View
507
Download
1
Category
Preview:
Citation preview
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
BRIEF HISTORY OF PEPSI COLA INTERNATIONAL
In 1893--Caleb Braham, a young pharmacist from New Bern, North Carolina, begins experimenting with many different soft drink concoctions; patrons and friends sample them at his drugstore soda fountain with the name of "Brad's Drink,
In 1898, it is renamed as “Pepsi cola “on August 28, 1898. Pepsi-Cola receives its first logo. Weekly the first Pepsi-Cola newspaper advertisements appeared in the New Bern Journal. Mr. Braham devotes all of his energy to developing Pepsi-Cola into a full-fledged business He applies for a trademark with the U.S. Patent Office, Washington D.C., and forms the first Pepsi-Cola Company.
1903--"Doc" Braham moves the bottling of Pepsi-Cola from his drugstore into a rented warehouse; he sells 7,968 gallons of syrup in the first year of operation.
1904--Braham purchases a building in New Bern known as the "Bishop Factory" for $5,000 and moves all bottling and syrup operations to this location. Pepsi is sold in six-ounce bottles. Sales increase to 19,848 gallons.
1905--Pepsi-Cola's first bottling franchises are established in Charlotte and Durham, North Carolina.
Pepsi receives its new logo, its first change since 1898.
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." There are 15 U.S. Pepsi bottling plants. The Pepsi trademark is registered in Canada. Syrup sales rise to 38,605 gallons.
1907--Pepsi-Cola Company continues to expand; the company's bottling network grows to 40 franchises. Pepsi-Cola sells more than 100,000 gallons of syrup.
University of the Punjab, Gujranwala Campus 1
HIS
TO
RY
Vision
PepsiCo’s responsibility is to continually improve all aspects of the world in which we
operate environment, social, economic – creating a better tomorrow than today
Tomorrow > Today
We believe Sustainability lives at the intersection of public and corporate interest. It
encompasses citizenship and corporate social responsibility, which are about doing the
right things for society and for the business. It encompasses the health of the Company,
which is about fulfilling our mission of creating financial rewards and growth.
Mission Statement
“To be the world's premier consumer Products Company focused on convenient foods
and beverages. We seek to produce healthy financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our business partners and the
communities in which we operate, and in everything we do, we strive for honesty,
fairness and integrity.”
PEPSICO IN PAKISTANPEPSICO IN PAKISTAN
2
Pepsi cola is also very popular in Pakistan that’s why its market share is about 90% in
the soft-drink market. Pepsi Cola International, a remarkable name in the cola industry is
doing its business in Pakistan through franchising. PCI has developed following bottlers
in Pakistan till now. Naubahar Bottling Company is the largest manufacturer and
distributor of Pepsi Cola soft drinks in Pakistan.
These franchises are located in:
Karachi
Lahore
Multan
Faisalabad
Gujranwala
Peshawar
Islamabad
Sukkher
Hyderabad
NAUBAHAR BOTTLING COMPANY
3
The
Company in which I done Internship
Organization:
Naubahar Bottling Company
Address:
S.I.E, Model Town, Gujranwala, Pakistan
Naubahar is a largest franchise of Pepsi cola International .producing and distributing international brands like Pepsi, teem, & 7up and Mountain dew .plant is situated in Gujranwala, Pakistan
About employees
There are 1500 employees attached with the production department in with about 800 labors are permanent and others are on contract base. 120 employees attaches with the sales and other departments.
Plant capacity
Naubahar Pepsi cola industry has a moderate and big plant. It can produce 600 bottles in one minute. It has also the water treatment plant which can take raw water from 500 dept, treat and filter it and then store it. Plant can store 20’000 gallons
Location Advantage
Water level is up than other locations and quality of water is good, due to this it is cost effective.
4
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Naubahar Bottling Co. (Pvt.) Ltd. (NBC) is one of the nine (09) franchises of “Pepsi Cola
International” in Pakistan. Naubahar Bottling Co. (Pvt.) Ltd. (NBC) first was involved in
the business of manufacturing and marketing of Coca-Cola. Later on it started
manufacturing and marketing business with Pepsi Cola in May 27, 1981. The Area
allotted to it, was Gujranwala Franchise. The franchise area consists of the following nine
districts.
1. Gujranwala
2. Gujrat
3. Hafizabad
4. Mandi bhaudin
5. Jehlum
6. Sialkot
7. Narowal
8. Sheikhupura
9. Chakwal
The company operates through a well-established network of a number of distributors.
The company has two types of delivery systems i.e.
Director 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 an indirect
distribution; the dealer spends his own resources on all the factors which increases the
sales volume:
University of the Punjab, Gujranwala Campus 5
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Direct Delivery System
Manufacturer Retailers Customers
Indirect Delivery System
Manufacturers Distributor Retailers Customers
Objective
The major objective of the company is to produce and supply of highest quality, which
confirms to both the national and international quality stands. The company is committed
to provide maximum level of customer satisfaction.
Future Planning
The company operates through well experienced, loyal and hardworking employees
exceeding 800. 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.
Company has also recently purchased plants from “Double Cola”. There were 02 plants
installed for the production of 250ML (NR) bottles. Company is now changing these
plants to 250ML (RB) Plants and also another plant is being installed there for the
production of:
1500 ML (PET)
2250 ML (PET)s
500 ML (PET)
The company has planned to bring these plants into operations by August 2006 and it has been registered as “Safina Enterprises Ltd.”
University of the Punjab, Gujranwala Campus 6
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
OUR CORE VALUES
CUSTOMER FOCUS
We treat each of our customer equality & as the most important person while we interact
with him/her. We must ensure that we do everything to meet and exceed the customers
expectations with perfect to times, accuracy & quality services.
EMPLOYEE RESPECT & DIGNITY
We treat each of our employees with fairness, which includes giving constructive
feedback for their development. We celebrate diversity and seek suggestions from all
employees for improvement. We ensure that responsibility & fairness in all our decision-
making.
TEAM BASED APPROACH
QUEST FOR QUALITY We ensure that each moment of our time is spent on value adding activity. We always
seek ways for exceeding expectations of customers & colleagues. We also ensure that we
do things right, first time every time.
University of the Punjab, Gujranwala Campus 7
We work towards achievement of our vision & mission as a combines group. We
encourage inter & intra-departmental communications. We treat our colleagues
as our internal customers & ensure that the requirements of internal customer
focus are always met.
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
BOARD OF DIRECTORS OF PEPSICO
University of the Punjab, Gujranwala Campus 8
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
University of the Punjab, Gujranwala Campus 9
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
University of the Punjab, Gujranwala Campus 10
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
MANAGEMENT OF NAUBAHAR BOTTLING COMPANY
Managing Director (Owner) Mr. Shamim Khan
Director Mr. Adnan A. Khan
General Manager Mr. Aftab A. Khan
Sales Manager (Local) Mr. Saeed Ullah
Khan
Sales Manger (Out) Mr. Ahmad Khan
Plant Manager Mr Aarif Sarwar Qureshi
Production Manager Mr Muhammad Khan
Human Resource Manager Mr. Asif Hamid
Business Analyst Mr. Asim Awan
Marketing & Services Manager Mr.Rana Qamar Bilal
Shipping & MIS Manager Mr Naveed Ahmad
Audit Manager Mr.Malik Hameed
Finance Manager Mr. Abid Hussain
Quality Control Mr.Aftab Tassaduqe
MANAGEMENT HIERARCHY
University of the Punjab, Gujranwala Campus 11
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
MARKETING MIX OF NAUBAHAR BOTTLING
University of the Punjab, Gujranwala Campus 12
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Marketing is the task of creating, promoting and delivering goods and services to
consumers and businesses. Organizations identify and profile distinct group of buyers
who might prefer or require varying products and marketing mixes. The customer seeks
for value and satisfaction. The organizations can increase the value of the customer
offering in several ways e.g. raising benefits, reducing costs etc. marketing mix is a set of
marketing tools that the firm uses to pursue its marketing objectives in the target market.
These marketing tools are known as 4 p’s of marketing. These four marketing tools are
viewed as 4c’s by the consumers.
4 P’s 4 C’s Product/ Service Customer Solution
Price Customer CostPlace Convenience
Promotion Communication
To identify the customer needs and fulfilling hem is the basic objective of an
organization. Marketing is not just satisfying your customers, you have to delight them
and this can be done by acting upon this phrase.
“Under Promise and Over Deliver”
Naubahar Bottling Company provides a winning combination of products and services to
its prime customers. PepsiCo is one of the world leading companies, which ensures
complete security, and reliability in all transactions.
PRODUCTS
University of the Punjab, Gujranwala Campus 13
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
A product is anything that can be offered to a market to satisfy a want or need and a
service is an act or performance that is essentially intangible and does not result in the
ownership of anything. What products or services have to be offered to the target market
depends on the market requirement and also the organization’s profits. The organization
will offer those products and services, which result in maximum profits and minimum
costs.
There are following contents according to which types of PEPSI are described.
Cola
Coffee-related
Diet-related
Fictional Varieties
Parodies
BRANDS INTRODUCED IN PAKISTANBRANDS INTRODUCED IN PAKISTAN
Pepsi cola Pepsi Diet
Teem
Pepsi Twist
Marinda
Aquafine
7 up
Mountain Dew
University of the Punjab, Gujranwala Campus 14
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
PEPSI MARKETING PHRASESPEPSI MARKETING PHRASES
The Pepsi marketing phrase has also changed many times. The marketing folks at the
company felt free to invent new phrases whenever they thought the public would be
receptive to the change.
University of the Punjab, Gujranwala Campus 15
1909-1939: Delicious and Healthful 1939-1950: Twice As Much For A Nickel Too 1950-1963: The Light Refreshment 1953-1961: Be Sociable 1961-1963: Now It's Pepsi For Those Who Think Young 1963-1967: Come Alive! You're In The Pepsi Generation
1967-1969: Taste That Beats The Others Cold
1969-1973: You've Got A Lot To Live, Pepsi's Got A Lot To Give
1973-1975: Join The Pepsi People Feeling' Free
1975-1978: Have A Pepsi Day
1978-1981: Catch That Pepsi Spirit
1981-1982: Pepsi's Got Your Taste For Life! 1983-1983: Pepsi Now! 1984-1991: Pepsi, The Choice Of A New Generation
1991-1995 "Got to Have It".
