HISTORY
OF
PEPSI COLA
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HISTORY OF PEPSI
Pepsi has one of the most intriguing histories of any product in the market. From it's
humble beginnings the people of Pepsi make the story what it is - including its inventor,
customers, competition, corporate managers, salesmen, distributors, cartoon spokes-
persons and including some of the biggest names in entertainment history. There have
been good times and bad times - plus lots and lots of changes over the years.
PEPSI’S BEGINNING
The summer of 1898, as usual, was hot and humid in New Bern, North Carolina.
So a young pharmacist named Caleb Bradham began experimenting with combinations of
spices, juices, and syrups trying to create a refreshing new drink to serve his customers.
He succeeded beyond all expectations because he invented the beverage known around
the world as Pepsi-Cola.
Caleb Bradham knew that to keep people returning to his pharmacy, he would have to
turn it into a gathering place. He did so by concocting his own special beverage, a soft
drink.
His creation, a unique mixture of kola nut extract, vanilla and rare oils, became so popular
his customers named it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and
advertised his new soft drink. People responded, and sales of Pepsi-Cola started to grow,
convincing him that he should form a company to market the new beverage.
In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and
applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and
sold it exclusively through soda fountains. But soon Caleb recognized that a greater
opportunity existed to bottle Pepsi so that people could drink it anywhere.
The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered
with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme
line "Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to
bottle Pepsi to independent investors, whose number grew from just two in 1905, in the
cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by 1907.
By the end of 1910, there were Pepsi-Cola franchises in 24 states.
Building a strong franchise system was one of Caleb's greatest achievements. Local
Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to the product's success,
provided a sturdy foundation. They were the cornerstone of the Pepsi-Cola enterprise. By
1907, the new company was selling more than 100,000 gallons of syrup per year.
Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the
town of New Bern pictured it on a postcard. Famous racing car driver Barney Oldfield
endorsed Pepsi in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer
before a race."
The previous year, Pepsi had been one of the first companies in the United States to
switch from horse-drawn transport to motor vehicles, and Caleb's business expertise
captured widespread attention. He was even mentioned as a possible candidate for
Governor. A 1913 editorial in the Greensboro Patriot praised him for his "keen and
energetic business sense."
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Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with
the slogan, "Drink Pepsi-Cola. It will satisfy you." Then came World War I, and the cost
of doing business increased drastically. Sugar prices see sawed between record highs and
disastrous lows, and so did the price of producing Pepsi-Cola. Caleb was forced into a
series of business gambles just to survive, until finally, after three exhausting years, his
luck ran out and he was bankrupted. By 1921, only two plants remained open.
It wasn't until a successful candy manufacturer, Charles G. Guth, appeared on the scene
that the future of Pepsi-Cola was assured. Guth was president of Loft Incorporated, a
large chain of candy stores and soda fountains along the eastern seaboard. He saw Pepsi-
Cola as an opportunity to discontinue an unsatisfactory business relationship with the
Coca-Cola Company, and at the same time to add an attractive drawing card to Loft's
soda fountains. He was right. After five owners and 15 unprofitable years, Pepsi-Cola was
once again a thriving national brand.
One oddity of the time, for a number of years, all of Pepsi-Cola's sales were actually
administered from a Baltimore building apparently owned by Coca-Cola, and named for
its president.
Within two years, Pepsi would earn $1 million for its new owner. With the resurgence
came new confidence, a rarity in those days because the nation was in the early stages of
a severe economic decline that came to be known as the Great Depression.
Timeline of Pepsi
1898
Caleb Bradham, a New Bern, North Carolina, pharmacist, renames "Brad's Drink," a
carbonated soft drink he created to serve his drugstore's fountain customers. The new
name, Pepsi-Cola, is derived from two of the principal ingredients, pepsin and kola nuts.
It is first used on August 28.
1902
Bradham applies to the U.S. Patent Office for a trademark for the Pepsi-Cola name.
1903
In keeping with its origin as a pharmacist's concoction, Bradham's advertising praises his
drink as "Exhilarating, invigorating, aids digestion."
1905
A new logo appears, the first change from the original created in 1898.
1906
The logo is redesigned and a new slogan added: "The original pure food drink." The
trademark is registered in Canada.
1907
The Pepsi trademark is registered in Mexico.
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1909
Automobile racing pioneer Barney Oldfield becomes Pepsi's first celebrity endorser when
he appears in newspaper ads describing Pepsi-Cola as "A bully drink...refreshing,
invigorating, a fine bracer before a race." The theme "Delicious and Healthful" appears,
and will be used intermittently over the next two decades.
1920
Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you."
1932
The trademark is registered in Argentina.
1934
Pepsi begins selling a 12-ounce bottle for five cents, the same price charged by its
competitors for six ounces.
1938
The trademark is registered in the Soviet Union.
1939
A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a
Nickel" to increase consumer awareness of Pepsi's value advantage.
1940
Pepsi makes advertising history with the first advertising jingle ever broadcast
nationwide. "Nickel, Nickel" will eventually become a hit record and will be translated
into 55 languages. A new, more modern logo is adopted
1941
In support of America's war effort, Pepsi changes the color of its bottle crowns to red,
white and blue. A Pepsi canteen in Times Square, New York, operates throughout the
war, enabling more than a million families to record messages for armed services
personnel overseas.
1943
The "Twice as Much" advertising strategy expands to include the theme, "Bigger Drink,
Better Taste."
1949
"Why take less when Pepsi's best?" is added to "Twice as Much" advertising.
1950
"More Bounce to the Ounce" becomes Pepsi's new theme as changing soft drink
economics force Pepsi to raise prices to competitive levels. The logo is again updated.
1953
Americans become more weight conscious, and a new strategy based on Pepsi's lower
caloric content is implemented with "The Light Refreshment" campaign.
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1954
"The Light Refreshment" evolves to incorporate "Refreshing Without Filling."
1958
Pepsi struggles to enhance its brand image. Sometimes referred to as "the kitchen cola,"
as a consequence of its long-time positioning as a bargain brand, Pepsi now identifies
itself with young, fashionable consumers with the "Be Sociable, Have a Pepsi" theme. A
distinctive "swirl" bottle replaces Pepsi's earlier straight-sided bottle.
1959
Soviet Premier Nikita Khrushchev and U.S. Vice-President Richard Nixon meet in the
soon-to-be-famous "kitchen debate" at an international trade fair. The meeting, over
Pepsi, is photo-captioned in the U.S. as "Khrushchev Gets Sociable."
1961
Pepsi further refines its target audience, recognizing the increasing importance of the
younger, post-war generation. "Now it's Pepsi, for Those who think Young" defines youth
as a state of mind as much as a chronological age, maintaining the brand's appeal to all
market segments.
1963
In one of the most significant demographic events in commercial history, the post-war
baby boom emerges as a social and marketplace phenomenon. Pepsi recognizes the
change, and positions Pepsi as the brand belonging to the new generation-The Pepsi
Generation. "Come alive! You're in the Pepsi Generation" makes advertising history. It is
the first time a product is identified, not so much by its attributes, as by its consumers'
lifestyles and attitudes.
1964
A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.
1966
Diet Pepsi's first independent campaign, "Girlwatchers," focuses on the cosmetic benefits
of the low-calorie cola. The "Girlwatchers" musical theme becomes a Top 40 hit.
Advertising for another new product, Mountain Dew, a regional brand acquired in 1964,
airs for the first time, built around the instantly recognizable tag line, "Ya-Hoo, Mountain
Dew!"
1967
When research indicates that consumers place a premium on Pepsi's superior taste when
chilled, "Taste that beats the others cold. Pepsi pours it on" emphasizes Pepsi's product
superiority. The campaign, while product-oriented, adheres closely to the energetic,
youthful, lifestyle imagery established in the initial Pepsi Generation campaign.
1969
"You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi Generation
advertising strategy. Youth and lifestyle are still the campaign's driving forces, but with
"Live/Give," a new awareness and a reflection of contemporary events and mood become
integral parts of the advertising's texture.
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1973
Pepsi Generation advertising continues to evolve. "Join the Pepsi People, Feelin' Free"
captures the mood of a nation involved in massive social and political change. It pictures
us the way we are-one people, but many personalities.
1975
The Pepsi Challenge, a landmark marketing strategy, convinces millions of consumers
that Pepsi's taste is superior.
1976
"Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving national
mood. "Puppies," a 30-second snapshot of an encounter between a very small boy and
some even smaller dogs, becomes an instant commercial classic.
1979
With the end of the '70s comes the end of a national malaise. Patriotism has been restored
by an exuberant celebration of the U.S. bicentennial, and Americans are looking to the
future with renewed optimism. "Catch that Pepsi Spirit!" catches the mood and the Pepsi
Generation carries it forward into the '80s.
