Professional Documents
Culture Documents
In 1893--Caleb Braham, a young pharmacist from New Bern, North Carolina, begins
experimenting with many different soft drink concoctions; patrons and friends sample
them at his drugstore soda fountain with the name of "Brad's Drink,
In 1898, it is renamed as “Pepsi cola “on August 28, 1898. Pepsi-Cola receives its first
logo. Weekly the first Pepsi-Cola newspaper advertisements appeared in the New Bern
Journal. Mr. Braham devotes all of his energy to developing Pepsi-Cola into a full-
fledged business He applies for a trademark with the U.S. Patent Office, Washington
D.C., and forms the first Pepsi-Cola Company.
1903--"Doc" Braham moves the bottling of Pepsi-Cola from his drugstore into a rented
warehouse; he sells 7,968 gallons of syrup in the first year of operation.
HISTORY
1904--Braham purchases a building in New Bern known as the "Bishop Factory" for
$5,000 and moves all bottling and syrup operations to this location. Pepsi is sold in six-
ounce bottles. Sales increase to 19,848 gallons.
Pepsi receives its new logo, its first change since 1898.
1906--Pepsi gets another logo change, the third in eight years. The modified script logo is
created with the slogan, "The Original Pure Food Drink." There are 15 U.S. Pepsi
bottling plants. The Pepsi trademark is registered in Canada. Syrup sales rise to 38,605
gallons.
Mission Statement
“To be the world's premier consumer Products Company focused on convenient foods
and beverages. We seek to produce healthy financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our business partners and the
communities in which we operate, and in everything we do, we strive for honesty,
fairness and integrity.”
PEPSICO IN PAKISTAN
2
Pepsi cola is also very popular in Pakistan that’s why its market share is about 90% in
the soft-drink market. Pepsi Cola International, a remarkable name in the cola industry is
doing its business in Pakistan through franchising. PCI has developed following bottlers
in Pakistan till now. Naubahar Bottling Company is the largest manufacturer and
distributor of Pepsi Cola soft drinks in Pakistan.
Karachi
Lahore
Multan
Faisalabad
Gujranwala
Peshawar
Islamabad
Sukkher
Hyderabad
3
The
About employees
4
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Naubahar Bottling Co. (Pvt.) Ltd. (NBC) is one of the nine (09) franchises of “Pepsi Cola
International” in Pakistan. Naubahar Bottling Co. (Pvt.) Ltd. (NBC) first was involved in
the business of manufacturing and marketing of Coca-Cola. Later on it started
manufacturing and marketing business with Pepsi Cola in May 27, 1981. The Area
allotted to it, was Gujranwala Franchise. The franchise area consists of the following nine
districts.
1. Gujranwala
2. Gujrat
3. Hafizabad
4. Mandi bhaudin
5. Jehlum
6. Sialkot
7. Narowal
8. Sheikhupura
9. Chakwal
The basic difference between the direct and the indirect delivery system is that in a direct
distribution system, the company spends its own resources while in an indirect
distribution; the dealer spends his own resources on all the factors which increases the
sales volume:
Objective
The major objective of the company is to produce and supply of highest quality, which
confirms to both the national and international quality stands. The company is committed
to provide maximum level of customer satisfaction.
Future Planning
The company operates through well experienced, loyal and hardworking employees
exceeding 800. The first and the most basic plan it to train them according to the
changing technology and computerized environment, and satisfying their needs and
requirements. Upgrading the plant structure and installation of the new machinery are
other plans. The company is planning to increase its sales force and development in its
infrastructure in the coming time period.
Company has also recently purchased plants from “Double Cola”. There were 02 plants
installed for the production of 250ML (NR) bottles. Company is now changing these
plants to 250ML (RB) Plants and also another plant is being installed there for the
production of:
1500 ML (PET)
2250 ML (PET)s
500 ML (PET)
The company has planned to bring these plants into operations by August 2006 and it has
been registered as “Safina Enterprises Ltd.”
CUSTOMER FOCUS
We treat each of our customer equality & as the most important person while we interact
with him/her. We must ensure that we do everything to meet and exceed the customers
expectations with perfect to times, accuracy & quality services.
We treat each of our employees with fairness, which includes giving constructive
feedback for their development. We celebrate diversity and seek suggestions from all
employees for improvement. We ensure that responsibility & fairness in all our decision-
making.
We ensure that each moment of our time is spent on value adding activity. We always
seek ways for exceeding expectations of customers & colleagues. We also ensure that we
do things right, first time every time.
MANAGEMENT HIERARCHY
Marketing is the task of creating, promoting and delivering goods and services to
consumers and businesses. Organizations identify and profile distinct group of buyers
who might prefer or require varying products and marketing mixes. The customer seeks
for value and satisfaction. The organizations can increase the value of the customer
offering in several ways e.g. raising benefits, reducing costs etc. marketing mix is a set of
marketing tools that the firm uses to pursue its marketing objectives in the target market.
These marketing tools are known as 4 p’s of marketing. These four marketing tools are
viewed as 4c’s by the consumers.
4 P’s 4 C’s
Product/ Service Customer Solution
Price Customer Cost
Place Convenience
Promotion Communication
To identify the customer needs and fulfilling hem is the basic objective of an
organization. Marketing is not just satisfying your customers, you have to delight them
and this can be done by acting upon this phrase.
“Under Promise and Over Deliver”
PRODUCTS
There are following contents according to which types of PEPSI are described.
• Cola
• Coffee-related
• Diet-related
• Fictional Varieties
• Parodies
• Pepsi cola
• Pepsi Diet
• Teem
• Pepsi Twist
• Marinda
• Aquafine
• 7 up
• Mountain Dew
The Pepsi marketing phrase has also changed many times. The marketing folks at the
company felt free to invent new phrases whenever they thought the public would be
receptive to the change.
PEPSI LOGOS
The Pepsi logo has changed many times over the years. Here's a chronological history of
the various logos.