1995-1997 "Nothing Else is a Pepsi".
1997-1999 "Generation Next".
1999-2000 "Ask for More"/"The Joy of Cola".
2000-2003 It's the Cola"/"Dare for More".
2003-Onward Dil ha tu mango more
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
PEPSI LOGOSPEPSI LOGOS
The Pepsi logo has changed many times over the years. Here's a chronological history of
the various logos.
2003
University of the Punjab, Gujranwala Campus 16
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
THE MAJOR BRAND OF THE MAJOR BRAND OF NBCNBC IS PEPSI 250 ML, HAVING HIGHEST MARKET IS PEPSI 250 ML, HAVING HIGHEST MARKET
SHARE WHICH IS 47% AS COMPARED TO OTHER BRANDS. THE OTHERSHARE WHICH IS 47% AS COMPARED TO OTHER BRANDS. THE OTHER
BRANDS PRODUCED BY THE ORGANIZATION AREBRANDS PRODUCED BY THE ORGANIZATION ARE
PEPSI PEPSI
PEPSI DIETPEPSI DIET
MIRINDAMIRINDA
TEEMTEEM
7UP7UP
7UP DIET7UP DIET
MOUNTAIN DEWMOUNTAIN DEW
University of the Punjab, Gujranwala Campus 17
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
COMPLETE PRODUCT LINE OF NAUBAHAR BOTTLINGCOMPLETE PRODUCT LINE OF NAUBAHAR BOTTLING COMPANY (NBC)COMPANY (NBC)
BRANDS PACKING UNITS VOLUME
PEPSI 250 ML 24 bottles per case 250 ML per bottle
1000 ML 12 bottles per case 1000 ML per bottle
1500 ML(PET) 6 bottles per case 1500 ML per bottle
175 ML 24 bottles per case 175 ML per bottle
POST MIX 1 Cylnder 114000 ML
1000 ML(PET) 6 bottles per case 1000 ML per bottle
330 ML CAN 12 bottles per case 330 ML per bottle
300 ML(NR) 12 bottles per case 300 ML per bottle
MIRINDA 250 ML 24 bottles per case 250 ML per bottle
1000 ML 12 bottles per case 1000 ML per bottle
1500 ML(PET) 6 bottles per case 1500 ML per bottle
POST MIX 1 Cylnder 96000 ML
1000 ML(PET) 6 bottles per case 1000 ML per bottle
330 ML CAN 12 bottles per case 330 ML per bottle
300 ML(NR) 12 bottles per case 300 ML per bottle
TEEM 250 ML 24 bottles per case 250 ML per bottle
1000 ML 12 bottles per case 1000 ML per bottle
1500 ML(PET) 6 bottles per case 1500 ML per bottle
POST MIX 1 Cylnder 114000 ML
1000 ML(PET) 6 bottles per case 1000 ML per bottle
300 ML(NR) 12 bottles per case 300 ML per bottle
7UP DIET 250 ML 24 bottles per case 250 ML per bottle
1500 ML(PET) 6 bottles per case 1500 ML per bottle
330 ML CAN 12 bottles per case 330 ML per bottle
7UP 250 ML 24 bottles per case 250 ML per bottle
1000 ML 12 bottles per case 1000 ML per bottle
1500 ML(PET) 6 bottles per case 1500 ML per bottle
POST MIX 1 Cylnder 114000 ML
1000 ML(PET) 6 bottles per case 1000 ML per bottle
University of the Punjab, Gujranwala Campus 18
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
330 ML CAN 12 bottles per case 330 ML per bottle
MOUNTAIN DEW 250 ML 24 bottles per case 250 ML per bottle
1500 ML(PET) 6 bottles per case 1500 ML per bottle
330 ML CAN 12 bottles per case 330 ML per bottle
PEPSI DIET 250 ML 24 bottles per case 250 ML per bottle
1500 ML(PET) 6 bottles per case 1500 ML per bottle
330 ML CAN 12 bottles per case 330 ML per bottle
300 ML(NR) 12 bottles per case 300 ML per bottle
University of the Punjab, Gujranwala Campus 19
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
PRICE
It is second important tool of marketing mix because it plays a major role in determining
the customer’s choice. Also it is the only marketing tool that results into revenue. The
customer makes a comparison between the prices offered by other companies and
PepsiCo and then selects the most suited offer. Following is the list of prices of different
products
NBC Products Prices250 ML of each brand Rs 101000 ML of each brand Rs 301500 pet ML of each brand Rs 40
Naubahar Bottling Company normally uses on going price strategy by seeing its major
competitor Coca Cola besides this company also uses Discount price strategy during
special occasions.
University of the Punjab, Gujranwala Campus 20
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
PLACE
The location of the organization plays a vital role in making its operations profitable. If
the organization outlets are located in some near markets then it will be very easy for it to
attract people. Therefore NBC has most of its outlets at places where it can reach its
targets customer easily. Following are the major areas which come under operations of
NBC:
Sialkot Gujranwala Gujrat Shahdara Jehlum Sheikhupura Narowal (Recently Established
Main customers in Gujranwala are
Shelton hotel & BakersMeer bakersAsim bakersArif cold cornerWapda town marriage townAzim tea and cold cornerRehman cold cornerBeauty general storeAl jennet banquet hall
NBC identifies their target market in Gujranwala division through following ways.
General storesCold cornersParksTraffic areas and public areasRetailers and distributorsVegetables and fruit shops
University of the Punjab, Gujranwala Campus 21
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Competitors
Following are the competitors of NBC
Coca cola is one of the major competitorsAmmarat colaMacca colaRc colaDouble colaJolt cola
University of the Punjab, Gujranwala Campus 22
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
PROMOTION
PepsiCo is actively participating in promotion of its products and services through
advertisement and other promotional schemes. PepsiCo spends a major portion of its
budget on advertising. Advertising is done through different ways like
Point of Purchase Promotion
University of the Punjab, Gujranwala Campus 23
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Personalizes Marketing
Pepsi Culture
PepsiCo has also developed its culture among children and Next Generation is its Slogan.
Now Pepsi has become the need of everyone and it is only possible due to its strong
promotion.
University of the Punjab, Gujranwala Campus 24
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
FIELDS OF ACTIVITIES
University of the Punjab, Gujranwala Campus 25
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Naubahar Bottling Company is the franchise of Pepsi Cola International. It performs all
the operations through its different department, only company receives Concentrate
(basic formula) from Pepsi cola international and remaining other activities are
performed by the company itself. Following are the major departments of NBC.
HRM
MIS
Purchase
Production
Shipping
Marketing & Sales
Cash and Accounts
Audit & Taxation
HRM DEPARTMENT
Recruitment Procedure in NBC
Major sources of potential job candidates are
University of the Punjab, Gujranwala Campus 26
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Newspaper Adds
Internal Search Advertisement
Employees Referrals (Permanent Employees of NBC)
Manager’s Recommendations
The candidates are selected on the basis of
Written Test
Interview by HR Manger
Interview by Concerned Department Head
Final Interview by MD/Director
Interviews for worker level job where qualification and skill requirement is low, this
formal procedure is not adopted rather candidates abilities are fledged by department
head and sent to factory manager for approval. Orientation is the introduction of new into
his or her job & the organization. This is for few selected persons in NBC training is
generally on the job employees in all departments are bearing by the time or with the help
of seniors.
OBSERVATION & SUGGESTION
There should be proper planning by:
Assessing current human resource standards & generating human resources inventory.
Assessing future human resources needs by organization’s strategies & future programs.
University of the Punjab, Gujranwala Campus 27
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
After assessing current capabilities of future needs a program should be developed to have right person for the right job & at right time.
At the moment, HR department is itself facing staffing problem & it seems to be non existent.
The selection process through which candidates pass is very slow & time consuming pass is very slow and time consuming. Candidate have to sit day long waiting for management approval to start test & then. There is service of interviews which have no time table. It is generally three four days patience test & trouble some for candidates from other cities or already doing jobs.
For the medical bills and small loan employees need to get managing director’s approvals and then pass through a long procedure. It should be simplified. Department heads should be authorized to approved loans and medical bills up to a certain amount.
Computer & job related aptitude test should also be made part of selection tests to have better job personality fit.
Performance appraisal has only once but it was a useless exercise because its results were not used in future planning or changes. Performance appraisal should be conducted:
To know development & training needs of employees. To get performance feed back. Anticipate direction for future performance To change/ compensation system.
There is not idea of planned career development in NBC. Career development can be in term of job rotation, transfer & promotion. It improves the organization's ability to attract of retain talented people, anticipating change & helping employees to learn new skills and improve utilization of a personal abilities.
Motivation is the willingness to exert high level of effort to reach organizational goals. The general level of motivation in NBC employees is very low and in NBC employees is low and they are dissatisfied with their jobs and pay scales. Only best employee of the month program is implemented highlight employees whose work performance is excellent.
University of the Punjab, Gujranwala Campus 28
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
There would be lobbies or affiliations in the organization. These should be canalized in positive approach e.g. mentoring, communication link instead of source of conflicts.
Teams (functional, self-managed, cross functional, problem solving) should be to speed decisions, increase performance, facilitate cooperation & improve employee morale.
There must be some channel to communicate employees problem/suggestion/comments directly to top management e.g. suggestion box. These suggestions should be discussed in quality control meetings.
No attitude surveyor any internal research has ever conducted by the HR department to get insight of employees thinking.
Best employee of the month award should for each department.
Employees in NBC are performing well but they have low level of motivation. Absenteeism is controlled because total forty annual leaves are allowed but more important reason it that employees feel self responsibility. However the alarming indicators are turnover and job satisfaction. The organization is facing high turnover rate and employees are dissatisfied with their jobs and pay scales. Experienced staff is leaving the organization or searching for opportunities. With the kind attention and efforts of general manager & deputy general manager, the situation is improving. Qualified & young people are joining the organization.
University of the Punjab, Gujranwala Campus 29
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
MIS DEPARTMENT
INTRODUCTION
In today's fast moving business environment, organizations are rapidly moving towards computerization and information systems.
In this era of rapid and 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 systems that provide regular and current information to management for decision-making.
