Table of Contents

1. History of Pepsi Cola 2. Formation of Pepsi Cola Corporation 3. Reformulation of Pepsi Cola syrup formula 4. Formation of Pepsi Cola incorporation 5. Setup of Pepsi Cola 6. Pepsi Cola Multan 7. Mission of Company 8. Slogans through time 9. Major Competitors 10. Coca Cola Mission Statement 11. Coca Cola Objective 12. Pepsi Today 13. Business Envoronment 14. Marketing Mix 15. Strategic Marketing 16. Organizational Culture 17. How new employees learn culture in Shamim & Co. 18. Reasons of popularity of Pepsi Cola in Pakistan 19. Consumer Requirement 20. Market segmentation & Target Marketing 21. Pepsi Cola Products 22. Pepsi Cola Ingredients 23. Pepsi Cola brand list 24. Future Planning

25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40.

Latest Market share statistics Shamim & Co Pvt Ltd Organization Hierarchy Distribution Channels 8 steps of Pepsi Cola Sales Swot Analysis Competitive Priorities Decision Making in Shamim & Co Organization Structure Shamim & Co Departments Administration Department Sales/Marketing Department Finance Department Human Resource Department Production Department Shipping Department

41. 42. 43. 44. 45. 46. 47. 48. 49. 50.

MIS Department Cash Department Accounts Department Excise Department Post Mix Department Inventory Management Supply Chain Department Capacity. Location & Layouts Forecasting Material Requirement Planning

51. 52.

Quality Control Problems

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INTRODUCTION HISTORY OF PEPSI COLA In 1893 Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with many different soft drinks. In 1898, one of Caleb's formulations, known as "Brad's Drink" a combination of carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola". On August 28, 1898, Pepsi-Cola received its first logo. In 1902, he applied for a trademark with the U.S. Patent Office, Washington D.C., and formed the first Pepsi-Cola Company. 1905, Pepsi-Cola's first bottling franchises were established in Charlotte and Durham, North Carolina. In 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". In 1920, Pepsi theme line speaks to the consumer with "Drink PepsiCola, it will satisfy you". In 1923, Pepsi-Cola Company was declared bankrupt and its assets were sold to a North Carolina concern, Craven Holding Corporation, for $30,000. FORMATION OF PEPSI COLA CORPORATION Roy C. Megargel, a Wall Street broker, bought the Pepsi trademark, business and good will from Craven Holding

Corporation for $35,000, forming the Pepsi-Cola Corporation. In 1928, after five continuous losing years, Megargel reorganized his company as the National Pepsi-Cola Company. In 1931, U.S. District Court for Eastern District Virginia declared the National Pepsi-Cola Company bankrupt, the second bankruptcy in PepsiCola history. REFORMULATION OF PEPSI COLAS SYRUP FORMULA The Loft candy company acquired the National Pepsi-Cola Company. Charles G. Guth, president of Loft, assumed leadership of Pepsi and commanded the reformulation of Pepsi-Cola syrup formula.1934 was a landmark year for Pepsi-Cola. The drink was a hit and to attract even more sales, the company began selling its 12-ounce drink for five

cents (the same cost as six ounces of competitive colas). The 12ounce bottle debuted in Baltimore, where it was an instant success. The cost savings proved irresistible to Depression-worn Americans and sales skyrocket nationally. In 1941, The New York Stock Exchange traded Pepsi's stock for the first time. In 1964, Diet Pepsi, America's first national diet soft drink, debuted. Pepsi-Cola acquired Mountain Dew from the Tip Corporation in 1964. FORMATION OF PEPSI COLA INCORPORATION In 1965, Expansion outside the soft drink industry began. FritoLay of Dallas, Texas, and Pepsi-Cola merged, forming PepsiCo, Inc. Pepsi Cola Company operates in beverages industry. Pepsi Cola international is well reputed multinational company which is doing its business in almost every country of the world. The company is registered in New York stock exchange U.S.A. to make a better control over the business the company has given the manufacturing rights to different companies. Now these companies are producing the products on the behalf of the

company by using companys trademark. To maintain their goodwill in the market the company has a strict policy of granting manufacturing rights. Pepsi Cola have standardized products all over the world (e.g. same in size, shape and quality). The franchises have to follow all the standards given by the company. ign:jg}f;yC V l0 level1 lfo1; tab-stops:list .5in'>Sales/Marketing Department

Finance Department Human Resource Department Production Department Shipping Department

41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52.

