Marketing Mix

Marketing Mix:PEL doing the mass marketing and using only one marketing mix for the completePakistani marketProduct Mix:Product mix is a set of all products that are offered for sale by a company. Product mixconsists of both breadth and depth.BREADTH:Breadth is a measured by the total number of product line offered by a company.DEPTH:Depth is the variety of sizes, colors and models offered within each product linePORTFOLIO OF PELPEL divides its portfolio in two divisions

BREADTH:

Breadth is a measured by the total number of product line offered by a company.

DEPTH:

Depth is the variety of sizes, colors and models offered within each product line

PORTFOLIO OF PEL

PEL divides its portfolio in two divisions

Appliances division.

Power division.

PORTFOLIO OF APPLIANCES DIVISION

Following are the products of appliances division:

Air conditioners

Refrigerator

Television

Microwave Oven

Washing machine

Generators

BREADTH DEPTH

REFRIGERATORS: MODEL SIZE

1. PREMIER SERIES:

PC 20185 15Cft

PC 20165 14Cft

PC 2017 16Cft

PC 2500 10Cft

PC 2300 8Cft

2. CRYSTAL SERIES:

PC 2012 10Cft

PC 2010 8Cft

PC 2009 7Cft

3. 6-SERIES:

PC 6400 12Cft

PC 6300 11Cft

PC 6200 10Cft

4. MINI-SERIES:

PMR 110-S

PMR 11

PMR-111

(DS)

MICROWAVES: MODEL SIZE

PMO 1052 2CF

TG (Silver)

PMO 23 1.5CF

Manual (Silver)

PMO 20 1CF

Touch (White)

PMO 23 2CF

TGS (Silver)

WASHING MACHINES: : MODEL SIZE

Magic Clean 10KV

(PWM-7700)

Magic Clean 5KV

PWM 0510

AIR CONDITIONERS: MODEL SIZE

Silver Line 1,1.5

(QB) & 2ton

High Vita 1.1.5

(HV7) & 2Ton

WAC 1.5Ton

(19K)

Floor Standing Air Conditioners

WATER

DISPENSORS: MODEL SIZE

PLS 691 SL 360x390x1035

(Silver & White)

PLS 681 SL 385x395x1025

(Silver)

PORTFOLIO OF POWER DIVISION

These are following products of power division.

BREADTH DEPTH

TRANSFORMER : 25 KVA

50 KVA

100 KVA

1250 KVA

ENERY METER: VOLTAGE 220-240V

CURRENT

(NOMINAL) 10, 20,40A

SWITCH GEARS : CURRENT

(MAXIMUM) 40, 60, 80,100A

GENERATOR: Model No. Capacity

PG5040D 5.2KVA

FEATURES OF PRODUCT LINE

Air Conditioners:

PEL window-type air conditioners were introduced in 1981 in technical collaboration with General

Corporation of Japan. Ever since their launch, PEL air conditioners have a leading position in the market.

PEL air conditioners cooling performance has been tested and approved by Copeland and ITS USA. With

the shift of users preference from window type to split type air conditioners, PEL has started

manufacturing split type air conditioners

Refrigerators:

The manufacturing of refrigerators started in 1986-87 in technical collaboration with M/s IAR-SILTAL of

Italy. Like the air conditioner, PEL refrigerators are also in great demand. Today, PEL Crystal has 38% of

total market share. Its cooling performance is tested and approved by Danfoss, Germany and its

manufacturing facility is ISO 9001 certified.

Deep freezers:

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

several reasons the production of deep freezers was stopped but now company is restarting its

production again.

Microwave Oven:

PEL the trustful company name in home appliances all over the country, now introduced all new models

of "PEL Power Wave" Microwave Ovens. Now PEL customers can have four models of PEL Power Wave

in which they can enjoy the grilling feature as well. PEL Microwave Ovens are available in different sizes,

inner cavities (steel & painted) and features.

TimeProduct

Develop-

ment

Introduction

Profits

Sales

Growth

Maturity

Decline

Losses/Investments ($)

Sales andProfits ($)

Washing Machine:

PEL introduced washing machine in 2006 first time and it got appreciative response from customers,

Now it is being produced by the company on large scale and due to its improved quality its sales volume

is increasing.

Generators:

Generator is another product of PEL that is used to generate electricity. It is very famous product in elite

class. It has several features as self start, no noise, digital display panel, dual exhaust system

(environment friendly), special air cooling system, continuous 10 hours running at 3 KV.

