Naubahar bottling Co.(Pvt)Ltd.

Report based on internship

Naubahar botteling company Gujranwala

University of Gujrat

City campus

Gujrat

ACKNOWLEDGEMENT

At the outmost uncountable thanks to Almighty & Omnipotent Allah, WHO created us humans and gave us abilities to think and understanding, WHO has made me to complete this quite learning and useful report, WHO showed me the true path and enables us to walk on it.

I dont have words to thank my beloved Parents whom best wishes and prayers are always with me and always play their vital role in my success. They gave me courage, developed my mind and their good training made me to come up with such reporting results.

I have no more words to pay regards and thanks to my Mother and Father. May Allah Almighty keep them happy in this World and the World here after (Amen).

I also pay my special regards to NBC Team for the cooperation, consideration and help at each and every step of this project.

I am obliged to all those who have good wishes for me and all those who contribute in this effort directly or indirectly.

ANSAR IJAZ

EXECUTIVE SUMMARY

This report highlights the basic functions and operations of PEPSI COLA Internationals franchise Naubahar Bottling Company located in Gujranwala where I did my (6) weeks internship. This report contains the history of PCI that how it was started in Atlanta, when it was entered in Pakistan and how Naubahar Bottling Company Pvt. Ltd. Gujranwala changed its business from Coca Cola to Pepsi in 1980-81. This report basically has detailed information about the workings of the major functions of the NBC i.e. production, market research and development (MR&D), sales, market equipment management (MEM), management information system (MIS) and shipping etc.

This report contains observations and findings of NBC working environment in a summer season which is almost peak season for the bottling companies. It is dealing in all beverage brands as by PCI internationally e.g. Pepsi, Mirinda, Mountain Dew, 7-up, 7up Free etc having 5 plants to produce these brands.

NBC is not only the largest franchisee of PCI in Pakistan but also the largest one from all working in south Asia. SWOT analysis is given at the end of the report which analysis the strengths, weaknesses which are internal influencing factors and opportunities and threats which are external influencing factors. This analysis helps in analyzing the current situational position of the company, tells which external or internal factor is to avail which to retain and from which to sustain.

NBC is the company having many achievements in shorter span of time like; best bottler of the year, ISO 9000 certified high performance award and many more that shows that how this organization is working efficiently and effectively. This organization is expanding more than its expectation thats why there are some problems facing this organization which are mentioned in it. To cope with the demand and to overcome the problems arising due to expansion it has started its new automated plant at Ottawa, Gujranwala where production of PET bottles is being made.

VISION

PepsiCos responsibility is to continually improve all aspects of the world in which we operate environment, social, economic creating a better tomorrow than today Tomorrow greater than 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.

OBJECTIVES OF STUDYING THE NBC

In different courses, various principles and techniques provided to us a detailed overview of Business Administration especially in marketing. But the actual learning is to have a practical demonstration of the theoretical by observing the systematic business operations.

Following are the important objectives of studying the organization:

Studying the organizational structure of the organization.

Understand the procedure of the all department.

Analyzing the marketing activities.

Analyzing the marketing structure of the marketing department.

Considering the communication flow of the marketing department.

Evaluating the working style of the finance employees.

Analyzing the weaknesses and strengths of the departments.

How NBC manage its product line.

How NBC copes with the environmental changes.

To know the competitiveness of the organization.

OVERVIEW OF THE ORGANIZATION

BRIEF HISTORY OF PCI

Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention of Caleb Bradham (left), a pharmacist and drugstore owner in New Bern, North Carolina.

The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So a young pharmacist named Caleb Bradham began experimenting with combinations of spices, juices, and syrups trying to create a refreshing new drink to serve his customers. He succeeded beyond all expectations because he invented the beverage known around the world as Pepsi-Cola.

Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn it into a gathering place. He did so by concocting his own special beverage, a soft drink. His creation, a unique mixture of kola nut extract, vanilla and rareoils, became so popular his customers named it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and advertised his new soft drink. People responded, and sales of Pepsi-Cola started to grow, convincing him that he should form a company to market the new beverage.

In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and sold it exclusively through soda fountains. But soon Caleb recognized that a greater opportunity existed to bottle Pepsi so that people could drink it anywhere.

The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line "Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to bottle Pepsi to independent investors, whose number grew from just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by 1907. By the end of 1910, there were Pepsi-Cola franchises in 24 states.

Pepsi-Cola international provides advertising, marketing, sales and promotional support to Pepsi-Cola bottlers and food service customers. This includes some of the world's best-loved and most-recognized advertising. New advertising and exciting sales promotions keep Pepsi-Cola brands young. The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage products.

Pepsi is a leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. PepsiCo brands are available in nearly 200 countries and territories.

Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.

PepsiCos success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people

Pepsi Logos:

The Pepsi logo has changed many times over the years. Here's a chronological history of the various logos.

In 2010 PEPSI changed logo as per following:

Pepsi Cola Int. operations in Pakistan are being monitored by West Asia Division of Pepsi Cola International.

