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Pepsi Cola

Shamim & Co (Multan)

Internship Report

On Pepsi Cola International


(Shamim & Co. Multan)
Submitted to:

Miss Hina Iqbal (Lecturer) Department of Management Sciences


Submitted by:

Awais Naeem
BBA-FA08-27

COMSATS Institute of Information & Technology


Internship Report iii

Pepsi Cola

Shamim & Co (Multan)

Sahiwal Campus.

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Pepsi Cola

Shamim & Co (Multan)

ACKNOWLEDGEMENT

The creator of mankind Allah the most beneficent and merciful. The one who rules over the universe. He who gave me knowledge, courage, and abilities to achieve my ultimate goal. And our beloved prophet Hazrat Muhammad (P.B.U.H) who guided us to know our creator. My parents supported me a lot to complete this assignment. And specially Miss Hina Iqbal who guided me on each & every step. So my gratitude to her for supporting me all the time because of her guidance I m learning at my level best.

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Pepsi Cola

Shamim & Co (Multan)

Internship Report

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Shamim & Co (Multan)

EXECUTIVE SUMMARY
In 1893, the company Pepsi Cola started with the name of Brads drinks. A lot of fluctuations came in the way of Pepsi cola. In the history of Pepsi Cola it was declared bankrupt twice. Then a company named Loft Candy purchased it for 30,000$. Shamim & Co. was established in 1963 but the production started in 1967. Allah Nawaz Khan Tareen got license of only 7-UP. But finally in 1973 it became Pepsi Cola franchise. Now Shamim & Co. is continuously striving to provide superior quality products. Organizational Structure plays a vital role to make an organization competitive. Now with the effort of whole companys departments & especially with the effort of sales & marketing department Pepsi Cola is achieving milestones. Now Pepsi is a tough rival to compete. Pepsi has standardized products all over the world. By maintaining tremendous quality the people are being more loyal to it. Departments are continuously working efficiently & effectively for the betterment of the company. Organizations proper hierarchal system and continuous excellent quality made Pepsi to be recognized as worlds best among brands. Customers loyalty considered to be the strength of the Pepsi & Coca Colas strive ness to grab market share considered to be one of its weaknesses. Pepsi is spending 60% of the marketing funds on advertising. Consistently giving excellent quality to people has made Pepsi popular among people of the world. By working in such an esteemed organization my practical exposure to market realties increased. This organization makes me think out of the box. Top organizations are not always perfect but also needs continuous Improvement to stay in competition. Flaws should be eliminated by monitoring them regularly. Mismanagement can cause losses to company.

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Shamim & Co (Multan)

TABLE OF CONTENTS
CHAPTER NO. 1 1.1 INTRODUCTION 1.1.1 PEPSI Cola International History 1.1.2 PEPSI Cola Formulation 1.1.3 PEPSI Colas Syrup Reformulation 1.1.4 PEPSI Cola International Incorporation 1.1.5 PEPSI Cola Setup 1.2 HISTORY OF PEPSI COLA IN PAKISTAN 1.3SHAMIM & CO. Multan 1.4 MISSION OF COMPANY 1.5 Current Product Offerings 1.6 Major Competitors CHAPTER NO. 2 2. Organizational Structure 2.1 Organizational Hierarchy 2.2 Departments 2.2.1 Administration Department 2.2.2 Production Department 2.2.3 Management Information System (MIS) 2.2.4 Sales / Marketing Department 2.2.5 Human Resource Department 2.2.6 Finance Department 2.2.7 Shipping Department 2.2.8 Cash Department 2.2.9 Auto Workshop Department 2.2.10 Accounts Department 2.2.11 Excise Department 2.2.12 Post Mix Department 2.3 Organizational Culture 06 07 08 08 08 10 12 16 19 19 19 20 20 20 22 23 01 01 01 01 01 02 02 02 04 05 05

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2.4 Distribution Channel 2.5 Factors of Popularity of Pepsi in Pakistan CHAPTER NO. 3 3.1 SWOT Analysis 3.2 Marketing Mix 3.3 Competitive Priorities 3.4 Business Process Analysis 3.5 Market Development 3.6 Product Development 3.7 AGGRESSIVENESS 3.8 STABILITY 3.9 Market Segmentation & Target markets 3.10 CONCLUSION CHAPTER NO.4 4. Learning as an Intern 4.1 Duties & Responsibilities 4.2 New Knowledge Acquired 4.2.1 Accomplishments 4.2.2 Impact on Career 4.2.3 Problems Encountered 4.3 CONCLUSIONS 4.4 Suggestions REFERENCES

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Shamim & Co (Multan)

Chapter No.1 1.1 INTRODUCTION


1.1.1 PEPSI COLA INTERNATIONAL HISTORY Caleb Bradham in 1893, a young pharmacist from North Carolina experiment many soft drinks. His experiment lot of soft drinks in 1893 but his first formulation named as Brads Drinks. This was after changed into Pepsi cola. After applying for a trade mark first franchise were established in charlotte and durhan. The logo of Pepsi cola was changed in 1906. After a long time company declared bankrupt and sold to company in Carolina for 30,000 $. 1.1.2 PEPSI COLA FORMULATION The company in Carolina purchased Pepsi cola in 1923. It purchased its business, good will for 30,000$. In 1931 the company was again declared bankrupt. It happened twice in the history of Pepsi cola international. 1.1.3 PEPSI COLAS SYRUP REFORMULATION After the second time when Pepsi cola declared bankrupt loft candy company acquired it. After acquiring it the loft company reformulated its syrup. Finally the drink got a lot of sale and company began to make revenue in 1934. Then the Pepsi cola for the first time registered in stock exchange in 1941. 1.1.4 PEPSI COLA INTERNATINAL INCORPORATION The expansion of the soft drink out side the country was about to began in 1965. It operates in beverage industry. The Pepsi cola is well reputed company and operates almost in every country and every corner if the world. To maintain its quality the company has strict rules for its manufacturing. The company has standardized products in all over the world. The franchises have to abide by the rules of the Pepsi cola international.