1982
With all the evidence showing that Pepsi's taste is superior, the only question remaining is
how to add that message to Pepsi Generation advertising. The answer? "Pepsi's got your
Taste for Life!," a triumphant celebration of great times and great taste.
1983
The soft drink market grows more competitive, but for Pepsi drinkers, the battle is won.
The time is right and so is their soft drink. It's got to be "Pepsi Now!"
1984
A new generation has emerged-in the United States, around the world and in Pepsi
advertising, too. "Pepsi. The Choice of a New Generation" announces the change, and the
most popular entertainer of the time, Michael Jackson, stars in the first two commercials
of the new campaign. The two spots quickly become "the most eagerly awaited
advertising of all time."
1985
Lionel Richie leads a star-studded parade into "New Generation" advertising followed by
pop music icons Tina Turner and Gloria Estefan. Sports heroes Joe Montana and Dan
Marino are part of it, as are film and television stars Teri Garr and Billy Crystal.
Geraldine Ferraro, the first woman nominated to be vice president of the U.S., stars in a
Diet Pepsi spot. And the irrepressible Michael J. Fox brings a special talent, style and
spirit to a series of Pepsi and Diet Pepsi commercials, including a classic, "Apartment
10G."
1987
After an absence of 27 years, Pepsi returns to Times Square, New York, with a
spectacular 850-square foot electronic display billboard declaring Pepsi to be "America's
Choice."
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1988
Michael Jackson returns to "New Generation" advertising to star in a four-part "episodic"
commercial named "Chase." "Chase" airs during the Grammy Awards program and is
immediately hailed by the media as "the most-watched commercial in advertising
history."
1989
"The Choice of a New Generation" theme expands to categorize Pepsi users as "A
Generation Ahead!"
1990
Teen stars Fred Savage and Kirk Cameron join the "New Generation" campaign, and
football legend Joe Montana returns in a spot challenging other celebrities to taste test
their colas against Pepsi. Music legend Ray Charles stars in a new Diet Pepsi campaign,
"You got the right one baby."
1991
"You got the Right one Baby" is modified to "You got the Right one Baby, Uh-Huh!" The
"Uh-Huh Girls" join Ray Charles as back-up singers and a campaign soon to become the
most popular advertising in America is on its way. Supermodel Cindy Crawford stars in
an award-winning commercial made to introduce Pepsi's updated logo and package
graphics.
1992
Celebrities join consumers, declaring that they "Gotta Have It." The interim campaign
supplants "Choice of a New Generation" as work proceeds on new Pepsi advertising for
the '90s. Mountain Dew growth continues, supported by the antics of an outrageous new
Dew Crew whose claim to fame is that, except for the unique great taste of Dew, they've
"Been there, Done that, Tried that."
1993
"Be Young, Have fun, Drink Pepsi" advertising starring basketball superstar Shaquille
O'Neal is rated as best in U.S.
1994
New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO
Craig Weatherup explaining the relationship between freshness and superior taste to
consumers.
1995
In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors
in the year's national advertising championship.
1996
In February of this year, Pepsi makes history once again by launching one of the most
ambitious entertainment sites on the World Wide Web. Pepsiworld eventually surpasses
all expectations, and becomes one of the most launched and copied sites in this new
medium, firmly establishing Pepsi's presence on the Internet.
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1997
In the early part of the year, Pepsi pushes into a new era with the unveiling of the
GeneratioNext campaign. GeneratioNext is about everything that is young and fresh, a
celebration of the creative spirit. It is about the kind of attitude that challenges the norm
with new ideas, at every step of the way.
1998
Pepsi continues its popular "GeneratioNext" campaign with spots that include: Goose,
Gnat and Stunt Driver (featuring racing superstar Jeff Gordon). In 1998 Pepsi launches its
new look, called "Globe," which prominently features a stylized, three-dimensional Pepsi
Globe set against a blue ice backdrop. It affects all can, bottle, and multican packaging for
Pepsi, Diet Pepsi, Caffeine Free Pepsi and Caffeine Free Diet Pepsi.
1999
"The Joy of Cola" new advertising campaign for Brand Pepsi features the voices of actors
Marlon Brando, Isaac Hayes and "Queen of Soul" Aretha Franklin. The spots also feature
child actress Hallie Eisenberg as the "Little Girl."
Pepsi and Lucasfilm team up again as "Star Wars: Episode I - The Phantom Menace" hits
movie theaters. Consumer excitement surrounding the long-awaited return of the Star
Wars series is heightened as special Pepsi bottles and cans offer 24 different Star Wars
characters. The collection series includes a gold Yoda can.
Pepsi-Cola North America welcomes Gary Rodkin as President and CEO. In a dramatic
restructuring of the business, Pepsi announces one of the largest IPOs in history. On
March 31, 1999, The Pepsi Bottling Group, Inc. (PBG) becomes a publicly traded
company and Pepsi's largest bottler. PBG is headed by President and CEO Craig
Weatherup.
The new look replaces Pepsi's current pedestal logo with a new brand identity that also
more prominently features the Pepsi Globe against a blue background. Pepsi celebrates its
centennial year with a birthday party that is attended by Pepsi-Cola bottlers from all over
the world. Joining the festivities are Pepsi stars and friends including Ray Charles, Kool
and the Gang and the Rolling Stones.
2000
Faith Hill, Sammy Sosa and Ken Griffey Jr. - three of the hottest names in entertainment -
signed new deals to endorse Pepsi-Cola products. Singing sensation Faith Hill, who has
rocked the charts with her top 10 hits, stared in a new "Joy of Cola" ad with "Pepsi Girl"
Hallie Eisenberg.
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PEPSI LOGOS
The Pepsi logo has changed many times over the years. Here's a chronological history of
the various logos.
Pepsi Phrases
The Pepsi marketing phrase has also changed many times. The marketing folks at the
company felt free to invent new phrases whenever they thought the public would be
receptive to the change.
1909-1939: Delicious and Healthful
1939-1950: Twice As Much For A Nickel Too
1950-1963: The Light Refreshment
1953-1961: Be Sociable
1961-1963: Now It's Pepsi For Those Who Think Young
1963-1967: Come Alive! You're In The Pepsi Generation
1967-1969: Taste That Beats The Others Cold
1969-1973: You've Got A Lot To Live, Pepsi's Got A Lot To Give
1973-1975: Join The Pepsi People Feelin' Free
1975-1978: Have A Pepsi Day
1978-1981: Catch That Pepsi Spirit
1981-1982: Pepsi's Got Your Taste For Life!
1983-1983: Pepsi Now!
1984-now: Pepsi, The Choice Of A New Generation
Criticism on the Pepsi-cola product
Suspected adverse long-term health effects of phosphoric acid. Some nutrients assert that
the phosphoric acid component of Pepsi-cola and other similar drinks, may be deleterious
to bone health in both men and women.
Sugar
An excess intake of sugar has been suspected as a contributory factor in certain kinds of
diabetes, often co-associated with obesity, to which excess calorie intake (relative to
calorie expenditure from exercise) is suspected as a primary factor.
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Restaurant holdings
Pizza hut, Taco bell, and KFC are spun-off by PepsiCo. In 1997, as the same company
created by Tricon Global Restaurants (now known as yum. Brands. Inc.). The same
company has been merchandised into home originals and other available products and
recipes in grocery stores and many other stores everywhere in North America.
PEPSI CO. INTERNATIONALS
The carbonated soft drink market had, in recent years become increasingly competitive as
Western markets matured and multinational firms began increasing global operations as a
means of continued growth. Historically, the early power into a “white market” (an area
with no previous distribution of Coke or Pepsi) continued to hold the majority market
share as the market matured. Thus, it was seen as critical to enter new markets as soon as
they became politically and economically accessible.
Instead of going head-to-head with Coke in almost every market in the world, Pepsi had
focused its efforts on high-potential emerging markets such as China, India, Russia and
Vietnam. These countries had high populations and low soft drink consumption rates,
which translated into tremendous growth prospects.
By 1997, PepsiCo. Was selling about three billion 8-oz cases of soft drink outside North
America under a different set of brands that included Seven-Up, Mirinda (orange soda)
and Pepsi Max (no calorie cola). Independent bottlers sold about 60% of Pepsi’s
international volume, while bottlers in which PepsiCo handled the remaining 40%. Either
controlled or had some equity stake.
Investment Opportunities
In evaluating the merits of entering a new market or making a major investment in
reviving an old one, PepsiCo. Looked for a 14% internal rate of return, after adjustment
for expected inflation and country risk, over a 12-year horizon. PepsiCo. Also measured
the success of an investment against a 7% corporate ROA target. These criteria where
then supplemented with a fivefold characterization of investment opportunities:
Big developed soft drink markets;
Smaller or riskier markets;
Opportunities to invest in jump-starting channels or segments within the first two
Categories;
21st century markets; and
Turnaround opportunities as the bottler of last resort.
