Académique Documents
Professionnel Documents
Culture Documents
ACKNOWLEDGEMENT 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. May all of them live long and enjoy a happy life!
TABLES OF CONTENT
Executive Summary ------------------------------------------------------------08 Introduction To Industry-------------------------------------------------------11 Vision Statement-----------------------------------------------------------------12 Mission Statement---------------------------------------------------------------12 Objective--------------------------------------------------------------------------12 Pepsi Cola International---------------------------------------------------------13 HISTORY ------------------------------------------------------------------13 PepsiCo Values & Philosophy-------------------------------------------14 Slogans Through the time-------------------------------------------------------15 Pepsi Cola Brands List-----------------------------------------------------------18 Pepsi Cola In Pakistan-----------------------------------------------------------19 Shamim & Co. (Pvt) Ltd Multan-----------------------------------------------20 Unique Features of Shamim & Co.------------------------------------21 Main Objective------------------------------------------------------------21 Main Operation------------------------------------------------------------21 Management of Shamim & CO.----------------------------------------22
Territory of Shamim & Co.----------------------------------------------22 Organizational Structure-------------------------------------------------23 Currently offering Products---------------------------------------------24 Major Competitors--------------------------------------------------------24
Sales & Marketing Department----------------------------------------30 8 steps of Sales------------------------------------------------------------36 Key Accounts Department-----------------------------------------------39 Tools Of Trading Department-------------------------------------------42 Market Research & SIS Department-----------------------------------45 Other 51 The Marketing Mix----------------------------------------------------------------55 SWOT Analysis--------------------------------------------------------------------60 PEST Analysis---------------------------------------------------------------------65 Suggestions-------------------------------------------------------------------------67 Recommendations for Improvement--------------------------------------------68 Comments---------------------------------------------------------------------------70
What I learn in the organization--------------------------------------------------71
deparments-------------------------------------------------------------------
Annexure----------------------------------------------------------------------------72
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 for as the Shamim & Co. beverage in Multan is concerned, it creates its monopoly in its target market, which is based on Multan, Rahim Yar Kahn and the sub areas of these cities. Shamim & Co. beverage successfully fulfill the requirement of its target market. Shamim & Co. beverages believe in departmentalization in their office works and therefore they establish different department to achieve their respective tasks. There are different departments in the Shamim & 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 there 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
Shamim & Co. (Pvt) Ltd. Multan also the part of this departments work. Different motivational tools for the employees are also managed by this department.
The sales & marketing department in Shamim & Co. performs a very vital role. It manages all the sale force. Mr. Aamir Hameed is the G.M of marketing and sale department. He is very experienced person and he manages all the sale force in a good manner. The G.M give monthly, quarterly, semi annually and annually targets to the sale force. He adopts the policy that they hire the experienced person for the manager level jobs and fresh MBAs for the sales officers and for the executives level jobs. The distribution system as well as the supply system of Shamim & Co. is very effective and very strong. That why Shamim & Co. market share is above 75%. The Shamim & Co. employees build very strong relationship with the customer. Company also gives incentive and bonus to the employees on achieving their targets. The marketing department makes the advertising of all the new promotion, launching and relaunching of brands. The marketing department is just perform the BTL (below the line) marketing that include the banners, counters, billboard, wall chalking, paints and promotion of the PCI ads. The Key accounts department is basically works on the conversion of the Coca-Cola point into the Pepsi Cola points. The main focus of this department is to convert the Coca-Cola point on the basis of low cost and using their personal abilities and personal relations. This department plays the role of communicator between customer and sales force. The key accounts department also works on the retention of the existing point of the Pepsi. The working of this department is to increase the point of Pepsi, when points increase then automatically the market share is increased.
Shamim & Co. (Pvt) Ltd. Multan The TOT department is work on the issuance and repairing of the deep freeze and visi coolers. This department is established before three years. First this department work under the SIS department. This department major focus is on the philosophy COLD IS
SOLD. When all the documents of agreement are completed, then their first priority is to ensure the very soon delivery. This department work through out the year but the season of issuance deep freezer and visi cooler is started from January. 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. Through this system, management comes to know about the market share, name & address of each outlet, TOT details, publicity position, Discount Verification. Information is collected about Distributors & area wise, Route wise and District wise. This system is useful in accessing market & investment position in each area. Finally, I am thankful to entire management of SHAMIM & COMPANY (Pvt) Ltd MULTAN, especially HR Manager Madam Sadaf and Sir Nauman Assistant Manger of Sales analysis who gave me chance to work with them and provide opportunity to learn functioning of SHAMIM & COMPANY PEPSI COLA MULTAN.