MIS department of NBC is playing a vital role in this regard. MIS is now the back bone of the whole system of NBC. The department is working with a small setup & satisfying the information requirements of the organization with a smart staff and developed setup, the department has eliminated much workload, paper work and saved a lot of precious time.
The MIS department is currently performing its day-to-day operations as well as involved in software development. It also provides technical assistance and training to other departments. At the time oracle 8.0 is in execution. All computers in the department are networked by LAN (local area network) the department has licensed software working.
The following systems are working in the department..
PLANT EFFICIENCY SYSTEM
The system is designed to keep current information about what is going on in production & plants. The system is helpful in getting production figures and reports about line utilization, line efficiency, mechanical efficiency, employee code, name, basic salary, allowances, tax, net pay and any other adjustments supplied by time office.
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, empty short slip, the reports of the system are
University of the Punjab, Gujranwala Campus 30
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
load report ( dealer wise, depot wise ) settlement sheet ( dealer wise, depot wise ) Shipping shift summary Daily liquid out report Agent wise load out summary Agent wise sales summary District wise sales summary Computerize sales statements (monthly, semi annually, annually) Cash report
Filled inspection, breakage, actual production, paid time, stoppage, production time etc
GENERAL LEDGER SYSTEM
General ledger system of Accounts is on line from IST July, 2000. The system logs all accounts and shows balance sheet & profit & loss statement incorporating every transaction.
PAYROLL SYSTEM
There is separate payroll system for NBC and Friend's Agency. The output of the system is pay slips and payroll report at the end of month. Payroll report incorporates.
All these reports are extremely important in the day-to-day operations of the above-mentioned departments. In addition, customized reports can be obtained as required. The system is implemented at each depot as well.
MARKETING INFORMATION SYSTEM
MIS is very strong software aimed to keep current record of each & every outlet of the franchise. Through this system, management can get the information at any time about:
Name & address of each outlet. Price details Empty details Package details Publicity position Quality status
The system is designed in such a way that reports can be obtained about outlets:
Distributor & area wise Route wise District wise
University of the Punjab, Gujranwala Campus 31
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
The system is useful in accessing market & investment position in each area.
FUTURE PLANS
The future program of the department is:
Networking with Depots Internet development within organization ERP Implementation in the Company as a whole
There should be formal web site and e-mail accounts of employees in the organization. A small computer books library will help the staff to add their skills.
University of the Punjab, Gujranwala Campus 32
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
PURCHASE AND PROCUREMENT DEPARTMENT
As oppose to its meaning the root purpose of the purchase department is savings. Purchase department is very important because it has to get the cost efficiency. NBC does not rely on one supplier because it will create the monopoly of that supplier that creates problems for the company. To avoid such kind of monopoly of the supplier, company always prefers to have more than one supplier in their supplier list.
PURCHASING PROCESS
When store informs the purchase department about the purchase of a particular item, the purchase department gets information about the prices of desired items. At this level quotations are required by the department from its different suppliers. On receiving these quotations the selection of supplier is based on the low price and high quality. Another procedure is the negotiating the prices with the supplier. In this case the prices are settled at the desired level. After setting the prices, the order is placed to the supplier. When the goods are received their physical verification is done and in case of any shortage or poor quality product the respective supplier is informed. In this case the supplier has to bear the charges of shortages or low quality. In case of events like 14th August, Eids, Festivals Purchase department had to manage the supply at least 15 days before the occurrence of the event, because the production increases in these days due to high demand in the market.
SUPPLIERS
NBC has both local and international suppliers of glass and pet bottles who are approved by the Pepsi Cola International.
These are
Balochistan Glass Factory Karachi Standard Manufacturers Lahore Plasco Plastics Hattar Ghani Glass Peshawar Concentrate from PCI Crystallite Products (pvt) Ltd Kaas-ul-Musaffa Karachi
University of the Punjab, Gujranwala Campus 33
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Supplier selection
Supplier selection is made mostly according to their quotations in which the two factors have main focus. These are
Quality Price
Domestic and Foreign purchases
The purchases in NBC beverages are made from two sources; Domestic Markets Foreign Markets
Domestic purchases
The purchase made from the country is called domestic purchase. It includes the purchase of sugar, co2, and for the factory it includes office stationery, vehicles spare parts, glass bottles, pet bottles, spare parts of production machinery and vehicles for transportation.
Foreign purchases
The purchases made from the international markets are called foreign purchases. Concentrates are provided to NBC by the Pepsi Cola International, crowns and heads of the bottles are also imported from Turkey and Dubai. The machinery is also purchased from the foreign markets.
University of the Punjab, Gujranwala Campus 34
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
AUDIT & TAXATIONDEPARTMENT
In NBC, audit is done annually. For the taxation purpose the taxes are implemented on the basis of the purchase. If purchases are made locally there will be a tax and if purchases are from the international market there will be no taxes.15% sales tax is implemented on the domestic sales. All the departments are being audited by the audit department. The audits are made according to the government laws. Records are maintained both manually and computerized. The revenue submission date to the bank is 15th of each month. When the audit is conducted by the government, the company has to present the invoices of purchase in order to get rebate on the foreign purchases. These items come under no tax category.
Sales tax
Sales tax is 15%. Excise duty is 12% which the company pays to the government.
Types of Taxes NBC Beverages has to pay two types of taxes.
INPUT TAX OUTPUT TAX
INPUT TAX
Input tax only claimed at the production related items such as sugar, concentrates and other items. Such taxes are implemented on the imports too. But such imported items have to come under the production process.
OUTPUT TAX
Output tax is implemented on the sales.
At the end the tax is calculated as:
Output tax – input tax = actual tax which has to be paid
University of the Punjab, Gujranwala Campus 35
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
PRODUCTION DEPARTMENT
Production is like a back bone in any manufacturing organization. In NBC the main production materials are
Sugar Co2 Water Ammonia etc
All the raw material which is used in the production process is approved by the Pepsi cola international. These materials should be according to the standards of the PCI. If in any case the material does not match with the standards of the PCI has a right to return it to the supplier. In this case the entire cost of the material is beared by the supplier. This strong check on the material is because of maintaining the high quality in the products which is the credentials of the Pepsi cola products.
CapacitY of Plants
Currently the company is operating with five (05) plants. Out of these five (05) plants, three plants are dedicated for the production of only 250 ML RB bottles. While plant # 01 produces 1500 ML (PET) & 1000 ML (Glass) bottles Plant # 02 produces 1000 ML (PET), 250ML (NR) and 1500ML (PET) bottles. Capacities of each plant are as follows:
Plant #250ML(RB)
1000ML( RB)
1500ML (PET)
1000ML(PET)
250ML (NR)
P # 01 - 1000 Cs/hr 500Cs/hr - -
P # 02 - - 325Cs/hr 350Cs/hr 300Cs/hrP # 03 1500Cs/hr - - - -P # 04 1250Cs/hr - - - -P # 05 1375Cs/hr - - - -
The company has introduced its own mineral water which is called "Aquafine" in two packages of 600ML & 1500ML and company is planning to install a plant for juices.
Quality control
University of the Punjab, Gujranwala Campus 36
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Quality control is the basic organizational objective of NBC. Quality check is made from zero level to final products. For this purpose samples are taken from the production to check the quality. This sampling is done after each an hour or half an hour. These samples are tested according to the PCI standards
Production staff
Employees are directly involved in the production process. Whereas the helpers are the indirect employees Moreover direct supervisor and helpers are also there. Indirect employees are about 350 in number, who are not directly involved in the production process but they are essential part of the production department.
Laboratory
In order to maintain the high quality the plant has a well equipped lab. Laboratory is sufficient to measure the standards and to test syrup of different flavors. The well equipped lab enables the smooth flow of production process.
Product line
The major brand of NBC is Pepsi 250 ml, having highest market share which is 47% as compared to other brands. The other brands produced by the organization are
Pepsi Pepsi dietMirindaTeem7up7up dietMountain dew
Production process
University of the Punjab, Gujranwala Campus 37
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
The production starts with the empty wash department where the empty bottles are washed with detergents so that the syrup can be filled into these bottles. Then second department in the production is syrup preparation department where the syrup pf different flavors ids prepared then the empty bottles are filled with the syrups at this stage water and co2 is mixed with the syrup and crowns are fitted on the bottles then these bottles are put into the plastic shells where these are transferred to the stock.
University of the Punjab, Gujranwala Campus 38
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
CASH DEPARTMENT
Cash department does cash handling (collection and payment). The major part of cash collection is from dealers and salesman based on their settlement sheet and daily sales report. Cash payment is done on the vouchers issued by accounts department. Payments include employee's pay, bills, allowances, procurement expenditures and day to day general expenses.
ACCOUNTS DEPARTMENT
The job of the department is to maintain books of accounts. There are following main activities of accounts.
Issuance of purchase vouchers for raw material, plant and machinery and general store items
Check payment of payroll to employees including wages, overtime, bonuses etc.
Handling of monthly tax statements.
Computerized general ledger system is working and shows the result of each transaction up to balance sheet and income/profit and loss statement.
University of the Punjab, Gujranwala Campus 39
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
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 and supply to plants, liquid stock and distribution directly affects sales. This is a complete chain or cycle and any weak link, bottle neck or disturbances will slowdown the whole operations.
The Shipping System of NBC is responsible for the management of the Following tasks:
Shipping is responsible for managing the empties that are required for production.
Shipping is responsible for receiving the liquid clearance from excise to dispatch it further to Depots & distributors or parties.
Shipping is also responsible for maintaining proper stock of liquids and empties as they appear in the liquid and empties stock register, so as the stock appears in the registers, it should also be physically present in the depots.
Shipping is also responsible for proper management of empties and liquid vehicles loading and off-loading i.e. time management is very important in this case.
Shipping also receives new empties of both RB and NRB and manages their storage and handling and their proper supply to production as they are required by the production for filling purpose.
The management of other empty stock is also the responsibility of Shipping Department and its exchange is especially important in this case.
SUPPLY OF EMPTY TO PLANTS
Shipping department has three godowns for empty storage. These are:
Taran Taran Modern Soap Qabza Factory
University of the Punjab, Gujranwala Campus 40
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
PEPSI TOWN
Due to shortage of space in these godown empty is unloaded at on these godown sent to PEPSI town. This empty is returned when storage space becomes available. Empty is supplied to plant when required by production people in specific quantity. The delivery is through forklifts.
