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ACKNOWLEDGMENT
All praises belong to almighty Allah who the supreme authority knows the ultimate relation
underlying all sorts of phenomenon going on in this universe & whose blessing & exaltation
flourished my thought & thrived my ambitions to have the cherished fruit of my modest efforts
my humblest thanks to the Holy Prophet Hazard Muhammad (PBUH) who is forever a torch of
guidance & knowledge for humanity as a whole.
We deem it our utmost pleasure to avail this opportunity to express gratitude & deep sense of
obligation to my revered teachers for their valuable and dexterous guidance, untiring help,
compassionate attitude, kind behavior, moral support and enlightened supervision during this
whole project.
Finally, I would like to extend hurtful thanks to my adoring parents and friends for their day and
night prayers sacrifices and encouragement, moral and financial support throughout the course of
my study.
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Con tent sEXECUTIVE SUMMARY ............................................................................................................ 4
INTRODUCTION .......................................................................................................................... 6
HISTORY OF PEPSI COLA IN PAKISTAN ................................................ ........................ 9
Vision Statement: .............................................. ...................................................... ...................... 11
Mission Statement:........................................................................................................................ 12
Cold Assets Departments: .................................................... .................................................... ..... 14
Marketing Department: .............................................. ..................................................... .............. 17
Sales Capability Department: ....................................................................................................... 19
Customer Service Department: ..................................................... ................................................ 21
Human Resource Department: ...................................................... ................................................ 21
Market Research & Sales Information System Department: ................................................... ..... 22
Key Accounts Department: .................................................. .................................................... ..... 24
Management Information System: ............................................... ................................................. 25
Finance department: ................................................... ..................................................... .............. 27
My Activities: ............................................................................................................................... 30
Financial Ratio Analysis ............................................................................................................... 31
PEST Analysis: ............................................................................................................................. 39
SWOT Analysis: ............................................... ...................................................... ...................... 41
Suggestions and Recommendations:............................................................................................. 43
Bibliography ................................................................................................................................. 44
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EXECUTIVE SUMMARY
Beverage industry in the whole world is very well established industry and the same case in
Pakistan. The major beverage companies are Pepsi Cola and Coca Cola and the emerging
beverage industry is Gourmet Cola. The Pepsi Cola is the market leader in the Pakistan as well
as in the Asia but Coca Cola is the market leader in the whole world. These industries develop
their own marketing strategies to meet the requirements of their respective target market. As far
as the Shamim& Co. beverage in Multan is concerned, it crea tes its monopoly in it s the market,
which is based on Multan, Rahim Yar Khan and other cities. Shamim& Co. beverage
successfully fulfill the requirement of its target market. There are different departments in theShamim& Co. beverages like Human Resource Department, Management Information System
Department, Key Accounts Department, Sales Department, Marketing Services Department and
Marketing Department, Audit and Taxation Department, TOT Department, Purchase
Department, Production Department, Finance Department, Store Management and Shipping
Department. Each department is running under intellectual managers and their respective team of
assistants. Human resource department in Shamim& Co. has the major function is to manage the
workforce. Recruitment and promotions are also done by this department. Personal record of
each employee is maintained by this department. In this record each and every thing about the
employee is recorded. This record is maintained both by manual system and computerized
system. Employee selection, employee appraisal and leave records are also the part of this
department s work. Diffe rent motivational tools for the employees are also managed by this
department.
The sales & marketing department in Shamim& Co. performs a very vital role. The distribution
system as well as the supply system of Shamim& Co. is very effective and very strong. That iswhy Shamim& Co. s market share is above 70%. The Shamim& Co. s employees build very
strong relationship with the customer. Company also gives incentives and bonuses to the
employees on achieving their targets. The marketing department makes the advertising of all the
new promotion, launching and re-launching of brands.
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The TOT department works on the issuance and repairing of the deep freezers and visi-coolers.
This department is established before four years. First this department work under the SIS
department. This department focuses on the philosophy COLD IS SOLD.
Finally, I am thankful to entire management of SHAMIM & COMPANY (Pvt) Ltd MULTAN,
especially Sir Aman (Key Account Co-ordinator) who gave me chance to work with them and
provide opportunity to learn functioning of SHAMIM & COMPANY PEPSI COLA MULTAN.
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INTRODUCTION History of Pepsi Cola
In 1893 Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins
experimenting with many different soft drinks. In 1898, one of Caleb's formulations, known as
" Brad's Drink" a combination of carbonated water, sugar, vanilla, rare oils and cola nuts, is
renamed " Pepsi-Cola" . On August 28, 1898, Pepsi-Cola received its first logo.In 1902, he
applied for a trademark with the U.S. Patent Office, Washington D.C., and formed the first
Pepsi-Cola Company. 1905, Pepsi-Cola's first bottling franchises were established in Charlotte
and Durham, North Carolina. In 1906, Pepsi gets another logo change, the third in eight years.
The modified script logo is created with the slogan, " The Original Pure F ood Dr ink" . In 1920,
Pepsi theme line speaks to the consumer with " Dr in k Pepsi-Cola, it wil l satisfy you" . In 1923,
Pepsi-Cola Company was declared bankrupt and its assets were sold to a North Carolina
concern, Craven Holding Corporation, for $30,000.
FORMATION OF PEPSI COLA CORPORATION
Roy C. Megargel, a Wall Street broker, bought the Pepsi trademark, business and good will from
Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation. In 1928, after
five continuous losing years, Megargel reorganized his company as the National Pepsi-ColaCompany. In 1931, U.S. District Court for Eastern District Virginia declared the National Pepsi-
Cola Company bankrupt, the second bankruptcy in Pepsi-Cola history.