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The Soft Drink Industry
The soft drink industry is composed of four key players:
Franchise companies
Bottlers
Retailers
Consumers
Franchise companies are the owner of the brands. They manufacture the soft drink
concentrate and market the brands. The franchisers business enjoys high gross margins or
close to 80%. Their biggest expenses come from marketing, advertising, promotion,
market research and managing their network of bottlers.
The bottlers purchase the concentrate, mix it with sweeteners, and carbonated water,
package and distribute the finished product and promote the products locally. The
bottler’s business is very capital-intensive needing specialized-high speed equipment,
distribution trucks, warehouses and info management systems. The bottler’s gross
margins are much lower, typically in the 15-45% range. Bottler’s ultimately have the
choice on how the product is presented to the market.
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PEPSI’S STRATEGY
Pepsi’s strategy was to capitalize on this growth by leveraging its already strong market
position (at least 20% market share) in these markets
Pepsi’s Global Market Share Advantage, 1996.
Pepsi Coca-Cola
Dominican republic 35.0% 35.0%
Ethiopia 60.0% 40.0%
Guatemala 52.0% 36.0%
Gulf States 71.0% 23.0%
Jordan 80.0% 20.0%
Laos 84.0% 16.0%
Lebanon 85.0% 15.0%
Pakistan 60.5% 31.0%
Puerto Rico 46.9% 35.9%
Saudi Arabia 84.5% 11.0%
Sudan 57.7% 42.3%
Vietnam 55.0% 35.0%
Yemen 22.2% 1.0%
Sources: Morgan Stanley Dean Witter Research and Beverage Digest
Cost Breakdown
Cost Breakdown per unit of soft drinks is as follows:
Direct Cost 49.9%
Manufacturing Cost 209%
Excise Duty 4.3%
Sales & Distribution 20.0%
General & Administration 2.5%
Administration & Marketing 5.9%
Operating Margin 15.4%
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PEPSI CO. INTERNATIONAL (REPORTING STRUCTURE)
New Reporting Structure
Roger Enrico
Craig Weatherup
Peter Thompson
Central China Europe/ India Middle Russia
Asia South Africa
Mexico/
Europe Central America East
South
Spain America/
Caribbean
Note: Each business unit reports to Peter Thompson, however free flowing dialogue
exists among all particles.
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CORPORATE OFFICERS
Roger A. Enrico Massimo d’Amore
Chairman of the board and Senior Vice President
Chief Executive Officer Corporate Development
Steven S Reinemund Ronald E. Harrison
President and Senior Vice President
Chief Operating officer Global Diversity and Community Affairs
Arthur B. Anderson Tod J. Mackenzie
Senior Vice President, Senior Vice President,
Advanced Technology Corporate Communications
Peter A. Bridgman Matthew M. McKenna
Senior Vice President Senior Vice President and Treasure
and Controller
Albert P. Carey Margaret D. Moore
Senior Vice President, Senior Vice President,
Sales and Retailer Strategies Human Resources
Indra k. Nooyi
Senior Vice President
Chief Financial Officer
Robert F. Sharpe, Jr.
Senior Vice President,
Public Affairs,
General Counsel and Secretary
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Vision
• PepsiCo’s responsibility is to continually improve all aspects of the world
in which we operate environment, social, economic-creating a better
tomorrow than today.
• Tomorrow > Today
• We believe sustainability lives at the intersection of public and corporate
interest. It encompasses citizenship and corporate social responsibility,
which are about doing the right things for society and for the business. It
encompasses the health of the company, which is about fulfilling our
mission of creating financial rewards and growth.
Pepsi Co’s Mission is
We aspire to make PepsiCo the world's premier consumer Products
Company, focused on convenient foods and beverages. We seek to produce
healthy financial rewards to investors as we provide opportunities for growth and
enrichment to our employees, our business partners and the communities in which
we operate. And in everything we do, we strive for honesty, fairness and
integrity.”
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RIAZ BOTTLING (PVT)
LTD.
- 16 -
RIAZ BOTTLING (PVT) LTD.
INTRODUCTION
Ghazi Akhter in the owner of this company. He purchased this factory 21 years
back, Started with the bottling business. After a while he purchased the license
from Pepsi cola International .Now he is running a full fledge business of bottling.
He has recently launched a new product of AquaFina in Pakistan, firstly by
importing this product from Dubai, now he has taken the license of producing
Aqua Fina too.
He is making changes in the whole factory for this product because it is non-
carbonated product. I wish him best of luck.
The product line of RBL is:
PEPSI
PEPSI DIET
PEPSI TWIST
MIRINDA
TEEM
7UP
7UP DIET
MOUNTAIN DEW
The franchise area consists of the following.
1. Lahore
2. Kasur
3. Kahna
4. Pattoki
5. Bhai Phero
6. Theing More
7. Raiwind
8. Manga Mandi
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The company operates through a well-established network of a number of
distributors. The company has two types of Distribution system i.e.
Primary/Indirect delivery system
Secondary/Direct delivery system
The basic difference between the direct and the indirect delivery system is that in a
direct distribution system, the company spends its own resources while in indirect
distribution, the dealers spends their own resources on all the factors which
increased the sale. The company also has its depots in different cities. Which helps
a lot in increasing its sale and directing the distribution system? They are
Lahore
Kot Lakhpat Warehouse
Tajpura Warehouse
Bund Road Warehouse
Multan Road Warehouse
Kasur
Bhai Phero
Manga Mandi
Theing More
Raiwind
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Hierarchy of the Pepsi Riaz Bottling (Pvt.) Company Lahore
Chief Executive
Director
Departments
Productions H.R Finance Security Operation S&D
CSD Non CSD Personal
Internal
External
1
Water Treatment Recruitment
MSD Supply Chain
Cost & Budget Accounts
Audit Sales Accounts
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OBJECTIVE
The major objective of the company is to produce and supply of highest quality,
which confirms to both the national and international quality standards. The
company is committed to provide maximum level of customer satisfaction.
1. FUTURE PLANNING
The company operates through well experienced, loyal and hardworking
employees exceeding 700. The first and the most basic plan it to train them
according to the changing technology and computerized environment, and
satisfying their needs and requirements. Upgrading the plant structure and
installation of the new machinery are other plans. The company is planning to
increase its sales force and development in its infrastructure in the coming time
period.
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SWOT
ANALYSIS
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SWOT ANALYSIS
PRODUCTION DEPARTMENT
Basic production process involves the main six plants’ that further leads to
production process. At initial, there is so much complexities that must be handled
and controlled well so that to safe the mishap in further stages of production.
Now production main and basic plants are:
1. Pasteurizer Plant 4. Water Treatment Plant
2. Syrup plant 5. CO2 Plant
3. Clean in process 6. Ammonia Gas Plant
Now we can describe that how we can judge their operations separately.
1. PASTEURIZATION PLANT
The basic and main purpose of pasteurizer is to make a solution and mix it with
very little quantity of sugar. It means that high and thick intensity of liquid
prepares here. We feel much hot when we visited the pasteurizer plant. Because
here only a solution is prepared, so high temperature is required to mix water with
little quantity of sugar. Temperature may goes to 85 C.
So main purpose of this subunit is to only mix the thick solution at high
temperature.
2. SYRUP PLANT
As the name shows that here must be some important solution could be made.
Syrup is the basic solution that consists of chemicals used for further processing of
production. Here is Syrup plant, there are many tanks. There are many small pipes
with these tanks linked with pasteurizer. The sizes of the tanks are almost equal.
There are 18 tanks in syrup plant. Here, pasteurizer solution is mixed with water
and chemicals. These chemicals are the main ingredients in developing taste.
These are harmful to health if excess is used.
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These chemicals are very much costly and available in 10 liters of plastic cans.
These chemicals are not locally manufactured and available only in foreign head
office New York USA. So these chemicals are brought from foreign countries.
chemicals are available in different tastes and brands like Pepsi. 7up, Dew,
Mirinda and Teem. These are prepared according to the demand of market. It
means that if more demand is of Pepsi then chemicals used in Pepsi and vise versa.
Chemicals are separate for each brand.
3. CLEAN IN PROCESS
The main purpose of clean in process (CIP) is to clean the syrup tanks when
needed. It is required because if market demand is more of Pepsi but changed to
Dew, then tanks must be washed through CIP to make, as different chemicals are
used in different brands. Steam is present in CIP system and through brushes and
different rotators syrup tanks are washed.
These three plants are very much closely related. They also live side by side. High
steam and brushed makes easy to wash tank automatically. This plant solution is
also checked at different levels be the chemists of quality control department.
We also asked questions to the chemist’s about the proportion of sugar in single
one bottle.