The West Asia Division comprised four countries

Afghanistan

Bangladesh

Pakistan

Sri Lanka

The company in Pakistan had its head office in Lahore. The business with the Bottlers was handled through Franchise Managers. Eight bottling companies in Pakistan produced the Pepsi brands of soft drink. These companies bottling plants located in

Faisalabad

Lahore

Islamabad

Multan.

Gujranwala.

Karachi

Hyderabad

Sakkar

Introduction to NBC

Organization Name:Naubahar Bottling Company

Address: 38-40/A, S.I.E, Gujranwala, Pakistan.

Introduction: The Company established in 1971. From 1974-1979 there was production of Coca Cola products. But in 1980 achieved license of PCI and start the production of PEPSI products in May 27, 1981. In 1998 they attain the ISO 9002 certification. NBC have five plants and in 2002 they also start the production of 7up.NBC is the largest bottling plant in Pakistan. They produce 100,000 cases/day, and their production capacity also largest in South Asia. Total 1050 employees are working in NBC and 1500 workers.

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

Direct Delivery System:

Manufacturer Retailers Customers

Indirect Delivery System:

Manufacturers Distributor Retailers Customers

The basic difference between the direct and the indirect delivery system is that in a direct distribution system, the company spends its own sources while in an indirect distribution; the dealer spends his own resources on all the factors which increased the sale. The company also has its depots in different cities. This helps a lot in increasing its sale and directing the distribution system.

They are in following ares:

Sialkot

Narowal

Mandi Bahauddin

Gujrat

Shahdara

Jehlum

Sheikhupura

Nature of the Organization

Naubahar Bottling company (Pvt.) Ltd. is a manufacturing company. It produces various types of carbonated drinks and Juices. NBC is committed to provide the quality soft drink to the customers. The organization is equipped with all pre-requisite for meeting the future challenges successfully. Naubahar Bottling Company has a high number of professionally qualified persons in Sales, Marketing, Production, Shipping, Finance, Administration and Technical Departments. The company is offering most popular brands of soft drinks.

ACHIEVEMENTS OF THE ORGANIZATION

In 1998 the company has achieved ISO 9002 Certificate, for its best production and services. The company has already received different awards for its best quality, maximum production and even growth. They are

Exemplary performance award 1987

International quality award1987

Bottler of the year1989

Excellence on 1st position in sales 1993

Bottler of the year 1993

Bottler of the year 1994

Bottler of the year 1995

International quality award2006

International quality award2009

Excellent on 1st position in sales2009

International quality award2010

Currently Offering Products

By the passage of time company is expanding its offerings. Initially company was involved in manufacturing soda water. Now it is also producing juices and energy drinks.