Internship Report

Pepsi Cola

Shamim & Co (Multan)

1.1.5 `PEPSI COLA SETUP The setup of Pepsi cola is situated in New York (USA). Different units operating in every corner of the world called MENAPak (Middle East, North America and Pakistan). The head office is situated in Dubai UAE. And the head offices of other franchises and Pepsi cola are situated in the countries capitals.

1.2

HISTORY OF PEPSI COLA IN PAKISTAN

Pepsi is being produced in 48 countries of world including Pakistan. At present, Pepsi cola is No.1 in Pakistan regarding sales wise and also in market share. It is the market leader in over all. But over all Coca-Cola is No.1. In Pakistan, there are eight territories where the fully developed units produce and sell Pepsi-Cola. 1. Lahore 2. Karachi 3. Rawalpindi 4. Multan 5. Gujranwala 6. Sakhar 7. faisalabad 8. Baluhistan

1.3

Shamim & Co. Multan

Shamim & Co. was established in 1963 but the production started in 1967. Allah Nawaz Khan Tareen got license of only 7-UP. But finally in 1973 it became Pepsi Cola franchise. Now a day MD of Pepsi Cola is Alamgeer Khan Tareen the son of Allah Nawaz Khan Tareen. Now Alamgeer is monitoring all business operations. In the beginning Shamim & Co. was having only one

Internship Report

Pepsi Cola

Shamim & Co (Multan)

plant for production made by Netherlands. At that time it was only producing 7-UP. In 1973, PEPSI acquired 7-UP in Canada so the Multan franchise started producing Pepsi & Mirinda along with Pepsi franchise. Coke was already operating in the market at that time when the Pepsi was incorporated. In the beginning it was very thorny to get market share but with the passage of time Pepsi build an excellent repute by focusing on gaining the market share. Recently Pepsi has launched a new brand with the name of Sting. Now in Pepsi Multan five production plants capable of 100,000 bottles per day. Two new plants are in process for installation. Now Pepsi Multan is currently market leader with more than 80% of the market share. Pepsi Multan is now properly serving all these areas with the quality products. And the most important Pepsi Multan is not an ISO certified company because it is an international drink and they have their own standards and there is no export.

Internship Report

Pepsi Cola

Shamim & Co (Multan)

1.4 MISSION OF COMPANY


We have absolute clarity about what we do WE SELL HIGH QUALITY FOOD AND BEVERAGE PRODUCTS. Our success will ensure: customers will build their business, employees build their futures, & shareholders build their wealth

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Pepsi Cola

Shamim & Co (Multan)

1.5

Current Product Offerings

7-UP was the first offering of Shamim & Company. Now the Company is producing five products. Pepsi Cola Mirinda 7-UP Diet Pepsi Mountain Dew

1.6

MAJOR COMPETITOR

Actually the main competitor of Pepsi is Coca-Cola. The other non-soft drink competitors are: Tea Coffee Water Energy Drinks Sports drinks Milk

These all are consumed on beverage occasions. The Pepsi focuses to get the greater share of these organizations. Without Coke, Pepsi would have a sturdy era being a unique and sparkling competitor. The more flourishing they are, the smarter we have to be. If Coca Cola did not be existing, we do pray for someone to formulate them. And on the other side of the hedge, I am sure the individuals at Coke would say that Pepsi contributes as much to the present day success of the Coke. a) Consumers: The drivers behind consumer behavior that Pepsi believe are Value, Variety, Attitudes and Convince
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Shamim & Co (Multan)

Chapter No.2
1. ORGANIZATIONAL STRUCTURE
Managing Director: He is basically the boss of the company & also the final operational authority. All other departments heads responsible to report about their current scenario. General Manager/ Director Finance: He is overall GM of the Pepsi cola Multan which manages all the decisions and strategies regarding Multan franchise. He also monitors the overall operations of Pepsi Cola Multan. General Manager Sales: He is responsible to achieve the targets assigned to him & also for his departments performance. To work more efficiently & effectively four regional and 15 Area sales managers are working under GM sales. General Manager Operation: He monitors the shipping, workshop related activities to level the factory operations. General Manager Technical: All the operations related production department & quality controlled department monitored by him. General Manager Finance: He allocates the budget to every department according to the needs. He makes financial policies. He is responsible to monitor Finance, Accounts and MIS departments.

Internship Report

Pepsi Cola

Shamim & Co (Multan)

2.1

ORGANIZATIONAL HIERARCHY:-

Managing Director

General Manager Technical

General Manager Sales

General Manager Finance

General Manager Operations

Manager Production

Manger Sales & Marketing

Manager MIS

Manager Admin

Manager Quality Control

Manager Research & SIS

Manager Finance

Manager Personnel

Manager Account

Manager Shipping

Figure 1: The proper hierarchal system of Pepsi cola Multan (Shamim & Co.)