MIS Department Cash Department Accounts Department Excise Department Post Mix Department Inventory Management Supply Chain Department Capacity. Location & Layouts Forecasting Material Requirement Planning Quality Control Problems

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SETUP OF PEPSI COLA

The head office is situated in New York (USA) with units operating in different regions of the world. These are called Business Units and Pakistan is in MENAPak (Middle East, North America and Pakistan). The head office of MENAPak is situated in Dubai (UAE). The local head offices for each country are situated in the respective capitals. PEPSI COLA MULTAN Pepsi Multan was incorporated in 1963 but it started its production in 1967. Allah Nawaz Khan Tareen (Ret. DIG) got license of 7-UP. But in 1973, it became Pepsi Cola franchise. Now a day MD of Pepsi Cola Multan is Alamgeer Khan Tareen son of Allah Nawaz Khan Tareen. At start Pepsi Multan was having only one production plant made by Netherlands. and was only producing 7-Up because it was the only brand produced by Parent Company. In 1973, PEPSI acquired 7-Up in Canada so the Multan franchise started producing PEPSI and Marinda along with 7-Up & became PEPSI franchise. Coke was already operating in the market at the time when Pepsi Multan established. At that time Coke was market leader but with the passage of time Pepsi Multan kept on focusing on gaining the market share. Recently Pepsi has launched a new brand with the

name of Mountain Dew. Now Pepsi Multan is working with five production plants capable of producing 100,000 cases per day. Installation arrangements for two new plants are in process. The plant which was installed at the time of establishment has now been grounded. Pepsi Multan is currently market leader with more than 80% of market share. The company is properly serving all these areas with quality products. PEPSI Multan is not an ISO certified company because it is an international drink having their own standards and there is no export. MISSION OF COMAPNY We aspire to make Pepsi Company the worlds premier consumer Products Company, focused on convenient beverages. We seek to produce healthy financial rewards for 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 to act with honesty, openness, fairness and integrity

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Slogans through Time Pepsi-Cola has different slogans through its history. They remained much known. These are given below. This is also an important part of Pepsi-Cola.
1898 1903 Brad's Drink Exhilarating, Invigorating, Aids Digestion

1906 1908 1915 1919 1920 1928 1929 1932 1933 1934 1938 1939 1943 1947 1949 1950 1954 1958 1961 1963 1967 1969 1973 1976 1979 1981

Original Pure Food Drink Delicious and Healthful For All Thirsts - Pepsi: Cola Pepsi: Cola - It makes you Scintillate Drink Pepsi: Cola - It Will Satisfy You Peps You Up! Here's Health! Sparkling, Delicious It's the Best Cola Drink Double Size Refreshing and Healthful Join the Swing to Pepsi Twice as Much for a Nickel Bigger Drink, Better Taste It's a Great American Custom Why Take Less When Pepsi's Best? More Bounce to the Ounce The Light Refreshment Refreshing Without Filling Be Sociable, Have a Pepsi Now It's Pepsi for Those Who Think Young Come Alive! You're in the Pepsi Generation Taste that Beats the Others Cold, Pepsi Pours It On. 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 Take the Pepsi Challenge Pepsi's Got Your Taste for Life

1983 1984 1987 1989 1992 1993 1995 1997 1998 1999 2000 2003 2005

Pepsi Now!

