Pak Elektron Limited

Entrepreneurial Marketing

Final Project
Organization: Pak Elektron limited

Submitted By:
Mughees Aslam (L1F18BBAM0085)

Hassan Shahbaz (L1F18BBAM0059)

Ameer Hamza (L1F18BBAM0077)

Kalsoom Fatima (L1F18BBAM0253)

Submitted To:
Dr. Syed Shujaat Ali Shah

Date:
30-Jan-2022

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Table of Contents
Deliverable 1......................................................................................................................... 3
INTRODUCTION.................................................................................................................... 3
Vision................................................................................................................................................3
Mission Statement............................................................................................................................3
HISTORY............................................................................................................................... 3
KEY OPERATION..................................................................................................................4
Industry Review....................................................................................................................4
INTRODUCTION...........................................................................................................................4
INDUSTRY OF A COMPANY......................................................................................................5
COMPETITORS.............................................................................................................................5
EVALUATION OF INDUSTRY:..............................................................................................5
CHALLENGES TO INDUSTRY:............................................................................................6
Products of the Organization..............................................................................................7
Marketing Department.........................................................................................................9
Deliverables 2..................................................................................................................... 10
Problem Identification:.......................................................................................................10
Solutions and Recommendations.....................................................................................11
Best Practice:..................................................................................................................... 11
Tackling:............................................................................................................................. 11
Challenges:......................................................................................................................... 12
Recommendation............................................................................................................... 12
Conclusion.......................................................................................................................... 12
References.......................................................................................................................... 13

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Deliverable 1

INTRODUCTION
PEL known as Pak Electron Limited, they took an initial start to make electronics merchandise in
Pakistan. Pel has always provided their customers with best innovative products and they have kept
advancing their products. They have contributed a lot in the sector of engineering department in
Pakistan, by their products not only consumers are happy they have contributed in Nation’s interest.
They have launched a line of quality electronics and Home appliances, by this a lot of engineers are
produced, technicians and skilled works through their training and apprenticeship programs.

Vision
“To 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”.

HISTORY

Pel known as Pak Electron Limited, was launched in 1956 as Public Limited Company. Their
company at first were creating transformers, switchgears and electric engines. Both AEG specialists
and Pel completed the planning of this gear. Then Saigol group acquired the Pel Company in October
1978.The organization transferred its shares to the general public and was recorded on the Karachi
Stock Exchange (KSE) and Lahore Stock Exchange (LSE). The Appliances Division was established
and in 1981 began the development of Window Type Air Conditioners with the concerted effort of the
General Corporation of Japan. This forced air system is generally accepted in terms of its quality. In

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this way in 1987 the construction of refrigerators and Deep Freezers began. In 1993 the organization
began compiling Compressors for Refrigerators and Deep Freezers under a special joint effort with
the Italian Messrs NECCHI COMPRESSOR. It was in the mid-70s that PEL became known in
overseas business sectors because of its quality. The organization started its production in countries
like Saudi Arabia, Abu Dhabi, Qatar etc. Later in PEL it provided gears with different types of gears
in the Middle East, Far East and Africa with amazing success. Since its inception PEL has been
advancing in the Pakistani economy in various ways. Pel contributes to the Pakistani economy by
providing a range of electrical appliances and household appliances and by providing a large number
of engineers, skilled workers and technicians through training programs and schemes.

In 1981 PEL window type air conditioners were introduced in technical collaboration with General
Corporation of japan.

In 1986-1987 the company started manufacturing of refrigerator in technical collaboration with M/s
LAR-SILTAL of Italy.

In 1987 PEL deep freezers were also introduced in technical collaboration with M/s Ariston of Italy.

In 2006 the company has started manufacturing of split type Air conditioners of various capacities as
a customer’s choice has shifted from window type to split type. The product has been well received in
the market. This encourages the company to multiply its production is the coming year. (Naz, 2018)

Today, PEL has become a household name. Its products are not only in great demand in local market
but he company has started exporting its appliances and power division products has formed alliances
with several international giants, including General Electric, Fujitsu, and Hitachi.

KEY OPERATION
Its major key operation which Pel deal with is home appliences and electric equipment.

Industry Review

INTRODUCTION
In 1956 PEL was founded by collaboration with AEG of Germany. It is a Public Limited Company
(PLC). After that, in October 1978 it is acquired by Saigol Group of Industries which is one of the
best industrial and commercial groups of Pakistan. PEL is an engineering corporation which
manufactures home appliances and electrical equipment.

