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 fullfledged 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. 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 sixounce 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.

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HISTORY

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
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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

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The Company in which I done Internship

Organization: Naubahar Bottling Company Address: S.I.E, Model Town, Gujranwala, Pakistan Naubahar is a largest franchise of Pepsi cola International .producing and distributing international brands like Pepsi, teem, & 7up and Mountain dew .plant is situated in Gujranwala, Pakistan

Plant capacity Naubahar Pepsi cola industry has a moderate and big plant. It can produce 600 bottles in one minute. It has also the water treatment plant which can take raw water from 500 dept, treat and filter it and then store it. Plant can store 20’000 gallons

Location Advantage 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.

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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. 2. 3. 4. 5. 6. 7. 8. 9. Gujranwala Gujrat Hafizabad Mandi bhaudin Jehlum Sialkot Narowal Sheikhupura 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:

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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.”

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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 decisionmaking.

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.

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INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

BOARD OF DIRECTORS OF PEPSICO

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INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

MANAGEMENT OF NAUBAHAR BOTTLING COMPANY

Managing Director (Owner) Director General Manager Sales Manager (Local) Sales Manger (Out) Plant Manager Production Manager Human Resource Manager Business Analyst Marketing & Services Manager Shipping & MIS Manager Audit Manager Finance Manager Quality Control

Mr. Shamim Khan Mr. Adnan A. Khan Mr. Aftab A. Khan Mr. Saeed Ullah Khan Mr. Ahmad Khan Mr Aarif Sarwar Qureshi Mr Muhammad Khan Mr. Asif Hamid Mr. Asim Awan Mr.Rana Qamar Bilal Mr Naveed Ahmad Mr.Malik Hameed Mr. Abid Hussain Mr.Aftab Tassaduqe

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INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

MANAGEMENT HIERARCHY

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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 Product/ Service Price Place Promotion

4 C’s Customer Solution Customer Cost Convenience 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.

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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
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INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

1909-1939: 1939-1950: 1950-1963: 1953-1961: 1961-1963: 1963-1967: 1967-1969: 1969-1973: 1973-1975: 1975-1978: 1978-1981: 1981-1982: 1983-1983: 1984-1991: 1991-1995 1995-1997 1997-1999 1999-2000 2000-2003 2003-Onward

Delicious and Healthful Twice As Much For A Nickel Too The Light Refreshment Be Sociable Now It's Pepsi For Those Who Think Young Come Alive! You're In The Pepsi Generation Taste That Beats The Others Cold You've Got A Lot To Live, Pepsi's Got A Lot To Give Join The Pepsi People Feeling' Free Have A Pepsi Day Catch That Pepsi Spirit Pepsi's Got Your Taste For Life! Pepsi Now! Pepsi, The Choice Of A New Generation "Got to Have It". "Nothing Else is a Pepsi". "Generation Next". "Ask for More"/"The Joy of Cola". It's the Cola"/"Dare for More". Dil ha tu mango more

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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.

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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

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INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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

COMPLETE PRODUCT LINE OF NAUBAHAR BOTTLING COMPANY (NBC)

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INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

PACKING UNITS 250 ML 24 bottles per case 1000 ML 12 bottles per case 1500 ML(PET) 6 bottles per case 175 ML 24 bottles per case POST MIX 1 Cylnder 1000 ML(PET) 6 bottles per case 330 ML CAN 12 bottles per case 300 ML(NR) 12 bottles per case MIRINDA 250 ML 24 bottles per case 1000 ML 12 bottles per case 1500 ML(PET) 6 bottles per case POST MIX 1 Cylnder 1000 ML(PET) 6 bottles per case 330 ML CAN 12 bottles per case 300 ML(NR) 12 bottles per case TEEM 250 ML 24 bottles per case 1000 ML 12 bottles per case 1500 ML(PET) 6 bottles per case POST MIX 1 Cylnder 1000 ML(PET) 6 bottles per case 300 ML(NR) 12 bottles per case 7UP DIET 250 ML 24 bottles per case 1500 ML(PET) 6 bottles per case 330 ML CAN 12 bottles per case 7UP 250 ML 24 bottles per case 1000 ML 12 bottles per case 1500 ML(PET) 6 bottles per case POST MIX 1 Cylnder 1000 ML(PET) 6 bottles per case 330 ML CAN 12 bottles per case MOUNTAIN DEW 250 ML 24 bottles per case 1500 ML(PET) 6 bottles per case 330 ML CAN 12 bottles per case PEPSI DIET 250 ML 24 bottles per case 1500 ML(PET) 6 bottles per case 330 ML CAN 12 bottles per case University of the Punjab, Gujranwala Campus 300 ML(NR) 12 bottles per case

