1.

EXECUTIVE SUMMARY

Pepsi Cola International (PCI) is providing a diverse range of products in overall markets of the
world & especially in beverages it has made a strong position in the markets of almost all
Asian countries. Pepsi Cola International's marketplace experience, technical expertise and
innovation capabilities reflect its market leadership.
Pepsi cola is also very popular in Pakistan that’s why its market share is about 65% in the soft-
drink market. Pepsi Cola International, a remarkable name in the cola industry is doing its
business in Pakistan through franchising. Naubahar Bottling Company, (Pvt.) Ltd. Gujranwala,
Pakistan is one of them (franchise).

I did six weeks internship in departments including Advertising & Marketing Equipment
Management (MEM), Production, and Shipping, Sales & Distribution, Marketing and Research
Department (MRD) and Human Resource (HR) department. Although there were no big
problems found in the working of the company, there were some problems like busy
management schedule, the internees were not properly managed in appropriate department.
Some of the recommendations include increasing the product’s quality, applying the SAP
database system.

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 2. BACKGROUND OF HOST ORGANIZATION

Pepsi Cola International (PCI) has very fascinating history of its products in the market. From
its humble beginnings the people of Pepsi make the story what it is - including its inventor,
customers, competition, corporate managers, salesmen, distributors, cartoon spokes-persons
and including some of the biggest names in entertainment history. There have been good
times and bad times - plus lots and lots of changes over the years. If you enjoy Pepsi, you'll
enjoy the stories of the people who have made it possible.

PCI is operating from last 40 years and is offering a range of high quality products of following
brands through a regional network of 27 exclusive Pepsi franchise bottlers.
,
Pepsi Cola Brands
Frito-Lay Brands
Tropicana Brands
Quaker Brands
Gatorade Brands

In year 2010, the company’s sales were of $1 billion of each brand. And the number of
employees became almost 125,000. Pepsi Cola has franchised its products in Pakistan and
those franchises are offering following products:
Pepsi,
Pepsi Diet,
Pepsi Max
7up
7up Free
Team
Mountain Dew
Mirinda
Sting
Slice
Aqua Fina
Lays
Tropicana Juice
Gatorade Energy Drink

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 Lipton
Cheetos

PCI is providing diverse products internationally i.e. beverages, food units and snacks. It has
improved its profitability in the world, due to which the company has gained a stronger position
in overall market of the world.

Currently in Pakistan, beverages market is one of the most competitive markets. Pepsi Cola
products are number one selling beverages brand in overall Pakistan. Hence in 1990, the
beverage sales volume became 2.7 million. And during the period of 1990-1998 the average
market share of Pepsi was approximately 90 percent. All the Pepsi franchises in Pakistan
claim that their major goal is to expand the market as a whole. Therefore, there was a time
when only Pepsi was holding the entire share of beverage market in Pakistan.

Following is the list of locations of Pepsi franchises in Pakistan,

Multan
Gujranwala
Lahore
Karachi
Faisalabad
Peshawar
Islamabad
Sukkher
Hyderabad

Naubahar Bottling Company (Pvt.) Ltd. Gujranwala is number one bottling company between
all PCI franchises of Pakistan. The company has exclusively renewed its bottling license from
time to time. Initially Naubahar Bottling Company (NBC) was working with Coca Cola as their
franchise, but then in 1981, the company decides to break the agreement with Coca Cola &
joined Pepsi Cola on 27th May, 1981. The company sells its products in following districts.

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 Gujranwala
Gujrat
Hafizabad
Mandibahaudin
Jhelum
Sialkot
Narowal
Chakwal
Sheikhupura

The company is involved in the production of following products of Pepsi Cola International:
Single Served Returnable Bottles of Pepsi, 7up, 7up free, Team, Mountain Dew,
Mirinda, Sting Gold Rush, Sting Berry Blast, Slice Apple and Slice Mango.
Multi Served Returnable Bottles of Pepsi, 7up, Team, and Mirinda.
1 liter Pet of Pepsi, Pepsi Diet, 7up, 7up free, Mountain Dew, Mirinda, Slice Apple and
Slice Mango.
1.5 liter Pet of Pepsi, Pepsi Diet, 7up, 7up free, Team, Mountain Dew, Mirinda.
300ml of Pepsi, Pepsi Diet, 7up, 7up free, Mountain Dew, Mirinda.
500ml of Pepsi, Pepsi Diet, 7up, 7up free, Mountain Dew.
Single Served Non- Returnable Bottles of Pepsi, 7up, Mirinda.
Comprehensive table of these products is attached as Table 1 in Annexure.