2003
THE MAJOR BRAND OF NBC IS PEPSI 250 ML, HAVING HIGHEST MARKET
SHARE WHICH IS 47% AS COMPARED TO OTHER BRANDS. THE OTHER
BRANDS PRODUCED BY THE ORGANIZATION ARE
PEPSI
PEPSI DIET
MIRINDA
TEEM
7UP
7UP DIET
MOUNTAIN DEW
PRICE
It is second important tool of marketing mix because it plays a major role in determining
the customer’s choice. Also it is the only marketing tool that results into revenue. The
customer makes a comparison between the prices offered by other companies and
PepsiCo and then selects the most suited offer. Following is the list of prices of different
products
Naubahar Bottling Company normally uses on going price strategy by seeing its major
competitor Coca Cola besides this company also uses Discount price strategy during
special occasions.
PLACE
The location of the organization plays a vital role in making its operations profitable. If
the organization outlets are located in some near markets then it will be very easy for it to
attract people. Therefore NBC has most of its outlets at places where it can reach its
targets customer easily. Following are the major areas which come under operations of
NBC:
Sialkot
Gujranwala
Gujrat
Shahdara
Jehlum
Sheikhupura
Narowal (Recently Established
NBC identifies their target market in Gujranwala division through following ways.
General stores
Cold corners
Parks
Traffic areas and public areas
Retailers and distributors
• Vegetables and fruit shops
Competitors
PROMOTION
• Personalizes Marketing
• Pepsi Culture
PepsiCo has also developed its culture among children and Next Generation is its Slogan.
Now Pepsi has become the need of everyone and it is only possible due to its strong
promotion.
FIELDS OF ACTIVITIES
Naubahar Bottling Company is the franchise of Pepsi Cola International. It performs all
the operations through its different department, only company receives Concentrate
(basic formula) from Pepsi cola international and remaining other activities are
performed by the company itself. Following are the major departments of NBC.
• HRM
• MIS
• Purchase
• Production
• Shipping
• Marketing & Sales
• Cash and Accounts
• Audit & Taxation
HRM DEPARTMENT
Newspaper Adds
Internal Search Advertisement
Employees Referrals (Permanent Employees of NBC)
Manager’s Recommendations
Written Test
Interview by HR Manger
Interview by Concerned Department Head
Final Interview by MD/Director
Interviews for worker level job where qualification and skill requirement is low, this
formal procedure is not adopted rather candidates abilities are fledged by department
head and sent to factory manager for approval. Orientation is the introduction of new into
his or her job & the organization. This is for few selected persons in NBC training is
generally on the job employees in all departments are bearing by the time or with the help
of seniors.
The selection process through which candidates pass is very slow & time
consuming pass is very slow and time consuming. Candidate have to sit day long
waiting for management approval to start test & then. There is service of
interviews which have no time table. It is generally three four days patience test &
trouble some for candidates from other cities or already doing jobs.
For the medical bills and small loan employees need to get managing director’s
approvals and then pass through a long procedure. It should be simplified.
Department heads should be authorized to approved loans and medical bills up to
a certain amount.
Computer & job related aptitude test should also be made part of selection tests to
have better job personality fit.
Performance appraisal has only once but it was a useless exercise because its
results were not used in future planning or changes. Performance appraisal should
be conducted:
There is not idea of planned career development in NBC. Career development can be in
term of job rotation, transfer & promotion. It improves the organization's ability to attract
of retain talented people, anticipating change & helping employees to learn new skills
and improve utilization of a personal abilities.
Motivation is the willingness to exert high level of effort to reach organizational goals.
The general level of motivation in NBC employees is very low and in NBC employees is
low and they are dissatisfied with their jobs and pay scales. Only best employee of the
month program is implemented highlight employees whose work performance is
excellent.
directly to top management e.g. suggestion box. These suggestions should be discussed in
quality control meetings.
No attitude surveyor any internal research has ever conducted by the HR department to
get insight of employees thinking.
Employees in NBC are performing well but they have low level of motivation.
Absenteeism is controlled because total forty annual leaves are allowed but more
important reason it that employees feel self responsibility. However the alarming
indicators are turnover and job satisfaction. The organization is facing high turnover rate
and employees are dissatisfied with their jobs and pay scales. Experienced staff is leaving
the organization or searching for opportunities. With the kind attention and efforts of
general manager & deputy general manager, the situation is improving. Qualified &
young people are joining the organization.
MIS DEPARTMENT
INTRODUCTION
In today's fast moving business environment, organizations are rapidly moving towards
computerization and information systems.
In this era of rapid and frequent changes, it provides current, reliable and accurate
information to the management. This information is very useful in decision-making.
Information systems are generally defined as the systems that provide regular and current
information to management for decision-making.
MIS department of NBC is playing a vital role in this regard. MIS is now the back bone
of the whole system of NBC. The department is working with a small setup & satisfying
the information requirements of the organization with a smart staff and developed setup,
the department has eliminated much workload, paper work and saved a lot of precious
time.
The MIS department is currently performing its day-to-day operations as well as involved
in software development. It also provides technical assistance and training to other
departments. At the time oracle 8.0 is in execution. All computers in the department are
networked by LAN (local area network) the department has licensed software working.
The system is designed to keep current information about what is going on in production
& plants. The system is helpful in getting production figures and reports about line
utilization, line efficiency, mechanical efficiency, employee code, name, basic salary,
allowances, tax, net pay and any other adjustments supplied by time office.
The most comprehensive system of MIS is sales and distribution system. It incorporates
Sales system
Cash system
Shipping system
Post mix system
The basic input of this system is empties slip, liquid out slip, full in slip, empty short slip,
the reports of the system are
Filled inspection, breakage, actual production, paid time, stoppage, production time etc
General ledger system of Accounts is on line from IST July, 2000. The system logs all
accounts and shows balance sheet & profit & loss statement incorporating every
transaction.