PEL works in two sectors:

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1- Power Division (AD):

There are three main products in this division of PEL. It includes the manufacturing of power stations
or grid stations, transformers and energy meters.

2- Appliances Division (AD):

The appliances sector deals in making, assembling and supply of electrical appliances.

 PEL Air Conditioners.

 PEL Refrigerator.
 PEL Deep Freezers.
 PEL Microwave Oven.
 PEL Washing Machines.

INDUSTRY OF A COMPANY
Pak Elektron Limited (PEL) is the pioneers of electrical manufacturing in Pakistan. So, it belongs to
an electrical industry because of the manufacturing of numerous electrical appliances.

COMPETITORS
There are many competitors of PEL Company in Pakistan like Dawlance, LG, Haier, SIEMENS,
Panasonic, Orient etc. PEL have its own competitive strategy to deal with its competitors. PEL
Company makes close inquiry of its opponents to understand its strategies and to overcome its
deficiencies.

EVALUATION OF INDUSTRY:
It is the procedure in which company’s activity and performance outcomes are supervised so that
genuine performance can be associated or compared with the desired performance. PEL Company
makes the appraisal or evaluation by getting the information at all level from supervisors and then
they take the step for controlling and directing the situation, if it is not matching with the desired
performance. PEL Company plans for the evaluation of industry:

 Customer Evaluation:
PEL provides free customer services 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

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always provides help to their customers for WRAC, refrigerators and other items. Company
always makes efforts to satisfy the Marketing Analysis of PEL.
 Succession Planning:
PEL has formulated a broad succession plan which consists of performance evaluation and
suitable training requirements for development of potential and competitive future leaders or
supervisors. The succession plan allows PEL to ensure or confirm availability of competent
personnel or employees in each department.
 Resource Allocation Plan:
PEL is devoted to evaluated and provide best value to all its stakeholders for their
commitment with the Company through efficient resource allocation. The resource allocation
plan includes manufactured capital, relationship capital, human capital, intellectual capital
and financial capital. (Rahman, 2019)

CHALLENGES TO INDUSTRY:
PEL Company in such a competitive period has many challenges or threats as well. There are number
of challenges that PEL Company faces like:

 Strong Competition:
PEL have numerous competitors in the market. SO, there is very strong competition in the
market for home appliances. Every competitor company effort to come in the top position for
reaching the maximum shares in the market just because of this reason, PEL Company faces a
strong competition in the market.
 Chinese Products:
There is another challenge or threat for the Pakistani companies is of Chinese products
because these products are cheaper than the Pakistani products. An even china product not
well in class or quality but it is relatively in low costs than the customer’s home appliance that
are manufactured originally by the PEL Company.
 Instability of Government:
The fast or rapid fluctuations in governments will become threats for the companies because
every government implements its own policies or strategies for the industries. So it increases
the insecurity or uncertainty for the stakeholders or investors who want to invest heavy
amount in their new projects. (Yousaf, 2019)
 Price War:
As we know there is strong competition in the home appliance market that will be the reason
of price war. So, every company decreases the prices of its goods or equipment to increase the
sales. It will not only decrease the profit margin of the company but also reduce the
excellence or quality of the products. In short, price war is the main challenge for all the PEL.

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Products of the Organization

Refrigerator:

The manufacturing of PEL refrigerators started in 1996 and till now PEL has launched many
different series of refrigerators into the market which includes:

1. Desire More
2. Desire
3. Arctic
4. Xpression
5. 6 Series
6. Delux Series
7. Smart Series
8. Glass Door
9. Inverter-on
10. Life Pro
11. Turbo LVS

These divergent variants of PEL refrigerators are also available in different color schemes (example:
maroon, purple, red, gold, silver, charcoal grey, and mercury) and different capacities ranging from
168 liters to 440 liters. These different variants fall under different prices ranges starting from
RS.50,000 to Rs.76,500.

Deep Freezer:
There are two types of PEL deep freezer available in the market
 Arctic Pro Freezer
 Arctic Crystal
Arctic Pro Freezers is in conventional style and available in both one door and 2 door style and the
Arctic crystal is more beautifully designed than the other.