NBC has currently seven manufacturing plants,

Unit-1 (Model Town)

Five Production Plants
Unit-2 (Attawa)
Two Production Plants
The company decided to implement ISO 9001 in 1998, the experiment was successful but
currently the company has changed its policies and left that ISO.

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Currently, the company’s market share is more than 60 percent. The company is currently at
maturity stage (cash cow). The company has both permanent & daily wage employees.
However daily wage basis employees are hired as per the requirement of the production.

The company has following departments:

Human Resource Department
Management Information System (MIS) Department
Procurement Department
Production Department
Shipping Department
Marketing & Sales Department
Post Mix Department
Finance Department
Storage Department
Quality Control Department
Marketing Equipment Management Department
Advertising Department

The company is selling 56 Stock Keeping Units indifferent districts and detail of districts in
which they are doing their business is attached as table 2 in Annexure.

NBC is currently having 56 Stock Keeping Units and list of those units in given as table 3 in
Annexure.

Logos of Pepsi:

Pepsi logos had been changing from time to time and sequence of those logos is attached as
Picture 1 in Annexure.

Mission Statement

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The key objective of the company is to produce and supply products of high quality, which
confirms to both the national and international quality standards. The company is committed to
provide maximum level of customer satisfaction.

Future Planning

The company is planning to shift its complete setup to Pepsi Town keeping in view the current
setup; the company has recognized a big need of this plan. The shift to Pepsi town is huge
project & includes many benefits related to the company. Also the production manager has
considered our suggestions keenly & he assured us that he’ll implement the possible
suggestions.
Also the company is planning to stop the production of Team, but currently there is a huge
demand of Team at Gujranwala which has forced the company to produce Team. Currently the
company has started the process of carrying out Team from market in a slow manner. The
company is planning to shift its database on SAP software; SAP is a modern database system
& is more efficient than Oracle.

3. BUSINESS OPERATION

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 i) Organizational Structure (Organizational Chart)

The company has well experienced, loyal & hardworking team management, and following
are the main organization’s heads,

Top Management Of NBC

Managing Director (Owner) Shamim Khan

Director Adnan A. Khan
Factory Manager Aftab A. Khan
Sales Manager (Local) Saeed Ullah Khan
Sales & Marketing Manager Ahmad Khan
Production Manager Atif Afzal
Human Resource Manager Qamar Bilal
Business Analyst Asim Awan
Marketing & Services Manager Qamar Bilal
Logistics & MIS Manager Naveed Ahmad
Audit Manager Malik Hameed
Finance Manager Abid Hussain
Accounts Manager Malik Hameed
Cash Manager Malik Fida
Market Services & MRD Manager Mahmood Ahmad
General Manager Atiq Baloach
Excise Manager Malik Mustafa
Market Equipment Manager Imran Meer

And the company is operating through the following hierarchy,

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ii) SWOT Analysis

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 SWOT analysis is discussed under the following,

Strengths
Naubahar Bottling Company has very big share in overall beverage market of Pakistan.
Not just in the business of pepsi products but also it has very special plant of Shells
(cases/crates in which glass bottles are kept) manufacturing.
The sales department of company is the core department of the organization. Although
the pepsi products are not liked by large amount of the customers but yet the company
is having big market share.
Company’s database is made available to its departments and everywhere via Wide
Area Network.
Company’s records availability on computers has made it possible for the company to
keep a complete eye upon its daily transactions.

