Final Internship Report on Pepsi Co.

On Pepsi Cola International

Nau-Bahar Bottling Company, Gujranwala Submitted To: HR Executive Mr. Basharat Zia

Submitted By: Afnan Umar Khan

University of the Punjab, Gujranwala Campus

Kashif Mahmood

University of the Punjab, Gujranwala Campus

Salman Dar

Lahore School of Economics, Lahore

Syed Sajjad Haider

Baha-ud-Din Zikriya University, Multan

Date of Submission:

28.08.2010

NBC, 38 S.I Gujranwala, Pakistan.

University Of the Punjab, Gujranwala Campus Page 1

Internship Report On NBC

Introduction to Report This report is about Pepsi CO. (Nau-Bahar Bottling Company). This report is the part of my B.Com(Hons) degree which is compulsory for us to complete internship in any organization. The purpose of this internship is to provide an opportunity to the students to observe the practical applications of their background professional study. In this report I’ve given the brief history of the Pepsi CO. and about Nau-Bahar Bottling Company, departments of the NBC, their functions and working of the some departments as well. I also include work done by me in NBC and Financial Analysis of the PEPSI CO and SWOT analysis of the NBC. And finally give the recommendations about the working of NBC.

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Internship Report On NBC

A brief History of Pepsi Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention of Caleb Bradham (left), a pharmacist and drugstore owner in New Bern, North Carolina. The information published here is provided by PepsiCo, Inc. and may be accessed at their site: www.pepsi.com. The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So a young pharmacist named Caleb Bradham began experimenting with combinations of spices, juices, and syrups trying to create a refreshing new drink to serve his customers. He succeeded beyond all expectations because he invented the beverage known around the world as Pepsi-Cola. Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn it into a gathering place. He did so by concocting his own special beverage, a soft drink. His creation, a unique mixture of kola nut extract, vanilla and rare oils, became so popular his customers named it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and advertised his new soft drink. People responded, and sales of Pepsi-Cola started to grow, convincing him that he should form a company to market the new beverage. In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and sold it exclusively through soda fountains. But soon Caleb recognized that a greater opportunity existed to bottle Pepsi so that people could drink it anywhere. The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line "Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to bottle Pepsi to independent investors, whose number grew from just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by 1907. By the end of 1910, there were Pepsi-Cola franchises in 24 states. Pepsi-Cola's first bottling line resulted from some less-than-sophisticated engineering in the back room of Caleb's pharmacy. Building a strong franchise system was one of Caleb's greatest achievements. Local PepsiCola bottlers, entrepreneurial in spirit and dedicated to the product's success, provided a sturdy foundation. They were the cornerstone of the Pepsi-Cola enterprise. By 1907, the new company was selling more than 100,000 gallons of syrup per year. Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the town of New Bern pictured it on a postcard. Famous racing car driver Barney Oldfield endorsed Pepsi in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race." University Of the Punjab, Gujranwala Campus

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Internship Report On NBC The previous year, Pepsi had been one of the first companies in the United States to switch from horse-drawn transport to motor vehicles, and Caleb's business expertise captured widespread attention. He was even mentioned as a possible candidate for Governor. A 1913 editorial in the Greensboro Patriot praised him for his "keen and energetic business sense." Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with the slogan, "Drink Pepsi-Cola. It will satisfy you." Then came World War I, and the cost of doing business increased drastically. Sugar prices see sawed between record highs and disastrous lows, and so did the price of producing Pepsi-Cola. Caleb was forced into a series of business gambles just to survive, until finally, after three exhausting years, his luck ran out and he was bankrupted. By 1921, only two plants remained open. It wasn't until a successful candy manufacturer, Charles G. Guth, appeared on the scene that the future of Pepsi-Cola was assured. Guth was president of Loft Incorporated, a large chain of candy stores and soda fountains along the eastern seaboard. He saw Pepsi-Cola as an opportunity to discontinue an unsatisfactory business relationship with the Coca-Cola Company, and at the same time to add an attractive drawing card to Loft's soda fountains. He was right. After five owners and 15 unprofitable years, Pepsi-Cola was once again a thriving national brand. One oddity of the time, for a number of years, all of Pepsi-Cola's sales were actually administered from a Baltimore building apparently owned by Coca-Cola, and named for its president. Within two years, Pepsi would earn $1 million for its new owner. With the resurgence came new confidence, a rarity in those days because the nation was in the early stages of a severe economic decline that came to be known as the Great Depression. 1898 Caleb Bradham, a New Bern, North Carolina, pharmacist, renames "Brad's Drink," a carbonated soft drink he created to serve his drugstore's fountain customers. The new name, Pepsi-Cola, is derived from two of the principal ingredients, pepsin and kola nuts. It is first used on August 28. 1902 Bradham applies to the U.S. Patent Office for a trademark for the Pepsi-Cola name. 1903 In keeping with its origin as a pharmacist's concoction, Bradham's advertising praises his drink as "Exhilarating, invigorating, aids digestion." 1905 A new logo appears, the first change from the original created in 1898. 1906 The logo is redesigned and a new slogan added: "The original pure food drink." The trademark is registered in Canada. 1907 The Pepsi trademark is registered in Mexico.

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Internship Report On NBC 1909 Automobile racing pioneer Barney Oldfield becomes Pepsi's first celebrity endorser when he appears in newspaper ads describing Pepsi-Cola as "A bully drink...refreshing, invigorating, a fine bracer before a race." The theme "Delicious and Healthful" appears, and will be used intermittently over the next two decades. 1920 Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you." 1932 The trademark is registered in Argentina. 1934 Pepsi begins selling a 12-ounce bottle for five cents, the same price charged by its competitors for six ounces. 1938 The trademark is registered in the Soviet Union. 1939 A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a Nickel" to increase consumer awareness of Pepsi's value advantage. 1940 Pepsi makes advertising history with the first advertising jingle ever broadcast nationwide. "Nickel, Nickel" will eventually become a hit record and will be translated into 55 languages. A new, more modern logo is adopted. 1941 In support of America's war effort, Pepsi changes the color of its bottle crowns to red, white and blue. A Pepsi canteen in Times Square, New York, operates throughout the war, enabling more than a million families to record messages for armed services personnel overseas. 1943 The "Twice as Much" advertising strategy expands to include the theme, "Bigger Drink, Better Taste." 1949 "Why take less when Pepsi's best?" is added to "Twice as Much" advertising. 1950 "More Bounce to the Ounce" becomes Pepsi's new theme as changing soft drink economics force Pepsi to raise prices to competitive levels. The logo is again updated. 1953 Americans become more weight conscious, and a new strategy based on Pepsi's lower caloric content is implemented with "The Light Refreshment" campaign. 1954 "The Light Refreshment" evolves to incorporate "Refreshing without Filling." 1958 Pepsi struggles to enhance its brand image. Sometimes referred to as "the kitchen cola," as a consequence of its long-time positioning as a bargain brand, Pepsi now identifies itself with young, fashionable consumers with the "Be Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces Pepsi's earlier straight-sided bottle. 1959 Soviet Premier Nikita Khrushchev and U.S. Vice-President Richard Nixon meet in the soon-to-be-famous "kitchen debate" at an international trade fair. The meeting, over Pepsi, is photo-captioned in the U.S. as "Khrushchev Gets Sociable."

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Internship Report On NBC 1961 Pepsi further refines its target audience, recognizing the increasing importance of the younger, post-war generation. "Now it's Pepsi, for Those who think Young" defines youth as a state of mind as much as a chronological age, maintaining the brand's appeal to all market segments. 1963 In one of the most significant demographic events in commercial history, the post-war baby boom emerges as a social and marketplace phenomenon. Pepsi recognizes the change, and positions Pepsi as the brand belonging to the new generation-The Pepsi Generation. "Come alive! You're in the Pepsi Generation" makes advertising history. It is the first time a product is identified, not so much by its attributes, as by its consumers' lifestyles and attitudes. 1964 A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising. 1966 Diet Pepsi's first independent campaign, "Girl watchers," focuses on the cosmetic benefits of the lowcalorie cola. The "Girl watchers" musical theme becomes a Top 40 hit. Advertising for another new product, Mountain Dew, a regional brand acquired in 1964, airs for the first time, built around the instantly recognizable tag line, "Yaa Hoo, Mountain Dew!" 1967 When research indicates that consumers place a premium on Pepsi's superior taste when chilled, "Taste that beats the others cold. Pepsi pours it on" emphasizes Pepsi's product superiority. The campaign, while product-oriented, adheres closely to the energetic, youthful, lifestyle imagery established in the initial Pepsi Generation campaign. 1969 "You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi Generation advertising strategy. Youth and lifestyle are still the campaign's driving forces, but with "Live/Give," a new awareness and a reflection of contemporary events and mood become integral parts of the advertising's texture. 1973 Pepsi Generation advertising continues to evolve. "Join the Pepsi People, Feeling' Free" captures the mood of a nation involved in massive social and political change. It pictures us the way we are-one people, but many personalities. 1975 The Pepsi Challenge, a landmark marketing strategy, convinces millions of consumers that Pepsi's taste is superior. 1976 "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving national mood. "Puppies," a 30-second snapshot of an encounter between a very small boy and some even smaller dogs, becomes an instant commercial classic. 1979 With the end of the '70s comes the end of a national malaise. Patriotism has been restored by an exuberant celebration of the U.S. bicentennial, and Americans are looking to the future with renewed optimism. "Catch that Pepsi Spirit!" catches the mood and the Pepsi Generation carries it forward into the '80s. University Of the Punjab, Gujranwala Campus