10
11
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." 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
We aspire to make Pepsi Company the worlds premier consumer Products Company, focused on convenient beverages. We seek to produce healthy financial rewards for investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity
OBJECTIVES
The company operates through well experienced, loyal and hardworking employees. The first and the most basic plan it to train them according to the changing technology and computerized environment, and satisfying their needs and requirements. Upgrading the plant structure and installation of the new machinery are other plans. The company is planning to increase its sales force and development in its infrastructure in the coming time period.
12
13
Shamim & Co. (Pvt) Ltd. Multan $1 billion for the first time. In 1994, PepsiCo sales reach $30.4 billion. There are 470,000 employees worldwide, making PepsiCo the third largest employer. In 1995, Pepsi-Cola introduces Nothing else is a Pepsi theme line. In 1996, Pepsi-Cola introduces new advertising campaign with the theme Generation Next. In 1997, PepsiCola celebrates 100th Anniversary with first worldwide bottlers conference, held in Hawaii.
In 2000, PepsiCo sales are $20 billion and the company has 125,000 employees. So at this year PepsiCo creates PepsiCo International, the business that will unite all international snack, beverage and food units in an effort to drive faster growth and improved profitability around the world.
Guiding Principles We uphold our commitment with six guiding principles. We must always strive to: Care for our customers, our consumers and the world we live in Sell only products we can be proud of
14
Shamim & Co. (Pvt) Ltd. Multan Speak with truth and candor Balance short term and long term Win with diversity and inclusion Respect others and succeed together
1898 1903 1906 1908 1915 1919 1920 1934 1938 1939 1943 1947 1949
Brad's Drink Exhilarating, Invigorating, Aids Digestion Original Pure Food Drink Delicious and Healthful For All Thirsts - Pepsi: Cola Pepsi: Cola - It makes you Scintillate Drink Pepsi: Cola - It Will Satisfy You Double Refreshing and Healthful Join the Swing to Pepsi Twice as Much for a Nickel Bigger Drink, Better Taste It's a Great American Custom Why Take Less When Pepsi's Best?
15
Shamim & Co. (Pvt) Ltd. Multan 1963 1967 Come Alive! You're in the Pepsi Generation Taste that Beats the Others Cold, Pepsi Pours It On. You've Got a Lot to Live, Pepsi's Got a Lot to Give
1969
1973 1976 1979 1981 1983 1984 1987 1989 1992 1993 1995 1997 1998 1999 2000
Join the Pepsi People Feelin' Free Have a Pepsi Day! Catch That Pepsi Spirit Take the Pepsi Challenge Pepsi's Got Your Taste for Life Pepsi Now! The Choice of a New Generation America's Choice A Generation Ahead Gotta Have It Be Young, Have Fun, Drink Pepsi Nothing Else is a Pepsi Generation Next Same Great Taste The Joy of Cola The Joy of Pepsi
2003
2005
16
2006
"Badal Do Zamana
17
Product Pepsi-Cola Diet Pepsi Pepsi Twist (regular & diet) Pepsi Vanilla Pepsi Max Pepsi Light Pepsi Limon Mountain Dew Diet Mountain Dew Mirinda 7UP
18
19
20
Shamim & Co. (Pvt) Ltd. Multan Coke was already operating in the market at the time when Pepsi Multan established. At that time Coke was market leader but with the passage of time Pepsi Multan kept on focusing on gaining the market share. Recently Pepsi has launched a new brand with the name of Mountain Dew. Now Pepsi Multan is working with five production plants capable of producing 100,000 cases per day. Installation arrangements for two new plants are in process. The plant which was installed at the time of establishment has now been grounded. 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. Unique Features of Shamim & Co. Multan The company has following distinguishing features: Shamim & Company is the biggest soft- drink manufactured in Pakistan having about 80% of market share. Shamim & Company covers the largest area/territory among all Pepsi companys franchises in Pakistan. Shamim & Company has won quality awards at international level. Also declared Bottler of the Year in the region for outstanding performance. It enjoys 80% market share which is the highest for any Pepsi Cola franchise in the world. Main Objective The two main objectives of Shamim & Company are: To provide the customers, a quality-products, along with maximization of profits. The continuous improvement in quality. Main Operation Operation is process that transform inputs into finished goods and services. Shamim & Company has its main operation as: To convert empty-returned bottles into filled bottles and to distribute them to retailers.