Weaknesses

Pet bottles of company are of low quality as compared with the pet bottles of coke
products.
There is no expiry date printed upon the bottles; it makes the customer uncomfortable to
purchase the pepsi products, especially in Pepsi.
The company is basically focusing on profits only and has ignored the economical
conditions of the country.
The light inspectors at the production plant are not directed properly and are not made
available with knowhow of above/below the level bottles.
The low level labors are not satisfied with the incentives provided to them.
Human Resource department has no check upon the behavior of all departments’
managers with the employees.
The marketing process of pepsi is not fast.
The company does not hire females except at inspection plant. The company has failed
to recognize the power of diverse workforce.
The company’s setup seems like a local factory; the company is failed to create a
culture of an international organization.

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 The company is using an old database (i.e. oracle) and the database designers are not
advanced as well.
Although the company has shifted its data in computers but yet a lot of entries are done
manually on paper.

Opportunities

The company can improve its products taste. Especially if the company improve the
amount of CO2 in Pet bottles, their product can become successful.
The company can introduce Slice Mango with new concept by adding CO 2; this product
can take place in the hearts of their customers as there is no mango carbonated drink
produced before.
If the company shifts its database to SAP software; their database work can become
faster.

Threats

Company is only focusing upon its major competitor (i.e. Coke) & has ignored its
upcoming competitor (i.e. Gourmet Cola etc).
Coke’s strategies are destroying the market share of Pepsi products day by day.
If the company will not try to improve its products quality; Coke can decrease its big
market share.

iii) Marketing Strategy

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The marketing strategy is applied in the market by Marketing Research Department (MRD).
The department’s work is to keep an eye upon the marketing activities. The MRD performs
following tasks in order to keep a constant check on the market.

Retail Audit

In retail audit, the market share is identified in a random order by each Sales Officer.
The Marketing Research Officer (MRO’s Team Leader) is assigned to perform this
activity thoroughly. Therefore the share is checked in two ways i.e. Numeric
Distribution Share & Market Weight-age Share. This report is prepared on monthly
basis.

Stock Verification

The Marketing Research Officer verifies the distributor’s stock in order to make sure
that the distributor has not dumped his stock in order to get an advantage over more
sales. This stock is verified twice a month.

Verification of Marketing Development Reports (MDR)

The sales department creates a report of its sales through which they are awarded
different incentives. MDR identifies this report physically & then report to top
management, so that after the check the related sales person is awarded.

Verification of Key Accounts Reports

The key accounts are also verified properly in order to give incentives to the key
account handler.

Trade Age

Trade age is based on the check of bottle from the code printed on it.

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 The code of bottle consists of the following,

Code Printed On Pepsi Products of Naubahar Bottling Company

L11 Year of manufacturing
214 Day of year
CX NBC’s code
3 Manufacturing plant number
SS Signature of chemist on duty
16:20 Manufacturing Time

The Marketing Research Officer team keeps a check on the bottles of Gujranwala
base area in order to assure that no bottle on the retail shop is available for more
than 17 days.

Census

Census is done after a very long period of time (once in years). The purpose of this
activity is to find out how much number of outlets Naubahar Bottling Company has?
Therefore from the census of year 2008, the company was having 192 outlets in all
areas.

Fake Manufacturing Plants Detection

The Marketing Research Department keeps a strong check on the fake cola
manufacturing plants & takes a powerful action against such manufacturing plants.

Questionnaire

The Marketing Research Department usually assigns this work to internees. The
internees gather questions & the questionnaires are filled from the market which is
assigned to the internees.

iv) Competitive Strategy

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 This work is done by Marketing Research Department. The Marketing Research Officers
monitor the competitor’s market share regularly. Pepsi beverages are more available in
overall beverage market of Pakistan; therefore the company follows its own strategies
regarding providing incentives on their products to distributors. Usually they do not lower
their prices due to their main competitor (i.e. Coke). Especially in Gujranwala, the coke has
failed to make a generous profit in the market.

v) Business process analysis

a) Production Department:

The following diagram shows the process of flow at production department.