The Choice of a New Generation America's Choice A Generation Ahead Gotta Have It Be Young, Have Fun, Drink Pepsi Nothing Else is a Pepsi Generation Next Same Great Taste The Joy of Cola The Joy of Pepsi Pepsi. It's the Cola Dare for more

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MAJOR COMPETITOR:Pepsi Cola major competitor is Coca Cola in all over the world, About Coca Cola: Mission

Mission of Coca Cola international is From our heritage to our mission to the people who bring our products to thirsty consumers, the Coca Cola is a part of lives everywhere. In order to achieve this mission, we must create value for all the constituents. We serve, including our consumers, our customers, our bottlers and our communities. Objective Objective of our business strategy are to increase volume, expand our share worldwide nonalcoholic ready-to-drink beverage sales, maximize our long term cash flows and create economic value added by improving economic profit. The Coca Cola company creates value by executing a comprehensive business strategy guided by six key beliefs;

Consumer Demand drives every thing we do. Brand Coca Cola is the core of our business We will serve consumers a broad selection of the nonalcoholic ready to drink beverage they want to drink throughout the day. We will be best marketers in the World. We will think Globally and act Locally. We will lead as a model corporate citizen

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PEPSI TODAY An Overview

PepsiCo Inc. is among the most successful consumer product companies in the world with annual revenues of $24 billion and approximately 140,000 employees. Some of PepsiCo's brand names are nearly 100 years old but the corporation remains relatively young. PepsiCo Inc. was founded in 1965 through the merger of Pepsi-Cola Company and Frito-Lay Inc. PepsiCo divisions operate in two major domestic and international businesses: beverages and snack foods. Through our divisions PepsiCo has achieved a leadership position in each of these business segments: we are world leaders in beverage bottling and we are the world's largest producers of snack chips. PepsiCo's brand names are some of the best known and most respected in the world and our restaurants are named as favorites by millions of people. PepsiCo has achieved a continuing record of growth. This record is based on high standards of performance, distinctive competitive strategies which are superbly executed, the personal and professional integrity of our people, business practices and products. Our overriding objective is to increase the value of our shareholders' investment through integrated operating, investing and financing activities. Our strategy is to concentrate our resources on growing our businesses, both through internal growth and carefully selected acquisitions within these businesses. These strategies are continually fine-tuned to address the opportunities and risks of the global marketplace. The corporation's success reflects our continuing commitment to growth and a focus on those businesses where we can drive our own growth and create opportunities.

PepsiCo's beverage business consists of Pepsi-Cola North America and PepsiCo International. Pepsi assumes responsibility for supplying the essential ingredients of a product and it assures the bottler of exclusive right of sale within their specified geographical franchise area. It works with supplier firms to assure the availability of quality packaging, merchandising, and other related equipment made to standard specifications. It provides advertising campaigns and media support. It creates suitable promotional campaigns and marketing strategies. It offers aid in personnel training for sales and production staff. It makes available quality control facilities and technicians. It develops a national publicity effort and offers aid in formulating local level community relations projects. And, in addition to performing these functions, Pepsi offers service through a large field force, including specialists in a number of technical and marketing skills. The bottler has reciprocal obligations in connection with their franchise right. They agree to only use approved advertising and distribute a finished product of unvarying high quality, to use merchandising materials, and to market the product vigorously. Today, there are more than 400 Pepsi-Cola Bottlers in the US and more than 600 internationally. The product is sold in approximately 200 countries and territories. The Company itself operates only a relatively small number of bottling facilities, principally in larger metropolitan markets.

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PEPSICO INTERNATIONAL:

PepsiCo International (PCI) is PepsiCo's international soft drink operation and includes the business of Seven-Up International. PepsiCo beverages are available in about 195 countries and territories. PepsiCo began selling its products internationally in 1934. Operations grew rapidly beginning in the 1950's. Today PBI accounts for about 20 percent of all soft drinks sold internationally. PCI organization consists of three geographic business units, each with self-sufficient operations and broad local authority. The three units are: - Pepsi-Cola Europe - Pepsi-Cola Latin America - Pepsi-Cola Asia PCI beverages are produced by a combination of independent franchised bottlers, joint-venture bottling operations and company-owned bottling plants. PCI is the soft drink market leader in more than 50 countries and territories including Saudi Arabia, Venezuela, Russia, Pakistan, Hungary and Vietnam. Other key markets include Mexico, Saudi Arabia, Venezuela and Argentina. PI also focuses on high potential, underdeveloped markets, such as China and India. PI has also established operations in the key emerging markets of Eastern Europe, including Budapest, Warsaw, Prague and Moscow, where PepsiCola was the first US consumer product to be marketed.

