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All praises belong to almighty Allah who the supreme authority knows the ultimate relation underlying all sorts of phenomenon going on in this universe & whose blessing & exaltation flourished my thought & thrived my ambitions to have the cherished fruit of my modest efforts my humblest thanks to the Holy Prophet Hazard Muhammad (PBUH) who is forever a torch of guidance & knowledge for humanity as a whole.
We deem it our utmost pleasure to avail this opportunity to express gratitude & deep sense of obligation to my revered teachers for their valuable and dexterous guidance, untiring help, compassionate attitude, kind behavior, moral support and enlightened supervision during this whole project.
Finally, I would like to extend hurtful thanks to my adoring parents and friends for their day and night prayers sacrifices and encouragement, moral and financial support throughout the course of my study.
Internship Report 2012
Institute of Management sciences has its prime objective to develop trained managers by offering them broad knowledge in a number of business areas and thus preparing successful management careers. One step to achieve this objective for students is to exercise internship program in any recognized organization. So this internship program facilitate the students to gain some understanding of complete working of the organization and at the same time enables the students to face challenges in their professional life by sharpening their skills of decision making, leadership, communication and team work.
Internship Report 2012
EXECUTIVE SUMMARY ............................................................................................................ 4 INTRODUCTION .......................................................................................................................... 6 HISTORY OF PEPSI COLA IN PAKISTAN ........................................................................ 9 Vision Statement: .......................................................................................................................... 11 Mission Statement:........................................................................................................................ 12 Cold Assets Departments: ............................................................................................................. 14 Marketing Department: ................................................................................................................. 17 Sales Capability Department: ....................................................................................................... 19 Customer Service Department: ..................................................................................................... 21 Human Resource Department: ...................................................................................................... 21 Market Research & Sales Information System Department: ........................................................ 22 Key Accounts Department: ........................................................................................................... 24 Management Information System: ................................................................................................ 25 Finance department: ...................................................................................................................... 27 My Activities: ............................................................................................................................... 30 Financial Ratio Analysis ............................................................................................................... 31 PEST Analysis: ............................................................................................................................. 39 SWOT Analysis: ........................................................................................................................... 41 Suggestions and Recommendations:............................................................................................. 43 Bibliography ................................................................................................................................. 44
Internship Report 2012
Beverage industry in the whole world is very well established industry and the same case in Pakistan. The major beverage companies are Pepsi Cola and Coca Cola and the emerging beverage industry is Gourmet Cola. The Pepsi Cola is the market leader in the Pakistan as well as in the Asia but Coca Cola is the market leader in the whole world. These industries develop their own marketing strategies to meet the requirements of their respective target market. As far as the Shamim& Co. beverage in Multan is concerned, it creates its monopoly in it‟s the market, which is based on Multan, Rahim Yar Khan and other cities. Shamim& Co. beverage successfully fulfill the requirement of its target market. There are different departments in the Shamim& Co. beverages like Human Resource Department, Management Information System Department, Key Accounts Department, Sales Department, Marketing Services Department and Marketing Department, Audit and Taxation Department, TOT Department, Purchase Department, Production Department, Finance Department, Store Management and Shipping Department. Each department is running under intellectual managers and their respective team of assistants. Human resource department in Shamim& Co. has the major function is to manage the workforce. Recruitment and promotions are also done by this department. Personal record of each employee is maintained by this department. In this record each and every thing about the employee is recorded. This record is maintained both by manual system and computerized system. Employee selection, employee appraisal and leave records are also the part of this department‟s work. Different motivational tools for the employees are also managed by this department. The sales & marketing department in Shamim& Co. performs a very vital role. The distribution system as well as the supply system of Shamim& Co. is very effective and very strong. That is why Shamim& Co.‟s market share is above 70%. The Shamim& Co.‟s employees build very strong relationship with the customer. Company also gives incentives and bonuses to the employees on achieving their targets. The marketing department makes the advertising of all the new promotion, launching and re-launching of brands.
Internship Report 2012
Internship Report 2012 Page 5 . This department focuses on the philosophy “COLD IS SOLD”. First this department work under the SIS department. This department is established before four years. Finally. especially Sir Aman (Key Account Co-ordinator) who gave me chance to work with them and provide opportunity to learn functioning of SHAMIM & COMPANY PEPSI COLA MULTAN.The TOT department works on the issuance and repairing of the deep freezers and visi-coolers. I am thankful to entire management of SHAMIM & COMPANY (Pvt) Ltd MULTAN.
S. president of Loft. he applied for a trademark with the U. Charles G. bought the Pepsi trademark. Pepsi-Cola's first bottling franchises were established in Charlotte and Durham. Pepsi-Cola received its first logo.000. North Carolina. In 1923. Megargel.000. The modified script logo is created with the slogan.INTRODUCTION History of Pepsi Cola In 1893 Caleb Bradham. a young pharmacist from New Bern. the company began selling its 12-ounce drink for five cents (the same cost as six ounces of competitive colas).1934 was a landmark year for Pepsi-Cola.C. Pepsi gets another logo change. Megargel reorganized his company as the National Pepsi-Cola Company. for $30. vanilla. is renamed "Pepsi-Cola". District Court for Eastern District Virginia declared the National PepsiCola Company bankrupt. known as "Brad's Drink" a combination of carbonated water. and formed the first Pepsi-Cola Company. Guth. The cost savings proved irresistible to Depression-worn Americans and sales skyrocket nationally. In 1906. Washington D. "The Original Pure Food Drink". after five continuous losing years. forming the Pepsi-Cola Corporation. The New York Stock Exchange traded Pepsi's stock for the first time. In 1931. U. assumed leadership of Pepsi and commanded the reformulation of Pepsi-Cola syrup formula. a Wall Street broker. one of Caleb's formulations. Pepsi-Cola Company was declared bankrupt and its assets were sold to a North Carolina concern. the third in eight years.In 1902. Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola. REFORMULATION OF PEPSI COLA’S SYRUP FORMULA The Loft candy company acquired the National Pepsi-Cola Company. it will satisfy you".S. Patent Office. sugar. rare oils and cola nuts. On August 28. The drink was a hit and to attract even more sales. North Carolina. 1898. The 12-ounce bottle debuted in Baltimore. FORMATION OF PEPSI COLA CORPORATION Roy C.. In 1920. where it was an instant success. the second bankruptcy in Pepsi-Cola history. In 1928. 1905. begins experimenting with many different soft drinks. In 1898. In Internship Report 2012 Page 6 . In 1941. Craven Holding Corporation. business and good will from Craven Holding Corporation for $35.