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At first, the empty bottles are transferred from shipping department these bottles then moves
towards un-caser, un-caser puts the empty on conveyer belt which leads to the washing plant,
in washing plant the bottles are washed till 20minutes. In production department, inspection
takes place at two levels. Internally inspection takes place at various levels. First after
washing, bottles are inspected. If inspection is Ok, the bottles move forward to the filler plant &
in case of rejection; the bottles move back to the shipping department. At filler plant the empty
bottles are filled including required taste concentrate, sugar syrup, treated water (pure water) &
carbon dioxide. After the bottle is filled, it is again inspected; if the inspection is Ok, the bottle
moves for further inspection & if the bottle is rejected it moves to the rejected bin. After this
process external inspection takes place. If inspection is Ok after filling and rejection of
defected bottles, the bottle moves to the packer & is stored at the Registered Go-down (RG).
Then it is loaded on trucks & if the bottle is rejected at that level, it is transferred to shipping
department.

b). Marketing Equipment Management Department:

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The following diagram shows the process of flow at marketing equipment management
department.

At first, the demand for the Chiller is raised from the sales department in-order to increase the
sales on a particular outlet. This demand moves towards MEM department’s head who if
approves the demand the formal work of papers is then done by the outlet’s owner through
sales man. The MEM head issues order for issuing the chiller to the Go-down at Pepsi Town,
The asset is cleared at the Gate & a gate pass slip is issued, then the asset is transferred at
related outlet, & all this activity is updated with the stock. And after all that activity the sales
person confirms the physical presence of the asset at the outlet.
If somehow for any reason both parties wants to end their contract, the contract papers are
returned to the outlet’s owner & the asset is sent back to the Go-down at Pepsi town.

c). Shipping Department:

The following diagram shows the process of flow at shipping department.

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At first, the liquid clearance slip is issued to the vehicle driver, the vehicle then moves into the
Registered Go-down One (RG1) & offloads the finished goods at RG1. The liquid clearance
slip is collected by the Clearance boys & the liquid stock of RG1 is updated. The vehicle after
this process moves back to the same process. And at RG1 a new process starts with the
distributor’s or sales person’s vehicles with their entrance at the go-down. Here the vehicle is
loaded with the required liquid stock & the vehicle is then checked finally by the gate security
officer, after that the gate pass is issued to the vehicle driver & the stock is updated again.
Then the vehicle leaves the warehouse.

4. LEARNING AS A STUDENT INTERN

i) Duties

Mr. Basharat Zia (HR Executive) moved us in following departments in the form of a group
of five members.

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 Advertising & MEM Department
Production Department
Shipping Department
Sales & Distribution Department
Marketing & Research Department

Therefore almost every department assigned us a task to perform.

At Advertising Department Mr. Mohammad Nadeem assigned us to prepare a SWOT

analysis of their advertising department including below the line activities of both Coke
& Pepsi along with suggestions.(Report is attached with in annexure)

At MEM Department Mr. Imran Meer assigned us to survey the condition of chillers
which are issued to the pepsi outlets. He gave us a questionnaire and asked us to fill it
according to the outlet conditions.(Due to confidential data, questionnaire was not given
to us).

At Production Department Mr. Atif Afzal assigned us to generate a complete week

report with strengths & weakness of their department including suggestions.

At Shipping Department Mr. Manzoor Hussain assigned us to figure out the overall work
of shipping department and include suggestions.

ii) Accomplishments

The following are my accomplishments during my internship,

At Advertising Department we prepared a brief report on the SWOT analysis of

marketing department of Coke & Pepsi (Gujranwala Companies Only), we added all
below the line activities & also gave our suggestions & hence submitted the
complete report within four days.

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 At MEM Department the assigned work was based on outside visit & there was no
vehicle provided by the company for our survey therefore we (female fellows) did not
go for the survey we sent our two group fellows (male fellows) for market survey. But
as the survey questionnaires were provided by the department therefore we do not
have physical form of this task.

At Production Department, we described our daily tasks along with the suggestions
based on daily tasks. And we also included the strengths & weaknesses of
production department. We submitted the complete report within two days.

