INTERNSHIP REPORT

ON
SHAMIM & CO.( PVT) LTD, MULTAN

Submitted to:

Submitted by:

Naveed Ahmad
Roll No. 93 (A)
MBA (Executive)
Session 2012-2014

DEPARTMENT OF BUSINESS ADMINISTRATION

BAHAUDDIN ZAKARIYA UNIVERSITY, MULTAN

ABSTRACT
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 Amrat 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 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. This
department is very strong. It manages all the sale force.

ii

ACKNOWLEDGEMENT
I am very thankful to almighty ALLAH and the Holy Prophet (P.B.U.H) from the
core of my heart on the completion of this academic task.
I am deeply indented to my supervisor Professor _______________ for his
continued guideline and valuable comments on this study. Through his contribution and
encouragement I was able to accomplish this research work. He preferred me to work on
this topic. I appreciate it.
My appreciation and gratitude also go to the rest of my course lecturers and all
others staff of Business Administration Department of Bahauddin Zakariya University and
library staff, that they made my study successful also thanks to all my friends, whom I
made during my study period in university, thanks for all the support and for being good
friends.
Very Special thanks go to my beloved Mother & Teachers, who pray for me during
my study and Thanks for all being in touch, telling me how much you all care and
supporting at every stage of problem.
Any error in this research work is mine and should not be associated with any of
the Acknowledged individuals or institution.

iii

TABLE OF CONTENTS

ABSTRACT
CHAPTER 1

INTRODUCTION:

01

Brief History:

01

Setup of Pepsi Cola:

02

CHAPTER 2

A LOOK AT SHAMIM & CO.

03

Mission and Vision:

03

Nature of the Organization

03

Products and Brands:

04

Product Range Offered by SCL:

06

CHAPTER 3

PRODUCT & BRAND

07

COMPETITION ACTIVITY MONITORING

08

PUBLICITY MANAGEMENT

09

List of Main Competitors

10

CHAPTER 4

MAJOR COMPETITORS:

Rivalry with Coca-Cola:

CHAPTER 5

DEPARTMENTS AND THEIR FUNCTIONS

11
12
13

A. Administration Department:

13

B. Production Department:

14

C. Management Information System (MIS):

14

D. Sales Information System (SIS)

15

E. Finance & Accounts Department:

16

F. Cash Department:

17

G. Human Resource Management:

17

H. Sales and Marketing Department:

18

I. Operations Department:

20

CHAPTER 6 WHERE I WORKED AND EXPERIENCE GAINED?

23

Plan of Internship Program

23

Training Program

24

SIS Department:

26

MIS Department:

27

Key Accounts Department:

28

iv

Route Riding and Distribution System:

29

Cold Asset Department:

30

Structure of the Marketing Department

36

Functions of the Marketing Department

37

CHAPTER 7 MARKETING STRATEGIES OF SHAMIM & COMPANY 38

POSITIONING STRATEGY

38

Marketing Mix Strategies

39

PRICING STRATEGIES

40

Promotional Strategies

41

Function of sales

43

CHAPTER 8

FINANCIAL ANALYSIS

RATIO ANALYSIS

44
46

LIQUIDITY RATIOS:

46

Current Ratios:

46

ACID- TEST RATIO:

47

DEBT RATIOS:

48

ASSET MANAGEMETNT:

49

PROFITABILITY RATIOS:

49

NET PROFIT MARGIN:

50

CHAPTER 9 VERTICAL ANALYSIS (COMMON SIZE ANALYSIS)

52

Horizontal Analysis

52

Critical Analysis

53

CHAPTER 10

SWOT ANALYSIS

54

STRENGTHS:

54

Weaknesses:

55

Opportunities:

55

Threats:

55

Suggestions

56

CHAPTER 11 CONCLUSION & RECOMMENDATION

57

CHAPTER 1

INTRODUCTION

Pepsi is a carbonated soft drink that is produced and manufactured by PepsiCo. Created
and developed in 1898 and introduced as "Brad's Drink", it was later renamed as PepsiCola on June 16, 1903, then to Pepsi in 196

Brief History:
Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina, United States,
in 1898 by Caleb Bradham, who made it at his home where the drink was sold. It was later
labeled Pepsi Cola, named after the digestive enzyme pepsin and kola nuts used in the
recipe. Bradham sought to create a fountain drink that was delicious and would aid in
digestion and boost energy.
In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered
bankruptcy in large part due to financial losses incurred by speculating on wildly
fluctuating sugar prices as a result of World War I.
On three separate occasions between 1922 and 1933, the Coca-Cola Company was offered
the opportunity to purchase the Pepsi-Cola company, and it declined on each occasion.

Formation of Pepsi Cola Corporation:

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

Reformulation of Syrup:
Megargel was unsuccessful, and soon Pepsi's assets were purchased by Charles Guth, the
President of Loft Inc. Loft was a candy manufacturer with retail stores that contained soda
fountains. He sought to replace Coca-Cola at his stores' fountains after Coke refused to

give him a discount on syrup. Guth then had Loft's chemists reformulate the Pepsi-Cola
syrup formula.

Setup of Pepsi Cola:

PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New
York, United States, with interests in the manufacturing, marketing and distribution of
grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with
the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded
from its namesake product Pepsi to a broader range of food and beverage brands, the
largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker
Oats in 2001which added the Gatorade brand to its portfolio.
As of January 2012, 22 of PepsiCo's product lines generated retail sales of more than $1
billion each, and the companys products were distributed across more than 200 countries,
resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the
second largest food & beverage business in the world. Within North America, PepsiCo is
ranked (by net revenue) as the largest food and beverage business.
Indra Krishnamurthy Nooyi has been the chief executive officer of PepsiCo since 2006,
and the company employed approximately 285,000 people worldwide as of 2010. The
companys beverage distribution and bottling is conducted by PepsiCo as well as by
licensed bottlers in certain regions. PepsiCo is a SIC 2080 (beverage) company.

Pepsi-Cola Trademark:

Pepsi Logo 2014

CHAPTER 2

A LOOK AT SHAMIM & CO.

Mission and Vision:

At PepsiCo, we believe being a responsible corporate citizen is not only the right thing to
do, but the right thing to do for our business.

Our Mission:
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.

Our 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.

Performance with Purpose:

At PepsiCo, we're committed to achieving business and financial success while leaving a
positive imprint on society - delivering what we call Performance with Purpose.
Our approach to superior financial performance is straightforward - drive shareholder
value. By addressing social and environmental issues, we also deliver on our purpose
agenda, which consists of human, environmental, and talent sustainability.

Nature of the Organization

Shamim & Co provides consumer consumable products. It owns FMCG brands like Pepsi, 7up etc.
Shamim & Co is a franchisee of PCI.

