You are on page 1of 102

INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

BRIEF HISTORY OF PEPSI COLA INTERNATIONAL

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.

1905--Pepsi-Cola's first bottling franchises are established in Charlotte and Durham,


North Carolina.

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.

1907--Pepsi-Cola Company continues to expand; the company's bottling network grows


to 40 franchises. Pepsi-Cola sells more than 100,000 gallons of syrup.

University of the Punjab, Gujranwala Campus 1


Vision

PepsiCo’s responsibility is to continually improve all aspects of the world in which we


operate environment, social, economic – creating a better tomorrow than today
Tomorrow > Today

We believe Sustainability lives at the intersection of public and corporate interest. It


encompasses citizenship and corporate social responsibility, which are about doing the
right things for society and for the business. It encompasses the health of the Company,
which is about fulfilling our mission of creating financial rewards and growth.

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.

These franchises are located in:

Karachi
Lahore
Multan
Faisalabad
Gujranwala
Peshawar
Islamabad
Sukkher
Hyderabad

NAUBAHAR BOTTLING COMPANY

3
The

Company in which I done Internship

Organization: Plant capacity


Naubahar Pepsi cola
Naubahar Bottling industry has a moderate
Company and big plant. It can
produce 600 bottles in
Address: one minute. It has also
the water treatment plant
S.I.E, Model Town, which can take raw
Gujranwala, Pakistan water from 500 dept,
treat and filter it and
Naubahar is a largest then store it. Plant can
franchise of Pepsi cola store 20’000 gallons
International .producing
and distributing
international brands like
Pepsi, teem, & 7up and
Mountain dew .plant is Location Advantage
situated in Gujranwala,
Pakistan
Water level is up than
other locations and
quality of water is good,
due to this it is cost
effective.

About employees

There are 1500


employees attached with
the production
department in with
about 800 labors are
permanent and others
are on contract base. 120
employees attaches with
the sales and other
departments.

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 company operates through a well-established network of a number of distributors.


The company has two types of delivery systems i.e.

 Director delivery system

 Indirect delivery system

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:

University of the Punjab, Gujranwala Campus 5


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

Direct Delivery System

Manufacturer Retailers Customers

Indirect Delivery System

Manufacturers Distributor Retailers Customers

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.”

University of the Punjab, Gujranwala Campus 6


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

OUR CORE VALUES

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.

EMPLOYEE RESPECT & DIGNITY

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.

TEAM BASED APPROACH

We work towards achievement of our vision & mission as a combines group. We


encourage inter & intra-departmental communications. We treat our colleagues
as our internal customers & ensure that the requirements of internal customer
focus are always met.

QUEST FOR QUALITY

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.

University of the Punjab, Gujranwala Campus 7


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

BOARD OF DIRECTORS OF PEPSICO

University of the Punjab, Gujranwala Campus 8


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

University of the Punjab, Gujranwala Campus 9


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

University of the Punjab, Gujranwala Campus 10


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

MANAGEMENT OF NAUBAHAR BOTTLING COMPANY

Managing Director (Owner) Mr. Shamim Khan

Director Mr. Adnan A. Khan

General Manager Mr. Aftab A. Khan

Sales Manager (Local) Mr. Saeed Ullah Khan

Sales Manger (Out) Mr. Ahmad Khan

Plant Manager Mr Aarif Sarwar Qureshi

Production Manager Mr Muhammad Khan

Human Resource Manager Mr. Asif Hamid

Business Analyst Mr. Asim Awan

Marketing & Services Manager Mr.Rana Qamar Bilal

Shipping & MIS Manager Mr Naveed Ahmad

Audit Manager Mr.Malik Hameed

Finance Manager Mr. Abid Hussain

Quality Control Mr.Aftab Tassaduqe

University of the Punjab, Gujranwala Campus 11


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

MANAGEMENT HIERARCHY

University of the Punjab, Gujranwala Campus 12


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

MARKETING MIX OF NAUBAHAR BOTTLING

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”

Naubahar Bottling Company provides a winning combination of products and services to


its prime customers. PepsiCo is one of the world leading companies, which ensures
complete security, and reliability in all transactions.

University of the Punjab, Gujranwala Campus 13


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

PRODUCTS

A product is anything that can be offered to a market to satisfy


a want or need and a service is an act or performance that is
essentially intangible and does not result in the ownership of
anything. What products or services have to be offered to the target market depends on
the market requirement and also the organization’s profits. The organization will offer
those products and services, which result in maximum profits and minimum costs.

There are following contents according to which types of PEPSI are described.
• Cola
• Coffee-related
• Diet-related
• Fictional Varieties
• Parodies

BRANDS INTRODUCED IN PAKISTAN

• Pepsi cola
• Pepsi Diet
• Teem
• Pepsi Twist
• Marinda
• Aquafine
• 7 up
• Mountain Dew

PEPSI MARKETING PHRASES

University of the Punjab, Gujranwala Campus 14


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

1909-1939: Delicious and Healthful


1939-1950: Twice As Much For A Nickel Too
1950-1963: The Light Refreshment
1953-1961: Be Sociable
1961-1963: Now It's Pepsi For Those Who Think Young
1963-1967: Come Alive! You're In The Pepsi Generation
1967-1969: Taste That Beats The Others Cold
1969-1973: You've Got A Lot To Live, Pepsi's Got A Lot To Give

1973-1975: Join The Pepsi People Feeling' Free


1975-1978: Have A Pepsi Day
1978-1981: Catch That Pepsi Spirit
1981-1982: Pepsi's Got Your Taste For Life!
1983-1983: Pepsi Now!
1984-1991: Pepsi, The Choice Of A New Generation
1991-1995 "Got to Have It".
1995-1997 "Nothing Else is a Pepsi".
1997-1999 "Generation Next".
1999-2000 "Ask for More"/"The Joy of Cola".
2000-2003 It's the Cola"/"Dare for More".
2003-Onward Dil ha tu mango more

University of the Punjab, Gujranwala Campus 15


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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.