At Shipping Department we over viewed the complete department thoroughly &

prepared a brief report on shipping department & submitted it after six days.

iii) New Knowledge Acquired

It has happened to me for the very first time that I came to know that how in real
world an organization deals with its employees, how they manage their tough
schedule & most important now I know that how pepsi is produced & in what
conditions the carbonated beverages life decreases.
Now I know that the reality is very unfamiliar from the bookish knowledge because
every organization has its own defined rules. Especially at NBC the low level
employees are not secured to their jobs i.e. there is no concept of labor unions at
this company. However the on the whole the company’s setup is well organized (i.e.
the duties assigned to each department are clearly defined).

iv) Problems Encountered

Although the overall organization setup was at its best but no organization can become
100% perfect. During my internship I faced following problems,

The organization’s HR executive has no strong decision making power, therefore; I

suffered a lot of problems regarding my first week of internship i.e. Proper work was not
assigned to us.
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 The HR department has very busy schedule they did not assigned any employee for
answering our questions regarding the Human Resource department.
The company did not ask internees about their specialization courses therefore the
internees did not get enough knowledge regarding their specialized field.
All the departments of the organization are very strong but they were failed to manage
their time regarding internees. That’s why we remained mostly free during our internship
except in production department.
In our first day, meeting the company’s person ensured us that they will move us in all
the departments of their organization but it did not happen at all.
Each department’s head gave us group assignments but due to company’s policy they
did not provide us computer for making the assignments. We faced a lot of problems
regarding this work; because whenever there is a group assignment; all the fellows do
not participate in making the assignment.

v) How Experience Impacts My Career

Whenever someone works in any organization some experience is always gained

that can help us in professional life. My internship has helped me in understanding
the practical life, the problems that can be faced and how those can be dealt with.
As Naubahar Bottling Company is franchise of an international company. So, when
we work in any reputable organization, that helps us in finding good jobs, leaves
good impression on employer.

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Bibliography

 http://www.pepsico.com/Brands/Pepsi_Cola-Brands.html
 NBC & Shipping Catalogue
 http://www.pepsico.com/Download/PepsiCo_Annual_Report_2010_Full_Annual_Report
.pdf
 http://www.nostruminc.com/whoweare/ourblog/?p=1460

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ANNEXURE
21
Picture 1: Logos of Pepsi

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Table 1: Production Table of Products of PCI
SKU’ Products Manufactured at Naubahar Bottling Company
s Peps Peps 7u 7up Tea Mountai Mirind Sting Sting Slice Slice
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 i i Diet p Fre m n Dew a Gold Berr Appl Mango
e Rus y e
h Blast
SSRB          

MSR    
B
1 liter        
Pet
1.5       
liter
Pet
300ml      

500ml     

SSNR   

Table 2: Districts of Naubahar Bottling Company

Districts of Naubahar Bottling Company
Regions Regions Further Spread Sales and
Names Distribution
Managers
Sialkot Sialkot Base Sialkot East Sialkot West Amir Razzaq
Gujrat Gujrat Base Gujrat Out Mandibahaudin Chaudhary Iftikhar
Shahdara Shahdara Shahdara Tanveer Qureshi
Base Out
Jhelum Jhelum City Chakwal Mirza Jawad Baig
Sheikhupur Sheikhupura Nankana Tanveer Qureshi
a Base
Gujranwala Gujranwala Gujranwala Hafizabad Saeed Ullah Khan
Base Out & Hussain Saigal

Table 3: List of Stock Keeping Units

SKUs Products Sold at Naubahar Bottling Company
SSRB MSRB 1 1.5 2.25 300ml 500ml SSNR CAN
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 Liter Liter Liter
Pet Pet Pet
Pepsi         

Pepsi     
Diet
7up         

7up Free      

Team   
Mountai       
n Dew
Mirinda       

Sting  
Gold
Rush
Sting  
Berry
Blast
Slice  
Apple
Slice  
Mango
Aqua  
Fina

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