1898 Brad's Drink 1903 Exhilarating.1964. forming PepsiCo. The company is registered in New York stock exchange U. Expansion outside the soft drink industry began. The head office of MENAPak is situated in Dubai (UAE). shape and quality). Pepsi Cola international is well reputed multinational company which is doing its business in almost every country of the world. and PepsiCola merged. They are very much known.Pepsi Cola Company operates in beverages industry. America's first national diet soft drink. The local head offices for each country are situated in the respective capitals. same in size. These are given below. Aids Digestion Internship Report 2012 Page 7 . Now these companies are producing the products on the behalf of the company by using company‟s trademark. Pepsi-Cola acquired Mountain Dew from the Tip Corporation in 1964. to make a better control over the business the company has given the manufacturing rights to different companies. Inc. To maintain their goodwill in the market the company has a strict policy of granting manufacturing rights. SLOGANS THROUGH TIME Pepsi-Cola has different slogans through its history. Diet Pepsi. SETUP OF PEPSI COLA The head office is situated in New York (USA) with units operating in different regions of the world. FORMATION OF PEPSI COLA INCORPORATION In 1965. This is also an important part of Pepsi-Cola. Frito-Lay of Dallas.S.A. Texas. These are called Business Units and Pakistan is in MENAPak (Middle East.g. debuted. The franchises have to follow all the standards given by the company. North America and Pakistan). Invigorating. Pepsi Cola have standardized products all over the world (e.
Pepsi: Cola 1919 Pepsi: Cola . Have a Pepsi 1961 Now It's Pepsi for Those Who Think Young 1963 Come Alive! You're in the Pepsi Generation 1967 Taste that Beats the Others Cold. Pepsi's Got a Lot to Give 1973 Join the Pepsi People Feelin' Free 1976 Have a Pepsi Day! 1979 Catch That Pepsi Spirit Take the Pepsi Challenge 1981 Pepsi's Got Your Taste for Life Internship Report 2012 Page 8 . Delicious 1933 It's the Best Cola Drink 1934 Double Size Refreshing and Healthful 1938 Join the Swing to Pepsi 1939 Twice as Much for a Nickel 1943 Bigger Drink.It makes you Scintillate 1920 Drink Pepsi: Cola . Better Taste 1947 It's a Great American Custom 1949 Why Take Less When Pepsi's Best? 1950 More Bounce to the Ounce 1954 The Light Refreshment Refreshing Without Filling 1958 Be Sociable.It Will Satisfy You 1928 Peps You Up! 1929 Here's Health! 1932 Sparkling. Pepsi Pours It On. 1969 You've Got a Lot to Live.1906 Original Pure Food Drink 1908 Delicious and Healthful 1915 For All Thirsts .
Some of these territories are: I.1983 Pepsi Now! 1984 The Choice of a New Generation 1987 America's Choice 1989 A Generation Ahead 1992 Gotta Have It 1993 Be Young. At present. Pepsi Cola is No. It is the market leader. Drink Pepsi 1995 Nothing Else is a Pepsi 1997 Generation Next 1998 Same Great Taste 1999 The Joy of Cola 2000 The Joy of Pepsi 2003 Pepsi. there are nine territories where the franchised unit produce and sell Pepsi-Cola. Have Fun. Lahore Page 9 Internship Report 2012 . In Pakistan. 1. It's the Cola 2005 Dare for more 2008 Something For Everyone 2009 Refresh Everything 2010 Badal Do Zamana 2011 DunyahaiDilwalonki 2012 Change the Game HISTORY OF PEPSI COLA IN PAKISTAN Pepsi cola is being produced and consumed 1n 48 countries of world including Pakistan. But overall in the world Coca-Cola is No. 1 in Pakistan in terms of sales wise and in market share.
In 1973. contingencies and all Internship Report 2012 Page 10 . it became Pepsi Cola franchise. PEPSI acquired 7-Up in Canada so the Multan franchise started producing PEPSI and Marinda along with 7-Up & became PEPSI franchise.000 cases per day. Company has now acquired new experienced & competent sales staff and this is how they have increased their share from 70% to 80 or 90%. Coke was already operating in the market at the time when Pepsi Multan established. At start Pepsi Multan was having only one production plant made by Netherlands and was only producing 7Up because it was the only brand produced by Parent Company. VI. DIG) got license of 7-UP.) Gujranwala Sakher Faisalabad PEPSI COLA MULTAN Pepsi Multan was incorporated in 1963 but it started its production in 1967. The company is properly serving all these areas with quality products. Now Pepsi Multan is working with five production plants capable of producing 100. As far as Distribution is concerned company has a very well-establish distribution network covering whole of the franchise areas. Karachi Rawalpindi Peshawar Multan (Shamim& Co. they have one and more than one distributions in each town. Allah Nawaz Khan Tareen (Ret. VIII. V. But in 1973. Pepsi Multan is currently market leader with more than 80% of market share. He looks after the stock availability. Installation arrangements for two new plants are in process. At that time Coke was market leader but with the passage of time Pepsi Multan kept on focusing on gaining the market share. Sale supervisor / Sale officer is responsible for all the activities carried out to increase the level of sales from the part of the distributors. IV. VII.II. PEPSI Multan is not an ISO certified company because it is an international drink having their own standards and there is no export. III. Depending on the potential of the town. The plant which was installed at the time of establishment has now been grounded. Now MD of Pepsi Cola Multan is Alamgeer Khan Tareen son of Allah Nawaz Khan Tareen.