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Internship Report On NBC 1982 With all the evidence showing that Pepsi's taste is superior, the only question remaining is how to add that message to Pepsi Generation advertising. The answer…"Pepsi got your Taste for Life!" a triumphant celebration of great times and great taste. 1983 The soft drink market grows more competitive, but for Pepsi drinkers, the battle is won. The time is right and so is their soft drink. It's got to be "Pepsi Now!" 1984 A new generation has emerged-in the United States, around the world and in Pepsi advertising, too. "Pepsi. The Choice of a New Generation" announces the change, and the most popular entertainer of the time, Michael Jackson, stars in the first two commercials of the new campaign. The two spots quickly become "the most eagerly awaited advertising of all time." 1985 Lionel Richie leads a star-studded parade into "New Generation" advertising followed by pop music icons Tina Turner and Gloria Estefan. Sports heroes Joe Montana and Dan Marino are part of it, as are film and television stars Teri Garr and Billy Crystal. Geraldine Ferraro, the first woman nominated to be vice president of the U.S., stars in a Diet Pepsi spot. And the irrepressible Michael J. Fox brings a special talent, style and spirit to a series of Pepsi and Diet Pepsi commercials, including a classic, "Apartment 10G." 1987 After an absence of 27 years, Pepsi returns to Times Square, New York, with a spectacular 850-square foot electronic display billboard declaring Pepsi to be "America's Choice." 1988 Michael Jackson returns to "New Generation" advertising to star in a four-part "episodic" commercial named "Chase." "Chase" airs during the Grammy Awards program and is immediately hailed by the media as "the most-watched commercial in advertising history." 1989 "The Choice of a New Generation" theme expands to categorize Pepsi users as "A Generation Ahead!" 1990 Teen stars Fred Savage and Kirk Cameron join the "New Generation" campaign, and football legend Joe Montana returns in a spot challenging other celebrities to taste test their colas against Pepsi. Music legend Ray Charles stars in a new Diet Pepsi campaign, "You got the right one baby." 1991 "You got the Right one Baby" is modified to "You got the Right one Baby, Uh-Huh!" The "Uh-Huh Girls" join Ray Charles as back-up singers and a campaign soon to become the most popular advertising in America is on its way. Supermodel Cindy Crawford stars in an award-winning commercial made to introduce Pepsi's updated logo and package graphics. 1992 Celebrities join consumers, declaring that they "Got to Have It." The interim campaign supplants "Choice of a New Generation" as work proceeds on new Pepsi advertising for the '90s. Mountain Dew growth continues, supported by the antics of an outrageous new Dew Crew whose claim to fame is that, except for the unique great taste of Dew, they've "Been there, Done that, Tried that." University Of the Punjab, Gujranwala Campus

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Internship Report On NBC 1993 "Be Young, Have fun, Drink Pepsi" advertising starring basketball superstar Shaquille O'Neal is rated as best in U.S. 1994 New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO Craig Weather up explaining the relationship between freshness and superior taste to consumers. 1995 In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in the year's national advertising championship. 1996, Pepsi Cola domestic and international operations combined into Pepsi Cola Company. International and domestic snack food operations combined into one business unit called Frito-Lay Company. Mountain Dew launches a massive beeper network called "The Mountain Dew Extreme Network." 1997, Pepsi-Cola introduces new advertising campaign with the theme "Generation Next." National roll-out of Aquafine bottled water Pepsi Cola kicks off the celebration of its 1998 100th Anniversary with first worldwide bottler’s conference, held in Hawaii. The event is held during the same time as first bottler's conference 1998 Pepsi-Cola introduces two-liter plastic bottle with built-in "grip handle" that makes it easier to grip and pour. 1999 Pepsi launches "The Joy of Cola" advertising campaign 2000 Pepsi Cola revives its "Pepsi Challenge" advertising campaign. Challenge includes Pepsi One and Diet Coke as well as regular cola. Aquafine brand bottled water becomes the best selling brand of single-serve bottled water in US retail channels 2001 Pepsi-Cola Company introduces a "Pepsi Twist." Regular and diet versions of the crisp new cola with lemon are entering retail outlets in selected U.S. markets. 2002 Brand Pepsi has a new look. 2003 Pepsi-Cola signs an exclusive four-year sponsorship deal with the Canadian Hockey Association, making Pepsi the official soft drink. Pepsi-Cola trademark turns 100 years old. 2005 PepsiCo launches "Smart Spot" symbol in Canada. Pepsi Co. Celebrates 40th Anniversary 2006 Pepsi Celebrates 20th Consecutive Super Bowl with New Diet Pepsi Campaign 2007 Mountain Dew and AMP Energy sponsor the Winter X Games Aquafina launches Aquafina Alive - a low calorie, vitamin-enhanced water beverage 2008 PepsiCo honored by Environmental Protection Agency as water efficiency leader

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Internship Report On NBC Pepsi Malaysia wins bronze award at the Malaysian Effie Awards for its marketing and advertising achievements

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Internship Report On NBC

History of Pepsi in Pakistan Pepsi co la is very popular in Pakistan due to its popularity its take 69% share of soft drink market. Pepsi Cola International has a good name in Pakistan and doing its business through franchising system. PCI has developed the following 10 franchisers in Pakistan. ➢ Karachi ➢ Lahore ➢ Multan ➢ Faisalabad ➢ Gujranwala ➢ Peshawar ➢ Islamabad ➢ Sukkhar ➢ Hyderabad ➢ Quetta

University Of the Punjab, Gujranwala Campus

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Internship Report On NBC

Nau-Bahar Bottling Company Pepsi co starts its operation in Pakistan in 1971 first time in Multan. And NBC also establish in 1971 and from 1974-79 NBC was producing the Coca Cola products. In 1980 NBC achieve the licenses of PCI and in May 27, 1981 its start the production of the Pepsi, in the same year NBC achieve the ISO 9002 certification. And in 2008 NBC start the production of &up. And its unit’s productions capacity is 100000 cases per day with 5 manufacturing’s plants. The Area allotted to it, was Gujranwala Franchise. The franchise area consists of the following nine districts. 1.

Gujranwala

2.

Gujrat

3.

Hafizabad

4.

Mandi bhaudin

5.

Jehlum

6.

Sialkot

7.

Narowal

8.

Sheikhupura

9.

Chakwal

NBC operates through the well establish network of a number of distributers. NBC have 187 Distributers. The Company has two type of delivery system i.e. ➢

Director delivery system

➢

Indirect delivery system

The basic difference between the direct and the indirect delivery system is that in a direct distribution system, the company spends its own resources while in an indirect distribution; the dealer spends his own resources on all the factors which increases the sales volume:

Direct Delivery System Manufacturer

Retailers

Customers

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Internship Report On NBC

Indirect Delivery System Manufacturers

Distributor

Retailers

Customers

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 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

Objective The major objective of the Nau-Bahar Bottling Co. is to manufacture and provide the best quality which must meet the national and international standards. The company is committed to provide the maximum level of customer satisfaction.

Management Hierarchy

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Internship Report On NBC S Assistant General HR QC & Shipping Purchase Production Marketing General Finance Publicity Audit Store MIS D Manager Plant Manager Mangers Manager Manager Manger Manager Managing & Services Director (Out Marketing Director Manager Manager Manager (Local Sales) & Manager Services Sales)

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Internship Report On NBC Organizational Profile

Organization: About employees: Nau-Bahar Bottling Company Address: S.I.E, Model Town, Gujranwala, Pakistan Nau-Bahar is a largest franchise of Pepsi cola International .producing and distributing international brands like Pepsi, teem, & 7up and Mountain dew .plant is situated in Gujranwala, Pakistan

There are 2000 employees attached with the production department in with about 800 labors are permanent and others are on contract base. 120 employees attaches with the sales and other departments.

Nau-Bahar Pepsi cola industry has a moderate and big plant. It can produce 600 bottles in one minute. It has also the water treatment plant which can take raw water from 500 dept, treat and filter it and then store it. Plant can store 20’000 gallons

Location Advantage Water level is up than other locations and quality of water is good, due to this it is cost effective.