In this godown liquid, empties, shells and other different material is kept due to space problems.
OBSERVATION AND SUGGESTIONS
Extremely poor situation condition at godown # 2.. 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.
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
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.
Shipping department is working is bounded capacity in terms of storage space and tuff conditions.
University of the Punjab, Gujranwala Campus 41
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
MARKETING & SALES DEPARTMENT
Sale and marketing is the most important department of any beverage company. To boost the sales and profit, this department should be properly planed and managed. Naubahar Bottling Co. Pvt. has a very aggressive and hardworking Sales and marketing department. Due to its efforts the company has got the first position in sales in 1993 through out the Pakistan.
FOLLOWING ARE THE MAJOR CONTENTS OF THIS DEPARTMENTFOLLOWING ARE THE MAJOR CONTENTS OF THIS DEPARTMENT
Market DevelopmentOutletTactical analysis and routine planning of market strategies.Competition activity monitoringTOT’s Management & IntegrityPublicity ManagementTime ManagementEDS (Every Dealer SurveyRetail AuditStock VerificationNew Account Development (NZD)Publicity VerificationSpecial Assignments
MARKET DEVELOPMENT
The first and the most basic job of the sales and marketing department are to plan, develop and make targets. They make strategies to achieve those targets and develop the market. Especially sales people are assigned monthly, quarterly, annual targets of the liquid sale. The following major factors are considered in this respect.
Collection of all the data about each and every distributors/ outlets, about its sale, volume and growth.
Finding the gaps in the market where there is a potential (New Accounts Development).
Finding the points where competitor is strong and how 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.
University of the Punjab, Gujranwala Campus 42
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
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 continuously visit outlets, listen their complaints and satisfy their needs and requirements. They must have information about each and every outlet, its growth, and volume. Proper is 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 basis of this information they further plan and improve their strategies.
Checking of the designated area, its sale, volume and growth. Calculation of daily sales achievements on monthly target basis Location of the poor performance factors and analyzing their cause Finding their solution and getting the approval for its execution. Planning for a schedule for the designated area. Visiting the area according to the plan and reporting it to the higher management
COMPETITION ACTIVITY MONITORING
On the other hand a constant intention has been given to the competitor’s 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:
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
TOT’S MANAGEMENT
TOT’s 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. TOT’s 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 TOT’s. given to the shopkeeper. Further plan for the injection of TOT’s Checking all the equipment time by time any removing their complaints
University of the Punjab, Gujranwala Campus 43
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
PUBLICITY MANAGEMENT
To promote the image of the company and its products, publicity is a major tool. Publicity plays an important role in the promoting the image in the consumer's minds.
Publicity involves Banners, posters, signings, gifts and schemes. Publicity budget is spent by focusing the followings.
Location of the area. Arranging the sources and requirements and making priority lists Carefully arranging the publicity execution.
TIME MANAGEMENT
Time management is the most important factor especially in a Beverage industry, because it is wholly dependent on Sales and Marketing Department. And without proper management of time this department cannot run. Following are the key factors which are to be considered necessary for the management of time:
Drop size of a specific area. Tonnage of the vehicle for that specific area. Total operational time management Idle time monitoring and elimination. Calculation of outlet knocks time. Calculation of available knock time for each outlet of a specific area. Define and ideal knock time for an outlet. Setting of a comprehensive plan, by considering all the above factors
EVERY DEALER SURVEY (EDS)
This activity is based on research and marketing people usually perform this activity. It is basically checking the each and every shop and gets information that what the shopkeeper is selling and keeping in the shop regarding beverages. This activity is performed in the form of teams. Structure of the teams is as follows:
Team Leader (Marketing & Research Executive MRE) 01Team Members (Marketing & Research Offices/Surveyor) 03
The following activities are present in EDS
Market Visit (Data Collection about Shops) Data Analysis Report Preparation
University of the Punjab, Gujranwala Campus 44
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
PUBLICITY VERIFICATION
This activity involves the following tasks to be performed by the marketing department:
Counters Wall Chalking Cabins Plastic Sign Board Road Boards Simple Boards Panflex
SPECIAL ASSIGNMENTS
Special assignments involve the sales promotion schemes verification like under the crown scheme (UTC) and other schemes which the company offers quite often.
University of the Punjab, Gujranwala Campus 45
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
University of the Punjab, Gujranwala Campus 46
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
During my internship in the Naubahar Bottling Company, Small Industrial Estate
Model Town Gujranwala, I really enjoyed to work with the staff of Company, from
17thJuly to 26 August, 2006 and have a wish to be employee of Naubahar Bottling
Company. It was almost impossible to work in all the departments within that
limited time. But on my request, the staff of the company provided me the
opportunity to work in the different departments for the sake of practical
knowledge. I am really very thankful to HR manager Sir Asif sb that provides me a
learning environment in the company.
During my internship training I work in following departments
1. Production Department
2. Human resource management Department
3. Marketing and sales Department
4. Shipping Department
5. Purchase Department
6. Account & Finance Department
I learn a lot of practical things during working in these departments. Working of these
departments which I observe during my internship (as I already discussed) is really
admirable. Naubahar Bottling Company provided us real time learning and for better sake
of practical exposure the head of different departments assigned us some special duties
which are as follow.
University of the Punjab, Gujranwala Campus 47
MY
WO
RK
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
University of the Punjab, Gujranwala Campus 48
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
ASSIGNMENT OF PRODUCTION DEPARTMENT
From very first day of my internship, our HR Manager told us if you want to become
good marketer then it is essential for you to understand the production process of that
product to which you are going to sale. Because in this way you will be able to bitterly
understand the features and ingredients of your product then you can easily convince
your customers. For that purpose we spent two weeks in production department.
Production of beverage is a huge process; it consists upon different activities like
Water treatment
Cyrpe production
Co2 production
Production in main shop floor
Quality control lab
I understand working of these very well as I already discussed besides this Our Assistant
Production Manager Sir Atif sb. also gave me assignment to discuss various jobs on plant
number 5 and also flow of activities & their cycle time which are as follow
University of the Punjab, Gujranwala Campus 49
PR
OD
UC
TIO
N D
EPA
RT
ME
NT
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
University of the Punjab, Gujranwala Campus 50
Production Department
Important jobs Of PLANT no: 5
1. Depallettizing2. before Uncaser Inspection.3. Uncasing4. Straw control5. Controls before washer 6. Washer operator 7. Washer helper 8. Light inspection 9. Filler conveyor control 10. Filler operator
1. 11.Filler operator helper 12. Filled inspection13. Packer operator 14. Palletizing15. Shell washer operator 16. Shell controls 17. Supervisors
1. Depallettizing Cycle time: it takes one min to pick 32-35 crates from pallet and put it over the conveyor.What they are doing:
Picking crates from pallet. Putting the bottle over the conveyor. Removing empty pallets so that Fork
lifter can put another crates of bottle and pick the empty pallets.
What they want to do?
They prefer to fellow given instruction by management.
How to improve the Quality of their work?
Using proper way recording the pressure he can put creates on conveyor so that breakage can be reducing.
Work with constant efficiency in full hour is difficult .They pay full attention in first few minutes but not in remaining time,
Diligence is actually the required thing.To inform the supervisor about the broken pallet
2. Before uncase inspection
What they are doing
He will separate the dirty & empty bottles
Separate unrelated brands Withdrawal of straw Separate the broken bottles
What they want to do?
Proper look after of conveyerTo inform the maintenance officer in case of any fault of conveyer Current situation at plant # 5
The person there sits and watches over the bottles that are not a proper way to look in the crate which contains 24.
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
University of the Punjab, Gujranwala Campus 51
Bottles so their must be another person on the other side .Otherwise quality can not be control when a person gives only 2 seconds per crate.
3. Uncasing
Cycle time: it will 7 times pick crates in one minute and each time 4 crates will be picked up. Therefore 28 crates in one minute will be picked up.
Duties: what they are doing?
There duty is to set time of Machine To operate the sensor system In case of any fault quickly report to
the immediate supervisor
How to improve the quality?
To make the machine efficient proper cleanliness in required. While leaving his lift he must make machine ready to be properly used by the coming person.
4. Straw control
Duties: what they are doing?
He is to withdraw straw from empty bottle
He will separate the dirty Broken bottles
He is to put the bottle vertically Separate unrelated brands Separate the broken bottles
How to improve the quality
He should look properly in to the bottles so that he can pick up the straw.In case of any fault quickly report to the immediate supervisorLubrication should be done in time.
5. Controls before washer
What they are doing?
He is to withdraw straw from empty bottle
He will separate the dirty Broken bottles He is to put the bottle vertically Separate unrelated brands Separate the broken bottles
How to improve the quality
He should look properly in to the bottles so that he can pick up the straw.In case of any fault quickly report to the immediate supervisorLubrication should be done in time.
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
IMPORTANT TERMS
University of the Punjab, Gujranwala Campus 52
6. Washer operator
Cycle time: washer picks 38 bottles in one turn and in one minute it picks 684 bottles in 8 cycles.
What they are doing?
He properly put the bottles vertically.Maintain the machine properly. How to improve the quality?
In case of any fault quickly report to the immediate supervisorLubrication should be done in time.
7. Washer helper
He is for help in putting the bottles vertically.
8. Light inspection --empty What they are doing?
Wash hands, wear gulfs, caps uniform. Duty changes after 20 minutes He is to withdraw straw from empty
bottle He will separate the dirty Broken bottles He is to put the bottle vertically Separate unrelated brands Separate the broken bottles To separate Foaming bottle
How to Improve Quality?
More efficient lights can be used
Incentive plan should be proper
Supervisor must look after the process more properly and the girl who is not doing work with concentration should be accounted for that.
9. Filler conveyor control
What they are doing
He is helper and controls the bottles on line or conveyor.He is also responsible for constant or variable timing of bottle line arrangementQuality control
There trimming of job is very hard so they cannot proper concentrate the job.There pay is same to the new or fresh worker which gives them a lot of disgrace ness.There should be a plan of leave the filler operator and arrange the alternative employees for emergency cases.