Shamim& Company covers a wide area of Multan District and adjoining districts as well.the routes covered by the salesman of that distribution. Counters. Chistian 7. Layyah 9. Sales officer is also given a responsibility to train the salesmen as well. Okara 6. Dera Ghazi Khan. Sahiwal 8. as it is supposed that these chillers plays an important role in increasing the sales level of the company products and also it helps in carrying out different campaigns regarding the sales promotion of Pepsi products. Social. Mailsi 11." Internship Report 2012 Page 11 . and Economic . Haroon Abad 14. Shades and Boards. Some of these are as follows: 1. Company has invested a lot of money in form of Cooler. Vision Statement: PepsiCo's responsibility is:“We strive to continually improve all aspects of the world in which we operate . These things are offered to most of the retailers.creating a better tomorrow than today. Jampur 3. Bahawalpur 4.Environment. Ahmad Pur 5. Multan 2. Rahim Yar Khan 10. Bahawal Nagar 12. MuzaffarGarh 15. Vehari 13.
fairness and integrity. activities to benefit society. our business partners and the communities in which we operate.Our vision is put into action through programs and a focus on environmental stewardship. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees. Organizational Hierarchy: The organizational hierarchy of top management of Shamim& Company Private Limited is as follows: Internship Report 2012 Page 12 . and a commitment to build shareholder value by making PepsiCo. Mission Statement: Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. a truly sustainable company. And in everything we do. we strive for honesty.
Managing Director General Manager Technical General Manager Sales General Manager Finance General Manager Operations Manager Production Manger Sales & Marketing Manager MIS Manager Admin Manager Quality Control Manager Research & SIS Manager Finance Manager Personnel Manager Account Manager Shipping Managing Director: General Manager Sales & Marketing: General Manager Production: General Manager Finance: Management Accounts: Manager MIS: Manager Human Resource: Manager Shipping: Alamgeer Khan Tareen Sh. Major Farooq Departments where My Internship Program was carried out: While I was working in Shamim& Company Private Limited. I was directed to work at following departments: Internship Report 2012 Page 13 . Ch. Amir Hameed Mr. Tahir Ameen Mr. Sadaf Tahir Mr. Sohail Butt Mr. Rizwan Zafar Miss. Sarwar Mr.
Key Accounts Department 8. Finance These departments have their own duties and tasks to perform. canteens and colleges. Ms. Marketing Department 4. These chillers are continuously inspected and their feedback is also maintained for any complaints. Before 2009. so most of the departments where I have worked are related to marketing and sales areas. Lubna Sheikh & Omer is the Issuance Manager &Market Equipment Manager of this department respectively. Their core duty is to supply freezers and Visi coolers to different retailers. Visi Cooler and chillers of Pepsi that is provided to different retailers of the brand. TOT Issuance 2. The description of the duties of this department is related to the freezers. Finance Department and Cold Assets Department as well. Sales Information System Department 7. Cold Assets Department 2. Market Equipment Department 6. The duties of each department and my working in the respective departments are as follows: Cold Assets Departments: This cold asset department is also known as Tools of Trade (TOT) Department. this duty was performed to Sales Information System (SIS) department. TOT department has two sub divisions: 1. This department came into being in 2009 due to excessive work load and need of a separate staff to run this job.1. As I was focused on Marketing Area. Other than marketing and sales I have also worked in Human Resource Department. TOT Workshop Internship Report 2012 Page 14 . Human Resource Department 9. Management Information System department (MIS) 3. Sales Capability Department 5.
8. Arrange Vehicle for injection in Multan base and Outstation. According quota. Schedule Census/Tracking 4. Assign Field supervisors for chiller injection. This department notices the demand of freezers and chillers in the market and then after full documentation of the retailer and chiller. Handover Chiller Injection: This is the first step of the issuance of the freezers in the market. Document Received from sales team. Cooler dispatch. 3. 9.The functions of each division are further explained in the following section: TOT Issuance: The duties of TOT issuance are as follows: 1. Physical Verification 3. Ware house in charge plane for loading according to completed injection document. In ware house gate pass is prepared and data base is created in soft form for tracking. 10. In ware house all Documents are maintained in hard form. 4. Physical Verification: Internship Report 2012 Page 15 . Check documents& quota which assign to specific area. Signed by management staff and send to ware house for injection. this department issues the chiller to the retailer. If quota exceeds to current area then gets approval from management staff for assigning additional quota. 12. 6. Chiller Injection 2. 7. If Documents are complete then process starts otherwise documents are sent back to sales team. arrange Documents. 5. 11. 2. The key points of this process are as follows: 1.
The shops outside the Multan base are handled by outsourcing. Then all data is updated in excel for data base.After the issuance of freezers. The office allot a complain code to the shop keeper and sends a team to the shop. Types of Deep Freezers and Visi Cooler: Pepsi offers following types of deep freezers and chillers: 3 types of Deep Freezer are 1. For outside the Multan base. After that the field supervisor updates Chiller Contract and report if any cooler is missing according to the data. If there is any complain then the MEM calls back his subordinates and try to eliminate the problem. If the problem is minor then the team repairs the freezer at the spot. the office note downs the name of shop. TOT Workshop: The duty of this department is to repair the out of order freezers. the company has launched a UAN number. Schedule Census/Tracking: In tracking process the sales officer notes down the regular sales of shop. the MEM goes himself to the market and verifies from the shops either they have got the freezers on right time or not. 12cft 3. If any freezer is out of order. the company has agreement with distributor and local mechanic who repairs the freezer of the shop and gets payment from the company. The field supervisor get list of already injected coolers. 10cft 2. Handing Over Process: If a shopkeeper switches to Coke or any other competitors brand. For inside complaints. deep freezer number and name of distribution. he recommends it to be repaired. He also checks the functioning of freezers and write down about their performance. Then the representatives of TOT department picks up that freezer from that shop and hand over it to any other shop where it is demanded. 15cft Internship Report 2012 Page 16 . then he has to return his freezer to the company. when shop keeper calls on this number for his complaints. He verifies chiller of specific area according to injection data. otherwise the team picks up the freezer and takes it to the workshop. This department is dealing with the shops of only Multan base.