21
1. Multan A Zone 3. Multan B Zone 5. Multan C Zone 7. Multan District 9. Multan Outskirts 11. Khanewal 13. Mailsi 15. Vehari 17. Muzafar Garh 19. D.G. Khan
2. Jampur 4. Layyah 6. Sahiwal 8. Okara 10. Bahawal Pur 12. Ahmad Pur 14. Bahawal Nagar 16. Haroonabad 18. Rahim Yar Khan 20. Chishtian
ORGANIZATIONAL STRUCTURE
22
Managing Director
Manager Personnel
Manager Accounts
Manager Shipping
23
The first product of Shamim & Company was 7-up. The other products are: Pepsi Cola Mirinda 7-up Diet Pepsi Mountain Dew Sting Slice Juices
MAJOR COMPETITORS
Pepsi's direct competitor is Coca-Cola. The non-soft drink competitors are tea, coffee, water, energy drinks, sports drinks, milks, etc which are all consumed on beverage occasions. Pepsi aims to gain a greater share of these occasions.
24
25
INTERNSHIP PROGRAMME
During my six week internship program, I was moved through following departments: 1. Human Resource Department 2. sales & Marketing Department 3. Key Accounts Department 4. TOT Department 5. Market Research & SIS Department
26
27
28
Written Test
If Qualified
RJP
Experience
3rd Interview
2nd Interview
1st Interview
By HR Manager
Final Selection
Joining
CAREER PATH
29
Shamim & Co. (Pvt) Ltd. Multan The career path of the Shamim & Co. (Pvt) Ltd Multan is as
Executive
Officer
30
Shamim & Co. (Pvt) Ltd. Multan Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Marketing is not only much broader than selling; it is not a specialized activity at all. It encompasses the entire business. It is the whole business seen from the point of view of the final result, that is, from the customers point of view. Sale and marketing is the most important department of any beverage company. To maximize the sales and profit, this department should be proper planed and managed. The marketing department is responsible to make advertisement of the company products and get them sailed. They are given monthly, quarterly, semi annually and annually sales targets and they are liable to achieve it. They use different schemes and offer different discounts etc. to achieve those targets. Shamim Co. Pvt. has a very aggressive and hardworking Sales and marketing department. Due to its efforts the company has got the first position in sales in 1993 through out the Pakistan.
31
Sales Department
Marketing Department
Marketing Manager
Regional Sales Manager (RSM) Marketing Executives Area Sales Manager (ASM)
32
Shamim & Co. (Pvt) Ltd. Multan Marketing Development Tactical analysis and routine planning of market strategies. Competition activity monitoring T.O.T. management Publicity management Time management 1. Market Development Targets are set and then this department makes strategies to achieve those targets and develop the market. The following major factors are considered in this respect. Location of non traditional shops where potential is available for the beverage. Collection of all the data about each and every distributors/outlets, about its sale, volume, growth and exclusivity. Finding the gaps in the market where there is a potential. Different offers must be given to break the competitors point. Finding the points where competitor is strong and hoe we can break this point. 2. Tactical Analysis & Routine Planning Of Market Strategies On the market side the sales people gather information and on the bases of these information they further plan and improve their strategies. Checking of the designated area, its sale, volume and growth. Calculation of share n brands and package wise Calculation of daily sales achievements on monthly target basis Location of the poor performance factors and analyzing their cause Finding their solution and getting the approval for its execution. Planning for a schedule for the designated area. Visiting the area according to the plan and reporting it to the higher management
33
3. Competition Activity Monitoring A firm has to monitor its competitor continuously in order to be successful in the market. There are six steps in competitor analysis. Identifying the companys competitors Determining the competitors objective Determining the competitors strategies Assessing competitors strengths & weakness Benchmarking The process of comparing the companies product and processes to those off competitors or leading firms in other industries to find ways to improve quality and performance. Benchmarking has become a powerful tool for increasing company competitiveness. Estimating competitors Reaction: Selecting competitors to Attack & Avoid: A company has already largely selected its major competitors through prior decision on customer targets, distribution channels, and marketing-mix strategy. These decisions define the strategic group to which the company belongs. Management now must decide which competitors to compete against most vigorously. The company can focus on one of several causes of competitors. Strong or Weak Competitors Close of Distant Competitors Well-Behaved or Disruptive Competitor On the other hand a constant intention has been given to the competitors activities, strategies and offers. They have been compared with ours and updated according to the environment.