REFORMULATION OF PEPSI COLAS SYRUP FORMULA
The Loft candy company acquired the National Pepsi-Cola Company. Charles G. Guth, president
of Loft, assumed leadership of Pepsi and commanded the reformulation of Pepsi-Cola syrup
formula.1934 was a landmark year for Pepsi-Cola. The drink was a hit and to attract even more
sales, the company began selling its 12-ounce drink for five cents (the same cost as six ounces of
competitive colas). The 12-ounce bottle debuted in Baltimore, where it was an instant success.
The cost savings proved irresistible to Depression-worn Americans and sales skyrocket
nationally. In 1941, The New York Stock Exchange traded Pepsi's stock for the first time. In
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1964, Diet Pepsi, America's first national diet soft drink, debuted. Pepsi-Cola acquired Mountain
Dew from the Tip Corporation in 1964.
FORMATION OF PEPSI COLA INCORPORATION
In 1965, Expansion outside the soft drink industry began. Frito-Lay of Dallas, Texas, and Pepsi-
Cola merged; forming PepsiCo, Inc.Pepsi Cola Company operates in beverages industry. Pepsi
Cola international is well reputed multinational company which is doing its business in almost
every country of the world. The company is registered in New York stock exchange U.S.A. to
make a better control over the business the company has given the manufacturing rights to
different companies. Now these companies are producing the products on the behalf of the
company by using company s trademark. To maintain their goodwill i n the market the company
has a strict policy of granting manufacturing rights. Pepsi Cola have standardized products all
over the world (e.g. same in size, shape and quality). The franchises have to follow all the
standards given by the company.
SETUP OF PEPSI COLA
The head office is situated in New York (USA) with units operating in different regions of the
world. These are called Business Units and Pakistan is in MENAPak (Middle East, North
America and Pakistan). The head office of MENAPak is situated in Dubai (UAE). The local
head offices for each country are situated in the respective capitals .
SLOGANS THROUGH TIME
Pepsi-Cola has different slogans through its history. They are very much known. These are given
below. This is also an important part of Pepsi-Cola.
1898 Brad's Drink
1903 Exhilarating, Invigorating, Aids Digestion
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1906 Original Pure Food Drink
1908 Delicious and Healthful
1915 For All Thirsts - Pepsi: Cola
1919 Pepsi: Cola - It makes you Scintillate1920 Drink Pepsi: Cola - It Will Satisfy You
1928 Peps You Up!
1929 Here's Health!
1932 Sparkling, Delicious
1933 It's the Best Cola Drink
1934 Double Size
Refreshing and Healthful
1938 Join the Swing to Pepsi
1939 Twice as Much for a Nickel
1943 Bigger Drink, Better Taste
1947 It's a Great American Custom
1949 Why Take Less When Pepsi's Best?
1950 More Bounce to the Ounce
1954 The Light Refreshment
Refreshing Without Filling
1958 Be Sociable, Have a Pepsi
1961 Now It's Pepsi for Those Who Think Young
1963 Come Alive! You're in the Pepsi Generation
1967 Taste that Beats the Others Cold, Pepsi Pours It On.
1969 You've Got a Lot to Live, Pepsi's Got a Lot to Give
1973 Join the Pepsi People Feelin' Free1976 Have a Pepsi Day!
1979 Catch That Pepsi Spirit
Take the Pepsi Challenge
1981 Pepsi's Got Your Taste for Life
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1983 Pepsi Now!
1984 The Choice of a New Generation
1987 America's Choice
1989 A Generation Ahead1992 Gotta Have It
1993 Be Young, Have Fun, Drink Pepsi
1995 Nothing Else is a Pepsi
1997 Generation Next
1998 Same Great Taste
1999 The Joy of Cola
2000 The Joy of Pepsi
2003 Pepsi. It's the Cola
2005 Dare for more
2008 Something For Everyone
2009 Refresh Everything
2010 Badal Do Zamana
2011 DunyahaiDilwalonki
2012 Change the Game
HISTORY OF PEPSI COLA IN PAKISTAN Pepsi cola is being produced and consumed 1n 48 countries of world including Pakistan. At
present, Pepsi Cola is No. 1 in Pakistan in terms of sales wise and in market share. It is the
market leader. But overall in the world Coca-Cola is No. 1. In Pakistan, there are nine territories
where the franchised unit produce and sell Pepsi-Cola. Some of these territories are:
I. Lahore
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II. Karachi
III. Rawalpindi
IV. Peshawar
V. Multan (Shamim& Co.)
VI. Gujranwala
VII. Sakher
VIII. Faisalabad
PEPSI COLA MULTAN
Pepsi Multan was incorporated in 1963 but it started its production in 1967. Allah Nawaz Khan
Tareen (Ret. DIG) got license of 7-UP. But in 1973, it became Pepsi Cola franchise. Now MD of
Pepsi Cola Multan is Alamgeer Khan Tareen son of Allah Nawaz Khan Tareen. At start PepsiMultan was having only one production plant made by Netherlands and was only producing 7-
Up because it was the only brand produced by Parent Company. In 1973, PEPSI acquired 7-Up
in Canada so the Multan franchise started producing PEPSI and Marinda along with 7-Up &
became PEPSI franchise.
Coke was already operating in the market at the time when Pepsi Multan established. At that
time Coke was market leader but with the passage of time Pepsi Multan kept on focusing on
gaining the market share. Now Pepsi Multan is working with five production plants capable of
producing 100,000 cases per day. Installation arrangements for two new plants are in process.
