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Pepsi - DOC

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Table of Contents


  1. History of Pepsi Cola
  2. Formation of Pepsi Cola Corporation
  3. Reformulation of Pepsi Cola syrup formula
  4. Formation of Pepsi Cola incorporation
  5. Setup of Pepsi Cola
  6. Pepsi Cola Multan
  7. Mission of Company
  8. Slogans through time
  9. Major Competitors
  10. Coca Cola Mission Statement
  11. Coca Cola Objective
  12. Pepsi Today
  13. Business Envoronment
  14. Marketing Mix
  15. Strategic Marketing
  16. Organizational Culture
  17. How new employees learn culture in Shamim & Co.
  18. Reasons of popularity of Pepsi Cola in Pakistan
  19. Consumer Requirement
  20. Market segmentation & Target Marketing
  21. Pepsi Cola Products
  22. Pepsi Cola Ingredients
  23. Pepsi Cola brand list
  24. Future Planning
  25. Latest Market share statistics
  26. Shamim & Co Pvt Ltd
  27. Organization Hierarchy
  28. Distribution Channels
  29. 8 steps of Pepsi Cola Sales
  30. Swot Analysis
  31. Competitive Priorities
  32. Decision Making in Shamim & Co


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  33. Organization Structure
  34. Shamim & Co Departments
  35. Administration Department
  36. Sales/Marketing Department
  37. Finance Department
  38. Human Resource Department
  39. Production Department
  40. Shipping Department




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41. MIS Department
42. Cash Department
43. Accounts Department
44. Excise Department
45. Post Mix Department
46. Inventory Management
47. Supply Chain Department
48. Capacity. Location & Layouts
49. Forecasting
50. Material Requirement Planning
51. Quality Control
52. Problems
53. Recommendations for Company




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                                    3
                                INTRODUCTION

HISTORY OF PEPSI COLA
In 1893 Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins
experimenting with many different soft drinks. In 1898, one of Caleb's formulations,
known as "Brad's Drink" a combination of carbonated water, sugar, vanilla, rare oils
and cola nuts, is renamed "Pepsi-Cola". On August 28, 1898, Pepsi-Cola received its
first logo.
In 1902, he applied for a trademark with the U.S. Patent Office, Washington D.C., and
formed the first Pepsi-Cola Company. 1905, Pepsi-Cola's first bottling franchises were
established in Charlotte and Durham, North Carolina. In 1906, Pepsi gets another logo
change, the third in eight years. The modified script logo is created with the slogan, "The
Original Pure Food Drink". In 1920, Pepsi theme line speaks to the consumer with
"Drink Pepsi-Cola, it will satisfy you". In 1923, Pepsi-Cola Company was declared
bankrupt and its assets were sold to a North Carolina concern, Craven Holding
Corporation, for $30,000.


FORMATION OF PEPSI COLA CORPORATION
Roy C. Megargel, a Wall Street broker, bought the Pepsi trademark, business and good
will from Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation.
In 1928, after five continuous losing years, Megargel reorganized his company as the
National Pepsi-Cola Company. In 1931, U.S. District Court for Eastern District Virginia
declared the National Pepsi-Cola Company bankrupt, the second bankruptcy in Pepsi-
Cola history.


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REFORMULATION OF PEPSI COLA’S SYRUP FORMULA
The Loft candy company acquired the National Pepsi-Cola Company. Charles G. Guth,
president of Loft, assumed leadership of Pepsi and commanded the reformulation of
Pepsi-Cola syrup formula.1934 was a landmark year for Pepsi-Cola. The drink was a hit
and to attract even more sales, the company began selling its 12-ounce drink for five




                                                                                         4
cents (the same cost as six ounces of competitive colas). The 12-ounce bottle debuted in
Baltimore, where it was an instant success. The cost savings proved irresistible to
Depression-worn Americans and sales skyrocket nationally. In 1941, The New York
Stock Exchange traded Pepsi's stock for the first time. In 1964, Diet Pepsi, America's first
national diet soft drink, debuted. Pepsi-Cola acquired Mountain Dew from the Tip
Corporation in 1964.


FORMATION OF PEPSI COLA INCORPORATION
In 1965, Expansion outside the soft drink industry began. Frito-Lay of Dallas, Texas, and
Pepsi-Cola merged, forming PepsiCo, Inc. Pepsi Cola Company operates in beverages
industry. Pepsi Cola international is well reputed multinational company which is doing
its business in almost every country of the world. The company is registered in New York
stock exchange U.S.A. to make a better control over the business the company has given
the manufacturing rights to different companies. Now these companies are producing the
products on the behalf of the company by using company‟s trademark. To maintain their
goodwill in the market the company has a strict policy of granting manufacturing rights.
Pepsi Cola have standardized products all over the world (e.g. same in size, shape and
quality). The franchises have to follow all the standards given by the company.




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SETUP OF PEPSI COLA




              The head office is situated in New York (USA) with
       units operating in different regions of the world. These are
       called Business Units and Pakistan is in MENAPak (Middle
       East, North America and Pakistan). The head office of
       MENAPak is situated in Dubai (UAE). The local head offices
       for each country are situated in the respective capitals.



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PEPSI COLA MULTAN
Pepsi Multan was incorporated in 1963 but it started its production in 1967. Allah Nawaz
Khan Tareen (Ret. DIG) got license of 7-UP. But in 1973, it became Pepsi Cola
franchise. Now a day MD of Pepsi Cola Multan is Alamgeer Khan Tareen son of Allah
Nawaz Khan Tareen. At start Pepsi Multan was having only one production plant made




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by Netherlands. and was only producing 7-Up because it was the only brand produced by
Parent Company. In 1973, PEPSI acquired 7-Up in Canada so the Multan franchise
started producing PEPSI and Marinda along with 7-Up & became PEPSI franchise.
Coke was already operating in the market at the time when Pepsi Multan established. At
that time Coke was market leader but with the passage of time Pepsi Multan kept on
focusing on gaining the market share. Recently Pepsi has launched a new brand with the
name of Mountain Dew. Now Pepsi Multan is working with five production plants
capable of producing 100,000 cases per day. Installation arrangements for two new plants
are in process. The plant which was installed at the time of establishment has now been
grounded. Pepsi Multan is currently market leader with more than 80% of market share.
The company is properly serving all these areas with quality products. PEPSI Multan is
not an ISO certified company because it is an international drink having their own
standards and there is no export.


MISSION OF COMAPNY
       “We aspire to make Pepsi Company the world’s premier consumer Products
Company, focused on convenient beverages. We seek to produce healthy financial
rewards for investors as we provide opportunities for growth and enrichment to our
employees, our business partners and the communities in which we operate. And in
everything we do, we strive to act with honesty, openness, fairness and integrity”



                   Slogans through Time
Pepsi-Cola has different slogans through its history. They remained much known. These



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are given below. This is also an important part of Pepsi-Cola.


                     1898    Brad's Drink




                     1903    Exhilarating, Invigorating, Aids Digestion




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  1906   Original Pure Food Drink
  1908   Delicious and Healthful
  1915   For All Thirsts - Pepsi: Cola
  1919   Pepsi: Cola - It makes you Scintillate
  1920   Drink Pepsi: Cola - It Will Satisfy You
  1928   Peps You Up!
  1929   Here's Health!
  1932   Sparkling, Delicious
  1933   It's the Best Cola Drink
         Double Size
  1934
         Refreshing and Healthful
  1938   Join the Swing to Pepsi
  1939   Twice as Much for a Nickel

  1943   Bigger Drink, Better Taste

  1947   It's a Great American Custom
  1949   Why Take Less When Pepsi's Best?
  1950   More Bounce to the Ounce
         The Light Refreshment
  1954
         Refreshing Without Filling
  1958   Be Sociable, Have a Pepsi
  1961   Now It's Pepsi for Those Who Think Young
  1963   Come Alive! You're in the Pepsi Generation
  1967   Taste that Beats the Others Cold, Pepsi Pours It On.

  1969   You've Got a Lot to Live, Pepsi's Got a Lot to Give

  1973   Join the Pepsi People Feeling' Free
  1976   Have a Pepsi Day!
         Catch That Pepsi Spirit
  1979
         Take the Pepsi Challenge
  1981   Pepsi's Got Your Taste for Life
         Pepsi Now!
  1983



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  1984
  1987
  1989
         The Choice of a New Generation
         America's Choice
         A Generation Ahead
  1992   Gotta Have It
  1993   Be Young, Have Fun, Drink Pepsi
  1995   Nothing Else is a Pepsi

  1997   Generation Next




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                   1998   Same Great Taste
                   1999   The Joy of Cola
                   2000   The Joy of Pepsi

                   2003   Pepsi. It's the Cola

                   2005   Dare for more




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

About Coca Cola:

Mission

Mission of Coca Cola international is “From our heritage to our mission to the
people who bring our products to thirsty consumers, the Coca Cola is a part of
lives everywhere”.
In order to achieve this mission, we must create value for all the constituents. We
serve, including our consumers, our customers, our bottlers and our communities.

Objective

“Objective of our business strategy are to increase volume, expand our share
worldwide nonalcoholic ready-to-drink beverage sales, maximize our long term
cash flows and create economic value added by improving economic profit”.
The Coca Cola company creates value by executing a comprehensive business
strategy guided by six key beliefs;
                  Consumer Demand drives every thing we do.


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




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                          PEPSI TODAY
An Overview

PepsiCo Inc. is among the most successful consumer product companies in the
world with annual revenues of $24 billion and approximately 140,000 employees.
Some of PepsiCo's brand names are nearly 100 years old but the corporation
remains relatively young. PepsiCo Inc. was founded in 1965 through the merger of
Pepsi-Cola Company and Frito-Lay Inc. PepsiCo divisions operate in two major
domestic and international businesses: beverages and snack foods.

Through our divisions PepsiCo has achieved a leadership position in each of these
business segments: we are world leaders in beverage bottling and we are the
world's largest producers of snack chips.

PepsiCo's brand names are some of the best known and most respected in the
world and our restaurants are named as favorites by millions of people. PepsiCo
has achieved a continuing record of growth. This record is based on high standards
of performance, distinctive competitive strategies which are superbly executed, the
personal and professional integrity of our people, business practices and products.

Our overriding objective is to increase the value of our shareholders' investment
through integrated operating, investing and financing activities. Our strategy is to
concentrate our resources on growing our businesses, both through internal growth
and carefully selected acquisitions within these businesses. These strategies are
continually fine-tuned to address the opportunities and risks of the global
marketplace. The corporation's success reflects our continuing commitment to
growth and a focus on those businesses where we can drive our own growth and
create opportunities.

PepsiCo's beverage business consists of Pepsi-Cola North America and PepsiCo
International.



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Pepsi assumes responsibility for supplying the essential ingredients of a product
and it assures the bottler of exclusive right of sale within their specified
geographical franchise area. It works with supplier firms to assure the availability
of quality packaging, merchandising, and other related equipment made to
standard specifications. It provides advertising campaigns and media support. It
creates suitable promotional campaigns and marketing strategies. It offers aid in
personnel training for sales and production staff. It makes available quality control
facilities and technicians. It develops a national publicity effort and offers aid in
formulating local level community relations projects. And, in addition to



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performing these functions, Pepsi offers service through a large field force,
including specialists in a number of technical and marketing skills.

The bottler has reciprocal obligations in connection with their franchise right.
They agree to only use approved advertising and distribute a finished product of
unvarying high quality, to use merchandising materials, and to market the product
vigorously.

Today, there are more than 400 Pepsi-Cola Bottlers in the US and more than 600
internationally. The product is sold in approximately 200 countries and territories.
The Company itself operates only a relatively small number of bottling facilities,
principally in larger metropolitan markets.


PEPSICO INTERNATIONAL:
PepsiCo International (PCI) is PepsiCo's international soft drink operation and
includes the business of Seven-Up International. PepsiCo beverages are available
in about 195 countries and territories.

PepsiCo began selling its products internationally in 1934. Operations grew
rapidly beginning in the 1950's. Today PBI accounts for about 20 percent of all
soft drinks sold internationally.

PCI organization consists of three geographic business units, each with self-
sufficient operations and broad local authority. The three units are:


              - Pepsi-Cola Europe
              - Pepsi-Cola Latin America
              - Pepsi-Cola Asia
PCI beverages are produced by a combination of independent franchised bottlers,

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joint-venture bottling operations and company-owned bottling plants. PCI is the
soft drink market leader in more than 50 countries and territories including Saudi
Arabia, Venezuela, Russia, Pakistan, Hungary and Vietnam. Other key markets
include Mexico, Saudi Arabia, Venezuela and Argentina. PI also focuses on high
potential, underdeveloped markets, such as China and India. PI has also
established operations in the key emerging markets of Eastern Europe, including
Budapest, Warsaw, Prague and Moscow, where Pepsi-Cola was the first US
consumer product to be marketed.




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The division's flagship product is Pepsi-Cola, with its brand extensions Pepsi Max,
Pepsi Light, Caffeine Free Pepsi, Caffeine Free Pepsi Light, Diet Pepsi, Pepsi
Twist, Pepsi Blue, Vanilla Pepsi, Pepsi X and Wild Cherry Pepsi. The division's
other major brands include Mountain Dew, 7UP, Diet 7UP, Mirinda and Teem. In
all, PI offers dozens of soft drink brands in a variety of packages and sizes.