Internship Report

Pepsi Cola

Shamim & Co (Multan)

2.2

DEPARTMENTS

In order to control the activities and problems there are eight departments in Pepsi cola Multan. 2.2.1 Department of Administration 2.2.2 Department of Production 2.2.3 Department of Management Information System (MIS) 2.2.4 Department of Research & Sales Information system (SIS) 2.2.5 Department of Finance 2.2.6 Department of Cash 2.2.7 Department of Marketing & Sales 2.2.8 Department of Human Resource

2.2.1 ADMINISTRATION DEPARTMENT


This department deals with the problems company face & also deals with internal affairs of the company. This department also takes actions to enhance the companys performance. This department also takes part in social welfare programs.

2.2.2 PRODUCTION DEPARTMENT


This department is producing the products according to the customers need. This department is responsible to manage all types of inventory. There are five production plants and all the plants are automated. This department is negotiating with the companies to install three new plants. Most of the time company imports their plants from Italy, Germany, & Netherlands. Before they used to buy ammonia for the purpose of cooling but now they have installed the plant of ammonia which has increased their efficiency and also reduce the cost of production. Now the production department is buying CO2 for the purpose of production. The management information system facilitates the production department by keeping the data computerized. The production

Internship Report

Pepsi Cola

Shamim & Co (Multan)

department is divided in to different parts which are working efficiently to give the best. The sub departments are a. Quality Control Department b. Technical Department c. Procurement Department 1. Bottles Washing Plant 2. CO2 (Carbon Dioxide) plant d. Processing Material Ferrous Sulfate Test e. Processing Material Activated Granular Carbon Test f. Crown Corks/Caps Inspection/Attribute Analysis g. Glass Bottles Inspection/Attribute Analysis h. Critical Defects i. Hydrated Lime Test j. Taste, Order & Appearance Test k. Post Mix Tanks Inspection a) PRODUCTION PROESS There is a lot of flexibility in the plants of production. Due to fluctuations in demand the production can be increased or decreased. There are same plants for the production all products. The products are: Pepsi 7-UP Mirinda Mountain Dew

There is no particular plant for the production of particular product. All the products manufactured by the same plant. The production process includes several stages:

Internship Report

Pepsi Cola

Shamim & Co (Multan)

1ST Stage (Getting Treated Water) 2nd Stage (Preparation Of Simple Syrup) 3rd Stage (Preparation Of Finished Syrup) 4th Stage (Washing Empty Bottles) 5th Stage (Filling Section) 6th Stage ( Crown Fitting) 7th Stage (Packaging)

2.2.3 MANAGEMENT INFORMATION SYSTEM (MIS)


In this new era the worlds business systems are totally converted in computerized systems. Through these information systems its easy to handle the business related problems & also helps in decision making. The information system encountered the problems and solves it efficiently. The management information system provides accurate information to the management. The company Shamim & Co. also have MIS department which is working efficiently and effectively. Well, this department is working with a very small setup but it fulfills the requirements of the organizations. Due to this department manual work much excluded. The software which is using by MIS department has two basic parts. The software has designed in some programming language. In any information system database is the most important part database basically defines that how to organize data, how to store data and how to retire the data from the memory. At the back end the database operated and at the front end the data is entered and deleted through input screens.

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Management information system department deals with day to day operations. At regular intervals of time the software upgraded. In this department all the computers are connected by LAN (local area network). These following systems are working in MIS department. a) Plant Efficiency System: This system is used to maintain the information about production and plant. This system is helpful to figure out the efficiency of line, code of employees, name of employees, taxes, net payment and allowances. b) Sales & Distribution System: This system encompasses many systems. These systems are: Sales system Cash system Shipping system Post mix system

These are the systems which comes under sales and distribution system. c) Excise & Sales Tax System: The company Shamim & Co. pays tax regularly to the government of Pakistan. According to the production & sales the company pays excise and sales tax. This system is basically designed to keep the record of tax transactions. d) Payroll System: The system is basically designed to keep the record of slips paid & report at the end of the month. The reports are very important for the departments for their day to day operations.

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2.2.4 SALES / MARKETING DEPARTMENT


For any company sales and marketing department is very important. Because it s generate sales for the company. Without sales and marketing department is just like a body without head. The marketing department makes the strategies that how to compete or react against the competitors strategies. And sales department implement that strategies in market to generate sales. The company having strong sales force can increase the sales as well as garbs the maximum market share. The department has to work very aggressively to create demand for the product. Shamim & Co. Companys sales & marketing department has done fantastic job during its efforts in 1993. This companys department got first position in 1993 all the way through out Pakistan. Sales & Marketing department has the following important contents: Marketing Development Tactical analysis & routine planning of market strategies Competition activity monitoring T.O.T Management Publicity Management Time Management

a) Market Development Planning, selecting the target market and developing is the major and most the important job of the sales and marketing department. First they select the targets to achieve & then make strategies to achieve those targets. There are some following factors which are considered: First to collect the data about the outlets and distribution about their recent sales, volume & growth. In potential markets to find the gaps.