The division's flagship product is Pepsi-Cola, with its brand extensions Pepsi Max, Pepsi Light, Caffeine Free Pepsi, Caffeine Free Pepsi Light, Diet Pepsi, Pepsi Twist, Pepsi Blue, Vanilla

Pepsi, Pepsi X and Wild Cherry Pepsi. The division's other major brands include Mountain Dew, 7UP, Diet 7UP, Mirinda and Teem. In all, PI offers dozens of soft drink brands in a variety of packages and sizes. THE BUSINESS ENVIRONMENT: Consumers: Pepsi believe the main 'drivers' behind consumer behavior are value, variety, attitudes and convenience. Competitors: Pepsi's direct competitor is Coca-Cola Amatil. The non-soft drink competitors are tea, coffee, water, energy drinks, sports drinks, milks, etc which are all consumed on beverage occasions. Pepsi aims to gain a greater share of these occasions. The Marketing Mix: Product: Pepsi, Pepsi Light, Pepsi Twist, Pepsi Max, Pepsi Diet, Pepsi One, Pepsi Vanilla, Pepsi Blue, Pepsi Wild Cherry, 7UP, Diet 7UP, Caffeine Free Pepsi Light, Mountain Dew (including Diet, Caffeine Free, Code Red, and Live Wire flavors). Price: Pepsi is competitively priced to its major competitors, offering a better tasting product at a competitive price. Promotion:

60% of the marketing funds are spent on advertising. Primarily TV advertising with radio, magazine, cinema and outdoor support. Other promotional items include: point of sale material, consumer premiums (e.g. clothing, caps, etc), sporting and concert sponsorships.

Place: PAH/PI own the Pepsi brands. They sell the concentrate to CSA who manufactures and bottles the Pepsi products and distributes it to consumers. CSA distribute Pepsi via various channels e.g. major supermarket chains, smaller milk bars, restaurants and fast food outlets (KFC, Pizza Hut and Oporto). Pepsi also have refrigerated vending machines at various locations and workplaces. Service the right pack size at the right price, in the right place at the right time.

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Strategic Marketing:The Coca Cola Company versus PepsiCo

Market Share:

Pepsi-Cola ranked as the second -best selling soft drink in American supermarkets in 2000. A consistent runner-up to Coca-Cola Classic, Pepsi- Cola was joined by three other PepsiCo products in the year 2000 rankings Mountain Dew, Diet Pepsi and Caffeine-Free Diet Pepsi. Pepsi Coranked second in American CSD market share to the Coca-Cola Company, holding 31.4% during the same year. CocaCola Classic outsold all soft drinks in America during the year 2000, netting over USD$ 2 Billion at the cash register. The CocaCola Company maintains the CSD market as its primary line of business. With subsidiaries located throughout the globe, CocaCola is easily able to dominate the Global CSD market. In the year 2000, Coca-Cola generated only 29% of its operating income in North America, representative of its large volume of international sales.4 inversely; PepsiCo maintains lines of business in both the CSD market and the snack foods market. According to the Beverage Marketing Corporation (BMC), CocaCola has held command of over half of the world's CSD market since 1998. On abrand-by-brand scale, Coca-Cola took five of the top seven spots globally in 1999, with standard-bearer CocaCola holding a 28.6% share of global CSD volume. Pepsi-Cola was in second place with a 10.8% share, while PepsiCo's Mountain Dew placed sixth in terms of global Volume.