THE BUSINESS ENVIRONMENT:

Consumers:

Pepsi believe the main 'drivers' behind consumer behavior are value, variety,
attitudes and convenience.

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


The Marketing Mix:
Product:
Pepsi, Pepsi Light, Pepsi Twist, Pepsi Max, Pepsi Diet, Pepsi One, Pepsi
Vanilla, Pepsi Blue, Pepsi Wild Cherry, 7UP, Diet 7UP, Caffeine Free Pepsi
Light, Mountain Dew (including Diet, Caffeine Free, Code Red, and Live Wire
flavors).

Price:
Pepsi is competitively priced to its major competitors, offering a better tasting
product at a competitive price.


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




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

Service the right pack size at the right price, in the right place at the right time.



                     Strategic Marketing:-
            The Coca Cola Company versus PepsiCo

Market Share:
Pepsi-Cola ranked as the second -best selling soft drink in American supermarkets
in 2000. A consistent runner-up to Coca-Cola Classic, Pepsi- Cola was joined by
three other PepsiCo products in the year 2000 rankings – Mountain Dew, Diet
Pepsi and Caffeine-Free Diet Pepsi.
Pepsi Coranked second in American CSD market share to the Coca-Cola
Company, holding 31.4% during the same year. Coca-Cola Classic outsold all soft
drinks in America during the year 2000, netting over USD$ 2 Billion at the cash
register. The Coca-Cola Company maintains the CSD market as its primary line of
business. With subsidiaries located throughout the globe, Coca-Cola is easily able
to dominate the Global CSD market.

In the year 2000, Coca-Cola generated only 29% of its operating income in North
America, representative of its large volume of international sales.4 inversely;
PepsiCo maintains lines of business in both the CSD market and the snack
foods market.



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According to the Beverage Marketing Corporation (BMC), Coca-Cola has held
command of over half of the world's CSD market since 1998. On abrand-by-brand
scale, Coca-Cola took five of the top seven spots globally in 1999, with standard-
bearer Coca-Cola holding a 28.6% share of global CSD volume. Pepsi-Cola was in
second place with a 10.8% share, while PepsiCo's Mountain Dew placed sixth in
terms of global Volume.




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      Table : 2003 Market Share

                                    Pepsi Cola        Coca Cola
               Market Share          31.4 %            44.1 %
              No. of Countries         160               200
             Variety of Product       Large             Large
              Target Market          Youth            General
                  Strategy         Focus Diff.     Differentiation
               Diversification      Related            Related

Market Penetration:
It is the shared goal of PepsiCo and Coca-Cola to increase the overall global
consumption of their products. Kotler and Armstrong contend that improvements
in advertising, prices, service and selection can increase repeat purchases and
attract new consumers 7. In an attempt to increase market share during the famous
“Cola Wars” of the 1980‟s and 1990‟s, PepsiCo initiated the “Pepsi Challenge”
advertising campaign. Without changing their product, Pepsi temporarily enjoyed
a heightened market share and began to penetrate further into the competitive
American CSD market.

Coca-Cola responded with several attempts to counter the effects of Pepsi‟s
successful new marketing strategy. In late 1986, Coca-Cola renamed its top-selling
CSD “Coca-Cola Classic” and launched a corresponding global advertising
campaign. The success of Coca-Cola Classic has been based largely on the
integrity of Coca-Cola‟s original formula. Brand loyalty and insistence drive a
large portion of the CSD market, and Coca-Cola has the advantage with their
century-old formula.
In the 1990‟s, Pepsi shifted their focus to the growing American teenage market.
PepsiCo adopted a new marketing strategy which aggressively marketed through
high school and college campuses. PepsiCo began selling contracts of exclusivity


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to hundreds of American schools, benefiting many schools with needed monies,
and providing PepsiCo a direct link to American teenagers. While Coca- Cola
has adopted a similar method of obtaining exclusive selling power, PepsiCo has
followed up with various aggressive advertising campaigns using popular
American teen icons to promote Pepsi products.

“The next generation” motto was replaced with “Joy of Pepsi” and “For those who
think young,” targeting not only American youth, but the youthful mindset of
every consumer. Pepsi continues to use teen and child icons to promote their
products, while Coca-Cola has latched onto the remaining Baby-Boomer


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market. Through product placement and exclusivity contracts with restaurants,
sports arenas, amusement/theme parks and various large event coordinators,
Coke has been able to increase their overall visibility to counter

      Pepsi‟s latest marketing strategies.

      Speaking on the success of PepsiCo‟s aggressively competitive
      marketing strategies, PepsiCo Chairman/CEO Roger Enrico writes:


         “Without Coke, Pepsi would have a tough time being an original and
     Lively competitor. The more successful they are, the sharper we have to be. If
     the Coca-Cola Company didn’t exist, we’d pray for someone to invent them,
      And on the other side of the fence, I’m sure the folks at Coke would say that
       Nothing contributes as much to the present-day success of the Coca-Cola
                                Company than… Pepsi.”



Market Development:
Identifying new and developing markets for current products – market
development – is another method both Pepsi and Coca-Cola are presently using to
increase overall sales. While PepsiCo‟s shift in advertising to a younger audience
can be considered market penetration, it also exhibits qualities of market
development. Teenage Americans have not traditionally been looked at as a
powerful consumer group until recent years. Identifying this developing market,
among other demographic „micro-markets,‟ Pepsi has been able to penetrate
areas that Coca- Cola has not.

The Coca-Cola Company and PepsiCo alike have taken note of the potential for
expansion in the geographic markets of China, India, Philippines. CSD market
development ties in very closely with both market penetration and product
development strategies. Many CSD preferences are tied to societal and/or cultural
preferences and existing alternatives. Sprite and 7-Up (non-cola CSDs) have

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been very successful in African-American markets. In 2001, PepsiCo further
augmented their marketing strategy to break into this previously unaddressed
micro market with a new non-cola CSD named Code Red.


Product Development:
While targeting the African-American market, PepsiCo determined that its
Mountain Dew line could be augmented with a new cherry flavor (Code Red).
“PepsiCo also hit the streets to go after the black and Hispanic audience with


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whom Mountain Dew has traditionally not done as well. Rap jingles starring
Busta Rhymes and Fatman Scoop hit the airwaves, and cases of Code Red
mysteriously began to appear at the doors of inner-city influencers.”

Revisiting the “Pepsi Challenge” from the 1980‟s and 1990‟s, we see a larger
attempt to increase market share with product development. Prior to releasing
Coca-Cola Classic, Coca- Cola attempted to      diversify their product with the
1996 introduction of Coke II. Altering the formula of their best-selling CSD, the
Coca-Cola Company attempted to make the product more appealing to consumers.
Coke II was very poorly received, and Coca-Cola‟s attempt at product
diversification failed with thousands of consumer complaints about the new
formula.

In the brand-loyal CSD market, product modification is rarely well- received, as
exemplified by the failure of colorless colas and the poor performance of recently
released lemon-flavored colas.


Diversification:
Starting up or acquiring businesses outside of current markets and products       –
diversification – is an excellent way to strengthen a company. Profits and revenues
generated by secondary or even tertiary ventures can provide additional
resources to strengthen a businesses‟ primary class of products. However, as
Kotler and Armstrong explain, “companies that diversify too broadly into
unfamiliar products or industries can lose their market focus.”
PepsiCo was faced with this very situation in the mid-1990‟s with their
restaurant ventures.

PepsiCo was operating with over 400,000 employees worldwide,     many of
whom supported one of the three fast-food chains under Pepsi‟s banner. The hot
food division of PepsiCo brought in the most revenue of   any of their existing
divisions, but was the least profitable. In 1997,


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PepsiCo spun off their restaurant businesses as Tricon Global Restaurants, in
move to keep from becoming too over-diversified.
                                                                                 a


PepsiCo, valuing its stability through diversification, moved to acquire Quaker and
SoBe in 2001.Quaker specializes in health foods and is the industry leader in non-
carbonated sports drinks. SoBe is a world leader in health and new-age non-
carbonated beverages. PepsiCo correctly identified the global demand for more
non-carbonated ready-to- drink beverages, and was able to move swiftly to



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diversify their holdings. Gatorade, a sports drink acquired with the Quaker
purchase, sold slightly over USD$ 2 Billion in the year 2000 – rivaling Pepsi‟s
competitor Coca-Cola. Coca-Cola does not show any sign of moving into markets
other than ready-to consume beverages, but still offers a wide array of diversified
beverage products. The 239 beverage brands that Coca-Cola produces constitute a
major portion of beverages available to consumers worldwide, covering dozens
of micro-markets. Unlike PepsiCo, Coca-Cola has a long history of success with
international marketing efforts and business strategy. Thus, rather than competing
with Coca-Cola on in the international beverage arena, PepsiCo has ensured
longevity with alternate product offerings.



                ORGANIZATIONAL CULTURE

      The culture of Shamim & Co. is differentiated with the other Beverage
Companies on the basis of following key characteristics;


INNOVATION & RISK TAKING
      The company’s emphasis over innovation and risk taking is much
higher than the competitors and due to this characteristic amassed by all
other Pepsi Cola Franchisees the PCI has got Top position in the year 2003
overall the world that has been published by a very well renowned Magazine
“Fortune”.




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




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


PEOPLE ORIENTATION
      The decisions made by the management of Shamim & Co. take into
consideration the effect of outcomes on people within the organization. The
people working under different Managers are treated by the dynamic
approach to get the maximum efficiency from them.


TEAM ORIENTATION
      The work activities in Shamim & Co. are organized around teams
rather than individuals. One of the company’s executives says that they do
follow the policy of “TEAM” which is de-abbreviated as “Together”,
“Everyone”, “Achieves”, “More”.




AGGRESSIVENESS
      The employees of Shamim & Co. are always willing to accept the

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challenges and aggressive to accomplish the tasks assigned and competitive
rather than easygoing.
STABILITY
Some areas of working relationship between the employees are kept in status
quo in contrast to growth like socialization etc.




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          HOW THE NEW EMPLOYEES OF
                           Shamim & Co.
                       LEARN CULTURE

      Shamim & Co.’s Culture is transmitted to new employees in a number
of forms, the most potent being;


STORIES
RITUALS
MATERIAL SYMBOLS
LANGUAGES




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




those stories about the people who had worked with the organization. They
are well familiar with the past experiences and their outcomes. They either

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frighten them or give them courage to follow or not the procedures set by the
company. The old bosses of the department brief new comers how they
should have to perform their duties and what are the norms of the company
which cannot be violated. For example Mr. Asif is the In charge of MIS
Department of Shamim & Co., he is responsible for the initial training of the




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new comers. He gives them all the details regarding the Department, and
Organization. He tells them about the decorum of the office and likely
behavior to be pretended.


RITUALS
      Another important factor of transmitting the culture to new employees
is rituals. Some activities are considered to be the understood activities like
the break for Namaz-E-Juma. As the members of Shamim & Co., are regular
prayer sayings, so a break for the prayer is understood and nobody is
compelled to do any office work during the break. Also there is a company
policy in Shamim & Co., that is to give 15 days annual recreational holidays
with pay. Anybody who wants to go for those holidays, he can go with the
consents of his boss.


MATERIAL SYMBOLS
      Another motivational cultural approach is to give due position to the
employees who deserve that position. In Shamim & Co., the top executive
like Mr. Aamir Hameed GM Sales, has been given a chauffer-driven Honda
Civic Car, a latest Laptop, Unlimited use of mobile phone, a well furnished


house, one Umera per year, free cold drinks up to 200 c/s. and a very

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handsome salary package. So the material symbols like these facilities also
show the best cultural values and motivational tactics for the new comers
and for those persons who work hard in the organization.




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



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


   1. Aggressive bottlers.
      The pepsi bottlers were more aggressive in their policies and
      strategies than that of their competitors. COKE ignored this
      region because the share they were getting from this region was
      less than nominal, providing pepsi an opportunity to grow up
      and capture the market.
   2. Anti Jew Movement.
               Because of the Arab Israel war, the Arab countries
      decided to boycott the Jew products. So they boycotted the
      COKE. It opened the gates of success and opportunity for the
      pepsi.



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   3. Environmental factors.
                Cold conditions in western societies influence people to
      use things with bitter taste like beer and coffee, therefore they




                                                                           21
like COKE as compared to pepsi because the contents of coke
are bitterer. In Pakistan people are more inclined towards
sweeter taste therefore they like pepsi.


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


BRAND LOYALTY
             One of the important features of this industry is the
concept of brand loyalty or brand addiction. Customer who
wants Pepsi will always go for Pepsi. For the same reason a
competing company like Coke cannot divert these customers
towards their brand. But these customers are looking for two
things in the product, which they are loyal to.


PERSISTENT QUALITY


             This is one of the main requirements of the
customer. Whether he is in a developed city like Karachi or


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Lahore or in a remote village, what he wants is that he is
provided with the same quality of the product everywhere. To
have this customer requirement be fulfilled the company needs
not only to manufacture quality product but they also have to
constantly track the product as it moves from there company to
distributors and then to final customer.



                                                                     22
                    These soft drinks can sustain their quality in a
      specific temperature specially the glass container cannot absorb
      higher intensity of heat. But what these retailers do is that hey
      keep these containers outside their shops directly under the
      sunlight that really affects the quality of the product. Although
      the life of the glass bottles under ideal conditions is almost 6
      months but due to above mentioned conditions, the life span
      reduces to only a week. Company therefore advises the
      shopkeepers to keep the stock under sheds but if they can't then
      they should sell it within a week time.