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To find the points where the rivals are strong and how can we dominate them. To give different offers to win the market share.

b) OUTLET Its helps to grab the market share. The duty of sales person is to visit regularly and provide products according to need and demand of the outlet. Tactical Analysis & Routine Planning Of Market Strategies: Sales people collect information from different outlets and through this information they make plans and strategies to solve day to day operations to enhance the performance of the organization. c) Competition Activity Monitoring In this activity the department compares its strategies, activities and offers with the competitors. The department keep eye on the competitors for better decision making. Following factors to be noted with respect to competitor: The competitors investment in T.O.T, Publicity The competitors discounts & promotional schemes Making strategies to block the activities of competitors Monitoring the activities of our organization

d) Sales Promotion There are two different nature schemes which are used for purpose of promotion. First is the price off scheme & the second is discount scheme. There are also various prizes schemes which vary according to the condition. It may be: Small-to-Small Big-to Big

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Shamim & Co (Multan)

e) Promotional Activity Plan A promotional activity helps to enhance sales. With the promotional activities could be used to promote the products Like 7-UP & Mirinda. These followings are the objectives of the promotional activities. Boost sales to increase profits & market share for the promotion of the product increasing credibility of the company products Cash Prizes Bumper Prizes (Car, CD Player) Cold drink Glass for free

These schemes having prizes offered by the company like:

f) Promotional Timing Most of the promotional activities started in the months of March. Because April is the starting of the season & September is the ending of the season due to sales decline. g) Promotional Target Market The outlets preferred for the purpose of promotional activities are key outlets & low volume outlets. h) Prizes Distribution The distribution of prizes can be done at factory or at outlet premises. The promotional activities can not be done without giving prizes because it motivates the consumers. i) Lucky Draw Bumper prizes like Car, TV, and CD player may be given through lucky draws. These types of lucky draws help to increase the creditability of the organization.

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j) ADVERTISING & PUBLICITY DIFFERENCE Publicity depends on public relations rather than on purchasing time and communicate message which we called Advertising. In publicity they seek media gatekeepers which include editors, talk shows, & newscasters. One more difference between these two is publicity is non-paid and advertisement is paid. This can be understand by the example like, if someone tell you that our product is great in quality you might be doubtful but if another third party independently says that our product is great in quality you might be convinced. k) Types of Publicity Publicity has many forms. News, stories & public service announcements are very common. l) Sales Information System This system is responsible for making decisions. The decisions regarding ether to provide the chiller to customer or not, either to sponsor customers store. And these decisions are made on the basis of stores look, place, and sale of that particular customer. The sales information department is working under marketing department. This department also monitors the distributors and their requirements. m) Research & SIS Department This departments responsibility is to check performance of product in market and to provide information regarding product and its market share. This department is also responsible for the performance of new product launched like Sting.

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The department responsibility is to keep record of the outlets and franchise. The system is very useful to provide information to the management about the following Product Market Share Details and Information about franchises & outlets Status of publicity Margin & verification of Discount

n) Market Share Mr. Saeed Bhutta is the Research Assistant Manager of this department and use proprietary methodology to determine whether the product is giving sale or new product should go in the market. To know about the market share the research supervisor visit the market personally to have knowledge about the on going situation. o) Define the market Before implementing the strategies there is need to define your market where you are going to compete. What kind of rivals we would face? What kind of strategies they are using? And on which level they are operating? Segments defined & how to fulfill the segments needs. p) Tools of Traders (T.O.T) Shamim & Co. invested a lot in (T.O.T). Basically Tools of Traders means the list of items needed by the customer in the shop. Its done on the basis of sales of that outlet. Management of T.O.T totally depends on the sales force. The items include are freezer, Ice chest, Visi cooler.

2.2.5 HUMAN RESOURCE DEPARTMENT

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From last 5 years human Resource Department has been working in SCL before Human Resource Department personal department was responsible to handle employees problems and coordinate their activities. Now Human Resource Department is confront to solve problems related employees along with the personal department. a) Division of HR Department HR Department divided into two following sections: Team Tracking Department The Personal Department

b) Team Tracking Responsibilities: Forecasting & Planning of Future Selection and recruitment of employees Employees orientation and Training Employees compensation & benefits

c) Personal Department Responsibilities: Benefits on retirement Govt. agencies regarding legal matters Permanent employees HRIS Management of labor force

d) Developments in HR There are significant developments in company due to proper introduction of: Recruiting of employees Training and selection Compensation system of employees Management of appraisals
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Shamim & Co (Multan)

e) HR Department Structure in SCL: The HR department only deals with the finance department and the structure is decentralized. It deals with finance department only for the recruitment and selection. In other departments this activity carried out by the GM with the permission of the companys MD. f) HR Department Other Functions: The department covers all the divisions from low level officer to high level officer. The functions involve: Training of employees Measurement of employees performance Compensations of employees

g) Strategic Human Resource Management: The main focus of SCL is on strategic HRM. The HRD continuously identify the weak areas of the employees regarding their job and also their training. Due to this strategic HRM the company performance could be boost up. h) System of Performance Management in SCL: The SCL used Management by Objective (MBO), 360 feed back methods to measure employees performance. The performance of employees measure on the basis of following Work achieved and assigned Quality
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Shamim & Co (Multan)

Work achieved and assigned Quantity Variances of Time Absenteeism of employees Completion of duty hours Employee behavior Individual performance on the job Group performance on the job