Brand Sugar gm
Pepsi 28
Dew 24
Mirinda 26
7up 22
Teem 22
4. WATER TREATMENT PLANT
Water treatment plant is one of the basic plant used in Pepsi Gujrnawala NBC. The
main purpose of this plant is to extract water from earth through bores and for
further filtration process. Large pumps are used to pull water from earth. There are
9_12 tanks of large size where clean water from earth is stored. There is also one
other tank that whose purpose is to just react with water (H2O) in order to remove
- 23 -
the initial big impurities zero light and null are also helpful in storing water for
some time. They avoid water from climate always as well.
Then water from that tanks comes to next tanks that contains a mixer. The purpose
of that tank with mixer is that, it makes the water from buffers with chlorine in
order to filter the water. The only purpose of this plant is to filter the water, so
water is filtered at different stages.
There is also a tank aside by the mixer tank where chlorine is prepared and then
through small link pipes, chlorine is added to mixer tanks. After treatment with
chlorine water is brought to next tank in which there are sand and stone layers that
main purpose is to again clean impurities from water. Stones are set in such a way
that made a pyramid so when touches the lower layer of stones; it splashes the
clean water out of net layer.
After coming out of sand tank, water is then sent to another tank that is filled with
carbon. As carbon is used to absorb the phosphorus. So here the phosphorus that is
generated as a result of different reactions of water with chlorine and null is
removed and absorbed. It mean that here water containing phosphorus is treated
with carbon in order to absorb the phosphorus.
Now the ending stage comes where the water is further purified after different
chemical reactions. Water is now moved to a small tank that contains nearly 28
filters. Here the filters do their work to absorb the impurities and any other
bacteria. Water after treated to filters is passed through rays of ultra rays that are
much fast and kills the germs and bacteria. It is a tube but its intensity is much
strong. It is a strong ray of light. After the treatment of water with the ultraviolet
rays. Water is now cleaned and is distributed to different departments for further
usage and processing. Water is being checked and tested at every above stage. So
water can only be sent to other department. If it comes upon the standards of
chemist working there.
- 24 -
WATER TREATMENT PLANT
- 25 -
5. CARBON DIOXIDE PLANT
During our period of internship in Pepsi ( Lahore) factory, we also spend our two
days at the carbon dioxide plant. It is an important gas that is used in bottles.
Firstly, we saw that there is the reboilor in the carbon dioxide plant. The purpose
of reboilor is that it mixes the natural gas and air. After the mixing of natural gas
and air, both solutions is brought to the water scrabble. In this section, heavy gases
or we can say that the heavy portion of the gases is drained out with the help of
water (H2O).
Then there is absorber at the next stage in carbon dioxide plant process. Here,
monoethanolmin (MEA) mixes with the carbon dioxide and absorbs in carbon
dioxide. MEA is a chemical like that of it what gas.
After absorber, there is a heat exchanger. The main and worthy working and
purpose of heat exchanger is that here the temperature of under process gas is
checked and in most cases, it is increased, as it is the necessity for the preparation
of gas.
Stepper is the next section of the carbon dioxide plant the main function of stripper
is that here MEA and CO2 are separated from each other. Next is the water cooler.
Water cooler is like a big cylinder. Here the carbon dioxide, that is remained, is
cooled with scrubber water in order to maintain the temperature of the gas.
So dash scrubber is the next section, in this section the main working is done, i.e.
sulphur and sulpher dioxide (SO2) is removed out. Also KMNO4 (potassium
permagnate) is also added in order to remove only the inorganic impurities that
exist in gas. After aside by KMNO4 scrubber is located, the main function of that
is to just remove the organic impurities from the under process gas.
After the separation of organic and inorganic impurities, the gas is reached to a
compressor. The working and main purpose of compressor is that here the
temperature as well as the pressure of he carbon dioxdie gas is increased. Carbon
purifier and dryer are the next elements. The purpose of carbon purifier is only
removing the smell from carbon dioxide gas whereas the purpose of dryer is to
- 26 -
remove the moisture from the gas. Next the gas is brought to chiller; the purpose is
to convert gaseous from the gas into liquid form.
Lastly, there is a big cylinder like tank called as storage tank. Here the pure carbon
dioxide gas in liquid form is stored and the gas is now ready for use. Production
Department is linked with pipes to that tank and according to the need and
requirement gas is used and supplied to production department.
CO2 (Carbon Dioxide plant)
CO2 assures the product a measure of added sanitary protection and greater
shelf life. CO2 gas in addition to product carbonation, contributes to the
production process itself by:
Displacing air from water and product during processing.
Supplying counter pressure needs for some filler bowls.
CO2 enhances both beverage's taste and appearance. Carbon Dioxide imparts a
pungent, slightly acidic taste to the finished product as well as creating greater eye
appeal. Each individual product should be carbonated to a level most suited for
that flavor.
6. AMMONIA GAS PLANT:
Ammonia gas is one of the dangerous gases that exist. A very little amount of it is
sufficient to kill a man. During operations, Doctors also use of it to faint a patient
but there proportion of usage is not so much. It is also used in nuclear and atomic
bombs to cause a huge devastation.
Although it is a dangerous gas but its main advantages is that it is a very cooled
gas. We also find show and ice along with pipes of the Ammonia Gas.
First of all hot water is stored in tanks and cooling towers that are brought with the
help of pumps through condenser. Water is cooled down through accumulator that
directly lines to surge tank.
- 27 -
Gas circle in cooler that are in brink tank. From where carbon cooler makes it
more cool. Surge tanks are linked with the accumulator here that goes to ammonia
compressor.
After reading to ammonia compressor, oil separator exist whose main purposes to
separate the oil and other impurities from the gas. Although that act also is done in
the accumulator but main oil separation took place here. As gas is much cooled so
the oil existing, automatically falls down in tank and thus be separated out from
the ammonia gas. After that there are the receiver tanks whose purpose is to store
the ammonia gas. This receiver tank also linked with small pipes to the filler where
it does its operation and the temperature of filled bottles.
- 28 -
AMMONIA GAS PLANT
Cooling Tower
Pump
Conden
ser
Oil separator
Receive
Carbon
Cooler r
Surge Tank
Ammonia Compressor
Gas
Circle
in
Cooler
Accumulator in
Brine
Tank
- 29 -
HOW EMPTY BOTTLES ARE FILLED?
According to the demand of market empty bottle are brought to plant through
lifters. Here is a chain that continuously goes on without any break, the worker put
the crate on that roller and passed to the encaser whose purpose and working is
that it takes bottle from crates and make the crate empty. Crate is moved to another
roller and after washing dropped down for again usage, put the bottles to another
chain that goes to bottle washing plant.
BOTTLE WASHING PLANT:
As the roller ends, bottles reached to the filled where all empty bottles are
collected. Here is the proper check, is made that no other bottle of other brand
exist. If there is any other bottle of other brand, it is picked up by the worked
employee there. In filled, there are at a time at least 100-120 empty bottles waiting
for their turn to wash up.
Turn by turn the bottles are picked up by the machine or the bottles are infeed in
process. At a time, 36 bottles are infeeded in plan for process, as there are 36 lines
of that plant. In that plant, bottles are thoroughly washed and cleaned so that there
must be no chance for any germs and bacteria to exist in empty bottle. Here, we
cannot able to see the bottles as a sheet of iron covers all plant.
Bottles are washed here with water and chemicals mixer that are required for
killing of germs, soaps are also used for friction as well as for washing of bottles.
Here also the bottles are treated with high temperature, so that any germ and
bacteria if exist, immediately ends here. It means that here, the bottles are properly
washed and cleaned with different chemicals that are the enemies of germs.
The time taken by the washing plant exceeds mostly when there is an over load of
bottles infeed. But bottles stayed at field to wait for their turn. Here the bottles are
also washed at high temperature of 70-80 C. so the question does not arises that
any further purification is required but to maintain the standard of company bottles
are again checked out after coming out of that washing plant
- 30 -
BOTTLE WASHING PLANT
Empty
Bottle
Uncasing
Washing and
Rinsing Tank
W Castic Tank
A # 01 40-45 C
S
H
I
N
G Castic Tank
# 02 60-70 C
R
I
N Hot Water 45-50 C
S
I
N
G Warm Water 30-35 C
Fresh bottle
From water 28-30 C
Conveyor
- 31 -
OPERATORS RUN THE PLANT
After coming out of the lines of that washing plant, the bottles are again brought to
rollers that are made friction full with the help of soap and detergents. Now empty
bottles are passed in front of tube light to check that weather the bottles are fully
cleaned or not. If any bottle is found to be uncleaned means if any dust is in it, it
simply seems in front of that light.
There are 2 checked points where different employee’s workers check the
cleanliness. So there is no chance of any dirt remains. The workers appointed there
uses mask and cap’s so that their hairs and germs through breathing with the
bottles.
After the assurances of cleanliness of bottles, the bottles array on the rollers and
comes in the next section of the same plant where there is the main work is done.