Pepsi Cola

Pepsi Diet

7up

7up Free

Mirinda

Mountain Dew

Teem

Slices Juice

Sting Energy Drink

COMPLETE PRODUCT LINE

(Complete Product Line of NBC)BRANDS

PACKING

UNITS

VOLUME

PEPSI

250 ML

24 bottles per case

250 ML per bottle

1000 ML

12 bottles per case

1000 ML per bottle

1500 ML(PET)

6 bottles per case

1500 ML per bottle

1000 ML(PET)

6 bottles per case

1000 ML per bottle

2250 ML (PET)

4 bottles per case

2250 ML per bottle

500 ML

12 bottles per case

500 ML per bottle

300 ML(NR)

12 bottles per case

300 ML per bottle

300ML CAN

12 T.P per case

300ML per T.P

MIRINDA

250 ML

24 bottles per case

250 ML per bottle

1000 ML

12 bottles per case

1000 ML per bottle

1500 ML(PET)

6 bottles per case

1500 ML per bottle

1000 ML(PET)

6 bottles per case

1000 ML per bottle

500 ML

12 bottles per case

500 ML per bottle

300 ML(NR)

12 bottles per case

300 ML per bottle

300ML CAN

12 T.P per case

300ML per T.P

TEEM

250 ML

24 bottles per case

250 ML per bottle

1000 ML

12 bottles per case

1000 ML per bottle

1500 ML(PET)

6 bottles per case

1500 ML per bottle

7UP

250 ML

24 bottles per case

250 ML per bottle

1000 ML

12 bottles per case

1000 ML per bottle

1500 ML(PET)

6 bottles per case

1500 ML per bottle

1000 ML(PET)

6 bottles per case

1000 ML per bottle

2250 ML (PET)

4 bottles per case

2250 ML per bottle

500 ML

12 bottles per case

500 ML per bottle

300 ML(NR)

12 bottles per case

300 ML per bottle

300ML CAN

12 T.P per case

300ML per T.P

MOUNTAIN DEW

250 ML

24 bottles per case

250 ML per bottle

1000 ML

12 bottles per case

1000 ML per bottle

1500 ML(PET)

6 bottles per case

1500 ML per bottle

1000 ML(PET)

6 bottles per case

1000 ML per bottle

2250 ML (PET)

4 bottles per case

2250 ML per bottle

500 ML

12 bottles per case

500 ML per bottle

300 ML(NR)

12 bottles per case

300 ML per bottle

300ML CAN

12 T.P per case

300ML per T.P

PEPSI DIET

330 ML CAN

12 bottles per case

330 ML per bottle

300 ML(NR)

12 bottles per case

300 ML per bottle

7UP Free

250 ML

24 bottles per case

250 ML per bottle

1500 ML(PET)

6 bottles per case

1500 ML per bottle

1000 ML(PET)

6 bottles per case

1000 ML per bottle

500 ML

12 bottles per case

500 ML per bottle

300 ML(NR)

12 bottles per case

300 ML per bottle

300ML CAN

12 T.P per case

300ML per T.P

Sting

240 ML

24 bottles per case

240 ML per bottle

500 ML

12 bottles per case

500 ML per bottle

Slice

240 ML

24 bottles per case

240 ML per bottle

ORGANIZATIONAL STRUCTURE

Departments of the Organization An Overview

There are following departments in NBC

Production Department

Sales & Distribution Department

Marketing Services Department

Marketing Research & Development Department

MEM Department

Key Accounts Department

Finance & Accounts Department

Quality Control Department

Planning Department

IT Departments

Procurement Department

Human Resource Department

Shipping department

Advertising & Publicity Department

Audit Department

Cash Deprtment

Excise & Taxation Department

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 most 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, bottleneck or disturbances will slowdown the whole operations.

Production Department:

Production is like a back bone in any manufacturing organization. In NBC the main production materials are

Sugar

Co2

Water

Ammonia etc

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 of 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.

Market Research & Development Department:

This is also very important Department of NBC. This department performs a lot of activities such as retail Audit, Sampling & discounting, every dealer survey. Market surveys are conducted to check out the market share of the respected territory & to check out the performance of the Relative sales officer, for this purpose raw data is collected from market and then analyze in order to prepare reports. This department also performs activities of investment verification annually or semi annually.

Marketing Services Department:

As shown by name this department deals with the services and performs various activities to give reliable services to their Distributors and then final consumers. it deals with the third parties and also with the distributors of the company for vehicle issuance etc.

Key Accounts Department:

Two Key Accounts Executives are working under a key accounts manager to perform activities like Developing, retention or converting new Accounts.

A Point is a Key Account Point it fulfill two conditions

1: Good Location

2: Annual Sell is 2000 Cases of 250ml Bottle

This Department also performs activities to make contract with high sell points i.e. K.F.C or any other big restaurants.

Quality Control Department:

This Department deals with the assurance of High quality providence. it consist of 35 workers, who performs different Activities related to quality control. It is checked that required standards are followed during production as defined by PCI. It also involves the activities of preparation of syrup according to standards.

Procurement Department:

This department deals with the Purchasing of raw material,co2 Gas which are used in production process. Availability of these things at proper time is key responsibility of this department so that production is done according to planning. All things are issued against out gate pass and received against inward gate pass.

Human Resource Department:

This department deals with the activities like recruitment, employee records. Strength of HR department is 5.This department interlinks with time office department time to time in order to check the attendance of turnover ratio of the employees.

Planning department:

This Department deals with the planning matters of the organization such as Annual plan of the organization, Forecasting, Investment plan for the year, production plan, pricing strategy, Schemes Which will be introduced etc. MIS Departments:

This Department Handle the activities related to networking using by different departments of the organization in order to interact with each other. There are 8 employees who are working in this department. Each is assigned different task.

Sales:

Sale is a very important tool of any customer based company. Sale is not only selling the products to its retailers. It has many requirements which are under.

1. Keeping a positive, optimistic attitude.

2. Being organized.

3. Being persistent.

4. Being original

5. Asking for the sale

6. Asking for more

Structure:

(T.U Setup) (Non T.U Setup)

Regions & Employee Strength:

As defined above NBC works in nine district of Punjab. For proper Sale and make the product easily to the customer it makes 6 regions and 17 units. Unit wise detail of employees is as under.

Regions are as under:

1: Sialkot

2: Sheikhupura

3: Gujrat

4: Jhelum

5: Gujranwala out

6: Gujranwala Local

DISTRIBUTION AREAS

Market Research & Development Department

This is also very important Department of NBC. This department performs a lot of activities such as retail Audit, Sampling & discounting, every dealer survey. Market surveys are conducted to check out the market share of the respected territory & to check out the performance of the Relative sales officer, for this purpose raw data is collected from market and then analyze in order to prepare reports. This department also performs activities of investment verification annually or semi annually.

A) Market Research & Development Department:

Structure:

Employee Strength:

There are total 108 employees are working in the MR&S department. The detail of the employees according to designation is as following:

DesignationNumber of Employees

Manager01

Assistant Managers02

Marketing Research Executives04

Marketing Services Executives05

Marketing Research Officers19

Marketing Services Officers 25

Marketing Research Super visors09

Marketing Services Supervisors28

Computer Operators04

Drivers11

________________________________________________

Total108

Activities and functions of the MR&S Department:

The research executive, research officer and the research supervisor work as a team and this team goes into the field on daily basis each day a new team is formed means that the assistant manager can change the members of the team when he desires.

Scope:

Calculating the sales volume.

Making research and analysis for company before making investment in market & Advertising e.g. investment on the outlet in the form Tots injection, publicity.

Area verification.

Complaints handling and tracing the responsible person or department.

Market intelligence.

Pre-field work.

