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PREFACE

This report of Coca-Cola International MAKK Beverages and mineral water


(Pvt.) Ltd. is written as a partial fulfillment of requirement for the award of degree
of business administration. In this organization, I worked as an internee for eight
weeks and observed the major activities of the organization in the form of
marketing deptt, production deptt, shipping deptt, accounts deptt. And general
administration. Here, I got the experience of on hand knowledge and situations
not present in curriculum books.
I thank almighty Allah for his mercy and love who enabled me to go through this
tedious job.
I would also thank my parents especially my mother whose love for knowledge
and education acted as a guiding force for me in all of my endeavors.
Mr. Aurangzeb Khan, Factory Manager of MAKK Beverages (Pvt.) Ltd proved to
be a great help for me in arrangement of my internship and writing of this report.
All his associates namely,
Mr. M. Zaman Khan, Production Manager
Mr. Jehangir Khan, Marketing Manager
Mr. Keramat Ghauri, Chief Accountant
Mr. Hamayun Khan, Sales Manager (Base)
Mr. Mian Zahoor Ahmed Sales Manager (O/S)
Mr. Umara Khan (Distributor) and
Mr. Rahim Khan (Quality Control Manager) deserve my heartiest thanks as they
helped me a lot in understanding the working of a manufacturing company.
Last but not the least I would thank my kind teachers Miss Durr-e-Nayab who
guided me in each matter regarding the compilation of this report.

Ehsan Ullah Safi


LIST OF CONTENTS

S. No. Topic Page #


Preface i
List of Table ii
List of Chart iii
Executive Summary iv
Chapter – 1
INTRODUCTION OF THE REPORT
1.1 Background of Study 1
1.2 Purpose of the Study 2
1.3 Scope of the Study 2
1.4 Methodology of the Report 2
1.5 Scheme of the Report 3
Chapter – 2
INTRODUCTION OF THE COCA-COLA
INTERNATIONAL
2.1 Brief History 4
2.2 Events in Chronological Order 4
2.3 Coca-Cola Word Wide 5
2.4 Coca-Cola in Pakistan 5
2.5 History of Coca-Cola Promotional Campaign 6
2.6 Coca-Cola Mission 9
2.7 Profile 10
2.8 Bottling System 11
Chapter – 3
MARKETING REVIEW
3.1 Product 12
3.2 Sales Promotion 16
3.3 Consumer Sales Promotion 16
3.4 Reseller (Trade) Sales Promotion 19
3.5 Pricing and Pricing Strategy 21
3.6 Pricing Objective 21
3.7 Distribution Channels 23
3.8 The Role of Middle Man 25
3.9 The Coca-Cola Realm 26
3.10 Organization Chart of Coca-Cola 29
3.11 Equal Employment Opportunity 32
3.12 Coca-Cola Wonder of the World Scheme 32
3.13 Environmental Policy for Cold Drink Equipment 33
3.14 Environmental Training 34
Chapter – 4
THE PRODUCTION AND ACCOUNTING
DEPARTMENT
4.1 Manufacturing Process 36
4.2 Accounting Department 38
Chapter – 5
CRITICAL ANALYSIS
5.1 Strength 42
5.2 Weaknesses 44
5.3 Opportunities 46
5.4 Threats 48
5.5 General Analysis 50
Chapter – 6
CONCLUSION AND RECOMMENDATION
6.1 Conclusion 52
6.2 Recommendation 53
Chapter – 7
ACTION/IMPLEMENTATION PLAN
7.1 Staff Oriented Measures 57
Questionnaire 62
List of Personnel Interview 66
Bibliography 67
Internet Sources 68
LIST OF TABLE

S. No. Topic Page #


1. The Role or Middle Man 25
LIST OF CHART

S. No. Topic Page #


1. Organization Chart of Coca-Cola 29
EXECUTIVE SUMMARY
Coca-Cola is the world leading and the largest beverages company with its Head
quarter based in Atlanta Georgia USA.
Coca-Cola has a very rich history. Having first introduced by Dr. John Stitch
Pemberton 1886 in Atlanta for local consumers only Coca-Cola today have
millions of the consumers worldwide.
Coca-Cola today is providing their services in almost every part of the world
where its production plants meetings the growing demand of the consumers.
In Pakistan Coca-Cola have ten production plants with its Head quarter based in
Lahore, which is also responsible for the promotional campaign countrywide.
Out of these eight branches are franchise to Oligin groups and two of them
(Peshawar, Rawalpindi) to Muhammad Aslma Khan Khattak (MAKK). The
Peshawar branch located on Charsaddah Road and is the only plant in N.W.F.P.
As the focus of the report is on sales and marketing review of Coca-Cola
generally in Pakistan and particularly in N.W.F.P.
The marketing activities of any company is revolve around the marketing mix
(Product, Price, Place, Promotion).
Coca-Cola is available in the market in 250 ml, 1000 ml, 1500 ml an d250 ml
disposable bottle for different market segment in order to satisfy their need more
effectively and efficiently.
Internship Report On Coca-Cola MAKK Beverages (Pvt) Ltd.

CHAPTER - 1
INTRODUCTION OF REPORT
An internship program is a two months practical training for the students of MBA
in a well-established organization.
Following are the importance of the internship.
- An internship program provides an opportunity for the student to observe
and to watch closely that how organization operational and other activities
(Marketing, finance, production etc.) take place. Thus, the students are
exposed to the practical aspects of business and management.
- An internship program also provides an opportunity for the students to
work in a real life situation and apply the management knowledge
practically which they learn from books.
- Through internship program the students can improve their personnel
skills (Human relation, working with people and intervening etc.) and
analytical skills (marketing analysis, financial analysis etc.)
After the completion of internship the students are liable to prepare a
report on internship program. This practice improves the report writing skills of
the students.

1.1 Background of Study

The focus of this report is on marketing of Coca-Cola (MAKK Beverages) and


Mineral Water Pvt. Ltd.). The Coca-Cola is one of the foremost soft drink in our
country Pakistan and have merit production through out the world. Coca-Cola
Company is a multinational company and has got a very bright history. Since
1886 the company has working to refresh people every where through its
beverages. In the year 1902 Coca-Cola firm advertised its product for the first
time. Coca-Cola company has around nine franchised manufacturing facilities in
different cities of Pakistan namely, Lahore, Karachi, Faisalabad, Haiderabad and
in Peshawar MAKK beverages.

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The Coca-Cola system has more than 16 million customer around the world that
sell or serve its product directly to consumer and there are nearly six billion
people in the world who are potential consumer of Coca-Cola company product.
The Coke’s success in achieve when it place right product in the right market at
the right time.

1.2 Purpose of the Study

The study was conducted to check the marketing activities of Coca-Cola in


Peshawar Market. Market is the place where all other soft drink are available at
the same price or below. Its difficult to read the attitude of the people towards
company layout. Prevailing this it is necessary to judge the acceptance of the
people in relation with product and its availability in the market. Another aspect
was to see the competitor, strategies regarding same soft drink. Their scheme and
method of compaign representing their sales and promotion. In the regime of
company the sale of Pepsi was increased and Coke was found modest in market.
This dilemna was also a part of analysis between two major soft drink competitor.
So this reports aims to illustrate the working of Coca-Cola and analyze it from
observation and comparing it to ideal practice as found in the text book.

1.3 Scope of the Study

The main focus of my study is to describe the working procedure of different


departments of MAKK beverages. Especially the marketing department In other
words the study will cover the products that are produced and four element of the
marketing mix 4ps. Product, price, promotion, placement.

1.4 Methodology of the Report

The report is based on my eight weeks internship in the company manufacturer of


Coca-Cola and other beverages. The source of the data used for writing report
includes primary data.

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Primary Data

⇒ Interview of top management


⇒ Interview of the company distributors
⇒ Personal observation of the company operation
⇒ Questionnaire
⇒ And use of secondary data sources of information.

Secondary Data

⇒ Internet
⇒ Journal
⇒ Magazines
⇒ Newspaper
⇒ Books

1.5 Scheme of the Report

This internship report consists of four sections and eight chapters.


Chapter 1 is about the report, i.e. the purpose, scope, methodology and scheme of
the report.
Chapter 2 is about the introduction of the parent company i.e. Coca-Cola
international.
Chapter 3 is about the Marketing review of the company i.e. MAKK Beverages,
Pvt. Ltd.
Chapter 4 is about the production and the Accounting Department of MAKK
Beverages Pvt. Ltd.
Chapter 5 Critical Analysis of MAKK Beverages.
Chapter 6 Conclusion and Recommendations of MAKK Beverages Pvt. Ltd.
Chapter 7 The Action/Implementation Plan.
Questionnaire are given in chapter 7.

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CHAPTER – 2

INTRODUCTION OF COCA-COLA
INTERNATIONAL

2.1 Brief History

The Coca-Cola Company is a multinational company. The Coca-Cola company is


rich with history since 1886. The Coca-Cola Company has been working to
refresh people every where through their beverages.

2.2 Events in Chronological Order in 1886

Dr. Jhan Stith Pemberten first introduced Coca-Cola in Atlanta, Georgia. The
Pharmacist prepared a caramel-colored syrup in a three Iegged bross kettle in his
backyard. He first distribute Coca-Cola by carrying it in a Jug down the street to
Jacobs Parmacy for five cents. Consumer can enjoy a glass of Coca-Cola at the
Soda fountain. This year sales of Coca-Cola average nine drinks per day per
customer.
In 1891, Atlanta enterpreneur Asa G. Candler acquires complete ownership of the
Coca-Cola business for $2300 with in four years his merchandising flair helps
expand consumption of Coca-Cola to every part of the nation (USA).
In 1893, the trade mark “Cola-Cola” name and Script are registered with the US
patent and trade mark office. Dr. Pemberton partner and book keeper frank
Robinson suggested the name and penned Coca-Cola in the unique flowing script
that is famous today. Mr. Robinson thought the two C’s would look well in
Advertising.
In 1894: Coca-Cola began as a fountain product but candy merchant Joseph A.
Biedenharn of Mississippi was looking for a way to serve this refreshing beverage
at Picnics. He begins offering bottled Coca-Cola using syrup shipped from
Atlanta during this especially busy summer. Coke’s rapid world wide expansion

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has resulted in over 65 beverage trade marks world wide and sales in 155
countries.
Its operation were divide into three different product categories. Soft drink,
entertainment and food.

2.3 Coca-Cola World wide

Coca-Cola system has more than 16 million customer around the world that sell
or serve its product directly to consumer and there are nearly six billion people in
the world who are potential consumer of Coca-Cola Company product. The
Coke’s success is achieve when it place right product in the right market at the
right time.
In case of India Coca-Cola first negotiated a contingent joint venture arrangement
with two Indian entities. Which it felt could case the negotiation process. Join
venture is a means of engaging in international business in which a company
share management with one or more collaborating foreign firms. It is a form of
merger or partnership of two or more participant companies which have joined
forces for marketing; finance or managerial reason or to protect it self from host
countries environment.
The top management of Coca-Cola international planned to derive much profit
from the foreign market in the coming year.
Cola-Cola Pakistan was a part of the West Asian area of Coca-Cola international
the west Asian area comprised four countries.
1. Pakistan
2. Bangladesh
3. Sri Lanka
4. Afghanistan

2.4 Coca-Cola in Pakistan

The Coca-Cola Company has around nine franchised manufacturing in different


cities of Pakistan. Namely Lahore, Karachi, Faisalabad, Haiderabad, Rahimyar
Khan, Gujranwala and Sialkot, Rawalpindi and Peshawar.