PRODUCT LIFE CYCLE

A product life cycle consists of aggregate demand over an expected period of time for all brand

comprising a generic product category. A life cycle can be foraged by plotting aggregate sales volume for

a product category over time usually years

Stages of product life cycle:

Management must be able to recognize what part of life cycle its product is in at any given time. The

completive environment and marketing strategies that should be used ordinarily depends on the

particular life cycle stage

There are four stages of product life cycle and explanation of each is given below

Introduction:

This stage some times known as pioneering stage in which a product is launched into the market

in a full scale marketing program it has gone through product development, including idea generation,

idea screening, prototype and market tests. For new products normally there is very little direct

competition.

GENERATORS are on introduction stage.

Growth:

Growth stage also called market acceptance stage.

In this stage sales volume and profits rises and

competitors enter the market. At the end of growth

stage , profit starts to decline.

Water Dispensers are on growth stage.

Maturity:

During Maturity stage, sales continuous to increase but

at decreasing rate. When sales level off, profits of both

producer and middlemen decline. The primary reason is

intense price competition

Refrigerators of PEL on the maturity stage.

Decline:

This stage is inevitable. In this stage profit and sales volume of the product both decrease rapidly and

finally its life comes to an end.

Longest life cycle:

As far as PEL is concerned, the longest product life cycle is of crystal classics refrigerators having three

years duration.

Shortest life cycle:

Life cycle of crystal classic 2009 refrigerator is the shortest among the portfolios of PEL appliances.

Pricing:Price is a strong element in the marketing mix. It has a direct impact on the customer, business. To the

consumer, the price is a major indicator of the quality of good and an important factor in making

decision about it’s purchase

In deciding the price the business management must consider the kind of competition in the market for

the good, the elasticity of demand for product, its cost of production etc

As far as PEL organization is concerned, sets its prices of product line regarding the competition in the

market.

Prices of product line varies from product to product, some of its product’s prices are set on quality base

PEL organization is very well aware of the limited buying power of the average population of Pakistan so

to uplifting their living standard & trying to meet their expectations regarding necessities of home

appliances. So company tries to focus on this portion of society, while setting the prices.

Internal costs include in prices:

1- Raw Material

2- Labor Charges

3- Factory Overheads

4- Advertisement Cost

5- Governmental Duty

6- Excise Duty

7- Company's Profit Margin

PEL PRICE LIST

Model Prices

(Rs)

REFRIGERATOR

SLIM LINE

2009-VCM 15500

2010-VCM 16500

2012-VCM 18000

2009-STAR PLUS 16000




2300-PREMIER 17900

2500-PREMIER 18900

WHITE BODY

20140--Crystal Classic 20500

20145-Crystal Classic 21000



20140-Premier 21000

20145-Premier 21300

20165-Premier 23000

2017-Premier 25000

6 SERIES

6200 20000

6300 20500

6400 21000

MICROWAVE OVEN

PMO-20 Manual 4200

PMO-20 Touch 4700

PMO-23 M 4900

PMO-23 TG 5800

PMO-23 TGS 6300

PMO-36 TG 7000

PM0-36TGS 7400

PM0-52 7400

WASHING MACHINE

PWM-508 5500

PWM-510 5700

PWM-7500 7500

SPLIT AIR CONDITIONER

1 TON 19400

1.5 TON 25900

2 TON 36700

GENERATORS

PG 5040-D 74000

Promotion:Promotion is an essential for increasing the demand of the product. Promotion includes advertising,

personal selling and sales promotion. The seller informs the customers through news papers, television

and posters about the product available in the market.

PRMOTIONAL STRATEGIES OF PEL:

PUSH STRATEGY:

It is promotion program primarily aimed at dealers in which company focuses to sell the product. In past

PEL used this strategy to increase their sales volume by giving more and more incentive to the dealers

PULL STRATEGY:

It is another promotional program primarily aimed at final consumer. Now a days, PEL is using PULL

strategy by improving product quality

For example: PEL is using the imported DANFOSS compressors in its appliances.

METHODS OF PROMOTION:

An organization adopts one or more of the following methods which are very common now a

day in uplifting its performance:

Advertising

Personal selling

Sales promotion

Public relations

PRMOTONAL BUDGET:

PEL spends 3% of sales on promotion.