Plant capacity

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Internship Report On NBC COMPLETE PRODUCT LINE OF NAUBAHAR BOTTLING BRANDS

PEPSI

MIRINDA

TEEM

7UP FREE

7UP

PACKING 250 ML 1000 ML 1500 ML(PET) 175 ML POST MIX 1000 ML(PET) 330 ML CAN 300 ML(NR) 250 ML 1000 ML 1500 ML(PET) POST MIX 1000 ML(PET) 330 ML CAN 300 ML(NR) 250 ML 1000 ML 1500 ML(PET) POST MIX

UNITS 24 bottles per case 12 bottles per case 6 bottles per case 24 bottles per case 1 Cylinder 6 bottles per case 12 bottles per case 12 bottles per case 24 bottles per case 12 bottles per case 6 bottles per case 1 Cylinder 6 bottles per case 12 bottles per case 12 bottles per case 24 bottles per case 12 bottles per case 6 bottles per case 1 Cylinder

VOLUME 250 ML per bottle 1000 ML per bottle 1500 ML per bottle 175 ML per bottle 114000 ML 1000 ML per bottle 330 ML per bottle 300 ML per bottle 250 ML per bottle 1000 ML per bottle 1500 ML per bottle 96000 ML 1000 ML per bottle 330 ML per bottle 300 ML per bottle 250 ML per bottle 1000 ML per bottle 1500 ML per bottle 114000 ML

1000 ML(PET) 300 ML(NR) 250 ML

6 bottles per case 12 bottles per case 24 bottles per case

1000 ML per bottle 300 ML per bottle 250 ML per bottle

1500 ML(PET)

6 bottles per case

1500 ML per bottle

330 ML CAN

12 bottles per case

330 ML per bottle

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

COMPANY (NBC)

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Internship Report On NBC Fields of Activities Nau-Bahar Bottling Company is the franchise of Pepsi Cola International in Pakistan which is the largest franchise in Asia. NBC is performing all its operations through its different departments. Company only receives the basic formula from PCI while all other activities are performed by the NBC itself. Following are the different departments of NBC… ➢ HRM ➢ MIS ➢ MRD ➢ Purchase ➢ Production ➢ Marketing and sales ➢ Cash and accounts ➢ Audit and Taxation ➢ Post Mix

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Internship Report On NBC

Human Resource Management Department Recruitment procedure in NBC As it is a trend in the market of all organizations that they offer jobs to the general public to meet the organizational needs with the fresh knowledge and skills.NBC offers job opportunities by different ways for the fresh candidates to general public. The major sources of offering the job adopted by the NBC are… ➢ Internal Search Advertisement ➢ Employees Referrals (Permanent Employees of NBC) ➢ Newspaper Adds ➢ Manager’s Recommendations The candidates for the jobs are selected on the basis of ➢ Written Test ➢ Interview by HR Manger ➢ Interview by Concerned Department Head ➢ Final Interview by MD/Director The candidate having highest results and with job experience is proffered. Then the orientation (introduction to the organization and introduction of selected candidate) takes place which includes introduction of all the departments. Then finally training is a necessary element for the candidate takes place with the help of the senior employees. There is another thing that the new employees for the labor work are not selected under the above criteria. They are just selected under their experience and particular job skills regarding their job.

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Internship Report On NBC

Management Information System (MIS) In today’s modern, fast moving and technological advance era, all the organizations are moving to be modern, fast and technological advance and to keep themselves in the competition are rapidly adopting the computerized information system. As this is the time of rapid changes, the organizations are in need of having proper, timely and accurate information for the purpose of decision making. This is just possible by adopting the new technology and information system which provide the latest trends, regular and current information. MIS department of NBC have a strong impact and playing a vital role in this regard. The department is working with small setup but with the strong experienced employees as well as the department has shifted a lot of workload as well minimizes the use of papers in this organization. It is also helpful in saving the time. The MIS is performing the operations of NBC up to maximum extent based on daily work while it is also busy in developing the software. MIS department is also providing the training of usage of this computerized system to the other employees in different departments with assistance of shifting their workload. In NBC, all the computers are connected to each other by LAN and all the departments are based on licensed software working.

Observing Plant’s efficiency The management Information System is developed to keep and to make up to date all the information about the production and the plants that what is going on. This system is performing the function of getting information about the production figures and reports about line utilization, line efficiency, mechanical efficiency, employee code, name, basic salary, allowances, tax, net pay and any other adjustments supplied by time office. University Of the Punjab, Gujranwala Campus

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Internship Report On NBC Sales and distribution System Sales and distribution system is most important function performed by the MIS. It deals with… ➢ ➢ ➢ ➢

Sales system Cash system Shipping system Post mix system

The MIS is also dealing which is its necessary function empties slip, liquid out slip, full in slip, empty short slip, the reports of the system are ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢

load report ( dealer wise, depot wise ) settlement sheet ( dealer wise, depot wise ) Shipping shift summary Daily liquid out report Agent wise load out summary Agent wise sales summary District wise sales summary Computerize sales statements (monthly, semi annually, annually) Cash report

General Ledger System The MIS is also dealing with general ledger system of NBC which takes place of the old register. This system is working from July 1st, 2000. The general ledger system in MIS contains all accounts and shows balance sheets and profit & loss statements with respect to every transaction.

Payroll System There is separate payroll system for NBC. The output of the system is pay slips and payroll report at the end of each month. All these reports are highly important in the day-to-day operations of all the mentioned departments. In addition, customized reports can be obtained as per demand. The system is implemented at each depot as well.

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Internship Report On NBC

Marketing Information System Management Information system have a powerful software the purpose of this software is to keep and maintain the information of each outlet of the franchise to keep the current record up to date as well as maintaining the operations related history. With the help of this system management can get the information at any time about… ➢ Name & address of each outlet ➢ Empty details ➢ Package details ➢ Publicity position ➢ Quality status The system is designed in such a way that reports can be obtained about outlets: ➢ Distributor & area wise ➢ Route wise ➢ District wise The system is useful in accessing market & investment position in each area

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Internship Report On NBC

Cash Department As it is clear from its name the cash department deals with the handling of cash (collections and payments). The collection of cash deals with the receipt of bills from the dealers and salesmen based on their settlement sheets and daily sales reports. The payment of cash takes place after the issuance of vouchers by the accounts department. These payments includes employee's pay, bills, allowances, procurement expenditures and day to day general expenses.

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Internship Report On NBC

Accounts Department Accounts department refers towards the maintenance of books of accounts of NBC. Books of accounts means the maintenance of Journal, ledger, trial balance, income statement and balance sheets etc. the main functions performed by this department are as follows… ➢ Issuance of purchase vouchers for raw material, plant and machinery and general store items ➢ Check payment of payroll to employees including wages, overtime, bonuses etc. ➢ Handling of monthly tax statements. Computer based general ledger system is working because of establishment of MIS department which shows the result of each transaction up to balance sheet and income or profit and loss statement. Note: As we were not given the access to Cash and Accounts Departments so we were just able to collect this data added above about these two departments.

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Internship Report On NBC

Shipping Department Shipping is a broad term in NBC which refers towards transfer of goods (raw material and finished goods) from one place to another. Shipping department perform its functions as an intermediary between production and sales. It ensures the quantity and availability of empties on time at the time these are required similarly in case of filled stock. This maintenance of empties, supply to plants, liquid stock and distribution has a strong impact on sales because of its availability on time which depends upon the shipping department. So we can say that this department is a complete chain of all the operations performed in the organization. The shipping department is responsible for the following function performed by it… ➢ Shipping is responsible for managing the empties. ➢ Shipping is responsible for receiving the liquid clearance from excise to dispatch it further to Depots & distributors. ➢ Shipping is also responsible for maintaining proper stock of liquids and empties as they appear in the liquid and empties stock register so as the stock appears in the registers, it should also be physically present in the depots. ➢ Shipping is responsible for proper management of empties and liquid vehicles loading and off-loading i.e. time management is very important in this case. ➢ Shipping also receives new empties of both RB and NRB and manages their storage and handling and their proper supply to production as they are required by the production for filling purpose.

Empties’ supply to plant As it is discussed earlier the supply of empty bottles is the responsibility of the shipping so it supply the empties to the production department to fill them as to they are needed and others are maintained in the different godowns. Shipping department maintain the stock of empty bottles by collecting them from the wholesalers, retailers. The godowns where they keep their empty stock are… ➢ RG 1 ➢ RG 2 ➢ DPG 2 University Of the Punjab, Gujranwala Campus

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Internship Report On NBC ➢ ➢ ➢ ➢ ➢ ➢

Godown No. 5 Godown No. 8 Tarantaran Modern Soap Qabza Factory Pepsi Town

Pepsi Town Pepsi Town is the residential area where the employees and labors use to live came from the city far away from Gujranwala. It is situated somewhere near Wapda Town. Due to the shortage of space the NBC Gujranwala has established its temporary godown in Pepsi Town where they use to keep their empty stock, liquid stock and other material. Empties and other required material is supplied to the plant when they are needed.

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Internship Report On NBC

Production Department Production is a process of converting raw material into finished goods. It’s a major function in all the Organizations. Production is back bone of any manufacturing Organization. In NBC the raw material used by them in production is approved by the Pepsi Cola International. The material they purchase should be according to the standard of PCI. In the case of material does not meet the standard of PCI then the NBC have a right to return back to its suppliers, in this case the cost of that material is beard by the supplier. The main purpose of this high quality checking is to provide high quality to the end user. Raw material used by NBC includes… ➢ Sugar ➢ Co2 ➢ Water ➢ Ammonia etc

Capacity of Plants Company is operating with 5 plants at unit one. Out of these 5 plants, 3 are producing only 250 ML RB bottles. While 01 produces 1500 ML (PET) & 1000 ML (Glass) bottles Plant 2 produces 1000 ML (PET), 300ML (NR) and 1500ML (PET) bottles. Capacities of each plant are as follows:

Plant #

250ML (RB)

1000ML ( RB)

1500ML (PET)

1000ML (PET)

300ML (NR)

P # 01

-

1100 Cs/hr

600Cs/hr

-

-

P # 02 P # 03 P # 04 P # 05

1500Cs/hr 1250Cs/hr 1375Cs/hr

-

-

-

300Cs/hr -

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There are 3 more plants working at unit 2 in which two plants are busy in the production of 500ml, 1000ml and 1500ml NRB (pet) while the 3rd plant is producing 250ml of slice (RB). The two plants at unit 2 are totally automatic with fewer requirements of labor and remaining are manual with little automatic functions. Company also started manufacturing of mineral water called “Aquafine” in two packages of 600ML and 1500ML and for this purpose it installed a separate plant.