Products and Brands:

PepsiCos product mix as of 2012 (based on worldwide net revenue) consists of 63 percent
foods, and 37 percent beverages. On a worldwide basis, the companys current products
lines include several hundred brands that in 2009 were estimated to have generated
approximately $108 billion in cumulative annual retail sales.
The primary identifier of a food and beverage industry main brand is annual sales over $1
billion. As of 2009, 19 PepsiCo brands met that mark:

Current Product Portfolio of Pepsi Co. in Pakistan Market:

Currently PepsiCo is offering following products & brands in Pakistan market:

Pepsi

7Up

Mirinda

Mountain Dew

Pepsi Diet

7Up Diet

Sting

Slice

Aquafina

Lays

Cheetos

Kurkure

Product Range Offered by SCL:

Logo

Product
Pepsi

7Up

Mountain Dew

Mirinda

Pepsi Diet

7Up Diet

Sting (Berry Blast & Gold Rush)

Slice (Mango Juice)

All others brands offered by Pepsi in Pakistan are not offered by Shamim & Co., Pepsi Co.
International is selling those brands like Aquafina, Lipton Tea, Cheetos, Lays, Kurkure,
etc. directly to retailer or through their other distributors for that particular brand. Shamim
& Co. is only responsible for above mentioned products in south Punjab market.

CHAPTER 3

PRODUCT & BRAND

Brand

Packing

Unit

Volume

Pepsi

250 ML

24 bottles per case

250 ML per bottle

1000 ML

12 bottles per case

1000 ML per bottle

1500 ML(PET)

6 bottles per case

1500 ML per bottle

300 ML

12 bottle per case

300 ML Per bottle

500 ML

6 bottle per case

500 ML per bottle

Pepsi Diet

..

..

7 up

250 ML

24 bottles per case

250 ML per bottle

1500 ML(PET)

6 bottles per case

1500 ML per bottle

1000 ML

12 bottle per case

1000 Ml per bottle

300 ML

12 bottle per case

300 ML Per bottle

500 ML

6 bottle per case

500 ML per bottle

7 up free

Mirinda

250 ML

24 bottles per case

250 ML per bottle

1500 ML(PET)

6 bottles per case

1500 ML per bottle

300 ML

12 bottle per case

300 ML Per bottle

500 ML

6 bottle per case

500 ML per bottle

1000 ML

12 bottle per case

1000 ML per bottle

250 ML

24 bottles per case

250 ML per bottle

1500 ML(PET)

6 bottles per case

1500 ML per bottle

Mountain Dew

1000 ML

6 bottles per case

1000 ML per bottle

300 ML

12 bottle per case

300 ML Per bottle

500 ML

6 bottle per case

500 ML per bottle

Sting

250 ML

24 bottle per case

250 ML per bottle

Slice

240 ML

24 bottle per case

240 ML per bottle

STRATEGIES OF BRANDING USED BY THE ORGANIZATION:

On the market side the sales people gather information and on the basis of this information
they further plan and improve their strategies.
Organization have a strong product line so it uses line brand strategy to gain the high
market share.

Checking of the designated area, its sale, volume and growth.

Calculation of daily sales achievements on monthly target basis

Location of the poor performance factors and analyzing their cause

Finding their solution and getting the approval for its execution

Planning for a schedule for the designated area.

Visiting the area according to the plan and reporting it to the higher
management

COMPETITION ACTIVITY MONITORING

On the other hand a constant intention has been given to the competitors activities,
strategies and offers. They have been compared with ours and updated according to the
environment.
Following are the key factors to be noted in respect of the competitor:

Discounting, Promotional schemes, empty management,

Cash credit, Vehicles injection (etc.)

Reporting to the higher authority.

PUBLICITY MANAGEMENT
To promote the image of the company and its products, publicity is a major tool. Publicity
plays an important role in the promoting the image in the consumer's minds.
Publicity involves Banners, posters, signings, gifts and schemes. Publicity budget is spent
by focusing the followings.

Location of the area.

Arranging the sources and requirements and making priority lists

Carefully arranging the publicity execution.

EVERY DEALER SURVEY (EDS)

This activity is based on research and marketing people usually perform this activity. It is
basically checking the each and every shop and gets information that what the shopkeeper
is selling and keeping in the shop regarding beverages. This activity is performed in the
shape of teams. Structure of the teams is as follows:
Team Leader (Marketing & Research Executive MRE)
Team Members (Marketing & Research Offices/Supervisor)
The following activities are present in EDS:

Market Visit (Data Collection about Shops)

Data Analysis

Report Preparation

PUBLICITY VERIFICATION
This activity involves the following tasks to be performed by the marketing department:
Counters
Wall paint
Cabins
Plastic Sign Board
Road Boards
Simple Boards
Pana flex

List of the main Clients

There are at least 40 main store of Pepsi Shamim and co in Multan. Few store names is
mentioned here.

Billay Da Dera

Tasty Food Plus

Dera In hotel

Al Habib store

Akhtar&sons

Mahboob Bakers

Family Mart

E-Mart

Mega Mall

Mercado

Ideal Beakers

Al Hateem

Fresh Life

Shamim and co identifies their target market in Multan division through following ways:

General stores

Cold corners

Captives

Traffic areas and public areas

Retailers and distributors

List of Main Competitors

Following are the competitors of Shamim & Co

Coca cola is one of the major competitors

B Brand (Gourmet, Amrat Cola, Mecca Cola etc...)

10

CHAPTER 4

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.
Without Coke, Pepsi would have a tough time being an original and lively competitor.
The more successful they are, the sharper we have to be. If the Coca-Cola Company didnt
exist, wed pray for someone to invent them, And on the other side of the fence, Im sure
the folks at Coke would say that nothing contributes as much to the present-day success of
the Coca-Cola Company than Pepsi
Pakistan is one of those limited markets where Pepsi is enjoying higher market share as
compared to coke. Pepsi is enjoying almost 65% market share in Pakistan market,
especially in region of Shamim & Co. Although Coke become very active in last couple of
years due to direct interference of Coca Cola International in operations of franchises in
Pakistan, and they are trying hard to snatch market share of Pepsi, but Pepsi is still
dominant in market due to its aggressive marketing strategies and market leadership of last
few decades.

11

Rivalry with Coca-Cola:

The Coca-Cola Company has historically been considered PepsiCos primary competitor
in the beverage market, and in December 2005, PepsiCo surpassed The Coca-Cola
Company in market value for the first time in 112 years since both companies began to
compete.
According to Consumer Reports, in the 1970s, the rivalry continued to heat up the market.
Pepsi conducted blind taste tests in stores, in what was called the "Pepsi Challenge".
These tests suggested that more consumers preferred the taste of Pepsi (which is believed
to have more lemon oil, and less orange oil, and uses vanillin rather than vanilla) to Coke.
The sales of Pepsi started to climb, and Pepsi kicked off the "Challenge" across the nation.
This became known as the "Cola Wars".
Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. However,
exceptions include Oman; India; Saudi Arabia; Pakistan (Pepsi has been a dominant
sponsor of the Pakistan cricket team since the 1990s); the Dominican Republic;
Guatemala the Canadian provinces of Quebec, Newfoundland and Labrador, Nova Scotia,
and Prince Edward Island; and Northern Ontario.

12

CHAPTER 5 DEPARTMENTS AND THEIR FUNCTIONS

Following is the list of departments working at SCL:

A. Administration Department
B. Production Department
C. Management Information System (MIS) Department
D. Research & Sales Information System (SIS) Department
E. Finance & Accounts Department
F. Cash Department
G. Human Resource Department
H. Sales & Marketing Department.

Sales.

Sales Capability.

Marketing.

Key Accounts Management.

I. Operations Department

Cold Assets Department.

Merchandising Equipment Management (MEM) Department.