      AVAILABILITY
              When a thirsty customer comes on a soft drink
      corner asks for a desired brand say Coke but if it is not
      available then is he not going to go for the next available brand.
      The answer will be yes, because he needs to fulfill his thirst and
      what is readily available is going to be consumed.
                      Therefore for companies to keep their, customers
      in general and loyal customer in particular, satisfied, they will
      have to insure that their goods are in sufficient quantity on the
      shops. For this the shopkeepers keep extra stock in their shops.

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


                                                                              23
  MARKET SEGMENTATION AND TARGET MARKETS
This statement is quoted from Pepsi Cola International official website. “In 1960, Young
adults become the target consumers and Pepsi's advertising keeps pace with "Now it's
Pepsi, for those who think young".
Now there is no specific segmentation of market with respect to customers because their
product is standardized. According to their general manager sales, different brands are
targeted towards people belonging to different age group, according to him 7up is more
likely to be preferred by old age people where as Miranda is popular among teenagers
and Pepsi is preferred by people belonging to any age group.


ACHIEVEMENTS
Last year Pepsi Cola Multan showed their best ever performance of product growth rate
in the Asian Zone and stood fourth in the Asia. Recently last month Pepsi Cola Multan
won the Pakistan quality contest by securing first position. As compared to last year their
production capacity has increased to 100,000 cases per day in peak season.


                                   PRODUCTS
PEPSI COLA
Pepsi cola is their most successful brand with most of the market share .In Pepsi they are
producing following brands

          175 ml
          250 ml


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       
       
           1000 ml
           1500 ml




                                                                                        24
7-UP
7-Up is also popular in old age group of people. 7-Up is a lemon lime drink. In 7-Up they
are producing following brands
            175 ml
            250 ml
            1000 ml
            1500 ml


MIRINDA
Mirinda is the most popular drink in teenagers. In Mirinda they are producing following
brands
            250 ml
            1000 ml
            1500 ml


MOUNTAIN DEW
Pepsi cola has recently launched a new product in Pakistan known as Mountain Dew
which is now a days most popular cold drink amongst adult group. In Mountain Dew they
are producing only one brand 250 ml bottle.


PEPSI INGREDIENTS:-
Water
At least 86% of soft drink is purified water. In the case of diet soft drinks    water

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comprises around 96%.

Sweeteners

Such as sugar (sucrose from sugar cane) or non-nutritive sweeteners.     Sugar
is used in Pepsi, 7UP, Mountain Dew and Mirinda. The most popular and most
widely non-nutritive sweetener used is Aspartame.      NutraSweet is the




                                                                                      25
registered trade name and it is used in Pepsi Light,    Diet 7UP and Pepsi Max.
Aspartame, being 200 times sweeter than          sugar, is used in very small
quantities. Other non-nutritive sweeteners       permitted    are   acesulphame
potassium, thaumatin, saccharin and       cyclamate. Pepsi Max and Pepsi Light
use a dual sweetener system,       aspartame and acesulphame potassium. The
latter is 300 times sweeter than sugar, requiring even less to sweeten the soft
drink. Shelf life of the product is extended, as, unlike aspartame, acesulphame
potassium does not lose its sweetness over time.

Flavours
Pepsi uses flavors to develop characteristic tastes associated with our beverages.
These come from a variety of sources; natural, artificial and nature identical. They
are usually derived from a number of ingredients used in special combinations.
Examples of flavors used in the manufacture of soft drinks include natural
flavorings from Kola nut, and fruit. Food acids and bittering agents such as citric,
phosphoric acids and caffeine are also flavoring substances.

Our products and the flavors used in those products are safe and suitable, but they
are proprietary.

Carbon Dioxide
Effervescence gives soft drinks their special bubbly appeal and is added
During production by injecting C02 into the product on the way to the filler.

Colors
Colors are added to Pepsi Cola products to enhance the esthetic appeal and
appearance of products whether they are the typical brown of our colas or the
yellows of Mountain Dew.

These may be both natural and artificial.

Natural colors or colors sourced from natural materials. Many countries have
regulations that specify certain colors as natural. These colors are referred to as

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"natural colors."
Synthetic (or artificial) colors. Internationally there are many colors that are
accepted.

Preservatives
Certain preservatives are used in soft drinks to ensure microbial stability and
prevent spoilage




                                                                                 26
Pepsi Cola Brands List:


   Pepsi-Cola
   Caffeine Free Pepsi
   Diet Pepsi
   Caffeine Free Diet Pepsi
   Pepsi Twist (regular & diet)
   Wild Cherry Pepsi
   Pepsi Blue
   Pepsi ONE
   Pepsi Vanilla
   Diet Mountain Dew
   Mountain Dew Code Red
   Diet Mountain Dew Code Red
   Mountain Dew LiveWire
   Mountain Dew Blueshock
   Mountain Dew AMP energy drink
   Mug
   Sierra Mist (Regular & Diet)
   Slice

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   Lipton Brisk (Partnership)
   Lipton Iced Tea(Partnership)
   Dole juices and juice drinks (License)
   FruitWorks juice drinks
   Aquafina purified drinking water
   Frappuccino ready-to-drink coffee (Partnership)


                                                      27
    Starbucks DoubleShot (Partnership)
    SoBe juice drinks, dairy, and teas
    Sobe energy drinks (No Fear and Adrenaline Rush) Outside North America
    Mirinda
    7UP (International)
    Pepsi Limón
    Kas
    Teem
    Pepsi Max
    Pepsi Light
    Fiesta
    D&G (License)
    Mandarin (License)
      Radical Fruit



                       FUTURE PLANNING
      The company operates through a well experienced, loyal and hardworking
employees. 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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                                                                               28
LATEST MARKET SHARE STATISTICS
Latest market shares of brands are given below


                   BRAND NAME                    MARKET SHARE
                    Pepsi                            60 %
                    7-UP                             22 %
                    Mirinda                          9%
                    Mountain dew                     9%




                   SHAMIM CO. (PVT.) LTD.
District Cover by Shamim & Co.

   1. Multan A Zone

   2. Multan B Zone

   3. Multan C Zone

   4. Multan District

   5. Multan Outskirts

   6. Khanewal


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   7. Mailsi

   8. Vehari

   9. Muzafar Garh

   10. Leiah

   11. D.G. Khan



                                                                29
   12. Sahiwal

   13. Okara

   14. Bahawal Pur

   15. Ahmad Pur

   16. Bahawal Nagar

   17. Haroonabad &

   18. Rahim Yar Khan


As for as products are conserved, company is offering (under given) products in
the market. The details are as under,

Now we are going to discuss the Stock Keeping Units (SKU‟s).


Stock Keeping Units (SKU’s)

   1. SSRB This stands for Single Serving Returnable Bottle (Regular)
      We are offering Pepsi, Mirinda, 7-Up & Mountain Dew in this group.

   2. LRB This stands for “Liter Returnable Bottle” this includes Pepsi, Mirinda
      & 7-Up. We are not offering Mountain Dew in this class.

   3. Pet Bottle (1.5 Liter)
      This includes Pepsi, Mirinda & 7-Up. This group also does not have
      Mountain Dew in their family.

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      Here Diet Pepsi & 7-Up are also available to enlarge the range of group.

   4. NRB This stand for “Non Returnable Bottle”. It can also be called as
      “Deposable”
      It has 300ml quantity. This group includes Pepsi, Mirinda, 7-Up, Diet Pepsi
      & Diet 7-Up.

   5. Cane Packing, we are offering cane packing of all that brands that are
      offered in SSRB. Including Pepsi, Mirinda, 7-Up and Mountain Dew.



                                                                              30
6. Post Mix – This includes Fresh / Fountain. This group includes Pepsi,
   Mirinda, 7-Up & Mountain Dew. This facility is offered on “QSR” that
   stands for “Quick Serving Restaurants” and all those points where no of
   walk-in-customers in very huge with their short time stay at that point.

   Pepsi Cola International is a large group covering KFC, Pizza Hut,
   Burger King, Lays Potato Chips & Aquafina (Mineral Water).




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                                                                        31
ORGANIZATION HIRARCHY:-


                                           Managing
                                           Director



    General Manager          General Manager            General Manager          General Manager
       Technical                  Sales                     Finance                Operations




                 Manager               Manger Sales &              Manager MIS             Manager Admin
                Production               Marketing




             Manager Quality          Manager Research           Manager Finance         Manager Personnel
                Control                   & SIS




                                                                 Manager Account          Manager Shipping




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                                                                                                             32
Distribution Channel:-
    The company operates through a well-established network of a number of
    distributors. The company has two types of delivery systems i.e.


                 Direct delivery system

                 Indirect 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 a 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.



8 Steps of Pepsi Sales:
    Our company is very conscious about the development and growth of our
    employees especially the sales force. We have designed a 8 step process for
    proper guideline of our sales team just to make their sales calls effective
    and result oriented. There steps are as follows,


          1-      Preparation
          2-      Greeting


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          3-
          4-
          5-
                  Stock Checking
                  Merchandising
                  Presentation
          6-      Order taking
          7-      Curb side de-briefing evaluation
          8-      Administration




                                                                                33
1) PREPARATION

             i. What are Objective
            ii. What to do here
           iii. How to do that

Simply where we want to go, & how to get our there.

2) GREETING

       It includes greetings and hand-shake. Greet the customer by name & he will
       be delighted should be keep in mind of every person involved in sales.

3) STOCK CHECKING (Stock Availability Store Checking)

       This includes all the good e is dealing in this will help us to know about his
       financial worth patented and clientage.

4) MERCHANDISING (Display)

              Display of Visi Cooler
              Display outside shop
              Availability inside Deep Freezers

       It is the most important job to be performed by our sales force.
       The order of our product in display should be like this

Top cane packing

       Pepsi, 7-Up, Mirinda and Mountain dew
Then


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       Non Returnable bottles


       Single serving returnable bottles
Then

       Single serving returnable bottles (Regular)




                                                                                   34
Then
      Liter returnable bottles & pet bottles on the floor of visi coolers
Every sales person should be caring about the display

5) PRESENTATION

       Policy
       Scheme
       Product availability
       Total sales tack

6) ORDER TAKING

Taking Order

7) CURB SIDE DE-BRIEFING

Evaluation

8) ADMINISTRATIONS

Cash
Empty
Sales figure entry
Infection of stock

Company desired to increase it‟s market share from 70 % to 80 % or Above. This
is only possible if we
                    Retain our exclusive point
                

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                     Explore new points
                    Increase sales of points
                    Increase stock at mix points
                    Conversion of coke points
                    Elimination of B- Brands




                                                                             35
                          SWOT Analysis
Strengths
         Strong image of PEPSI in consumer‟s mind

         In time service of supplies and technical assistance

         More installation of post mix machine

Weaknesses
         No advertisement budgets for post mix.

         No signage‟s of post mix in the market

         No promotional activities in post mix.

         No availability of spare parts.

         No proper workshop for post mix.

Opportunities
         Opening of new outlets

         Strong consumer commitment with Pepsi.

Threats
  
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          Coca- Cola is on its way to get market share




                                                                 36
                 COMPETITIVE PRIORITIES
COST
As Pepsi cola Multan is producing standardized products so they have to maintain a fixed
cost. They want to lower per unit cost as well as the total cost of production.


QUALITY
Pepsi cola Multan is producing a standardized product because all the manufactured
items contain the same amount of the raw material required. So they want to maintain the
quality of products. They want to deliver high quality product according to international
standards given by Pepsi Cola International (PCI).


TIME
Pepsi Cola Multan meets its delivery-time promises i.e. The Company pays most
attention to delivery -on- time to satisfy customers & retailer‟s needs on the time, which
they want.



FLEXIBILITY

Pepsi Cola Multan does not focus the unique demand of customers & products are
standardized, So Company works for volume flexibility i.e. Company is able to
accelerate or decelerate the rate of production quickly to handle large fluctuations in
demand.

OTHER CORE COMPETENCIES
   
   
   
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       Strong distribution network
       Wide geographical coverage
       Experienced engineers and sales staff
      Quick customer response and feedback




                                                                                       37
       DECISION MAKING IN PEPSI COLA MULTAN
       Decision making in Pepsi Cola Multan is influenced by the following factors which
are.



AUTONOMY


Pepsi Multan is completely autonomous in strategy development. There is no concept of
dictation from country office rather sharing of policies is more evident. Country office
does not provide any financial resources, human resources or managerial competence to
Pepsi Multan. Involvement of country office is only up to the extent of creating
advertisement & publicity campaigns in which Pepsi Multan also contributes.


FORMAL COMMUNICATION CHANNELS


In Pepsi Multan, there is no concept of informal communication between lower level
managers & top executives. They have to follow proper organizational hierarchy to
communicate with top level managers. For example, Area Sales Manager can‟t directly
communicate to GM Sales. He will communicate with DSM which will in turn
communicate with GM Sales. This flow of communication leads to delay in decision
making, noise in information & misinterpretation.


BUREAUCRATIC MANAGEMENT STYLE


Decision making is highly centralized & ideas from lower levels are not welcomed. So


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idea generation is not facilitated & top executives are responsible for developing
strategies for their own SBUs. This sort of arrangements restricts innovative strategies &
lower level participation in decision making.