University of the Punjab, Gujranwala Campus 16


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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

University of the Punjab, Gujranwala Campus 17


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

 TEEM
 7UP
 7UP DIET
 MOUNTAIN DEW

COMPLETE PRODUCT LINE OF NAUBAHAR BOTTLING


COMPANY (NBC)

University of the Punjab, Gujranwala Campus 18


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

BRANDS PACKING UNITS VOLUME


PEPSI 250 ML 24 bottles per case 250 ML per bottle
1000 ML 12 bottles per case 1000 ML per bottle
1500 ML(PET) 6 bottles per case 1500 ML per bottle
175 ML 24 bottles per case 175 ML per bottle
POST MIX 1 Cylnder 114000 ML
1000 ML(PET) 6 bottles per case 1000 ML per bottle
330 ML CAN 12 bottles per case 330 ML per bottle
300 ML(NR) 12 bottles per case 300 ML per bottle
MIRINDA 250 ML 24 bottles per case 250 ML per bottle
1000 ML 12 bottles per case 1000 ML per bottle
1500 ML(PET) 6 bottles per case 1500 ML per bottle
POST MIX 1 Cylnder 96000 ML
1000 ML(PET) 6 bottles per case 1000 ML per bottle
330 ML CAN 12 bottles per case 330 ML per bottle
300 ML(NR) 12 bottles per case 300 ML per bottle
TEEM 250 ML 24 bottles per case 250 ML per bottle
1000 ML 12 bottles per case 1000 ML per bottle
1500 ML(PET) 6 bottles per case 1500 ML per bottle
POST MIX 1 Cylnder 114000 ML
1000 ML(PET) 6 bottles per case 1000 ML per bottle
300 ML(NR) 12 bottles per case 300 ML per bottle
7UP DIET 250 ML 24 bottles per case 250 ML per bottle
1500 ML(PET) 6 bottles per case 1500 ML per bottle
330 ML CAN 12 bottles per case 330 ML per bottle
7UP 250 ML 24 bottles per case 250 ML per bottle
1000 ML 12 bottles per case 1000 ML per bottle
1500 ML(PET) 6 bottles per case 1500 ML per bottle
POST MIX 1 Cylnder 114000 ML
1000 ML(PET) 6 bottles per case 1000 ML per bottle
330 ML CAN 12 bottles per case 330 ML per bottle
MOUNTAIN DEW 250 ML 24 bottles per case 250 ML per bottle
1500 ML(PET) 6 bottles per case 1500 ML per bottle
330 ML CAN 12 bottles per case 330 ML per bottle
PEPSI DIET 250 ML 24 bottles per case 250 ML per bottle
1500 ML(PET) 6 bottles per case 1500 ML per bottle
330 ML CAN 12 bottles per case 330 ML per bottle
University
300ofML(NR)
the Punjab, Gujranwala
12 bottles Campus
per case 19 bottle
300 ML per
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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

University of the Punjab, Gujranwala Campus 20


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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

NBC Products Prices


250 ML of each brand Rs 10
1000 ML of each brand Rs 30
1500 pet ML of each brand Rs 40

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

University of the Punjab, Gujranwala Campus 21


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

targets customer easily. Following are the major areas which come under operations of
NBC:

 Sialkot
 Gujranwala
 Gujrat
 Shahdara
 Jehlum
 Sheikhupura
 Narowal (Recently Established

Main customers in Gujranwala are

• Shelton hotel & Bakers


• Meer bakers
• Asim bakers
• Arif cold corner
• Wapda town marriage town
• Azim tea and cold corner
• Rehman cold corner
• Beauty general store
• Al jennet banquet hall

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

Following are the competitors of NBC

• Coca cola is one of the major competitors


• Ammarat cola
• Macca cola
• Rc cola
• Double cola
• Jolt cola

University of the Punjab, Gujranwala Campus 22


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

PROMOTION

University of the Punjab, Gujranwala Campus 23


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

PepsiCo is actively participating in promotion of its products and services through


advertisement and other promotional schemes. PepsiCo spends a major portion of its
budget on advertising. Advertising is done through different ways like

• Point of Purchase Promotion

• Personalizes Marketing

University of the Punjab, Gujranwala Campus 24


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

• 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.

University of the Punjab, Gujranwala Campus 25


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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.

University of the Punjab, Gujranwala Campus 26


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

• HRM
• MIS
• Purchase
• Production
• Shipping
• Marketing & Sales
• Cash and Accounts
• Audit & Taxation

HRM DEPARTMENT

Recruitment Procedure in NBC

Major sources of potential job candidates are

 Newspaper Adds
 Internal Search Advertisement
 Employees Referrals (Permanent Employees of NBC)
 Manager’s Recommendations

University of the Punjab, Gujranwala Campus 27


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

The candidates are selected on the basis of

 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.

OBSERVATION & SUGGESTION


There should be proper planning by:

 Assessing current human resource standards & generating human resources


inventory.

 Assessing future human resources needs by organization’s strategies & future


programs.