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

13

B. Production Department:
This department is responsible for the production of the products according to the
requirements of the customers. Production department have to manage the inventory of all
types. Currently they are having seven production plants and all of them are automated.
Mostly they go for importing their production plants from Italy, Germany and
Netherlands. Previously they used to purchase Ammonia for cooling purposes but recently
they have installed an Ammonia plant with in their own premises. Now they purchase
CO2 for the production of Ammonia gas. Regarding the use of management information
systems, they are shifting their production record from manual system to computerized
system. Production department can be divided into sub departments which are:

Quality Control Department:

Quality control department is responsible for checking the quality of the product.
After every 3 hours a quality check report is presented by this department to the
production manager and GM technical. In case of any problem with the quality,
after every half an hour quality is checked.

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

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

C. Management Information System (MIS):

In today's fast moving business environment, organizations are rapidly moving towards
computerization and information systems. In this era of rapid and frequent changes, it
provides current, reliable and accurate information to the management. This information is

14

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 SCL 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 of time.
The software system has two basic parts and these are developed in some programming
language. The most 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 that 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.

D. Sales Information System (SIS)

Sales Information System, which is working under marketing department, is responsible
for making decisions regarding either to provide chiller or not, either to sponsor store
publicity arrangements or not and etc. Decisions are made on the basis of store look,
location and amount of turnover provided by the retailer. This department also provides
information about the distributors and their product requirement.

Research and SIS Department:

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

15

Market Share.

Name & address of each outlet, Cold Assets Detail.

Publicity position.

Discount verification.

The system is designed in such a way that reports can be obtained about outlets:

Distributor & area wise.

Route wise.

District wise.

E. Finance & Accounts Department:

It deals with the financial matters of the company. It collects the revenues and makes
different payments and maintains proper record of the financial performance of the
companys business to show the net result in the form of either profit or loss. Finance
department consist of

Management Accountants

Cost Accountants

Accounting MIS Department

Accounts Department:
The job of the department is to maintain books of accounts. There are following main
activities of accounts.

Issuance of purchase vouchers for raw material, plant and machinery and
general store items

Check payment of payroll to employees including wages, overtime,

bonuses

etc.

16

Handling of monthly tax statements.

Computerized general ledger system is working and shows the result of each
transaction up to balance sheet and income/profit and loss statement.

F. Cash Department:
Cash department does cash handling (collection and payment). The major part

of

cash

collection is from dealers and salesman based on their settlement sheet and daily sales
report. Cash payment is done on the vouchers issued by accounts department. Payments
include employee's pay, bills, allowances, procurement expenditures and day to day
general expenses.

G. Human Resource Management:

The concept of H.R is changed to Human Capital and SCL is completely familiar with this
valuable assets. This department has changed so much in last couple of years. Now this
department is directly linked with M.D. also now PCI is intervening in recruitment
process. Now the jobs are advertised through newspapers and concept of job by reference
is minimized. The department expands recently and now there is a complete process of
hiring, firing, benefits, promotions, allowances, pay, career development programs etc.
This year SCL is taking very aggressive decision and due to increasing needs of market,
SCL is making new designations, expanding departments and hiring personnel very
quickly. In this regard the efficiency of H.R. dept. also increases.
Now hiring is done through a proper formal channel, H.R. process involves following
steps:

Determining need of personnel

Personnel hiring is requested by respected department or by higher management.

Before recruitment process starts, Job Description and Job Specification in coordination with departments are defined.

Then job vacancy is formally advertised in newspapers, etc.

After that a written test for that specific job is conducted.

17

If test is passed, then interview of candidate is being held.

Existing employees can also apply for higher position if job vacancy is available.

SCL prefer internal recruitment and promotion to keep employees motivated. This
will also minimize cost of training

Somehow if existing employee is not capable enough for job offered, then external
recruitment is preferred

After the recruitment process completes, training of employee for that particular
job starts.

H. Sales and Marketing Department:

Sale and marketing is the most important department of any beverage company. To
maximize the sales and profit, this department should be proper planed and managed. SCL
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 throughout the Pakistan.
Following are the major parts (sub departments) of this department:

Sales and Capability Department

Marketing Department

Key Accounts Department

Sales and Capability Department:

The first and the most basic job of the sales and marketing department are to plan, develop
and make targets. Also make strategies to achieve targets and to develop the market. The
following major factors are considered in this respect.

Collect data of each and every distributor/outlet about its sale, volume, growth and
exclusivity.

Finding the gaps in the market where there is a potential.

Finding the points where competitor is strong and how we can break this point.

18

Location of non-traditional shops where potential is available for the beverage.

Different offers must be given to break the competitors point or win the mix point.

Marketing Department:
This is the most important department of SCL. Marketing dept. plays a role of backbone
especially in beverage industry, because this is the only way for survival. It is most
competent department of SCL, as we can observe, Pepsi dressing is shown everywhere in
the town, this is all because of this departments.
Following are terms which can completely define marketing department of SCL:

Budgeting

Taxation

Shop and Road fascia

ATL/BTL activities

Merchandising

Planning and formulating marketing strategies to cover up the growing competition

Event Management

Brand Awareness

Work Process

Key Accounts Department:

This department is recently established in 2010. That was meant to deal with the retailers
who will be proved beneficial for SCL, like in case of sale, location, clientage, etc.
Following are the terms which will define this department:

What is Key/Captive Account

Account creation and retention

19

Create credibility, build strong relation with clients

Analyze account, set objectives, plan strategies, take action and review account

Market research

Ensure product availability

I. Operations Department:
Operations department of any firm is responsible for making whole process smooth and
easy to run. It works as lubricant in company. Following are some segments of operation
department of SCL.

Cold Asset Department:

This department is responsible all the freezers, coolers, chillers, ice boxes of SCL. These
equipment are called cold assets.
Following types of cold assets are available at SCL:
Deep Freezer

12CFT

15CFT

Visi Coolers

Small (Single Door)

Large (Double Door)

Following is the points which clear work of Cold Asset Department:

Cold asset is demand by sales officer on behalf of shopkeeper

Department will determine whether there is need for cold asset or not

Cold asset is given to shopkeeper after making all documentation including stamp
paper showing that cold asset is property of SCL

20

After injection of cold asset it is verified that is cold asset transferred and if so then
to a right person or not

In tracking process it is verified that cold asset is with same person or he sold it or
whether he is making its right use like for Pepsi or for any other purpose

In case of business is transferred to other person cold asset is also get back and
formally hand over to new owner with complete documentation

As cold assets are allotted distributor wise so it is responsibility of distributor in

case of loss or theft

Marketing Equipment Management (MEM):

This department is responsible for maintenance of cold assets. This is newly made
department which has complete solutions for cold assets. In past, there was no proper
maintenance and repair workshop for cold assets, cold assets even with minor faults were
treated as total loss. If any deep freezer or visi cooler had some issue in it then it had to be
sent to the factory for repair where no proper workshop, tools or technicians were
available.
But now with the existence of this dept. SCL saves a lot by repairing old cold assets and
by making mobile workshops to eliminate the transportation charges and problems which
both company and retailer has to face. The existence of MEM department is big
achievement of SCL especially the concept of mobile workshops add lots of ease. Now
there is no issue if the cold asset is in town, village or anywhere else, the mobile workshop
will reach there, solve the problem and make clients happy.
The idea of MEM department is given by PCI and it is recently implemented all over the
world. The biggest achievement in this regard is that SCL won the Best Global MEM
Award from Pepsi factories all over the world. The function is held in Miami U.S.A where
C.O.O Amer Hameed and B.O.M. Kamran Zaffar received the award.