                                                                                       38
               ORGANIZATIONAL STRUCTURE

MANAGING DIRECTOR
He is the owner of this company and final operational authority to manage all
departments of the company. All departments‟ heads are responsible to report him all
about their performances and matters.


GENERAL MANAGER / DIRECTOR FINANCE
He is responsible for overall operation of the facility. He is the overall GM of the facility
and he manages all the decision and strategies regarding Multan franchise and deals with
the country office problems.


GENERAL MANAGER SALES
G. Manager Sales is responsible for the performance of his department and to achieve the
objectives assigned to him such as marketing, sales, distribution. To carry out his duties
more efficiently he has four Regional Managers, 15 Area Sales Managers.


GENERAL MANAGER OPERATION
He is responsible for the whole administrative, shipping, workshop related activities to
smooth on the factory operations without any hindrances.


GENERAL MANAGER TECHNICAL
He is unlike Sales department performs key role as to manage Production Department
producing quality Products as per need of the sales department. Quality Control


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Department also works under him.


GENERAL MANAGER FINANCE
Finance, Accounts and MIS departments work under his control. He is responsible to
make major company financial policies to meet the needs of the each and every
department regarding budgets etc.




                                                                                           39
                               DEPARTMENTS
In order to properly control the operations there are following departments in the
company


ADMINISTRATION DEPARTMENT
Administration department deals with the overall matters of the company and takes
different actions for increasing the performance of the company. This department also
carries out different social welfare programs.


SALES / MARKETING DEPARTMENT


       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. Shamim 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
              Tactical analysis and routine planning of market strategies.
              Competition activity monitoring
              T.O.T. management
              Publicity management
              Time management


MARKET DEVELOPMENT

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       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/outlets, about its
     sale, volume, growth and exclusivity.




                                                                                  40
    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.



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.
   

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       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




                                                                                41
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.T., Publicity,
     Discounting, Promotional schemes, empty management,
     Cash credit, Vehicles injection (etc.)
     Reporting to the higher authority.
     Taking action to block the competitors activities and monitoring Our


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 highest
      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




                                                                                 42
                  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.


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   Empty plan (Forecasting) based on the previous years Trippage

   Level & Percentage increase of empty injection.




                                                                                   43
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 knock 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

This is the key department which is making all possible efforts to make company mission
statement to rationality. This department is doing all tedious exercises to increase the
sales of the company by sponsoring different social programs, managing distribution
channels, managing all marketing activities and by advertising to get the competitive


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advantages. Country office is responsible for making advertisement strategies and
campaigns. All decisions regarding hiring a specific celebrity are made by Pepsi Cola
International for each country. Pepsi Cola Multan contributes in the advertisement budget
at country level. Currently 10 to 15 distributors are working in Multan region.
Distributors pick their orders from the sales warehouse and then distribute them to
retailers who are responsible for providing product to the customers.




                                                                                      44
Pepsi Multan also provides vehicles to the distributors who cover those regions where
they can not approach directly. The distributors who are using Pepsi vehicles have to pay
1 rupee per crate when they load their trucks for delivering their orders. Marketing
department has a sub department which is SIS department



       Q. What is the promotion?

       Promotion means to make an awareness of the product in consumer mind
       for its availability at certain place.

       Q. Why you need promotion.

       To make the exposure of product.

       Q. How you can satisfy about your promotion

       Its depend on the feed back of consumer. That how the consumer may
       perceive the promotion of product. If the feed back is positive

       For Example: the company achieving is object for the promotion then the
       defined promotion successful otherwise company observe the drawbacks
       for the defined promotion In prove it and implement and the feed back
       process against starts, so it is a continues process till the time. The company
       may get the Targeted object

       Q. What are the sources of promotion?

       There are two source of promotion


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              1.

              2.
                      Electronic

                      Print Media.

              3.      Personal Selling

       Q. Which you preferred and why?

       Both are important because they have relevant work



                                                                                      45
        Q. How many types of promotion?

        There are two types of promotion

               1.     Sales Promotion

               2.     Product Promotion

        Q. How legislation effects on promotion?

        Firstly we get approval from govt., for promotion (Price off) volume
        duration.

        Q. Is there any ordinance or law for governing promotion?

        Yes there is a promotion ordinance. All the policies are related with this
        law.

        Q. How you defend your promotion against your competitors?

        To make is more and more attractive for the customer before starting the
        promotion normally it is viewed that what sort of promotion activity may
        start different ideas are generated and then from these ideas A promotion is
        defined with its pros and corns.

        Develop a Promotion Mix

               Is based on customer

               It may be of all natures



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        It may be for any male, female of any type (relevant to sex age).

Sales Promotion
Schemes of different nature

i.e.,   Price off scheme

        Discount scheme.



                                                                                 46
Various prizes scheme (from) small-to-small & big to big).



Promotional activity Plan
       A promotional activity plays a vital role to enhance sales. With this
       activities may be done to promote 7- UP and Miranda

In post mix this following are the objectives for promotional activities

       o To increase the sales of low volume outlets

       o To do product promotion

       o To develop the credibility of Pepsi products (Pepsi, Miranda) and 7UP

For promotional activities following prizes may be offered in schemes.

       o Cash prizes ranging from RS 5- 1000/=

       o T- shirts, caps, school Bags, Kit bags lunch boxes, bats

       o Wail man, Rest watch, cassettes/CD, Radios

       o Free COLD DRINK GLASS

       o Some bumper prize (Diamond ring, Rado watch, CD player. T.V.
               Refrigerator)




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Promotional Timing
       For the promotional activities below stated or the other activities may be
       donning in the months of March. April (starting of peak season) and
       September to November (sales decline season).




                                                                              47
Promotional Target Market
     For promotional activities low volume outlets, Key outlets, entertaining
     outlets may be preferred. This shall encourage outlets as well motivate.

Prizes distribution
     Prizes may be given to the consumer as conveniently, it could be placed
     either at outlet premises or at factory

     With the sport of these prizes the below stated promotional activities may
     be done.

Scratch the glass
     Under this scheme screeching the hidden part of the glass may in hide
     prize.

Lucky draw
     Under this scheme different small prizes with one-bumper prizes may be
     given to winner by making a lucky

     Some other activities like PEPSI logo uniform may be provided to high
     selling outlets for their serving staff.

     Some activates may be done in shape of parks tickets with PEPST printed
     over there. In parks various promotional activities could be done like


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     discounted rate; free cold drinks etc at some selected park for a specific
     day.




                                                                                48
PUBLICITY:-



DEFINITION:


   Publicity is a non-paid for communication of information about the
   organization or product generally in some media form. At a large
   organization generating favorable publicity is usually the job of public
   relations director. In smaller companies publicity can be the job of
   marketers the owner and other employees. Indeed in a quality focused
   organization publicity presenting a positive image of all employees.
   Because it is non paid and usually reported by media as news publicity
   carries a lot of weight with the general public.



DIFFERENCE                BETWEEN                   PUBLICITY                  &
ADVERTISING


   Public relation practitioners have a different approach to the media than do
   advertisers. Whenever possible they avid purchasing time or space to
   communicate messages. Instead they seek to persuade media gatekeepers to
   carry their information. These gatekeepers include writers, producers,
   editors, talk show coordinators and newscasters. This type of public


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   relations labeled publicity and is characterized as cost free because there are
   no direct media costs. The credibility of publicity typically is much higher
   than advertising. I.e., if we tell you our product is great you may well be
   skeptical. But if an independent objective third party says on the evening
   news that our product is great you are more likely to believe it.




                                                                               49
TYPES OF PUBLICITY


      Publicity comes in many forms. The most common are news stories and
      public service announcements.

 1.      News stories- initiated by the media themselves allows the marketer
         little of if any control over the message.

 2.      Public service announcements space or time donated by media to
         nonprofit organization for socially responsible message

GENERATING PUBLICITY


      Marketers generate news stories in whatever ways are likely to attract
      favorable media coverage. The simplest approach is to circulate press
      releases. Marketers may also host‟s news conference4s and stage attention
      getting events.



PRESS RELEASES

      A press release in an article written by company members and distributed to
      the media. A press release is a like a mini-news stories. It provides the


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      media with information about the product or organization.

      A press release gives the marketer sum control over news coverage by
      allowing the marketer to decide when to make an announcement and what
      information to include. In preparing a press release the following tips can
      be helpful.




                                                                              50
                 Keep it short.

                 Use clear concise language

                 Polish up the lead

                 Cite major facts

                 Include the name and phone number of the person who can be
                  contacted to verify the story.




NEWS CONFERENCES


   The marketer invites reporters to the news conference and usually provides
   them with advanced information. A spokesperson for the organization may
   read a prepared statement and answer the question from the media men. But
   there is no guarantee that media will attend or ask the question that he
   spokesperson wants to answer.

ACTIVITIES AND EVENTS


  To draw attention on its tenth anniversary a law firm in Orlando
  commissioned to photographers to create photos celebrating 20 local
  companies, 10 of which where the law firm‟s clients. Not only did the
  resulting exhibit receive favorable publicity in the local press, but also the
  local historical museum added the photos in its collection.

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  As in this example the key is to create events that are some how favorable linked to
  the organization or its products. “Thus there are as many ways to generate
  publicity as there are ideas in the mind of marketer




                                                                                   51
Pepsi Takes new twist’ on Cola

Pepsi Twist, the great Taste of Pepsi with Lemon, enters selected markets in

the United States PURCHASE, NY, June7,2001 – Complementing the grit

taste of Pepsi with a twist of lemon, Pepsi-cola company is introducing a

refreshing new product called “Pepsi Twist. “Regular and diet versions of

the crisp new cola now are entering retail outlets in selected US markets.

“Consumers have been telling us they‟re looking for something extra in
their soft drink options, “said Dave Berwick, vice president of carbonated
brands for Pepsi-Cola north America. “We know that nationally more
people prefer the taste of Pepsi. With Pepsi Twist, we‟re dialing up the
refreshment possibilities while focusing on the bigger picture of expanding
flavor variety among colas.”
Pepsi Twist was tested as a summertime-only proposition last year in
Minnesota and Texas, where it met with tremendous consumer response,
boosting total Pepsi trademark volume, display inventory and awareness
Its expanded availability this summer covers about a third of the country.
Predominantly the central United States. Pepsi twist is being distributed in a
wide range of packages wherever Pepsi products are sold in those markets
Dedicate television, radio and point-of-purchase ads are supporting the
rollout of Pepsi twist where available. An introductory TV spot is set in a
zoo on a scorching summer afternoon. It‟s so hot even the penguins take
extraordinary measures of stay cool. Created by Pepsi‟s longtime


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advertising agency, BBDO New York, the humorous new commercial
invites consumers to try “A New Twist on refreshment.”
Purchase. NY – based Pepsi-cola company is the global beverage division
of PepsiCo, inc. in addition to Pepsi Twist, is brands in the United states
include Pepsi, diet Pepsi. Pepsi ONE, mountain dew, Mountain Dew code
red, wild cherry Pepsi, sierra Mist, Mug, Slice, Aquarian, Fruit works, Doe
single-server Julces and So Be. The company also makes and markets
category-leading iced teas and coffees, respectively via joint ventures with
Lipton and Starbucks.



                                                                             52
  Pepsi-Cola‟s culture is informal and entrepreneurial. Our people are
  empowered to make the decisions necessary to grow the business. We seek
  to achieve outstanding results through innovation, long term partnerships,
  and an open work environment that respects the individual and promotes
  personal and professional growth
  Pepsi-cola products account for about one-third of the U.S. soft drink
  market. Brands include Pepsi; diet Pepsi, Pepsi One, mountain dew slice,
  Mug Root Beer, Aquarian and All Sport Through the Pepsi/Lipton tea
  Partnership. A joint venture of Pepsi-Cola North America and Lipton, we
  are the leader in the ready-to –drink tea market. In addition, we virtually
  created the ready-to-drink coffee category with the introduction of
  frappuccino through our joint venture with Starbucks Corporation.
  Pepsi-Cola North America (PCNA) manufactures Pepsi-Cola beverage
  concentrates and sells them to bottlers in the United States and Canada. We
  develop the national marketing, promotion and advertising programs that
  support our brands and generate new products and packaging. Pepsi-cola
  people coordinate selling efforts for national fountain, supermarket and
  mass merchandising accounts. Whether it‟s a new package or a new
  computer application, our goal is the same meeting customer needs.
 Sales Information System
  Sales Information System, which is working under marketing department, is
  responsible for making decisions regarding either to provide chiller or not, either
  to sponsor store publicity arrangements or not and etc. decisions are made on the
  basis of store look, location and amount of turnover provided by the retailer. This
  department also provides information about the distributors and their product
  requirement
 Research And SIS Department
  This department works under the marketing department and its responsibility is to


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  check the market performance of the product and provide information regarding
  the product status and its market share. They are also responsible for checking the
  performance of the new products like Mountain Dew, Its acceptance and capacity
  to launch a new product in the market.
  Market Research & SIS is a very strong department, aimed to keep current
  record of each & every outlet of the franchise. Through this system,
  management can come to know



                                                                                  53
                     Market Share
                     Name & address of each outlet. T.O.T details
                     Publicity position
                     Discount verification

       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.



Market Share:
Research Assistant Manager (Saeed Bhutta) analysis is a proprietary methodology
developed to help share determine whether their sale should go the market,& new
competitive products in this market. This analysis allows research supervisor to go into
the market, identify the components that establish market share, and determine which of
those like availability, Chiller, Empty stock in order to improve their share position.