 After assessing current capabilities of future needs a program should be


developed to have right person for the right job & at right time.

 At the moment, HR department is itself facing staffing problem & it seems to be


non existent.

University of the Punjab, Gujranwala Campus 28


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

 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:

 To know development & training needs of employees.


 To get performance feed back.
 Anticipate direction for future performance
 To change/ compensation system.

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.

There would be lobbies or affiliations in the organization. These should be canalized in


positive approach e.g. mentoring, communication link instead of source of conflicts.

Teams (functional, self-managed, cross functional, problem solving) should be to speed


decisions, increase performance, facilitate cooperation & improve employee morale.

There must be some channel to communicate employees problem/suggestion/comments

University of the Punjab, Gujranwala Campus 29


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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.

Best employee of the month award should for each department.

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.

University of the Punjab, Gujranwala Campus 30


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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 following systems are working in the department..

PLANT EFFICIENCY SYSTEM

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.

SALES & DISTRIBUTION SYSTEM

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

University of the Punjab, Gujranwala Campus 31


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

 load report ( dealer wise, depot wise )


 settlement sheet ( dealer wise, depot wise )
 Shipping shift summary
 Daily liquid out report
 Agent wise load out summary
 Agent wise sales summary
 District wise sales summary
 Computerize sales statements
 (monthly, semi annually, annually)
 Cash report

Filled inspection, breakage, actual production, paid time, stoppage, production time etc

GENERAL LEDGER SYSTEM

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.

MARKETING INFORMATION SYSTEM

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:

 Name & address of each outlet. Price details


 Empty details
 Package details
 Publicity position
 Quality status

The system is designed in such a way that reports can be obtained about outlets:

 Distributor & area wise


 Route wise
 District wise

University of the Punjab, Gujranwala Campus 32


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

The system is useful in accessing market & investment position in each area.

FUTURE PLANS

The future program of the department is:

 Networking with Depots


 Internet development within organization
 ERP Implementation in the Company as a whole

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.

University of the Punjab, Gujranwala Campus 33


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

PURCHASE AND PROCUREMENT DEPARTMENT

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

• Balochistan Glass Factory Karachi


• Standard Manufacturers Lahore
• Plasco Plastics Hattar
• Ghani Glass Peshawar
• Concentrate from PCI
• Crystallite Products (pvt) Ltd
• Kaas-ul-Musaffa Karachi

University of the Punjab, Gujranwala Campus 34


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

Supplier selection

Supplier selection is made mostly according to their quotations in which the two factors
have main focus. These are

• Quality
• Price

Domestic and Foreign purchases

The purchases in NBC beverages are made from two sources;


• Domestic Markets
• Foreign Markets

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.

University of the Punjab, Gujranwala Campus 35


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

AUDIT & TAXATIONDEPARTMENT

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

NBC Beverages has to pay two 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

Output tax is implemented on the sales.

At the end the tax is calculated as:

Output tax – input tax = actual tax which has to be paid

University of the Punjab, Gujranwala Campus 36


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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:

250ML 1000ML 1500ML 1000ML


Plant # 250ML (NR)
(RB) ( RB) (PET) (PET)

P # 01 - 1000 Cs/hr 500Cs/hr - -


P # 02 - - 325Cs/hr 350Cs/hr 300Cs/hr
P # 03 1500Cs/hr - - - -
P # 04 1250Cs/hr - - - -
P # 05 1375Cs/hr - - - -

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.

University of the Punjab, Gujranwala Campus 37


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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

University of the Punjab, Gujranwala Campus 38


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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.

University of the Punjab, Gujranwala Campus 39


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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

• Check payment of payroll to employees including wages, overtime, bonuses etc.

• Handling of monthly tax statements.

Computerized general ledger system is working and shows the result of each transaction
up to balance sheet and income/profit and loss statement.

University of the Punjab, Gujranwala Campus 40


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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.

The Shipping System of NBC is responsible for the management of the


Following tasks:

 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 is also responsible for proper management of empties and liquid


vehicles loading and off-loading i.e. time management is very important in this
case.

 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.

 The management of other empty stock is also the responsibility of Shipping


Department and its exchange is especially important in this case.

SUPPLY OF EMPTY TO PLANTS

Shipping department has three godowns for empty storage. These are:

 Taran Taran
 Modern Soap
 Qabza Factory

University of the Punjab, Gujranwala Campus 41


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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.

OBSERVATION AND SUGGESTIONS

 Extremely poor situation condition at godown # 2.


.
 It is a very difficult task to manage vehicles parking at unloading pad, providing
way to forklifts transferring empty to the plants, and maintaining lanes properly.
Trunks and other vehicles have to wait for hour in queue for their term.

 No financial or statistical technique is used to calculate what is appropriate stock


level in a depot, when liquid should be sent and in what quantity

 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.

 Shipping department is working is bounded capacity in terms of storage space and


tuff conditions.

University of the Punjab, Gujranwala Campus 42


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

MARKETING & SALES DEPARTMENT

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.

FOLLOWING ARE THE MAJOR CONTENTS OF THIS DEPARTMENT

• 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.

University of the Punjab, Gujranwala Campus 43


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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

TACTICAL ANALYSIS & ROUTINE PLANNING OF MARKET STRATEGIES

On the market side the sales people gather information and on the basis of this
information they further plan and improve their strategies.

 Checking of the designated area, its sale, volume and growth.