34
4. Sensory Indices Levels Measures Sensory measures means to check the quality and standards through the senses. The color, taste, appearance and other specimens of the bottle, must be checked time by time so that the standards of the PCI may not doubted. 5. Empty & Load Management: Empty management means full utilization of available empty at highest productive Trip page level within the franchise area. There are two types of empty management i.e. Empty management within distributors Empty management within Salesman. The sales and marketing department have to manage, plan and make strategies a about the distribution of empty whether it is on credit or cash. The department also has to handle and manage load. Whether it is on vehicles, or shipping, distributors or at the depots level. At shipping level load management can be divided into Package wise Brand wise Demand wise
How to Manage the Empty Following are the steps which are necessary to manage the empty Estimation of empty available (within shopkeeper) Estimation of empty available ( within distributors ) Previous sales record of each specific area within distributors. Trip page level tracking of each distributor for the last two years at least. Estimation of sales volume growth for at least last three years (Distributors or salesman rout) Estimation of empty injection volume for at least three years
35
Shamim & Co. (Pvt) Ltd. Multan (Distributors or salesman rout) Comparison of empty Trip page from the one to other distributors/salesman rout. Factors causing poor Trip page Factors involved causing hyper Trip page. Empty plan (Forecasting) based on the previous years Trip page Level & Percentage increase of empty injection.
36
12345678-
Preparation Greeting Stock Checking Merchandising Presentation Order taking Curb side de-briefing evaluation Administration
1. Preparation i. What are Objective ii. What to do here iii. How to do that Simply where we want to go, & how to get our there. 2. Greeting It includes greetings and hand-shake. Greet the customer by name & he will be delighted should be keep in mind of every person involved in sales.
37
3. Stock Checking (Stock Availability Store Checking) This includes all the good e is dealing in this will help us to know about his financial worth patented and clientage. 4. Merchandising (Display) Display of Visi Cooler Display outside shop Availability inside Deep Freezers
It is the most important job to be performed by our sales force. The order of our product in display should be like this 1) Top cane packing Pepsi, 7-Up, Mirinda and Mountain dew Then 2) Non Returnable bottles Then 3) Single serving returnable bottles Then 4) Single serving returnable bottles (Regular) Then 5) Liter returnable bottles & pet bottles on the floor of visi coolers Every sales person should be caring about the display. 5. Presentation Policy Scheme Product availability Total sales tack 6. Order Taking
38
Shamim & Co. (Pvt) Ltd. Multan Taking Order from shopkeeper
7. Curb Side De-Briefing Evaluation of the shopkeepers performance (in term of sales) is noted and compared to his previous performance. 8. Administrations Cash Empty Sales figure entry Infection of stock Company desired to increase its market share from 80 % or above. This is only possible if we Retain our exclusive point Explore new points Increase sales of points Increase stock at mix points Conversion of coke points Elimination of B- Brands
39
40
Here it is must to explain these two terms: Trade Payment Payment is given by the company direct to the shopkeeper. Company gives a specific amount to the shopkeeper for establishing their business. When the shopkeeper purchase the stock of the company, then discount is not given to the shopkeeper, so the amount of
41
Shamim & Co. (Pvt) Ltd. Multan discount is charged by the company, so in this way company charge the entire amount which is given to the shopkeeper.
Advance Payment Company gives the total amount to the distributors. So distributors give some stock of the company and some amount to the shopkeeper to start their business. So the discount is not given to the shopkeeper and this discount is charged by the company. The conversion of the point is depends on the worth of the points. Because if you convert a point, but this point not sale your brands very well, so the company not get the benefits of conversion.