BRANDS PEPSI

VOLUME 250 ML per bottle 1000 ML per bottle 1500 ML per bottle 175 ML per bottle 114000 ML 1000 ML per bottle 330 ML per bottle 300 ML per bottle 250 ML per bottle 1000 ML per bottle 1500 ML per bottle 96000 ML 1000 ML per bottle 330 ML per bottle 300 ML per bottle 250 ML per bottle 1000 ML per bottle 1500 ML per bottle 114000 ML 1000 ML per bottle 300 ML per bottle 250 ML per bottle 1500 ML per bottle 330 ML per bottle 250 ML per bottle 1000 ML per bottle 1500 ML per bottle 114000 ML 1000 ML per bottle 330 ML per bottle 250 ML per bottle 1500 ML per bottle 330 ML per bottle 250 ML per bottle 1500 ML per bottle 330 ML per bottle 19 300 ML per bottle

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

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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 250 ML of each brand 1000 ML of each brand 1500 pet ML of each brand

Prices Rs 10 Rs 30 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

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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

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INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

PROMOTION

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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

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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.

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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.

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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

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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.

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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

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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.

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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

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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 abovementioned 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

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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.

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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

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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.

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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

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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:

Plant # P # 01 P # 02 P # 03 P # 04 P # 05

250ML (RB) 1500Cs/hr 1250Cs/hr 1375Cs/hr

1000ML ( RB) 1000 Cs/hr -

1500ML (PET) 500Cs/hr 325Cs/hr -

1000ML (PET) 350Cs/hr -

250ML (NR) 300Cs/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.

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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

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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.

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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.

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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

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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.

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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.

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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.

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 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) Team Members (Marketing & Research Offices/Surveyor) 03 The following activities are present in EDS 01

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 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.

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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 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.

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MY WORK

1. Production Department

INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED

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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 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

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Production Department

How to improve the Quality of their work? Using proper way recording the pressure he can put creates on conveyor so that breakage can be reducing. Work with constant efficiency in full hour is difficult .They pay full attention in first few minutes but not in remaining time,

Important jobs Of PLANT no: 5
1. Depallettizing 2. before Uncaser Inspection. 3. Uncasing 4. Straw control 5. Controls before washer 6. Washer operator 7. Washer helper 8. Light inspection 9. Filler conveyor control 10. Filler operator 1. 11.Filler operator helper 12. Filled inspection 13. Packer operator 14. Palletizing 15. Shell washer operator 16. Shell controls 17. Supervisors

Diligence is actually the required thing.
To inform the supervisor about the broken pallet 2. Before uncase inspection What they are doing  He will separate the dirty & empty bottles  Separate unrelated brands  Withdrawal of straw  Separate the broken bottles What they want to do? Proper look after of conveyer To inform the maintenance officer in case of any fault of conveyer Current situation at plant # 5 The person there sits and watches over the bottles that are not a proper way to look in the crate which contains 24.

1. Depallettizing
Cycle time: it takes one min to pick 32-35 crates from pallet and put it over the conveyor. What they are doing:  Picking crates from pallet.  Putting the bottle over the conveyor.  Removing empty pallets so that Fork lifter can put another crates of bottle and pick the empty pallets.

What they want to do?
They prefer to fellow given instruction by management.

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Bottles so their must be another person on the other side .Otherwise quality can not be control when a person gives only 2 seconds per crate. 3. Uncasing Cycle time: it will 7 times pick crates in one minute and each time 4 crates will be picked up. Therefore 28 crates in one minute will be picked up. Duties: what they are doing?  There duty is to set time of Machine  To operate the sensor system  In case of any fault quickly report to the immediate supervisor How to improve the quality? To make the machine efficient proper cleanliness in required. While leaving his lift he must make machine ready to be properly used by the coming person. 4. Straw control Duties: what they are doing?  He is to withdraw straw from empty bottle  He will separate the dirty Broken bottles

 He is to put the bottle vertically  Separate unrelated brands  Separate the broken bottles How to improve the quality He should look properly in to the bottles so that he can pick up the straw. In case of any fault quickly report to the immediate supervisor Lubrication should be done in time. 5. Controls before washer What they are doing?  He is to withdraw straw from empty bottle  He will separate the dirty  Broken bottles  He is to put the bottle vertically  Separate unrelated brands  Separate the broken bottles How to improve the quality He should look properly in to the bottles so that he can pick up the straw. In case of any fault quickly report to the immediate supervisor Lubrication should be done in time.