PAYROLL SYSTEM
There is separate payroll system for NBC and Friend's Agency. The output of the system
is pay slips and payroll report at the end of month. Payroll report incorporates.
All these reports are extremely important in the day-to-day operations of the above-
mentioned departments. In addition, customized reports can be obtained as required. The
system is implemented at each depot as well.
MIS is very strong software aimed to keep current record of each & every outlet of the
franchise. Through this system, management can get the information at any time about:
The system is designed in such a way that reports can be obtained about outlets:
The system is useful in accessing market & investment position in each area.
FUTURE PLANS
There should be formal web site and e-mail accounts of employees in the organization. A
small computer books library will help the staff to add their skills.
As oppose to its meaning the root purpose of the purchase department is savings.
Purchase department is very important because it has to get the cost efficiency. NBC does
not rely on one supplier because it will create the monopoly of that supplier that creates
problems for the company. To avoid such kind of monopoly of the supplier, company
always prefers to have more than one supplier in their supplier list.
PURCHASING PROCESS
When store informs the purchase department about the purchase of a particular item, the
purchase department gets information about the prices of desired items. At this level
quotations are required by the department from its different suppliers. On receiving these
quotations the selection of supplier is based on the low price and high quality. Another
procedure is the negotiating the prices with the supplier. In this case the prices are settled
at the desired level. After setting the prices, the order is placed to the supplier. When the
goods are received their physical verification is done and in case of any shortage or poor
quality product the respective supplier is informed. In this case the supplier has to bear
the charges of shortages or low quality. In case of events like 14th August, Eids, Festivals
Purchase department had to manage the supply at least 15 days before the occurrence of
the event, because the production increases in these days due to high demand in the
market.
SUPPLIERS
NBC has both local and international suppliers of glass and pet bottles who are approved
by the Pepsi Cola International.
These are
Supplier selection
Supplier selection is made mostly according to their quotations in which the two factors
have main focus. These are
• Quality
• Price
Domestic purchases
The purchase made from the country is called domestic purchase. It includes the purchase
of sugar, co2, and for the factory it includes office stationery, vehicles spare parts, glass
bottles, pet bottles, spare parts of production machinery and vehicles for transportation.
Foreign purchases
The purchases made from the international markets are called foreign purchases.
Concentrates are provided to NBC by the Pepsi Cola International, crowns and heads of
the bottles are also imported from Turkey and Dubai. The machinery is also purchased
from the foreign markets.
In NBC, audit is done annually. For the taxation purpose the taxes are implemented on
the basis of the purchase. If purchases are made locally there will be a tax and if
purchases are from the international market there will be no taxes.15% sales tax is
implemented on the domestic sales. All the departments are being audited by the audit
department. The audits are made according to the government laws. Records are
maintained both manually and computerized. The revenue submission date to the bank is
15th of each month. When the audit is conducted by the government, the company has to
present the invoices of purchase in order to get rebate on the foreign purchases. These
items come under no tax category.
Sales tax
Sales tax is 15%. Excise duty is 12% which the company pays to the government.
Types of Taxes
• INPUT TAX
• OUTPUT TAX
INPUT TAX
Input tax only claimed at the production related items such as sugar, concentrates and
other items. Such taxes are implemented on the imports too. But such imported items
have to come under the production process.
OUTPUT TAX
PRODUCTION DEPARTMENT
Production is like a back bone in any manufacturing organization. In NBC the main
production materials are
• Sugar
• Co2
• Water
• Ammonia etc
All the raw material which is used in the production process is approved by the Pepsi cola
international. These materials should be according to the standards of the PCI. If in any
case the material does not match with the standards of the PCI has a right to return it to
the supplier. In this case the entire cost of the material is beared by the supplier. This
strong check on the material is because of maintaining the high quality in the products
which is the credentials of the Pepsi cola products.
CapacitY of Plants
Currently the company is operating with five (05) plants. Out of these five (05) plants,
three plants are dedicated for the production of only 250 ML RB bottles. While plant # 01
produces 1500 ML (PET) & 1000 ML (Glass) bottles Plant # 02 produces 1000 ML
(PET), 250ML (NR) and 1500ML (PET) bottles. Capacities of each plant are as follows:
The company has introduced its own mineral water which is called "Aquafine" in two
packages of 600ML & 1500ML and company is planning to install a plant for juices.
Quality control
Quality control is the basic organizational objective of NBC. Quality check is made from
zero level to final products. For this purpose samples are taken from the production to
check the quality. This sampling is done after each an hour or half an hour. These
samples are tested according to the PCI standards
Production staff
Employees are directly involved in the production process. Whereas the helpers are the
indirect employees Moreover direct supervisor and helpers are also there. Indirect
employees are about 350 in number, who are not directly involved in the production
process but they are essential part of the production department.
Laboratory
In order to maintain the high quality the plant has a well equipped lab. Laboratory is
sufficient to measure the standards and to test syrup of different flavors. The well
equipped lab enables the smooth flow of production process.
Product line
The major brand of NBC is Pepsi 250 ml, having highest market share which is 47% as
compared to other brands. The other brands produced by the organization are
Pepsi
Pepsi diet
Mirinda
Teem
7up
7up diet
Mountain dew
Production process
The production starts with the empty wash department where the empty bottles are
washed with detergents so that the syrup can be filled into these bottles. Then second
department in the production is syrup preparation department where the syrup pf different
flavors ids prepared then the empty bottles are filled with the syrups at this stage water
and co2 is mixed with the syrup and crowns are fitted on the bottles then these bottles are
put into the plastic shells where these are transferred to the stock.
CASH DEPARTMENT
Cash department does cash handling (collection and payment). The major part of cash
collection is from dealers and salesman based on their settlement sheet and daily sales
report. Cash payment is done on the vouchers issued by accounts department. Payments
include employee's pay, bills, allowances, procurement expenditures and day to day
general expenses.
ACCOUNTS DEPARTMENT
The job of the department is to maintain books of accounts. There are following main
activities of accounts.