Bottles are moved to that portion finally where the liquid/ Cyrup comes out of
syrup is filled in those empty bottles. The three important workers are done here:
Filling of Cyrup
Filling of Gas
Sealing of Bottles
Filling of Cyrup takes no time. The action of machines for that work is very much
fast. In the blink of eye, all three works are done. After filling of Cyrup the gas that
is Carbon dioxide (CO2) is filled in the bottles. The procedure of Carbondioxde
gas will be discussed later. The bottles when come out of the washing plant are
much hot become as discussed above that nearly 70-80C of temperature is treated
with the bottles.
For the sake of cooled down of bottles, Ammonia gas is used. Although it is a very
much dangerous gas but it’s positive aspect is that it is much cooled gas. As during
process, high temperature is needed, so the bottles after sealing are treated with
that Ammonia gas in order to immediately low down the temperature of the filled
sealed bottles. Pepsi (Lahore) factory has it’s own plant of preparing Ammonia gas
that will be discussed later on.
- 32 -
So after sealing of bottles are again put onto the conveyer/ roller for further
process. Now bottles are brought in front of a high beam light called coding
process. Here the high intensity of light is thrown at the neck of bottle, so that the
bottles is stamped out. This stamp / code has some writing on it as:
o Operator name
o Retail price
o Manufacturing date
The purpose of that coding is that there should no be the chance for retailers to buy
faced bottles of local manufactures. One purpose is also that the operator should be
required after wards if there is some mishap will occur in bottles like if some thing
remained in bottles, wrapper etc. Each bottles contains the equal proportion of
liquid syrup gas and similar type of sealing.
There is also a proper checking made by the chemists of quality control
department at different levels just in order to maintain the standard of the bottles.
After all process, bottles are again brought to, light conveyer to check out the
cleanliness of bottles once again. Here also efficient worker are on duty who
readily put of the bottle from conveyer, but in most cases it does not happens. One
important thing is checked here that either the same level of Cyrup is filled in the
bottles or not. If any bottle having less or more liquid than needed, is also put off
from the conveyer.
Now the bottles are brought through conveyer to decaser. Decaser is also like
encaser but works opposite to encaser. Encaser picks up the bottles from crates to
conveyer where as decaser pick the bottles from conveyer and put them into the
crates.
Filling the crated are ready to use and likewise picked up by the lifter from where
after, these bottles will be stored in Gowdown’s and used as demand need’s in the
market.
- 33 -
QUALITY CONTROL DEPARTMENT
This department has very importance in any beverage company or Franchise
because it check or produce its products according to the ISO into the Market. It
does different tests of its products.
BRIX INVERSION TEST
The purpose is to break the sugar molecule into simple molecule of glucose and
fructose, Inversion is performed to confirm on-line brix target .the test is taken
after an hour of starting tank on production line.
FILL HEIGHT TEST
The purpose of fill height measurement is to verify that containers are consistently
filled to the correct level as established depending upon package size. Fill height is
the distance from the top of bottle to the meniscus of the liquid.
BRIX BY HYDROMETER TEST
The purpose is to measure by weight, the percent solids of sugar in simple syrup,
finished syrup, control drinks and final beverage. Brix is defined as by weight
percent solids of sugar .
PH TESTING
pH scale indicates the amount of acidity or alkalinity. pH is measured for Raw
water, treated water, control drink, finished beverage, T.A. testing and incoming
raw material. The purpose of the test is to define the line Brix. This also helps in
predicting the sensory attributes of the beverage.
- 34 -
TITRATABLE ACIDITY TEST
The purpose of the test is to measure the acidity level in the test sample.
INCOMING RAW MATERIAL TESTING
Sodium hydroxide (Caustic Soda) %purity test
Processing material calcium chloride test
Conductivity Ash in granular sugar by conductivity meter:
The purpose is to test the incoming sugar for its ash contents in order to define
quality. Sugar ash is primary indicator of sugar sensory performance in a beverage.
It is comprised of organic and in organic salts left over from the refining process.
The sugar is used in syrup making.
PROCESSING MATERIALS FERROUS SULFATE TEST: -
The chemical is used in syrup water treatment.
PROCESSING MATERIALS ACTIVATED GRANULAR CARBON
TEST: -
The chemical is used in syrup making and water treatment.
CROWN CORKS/CAPS INSPECTION/ ATTRIBUTE ANALYSIS: -
The purpose is to ensure that incoming lot of crown corks/caps fulfills the
appearance requirement and free from defects. Crown caps are used for packing
(sealing) of bottles after filling. Crowns and closures should match supplier
shipment label and purchase order. The characteristics considered in the analysis
are outside printing, inside printing, color, shell or liner flash, cracks, band etc.
GLASS BOTTLES INSPECTION/ ATTRIBUTE ANALYSIS:
The purpose is to identify the visual defects effecting the beverage quality in the
incoming glass. The defects are categorized as following. Very critical defects:
Any defect dangerous for personnel.
- 35 -
Critical defects: The defects that result in hazardous or unsafe conditions for
usmg, maintaining or depending upon the product. These could be Struck glass,
Loose glass, False bottoms, Bird, Swings. Major defects: The defect likely to result
in failure or reduce materially the usability of the product for intended purpose.
The defects are Cracks, Chocked necks, Bent neck, Stones over 1.6mm (1/16 inch)
etc. Minor defects: a minor defect is departure from established standards having
little bearing on the effective use. These could be Brush marks, Seeds, Birty
molds, Dirty finish etc.
- 36 -
HYDRATED LIME TEST
Hydrated lime is used in water treatment ( Reaction tank).
TASTE, ODOR & APPEARANCE TEST: GRANULAR SUGAR: -
It is granular sugar test for its sensory attributes for consignment acceptance or
rejection for every delivery.
CO2 purity test: CO2 used in Carbocooler for absorption.
Chlorine (sodium hypo chlorite) test: Used in water treatment.
POST MIX TANKS INSPECTION: -
Post Mix is undiluted fountain syrup that is delivered to retailers in transfer tanks.
The inspection is performed before filling new or market returned tanks. A form is
filled with the following format
Pre-
Tank Safety
Product Appearance inspection Washing Filling Performed
# Wolves
O-ring
POST MIX TANKS WASHING: -
It is in order to eliminate the chances of contamination. The steps are Rinse
with treated water:
Clean with detergent
Rinse with treated water
Sanitize with chlorine
Rinse with treated water
Sanitize with steam
- 37 -
SUGGESTIONS
In the production hall, very concerned person must use masks, gloves and
safety glasses.
Earplugs should be provided to the people working in the production hall.
Proper sitting room should be provided to CO2 supervisor to keep the spare
parts, tools and documents safely.
Labor should wear neat and clean uniform.
Proper arrangement should be for draining
Many under 18 age boys are working in production
- 38 -
PCI QUALITY RATING
PCI collects product samples from market, tests them in their labs against
standards, sends monthly test results summary to their franchisers and allots rating
(colors) to franchisers after every three months. The PCI Operations Director -
Quality Systems for Middle East, North Africa & Pakistan sends rating of 44
factories including NBC. The color rating is based on following criteria.
Color Rating Previous New
Sensory- Ana~cal Sensory Analytical
Red 80 % 85 %
> 70 % 70 % 80 % 70- 85 % > 85 %
> 85 % 80- 90 % > 85 % 85 - 90 %
Green > 85 % > 90 % > 85 % > 90 %
Green both Sensory/ Analytical good
Yellow Sensory Satisfactory/Analytically good
Or
Sensory good/ Analytically satisfactory
Orange Sensory unsatisfactory/ Analytically satisfactory
Or
Sensory satisfactory/ Analytically unsatisfactory
Red Both Sensory/ Analytically unsatisfactory
NBC has been in yellow color after the standard percentage is Increased.
- 39 -
SUPPLY CHAIN
DEPARTMENT
- 40 -
STRUCTURE OF SUPPLY CHAIN DEPARTMENT
Shahid Rathore
Sale & Distribution Manager (SDM)
Imran Burni
Supply chain Manager(SCM)
Mujahid Hussain Shakeel Ahmed
Logistic Manager Filled Stock (LM-FS) Logistic Manager Glass & Materials (LM-GM)
Syed Wajid Ali
Shift Manager Plant Supplies (SM-PS)
Shift Manager Shift Manager (1 x 3 Shifts + 1) = 4
Shipping Coordination Floor Management
Afzal Arham
Shift Incharge Glass Shift Incharge RM
(1 x 3 Shifts) = 3 Zamin (2 x 3 Shifts + 1) = 7
Shift Incharge Floor Mgmt
(1 x 3 Shifts + 1) = 4
Helpers RM
(5 x3 shifts) = 15
Forklift Drivers Forklift Driver
(Empties 3 Forklifts) (Inj Mld 1 ForkLift)
(3 x 3 shifts) = 9
Carpenter 1
Helpers Empty
(Sale Vehicles)
(2 x 3 shifts) = 6
- 41 -
BACKGROUND OF SUPPLY CHAIN DEPARTMENT
In the year 2004 when Riaz Bottlers Private Limited experienced an increasing
sales trend in the market and have made sizeable investments to enhance their
production capability, it was necessary to review their current Primary Distribution
structure and re-align it to coup with the evolving trends in sales and production.