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6. Washer operator Cycle time: washer picks 38 bottles in one turn and in one minute it picks 684 bottles in 8 cycles. What they are doing? He properly put the bottles vertically. Maintain the machine properly. How to improve the quality? In case of any fault quickly report to the immediate supervisor Lubrication should be done in time. 7. Washer helper He is for help in putting the bottles vertically. 8. Light inspection --empty What they are doing?  Wash hands, wear gulfs, caps uniform.  Duty changes after 20 minutes  He is to withdraw straw from empty bottle  He will separate the dirty  Broken bottles  He is to put the bottle vertically  Separate unrelated brands  Separate the broken bottles  To separate Foaming bottle

How to Improve Quality? More efficient lights can be used Incentive plan should be proper Supervisor must look after the process more properly and the girl who is not doing work with concentration should be accounted for that. 9. Filler conveyor control What they are doing He is helper and controls the bottles on line or conveyor. He is also responsible for constant or variable timing of bottle line arrangement Quality control There trimming of job is very hard so they cannot proper concentrate the job. There pay is same to the new or fresh worker which gives them a lot of disgrace ness. There should be a plan of leave the filler operator and arrange the alternative employees for emergency cases. 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.

IMPORTANT TERMS

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 He check the level of water in the bottle  He also controls the level of water in bottle by setting the Valve.  He also liable to see the line arrangement of bottle at a time may be one or more.  Properly check the van tube and cone washer.  Wash the filler tank before changing any tank.  Informed the water treatment of provide the water as well the syrup department for syrup and ammonia department for cool gas. How the improve the Quality? There trimming of job is very hard so they cannot proper concentrate the job. There pay is same to the new or fresh worker which gives them a lot of disgrace ness. There should be a plan of leave the filler operator and arrange the alternative employees for emergency cases. 11. Filler Operator Helper Same duties as operator Just difference to stay on Conveyor not on Fuller Machine

How to improve quality? More efficient lights can be used Incentive plan should be proper Supervisor must look after the process more properly and the girl who is not doing work with concentration should be accounted for that.

9. Filler conveyor control

What they are doing
He is helper and controls the bottles on line or conveyor. He is also responsible for constant or variable timing of bottle line arrangement Quality control There trimming of job is very hard so they cannot proper concentrate the job. There pay is same to the new or fresh worker which gives them a lot of disgrace ness. There should be a plan of leave the filler operator and arrange the alternative employees for emergency cases. 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

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 He check the level of water in the bottle  He also controls the level of water in bottle by setting the Valve.  He also liable to see the line arrangement of bottle at a time may be one or more.  Properly check the van tube and cone washer.  Wash the filler tank before changing any tank.  Informed the water treatment of provide the water as well the syrup department for syrup and ammonia department for cool gas. How the improve the Quality? There trimming of job is very hard so they cannot proper concentrate the job. There pay is same to the new or fresh worker which gives them a lot of disgrace ness. There should be a plan of leave the filler operator and arrange the alternative employees for emergency cases. 11. Filler Operator Helper Same duties as operator Just difference to stay on Conveyor not on Fuller Machine

12. Filled inspection--Filled What they are doing?  Wash hands, wear gulfs, caps uniform.  Duty changes after 20 minutes  He is to withdraw straw from empty bottle  He will separate the dirty  Broken bottles  He is to put the bottle vertically  Separate unrelated brands  Separate the broken bottles  To separate Foaming bottle  Check low high level  How to improve quality? More efficient laser lights can be used Incentive plan should be proper Supervisor must look after the process more properly and the girl who is not doing work with concentration should be accounted for that. 13. Packer operator What they are doing?  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.