21

Shipping Department:
Shipping is a very critical area for any beverage organization. It serves the role of
coordinator or middleman between production and sales. Ensuring appropriate quantity
and on time availability of empty & liquid stock is utmost important. Any malfunction in
empty receiving, storage, and supply to plants, liquid stock and distribution directly affects
sales. This is a complete chain or cycle and any weak link, bottle neck or disturbances will
slow down the whole operations.

Comments on the Organizational structure

According to my point of view, the organizational structure of SCL is the best
organizational structure in south Punjab.

Span of Control
The number of employees a manager efficiently and effectively manages. During my
internship program, I observed that sales department has a span of 4. Like sales force of
multan base indicates. There is 4 SOS under each ASM and 4 ASM,S under RSM.

Centralization/Decentralization
The degree to which decision making is concentrated at upper level of the organization
during my internship I observed that Shamim & co has a centralized and very strong
culture. All the departments are integrated with each other and under a leading body.

22

CHAPTER 6 WHERE I WORKED AND EXPERIENCE

GAINED?
Plan of Internship Program
Introduction to Shamim & Co. (Pvt) Ltd Multan
Shamim & company (Pvt.) Ltd. is a franchise of Pepsi Cola International. The company
established in 1964. Mr. Allah Nawaz Khan Tareen was the founder of the company and
also chairman. It is a great pleasure of Shamim & Company that it was Second
Beverage Company of Pakistan that time, and this time one of famous Beverage Company
of South Asia.
There are 9 franchise of Pepsi cola international in Pakistan, Shamim & co. is one of them
that is situated at District jail road Multan. Other franchise of Pepsi cola are situated in
Lahore, Faisalabad, Karachi, Islamabad, Rawalpindi, Gujranwala, Sakhar, Peshawar and
Baluchistan that are described above. The company started the production for the first time
in 1967 that time brand was 7-up 270 ml that is why it is also known as 7-up factory. It is
deal in CSD (carbonated Soft Drinks).Pepsi cola international franchise Shamim &
company covering 11 districts.
Shamim & Co. Multan has very committed staff and this is the reason that it captures more
than 65% share of market share.
Depending on the potential of the town we have one and more than one distribution in
each town. At this time nineteen distributions are working in Multan. Sales supervisor,
sales officer is responsible for all the activities of the entire distributors. He looks after the
stock availability possibility and all the routes covered by the salesman of that distribution.
Salesman training is also a main responsibility of sales supervisor.
Company has invested too much money in shape of coolers, visi coolers, counters and
cabin. These are offered to those shops which are producing good sales to promote sales.
All the services matters of coolers and maintenance and look after of these assets are also
the responsibility of our sales force.

23

Every salesman of distribution network is covering a specified area in which all the points
and shops are listed in a Route Card salesman is bound to fill that.

Training Program
During my six week internship program, I was moved through following departments:
1. Marketing department
2. SIS and MIS Department
3. Key accounts Department
4. Sales and operations Department
5. Cold asset Department
6. HRM Department
7. Accounts & Finance Department

Marketing department:
What actually happens here?
Budgeting
Taxation
Shop and road fascia
ATL/BTL activities
Merchandizing
Planning and formulating strategies to cover growing competition
Event management
Brand awareness
Work process
Annual budget approved by managing director has to be trickled down for
implementation round the area/territory, comprising of 170 distributers. This budget is
then utilized entirely for two activities:
ATL (above the line); E-media, print media and digital media
BTL (below the line); banners, bill boards and road plus shop fascia.

24

The installation of these boards always hinge upon the kind of shop it is on the basis of its
monthly sales and return.
For taxation whole city Multan is divided into two authorities: TMA & Cantonment
board. By this TMA conduct a bid and who so ever bidden higher would take the board
into his custody. While Cantonment board charge and collect tax against advertisement in
its Cantt area.
Next is the work of merchandizing team that has to make it certain that every board is
justly installed and every concerned shop has been painted when approved with its
visibility ostentatiously clear to the customers.
Events, like in BZU are seen to have managed and supported by the marketing department
after approval from GM Sales. In Multan public school, they also sponsored a show
performed by Fawad Khan with their banners all
over the place.
Similarly

brand

awareness

programs

are

orchestrated by the PCI Lahore, which is

designed primarily for honing the current value of
the regular brands in the minds of customers. As,
dew campaign is being launched for the same
purpose. Similarly, teasers in Pepsi ad also raised suspiciousness and attraction towards
the brand.
Work process includes the identification of the work to perform for their shops. This
would prompt them to contact area vendors to oversee the desired function. Vendors then
handover their bills with the photos annexed therein to the Marketing department which
has to be scrutinized by the SIS (sales information system). After their green signal the
orders are approved by GM Sales and then sent to finance for final formulation and
delivery.

25

SIS Department:
Plan discussed and worked upon is:
Market share
Market and chiller share calculation
Sustaining market and chiller share
Chillers integrity
Shop census, routes and CSD market
Discounts and schemes verification
Sales capability

SIS department is entirely responsible to conduct research for the products being made
available in market. This has to make sure by the SIS tracking team, whether the claims
for discounts and other schemes are being fulfilled or not. Relation between marketing and
SIS department is like two peas in a pond. This is so, because the work being conducted
by the vendors approved by marketing department has to be verified by the SIS just like
they have to verify discounts and schemes being bestowed upon the shops against their
sales. In this case direct visits on some or sample shops has to be made for verification.
Calculating market and chiller share include the formulation of a document that
includes proportionate amount of Pepsi in comparison to coca cola available in their
chillers, coolers or visi coolers. A team is designed to conduct search for the amount of
Pepsi products available in the chillers which gave the estimation of the chillers
integrity. Like liter bottles occupy 10% of the chiller and the regular bottles comprising of
the dew, Miranda and Pepsi manage to capture the rest, and its decided by the member on
the spot.
Improving and sustaining these shares includes a special care for those shops who can
sell as many products as they can. Like sale of chilled CSD bottles. Similarly to give
packages on different products would mean the requirement of its availability in certain
amount against any other product of competitor. Like to avail package at PET, shops must
have 70% of it available thereto.

26

To outlay the activities of sales capability, I will start with the skills and the resources the
company and its distributors have. SIS has to make sure that whether the shop getting
discount is improving its sales by tracking it periodically. Next, they have to gauge as to
how much their Chillers are adding to this sales, plus SIS has to oversee the vehicle
capability of the distributors whether they are fulfilling the market requirements in high
and low demand situations.