Air Conditioner:
PEL started manufacturing air conditions in 1981 with the help of the General Corporation of Japan.
They manufacture different types of air conditioners like
 PEL Window AC
 PEL Split AC
 PEL Floor standing Ac
PEL use to manufacture the window ac but now they have discontinued it because they are not in
demand anymore but PEL still manufactures its split variant and floor-standing variant. The Split

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variants provide high cooling in very hot temp and the main thing is it consumes very less energy. The
split variant comes in three sizes 1 ton, 1.5 ton, and 2 ton. The floor-standing ac variant of PEL comes
in three sizes 2 ton, 4 ton, and 5 ton.
There are two types of air conditioning systems:
 Conventional
 Inverter
The inverter ac is said to be eco-friendly they consume less energy and also provide stable control of
the temperature. The conventional ac consumes more energy than the inverter ac.

Washing Machine:
There are two types of PEL Washing Machine:
1. Semi-automatic machine
2. Fully automatic machine
With the help of these machines washing clothes is no longer a time-consuming process because with
the new technology these machines take less time and reduce human effort. There are different
capacities available for washing machines from 8.5kg to 12.5kg.

Microwave Oven:
PEL offers different series of microwave ovens to its customers like:
 Classic
 Desire
 Glamour
 Silver line
The main difference between these series is the design of each series is different from the other and
the ovens are available in multiple colors. They also have different capacity options available from 20
liters to 43 liters.

Water Dispenser:
PEL product line also includes the water dispenser which also comes in two variants:
 Glassdoor
 Sleek design
Both variants are different in design and are available in multiple colors.

LED TV:
PEL-led TV also comes in two variants one is a smart variant and the other is the non-smart variant.
The smart led includes Wi-Fi features in them and the user can use the internet to watch anything they
want. There are different sizes available ranging from 33 inches to 55-inch LED. (PEL, 2022)

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Marketing Department
The advertising department is the principal nerve of any organization, all things considered. This
office comprises on 8 workers and Head of this division reports to Director Operations." The
Marketing Department is dependable for making significant messages through words, thoughts,
pictures, and names that convey the guarantees/benefits an association wishes to make with its clients.
The essential duty of promoting division is to make a general marketing plan for each item and
investigate the current market circumstances by observing the contenders independently and
developing systems in a like manner. It likewise fills the role of marketing budget plan assignment for
the entire year and to develop promotional plans for retailers, wholesalers, and end customers inside
restricted monetary spending plan. (AHMED, 2016)
PEL has strong nationwide dealer's networks through which they are providing their premium quality
products and also, they are connected with their customers this strong network of dealers helps them
in maintaining market presence and resources are allocated for different marketing campaigns. AS
PEL is one of the oldest electronic companies in Pakistan they have a strong reputation and word of
mouth they have created in front of their consumers by providing them with high-quality products at
reasonable prices. They have segmented their market into rural and urban and they have launched
their products with different price ranges and designs which both the segments can afford easily.
PEL has also used electronic media for their marketing purposes which include these campaigns given
below:

“RUNG JAMA KE DEKH” for their LED TV

“JAGGAH BNANE MAIN CHAMPION” for refrigerators

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“THANDE KA DHOKA AB NHI HOGA” for microwave oven

Deliverables 2

Problem Identification:
The major problem that PEL faced recently was high turn-over in Marketing department. Many new
recruits hired for marketing but left the organization very shortly. Our contact was initially hesitant
with PEL in asking about the reason behind this but they eventually accepted that the problem does
exist and added that these young marketing minds do not see themselves progressing in the
organization as quickly as they expect themselves to and eventually turnover. Our initial insight
regarding the high turnover of the young marketing experts were confirmed, when we approached the
research and development department that claimed that the reason PEL was struggling to be the
market leader in the appliances sector was the fact that young employees do not stay with the
company for long. The department head said that the major source of creativity and innovation in their
department is the body of these young employees or the fresh minds in the department. Young
employees do bring new ideas which are sometimes beneficial to the company but many of them
leave the company when they feel that their ideas are not considered, or supported by the company.

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One of the reasons, employees give for turning over, according to our contact is the rigid culture of
the company. The ex-employee that we interviewed said that there was little acceptance for junior
employees’ ideas and marketing techniques that they are inclined to leave the company to join other
companies where their suggestions would be valued. Senior employees appear to be more devoted to
the company. We feel it is so because their personalities match the inflexible culture of the
organization. Many junior employees who are open to experience and prefer an open-to-change
environment could not adjust to the fixed culture and hence preferred to quit.