Quality Control Quality control is the basic organizational objective of NBC. Quality check is made from zero level to final products. For this purpose samples are taken from the production to check the quality. This sampling is done after each an hour or half an hour. These samples are tested according to the PCI standards

Production staff Employees are directly involved in the production process. Whereas the helpers are the indirect employees Moreover direct supervisor and helpers are also there. Indirect employees are about 350 in number, who are not directly involved in the production process but they are essential part of the production department.

Laboratory In order to maintain the high quality the plant has a well equipped lab. Laboratory is sufficient to measure the standards and to test syrup of different flavors. The well equipped lab enables the smooth flow of production process.

Product line The major brand of NBC is Pepsi 250 ml, having highest market share which is 47% as compared to other brands. The other brands produced by the organization are… ➢ Pepsi University Of the Punjab, Gujranwala Campus

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Internship Report On NBC ➢ ➢ ➢ ➢ ➢ ➢

Mirinda Teem 7up 7up Free Mountain dew Slice

Production Process Production process is a complete cycle of interrelated activities which is as follows… ➢ First time light inspection after taking the empties to the conveyer with the uncaser by the shipping dept. ➢ Empties shifted to the washer for washing ➢ In washer the empties washed with hot, caustic water and then finally with fresh water. ➢ After washing, bottles again pass through the light inspection. ➢ After 2nd time light inspection the empties move towards filler ➢ The filler filled the empties with liquid and then move them towards bottle neck covering machine ➢ Then the 2nd last step is of coding in which specific codes are assigned to each bottle containing date, time and chemist name. ➢ Finally bottles pass through the 3rd & last light inspection where the level, dirt are inspected in the liquid. ➢ The bottles are ready to use.

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Internship Report On NBC

Audit and Taxation Department In NBC, audits take place annually. The audits are made according to the defined rules by Govt. Records are maintained both manually and computerized. The revenue submission date to the bank is 15th of each month. When the audit is conducted by the government, the company has to present the invoices of purchase in order to get rebate on the foreign purchases. These items come under no tax category. All the departments are being audited by the audit department. For the taxation purpose the taxes are implemented on the basis of the purchase. If purchases are made locally there will be a tax and if purchases are from the international market there will be no taxes.17% sales tax is implemented on the domestic sales. Sales tax and Excise Duty rates are… University Of the Punjab, Gujranwala Campus

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Internship Report On NBC Sales tax is 17%. Excise duty is 12% which the company pays to the government.

Type of taxes

NBC Beverages has to pay two types of taxes. ➢ Input Tax ➢ Output Tax INPUT TAX Input tax only claimed at the production related items such as sugar, concentrates and other items. Such taxes are implemented on the imports too. But such imported items have to come under the production process. OUTPUT TAX Output tax is implemented on the sales. At the end the tax is calculated as: Output tax – input tax = actual tax which has to be paid

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Internship Report On NBC

Purchase and Procurement department As it is clear from its name, the purchase and procurement department deals with purchase of raw material and other materials when they are required. Its main purpose is to purchase the raw material at a lower cost with high quality. For instance, we can say that the purchase department is the important tool which gets the cost efficiency. NBC doesn’t rely on one supplier because this strategy can create the monopoly of that single supplier so the NBC use to have the different and more than one supplier.

Purchase Process When store informs the purchase department about the purchase of a particular item, the purchase department gets information about the prices of desired items. At this level quotations are required by the department from its different suppliers. On receiving these quotations the selection of supplier is based on the low price and high quality. Another procedure is the negotiating the prices with the supplier. In this case the prices are settled at the desired level. After setting the prices, the order is placed to the supplier. When the goods are received their physical verification is done and in case of any shortage or poor quality product the respective supplier is informed. In this case the supplier has to bear the charges of shortages or low quality. In case of events like 14th August, Eid, Festivals Purchase department had to manage the supply at least 15 days before the occurrence of the event, because the production increases in these days due to high demand in the market.

Suppliers NBC has both local and international suppliers of glass and pet bottles who are approved by the Pepsi Cola International, these are… ➢ ➢ ➢ ➢ ➢

Balochistan Glass Factory Karachi Standard Manufacturers Lahore Plasco Plastics Hattar Ghani Glass Peshawar Concentrate from PCI

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Internship Report On NBC ➢ Crystallite Products (Pvt.) Ltd ➢ Kaas-ul-Musaffa Karachi

Supplier Selection Supplier selection is made mostly according to their quotations in which the two factors have main focus. These are • •

Quality Price

Domestic and Foreign Purchases The purchases in NBC beverages are made from two sources; ➢ Domestic Markets ➢ Foreign Markets

Domestic Purchases The purchase made from the country is called domestic purchase. It includes the purchase of sugar, co2, and for the factory it includes office stationery, vehicles spare parts, glass bottles, pet bottles, spare parts of production machinery and vehicles for transportation. Foreign Purchases The purchases made from the international markets are called foreign purchases. Concentrates are provided to NBC by the Pepsi Cola International, crowns and heads of the bottles are also imported from Turkey and Dubai. The machinery is also purchased from the foreign markets

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Internship Report On NBC

Marketing and Sales Department Sales and marketing department is the most important department for NBC because the efficiency of sales wholly depends on it. It boosts up the sales and the profit of the organization. This department required more sensitive decision making and proper planning as well as management. NBC has experienced hardworking and committed staff to perform the sales functions up to the mark to meet the requirements of this process. The efforts of the staff are admirable because we can see that in Pakistan 67% of share is held by the Pepsi brand. Marketing Department deals with the following basically… ➢ Market Development ➢ Outlet ➢ Tactical analysis and routine planning of market strategies. ➢ Competition activity monitoring ➢ TOT’s Management & Integrity ➢ Publicity Management ➢ Time Management ➢ EDS (Every Dealer Survey) ➢ Retail Audit ➢ Stock Verification ➢ New Account Development (NAD) ➢ Publicity Verification ➢ Special Assignments

Market Development The first and the most basic job of the sales and marketing department are to plan, develop and make targets. They make strategies to achieve those targets and develop the market. Especially sales people are assigned monthly, quarterly, annual targets of the liquid sale. The following major factors are considered in this respect. ➢ Collection of all the data about each and every distributors/ outlets, about its sale, volume and growth. ➢ Finding the gaps in the market where there is a potential (New Accounts Development). ➢ Finding the points where competitor is strong and how we can break this point. ➢ Location of non-traditional shops where potential is available for the beverage. ➢ Different offers must be given to break the competitors point or win the mix point.

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Internship Report On NBC Outlets Outlets play an important role in strengthening the market. By monitoring them you can build your market, have their loyalty and increase your sale. Sales persons continuously visit outlets, listens their complaints and satisfy their needs and requirements. They must have information about each and every outlet, its growth, and volume. Proper is maintained to get the feedback from the shopkeepers

Tactical Analysis & Routine Planning Of Market Strategies On the market side the sales people gather information and on the basis of this information they further plan and improve their strategies. ➢ ➢ ➢ ➢ ➢ ➢

Checking of the designated area, its sale, volume and growth. Calculation of daily sales achievements on monthly target basis Location of the poor performance factors and analyzing their cause Finding their solution and getting the approval for its execution. Planning for a schedule for the designated area. Visiting the area according to the plan and reporting it to the higher management

Competition Activity Monitoring

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

Discounting, Promotional schemes, empty management, Cash credit, Vehicles injection (etc.) Reporting to the higher authority. Taking action to block the competitors activities and monitoring Our

TOT’S Management TOT’s means list of items available in a shop, which helps to sell our product conveniently on priority basis. It is one of the major investments being made by the company. TOT’s management completely depends upon the Sales force. The factors to be considered are ➢ Data collection about the sale, volume, growth, profitability, size and place of the shop ➢ Record of all the TOT’s. Given to the shopkeeper. University Of the Punjab, Gujranwala Campus

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Internship Report On NBC ➢ Further plan for the injection of TOT’s ➢ 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's minds. Publicity involves Banners, posters, signings, gifts and schemes. Publicity budget is spent by focusing the followings. ➢ Location of the area. ➢ Arranging the sources and requirements and making priority lists ➢ Carefully arranging the publicity execution.