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The Coca-Cola head office is in Lahore. It is the main branch of Coca-Cola


company. In N.W.F.P. the Coca-Cola company MAKK beverages Pvt. Ltd. is
situated at Charsadda Road near in Peshawar.
The MAKK (Muhammad Aslam Khan Khattak) is responsible for the production
and distribution of Coca-Cola product: its has its own sales depot. Where they
store their product of Coca-Cola, Fanta and Sprite which is then provided to
shopkeepers and whole seller. The Coca-Cola company has its own well
developed transportation system.
For advertisement MAKK gets help from the Expert corporation on national basis
while the advertisement on local basis is done by MAKK beverages itself.
For production it has its own plant. The staff provided for production are well
qualified and experts in their own field. For the preparation of Co2 gas it has its
own plant. This plant fulfills all requirement of the company it sold out side the
market and thus the company gets some revenue by this means. The crown corks
are prepared in its own plant. But the raw material are imported from Japan.
It has it own well develop packing system where the product are packed and
distribute through out N.W.F.P.
In initial stage when Coke started its operation it had no competitor. But now it
has a very tough competition with its competitors Pepsi. But the question here
arise why Coca-Cola has lost it market share as compared with that Pepsi?
The main reason for that is the lack of mass advertisements. Because through
advertising one can gain market share through consumer awareness. Coca Cola
had always relied on the Secret formula for its promotion and feared an
expropriation once the new trade mark become accepted.

2.5 History of Coca-Cola’s Promotional Campaigns

In the year 1902, Coca-Cola firm advertised its products in “Minseys”. In 1904 it
hired Massengale Agency to create its image and to convince people to buy its
product. This advertising agency worked for news papers and magazines, but in
terms of media, it concentrated more on street cars and bill boards. There was one
major problem with this type of advertising, the slogan were very long. In order to

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solve this problem, Coca-Cola hired W.C.D. Arcy Agency. Both the agencies
worked together to produce effective advertisements.
In 1908, D. Arcy and fellow salesman Sam Dobb’s made the world largest 32 feet
high out –door sign. This billboard was erected on the main line of Pennsylvania
Railroad between Philadelphia and New York. By that time Coca-Cola was
spending $761,981.35 on advertising. Meanwhile PEPSI had started to promote
its product.
Coca-Cola faced a problem as people started calling it “Coke”. The company did
not want their product to link with the drug Cocaine, which had the same
nickname “Coke”. Therefore, they concentrated their efforts to promote their
product as Coca-Cola and not as Coke. During the world War-I the overall sales
of Beverages industry declined. At the end of the war, Coca-Cola adopted a new
marketing strategy by targeting young people in their promotions; and erected
billboards on the most heavily traveled highways. Meanwhile PEPSI was trying to
overcome its losses. The company was brought by a Wall Street man named Roy
Megorgel. He acquired the service of Edward Guth, a business man who owned a
chain of candy stores throughout the country.
He replaced Coca-Cola with PEPSI, in his stores but in vain. They move failed to
increase its sale. As a result, both conducted a successful experiment. He
introduced a ten-ounce bottle. With the advancement of technology, the Coca-
Cola company used different mediums to promote its products.
Coca-Coal used movie stars in its advertisements. By the late thirties, Coca-Cola
was spending 55 million dollars on all types of advertisements annually. The
strong marketing strategy of Coca-Cola enabled it to hold the market. Even during
the World War-II, Coca-Cola president matched every person to get a Coca-Cola
bottle and he succeeded in it. Thus the Coca-Cola followed the troops and by the
end of the war, it had a network of products plants established in most parts of the
world. Moreover, Coca-Cola decided to use coke as the brand named a sit was
more popular among the people by this name. The war resulted in inflation, and
there was shortage of sugar which resulted in sugar rationing. This enabled PEPSI

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Co. to offer their beverages at a lower prices. As a result of low prices PEPSI
image was adversely affected, and it lost many customers. At this moment, PEPSI
took a tough task to improve its image. So during 1950’s PEPSI, launched a new
advertising campaign.
They showed that PEPSI is a brand of the young generation. Moreover, they
offered a 26 ounce bottle. In order to compete with PEPSI, Coca-Cola produced
ads showing young people using its product in prestigious locations, with style. In
short, they glamorized their product. They also replaced the painting of their
advertisements with colored photographs.
In 1955 the Company hired a more efficient and prestigious advertising agency-
McCann Erickson. They presented the Coca-Cola bottles with colored paintings
of different food items. This produced a very attractive and appealing image of
the products. This cost US $250,000.
In 1960’s the “Taste Wars” began. A “blind test” was conduced which proved that
people preferred PEPSI over Coke, because they liked its taste. During 1980’s
television emerged as a primary medium for advertisements. Coca-Cola started
celebrity advertising, for example they depicted Michael Jachson, Fred Savage,
Ray chasles, Madonna etc: their primary objective was to promote Coca-Cola,
through entertainment. The slogan of Coca-Cola was “Coke is it” and that of
PEPSI was “The choice of the new generation”.
In 1985, Coca-Cola revealed that it was changing the formula of Coca-Cola. It
was considered to the company’s worst marketing blunder. They failed to realize
the historical significant of their product. PEPSI made full use of the situation and
claimed that Coca-Cola is accepting defeat in the Cola Wars. Coca-Cola sales
started to decline. In order to handle the situation, the Coca-Cola Company
announced that “old coke” Coca Cola classic, will also be available in the market
along with the new Coke. The reason of changing the formula was that the result
of blind testing research performed by the Coca-Cola Company showed, that
Pepsi’s taste was preferred over coke’s.

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By 1989 Coca-Cola spending more than $140 millions, and PEPSI was spending
more than $151 millions on advertising. By 1990, Coca-Cola expanded
throughout the world and 60 percent of its 8.6 billion in soda sales took place in
170 countries outside the U.S.A. But Coca-Cola in the past few months had lost
market share in Russian and Venezuela. In U.S.A., Coca-Cola, according to
Maxwell Consumer’s Report has a market share lead of 42 percent to 31 percent
over Pepsi.

2.6 The Coca-Cola Mission

From its heritage to its mission to the people who bring Coca-Cola products to
thirsty consumers, the Coca-Cola company is a part of lives every where.
Coca-Cola’s mission is to maximize stake-holder value over time, and in order to
achieve this mission it creates value for all the constituents it serves, including its
consumers, customers, bottles and communities. The Coca-Cola company creates
value by executing a comprehensive business strategy guided by six key beliefs.
i. Consumer demand drives every thing it does.
ii. Brand Coca-Cola is the core of its business.
iii. It will strive to provide consumers a broad selection of non-alcoholic,
ready-to-drink beverages they want to drink, throughout the day.
iv. Coca-Cola will be the best marketers in the world.
v. Coca-Cola thinks and acts locally.
vi. Coca-Cola will lead as a model corporate citizen.
The ultimate of objectives of its business strategy are to increase volume, expand
its market-share world-wide ready-to-drink beverages sales, maximize a long term
cash flow, and create economic-value-added by improving economic profit.
The Coca-Cola system has more than 16 million customers around the world that
sell or serve its products directly to consumers. Its keen focus on enhancing value
for these customers and helping them grow their beverages business. It strives to
understand each customer’s business and needs, whether that customers is a
sophisticated retailer in a developed market or a kiosk owner in an emerging
market.

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There are nearly six billion people in the world who are potential consumers of
Coca-Cola Company products.
Ultimately, Coke’s success in achieving its mission depends on its ability to
satisfy more of their consumers, demands for beverages. Coke’s Company
achieve this when it place the right product in the right markets at the right time.

2.7 Profile

Coca-Cola Company is the world’s leading manufacturer, marketer, and


distributor of non alcoholic beverage concentrates and syrups, with world Head
Quarters in Altanta. Georgia. The Company and its subsidiaries employ nearly
31,000 people around the world, for preparation of syrups, concentrates and
beverage bases for Coca-Cola, the company’s flagship brand, and over 230 other
companies soft drink brands are manufactured and sold by the Coca-Cola
company and its subsidiaries in nearly 200 countries around the world. But
entering into contract with the Coca-Cola parent Company or its local
subsidiaries, local businesses are authorized to bottle and sell company’s products
within certain territorial boundaries, and under conditions that ensure the highest
standards of quality and uniformity.
The company stock, with ticker symbol KO, is listed and traded in the U.S on the
New York stock exchange. Common stock also is traded on the Boston,
Cincinnati, Chicago, Pacific and Philadelphia exchanges. The company’s
operating management structure consists of five geographic groups plus the
Minute Maid Company. Minute Maid Company, the Company’s juice business in
Houston, Taxes, the world’s leading marketer of juice and juice drinks. Its
products include minute maid premium orange juice with calcium, Minute Maid
Premium Lemonade Iced Tea, minute maid coolers, hi-C Blast and Five Alive.
The Coca-Cola Company has a commitment, more than a century old, to social
responsibility through philanthropy and good citizenship. The company’s
reputation for good citizenship results from charitable donations, employee
volunteerism, technical assistance and other demonstrations of support in
thousands of communities world wide.

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The Coca-Cola Company continues to sponsor the world’s most exciting sports
events, including world cup soccer, the national football league, national
basketball.

2.8 Bottling System

One of the Coca-Cola company’s greatest strengths lies in its ability to conduct
business on a global scale while maintaining a local approach. At the heart of this
approach is the bottling system.
Coca-Cola company has business relationships with three types of bottlers.
1. Independently owned bottlers, in which it has no ownership interest.
2. Bottlers in which it has invested and have a non-controlling ownership
interest; and
3. Organizations in which it has invested and has a controlling ownership
interest.
During 1999, independently owned bottling operations produced and
distributed approximately 27% of its world wide unit case volume.
Bottlers in which Coke’s owned a non controlling ownership interest
produced and distributed approximately 58% of its 1999 world wide unit
case value. Controlling bottling and fountain operations, otherwise known
as “Fresh Coke” produced and distributed approximately 15%.
Coca-Cola Company view certain bottling operations in which they have a non-
controlling ownership interest as the key or anchor bottlers due to their level of
responsibility and performance. The strong commitment of both key and anchor
bottlers to their own profitable volume helps us meet strategic goals and furthers
the interests of world production, distribution and marketing systems.
These bottlers tend to be large and geographically diverse with strong financial
resources for long term investment and strong management resources.
The bottlers gives Coca-Cola strategic business partners on every major continent.