The plant which was installed at the time of establishment has now been grounded. Pepsi Multan
is currently market leader with more than 80% of market share.
The company is properly serving all these areas with quality products. PEPSI Multan is not an
ISO certified company because it is an international drink having their own standards and there
is no export.
Company has now acquired new experienced & competent sales staff and this is how they have
increased their share from 70% to 80 or 90%. As far as Distribution is concerned company has avery well-establish distribution network covering whole of the franchise areas. Depending on the
potential of the town, they have one and more than one distributions in each town. Sale
supervisor / Sale officer is responsible for all the activities carried out to increase the level of
sales from the part of the distributors. He looks after the stock availability, contingencies and all
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the routes covered by the salesman of that distribution. Sales officer is also given a responsibility
to train the salesmen as well.
Company has invested a lot of money in form of Cooler, Counters, Shades and Boards. These
things are offered to most of the retailers, as it is supposed that these chillers plays an important
role in increasing the sales level of the company products and also it helps in carrying out
different campaigns regarding the sales promotion of Pepsi products.
Shamim& Company covers a wide area of Multan District and adjoining districts as well. Some
of these are as follows:
1. Multan
2. Jampur
3. Bahawalpur
4. Ahmad Pur
5. Okara
6. Chistian
7. Sahiwal
8. Layyah
9. Rahim Yar Khan
10. Mailsi
11. Bahawal Nagar
12. Vehari
13. Haroon Abad
14. MuzaffarGarh
15. Dera Ghazi Khan.
Vision Statement:
PepsiCo's responsibility is :We strive to continually improve all aspects of the world in which
we operate - Environment, Social, and Economic - creating a better tomorrow than today."
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Our vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making PepsiCo. a
truly sustainable company.
Mission Statement:
Our mission is to be the world's premier consumer products company focused on convenient
foods and beverages. We seek to produce 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.
Organizational Hierarchy:
The organizational hierarchy of top management of Shamim& Company Private Limited is as
follows:
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Managing Director: Alamgeer Khan Tareen General Manager Sales & Marketing: Sh. Amir Hameed
General Manager Production: Mr. Sarwar
General Manager Finance: Mr. Sohail Butt
Management Accounts: Mr. Ch. Tahir Ameen
Manager MIS: Mr. Rizwan Zafar
Manager Human Resource: Miss. Sadaf Tahir
Manager Shipping: Mr. Major Farooq
Departments where My Internship Program was carried out:
While I was working in Shamim& Company Private Limited, I was directed to work at following
departments:
ManagingDirector
General Manager Technical
General Manager Sales
General Manager Finance
General Manager Operations
Manager Production
Manger Sales &Marketing
Manager MIS Manager Admin
Manager Personnel Manager FinanceManager Research& SIS
Manager QualityControl
Manager ShippingManager Account
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1. Cold Assets Department
2. Management Information System department (MIS)
3. Marketing Department
4. Sales Capability Department
5. Market Equipment Department
6. Sales Information System Department
7. Key Accounts Department
8. Human Resource Department
9. Finance
These departments have their own duties and tasks to perform. As I was focused on Marketing
Area, so most of the departments where I have worked are related to marketing and sales areas.
Other than marketing and sales I have also worked in Human Resource Department, Finance
Department and Cold Assets Department as well.
The duties of each department and my working in the respective departments are as follows:
Cold Assets Departments:This cold asset department is also known as Tools of Trade (TOT) Department. The description
of the duties of this department is related to the freezers, Visi Cooler and chillers of Pepsi that is
provided to different retailers of the brand. This department came into being in 2009 due to
excessive work load and need of a separate staff to run this job. Before 2009, this duty was
performed to Sales Information System (SIS) department. Their core duty is to supply freezers
and Visi coolers to different retailers, canteens and colleges. These chillers are continuouslyinspected and their feedback is also maintained for any complaints. Ms. Lubna Sheikh & Omer is
the Issuance Manager &Market Equipment Manager of this department respectively.
TOT department has two sub divisions:
1. TOT Issuance
2. TOT Workshop
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The functions of each division are further explained in the following section:
TOT Issuance:
The duties of TOT issuance are as follows:
1. Chiller Injection
2. Physical Verification
3. Schedule Census/Tracking
4. Handover
Chiller Injection:
This is the first step of the issuance of the freezers in the market. This department notices the
demand of freezers and chillers in the market and then after full documentation of the retailer and
chiller, this department issues the chiller to the retailer. The key points of this process are as
follows:
1. Document Received from sales team.
2. Check documents& quota which assign to specific area.
3. If Documents are complete then process starts otherwise documents are sent back to sales
team.4. According quota, arrange Documents.
5. Signed by management staff and send to ware house for injection.
6. If quota exceeds to current area then gets approval from management staff for assigning
additional quota.
7. In ware house gate pass is prepared and data base is created in soft form for tracking.
8. In ware house all Documents are maintained in hard form.
9. Ware house in charge plane for loading according to completed injection document.
10. Arrange Vehicle for injection in Multan base and Outstation.
11. Assign Field supervisors for chiller injection.
12. Cooler dispatch.
Physical Verification:
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After the issuance of freezers, the MEM goes himself to the market and verifies from the shops
either they have got the freezers on right time or not. If there is any complain then the MEM calls
back his subordinates and try to eliminate the problem.
Schedule Census/Tracking:
In tracking process the sales officer notes down the regular sales of shop. He also checks the
functioning of freezers and write down about their performance. If any freezer is out of order, he
recommends it to be repaired. The field supervisor get list of already injected coolers. He verifies
chiller of specific area according to injection data. After that the field supervisor updates Chiller
Contract and report if any cooler is missing according to the data. Then all data is updated in
excel for data base.