Some of the objectives of Marketing Department of Shamim& Company Private Limited are as follows: 1. BTL includes all the advertisements like Wall Chalking. MubashirGayoor is the Marketing Manager of Shamim& Company Private Limited nowadays. Facilitate the promotions and advertisement campaigns of ATL by Pepsi Cola International. Umbrella.D (double door). Cabins. Create brand awareness. Work Flow Process: Internship Report 2012 Page 17 . 1000SAX or D. Monitors the activities of every promotional campaign. Buntings. 6. Backlight Boards. 8. Standees. promotion. Cutouts. 11. Monitors the work and activities of vendors in accordance to the plans. Menu Cards. 5. Increase store branding and merchandising activities. Marketing Department: This department of Shamim& Company Private Limited is mainly concerned with the Below the Line promotional schemes. Banners. Facilitate sales to have an accurate and prompt response. accounts and issuance of cheques to the vendors. Counters. 10. 7. The main objective of this department is to increase brand awareness among customers. 9. 250SAX 2. Increase market share through visibility. 400SAX 3. Sheds.3 types of Visi Cooler are 1. Facilitate PCI in launching and re-launching activities. to improve market share through visibility and to improve BTL planning and execution. Mobiles and Stickers. 3. Un-light Boards. Increase BTL planning and execution. Boards. Coordinates all the activities regarding sales. Ensure that the fabrication of printing materials is in accordance to the specifications and remains with in the assigned cost. Mr. 2. 4. Front-light Boards.
Research department imposes a stamp on documents and return to marketing department after verification. After examining the requisition form by marketing manager. These are the steps in this procedure: 1. the vendor starts his work according to the requirements and completes the work in a specified time. When documents are received from research department.Work flow process includes all the activities which are involved in advertisement by installing Boards. then marketing department sends these documents to database office which records all its entries into the computer. Cabins. Internship Report 2012 Page 18 . Funds Allocation: The marketing manager is given a budget for a whole year. Whenever a work is required. 6. This document is now called “Work Order”. they check the budget of that area. Shades and Umbrellas etc. The entire budget is already defined for all the regions. After getting work order from manager. 4. from where the payment is made to vendor. And a whole document is completed and returned to vendor. Then the marketing manager calls the vendor and tells him about the work. he verifies all the items and figures and gets its approval from general manager. 2. By getting the documents after the completion of work. After the work has been completed the work order along with all the bills is again submitted to marketing manager. For this purpose he sends these documents to the research department. 3. After recording the data the documents are submitted to accounts department. First of all the sales force initiate the need of cabin or board for a particular shop or store. the duty of the manager is to verify the work of vendor. 5. He makes an estimate of all the work and gives a requisition form for his expenses to manager. if there is enough money for that area then they approve the work other vise the work is postponed for next year or special grant is asked from GM.
MirzaJaved is the manager of this department. This department facilitates and supervises all the sales. Mountain Dew Internship Report 2012 Page 19 . they are not given the discount. This is the net discount given to shopkeeper on every crate. 7up 4. Pepsi Diet 3. Mirinda 6. the discount is again given to the shopkeeper.Sales Capability Department: This department is responsible for all the sales of the brands of Pepsi in the area of Shamim& Company Private Limited. To calculate the capability of supply and retain market share. Brands of Pepsi: 1. promotional and merchandising activities related to the Pepsi Brand.326. Sales: The original rate of regular crate is Rs. To check the sale of every shop and take feedback from CR about the chiller integrity and visibility of all brands of Pepsi. The shopkeepers who have taken a loan from Shamim& Co. 3. When the whole amount of loan is paid by shopkeeper either by installments or by lump sum amount. Mr. Pepsi Cola 2. This amount of discount which is not been given to shopkeeper is considered as the installments of repayment of loan. 2. 7up Free 5. To monitor the activities of all the distributions working under the Shamim& Co. The objectives of this department are as follows: 1. But there is discount for every shop assigned and fixed by the company. rather salesman cut the invoice on full rate.
All the sales are done on net cash basis.7. Internship Report 2012 Page 20 . Slice Juice Sizes of Brands: Regular 250ml 300ml( Buddy) 500ml 1 litre Pet (1. they do not have Pepsi freezer and they are not eligible for purchase discounts. And there is full data about the shop‟s sale and shopkeeper‟s nature. It is a fixed cost for him. The empty bottles of shopkeepers are replaced by filled bottles. These empty bottles are the property of shopkeeper as hi purchases the bottles initially. The shops which are not recognized by company.5liter) Jumbo(2. Sting 8.25 litre) Crate (24 bottles) 12 bottles 12 bottles 12 bottles 6 bottles 6 bottles Every shop is registered in the record of company.
When a candidate passes the test he is interviewed by a panel including Sales Capability Manager and General Manager. In addition to this. Mr. We can make a brief diagram for this hierarchy: The basic duty of HR department is to understand the vision and mission statements of organization and recruit and hire the best available employees according to the nature of job. For the customer service and relationships the department has hired a new category of employees. He maintains a separate record of sale and reports it at the closing of the sale to the distributor and SCM. which contains analytical. named as “Customer Representatives (CR)”. general knowledge and mathematical portion.The basic requirement for Sales Officer in Pepsi is “MBA (Marketing)”. the CR has to do the merchandising of Pepsi brands in the visi coolers and make the visibility of every brand very clear. After calling the candidates an initial test is conducted. Internship Report 2012 Page 21 . Further he has to check the freezers of the shops. Human Resource Department: The working of HR manager depends upon the nature of business and visions and mission statements of an organization. whether the shopkeeper is selling the Pepsi product or any other brand in Pepsi‟s freezer. MirzaJaved also takes care of this department. After getting the CVs they shortlist the candidates and then call them for interviews. If more than five seats are available then the company publishes an ad in news paper. Here in Pepsi the criterion for the selection of employees is not very formal. He also takes feedback from shopkeeper and consumer. intelligence. Their duty is to go with the salesman in the vehicle and watch and note down all the activities of salesman.Customer Service Department: This is not a separate department rather it is headed by the head of Sales Capability Department.