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CHAPTER – 3

MARKETING REVIEW

3.1 Product

Marketing Strategies

Coca-Cola USA has developed suitable changes it hopes will catch the eye of
supermarket shopper.
Discovered during consumer tests on the west coast the new red, white and blue
design on the new Coke could turn up in grocery store and vending machines
across the country in early 1988. The New colour scheme for the (reformulated
Coke) which has been losing market share since it was introduced in 1985 was
designed to further differentiate the new formula from Coca-Cola classic.
At the same time Coca-Cola is testing graphic alternations on its six Coke brands.
The testing has been conducted in Fort Wayne, Indian and Montgomery,
Alabama. If consumers like it, the new cans has start appearing in 1989. Most
consumers has know some thing is different the labels, just they would not be able
to put their minds to it. Most significantly the word Coke is bigger and bolder and
it has been forward slightly italicized in a new look the company believed is more
in Coke’s owned a non controlling ownership interest produced and distributed
approximately 58% of its 1999 world wide unit case value. Controlling bottling
and fountain operations, otherwise known as “Fresh Coke” produced and
distributed approximately 15%. Coca-Cola Company view certain bottling
operations in which they have a non controlling ownership interest as the key or
anchor bottles due to their level of responsibility and performance. The strong
commitment of both key and anchor bottles to their own profitable volume growth
helps us meet strategic goals and furthers the interests of world wide production,
distribution and marketing systems.

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These bottles give Coca-Cola strategic business partners on every major


continents of the world.
The company feels the new labels will give the product an infirmity that has been
lost through aggressive brand extensions and reinforce the red color of Coca-Cola
famous trademark.
Some 30000-man hours were spent in the redesign effort and more than 19300
initial drafted before management will reduce these colors to a manageable 100 or
so. The final design will be presented to juries of consumers before the new
design package was completed.
This is soft drink and available in different flavors i.e. cola orange. Lemon and
lime. About the product the company says that they are open to every one i.e. all
the people whether they belong to upper class or lower class.

Quality Control

The quality of the product is checked by the corporation in various areas to


maintain the quality of the product, quality control team from the corporation
(USA) gets sample bottles from different areas. They test these bottle in
laboratories and send the report to the related company in Pakistan. The company
personally does not know about the team’s visit. The quality control teams have
the list of the name of the plant according to their result of how much they
maintain international quality. The corporation takes action against the company,
which are found defaulters. They also visit different plants and if found any defect
they will stop the plant and warn them to remove the defect.

New Product of Coca-Cola and its Marketing Failure

This Coca-Cola Company (MAKK Beverage) was established in 1964 and there
are the three brands of the Coca-Cola, which are manufactured in MAKK
Beverages. They are also looking for new ideas and try to develop new product.
MAKK Beverages introduced a litchi flavor into the market but it failed. The
reason were poor advertising campaign. Especially from May to August the

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company be able to not provide the new brand to the consumers with the help of
existing plant. Usually there are many reasons for the failure of the products.
Which is according to the marketing and factory manager are as under;
Inadequate market analysis
I. Product deficiencies.
II. Lack of effective marketing efforts.
III. Higher cost than anticipated
IV. Poor timing of introduction
V. Technical and production problems.

Marketing Segmentation

The market segmentation of the Coca-Cola is heterogeneous rather than


homogeneous. They segment the market for their different product sizes. The size
of their product are 250 ml 175 ml, 300 ml, 1000 ml, 1500 ml. These are available
ill different glass bottles, plastic bottles and cans to send different sizes and
different packaging to different markets, where the demand for that size package
is in large scale. Coca-Cola also sells it products in the disposable glasses.

Branding and Trade Mark

In developing a marketing strategy for individual product, the seller has to


confront the issue of branding.
Brand is a name, term, symbol, or design or a combination of them, which is
intended to identify the goods or services of one seller or group of seller and to
differentiate them from those of competitors.
The trade mark of Coca-Cola is Coke around the world. The most popular brand
of Coca-Cola is also available in Pakistan. These are Coca-Cola, Fanta, Sprite,
eanc brand has its own unique flavors. For example, the old and young people like
mostly Coca-Cola and Sprite while children buy Fanta. Coca-Cola has got a
unique market strategy it is for all ages of people every where in Pakistan.

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Packaging

Packaging can be defined as all the activities involved in designing and producing
the container or wrapper for the product.

Purpose of Packaging

a. To protect the product from tampering on its way to the consumer: For
example if Coca-Coal has tight packaging that no one can mix any thing
with its product, this will be certainly good for the company’s good will.
b. To implement consumer’s marketing programme. If a product has no
packaging the consumer will not be able to identify the product of a
company and hence will not be able to differentiate the products of
different companies.
c. Packaging is used to write the brand name on it.
d. To attract customers Sometimes a company change its packaging, the
reason is to attract the attention of the customers, such as Coca-Cola
introduced, family pack, one liter bottle.
e. Provide protection to product Coca-Cola introduced plastic bottle, which
is purchased by the consumer and does not need to be returned.
f. To implement company marketing programme Retailers want good
packaging to attract customers so the company gives different sizes to
implement the company-marketing programme:
The importance of packaging is so great that it is now considered as the most
valuable part for the promotion of products.
Coca-Cola also has different alternative packaging. These packages are of plastic
1.50 liter, bottle glass 1 liter bottle, 300 ml, and cans of 250 ml. Glass bottle
Coca-Cola provide these different packages to different areas. Some people like
cans whereas other want to take it home for the whole family. So for people Coca-
Cola provides a plastic bottle of liter, 1 liter. Improved packaging can be an
effective way to attract new customers. Coca-Cola always follow the principle
and make changes in their packaging.

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According to corporation, packaging is changed and change in packaging will be


followed through out the world. The most profitable packaging for Coca-Cola is
return bottle sale. About 70% to 75% of the total sale of return bottles.

3.2 Sales Promotion

Sales promotion is a demand stimulating device designed to supplement


advertising and Facilitate personal selling.
Examples of sales promotion devices are coupons, premiums in store-displays,
trade shows, samples, in store demonstration and contests.
In the case of Coca-Coin sales promotion strategies are divided into three primary
types.
I. Coca-Cola end user or consumers
II. Coca-Cola resellers
III. Coca-Coal sales force
The first two have direct implications for advertising and will be discussed
in some detail. Sales promotion are simply activities directed at the firms sales
people to motivate them to strive to increase their sale levels.

3.3 Consumers Sales Promotion

In case of Coca-Cola consumers sales promotion are directed at the ultimate user
of the good or service. They are intended to “presale” Consumers so that when
consumer go to a retail. Store and express their willingness to purchase Coke’s
products.
Most often sales promotion are the responsibility of the product manager along
with the advertising department, or sale promotion agency or advertising agency.
The primary strengths of consumer sales promotion are their variety and
flexibility. There are a large number of techniques that can be combined to meet
almost any objective of Coca-Cola sales promotion.

A) Price Deals

A temporary reduction in the price of a product is called a price deal.

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Price deals are commonly used to encourage trial of a new product, to persuade
existing users to buy more or a different limes, or to convince new users to try an
established product.
The Coca-Cola company has a very well defined plan for their price deal with
their dealers. For example, any one of the retailers who is the mass customer of
the Coke’s products on every date whose price is 170, 5-10 rupees are discounted
as price deal.

B) Coupon

Legal certificates offered by the Coca-Cola Company and retailers that grant
specific savings on selected products when presented for redemption at the point
of purchase. The coupons Coca-Cola company sponsored can be redeemed at any
outlet distributing the product.
Retail, sponsored coupons can only be redeemed at the specific retail outlet. The
primary advantage of the coupons is that it allows the advertiser to lower prices
without relying on cooperation from the retailers. In the initial days the company
used coupon system in a large scale. The coupon is an original paper on which the
name of the consumer and full address and the retailer is written. Store from
whom to the copes products are purchased is issued. There is one Rupee free for
every coupon in order to capture the “Coke’s market”.

C) Contest and Sweepstakes

Contests requires that the participants exhibit some sort of skills or ability in order
to win, while sweepstakes require that participants submit their names to be
included. A good contest or sweepstakes generates a high degree of consumers
involvement which can review sales, so the retailers / consumers submit their
names and get freezers, shells, racks etc.

D) Refunds and Rebates

Refunds are the offered by the marketer to return a certain amount of money to
the consumer who purchases the product. The refund system of Coca-Cola now
increasing in a very rapid ratio as compared to its competitor (PEPSI). This refund

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system is better than that of the coupon system, because it stimulates the sale
without the high cost and waste associated with coupons.

E) Premium Offers

A premium is a tangible reward, received for performing a particular act usually


purchasing a product or visiting the point of purchase. The Coca-Cola Company
has a very well planned programme of premiums for their consumers.
The Coca-Cola offers pencils, ball points, umbrellas, bats, cricket balls, caps,
radio sets, key chains and wall clocks to their consumers. All these tangible
rewards that are offered by the Coca-Cola Company, are signed by the words
Coca-Cola or the company logo.

F) Continuity Programs

This is a program that requires the consumer to continue purchasing the product
or service in order to receive a reward. At this stage Coca-Coal plays a very good
and cooperative role. The company gives free sampling on monthly basis to their
mass retailers 5-10 crates free. The Coca-Cola company gives freezers to their
mass retailers in order to keep the store loyal and continue to market the coke’s
products.

G) Consumer Sampling

Allowing the consumer to experience the product or service free of charge or for a
small fee is called sampling. It is very effective strategy for introducing a new or
modified product or for dislodging an entrenched market leader.
The MAKK beverages Pvt. Ltd. in stages of the emergence of the product into
market it gives free bottles to the consumers for product taste. This process /
arrangement is located particularly at Peshawar Cantt. Or at Badcha Khan
Chowke, Peshawar.

H) Sponsorships

Sponsorships include different activities, including sports, entertainment tours and


attractions festivals and annual events. Many of these will be the responsibility of

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public relation manager. For example, Olympic games, cricket, cricket word up is
sponsored by Coca-Cola Company. The Coca-Cola Company spends 40 percent
of its budget which is 3.25 billion dollar on sponsorship program.

3.4 Resellers (Trade) Sales Promotion

Resellers, or intermediaries are the retailers and wholesalers who distribute the
products made by manufactures to other shelf and ultimate users.
The Coca-Cola reseller’s sales promotions are intended to accomplish four overall
goals.
1. Stimulate in-store merchandising or other trade support, picture pricing.
Superiors store location and / or shell space.
2. Manipulate levels of inventory held by wholesalers and retailers.
3. Expand product (Coca-Cola, FANTA, and Sprite) distribution to new
areas of the province or new class of trade.
4. Create a high level of excitement about the product among those
responsible for its sale.
The ultimate gauge of a successful Coca-Cola reseller-promotion is to see
whether sale increase among ultimate users or not.
A great number of promotional devices that are designed to motivate resellers to
engage in certain sales activities are available to the manufacturer. The major one
are discussed in the following paragraphs.

A) Point of Purchase Display (POP)

A display designed by the manufacturer and could be distributed to retailers in


order to promote a particular brand or line of products.
Point of purchase is the only advertising that occurs when all the elements of the
sale, the consumer, the money, and the products come together at the same time.
POP can include special racks, display customer banners, signs price cards
mechanical product dispensers.
In case of Coca-Cola, the company distribute freezers, wooden shells, plastic
shells in order to promote the sale for consumer products.