Time Management Time management is the most important factor especially in a Beverage industry, because it is wholly dependent on Sales and Marketing Department. And without proper management of time this department cannot run. Following are the key factors which are to be considered necessary for the management of time: ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢

Drop size of a specific area. Tonnage of the vehicle for that specific area. Total operational time management Idle time monitoring and elimination. Calculation of outlet knocks time. Calculation of available knock time for each outlet of a specific area. Define and ideal knock time for an outlet. Setting of a comprehensive plan, by considering all the above factors

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Every day Survey (EDS) This activity is based on research and marketing people usually perform this activity. It is basically checking the each and every shop and gets information that what the shopkeeper is selling and keeping in the shop regarding beverages. This activity is performed in the form of teams. Structure of the teams is as follows:.. Team Leader (Marketing & Research Executive MRE)

01

Team Members (Marketing & Research Offices/Surveyor)

03

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 Chalking Cabins Plastic Sign Board Road Boards Simple Boards Pan flex

Special Assignments Special assignments involve the sales promotion schemes verification like under the crown scheme (UTC) and other schemes which the company offers quite often.

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Internship Report On NBC

Area of Internship Internship provides an opportunity to experiment and peruse careers that match academics and personal interests. Internship is an excellent way to gain experience in a career field while enjoying the benefits of a liberal arts education. Internship is an necessary exercise of B.Com(Hons). There are 9 departments in NBC and I went to the Four departments because of shortage of time. The departments where I did my internship are… ➢ Market Research and Development ➢ Production ➢ Post Mix ➢ Sales and Marketing In these departments I’ve learnt a lot and have observed the practical implementation of the bookish knowledge with the kindness of cooperative staff and departmental heads. So a brief introduction of my work that I performed in NBC is in the head of “Work Done by Me”

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Internship Report On NBC

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Internship Report On NBC

During my internship in the Nau-Bahar Bottling Company, Small Industrial Estate Model Town Gujranwala, I really enjoyed to work with the staff of Company, from 26 July to 26 August, 2010 and have a wish to be employee of Nau-Bahar Bottling Company. It was almost impossible to work in all the departments within that limited time. But on my request, the staff of the company provided me the opportunity to work in the different departments for the sake of practical knowledge. I am very grateful HR manager Mr. Qamar Bilal and HR Executive Mr. Basharat Zia that provides me a learning environment in the company. During my internship training I work in following departments 1. Marketing & Research Department 2. Production Department 3. Post Mix Department 4. Sale Department I learn a lot of practical things during working in these departments. Working of these departments which I observe during my internship (as I already discussed) is really admirable. Nau-Bahar Bottling Company provided us real time learning and for better sake of practical exposure the head of different departments assigned us some special duties which are as follow.

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Internship Report On NBC

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Internship Report On NBC

Assignment of Marketing and Production Department In first of my internship after my interview with the HR Manger we are sent to the Marketing and Research department and after acquiring basic knowledge of this department, our head of department assigned us two assignments which are as under. ➢ They said to us that make a comparison between the Products of PEPSI and COKE. ➢ Analysis of advertisement, Promotion & etc.

Difference between PEPSI and COKE We make comparison between the products offered by the PEPSI & COKE. And the difference between the Advertisements and Promotional Activates of the both Companies. These products are… ➢ ➢ ➢ ➢

Pepsi Cola vs. Coca cola Teem vs. Sprite 7UP, Dew vs. Sprite 3G Slice vs. Splash

Research Method The research method will be in the form of questionnaire survey specially designed to measure our variables.

Target Population Our targeted population is the end consumer of soft drinks from the age of 16 to 35 within the Gujranwala base. And Shopkeepers as well. University Of the Punjab, Gujranwala Campus

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Sample Size The sample size will be 100 respondents. The selection area of the sample size independent upon the cost and time considerations.

Sampling Area The sampling areas are the following… ✔ ✔ ✔ ✔

General Bus Stand Shopkeeper Ruler areas Universities and collages as well.

These areas are selected in order to have a proper mix of high, advantage and low income categories so that our sample can accommodate variability as present in the true population.

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Questionnaire The Questionnaire is developed to make the comparison among “PEPSI” and “COKE” with respect to their products preferences, advertisement and packaging. Name: …………… Age: …………… Gender: …………… Q: 1 What you like to have in “Drinks”? ○ ○

Q: 2

If soft drinks, what brand you prefer to drink? ○ ○ ○

Q: 3

Pepsi Coke Others

Which brand you prefer more? ○ ○

Q: 7

Pepsi Cola Team 7up Dew Miranda

Which brand’s sales are high in market? ○ ○ ○

Q: 6

Yes No

If you like Pepsi brand then which soft drink of Pepsi you like more? ○ ○ ○ ○ ○

Q: 5

Pepsi Coke Others

Do You aware of the other products that Pepsi manufacture in soft drinks? ○ ○

Q: 4

Soft Drinks Juices

Pepsi Coke

What factors affect your selection of a particular brand? ○ ○ ○ ○

Incentives Profitability Supply Quality

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Internship Report On NBC Q: 8

From your perspective, which brand advertises its products more? ○ ○

Q: 9

Pepsi Coke

Do you think celebrities attract the consumers to consume a particular brand? ○ ○

Yes No

Q: 10 Which brand’s advertisement attracts you more? ○ ○

Pepsi Coke

Q: 11 Does advertisement motivate you? ○ ○

Yes No

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The Results on the basis of the question Related on the Research Products preferences, advertisement

 Most Prefer Beverage by user According to the result 70 % respondent said that they world prefer Soft drinks as compare to the Fresh Juices.

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 Most Preferred Soft Drink In order to understand the soft drink which is mostly used by the consumer we divide it into three categories. ➢ PEPSI ➢ COKE ➢ Others. 50 % of the respondents answer that they like Pepsi 35% said they like coke and the rest of the 15 % said they like the other brands.

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 Awareness of the other products that Pepsi made In order to ask about the different products offered by the Pepsi 80% of the respondents said that they are well aware about the products that are offered by the Pepsi and 20% said no.

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 The drink that will like more offered by Pepsi Pepsi cola is most likely by the people about 35% respondents said that they like Pepsi cola 30% said they like teem 15% said they like Dew and 10% like 7UP and Mirinda respectively.

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 High Sale of the Brand 67% of the respondents said the sale of Pepsi is high as compare to others 23% respond Coke and 10% respond others. The reason for the high sale of the Pepsi is the it’s advertisement.

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Internship Report On NBC

 Preference of buying of Brand Responding to this question 55% people like to buy the Pepsi and 35% like to buy the Coke and 20% others

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 Why shopkeeper select the particular Brand

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 Advertisement of Different brand 60% respondents say Pepsi Advertise more as compare to Coke.

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 Celebrities have an impact on sales of a particular brand 75% respond that celebrities have an impact on sale of the particular brand.

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 Brand advertisement attract more 60% of the respondents says that Pepsi advertise more as compare to Coke.

Conclusion We draw conclusion on the basis of our research that Coca Cola is proffered by the young generation and have more share in young generation as compare to Pepsi Cola. But overall Pepsi have more market share as compare to Coke. Pepsi’s product Dew has more market share as compare to its competitor product. The reason for the high share of Pepsi products is the advertisement locally.

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ASSIGNMENT OF PRODUCTION DEPARTMENT After completing our activities in the MRD we shifted into the Production department. For that purpose we spent One week in production department. Production of beverage is a huge process; it consists upon different activities like ➢ Water treatment ➢ Syrup production ➢ Co2 production ➢ Production in main shop floor ➢ Quality control lab I understand working of these very well as I already discussed besides this Our Assistant Production Manager Mr. Arshad also gave me assignment to discuss various jobs on plant number 3 and also flow of activities & their cycle time which are as follow

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University Of the Punjab, Gujranwala Campus

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Internship Report On NBC Production Department

Important jobs Of PLANT no: 3 1. Depallettizing 2. before Uncaser Inspection. 3. Uncasing 4. Straw control 5. Controls before washer 6. Washer operator 7. Washer helper 8. Light inspection 9. Filler conveyor control 10. Filler operator 1. 11.Filler operator helper 12. Filled inspection 13. Packer operator 14. Palletizing 15. Shell washer operator 16. Shell controls 17. Supervisors

How to improve the Quality of their work? Using proper way recording the pressure he can put creates on conveyor so that breakage can be reducing. Work with constant efficiency in full hour is difficult .They pay full attention in first few minutes but not in remaining time,

Diligence is actually the required thing. To inform the supervisor about the broken pallet 2. Before uncase inspection What they are doing

1. Depallettizing

✔ He will separate the dirty & empty bottles ✔ Separate unrelated brands ✔ Withdrawal of straw ✔ Separate the broken bottles

Cycle time: it takes one min to pick 32-35 crates from pallet and put it over the conveyor. What they are doing: ✔ Picking crates from pallet. ✔ Putting the bottle over the conveyor. ✔ Removing empty pallets so that Fork lifter can put another crates of bottle and pick the empty pallets.

What they want to do? They prefer to fellow given instruction by management.

What they want to do? Proper look after of conveyer To inform the maintenance officer in case of any fault of conveyer Current situation at plant # 3 The person there sits and watches over the bottles that are not a proper way to look in the crate which contains 24.