• Issuance of purchase vouchers for raw material, plant and machinery and general
store items
Computerized general ledger system is working and shows the result of each transaction
up to balance sheet and income/profit and loss statement.
SHIPPING DEPARTMENT
Shipping is a very critical area for any beverage organization. It serves the role of
coordinator or middleman between production and sales. Ensuring appropriate quantity
and on time availability of empty & liquid stock is utmost important. Any malfunction in
empty receiving, storage and supply to plants, liquid stock and distribution directly
affects sales. This is a complete chain or cycle and any weak link, bottle neck or
disturbances will slowdown the whole operations.
Shipping is responsible for managing the empties that are required for production.
Shipping is responsible for receiving the liquid clearance from excise to dispatch
it further to Depots & distributors or parties.
Shipping is also responsible for maintaining proper stock of liquids and empties
as they appear in the liquid and empties stock register, so as the stock appears in
the registers, it should also be physically present in the depots.
Shipping also receives new empties of both RB and NRB and manages their
storage and handling and their proper supply to production as they are required by
the production for filling purpose.
Shipping department has three godowns for empty storage. These are:
Taran Taran
Modern Soap
Qabza Factory
PEPSI TOWN
Due to shortage of space in these godown empty is unloaded at on these godown sent to
PEPSI town. This empty is returned when storage space becomes available. Empty is
supplied to plant when required by production people in specific quantity. The delivery is
through forklifts.
In this godown liquid, empties, shells and other different material is kept due to space
problems.
Empty should be kept under shelter to protect against weather. There is no proper
arrangement of empties. There should be kept in an ordered and countable way.
Breakage, rejected empty, TIN packs and other useless material must be sale out
by getting maximum price.
Sale and marketing is the most important department of any beverage company. To boost
the sales and profit, this department should be properly planed and managed. Naubahar
Bottling Co. Pvt. has a very aggressive and hardworking Sales and marketing department.
Due to its efforts the company has got the first position in sales in 1993 through out the
Pakistan.
• Market Development
• Outlet
• Tactical analysis and routine planning of market strategies.
• Competition activity monitoring
• TOT’s Management & Integrity
• Publicity Management
• Time Management
• EDS (Every Dealer Survey
• Retail Audit
• Stock Verification
• New Account Development (NZD)
• Publicity Verification
• Special Assignments
MARKET DEVELOPMENT
The first and the most basic job of the sales and marketing department are to plan,
develop and make targets. They make strategies to achieve those targets and develop the
market. Especially sales people are assigned monthly, quarterly, annual targets of the
liquid sale. The following major factors are considered in this respect.
Collection of all the data about each and every distributors/ outlets, about its sale,
volume and growth.
Finding the gaps in the market where there is a potential (New Accounts
Development).
Finding the points where competitor is strong and how we can break this point.
Location of non-traditional shops where potential is available for the beverage.
Different offers must be given to break the competitors point or win the mix
point.
OUTLET
Outlets play an important role in strengthening the market. By monitoring them you can
build your market, have their loyalty and increase your sale. Sales persons continuously
visit outlets, listen their complaints and satisfy their needs and requirements. They must
have information about each and every outlet, its growth, and volume. Proper is
maintained to get the feedback from the shopkeepers
On the market side the sales people gather information and on the basis of this
information they further plan and improve their strategies.
On the other hand a constant intention has been given to the competitor’s activities,
strategies and offers. They have been compared with ours and updated according to the
environment.
Following are the key factors to be noted in respect of the competitor:
TOT’S MANAGEMENT
TOT’s means list of items available in a shop, which helps to sell our product
conveniently on priority basis. It is one of the major investments being made by the
company. TOT’s management completely depends upon the Sales force. The factors to
be considered are
Data collection about the sale, volume, growth, profitability, size and place of the
shop
Record of all the TOT’s. given to the shopkeeper.
PUBLICITY MANAGEMENT
To promote the image of the company and its products, publicity is a major tool.
Publicity plays an important role in the promoting the image in the consumer's minds.
Publicity involves Banners, posters, signings, gifts and schemes. Publicity budget is spent
by focusing the followings.
TIME MANAGEMENT
Time management is the most important factor especially in a Beverage industry, because
it is wholly dependent on Sales and Marketing Department. And without proper
management of time this department cannot run. Following are the key factors which are
to be considered necessary for the management of time:
This activity is based on research and marketing people usually perform this activity. It is
basically checking the each and every shop and gets information that what the
shopkeeper is selling and keeping in the shop regarding beverages. This activity is
performed in the form of teams. Structure of the teams is as follows:
PUBLICITY VERIFICATION
This activity involves the following tasks to be performed by the marketing department:
Counters
Wall Chalking
Cabins
Plastic Sign Board
Road Boards
Simple Boards
Panflex
SPECIAL ASSIGNMENTS
Special assignments involve the sales promotion schemes verification like under the
crown scheme (UTC) and other schemes which the company offers quite often.
MY WORK
2. Human resource management Department
3. Marketing and sales Department
4. Shipping Department
5. Purchase Department
6. Account & Finance Department
I learn a lot of practical things during working in these departments. Working of these
departments which I observe during my internship (as I already discussed) is really
admirable. Naubahar Bottling Company provided us real time learning and for better sake
of practical exposure the head of different departments assigned us some special duties
which are as follow.
From very first day of my internship, our HR Manager told us if you want to become
good marketer then it is essential for you to understand the production process of that
product to which you are going to sale. Because in this way you will be able to bitterly
PRODUCTION DEPARTMENT
understand the features and ingredients of your product then you can easily convince
your customers. For that purpose we spent two weeks in production department.
Water treatment
Cyrpe production
Co2 production
Production in main shop floor
Quality control lab
I understand working of these very well as I already discussed besides this Our Assistant
Production Manager Sir Atif sb. also gave me assignment to discuss various jobs on plant
number 5 and also flow of activities & their cycle time which are as follow
What they want to do? The person there sits and watches over the
bottles that are not a proper way to look in the
They prefer to fellow given instruction by crate which contains 24.
management.