This department aims to keep current records of each and every outlet of the franchise. but also areas such as research into new products. Marketing research specifies the information required to address these issues. Marketing research is much broader.Market Research & Sales Information System Department: Market research and marketing research are often confused. generate. Mr. „Market research is simply research into a specific market. customer. To get the competitor‟s data 5. Market Research & sales information system is a very important department for any firm. To check the market share 2. analyzes. and communicates the findings and their implications. Kamran Ahsan is the manager of this department. designs the methods for collecting information. refine. that may be biased. or modes of distribution such as via the internet. and reports to the MD. and improve understanding of marketing as a process. It not only includes „market‟ research. To check the strengths and weaknesses on sample basis 3. He is responsible to check all the activities of this department. and public to the marketer through information – information used to identify and define marketing opportunities and problems. for this purpose SIS department conduct researches for product and market. So their opinion is not reliable. monitor marketing performance. Core Aim: To do the research about product because sales people do not provide accurate data as they can give a mixed opinion. and evaluate marketing actions. Objectives: 1. manages and implements the data collection process. Help the high management to make decisions Internship Report 2012 Page 22 . It is a very narrow concept. Marketing research is the function that links the consumer. Carbonated and non-carbonated soft drinks research 4.
Out of the whole market. the canteen in MMDC. These captives‟ shops hold a big share of market. and NFC are the captives. The names given to stratum are as: 1. Sales Route Card: Sales route card consists of all the information regarding the deep freezer. Nishter Hospital. It is depicted by Stock and Sale. chillers and number of sales of all the SKUs of every shop of a particular distribution. Documents Used is SIS: The department starts its work from two types of reports. This department measures the sales capability of distributor. Main: The shops which are located on the sides of main roads and in colonies are named as “main”. key accounts are the biggest segment. Key Accounts: Key accounts are the main shops in market and big super stores which serve the Pepsi for all type of public. These shops keep a small portion of segment. Each stratum contributes to sample according to the percentage of its shops. which are provided by distributer: Stock Register: It consists of all the information about the initial and final stock before and after the sales.Working: The department conducts its researches by sampling method. Site Captives: Captives are those shops which are in a boundary and serve only one type of customers. Captives 2. Main 4. where the shops are located at big distances are called “sites”. The department is using their own customized software for data processing. For example. Site: The far flung areas out of the city. they divide the whole market into segments called stratum. This department is a backbone for the whole organization as it maintains all the record and it is primary audit. Internship Report 2012 Page 23 . Key Accounts 3.
The Key accounts convert the Coca Cola points into Pepsi points through different offers and giving a good incentive package. which consists of daily basis data. 7. The job of converting of Coca Cola points into the Pepsi points is very difficult. To keep an eye on competitors‟ activities and develop action plans for them.ArfanShahzad. Internship Report 2012 Page 24 .It is compulsory for a distributor to provide these reports after every four weeks otherwise the company stops the discounts and other claims of distributor. but they coordinate the sales force.The distributer provides these reports after every four weeks. To increase market share and revenue within existing accounts. Key Accounts Department: This department is basically working on retention of the existing points and the conversion of coca cola points into the Pepsi points. They also make work on the merchandising. The Key accounts Executives deals in a very good way because the point‟s conversion is very difficult. 2. To develop alert system for the maturity of existing contracts. 3. The employees that are working in this department are called the Key Account Executives and currently there are 10 executives. The head of this department is called the Key Account Manager who is Mr. Key accounts Executives also listen the complaints of the shopkeeper. They have no concern with the sales force. To develop key accounts KPI‟s category wise. If he has already submitted the monthly reports he will get the claim otherwise he is required to bring reports and afterwards he is awarded with claim. The objectives of this department are as follows: 1. 4. Monitoring and verification of “Advance Payments” and “Trade Payments” and realignment of “AP” and “TP” process. at the end of the month he sends a summary of all accounts to company and claims for this money. To provide the best services to the existing accounts for the retention. To identify the potential accounts and develop them. Discount Claims: The discounts which a distributor gives to shops. 6. 5.
They listen the shopkeeper complaints. They perform like a communicator. Retentions of Pepsi point by giving large discount. This information is very useful in decision-making. 9. Different Offers used for Conversion: Offers that are given to the retailers when they shift from Coca Cola to Pepsi Cola are as follows: 1. By offering a big amounts discounts and different schemes 4. it provides current. the department has eliminated much workload. Convert the Coca Cola points into Pepsi through low cost. organizations are rapidly moving towards computerization and information systems. 10. Internship Report 2012 Page 25 . To improve customer retention through stronger relationships and increased client satisfaction. In this era of rapid of frequent changes. then forward to the sales force. 2. Information systems are generally defined as the system. By giving deep freezer or visi cooler 2. 3. The department is working with a small setup & satisfying the information requirements the organization with a smart staff and developed setup. Including their names in the lucky Draw. Management Information System: In today's fast moving business environment. Job Description of Key Accounts Executives: They work on three things 1. is playing a vital role in this regard. reliable and accurate information to the management. which provide regular and current information to management for decision-making. paper work and saved a lot previous time.8. To responsible for studying and understanding market trends and knowing how these affect the accounts. To manage objectives and plans through a field team or through internal associates. Through trade payment & advance payment 3. MIS department of Shamim& Co.