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14. Palletizing Cycle time: he puts 50 crates on pallet in 2 minute. What they are doing? Picking the filled crates from conveyor and putt on plat How to improve the quality? To impose pressure to avoid brakeage of bottles 15. Shell washer operator He is to wash the crates using the water pump He is to control pump by managing the ribbon to stop pump disorder 16. Shell controls These two boys bring the shell over the packer machine Ensures the supply of shells according to the need • Appendix What is a Dirty bottle? 1. Bottles with web 2. Bottles with rain water or any other type of dirty water 3. Bottles which were used for milk 4. Bottles with any type of sticky material 5. Bottles with straw in them 6. Bottles with shoppers or rappers in them 7. Bottles with insects 8. Bottles with rust 9. Bottles which are of any other brand 10. And any type of bottles containing foreign matter Take out the damage bottles from the cases which are on conveyor

What a Damaged bottle include 1. Bottles which are broken from mouth or bottom or both or broken from any other side 2. Bottles with damage monogram While operating the machine, stop the machine (uncaser) when you see that the conveyor or line is field with bottles

17. Supervisors
What they are doing?  To keep data of attendance of all the employees of specific plant.  To count that crate is full with 24 bottles  To keep cleanliness  Check and balance

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• • • • • •

Problems When so many bottles fall on the conveyor that takes time to correct them ( stop the uncaser) Correct the bottles which fall on line(conveyor) Make a report of FM risk management after every 30 minutes to record the out put Keep the line clean After every 30 minutes every worker at line should leave his place so that the other worker take his seat In those 30 minutes the people which are now off-line 1. Sort there cases of output at their proper places 2. Clean the line 3. Make their 30 minutes report Empties 1. Lack of space. 2. Lack of labor. 3. Lack of active supervision. 4. Lack of control by sales and distribution over quality of empties. 5. Employees on daily wages are of low quality. 6. No process for producing acceptable empties. 7. Redefining job of empty godown (delivery of acceptable empties from warehouses for production). Fork lifters 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.

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Before washing 1. Lack of space for empty inspection before washing (space rationalized). 2. Still receiving straws and unacceptable empties on the production line. 3. Pre-washing solution had been decided previously but never implemented. 4. No active supervision. 5. No proper assignation of task. Washer 1. Management of consumables to be improved. Inspection of Empties 1. No job description. 2. Different tasks assigned to workers instead of one standard. 3. The notion of an acceptable bottle is not properly defined to the workers. Filler 1. SOP not cross functionally agreed, communicated and supervised. Coding Operator 1. Lacks overall authority. 2. No real role in reporting. 3. Performance not being evaluated. No job description; function does not exist on paper. 4. Lack of recognition. 5. Area of supervision too large (2 for 5 lines)

Filled Inspection 1. Low fill / high fill bottles are being drained or taken back to the empties. Some are supplied at mess. 2. Maintenance engineers are not coming regularly to fix their problems. Shell Conveyor 1. Space problem. Shells need to be shifted manually.

Palletize
1. Input / output control left to subcontractors.

Machinery Maintenance
1. No preventive maintenance or compliance to. 2. Unavailability of quality equipment and materials required for maintenance (parts). 3. No proper supervision and overall maintenance policy.

Solutions
Allocating areas for SKUs (marking & logic) Defining frequency of lifters: unloading time, sorting time, and delivery time (scheduling logic of empty godown – both areas) Arrangement for unacceptable empties (far from good empties or other godown) Defining role of each empty godown (specific roles) Equipment required for converting bad empty to good empty (conveyors, tubs, water hoses, etc.)

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ASSIGNMENTS OF SALES & MARKETING DEPT.

After production department we spent two weeks in sales and marketing department and 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

 

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MARKETING DEPARTMENT

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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.

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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.

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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 ---------------------Age-----------------------Gender-------------------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

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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

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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 7up Sprite Dew Teem Total

Frequency 60 112 203 10 385

Percentage 15.6 29.1 52.7 2.6 100

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 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 Taste Availability Trend Advertising Transparent Total

Frequency 325 29 12 11 8 385

Percentage 84.4 7.5 3.1 2.9 2.1 100

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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 7up Sprite Dew Teem Total

No 26 54 110 4 194

Yes 34 58 93 6 191

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

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.

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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. consumption per consumer 289 524 1061 % Results

7up Sprite Dew

1111 2011 4076

15.43 27.93 56.62

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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.

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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.

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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.

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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.

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

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

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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.

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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.