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These freezer have a price of 17,000 while the Coke Company Charges for their
retailer price Rs. 8500 i.e. fifty percent discount is given.

B) Trade Incentives

Trade incentives for accomplishing certain tasks are offered to the resellers by the
marketers.
The only requirement is that the resellers demonstrates in some way that Cokes
product were displayed. Usually the Coca-Cola company offers free crates of their
product to the retailers or they offer a substantial prize of cash or merchandise to
retailer who order a certain amount of Cokes, Fanta or Sprite.
However, in the case of trade incentive programs of Coca-Cola, two aspects or
subparts of trade incentives is worth mentioning here.

C) Push Moneys

A monetary bonus paid over a period of time. In this case from Coca-Cola
company side a specific target is assigned to the sales person, when achieved the
company gives his a bonus in cash form or in the initial stage the company
arranged a foreign trip programme for the sales persons.

Dealer Loader

This is a premium given to a retailer by a manufacturer for buying a certain


quantity of products. For example, the company donates stands in bottle form
made from plastic or iron, but durable.

D) Trade Deals

It is an arrangement in which the retailer agrees to give the manufacturer’s


products a special promotional efforts in return for product discounts, in the form
goods or cash.
The Coca-Cola company has arranged a programme that any one of its retailer
who achieves a specific target of sale will be given special discount or 10-18
crates free of cost.

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3.5 Price and Pricing Strategy

Price is the amount of money and / or other items with utility needed to acquire a
product. Price is a basic regulator of the economic system because it influences
the allocation of factors of production (Labor, Land, Capital).
To reduce the risk of government intervention, Coca-Cola establish prices in a
manner and at a level, that consumers and government officials consider socially
responsible.
As the image of the quality of Coca-Cola is well developed in the consumer mind
so therefore the company determine price on the competitive basis.
Price affects a firm’s competitive position and its market share. As a result, price
has a considerable bearing on a company’s revenues and net profits. Through
pikes money comes to an organization. The Coca-Cola company does not want to
increase price and increase sales volume with the same price. Decisions regarding
the prices are influenced by the price control committee, D.C. Peshawar, Director
of Industries etc.

3.6 Pricing Objectives

Every marketing activity including pricing should be directed towards a goal. To


be useful, the pricing objective must be consist with the overall goals set by the
firms and the goals of marketing.
To adopt a primary pricing goal of maintaining the Coca-Cola market share or of
stabilizing prices, we will discuss the following pricing objectives.

Profit-oriented

⇒ To achieve a target return.


⇒ To maximize profits.

Sales oriented

⇒ To increase sales volume.


⇒ To maximize or maintain market share.

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Status quo-oriented

⇒ To stabilize prices.
⇒ To meet competition.

A. Profit-oriented goals of coca-cola

The Coca-Cola Company’s goal, may be set for the short or long term, it always
select one of two-profit oriented goals for its pricing policy.

I. Maximize profits

A profit maximization goal is likely to be for more beneficial to Coca-Cola


Company it is pursued over the long term.
For example, when Coca-Cola Company wants to enter a new territory where the
market share of its competitor is at the peak, it has adopted the policy that it
allows discounts in the shape of now prices for their products.
If the price of 1crate is Rs. 170 it keeps its price by 165+160 rupees per crate.

II. Achieving a target return

The Coca-Cola company may price to achieve a target return-a special percentage
return on its sales or on its investment. The Coca-Cola retailers and whole sellers
use a target return on sales as a pricing objectives for short period (4-6 months) or
a fashion season.

B. Sales-oriented goals of coca-cola

I. Increase Sales Volume

This pricing goal of increasing sales volume is typically adopted to achieve rapid
growth or to discourage other competitor from entering a market.
This goal is usually stated as a percentage increase in sales volume over some
period, say I year or 3 years.
In this case Coca-Cola Company seek higher sales volume by discounting to their
customers or setting some schemes.

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According to marketing manager MAAK Beverages and Mineral Water Pvt. Ltd.
usually use this pricing strategy at the end of season when their sales of down.

II. Maintain or increase market share

The Coca-Cola Company emphasis to increase their market share. The market
share of Coca-Cola is 40 percent. While the market share of its competitors
(PEPSI) is 60% market share is very low for the operation of an enterprise.
In order to increase market share for Coca-Cola, the company has development
wonders of the world scheme.
Similarly they give freezers to their retailers. The price Rs. 17,000/- per freezer
they receive cash of Rs. 8500 per freezers.
But maintain the market share of their competitor (PEPSI) now a days PEPSI
gives freezers free of cost to their retailers.

C. Status quo goals

Stabilizing prices and meeting competition are least aggressive of all pricing
goals. Price stabilization is often the goal of a company, where to product is
highly standardized.
All these are concerned to maintain the firms current situation-that is the status
quo, but in the case of Coca-Cola the market share is 40% and wants to improve
their current situation.

3.7 Distribution Channels

A distribution channel consists of the set of people and firms involved in the
transfer of tile to a product as the product moves from producer to ultimate
customer.
A channel of distribution always include both the producer and final consumer for
the product in its present form as well as any middleman such as retailers and
whole sellers.
It should be noted that five channels are widely used in marketing tangible
products to ultimate consumers.

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1. Producer  Consumer
2. Producer  retailer  consumers
3. Producer  wholesaler  retailer  consumer
4. Producer  agent  retailer  consumer
5. Producer  agent  wholesaler retailer consumers.
In the case of MAKK BEVERAGES (Pvt) Ltd. this 3rd channel is used.
The Coca-Cola (MKKK BEVERAGES) have their won sales Deptt, for example
on university road at Tehkal Bala, Hastnagari, Khyber Bazar etc in these stores
they have their wholesalers, the company provide them a bulk stock which they
then distribute to different retailers.
In this sales Deptt. There is also a well developed program for sales in different
localities. For each territory the responsible person of each sales deptt. have kept
vehicles. The driver is used as a sale man, he has a very close link with the
retailers. So from these retailers the products are then distributed to the ultimate
consumers.
Sometime the company uses this 2nd channel too. For example some retailers
come directly to the factory, where they receive Coca-Cola products in bulk and
finely distribute these products to ultimate consumers.

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3.8 The Role of Middleman

SALES SPECIALIST FOR PURCHASE AGENT FOR


PRODUCTS BUYES
Provides market information Anticipates wants
Interpret consumer wants. Subdivide large quantities of
Promotes producer product. prelates
Create assortment. Stores products
Store products Transports products
Negotiate with customers. Create assortment
Middle Man
Provide financing Provide financing
Owns products Products readily available
Shares risks. Guarantee products
Shares risks

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2.5 The Coca-Cola Realm

From Production to the Market Place

People grab a movement of simple refreshment from Coca-Cola products millions


of times every day. So it is as routine as drawing a breath of fresh air.
It’s so routine people may take for granted always having the quality products
they desire when-and where they want them.
Coca-Cola company the world’s largest bottler of liquid nonalcoholic
refreshment. It produces, market and distributes Coca-Cola products at the local
level through mutually profitable partnerships with customers such as
supermarkets, convenience stores, retail out lets schools and business of all kinds.
Throughout the company two primary goals unparalleled product quality and
superior market place execution – helps to operate in diverse markets with
dramatically different consumer preferences and market conditions.
Because of geographic diversity and the local nature of its business it operate in
markets with dramatically different consumer preferences economics conditions,
products delivery systems, retail trade customers and market place opportunity.
Yet, in spite of this diversity, Coca-Cola operations are bound together by two
key goals creating the highest quality products possible, and supervisor market
place execution.
Simply defined market place execution means making Coca-Cola products
available everywhere a consumer may want one.
It dedicated people offering hands-one, face to face service to meet superior
market place execution demands.
It works shoulder to shoulder with customers to create the most advantageous
sales initiative for their business and through local, market-based programs.
To better meet customer’s need, Coca-Cola provides front line personnel with
training and tools necessary to deal with an ever-changing market place.

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These tools supplement the greatest strength of employees an unwavering


commitment to superior market place execution. It help employees work
diligently every day to meet the needs of each individual customers.
Creating demand for Coca-Cola products through superior market place
execution, MAKK BEVERAGES (Pvt) Ltd. manages the process of getting the
product to the customer. The work begins in the early morning hours as MAKK
BEVERAGES ware house employees assemble order from the day before, then
place the products on delivery trucks and vehicles for distribution to customers.
In MAKK BEVERAGES, where delivery systems to customers vary ware house
employee’s load larger tucks for bulk delivery to customers ware houses or load
tucks for local delivery.
Their employees maintain a round the cloak operation. They staff production lines
to meet consumer demand pull order from inventory and in direct delivery areas,
load cases onto tucks for delivery to customers the next day.
This process is essential in meeting goals for quality and market place execution.
Often by 6 A:M, sales managers, accounts representatives, merchandisers and
drivers across the company are meeting at sales centers to plan the day’s efforts
and discuss sales opportunities.
Local delivery drivers will check their trucks and vehicles, making sure loads are
correct.
They then head to market using routes created the day before by dispatchers at
each sales centers routinely delivering 400 or more cases of products each day.
Once the products each day. Once the products are delivered to the stores, the
accounts representatives and merchandisers take the lead.
Merchandiser work in large stores making sure our products are available and
displayed properly.
Account representatives delivered marketing materials, organize their cell lists
handle paper work, and assists customers. Accounts representatives will call on
15 or more customer each day working with those customers to help them grow

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their business. As they visit customers they send in new orders electronically or
by phone, keeping the cycle of sales, production, and delivery moving forward.
Production lines run 20 hours a day. Back at the plant production lines keep
rolling bottling the products needed to keep the pipeline full of Coca-Cola
products.
The constant production helps assure costs down by making maximum utilization
of facilities.
Managers and administrative employees work to provide front-line employees the
tools they need.
For example they create marketing programs and strategies to help sales plan the
requirements develop employees benefit programs and provide overall local and
company wide leadership.
MAKK BEVERAGE (Pvt) Ltd. has its own 3 trucks five Mazdas, 8 Suzuki, 6
Dahntsun and with the help of these vehicles they cover different channels of
distribution.
Other drivers use tractor trailers to deliver products in bulk, while in the Punjab
side drivers use side loaded trucks.
Coca-Cola (MAKK BEVERAGE) concentrates on having the right products for
its consumers when they need it and making sure products are the finest quality
possible.

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Organizational Chart of Peshawar

Chair Person

G.M.

Marketing Manager Accounting Deptt. Shipping Deptt.