10. Filler operator
What they are doing? Properly check the plant to remove the
fault. Properly check the plant to remove the
fault. If there is any fault he should informed
the mechanical operator.
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
University of the Punjab, Gujranwala Campus 53
He check the level of water in the bottle
He also controls the level of water in bottle by setting the Valve.
He also liable to see the line arrangement of bottle at a time may be one or more.
Properly check the van tube and cone washer.
Wash the filler tank before changing any tank.
Informed the water treatment of provide the water as well the syrup department for syrup and ammonia department for cool gas.
How the improve the Quality?
There trimming of job is very hard so they cannot proper concentrate the job.There pay is same to the new or fresh worker which gives them a lot of disgrace ness.There should be a plan of leave the filler operator and arrange the alternative employees for emergency cases.
11. Filler Operator Helper
Same duties as operator Just difference to stay on Conveyor not on Fuller Machine
How to improve quality?
More efficient lights can be used
Incentive plan should be proper
Supervisor must look after the process more properly and the girl who is not doing work with concentration should be accounted for that.
9. Filler conveyor control
What they are doing
He is helper and controls the bottles on line or conveyor.He is also responsible for constant or variable timing of bottle line arrangementQuality control
There trimming of job is very hard so they cannot proper concentrate the job.There pay is same to the new or fresh worker which gives them a lot of disgrace ness.There should be a plan of leave the filler operator and arrange the alternative employees for emergency cases.
10. Filler operator
What they are doing? Properly check the plant to remove the
fault. Properly check the plant to remove the
fault. If there is any fault he should informed
the mechanical operator
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
University of the Punjab, Gujranwala Campus 54
He check the level of water in the bottle
He also controls the level of water in bottle by setting the Valve.
He also liable to see the line arrangement of bottle at a time may be one or more.
Properly check the van tube and cone washer.
Wash the filler tank before changing any tank.
Informed the water treatment of provide the water as well the syrup department for syrup and ammonia department for cool gas.
How the improve the Quality?
There trimming of job is very hard so they cannot proper concentrate the job.There pay is same to the new or fresh worker which gives them a lot of disgrace ness.There should be a plan of leave the filler operator and arrange the alternative employees for emergency cases.
11. Filler Operator Helper
Same duties as operator Just difference to stay on Conveyor not on Fuller Machine
12. Filled inspection--Filled
What they are doing?
Wash hands, wear gulfs, caps uniform. Duty changes after 20 minutes He is to withdraw straw from empty
bottle He will separate the dirty Broken bottles He is to put the bottle vertically Separate unrelated brands Separate the broken bottles To separate Foaming bottle Check low high level
How to improve quality?
More efficient laser lights can be usedIncentive plan should be properSupervisor must look after the process more properly and the girl who is not doing work with concentration should be accounted for that.
13. Packer operator
What they are doing?
He is to check the efficiency of machine.
Control the machine work properly and making in time actions to handle all operations.
In case of any fault quickly inform supervisor.
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
University of the Punjab, Gujranwala Campus 55
14. Palletizing
Cycle time: he puts 50 crates on pallet in 2 minute.
What they are doing?
Picking the filled crates from conveyor and putt on plat
How to improve the quality?
To impose pressure to avoid brakeage of bottles
15. Shell washer operator He is to wash the crates using the water pumpHe is to control pump by managing the ribbon to stop pump disorder
16. Shell controls
These two boys bring the shell over the packer machine Ensures the supply of shells according to the need
17. Supervisors What they are doing?
To keep data of attendance of all the employees of specific plant.
To count that crate is full with 24 bottles
To keep cleanliness Check and balance
Appendix
What is a Dirty bottle?
1. Bottles with web 2. Bottles with rain water or any
other type of dirty water3. Bottles which were used for
milk4. Bottles with any type of sticky
material 5. Bottles with straw in them6. Bottles with shoppers or rappers
in them7. Bottles with insects 8. Bottles with rust 9. Bottles which are of any other
brand10. And any type of bottles
containing foreign matter Take out the damage bottles from the
cases which are on conveyor
What a Damaged bottle include
1. Bottles which are broken from mouth or bottom or both or broken from any other side
2. Bottles with damage monogram
While operating the machine, stop the machine (uncaser) when you see that the conveyor or line is field with bottles
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
University of the Punjab, Gujranwala Campus 56
When so many bottles fall on the conveyor that takes time to correct them ( stop the uncaser)
Correct the bottles which fall on line(conveyor)
Make a report of FM risk management after every 30 minutes to record the out put
Keep the line clean After every 30 minutes every worker at
line should leave his place so that the other worker take his seat
In those 30 minutes the people which are now off-line
1. Sort there cases of output at their proper places
2. Clean the line 3. Make their 30 minutes report
Problems
Empties
1. Lack of space.2. Lack of labor.3. Lack of active supervision.4. Lack of control by sales and distribution over quality of empties.5. Employees on daily wages are of low quality.6. No process for producing acceptable empties.7. Redefining job of empty godown (delivery of acceptable empties from warehouses for production).
Fork lifters
1. Routing between empties to the line is not being managed.2. Cycle time is not being optimized.3. Feeding logic is not rationalized.4. Space is not optimized.5. Ready backlog of empties is not optimized.6. No proper operational procedures.7. No traffic control.8. No correlation between work load and resources.
De-palletize
1. No customer-supplier relationship implemented.
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
University of the Punjab, Gujranwala Campus 57
Before washing
1. Lack of space for empty inspection before washing (space rationalized).2. Still receiving straws and unacceptable empties on the production line.3. Pre-washing solution had been decided previously but never implemented.4. No active supervision.5. No proper assignation of task.
Washer
1. Management of consumables to be improved.
Inspection of Empties
1. No job description.2. Different tasks assigned to workers instead of one standard.3. The notion of an acceptable bottle is not properly defined to the workers.
Filler
1. SOP not cross functionally agreed, communicated and supervised.
Coding Operator
1. Lacks overall authority.2. No real role in reporting.3. Performance not being evaluated. No job description; function does not exist on paper.4. Lack of recognition.5. Area of supervision too large (2 for 5 lines)
Filled Inspection
1. Low fill / high fill bottles are being drained or taken back to the empties. Some are supplied at mess.2. Maintenance engineers are not coming regularly to fix their problems.
Shell Conveyor
1. Space problem. Shells need to be shifted manually.
Palletize
1. Input / output control left to subcontractors.
Machinery Maintenance
1. No preventive maintenance or compliance to. 2. Unavailability of quality equipment and materials required for maintenance (parts).3. No proper supervision and overall maintenance policy.
Solutions
Allocating areas for SKUs (marking & logic)Defining frequency of lifters: unloading time, sorting time, and delivery time (scheduling logic of empty godown – both areas)Arrangement for unacceptable empties (far from good empties or other godown)Defining role of each empty godown (specific roles)
Equipment required for converting bad empty to good empty (conveyors, tubs, water hoses, etc.)
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
University of the Punjab, Gujranwala Campus 58
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
ASSIGNMENTS OF SALES & MARKETING DEPT.
After production department we spent two weeks in sales and marketing department and
after acquiring basic knowledge of this department, our head of department assigned us
two assignments which are as under.
Finding brand equity of Dew, Sprite and 7up
Report on available mineral water in market because company wants to launch
Aquafina
University of the Punjab, Gujranwala Campus 59
MA
RK
ET
ING
DE
PAR
TM
EN
T
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
BRAND EQUITY OF DIFFERENT BRANDS
Research objectives
The basic purpose of this research is to calculate the Brand equity of three products each with a different brand name. Out of these three products one is competitor’s product and two Pepsi products.
These products are
7up. Sprite. Dew
This research will help in knowing the popularity of each product and will help company to understand about the position of each product. The marketing and advertising decision then can be based on our findings.
Brand Equity
There are different methods of brand equity and each method depends upon how brand equity is defined brand equity as.
“Brand equity is the position of the brand which effect the purchase of the customer, it is the share or ownership of that brand which is the mind of consumer”
In simple words it is positive attitude of the consumer towards that brand.
So there are two variables
Brand loyalty (it is calculated by the frequency of purchase). Perceived value (it is calculated by the relative price a customer can pay this
product).
Brand loyalty of a particular brand is the percentage of consumption of that brand out of total consumption of the consumer.
Perceived value is taken as the relative price the customer can pay so it depicts the brand value. This perceived value will be measured by asking the consumer about the price above the standard price which it will pay for the brand.
University of the Punjab, Gujranwala Campus 60
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Simply we can say that brand equity difference on customer response so the above two variables will measure the ability of a brand to positively influence customer response
Research Method
The research method will be in the form of questionnaire survey specially designed to measure our variables.
Target population
Our targeted population is the end consumer of soft drinks from the age of 16 to 35 within the Gujranwala base.This range is defined on the basis of some assumptions which are following.Below 16 years of age mostly consumer doesn’t have the sense of association with the brand. The consumer below this age needs soft drinks irrespective of its brand.People above 35 years of age are health conscious and their preference and non preference is not based on the brand but on the health consciousness so adding people above this age will make the results biased.
Sample Size
The sample size will be 200 respondents.The selection area of the sample size independent upon the cost and time considerations.
Sampling Area
The sampling areas are the following Model Town Satellite Town DC Road University of the Punjab Cantt Civil line Road Jinnah Road
These areas are selected in order to have a proper mix of high, advantage and low income categories so that our sample can accommodate variability as present in the true population.
The above mentioned areas Model town and Cantt are high income areas where as Satellite town, Civil lines and DC Road are average income areas while Jinnah road is low income areas while University of the Punjab have a mix of students.
University of the Punjab, Gujranwala Campus 61
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
So the sample frame has a good potential of our respondents.
Statistical toolThe statistical tool for interpreting the results of this research expressed in %age and pie charts.
Questionnaire
We are the students of University of the Punjab Gujranwala campus and we are conducting the research on the brand Equity of 7up & Dew as compares to Sprite .For this favor we need your cooperation.