Table : 2003 Market Share

Pepsi Cola

Coca Cola

Market Share No. of Countries Variety of Product Target Market Strategy Diversification

31.4 % 160 Large Youth Focus Diff. Related

44.1 % 200 Large General Differentiation Related

Market Penetration: It is the shared goal of PepsiCo and Coca-Cola to increase the overall global consumption of their products. Kotler and Armstrong contend that improvements in advertising, prices, service and selection can increase repeat purchases and attract new consumers 7. In an attempt to increase market share during the famous Cola Wars of the 1980s and 1990s, PepsiCo initiated the Pepsi Challenge advertising campaign. Without changing their product, Pepsi temporarily enjoyed a heightened market share and began to penetrate further into the competitive American CSD market. Coca-Cola responded with several attempts to counter the effects of Pepsis successful new marketing strategy. In late 1986, Coca-Cola renamed its top-selling CSD Coca-Cola Classic and launched a corresponding global advertising campaign. The success of Coca-Cola Classic has been based largely on the integrity of Coca-Colas original formula. Brand loyalty and insistence drive a large portion of the CSD market, and Coca-Cola has the advantage with their century-old formula. In the 1990s, Pepsi shifted their focus to the growing American teenage market. PepsiCo adopted a new marketing strategy which aggressively marketed through high school and college campuses. PepsiCo began selling contracts of exclusivity to

hundreds of American schools, benefiting many schools with needed monies, and providing PepsiCo a direct link to American teenagers. While Coca- Cola has adopted a similar method of obtaining exclusive selling power, PepsiCo has followed up with various aggressive advertising campaigns using popular American teen icons to promote Pepsi products. The next generation motto was replaced with Joy of Pepsi and For those who think young, targeting not only American youth, but the youthful mindset of every consumer. Pepsi continues to use teen and child icons to promote their products, while Coca-Cola has latched onto the remaining BabyBoomer market. Through product placement and exclusivity contracts with restaurants, sports arenas, amusement/theme parks and various large event coordinators, Coke has been able to increase their overall visibility to counter

Pepsis latest marketing strategies. Speaking on the success of PepsiCos aggressively competitive marketing strategies, PepsiCo Chairman/CEO Roger Enrico writes:

Without Coke, Pepsi would have a tough time being an original and Lively competitor. The more successful they are, the sharper we have to be. If the Coca-Cola Company didnt exist, wed pray for someone to invent them,

And on the other side of the fence, Im sure the folks at Coke would say that Nothing contributes as much to the present-day success of the Coca-Cola Company than Pepsi.

Market Development: Identifying new and developing markets for current products market development is another method both Pepsi and CocaCola are presently using to increase overall sales. While PepsiCos shift in advertising to a younger audience can be considered market penetration, it also exhibits qualities of market development. Teenage Americans have not traditionally been looked at as a powerful consumer group until recent years. Identifying this developing market, among other demographic micro-markets, Pepsi has been able to penetrate areas that Coca- Cola has not. The Coca-Cola Company and PepsiCo alike have taken note of the potential for expansion in the geographic markets of China, India, Philippines. CSD market development ties in very closely with both market penetration and product development strategies. Many CSD preferences are tied to societal and/or cultural preferences and existing alternatives. Sprite and 7-Up (non-cola CSDs) have been very successful in African-American markets. In 2001, PepsiCo further augmented their marketing strategy to break into this previously unaddressed micro market with a new non-cola CSD named Code Red.

Product Development:

While targeting the African-American market, PepsiCo determined that its Mountain Dew line could be augmented with a new cherry flavor (Code Red). PepsiCo also hit the streets to go after the black and Hispanic audience with whom Mountain Dew has traditionally not done as well. Rap jingles starring Busta Rhymes and Fatman Scoop hit the airwaves, and cases of Code Red mysteriously began to appear at the doors of inner-city influencers. Revisiting the Pepsi Challenge from the 1980s and 1990s, we see a larger attempt to increase market share with product development. Prior to releasing Coca-Cola Classic, Coca- Cola attempted to diversify their product with the 1996 introduction of Coke II. Altering the formula of their best-selling CSD, the Coca-Cola Company attempted to make the product more appealing to consumers. Coke II was very poorly received, and Coca-Colas attempt at product diversification failed with thousands of consumer complaints about the new formula. In the brand-loyal CSD market, product modification is rarely wellreceived, as exemplified by the failure of colorless colas and the poor performance of recently released lemon-flavored colas.