Research supervisor analysis the market & visit the shops, they analysis and click‟s on
there checking share format after the completion of sample size, they come back and
submit these checking format to the Computer Section. Here information feed in the
computer program and generate the result in the form of Share Summary.

Define the market


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Before creating strategies, you need to define the marketplace in which you compete and
create lists of your key competitors and the various channels serving your market.

Segment the market
The first step in creating "take share" strategies is to segment the market based upon the
buying behavior of your customers. The market segments you choose must satisfy market
criteria.




                                                                                       54
Market category
              - Main
              - Side
              - Village
              - Captive

Main Market       – means main road, high volume market, wagon stands,
                     commercial area.

Side Market       – means colonies, mohallah, entrails, links road, side road

Village Market – means village sides, small areas

Captive Market – means parks, cinema, canteen, institute, govt. offices,
                    kutchary, courts.

Market Sample Size
              -   Main Market 45 % of Total Sample
              -   Side Market 30 % of Total Sample
              -   Village Market 25 % of Total Sample




Stock Base Share
              -   Availability
              -   Chiller
              -   Fresh Consumption


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              -   Floor stock

Exclusivity Base Share
              -   Pepsi Exclusivity
              -   Coke Exclusivity
              -   Mix




                                                                                55
   SIS deals with Tools of Traders (TOT). T.O.T. 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.T. 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.T. given to the shopkeeper.

                           o   Deep Freezer
                           o   Visi Cooler
                           o   Ice Chest
                           o   Bottle Rack

    Further plan for the injection of T.O.T.

    Checking all the equipment time by time any removing their complaints

FINANCE DEPARTMENT
It deals with the financial matters of the company. It collects the revenues and makes
different payments and maintains proper record of the financial performance of the
company‟s business to show the net result in the form of either profit or loss. Finance
department consist of
      Management Accountants
      Cost Accountants
      Accounting MIS Department




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HUMAN RESOURCE MANAGEMENT


All hiring and firing decisions are done locally by the franchise. There is no involvement
of even Country Office. All decisions regarding pay scales, promotions, demotions and
increments are done by the franchise itself. All training arrangements are made by
franchise itself.   All hiring is done through references there is no concept of job
advertisement in Pepsi.


                                                                                       56
                              PRODUCTION
This department is responsible for the production of the products according to the
requirements of the customers. Production department have to manage the inventory of
all types. Currently they are having five production plants and all of them are automated.
Now they are planning for the installation of three new plants. Mostly they go for
importing their production plants from Italy, Germany and Netherlands. Previously they
used to purchase Ammonia for cooling purposes but recently they have installed an
Ammonia plant with in their own premises. Now they purchase CO2 for the production
of Ammonia gas. Regarding the use of management information systems, they are
shifting their production record from manual system to computerized system. Production
department can be divided into sub departments which are
    Quality Control Department
       Quality control department is responsible for checking the quality of the product.
       After every 3 hours a quality check report is presented by this department to the
       production manager and GM technical. In case of any problem with the quality,
       after every half an hour quality is checked.


    Technical Department
       Technical department is responsible for any technical assistance needed in case of
       any plant problem. They also maintain the spare parts inventory which is used in
       case of nay breakage or malfunctioning of plant part.


    Procurement Department

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       This department is responsible for any assistance needed to purchase the technical
       parts. In case of any purchase of plant or any part of the plant they help the
       purchase department for purchasing the right part.




                                                                                       57
Bottles Washing Plant:
     In the plant, syrup (from syrup tanks) and water (from water treatment) is
     mixed at a specific ratio called flow mix. The mixture then moves to carbo
     cooler where carbonation of product i.e. absorption of CO2 in the syrup at
     low temperature is done. It then moves to filler where product is filled in
     empty bottles and crown caps are put on it. The final product moves
     towards packing machine through conveyer however most of the time
     bottles are packed into cases manually.

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.

                       IN PROCESS TESTING

BRIX INVERSION TEST


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     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.



                                                                               58
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.

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.

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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


                                                                                   59
          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.

Critical Defects: The defects that result in hazardous or unsafe conditions for
       smug, 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.

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 Carbo cooler for absorption.
                Chlorine (sodium hypo chlorite) test: Used in water treatment.
       
Post Mix tanks inspection:

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          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-inspection   Safety
  Tank#     Product   Appearance                             Washing   Filling   Performed
                                   O-ring           Wolves




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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


                          CALIBRATION
     The calibration ensures that the equipment is fit for its intended use.
     Calibration is very integral and critical because instruments are eyes into
     the process and if the are not working properly, the process may produce
     unexpected or undesired results.


PRESSURE GAUGE CALIBRATION

     The purpose is to test the non-existence of pressure difference & note if
     difference exists.



HYDROMETER CALIBRATION

     The purpose is to test the non-existence in Brix reading and note if

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     difference existed.



THERMOMETER CALIBRATION

     To assure that thermometers are properly tested for their exact temperature
     reading. The calibration is for:




                                                                             61
               o    Dial thermometers for washers
               o    Mercury/ Alcohol thermometers for laboratory testing

            pH meter model H18424 calibration
            pH meter model H8314 calibration
            Calibration for TDS meter
            Conductivity meter calibration
            Refract meter calibration
            Incubator calibration
            Syrup tanks calibration: to get actual syrup volumes.
            Temperature gauge: to test their exact temperature.
            Pressure gauge calibration
            Hand refract meter


                               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.




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    DAREQUALITY RATING
       PCI
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 SHAMIM & CO.. The color rating is based on following
criteria.



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Color Rating                      Previous                            New

                      Sensory-         Ana~cal          Sensory           Analytical
Red                   < 70 %           < 80 %           < 70 %            < 85 %
Orange                < 70 %           > 80 %           < 70 %            > 85 %
                      > 70 %           < 80 %           > 70 %            < 85 %
Yellow                70 - 85 %        > 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


 SHAMIM & CO. has been in yellow color after the standard percentage is
  Increased.

PRODUCTION PROCESS
Company is having flexible production plants. Company can change production


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according to demand fluctuations. Process is same for all products i.e. Pepsi Cola, 7-up,
Mirinda and Mountain Dew. No plant is fixed for a specific product.


1st STAGE (GETTING TREATED WATER)
„Lime‟, Farris Sulphate (for iron) & chlorine are added to raw/hard water & it goes in
“chemical tank” where carbonate and bi-carbonate are settled down, & they get
treated/soft water.



                                                                                       63
2nd STAGE (PREPARATION OF SIMPLE SYRUP)
Simple syrup is made by mixing up sugar into water after pasteurization of water at 80˚
C. After some time, this simple syrup is filtered & then cooled down at 19˚ C. Water is
boiled at normal temperature like 32˚ C to 35˚ C to kill germs.


3rd STAGE (PREPARATION OF FINISHED SYRUP)
Now this simple syrup goes into syrup storage tanks. Concentrate & flavor are added to
simple syrup & it is called finished syrup.


4th STAGE (WASHING EMPTY BOTTLES)
Empty returned bottles pass through steam under 57˚ C to 77˚ C, and then those bottles
are dried. This stage takes 45 minutes. Now bottles are washed by Caustic-Soda, TSP and
water. Now a light-test is conducted for washed bottles, where the bottles pass through a
light.


5th STAGE (FILLING SECTION)
Now finished syrup & treated water come to Carbo Cooler in which NH3 (Ammonia)
chips are used for cooling purpose. CO2 gas also comes in Carbo Cooler. After a flow-
mix in Carbo Cooler, the resultant drink comes into filler where empty washed bottles are
filled.


6th STAGE (CROWN FITTING)
Now bottles come to Crowner where they are crowned and then bottles pass through a


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light test to have a check for over filled, under filled or any deficiency.


7th STAGE (PACKAGING)
After passing through packager, the boxes of bottles are packed.




                                                                                      64
                SHIPPING DEPARTMENT
     Shipping is a very critical area for any beverage organization. It serves the
     role of coordinator or middleman between production and sales. Ensuring
     appropriate quantity and on time availability of empty & liquid stock is
     utmost important. Any malfunction in empty receiving, storage, supply to
     plants, liquid stock and distribution directly affects sales. This is a complete
     chain or cycle and any weak link, bottle neck or disturbance will slowdown
     the whole operations.
     Shipping department has following main functions.




RECEIVING & STORING NEW OR USED EMPTY

     New empty is purchased from Pakistani or foreign suppliers as required.
     Management of production, shipping and procurement takes the decision of
     when, from where and in what quantity to buy new empty.

   After approval, the purchased lot is identified with quality control passed
    stickers.
   Consignment is unloaded at the empty godown.
   Empties are transferred in cases manually and inspected for breakage.
   Cases are transferred to plant as per requirement on empty movement slip.
   Empty incharge does, stock taking and maintain daily empty stock physical
    report. Shipping department also receives used empty from dealers,
    distributors, salesman etc.
   Dealer/Salesman arranges the return of empties from market as per
    contract.
   On arrival of vehicle, dealer/salesman records entry (detail of empty) on
    gate register. A token # is issued to every vehicle.

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   Shipping staff unloads vehicle on the token number. Empty incharge
    checks then for breakage and they are sorted out physically in standard,
    junior, liter sizes and put into cases brand and size wise.
   Empty incharge prepares empty slip. Empty slip has an office copy and
    three other copies at factory one copy goes to MIS, other is for shift
    incharge at DP godown and the third is for gate office.
   Gate office reconciles the copy of empty slip with initial entry.
   Gate register has two parts, one is for gate entry and the other is shipping
    received. Details of empty slip must match with the earlier gate entry


                                                                                  65
       otherwise empty incharge & shift incharge is informed.

SUPPLY OF EMPTY TO PLANTS

         Shipping department has two godowns for empty storage. These are
         godown No.1, No.2


PEPSI TOWN

         Due to shortage of space in godown # I, empty is unloaded at godown
         # 2 or sent to PEPSI town. This empty is returned when storage space
         becomes available at godown # I. Empty is supplied to plant when
         required by production people in specific quantity. the delivery is
         through forklifts.

Daily production report.

Report          Product       Loss           Dirty         Return        To

         Sign of production office




LIQUID STOCK & DISTRIBUTION


Plant             RG I           Excise              DP          Distribution

                                 Clearance           Godown



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         From DP godown liquid stock is issued to three main parties.

i)       For the base market salesman directly take load from factory godown. At
         the end of the day, they return the empty and deposit daily cash.
ii)      SHAMIM & CO. has five depots to ensure smooth, regular supply and
         stock maintenance in other cities covering whole franchise area. The depots
         are treated like distributor /dealers. Shipping, sales and MIS staff works in



                                                                                   66
          depots. Trucks are made available by the company on contract to supply
          liquid and return empty frame depots settlement sheet of depots in prepared
          and cleared by the transfer of cash from dealer's account to company
          accounts.
iii)      Some dealers whose area is not base or under any depot's range also take
          load directly from factory and clear their settlement sheet by cash payment.

          The procedure for all three types of parties is same. The salesman / drives
          deposits empty slip to MIS computer operator. Liquid slip is issued to the
          salesman on which the quantity, size and brands are specified. Vehicle is
          loaded in the DP godown monitored cleared by stock incharge.


                   FINISHED GOODS STORAGE

          Finished goods storage should be secured against sunlight, rainfall,
          moisture and other intimidation.

        Issued on FIFO (first in, first out) basis via validity of production dates. It
         ensures that product is not expired, bad taste and visually unattractive.
        Shift wise record of daily transactions is maintained.
        These are physical stock taking for physical but not for expiry dates.


HANDLING & PACKAGING
          Forklifts are used for transferring FG shells I cases from production area to
          shipping hall or not delivery ducks to ensure product do no get damaged.

       All Pepsi Cola carbonated soft drinks are packed in glass/PET bottles or post
mix tanks. This is called primary packaging. Filled glass/PET bottles     are    further
secured by means of plastic or wooden shells/cases called secondary packaging.

PROCEDURE OF EMPTY & LIQUID IN/OUT

Empty
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 Stocktaking of empty at the
                                               IN                 Liquid

                                                    Stocktaking in the morning and
  beginning Of shift (copy)                         entry on Liquid Received and
 Empty unloading                                   Issued form Full in and liquid
 Checking for empty slips to MIS,                  receive from SHAMIM & CO. Is
 Dealer and an office copy                         added on the form.
 Addition of new arrival in copy



                                                                                     67
                                       Out                  Liquid
Empty
 Empty send to SHAMIM & CO. on               MIS issues liquid slip
  New and Others Empty Slips.
 The amount is subtracted from               Liquid is loaded on the sales
  copy                                        vehicle according to liquid
                                              Slip
                                              Minus the amount from Liquid
                                              Received and Issue form



RESPONSIBILITIES OF DEPOT INCHARGE


          Monitoring of empty and stock in charges
          Maintenance of shipping records and documents
          Reconciling physical stock with MIS reports
          Posting on balance sheet register
          Sending daily stock report and dealer wise sales report to factory
          Receiving bank slips from dealers
          Clearance of depot's settlement sheet
          Transfer of cash to friends agency account
          Maintenance of stock FIFO system

     During my visit to depot, I studied depot operations and

          The job of stock incharge.
     Performed the job of empty incharge.

          Worked on the seat of shift incharge.



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          Drew liquid laws arrangement, Depot layout and time study of
           loading & unloading of vehicles.