42
G.M
43
Shamim & Co. (Pvt) Ltd. Multan Sales Operation Manager (SOM)
Workshop Incharge
KPO
KPO
KPO
KPO
Working of TOT Department This department is basically works on two things. Issuance of Deep Freezer & Visi Cooler Workshop or repairing of Deep Freezer & Visi Cooler This department is work on the term Cold is sold. To focus on this term and to meet the demands of shopkeepers, there are many types of Quotas comes. Types of Quotas Seasonal Quota Additional Quota Regular Quota
44
Shamim & Co. (Pvt) Ltd. Multan The total injections in 2011 are 8569, and the injections figures on the 1 st August are 8091. The term injection means to give a deep freezer or visi cooler to the shopkeeper. Injection Process The process of giving a deep freezer or visi cooler to the shopkeeper is called injection process. Following step are involved in injection process Company give a specific Quota to every distributor G.M approved this Quota Then Documents comes like Chiller issuance Summary, Chiller issuance form, injection description and distributor undertaking etc. Then verification of these documents comes, when all documents are complete then they give a delivery order to the store Incharge and the delivery comes, but if documents are not complete then the injection not comes. Types of Deep Freezers and Visi Cooler 3 types of Deep Freezer are 10cft, 12cft, 15cft
3 types of Visi Cooler are 250SAX 400SAX 1000SAX or D.D (double door)
45
46
Shamim & Co. (Pvt) Ltd. Multan 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 report to the MD.
M.D
SIS Manager
Assistant Manager
47
Field Data Research Supervisor KPO Analyst Executives
Through this system, management can come to know outlet. Distributor & area wise Route wise Market Share Name & address of each outlet. T.O.T details Publicity position Discount verification
The system is designed in such a way that reports can be obtained about each and every
48
The system is useful in accessing market & investment position in each area. Market Share Research Assistant Manager (Saeed Bhutta) analysis is a proprietary methodology developed to help share determine whether their sale should go the market & new competitive products in this market. This analysis allows research supervisor to go into the market, identify the components that establish market share, and determine which of those like availability, Chiller, Empty stock in order to improve their share position. Research supervisor analysis the market & visit the shops, they analysis and clicks on there checking share format after the completion of sample size; they come back and submit these checking format to the Computer Section. Here information feed in the computer program and generate the result in the form of Share Summary.
49
Shamim & Co. (Pvt) Ltd. Multan Main Market: These are main road, high volume market, wagon stands, and commercial area. Side Market: These are colonies, mohallah, entrails, links road, side road. Village Market: means village sides, small areas Captive Market: means parks, cinema, canteen, institute, govt. offices, kutchary, courts. Market Sample Size Main Market 45 % of Total Sample Side Market 30 % of Total Sample Village Market 25 % of Total Sample Stock Base Share Availability Chiller Fresh Consumption Floor stock
50
Shamim & Co. (Pvt) Ltd. Multan Coke Exclusivity Mix SIS deals with Tools of Traders (TOT). T.O.T. means list of items available in a shop, which helps to sell our product conveniently on priority basis. It is one of the major investments being made by the company. T.O.T. management completely depends upon the Sales force. The factors to be considered are Data collection about the sale, volume, growth, profitability, size and place of the shop Record of all the T.O.T. given to the shopkeeper. Deep Freezer Visi Cooler Ice Chest Bottle Rack Further plan for the injection of T.O.T. Checking all the equipment time by time any removing their complaints. 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 mind. 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
Discount Verification
51
Shamim & Co. (Pvt) Ltd. Multan The SIS department also verifies the discounts that are give by the distributors. When distributors give the discount to the shopkeepers then they claim this discount from the sales department. The sales department gives this responsibility to the SIS department. The field supervisors visit the market and verify from the shopkeeper that they are benefited from the discounts or not. When SIS verifies then they sent back these claims to the sales department and then sales department return the claims of the distributors.