3. Uncasing
How to improve the quality
Cycle time: it will 7 times pick crates in one
He should look properly in to the bottles so
minute and each time 4 crates will be picked
that he can pick up the straw.
up. Therefore 28 crates in one minute will be
In case of any fault quickly report to the
picked up.
immediate supervisor
Lubrication should be done in time.
Duties: what they are doing?
5. Controls before washer
There duty is to set time of Machine What they are doing?
To operate the sensor system
In case of any fault quickly report to He is to withdraw straw from empty
the immediate supervisor bottle
He will separate the dirty
How to improve the quality?
Broken bottles
To make the machine efficient proper He is to put the bottle vertically
cleanliness in required. Separate unrelated brands
While leaving his lift he must make machine Separate the broken bottles
ready to be properly used by the coming
person. How to improve the quality
IMPORTANT TERMS
There trimming of job is very hard so they More efficient laser lights can be used
cannot proper concentrate the job. Incentive plan should be proper
There pay is same to the new or fresh worker Supervisor must look after the process more
which gives them a lot of disgrace ness. properly and the girl who is not doing work
There should be a plan of leave the filler with concentration should be accounted for
operator and arrange the alternative employees that.
for emergency cases.
13. Packer operator
11. Filler Operator Helper
What they are doing?
Same duties as operator Just difference to stay
on Conveyor not on Fuller Machine He is to check the efficiency of
machine.
Control the machine work properly and
making in time actions to handle all
operations.
In case of any fault quickly inform
supervisor.
14. Palletizing
Problems
• When so many bottles fall on the
conveyor that takes time to correct Empties
them ( stop the uncaser)
• Correct the bottles which fall on 1. Lack of space.
line(conveyor) 2. Lack of labor.
• Make a report of FM risk management 3. Lack of active supervision.
after every 30 minutes to record the out 4. Lack of control by sales and distribution
put over quality of empties.
• Keep the line clean 5. Employees on daily wages are of low
• After every 30 minutes every worker at quality.
line should leave his place so that the 6. No process for producing acceptable
other worker take his seat empties.
• In those 30 minutes the people which 7. Redefining job of empty godown (delivery
are now off-line of acceptable empties from warehouses for
production).
1. Sort there cases of output at
their proper places Fork lifters
2. Clean the line
3. Make their 30 minutes report 1. Routing between empties to the line is not
being managed.
2. Cycle time is not being optimized.
3. Feeding logic is not rationalized.
4. Space is not optimized.
5. Ready backlog of empties is not optimized.
6. No proper operational procedures.
7. No traffic control.
8. No correlation between work load and
resources.
De-palletize
1. No customer-supplier relationship
implemented.
Filled Inspection
Before washing
1. Low fill / high fill bottles are being drained
1. Lack of space for empty inspection before or taken back to the empties. Some are
washing (space rationalized). supplied at mess.
2. Still receiving straws and unacceptable 2. Maintenance engineers are not coming
empties on the production line. regularly to fix their problems.
3. Pre-washing solution had been decided
previously but never implemented. Shell Conveyor
4. No active supervision.
5. No proper assignation of task. 1. Space problem. Shells need to be shifted
manually.
Washer
Palletize
1. Management of consumables to be
improved.
1. Input / output control left to subcontractors.
Inspection of Empties
Machinery Maintenance
1. No job description.
2. Different tasks assigned to workers instead 1. No preventive maintenance or compliance
of one standard. to.
3. The notion of an acceptable bottle is not 2. Unavailability of quality equipment and
properly defined to the workers. materials required for maintenance (parts).
3. No proper supervision and overall
Filler maintenance policy.
After production department we spent two weeks in sales and marketing department and
MARKETING DEPARTMENT
after acquiring basic knowledge of this department, our head of department assigned us
two assignments which are as under.
Research objectives
The basic purpose of this research is to calculate the Brand equity of three products each
with a different brand name. Out of these three products one is competitor’s product and
two Pepsi products.
This research will help in knowing the popularity of each product and will help company
to understand about the position of each product. The marketing and advertising decision
then can be based on our findings.
Brand Equity
There are different methods of brand equity and each method depends upon how brand
equity is defined brand equity as.
“Brand equity is the position of the brand which effect the purchase of
the customer, it is the share or ownership of that brand which is the
mind of consumer”
Brand loyalty of a particular brand is the percentage of consumption of that brand out of
total consumption of the consumer.
Perceived value is taken as the relative price the customer can pay so it depicts the brand
value. This perceived value will be measured by asking the consumer about the price
above the standard price which it will pay for the brand.
Simply we can say that brand equity difference on customer response so the above two
variables will measure the ability of a brand to positively influence customer response
Research Method
The research method will be in the form of questionnaire survey specially designed to
measure our variables.
Target population
Our targeted population is the end consumer of soft drinks from the age of 16 to 35
within the Gujranwala base.
This range is defined on the basis of some assumptions which are following.
Below 16 years of age mostly consumer doesn’t have the sense of association with the
brand. The consumer below this age needs soft drinks irrespective of its brand.
People above 35 years of age are health conscious and their preference and non
preference is not based on the brand but on the health consciousness so adding people
above this age will make the results biased.
Sample Size
Sampling Area
These areas are selected in order to have a proper mix of high, advantage and low income
categories so that our sample can accommodate variability as present in the true
population.
The above mentioned areas Model town and Cantt are high income areas where as
Satellite town, Civil lines and DC Road are average income areas while Jinnah road is
low income areas while University of the Punjab have a mix of students.
Statistical tool
The statistical tool for interpreting the results of this research expressed in %age and pie
charts.
Questionnaire
We are the students of University of the Punjab Gujranwala campus and we are
conducting the research on the brand Equity of 7up & Dew as compares to Sprite .For
this favor we need your cooperation.