Appendix-AMarketing Research & Development
Questionnaire
Area ---------------------- Gender--------------------Age------------------------ Occupation----------------
1. Do you take any soft drink/bottles?
Yes No
2. How many glasses of soft drink do you take in a month?
3. Which drink you like most?
Coke Pepsi Dew Sprite 7up Team
4. If you are given three drinks which one you will select?
7up Sprite Dew
University of the Punjab, Gujranwala Campus 62
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
5. Why you prefer this drink?
Taste Availability Trend Advertisement
6. In which size you take this drink mostly?
250ml 1 liter 1.5 liter
7. How many glasses of this preferred drink you take out of your total consumption?
8. If you preferred drink is not available at a shop then will you go to another shop?
Yes No
9. If “NO” then which another drink you will take?
7up Sprite Dew
10. When you take this soft drink?
When you are thirsty With dinner As a refreshment
University of the Punjab, Gujranwala Campus 63
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
The Results on the basis of the question Related on the Research brand equity
Most preferred brand of the users
According to the result 52.7% respondent said that they world prefer Mountain Dew if they offered four drinks sprite, 7up, Dew and Teem. The result showed a significance preference of Dew over the other drinks making it the most favorite drink among the four. The second most preferred drink is sprite with 29.1%respondents preferring it among the four and 7up got the third position in the preference with 15.6%respondent said that they would select 7up if offered four drinks .The details of the result. The result details of the result are as under.
Brand Frequency Percentage7up 60 15.6Sprite 112 29.1Dew 203 52.7Teem 10 2.6Total 385 100
University of the Punjab, Gujranwala Campus 64
7up
SpriteDew
Teem
7up
Sprite
Dew
Teem
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Reason for preferences
In order to understand the reason for preference of consumer for a particular drink the following variables were included in the question.
Taste Trend Availability Advertising Color/Transparent
The results have no variation because approximately 85% respondents said that they prefer those drink because of its taste. This shows that users have developed their taste for different drinks and the same thing appeared with in each brand category where of the taste. The details explain following.
Question options Frequency PercentageTaste 325 84.4Availability 29 7.5Trend 12 3.1Advertising 11 2.9Transparent 8 2.1Total 385 100
University of the Punjab, Gujranwala Campus 65
84%
8%3% 3% 2%
Taste
Availablity
Trend
Advertising
Transparent
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Identifying the Switcher and non Switcher
In order to have a deeper view of the behavior of consumer and loyalty of the consumers we asked respondent another question, “If your preferred drink is not available at a shop then will it go to another shop for that drink or buy another drink from the same shop.” Was asked and result were recoded. In interpreting the results of this question the respondents were divided into switchers and no switchers and the answer was recoded as “Yes” and “No” where “Yes represents a non switcher and “No” representing Switchers.
If u are given four Drinks which one you will select? If your preferred rink is not available will you go to another shop? Cross tabulation.
Brand No Yes7up 26 34Sprite 54 58Dew 110 93Teem 4 6Total 194 191
University of the Punjab, Gujranwala Campus 66
7up
Sprite
Dew
teem
7up
Sprite
Dew
teem
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
The drink that will be taken if the preferred drink is not available
The result are very interesting which shows that what percentage of respondents select which brand in case of the non availability of their preferred brand out of the three brands so according to the result 33.2%respondents will select sprite in the absence of their preferred drink while 7up is at second positions where 25.5%respondents said that they will take 7up if their preferred brand out of the four given brand is not available and only 20% said that they will take Dew .The result is as under.
Brand Frequency Percentage7up 98 25.5Sprite 128 33.2Dew 79 20.5Teem 47 12.5Coke 15 3.9Pepsi 17 4.4Shezan 1 .3Total 385 100
Brand loyalty
In order to calculate brand loyalty we needed two things, the total purchase (consumption) of the respondents and the purchase (consumption) of the drink .we recoded the total consumption of the respondents and also recorded the consumption of the preferred drink for each brand e.g. total consumption of respondents who preferred calculate by dividing the 1111 with 2297 and we get 48% brand loyalty.
This is how we calculate the brand loyalty but in our analysis we calculate the brand loyalty for switchers and non-switchers separately and assigned on different basis but we have assigned 70% to non-switcher and 30% to switchers and then calculated the weighted loyalty.
Another way to calculate the loyalty is that we apply the same formula as mentioned above for each respondent in each brand category and then calculate the average loyalty of switchers and non switchers in each brand but it has some critique as this will not calculate the brand loyalty instead it will tell us on average how loyal a respondent is in each brand.
We have calculated the result in the both way and the result are attached.
University of the Punjab, Gujranwala Campus 67
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Relative Price
As mentioned in the research proposal that we need a measure of perceived value for the calculation of brand equity so we asked a question from respondent in each brand category to measure perceived value. This was measured by asking related questions about price. The price was calculated by taking the average of the prices answered in the questionnaire by the switchers and non-switchers.
Average consumption
The consumption of different brands was calculated as:
Brand Consumption Avg. consumption per consumer
% Results
7up 1111 289 15.43
Sprite 2011 524 27.93
Dew 4076 1061 56.62
University of the Punjab, Gujranwala Campus 68
7up
SpritDew
7up
Sprit
Dew
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Conclusion
Non-availability of dew is the reason that make user to switch toward sprite and same is
the case with sprite that is sprite is not available people will go for dew. In case where
7up is not available people said they would prefer sprite.
We are not suppose to convert sprite users into dew, or dew users into 7up actually more
promotional strategies can be helpful in increasing sales and brand loyalty. Investment
can be made and budgets can be rescheduled for promotional purposes.
University of the Punjab, Gujranwala Campus 69
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
University of the Punjab, Gujranwala Campus 70
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
FEASIBILITY OF AQUAFINA
The History of Water
About 70% of the earth's surface is covered with water.
Ninety-seven (97%) percent of the water on the earth is salt water. Salt water is filled with salt and other minerals, and humans cannot drink this water. Although the salt can be removed, it is a difficult and expensive process.
Two (2%) percent of the water on earth is glacier ice at the North and South Poles. This ice is fresh water and could be melted; however, it is too far away from where people live to be usable.
Less than 1% of all the water on earth is fresh water that we can actually use. We use this small amount of water for drinking, transportation, heating and cooling, industry, and many other purposes.
What is water made from?
Everything is made of atoms. An atom is the smallest particle of an element, like oxygen or hydrogen. Atoms join together to form molecules. A water molecule has three atoms: two hydrogen (H) atoms and one oxygen (O) atom. That's why water is sometimes referred to as H2O. A single drop of water contains billions of water molecules.
Methods of Water Purification
This is the most cost-efficient water filter since it does not use expensive equipment to remove unwanted substances.
University of the Punjab, Gujranwala Campus 71
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
History of Major Brands Available Gujranwala
Aqua safe
Its office is established at pindi by pass. It is the second brand which is available in the market after nestle. The demand of the customer also good for the brand of Aqua Safe
Askari
It is not so popular and the customer demand is very low. Its main office in 37Commercial Area .Cavalry Ground Lahore in Gujranwala the office of brand askari is not available.
Aquafina
Aquafina delivers water so pure, we promise there is nothing but crisp, clean, refreshment in every bottle.Its is the brand of Pepsi and it is filled in United Beverage Company W.L.L Kuwait.It is available in Islamabad, Karchi, Faisalabad and Lahore.
Nestle
In 1992, Nestlé was the first company to dare to launch a mineral water, Valvert, in five different countries at once. Its originality lay in the use of an all-new plastic, P.E.T. (polyethylene teraphthalate), which is stronger and more elastic than the PVC used since 1968. Besides, P.E.T. is recyclable.
By the end of 1997, the Group was present on every continent, and the purchase of San Pellegrino gave it the leadership in the Italian market. In 1998, for the first time in its history, Nestlé associated its name with bottled water: Nestlé Pure Life.
The brand was launched in Pakistan and soon appeared in Brazil, followed by Argentina, Thailand, the Philippines, China, and Mexico in 2000. In 2001, India, Jordan, and Lebanon followed, and in 2002, Egypt, Uzbekistan and the United States.
University of the Punjab, Gujranwala Campus 72
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Nestlé Pure Life is drinking water that has been treated and rematerialized using a standardized industrial process to ensure purity and quality and is marketed in emerging countries.
A second product with the Nestlé name was launched in May 2000, this time in six European countries: Nestlé Aquarel. Natural spring water currently from nine different springs in France, Germany, Belgium, Hungary, Italy and Spain, Nestlé Aquarel also uses
the multi-source concept to satisfy new consumer expectations, especially for water with a low mineral content that the whole family can drink.
In April 2002, the Group changed its name to Nestlé Waters, a token of Nestlé's decisive commitment to the bottled water market, which now represents 9% of its sales. Today, Nestlé Waters is established in 130 countries and markets about 70 different brands. The Group is able to offer top quality brands and innovative packaging to meet the individual needs of the water consumer all over the world, whenever, wherever and however thanks to the wide variety of its offer in terms of distribution and product mix.
Paani
The paani brand introduced in 1st July 2006.Its office in Gujranwala at 21/Jalil Plaza Court Road. the brand paani launch only in Gujranwala.its daily sale according to our research is 20…..40 Cans .Its also provide the facility of Free home Delivery.
Sprigley
We are pleased to introduce Qureshi Industries (Pvt) Ltd. as a leading natural product manufacturing company in Pakistan. I am sure that you are already aware of worldwide interest in natural products and their fast growing consumption. We are keen to introduce traditional Unani and Ayurvedic products of international Standards by Qarshi.
We are the first and only organization in SAARC, Middle East & Africa with six International Certifications Accreditations: ISO 9001, ISO-14001, HACCP, ISO 17025 (Norway & PNAC) and Organic certification. The company was established in 1968. Our modern manufacturing facility, fitted with latest equipment of European and US origin, commenced operations in 1988.WE have marketed natural mineral water under brand name "Sprigley" in Pakistan and overseas market including Afghanistan.
University of the Punjab, Gujranwala Campus 73
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
PRODUCT LINE OF DIFFERENT BRANDS
Brand Name
0.5 liter Price 1.5 liter Price Others Price
Dico Yes 12 No -- -- --Springley Yes 14 Yes 24 -- --Aqua safe Yes 14 Yes 24 10 liter 60Askari -- -- Yes 22 6 liter 50Aquafina Yes 10 Yes 20 -- --Nestle Yes 15 Yes 20 -- --Panni Yes 10 Yes 25 19liter 90Sufi -- -- Yes 24 19 liter 90
Area of research
Model town Satellite town People colony University of the Punjab
University of the Punjab, Gujranwala Campus 74
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
How to increase customers for Aquafina
Customer oriented policies are infect required.