OBJECTIVES
The new structure has been named “Supply Chain Department (SCD)” and is
designed to accommodate the following:
1. Bring the management of Primary Distribution, Direct Distribution form Plant,
Filled Stock, Returnable Glass / Shells and Logistics of supplies to Plant under the
umbrella of Supply Chain Department.
2. Shifting and enforcement of current Empty Checking System from Plant to
Warehouses in order to have a cleaner and quicker operation at the Plant
Professional development of Human Resource in the Supply Chain Department
(SCD).
SUPPLY CHAIN MANAGER
Mr. Imran Burney is the Supply Chain Manager and heads the Supply Chain
Department. He did his MBA in 1993 from Punjab College of Business
Administration. He did his second MBA in Technology Management in 1995 from
Asian Institute of Technology in Bangkok, Thailand. His Primary work experience
of seven years is with Philips Pakistan as Distribution Manager responsible for
country wide warehousing and distribution network of Philips in Pakistan. Mr.
Imran joined Riaz Botllers last year as Plant Warehouse Manager, and reports to
Shahid Rathore, Sales & Distribution Manager.
- 42 -
Supply Chain Department has two major sections.
1. Filled Stock
The first sub department “Filled Stock” is responsible for managing all filled
stocks at plant and warehouses. Mr. Mujahid Hussian heads this section as
“Logistic Manager – Filled Stocks (LMFS). Mujahid did his M sc in Statistics and
MBA (Major in Management) from Cogent Institute of Management &
Information Technology, Lahore.
His primary experience is with Shell Pakistan for five years in operations and
distributions. He also independently and successfully managed North Warehouse.
2. Glass And Materials
The second sub department “Glass And Materials” is responsible for ensuring
consistent and timely supply of all materials to production lines. It also ensures
clean supply of RB bottles for filling in order to ensure consistently high quality
results in OOR program of PI. Mr. Shakeel Ahmed Chughtai heads this section as
“ Logistic Manager – Glass & Materials (LMGM)”. He has worked with Jang
group as Manager Warehouses and Disposal. He has further experience in store
management with Schazoo labs and Ravi glass. He joined Riaz Bottlers early last
year and assisted Shahid Rathore and Imran Burney in various distribution and
warehousing functions.
- 43 -
PAYROLL SYSTEM
There is separate payroll system for NBC and Friend's Agency. The output of the
system is pay slips and payroll report at the end of month. Payroll report
incorporates.
All these reports are extremely important in the day-to-day operations of the
abovementioned departments. In addition, customized reports can be obtained as
required. The system is implemented at each depot as well.
MARKETING INFORMATION SYSTEM: -
MKIS is a very strong software aimed to keep current record of each & every
outlet of the franchise. Through this system, management can come to know
Name & address of each outlet. ` T.O.T details
Price details
Empty details
Package details
Publicity position
Quality status
The system is designed in such a way that reports can be obtained about outlets:
Distributor & area wise
Route wise
District wise
The system is useful in accessing market & investment position in each area.
SUGGESTIONS: -
The future programs of the department is:
Networking with depots
Internet development within organization
There should be formal web site and e-mail accounts of employees in the
organization. A small computer books library will help the staff to add their skills.
- 44 -
MIS DEPARTMENT
In today's fast moving business environment, organizations are rapidly moving
towards computerization and information systems.
In this era of rapid of frequent changes, it provides current, reliable and accurate
information to the management. This information is very useful in decision
making. Information systems are generally defined as the system which provide
regular and current information to management for decision making.
MIS department of RBL is playing a vital role in this regard. The department is
working with a small setup & satisfying the information requirements the
organization with a smart staff and developed setup, the department has eliminated
much work load, paper work and saved a lot previous time.
The software system have two basic parts and these are developed in some
programming language. The post important part of any information system is
database. The database is the basic structure of data and defines how data is
organized, stored and retired from memory. The database operates at the back end.
At the front end, data is entered and retired through input screens.
The MIS department is currently performing its day-to-day operations as well as
involved in software development. It also provide technical assistance and training
to other departments. At the time oracle 8.0 is in execution. All computer in the
department are networked by LAN (local area network) the department has
licensed software working. The following systems are working in the department.
PLANT EFFICIENCY SYSTEM: -
The system is designed to keep current information about what is going on in
production & plants. The system is helpful in getting production figures and
reports about line utilization, line efficiency, mechanical efficiency, employee
code, name, basic salary, allowances, tax, net pay and any other adjustments
supplied by time office.
- 45 -
SALES & DISTRIBUTION SYSTEM: -
The most comprehensive system of MIS is sales and distribution system. It
incorporates
Sales system
Cash system
Shipping system
Post mix system
The basic input of this system is empties slip, liquid out slip, full in slip by order
sips. empty short slip, the reports of the system are
load report ( dealer wise, depot wise )
settlement sheet ( dealer wise, depot wise )
Shipping shift summary.
Daily liquid out report.
Pending report.
Agent wise load out summary.
Agent wise sales summary.
District wise sales summary.
Computerize sales statements
(monthly, semi annually, annually)
Cash report
Filled inspection, breakage, actual production, paid time, stoppage, production
time etc.
EXCISE AND SALES TAX SYSTEM: -
RBL is a regular tax payer of govt. of Pakistan. it pays excise and sales tax
according to its production and sales. the system is developed to keep complete
record of the tax transactions. stock of the product at the RG I is maintained after
production. the stock is moved to DP ( duty paid) godown after its clearance by
excise inspector and payment of 15 % tax. at RG I, closing stock of a day is
opening RG I stock plus day's production and minus tax clearance.
- 46 -
WORK DONE
BY ME
- 47 -
SECURITY DEPARTMENT
VISION
To provide the foolproof security and facilitate the senior
management with the best of capabilities and keep the company
banner high. A security based on continually changes environment
(Internal and external) business quickly adopted which can be used
as a best practice tool, best technique in a very cost effecting security
best value least expense. And We are committed to dynamic growth
and service excellence built upon our heritage of traditional
exclusive security In the wake of threat perception & existing
realities, to recommend security surveillance requirement to
augment the existing security arrangements.
PEPSI CO MISSION STATEMENT
Our mission is to be the security department recognized as the
backbone in the RBL in any aspect. We are committed to train and
develop the skill of our staff members. We allow them to grow in
their respective careers and provide the best training, which are the
expectations of the organization. We are committed to achieve the
company target and object in the shape of sharp motivated and well
trained team.
PRINCIPLES
Honesty
Commitment and Dedication
Foresight ness
Dependable security
Courageous and bold
Transparency in Recruitment
Proactive and continuous alertness
- 48 -
THREAT PERCEPTION
a. Unauthorized entry/hostile intruder
b. Theft inner/outer
c. Misappropriation
d. Confidence of company at large
e. Environment assessment
f. Changing violently public sentimental
g. Intensive and business activity
h. Intensively competent within the Pepsi system& outside of Pepsi
system
i. Cash based business
j. Plant protection, Warehouses protection , Vehicles protection, and
highly inflammable environment
k. Information passing out, constant communication (terrorist)
l. Petty internal crime, environment
m. Metal Detector, Weapon, Short Gun
n. Flood, Heavy rain season, no blockage in any case ( Consult
production manager & TOM- E)
o. Robbery
p. Strike
q. Mechanical sabotage/Physical damage/power outrage
a) Indiscriminate firing
b) Political motivate attempt.
c) Public violence
d) Business reputation
1. Dirty/unqualified production
2. Cross franchise
3. Fake product against our brand
- 49 -
EVALUATION
1. CCTV Cameras
2. Walk Through Gate
3. Walky Talky
4. Metal Detector
5. Rapid Action Force
a. 1x Security Officer
b. 1x Supervisor
c. 4x Security Guard/Gunman
OBJECTIVE
To provide trouble free security environment.
To be more courteous while dealing with staff/guest or RBL staff.
Careful & comprehensive checking procedure.
To protect most sensitive area i.e. plant / concentrate room of factory.
To strengthen internal relationship between senior management and
workers.
To protect the assets of the factory.
To provide partial vehicle protection of RBL vehicles.
To establishment of intelligent set up to get information before hand.
To pursue / investigate and coordinate with police authorities regarding any
other matter related to factory.
To perform with dignity and honors.
To stop the stranger and unauthorized entry in factory area.
To identify unattended bags/ parcels.
- 50 -
HUMAN RESOURCE DEVELOPMENT
Human Resource department is one of most important part of any organization,
which performs the activities for staffing the organization and sustaining high
employee performance. The Human Resource mfg. process is as follow.