Analyzing & interpreting the data.

Making Results.

EDS (every dealer survey) here the term dealer means retailer.

Franchise Report (Annual basis).

Retail Audit (Quarterly basis).

Activities:

1- Retail Audit

The retail audit is done by the MR&S team consisting of 4-5 members. They ensure the availability of the brands and also check out the other brands available at that store of competitors and b-brands.

2- Census

This task is done by the teams according to instructions by the head of the department.

Usually census is made at division, District, Tehsil and Village levels.

In census they are going to conduct two types of surveys;

a- Consumer Surveys

b- Retailer Surveys

a- Consumer Surveys

Analyzing the use of daily used products and the market basket analysis to check out their consumption patterns and income level

b- Retailer Surveys

Visit every shop selling carbohydrate soft drinks (CSD's). The teams collect information about everything having forms containing following information;

-Name of the store

-Address

-Category of shop

-Total SSRB

-Total MSRB

-Total NR

-TOT's

Shops Categories:

Shop have categorized as:

a. Keryana Stores

b. General Stores

c. Super Stores

d. Departmental Stores

e. Cold Corners

f. Tuck Shops

g. Canteen

h. Tea Stall

i. Bakery

j. Confessionary

k. Hotel

l. Motel

m. Restaurant

Keryana Stores:

Shops having open goods of daily use more than 50% i.e. salt, tea, ghee, sugar, pulses etc are called Keryana Stores. Types of Keryana Stores are:

-Small Keryana Stores

-Medium Keryana Stores

-Large Keryana Stores

Small Keryana Stores (SKS):

The area of this store is 100 sq feet.

Medium Keryana Stores:

Area of this Keryana store is 100-200 sq feet

Large Keryana Stores:

The area of this Keryana store is 200-500 sq feet

General Stores:

The stores in which packed goods are more than 50 % are called general stores.

Area is the same as Keryana store.

Super Stores:

The stores having;

-Area 500 sq feet

-All items of daily use are available

-Counter and self services both are available

-Minimum one cash machine available, are called Super Stores.

Departmental Stores:

The stores where;

-Maximum self service and minimum counter service is available

-More goods and arranged one of daily use

-Portions are available, are called departmental stores.

Cold Corners:

Small shops having cold drinks, juices, etc are called cold corners.

Tuck Shops:

The shops at petrol pumps, CNG stations etc are called tuck shops.

Canteen:

The shops particularly in institutions, firms or factories and for specific people are called canteens.

Tea Stall:

The shops where tea, the key element, and some sort of cold drinks are being sold are called tea stalls.

Bakery:

The shop where baking items are available e.g. biscuits, cakes, breads, bun etc are available, they also have some sort of cold drinks, are called bakeries.

Confessionary:

The shop dealing in toffees, chocolates, juices etc is called confessionary.

Hotel:

The place where food and accommodation is available is called hotel.

Motel:

The place where only accommodation is available is called motel.

Restaurant:

The place where only food is available is called restaurant.

3- Sales Workings

MR&S is the back bone of sales department which check flaws, gaps, and all discrepancies in sales. Its the duty of the MR&S department to maintain a check over sales staff and keenly observe the workings of the sales department. They also maintain customer demand forecast (CDF) report to help out sales and other departments.

4- Tools of Trades (TOT's)

MR&S is responsible for checking the availability, purity and integrity of the TOTs.

-Availability: They check that the tool issued has properly reached to the desired store or not.

-Purity: In purity function they check the presence of competitor's brands or any other brand available in the market, in their chillers. The presence of other brands in the chiller is called impurity (e.g. Coca Cola brands present in the Pepsi chillers), and exclusive presence of their brand is called purity (e.g. Only Pepsi brands are present).

Sales officers make a requisition on a form having a complete information about the sale of the outlet to which the TOT is to be issued plus the product mix he has means that does that outlet deals in mix beverages or it is a Pepsi exclusive or it is a Coke exclusive and the detail of the existing equipment on the outlet along with the name of the provider.

The process is as follows:

(Issuance & Management) (Approval) (Verification) (Demand)

([By MEM Department) (By MS Department) (By MR&D) (By Sales Department)

Integrity:

If the chillers issued against specific space are being filled accordingly is called chillers' integrity. The integrity of the chiller is being violated if the space provided is over or under filled.

5- Market Development Reporting (MDR)

These reports consist of;

Competitors influence study

Self analysis

Market share

Floor stock of common bottles both that of competitors and own

Chilled stock of cold bottles that of competitors and own

And also some verifications;

Publicity verification

Promo verification

Sampling verification

Stock verification

Publicity verification:

These are some sort of information that cater public image about the product through event, groups, product or service sponsoring

Promo verification:

The company's particular scheme that is introduced time by time called promos are checked by the MR&S team that this promo is being run everywhere in the territory in the same time. These promos may be for both;

The customers

The retailers

Sampling verification:

This also comes under the head of promo in which free delivery of goods is made to either consumer or retailer. For this a specific segment is selected and sampling is made in high demand area. All these activities are checked out by this department.

Finance Department

It deals with the financial matters of the company. It collects the revenues and makes different payments and maintains proper record of the financial performance of the companys business to show the net result in the form of either profit or loss.