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Bottles so their must be another person on the other side .Otherwise quality can not be control when a person gives only 2 seconds per crate. 3. Uncasing Cycle time: it will 7 times pick crates in one minute and each time 4 crates will be picked up. Therefore 28 crates in one minute will be picked up. Duties: what they are doing? ✔ There duty is to set time of Machine ✔ To operate the sensor system ✔ In case of any fault quickly report to the immediate supervisor How to improve the quality? To make the machine efficient proper cleanliness in required. While leaving his lift he must make machine ready to be properly used by the coming person. 4. Straw control Duties: what they are doing? ✔ He is to withdraw straw from empty bottle ✔ He will separate the dirty Broken bottles

University Of the Punjab, Gujranwala Campus

✔ He is to put the bottle vertically ✔ Separate unrelated brands ✔ Separate the broken bottles How to improve the quality He should look properly in to the bottles so that he can pick up the straw. In case of any fault quickly report to the immediate supervisor Lubrication should be done in time. 5. Controls before washer What they are doing? ✔ He is to withdraw straw from empty bottle ✔ He will separate the dirty ✔ Broken bottles ✔ He is to put the bottle vertically ✔ Separate unrelated brands ✔ Separate the broken bottles How to improve the quality He should look properly in to the bottles so that he can pick up the straw. In case of any fault quickly report to the immediate supervisor Lubrication should be done in time.

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6. Washer operator

How to Improve Quality?

Cycle time: washer picks 38 bottles in one turn and in one minute it picks 684 bottles in 8 cycles.

More efficient lights can be used

What they are doing?

Supervisor must look after the process more properly and the girl who is not doing work with concentration should be accounted for that.

He properly put the bottles vertically. Maintain the machine properly.

Incentive plan should be proper

How to improve the quality? In case of any fault quickly report to the immediate supervisor Lubrication should be done in time. 7. Washer helper He is for help in putting the bottles vertically. 8. Light inspection --empty What they are doing? ✔ Wash hands, wear gulfs, caps uniform. ✔ Duty changes after 20 minutes ✔ He is to withdraw straw from empty bottle ✔ He will separate the dirty ✔ Broken bottles ✔ He is to put the bottle vertically ✔ Separate unrelated brands ✔ Separate the broken bottles ✔ To separate Foaming bottle

9. Filler conveyor control What they are doing He is helper and controls the bottles on line or conveyor. He is also responsible for constant or variable timing of bottle line arrangement Quality control There trimming of job is very hard so they cannot proper concentrate the job. There pay is same to the new or fresh worker which gives them a lot of disgranceness. There should be a plan of leave the filler operator and arrange the alternative employees for emergency cases. 10. Filler operator What they are doing? ✔ Properly check the plant to remove the fault. ✔ If there is any fault he should informed the mechanical operator.

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12. Filled inspection--Filled ✔ He check the level of water in the bottle ✔ He also controls the level of water in bottle by setting the Valve. ✔ He also liable to see the line arrangement of bottle at a time may be one or more. ✔ Properly check the van tube and cone washer. ✔ Wash the filler tank before changing any tank. ✔ Informed the water treatment of provide the water as well the syrup department for syrup and ammonia department for cool gas. How the improve the Quality? There trimming of job is very hard so they cannot proper concentrate the job. There pay is same to the new or fresh worker which gives them a lot of disgrace ness. There should be a plan of leave the filler operator and arrange the alternative employees for emergency cases.

What they are doing? ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Wash hands, wear gulfs, caps uniform. Duty changes after 20 minutes He will separate the dirty Broken bottles He is to put the bottle vertically Separate unrelated brands Separate the broken bottles To separate Foaming bottle Check low high level

How to improve quality? More efficient laser lights can be used Incentive plan should be proper Supervisor must look after the process more properly and the girl who is not doing work with concentration should be accounted for that. 13. Packer operator

11. Filler Operator Helper Same duties as operator Just difference to stay on Conveyor not on Fuller Machine

University Of the Punjab, Gujranwala Campus

What they are doing? ✔ He is to check the efficiency of machine. ✔ Control the machine work properly and making in time actions to handle all operations. ✔ In case of any fault quickly inform supervisor.

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Internship Report On NBC Problems 14. Palletizing Cycle time: he puts 50 crates on pallet in 2 minute. What they are doing? Picking the filled crates from conveyor and putt on plat How to improve the quality? To impose pressure to avoid brakeage of bottles 15. Shell washer operator He is to wash the crates using the water pump He is to control pump by managing the ribbon to stop pump disorder 16. Shell controls These two boys bring the shell over the packer machine Ensures the supply of shells according to the need

17. Supervisors What they are doing? ✔ To keep data of attendance of all the employees of specific plant. ✔ To count that crate is full with 24 bottles ✔ To keep cleanliness ✔ Check and balance

Empties 1. Lack of space. 2. Lack of labor. 3. Lack of active supervision. 4. Lack of control by sales and distribution over quality of empties. 5. Employees on daily wages are of low quality. 6. No process for producing acceptable empties. 7. Redefining job of empty godown (delivery of acceptable empties from warehouses for production). Fork lifters 1. Routing between empties to the line is not being managed. 2. Cycle time is not being optimized. 3. Feeding logic is not rationalized. 4. Space is not optimized. 5. Ready backlog of empties is not optimized. 6. No proper operational procedures. 7. No traffic control. 8. No correlation between work load and resources. De-palletize 1. No customer-supplier relationship implemented.

*Appendix

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Before washing 1. Lack of space for empty inspection before washing (space rationalized). 2. Still receiving straws and unacceptable empties on the production line. 3. Pre-washing solution had been decided previously but never implemented. 4. No active supervision. 5. No proper assignation of task. Washer 1. Management of consumables to be improved. Inspection of Empties 1. No job description. 2. Different tasks assigned to workers instead of one standard. 3. The notion of an acceptable bottle is not properly defined to the workers. Filler 1. SOP not cross functionally agreed, communicated and supervised. Coding Operator 1. Lacks overall authority. 2. No real role in reporting. 3. Performance not being evaluated. No job description; function does not exist on paper. 4. Lack of recognition. 5. Area of supervision too large (2 for 5 lines)

Filled Inspection 1. Low fill / high fill bottles are being drained or taken back to the empties. Some are supplied at mess. 2. Maintenance engineers are not coming regularly to fix their problems. Shell Conveyor 1. Space problem. Shells need to be shifted manually.

Palletize 1. Input / output control left to subcontractors.

Machinery Maintenance 1. No preventive maintenance or compliance to. 2. Unavailability of quality equipment and materials required for maintenance (parts). 3. No proper supervision and overall maintenance policy.

Solutions Allocating areas for SKUs (marking & logic) Defining frequency of lifters: unloading time, sorting time, and delivery time (scheduling logic of empty godown – both areas) Arrangement for unacceptable empties (far from good empties or other godown) Defining role of each empty godown (specific roles) Equipment required for converting bad empty to good empty (conveyors, tubs, water hoses, etc.)

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POST MIX DEPARTMENT Our 1st day at post mix department we meet with the Assistant Manager Mr. Shafat and the sale executive Mr. Imran. After the introduction whit these persons they give us brief introduction about the Post Mix department and about there activates. We visited the contractor of NBC who makes the Farms for machines. After that we visited the different customers of the Post mix with Mr. Imran, and makes deals with them. We were assigned to prepare a detailed report about the post mix department regarding its functions, operations and services. The post mix department is responsible for installation, maintenance and filling of fountain fresh (post mix) machine in five districts of Gujranwala franchise Dispensing is today's "action package" carbonated soft drink in POST -MIX and PREMIX forms, coupled with compact, high volume, refrigerated dispensing equipment, represent convenience and increased profits for dealers and profit opportunities for the bottler. There has been a little growth in the POST-MIX/PRE-MIX dispensing area in the Pakistani Beverage Market until the 1994's. But now it has grown a lot due to the following factors. ➢ Pressure on retailers to improve selling methods and techniques. ➢ Rapid increases in the volume of soft drink consumption in outlets with storage remaining limited.

THE IMPORTANCE OF DISPENSING MARKET Dispensing market varies from country to in size and types of out let. The title on premise identifies any out left where product can be purchased with or without food for consumption on or near the premises. University Of the Punjab, Gujranwala Campus

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Internship Report On NBC The On-Premise market is one of the most markets in a Bottlers franchise. Its importance in the continued growth and success of the Bottlers business cannot be under estimated in its effects on:    

Profitability Consumer awareness Consumer sampling Impact on take home sales

  

Volume growth Product Visibility Chilled product sales

POST MIX MACHINE Post Mix machine is U.S. made and it has following main components.   

Water Tank Cooling system Syrup tank(s)

  

Congesture Wolves CO2 tank

Post Mix Department installs machine at any suitable place with the cash security of Rs, 30,000. Along with Post Mix machine, they also provide counter, water tank, water filter(s), disposable glasses, disposable plates, machine maintenance and service. The cooling system is almost like refrigerator or fridge cooling system. However gas cylinders are attached to the machine for gas mixing. Syrup and water mix-up happens in wolves’ at-4 C .So the customer gets fresh, cool product in no time. The water used in fountain fresh machines is acquired from locally available source; it is stored in water tank and filtered once, twice or thrice depending on the purity of the water. With one syrup tank of PEPSI, TEAM and 7'up, equivalent of 19 cases standard bottle is obtained, while syrup cylinder of MIRINDA has the capacity of providing equivalent of 16 cases standard product. Until now total 122 has been installed in different districts and approx. 114 are working while others needs repair. There is further demand of about 100 machines

POST-MIX SYSTEM The syrup mixed with water and CO2 at the customer account. POST-MIX containers can be bifurcated in Transfer Tank.