2.2.6 FINANCE DEPARTMENT


Finance is the blood of any organization so finance department plays in the development of the company. It helps to continue the on going projects and to initiate new projects. Finance encountered the financial matters and solve it efficiently the responsibility of the financial department is to maintain the data and record of payments, transaction, profit and loss and to show the net result. The SCL financial department consists of three sections: Management Accountants Cost Accountants Accounting MIS Department

2.2.7 SHIPPING DEPARTMENT


The most critical area of the organization is shipping. Between production & sales its plays an important role and also plays a role of middleman between these two. The most important is the quantity and time for ensuring the empty. The following are the main functions of shipping departments. 1. To store or to receive new or used empty 2. Empty then deliver to plants 3. then to storage place of empty 4. report of daily production

2.2.8 CASH DEPARTMENT


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Cash handling (payment & collection) is the responsibility of cash department. Most of cash is collected by dealers and salesman on their daily report of sale. Most of the payments through vouchers which are issued by accounts department. Most of the payments include salaries of employees, bills of company, allowances of employees and day to day expenses.

2.2.9 AUTO WORKSHOP DEPARTMENT


The main function of this department is to maintain & repair vehicles used in the company. Mazda, Toyota, Hino are include in vehicles. 140 vehicles are serving the company. efficiently. Shipping department & sales department people use these vehicles. The department includes staff of 20 persons included mechanics. The department activities are monitored by the manager of workshop. The department is divided in to following sections. 1. Section of Electrocution 2. Section of Tire maintenance section 3. Section of service 4. Room of Tools

2.2.10 ACCOUNTS DEPARTMENT


The main responsibility of this department is to keep record & maintain the accounts books. The following are the main activities of this of this department. To purchase raw material, equipments & machinery vouchers issuance. To check the salaries & bonuses of employees To handle the payments of tax

2.2.11 EXCISE DEPARTMENT


Secret of successful companies is that they are very stick to their rules and also to government rules. According to the government rule the company has

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to pay excise & sales tax. The company. regularly pays these taxes. The both sales tax & excise duty calculated according to the rate of government. At the end of the month the dealers & the company pays all these taxes. The responsibility of this department is to keep & to maintain the documents following. Register of RG1 Register of RG2 Form of AR1 Report of daily production Register of ACL

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2.2.12 POST MIX DEPARTMENT


The responsibility of this department is to install & maintain the machine (fountain fresh) at different places. Now in CSDs the dispensing is the action package in two forms: 1. Post Mix form 2. Premix form It increases the profits of dealers and also enhances the opportunities for the company. In 2006 there was very low growth of dispensing area. But it increases rapidly because of the following factors. Because of the increasing demand & trend. Due to increase in pressure on retailers.

a) Dispensing Market Importance Due to rapid increase in dispensing market it increases the revenues and profits and also opened new gates of opportunities for company. But some of the following factors which are influenced by this can never under estimate. Companys Profitability Awareness among consumers Sampling of consumers Visibility of product Growth in volume Take home sales impact

b) MACHINE OF POST MIX This machine is basically U.S made. The department of pot mix install post mix machine with the cash of 30000 as security. The company also provides

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counter, water filters and disposable glasses and plates to the customers along with the machine of post mix.

2.3

ORGANIZATIONAL CULTURE:

The culture of Shamim & Co. is totally different from other beverage firms on the basis of following characteristics; a) Innovation & Risk Taking: Shamim & Co. mostly force on innovation and risk taking. The company is taking much higher risk than other competitors. Due to this distinctive attribute PCI has ranked top in 2003 and this news has been published by very well known magazine Fortune. b) Result Leaning: The company Shamim & Co. emphasis on results instead of techniques used to achieve desired goal. In 2000, 2001, and 2002, Shamim & Co. got Mega Plant grade. c) People Leaning: Every decision made by the management at Shamim & Co. takes into concern that what will be the effect on the people within the organization. The people who are working under different mangers handled with very care to get maximum output from them. d) Team Leaning: The working activities at the company are based on teams. The managers made teams instead of assigning one by one task to individuals. The company mangers say that they are following the policy of TEAM. They do so because Teams are efficient and more effective than individual and groups. The word TEAM enclosed a secret meaning inside which is Together, Everyone, Achieves, More.
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2.4

DISTRIBUTION CHANNEL:

There are numerous distributors which are operated through well-established network. Direct delivery system Indirect delivery system

These two well-established systems are taking much part to increase sales. Well the main different between these two networks is that in direct system the company uses its own resources while in indirect system the dealers uses their own resources to increase sales. The company having depots in different cities helps a lot to increase the sale.

2.5

FACTORS OF POPULARITY OF PEPSI IN PAKISTAN

There are some reasons for this success of Pepsi in Pakistan. a) Aggressive Bottlers: The Policies and strategies of Pepsi bottlers were more aggressive than their competitors. Due to less getting of share coke ignored this region. And due to ignorance of coke Pepsi got the opportunity to grow up & garb the market share. b) Movement against Jews: During the Arab Israel war, the Arabs boycott the Jew products. So coke banned in Arab countries. It opened the ways of success for Pepsi to enter and rule over the Arab markets. c) Environmental factors: The western societies force people to use bitter taste like beer and coffee, therefore they like coke instead of Pepsi due to cokes bitter contents. But on the other side of the fence in Pakistan people likes sweeter taste instead of bitter taste therefore they like Pepsi.