Appendix-A
Marketing Research & Development
Questionnaire
Yes
No
Coke
Pepsi
Dew
Sprite
7up
Team
4. If you are given three drinks which one you will select?
7up
Sprite
Dew
Taste
Availability
Trend
Advertisement
250ml
1 liter
1.5 liter
7. How many glasses of this preferred drink you take out of your total
consumption?
8. If you preferred drink is not available at a shop then will you go to another
shop?
Yes
No
7up
Sprite
Dew
According to the result 52.7% respondent said that they world prefer Mountain Dew if
they offered four drinks sprite, 7up, Dew and Teem. The result showed a significance
preference of Dew over the other drinks making it the most favorite drink among the
four. The second most preferred drink is sprite with 29.1%respondents preferring it
among the four and 7up got the third position in the preference with 15.6%respondent
said that they would select 7up if offered four drinks .The details of the result. The result
details of the result are as under.
In order to understand the reason for preference of consumer for a particular drink the
following variables were included in the question.
Taste
Trend
Availability
Advertising
Color/Transparent
The results have no variation because approximately 85% respondents said that they
prefer those drink because of its taste. This shows that users have developed their taste
for different drinks and the same thing appeared with in each brand category where of the
taste. The details explain following.
3%
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
In order to have a deeper view of the behavior of consumer and loyalty of the consumers
we asked respondent another question, “If your preferred drink is not available at a
shop then will it go to another shop for that drink or buy another drink from the
same shop.” Was asked and result were recoded. In interpreting the results of this
question the respondents were divided into switchers and no switchers and the answer
was recoded as “Yes” and “No” where “Yes represents a non switcher and “No”
representing Switchers.
If u are given four Drinks which one you will select? If your preferred rink is not
available will you go to another shop? Cross tabulation.
Brand No Yes
7up 26 34
Sprite 54 58
Dew 110 93
Teem 4 6
Total 194 191
The drink that will be taken if the preferred drink is not available
The result are very interesting which shows that what percentage of respondents select
which brand in case of the non availability of their preferred brand out of the three brands
so according to the result 33.2%respondents will select sprite in the absence of their
preferred drink while 7up is at second positions where 25.5%respondents said that they
will take 7up if their preferred brand out of the four given brand is not available and only
20% said that they will take Dew .The result is as under.
Brand loyalty
In order to calculate brand loyalty we needed two things, the total purchase
(consumption) of the respondents and the purchase (consumption) of the drink .we
recoded the total consumption of the respondents and also recorded the consumption of
the preferred drink for each brand e.g. total consumption of respondents who preferred
calculate by dividing the 1111 with 2297 and we get 48% brand loyalty.
This is how we calculate the brand loyalty but in our analysis we calculate the brand
loyalty for switchers and non-switchers separately and assigned on different basis but we
have assigned 70% to non-switcher and 30% to switchers and then calculated the
weighted loyalty.
Another way to calculate the loyalty is that we apply the same formula as mentioned
above for each respondent in each brand category and then calculate the average loyalty
of switchers and non switchers in each brand but it has some critique as this will not
calculate the brand loyalty instead it will tell us on average how loyal a respondent is in
each brand.
We have calculated the result in the both way and the result are attached.
Relative Price
As mentioned in the research proposal that we need a measure of perceived value for
the calculation of brand equity so we asked a question from respondent in each brand
category to measure perceived value. This was measured by asking related questions
about price. The price was calculated by taking the average of the prices answered in the
questionnaire by the switchers and non-switchers.
Average consumption
Conclusion
Non-availability of dew is the reason that make user to switch toward sprite and same is
the case with sprite that is sprite is not available people will go for dew. In case where
7up is not available people said they would prefer sprite.
We are not suppose to convert sprite users into dew, or dew users into 7up actually more
promotional strategies can be helpful in increasing sales and brand loyalty. Investment
can be made and budgets can be rescheduled for promotional purposes.
FEASIBILITY OF AQUAFINA
Ninety-seven (97%) percent of the water on the earth is salt water. Salt water is filled
with salt and other minerals, and humans cannot drink this water. Although the salt can
be removed, it is a difficult and expensive process.
Two (2%) percent of the water on earth is glacier ice at the North and South Poles. This
ice is fresh water and could be melted; however, it is too far away from where people live
to be usable.
Less than 1% of all the water on earth is fresh water that we can actually use. We use this
small amount of water for drinking, transportation, heating and cooling, industry, and
many other purposes.
Everything is made of atoms. An atom is the smallest particle of an element, like oxygen
or hydrogen. Atoms join together to form molecules. A water molecule has three atoms:
two hydrogen (H) atoms and one oxygen (O) atom. That's why water is sometimes
referred to as H2O. A single drop of water contains billions of water molecules.
This is the most cost-efficient water filter since it does not use expensive equipment to
remove unwanted substances.
Its office is established at pindi by pass. It is the second brand which is available in the
market after nestle. The demand of the customer also good for the brand of Aqua Safe
Askari
It is not so popular and the customer demand is very low. Its main office in
37Commercial Area .Cavalry Ground Lahore in Gujranwala the office of brand askari is
not available.
Aquafina
Aquafina delivers water so pure, we promise there is nothing but crisp, clean, refreshment
in every bottle.
Its is the brand of Pepsi and it is filled in United Beverage Company W.L.L Kuwait.
It is available in Islamabad, Karchi, Faisalabad and Lahore.
Nestle
In 1992, Nestlé was the first company to dare to launch a mineral water, Valvert, in five
different countries at once. Its originality lay in the use of an all-new plastic, P.E.T.
(polyethylene teraphthalate), which is stronger and more elastic than the PVC used since
1968. Besides, P.E.T. is recyclable.
By the end of 1997, the Group was present on every continent, and the purchase of San
Pellegrino gave it the leadership in the Italian market. In 1998, for the first time in its
history, Nestlé associated its name with bottled water: Nestlé Pure Life.