 Calculation of daily sales achievements on monthly target basis
 Location of the poor performance factors and analyzing their cause
 Finding their solution and getting the approval for its execution.
 Planning for a schedule for the designated area.
 Visiting the area according to the plan and reporting it to the higher management

COMPETITION ACTIVITY MONITORING

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:

 Discounting, Promotional schemes, empty management,


 Cash credit, Vehicles injection (etc.)
 Reporting to the higher authority.
 Taking action to block the competitors activities and monitoring Our

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.

University of the Punjab, Gujranwala Campus 44


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

 Further plan for the injection of TOT’s


 Checking all the equipment time by time any removing their complaints

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.

 Location of the area.


 Arranging the sources and requirements and making priority lists
 Carefully arranging the publicity execution.

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:

 Drop size of a specific area.


 Tonnage of the vehicle for that specific area.
 Total operational time management
 Idle time monitoring and elimination.
 Calculation of outlet knocks time.
 Calculation of available knock time for each outlet of a specific area.
 Define and ideal knock time for an outlet.
 Setting of a comprehensive plan, by considering all the above factors

EVERY DEALER SURVEY (EDS)

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:

Team Leader (Marketing & Research Executive MRE) 01


Team Members (Marketing & Research Offices/Surveyor) 03

The following activities are present in EDS

University of the Punjab, Gujranwala Campus 45


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

 Market Visit (Data Collection about Shops)


 Data Analysis
 Report Preparation

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.

University of the Punjab, Gujranwala Campus 46


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

University of the Punjab, Gujranwala Campus 47


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

During my internship in the Naubahar Bottling Company, Small Industrial Estate


Model Town Gujranwala, I really enjoyed to work with the staff of
Company, from 17thJuly to 26 August, 2006 and have a wish to be
employee of Naubahar Bottling Company. It was almost impossible to
work in all the departments within that limited time. But on my
request, the staff of the company provided me the opportunity to work
in the different departments for the sake of practical knowledge. I am
really very thankful to HR manager Sir Asif sb that provides me a
learning environment in the company.
During my internship training I work in following departments
1. Production Department

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.

University of the Punjab, Gujranwala Campus 48


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

University of the Punjab, Gujranwala Campus 49


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

ASSIGNMENT OF PRODUCTION DEPARTMENT

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.

Production of beverage is a huge process; it consists upon different activities like

 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

University of the Punjab, Gujranwala Campus 50


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

Production Department How to improve the Quality of


their work?
Important jobs Of PLANT no: 5
Using proper way recording the pressure he
1. Depallettizing can put creates on conveyor so that breakage
2. before Uncaser Inspection. can be reducing.
3. Uncasing
4. Straw control Work with constant efficiency in full hour is
5. Controls before washer difficult .They pay full attention in first few
6. Washer operator minutes but not in remaining time,
7. Washer helper
8. Light inspection Diligence is actually the
9. Filler conveyor control required thing.
10. Filler operator To inform the supervisor about the broken
1. 11.Filler operator helper pallet
12. Filled inspection
13. Packer operator
14. Palletizing 2. Before uncase inspection
15. Shell washer operator
16. Shell controls What they are doing
17. Supervisors
 He will separate the dirty & empty
1. Depallettizing bottles
 Separate unrelated brands
Cycle time: it takes one min to pick  Withdrawal of straw
32-35 crates from pallet and put it over the  Separate the broken bottles
conveyor.
What they are doing: What they want to do?
 Picking crates from pallet. Proper look after of conveyer
 Putting the bottle over the conveyor. To inform the maintenance officer in case of
 Removing empty pallets so that Fork any fault of conveyer
lifter can put another crates of bottle
and pick the empty pallets. Current situation at plant # 5

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.

University of the Punjab, Gujranwala Campus 51


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

Bottles so their must be another person on the


other side .Otherwise quality can not be  He is to put the bottle vertically
control when a person gives only 2 seconds  Separate unrelated brands
per crate.
 Separate the broken bottles

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

4. Straw control He should look properly in to the bottles so


that he can pick up the straw.
Duties: what they are doing? In case of any fault quickly report to the
immediate supervisor
 He is to withdraw straw from empty Lubrication should be done in time.
bottle
 He will separate the dirty
Broken bottles

University of the Punjab, Gujranwala Campus 52


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

6. Washer operator How to Improve Quality?


Cycle time: washer picks 38 bottles in one turn More efficient lights can be used
and in one minute it picks 684 bottles in 8
cycles. Incentive plan should be proper
What they are doing? Supervisor must look after the process more
properly and the girl who is not doing work
He properly put the bottles vertically. with concentration should be accounted for
Maintain the machine properly. that.
How to improve the quality? 9. Filler conveyor control
In case of any fault quickly report to the What they are doing
immediate supervisor
Lubrication should be done in time. He is helper and controls the bottles on line or
conveyor.
7. Washer helper He is also responsible for constant or variable
timing of bottle line arrangement
He is for help in putting the bottles vertically. Quality control
8. Light inspection --empty There trimming of job is very hard so they
cannot proper concentrate the job.
What they are doing? There pay is same to the new or fresh worker
which gives them a lot of disgrace ness.
 Wash hands, wear gulfs, caps uniform. There should be a plan of leave the filler
 Duty changes after 20 minutes operator and arrange the alternative employees
 He is to withdraw straw from empty for emergency cases.
bottle
 He will separate the dirty 10. Filler operator
 Broken bottles
 He is to put the bottle vertically What they are doing?
 Separate unrelated brands  Properly check the plant to remove the
 Separate the broken bottles fault.
 To separate Foaming bottle  Properly check the plant to remove the
fault.
 If there is any fault he should informed
the mechanical operator.