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Chapter No.3
3.1 SWOT ANALYSIS

a. Strengths Consumers are more inclined to PEPSI in Pakistan than Coca Cola. Because the sales and customers of Pepsi are more than Coca Cola. But overall at international level Coca Cola is on top. The Top level management of Pepsi is experienced and highly qualified. Because they have more knowledge regarding market conditions and consumers interest. Their ultimate target to grab maximum customers and make them more loyal by providing tremendous quality products. Competitive Distinctive name, Product, & Packaging. Like, recently Pepsi Cola international has launched a new brand called Sting which has totally different taste, color, and packaging. In comparison Coca Cola launched 3G in Pakistan which flopped after sometime because of its poor taste and quality. b. Weaknesses Lower level of employees having limited knowledge about the processes, management & business. These problems are regarding daily wage workers. Because they have no knowledge about that whom they have to report. Very low salary given to employees. Because of this the interest of the employees lack to work in the favor of the organization. Lower level employees are not facilitated with incentives even not on yearly bases. Total quality management of all operations of business is ignored. Just focus on maintenance of product. Because of this

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the Pepsi is facing the gas leakage problem in pets/1.5 liters bottles. Favoritism & Nepotism is common, this has demoralized the employees. Promotion is not given on merit rather than on bases favors. There is no such merit based system to hire employees and no fixed salary system. c. Opportunities Loyalty of consumers with Pepsi is more than Coca Cola in Pakistan. People are more inclined to the taste of Pepsi. Especially In Multan the competition is too tough because the both organizations production plants are in Multan. New outlets can be open to get maximum consumers attention and stickiness. By opening such new outlets revenue increased. Load shedding has increased the in take of liquid products during the summer. So this is an opportunity to devise strategies to make more customers. d. Threats Coca-Cola is giving tough competition and making way to garb more market share. Because both are offering and introducing new brands against each other. Like Coca-Cola introduced 3G against 7-UP. Load shedding has also main threat because its increases the cost of production. Its the burning issue these days. Cost of production increased due to the more usage of generators which consumes more fuel.

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3.2

THE MARKETING MIX:

a) Product: Pepsi, Pepsi Light, Pepsi Twist, Pepsi one, Mountain Dew, 7-UP, 7-UP Diet ( including Diet, Caffeine Free, Code Red, & caffeine Free Pepsi and Live Wire flavors). Competing brands of Coca-Cola with Pepsi:

Pepsi
Diet Pepsi/Pepsi Light Pepsi Pepsi Max Pepsi Wild Cherry Dr Slice Mirinda Tropicana Tango Slice Teem 7 Up /Sierra /

Coca-Cola
ONE Diet Coke/ Coca-Cola LightTab Coca-Cola Zero Coca-Cola Cherry Mr. Pibb / Pibb Xtra Fanta Twister Minute Maid

Mist Sprite Lemon & Paeroa

This is basically the comparison of Pepsi with Coca Cola competing brands. The competition is at its peak. Both are market leaders but still they are striving to get more loyalty and market share. b) Price: Pepsi offers a better tasting product at competitive price. Pepsi always competitively priced to its major rivals. Price of Pepsi products: Price comparison of Pepsi & Coke in 24/12 and 32/12 oz bottles ITEMS COCA-COLA CLASSIC PEPSI PT ITEM# 16 16 PRICES $17.28 $15.20

Price comparison of Pepsi & Coke in 24/20and 24/16.9 oz bottles

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ITEMS DIET COKE DIET PEPSI

PT ITEM# 471 471

PRICES $27.75 $30.64

Above mentioned comparison of prices both market leaders are giving competition by competitive prices. c) Promotion: Pepsi is spending 60% of the marketing funds on advertising most important TV advertising with radio, magazine, cinema and outdoor support. Some further promotional items include: sales material point, consumer premiums like, sporting and concert sponsorships. d) Place: Pepsi distributes via a variety of channels e.g. chains of major supermarkets, restaurants, smaller milk bars and fast food outlets like KFC, Pizza Hut. Pepsi also provides the refrigerated vending machines at different locations & various workplaces. The distributors of Pepsi supplied the required demand to the different franchises by taking orders through sales men who are employees of distributors not of the organization. Then after taking order regarding anything like refrigerators vending machines, chillers, and fountain fresh machines the company fulfill their demand by giving required thing. This whole process comes under the sales and marketing department they encountered with these types of activities.

3.3

COMPETITIVE PRIORTITIES

a. Cost

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Due to the production of standardized products the Pepsi Cola Multan has to maintain the fixed cost. And also they are focusing to reduce per unit price and also the total cost of production. b. Quality Pepsi Cola Multan always tried to maintain the quality of the product. Due to standardization the raw material used for the production of different items are same. Pepsi Cola Multan always tries to deliver the quality product according to the international standard of Pepsi Cola International (PCI). c. Time Pepsi cola Multan always focuses on time delivery to satisfy their customers & retailers. Actually time can make the difference so Pepsi is creating differentiation by focusing on time delivery. d. Flexibility Due to standardization the company does not focus on the demand of customers which is unique. The company focus on volume flexibility i.e. company can increase or decrease the rate of production with the fluctuations in demand. e. Other Core Competencies Strong delivery system Experienced & hardworking employees Satisfy customers with quick response

3.4

Business Process Analysis

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Customer

demands

Sales Officer Sales Officer reports the demand of the customer to S&M Dept.