FINANCE DEPARMENT
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 of all financial and non financial transaction made inside as well as outside the organization. The following departments working under the Finance department: Management Accounts Department Supply Chain Department Banking and Insurance Departments Management Accounts Department The basic function of this department is to get data from MIS department and then generating reports on daily basis like Daily loading comparison Filled stock position Stock placement report FIFO implementation report Daily raw material yield report Daily production losses report Daily shift wise yield report
53
Shamim & Co. (Pvt) Ltd. Multan Supply Chain Department This department proves to be back bone for the company. It performs various functions that are: Generate Inventory Reports Policy Making Contacting with supplier Planning for future activities regarding inventory
Supply chain management department manages the supply of Caps of bottles Bottles (Both plastic and glass bottles) Cartons for pet bottles Plastics shells TOT
The main suppliers for different materials are Material Caps Pet Bottles Glass Bottles Cartons Plastics Shells TOT Crowns Supplier Mehran Karachi Plasto Bag Hattar (Islamabad) Mehran Karachi Toyo Lahore Ghani Glass Karachi Al Aziz Faisalabad Mehran / Blow Plast Karachi Plasco Pack Hattar (Islamabad) Waves Lahore Ltd Varioline Pak Ltd Imran Traders Karachi
54
Shamim & Co. (Pvt) Ltd. Multan The basic function of this department is to deal with different banks for certain financial activities and different matters concerning bank. Another function of this department is to provide and manage the insurance of almost every type. It deals with the insurance activities like Insurance of Machines Insurance of Vehicles Insurance of Employees health Insurance of buildings Insurance of Computers etc.
The MIS department is currently performing its day to day operation as well involved in software development.
55
PRODUCTION DEPARTMENT
The working of this department is to control the production process like to get raw material and process them and convert them into finished goods. Master Production Schedule The process of MPS in Shamim & Company is that sales & Marketing manager forecast sales on annual basis and as well as month basis. That forecast is send to the production manager. The responsibility of production manager to achieve the said demand within specified time with best utilization of resources. Production Process Activities in production process are as Purchasing and washing of bottles Water Treatment Preparation of Simple Syrup Mixing of Co2 Gas in Syrup Filling of Bottles
56
57
Product Product variety Quality Brand name Packaging Sizes Services Warranty
Target Customers
Promotion Advertising Sales promotion Print media Sponsors Mobiles Posters Banners Electronic media
58
Product The product is the physical product or service offered to the consumer. In the case of physical products, it also refers to any services or conversions that are part of the offering. Stock Keeping Units (SKUs) Package 250ml 300ml 500ml 1 liter 1.5 liter 2.25 liter Pepsi * * * * * * Pepsi diet 7 UP * * * * * * * * * * * * 7 UP Free Mirinda M.Dew * * * * * * * * * * * * * * * * * * Sting * Slice (juice)
Pepsi Cola International is a large group covering KFC, Pizza Hut, Burger King, Lays Potato Chips & Aquafina (mineral water).
Price
59
Shamim & Co. (Pvt) Ltd. Multan Pricing decisions should take into account to consider the profit margins and the probable pricing response of competitors pricing includes not only the list price, but also discounts, financing, and other options. The price of a single 250 ml bottle of Pepsi in the market is Rs.15. The price of a single 1 liter bottle of Pepsi in the market is Rs.45. The price of a single 1500ml (1.5 liter) bottle of Pepsi Cola in the market is Rs.75. Package 250ml 300ml 500ml 1 liter 1.5 liter 2.25 liter Sting Trade Price/case Rs. 326 286 375 445 430 516 436 Trade Price/unit Rs. 13.58 23.83 31.25 37.08 71.66 86 18.16 Consumer Price/unit Rs. 15 25 35 40 75 90 20
The price of the bottle is very reasonable as compared to the other drinks with respect to quality. Overall peoples are satisfied with its pricing and its quality.
Place
60
Shamim & Co. (Pvt) Ltd. Multan Place (or placement) decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers, the distribution system performs transactional, logistical, and facilitating functions. Distribution decisions include market coverage, channel member selection, logistics, and levels of service. Shamim & Company (Pvt) Ltd Multan have placed its products at right place, so that its consumers can get them when they require it. Pepsi is available at almost every area which comes under Shamim & Company territory. Promotion Promotion decisions are those related to communication and selling to potential consumers. Promotions decision involves advertising, public relations, media types, etc. Shamim & Company main focus is given on the local advertising with respect to the promotion. Pepsi spend almost a large amount each year on advertisement to tell people about their new schemes and prices. About 60% of the marketing funds are spent on advertising. Primarily TV advertising with radio, magazine, cinema and outdoor support. Other promotional items include: point of sale material, consumer premiums (e.g. clothing, caps), sporting and concerting sponsorships. Shamim & Company Multan use three source of promotion 1. Electronic 2. Print Media 3. personal Selling All are important because each one has its own importance and covers its target area.