Diversification: Starting up or acquiring businesses outside of current markets and products diversification is an excellent way to strengthen a company. Profits and revenues generated by secondary or even tertiary ventures can provide additional resources to strengthen a businesses primary class of products. However, as Kotler and Armstrong explain, companies that

diversify too broadly into unfamiliar products or industries can lose their market focus. PepsiCo was faced with this very situation in the mid-1990s with their restaurant ventures. PepsiCo was operating with over 400,000 employees worldwide, many of whom supported one of the three fast-food chains under Pepsis banner. The hot food division of PepsiCo brought in the most revenue of any of their existing divisions, but was the least profitable. In 1997, PepsiCo spun off their restaurant businesses as Tricon Global Restaurants, in a move to keep from becoming too overdiversified. PepsiCo, valuing its stability through diversification, moved to acquire Quaker and SoBe in 2001.Quaker specializes in health foods and is the industry leader in non-carbonated sports drinks. SoBe is a world leader in health and new-age non-carbonated beverages. PepsiCo correctly identified the global demand for more non-carbonated ready-todrink beverages, and was able to move swiftly to diversify their holdings. Gatorade, a sports drink acquired with the Quaker purchase, sold slightly over USD$ 2 Billion in the year 2000 rivaling Pepsis competitor Coca-Cola. Coca-Cola does not show any sign of moving into markets other than ready-to consume beverages, but still offers a wide array of diversified beverage products. The 239 beverage brands that Coca-Cola produces constitute a major portion of beverages available to consumers worldwide, covering dozens of micro-markets. Unlike PepsiCo, Coca-Cola has a long history of success with international marketing efforts and business strategy. Thus, rather than competing with Coca-Cola on in the international beverage arena, PepsiCo has ensured longevity with alternate product offerings

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ORGANIZATIONAL CULTURE The culture of Shamim & Co. is differentiated with the other Beverage Companies on the basis of following key characteristics; INNOVATION & RISK TAKING The companys emphasis over innovation and risk taking is much higher than the competitors and due to this characteristic amassed by all other Pepsi Cola Franchisees the PCI has got Top position in the year 2003 overall the world that has been published by a very well renowned Magazine Fortune.

ATTENTION TO DETAIL The companys employees exhibit precision, analysis, and attention to detail. Due these qualities, the overall performance of the company is appreciated and very well managed.

OUTCOME ORIENTATION The management of Shamim & Co. focuses on results or outcomes rather than on the techniques and processes used to achieve these outcomes. The company got Mega Plant status in 2000, 2001, and 2002 due to this characteristic.

PEOPLE ORIENTATION The decisions made by the management of Shamim & Co. take into consideration the effect of outcomes on people within the organization. The people working under different Managers are treated by the dynamic approach to get the maximum efficiency from them. TEAM ORIENTATION The work activities in Shamim & Co. are organized around teams rather than individuals. One of the companys executives says that they do follow the policy of TEAM which is deabbreviated as Together, Everyone, Achieves, More.

AGGRESSIVENESS The employees of Shamim & Co. are always willing to accept the challenges and aggressive to accomplish the tasks assigned and competitive rather than easygoing. STABILITY Some areas of working relationship between the employees are kept in status quo in contrast to growth like socialization etc.