0 is in execution. a. At the front end. Sales & Distribution System: The most comprehensive system of MIS is sales and distribution system.The software system has two basic parts and these are developed in some programming language. Empty short slip. name. tax. The database operates at the back end. The database is the basic structure of data and defines how data is organized. It incorporates: Sales system Cash system Shipping system The basic input of this system is empties slip. allowances. net pay and any other adjustments supplied by time office. The post important part of any information system is database. The following systems are working in the department. liquid out slip. At the time oracle 8. the reports of the system are Internship Report 2012 Page 26 . All computers in the department are networked by LAN (local area network) the department has licensed software working. b. It also provides technical assistance and training to other departments. data is entered and retired through input screens. basic salary. The system is helpful in getting production figures and reports about line utilization. Plant Efficiency System: The system is designed to keep current information about what is going on in production & plants. The MIS department is currently performing its day-to-day operations as well as involved in software development. employee code. stored and retired from memory. line efficiency. mechanical efficiency. full in slip by order sips.
depot wise) Settlement sheet (dealer wise. semi annually. District wise sales summary. Agent wise sales summary. paid time. Letter of credit like Irrecoverable LC and Irrecoverable and Confirmed LC. This is one of the most important departments of this organization. This department made the financial plans of the organization. Computerize sales statements (Monthly. production time etc. annually) Cash report Filled inspection. breakage. Leasing like direct leasing and sales and lease back. Finance department: This department looks after the insurance of all the Assets of Organization. Another job of this department is to make the complete record all financial and non-financial transactions made inside as well as outside the organization Functions of Finance department: Insurance: Insurance of all the assets of Shamim& Co. actual production. they analyze their resources and then concise other reports and gives the whole budget the organization can afford. These assets includes o Machinery o Building o Stock ( Empty & Liquid ) Internship Report 2012 Page 27 . Clearance of shipment is also comes under this department. depot wise) Daily liquid out report. (Pvt) Ltd Multan. Agent wise load out summary. Load report (dealer wise. Short term and long term financing too. stoppage.
Leasing: There are two type of leasing: Direct leasing Sales and lease back Direct leasing: Suppose you want to buy a new asset (Machinery). Letter of Credit: There are many types of Letter of Credit Irrevocable Letter of Credit Revocable Letter of Credit Irrevocable and Confirmed Letter of Credit Confirmed Letter of Credit Un-Confirmed Letter of Credit Modes of payment: By Sight Payment By Acceptance By Negotiation By deferred payment Internship Report 2012 Page 28 . You take that asset from bank on lease. At the end asset will be your when you pay all the installment of that Machinery. You go to bank ask him to purchase on the behalf of you and bank make the payment. Sales and Lease back: You sale your working asset to bank when you need short/long term finance to fulfill your operating expense or any of the others. You make the payment to bank in Installment with mark up. After the complete payment assets again come under the organization ownership. You have to make the payment to bank in installment with mark up/interest.
These document include Commercial Invoice Air Way bill or bill of lading Packing list For clearance purpose organization higher an Agent. quantity and prices are mentioned. Agent go to custom house and told them that he be authorized by part Show them the original document. machinery etc from supplier Organization contact the supplier Supplier send detail of requirement with the rates Supplier demand for letter of credit Buyer sends a request to its bank along with the detail document of buying material. Bank make the letter of credit Send it to buyer and seller Shipment Clearance procedure: For clearance original document are require. Buyer has to make the payment after receiving the whole shipment after the date of Truck receiving in 180-days. In Import/Export Form detail of goods. LC Procedure: Letter of Credit can be local/Inland or for foreign supplier Only difference between local and foreign LC is that for foreign LC Import Form or Export Form is submitted by bank to State Bank of Pakistan while in local it‟s not submitted.Document Delivered Against Acceptance (DDAA OR DD): Bills of exchange are used and organization gives acceptance for this. Organization want to buy raw material. After this there are some duties and charges on shipment like Custom duty Excise duty Internship Report 2012 Page 29 . quantity and price.
which include: Posters. When I joined the sales team.I was also assigned the task to check out that vendors have their work done according to the standard 30-Gauge so I was the part od SIS team which is an inspection team.e. Foreign companies have their Agent in Pak (Karachi etc). Organization makes the draft for each according to Agent. mobiles and Tapes. The work which was assigned to me was to do the promotion of “Pepsi Brands specially DEW and Sting”For this purpose. The working of salesman and CR were not differentiated. Debt Advice: Organization has cash balance with bank Bank send daily report of debt advice Suppose payment is made to supplier My Activities: I worked in this department for one week. Delivery order charges Port charges(by sea) Air port charges(by air) good own rent Agent own service charges Then Agent sends detail of charges for each above. I was deployed in the semi depot to know about the working of sales of Pepsi. in which the CR will collect the order from the market and the very next day. Buntings. we were transformed into teams and provided with promotional material. the Pepsi truck along with sales man and the CR use to go in the market and then they will take the order and supply the stock according to the demand at the same moment.Our work was to go in all the Pepsi Points and decorate the shop with posters and buntings. Initially I learn the working of SO in the cantonment area.We completed almost 30 shops in a day. Internship Report 2012 Page 30 . Later on a pilot project was launched in the semi depot of pre selling approach. Surajmiani and Nishter road along with the suburbs. they were working on spot selling i. Confirmation for each is received from Agent that all payment is made truthfully. salesman will be responsible to supply the stock as per demand that was recorded a day before by the CR. There I worked with three sales officers.
A – C.315 (545.837 1. Year CA CL Working Capital 2009 966.945.L. 12 CRs‟ were called from different distribution to work in this area. 12 routes were defined in the semi depot area. I also strived to have some feedback from the retailers about the Pepsi products and complaints about the sales officer and delivery services. I was the only internee at that time who worked as the 12th officer above a CR.494.663.512.941.212 2011 1.379. L Internship Report 2012 Page 31 .291.965 1. Financial Ratio Analysis LIQUIDITY RATIO’S: These ratios are important in measuring the ability of a company to meet both its short term and long term obligations. I worked with the key accounts executives in the market and learned the process of conversion of the shops and also helped them in maintaining a data base of the retailers selling Pepsi Cola.345.350) Current Ratios: This ratio measures the short-term debt-paying ability of the company Current Ratio = C.117.576 1. A C.885.Initially to launch that project. And 11 officers were also called from different distributions and departments to work here.811.618 2010 839. Working Capital: Working capital is an indication of the short – run solvency of business Working Capital = C.652.722.364) (158.219) (277.