RECRUITMENT PROCEDURE IN RBL:
Major sources of potential job candidates are
Internal Search Advertisement
Employees Referrals
School placement
Selection devices used for selection of graduates, masters & MBAs are
Application form written tests (English, Math, business/Engineering essay)
Interviews for worker level job where qualification and skill requirement is low,
this formal procedure is not adopted rather candidates abilities are fledged by
department head and sent to factory manager for approval. Orientation is the
introduction of new into his or her job & the organization. This is for few selected
persons in RBL training is generally on the job employees in all departments are
bearing by the time or with the help of seniors.
The organization provides compensation benefits to its employees such as:
Accommodation
Holidays
14 Annual
1 O Casual
16 Medical with 112 pay. Annual pay
increment & bonus.
Medical facility
Mess
Time office maintains personal file of each employee, daily attendance, leaves,
incentives & commission etc., job descriptions and organizational charth are
available for all employees. Employees are rotated from one department/post to
other on request or when required. Payroll system.
- 51 -
OBSERVATION & SUGGESTIONS
There should be proper planning by:
Assessing current human resource stands & generating human resources
inventory.
Assessing future human resources needs by organization’s strategies &
future programs.
After assessing current capabilities of future needs a program should be
developed to have right person for the right job & at right time.
At the moment, HR department is itself facing staffing problem & it seems
to be non existent.
The selection process through which candidates pass is very slow & time
consuming pass is very slow and time consuming. Candidate have to sit day
long waiting for management approval to start test & then. There is service
of interviews which have no time table. It is generally three four days
patience test & trouble some for candidates from other cities or already
doing jobs.
For the medical bills and small loan employees need to get managing
director’s approvals and then pass through a long procedure. It should be
simplified. Department heads should be authorized to approved loans and
medical bills up to a certain amount.
Computer & job related aptitude test should also be made part of selection
tests to have better job personality fit.
Formal training is conducted but that is due to ISO department not with the
planning/efforts of HR department.
Performance appraisal has only once but it was a useless exercise because
its results were not used in future planning or changes. Performance
appraisal should be conducted:
To know development & training needs of employees.
To get performance feed back.
Anticipate direction for future performance
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To change/ compensation system.
There is not idea of planned career development in RBL. Career development can
be in term of job rotation, transfer & promotion. It improves the organization's
ability to attract of retain talented people, anticipating change & helping
employees to learn new skills and improve utilization of a personal abilities.
Motivation is the willingness to exert high level of effort to reach organizational
goals. The general level of motivation in RBL employees is very low and in RBL
employees is low and they are dissatisfied with their jobs and pay scales. Only best
employer of the month program is implemented highlight employees whose work
performance is excellent.
There would be lobbies or affiliations in the organization. These should be
canalized in positive approach e.g. mentoring, communication link instead of
source of conflicts.
Teams (functional, self-managed, cross functional, problem solving) should bl.:
USl: to speed decisions, increase performance, facilitate cooperation & improve
employee morale.
There must be some channel to communicate employees problems / suggestions /
comments directly to top management e.g. suggestion box. These suggestions
should be discussed in quality control meetings.
No attitude surveyor any internal research has ever conducted by the HR
department to get insight of employees thinking.
Once best employee of the month award be for each department.
They output criteria of employee’s personality organizational characteristics,
group, team or departmental variables and organization's structure and Human
Resource policies are performance Absenteeism turnover & job satisfaction.
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Employees in RBL are performing well but they have low level of motivation.
Absenteeism is controlled because total forty annual leaves are allowed but more
important reason it that employees feel self-responsibility. However the alarming
indicators are turnover and job satisfaction. The organization is facing high
turnover rate and employees are dissatisfied with their jobs and pay scales.
Experienced staff is leaving the organization or searching for opportunities. With
the kind attention and efforts of general manager & deputy general manager, the
situation is improving. Qualified & young people are joining the organization. The
pay scales of metric, intermediate & graduate employees are revised. However
much more is needed to do in this regard.
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PROCUREMENT & STORES DEPARTMENT
The department is responsible for all the purchases (including raw material),
storage and issue of materials to various departments.
SUPPLIER SELECTION
Selection of right supplier is an important job being performed by the department.
Selection criteria differs from one category to another category.
CRITICAL
These items are very much sensitive and one has to be cautious about making final
decision about suppliers, in RBL following factors are taken into consideration
while selecting supplier for these items
Past performance record
PCI approved suppliers
Site audit
Self assessment through questionnaire
Product inspection and testing
Compliance by any appropriate standards or specifications
TECHNICAL/GENERAL ITEMS
While selecting a supplier for technical and general item any of the following
method is used.
Past performance record
Competitive price in market
Delivery requirement of RBL
Availability of items in the market
Purchases can be divided easily into
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RAW MATERIAL PURCHASES
For the raw material purchases, there is a list of suppliers approved by Production
Manager, Quality Control Manager and Procurement Manager based on their
product quality. The procedure is that product samples are tested in the laboratory
and then after complete satisfaction of quality, supplier is approved and sends his
quotation. RBL has approved supplier list for following materials
Concentrate Plastic shells
Sugar Activated carbon
Glass bottles Crown corks Closures Packing cartons Pet bottles
CO2 gas Hyflo super
Glass bottles Ferrous sulfate
Crown corks Caustic soda
Closures Bleaching liquid
Packing cartons Sodium chloride
Pet bottles Lime
There are raw material specifications and special instructions regarding:
Chemical properties
Physical properties
Packaging
Sampling details
Storage & handling
Rejections
Production department sends monthly demand and quotations for the quantity net
of current stock and wastage are invited.
Material requirement by Production dept.
Opening/closing stock adjustment by Stores
Material to be purchased by Procurement dept.
Some time purchase quantity decisions are made on the space available in the
store. After the material is purchased and Gate checking, it is again send to quality
laboratory by FIFO rule. On approval, a lot # and batch # is assigned to the
material. The transportation is by road.
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GENERAL PURCHASES
For the general purchases like stationary, technical parts, supplies etc issue
requisition slip (in case required material is in the store) or purchase requisition
slip ( in case required material is not in the store stock) signed by concerned
department head is send to Procurement Manager and Purchasers of procurement
department make the purchase.
Store has categorized material in four labels
Mechanical
General
Stationary
General Electric
Material is organized in store with a Store Label placed showing code #,
Nomenclature, Ledger page # and location.
The documents/forms/reports used/generated in the department are:
Purchase requisition slip
Purchase order
Receiving voucher
Ledger (posting on ledger)
Store return voucher
Internal gate pass
Temporary gate pass
Permanent gate pass
Daily activity report
Daily stock taking report
TOT report
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SALES & MARKETING
Sale and marketing is the most important department of any beverage company.
To maximize the sales and profit, this department should be proper planed and
managed. Riaz Bottling Co. Pvt. has a very aggressive and hardworking Sales and
marketing department. Due to its efforts the company has got the first position in
sales in 1993 through out the Pakistan.
Following are the major contents of this department:
Marketing Development
Outlet
Tactical analysis and routine planning of market strategies.
Competition activity monitoring
T.O. Ts. management
Publicity management
Sensory indices management
Time management
MARKET DEVELOPMENT
The first and the most basic job of the sales and marketing department is to plan,
develop and make targets. And also to make strategies to achieve those targets and
develop the market. The following major factors are considered in this respect.
Collection of all the data about each and every distributors/ soutlets,
about its sale, volume, growth and exclusivity.
Finding the gaps in the market where there is a potential.
Finding the points where competitor is strong and hoe we can break
this point.
Location of non traditional shops where potential is available for the
beverage.
Different offers must be given to break the competitors point or win
the mix point.
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OUTLET
Outlets play an important role in strengthening the market. By monitoring them
you can build your market, have their loyalty and increase your sale. Sales persons
should continuously visit outlets, listen their complaints and satisfy their needs and
requirements. They must have information about each and every outlet, its growth,
volume and type business. Proper check must be maintained to get the feedback
from the shopkeepers
TACTICAL ANALYSIS & ROUTINE PLANNING OF
MARKET STRATEGIES: -
On the market side the sales people gather information and on the bases of these
information they further plan and improve their strategies.
Checking of the designated area, its sale, volume and growth.
Calculation of share n brands and package wise
Calculation of daily sales achievements on monthly target basis
Location of the poor performance factors and analyzing their cause
Finding their solution and getting the approval for its execution.
Planning for a schedule for the designated area.
Visiting the area according to the plan and reporting it to the higher
management
COMPETITION ACTIVITY MONITORING
On the other hand a constant intention have been given to the competitors
activities, strategies and offers. They have been compared with ours and updated
according to the environment
Following are the key factors to be noted in respect of the competitor:
Nothing the competitors investments i.e. T.O.Ts., Publicity,
Discounting, Promotional schemes, empty management,
Cash credit, Vehicles injection (etc.)