The brand was launched in Pakistan and soon appeared in Brazil, followed by Argentina,
Thailand, the Philippines, China, and Mexico in 2000. In 2001, India, Jordan, and
Lebanon followed, and in 2002, Egypt, Uzbekistan and the United States.
Nestlé Pure Life is drinking water that has been treated and rematerialized using a
standardized industrial process to ensure purity and quality and is marketed in emerging
countries.
A second product with the Nestlé name was launched in May 2000, this time in six
European countries: Nestlé Aquarel. Natural spring water currently from nine different
springs in France, Germany, Belgium, Hungary, Italy and Spain, Nestlé Aquarel also uses
the multi-source concept to satisfy new consumer expectations, especially for water with
a low mineral content that the whole family can drink.
In April 2002, the Group changed its name to Nestlé Waters, a token of Nestlé's decisive
commitment to the bottled water market, which now represents 9% of its sales. Today,
Nestlé Waters is established in 130 countries and markets about 70 different brands. The
Group is able to offer top quality brands and innovative packaging to meet the individual
needs of the water consumer all over the world, whenever, wherever and however thanks
to the wide variety of its offer in terms of distribution and product mix.
Paani
The paani brand introduced in 1st July 2006.Its office in Gujranwala at 21/Jalil Plaza
Court Road. the brand paani launch only in Gujranwala.its daily sale according to our
research is 20…..40 Cans .Its also provide the facility of Free home Delivery.
Sprigley
We are pleased to introduce Qureshi Industries (Pvt) Ltd. as a leading natural product
manufacturing company in Pakistan. I am sure that you are already aware of worldwide
interest in natural products and their fast growing consumption. We are keen to introduce
traditional Unani and Ayurvedic products of international Standards by Qarshi.
We are the first and only organization in SAARC, Middle East & Africa with six
International Certifications
Accreditations: ISO 9001, ISO-14001, HACCP, ISO 17025 (Norway & PNAC) and
Organic certification. The company was established in 1968. Our modern manufacturing
facility, fitted with latest equipment of European and US origin, commenced operations
in 1988.
WE have marketed natural mineral water under brand name "Sprigley" in Pakistan and
overseas market including Afghanistan.
Area of research
• Model town
• Satellite town
• People colony
• University of the Punjab
• Salesman training & behavior should be improved; they must understand CRM &
PR Concepts.
• Provide stands for putting the bottles as the recent market leader nestle is giving.
• As nestle & aqua-safe have followed the riddle “customer is the king” Aquafina
can be benefited from the success story of these brands.
Distribution Network
If we talking about the main and leader brand of the mineral water it is nestle and the
company follow the strategy of distribution by the both method .the direct and indirect
selling. But our brand Aquafina the company follows the method of indirect method
which is problem to create and know the actual customer demand.
Incentive to distributor
The Nestle and Aqua safe provide the facility to indirect seller and the direct seller
*salesman*to maintain the clients by the receiving amount of bill from agencies and
shopkeeper according to their timing convince.
Each brand of the leader companies advertise as the main brand of the company. So
Aquafina also adopt this policy.
In model town and satellite town the main bakers like Meer bakers has contract with
nestle for selling the mineral water. They are bound to sale only nestle.
In Asim bakers and Al.Maraj Baker in model town satellite town we find different brand
like Aqua safe, Sprigly, Askari.It means they are not bound such Brand.
In university of the Punjab and Punjab College we also find nestle not other Brand.
I spent last two weeks in shipping, purchase and account & finance
department. Head of finance department assigned me duty to make financial
DEPARTMENT
FINANCIAL ANALYSIS
Financial Analysis
Comparative study
“In this study we analysis the proportional change in two years”. Here the comparative
study of 2005with 2006 done then graphically represents the Change between two years.
Raito Analysis
Ratio means “one number expressed in term of another a ratio is statistical yardstick by
mean of which relationship between two or various figures can be compared or measured.
Here we are going to explain the ratio analysis of PepsiCo Inc, and Subsidiaries which is
little bit different from other organizations.
A. Liquidity ratios
B. Activity ratios
C. Solvency ratios
D. Profitability ratios
E. Market ratios
BALANCE SHEET
INCOME STATEMENT
(in million except pert share amount ) 2005 2004
Asset
Current Asset
Cash and cash Equivalents $1716 $1280
Short-term investment 3166 2165
Accounts and notes receivable, net 3261 2999
Inventories 1693 1541
Prepaid expenses 618 654
Total Current Assets 10454 654
Fixed Asset
Property, Plant and Equipment, net 8681 8149
Amortizable Intangible Assets ,net 530 598
Goodwill 4088 3909
Other nonamortizable Intangible Assets 1086 933
Long-term investment 3485 3284
Other Assets 3403 2475
Total Fixed Assets 21273 19348
Total Assets $31727 $27987
Liabilities and Shareholders Equity
Current Liabilities
Short-term obligation $2889 $1054
Account payable 5971 5599
Income tax payable 546 99
Total current liabilities 9406 6752
Long-term liabilities
Long-term Debt obligations 2313 2397
Other liabilities 4323 4099
Deferred Income Taxes 1434 1216
Total Long-term liabilities 8070 7712
Total liabilities 17476 14464
Commitments and Contingencies
Preferred stock, no par value 41 41
Repurchased Preferred Stock (110) (90)
Common Shareholders Equity
Common stock, par value 1 2/3per share (issued 1,82shares) 30 30
Premium 614 618
Retained earrings 21116 18730
Comprehensive loss (1053) (886)
Total 20707 18492
University of the Punjab, Gujranwala Campus
Less: repurchased common stock (6387) (4920) 83
Total common shareholders Equity 14320 13572
Total liabilities and shareholders Equity $3172 $27987
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
RATIO ANALYSIS
Liquidity Analysis
The current ratio is decreased that’s means the total assets against the total liabilities has
been increased. The quick ratio also decreased its mean our inventory does not quickly
become the part of production or on the other hand the goods are sold on credit basis
which decrease the quick ratio. The absolute quick ratio increase to some extend it means
we can easily pay our debts. Working capital decreases so we can limit to meet our daily
expenses.