291.75 0.91 DEBT MANAGEMENT: This is the most common measure of the ability of a firm‟s operations to provide protection to the long-term creditor.110 Internship Report 2012 Page 32 .652.576 1.899 1.864.902.837 1.Years CA CL Current Ratio 2009 966.774.965 1.319 2010 79.82 0.811.84 DEBT RATIO’S: This ratio measures what portion of a company‟s assets is contributed by creditors.111 2.47 141.500.386.806.837. TIME INTEREST EARNED: TIE = EBIT /INTEREST EXPENSE YEAR EBIT Interest Exp TIE 2009 74.067.212 2011 119.108 169.379.663.315 0.303.63 0. DEBT RATIO: Total Debt / Total Assets YEAR Total 2009 2010 2011 2.989 0.219 90.494.086 0.127.618 2010 839.722.345.117.507.898.512.212 2011 1.
127.865.500.111 2. It reflects the relative position of the equity holders and the lenders and indicates the company‟s policy on the mix of capital funds.66 698.57 ASSET MANAGEMETNT: These ratios are important in measuring the efficiency of a company 1.526.377 3.7% 78% D/E RATIO: This ratio indicates the extent to which debt is covered by shareholders‟ funds.110 440.898.402.834 688.917 D/E 4.536 3.932.362.300. Days sales in receivable: Internship Report 2012 Page 33 .837.198.816 2.646 Debt Ratio 82% 72.067.303. D/E = Total Debt / Total Equity YEAR Total Debt Total Equity 2009 2010 2011 2.567.058.266 2.Debt Total Assets 2.899 1.
300.816 2.198. The higher the Total Asset Turnover is the more effective use of the company's investments. in terms of days. Total Assets Turnover = Sale / Total Assets YEAR Sales Total Assets Total Assets Turnover 1.68time 2.6108.511.66 2.07days TOTAL ASSET TURNOVER: A company's effectiveness in generating sales revenue from investments back into the company.099.328. Of course it depends on all of the company's Total Assets.245.635 Internship Report 2012 Page 34 .362.324 2010 231.580 5.328.02 1.932.184.369. Total Asset Turnover can be very useful if you watch what actually makes up the Total Assets of the company.245.007 2011 403.377 3.646 2009 2010 2011 432. A company with low inventory and strict credit policies to keep Accounts Receivable low will help the Total Asset Turnover look even better.416 5.580 5.635 6.099.325 4.567.Shows both the average time it takes to turn the receivables into cash and the age.860.68 days 1.326.108.416 5. of a company's accounts receivable Days sales in receivable YEAR A/R Sales Days sales in receivable = Gross Re ceivables Net Sales / 365 2009 105.24days 2.369.526.
The ratio measures the percentage of profits earned per dollar of Asset and thus is a measure of efficiency of the company in generating profits on its Assets. Generally a return of 10% would be desirable to provide dividends to owners and have funds for future growth of the company ROE = Net Income / Shareholders' equity YEAR Net Income Shareholders' equity ROE 440.646 16.526.70% 6.49% 2009 16.121 2011 184.108.40.2065.932. If a business is liquid and efficient it should also be Profitable.PROFITABILITY RATIO’S: Profitability Ratios show how successful a company is in terms of generating returns or profits on the Investment that it has made in the business.121 101.266 3. ROA= Net Income / Total assets YEAR Net Income Total assets 2.917 688.228 2009 2010 2011 Internship Report 2012 Page 35 .514 2010 44.228 RETURN ON ASSET’S: The Return on Assets of a company determines its ability to utilize the Assets employed in the company efficiently and effectively to earn a good return.Ability to provide financial rewards sufficient to attract and retain financing.377 3.159.41% 698.300.295.295.362.058. RETURN ON EQUITY (ROE): The Return on Equity of a company measures the ability of the management of the company to generate adequate returns for the capital invested by the owners of a company.402.567.322.536 14.816 2.514 44.322.
514 44. falling prices or declining sales in the future.74% 3. NPM YEAR Net Income Sales NPM 16.352.63% 1. The ratio measures the percentage of profits earned per dollar of sales and thus is a measure of efficiency of the company.159.099.328.580 5.099.635 3.543.16% NET PROFIT MARGIN: The Profit Margin of a company determines its ability to withstand competition and adverse conditions like rising costs.369.416 5.580 5.416 5.326.018. Accounts 2010 2011 Status 220.127.116.11 250.228 = Net Income /Sale 2009 2010 2011 4.s = Operating Income x 100 Net Sales YEAR 2009 2010 2011 Operating Income Sales NPM Horizontal Analysis: The horizontal analysis of The Pepsi Cola Company is given below.369.9% Operating income margin: The operating profit margin ratio indicates how much profit a company makes after paying for variables cost of production such as wages.295.086 266.635 0.920 4.37% 0.121 101.8% 1.89 5% 5% Internship Report 2012 Page 36 .108.322.ROA 0.108.326. raw materials etc.328.
as compare to year 2010.103. Vertical Analysis year 2011: Cash and Cash Equivalent = = = Loans & Note payable = = Accrued Income Taxes = = Long Term Debt = = (Cash & Cash Equivalent/Total Current Asset) 197.345. Further. As the sale of company has increased in year 2011 but its income tax has come down by 47. it shows that the expenses of company have increased a lot in this year because taxation expenses increases by double figure as compare to 2009-2010 figure 38.2 0. This is a good indication for the creditors of the company that the company is paying its debts at faster rate.2 38. It makes the company‟s good credit ranking.997% (long term debt / total equity) Internship Report 2012 Page 37 .652.965 112% = (Loans & Note Payable / Total Current Liabilities) 688.7/1811.073/1.96% in year 2011.06/1811.04% 52.96 % The company must take actions to cut down its cost and reduce all the extra expenditures.63% 220% Increase Increase Decrease Decrease Decrease Increase Interpretation: This horizontal analysis which is based upon only on two years.15%. shows that the company‟s cash and other equivalents have been increase in year 2011 by 3.49% 103.27%. loans and notes payables of the company have also been decreased by 38.85% 95.(Increase/decrease) Sales Cash and cash equivalents Loan and notes Payable Accrued income taxes Long term debt Current assets 100% 100% 100% 100% 100% 100% 104. so that it may enhance its net income.02% (Accrued Income Taxes / Total Current Liabilities) 18.27% 61.