Handing Over Process:
If a shopkeeper switches to Coke or any other competitors brand, then he has to return his freezer
to the company. Then the representatives of TOT department picks up that freezer from that shop
and hand over it to any other shop where it is demanded.
TOT Workshop:
The duty of this department is to repair the out of order freezers. This department is dealing with
the shops of only Multan base. The shops outside the Multan base are handled by outsourcing.
For inside complaints, the company has launched a UAN number, when shop keeper calls on this
number for his complaints; the office note downs the name of shop, deep freezer number andname of distribution. The office allot a complain code to the shop keeper and sends a team to the
shop. If the problem is minor then the team repairs the freezer at the spot, otherwise the team
picks up the freezer and takes it to the workshop. For outside the Multan base, the company has
agreement with distributor and local mechanic who repairs the freezer of the shop and gets
payment from the company.
Types of Deep Freezers and Visi Cooler:
Pepsi offers following types of deep freezers and chillers:
3 types of Deep Freezer are
1. 10cft
2. 12cft
3. 15cft
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3 types of Visi Cooler are
1. 250SAX
2. 400SAX
3. 1000SAX or D.D (double door).
Marketing Department:This department of Shamim& Company Private Limited is mainly concerned with the Below the
Line promotional schemes. The main objective of this department is to increase brand awareness
among customers, to improve market share through visibility and to improve BTL planning and
execution. BTL includes all the advertisements like Wall Chalking, Umbrella, Boards, Backlight
Boards, Front-light Boards, Un-light Boards, Counters, Cabins, Sheds, Banners, Menu Cards,
Standees, Cutouts, Buntings, Mobiles and Stickers. Mr. MubashirGayoor is the Marketing
Manager of Shamim& Company Private Limited nowadays.
Some of the objectives of Marketing Department of Shamim& Company Private Limited are as
follows:
1. Coordinates all the activities regarding sales, promotion, accounts and issuance of
cheques to the vendors.
2. Create brand awareness.
3.
Increase market share through visibility.4. Increase BTL planning and execution.
5. Facilitate sales to have an accurate and prompt response.
6. Increase store branding and merchandising activities.
7. Facilitate PCI in launching and re-launching activities.
8. Monitors the activities of every promotional campaign.
9. Ensure that the fabrication of printing materials is in accordance to the specifications and
remains with in the assigned cost.
10. Facilitate the promotions and advertisement campaigns of ATL by Pepsi Cola
International.
11. Monitors the work and activities of vendors in accordance to the plans.
Work Flow Process:
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Work flow process includes all the activities which are involved in advertisement by installing
Boards, Cabins, Shades and Umbrellas etc.
These are the steps in this procedure:
1.
First of all the sales force initiate the need of cabin or board for a particular shop or store. 2. Then the marketing manager calls the vendor and tells him about the work. He makes an
estimate of all the work and gives a requisition form for his expenses to manager.
3. After examining the requisition form by marketing manager, he verifies all the items and
figures and gets its approval from general manager. And a whole document is completed
and returned to vendor. This document is now called Work Order.
4. After getting work order from manager, the vendor starts his work according to therequirements and completes the work in a specified time. After the work has been
completed the work order along with all the bills is again submitted to marketing
manager.
5. By getting the documents after the completion of work, the duty of the manager is toverify the work of vendor. For this purpose he sends these documents to the research
department. Research department imposes a stamp on documents and return to marketing
department after verification. 6. When documents are received from research department, then marketing department
sends these documents to database office which records all its entries into the computer.
After recording the data the documents are submitted to accounts department, from where
the payment is made to vendor.
Funds Allocation:
The marketing manager is given a budget for a whole year. The entire budget is already defined
for all the regions. Whenever a work is required, they check the budget of that area, if there is
enough money for that area then they approve the work other vise the work is postponed for nextyear or special grant is asked from GM.
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Sales Capability Department:This department is responsible for all the sales of the brands of Pepsi in the area of Shamim&
Company Private Limited. This department facilitates and supervises all the sales, promotional
and merchandising activities related to the Pepsi Brand. Mr. MirzaJaved is the manager of this
department. The objectives of this department are as follows:
1. To monitor the activities of all the distributions working under the Shamim& Co.
2. To calculate the capability of supply and retain market share.
3. To check the sale of every shop and take feedback from CR about the chiller integrity
and visibility of all brands of Pepsi.
Sales:
The original rate of regular crate is Rs.326. But there is discount for every shop assigned and
fixed by the company. This is the net discount given to shopkeeper on every crate. The
shopkeepers who have taken a loan from Shamim& Co. they are not given the discount, rather
salesman cut the invoice on full rate. This amount of discount which is not been given to
shopkeeper is considered as the installments of repayment of loan. When the whole amount of
loan is paid by shopkeeper either by installments or by lump sum amount, the discount is again
given to the shopkeeper.
Brands of Pepsi:
1. Pepsi Cola
2. Pepsi Diet
3. 7up
4. 7up Free
5. Mirinda
6. Mountain Dew
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7. Sting
8. Slice Juice
Sizes of Brands:
Regular 250ml Crate (24 bottles)
300ml( Buddy) 12 bottles
500ml 12 bottles
1 litre 12 bottles
Pet (1.5liter) 6 bottles
Jumbo(2.25 litre) 6 bottles
Every shop is registered in the record of company. And there is full data about the shop s sale
and shopkeeper s nature. The shops which are not recognized by company, they do not have
Pepsi freezer and they are not eligible for purchase discounts.