The job of the Accounts section 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.

Business Volume of Previous Years

Balance Sheet of Previous Years:

S. No

Years

Amount (Rs.)

1

2007

10,377,568,400

2

2008

10,617,116,000

3

2009

9,864,139,278

4

2010

9,156,873,203

5

2011

9,560,659,100

Cash Flow Statement of previous Years:

S. No.

Year

Amount (Rs.)

1

2007

3,280,475,629

2

2008

5,787,512,364

3

2009

4,828,421,450

4

2010

7,325,416,546

5

2011

7,530,520,856

Financial Performance of Previous years (Income Statement):

Rs. (000)

2007

2008

2009

2010

2011

Revenue

12,756,853

15,617,450

17,918,427

16,289,973

18,309,070

Direct Cost

8,367,945

11,841,217

12,957,398

11,911,420

1,292,622

Gross Profit

4,388,908

3,776,233

4,961,029

4,378,553

4,580,665

Operating Expenses

2,218,675

1,901,217

2,571,813

2,057,296

2,288,498

Operating Profit

2,170,233

1,875,016

2,389,216

2,321,257

2,532,460

Net Other Income

195,637

154,824

498,566

435,872

466,474

EBIT

2,365,870

2,029,840

2,887,782

2,757,129

3,060,230

Financial Charges

208,794

334,905

529,316

689,561

789,665

Profit Before Tax

2,157,076

1,694,935

2,358,466

2,067,568

3,077,678

Taxes

249,000

172,500

430,000

520,075

720,085

Profit After Tax

1,908,076

1,522,435

1,928,466

1,547,493

1,767,695

Management Information System (MIS)

In today's fast moving business environment, organizations are rapidly

moving towards computerization and information systems. In this era of rapid of

frequent changes, it provides current, reliable accurate information to the

management. This information is very useful in decision making. Information systems

are generally defined as the system which provide regular and current information to

management for decision making. MIS department of Shamim & Co. is playing a vital

role in this regard. The department is working with a small setup & satisfying the

information requirements the organization with a smart staff and developed setup, the

department has eliminated much work load, paper work and saved a lot previous

time. The software system have two basic parts and these are developed in some

programming language. The post important part of any information system is

database. The database is the basic structure of data and defines how data is organized,

stored and retired from memory. The database operates at the back end. At the front end

, data is entered and retired through input screens. The MIS department is currently

performing its day-to-day operations as well as involved in software development. It

also provide technical assistance and training to other departments. At the time oracle

8.0 is in execution. All computer 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

by order sips. empty short slip, the reports of the system are load report ( dealer

wise, depot wise ) settlement sheet ( dealer wise, depot wise ) Shipping shift summary

. Daily liquid out report. Pending 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. Excise And Sales Tax System: Shamim S

Co. is a regular tax payer of govt. of Pakistan. it pays excise and sales tax according to

its production and sales. the system is developed to keep complete record of the tax

transactions. stock of the product at the RG I is maintained after production. the stock

is moved to DP (duty paid) godown after its clearance by excise inspector and

payment of 15 % tax. at RG I, closing stock of a day is opening RG I stock plus day's

production and minus tax clearance. Payroll System: There is separate payroll

ystem for Shamim & Co. 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

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 most 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, bottleneck 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.

Insight in the shipping Department:

These are the core functions of shipping department described in summarized form because the detail is too long and will take another 20-30 pages to describe the activities of the shipping department.

No duty was assigned to us in the shipping department and we were allowed to move in the different warehouses of empty and liquid. This department was the one of the most organized departments of NBC, the other one was the inventory control department, this department was equipped with the database facility which was the main factor contributing to the efficiency of the department. Only this department has the complete system built on the ORACLE licensed from Oracle Corporation. This software running in the oracle was especially designed to serve the needs of the shipping system and that is why the shipping department can take on time and right decision and handle such a huge amount of empty and liquid at NBC.

I used the word remote warehouse several times in this report these warehouses are also attached with the shipping system at the NBC factory through wireless networking this setup is owned by the factory itself. Apparently it seems as if the company itself is taking interest in improving the operations or collecting and analyzing the data to better control the things to avoid the loses and also trace the reasons, this is true as far as the development of the system in oracle is concerned but this mere records the things and generates reports as demanded, developing any system for the sake of finding out something, collecting data on their own and then interpreting the results on their own is lacking in this organization.

What they are doing is just working on the lines provided by the PCI. This was told to me by one of the persons in the shipping office and it was also quite obvious from the excel worksheets because all of them were made by the PCI and given to the franchises to feed the data and get the results, formats and formulas were specified by the PCI, all what franchise have to put it on the system collect the data, feed it and get the results.