MIS Department:
Plan:

Sales targets
Sales reports
Sales record and analysis
Distributor accounts reconciliation
Quotas allocation and procedure
Distributor approved credits
Glass management at MIS
Rating and incentive structure
Market discounts verification
Sales operations system

Targets for next year sales are forecasted on the basis of current market position and
sales. Like in this year, business operations manager approved sales 10% more in the
coming year. Targets for the seasonal festivals like EID or Ramadan highly hinge upon the
previous years performance. Primary stocks in the possession of SCL, has to be provided
to the distributor against commitment according to the market demand but the secondary
stock which is distributors possession is paid at the spot by vendor. For this sales
forecasting periodical reports are formulated and presented to the respective manager who
after analysis would set the sales targets for each area. These reports are formulated on the
basis of time series analysis and then shared with PCI (Pepsi cola international), who do
benchmark analysis as to which franchise has more and skyrocketing sales performance.
Depending upon the capability of the distributor, now MIS department would negotiate
and reconcile with the distributor on the following cases like discounts to be provided to

27

the shops and incentives for the distributors. After this step now the quotas are then
allocated among the vendors depending upon their rankings already formulated by SCL.
Like A, B, C and D, would be allocated quotas accordingly. These ratings then win them
packages like ummrah package against their performance.
Glass is managed scrupulously by MIS, by constantly monitoring the amount to be
provided to the distributors. This monitored amount has to be pertaining to the amount
available with the company and its distributors. So, a two prong strategy is adopted where
when glass is given on credit for special or normal operations, check has to be made over
the amount available and given. Distributors get glass on credit but the liquid is always
given on payment. But in case of special operations like in case of any village mela, they
are provided on credit to endorse the requirement.

Key Accounts Department:

Plan I followed:
Key/captive account
Account creation and retention
Creating credibility
Analyzing account, setting objectives, taking action and reviewing account
Market research
Ensure product availability

Key accounts are those who have specific importance due to

its location, volume and worth in comparison to the other
points. Whereas captive are those where direct customers
frequently visit and result in higher sales. Frequent visits at
these accounts by the manager to cater to the emerging needs
in time often results in retention of these accounts. Plus a
strong dynamic and personal relationship is also ideal here to make things easy and less
strange in competitive market. This also provides advantage of exclusivity to the Pepsi
products which is the major goal of key accounts department. This is then aided by many
activities like event management and sponsorship of concerts by key account department.
To improve and create endless credibility, key account manager has to be vigilant

28

enough to listen and act to the executives working in his subordination at any point of
time. Market research orchestrated by the executives and ensuring product availability is
playing another versatile role in the success of this department established in 2010.

Route Riding and Distribution System:

Worked out plan:
Distributor route management
Target management
Distributor working style
Salesman capability and shopkeeper behavior and
coolers integrity
Execution of company standards regarding sales
and merchandizing
Coolers tracking, productivity and utilization

Routes are decided and allocated per distributors on the basis of number of shops
available in any locality. Then these routes are synchronized according to each sub locality
by the consent of both the company and the distribution management. As stated earlier,
target base for the sales team and its management is set on the average of its current and
previous years performance basis according to the pools selected for the first six months
and the last.
A distributor capability is judged by his capacity and audacity to perform and fulfill
emerging needs. It should be able to show a viable and demonstrative experience in
beverages and that the incentives and credit provision is done on the basis of sales whether
primary or secondary.
Moreover, while working in Pepsi I witness another new project that is the transition
from spot selling to the order booking style. This is usually considered to be the system
most beneficial for company as the orders with discounts and schemes are decided earlier
than dispatching the order by distributors themselves.
Sales are first build upon the relationship of sales man from distributors where 27% of the
population tends to be loyal while 72% of them require black water though. So the

29

behavior of shopkeeper would get altered by salesmans attitude and way of service. They
all have to follow the company standards formulated by the capability department after
approval from the GM sales. Unlike chiller integrity, cooler integrity is to be checked by
the distributors in the same way to ensure its capacity and contribution to the products
sale.
Secondary sales now entail the activity of order booker who gets orders from the
shopkeepers the day before delivery. So, the allocated discounts are added in the
formulation and calculation of the bills formed thereafter.

Cold Asset Department:

Plan I followed:
Quota
Injection
Tracking(handover and back check)

Sales officers are responsible to report for any need that erupts in the market for chillers or
any other TOT like coolers to the upper management. Then before allocating TOT, GM
has to figure out a quota for the local market according to their sales capacity as
mentioned before.
TOT (tools of trade) includes coolers, vii coolers and freezers (12 CFT and 15 CFT).
These are then dispatched from the MEM department after final approval and a signed
agreement between the company and shopkeeper. Distributors are to be held entirely
responsible for the loss or theft of TOT.
For injection, agreement on the stamp paper (100 rupee) is verified and then pertaining to
the quota allocated to that locality TOTs are dispatched to their shopkeepers. Similarly,
tracking team is assigned to hunt their investment whether it has been dispatched to their
real owner and verified again with the help of back check program. Whereas, when
shopkeeper leave or quit working that TOT has to be handed over to the next desired and
capable one.

30

Team Tracking Department:

The department of team tracking is working efficiently in the company. This department
deals mainly with a significant asset of the organization namely human resource. Miss
Sadaf is manager of this department and Mr. Rizwan is her assistant.
The basic functions of this department are performed after a forecasted need or
specific requirement for vacant seat at managerial or officers level.
The team tracking department performs following tasks

Job Analysis:
Preparation and collection of applicants info.
Recruiting
Selection
Placing
Specifying jobs and roles
Training
Evaluation
Feed Back
Career development
Promotion within company
Out sourcing
Preventing violence in the workplace
Ensuring safety at the workplace
Transfer and promotions
First of all information about the jobs are collected and then deciding what level of
employee is needed to perform the job. Either is a manager level, executive, officer or
junior officer level.
For Managers and AMs

Level 1

For Executives

Level 2

For Officers

Level 3

For Junior Officers

Level 4

31

Preparation and collection of applicants info:

Resumes are collected from applicants.

Recruitment Process:
After collection of CVs a test is conducted. For all four levels there are different types
of tests available. This test can be online test (through software) and can be written by
the Madam. If the applicant passes the test then a realistic job preview is done. In
which the applicant is shown the job environment and responsibilities.
After the RJP further interviews are collected.
The manager of team tracking takes 1st interview. It is an unstructured type of
interview. The manager of respected department takes 2nd interview. This is a
structured interview.
After this GM and a panel of mangers take a 3rd interview. This interview is optional.
Sometime it is taken and sometime not. It depends upon the level of job.

Recruitment procedure
Major sources of potential job candidates are
Internal Search Advertisement
Employees Referrals
School placement
Interviews for worker level job where qualification and skill requirement is low, this
formal procedure is not adopted rather candidates abilities are fledged by department
head and sent to factory manager for approval. Orientation is the introduction of new
into his or her job & the organization. This is for few selected persons in NBC training
is generally on the job employees in all departments are bearing by the time or with the
help of seniors.
The organization provides compensation benefits to its employees such as:
Accommodation
Vehicle provision at officers and managerial level
Increment & bonus.
Medical facility

32

 Time office maintains personal file of each employee, daily attendance, leaves,
incentives & commission etc., job descriptions and organizational charts are available
for all employees. Employees are rotated from one department/post to other on request
or when required. Payroll system.

Process of Recruitment and Selection Chart

CV acceptance

Qualification

Written Test

If Qualified

RJP

Demand generation
By respective dept

3rd Interview

Panel interview

With GM

Final selection

Experience

2nd interview

By Manager of

1st Interview

by team tracking Manager

Respected Dept

Joining

33

Final Selection:
After clearing all interviews final selection is made.

Placement:
Then employee is placed on his job.

Career Path

General Manager

Manager

Assistant manager

Executive

Sales officers

Junior officer

34

Profile of Employees:
Total employees in the Shamim & Co. are estimated to be 2000. Out of which
500 are permanent and the remaining are the temporary workers. In the summer
season the number of the temporary workers increases, who are lay off at the end
of the season. These temporary workers are usually unskilled and work as
helpers.