ADVERTISING:

Advertising is non personal communication paid for by a clearly identified sponsor promoting ideas,

organizations or products. The most familiar outlets for ads are the broadcast and print media. :

The company highly believed in advertising. The company is expanding a lot of money on different

advertising media which are:

- Television

- Hording

- Neon Sign

- Stickers

- Banners

- Point Of Sale

- Calendars

- Wall

- Clocks

- Brochures

- Key Chain

- Billboards

Organizing advertisement:

A firm can manage its advertising program through following ways:

By developing an internal advertising department

By using an outside agency

By using a combination of above both

ADVERTISING THROUGH PRINT MEDIA:

PEL is conducting its advertising through internal advertising department. It is performed by publishing

ads in hot selling magazines.

ADVERTISING THROUGH ELECTRONIC MEDIA:

PEL is conducting its advertising campaigns through advertisement several outside agencies. PEL sister

concern “Red Communication” is the main advertising agency used for the purpose of making ads

according to changing trends of market and considering ethical issues. Latest ad of PEL is designed by

this agency by focusing on a college girl and its requirements from technology and PEL is providing the

appliances which is fulfilling theses requirement.

Advertising duration :

For refrigerators and air conditioners: from March to June

For oven and washing machine: from November to March

.

SALES PROMOTION:

Sales promotions sponsor-founded, demand-

stimulation activity designed to

supplement advertising and facilitate

personal selling.

PEL uses out door activities:

Exhibitions

Road shows

Promotion schemes etc.

PUBLIC RELATIONS:

Public relations encompass an wide verity of communication effort to contribute to generally favorable

attitude and opinions towards an organizations and its products.

PEL also engaged in public relations activities just to create a soft image in the hearts people.

SOCIETAL MARKETING:

Firm that sufficiently extents the breadth and commitment dimensions of its marketing goals to fulfill its

social responsibility are practicing what has become known as the societal marketing.

In these days PEL is giving donations for rehabilitation of earthquake affected areas. The company has

donated several necessities for the help of earthquake affected people.

PEL uses to collect zakat funds on the behalf of several charity institution as Shokat Khanam hospital

Installment Facility:

PEL gives installment faculty to all government employees, all of the account holders of Banks Alflah

Limited and bank of Punjab

Placement:

This element of marketing is concerned with all those activities with are related to move the product or

service from seller to buyer. PEL uses place strategy which ensures that product is available to consumer

at the right time when they are needed (time utility)

At the place where they are demanded (place utility) in the form or shape they are required (form

utility) and the ownership of goods is transferred with less financial risk (possession utility)

A product reaches customer through a channel of distribution. This channel might be short or much

complex involving many kinds of middlemen but PEL uses short channel of distribution to minimize the

expenses and ensure timely supply of goods to end user

DISTRIBUTION CRITERIA:

PEL has the head office in Lahore and it also has 22 sub-offices in different cities of Pakistan and they

have different sales manager in each city. Every manager is responsible to maintain strict control over

the market they are assigned.

The company estimates its sales volume by the past sales made by dealers and expected future demand

of authorized dealers

The volume of productions which is to be produced is also calculated by the same methods that is the

sales target given to the dealers for the year

The Company imports raw material for their products. They believe that the imported raw material is of

superior quality. They are importing raw material from different countries which are:

-Germany

-Japan

The parts which are imported:

1- Compressor

2- Copper Pipe

3- Insulation Chemicals

4- Crystal sheet

5- Thermostat

6- Monogram

7 Bulb

The parts which are locally manufactured:

1- Gas Kit

2- Handle

3- Knobs

4- Wheel

5- Wracks etc.

DEALERSHIP PROCEDURE:

PEL bases on dealers for its sales and ultimate production. That is why they have a very strict system of

giving dealership and a very efficient procedure of allotting target to each and every dealer. The

company makes a contract with every dealer for the period of one or more years depends

upon the relation with company and efforts put by the dealers in specific territories.

Following are the considerations which company looks for while allotting dealership.

Considerations for allotment of dealership:

These points are specially considered while allotting dealership:

FINANCIAL BACKGROUNDS/RESOURCE:

Financial background is the main point of consideration for allotting dealership

PEL does not allow credit facility to its dealers they have to pay advance

payment to get delivery of goods.

LOCATION OF OUTLET:

Another major consideration in getting the dealership is location of outlets. The

selling point should in the existing market place and it should be easily accessible

by customers

EXPERIENCE AND KNOWLEDGE OF DEALER:

The dealer should have a fair assessment and knowledge about the particular

territory. He should be conscious of his good points in persuading the customers

to purchase the goods

DEALERS ATTITUDE:

The attitude of the dealer should be polite to the customers so that he may convince them.

GOOD WILL:

Company prefers the dealers having well repute in the market and dealers are very good in the

eyes of customers

Documents

Marketing Mix