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

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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

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E. Market ratios

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BALANCE SHEET

(in million except pert share amount ) Net Revenue Cost of Sales Selling, general and administrative expenses Amortization of intangible assets Restructuring and repair Charges Mergers Related Cost Operating profit Bottling equity Income Interest expense Interest income Income from Continuing before the income Taxes Provision from income Taxes Income from continuing operations Taxes benefit from Discontinued Operation Net Income Net Income per common Share ----Basic Continuing Operations Discontinued operations Total Net Income per common Share ----Diluted Continuing Operations Discontinued operations Total

2005 $32562 14176 12314 150 5922 557 (256) 159 6382 2304 4078 $4078 $2.43 2.43 $2.39 $2.39

2004 $29261 12674 11031 147 150 5259 380 (167) 74 5546 1372 4174 38 $4212 $2.45 0.02 2.47 $2.41 0.02 $2.44*

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INCOME STATEMENT (in million except pert share amount ) 2005 Asset Current Asset Cash and cash Equivalents $1716 Short-term investment 3166 Accounts and notes receivable, net 3261 Inventories 1693 Prepaid expenses 618 Total Current Assets 10454 Fixed Asset Property, Plant and Equipment, net 8681 Amortizable Intangible Assets ,net 530 Goodwill 4088 Other nonamortizable Intangible Assets 1086 Long-term investment 3485 Other Assets 3403 Total Fixed Assets 21273 Total Assets $31727 Liabilities and Shareholders Equity Current Liabilities Short-term obligation $2889 Account payable 5971 Income tax payable 546 Total current liabilities 9406 Long-term liabilities Long-term Debt obligations 2313 Other liabilities 4323 Deferred Income Taxes 1434 Total Long-term liabilities 8070 Total liabilities 17476 Commitments and Contingencies Preferred stock, no par value 41 Repurchased Preferred Stock (110) Common Shareholders Equity Common stock, par value 1 2/3per share (issued 1,82shares) 30 Premium 614 Retained earrings 21116 Comprehensive loss (1053) Total 20707 Less: repurchased commonof the Punjab, Gujranwala Campus stock (6387) University Total common shareholders Equity 14320 Total liabilities and shareholders Equity $3172 2004 $1280 2165 2999 1541 654 654 8149 598 3909 933 3284 2475 19348 $27987 $1054 5599 99 6752 2397 4099 1216 7712 14464 41 (90) 30 618 18730 (886) 18492 (4920) 83 13572 $27987

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Ratios

Current Ratio Quick Ratio Absolute Liquid Ratio Working Capital Inventory Turnover Ratio Average Collection Period Average Payment Period Total Assets Turnover Ratio Solvency Ratio Interest Coverage Ratio Gross Profit Margin Operating Profit Margin Net Profit Margin Earning Per Share Return on Equity Return on total Assets Price Earning Ratio Market/Book Ratio

Year Year 2004 2005 Liquidity Ratios 1.28 1.11 1.05 0.51 $1887000 0.93 0.52 $1048000

Comments

Poor Poor Good Poor Good Poor Good Poor Poor Poor Poor Good Poor Poor Poor Poor Good Poor

Activity Ratios 8.22 times 8.37times 69days 66days 37days 36days 1.05times 1.03times Solvency Ratios 0.51 0.55 31.49time 23.13time Profitability Ratios 56.69% 56.46% 17.97% 18.19% 14% 12% 2.36 2.29 31.03% 28.47% 15.05% 12.87% Market Ratios 27.47 28.31 8.53 8.07

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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.

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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."

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Description Net Revenue Cost of Sales Selling, general and administrative expenses Amortization of intangible assets Restructuring and repair Charges Mergers Related Cost Operating profit Bottling equity Income Interest expense Interest income Income from Continuing before income Tax Provision from income Taxes Income from continuing operations Taxes benefit from Discontinued Operation Net Income

2004 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

2005 111% 111% 111% 102% --113% 147% 153% 215% 115% 168% 98% -111%

Change 11% 11% 11% 2% --13% 47% 53% 115% 15% 68% -2% -11%

Comments Favorable Unfavorable Unfavorable Unfavorable --Favorable Favorable Unfavorable Favorable Favorable Unfavorable Favorable -Favorable

Income statement
115 110 105 100 95 90 Net Revenue operating profit net income

2004 2005

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Description Asset Cash and cash Equivalents Short-term investment Accounts and notes receivable, net Inventories Prepaid expenses Total Current Assets Fixed Asset Property, Plant and Equipment, net Amortizable Intangible Assets ,net Goodwill Other nonamortizable Intangible Assets Long-term investment Other Assets Total Fixed Assets Total Assets Liabilities and Shareholders Equity Current Liabilities Short-term obligation Account payable Income tax payable Total current liabilities Long-term liabilities Long-term Debt obligations Other liabilities Deferred Income Taxes Total Long-term liabilities Total liabilities Commitments and Contingencies Preferred stock, no par value Repurchased Preferred Stock Common Shareholders Equity Common stock, par value 1 2/3per share (issued 1,82shares) Premium Retained earrings Comprehensive loss Total Less: repurchased common stock Total common shareholders Equity Total liabilities and shareholders Equity