Decision Making Style at SCL:

Decision making at SCL is influenced by the following factors which are:

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

Formal Communication Channels:

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

Bureaucratic Management Style:

Decision making is highly centralized & ideas from lower levels are not welcomed. So
idea generation is not facilitated & top executives are responsible for developing strategies
for their own SBUs. This sort of arrangements restricts innovative strategies & lower level
participation in decision-making. Also only head of departments like top and middle level
managers are seemed to be motivated; there is no charm for lower level and sub-ordinates.

35

Structure of the Marketing Department

Marketing Department Hierarchy
Marketing Operations
The Department performs the following operations:
Marketing Department

(Marketing strategy)

(BTL budget planning

And execution)

BTL Execution and planning

Central workshop (base)

BTL execution process

Existing vendor setup

Budget planning

Marketing strategy

Established the strategy in which type of market enter and increase the market
share.

Use best way of advertising and awareness to customer about brands or products.

Make strategy to increase sales of the company

36

Functions of the Marketing Department

SEGMENTATION STRATEGY
It means that you divide the target market in to different groups. Market consists of buyers
and buyers differ in one or more ways. They may differ in wants, resources, locations and
buying practices. Through market segmentation companies divide large, heterogeneous
markets into smaller segments that can be reached more efficiently and effectively with
products and services that match their unique needs.
Segmentation is done on basis of the previously mentioned external factors and the
following:

Behavioral Base
It is how people perceive a specific product, in short psychological analysis of a product.
Pepsi all over the world is recognized as a quality drink and therefore people drink it
without any hesitation whenever they are thirsty or otherwise. So marketers of Pepsi have
made it a drink for all people and for diabetic people they introduced diet Pepsi.

Cognitive Base
It pushes and pulls the consumer. If the outlook of Pepsi bottle is desirable and it attracts
the consumer, he will buy it even if he isnt thirsty.

TARGET MARKET
The market which is focused by the producer is called the target market. Targeting is to
focus on the target market to attract the customers.

37

CHAPTER 7 MARKETING STRATEGIES OF SHAMIM &

COMPANY
There are different marketing strategies which are applied in targeting. Some of these
strategies which Pepsi follows are discussed below:

Mass marketing
Big firms or companies say that everyone is their buyer whether they belong to rural or
urban area, big or small country, rich or poor, adults and small children etc. Pepsi is
mostly used by the young generation but it claims that it is moving towards mass
marketing.

POSITIONING STRATEGY
It means that you try to give image to your product in the mind of the customers. To give a
true and positive picture of the product is the best positioning. The company should
promote its good points or comparative advantage which it has over its competitors

DIFFERENTIATION STRATEGY
In order to serve your target market you introduce different things to your product so that
your product can be differentiated from other products.

Basis of Differentiation
There are many bases on which a product can be differentiated but Pepsi has differentiated
its product on the following base:

Product Differentiation
Pepsi differentiate its product from its competitors on the basis of brand, quality and taste.

38

Image Differentiation
Logo is used for image differentiation. Logo is what establishes a brand name in the
consumer mind. It is the brands identification, signature and image. Pepsi has kept on
changing its logo from time to time.

Marketing Mix Strategies

PRODUCT
.Pepsi has a product line comprised up of carbohydrate drinks, Lays and many other
products in Pakistan. Pepsis product line satisfies consumer needs because Pepsi produces
different types of soft drinks for different consumers.
The most popular product of Pepsi is Pepsi Cola. Due to its good taste Pepsi is a wellknown product. Thus Pepsi Cola satisfies the consumers needs efficiently by launching a
desired product.

New product development by Pepsi

Pepsi is doing new product development on frequent interval of times. The purpose of
which is to refresh the brand. By new products and innovative ideas consumers can easily
be attracted.
In following ways Pepsi is doing new product development.

New product category

Pepsi which is mainly a company of soft drinks After establishing a brand in Pakistan
Pepsi came into several new product category. Lays, kurkuray and aqua fina and recent
introduced brand sting which is highly used in fast food restaurants.

Product line extension

Dew and sting are the most recent addition in the product line of soft drinks which are
very popular especially among the youngsters.

39

However Pepsi launch its several variants with a minor difference on frequent interval of
time. There have been many Pepsi variants produced over the years since 1903, including
Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold,
Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and Brazil), Pepsi Next
(available in Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico, Pepsi One, Pepsi
Ice Cucumber and Pepsi White in Japan.

Incremental Improvement
Pepsi jumbo is an example of incremental improvement made by Pepsi. It was 2.25 litter
bottle introduced few years ago in Pakistan. The purpose of this packing is to offer the
Pepsi to a family for one or two time meals. Price of this pack is also kept low so that is
can be affordable easily by the consumers.

PRICING STRATEGIES
Competition based pricing approach
Pepsi has intense competition with the coca cola the largest soft drink company world
wide. So its pricin exceed too much nor decrease to much as compared to the price of coca
cola. If price of the Pepsi exceed too much from the coke people will shift to the coca cola
and on the other hand if the price of Pepsi decreases people might get the impression that
quality of the Pepsi is also low.

Promotional Pricing Policy

Pepsi has offered promotional prices very frequently. Especially on some occasion Pepsi
reduces its rates. like in Ramazan Pepsi reduces its rate unto 5 Rs on 1.5 litter bottle.

Market Penetration Pricing Policy

Prices in beverage industry are determined by the consumer. In an economy like that of
Pakistan, consumers tend to switch towards a low priced product. Pepsi objective is to
target every consumer of the country so Pepsi has to set its prices at such a level which no
one can offer to its consumers. That is why Pepsi Cola charges the same prices as are

40

being charged by its competitors. Otherwise, consumers may go for Coca Cola in case of
availability of Pepsi at relatively high price.

Promotional Strategies
In Pakistan Pepsi is the most liked soft drink especially by young generation so the Pepsi
cola company has devised such marketing strategy which attracted them. For this reason
they started monitoring the habits of the generation. What they saw was that the students
were crazy about cricket and usually liked to idealize them so in order to increase their
sales the Pepsi cola company paid high amounts of money to the cricketers to act as their
spokes men.
Some of the most famous cricketers in the modern era have acted as spoke persons also
film stars have been acting as spoke persons.
The Pepsi cola company has after doing research also has introduced different size of
bottles offered at lower prices so that every one can afford them. Also Pepsi Company has
introduced other soft drinks including mountain dew, seven up and marinda. Pepsi
company has introduced other flavors such as Pepsi twist, Pepsi max diet Pepsi.
Pepsi Cola Company has also become official sponsors of Pakistan cricket and has
sponsored a number of series.
Also Pepsi has donated a lot to the earth quake victims and has launched a number of prize
schemes to attract new customers
As a result of this marketing strategy Pepsi has become the largest seller of soft drinks in
Pakistan and is slowly forming a monopoly in drinks market. Although many soft drinks
like Pepsi have been introduced such as Amrit Cola, Quibla Cola offered at lower prices
but none of these drinks have been able replace it.

41

Following are the strategies:

Comparative Parity Method:
As we have already discussed Pepsi pricing strategy is determined y consideration the
strategy of coca cola so in this case also Pepsi ads are telecasted with the competition in
coca cola which is its direct competitor.