As the company is using an aggressive approach it is using more debt than equity financing. Company has reduced its long term liabilities and is relying on short term debts. This is clearly shown in above calculation. The other reason is that Shamim& Co. so it does not offer its shares to market. is satisfactory. Internship Report 2012 Page 38 .55% Interpretation: The vertical analysis shows that the amount of cash out of total current assets is increased.= = 688.7/698. is a private limited company. This is an aggressive approach used by company. Overall the performance of Shamim& Co. It has retained its market share in between 70% to 75% overall but in Multan they are successfully capture 80 percent market share The managers are risk takers and they prefer more debt financing rather than equity financing. This shows the focus of management on cash rather than other marketable securities. So a big source of its financing is debt financing from banks and other institutions. Income taxes are a very small part of total tax which indicates that the company has more operating and other expenses due to which its net income reduces. Because cash is the most liquid asset of company.8 98.
Now it has become a trend that soft drink should be served in almost every gathering. Now they have installed a new production plant which is capable of producing different brand sizes at the same time. Combined pricing decisions with mutual agreement between PEPSI and Coke. Social Factors: The social factors of each society and culture are different from each other so these also influence the industries as well. The plant which they installed at the time of establishment has now been grounded. Fast food popularity among teenagers has led to the increase in demand of PEPSI. 1 million for helping recent flood victims.PEST Analysis: The PEST analysis for Shamim and Company Private Limited is as follows: Political Factor: In Asia and especially in Pakistan where the political environment is not stable no Government has completed its tenure except the last and the politics also a great influencer on the different industries of the country. Increasing demand of PEPSI requires establishment of new production plants. Now following are the effects on the beverages industry. 3. Employment opportunities will be higher. Economical Factors: The country like Pakistan whose economy is not strong enough is affected by so many economic variables which are the following. Technological Factors: 1. 4. Today is the era of Technology whether it is Information Technology or Production Technology so the PEPSI is also affected by these. Social welfare program is also active at PEPSI for example PEPSI donated Rs. 2. 2. decides that what will be the rates of sales tax. Following are some of these. They have been sponsoring different cricket events and Pakistan cricket team for almost 10 to15 years. 3. The rates of main operating variables inputs such as the Electricity are also decided by the govt. Previously there were separate production plants for the production of specific brand size. 5. 4. Internship Report 2012 Page 39 . The sixth production plant which is currently being installed is imported from Germany. Low literacy rate is a problem due to which rural customers are not able to differentiate between PEPSI and Coke and etc. The govt. 1.
The seventh production plant which is currently being installed is the latest that is imported from Italy. Most of the record is maintained manually but currently they are trying to shift towards fully automated production control system. Internship Report 2012 Page 40 . There is no institute in Pakistan providing engineering training regarding beverages production plants so PEPSI people have to arrange onsite training for its maintenance engineers to learn working with latest technology plants 8. There is very limited automation to keep production record. 7.6.
Employee management 3. A large distribution and supply system 3. These findings are as follows: Strengths: 1.SWOT Analysis: The strengths. Un fulfillment of increasing demand of Pepsi 2. Fewer Incentives 8. Inspection of quality is regularly performed by Country Office to insure consistent quality products. weaknesses. Strong position in FMCG products 10. They are financially very strong and require no financial help from country office 11. No Proper Infrastructure 7. Insufficient salaries 5. Focus on Differentiation 12. 6. opportunities and threats that can be mentioned in this section. Monopoly of distributors cause harm to company. Efficient management that can take the heavy risk 9. Not satisfied workforce 9. No involvement of lower level subordinates in decision making. so distributors are willing to carry PEPSI brands Weaknesses: 1. Strong brand recognition 2. Opportunities: Internship Report 2012 Page 41 . They offer attractive margins to the distributors. A strong key accounts department for conversion 8. Strong sales & marketing department 5. Daily basis supply 4. Lack of skilled sale team 6. Poor feedback from employees 4. They have their own research department which is responsible for conducting market research 7. 10.
Pepsi Co.1. It has opportunity to get new opening shops in new markets a. No proper employee‟s orientation programs 10. has the threat of its competitor which is putting its best to get the maximum customer satisfaction and to maximize its profits by its active and keen management. There is high market growth opportunity 6. Training of sales officer and salesman 2. Coca Cola and Gourmet are increasing their market share very rapidly 2. Innovation or Cost Reduction Edge 4. Due to blame of religious group 8. Coca. Low cost skilled person availability Threats: 1. Changes in consumer purchasing power 6. 9. 7. Increase in competition 7. Rapid changes in demand due to seasonal reason 5. Biggest threat to the brand image of the company at national and international level. Country office is responsible for national ad campaigns which facilitate PEPSI Multan to enjoy the benefits of integrated advertisements. Opportunity to Attract By Incentives As Pepsi is a well known brand in all over the Pakistan so it also has the opportunity to create its value and to attract the customer by offering extra incentives to the retailers and specially consumers 3. Internship Report 2012 Page 42 . After getting the skills many employees run away due to pay 3. Because of high customer loyalty and brand image new brands can gain customer preference very soon.Cola is on its way to get market share 4. 5.
They must increase their supply to rural areas as there is a lot of demand. 8. They should take feedback from lower level employees like CRs and Salesmen 3. The company should have a good control over the distributor as he must maintain a good supply and should not commit the cross supply of competitors brand. They must announce an allowance for CRs and Sales Officer 5. 6. The company must launch an on the job training program for every employee as it will enrich and refresh the knowledge and skills of employees and they will become the strongest asset of the company. The company should increase the commission and bonuses for the sales force. They must keep a fair wage rate among all the employees. 7. Internship Report 2012 Page 43 . Proper employee meeting at every month 2. 4.Suggestions and Recommendations: As far as my observation is concerned Pepsi should take the following steps: 1.
pk/ Shamim and Co.com.Bibliography http://pepsiworld. Staff. Internship Report 2012 Page 44 .
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