Advertising budgets needs to be revised as we see Paani is not yet arrived in market but have a good awareness level among people.
Pricing strategies can be considered and competitive prices should be followed people think that low prices leads toward lower quality. Psychological factors should be considered.
Salesman training & behavior should be improved; they must understand CRM & PR Concepts.
More Benefits to shopkeepers should be introduced.
Provide stands for putting the bottles as the recent market leader nestle is giving.
As nestle & aqua-safe have followed the riddle “customer is the king” Aquafina can be benefited from the success story of these brands.
Distribution Network
If we talking about the main and leader brand of the mineral water it is nestle and the company follow the strategy of distribution by the both method .the direct and indirect selling. But our brand Aquafina the company follows the method of indirect method which is problem to create and know the actual customer demand.
University of the Punjab, Gujranwala Campus 75
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Incentive to distributor
The Nestle and Aqua safe provide the facility to indirect seller and the direct seller *salesman*to maintain the clients by the receiving amount of bill from agencies and shopkeeper according to their timing convince.
Promotion and Advertising
Each brand of the leader companies advertise as the main brand of the company. So Aquafina also adopt this policy.
Contracts in the organization of mineral water brand
In model town and satellite town the main bakers like Meer bakers has contract with nestle for selling the mineral water. They are bound to sale only nestle.
In Asim bakers and Al.Maraj Baker in model town satellite town we find different brand like Aqua safe, Sprigly, Askari.It means they are not bound such Brand.
In people colony only Utility store is bound to sale nestle.
In university of the Punjab and Punjab College we also find nestle not other Brand.
University of the Punjab, Gujranwala Campus 76
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
University of the Punjab, Gujranwala Campus 77
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
ASSIGNMENT OF FINANCE DEPARTMENT
I spent last two weeks in shipping, purchase and account & finance
department. Head of finance department assigned me duty to make financial
comparison of Pepsi Cola International and Coca Cola International. Result
of this study is as follow
University of the Punjab, Gujranwala Campus 78
FIN
AN
CE
& O
TH
ER
DE
PAR
TM
EN
T
DE
PAR
TM
EN
T
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
FINANCIAL ANALYSIS
Financial Analysis "Financial statement analysis is the process of identifying of financial strengths and
weaknesses of the firm by properly establishing relationship between the items of the
balance sheet and the profit &loss account," and it is done through ratio analysis.
Comparative study
“In this study we analysis the proportional change in two years”. Here the comparative
study of 2005with 2006 done then graphically represents the Change between two years.
Raito Analysis
Ratio means “one number expressed in term of another a ratio is statistical yardstick by
mean of which relationship between two or various figures can be compared or measured.
Here we are going to explain the ratio analysis of PepsiCo Inc, and Subsidiaries which is
little bit different from other organizations.
Financial ratios can be divided into the following five parts
A. Liquidity ratios
B. Activity ratios
C. Solvency ratios
University of the Punjab, Gujranwala Campus 79
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
D. Profitability ratios
E. Market ratios
University of the Punjab, Gujranwala Campus 80
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
BALANCE SHEET
(in million except pert share amount ) 2005 2004Net Revenue $32562 $29261Cost of Sales 14176 12674Selling, general and administrative expenses 12314 11031Amortization of intangible assets 150 147Restructuring and repair Charges - 150Mergers Related Cost - -Operating profit 5922 5259Bottling equity Income 557 380Interest expense (256) (167)Interest income 159 74Income from Continuing before the income Taxes 6382 5546Provision from income Taxes 2304 1372Income from continuing operations 4078 4174Taxes benefit from Discontinued Operation - 38Net Income $4078 $4212Net Income per common Share ----BasicContinuing Operations $2.43 $2.45Discontinued operations - 0.02Total 2.43 2.47Net Income per common Share ----DilutedContinuing Operations $2.39 $2.41Discontinued operations - 0.02Total $2.39 $2.44*
University of the Punjab, Gujranwala Campus 81
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
(in million except pert share amount ) 2005 2004AssetCurrent Asset Cash and cash Equivalents $1716 $1280Short-term investment 3166 2165Accounts and notes receivable, net 3261 2999Inventories 1693 1541Prepaid expenses 618 654
Total Current Assets 10454 654Fixed AssetProperty, Plant and Equipment, net 8681 8149Amortizable Intangible Assets ,net 530 598Goodwill 4088 3909Other nonamortizable Intangible Assets 1086 933Long-term investment 3485 3284Other Assets 3403 2475Total Fixed Assets 21273 19348Total Assets $31727 $27987Liabilities and Shareholders EquityCurrent Liabilities Short-term obligation $2889 $1054Account payable 5971 5599Income tax payable 546 99Total current liabilities 9406 6752Long-term liabilities Long-term Debt obligations 2313 2397Other liabilities 4323 4099Deferred Income Taxes 1434 1216Total Long-term liabilities 8070 7712Total liabilities 17476 14464Commitments and Contingencies Preferred stock, no par value 41 41Repurchased Preferred Stock (110) (90)Common Shareholders EquityCommon stock, par value 1 2/3per share (issued 1,82shares) 30 30Premium 614 618
University of the Punjab, Gujranwala Campus 82
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Retained earrings 21116 18730Comprehensive loss (1053) (886)Total 20707 18492Less: repurchased common stock (6387) (4920)Total common shareholders Equity 14320 13572Total liabilities and shareholders Equity $3172 $27987
INCOME STATEMENT
University of the Punjab, Gujranwala Campus 83
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Ratios Year2004
Year2005
Comments
Liquidity Ratios
Current Ratio 1.28 1.11 Poor
Quick Ratio 1.05 0.93 Poor
Absolute Liquid Ratio 0.51 0.52 Good
Working Capital $1887000 $1048000 Poor
Activity Ratios
Inventory Turnover Ratio 8.22 times 8.37times Good
Average Collection Period 69days 66days Poor
Average Payment Period 37days 36days Good
Total Assets Turnover Ratio 1.05times 1.03times Poor
Solvency Ratios
Solvency Ratio 0.51 0.55 Poor
Interest Coverage Ratio 31.49time 23.13time Poor
Profitability Ratios
Gross Profit Margin 56.69% 56.46% Poor
Operating Profit Margin 17.97% 18.19% Good
Net Profit Margin 14% 12% Poor
Earning Per Share 2.36 2.29 Poor
Return on Equity 31.03% 28.47% PoorReturn on total Assets 15.05% 12.87% Poor
Market Ratios
Price Earning Ratio 27.47 28.31 Good
Market/Book Ratio 8.53 8.07 Poor
University of the Punjab, Gujranwala Campus 84
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
RATIO ANALYSISLiquidity Analysis
The current ratio is decreased that’s means the total assets against the total liabilities has been increased. The quick ratio also decreased its mean our inventory does not quickly become the part of production or on the other hand the goods are sold on credit basis which decrease the quick ratio. The absolute quick ratio increase to some extend it means we can easily pay our debts. Working capital decreases so we can limit to meet our daily expenses.
Activity Ratio
The inventory turn over ratio increase by some points and it’s favorable for our operation of business. Its mean the inventory more rapidly become the part of production. As the average collection period is increased. As the company policy is changed that company is poor to collect the money from the account receivables. Average payment period is decrease which is favorable. Its means we quickly meet the creditors payment. Total Asset turnover is decrease because we are not properly utilized the assets it’s become the cause of less sales volume.
Solvency Ratio
The solvency is increased which shows that our external obligations increases which is not favorable for the business.. Interest coverage ratio is also in poor area of the ratio analysis which shows the poor condition than the previous year its mean we have less amount for pay the interest to creditors. Over all the Solvency condition of the Pepsi Co is poor with the comparison to the previous year.
Profitability Ratio
The Gross Profit Margin with respect to the previous year is decreased and poor in the ratio analysis its means our production cost increases which is not earn favorable profit. Operating profit margin is increase its mean our profit margin increase as compare to expenses.net profit also decrease by 2%its shows our expenses of Tax and our expenses for interest increases. Earning per share decreases due to decline in net profit .Return on equity and return on asset also decreases because net profit. Overall all the analysis of profitability ratios interpret ate the poor conditions.
University of the Punjab, Gujranwala Campus 85
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Market Ratio
Price Earning Ratio and the Market/ Book ratio are increased and decrease with respect to the previous year .Price earning ratio increase its shows the company performs better in secondary market. Market Book ratio decrease because our equity or retained earning decrease so automatically its effects the market /book ratio.
TREND ANALYSIS
In trend analysis we done two types of analysis, these are
1. Horizontal Analysis
It is conducted by setting consecutive balance sheet, income statement side-by-side and reviewing changes in individual categories on a year-to-year or multiyear basis.
A comparison of statements over several years reveals direction, speed and extent of a trend(s). The horizontal financial statements analysis is done by restating amount of each item or group of items as a percentage.
2. Vertical Analysis
Like horizontal analysis this can also done for balance sheet and income statement. Here we assign 100% value to any key item of balance sheet or income statement and then see portion of other items in this percentage.
Cross sectional analysis
"It in loves comparing the firm's ratios to those of others firms in its industry or to industry averages."