All the sales are done on net cash basis. The empty bottles of shopkeepers are replaced by filled
bottles. These empty bottles are the property of shopkeeper as hi purchases the bottles initially. It
is a fixed cost for him.
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Customer Service Department:This is not a separate department rather it is headed by the head of Sales Capability Department.
Mr. MirzaJaved also takes care of this department. For the customer service and relationships the
department has hired a new category of employees, named as Customer Representatives (CR).
Their duty is to go with the salesman in the vehicle and watch and note down all the activities of
salesman. He also takes feedback from shopkeeper and consumer. He maintains a separate
record of sale and reports it at the closing of the sale to the distributor and SCM. Further he has
to check the freezers of the shops, whether the shopkeeper is selling the Pepsi product or any
other brand in Pepsi s freezer.
In addition to this, the CR has to do the merchandising of Pepsi brands in the visi coolers and
make the visibility of every brand very clear.
Human Resource Department:The working of HR manager depends upon the nature of business and visions and mission
statements of an organization.
We can make a brief diagram for this hierarchy:
The basic duty of HR department is to understand the vision and mission statements of
organization and recruit and hire the best available employees according to the nature of job.
Here in Pepsi the criterion for the selection of employees is not very formal. If more than five
seats are available then the company publishes an ad in news paper. After getting the CVs they
shortlist the candidates and then call them for interviews.The basic requirement for Sales Officer
in Pepsi is MBA (Marketing).
After calling the candidates an initial test is conducted, which contains analytical, intelligence,
general knowledge and mathematical portion. When a candidate passes the test he is interviewed
by a panel including Sales Capability Manager and General Manager.
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Market Research & Sales Information System Department:Market research and marketing research are often confused. Market research is simply research
into a specific market. It is a very narrow concept.
Marketing research is much broader. It not only includes market research, but also areas such
as research into new products, or modes of distribution such as via the internet.
Marketing research is the function that links the consumer, customer, and public to the marketer
through information information used to identify and define marketing opportunities and
problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and
improve understanding of marketing as a process. Marketing research specifies the information
required to address these issues, designs the methods for collecting information, manages and
implements the data collection process, analyzes, and communicates the findings and their
implications.Market Research & sales information system is a very important department for any firm. This
department aims to keep current records of each and every outlet of the franchise.
Mr. Kamran Ahsan is the manager of this department. He is responsible to check all the activities
of this department, and reports to the MD.
Core Aim:
To do the research about product because sales people do not provide accurate data as they cangive a mixed opinion, that may be biased. So their opinion is not reliable, for this purpose SIS
department conduct researches for product and market.
Objectives:
1. To check the market share
2. To check the strengths and weaknesses on sample basis
3. Carbonated and non-carbonated soft drinks research
4. To get the competitor s data
5. Help the high management to make decisions
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Working:
The department conducts its researches by sampling method, they divide the whole market into
segments called stratum.
The names given to stratum are as:
1. Captives
2. Key Accounts
3. Main
4. Site
Captives: Captives are those shops which are in a boundary and serve only one type of
customers. For example, the canteen in MMDC, Nishter Hospital, and NFC are the captives.
These captives shops hold a big share of market.
Key Accounts: Key accounts are the main shops in market and big super stores which serve the
Pepsi for all type of public. Out of the whole market, key accounts are the biggest segment.
Main: The shops which are located on the sides of main roads and in colonies are named as
main.
Site: The far flung areas out of the city, where the shops are located at big distances are called
sites. These shops keep a small portion of segment.
Each stratum contributes to sample according to the percentage of its shops.
This department measures the sales capability of distributor. It is depicted by Stock and Sale.
The department is using their own customized software for data processing. This department is a
backbone for the whole organization as it maintains all the record and it is primary audit.
Documents Used is SIS:
The department starts its work from two types of reports, which are provided by distributer:
Stock Register:It consists of all the information about the initial and final stock before and after the sales.
Sales Route Card:
Sales route card consists of all the information regarding the deep freezer, chillers and number of
sales of all the SKUs of every shop of a particular distribution.
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The distributer provides these reports after every four weeks, which consists of daily basis data.It
is compulsory for a distributor to provide these reports after every four weeks otherwise the
company stops the discounts and other claims of distributor.
Discount Claims:
The discounts which a distributor gives to shops, at the end of the month he sends a summary of
all accounts to company and claims for this money. If he has already submitted the monthly
reports he will get the claim otherwise he is required to bring reports and afterwards he is
awarded with claim.
Key Accounts Department: This department is basically working on retention of the existing points and the conversion of
coca cola points into the Pepsi points. The head of this department is called the Key Account
Manager who is Mr.ArfanShahzad. The employees that are working in this department are called
the Key Account Executives and currently there are 10 executives. The job of converting of Coca
Cola points into the Pepsi points is very difficult. The Key accounts Executives deals in a very
good way because the point s conversion is very difficult. The Key accounts convert the Coca
Cola points into Pepsi points through different offers and giving a good incentive package. Key
accounts Executives also listen the complaints of the shopkeeper. They also make work on themerchandising. They have no concern with the sales force, but they coordinate the sales force.
The objectives of this department are as follows:
1. Monitoring and verification of Advance Payments and Trade Payments and
realignment of AP and TP process.
2. To develop alert system for the maturity of existing contracts.
3. To develop key accounts KPI s category wise.
4. To increase market share and revenue within existing accounts.
5. To identify the potential accounts and develop them.
6. To provide the best services to the existing accounts for the retention.
7. To keep an eye on competitors activities and develop action plans for them.
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8. To manage objectives and plans through a field team or through internal associates.