IMPORTANT TERMS

University of the Punjab, Gujranwala Campus 53


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

How to improve quality?


 He check the level of water in the
bottle More efficient lights can be used
 He also controls the level of water in
bottle by setting the Valve. Incentive plan should be proper
 He also liable to see the line
arrangement of bottle at a time may be Supervisor must look after the process more
one or more. properly and the girl who is not doing work
 Properly check the van tube and cone with concentration should be accounted for
washer. that.
 Wash the filler tank before changing
any tank. 9. Filler conveyor control
 Informed the water treatment of
provide the water as well the syrup
department for syrup and ammonia
What they are doing
department for cool gas.
He is helper and controls the bottles on line or
conveyor.
How the improve the Quality?
He is also responsible for constant or variable
timing of bottle line arrangement
There trimming of job is very hard so they
Quality control
cannot proper concentrate the job.
There pay is same to the new or fresh worker
There trimming of job is very hard so they
which gives them a lot of disgrace ness.
cannot proper concentrate the job.
There should be a plan of leave the filler
There pay is same to the new or fresh worker
operator and arrange the alternative employees
which gives them a lot of disgrace ness.
for emergency cases.
There should be a plan of leave the filler
operator and arrange the alternative employees
11. Filler Operator Helper
for emergency cases.
Same duties as operator Just difference to stay
on Conveyor not on Fuller Machine
10. Filler operator

What they are doing?


 Properly check the plant to remove the
fault.
 Properly check the plant to remove the
fault.
 If there is any fault he should informed
the mechanical operator

University of the Punjab, Gujranwala Campus 54


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

12. Filled inspection--Filled


 He check the level of water in the
bottle What they are doing?
 He also controls the level of water in
bottle by setting the Valve.  Wash hands, wear gulfs, caps uniform.
 He also liable to see the line  Duty changes after 20 minutes
arrangement of bottle at a time may be  He is to withdraw straw from empty
one or more. bottle
 Properly check the van tube and cone  He will separate the dirty
washer.  Broken bottles
 Wash the filler tank before changing  He is to put the bottle vertically
any tank.
 Separate unrelated brands
 Informed the water treatment of
 Separate the broken bottles
provide the water as well the syrup
department for syrup and ammonia  To separate Foaming bottle
department for cool gas.  Check low high level

How the improve the Quality? How to improve quality?

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.

University of the Punjab, Gujranwala Campus 55


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

14. Palletizing

Cycle time: he puts 50 crates on pallet in 2 Appendix


minute.
What is a Dirty bottle?
What they are doing?
1. Bottles with web
Picking the filled crates from conveyor and 2. Bottles with rain water or any
putt on plat other type of dirty water
3. Bottles which were used for
How to improve the quality? milk
4. Bottles with any type of sticky
To impose pressure to avoid brakeage of material
bottles 5. Bottles with straw in them
6. Bottles with shoppers or rappers
15. Shell washer operator in them
7. Bottles with insects
He is to wash the crates using the water pump 8. Bottles with rust
He is to control pump by managing the ribbon 9. Bottles which are of any other
to stop pump disorder brand
10. And any type of bottles
16. Shell controls containing foreign matter
• Take out the damage bottles from the
These two boys bring the shell over the packer cases which are on conveyor
machine
Ensures the supply of shells according to the What a Damaged bottle include
need
1. Bottles which are broken from mouth or
17. Supervisors bottom or both or broken from any other side

What they are doing? 2. Bottles with damage monogram

While operating the machine, stop the machine


 To keep data of attendance of all the
(uncaser) when you see that the conveyor or
employees of specific plant.
line is field with bottles
 To count that crate is full with 24
bottles
 To keep cleanliness
 Check and balance

University of the Punjab, Gujranwala Campus 56


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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.

University of the Punjab, Gujranwala Campus 57


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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.

1. SOP not cross functionally agreed, Solutions


communicated and supervised.
Allocating areas for SKUs (marking & logic)
Coding Operator Defining frequency of lifters: unloading time,
sorting time, and delivery time (scheduling
1. Lacks overall authority. logic of empty godown – both areas)
2. No real role in reporting. Arrangement for unacceptable empties (far
3. Performance not being evaluated. No job from good empties or other godown)
description; function does not exist on paper. Defining role of each empty godown (specific
4. Lack of recognition. roles)
5. Area of supervision too large (2 for 5 lines)
Equipment required for converting bad empty
to good empty (conveyors, tubs, water hoses,
etc.)

University of the Punjab, Gujranwala Campus 58


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

University of the Punjab, Gujranwala Campus 59


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

ASSIGNMENTS OF SALES & MARKETING DEPT.

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.

 Finding brand equity of Dew, Sprite and 7up


 Report on available mineral water in market because company wants to launch
Aquafina

University of the Punjab, Gujranwala Campus 60


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

BRAND EQUITY OF DIFFERENT BRANDS

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.

These products are

7up. Sprite. Dew

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”

In simple words it is positive attitude of the consumer towards that brand.

So there are two variables

 Brand loyalty (it is calculated by the frequency of purchase).


 Perceived value (it is calculated by the relative price a customer can pay this
product).

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.

University of the Punjab, Gujranwala Campus 61


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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

The sample size will be 200 respondents.


The selection area of the sample size independent upon the cost and time
considerations.

Sampling Area

 The sampling areas are the following


 Model Town
 Satellite Town
 DC Road
 University of the Punjab
 Cantt
 Civil line Road
 Jinnah Road

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.