University of the Punjab, Gujranwala Campus 86
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
University of the Punjab, Gujranwala Campus 87
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Description 2004 2005 Change CommentsNet Revenue 100% 111% 11% Favorable Cost of Sales 100% 111% 11% UnfavorableSelling, general and administrative expenses
100% 111% 11% Unfavorable
Amortization of intangible assets 100% 102% 2% UnfavorableRestructuring and repair Charges 100% -- -- --Mergers Related Cost 100% -- -- --Operating profit 100% 113% 13% FavorableBottling equity Income 100% 147% 47% FavorableInterest expense 100% 153% 53% UnfavorableInterest income 100% 215% 115% FavorableIncome from Continuing before income Tax
100% 115% 15% Favorable
Provision from income Taxes 100% 168% 68% UnfavorableIncome from continuing operations 100% 98% -2% FavorableTaxes benefit from Discontinued Operation
100% -- -- --
Net Income 100% 111% 11% Favorable
University of the Punjab, Gujranwala Campus 88
Income statement
9095
100105110115
Net Revenue operatingprofit
net income
2004
2005
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
University of the Punjab, Gujranwala Campus 89
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Description 2004 2005 Change CommentsAssetCash and cash Equivalents 100% 134% 34% FavorableShort-term investment 100% 146% 46% FavorableAccounts and notes receivable, net 100% 142% 42% FavorableInventories 100% 109% 9% FavorablePrepaid expenses 100% 94% -6% FavorableTotal Current Assets 100% 121% 21% FavorableFixed AssetProperty, Plant and Equipment, net 100% 107% 7% FavorableAmortizable Intangible Assets ,net 100% 69% -31% UnfavorableGoodwill 100% 104% 4% FavorableOther nonamortizable Intangible Assets 100% 116% 16% FavorableLong-term investment 100% 106% 6% FavorableOther Assets 100% 137% 37% FavorableTotal Fixed Assets 100% 109% 9% FavorableTotal Assets 100% 113% 13% FavorableLiabilities and Shareholders EquityCurrent Liabilities Short-term obligation 100% 275% 175% UnfavorableAccount payable 100% 107% 7% UnfavorableIncome tax payable 100% 551% 451% UnfavorableTotal current liabilities 100% 139% 39% UnfavorableLong-term liabilities Long-term Debt obligations 100% 96% -4% UnfavorableOther liabilities 100% 105% 5% UnfavorableDeferred Income Taxes 100% 118% 18% UnfavorableTotal Long-term liabilities 100% 107% 7% UnfavorableTotal liabilities 100% 120% 20% UnfavorableCommitments and Contingencies Preferred stock, no par value 100% 100% --- --Repurchased Preferred Stock 100% 112% 12% UnfavorableCommon Shareholders EquityCommon stock, par value 1 2/3per share (issued 1,82shares)
100% 100% --
Premium 100% 99% -1% UnfavorableRetained earrings 100% 113% 13% FavorableComprehensive loss 100% 119% 19% UnfavorableTotal 100% 112% 12% Favorable
University of the Punjab, Gujranwala Campus 90
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Less: repurchased common stock 100% 125% 25% UnfavorableTotal common shareholders Equity 100% 105% 5% FavorableTotal liabilities and shareholders Equity 100% 113% 13% Favorable
University of the Punjab, Gujranwala Campus 91
Balance sheet
0
50
100
150
total assets fixed assets current assets
2004
2005
Balance sheet
0
50
100
150
currentLiabilities
fixedLiabilities
equity
2004
2005
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
University of the Punjab, Gujranwala Campus 92
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Description 2005 2004Net Revenue 100% 100%Cost of Sales 43% 43%Selling, general and administrative expenses 38% 37%Amortization of intangible assets 0.46% 0.50%Restructuring and repair Charges -- 0.50%Mergers Related Cost -- --Operating profit 17.54% 19%Bottling equity Income 1.7% 1%Interest expense -0.786% -0.50%Interest income .488% 0.25%Income from Continuing before the income Taxes 18.9% 19.75%Provision from income Taxes 7% 5%Income from continuing operations 11.9% 14.75%Taxes benefit from Discontinued Operation -- 0.12%Net Income 11.9%% 14.63%
University of the Punjab, Gujranwala Campus 93
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
University of the Punjab, Gujranwala Campus 94
income statement(2005)
cost of sale saling and admin expensesoperating profit income before taxnet income
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Description 2005 2004AssetCurrent Asset Cash and cash Equivalents 16% 15%Short-term investment 30% 25%Accounts and notes receivable, net 31% 35%Inventories 17% 18%Prepaid expenses 6% 7%Total Current Assets 100% 1005Fixed AssetProperty, Plant and Equipment, net 41% 42%Amortizable Intangible Assets ,net 2% 3%Goodwill 19% 20%Other nonamortizable Intangible Assets 5% 5%Long-term investment 16% 17%Other Assets 17% 13%Total Fixed Assets 100% 100%Total Assets 100% 100%Liabilities and Shareholders EquityCurrent Liabilities Short-term obligation 31% 16%Account payable 63% 83%Income tax payable 6% 1%Total current liabilities 100% 100%
University of the Punjab, Gujranwala Campus 95
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Long-term liabilitiesLong-term Debt obligations 29% 31%Other liabilities 53% 53%Deferred Income Taxes 18% 16%Total Long-term liabilities 100% 100%Total liabilities 100% 100%Common Shareholders EquityCommon stock, par value 1 2/3per share (issued 1,82shares) 0.20% 1.22%Premium 4.3% 4.6%Retained earrings 147% 138%Comprehensive loss -7% -7%Total 145% 136%Less: repurchased common stock -45% -36%Total common shareholders Equity 100% 100%Total liabilities and shareholders Equity 100% 100%
University of the Punjab, Gujranwala Campus 96
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Ratios Coca Cola International
PepsiCo International
Comments
Liquidity Ratios
Current Ratio 1.04 1.11 Good
Quick Ratio 0.89 0.93 Good
Absolute Liquid Ratio 0.48 0.52 Good
Working Capital $414000 $1048000 Good
Activity Ratios
Inventory Turnover Ratio 5.75times 8.37times Good
Average Collection Period 36days 66days poor
Average Payment Period 140days 36days Good
Total Assets Turnover Ratio 0.78times 1.03times Good
Solvency Ratios
Solvency Ratio 0.45 0.55 Poor
Interest Coverage Ratio 25.35times 23.13time Poor
Profitability Ratios
Gross Profit Margin 64.5% 56.46% Poor
Operating Profit Margin 26.34% 18.19% Poor
Net Profit Margin 21% 12% Poor
Earning Per Share 2.04 2.29 Ok
University of the Punjab, Gujranwala Campus 97
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Return on Equity 29.78% 28.47% OkReturn on total Assets 16.5% 12.87% Poor
Market Ratios
Price Earning Ratio 23.64 28.31 Good
Market/Book Ratio 10.33 8.07 Poor
SWOT ANALYSIS
StrengthS
Well-developed strategy
Pepsi Cola recognizes there is a right time and place for their product; therefore, their strategy makes room for adjustments
Brand name Reputation
One of the major advantages that Pepsi cola its the global brand and have done strong advertising and promotion internationally Its Cola flavor, no caffeine, black color, includes gas, unique taste, attractive logo etc are its strength. People prefer any brand of Pepsi.
Good marketing skills and Grasp market region
Pepsi is now a days working on this concept because they want to increase their market share. They are providing quality products to the customers that include their services and products. They maintain their quality, which includes the hygiene factor and their packing. They mostly keep a check on the dealers to maintain the quality, which increase
University of the Punjab, Gujranwala Campus 98
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
their productivity. They full fill the demands of the consumers by offering different scheme and by reducing prices. They also give incentives to their dealers. Pepsi Cola control soft drink market. Their success can be attributed to their overall strategy to produce and promote their products
Differentiation advantage
This is only factory in Pakistan, which use air curtains .all production plant is covered up. There is no open space in production plant. 100% hygienic factory exists in Gujranwala that has high-speed pillars .24 hours filling in factory.
Well known company
Pepsi Company is the world leader and convenient food & beverages with revenues of about $27000 billon at over 143,000 employees. The company consists of the snacks business of Frito lay North America and the beverage in food business is of Pepsi coke beverage and food. Pepsi’s brands are available in nearly 200 countries & territory. Many of Pepsi company brands use are over 100 years old but the corporation is relatively young.
Distributor’s excellent service
PepsiCo search strong, experienced parties, devoted and loyal people. Basic requirement of them is financially strong people, devoted with product, loyal with company and involve in their business.
Financial position and credit rating are strong
Their domestic organization achieved revenue growth from a healthy pricing environment, strong field execution, and effective innovation as their diet, water and flavor portfolios partially compensate a continued shift away from their Pepsi trademark. Revenue growth and cost management offset a relatively more volatile raw material cost environment. The profitability of their international business continued to improve and it has become a more significant contributor to their performance.
Sponsoring matches all over the world
Pepsi sponsors world cup, cricket series matches to increase its viability and brand awareness and become more involve with customers.
University of the Punjab, Gujranwala Campus 99
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Weaknesses
Conflict and politics
After 9-11 scenario and Iraq war, majority Pepsi consumers turned towards other beverages due to sentimental point of view.
Opportunities
Penetrating market would motivate considerable sales growth
Quality, innovation, and responsiveness of Pepsi to customers, can help them to achieve a competitive advantage by lowering the cost of creating value, or by adding value above and beyond that offered by Competitor.
Existing customer base is high
Pepsi Cola strives to create value for their consumers, customers, bottlers and the community. They believe their success depends on their ability to satisfy their beverage consumption demands and their ability to add value for their customers. Nevertheless, attaining efficiency, quality, innovation, and responsiveness to customers requires a strategic plan.
Expanding into foreign markets
It is the global brand and have done strong advertising and promotion internationally Pepsi brands are available in nearly 200 countries .Many of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively young through its strong strategic planning.
Threat
University of the Punjab, Gujranwala Campus 100
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
Increase in competition (other beverages)
Their new strategy for International beverages is to focus on building their core business in markets in which they are already strong and in emerging markets where they believe the competitive playing field is essentially level
RECOMMENDATIONS
Management of the company is not participative. The company should use the participative management system in order to increase the job satisfaction level of employees
Employee turnover rate is very high in the organization. Management should take effective actions to reduce it.
NBC major fault is that wasn’t keep its pace with on going changing in industry
unlike Coca Cola. Now NBC combining all it power and trying to approach like Coca
Cola.
Latest reorganizing efforts are necessary to make it cost effective also making its
facility accordingly to modern conditions
Company management has to put its all effort to change the prevailing culture of the
company and to put the foundation stone of business oriented culture. In which
employees give important to the company and its customer.
University of the Punjab, Gujranwala Campus 101
INTERNSHIP REPORT ON NAUBAHAR BOTTLING (PVT) LIMITED
To attract the customer in the future NBC have to make extensive effort to give extra
facilities to retailers and consumers.
The outlook and interior lay out of the company is another thing which needs to be
improved.
The procedure of taking services from the company must be made easier and straight
forward not involving long difficult procedure for simple task.
.
University of the Punjab, Gujranwala Campus 102
Recommended