9. To responsible for studying and understanding market trends and knowing how these
affect the accounts.
10. To improve customer retention through stronger relationships and increased client
satisfaction.
Job Description of Key Accounts Executives:
They work on three things
1. Convert the Coca Cola points into Pepsi through low cost.
2. They perform like a communicator. They listen the shopkeeper complaints, then forward
to the sales force.
3. Retentions of Pepsi point by giving large discount.
Different Offers used for Conversion:
Offers that are given to the retailers when they shift from Coca Cola to Pepsi Cola are as follows:
1. By giving deep freezer or visi cooler
2. Through trade payment & advance payment
3. By offering a big amounts discounts and different schemes
4.
Including their names in the lucky Draw.
Management Information System:In today's fast moving business environment, organizations are rapidly moving towards
computerization and information systems. In this era of rapid of frequent changes, it provides
current, reliable and accurate information to the management. This information is very useful in
decision-making. Information systems are generally defined as the system, which provide regular
and current information to management for decision-making.
MIS department of Shamim& Co. is playing a vital role in this regard. The department is
working with a small setup & satisfying the information requirements the organization with a
smart staff and developed setup, the department has eliminated much workload, paper work and
saved a lot previous time.
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The software system has two basic parts and these are developed in some programming
language. The post important part of any information system is database. The database is the
basic structure of data and defines how data is organized, stored and retired from memory. The
database operates at the back end. At the front end, data is entered and retired through input
screens.
The MIS department is currently performing its day-to-day operations as well as involved in
software development. It also 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.
a. 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.
b. Sales & Distribution System:
The most comprehensive system of MIS is sales and distribution system. It incorporates: Sales system Cash system Shipping system
The basic input of this system is empties slip, liquid out slip, full in slip by order sips.
Empty short slip, the reports of the system are
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Load report (dealer wise, depot wise) Settlement sheet (dealer wise, depot wise) 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.
Finance department : This department looks after the insurance of all the Assets of Organization. Leasing like
direct leasing and sales and lease back.
Letter of credit like Irrecoverable LC and Irrecoverable and Confirmed LC.
Clearance of shipment is also comes under this department. Short term and long term
financing too.
This is one of the most important departments of this organization. This department made
the financial plans of the organization, they analyze their resources and then concise other
reports and gives the whole budget the organization can afford. Another job of this
department is to make the complete record all financial and non-financial transactions
made inside as well as outside the organization
Functions of Finance department:
Insurance: Insurance of all the assets of Shamim& Co. (Pvt) Ltd Multan.
These assets includeso Machinery
o Buildingo Stock ( Empty & Liquid )
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Leasing:
There are two type of leasing:
Direct leasing Sales and lease back
Direct leasing:
Suppose you want to buy a new asset (Machinery). You go to bank ask him to purchase on
the behalf of you and bank make the payment. You take that asset from bank on lease. You make
the payment to bank in Installment with mark up. At the end asset will be your when you pay all
the installment of that Machinery.
Sales and Lease back:You sale your working asset to bank when you need short/long term finance to fulfill your
operating expense or any of the others. You have to make the payment to bank in installment
with mark up/interest. After the complete payment assets again come under the organization
ownership.
Letter of Credit:
There are many types of Letter of Credit
Irrevocable Letter of Credit Revocable Letter of Credit Irrevocable and Confirmed Letter of Credit Confirmed Letter of Credit Un-Confirmed Letter of Credit
Modes of payment: By Sight Payment
By Acceptance By Negotiation By deferred payment
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Document Delivered Against Acceptance (DDAA OR DD): Bills of exchange are used and organization gives acceptance for this.
Buyer has to make the payment after receiving the whole shipment after the date of
Truck receiving in 180-days .LC Procedure:
Letter of Credit can be local/Inland or for foreign supplier Only difference between local and foreign LC is that for foreign LC Import Form or
Export Form is submitted by bank to State Bank of Pakistan while in local it s not
submitted.
In Import/Export Form detail of goods, quantity and prices are mentioned.
Organization want to buy raw material, machinery etc from supplier Organization contact the supplier Supplier send detail of requirement with the rates Supplier demand for letter of credit Buyer sends a request to its bank along with the detail document of buying material,
quantity and price.
Bank make the letter of credit
Send it to buyer and seller Shipment Clearance procedure:
For clearance original document are require. These document include
Commercial Invoice Air Way bill or bill of lading Packing list For clearance purpose organization higher an Agent.
Agent go to custom house and told them that he be authorized by part Show them the original document. After this there are some duties and charges on shipment like Custom duty Excise duty
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Initially to launch that project, 12 routes were defined in the semi depot area. 12 CRs were
called from different distribution to work in this area. And 11 officers were also called from
different distributions and departments to work here. I was the only internee at that time who
worked as the 12th
officer above a CR.I worked with the key accounts executives in the market and learned the process of conversion of
the shops and also helped them in maintaining a data base of the retailers selling Pepsi Cola. I
also strived to have some feedback from the retailers about the Pepsi products and complaints
about the sales officer and delivery services.
Financial Ratio AnalysisLIQUIDITY RATIOS:
These ratios are important in measuring the ability of a company to meet both its short term and
long term obligations.
Working Capital:
Working capital is an indication of the short run solvency of business
Working Capital = C.A C.L.