Daily Shipping Reports:

1. Daily shipments report

2. Daily carton report

3. Daily packing report

4. Daily pet empty report

5. Daily net empty report

6. Daily filled stock report

7. Daily production (filled stock) report

8. Daily liquid stock tacking report (Shift wise)

9. Daily empty stock tacking report (Shift wise)

10. Daily plastic shells report

11. Daily excise report

12. Daily dirty empty wash repot

13. Daily post mix report

14. Daily fm report

15. Daily pending load report

16. Daily vehicles (Loading / Un-loading) report

17. Daily other empty report

Daily production report. Report Product Loss Dirty Return To Sign of production office LIQUID STOCK & DISTRIBUTION Plant RG I Excise DP Distribution Clearance Godown & payment .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 bearded 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 each Plant:

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 No 01 produces 1500 ml (pet) & 1000 ml (glass) bottles plant No 02 produces 1000 ml (pet), 300ml and 1500ml (pet) bottles.

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.

Co2 (Carbon Dioxide) PLANT:

CO2 assures the product a measure of added sanitary protection and greater shelf life. CO2 gas in addition to product carbonation, contributes to the production process itself by:

1. Displacing air from water and product during processing.

1. Supplying counter pressure needs for some filler bowls.

CO2 enhances both beverage's taste and appearance. Carbon Dioxide imparts a pungent, slightly acidic taste to the finished product as well as creating greater eye appeal. Each individual product should be carbonated to a level most suited for that flavor.

Production Process:

The production starts with the empty wash department where the empty bottles are washed with detergents so that the syrup can be filled into these bottles. then second department in the production is syrup preparation department where the syrup pf different flavors ids prepared then the empty bottles are filled with the syrups at this stage water and co2 is mixed with the syrup and crowns are fitted on the bottles then these bottles are put into the plastic shells where these are transferred to the stock.

CASH DEPARTMENT

Cash department does cash handling (collection and payment). The major part of cash collection is from dealers and salesman based on their settlement sheet and daily sales report. Cash payment is done on the vouchers issued by accounts department. Payments include employee's pay, bills, allowances, procurement expenditures and day to day general expenses. AUTO WORKSHOP : The function of auto workshop department is top provide repair, overhauling and maintenance services to the vehicles used in the organization. These vehicles include Mazda, Toyota, Hino, Suzuki, Honda and forklifts (Toyota, TCM) of different models and capacity. Total number of vehicles served by the auto workshop is about 140. the responsibility of auto workshop is to keep PEPSI fleet efficient, deendable and energetic. Different departments particularly shipping and sales use these vehicles. Vehicles outside # are mostly used by sales staff. In case of some major work, it comes to workshop however if there is nominal repair work, they have it done locally. The staff of the department consists of 20 persons including mechanics. Record keeper, supervisor and headed by auto0 workshop manager. DOCUMENTS / REPORT IN THE DEPARTMENT: Daily performance report: Vehicle # Detail of work Visit outside work Job complete/Incomplete Name of mechanic Drivers name Sign. Remarks Monthly performance report of auto workshop: Maintenance work Engine Complete overhauling Welding Fabricating Denting Painting Engineering work from local market Engine Oil changing Tier tube changing repair work Servicing & Greasing work Motorcycle repair work Work order indicating defect, repair work and remarks and after repair a certificate showing that maintenance work is alright signed by the driver of the vehicle. Work order for market. Log book in each vehicle for each driver. Gate pass Store requisitions for transport spare parts and stationary. A small section of store working under main store is maintained in the workshop THE DEPARTMENT HAS FOLLOWING SECTIONS Electrocution section Tire maintenance section (compressor) Body welding section Service section Tool room WORKING PROCEDURE For any repair work, the driver must fill a work order signed by his respective in charge. The work order is also necessary for cars and motorcycles. The work order is refereed to record keeper who hands over to supervisor after entering in register and reports to work shop manager in case of accident. The supervisor is responsible for assigning the job to mechanic by matching the type of work and his skills. In case of some work required from market, supervisor himself goes with the vehicle or assigns one mechanic to monitor market work. The driver signs the work order certificate after his complete satisfaction.

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.

EXCISE DEPARTMENT Shamim & Co is a regular taxpayer of excise and sales tax to govt. the procedure is that production per hour of each plant is counted and noted in cases and bottles. The excise duty and sales tax is calculated as per govt. rate. The liquid stock of RG 1 is moved to DP godown after clearance and daily deposit of sales tax. The company and all its dealers pay sales tax at the end of each month. Sales tax and excise duty is also paid on some raw material as sugar, crown caps, concentrate etc. the department maintains following documents RG 1 register RG2 register AR 1 form Daily production report (shift bases) ACL register The department is concerned with collector rate of central excise and sales tax, production department, shipping department and MIS department.

Major Competitors

Pepsi's direct competitor is Coca-Cola. The non-soft drink competitors are tea, coffee, water, Energy drinks, milks, etc which are all consumed on beverage occasions. Pepsi aims to gain a greater share of these occasions.

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.

Following are the competitors of Pepsi Cola

Coca cola is one of the major competitors

Gourmet

Macca Cola

Amrat Cola

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. Coca-Cola Classic outsold all soft drinks in America during the year 2000, netting over USD$ 2 Billion at the cash register. The Coca-Cola Company maintains the CSD market as its primary line of business. With subsidiaries located throughout the globe, Coca-Cola 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), Coca-Cola 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 Coca-Cola 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 place Pepsi Cola Coca Cola Market Share 31.4 % 44.1 % No. of Countries 160 200 Variety of Product Large Large Target Market Youth General Strategy Focus Diff. Differentiation Diversification Related.Related. Companys Core Values

1. Focus on customer:

In which our basic focus on customer according to need and want and satisfy the customers to our product. 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.

