Introduction

Syed Adeel shah

MBASection “B”Semester 2nd

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

Deep Freezer Refrigerator Micro Oven Air Conditioner television

Power Division

Consists of power related products

Energy Meter Transformer Switchgear Kiosk Shun Capacitor Compact Station

Marketing Plan for Hybrid SplitHybrid Split

Specification

Product Line: Air Conditioner Brand Name: Hybrid Split Product Division: Appliances Division Product Features: Cooling + Heating Product Category: Split

2.0 Situation Analysis2.1.1

Market Summary

Serving customers for last 57 years

Significant improvement in sale volume.

13% Market share for split unit

Target Market

Government Institutions

Private Institutions

HouseholdsMarket Share

PEL

Mitsubishi

Waves

Dowlance

L.G

Others

2.0 Situation Analysis

Segments

Geographics

Demographics

behavioral

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

2.1.1 Market Segmentation

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 2006-07. in 2008 the

demand reached to30,000 units, units and it is expected

to reach 1,00,000 units in 2009-10.

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 attractive services in form of

On time delivery

Free installation

Timely contact

Warranty

Product installation video disk and user manual

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

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.

Already existing authorized dealers across the country

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/VisionVision

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 MixProduct

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 MixServices 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 Rs. 48,000

Retail Price 1.5 Ton Rs. 35,000

Retail Price 1 Ton Rs. 25,000

3.7 Marketing Mix

Promotion

TV 40% of total promotional budget

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

3.7 Marketing Mix

Services

Installation Repairing Warranty Tool free No’s 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 saleAs 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

Total Variable CostTotal Units * variable cost

280 * 23215 6,500,200

Contribution Margin

Total Units * Profit Margin Per

Unit

280 * 1785 499,800

Total Fixed Cost 499,800

Break Even Point (0)

Break Even Schedule

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)Advertisement and Promotional Cost (for three Years)

Television 10,00,000 Cable Network 6,25,000 Bill Board 5,00,000 Magazines 25,000 Internet 75,000 Radio 25,000 News Paper 2,50,000

5.0 Control

Comparing customer satisfaction level with determined level

Assessing sale proceeds

Regular check up of production process