Reporting to the higher authority.
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T.O.Ts. MANAGEMENT
T.O.Ts means list of items available in a shop, which helps to sell our product
conveniently on priority basis. It is one of the major investments being made by
the company. T.O.Ts. Management completely depends upon the Sales force. The
factors to be considered are
Data collection about the sale, volume, growth, profitability, size and place
of the shop
Record of all the T.O.Ts., given to the shopkeeper.
Further plan for the injection of T .0. Ts.
Checking all the equipment time by time any removing their complaints
PUBLICITY MANAGEMENT (DEPARTMENT)
To promote the image of the company and its products, publicity is a major tool.
Publicity plays an important role in the promoting the image in the consumer's
minds.
Publicity involves Banners, posters, signings, gifts and schemes. Publicity budget
is spent by focusing the followings.
Location of the area.
Arranging the sources and requirements and making priority lists
Carefully arranging the publicity execution.
SENSORY INDICES LEVELS MEASURES
Sensory measures means to check the quality and standards through the senses.
The colour, taste, appearance and other specimens of the bottle, must be checked
time by time so that the standards of the PCI may not doubted
EMPTY & LOAD MANAGEMENT
Empty management means full utilization of available empty at higest productive
Trippage level within the franchise area.
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There are two types of empty management i.e.
Empty management within distributors & within Salesman.
The sales and marketing department have to manage, plan and make strategies a
about the distribution of empty whether it is on credit or cash. The department also
has to handle and manage load. Whether it is on vehicles or shipping or
distributors or at the depots level. At shipping level load management can be
divided into
Package wise
Brand wise
Demand wise
HOW TO MANAGE THE EMPTY
Following are the steps, which are necessary to manage the empty
Estimation of empty available (within shopkeeper)
Estimation of empty available ( within distributors )
Previous sales record of each specific area within distributors.
Trippage level tracking of each distributor for the last two years at least.
Estimation of sales volume growth for at least last three years
(Distributors or salesman rout)
Estimation of empty injection volume for at least three years
(Distributors or salesman rout)
Comparison of empty Trippage from the one to other distributors/salesman
rout.
Factors causing poor Trippage
Factors involved causing hyper Trippage.
Empty plan (Forecasting) based on the previous years Trippage
Level & Percentage increase of empty injection.
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TIME MANAGEMENT
Time management is the most important factor especially in a Beverage industry,
because it is wholly dependent on Sales and Marketing Department. And without
proper management of time this department cannot run. Following are the key
factors, which are to be considered necessary for the management of time:
Drop size of a specific area.
Tonnage of the vehicle for that specific area.
Total operational time management
Idle time monitoring and elimination.
Calculation of outlet knocks time.
Calculation of available knock time for each outlet of a specific area.
Define and ideal knock time for an outlet.
Setting of a comprehensive plan, by considering all the above factors
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EXCISE DEPARTMENT
RBL is a regular taxpayer of excise and sales tax to govt. the procedure is that
production per hour of each plant is counted and noted in cases and bottles. The
excise duty and sales tax is calculated as per govt. rate. The liquid stock of RG 1 is
moved to DP godown after clearance and daily deposit of sales tax. The company
and all its dealers pay sales tax at the end of each month. Sales tax and excise duty
is also paid on some raw material as sugar, crown caps, concentrate etc. the
department maintains following documents
RG 1 register
RG2 register
AR 1 form
Daily production report (shift bases)
ACL register
The department is concerned with collector rate of central excise and sales
tax, production department, shipping department and MIS department.
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CASH DEPARTMENT
Cash department does cash handling (collection and payment). The major part of
cash collection is from dealers and salesman based on their settlement sheet and
daily sales report. Cash payment is done on the vouchers issued by accounts
department. Payments include employee's pay, bills, allowances, procurement
expenditures and day to day general expenses.
ACCOUNTS DEPARTMENT
The job of the department is to maintain books of accounts. There are following
main activities of accounts.
Issuance of purchase vouchers for raw material, plant and machinery and
general store items
Check payment of payroll to employees including wages, overtime, bonuses
etc.
Handling of monthly tax statements.
Computerized general ledger system is working and shows the result of each
transaction up to balance sheet and income/profit and loss statement
GENERAL LEDGER SYSTEM
General ledger system of Accounts is on line from Ist July, 2000.the system logs
all accounts and shows balance sheet & profit & loss statement incorporating every
transaction.
PAYROLL SYSTEM
There is separate payroll system for RBL and Friend's Agency. The output of the
system is pay slips and payroll report at the end of month. Payroll report
incorporates.
All these reports are extremely important in the day-to-day operations of the
abovementioned departments. In addition, customized reports can be obtained as
required. The system is implemented at each depot as well.
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MARKETING INFORMATION SYSTEM: -
MKIS is a very strong software aimed to keep current record of each & every
outlet of the franchise. Through this system, management can come to know
Name & address of each outlet. ` T.O.T details
Price details
Empty details
Package details
Publicity position
Quality status
The system is designed in such a way that reports can be obtained about outlets:
Distributor & area wise
Route wise
District wise
The system is useful in accessing market & investment position in each area.
SUGGESTIONS
The future programs of the department is:
Networking with depots
Internet development within organization
There should be formal web site and e-mail accounts of employees in the
organization. A small computer books library will help the staff to add their skills.
SHIPPING DEPARTMENT:
During our stay in Pepsi, we also spend our 4 days at the shipping department of
he Pepsi cola (Lahore) factory. Main working and supplies to the whole market
comes under it. One can may say that it is the main department of any
multinational company. If a company has a strong shipping department, the more
the efficient production con be brought about.
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After production completed, the bottles in crates are brought to the Gowdown’s of
the Pepsi. As there are, as we observed, seven main and big Gowdown’s of Pepsi
factory Lahore. These all are located nearly the production department, within the
factory area.
As the bottles are stored in Gowdown’s, so according to the order and demand in
particular area, that brand is supplied to that area. As Lahore Pepsi factory is
working on a large scale most of the important cities of Punjab comes under the
supply area of that factory.
All shipping cell are found to be very much and we found no driver and bus that
stayed at Gowdown’s more that 6-8 hours. They go on carrying their jobs with full
enthusiasm. They made supplies on time to many distributors spread over a long
route on a map.
Supervisors at the parking area and Gowdown’s were found to be busy in entering
the time of truck in empty and then filled one’s. We found to be them as honest to
their respective jobs. They are only honest because of the good and nice
management in shape of higher authorities. Procedure of shipping is that when
order comes like in Sialkot a truck is sent to that required destination. Here the
salesman got the complete information about distribution and note on a record
sheet that how much crates are gives to a particular distributor and return back and
similarly when next order again met, the filled produced there and empty one are
brought back. The distributors send the bottles to retailers at their own and finelly
bottle reached to the end users. This cycle goes on, goes on and the profit of Pepsi
and production in increasing day by day.
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MANAGEMENT DEPARTMENT
The structure of RBL Management department is simple. It is headed by Factory
Owner under which Coordinator works. The main functions of the deptartment are
Problem I complaint handling
Corrective action request (Cars)
Periodic visits/ Internal audits
Conducting of QC meetings
The Management meetings are held quarterly. F.O., Factory Manager, Production
Manager, Plant Manager, QC manager, HR Manager and Marketing and Sale
Manager, Account and Cash Manager, Excise Managerand Advertising Manager
participate in these meeting.
ADVANTAGES OF MANAGEMENT MEETING
System Improvement
Better image of the product
Reduction of losses
Improved efficiency
Complete documentation
Standardized raw material
Preservative maintenance of equipment
Improved productivity
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SUGGESTIONS
There are following problems in successful execution of the system:
Unwilling to provide extensive training
Criticism on each other
Little self study
Lack of recognition
It should be recognized that it is not only a department program But It is creating
and maintaining an organizational environment where quality can be consistently
achieved. People across the organization and at all levels should be involved.
The Management Meeting result increase in sales and market share, recognition in
domestic market, high company reputation and customers confidence and has
resulted no significant impact on other factors.
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CONCLUSION
Keeping in view the whole internship experience, I CONCLUDED;
The Riaz Bottlers Company is no doubt the successful large scale
organization, the huge number of customers are the true evident of it.
The Riaz Bottlers Company is enjoying the good reputation in the
Beverages Industries.
The Riaz Bottlers Company has loyal employees who truly work for
their organization and trying to take it on the top of the Beverages
Industries.
The Company is seriously noticing the needs of its customers and
introducing new products in Beverages Industries very soon.
The Riaz Bottlers Company has all the ingredients of being a top level
company and to some extent it has proved it, the need is only to work
on some areas which, I hope , after my this internship report would be
noticed.
I wish the very best to Riaz Bottlers Company as it provided me huge
learning opportunities to come and closely observe that how the
successful organizations work.
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