Factory Manager

Marketing Manager Production Manager

Quality Mechanical
Control Engineer

Sales Manager Sales Manager Shipping Manager


(O/S) (Base)

Sales Officer Sales Officer


Shipping Officer Shipping
Sales Supervisor Sales Supervisor
Personnel Manager
Sales Man Sales Man

Distribution Officer

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3.10 Organizational Chart of Coca-Cola

The Coca-Cola Company (MAKK beverage & Mineral water Pvt. Ltd.) is situated
at a suitable geographic location in the district Peshawar at Charsadda Road. The
second factory located at Rawalpindi (Shahi Beverages Pvt. Ltd) also belong to
Muhammad Aslam Khan Khattak.
The organizational chart of both factories are the same while (MAKK Pvt. Ltd.) is
discussed below.
The owner of this Coca-Cola factory is Muhammad Aslam Khan Khattak.
The general managers was initially an audit officer who was responsible for audit
of MAKK Beverage Pvt. Ltd. Then he worked here as G.M.
The G.M has responsibility to control three main department i.e. sales department
accounting department and shipping department.
The factory manager is a senior person of this organization.
As the marketing manager has left this organization, so temporary responsibility
of marketing has been taken by the factory manager.
This marketing job is very tough, he is responsible to control either left side right
side, back side and front side.
He will have to face his competitors especially with PEPSI.
He is responsible for the mass advertising of the Coca-Cola factory in NWFP.
All the sales manager daily give him report of their activity and sales programe.
The accounting department is also controlled by the G.M and the responsible
persons of the accounting department are Ghori Baba and Jamil Shaib.
Accounting department have the responsibility to keep the record of sales,
production, shipping and personnel. It keeps the record of the production on daily
basis.
It keeps record of all the stockiest.
It keeps records of payment and receipt, Debt and credit, record about the
payment of salaries of the employees.
The record of incentives they receive from factory side.

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The product manager is responsible for the manufacturing process. He is very


sensitive in production prepared. When the syrup is prepaid, there is a laboratory
where it is checked. If the report of laboratory give positive result be will
continue.
There, is also a quality control manager who control the quality. This quality
manger is M.Sc in Chemistry. He also works in Laboratory.
Then under the supervision of marketing manager two sales manger work.
One sale manager is out station sales manager and the 2nd is base sales Manager.
The marketing and the sale manager have a very closed link with each other.
Base sales manager of MAKK beverages is a very sharp Pvt. Ltd. Is he is a very
sharp and active person. As clear from his job assign to him (Base). He works in
Base i.e. in the locality of Peshawar.
This base Sale Manager have his our staff. They work according his instruction.
Noorilahi is his right hands, and helps Base unit manger.
All his staff works with in Peshawar.
The outstation Sales Manager job is Telephonic. He is a very responsible person
of this organization. The out Station Sales Staff works in outstations like
KOHAT, BANNU, CHARSADDA. Outstation manager have divided, his each
sales officer in each station. They daily present him the report of each locality.
They discuss with o/s manager about the demand, supply and over stock of
Limited, Stock.
As discussed above that sales manager have a very close link with that of the
marketing manager. So when some complaint is reviewed, or there is some basic
need for advertising Coke’s product through Banners or boards or need of
painting he will give the report to the marketing manager if necessary the
outstation manager personally go there, and solve the problem immediately or the
assign this job to his sales assistant.

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3.11 Equal Employment Opportunity

The Coca-Cola company provides equal employment opportunities. The company


has an on going commitment to affirmative action and the creation of a work
place free of discrimination has assessment.
The company will recruit hire, train and promote individuals in all job titles with
out regard to race, color creed, religion, ancestry, national origin age.
The organization present them the mission of the company. Target are assigned to
them which they have to achieve. If target is not achieved, they take some
corrective action to help them.
All the employees that the company hires, are experts in their won field with good
manners well dressed smart sharp, active and are punctual.

3.12 Coca-Cola Wonders of the World Scheme

The worldwide leader in beverages, the Coca-Cola company has announced a


schemes named wonder of the world and other small schemes.
Under the wonders of the world scheme of Coca-Cola, a person or a loyal
consumer is required to collect 5 crown caps and win a wonderful trip.
This offer is valid for 250 ml, and 300 ml bottles of Coca-Cola, sprite and Fanta
till stocks last.
If a consumer has 5 crown caps on which the names of the countries like PARIS,
HOLLYWOOD, NEW YORK, SINGAPORE, & CAIRO have been written.
Then the consumer will win the prizes of the scheme and loyal consumer will visit
for these countries.
Under small schemes at the crown cap of 250 ml bottles, it’s written (Enjoy one
free 250 ml of Coca-Cola). It should be noted that this schemes is also for a very
short duration.
Under the Coca-Cola schemes (Wonders of the world) the 1st prize of Mohajir
Pakistani young man named SYED QALAM SHAH won.
This young man belong to Hayatabad.

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From MAKK VEVERAGE Pvt. Ltd. a check of two lacs (200,000) was presented
to him.
This check of Rs. 200,000/- was presented by the MAKK BEVERAGE general
Mangers.
On this occasions the General Manger addressed that all over the world 1 billion
of people drinks of quenched their thirst by drinking Coca-Cola Beverage daily.
The Coca-Cola export corporation district operation manger Shehzad Iqbal also
addressed, the occasion.

3.13 Environmental Policy for Cold Drink Equipment

As the world wide leader in the beverage industry, the Coca-Cola company has
long worked to make sure company cold drink equipment meets the highest
possible environmental standards.
For the past three years, a special company task force has been working to
identify energy saving opportunities and integrate the use to alternative
refrigerants and refrigeration systems.
In connection with this effort, the following policy for new cold drink equipment
purchased by the Coca-Cola.
• By the Athens Olympic Games in 2004, the company will no
longer purchased new cold drink equipment using hydrofluorocarbon
(HFCs) where cost efficient alternatives are commercially available.
This initiative applies both to refrigerant gases and insulation.
• Between now and 2004, the company will expand its innovative
research and development program to identify and field-test a variety
of promising alternative refrigerant technologies.
Supplies will be required to announce specific times schedules to use only HFC
free foam insulation and refrigeration in all new cold drink equipment by 2004.
In concert with the international Kyota Agreement on climate change. It required
company suppliers to develop, by the end of the decade, new equipment that is
40-50 percent more energy efficient than today’s equipment.

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Consistent with the leadership role taken on ozone-depleting CFCs in the 1990s.
The Coca-Cola company will continue to lead the system to use the most
environmentally responsible cold drink refrigeration technology available
intensifying company efforts to support research and innovation in this area.
Detailed communication with suppliers about expectations and schedules
management system.
The Coca-Cola Company has developed a comprehensive environment
management system.
The system is designed specifically for alignment with operation of the Coca-
Cola, business system and focus on environment issues directly related to
business.
Compliance, waste minimization, pollution prevention, continuous improvement,
and identification of cost savings are all hallmarks of the Coca-Cola
environmental management system (CCEMS)
At the core of the Coca-Cola environmental management system is a simple
overarching principle company conduct business in ways that protect and preserve
the environment.
The Coca-Cola Company conducts its operations in compliance with applicable
environmental laws and regulations. Even in the absence of governmental
regulation are operate in an environmentally responsible manner.

3.14 Environmental Training

The company identifies training needs and develops environmental training


programs so that employee understand their role in fulfilling environmental
policies, requirements and practices.

A. Corporate Training Programs

The company develops training programs to address system-wide environmental


topics and assist operations in implementing effective environmental training.

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B. Plant training programs

Plant management coordinates training programs to assist plant personal in


effectively implementing programs to meet all applicable requirements.

C. New employee orientation

New employees receive pertinent company environment information.


Environmental coordinators provide additional resources and training relevant to
the employees job responsibilities.

D. Professional development

Each individual with operational environmental responsibility regularly


participates encourages, seminars, meeting or other programs to continuously
improve his/her environmental knowledge and expertise.

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CHAPTER – 4

PRODUCTION DEPARTMENT

4.1 The Manufacturing Process

The Coca-Cola Company has its own well developed and well equipped
manufacturing department. The production manager is responsible for the
manufacturing process. Shipping is the initial process of manufacturing, in this
case empties, which is the factory floor terminology for an empty bottle, are put
into the initial action. These empties are picked up with the help of decaser which
are then forwarded through the conveyer in order to proceed further process.
In this case full concentration on inspections are given whether the empties are
oil, or some straw materials are not stacked on it when this inspection process in
complete washing process of empties are started.
There is a wash table which moves horizontally and vertically this wash table can
have 30 bottles at a time to wash, which are then shipped through the conveyer.
In this production department, we have observed five tanks from where these
empties can be forwarded for further procedures out of these five tanks tow to
them are of fresh water. In the first tank caustic soda (NaOH) is passed. The
temperature of the first tank remains from 450C to 550C. the purpose of the NaOH
is to remove dust from empties. In the 2nd tank where fresh water is present space
some chemical process.
In this case the temperature remains from 600C to 750C. here sodium phosphate,
sodium gluconate, and stabilon are used. Stabilon is a water softening (oxidation).
Caustic life increases and protect bottles from chemical reactions. In removes
certain types of germs from the empties.
Thus after functioning of these two tanks the remaining three tanks are taken into
concentration. Approximately the 2nd and 3rd tank perform the same function. It
cleans empties further and removes the remaining dust ad germs the temperature

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is reduced in the next two tanks and in the fourth tank under temperature of 400 to
500 bottles are washed.
Then in the last tank chlorine (Cl2 ) gas is passed which remove further germs and
thus the quality of the Coca-Cola remains stable. Jets remove dust and caustic
elements from bottles. Then inside and outside washers front check washed
bottles, which cleans bottles outside and inside. These tests are done in a
laboratory. Coca-Cola Company has it s own test laboratory, inside the production
department.
This laboratory is well lit, air conditioned and well equipped.
These tests are of Methlylene, blue phenaphy line. Also there is an empty light
inspector who removes dirty and defective bottles. There are five empty light
inspector who takes part in this process.
During the production process the damage of bottles may occur so the defective
bottles and the bottles which are broken during the production process are
removed.
When all these process are completed and the inspectors make sure that there is
no dust remains in the bottles. Then these bottles are tanker moved in front of a
filler where they are filled up with syrup.
But at this stage the carbon dioxide is required into the mix. But before mixing of
the carbon dioxide gas there is partially oxygen mixed in it. And the Co2 cannot
mix syrup in the presence of O2 gas. So for this purpose with the help of a polisher
decorator O2 is removed. Then with help of ammonia plate the temperature is
reduced further and further. So at a very low temperature Co2 is mixed in to it.
Co2 extends the shell like at the products. Co2 is every effective at low
temperature.
Now the syrup is ready to be put in bottles. The Coca-Cola syrup is filled in Coca-
Cola bottles, Fanta syrup in Fanta bottles and Sprite in Sprite bottles.
Now these are ready for distribution in the market.

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ACCOUNTING DEPARTMENT

4.2 Maintenance of Account

The system of accounts adopted here is called double entry book keeping there is
4 members staff in account section namely.

Staff Members

♦ Chief accountant
♦ Senior accountant
♦ Assistant accountant
♦ Store accountant

Chief Accountant

The chief accountant is responsible of account section. He maintains the general


ledger and sales to register. He is also responsible of submitting final
account/report to the management on monthly basis. He is the person who
conduct the audit. He looks after the sales tax affairs.

Senior Accountant

This person is responsible for bank transactions preparation of journals vouchers,


bank payment voucher, bank receipt voucher, maintenance of bank book, supplier
ledger and journal, is the responsibility of senior accountant.
Moreover he is liable to prepare and bank reconciliation statement supplier trail
balance at the end of the month and submit it to the chief accountant.