Sales & Marketing Department After that the S&M Dept. sends report to research dept. to check whether SO is really provided required demand. Research & SIS Department

Computer Section

Customer Demand fulfilled

Then after authentication the whole data is moved towards CS for record.

Figure 3.1: Business Process Analysis of Shamim & Co. Multan

Actually, this whole process is about customers demand regarding Visi Coolers, Refrigerators etc. After when the customer demands regarding these the sales officer reports to marketing department then after documentation and proper research by SIS department the whole information is transferred to computer section to record the data regarding required demand.

3.5

Market Development:

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Developing markets for the current products market development its another way used by both Pepsi and Coco-Cola recently to enhance overall sales. While PepsiCos move towards advertising to a younger viewers. It can be considered as market penetration that shows the market development persona. Teenage Americans are not having been looked at powerful consumer group. Pepsi has penetrating the areas where the Coca-Cola has not. The PepsiCo and Coca-Cola try to search out the potential for the expansion in the geographic markets of China, India, and Philippines. Market penetration and market development strategies tie very closely with the development of CSD market. Societal and cultural preferences tied with the CSD preferences. 7-UP has done brilliant and also very booming in African-American markets. In 2001, PepsiCo improved their marketing strategy to change their previous non-Cola CSD market with Code Red.

3.6

Product Development:

PepsiCo determine that its Mountain Dew line could be improved by the new flavor (Code Red). PepsiCo also targeted the black and Hispanic viewers with mountain dew but it has not done well. In 1980s and 1990s, the Pepsi challenge attempted to enhance market share with the development of the product. Coco-Cola also tried to expand their product with the introduction of coke II. But this new expanding of their products provides no return and in the end failed to grab the market share. Product modification mostly not very warm welcoming, as it has been experienced by the disappointment of colorless coke and also due to newly released lemon-flavored colas.

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3.7

AGGRESSIVENESS:

The company Shamim & Co. employees are always ready to face obstacles & very serious about their work. The company is using the both reactive approach & proactive approach. Company always tries to be competent rather than easygoing.

3.8

STABILITY:

Most of the companies stable due their working relationship with the employees. Company behaves to facilitate the employees that in return they should act in the interest of the organization. The company does so for the maximum growth.

3.9

MARKET SEGMENTATION & TARGET MARKETS

In 1960, young adults become the target consumers of Pepsi and their advertising keeps tempo with Now Pepsi for those who think young. This line is taken form Pepsi Cola international official website. Due to standardization there is no such segmentation of market with respect to consumers. According to Pepsi Cola General Manager sales, the brands are targeted towards different age group of people.

3.10 Conclusion
After the whole analysis of the Company, findings regarding companys strategies and processes are very much impressive. But without continuous improvements the company cannot be apart of this hyper competition for a long time.

Chapter No.4
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1.

LEARNING AS AN INTERN:
I did 6 weeks internship in Shamim & Co. which is basically a franchise of Pepsi Cola International. Shamim & Co. was established in 1963 but the production started in 1967. Allah Nawaz Khan Tareen got license of only 7UP. But finally in 1973 it became Pepsi Cola franchise. Now a day MD of Pepsi Cola is Alamgeer Khan Tareen the son of Allah Nawaz Khan Tareen. Now Alamgeer is monitoring all business operations. In the beginning Shamim & Co. Multan was having only one plant for production made by Netherlands. At that time it was only producing 7-UP. In 1973, PEPSI acquired 7-UP in Canada so the Multan franchise started producing Pepsi & Mirinda along with Pepsi franchise.

4.1

Duties & Responsibilities:

During my internship I was routed among different departments of Shamim & Co. Multan. The departments are listed below: 1. Cold Assets Department 2. Customer Services Department 3. Marketing Department 4. Sales capability Department 5. Key Account 6. SIS Department 7. Finance Department 8. MIS Department My supervisor at internship assigned me some tasks which I have abided by. Duties and tasks are changed with the different departments. Some of the responsibilities at my internship are listed below. During my internship, my duty was to check daily sales when I did route riding. Take orders from customers & shopkeepers and report to the sales officer at the distribution of the Pepsi. Some of the customers
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paid at the time of delivery and some purchased on credit. It depends on the credit limit of the company. After when I was moved to sales capability department I did merchandising. My duty was to promote the new marketing scheme of Pepsi at that time. And also to ask customers that what sort of problems they are facing regarding supply. Because supply was the major problems those days. In marketing department, my duty was to be with the people taking part in the promotion of recently launched brand Sting. The whole promotional scheme was just for creating awareness about the new brand. In Finance department, my duty was to fill slips and to see that how entries are made.

4.2 New Knowledge Acquired:


By working as an intern in such an esteemed organization my practical exposure to market realities increased. I came to know that what is actually going on in market. Actually the practical is something different from theory perspective. I learnt that customer is a king. By losing one big customer the company has to tolerate loss. My skills are polished like, communication skills, problem solving skill. I came to know how to deal and interact with the customers. This organization makes me think out of the box. I also acquired the knowledge about the stress and time management. 4.2.1 Accomplishments: While during my internship my accomplishments were that I have completed my assignments and tasks right on time. During merchandising I report the problems regarding supply to the sales capability manager Mr. haseeb. After reporting from my side the problems regarding supply were eliminated to some extent. 4.2.2 Impact on Career:

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This activity makes me more disciplined and more prompt. Acquiring knowledge about different disciplines makes me to think at broader level. Everyone learns from experience and there is no shortcut to experience. And experience of this activity was extremely perfect. 4.2.3 Problems Encountered: During my internship I have faced some problems given below: There were no time Management Incorporative staff No proper place for sitting

So, these are some problems which I have faced during my internship program.