Year 2009 2010 2011
CA 966,494,618 839,722,212 1,652,345,965
CL 1,512,379,837 1,117,663,576 1,811,291,315
Working Capital (545,885,219) (277,941,364) (158,945,350)
Current Ratios:
This ratio measures the short-term debt-paying ability of the company
Current Ratio = LC
AC
.
.
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Years 2009 2010 2011
CA 966,494,618 839,722,212 1,652,345,965
CL 1,512,379,837 1,117,663,576 1,811,291,315
CurrentRatio 0.63 0.75 0.91
DEBT MANAGEMENT:
This is the most common measure of the ability of a firm s operations to provide protection to
the long-term creditor.
TIME INTEREST EARNED:
TIE = EBIT /INTEREST EXPENSE
YEAR 2009 2010 2011
EBIT 74,774,319 79,902,212 119,386,219
InterestExp 90,806,108 169,864,086 141,507,989
TIE 0.82 0.47 0.84
DEBT RATIOS:
This ratio measures what portion of a company s assets is contributed by creditors.
DEBT RATIO: Total Debt / Total Assets
YEAR 2009 2010 2011
Total 2,127,303,899 1,837,898,111 2,500,067,110
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Debt
Total
Assets
2,567,362,816 2,526,300,377 3,198,932,646Debt
Ratio 82% 72.7% 78%
D/E RATIO:
This ratio indicates the extent to which debt is covered by shareholders funds. It reflects the
relative position of the equity holders and the lenders and indicates the company s policy on the
mix of capital funds.
D/E = Total Debt / Total Equity
YEAR 2009 2010 2011
Total
Debt 2,127,303,899 1,837,898,111 2,500,067,110Total
Equity
440,058,917 688,402,266 698,865,536
D/E 4.834 2.66 3.57
ASSET MANAGEMETNT:
These ratios are important in measuring the efficiency of a company
1. Days sales in receivable:
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Shows both the average time it takes to turn the receivables into cash and the age, in terms of
days, of a company's accounts receivable
Days sales in receivable =365/
Re
Sales Net
ceivablesGross
YEAR 2009 2010 2011
A/R 105,511,324 231,184,007 403,860,325
Sales 4,326,108,580 5,099,245,416 5,328,369,635
Days sales
in
receivable 6.68 days 1.24days 2.07days
TOTAL ASSET TURNOVER:
A company's effectiveness in generating sales revenue from investments back into the company.
The higher the Total Asset Turnover is the more effective use of the company's investments.
Total Asset Turnover can be very useful if you watch what actually makes up the Total Assets of
the company. A company with low inventory and strict credit policies to keep Accounts
Receivable low will help the Total Asset Turnover look even better. Of course it depends on all
of the company's Total Assets.
Total Assets Turnover = Sale / Total Assets
YEAR 2009 2010 2011
Sales 432,6108,580 5,099,245,416 5,328,369,635
Total
Assets 2,567,362,816 2,526,300,377 3,198,932,646
Total
Assets
Turnover 1.68time 2.02 1.66
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PROFITABILITY RATIOS:
Profitability Ratios show how successful a company is in terms of generating returns or profits
on the Investment that it has made in the business. If a business is liquid and efficient it should
also be Profitable.Ability to provide financial rewards sufficient to attract and retain financing.
RETURN ON EQUI TY (ROE):
The Return on Equity of a company measures the ability of the management of the company to
generate adequate returns for the capital invested by the owners of a company. Generally a return
of 10% would be desirable to provide dividends to owners and have funds for future growth of
the company
ROE = Net Income / Shareholders' equityYEAR 2009 2010 2011
Net Income 16,295,514 44,159,121 101,322,228
Shareholders'
equity 440,058,917 688,402,266 698,865,536
ROE 3.70% 6.41% 14.49%
RETURN ON ASSETS:
The Return on Assets of a company determines its ability to utilize the Assets employed in the
company efficiently and effectively to earn a good return. The ratio measures the percentage of
profits earned per dollar of Asset and thus is a measure of efficiency of the company in
generating profits on its Assets.
ROA= Net Income / Total assets
YEAR 2009 2010 2011
Net
Income 16,295,514 44,159,121 101,322,228
Total
assets 2,567,362,816 2,526,300,377 3,198,932,646
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ROA 0.63% 1.74% 3.16%
NET PROFIT MARGIN:
The Profit Margin of a company determines its ability to withstand competition and adverse
conditions like rising costs, falling prices or declining sales in the future. The ratio measures the
percentage of profits earned per dollar of sales and thus is a measure of efficiency of the
company.
NPM = Net Income /Sale
YEAR 2009 2010 2011
Net
Income 16,295,514 44,159,121 101,322,228
Sales 4,326,108,580 5,099,245,416 5,328,369,635
NPM 0.37% 0.8% 1.9%
Operating income margin:
The operating profit margin ratio indicates how much profit a company makes after paying for
variables cost of production such as wages, raw materials etc.s
= Operating Income x 100
Net Sales
YEAR 2009 2010 2011
Operating
Income 168,543,158 250,018,086 266,352,920
Sales 4,326,108,580 5,099,245,416 5,328,369,635NPM 3.89 5% 5%
Horizontal Analysis:
The horizontal analysis of The Pepsi Cola Company is given below.
Accounts 2010 2011 Status
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= 688.7/698.8
= 98.55%
Interpretation:The vertical analysis shows that the amount of cash out of total current assets is increased. This
shows the focus of management on cash rather than other marketable securities. Because cash is
the most liquid asset of company. Company has reduced its long term liabilities and is relying on
short term debts. This is an aggressive approach used by company. Income taxes are a very small
part of total tax which indicates that the company has more operating and other expenses due to
which its net income reduces. As the company is using an aggressive approach it is using more
debt than equity financing. This is clearly shown in above calculation.