SWOT ANALYSIS 61
SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stand for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors.
62
Strengths
Brand name reputation Customer loyalty Strong distribution network Pepsi is currently the market leader with more than 75% of market share All brands support each other Well known company Excellent distributor selection criteria Strong coordination between different departments Sponsoring matches all over the world Nicely display of different shop by company Daily basis supply Strong sales & marketing department Inspection of quality is regularly performed by Country Office to insure consistent quality products. They have their own research department which is responsible for conducting market research A strong key accounts department for conversion Strong position in FMCG products They are financially very strong and require no financial help from country office
63
Shamim & Co. (Pvt) Ltd. Multan They offer attractive margins to the distributors, so distributors are willing to carry PEPSI brands Weaknesses
Poor feed back from employees Insufficient salaries Lack of skilled sale team No Proper Infrastructure Fewer Incentives Not satisfied workforce No involvement of lower level subordinates in decision making. Monopoly of distributors cause harm to company Factory is located in the residential areas with no proper parking arrangements for its vehicles. Supply gapes
64
Opportunities
Opening of new outlets Expanding markets through its strong advertisement Expanding the target market Penetrating market would motivate considerable sales growth increase its market share by conducting Training of sales officer and salesman 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 incentives to the retailers and specially consumers
Innovation or Cost Reduction Edge Because of high customer loyalty and brand image new brands can gain customer preference very soon. There is high market growth opportunity Country office is responsible for national add campaigns which facilitate PEPSI Multan to enjoy the benefits of integrated advertisements. Low cost skilled person availability
65
Threats
Gourmet cola is trying to get market share After getting the skills many employees run away due to salary Rapid changes in demand due to seasonal reason Changes in consumer purchasing power Increase in competition Rising cost of raw material and transportation expense Due to blame of religious group biggest threat to the brand image of the company at national and international level. No proper employees orientation programs 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.
66
PEST ANALYSIS
The PEST analysis examines changes in a marketplace caused by the following factors. Political Pepsi is a non-alcoholic beverage and is therefore regulated by the FDA. So, theyre supposed to maintain a firm standard of the laws set out by the FDA with consistency. Also, many different markets across the world have different set of regulations that are either relaxed or are either stringent. There is competitive pricing by Pepsis competitors and that is one factor that Pepsi has to keep in mind at all times. The political scenario also matters greatly as there can be some civil unrest in certain markets or due to inflation the sales of the product can fall. Most importantly, cross border situations are starkly different therefore Pepsi has to stay in line with all those policies and changes so that they can adapt to all those changes accordingly. Economic As the recent economic downturn has plagued the economy, companies had to restructure their sales and marketing campaigns greatly. Also, with diminishing profits they had to undergo downsizing internally and re-think upon how to penetrate the market. Economic conditions have the highest influence on a business, regardless of what trade it is in. Political Changes Economic Changes Social Changes Technological Changes
67
Shamim & Co. (Pvt) Ltd. Multan Though, in Pepsis favor, the economic downturn that started in 2008 resulted in increased sales of its beverages mainly as people were being laid off from jobs, they were spending time with friends and family or at home.
Social Social factors greatly impact Pepsi, as its a non-alcoholic beverage it has to remain in line with the strict and stark differences of cultures the world over. Also, Pepsi has to communicate its image as a global brand so that the people can associate it with themselves as something that connects the world together. Usually, the social implications are seen in marketing campaigns for example certain countries have religious festivals, so Pepsi has to keep in line with all those festivals in order to understand the psyche of their market and how they can cash upon the opportunity. Technological With the advent of the new age in technology, companies have completely integrated themselves with all the recent changes that have taken place. To mention a recent trend that has greatly picked up and something that almost every business is turning toward is Social Media. The social media explosion has allowed for increasingly interactive engagement with the consumers with real time results so Pepsi has to stay ahead of all the developments that take place with keeping in view how the youth of today utilizes technology for their benefit and how can Pepsi reach them in order to keep on increasing brand recall and brand engagement.