Objective and task methods

When Pepsi introduced any new variant they have advertised it heavily. Objective of
which is to make a space for new product in the market. We have seen the heavy
advertisement of Pepsi max in previous days.

Seasonal advertisement:
Frequency of the Pepsi ads varies from time to time. When the season is on Pepsi do
heavy advertisement especially in ramzan days or eid occasions but this advertisement not
remain consist. We can hardly see the ads of Pepsi now as there is winter season.

Structure of sales department

Number of employees
There are almost 220 employees In the Sales department.

Sales operations
The sale departments perform the sale operation. First they market their products and after
that they sell their products to customers each of these department are individually or
separately involved in the marketing and sell their product. The sales department head is
also personally meet with business class customers and tells all detail to customers about
the product and they also contact with customer through telephone calls, give broachers to
customers for selling of the product.
The selling function is an important element of the overall marketing process. In many
instances, some component of the Marketing Department is responsible for developing

42

leads and then turns them over to the Sales Department. Make sure that planning and
execution of plans is always coordinated, and that all programs are integrated across both
marketing and sales efforts.

Function of sales
The function of sale department is to sell the product and service of the organization and
the focus of a sales department is to coordinate sales activities to meet the customer
demand with appropriate supply. The next is to increase the sales volume considering a
particular period of time the sale department is link with marketing department to help
marketing department in meeting the sales volume force castled by then. To give
motivation by appropriate means to the sales persons and to give appropriate training to
them in carrying out the sales activities successfully the sale department analyze the
demands of markets and study the consumer's psychology, study market fluctuations,
prepare sale budgets, explore new markets and so on.
Sales are the activities involved in providing products or services in return for money or
other compensation. The marketing department generates potential customers and, it can
be beneficial for sales. The marketing department's goal is to bring people to the sales
team using promotional techniques such as advertising, sales promotion, publicity, and
public relations. The function of sale department is not to see the product and service to
customer but also satisfy other factor and provide them special attention because the sale
is performed by customer and it will be repeated if the customer is satisfy.

Sales methodology
Sale department is back bone of any organization No organization exists without the sale
department. After the procedure of the marketing these departments give the product to
customers finally. The main and the most important function of the sale department are to
coordinate the sale activities.
The operational manager and the head of sale departments do the personal selling to sell
their products to large business user. The employees in sales department personally meet
with customers and tell all detail about the features of the product.

43

CHAPTER 8

FINANCIAL ANALYSIS
Pepsi Shamim & Co. (Pvt) Ltd.
Balance Sheet
For the period ending 30 June, 2013
Total Assets

Cash & Cash Equivalents

Accounts & Notes Receivable, Net
Inventories

Rs.
41,798,182
26,657,334
606,134,761

Total Current Assets

Property, Plant & Equipment, Net
Goodwill

674,590,277
62,545,440
100,000

Vehicles etc

22,340,036

other Assets

391,189

Total Assets

759,966,942
Total Liabilities & Equities

Short-term Obligations
Accounts Payable & Other Current Liabilities
Income Taxes and markup Payable
Total Current Liabilities
Long-term Debt Obligations
Total Liabilities
Total equity
Total Liabilities & Equity

419,017,087
70,151,892
7,071,397
496,240,376
1,553,726
497,794,102
262,172,840
759,966,942

44

Pepsi Shamim & Co. (Pvt) Ltd.

Income Statement
For the period ending 30 June, 2013
Rs.
Sales
Less: Cost of sales
Gross Profit
Less: Admin exp.
Less: Selling and Marketing expenses
Less: General and Other expenses
EBIT
Add: Other income
NET PROFIT BEFORE TAXATION
Less: Provision for taxation
NET PROFIT AFTER TAXATION

1,529,726,171
(902,538,441)
627,187,730
(150,412,069)
(330,906,552)
(120,329,655)
25,539,453
4,884,866
30,424,319
2,138,730
28,285,589

45

RATIO ANALYSIS
LIQUIDITY 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

CA

343179640 390387892 468465470 562158564

674590277

CL

280253635 326286103 375229018 431513371

496240376

Working Capital 62926005

2011

64101789

93236452

2012

130645193

2013

178349901

Current Ratios:
This ratio measures the short-term debt-paying ability of the company
Current Ratio =

Years

2009

CA
CL

C. A
C. L
2010

2011

2012

2013

343179640 390387892 468465470

562158564

674590277

280253635 326286103 375229018

431513371

496240376

1.2

1.30

1.36

Current
Ratio

1.2

1.25

46

ACID- TEST RATIO:

This ratio is like the current ratio but excludes current assets such as inventories and
prepaid expenses that may be difficult to quickly convert into cash.

Quick Ratio=Quick Assets / Current Liabilities

Years

2009

2010

2011

2012

2013

CA

42218250

49449960

57856450

67692050

79876619

CL

280253635

326286103 375229018 431513371

Q Ratio

0.15064301 0.151554

0.1541897

0.15687127

496240376
0.16096356

DEBT MANAGEMENT:
This is the most common measure of the ability of a firms operations to provide
protection to the long-term creditor.
TIME INTEREST EARNED:

TIE = EBIT /INTEREST EXPENSE

YEAR

2009

2010

2011

2012

2013

EBIT

13130022

15544100

18432038

21643604

25539453

Exp

1644312

1061878

1536003

1812483

2138730

TIE

15

12

11

12

Interest

47

DEBT RATIOS:
This ratio measures what portion of a companys assets is contributed by creditors.
DEBT RATIO: TD / TA
YEAR

2009

2010

2011

2012

2013

TD

281275235 327307703 376403858 432864437 497794102

TA

385165619 439795604 527754820 633305785 759966942

Debt
Ratio

73%

74%

71%

68%

65%

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 companys
policy on the mix of capital funds.
D/E = TD / TE

YEAR

2009

2010

28127523

32730770

10389038

11248790

CE

D/E

2.71

TD

2011

2012

2013

376403858

432864437

497794102

151350962

200441348

262172840

2.9

2.5

2.2

1.9

48

ASSET MANAGEMETNT:
These ratios are important in measuring the efficiency of a company
1. Days sales in receivable:
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

Gross Re ceivables
Net Sales / 365

YEAR

2009

2010

2011

2012

2013

A/R

16881442

15527617

20156759

23180273

26657334

Sales

849952926 885258201

1062309841 1274771809

1529726171

DSO

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 EQUITY (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

49

ROE = N.I / C.
YEAR

2009

2010

2011

2012

2013

NI

11485710

14482222

18102777

22628471

28285589

CE

103890384

112487901

151350962

200441348

262172840

ROE

11%

13%

12%

11%

11%

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= N.I / TA
YEAR

2009

2010

2011

2012

2013

NI

11485710

14482222

18102777

22628471

28285589

TA

385165619 439795604

527754820

633305785

759966942

ROA

3%

3.40%

3.60%

4%

3.30%

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.