4.3 Conclusion
By working in such an esteemed organization my practical exposure to market realties increased. This organization makes me think out of the box. Top organizations are not always perfect but also needs continuous Improvement to stay in competition. Flaws should be eliminated by monitoring them regularly. Mismanagement can cause losses to company.

4.4

SUGGESTIONS
We found Lack of proper hierarchical system in the organization which is most important to any organization. Without proper hierarchical system the company may be face numerous obstacle to achieve its ultimate goal. In Pakistan most of the business owner families makes their decisions without consulting experienced person. So there should be proper hierarchical system in the organization. Second flaw we found was no proper system of reporting in organization. There was no proper system of communication. If a

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technical worker encounters any problem then the technical worker rushes to plant to report production manger so its clears that there is no proper system there should be proper reporting system to resolve any kind of problem the employees should know about the person whom they have to report. Training of employees was the major problem in the organization. Because trained employees are the biggest assets of any organization. Because these are basically the skills of employees that finally comes out in the form of profit for the company. They should hire some person who is just to train employees. Every department should have training programs for new hired persons & also have some knowledge enhancement programs for old ones. The system of performance appraisal should be improved. Because most of the times the performance judged on the basis of production rather than individual efficiency. If the first shift workers got higher production than the second then they will get higher rating. And also there is chance of biasness while rating person. So there should some better criteria to rate people. Motivation of employees is the biggest issue of the organizations. Because the motivation can force any employee to work in the interest of organization. Pepsi cola Multan also have a lot of deficiency in this area. They are giving low salaries to most of the employees. The company should use some extrinsic factors to motivate employees. Money can motivate employees better than any other thing. So the company should give some incentives to their employees to enhance the creditability of the organization. REFERENCES: Solar Navigator. 2006. Pepsi Cola History. Available at [Online]: http://www.solarnavigator.net/sponsorship/pepsi_cola.htm [accessed 12 July 2011]
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Shamim Cola Limited. About SCL overview. Available at [Online]: http://www.scl-pepsi.com/alpha/index2.htm [accessed 19 July 2011] Samples. 2006. Pepsi Mission Statement. Available at [Online]: http://www.samples-help.org.uk/mission-statements/pepsi-missionstatement.htm [accessed 24 July 2011] Oppapers. Marketing Mix of Pepsi. Available at [Online]: www.oppapers.com/subjects/marketing-mix-of-pepsi-page1.html

[accessed 27 July 2011]


Ali, H., 2011. Sales and Marketing Department. [discussion] (Personal Communication, 25 July 2011) Ahmed, N., 2011. Sales and Marketing Department. [discussion] (Personal Communication, 26 July 2011) Sheikh, Z., 2011. Sales and Marketing Department. [discussion] (Personal Communication, 27 July 2011) Umar, M., 2011. Sales and Marketing Department. [discussion] (Personal Communication, 28 July 2011)

Bukhari, A., 2011. Finance Department. [discussion] (Personal Communication, 29 June 2011)

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Abdullah, M., 2011. Finance Department. [discussion] (Personal Communication, 30 June 2011) Tahir, S., 2011. Human Resource Department. [discussion] (Personal Communication, 31 June 2011) Mohsin, U., 2011. Finance Department. [discussion] (Personal Communication, 1 August 2011) Khan, F., 2011. Sales and Marketing Department. [discussion] (Personal Communication, 1 August 2011) Zafar, H., 2011. Sales and Marketing Department. [discussion] (Personal Communication, 2 August 2011) Ahmed, Y., 2011. Sales and Marketing Department. [discussion] (Personal Communication, 3 August 2011) Munir, N., 2011. Sales and Marketing Department. [discussion] (Personal Communication, 4 August 2011) Shahid, A., 2011. Sales and Marketing Department. [discussion] (Personal Communication, 5 August 2011) Safdar, I., 2011. SIS and Research Department. [discussion] (Personal Communication, 6 August 2011)

Habib, K., 2011. SIS and Research Department. [discussion] (Personal Communication, 7 August 2011)

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Farooq, H., 2011. SIS and Research Department. [discussion] (Personal Communication, 8 August 2011) Safdar, I., 2011. Production Department. [discussion] (Personal Communication, 9 August 2011) Yasir, S., 2011. Post Mix Department. [discussion] (Personal Communication, 10 August 2011)

Stepheny Hubpages. SWOT Analysis. Available at [Online]:

http://stepheny.hubpages.com/hub/pepsi-swot-analysis-withother-soft-drinks [accessed 10 July 2011]

Wikipedia. Factors of Popularity of PEPSI in Pakistan. Available at [Online]:

http://en.wikipedia.org/wiki/Pepsi [accessed 19 July 2011]


Oppapers. Market Segmentation of Pepsi. Available at [Online]: http://www.oppapers.com/essays/Pepsico-MarketSegmentation/173457 [accessed 24 July 2011]

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