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Internship Report On NBC The Post Mix system differs slightly in principle from the PRE-mix system. The difference is related to the way the finished beverage is produced for sale to the consumer. The bottle fill the beverage syrup into stainless steel tanks at production plant and transport the tanks to retail outlets. The operation of POST -MIX system is as follows. Compressed CO2 Gas flows from the storage cylinder through gas a pressure regulator where it is reduced to the working pressure of the carbonator, then through a pressure relief valve and back flow check valve to a juncture where the CO2 line gets divided. One segment going to secondary regulators and the other to carbonators and the other to carbonator tanks. The flow of CO2 from the secondary regulators goes to the syrup containers. Syrup flows from the containers to the refrigeration unit and then to the dispensing valve. The CO2 gas directed to the carbonator assembly enter a small capacity tank which contains potable water automatically controlled to a predetermined level in addition to the tank. Its safety valve, the carbonator assembly includes a motor driven water pump to force the potable water into the tank against the CO2 pressure. The carbonated water from the carbonator. Connect dispenser to a separate outlet. Turn power switch ON. Thoroughly flush all incoming product lines before connecting them to the dispenser. Turn on the water supply and allow the carbonator to fill completely. Lift relief valve ring until water flows from relief valve openings. Reliefs ring and allow closing. Turn on CO2 gas and adjust regulator to 75 psi. Activate a valve until pump starts. Close valve and allow pump to cycle. Dispense drinks from each valve to purge and remaining sanitizer from the syrup lines and establish quality carbonation in the carbonator.

TRANSFER TANKS

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Internship Report On NBC The most common packaging from for both PRE-MIX and Post Mix product is the Stainless Steel Tank. This tank comes as either a single entry or double entry system. Each has specific advantages and disadvantages. Both PRE-MIX and Post Mix product can be stored in either single or double entry system

DOUBLE ENTRY TANKS Double entry tanks have separate gas inlet and liquid outlet plugs. The standard double entry tank size can hold 18 Liters of product. However the double entry tanks are also available in other sizes.

SINGLE ENTRY TANK The single entry tank is generally made of stainless steel and can be obtained in different sizes. This tank is not commonly used for dispensing soft drinks. To date its use has been within the brewing industry.

TANK AND CYLINDER REQUIREMENT One question the reader will need to ask is the ratio between tanks and cylinders per units purchased. The answer is dependent on these factors:     

The length of distribution chains. The sales volume per outlet. The product Mix ( some flavors move faster than others ) Frequency of calls. Control of stock levels.

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EXAMPLE OF POST MIX TANK REQUIREMENT One product tank contains the equivalent of 19 standard cases of 250 ml finished product, therefore an outlet selling 40 case per week would require the following minimum stock to cover a basic four flavor installation.

TANKS Outlet Machine Stock Outlet Reserve Stock Factory Shipping Stock Factory Production Filling

    Total: -

4 Tanks 1 Tanks 3 Tanks 2 Tanks

10 Tanks

CO2 CYLINDERS Outlet Machine Stock Outlet Reserve Stock Factory Stock Total: -

1 Cylinder 1 Cylinder 1 Cylinder 3 Cylinders

DISPENSING DEPARTMENT STRUCTURE In a simple way, the department can be considered to have four main functions.

Sales ➢ ➢ ➢ ➢ ➢

Security Deposit Receipt. Legal Agreement papers. Installation site sheet Installation & pick up order Quality control functions.

Services

➢ Preventive maintenance card ➢ Wastage Record. ➢ Complaints log.

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Internship Report On NBC ➢ Spares usage Record ➢ Quality control & sanitation.

Delivery ➢ Delivery Card. ➢ Sales History Card Account Cash Record

Workshop ➢ ➢ ➢ ➢ ➢

Daily sale & stock report Issue / Collection slip. Future needs Technical Development. Repair Section Store Section

Post Mix Officer Responsibility 1. 2. 3. 4. 5. 6. 7. 8. 9.

Customer Service. Conducting Annual surveys of accounts. Preparing a sales plan for growth in conjunction with the Post Mix Manager. Grouping accounts into geographic routes for delivery Helps in selection of sales man cum technicians. New outlet development. Existing outlet development. Merchandising 9. Quality checking

Outlet Selection Dispensing equipment is very expensive and therefore every care must be taken to ensure that the outlet have proper annual yield. As with any installation of Post-Mix equipment, it is important to first undertake a site survey. Until this is done it is not possible to ascertain the equipment required. The points that need to be checked are… 1. 2. 3. 4. 5.

Volume through put. Type of unit required & space for product tanks Construction, alteration and other details. Water and electrical requirements. General Details and deliveries.

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Internship Report On NBC 6. 7.

Proper space for air circulation. Dealer and staff are trained or not.

The machine is normally installed in parks, shopping centers, college canteens, ice-cream parlors, busy roads, burger comers etc. The department is having five vehicles for visits of each machine after every two days. Different routes are planned in various areas. With every route/vehicle, there is a technician, driver and helper. The purpose of the route is to replace empty syrup tank, cleaning and maintenance work of machine and resolve any complaint. Special routes are arranged in case of urgent complaint or immediate syrup tank requirement. The technician also performs the job of salesman. Cylinders are delivered on cash and it is responsibility of technician to collect cash and later submit it at cash office. During the route, they have to arrange their meal for which no allowance is given. Technician s get a commission of Rs. 2.50 per cylinder sale. Currently sales Officer is in charge of the post mix department and performs his job as well. Various forms/documents/reports used in the department are: ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢

Post Mix installation/removal orders Duty slip Overtime register Main store requisition Daily complaint register Daily technician report Part/outlet wise sales report Requisition for publicity Daily post mix report Individual technician files Party wise profiles

Interaction with others Departments ➢ ➢ ➢ ➢ ➢ ➢ ➢

Post mix has interaction with following departments Shipping Accounts Stores Publicity Workshop MIS Audit

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Internship Report On NBC Problems There is job dissatisfaction and very low motivation on the staff due to:        

Low salary Daily allowance has been eliminated Overtime is rewarded in terms of holidays not in monetary terms. According to technicians, they normally do not get a chance of making allowed vacations due to workload so the extra holidays are of no use for them. Higher positions are filled from outside, people within the department should be promoted to the chief technician and sales supervisor level. Technicians perform the responsibility of salesman for which they get just Rs. 2.50 per cylinder that is very low. Computer is present in the S.O. office but no one in the department is really qualified to get use of it. Sales targets are set without the consent of staff. Post Mix staff has no knowledge of ISO. During the route riding, I observed following points ➢ The key issue is proper and compatible combination of technician, helper and driver. These people should work as a team in the field and must possess the characteristics that make a team successful i.e. technical competence, trust ----.

➢ The group should move with full preparation i.e. all required slips, necessary tools, tested equipment. ➢ The routes must leave at least till 0:30 A.M. ➢ The vehicles must be fit and available on time. It is in their best interest and makes their job safe, convenient and speedy. ➢ The new machines are not available for installation. Used machines and counters make shopkeepers unhappy. ➢ The behavior of the staff with shopkeepers is generally good. The outlet owners have the Post Mix office number complaints and the response is efficient.

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SUGGESTIONS Fountain fresh department is an area which requires much more attention. Though currently it is working with its capacity and covering five districts with a smart staff. The organization should take it as a SBU and concentrate on it because of High expected growth PEPSI has currently no competition in this area No problem of empty It does not requires a huge plant setup and works with simple setup and very low overhead ➢ No chance of fake bottle ➢ ➢ ➢ ➢

So the sales can be increased dramatically by better management and boosting up Post Mix department.

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Sales Department The last week we spend in the sale department. After basic Introduction about Sales’ department and Distribution Head Mr. Hussain Ali Sehgal. He gives us brief history of the sale and distribution and way of distribution by NBC. There are 2 types of sales System… ➢ TU (Territory University)

➢ Non TU (Non Territory University)

TU system A system of distribution in which the company main focus is on the consumer because the consumer is the most important and the role of middle man is abolished. Now CR deals in places of middleman.

Non TU system A system of distribution in which company give to manufacturer and manufacturer gives to distributer and distributer give to the retailer and finally product reaches to the final consumer. Company does not know about their consumer. Working of the Sales force of the NBC… ➢ ➢ ➢ ➢ ➢

2-3 Customer representative work under the supervision of Area development Manager 2-3 Area development Manager work under the supervision of the Unit Manager 1 Unit manager control the 1 city 2-4 Unit manager are controlled by the Sales Development Manager 5 Sales Development Manager Supervised by the Manager

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NBC have a total 5 Sales Development manager. And NBC is 50% TU based and 50% Non TU based

Non TU Base Area ➢ ➢ ➢ ➢

Muridke Kamoki Hafizabad Daska and Outstation.

TU Base area ➢ ➢ ➢ ➢ ➢ ➢

Shekhupura Shadra Gujranwala Gujrat Jehlum Sialkot

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Assignment Given By Sales Department They give us assignment to conduct a market survey for this purpose we make two type of questionnaires; Consumer Questionnaire, Retailer Questionnaire.