University of the Punjab, Gujranwala Campus 62


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

So the sample frame has a good potential of our respondents.

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

Area ---------------------- Gender--------------------


Age------------------------ Occupation----------------

1. Do you take any soft drink/bottles?

 Yes
 No

2. How many glasses of soft drink do you take in a month?

3. Which drink you like most?

 Coke
 Pepsi
 Dew
 Sprite
 7up
 Team

4. If you are given three drinks which one you will select?

 7up
 Sprite
 Dew

University of the Punjab, Gujranwala Campus 63


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

5. Why you prefer this drink?

 Taste
 Availability
 Trend
 Advertisement

6. In which size you take this drink mostly?

 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

9. If “NO” then which another drink you will take?

 7up
 Sprite
 Dew

10. When you take this soft drink?

 When you are thirsty


 With dinner
 As a refreshment

University of the Punjab, Gujranwala Campus 64


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

The Results on the basis of the question Related on the


Research brand equity
 Most preferred brand of the users

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.

Brand Frequency Percentage


7up 60 15.6
Sprite 112 29.1
Dew 203 52.7
Teem 10 2.6
Total 385 100

University of the Punjab, Gujranwala Campus 65


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

 Reason for preferences

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.

Question options Frequency Percentage


Taste 325 84.4
Availability 29 7.5
Trend 12 3.1
Advertising 11 2.9
Transparent 8 2.1
Total 385 100

University of the Punjab, Gujranwala Campus 66

3%
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

Identifying the Switcher and non Switcher

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

University of the Punjab, Gujranwala Campus 67


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

 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 Frequency Percentage


7up 98 25.5
Sprite 128 33.2
Dew 79 20.5
Teem 47 12.5
Coke 15 3.9
Pepsi 17 4.4
Shezan 1 .3
Total 385 100

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.

University of the Punjab, Gujranwala Campus 68


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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

The consumption of different brands was calculated as:

Brand Consumption Avg. % Results


consumption per
consumer
7up 1111 289 15.43
Sprite 2011 524 27.93
Dew 4076 1061 56.62

University of the Punjab, Gujranwala Campus 69


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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.

University of the Punjab, Gujranwala Campus 70


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

University of the Punjab, Gujranwala Campus 71


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

FEASIBILITY OF AQUAFINA

The History of Water

About 70% of the earth's surface is covered with water.

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.

What is water made from?

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.

Methods of Water Purification

This is the most cost-efficient water filter since it does not use expensive equipment to
remove unwanted substances.

University of the Punjab, Gujranwala Campus 72


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

History of Major Brands Available Gujranwala


Aqua safe

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.

University of the Punjab, Gujranwala Campus 73


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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.

University of the Punjab, Gujranwala Campus 74


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

PRODUCT LINE OF DIFFERENT BRANDS


Brand 0.5 liter Price 1.5 liter Price Others Price
Name
Dico Yes 12 No -- -- --
Springley Yes 14 Yes 24 -- --
Aqua safe Yes 14 Yes 24 10 liter 60
Askari -- -- Yes 22 6 liter 50
Aquafina Yes 10 Yes 20 -- --
Nestle Yes 15 Yes 20 -- --
Panni Yes 10 Yes 25 19liter 90
Sufi -- -- Yes 24 19 liter 90

Area of research

• Model town
• Satellite town
• People colony
• University of the Punjab

University of the Punjab, Gujranwala Campus 75


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

How to increase customers for Aquafina


• Customer oriented policies are infect required.

• Advertising budgets needs to be revised as we see Paani is not yet arrived in


market but have a good awareness level among people.

• Pricing strategies can be considered and competitive prices should be followed


people think that low prices leads toward lower quality. Psychological factors
should be considered.

• Salesman training & behavior should be improved; they must understand CRM &
PR Concepts.

• More Benefits to shopkeepers should be introduced.

• 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.

University of the Punjab, Gujranwala Campus 76


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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.

Promotion and Advertising

Each brand of the leader companies advertise as the main brand of the company. So
Aquafina also adopt this policy.

Contracts in the organization of mineral water brand

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 people colony only Utility store is bound to sale nestle.

In university of the Punjab and Punjab College we also find nestle not other Brand.

University of the Punjab, Gujranwala Campus 77


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

University of the Punjab, Gujranwala Campus 78


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

ASSIGNMENT OF FINANCE DEPARTMENT

I spent last two weeks in shipping, purchase and account & finance
department. Head of finance department assigned me duty to make financial

FINANCE & OTHER DEPARTMENT


comparison of Pepsi Cola International and Coca Cola International. Result
of this study is as follow

DEPARTMENT

University of the Punjab, Gujranwala Campus 79


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

FINANCIAL ANALYSIS

Financial Analysis

"Financial statement analysis is the process of identifying of financial strengths and


weaknesses of the firm by properly establishing relationship between the items of the
balance sheet and the profit &loss account," and it is done through ratio 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.