                                                                                68
OBSERVATION AND SUGGESTIONS

   Extremely poor situation condition at godown # 2.

   Dirty empty washing in godown # 2 is with HC1. Which is very hazardous
    to the people working there is well as it can cause problems when empty is
    filled.

   It is a very difficult task to manage vehicles parking at unloading pad,
    providing way to forklifts transferring empty to the plants, and maintaining
    lanes properly. Trunks and other vehicles have to wait for hour in queue for
    their term.

   Environmental conditions are not good. Shipping staff and labour has to
    work whole day in sales vehicles and forklift's. It causes health problem for
    them liquid is supplied to depots based on daily sales and current stock
    position. But many times they receive unneeded liquid.

   No financial or statistical technique is used to calculate what is appropriate
    stock level in a depot, when liquid should be sent and in what quantity.

   Pepsi town is a big land area. Where a huge stock of empty is lying.

   Empty should be kept under shelter to protect against weather. There is no
    proper arrangement of empties. There should be kept in an ordered and
    countable way.

   Breakage, rejected empty, TIN packs and other useless material must be
    sale out by getting maximum price.

   The job of empty incharge, stock incharge, shift incharge is very


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    demanding. It requires mental ability, efficiency, physical fitness, ability to
    manage people and space and responsibility. They are paid low as
    compared to the people of same rank in other departments.

   Shamim & Co. announces two best employee of the month awards each
    month from production and service sector. Production sector includes
    production and quality control department while service sector includes
    shipping, Admin, procurement & stress, MIS, cash and accounts
    department. This award is won by an empty incharge of shipping from



                                                                                69
   service sector. Shipping is a large department where 250/300 people work.
   There should be a separate best employer of the month award for shipping. The
   jobs of shipping staff are more physically & mentally demanding. It will
   motivate and help them to some out of the complex that shipping is an ignored
   part of the organization.


       Management Information System (MIS)
      In today's fast moving business environment, organizations are rapidly
      moving towards computerization and information systems.

      In this era of rapid of frequent changes, it provides current, reliable 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 Shamim & Co. is playing a vital role in this regard. The
      department is working with a small setup & satisfying the information
      requirements the organization with a smart staff and developed setup, the
      department has eliminated much work load, paper work and saved a lot
      previous time.

      The software system have two basic parts and these are developed in some
      programming language. The post important part of any information system
      is database. The database is the basic structure of data and defines how data
      is organized, stored and retired from memory. The database operates at the
      back end. At the front end, data is entered and retired through input screens.

      The MIS department is currently performing its day-to-day operations as
      well as involved in software development. It also provide technical
      assistance and training to other departments. At the time oracle 8.0 is in


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      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



                                                                                 70
      in production & plants. The system is helpful in getting production figures
      and reports about line utilization, line efficiency, mechanical efficiency,
      employee code, name, basic salary, allowances, tax, net pay and any other
      adjustments supplied by time office.


Sales & Distribution System:

      The most comprehensive system of MIS is sales and distribution system. It
      incorporates

                   Sales system
                   Cash system
                   Shipping system
                   Post mix system

      The basic input of this system is empties slip, liquid out slip, full in slip by
      order sips. empty short slip, the reports of the system are

                   load report ( dealer wise, depot wise )
                   settlement sheet ( dealer wise, depot wise )
                   Shipping shift summary .
                   Daily liquid out report.
                   Pending report.
                   Agent wise load out summary.
                   Agent wise sales summary .
                   District wise sales summary .


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            
            
            
                    Computerize sales statements
                    (monthly, semi annually, annually)
                    Cash report

      Filled inspection, breakage, actual production, paid time, stoppage,
      production time etc.




                                                                                   71
Excise And Sales Tax System:

      Shamim & Co. is a regular tax payer of govt. of Pakistan. it pays excise and
      sales tax according to its production and sales. the system is developed to
      keep complete record of the tax transactions. stock of the product at the RG
      I is maintained after production. the stock is moved to DP       (duty paid)
      godown after its clearance by excise inspector and payment of 15 % tax. at
      RG I, closing stock of a day is opening RG I stock plus day's production
      and minus tax clearance.


Payroll System:

      There is separate payroll system for Shamim & Co. and Friend's Agency.
      The output of the system is pay slips and payroll report at the end of month.
      Payroll report incorporates.

      All these reports are extremely important in the day-to-day operations of
      the abovementioned departments. In addition, customized reports can be
      obtained as required. The system is implemented at each depot as well.

CASH DEPARTMENT
      Cash department does cash handling (collection and payment). The major
      part of cash collection is from dealers and salesman based on their
      settlement sheet and daily sales report. Cash payment is done on the
      vouchers issued by accounts department. Payments include employee's pay,
      bills, allowances, procurement expenditures and day to day general
      expenses.

                        AUTO WORKSHOP
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      The function of auto workshop department is top provide repair,
      overhauling and maintenance services to the vehicles used in the
      organization. These vehicles include Mazda, Toyota, Hino, Suzuki, Honda
      and forklifts (Toyota, TCM) of different models and capacity. Total number
      of vehicles served by the auto workshop is about 140. the responsibility of
      auto workshop is to keep PEPSI fleet efficient, deendable and energetic.
      Different departments particularly shipping and sales use these vehicles.
      Vehicles outside # are mostly used by sales staff. In case of some major


                                                                                72
        work, it comes to workshop however if there is nominal repair work, they

        have it done locally. The staff of the department consists of 20 persons
        including mechanics. Record keeper, supervisor and headed by auto0
        workshop manager.


DOCUMENTS / REPORT IN THE DEPARTMENT:
        Daily performance report:

Vehicle #     Detail of      Visit           Job                     Name     of     Driver‟s     Remarks
              work           outside         complete/Incomplete     mechanic        name Sign.
                             work



        Monthly performance report of auto workshop:

Maintenance    Engine          Welding         Engineering    Engine     Tier tube    Servicing   Motorcycle
work           Complete        Fabricating     work from      Oil        changing     &           repair work
               overhauling     Denting         local market   changing   repair       Greasing
                               Painting                                  work         work




     Work order indicating defect, repair work and remarks and after repair a
      certificate showing that maintenance work is alright signed by the driver of
      the vehicle.

     Work order for market.
     Log book in each vehicle for each driver.

     Gate pass

     Store requisitions for transport spare parts and stationary. A small section
      of store working under main store is maintained in the workshop


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THE DEPARTMENT HAS FOLLOWING SECTIONS
       Electrocution section
       Tire maintenance section (compressor) Body welding section
       Service section
       Tool room



                                                                                                          73
WORKING PROCEDURE
 For any repair work, the driver must fill a work order signed by his respective
  in charge. The work order is also necessary for cars and motorcycles.

 The work order is refereed to record keeper who hands over to supervisor after
  entering in register and reports to work shop manager in case of accident.

 The supervisor is responsible for assigning the job to mechanic by matching
  the type of work and his skills.

 In case of some work required from market, supervisor himself goes with the
  vehicle or assigns one mechanic to monitor market work.

 The driver signs the work order certificate after his complete satisfaction.


OBSERVATION / SUGGESTIONS
 Standards are set for mobile oil change, air filter change, mileage etc. of
  different vehicles. The data needs to be maintained and regularly evaluated.

 Specialized workers are needed to work on different parts of vehicle e.g. spring
  load, radiator etc. as well as for petrol and desile vehicles. Specialist mechanics
  demand higher pay. For this reason, department has to get services from
  market.

 There has been no training for mechanics, they are learning only by time.
  Mechanics can acquire new skills and save expenditures by attending short
  courses as one diploma holder mechanic is praised by department head because
  of his ability to communicate and better understand problems.


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 Maintenance and smooth of vehicle is dependant upon driver's understanding
  and care for the vehicle. There is no formal training for drivers as well.

 Short training camps should be arranged by the department conducted by
  engineers of the companies/dealers from where SHAMIM & CO. purchases
  vehicles.




                                                                                  74
                 PROCUREMENT & STORES
      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 SHAMIM & CO. 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.



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                   Past performance record
                   Competitive price in market
                   Delivery requirement of Shamim & Co.
                   Availability of items in the market

Purchases can be divided easily into




                                                                                75
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.
Shamim & Co. 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

       Production department sends monthly demand and quotations for the


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       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.




                                                                                      76
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

      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


ACCOUNTS DEPARTMENT
The job of the department is to maintain books of accounts. There are following


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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.


                                                                                 77
                   EXCISE DEPARTMENT
      Shamim & Co is a regular taxpayer of excise and sales tax to govt. the
      procedure is that production per hour of each plant is counted and noted in
      cases and bottles. The excise duty and sales tax is calculated as per govt.
      rate. The liquid stock of RG 1 is moved to DP godown after clearance and
      daily deposit of sales tax. The company and all its dealers pay sales tax at
      the end of each month. Sales tax and excise duty is also paid on some raw
      material as sugar, crown caps, concentrate etc. the department maintains
      following documents

                   RG 1 register
                   RG2 register
                   AR 1 form
                   Daily production report (shift bases)
                   ACL register


      The department is concerned with collector rate of central excise and sales
      tax, production department, shipping department and MIS department.



POST MIX DEPARTMENT
The post mix department is responsible for installation, maintenance and filling
of fountain fresh (post mix) machine in eight districts of Multan    franchise

Dispensing is today's "action package" carbonated soft drink in POST -      MIX
and PREMIX forms, coupled with compact, high volume, refrigerated dispensing

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equipment, represent convenience and increased profits for dealers and profit
opportunities for the bottler. There has been a little
PRE-MIX dispensing area in the Pakistani
But now it has grown a lot due to the
                                                         growth in the POST-MIX /
                                                   Beverage Market until the 2004.
                                           following factors.

Pressure on retailers to improve selling methods and techniques. Rapid increases
in the volume of soft drink consumption in outlets with storage   remaining
limited.




                                                                               78
THE IMPORTANCE OF DISPENSING MARKET

    Dispensing market varies from country to in size and types of out let. The
    title ON Premise identifies any out left where product can be purchased
    with or without food for consumption on or near the premises.

    The On-Premise market is one of the most markets in a Bottlers franchise.
    Its importance in the continued growth and success of the Bottlers business
    cannot be under estimated in its effects on:


          o      Profitability
          o      Consumer awareness
          o      Consumer sampling
          o      Product Visibility
          o      Volume growth
          o      Chilled product sales
          o      Impact on take home sales




POST MIX MACHINE

    Post Mix machine is U.S. made and it has following main components.



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                 o      Water bank
                 o      Congesture
                 o      Cooling system
                 o      Walves
                 o      Syrup tank(s)
                 o      CO2 tank




                                                                            79
    Post Mix Department installs machine at any suitable place with the cash
    security of Rs, 30000. Along with Post Mix machine, they also provide
    counter, water tank, water filter(s), disposable glasses, disposable plates,


    machine maintenance and service. The cooling system is almost like
    refrigerator or fridge cooling system.
    However gas cylinders are attached to the machine for gas mixing. Syrup
    and water mix-up happens in wolves at-4 C .So the customer gets fresh,
    cool product in no time. The water used in fountain fresh machines is
    acquired from locally available source, It is stored in water tank and filtered
    once, twice or thrice depending on the purity of the water. With one syrup
    tank of PEPSI, TEAM and 7-Up, equivalent of 19 cases standard bottle is
    obtained, While syrup cylinder of MIRINDA has the capacity of providing
    equivalent of 16 cases standard product.

    Until now total 118 has been installed in different districts and approx. 114
    are working while others needs repair. There is further demand of about
    100 machine


POST-MIX SYSTEM

    The syrup mixed with water and CO2 at the customer account. POST-MIX
    containers can be bifurcated in Transfer Tank.

    The Post Mix system differs slightly in principle from the PRE-mix system.
    The difference is related to the way the finished beverage is produced for
    sale to the consumer. The bottle fill the beverage syrup into stainless steel
    tanks at production plant and transport the tanks to retail outlets. The
    operation of POST -MIX system is as follows.



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    Compressed CO2 Gas flows from the storage cylinder through gas a
    pressure regulator where it is reduced to the working pressure of the
    carbonator, then through a pressure relief valve and back flow check valve
    to a juncture where the CO2 line gets divided. One segment going to
    secondary regulators and the other to carbonators and the other to
    carbonator tanks.

    The flow of CO2 from the secondary regulators goes to the syrup
    containers. Syrup flows from the containers to the refrigeration unit and



                                                                                   80
     then to the dispensing valve. The CO2 gas directed to the carbonator
     assembly enter a small capacity tank which contains potable water
     automatically controlled to a predetermined level in addition to the tank. Its
     safety valve, the carbonator assembly includes a motor driven water pump
     to force the potable water into the tank against the CO2 pressure. The

     carbonated water from the carbonator .

     Connect dispenser to a separate outlet. Turn power switch ON. Thoroughly
     flush all incoming product lines before connecting them to the dispenser.
     Turn on the water supply and allow the carbonator to fill completely.

     Lift relief valve ring until water flows from relief valve openings. Relief‟s
     ring and allow closing.

     Turn on CO2 gas and adjust regulator to 75 psi.

     Activate a valve until pump starts. Close valve and allow pump to cycle.
     Dispense drinks from each valve to purge and remaining sanitizer from the
     syrup lines and establish quality carbonation in the carbonator .