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HOW THE NEW EMPLOYEES OF Shamim & Co. LEARN CULTURE

Shamim & Co.s Culture is transmitted to new employees in a number of forms, the most potent being; STORIES RITUALS MATERIAL SYMBOLS LANGUAGES

STORIES One of the most important ways of transmitting the culture to new employees in Shamim & Co. is stories. Old employees of the company carry

those stories about the people who had worked with the organization. They are well familiar with the past experiences and their outcomes. They either frighten them or give them courage to follow or not the procedures set by the company. The old bosses of the department brief new comers how they should have to perform their duties and what are the norms of the company which cannot be violated. For example Mr. Asif is the In charge of MIS Department of Shamim & Co., he is responsible for the initial training of the new comers. He gives them all the details regarding the Department, and Organization. He tells them about the decorum of the office and likely behavior to be pretended. RITUALS Another important factor of transmitting the culture to new employees is rituals. Some activities are considered to be the understood activities like the break for Namaz-E-Juma. As the members of Shamim & Co., are regular prayer sayings, so a

break for the prayer is understood and nobody is compelled to do any office work during the break. Also there is a company policy in Shamim & Co., that is to give 15 days annual recreational holidays with pay. Anybody who wants to go for those holidays, he can go with the consents of his boss. MATERIAL SYMBOLS Another motivational cultural approach is to give due position to the employees who deserve that position. In Shamim & Co., the top executive like Mr. Aamir Hameed GM Sales, has been given a chauffer-driven Honda Civic Car, a latest Laptop, Unlimited use of mobile phone, a well furnished house, one Umera per year, free cold drinks up to 200 c/s. and a very handsome salary package. So the material symbols like these facilities also show the best cultural values and motivational tactics for the new comers and for those persons who work hard in the organization.

LANGUAGE The employees of Shamim & Co. have a formal way of behaving to each other. They talk formal like Sir even to their coworkers. They respect each other all the way to share the respect. Hence use of formal language is also key to learn the culture in Shamim & Co.

Reasons of popularity of Pepsi in Pakistan There are certain reasons for this dominance.

1. Aggressive bottlers.

The pepsi bottlers were more aggressive in their policies and strategies than that of their competitors. COKE ignored this region because the share they were getting from this region was less than nominal, providing pepsi an opportunity to grow up and capture the market. 1. 2. Anti Jew Movement.

Because of the Arab Israel war, the Arab countries decided to boycott the Jew products. So they boycotted the COKE. It opened the gates of success and opportunity for the pepsi.

1. 3.

Environmental factors.

Cold conditions in western societies influence people to use things with bitter taste like beer and coffee, therefore they like COKE as compared to pepsi because the contents of coke are bitterer. In Pakistan people are more inclined towards sweeter taste therefore they like pepsi.

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CONSUMER REQUIREMENTS Basically soft drinks are consumer good that is not a necessity so the companies have to draw money from the pockets of the customer. This is not an easy process. BRAND LOYALTY

One of the important features of this industry is the concept of brand loyalty or brand addiction. Customer who wants Pepsi will always go for Pepsi. For the same reason a competing company like Coke cannot divert these customers towards their brand. But these customers are looking for two things in the product, which they are loyal to. PERSISTENT QUALITY This is one of the main requirements of the customer. Whether he is in a developed city like Karachi or Lahore or in a remote village, what he wants is that he is provided with the same quality of the product everywhere. To have this customer requirement be fulfilled the company needs not only to manufacture quality product but they also have to constantly track the product as it moves from there company to distributors and then to final customer. These soft drinks can sustain their quality in a specific temperature specially the glass container cannot absorb higher intensity of heat. But what these retailers do is that hey keep these containers outside their shops directly under the sunlight that really affects the quality of the product. Although the life of the glass bottles under ideal conditions is almost 6 months but due to above mentioned conditions, the life span reduces to only a week. Company therefore advises the shopkeepers to keep the stock under sheds but if they can't then they should sell it within a week time. AVAILABILITY When a thirsty customer comes on a soft drink corner asks for a desired brand say Coke but if it is not available then is he not going to go for the next available brand. The answer will be yes, because he needs to fulfill his thirst and what is readily available is going to be consumed.

Therefore for companies to keep their, customers in general and loyal customer in particular, satisfied, they will have to insure that their goods are in sufficient quantity on the shops. For this the shopkeepers keep extra stock in their shops.