2. Focus on 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.

3. Focus on employees respect:

In which company are respects the customer and employees which is involve in the company working .We treat each of our employees with fairness, which includes giving constructive feedback for their development.

4. 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.

Success and Failure of Products:

Ideas and opportunities have always been plentiful and there is no reason to believe in that the imagination of mankind has been exhausted. We must understand that marketing is a learning experience. We have to apply quickly the lessons we have learned. Education is not simply valuable unless it is applied. Product success is the result of an effective dialogue with the market place. Failure comes when a breakdown comes in that process.

Why Product Succeed:

Product dont suddenly appear in on midst and overwhelm us. Most successfully technology based new products have certain characteristics.

They appeal to new market an expansion of existing markets so that thousands of new and potential customers for the products are created.

They are not invention, in the true sense, but assemblages of interrelated technologies. Their creator take advantages of existing technology, achieving leverage by combining what they find in the world around them into a unique package. Product innovators are student of market and technology. Successful products are created by the addition of a new dimension to existing products and market.

They are adjusted to market requirements. Technology products must be molded to the market. They must be adopted, enhanced, and incrementally improved. Success comes to those who keep improving and adopting there products.

They are developed by small teams. A sense of purpose and mission can be better generated in small communities.

Key customers often play a central role in their design and incremental improvement. As we move into the future of custom designed products, the customer will be integrated in some way in the design process.

They are used in seminars, workshops, and demonstration and are discussed in the newsletters and at conferences to educate and develop the market.

Why Products Failed:

Failure is the flip side of the coin from success. More often then not, failure is the result of poor management and inability to efficiently implement product development. I have observed a number of company and product failures over the years and in poring tough notes. I have noticed that they seem to have several things in common.

The product does not create or expend the market. Generally the product has undergone an incremental technical improvement with little or no cost/performance benefit. It ends up competing with existing successful products.

The people who develop the first product have moved on or are no longer in a position to judge the technology and market share.

Due to success of initiate product, arrogance sets in. Success blinds management to the possibility of failure. They convince themselves that the market will embrace whatever they create.

The company loses track of the market guiding influence. In which customer interact with the product development team.

Promotional marketing techniques replace relationship marketing and market development.

Failure Product of NBC:

Overall Naubahar Bottling Co. producing quality products and most of the products are successful in the market. Mountain Dew was the only product which was failed in the market at the time of first time launching in 2002, so company stopped the production of this product at that time.

Reasons of the Failure:

In 2002 when Mountain Dew was failed in the market due to insufficient publicity. There was no awareness in the public about this product that it is also a product of PEPSICOLA. They consider it a local beverage product without quality standards.

But after a period of 3 years this product launched once again with highly advertising campaign. Now Mountain Dew is a successful product of the Company.

Successful Products of NBC:

All the products of company existing in market are successful like,

PEPSI

TEEM

MIRINDA

7 UP

7 UP Free

MOUNTAIN DEW

SLICE JUICE

AQUAFINA (Mineral Water)

STING (Energy Drink)

Reasons of the Success:

All of the products are matching with the requirements of the customer and found no defect or low quality standard.

Critical Analysis of the Management Patterns

Following weak areas, which need to be improved of marketing operations of Naubahar Bottling Co.

Close customer relationship.

Try to increase regional offices in different areas of territory or franchise.

Marketing personals are not fully involving in new product development with companys production department.

Visit to various markets for awareness of competitors activities.

Develop new ideas.

Improve their professional skills.

Have a birds eye view on customers requirement.

Marketing department is not fully satisfying the customers with regarding customer complaints.

Training and development required for marketing personnels for improving their professional and selling skills.

Marketing personnels should participate in different exhibitions and visiting different markets for improving the market share.

SWOT ANALYSIS

SWOT Analysis, is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. SWOT analysis groups key pieces of information into two main categories Internal factors The strengths and weaknesses internal to the organization. External factors The opportunities and threats presented by the external environment. The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organizations objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The factors may include all of the 4Ps; as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the form of a matrix.

SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade companies to compile lists rather than think about what is really important in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization so that, for example, weak opportunities may appear to balance strong threats.

Strengths:

Brand reputation:

PEPSI has a strong reputation globally. And traditionally when someone asks someone to take soft drink they dont call it soft drink or else but take PEPSI

Broader Product Line:

PEPSI has broader product line than its competitors which is a strength in itself.

Increasing Market Share:

Increasing market share of NBC products is an evidence of strength in itself.

Scheduled Production System:

Organized and tight production system results in time delivery of the products in the market without showing any fluctuation in supply.

Strong Distribution:

Great brands, strong distribution, innovative capabilities are strengths of Naubahar Bottling Company.

Advertisement:

Strong advertisement campaigns in comparison with Coca cola. Heavy budget is assigned on promotional activities.

Production Capacity:

NBC is the biggest plant of South Asia with production capacity of 100,000 crates per day.