Assistant Accountant

Assistant accountant is responsible for all cash transactions. Customers ledge,


cash book and sales journal are the maintained by him preparation of cash
payment vouchers and cash receipt voucher also the responsibility of him.

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Store Accountant

Store accountant handles all store requisitions. Goods receipt note in word gate
passes outward gate passes. He maintains the store ledger.
♦ Fixed assets ledger
♦ Electric items ledger
♦ Raw ledger
His additional responsibilities is to conduct stock taking at the end to each month.

Books of Account

♦ General ledger
♦ Supplier ledger
♦ Customer ledger
♦ Stores ledger
♦ Journal
♦ Cash book
♦ Bank book
♦ Sales journal

Ledger (General)

The principal of account is ledger. It is ledger in which all transaction are


ultimately recorded in double entry form. The ledger is divided into two accounts
each being devoted solely to transactions with a particular personnel or of a
particular kind.
For short and long terms loans are obtained from different financial institution
like, MCB, ABL, NBP.
In this case short case terms period is for one year while long term period is from
3 to 10 years.
The rate of interest is 20% similarly all the transport building of MAKK
BEVERAGES & mineral waters (Pvt) Ltd. are pledged against the loan.

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It means that obtaining these loans from these financial institution all the land ,
building, transport are used as security or collateral, of the payment of the loans
and, interest on loan to these banks.

Journal

Formally the journal was the only book of prime entry, and every transaction of
what ever kind recorded in it before being post4d to the ledger in modern book
keeping the journal has been supplanted to large extent by the day book.
So that the use of the journal is now restricted to miscellaneous transactions and
adjustment for which no other book of prime entry is available.

The Bank Book

The bank contains all the transactions regarding banks. The bank book contains
more than one bank balances. Like cash book, it has two sides receipt and
payment side. Receipt side contains all the receipts in the bank. The voucher
prepared for this side is called bank receipt voucher.
Payment side contains all the payment made through banks, the voucher prepared
for this side is called bank payment voucher. The bank book must be balanced
daily.

Sales Journal

This book contains the daily sales of the company invoice wise and product wise.
At the end of the month the summary of all sales is made and posted into general
ledger. It also has several columns for the following headings.
Invoice No. Customer Name, Brand Names.

Vouchers and Documents of Account Department

Vouchers and other documents prepared by the account department.


• Cash payment vouchers.
• Cash receipt vouchers.
• Bank payment vouchers.
• Bank receipt vouchers.

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• Journal vouchers.
• Purchase vouchers.
• Sales invoices.

Trail Balance

Trail balance is a list of al the balances standing on the ledger accounts and cash
books of debit and credit. It is clear that if a debit and a credit have been made for
every transitions the total of the debts should equal the total of the credits and if
the accounts are balanced off, and the balances carried down the total of the of the
debit balances should equal. The total of the credit balances.

The Profit and Loss Account

In-order to assertion the profit or loss made during period where books are kept
by double entry it is necessary on the final date of the period to transfer the
balances of the nominal accounts to a profit and loss account in which the
expenses and losses are set against the gains to show the net profit and loss.

Balance Sheet

In classified summary of the balances of the accounts remaining open in the


ledger after the balances of the nominal accounts have been transferred to the
profit and loss account but including the balance of that account. The balance
sheet does not relate to a period, but sets out the not values of the assets liabilities
and capital, “as at” particular date.

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CHAPTER – 5

CRITICAL ANALYSIS

5.1 SWOT Analysis

5.1.1 Strengths

The Coca-Cola Company has the following strengths:


i) Conduct business on global scale.
ii) Good quality product.
iii) Good packaging.
iv) Equal employment opportunities.
v) Procedure management style.
Fanta and sprite are not challenged by the competitors.

a. Conduct Business on Global Scale

The Coca-Cola is a multinational Company and as we know that they produce


soft drink like Coke, FANTA and Sprite. Since 1886 the company has working to
refresh people through out the world. The Coca-Cola has more than 16 million
customer around the world that sell or serve its product directly to consumer and
there are nearly six billion people in the world who are potential consumer of
Coca-Cola Company product. So the great strength of Coca-Cola is that it conduct
business on global scale people around the world enjoy the good quality and good
taste of Coca-Cola and refresh and quench their thirst.

b. Good Quality Product

A product is a set of Tangible and intangible attributes which may include


packaging, color, price quality and brand plus the seller’s services and reputation.
People buy product because they want satisfaction in the form of benefit they
expect to receive from the product.

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So Coca Cola is a good quality product and it is a great strength of it. People gets
satisfaction from it and enjoy their self. As we know that the Coca-Cola product
has a image in the world market. So they take more care in the preparation of
product. So for a product like Coke there must be good quality, without good
quality you can not create a good image.

c. Good Packaging

Packaging can be define as all the activities involved in designing and producing
the container or wrapper for the product. The packaging protect the product from
tempering on its way to the consumer. The packaging identify the product of a
company. So a good quality packaging sell the product for the company. Good
packaging is important for a good quality product like Coke. The Coca-Cola
MAKK beverages has it own packaging plant where they packed their product
and distribute throughout N.W.F.P. The Coca Cola has different alternative
packaging. There packages are of following;
Plastic 1.50 liter
Bottle glass 1 Liter, 250 ml
Can 300 ml
They produce there packages according to the need of the consumer.

d. Equal Employment Opportunities

MAKK Beverages (Pvt.) Ltd. Recruit people. There is a H.R.M. department. They
recruit qualified people from the whole Pakistan with out regard to race color,
creed, religion and ancestry because there is equal employment opportunities for
every one. After recruitment these people are trained according to the need of
organization and they give him good pay, they also pay incentive according to the
work of employee.

e. Fanta and Sprite are not Challenged

The success of MAKK beverages lies in its two product FATNA, and SPRITE.
The test of these two product are really very good from the competitor product.
Meranda and 7UP. People like the test of Sprite and Fanta and they prefer it.

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These product are so well developed in the market and in the consumer mind that
no competitor can compete with them. The consumer have good perception about
the product and it good quality and test. So these product are not challenged by
the competitor and it is a great strength of MAKK beverages.

f. Other Strength

i. Co2 Plant

1. It has its own Co2 plant. After the completion of his own need for Co2.
They sell it in the market which earn sufficient revenue for the company.

ii. Water Softening Plant

They have there own well developed and international standard water softening
plant, were the water is treat with different chemical and when the water is
purified they used it in the preparation of its product.

iii. Production Plant

They have there own will developed and international standard production plant
were the product like Coke, Sprite, Fanta are prepared and then they distributes it
in the whole N.W.F.P.

iv. Transportation

MAKK beverages has its own fleet of transportation vehicles. They have 3 trucks,
4 Suzuki’s and 5-6 other vehicles.

5.2 Weaknesses

The Coca-Cola MAKK Beverages and Mineral Water (Pvt) Ltd. has the following
weaknesses.
i. Lack of mass advertising.
ii. Lack of financial resources.
iii. High employees turn over rate.
iv. Having high deficiency of empties.
v. Lack of well trained and qualified staff.

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vi. No care of gate pass.

1. Lack of Mass Advertising

All activities involved in presenting to an audience a non personal, sponsor-


identified paid for message about a product or an organization.
MAKK Beverages (Pvt.) Ltd. has the weakness that it does not insist upon mass
advertising. In past 4-5 year they take no care for advertising and promotional
activities and that’s why their market share is low as compared to that of its
competitors Pepsi. The Pepsi company totally depend on mass advertisement. A
good advertisement has the ability to pursue the audience to buy the product and
Pepsi take advantage. As we know that both the product of Pepsi and Coca-Cola
is same but the market share of Pepsi is more than Coca-Cola. The reason behind
is mass advertisement Pepsi sponsor the music events the sports, and they used
every medium of advertisement. The print, the electronic and many more. So it is
the weakness of Coca-Cola and they must concentrate on it to compete with
Pepsi.

2. Lack of Financial Resources

To run a business the company or the organization must have sufficient resources.
MAKK Beverages has the weakness that it has the lack of financial resources.
That is why they can not compete with Pepsi. The Pepsi have sufficient financial
resources and that is why they get more market share and earning more revenue
than Coca-Cola and Pepsi is the market leader in Pakistan. When a company have
sufficient financial resources, they can use it to beat its competitor in any way. So
they use their resources in better way.

3. High Employees Turnover

In MAKK Beverages one of the weakness is the high employees turnover. The
reason is that they hire the employees on seasonal basis mostly the employees are
hired in summer season and when summer can to an end. The employee must
leave the job because they have the lack of financial resources and they do not
pay their employee through whole year. The summer season is good for soft

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drink and they earn more in that season. So they hire their employee because the
work load is high.

4. Lack of well Trained and Qualified Staff

In MAKK Beverages mostly the employees and staff are not so much qualified
and trained. Mostly the sales manager, assistant sales manager have F.A.
qualification. The product manager and marketing manager have B.A. / B. Sc.
Qualification. This situation is very dangerous for MAKK Beverages because
they do not know about the basic knowledge of marketing and selling. The Pepsi
have well trained and qualified staff.

5. No Care of Gate-Pass

One of the weakness of MAKK Beverages is that no one take care of Gate pass.
Any one can in and out without a Gate pass. So for an organization like Coca-
Cola there must be some securities and Gate pass and no outsider well allowed
without a Gate pass. On the other hand the Pepsi has its Gate pass and no outsider
are allowed without the permission or Gate pass.

6. Having High Deficiency of Empties

In MAKK Beverage the summer season is full of demand. But due to lack of
empty bottles they cannot fulfil the demand for their customer.

5.3 Opportunities

MAKK Beverages and Mineral Water (Pvt) Ltd. has the following opportunities
which they must avail as soon as possible to become the market leader.
i. Launching new marketing schemes.
ii. No other Coca-Cola factory in N.W.F.P.
iii. Opening of new sales depot.
iv. Great potential.

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1. Launching New Marketing Schemes

The success of Coca-Cola lies in launching New marketing scheme. One of their
marketing schemes was wonder of the world and these schemes boast the Coca-
Cola sell. They also sponsor the cricket world cup in 1996. This also create good
image and sell is increase. So for a company like Coca-Cola. They must sponsor
sports event and they must plane for their new marketing scheme, like most of the
company, like Nike, Reeboc they sponsor sports events and they have a good
image. So for Coca-Cola there is an opportunities of Football would cup 2002.
They must plane a marketing schemes this well help them and the image and the
sell of the company should also increase.

2. No other Factory in N.W.F.P

MAKK Beverages has the opportunity that having no other Coca-Cola factory in
N.W.F.P. So they get benefits from such opportunity by producing good quality
product and improve it work and create a good image in the mind of consumer
and work hard to compete with its competition Pepsi and win the market share
and create new marketing strategies and implement it in a better way.

3. Opening of New Sales Depot

MAKK beverages and mineral water (Pvt.) Ltd. must open a new sales depot in
different region of N.W.F.P. in order to extend its distribution program because in
Marketing of a product you must have sufficient distribution channel. Now a days
Coca-Cola company have 3 trucks 4 Suzuki’s and 5-6 other vehicle which are not
sufficient in order to cover huge territory. So they must buy some new vehicle for
its new sale deptt and they must improve their distribution channel and in this way
they can easy capture the market and get more market share for its competitor
Pepsi and gets more revenue.