Financial ratios can be divided into the following five parts

A. Liquidity ratios
B. Activity ratios
C. Solvency ratios
D. Profitability ratios

University of the Punjab, Gujranwala Campus 80


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

E. Market ratios

University of the Punjab, Gujranwala Campus 81


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

BALANCE SHEET

(in million except pert share amount ) 2005 2004


Net Revenue $32562 $29261
Cost of Sales 14176 12674
Selling, general and administrative expenses 12314 11031
Amortization of intangible assets 150 147
Restructuring and repair Charges - 150
Mergers Related Cost - -
Operating profit 5922 5259
Bottling equity Income 557 380
Interest expense (256) (167)
Interest income 159 74
Income from Continuing before the income Taxes 6382 5546
Provision from income Taxes 2304 1372
Income from continuing operations 4078 4174
Taxes benefit from Discontinued Operation - 38
Net Income $4078 $4212
Net Income per common Share ----Basic
Continuing Operations $2.43 $2.45
Discontinued operations - 0.02
Total 2.43 2.47
Net Income per common Share ----Diluted
Continuing Operations $2.39 $2.41
Discontinued operations - 0.02
Total $2.39 $2.44*

University of the Punjab, Gujranwala Campus 82


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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

University of the Punjab, Gujranwala Campus 84


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

Ratios Year Year Comments


2004 2005
Liquidity Ratios
Current Ratio 1.28 1.11 Poor
Quick Ratio 1.05 0.93 Poor
Absolute Liquid Ratio 0.51 0.52 Good
Working Capital $1887000 $1048000 Poor
Activity Ratios
Inventory Turnover Ratio 8.22 times 8.37times Good
Average Collection Period 69days 66days Poor
Average Payment Period 37days 36days Good
Total Assets Turnover Ratio 1.05times 1.03times Poor
Solvency Ratios
Solvency Ratio 0.51 0.55 Poor
Interest Coverage Ratio 31.49time 23.13time Poor
Profitability Ratios
Gross Profit Margin 56.69% 56.46% Poor
Operating Profit Margin 17.97% 18.19% Good
Net Profit Margin 14% 12% Poor
Earning Per Share 2.36 2.29 Poor
Return on Equity 31.03% 28.47% Poor
Return on total Assets 15.05% 12.87% Poor
Market Ratios
Price Earning Ratio 27.47 28.31 Good
Market/Book Ratio 8.53 8.07 Poor

University of the Punjab, Gujranwala Campus 85


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.

University of the Punjab, Gujranwala Campus 86


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

TREND ANALYSIS

In trend analysis we done two types of analysis, these are

Horizontal Analysis

It is conducted by setting consecutive balance sheet, income statement side-by-side and


reviewing changes in individual categories on a year-to-year or multiyear basis.

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.

Cross sectional analysis

"It in loves comparing the firm's ratios to those of others firms in its industry or to
industry averages."

University of the Punjab, Gujranwala Campus 87


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

University of the Punjab, Gujranwala Campus 88


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

Description 2004 2005 Change Comments


Net Revenue 100% 111% 11% Favorable
Cost of Sales 100% 111% 11% Unfavorable
Selling, general and administrative 100% 111% 11% Unfavorable
expenses
Amortization of intangible assets 100% 102% 2% Unfavorable
Restructuring and repair Charges 100% -- -- --
Mergers Related Cost 100% -- -- --
Operating profit 100% 113% 13% Favorable
Bottling equity Income 100% 147% 47% Favorable
Interest expense 100% 153% 53% Unfavorable
Interest income 100% 215% 115% Favorable
Income from Continuing before income 100% 115% 15% Favorable
Tax
Provision from income Taxes 100% 168% 68% Unfavorable
Income from continuing operations 100% 98% -2% Favorable
Taxes benefit from Discontinued 100% -- -- --
Operation
Net Income 100% 111% 11% Favorable

Income statement

115
110
105 2004
100 2005
95
90
Net Revenue operating net income
profit

University of the Punjab, Gujranwala Campus 89


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

University of the Punjab, Gujranwala Campus 90


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

Description 2004 2005 Change Comments


Asset
Cash and cash Equivalents 100% 134% 34% Favorable
Short-term investment 100% 146% 46% Favorable
Accounts and notes receivable, net 100% 142% 42% Favorable
Inventories 100% 109% 9% Favorable
Prepaid expenses 100% 94% -6% Favorable
Total Current Assets 100% 121% 21% Favorable
Fixed Asset
Property, Plant and Equipment, net 100% 107% 7% Favorable
Amortizable Intangible Assets ,net 100% 69% -31% Unfavorable
Goodwill 100% 104% 4% Favorable
Other nonamortizable Intangible Assets 100% 116% 16% Favorable
Long-term investment 100% 106% 6% Favorable
Other Assets 100% 137% 37% Favorable
Total Fixed Assets 100% 109% 9% Favorable
Total Assets 100% 113% 13% Favorable
Liabilities and Shareholders Equity
Current Liabilities
Short-term obligation 100% 275% 175% Unfavorable
Account payable 100% 107% 7% Unfavorable
Income tax payable 100% 551% 451% Unfavorable
Total current liabilities 100% 139% 39% Unfavorable
Long-term liabilities
Long-term Debt obligations 100% 96% -4% Unfavorable
Other liabilities 100% 105% 5% Unfavorable
Deferred Income Taxes 100% 118% 18% Unfavorable
Total Long-term liabilities 100% 107% 7% Unfavorable
Total liabilities 100% 120% 20% Unfavorable
Commitments and Contingencies
Preferred stock, no par value 100% 100% --- --
Repurchased Preferred Stock 100% 112% 12% Unfavorable
Common Shareholders Equity
Common stock, par value 1 2/3per share 100% 100% --
(issued 1,82shares)
Premium 100% 99% -1% Unfavorable
Retained earrings 100% 113% 13% Favorable
Comprehensive loss 100% 119% 19% Unfavorable
Total 100% 112% 12% Favorable
Less: repurchased common stock 100% 125% 25% Unfavorable
Total common shareholders Equity 100% 105% 5% Favorable
Total liabilities and shareholders Equity 100% 113% 13% Favorable