TRANSFER TANKS

     The most common packaging from for both PRE-MIX and Post Mix
     product is the Stainless Steel Tank. This tank comes as either a single entry
     or double entry system. Each has specific advantages and disadvantages.
     Both PRE-MIX and Post Mix product can be stored in either single or
     double entry system

DOUBLE ENTRY TANKS

     Double entry tanks have separate gas inlet and liquid outlet plugs. The


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     standard double entry tank size can hold 18 Liters of product. However the
     double entry tanks are also available in other sizes.

SINGLE ENTRY TANK

     The single entry tank is generally made of stainless steel and can be
     obtained in different sizes. This tank is not commonly used for dispensing
     soft drinks. To date its use has been within the brewing industry.




                                                                                81
TANK AND CYLINDER REQUIREMENT

      One question the reader will need to ask is the ratio between tanks and
      cylinders per units purchased. The answer is dependent on these factors:

                   The length of distribution chains.
                   The sales volume per outlet.
                   The product Mix ( some flavors move faster than others )
                   Frequency of calls.
                   Control of stock levels.


EXAMPLE OF POST MIX TANK REQUIREMENT

       One product tank contains the equivalent of 19 standard cases of 250 ml
finished product, therefore an outlet selling 40 case per week would require the
following minimum stock to cover a basic four flavor installation.

TANKS
                 Outlet Machine Stock           4 Tanks
                 Outlet Reserve Stock           1 Tanks
                 Factory Shipping Stock         3 Tanks
                 Factory Production Filling      2 Tanks
                                   Total: -10 Tanks


CO2 CYLINDERS
             Outlet Machine Stock                      1 Cylinder
             Outlet Reserve Stock                      1 Cylinder
             Factory Stock                             1 Cylinder


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             Total: -                                  3 Cylinders



DISPENSING DEPARTMENT STRUCTURE
      In a simple way, the department can be considered to have four main
      functions.




                                                                               82
SALES
              Security Deposit Receipt.
              Legal Agreement papers.
              Installation site sheet
              Installation & pick up order .
              Quality control functions.

SERVICE
              Preventive maintenance card.
              Wastage Record.
              Complaints log.
              Spares usage Record
              Quality control & sanitation.
DELIVERY
              Delivery Card.
              Sales History Card Account Cash Record

WORKSHOP
              Daily sale & stock report
              Issue / Collection slip.
              Future needs Technical Development.
              Repair Section
              Store Section

POST MIX SALES OFFICER RESPONSIBILITIES.
          1.   Customer Service.


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          2.   Conducting Annual surveys of accounts.
          3.   Preparing a sales plan for growth in conjunction with the Post
               Mix Manager.
          4.   Grouping accounts into geographic routes for delivery
          5.   Helps in selection of sales man cum technicians.
          6.   New outlet development.
          7.   Existing outlet development.
          8.   Merchandising
          9.   Quality checking




                                                                          83
OUTLET SELECTION
   Dispensing equipment is very expensive and therefore every care must be
   taken to ensure that the outlet have proper annual yield. As with any
   installation of Post-Mix equipment, it is important to first undertake a site
   survey. Until this is done it is not possible to ascertain the equipment
   required. The points that need to be checked are:

      1.     Volume through put.
      2.     Type of unit required & space for product tanks
      3.     Construction, alteration and other details.
      4.     Water and electrical requirements.
      5.     General Details and deliveries.
      6.     Proper space for air circulation.
      7.     Dealer and staff are trained or not.

   The machine is normally installed in parks, shopping centers, college
   canteens, ice-cream parlors, busy roads, burger comers etc. The department
   is having five vehicles for visits of each machine after every two days.
   Different routes are planned in various areas. With every route/vehicle,
   there is a technician, driver and helper. The purpose of the route is to
   replace empty syrup tank, cleaning and maintenance work of machine and
   resolve any complaint. Special routes are arranged in case of urgent
   complaint or immediate syrup tank requirement. The technician also
   performs the job of salesman. Cylinders are delivered on cash and it is
   responsibility of technician to collect cash and later submit it at cash office.
   During the route, they have to arrange their meal for which no allowance is
   given. Technician s get a commission of Rs. 2.50 per cylinder sale.
   Currently sales
   Officer is incharge of the post mix department and performs his job as well.

   Various forms/documents/reports used in the department are:
              Post Mix installation/removal orders
              Duty slip

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         
         
         
               Overtime register
               Main store requisition
               Daily complaint register
              Daily technician report
              Part/outlet wise sales report
              Requisition for publicity
              Daily post mix report
              Individual technician files
              Party wise profiles


                                                                                84
SUGGESTIONS
        Fountain fresh department is an area which requires much more attention.
        Though currently it is working with its capacity and covering five districts
        with a smart staff. The organization should take it as a SBU and concentrate
        on it because of

     High expected growth
     PEPSI has currently no competition in this area
     No problem of empty
     It does not requires a huge plant setup and works with simple setup and
      very low overhead
     No chance of fake bottle

        So the sales can be increased dramatically by better management and
        boosting up Post Mix department.


PROBLEMS
    There is job dissatisfaction and very low motivation on the staff due to:

 Low salary
 Daily allowance has been eliminated
 Overtime is rewarded in terms of holidays not in monetary terms. According to
  technicians, they normally do not get a chance of making allowed vacations
  due to workload so the extra holidays are of no use for them.
 Higher positions are filled from outside, people within the department should
  be promoted to the chief technician and sales supervisor level.
 Technicians perform the responsibility of salesman for which they get just Rs.
  2.50 per cylinder that is very low.
 Computer is present in the S.O. office but no one in the department is really


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  qualified to get use of it.
 Sales targets are set without the consent of staff.
 Post Mix staff has no knowledge of ISO.

        During the route riding, I observed following points

       The key issue is proper and compatible combination of technician, helper
        and driver . these people should work as a team in the field and must
        possess the characteristics that make a team successful i.e. technical



                                                                                 85
        competence, trust ----.
       The group should move with full preparation i.e. all required slips,
        necessary tools, tested equipment.
       The vehicles must be fit and available on time. It is in their best interest and
        make their job safe, convenient and speedy.
       The new machines are not available for installation. Used machines and
        counters make shopkeepers unhappy.
       The behavior of the staff with shopkeepers is generally good. The outlet
        owners have the Post Mix office number complaints and the response is
        efficient.


                       INVENTORY MANAGEMENT
Pepsi Cola Multan is handling four types of inventories which are


       RAW MATERIAL
        Raw material like syrup, sugar, filter papers, CO2, Ammonia, Empty bottles,
        packaging material, Bottle cases, Chlorine, Corks and Crowns etc.
       WORK IN PROCESS
        Work in process will contain all those bottles which are under the process of the
        filling and packaging. At the end of shift work in process inventory of is
        transferred to other shift.
       END PRODUCTS
        End products are in the form of cases containing 24 bottles. End product
        inventory is managed in two ways
            1. Production department after production stores their finished goods in their
                godown which is located in the premises of factory.




    
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            2. Sales department transfer their needed inventory in their godown and issue
                required amount of cases to distributors.
        SPARE PARTS
        Spare parts inventory will contain items like Gear boxes, Belts or conveyers,
        Motors and Switch boards etc.




                                                                                       86
TYPE OF INVENTORY
They are maintaining anticipation inventory but at very minimal level as products are
not stored for a long-time period.

INVENTORY CONTROL SYSTEM
Pepsi Cola Multan follows periodic review system for inventory management. So
inventory is reviewed normally on weekly basis and some times after. Some time daily
reviews are also made. Each month the store prepares monthly consumption report.


REORDER POINT
Reorder point is calculated on two bases. Firstly they calculate the daily requirement of
the raw material and then they check the level in the stock room. For some items they
maintain the maximum and minimum level when the level of raw material touches the
minimum point they order the raw material. For two main items reorder points are as
following
      Sugar is reordered when it is left for only 100-batched or 1000 Kg
      Concentrate is ordered for 2 to 3 times a year

LEVEL OF INVENTORY
Pepsi Multan maintains a low level of inventory because they face pressure for low level
inventory due to following factors

      Company wants to provide fresh products to its customers.

      Holding cost of inventory is high.

   
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       High inventory causes high tax




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                      SUPPLY CHAIN MANAGEMENT
Supply-chain management aims at synchronization of a firm‟s activities/ functions
and those of its suppliers to match the flow of materials, service and information
with customer demand.

SUPPLY CHAIN IN PEPSI COLA MULTAN

Supply chain of Pepsi Cola Multan consists of following entities

      Raw Material (From Suppliers)

      Pepsi Cola Multan (Production Of Products)

      Distributors

      Retailers

      Customers




       Suppliers                       Pepsi Cola                    Distributors
                                        Multan
                       Raw material                       Finished
                                                           Goods
                                                                            Products
                                              Direct Sales


                      Customer                           Retailer


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                                         Item




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SUPPLIER SELECTION
The first priority is given to quality while selecting suppliers, by the Company. Price is
considered after quality & delivery time at last.


DISTRIBUTOR SELECTION
Distributors are selected on the following basis
       Ability to meet the given target
       Geographical area he is covering


RETAILER SELECTION
Retailer is selected on the following basis
       Location of the shop
       Look of the shop
       His know how with the customers
       His ability to meet the sales target


DIRECT SALES
Rural areas where there are no distributors, Pepsi Cola Multan goes for direct sales to
retailers. They offer the same price per unit as offered to distributors. In case of
distributors, for transportation truck are also available to transfer creates from company
godowns to distributor godowns.


SATELLITE WAREHOUSE
They are planning for satellite warehouses which will enable them to have flexible


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timings for loading and unloading of trucks and storage of products closer to the
customers.




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                                    CAPACITY
Capacity is the max rate of output for a facility. The facility can be a workstation or an
entire organization.

CAPACITY IN PEPSI COLA

Pepsi Cola Multan measures its capacity in term of number of cases produced per day per
plant. All the cases including standard, non returnable, Liter and PET.


CAPACITY MEASUREMENTS

Average out put rate = 20,000

Maximum capacity or Peak capacity =

Effective capacity =


YEAR VISE PER PLANT CAPACITY

2004 (With Four Plants)
      Plant#1. Standard. Two fillers.(40+40) 22000 Cases/Day
      Plant#2. Standard and PET. 20000 Cases/Day and 16000 Packets.
      Plant#3. Liter 10000 Cases Nr 12000 Packets and Standard 14000 Cases.
      Plant#4. Standard 13500 Cases/Day
      Total capacity (Standard converted) 80000 Cases/Day.

2005 (With Addition Of Fifth Plant)


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      Plant# 1. Standard 22000 Cases/Day.
      Plant# 2. Standard 20000 Cases & 16000 Packets PET/Day.
      Plant# 3. Liter 10000 Cases Nr 12000 Packets & Standard 13500 Cases /Day.
      Plant# 4. Standard 13500 Cases /Day.
      Plant# 5. (New Addition) 15000 packets. pet/day
      Total capacity (Standard converted) 100000 Cases/Day.




                                                                                       90
2006 (Projected With The Addition Of SIMONAZI Plant)
      Plant#1. 22000 Cases Standard.
      Plant#2. 20000 Cases Std. 16000 Packets Pet.
      Plant#3. 18000 Cases Lit. 20000 Packets Pet
      16000 Packets Nr 16500 Cases Standard (New addition of 80 filler and Rinser).
      Plant#4. Standard 13500 Cases/day.
      Plant#5. 15000 Packets PET/day.
      Plant#6. 100 valves SIMONAZZI complete line 57000 Cases Std/day.
      Total capacity (std. Converted) 165000 Cases/day.




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                                      LOCATION
Pepsi Cola Multan is situated near MDA (Multan Development Authority), on the road
leading to Nishtar Hospital i.e. District Jail road.


SELECTION OF LOCATION
The major factor was proximity to markets in selection of location.


LOCATION ANALYSIS
The location described above is favorable for Pepsi Cola Multan due to following factors


       MARKET RELATED FACTOR
        Pepsi Cola Multan has proximity to its major market i.e. Multan City which has
        been declared by Pepsi Company; „The Pepsi City‟ This location is very much
        helpful for Pepsi Cola Multan, in competition also to maintain proper distribution
        to reduce transportation cost & time etc.
       TANGIBLE FACTORS
        Labor is easily available from villages & city at normal wages. No problem is
        there for supply of electricity. Most essential raw material i.e. water is easily
        available to them. Transportation cost is low. Multan is the center of their
        distribution area and they can easily fulfill the requirements of the southern
        Punjab areas.
       IN TANGIBLE FACTORS
        Community attitude is positive towards Pepsi Cola. Working conditions are quite
        good for employees i.e. No harm is there for their health & psychology.



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PROBLEMS OF CURRENT LOCATION
Factory is located in the residential areas with no proper parking arrangements for its
vehicles. Loading and unloading of trucks can take place only in the night because of the
law permitting trucks to enter into urban areas only in the night. So they can only load
and unload trucks between 10 PM to 6 AM.




                                                                                       92
SOLUTION
In order to overcome this problem they are planning for satellite warehouses which will
enable PEPSI to have flexible timings for loading and unloading of trucks and storage of
products closer to the customers.


LAYOUTS
Layout is physical arrangement of economic activity centers within a facility. An
economic activity centre can be anything that consumes space. In other works layout is
physical arrangement of people, equipment or activities.
APPLICATION IN PEPSI COLA MULTAN
Pepsi Cola Multan works with product layout type, as resources are arranged around the
product‟s route. Computer application is also there in making layouts.
      PLANT LAYOUT
       A single manufacturing plant consists of following different parts
               1. Filler
               2. Chiller
               3. Washer
               4. Crown fixer
               5. Conveyer
       All these parts should be arranged in a proper sequence to reduce the production
       time. At first washed bottles are transferred to filler through the conveyer belt and
       both filler and chiller are located at the same place in order to keep the filling
       liquid cool at the time of filling.