50

NPM

= NI /SALE

YEAR

2009

2010

2011

2012

2013

NI

11485710

14482222

18102777

22628471

28285589

Sales

849952926 885258201 1062309841

1274771809 1529726171

NPM

1.35%

1.80%

1.64%

1.70%

1.85%

51

CHAPTER 9 VERTICAL ANALYSIS (COMMON SIZE

ANALYSIS)

Common-size
Percent

Analysis Amount
Base Amount

100
%

Financial Statement Base Amount

Balance Sheet

Total Assets

Income Statement

Revenues

From vertical of Shamim&Co (Pvt) Ltd Multan I have concluded that the
performance of Organization is good from previous five years. In the vertical analysis I
have calculated the values of all items of Balance Sheet and income Statement in
percentage with respect to the sales and total assets. From these calculations I come to
know that the Current Assets and fixed asset are increased in every next year.
Shamim&Co (Pvt) Ltd Multan Operating Income is increasing and Net Income increasing
in the every next month as total percentage of sales. Shamim&Co (Pvt) Ltd Multan is able
to receive its receivable on time due to which it receiving cash time by time and able to
pay back to its creditors on time. It means its average collection period as well as the
average payment period of the firm are good.
On the basis of my conclusion I can say that the overall performance of Shamim&Co
(Pvt) Ltd Multan is good from previous five years.

Horizontal Analysis
From horizontal analysis of the Shamim&Co (Pvt) Ltd Multan I have concluded that
over all performance of the firm from previous five years is very good. From the last five
years its profit is increasing. Organization focusing on expansion in the last 3years as a
result of expansion its Fixed Assets 2010 increased by 35% and in 2011 increased by 60%.

52

Similarly current asset were also increased 20-25% in 2009, 2010 and 2011. But relative
to this its current liabilities increased less. So, it had enough working capital to which was
enough for solvency of organization. In 2007, 2008, 2009 Common Equity increased
while purchasing Fixed Assets.
Shamim&Co (Pvt) Ltd Multan its assets efficiently as result of this generating more profit.
So, we can say the performance of fixed asset is up to standard. Profit of Shamim&Co
(Pvt) Ltd Multan is also increasing 2007,2008,2009,2010 and 2011.

Critical Analysis
During the internship I fell that there is a bridge between educational and professional life
The thinks that we read and observe now has implemented practically it is necessary for us
to show our skills the task and assignment which is assigned us during educational life is
very helpful in professional life and show us the new way of innovation and success
I completed my internship program in shamim & co. during this period a worked in
marketing key Accounts and human resource department. Theoretically marketing tells us
to build customer value and in return value from the customer. During working in
marketing dept I analyze that this department support theoretical concepts
This department focuses on the positioning the customer by building strong relationship to
retain customers. As compare to main competitor coca cola the sponsorship of the shamin
& co. sponsor the local events.
My fifth was in key accounts department. This dept just focus on the retention of the main
customer and highly keep check on the competitors and pay full devotion to convert into
Pepsi exclusive.
My last week was in HRM dept there is a strong culture. Their selection process and the
compensation process are perfectly working
But they are not appraising the employees properly and there is no proper infrastructure
And the dead bad thing is ethical Issue in co.

53

CHAPTER 10

SWOT ANALYSIS

STRENGTHS:

High brand image and customer loyalty

Pepsi is currently the market leader with more than 65% of market share

Inspection of quality is regularly performed by Country Office to insure consistent

quality products.

Effective and efficient management of distribution channel allows Pepsi Multan to

cover a huge geographical area.

On site training of 4 to 6 months enables plant engineers to manage plant

operations effectively so that machine downtime is reduced to minimal.

Very huge production capacity 500,000 per day.

Pepsi provides its own transport to distributors to cover those geographical areas
where competitors are not distributing their products because of difficulties to
reach there.

Suppliers are bound to supply material on the terms and conditions specified by
PEPSI

Strong coordination between different departments

They have their own R&D department which is responsible for conducting market
research

They are proactive in their competitive strategies.

They are having more than one supplier for a particular material to avoid stock
outs in case of high demand or suppliers inability to ship material.

Daily revision of production schedule based on daily demand.

They are financially very strong and require no financial help from country office

Their plants are capable of producing round the clock.

They offer attractive margins to the distributors, so distributors are willing to carry
PEPSI brands

They have a recovery department which is responsible for the collection of bad
debts and identifying sales of low graded PEPSI.

54

Weaknesses:

Poor feedback from employees

Insufficient salaries

Monopoly of distributors cause harm to company

Loading and unloading of trucks can take place only in the night because of the
law permitting trucks to enter into urban areas only in the night.

Factory is located in the residential areas with no proper parking arrangements for
its vehicles.

No involvement of lower level subordinates in decision making.

Opportunities:

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 ad campaigns which facilitate PEPSI

Multan to enjoy the benefits of integrated advertisements.

New brand introduction

Low cost skilled person availability

Strong consumer commitment with Pepsi.

Threats:

Coca- Cola is on its way to get market share

Amrat and Makka cola also trying to get market share

Changes in consumer purchasing power

Increase in competition

Inflation

Due to blame of religious group

No proper employees orientation programs

55

Suggestions
On the basis of SWOT analysis I observed that shamim & Co. Multan is working in a very
well manner. But I think they are lacking in some areas. So they need to improvement in
some aeas. I have following suggestions to cope with their weakness and threats and take
competitive advantage of theor 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 of the schemes introduced 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 make 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 linked online to increase efficiency.

56

CHAPTER 11 CONCLUSION & RECOMMENDATION

Extremely poor situation condition at godown # 2.

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

It is a very difficult task to manage vehicles parking at unloading pad, providing

way to forklifts transferring empty to the plants, and maintaining lanes properly.
Trunks and other vehicles have to wait for hour in queue for their term.

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

No financial or statistical technique is used to calculate what is appropriate stock

level in a depot, when liquid should be sent and in what quantity.

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

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

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

The job of empty incharge, stock incharge, shift incharge is very demanding. It
requires mental ability, efficiency, physical fitness, ability to manage people and
space and responsibility. They are paid low as compared to the people of same
rank in other departments.

Shamim & Co. announces two best employee of the month awards each month
from production and service sector. Production sector includes production and
quality control department while service sector includes shipping, Admin,
procurement & stress, MIS, cash and accounts department. This award is won by
an empty incharge of shipping from service sector. Shipping is a large department
where 250/300 people work. There should be a separate best employer of the
month award for shipping. The jobs of shipping staff are more physically &
mentally demanding. It will motivate and help them to some out of the complex
that shipping is an ignored part of the organization.

Shipping department is working is bounded capacity in terms of storage space and

57

tuff conditions.

However they are reducing breakage, rejection and other losses year by year and
supplied by following figures.

Recommendations
On the basis of SWOT analysis 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.
1. Increase the level of coordination between management and distributers.
2. To make friendly working group in the marketing department
3. To increase the level of coordination among the sales department and other
departments.
4. To increase the level of motivational activities from the management to the
salesmen.
5. To arrange the proper training for the salesmen.
6. Educational level should be high to the salesmen.
7. Company should provide proper uniform for the salesmen.
8. Shamim and Company should be arranged the jobs of salesmen to agencies.
9. Transport facility should be provided to the employees as a motivational tool and
to ensure on time presence.
10.

Supply to rural areas/

11.

TOT (Tools of Trade) should in good condition

12.

As the climate of Pakistan particularly Multan is very hot. The people were
like sweet soft drinks So there is a need to have slightly sweet drinks.

13.

Most of 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.

14.

The employees should be motivated to be loyal with the organization. It can

be in the form of incentives and free sampling.

15. All the plants and distributors should be online to increase efficiency.
16. Proper environment about internship should be developed so that internees can get
proper knowledge about the company.

58