University of the Punjab, Gujranwala Campus 91


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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

University of the Punjab, Gujranwala Campus 92


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

University of the Punjab, Gujranwala Campus 93


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

Description 2005 2004


Net Revenue 100% 100%
Cost of Sales 43% 43%
Selling, general and administrative expenses 38% 37%
Amortization of intangible assets 0.46% 0.50%
Restructuring and repair Charges -- 0.50%
Mergers Related Cost -- --
Operating profit 17.54% 19%
Bottling equity Income 1.7% 1%
Interest expense -0.786% -0.50%
Interest income .488% 0.25%
Income from Continuing before the income Taxes 18.9% 19.75%
Provision from income Taxes 7% 5%
Income from continuing operations 11.9% 14.75%
Taxes benefit from Discontinued Operation -- 0.12%
Net Income 11.9%% 14.63%

income statement(2005)

cost of sale saling and admin expenses


operating profit income before tax
net income

University of the Punjab, Gujranwala Campus 94


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

University of the Punjab, Gujranwala Campus 95


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

Description 2005 2004


Asset
Current Asset
Cash and cash Equivalents 16% 15%
Short-term investment 30% 25%
Accounts and notes receivable, net 31% 35%
Inventories 17% 18%
Prepaid expenses 6% 7%
Total Current Assets 100% 1005
Fixed Asset
Property, Plant and Equipment, net 41% 42%
Amortizable Intangible Assets ,net 2% 3%
Goodwill 19% 20%
Other nonamortizable Intangible Assets 5% 5%
Long-term investment 16% 17%
Other Assets 17% 13%
Total Fixed Assets 100% 100%
Total Assets 100% 100%
Liabilities and Shareholders Equity
Current Liabilities
Short-term obligation 31% 16%
Account payable 63% 83%
Income tax payable 6% 1%
Total current liabilities 100% 100%
Long-term liabilities
Long-term Debt obligations 29% 31%
Other liabilities 53% 53%
Deferred Income Taxes 18% 16%
Total Long-term liabilities 100% 100%
Total liabilities 100% 100%
Common Shareholders Equity
Common stock, par value 1 2/3per share (issued 1,82shares) 0.20% 1.22%
Premium 4.3% 4.6%
Retained earrings 147% 138%
Comprehensive loss -7% -7%
Total 145% 136%
Less: repurchased common stock -45% -36%
Total common shareholders Equity 100% 100%
Total liabilities and shareholders Equity 100% 100%

University of the Punjab, Gujranwala Campus 96


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

University of the Punjab, Gujranwala Campus 97


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

Ratios Coca Cola PepsiCo Comments


International International
Liquidity Ratios
Current Ratio 1.04 1.11 Good
Quick Ratio 0.89 0.93 Good
Absolute Liquid Ratio 0.48 0.52 Good
Working Capital $414000 $1048000 Good
Activity Ratios
Inventory Turnover Ratio 5.75times 8.37times Good
Average Collection Period 36days 66days poor
Average Payment Period 140days 36days Good
Total Assets Turnover Ratio 0.78times 1.03times Good
Solvency Ratios
Solvency Ratio 0.45 0.55 Poor
Interest Coverage Ratio 25.35times 23.13time Poor
Profitability Ratios
Gross Profit Margin 64.5% 56.46% Poor
Operating Profit Margin 26.34% 18.19% Poor
Net Profit Margin 21% 12% Poor
Earning Per Share 2.04 2.29 Ok
Return on Equity 29.78% 28.47% Ok
Return on total Assets 16.5% 12.87% Poor
Market Ratios
Price Earning Ratio 23.64 28.31 Good
Market/Book Ratio 10.33 8.07 Poor

SWOT ANALYSIS

University of the Punjab, Gujranwala Campus 98


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

StrengthS

Well-developed strategy

Pepsi Cola recognizes there is a right time and place for their product; therefore, their
strategy makes room for adjustments

Brand name Reputation

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.

Good marketing skills and Grasp market region

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.

Well known company

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

University of the Punjab, Gujranwala Campus 99


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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.

Distributor’s excellent service

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.

Financial position and credit rating are strong

Their domestic organization achieved revenue growth from a healthy pricing


environment, strong field execution, and effective innovation as their diet, water and
flavor portfolios partially compensate a continued shift away from their Pepsi trademark.
Revenue growth and cost management offset a relatively more volatile raw material cost
environment. The profitability of their international business continued to improve and it
has become a more significant contributor to their performance.

Sponsoring matches all over the world

Pepsi sponsors world cup, cricket series matches to increase its viability and brand
awareness and become more involve with customers.

Weaknesses

Conflict and politics

After 9-11 scenario and Iraq war, majority Pepsi consumers turned towards other
beverages due to sentimental point of view.

Opportunities

University of the Punjab, Gujranwala Campus 100


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

Penetrating market would motivate considerable sales growth

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.

Existing customer base is high

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.

Expanding into foreign markets

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

Increase in competition (other beverages)

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

University of the Punjab, Gujranwala Campus 101


INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

 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

facility accordingly to modern conditions

 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

employees give important to the company and its customer.

 To attract the customer in the future NBC have to make extensive effort to give extra

facilities to retailers and consumers.

 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

forward not involving long difficult procedure for simple task.

University of the Punjab, Gujranwala Campus 102