Overall the performance of Shamim& Co. is satisfactory. It has retained its market share in
between 70% to 75% overall but in Multan they are successfully capture 80 percent market share
The managers are risk takers and they prefer more debt financing rather than equity financing.
The other reason is that Shamim& Co. is a private limited company, so it does not offer its shares
to market. So a big source of its financing is debt financing from banks and other institutions.
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PEST Analysis:The PEST analysis for Shamim and Company Private Limited is as follows:
Political Factor:
In Asia and especially in Pakistan where the political environment is not stable no Government
has completed its tenure except the last and the politics also a great influencer on the different
industries of the country. Now following are the effects on the beverages industry. The govt.
decides that what will be the rates of sales tax. The rates of main operating variables inputs such
as the Electricity are also decided by the govt.
Economical Factors:
The country like Pakistan whose economy is not strong enough is affected by so many economic
variables which are the following.
1. Low literacy rate is a problem due to which rural customers are not able to differentiate
between PEPSI and Coke and etc.
2. Employment opportunities will be higher.
3. Increasing demand of PEPSI requires establishment of new production plants.
4. Combined pricing decisions with mutual agreement between PEPSI and Coke.
Social Factors:
The social factors of each society and culture are different from each other so these also
influence the industries as well. Now it has become a trend that soft drink should be served inalmost every gathering. Fast food popularity among teenagers has led to the increase in demand
of PEPSI. Social welfare program is also active at PEPSI for example PEPSI donated Rs. 1
million for helping recent flood victims. They have been sponsoring different cricket events and
Pakistan cricket team for almost 10 to15 years.
Technological Factors:
1. Today is the era of Technology whether it is Information Technology or Production
Technology so the PEPSI is also affected by these. Following are some of these.2. Previously there were separate production plants for the production of specific brand size.
3. Now they have installed a new production plant which is capable of producing different
brand sizes at the same time.
4. The plant which they installed at the time of establishment has now been grounded.
5. The sixth production plant which is currently being installed is imported from Germany.
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6. The seventh production plant which is currently being installed is the latest that is
imported from Italy.
7. There is no institute in Pakistan providing engineering training regarding beverages
production plants so PEPSI people have to arrange onsite training for its maintenanceengineers to learn working with latest technology plants
8. There is very limited automation to keep production record. Most of the record is
maintained manually but currently they are trying to shift towards fully automated
production control system.
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SWOT Analysis:The strengths, weaknesses, opportunities and threats that can be mentioned in this section. These
findings are as follows:
Strengths:
1. Strong brand recognition
2. A large distribution and supply system
3. Daily basis supply
4. Strong sales & marketing department
5. Inspection of quality is regularly performed by Country Office to insure consistent
quality products.
6. They have their own research department which is responsible for conducting market
research
7. A strong key accounts department for conversion
8. Efficient management that can take the heavy risk
9. Strong position in FMCG products
10. They are financially very strong and require no financial help from country office
11. Focus on Differentiation
12. They offer attractive margins to the distributors, so distributors are willing to carry PEPSI
brandsWeaknesses:
1. Un fulfillment of increasing demand of Pepsi
2. Employee management
3. Poor feedback from employees
4. Insufficient salaries
5. Lack of skilled sale team
6. No Proper Infrastructure
7. Fewer Incentives
8. Not satisfied workforce
9. No involvement of lower level subordinates in decision making.
10. Monopoly of distributors cause harm to company.
Opportunities:
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1. It has opportunity to get new opening shops in new markets
a. Training of sales officer and salesman
2. Opportunity to Attract By Incentives As Pepsi is a well known brand in all over the Pakistan so it
also has the opportunity to create its value and to attract the customer by offering extra incentivesto the retailers and specially consumers
3. Innovation or Cost Reduction Edge
4. Because of high customer loyalty and brand image new brands can gain customer preference
very soon.
5. There is high market growth opportunity
6. Country office is responsible for national ad campaigns which facilitate PEPSI Multan to enjoy
the benefits of integrated advertisements.
7. Low cost skilled person availability
Threats:
1. Coca Cola and Gourmet are increasing their market share very rapidly
2. After getting the skills many employees run away due to pay
3. Coca- Cola is on its way to get market share
4. Rapid changes in demand due to seasonal reason
5. Changes in consumer purchasing power
6. Increase in competition7. Due to blame of religious group
8. Biggest threat to the brand image of the company at national and international level.
9. No proper employee s orientation programs
10. Pepsi Co. has the threat of its competitor which is putting its best to get the maximum customer satisfaction and to maximize its profits by its active and keen management.
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Suggestions and Recommendations:As far as my observation is concerned Pepsi should take the following steps:
1. Proper employee meeting at every month
2. They should take feedback from lower level employees like CRs and Salesmen
3. They must keep a fair wage rate among all the employees.
4. They must announce an allowance for CRs and Sales Officer
5. They must increase their supply to rural areas as there is a lot of demand.
6. The company should have a good control over the distributor as he must maintain a
good supply and should not commit the cross supply of competitors brand.
7. The company must launch an on the job training program for every employee as it
will enrich and refresh the knowledge and skills of employees and they will become
the strongest asset of the company.
8. The company should increase the commission and bonuses for the sales force.
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Bibliography
http://pepsiworld.com.pk/
Shamim and Co. Staff.
http://pepsiworld.com.pk/http://pepsiworld.com.pk/http://pepsiworld.com.pk/Recommended