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4. Great Potential

We know that the MAKK beverages has a great potential of expansion especially.
It has a great opportunities in Gulf and west east Asian countries. The countries
are the following
1. Pakistan
2. Afghanistan
3. Sri Lanka
4. Bangladesh

5.4 Threats

MAKK Beverages and Mineral Water (Pvt) Ltd. has the following threats which
they must overcome to be a market leader.
i. Market demand inconsistency.
ii. Counterfeit brands.
iii. Government policies.
iv. Competition.
v. High taxes.

1. Market Demand Inconsistency

Just as external environment has opportunities that can be exploited and larger
gain can be made the external environment also possess certain threats which are
out of control of the company management. These threats need to be visualized as
soon as possible and strategies formulated to safeguard against these threats.
Due to lack of mass advertisement and other sales promotion activities in the past
five year, the Coca-Cola company has lost its market share especially in Pakistan
while its competitors Pepsi has gained sufficient market share. The second reason
for this threats over opportunity face to Coca-Cola company that they are unable
to provide as much services to their customers as their competitors. So in the
market the demand for their products is insufficient.

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2. Counterfeit Brand

Most of Coca-Cola Company brands counterfeit are available in the market at


price about two third lower than the original one. This results drastic fall in
MAKK Beverages revenue. So these threats need to be visualized as soon as
possible and strategies are formulated to safeguard these threats. If they not
visualized these problem so it create a serious damage in the sell and also in the
revenue of MAKK beverages.

3. Govt. Policies

As we know that in Pakistan Govt. policies are not stable. The Govt. policies are
changed when the new govt. came. It has its own policies so it create threats for
soft drink and other industries. Take the case of Italy the govt. change but the
policies of each govt. is same for each industries and for foreign investor so these
policies of Govt. create a threats for the organization.

4. Competition

The fourth threat faced by the Coca-Cola company is the tough competition with
Pepsi. The Coca-Cola company has only one competitor in the Market and he is
the market leader in Pakistan and he gets more market share and revenue from
Coca-Cola. The reasons behind is that the marketing strategies of Pepsi is more
better than Coca-Cola and they implement their strategies in a good way and they
have sufficient financial resources.

5. High Taxes

About 45% of MAKK beverages revenue goes in the payment of taxes. They
govt. have imposed high tax on soft drink business. Some of the taxes are when a
they bring raw material from other countries so they pay taxes, some are the
factory tax some are sales tax. So the company are worried about some new taxes.
When the new govt. came it has its own policies and tax. So it is a great threat for
soft drink business.

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6. Political Instability

Since Pakistan has an instable political system and one does not know what will
happen next. So this make life very difficult for various organization, including
MAKK beverages and Mineral water (Pvt.) Ltd. and they cannot make policies
and implement them freely in the long term.

5.5 General Analysis

1. Attitude of Senior Towards Junior

It has been noted that most of the managers of different departments are not
supportive by their juniors and they also cannot control their subordinates. This
creates an unfavorable situation for this organization.

2. Punctuality

Some of the staff members come late, which has become a practice and as soon as
the duty hours finish, the staff members leaves the organization with out sharing
the extra work with other workers.

3. Slow Career Advancement Improvement

The promotion policy of MAKK Beverages and Mineral Water (Pvt) Ltd. is very
slow and there are only few opportunities available for up-ward advancement.
This create dissatisfaction among employees and the talented employees some
times switch over to other organizations.

4. Lack of Efficient Staff

One of the most important problem which is faced by MAKK Beverages is


shortage of talented staff. Mostly staff having F.A., B.A. and B.Sc. qualification.
It means that they have no knowledge of professional management.

5. Unnecessary Leaves

Employees take unnecessary leaves from the factory. It has been noted that there
is not supervision on their subordinates.

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6. Improper Work Distribution

In MAKK Beverages the distribution of work among the employees and staff is
improper and this type of management creates dissatisfaction among employees
and leads to role ambiguity.

7. Job Analysis and Wages

In MAKK Beverages and Mineral Water (Pvt) Ltd. there is no concept of job
analysis and that’s why wages are not according to the work performed by the
workers.

8. Lack of Appreciation

Another important thing which is discounted and ignored by the management of


MAKK Beverages and Mineral Water (Pvt) Ltd. is the appreciation of the
employees on their ordinary performance. If the hard work and out standing
performance of the employees and staff members is not appreciated, it makes
them discouraged and dishearted.

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CHAPTER – 6

CONCLUSION & RECOMMENDATIONS

6.1 Conclusion

The beverages business is well organized through out the world. Coca-Cola
operates their business in more than 200 countries of the world and offers a
numbers of flavours but due to some religious facts Coca-Cola international offers
three major falvours in Pakistan. From the last few decades, the market share and
sales volume of Coca-Cola company in Pakistan is very low due to poor
marketing strategies, policies, advertising and sales promotion activities.
MAKK Beverages and Mineral Water (Pvt) Ltd. is also suffer from such kind of
situation during these days. The findings are the following.
1. MAKK Beverages has insufficient financial resources.
2. There is limited authority to G.M. and Factory Manger for planning.
3. All the authority is concerned in the hands of chairperson.
4. There is low coordination among the employees of MAKK.
5. The plant is nearly out of order because of carelessness.
6. There is no substitute of power during the days of load shedding which
cause difficulty to the company which makes the production slow.
7. The casing and bottles are old and out dated.
8. There is no proper technical staff in MAKK Beverages.
9. The company has no their own bottle manufacturing unit.
10. The transportation system is weak because of less number of vehicles
availability.
11. Marketing in MAKK Beverages is not standardized because of poor
management. They sell their products to the whole sellers and whole
sellers are independent in their beverages supply to the market.

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12. There is a lot of empty bottles lay down on the working places, and
because of this easy movement of products from on unit to other is not
possible.
13. Bottles caps material is imported from Japan and Korea, which is very
expensive, and they pay heavy duty to the Government.
14. In MAKK Beverages the sales promotion activities is equal to nil.

6.2 Recommendations

Coca-Cola (MAKK Beverages and Mineral Water (Pvt) Ltd. is doing adequate
business. However it lags behind its main competitor Pepsi and there is potential
to Coca-Cola to increase its market share.
For this purpose the following recommendations are given in order to rectify the
situation.

1. Advertising

Coca-Cola’s advertising pales in comparison to that of Pepsi. Pepsi has done well
to associate itself with leading personalities. Pepsi has endorsements from the
highly popular national cricket team, musicians, pop singers and film stars.
Coca-Cola on the other hand has few endorsements and the endorsements it
currently has not advertised heavily. In sports it supports the National Hockey
team. Which does not enjoy the same success and popularity.
Coca-Cola needs a long term vision for its advertising strategy that would create
for it’s a brand loyal customer base similar to that of Pepsi.

2. Give Financial Support to the Re-Sellers

Not only should advertising be aimed at the end user, but in the cola industry the
re-seller or the middleman assumes prime importance.
At present Pepsi is heavily funded and provides vast incentives to the resellers to
exclusively stock their products thus diminishing the territories available to Coca-
Cola to sell their products. The company often faces a financial crunch at the peak
season where it is imperative to maintain aggressive selling.

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So because of this most resellers prefer to stock Pepsi over Coca-Cola. For this
Coca-Cola must take some steps to overcome this problem.

3. Inventory Management

At present Coca-Cola is not able to meet demand at peak season. This is not
because of the inadequate concentrate or raw materials, but mainly because there
is a high deletion rate of the bottles that need to be recovered.
Bottles recovery is primarily the responsibility of the vendors but most vendors
take too much time to get this done.
In the peak season it is very necessary to increase recovery of empty bottles
through incentives for the resellers which would offset of costs of a loss of lessors
sales in the peak season if these bottles were not otherwise available.

4. Staff Interpersonal Relationship

In MAKK Beverages senior staff and junior staff have a very formal and distant
relationship. Motivation is rarely practiced and achievements by junior staff are
rarely acknowledged.
New appointees are directly sent to start their jobs with no training and advice.
And then they are held accountable for their failures. Moreover new staff are
viewed by senior staff as an opportunity to reduce their work load by increasing
the work load of the junior who may be inadequately prepared for it.
In this environment delegation is not conclusive because work comes to a stand
still when senior staff are not present because they are afraid to make decisions. A
concerted effort is required so that upper management values the input and
potential of new employees.

5. Staff Oriented Measures

The staff of Coca-Cola can be improved and there are a great deal of problems
that stem from this part of the organization.
There is no MBA on the staff and most of them have either done their
intermediate or are simple graduate. The staff at present are not able to carry out a
well managed planning function. They rely upon institution and past experience.

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The staff approach to employees is personal one as opposed to a system based


programme that would have clear standards and objectives stated. Motivation in
the organization is also curbed because of the lack of a clear policy for upward
mobility into management from sales.

6. Increase Transport Facilities

At present Coca-Cola has only two trucks and several pickups at its disposal to
cover demand for its products in N.W.F.P.
Whenever demand increases Coca-Cola make a contract to commercial
transporters. This process brings with it a new set of problems. First thing,
commercial transporters are not very punctual. Second, driving a truck with
fragile cargo requires special technique that commercial transporters do not have
and because of this Coca-Cola products get damaged.
Increasing the transportation facilities can reduce these problems.

7. Computerized Divisions

At present only the accounting department is computerized.


MAKK Beverages and Mineral Water (Pvt) Ltd. would benefit from added
computerization in other areas because it would improve inventory management
and bottle tracking system.
Whenever information is required presently a tedious manual process is used that
requires compiling from data entry source books.
Computerizing many manual data entry source books would not only save time
but would also give efficiency to the decision making function.

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CHAPTER – 7

ACTION/IMPLEMENTATION PLAN
Coca-Cola is a multinational company. The Coca-Cola is rich with history since
1886. The company has been working to refresh people every where through their
beverages.
The Coca-Cola system has more than 16 million customer around the world that
sell or sever its product directly to consumer and there are nearly six billion
people in the world who are potential consumer of Coca-Cola Company products.
The Coca-Cola is the market leader in soft drink and have a good market share in
the world market because they sell their product in more than (170) countries and
have a good image in the world market.
But in Pakistan the case is quite different. In Pakistan the Pepsi is the market
leader and they are getting more revenue from that market and have a good
market share. The market share of Pepsi is 60%. While the market share of Coca-
Cola is 40% there is a beg difference in the market share. Both the product are
same. But what make the difference that Pepsi has a better market share than
Coca-Cola.
After my recommendation which is the following.
1. Advertising
2. Financial Support to re-seller
3. Inventory Management
4. Staff interpersonal relation
5. Staff oriented measures
6. Increase transport facilities
7. Computerized divisions.
I take one of the aspect which is staff oriented measures and make an action plan
for Coca-Cola MAKK beverage (Pvt.) Ltd.