Activity Ratio
The inventory turn over ratio increase by some points and it’s favorable for our operation
of business. Its mean the inventory more rapidly become the part of production. As the
average collection period is increased. As the company policy is changed that company is
poor to collect the money from the account receivables. Average payment period is
decrease which is favorable. Its means we quickly meet the creditors payment. Total
Asset turnover is decrease because we are not properly utilized the assets it’s become the
cause of less sales volume.
Solvency Ratio
The solvency is increased which shows that our external obligations increases which is
not favorable for the business.. Interest coverage ratio is also in poor area of the ratio
analysis which shows the poor condition than the previous year its mean we have less
amount for pay the interest to creditors. Over all the Solvency condition of the Pepsi Co
is poor with the comparison to the previous year.
Profitability Ratio
The Gross Profit Margin with respect to the previous year is decreased and poor in the
ratio analysis its means our production cost increases which is not earn favorable profit.
Operating profit margin is increase its mean our profit margin increase as compare to
expenses.net profit also decrease by 2%its shows our expenses of Tax and our expenses
for interest increases. Earning per share decreases due to decline in net profit .Return on
equity and return on asset also decreases because net profit. Overall all the analysis of
profitability ratios interpret ate the poor conditions.
Market Ratio
Price Earning Ratio and the Market/ Book ratio are increased and decrease with respect to
the previous year .Price earning ratio increase its shows the company performs better in
secondary market. Market Book ratio decrease because our equity or retained earning
decrease so automatically its effects the market /book ratio.
TREND ANALYSIS
Horizontal Analysis
A comparison of statements over several years reveals direction, speed and extent of a
trend(s). The horizontal financial statements analysis is done by restating amount of each
item or group of items as a percentage.
Vertical Analysis
Like horizontal analysis this can also done for balance sheet and income statement. Here
we assign 100% value to any key item of balance sheet or income statement and then see
portion of other items in this percentage.
"It in loves comparing the firm's ratios to those of others firms in its industry or to
industry averages."
Income statement
115
110
105 2004
100 2005
95
90
Net Revenue operating net income
profit
Balance sheet
150
100 2004
50 2005
0
total assets fixed assets current
assets
Balance sheet
150
100 2004
50 2005
0
current fixed equity
Liabilities Liabilities
income statement(2005)
SWOT ANALYSIS
StrengthS
Well-developed strategy
Pepsi Cola recognizes there is a right time and place for their product; therefore, their
strategy makes room for adjustments
One of the major advantages that Pepsi cola its the global brand and have done strong
advertising and promotion internationally Its Cola flavor, no caffeine, black color,
includes gas, unique taste, attractive logo etc are its strength. People prefer any brand of
Pepsi.
Pepsi is now a days working on this concept because they want to increase their market
share. They are providing quality products to the customers that include their services and
products. They maintain their quality, which includes the hygiene factor and their
packing. They mostly keep a check on the dealers to maintain the quality, which increase
their productivity. They full fill the demands of the consumers by offering different
scheme and by reducing prices. They also give incentives to their dealers. Pepsi Cola
control soft drink market. Their success can be attributed to their overall strategy to
produce and promote their products
Differentiation advantage
This is only factory in Pakistan, which use air curtains .all production plant is covered up.
There is no open space in production plant. 100% hygienic factory exists in Gujranwala
that has high-speed pillars .24 hours filling in factory.
Pepsi Company is the world leader and convenient food & beverages with revenues of
about $27000 billon at over 143,000 employees. The company consists of the snacks
business of Frito lay North America and the beverage in food business is of Pepsi coke
beverage and food. Pepsi’s brands are available in nearly 200 countries & territory. Many
of Pepsi company brands use are over 100 years old but the corporation is relatively
young.
PepsiCo search strong, experienced parties, devoted and loyal people. Basic requirement
of them is financially strong people, devoted with product, loyal with company and
involve in their business.
Pepsi sponsors world cup, cricket series matches to increase its viability and brand
awareness and become more involve with customers.
Weaknesses
After 9-11 scenario and Iraq war, majority Pepsi consumers turned towards other
beverages due to sentimental point of view.
Opportunities
Quality, innovation, and responsiveness of Pepsi to customers, can help them to achieve a
competitive advantage by lowering the cost of creating value, or by adding value above
and beyond that offered by Competitor.
Pepsi Cola strives to create value for their consumers, customers, bottlers and the
community. They believe their success depends on their ability to satisfy their beverage
consumption demands and their ability to add value for their customers. Nevertheless,
attaining efficiency, quality, innovation, and responsiveness to customers requires a
strategic plan.
It is the global brand and have done strong advertising and promotion internationally
Pepsi brands are available in nearly 200 countries .Many of PepsiCo's brand names are
more than 100-years-old, but the corporation is relatively young through its strong
strategic planning.
Threat
Their new strategy for International beverages is to focus on building their core business
in markets in which they are already strong and in emerging markets where they believe
the competitive playing field is essentially level
RECOMMENDATIONS
Management of the company is not participative. The company should use the
participative management system in order to increase the job satisfaction level of
employees
Employee turnover rate is very high in the organization. Management should take
effective actions to reduce it.
NBC major fault is that wasn’t keep its pace with on going changing in industry
unlike Coca Cola. Now NBC combining all it power and trying to approach like Coca
Cola.
Latest reorganizing efforts are necessary to make it cost effective also making its
Company management has to put its all effort to change the prevailing culture of the
company and to put the foundation stone of business oriented culture. In which
To attract the customer in the future NBC have to make extensive effort to give extra
The outlook and interior lay out of the company is another thing which needs to be
improved.
The procedure of taking services from the company must be made easier and straight