For the quality to be sustained they need to sell the crates which were stocked earlier. But usually they don't follow the pattern. What they do is that they sell the bottles on the basis of FIFO (first in first out) method. This practice also effects the quality of product leading to customer dissatisfaction.

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MARKET SEGMENTATION AND TARGET MARKETS This statement is quoted from Pepsi Cola International official website. In 1960, Young adults become the target consumers and Pepsi's advertising keeps pace with "Now it's Pepsi, for those who think young". Now there is no specific segmentation of market with respect to customers because their product is standardized. According to their general manager sales, different brands are targeted towards people belonging to different age group, according to him 7up is more likely to be preferred by old age people where as Miranda is popular among teenagers and Pepsi is preferred by people belonging to any age group.

ACHIEVEMENTS Last year Pepsi Cola Multan showed their best ever performance of product growth rate in the Asian Zone and stood fourth in the Asia. Recently last month Pepsi Cola Multan won the Pakistan quality contest by securing first position. As compared to last year their production capacity has increased to 100,000 cases per day in peak season. PRODUCTS PEPSI COLA Pepsi cola is their most successful brand with most of the market share .In Pepsi they are producing following brands

175 ml 250 ml 1000 ml 1500 ml

7-UP 7-Up is also popular in old age group of people. 7-Up is a lemon lime drink. In 7-Up they are producing following brands

175 ml 250 ml 1000 ml

1500 ml

MIRINDA Mirinda is the most popular drink in teenagers. In Mirinda they are producing following brands

250 ml 1000 ml 1500 ml

MOUNTAIN DEW Pepsi cola has recently launched a new product in Pakistan known as Mountain Dew which is now a days most popular cold drink amongst adult group. In Mountain Dew they are producing only one brand 250 ml bottle. PEPSI INGREDIENTS:Water At least 86% of soft drink is purified water. In the case of diet soft drinks water comprises around 96%. Sweeteners Such as sugar (sucrose from sugar cane) or non-nutritive sweeteners. Sugar is used in Pepsi, 7UP, Mountain Dew and Mirinda. The most popular and most widely non-nutritive sweetener used is Aspartame. NutraSweet is the

registered trade name and it is used in Pepsi Light, Diet 7UP and Pepsi Max. Aspartame, being 200 times sweeter than sugar, is used in very small quantities. Other non-nutritive sweeteners permitted are acesulphame potassium, thaumatin, saccharin and cyclamate. Pepsi Max and Pepsi Light use a dual sweetener system, aspartame and acesulphame potassium. The latter is 300 times sweeter than sugar, requiring even less to sweeten the soft drink. Shelf life of the product is extended, as, unlike aspartame, acesulphame potassium does not lose its sweetness over time. Flavours Pepsi uses flavors to develop characteristic tastes associated with our beverages. These come from a variety of sources; natural, artificial and nature identical. They are usually derived from a number of ingredients used in special combinations. Examples of flavors used in the manufacture of soft drinks include natural flavorings from Kola nut, and fruit. Food acids and bittering agents such as citric, phosphoric acids and caffeine are also flavoring substances. Our products and the flavors used in those products are safe and suitable, but they are proprietary. Carbon Dioxide Effervescence gives soft drinks their special bubbly appeal and is added During production by injecting C02 into the product on the way to the filler. Colors

Colors are added to Pepsi Cola products to enhance the esthetic appeal and appearance of products whether they are the typical brown of our colas or the yellows of Mountain Dew. These may be both natural and artificial. Natural colors or colors sourced from natural materials. Many countries have regulations that specify certain colors as natural. These colors are referred to as "natural colors." Synthetic (or artificial) colors. Internationally there are many colors that are accepted. Preservatives Certain preservatives are used in soft drinks to ensure microbial stability and prevent spoilage
Read more: INTERNSHIP REPORT on PEPSI COLA - Virtual University of Pakistan http://vustudents.ning.com/group/mgti619internshipreportmanagement/forum/topics/internship-report-on-pepsicola#ixzz2CS2ng7RJ