
feed their product to their dealers and thus they make their product available to them.