2004 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

2005 134% 146% 142% 109% 94% 121% 107% 69% 104% 116% 106% 137% 109% 113% 275% 107% 551% 139% 96% 105% 118% 107% 120% 100% 112% 100% 99% 113% 119% 112% 125% 105% 113%

Change 34% 46% 42% 9% -6% 21% 7% -31% 4% 16% 6% 37% 9% 13% 175% 7% 451% 39% -4% 5% 18% 7% 20% --12% --1% 13% 19% 12% 25% 5% 13%

Comments Favorable Favorable Favorable Favorable Favorable Favorable Favorable Unfavorable Favorable Favorable Favorable Favorable Favorable Favorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable -Unfavorable

Unfavorable Favorable Unfavorable Favorable Unfavorable Favorable Favorable

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Balance sheet
150 100 50 0 total assets fixed assets current assets 2004 2005

Balance sheet
150 100 50 0 current Liabilities fixed Liabilities equity 2004 2005

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Description Net Revenue Cost of Sales Selling, general and administrative expenses Amortization of intangible assets Restructuring and repair Charges Mergers Related Cost Operating profit Bottling equity Income Interest expense Interest income Income from Continuing before the income Taxes Provision from income Taxes Income from continuing operations Taxes benefit from Discontinued Operation Net Income

2005 100% 43% 38% 0.46% --17.54% 1.7% -0.786% .488% 18.9% 7% 11.9% -11.9%%

2004 100% 43% 37% 0.50% 0.50% -19% 1% -0.50% 0.25% 19.75% 5% 14.75% 0.12% 14.63%

income statement(2005)

cost of sale operating profit net income

saling and admin expenses income before tax

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Description Asset Current Asset Cash and cash Equivalents Short-term investment Accounts and notes receivable, net Inventories Prepaid expenses Total Current Assets Fixed Asset Property, Plant and Equipment, net Amortizable Intangible Assets ,net Goodwill Other nonamortizable Intangible Assets Long-term investment Other Assets Total Fixed Assets Total Assets Liabilities and Shareholders Equity Current Liabilities Short-term obligation Account payable Income tax payable Total current liabilities Long-term liabilities Long-term Debt obligations Other liabilities Deferred Income Taxes Total Long-term liabilities Total liabilities Common Shareholders Equity Common stock, par value 1 2/3per share (issued 1,82shares) Premium Retained earrings Comprehensive loss Total Less: repurchased common stock Total common shareholders Equity Total liabilities and shareholders Equity

2005 16% 30% 31% 17% 6% 100% 41% 2% 19% 5% 16% 17% 100% 100% 31% 63% 6% 100% 29% 53% 18% 100% 100% 0.20% 4.3% 147% -7% 145% -45% 100% 100%

2004 15% 25% 35% 18% 7% 1005 42% 3% 20% 5% 17% 13% 100% 100% 16% 83% 1% 100% 31% 53% 16% 100% 100% 1.22% 4.6% 138% -7% 136% -36% 100% 100%

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Ratios

Current Ratio Quick Ratio Absolute Liquid Ratio Working Capital Inventory Turnover Ratio Average Collection Period Average Payment Period Total Assets Turnover Ratio Solvency Ratio Interest Coverage Ratio Gross Profit Margin Operating Profit Margin Net Profit Margin Earning Per Share Return on Equity Return on total Assets Price Earning Ratio Market/Book Ratio

Coca Cola PepsiCo International International Liquidity Ratios 1.04 1.11 0.89 0.48 $414000 0.93 0.52 $1048000

Comments

Good Good Good Good Good poor Good Good Poor Poor Poor Poor Poor Ok Ok Poor Good Poor

Activity Ratios 5.75times 8.37times 36days 66days 140days 36days 0.78times 1.03times Solvency Ratios 0.45 0.55 25.35times 23.13time Profitability Ratios 64.5% 56.46% 26.34% 18.19% 21% 12% 2.04 2.29 29.78% 28.47% 16.5% 12.87% Market Ratios 23.64 28.31 10.33 8.07

SWOT ANALYSIS
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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

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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

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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
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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.

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University of the Punjab, Gujranwala Campus

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