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SOME MAIN LAYOUTS IN PEPSI COLA MULTAN
      Layouts of Equipment
      Manufacturing layout
      Office layout
      Retail layout
      Distribution & warehouse layouts



                                                                                         93
              PROJECTED FACILITY LAYOUT IN YEAR 2006

                           RESIDENTIAL AREA
                                                        SHAMIM & CO.(PVT.) LTD.
                                                              MULTAN.
                                                                2006


                                                                        TURBINE
                                                                          NO.2




                                                               SITE FOR
                                                            SIM ONAZZI 100

RESIDENTIAL                                                   BOILERS
   AREA                                                                 TURBINE
                PET                                                       NO.3
                LINE


                                                        SYRUP
                                                        ROOM
                                                        EXTN.




                                                           AMMONIA
                                                         COMPRESSORS


                       MAIN ROAD              TURBINE
                                                NO.1




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                                                                                  94
                               FORECASTING
In Pepsi Cola Multan, the base for forecasting is “precious data about sales”, which is
provided by sales department. After analyzing the data, the forecast is made. Executive
Opinion is also used in forecasting i.e. Opinions, experience & technical knowledge of
related managers. So forecasting in Pepsi Cola Multan is a blend of analysis of data &
executive opinion.


PATTERNS OF DEMAND
Demand for products of Pepsi Cola Multan follows Seasonal Pattern i.e. repeatable
pattern of increases or decreases in demand, depending on the time of season.


FACTORS AFFECTING DEMAND
There are two types of factor affecting the demand of the product which are internal and
external factors they are given below


      EXTERNAL FACTORS
       Now-a-days, the biggest factor affecting demand of products of Pepsi Cola
       Multan is the competitor‟s action, the action/policies of Coca Cola Company e.g.
       There effective advertising companies etc. Govt.‟s rule & regulations about taxes
       & prices also influence the demand by affecting the price of products.


      INTERNAL FACTORS
       Some internal factors influencing the demand are given below


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               1. Price of product
               2. Proper advertisement
               3. Good distribution channels


UNIT OF FORECASTING
In Pepsi Cola Multan forecast is made in term of cases where one crate = 24 bottles




                                                                                      95
DESIGN OF FORECASTING SYSTEM
In Pepsi Cola Multan forecast in made about all four products separately


TYPE OF FORECASTING TECHNIQUE
In Pepsi Cola Multan forecasting is made for short-term period i.e. for a quarter or 3-
monts




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                                                                                    96
                          AGGREGATE PLANNING
Aggregate plan is a statement of production rates, work-force levels and inventory
holdings on estimates of customer requirements & capacity limitations. Since Pepsi Cola
Multan is a manufacturing co., so it‟s aggregate plan is also called production plan.

UNIT OF AGGREGATION
Aggregate plan is expressed in terms of cases. Which are also called SKU (stock keeping
units)

STRATEGY FOR AGGREGATE PLANNING
Pepsi Cola Multan follows chase-strategy. As we know that demand-pattern for Pepsi
Cola Multan products is seasonal. So due to seasonality of demand and chasing of
demand the company follows the chase strategy

WORK FORCE ADJUSTMENT
Company has 2-types of employees:
        Employees at permanent basis.
        Employees at contract basis
All the permanent and contract basis employees are hired locally. No decision or
strategies are imposed by the country office in the hiring or firing of the employees.
There are about 50 to 60 permanent employees which works through out the year. On the
other hand

WORK-FORCE UTILIZATION
Work force utilization takes place in three forms

   
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         Overtime
         Normally there is not the tendency of over-time in Pepsi Cola Multan as
         management thinks that productivity of workers is reduced during over-time.

        Under Time
         The permanent workers are also paid, the under time but the workers on contract-
         basis are paid on the basis of working hours so under time is not paid to them.



                                                                                           97
      Vacation schedule
       Pepsi Cola Multan gives incentives for vacations in slack-season. Vacations are
       given on the basis of labor-laws in Pakistan. Company does not adopt aggressive
       alternatives, as co has not complementary products creative pricing


             MATERIAL REQUIREMENT PLANNING
Material requirement planning system enables business to reduce inventory levels, utilize
labour and facilities batter and improved customer-service.
In Puts to MRP
1) Bill of material (BOM)
„BOM‟ is a record of all the components of an item, the parent component relationship
and usage quantities derived from engineering & process designs.
The simple „BOM‟ for Pepsi Cola Multan‟s product is as following.


                              1- Case of bottles



            Case (1)                                           Bottles (24)




                  Crown (24)           Print            ARTICLE I.              Syrup




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                                          Returned               Purchased



                                                 R              Concentrate
                                 ART IC L E II. AS T IC L E II I. W             A R T I C L E I V. O
                                 UGAR           AT E R                           THERS




                                                                                      98
End item              = 1-case of bottle
Purchased items       = raw material cases
Intermediate items = Bottles, Syrup
Sub-assemblies        = Bottles, Syrup


2) Inventory Records
In inventory records, Pepsi Cola Multan, uses to order after variable periods of time and
of variable quantities, depending upon:
Item with highs load time is “Sugar”
Item with lowest load time is “ Co2
3) Master product Schedule (MPS)
MPS, details about production of end times items within specified period of time.
In Pepsi Cola Multan, MPSs are prepared normally on weekly basis.




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                                                                                      99
                             QUALITY CONTROL
It is quite clear that emphasis on the high quality is only thing to sustain in the market.
Quality is important due to following reasons:
    Product liability
    International liability
    Cost and market share


Regular sample picked by the representative of PCI in the factory and sent to America for
the analysis regarding to quality. These standards are:
Green       Excellent
Yellow      Good
Orange      Satisfactory
Red         Warning
Machinery maintenance is also checked. At this time Pepsi achieve the Green for the
standard.


RAW MATERIAL TESTING
Raw material used in production, comprises of following items.
    SUGAR
    TREATED WATER
    EMPTY WATER
    CARBON DIOXIDE
From the above items previously the franchiser from USA provided concentrate.



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Following tests are made for the quality
    SUGAR TEST
    WATER TREAT MENT TESTING
    SYRUP TESTING
    FINISHED PRODUCT TESTING




                                                                                          100
WATER TREATMENT

      Water is the main ingredient of the beverage product. Raw water is treated
      so as to make it free of all impurities and use in the process.


WATER TESTS

Water Testing 2P-M Indicator Method:

      The purpose of "2P-M" or " A " alkalinity test is to verify that water
      treatment plant is operating correctly and final treated water for processing
      conforms to standards. High alkalinity leads to undesirable effects. The
      frequency of the test is after every half-hullr.


Total Dissolved Salts Testing In Water:

      The purpose is to provide rapid, indirect evaluation of the total dissolved
      salts in a water sample. The level of total dissolved salts is a useful measure
      to gauge the overall consistency of the mineral contents in the water, which
      ultimately effect the quality of beverage. The frequency of the test is after
      every four hours.


Water Test Chlorine Residual:

      Chlorine "residual" is the amount of chlorine that remains after the natural
      chlorine demand of the water has been satisfied. Two fold purpose of the
      test is:



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      1.     Where chlorine is necessary , to demonstrate that the level of
      chlorine present is adequate for water oxidation & disinfections purposes &

      2.     Where chlorine is prohibited, to confirm that it is absent.

      The frequency of test for water treatment is after an hour and for washer
      final rinse is once in a shift.




                                                                                 101
Taste, Odor And Appearance: Treated Water:

        The purpose of this test is to provide a rapid, gross evaluation of major
        defects in treated water for syrup & beverage making. In this test, the taste,
        odor and appearance of treated water samples are assessed hourly.


Water Hardness Test:

        The hardness in the water will affect the beverage quality as well as
        produce scale in washers, boilers etc. water hardness is gradual decrease in
        the tendency of water to form foam due to presence of impurities like
        chlorides, soleplates etc.

SUGGESTIONS
        Fountain fresh department is an area which requires much more attention.
        Though currently it is working with its capacity and covering five districts with a
smart staff. The organization should take it as a SBU and concentrate       on it because
of

       High expected growth
       PEPSI has currently no competition in this area
       No problem of empty
       It does not requires a huge plant setup and works with simple setup and very low
        overhead
       No chance of fake bottle

        So the sales can be increased dramatically by better management and
        boosting up Post Mix department.


PROBLEMS
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    There is job dissatisfaction and very low motivation on the staff due to:

   Low salary
   Daily allowance has been eliminated
   Overtime is rewarded in terms of holidays not in monetary terms. According to
    technicians, they normally do not get a chance of making allowed vacations due to
    workload so the extra holidays are of no use for them.
   Higher positions are filled from outside, people within the department should be



                                                                                       102
    promoted to the chief technician and sales supervisor level.
   Technicians perform the responsibility of salesman for which they get just Rs. 2.50
    per cylinder that is very low.
   Computer is present in the S.O. office but no one in the department is really qualified
    to get use of it.
   Sales targets are set without the consent of staff.
   Post Mix staff has no knowledge of ISO.

       During the route riding, I observed following points

      The key issue is proper and compatible combination of technician, helper and
       driver . these people should work as a team in the field and must possess the
       characteristics that make a team successful i.e. technical competence, trust ----.
      The group should move with full preparation i.e. all required slips, necessary
       tools, tested equipment.

      The vehicles must be fit and available on time. It is in their best interest and make
       their job safe, convenient and speedy.
      The new machines are not available for installation. Used machines and counters
       make shopkeepers unhappy.
      The behavior of the staff with shopkeepers is generally good. The outlet owners
       have the Post Mix office number complaints and the             response is efficient.




       RECOMMENDATIONS FOR THE COMPANY.
     Proper hierarchical system


               The biggest problem we found in the organization was the lack of a
       proper system, which is immensely important for such an organization.



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       This is a typical Pakistani family business where the owner is making the
       decisions all the time.

       There is no succession planning, as it is apparent from the hiring of the
       production manager from outside.




                                                                                        103
 Proper system of reporting
         There was no proper system of communication as who is to report
  to whom and who is responsible of what. If a simple technical worker
  encounters a problem in the plant or any part of the equipment is broken,
  he at once rushes to the production manager as what to do. This is clear
  that they have no proper reporting system as to deal with the broken part
  of the equipment is not the job of the production manager.

  There must be clearly defined levels of communication. The technical
  worker must report to his immediate supervisor. If that supervisor is
  unable to solve the problem then the official next to him should be
  consulted and be proceeded in the same pattern. The matter will reach the
  production manager but in a systematic way. So company needs a proper
  communication and reporting system. It may also help in reducing rather
  eliminating false reporting.



 Employee training
  We see that when the new production manager was hired, he, for
  implementing new techniques, gave lectures to the employees and also
  recruited new ones. So there is lack of training of the employees in the
  organization.

         Generally Pepsi International has manuals for the managers that
  describe the standard procedures and typically called as “THE PEPSI
  WAY”. These are the guidelines, which must be passed on the employees


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  as how the work is to be done. What happened in the past is that the
  managers kept hiding these manuals from the employees and placed them
  under lock and key. The current production manager has taken an
  important step as he is preparing notes from these manuals and passing
  them on to the employees. But still it is not enough. Because the plants of
  the factory work in mistake at any process can cause a serious problem
  for the other plant, which may lead to a severe mishap for the whole



                                                                                104
    production. So in this way the employee training has got the significant
    importance.

For corrective action following steps lead to success for the organization:

   Periodic training programs
   Classes for unskilled persons
   Updating of skills of the employees.



 Performance appraisal
            The performance appraisal system in a manufacturing organization
    is a very tricky job. For example evaluating the performance of one shift
    that has done the maintenance of the plant should be treated as separate
    from the performance of the employees in the next shift that has got higher
    production. The reason is that the second shift might be having less
    efficiency than the previous one and the credit goes to the second shift.

            The previous shift workers should be rewarded more than the next
    shift because they had done the maintenance and kept the plant in working
    condition. The second shift workers just have capitalized on the work of
    the previous shift workers. That‟s why the performance evaluation is very
    important as it directly deals with the motivation of the employees. If the
    employees feel that they have not been rewarded according to their jobs,
    they may show little or no involvement in their tasks and may indulge in
    activities that often hinders the efficiency of the production unit.




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    They mighty start

    Making groups
   Making false reporting
   Try to create obstacles for others
    For this reason the company needs specific performance standards for
    specific tasks.



                                                                                  105
 Employee Motivation


         Whenever someone talks about motivating the employees, it is
  commonly said, “Don‟t forget the money consideration”. So, apart from
  motivation through training for the work, the employees must be rewarded
  with proper reward and compensation systems.



  The company is also lacking in this area. Getting rewards especially when
  it is in the form of money or cash motivates the employees.

  So we emphasize on proper reward and compensation system and a fair
  level of salaries for all the employees in the factory. Salaries were stagnant
  due to the stagnant production for the last 15 years. As the production has
  gone up and it is just due to the employees so the salaries of the employees
  must also be raised. Their commitment and involvement can be increased
  by raising their salaries and rewards.




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                                                                                   106
  Thanks

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             107

								
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