Solutions and Recommendations

Let us first discuss some solutions that we think could rescue PEL from the problem of turn over. The
need for resolving the issue of turnover is evident from the fact that it is very costly to hire, train and
then find a good replacement for an employee. High turnover rates represent unrecoverable costs.
Therefore, any organization that faces this problem should make resolving it their first priority. One of
the strategies that PEL should use to reduce turnover is to provide higher starting salaries relative to
the competitors especially to the people who are experts in innovation and marketing. This would not
only attract quality employees, but would also reduce their inclination toward leaving the company
once they are inducted.

Best Practice:
In order to address the issue of less involvement and consideration of young minds in market insights
decisions then, PEL should implement employee involvement programs such as participative
management and representative management. But we recommend that PEL should use representative
management, considering the fact that PEL’s has an enormous workforce. These employees believe
that their superiors do not consider their suggestions despite of the fact that they form the heart of the
company, that is they are responsible for the core functions of the company, and believe that their
superiors are bureaucratic and authoritative. Thus, through this, as employees would understand that
they themselves are part of the decisions made at the higher levels, so they will be more committed to
the decisions that are made which will in turn make them more productive and lead to higher
employee motivation and job satisfaction.

Tackling:
Although PEL claims to be the leader in the power sector, the company needs to attract quality
employees if it wants to maintain this position, and to become a more superior provider in the
appliances sector as well. Monetary rewards and benefits are obviously important but they do not
necessarily increase employee confidence and task motivation. If an employee is intrinsically
motivated to perform and identifies with a task at a personal level, he or she is likely to be more

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committed and productive. Thus, providing opportunities for growth can increase organizational
citizenship behavior in employees, and could be intellectually enriching.

Challenges:
Firstly, we had a very limited time to critically analyze Pak. Elektron Limited. One visit was not
sufficient enough to completely diagnose the problems in the organization. Thus, the claims we make
are based on a very small amount of observational data that we were able to identify.

Secondly, our contact person at PEL was very concerned about confidentiality of the company’s data,
so we were not exactly able to extract the amount of data required in this report. Also, our contact
seemed to boast too much about his company; he went so far as to say that “PEL is the best employer
in Pakistan”. So, we believe that his views were a little too subjective.

Recommendation
 PEL need to make long lasting product
 PEL will working or quality of product
 PEL should give quickly and maximum 5 years’ service
 PEL need to available products parts in market
 PEL should also consider the importance of advertisement for its microwave and splits, which
plays an important role in increasing awareness, customer preferences and in maximizing
market share. It should also use some promotional tools like organizing shows, scheme, gifts,
etc.
 PEL should take care of the economic, political factors such as inflation, government policies
while projecting the cost of production for future because this will help the company in
entering into a fix price contract for the purchase of material at a single time similarly than it
will be able to charge stable prices to its customers.
 PEL has already got a significant share in the consumer products market. It can beat its strong
rival Dawlance by introducing some innovations in its products or extending its after sales
and support policies. (Naz, 2018)

Conclusion
To conclude PEL his product going well in market but some common problem customers are faced. If
PEL work on it maybe it gets more customer and market share. Company only focused is only profit
and employers oriented which cause employee’s low motivation. PEL make good product and it have
range of product but it is not focused on creating advertising is also an Important part of marketing

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adverting. PEL have an ability to expand and overcome the challenges. I see the future of PEL very
brighter if he finding opportunity and receive benefit from it.

References
AHMED, A. a. A. M., 2016. Impacts of Country of Origin Theory on the Consumption of Automobile
Industry and Electronics Industry in Pakistan. Research Journal Social Sciences,. Issue 5(2)..

Naz, S. &. K. S., 2018. Evolution dynamics of digital HR system at Pak Elektron Ltd (PEL). Emerald
Emerging Markets Case Studies..

PEL, 2022. [Online]

Available at: https://pel.com.pk/wp-content/uploads/2020/11/HP-14.pdf

Rahman, A. H. A. R. F. A. &. K. I., 2019. The impact of domestic energy efficiency: retrofit study of
lights & fans using deemed saving method. In 2019 3rd International Conference on Energy
Conservation and Efficiency (ICECE) (pp. 1-7). IEEE..

UKEssays. November 2018. Pel Company History. [online]. Available from:

https://www.ukessays.com/essays/marketing/pak-electron-company-analysis-marketing-essay.php?
vref=1 [Accessed 29 January 2022].

Yousaf, A. K. B. B. U. a. A. F., 2019. Overview of implementing microgrid, its policies, incentives

and challenges in Pakistan. In 2019 6th International Conference on Electrical and Electronics
Engineering (ICEEE) (pp. 6-11). IEEE..

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