68
Suggestions
On the basis of SWOT analysis of the Shamim & Co., I observed that Shamim & Co. Multan is working in a very well manner. But I think they are lagging in some areas. So they need to improvement in some areas. I have following suggestions to cope with their weakness and threats and take competitive advantage of their strengths and opportunities Taste As the climate of Pakistan particularly Multan is very hot. The people were like sweet soft drinks as that of Coca-Cola. So there is a need to have slightly sweet drinks. Promotional Schemes Most oof schemes introduce by the Pepsi cola are standardized for all the regions. But the organization should recognize the differences in different regions and then launch the schemes to get feedback. Rules & Regulation Implementation of rules should be making sure in the organization at any cost. Some policies need to be redefined. Islamic Activities There is the perception that Pepsi cola is the Jewish company and it facilitates Israel. The people who believes & dont like to drink. So it can be reduce by adding Islamic valued in the promotional campaigns. Motivation The employees should be motivated to be loyal with the organization. It can be in the form of incentives and free sampling. Online Linkage All the plants and distributors should be online to increase efficiency.
69
RECOMMENDATIONS
Supply to rural areas I find Pepsi everywhere in Pakistan but it is difficult for the bottlers to available the supply in small villages, where the local brand are covering the markets. In order to reach these markets the company should get small distributors from those areas by offering incentives to cover these potential markets of Pepsi. Pepsi is having good brand awareness and people are willing to be the distributors, therefore the company should reach the villages. This will help in increasing the market share and give a tough time to competitors. On the job training of sale force: Shamim & Company, of course, has a competitive sale force but lacking skilled and trained salespeople. Therefore the company should launch a comprehensive training program particularly the on the job training which is low cost and effective. A trained and skilled work force would be a competitive priority and when it becomes the culture of the organizations most precious assets is its employees. Permanent Hiring: The hiring in Shamim & Co. Multan is on permanent and on temporary basis. The skilled persons are usually hired on permanent basis and the unskilled workers are on the temporary basis. In off season the temporary workers are laid off, which is creating a negative impact of the organization in the minds of the employees. Therefore the hiring in the company should be on permanent basis. Fair Wage rate: The company should introduce a fair wage rate for the workers. The employees are not satisfied with the wage rate and there is no union in the organization. Therefore any
70
Shamim & Co. (Pvt) Ltd. Multan negotiation about wage rate is not take place. The higher level managers are getting the very good pays and the employees should also be given fair wages.
Control over the Distributor: The company should have a strong control over its distributors in order to manage the supply of the market. Sometimes the distributors are involved in cross distribution and sell the brands of other companies. When there is a strong control, and check over the distributors, cross distribution would be avoided. TOT (Tools of Trade) Should in Good Condition: Tools of trade should be in good conditions. As the name shown, these are the tools for the trade. These include mostly deep freezer and visi cooler. To maintain and to provide new one is the duty of Shamim & Co. TOTS should be checked by the sale officer or salesman periodically. Mostly shopkeeper or store keepers have the complaints of faulty TOTS. The complaints cell should immediately tell the technicians about the retailer to service the TOT. If the proper services are not provided to retailers in this case the store keeper are looking for the TOTS from some other company. Similarly new one has to be provided with in right time to the shopkeeper. Focus on the maximum productivity to ensure the availability of brands Focus on the decentralization that ensures the loyalty of the employees with the company. Giving more incentives & commission to sales forces that affects the sales Higher performance retailer should be obliged and given incentives in form of stock.
71
Comments
1. very effective and cooperative HR department 2. very good working environment in each department 3. Very hard working and responsible staff. 4. Good inter relations among employees. Employees are very friendly to each other. 5. Each department is using available resources properly. 6. Each departments manager has good power to control, coordinate and communicate with its staff. They have well organized their respective department.
72
73
Annexure
www.pepsico.com www.google.com www.scribed.coom www.hrmguide.com http://en.wikipedia.org/wiki/Pepsi http://pestleanalysis.com/examples-of-pestle-analysis/ Marketing Management by Philip Kotler Principles of marketing by Kotler Armstrong Personal observation Madam Sadaf Tahir Mr. Jalal-ud-Akbar Mr. Hassan Nauman Ahmed Mr. Bilal Ahmand Mr. Kamran Ahamd
74