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7.1 Staff Oriented Measures

The staff of Coca-Cola can be improved and there are a great deal of problem that
stem from this part of organization.
There is no MBA in the staff and most of them have either done their
intermediate or simple graduate. The staff at present are not able to carry out a
well managed planning function. They rely upon institution and past experience.
The staff approach to employee’s is personal one as opposed to system used
program that would have clear standard and objective stated. Motivation in the
organization is also curbed because of lack of clear policy for upward mobility
into management from sales.
How we can achieve our organization object to be the market leader like the rest
of the world. The Coca-Cola achieve its mission. We are not ensures that we have
the right number and kind of people in right places at the right time, capable of
effectively and efficiently completing these task that will help organization to
achieve its overall objectives.
MAY Action Plan is that how the Coca-Cola company can improve its staff
oriented measures.
These are the following steps;
In MAKK beverages there is human resource management department. But are
not capable, they are not so much qualified, but they only used their experience,
they do not know about the procedure of job analysis, job description, job
specification, about the recruitment, about H.R.M. planning, development
function. So how they can hire a qualified person.

H.R.M.

H.R.M. is the part of organization that concerned with people dimension. Because
every organization is comprised of people acquiring their services developing
their skill motivating them to high levels of performance and ensuring that they
continue to maintain their commitment to organization are essential to achieving
organizational objective.

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Step – 1 “Human Resource Planning)

The first step of Coca-Cola MAKK beverages will be the human resource
planning. The process by which they ensures that they have the right number and
kind of people in the right place, at the right time, capable of effectively and
efficiently completing those taste that will help the organization to achieve its
overall objectives.

Step – 2 “Job Analysis”

After the human resource planning we need job analysis. A job analysis is a
systematic exploration of activities with in a job. It is a technical procedure, one
that is used to define the duties, responsibilities and accountabilities of a job. This
analysis involves the identification and description of what is happening on the
job, accurately and precisely identifying the required task, the knowledge and the
skill necessary for performing them and the condition under which they must be
performed now and in the future.

Step – 3 “Job Description”

After the job analysis we further proceed to the next step which is job description.
A job description will be in written statement of what the job holder does, how it
is done, under which condition it is done and why it is done. It should accurately
portray job content, environment and condition of employment.

Step – 4 “Job Specification”

In job specification the minimum acceptable qualification will be MBA (Mkt)


because we need marketing people for organization Coca-Cola MAKK beverage.

Step – 5 “Recruitment and Selection”

1. After all the process the final step is the recruitment of those people who
apply for the job. Recruitment is the discovering of potential candidates
for actual or anticipated organizational vacancies.
2. Goal of Recruiting: The goal of recruiting is to communicate the position
in such way that job seekers respond. The more application received the

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better the recruiter’s chances for finding an individuals who is best suited
to the job requirement. So for this purpose we provide enough information
about the job so that unqualified applicant can self selected themselves out
of job condidacy.
3. Recruitment Sources: There are many sources of recruitment bit we only
used the advertisement source and our advertisement source will be print
media. Those newspaper who have a good image in Pakistan and the
people read it regularly.
Like, the newspaper, Dawn.
The Nation, The News.

Job Opportunity

The Coca-Cola Company MAKK beverages (Pvt) Ltd. Located in Peshawar


required the services of suitable, energetic candidates for the following position.
Posts Qualification / Experience
Market Manager MBA Marketing
Sales Manager MBA Marketing
Production Manager MBA Marketing
Finance Manager MBA Finance
Factory Manager MBA Marketing
Experience: Minimum two years: Age not more than 35 years.
Fringe benefits and handsome package will be offered for only eligible
candidates.
Apply in confidence with detail CV and last latest photograph.
On the following address Coca-Cola MAKK beverage and Mineral Water (Pvt)
Ltd. Peshawar.

Selection Process

After the advertisement, those candidates who apply for the job should be selected
in the following form.

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1. Initial screening
2. Completing the applicant form
3. Employment test
4. Comprehensive interview
5. Background investigation
6. Medical and Physical Examination
7. The job offer

Development Function

The function of H.R.M. concerned with preparing employees to work effectively


and efficiently in the organization.

Training

A learning experience that seeks a relatively permanent change in an individual


that will improve his or her ability to perform on the job.

Training Method

We used off the job training for our employees. It cover a number of techniques;
1. Classroom lectures
2. Films demonstration
3. Case studies
4. Seminar
5. Conferences

Motivation

When the employee of a organization is motivate. So they can work hard to


achieve the organization objective.
Motivation begins with an unsatisfied need. The unsatisfied needs are any thing
that we desire of which we are deprived and this unsatisfied need create tension
and to reduce the tension they do some effort to satisfied it and the tension is
reduce.
So what are the needs which unsatisfied a person.

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Some employees needs are the following.


1. Challenging work
2. Recognition for good work
3. Being part of what’s going on
4. Job security
5. Good wages
6. Promotion and growth opportunities
7. Good work Environment
If some of these need are satisfied the employee are motivated and we can achieve
our objective. Because it is employee of that organization which work effectively
and efficiently to make the organization the best.

Reward

The two types of rewards;


1. Intrinsic reward
2. Extrinsic reward
1. Intrinsic reward are the satisfaction one gets from the job itself. These
satisfaction are self-initiated reward. Such as having pride in one’s work,
having feeling of accomplishment or being a part of team.
2. Extrinsic Reward. It include money, promotion and benefit.
So if MAKK beverage concentrate on all these activities. So the employee
turn over will be less, and the employee must be loyal to the company, and
in this way they can beat the Pepsi and get the leadership of the market,
and achieve it over all objective of good market share, more revenue and
good image which they lost in the last few year.

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QUESTIONNAIRE

Pepsi & Coca-Cola

Name: _____________________
Age: _____________________
Sex: _____________________
Father’s Income (per month): _____________________
Pocket Money (per month): _____________________

Encircle the correct answer

1. Among the following cold drinks, which one will you prefer to buy.
a. 7UP
b. Coca-Cola
c. Pepsi
d. Mirinda
e. Any other _____________________
2. Suppose if there are only two cold drinks in the market you will buy.
a. Pepsi
b. Coca-Cola
3. You will prefer to buy
a. Liter bottles
b. Cans
c. Disposable bottles
d. Normal bottle / 250 ml
4. You will prefer to buy this bottle because
a. Price is low
b. Quality is better
c. It is more strong
d. It is easy to handle
e. The drink is better

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f. The taste is better


5. In Normal Routine you buy.
a. Liter Bottles
b. Disposable bottle
c. Cans
d. Normal bottles
The reason of buying this product
a. Price is low
b. Taste is better
c. The drink is more safe
6. You buy your brand (Pepsi / Coca) because
a. It is easily available
b. It is more popular
c. You like it without any reason
d. It is more sweet
e. It is more strong
7. Will you buy other cold drinks for a change?

Yes No

If yes which one will you buy.


a. 7UP
b. Fanta
c. Miranda
d. Sprit
e. Any other
8. If price of your brand increases comparatively will you change the brand?

Yes No

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If yes, you will buy the other brand (Pepsi / Coca-Cola) if its price increase by.
a. 10%
b. 20%
c. 30%
d. 40%
e. 50%
f. Any other __________________
9. Which cold drink is often used in your home
a. Pepsi
b. Sprit
c. 7UP
d. Coca-Cola
e. Any other
10. Your parents buy
a. Pepsi
b. Sprite
c. 7UP
d. Coca-Cola
e. Any other ____________
11. You like the advertisement of
a. Pepsi
b. Coca-Cola
c. None of them
d. You don’t remember
12. Can you differentiate between Pepsi and Coca-Cola by taste?

Yes No

If yes, in your opinion your brand is better because


a. It is more strong
b. It is sweeter
c. Any other

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13. Which one of the following cold drink is manufactured by Pepsi?


a. Sprite
b. Miranda
14. Which one of the following cold drink is manufactured by Coca-Cola.
a. Sprite
b. Miranda
15. NOTE: (Write the slogan for Coca-Cola and Pepsi like “Ask For More”)
a. What is the slogan of Pepsi?
___________________________________________
b. What is the slogan of Coca-Cola?
________________________________________
16. Have you seen any advertisement of your brand (Pepsi / Coca-Cola) on the
banners?

Yes No

If yes mention its slogan


_________________________________
17. If prizes are offered in other brand, will you still buy you brand (Pepsi / Coca-
Cola).

Yes No

18. If your brand (Pepsi / Coca-Cola) is not easily available you will
a. Start buying imported cans of your favorite cold drink.
b. Switch to the opposite local brand.
c. You will stop drinking soft drinks.
19. If you don’t like a particular cricketer and the brand you like heavily
advertises him, do you think you will stop using your brand due to this reason.

Yes No

20. Your favorite cricketer are (Encircle 3 Answers)


a. Wasim Akram
b. Shahid Afridi

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LIST OF PERSONS INTERVIEWED


- “Zahoor Ahmed”, o/s sales manager, Coca-Cola MAKK Beverages
(personal Interview), Peshawar, July 2001.
- “Zaman Khan” (Production Manager), Coca Cola MAKK Beverages
(personal Interviews), Peshawar, 28th July 2001.
- “Humayun Khan, “Marketing Manager, Coca Cola MAKK Beverages
Private Ltd. (personal Interviews), Peshawar, 19th August, 2001.
- “Zulfiqar Hussin” General Manager, Coca Cola MAKK Beverages (Pvt.)
Ltd.(personal Interviews), Peshawar, 16th August, 2001.
- “Rahim Khan”, Quality Manager, Coca Cola MAKK Beverages (Pvt.)
Ltd.(personal Interviews), Peshawar, 11th August, 2001.
- “Muhammad Ayaz Khan”, Personnel Manager, Coca Cola MAKK
Beverages (Pvt.) Ltd.(personal Interviews), Peshawar, 13th July, 2001.
- “Aqeel Niazi”, Sales Manager, Coca Cola MAKK Beverages (Pvt.) Ltd.
(personal Interviews), Rawalpindi, 17th August, 2001.
- “Noor Elahi”, Distributor of Coca Coal Products to Sales Depot. MAKK
Beverages (Pvt.) Ltd. (Personal Interview), Peshawar, August. 2001.

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BIBLIOGRAPHY
1. Kotler, Philip, Marketing Management 9th ed. New Jersey; Prentice – Hall
International, 1997.
2. Stanton, William J. Marketing 11th ed. New York; McGraw-Hill
Companies, 1997.
3. Kotler, Philips., “Marketing Management”, 6th edition. New Delhi;
Prentice Hall of India, 1989.
4. William J. Stanton, Michall J. ETZEL, Bruce J. Walker, “Fundamental of
Marketing” 10th edition, U.S.A. McGraw-Hill, 1994.
5. F. JEROME Me Carethy William D. Perreault. Jr., “Essentials of
Marketing” fifth edition, U.S.A. IRWIN series in marketing, 1991.
6. Cateora Philip-R., “International Marketing” McGraw Hill International
U.S.A. 9th ed. 1999.

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INTERNET SOURCES
1. www.pepsi.com[Accessed on 10th August 2002]
2. www.coca-cola.com
3. www. The Coca-Cola Company.com.
4. www.newsweek.com

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