Management:

Skilled managerial level staff have placed NBC at a distinguishable place by which further peak can be forecasted.

Weaknesses:

Anonymity:

Not all PepsiCo products bear the company name.

Preferential treatment:

Bit biasness is still being experienced by NBC regarding hiring of new employees.

Effectiveness but no efficiency:

Company is experiencing effectiveness in operations but not efficiency particularly in case of lower staff.

Opportunities:

IT solutions:

With up to date IT solutions and ERP information systems the operational cost can be minimized.

Convenience:

Focus on most important customer trend - "Convenience, which refers to increased availability of the Pepsi brands at outlets.

Consumer Trend:

There are increasing trend toward SUGAR FREE soft drinks, and caffeine mixed drinks.

Threats:

Maturity:

Beverage industry is fully matured. Competitor is well-run and financially sounds.

Varied marketing program:

Size of company will demand a varied marketing program; Social, cultural, economic, political and governmental constrains.

Anti Pepsi campaigns:

Religious sectors may uplift anti Pepsi campaigns resulting in ban on Pepsi products.

Imitators:

Copying of Pepsi brands have ever been a threat for NBC which is being viewed legally but still this problem exists.

Conclusion and Recommendations for Improvement

Conclusion:

I did my internship approximately six weeks. It was a great job. I was not expecting such a great learning it was a good experience with different people in the organization and I am really thankful to my immediate bosses who gave me a lot of knowledge with due respect.

The learning is helpful for my upcoming career that I am going to start after my MBA program.

Things were very close to me which I read in my course books and heard from my instructors.

It was real practice what I saw in the organization and experienced to deal with the different people.

The real picture is totally different in the organization and after this internship I felt relax and comfortable that now I am somewhat confident to join any organization. It was really marvelous job which I did there at NBC.

The staff from the high authority to tea boy was very kind and helping. They gave respect and attention a lot. Our bosses even did not hide anything related to our courses..

By doing this internship I realized that it is not an easy job whether you are in any department. You have to work on daily tasks and assignments and have to add value in assigned projects.

Time management is very important while you are doing a job. Behaviors and attitudes are also important while interacting the people in the organization.

Recommendation:

On the basis of analyzing and studies, following areas are recommended to improve the results of the organization.

The company should arrange the training programs to relevant to technical knowledge of product; this would improve the efficiency of finance department.

Hire only those employees having technical or science background qualification with MBA.

Meeting should be arranged with production manager for discussion about complaints on monthly basis.

The company should focus the attention to customer services and proper complaint handling to improve the company image in the market.

The company is going for expansion; therefore company should increase the staff of Finance and marketing department for better results.

Decision making power should be decentralized in each distribution territory.

The company should improve the communication process among the different departments for getting better results.

Appreciation and monitory regard is necessary on better performance of sales executives.

Marketing personnels should visit to factory premises for getting product information, so that they are fully aware the product and its specifications.

Responsibilities as a Student Internee

There were a lot of responsibility on me as I was the internee .Firstly, I want to prove that Im the student of good reputed university so thats why I have to show a good manner , my abilities , my knowledge , to leave a good image of my institution which I did . This can I prove them through my working. That I was the internee so that It was my duty to learn what was happening actually in an organization. After seeking all the practical knowledge so then I have to prove to my internship supervisor that I did my responsibility in an effective way. So thats why for prove I make my complete corporate internship report.

New knowledge acquired:

I feel many changes in my personality after enhancing my knowledge form NBC. A new knowledge is that I learnt all the department working.

How they control the Working of each department.

How we have to communicate in an organization.

How they handle their department staff.

How the departments achieve their targets

Work efficiency

Dealing with others

Survey thought me a lot because that was totally market based.

How to do work in a practical life.

Problems encountered:

As I was internee there so as such I nothing feel any problem there but the NBC organization Facilitate me and help me a lot. I think that I spent my golden period here.

How Internship Experience Impacts My Career

I achieve my goal in working NBC organization. I think it was my golden period of my life. During my internship in the NBC, I enjoyed to work with the staff of Company and have a wish to be employee of Northern 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 different departments for the sake of practical knowledge. I polish my knowledge in these 6 weeks.

References and Sources Used

For completing this project, I have taken help from following books as references.

MarketingWalker and Stanton

Marketing ManagementPhillip Kottler

E-marketing Judy Straus

As a source for better material of my report, I have taken help from marketing and shipping personnels and also website of NBC and PEPSICO.

www.nbcpepsi.com

www.pepsico.com

Head Sales & Marketing

Manager S & D

Unit Manager

Territory Coordinator

Sales Officer /Sales Supervisor

Salesman

Manager S & D

Unit Manager

Territory Coordinator

TDM

A.D.R

CR

MMR&S

A.M

MR&D

Computer

Operator

MRE

MRO

MRS

A.M

Marketing Services

Computer

Operator

MSE

MSO

MSS

MR&D

Working

Census

Market Development Reporting

Sales Workings

Retail Audit

Tools of

Trades

BALANCE SHEET200620072008200920109685575000103775684001061711600098641392789156873203

CASH FLOW STATEMENT2006200720082009201039254562653280475629578751236448284214507325416546

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