Consumer Questionnaire Name:_________

Gender:___________

1. What is your age? a)15-24 b)25-34 c)35-44 d) 45-54 e) 55 and above 2. Which soft drink brand do you prefer? a) Pepsi b) Coca Cola c) Gourmet d) Others 3. Why you prefer the above mention brand? a) Prices b) Taste c) Availability d) Status 4. Which drink you prefer of this brand? __________ 5. How often do you purchase soft drink? a) Daily b) Weekly c) Twice a Month d) Monthly 6. How much you drink? a) 1-3 b) 4-6 c) 7 and above 7. Which pack do you mostly purchase? a)250ml b) 300ml c)500ml d) 1 liter e)1.25 liter f) 1.5 liter g) 2.25ml 8. Which juice do you like? a)Shezan b)Slice c)Splash d)Benz e)Nestle 9. Why you give preference to this juice? a)Healthy b)Price c)Taste d)availability e) Status 10. Do you drink mineral water? a)yes b) No c)Occasionally 11. Which brand of mineral water do you prefer? a)Nestle b)Aquafina c)Kinley d)Sufi e) Others 12. Why you prefer above mention brand? a)Price b)Quality c) Availability 13. Does your preferred brand easily available at your door step? a)Yes b)No 14. Do you like the advertisement of your preferred brand? a)Yes b)No 15. Which other brand advertisement you like? ____________________________________ 16. Reasons of liking the advertisement?

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Internship Report On NBC _______________________________________________________________________ _______________________________________________________________________ ____________________________________________________________________

Retailer Questioner Shop Name: _______________ Location______________________ 1. Which brand of soft drink you have? a) Pepsi b) Coke c)Gourmet d) A and B e) Others 1. Which brand customers demand from you? a) Pepsi b) Coke c) Gourmet d) Others 1. In which pack? a)250ml b) 300ml c)500ml d) 1 liter e)1.25 liter f) 1.5 liter g) 2.25ml 2. Which brand you prefer for customer? a) Pepsi b) Coke c) Gourmet d) Others 1. In which pack? a)250ml b) 300ml c)500ml d) 1 liter e)1.25 liter f) 1.5 liter g) 2.25ml 2. Reason of preference? a) Margins b) Investment by Company c) Demand by Customer d) If others Specify? 3. Which age group people purchase soft drink from u? a)12-18 b)18-33 c) 33-45 d)45 and above 4. On a Scale of 1-5 which product of this brand is mostly selling by you? 1) __________ 2) _________ 3)_________ 4)_________ 5) __________ 5. Which age group people Purchase juices from you? a)12-18 b)18-33 c) 33-45 d)45 and above 6. Which juice Is mostly demanded by the Customer? a)Shezan b)Slice c)Splash d)Benz e)Nestle 7. What would you prefer for Customer? a)Shezan b)Slice c)Splash d)Benz e)Nestle 8. Why?

_____________________________________________________________________________ ________

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Analysis of Our Survey As it is discussed earlier that the in sales department I was assigned a market survey regarding advertisement, demand market share among beverages. For the attainment of this purpose we developed 2 different questionnaires to collect the opinions of the retailers and consumer. Those questionnaires are pasted in this report. Our sample size was 100. We went to the individual retailers and consumer to get the particular information. After getting the filled questionnaires I came to know that the demand of Coke in young generation is high with respect to Pepsi because of its taste and quality while in rural area the Pepsi is more popular than coke. From retailers view point at the present times the Pepsi have the high popularity and demand but they consider that in the near future the coke will become the market leader in beverage industry because of change in preference of people day by day. Now regarding advertisement the Pepsi’s advertisement is high in comparison with coke. Pepsi Co.’s target is to hit the common man while coke is highly status conscious as well consumer like the advertisement of Pepsi because of it day to day innovative adds as we can see the add of Mountain Dew. As we consider the juices, recently Pepsi Co. introduced its juice “Slice” which has a strong impact on other juices market. It snatched the share of Shezan (old brand) as well. Slice has its low availability but high demand. NBC considering this gap among demand and supply seriously and planning to minimize it in the near future. The coke has also introduced its juice names “Splash” to compete in market but badly failed. It also introduced its another soft drink names 3G against Mountain Dew but it is still not in the position to attract the market as compare to Mountain Dew.

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Financial Analysis Definition "Financial statement analysis is the process of identifying of financial strengths and weaknesses of the firm by properly establishing relationship between the items of the balance sheet and the profit & loss account," and it is done through ratio analysis.

Comparative study “In this study we analysis the proportional change in two years”. Here the comparative study of 2008 with 2009 done then graphically represents the Change between two years.

Raito Analysis Ratio means “one number expressed in term of another a ratio is statistical yardstick by mean of which relationship between two or various figures can be compared or measured. Here we are going to explain the ratio analysis of PepsiCo Inc, and Subsidiaries which is little bit different from other organizations. Financial ratios can be divided into the following five parts A. Liquidity ratios B. Activity ratios C. Solvency ratios D. Profitability ratios E. Market ratios

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Income Statement:

(in millions expect per share amount) Net Revenue Cost of Sale

2009 $43232 (20099 ) Gross profit 23133 Selling, general and administrative expenses (15026 ) Amoritization of intangible assets (63) Operating Profit 8044 Bottling equity Income 365 Interest expenses (397) Interest income 67 Income before interest and Taxes 8079 Provisions for income Taxes (2100) Net Income 5979 Less: Net income attributable to noncontroling interest (33) Net Income attributable to Pepsi Co 5946 Net Income attributable to Pepsi Co common shares Basic 3.81 Diluted 3.77

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2008 $43251 (20351 ) 22900 (15877 ) (64) 6959 374 (329) 41 7045 (1879) 5166 (24) 5142 3.26 3.21

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Balance Sheet: (in millions expect per share value) Asset Current Assets Cash and cash Equivalents Short-term investment Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Total Current Assets Property, Plant and Equipment, net Amortizable Intangible Assets, net Goodwill Other nonamortizable intangible assets Nonamortizable Intangible Assets Investments in Noncontrolled Affiliates Other Assets Total Assets

2009

2008

3943 192 4624 2618 1194

2064 213 4683 2522 1324

1257 1 1267 1 841 6534 1782 8316 4484

1080 6 1166 3 732 5124 1128 6252 3883

965 3984 8

2658 3599 4

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Balance Sheet:

(in million expect per share amount) LIABILITIES AND EQUITY Current Liabilities Short-term obligations Accounts payable and other current liabilities Income taxes payable Total Current Liabilities Long-Term Debt Obligations Other Liabilities Deferred Income Taxes Total Liabilities Commitments and Contingencies Preferred Stock, no par value Repurchased Preferred Stock PepsiCo Common Shareholders’ Equity Common stock, par value 1 2/3¢ per share Capital in excess of par value Retained earnings Accumulated other comprehensive loss Repurchased common stock, at cost Total PepsiCo Common Shareholders’ Equity Noncontrolling interests Total Equity Total Liabilities and Equity

2009

2008

$ 464 8127 165 8756 7400 5591 659 22406

$ 369 8273 145 8787 7858 6541 226 23412

41 (145)

41 (138)

30 250 33805 (3794) (13383 ) 16908 638 17442 39848

30 351 30638 (4694) (14122 ) 12203 476 12582 35994

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Liquidity Ratios A firm’s ability to satisfy its short- term obligations as the become due.

Ratios

Year Year 2009 2008 Liquidity Ratios Current Ratio 1.44 1.23 Quick Ratio 1.14 0.94 Absolute Liquid Ratio 1.00 0.79 Working Capital 381500 201900 0 0

Comments Good Good Good Good

Interpretation:Current Ratio The current ratio is Increasing that’s means the total assets against the total liabilities has been increased. And firm is in better position. Quick Ratio The quick ratio also increasing its mean our inventory converted quickly and become the part of production. Absolute Liquid Ratio The absolute quick ratio increasing it means we can easily pay our debts. Working Capital Working capital also increases so we can meet our daily expenses easily.

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Debt Ratio The debt position of a firm indicates the amount of the other peoples ‘s money being used to generates profits. Debt Ratios Ratios Year 2009 Debt Ratio 0.56 Time Interest Earned Ratio 21.18

Year 2008 0.65 22.2 9

Comments Good Poor

Interpretation Debt Ratio The debt position of a firm indicates the amount of the other people’s being used to generate profits. Debt ratio shows the firm assets financed by the others. This ratio decrease from last year which indicates that lesser assets are financed by the outsiders. Time Interest Earned Ratio Time interest earned ratio indicates the firm ability to pay the contractual interest payments. This ratio decrease from last year.

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Profitability Ratio The Ratio which is used to indicates the overall profitability of the firm. As a group, these measures enables the analyst to evaluate the firm’s profit with respect to a given level of sales, a certain level of assets, or the owner’s investments. Profitability ratios Year Year 2009 2008 Gross Profit Ratio 53.50 52.95 % % Operating Profit ratio 18.60 16.10 % % Net Profit Ratio 13.83 11.94 % % Earning Per Share 3.33 2.88 Return on Equity 35.16 42.14 % % Return on Total Assets 14.92 14.28 % % Ratios

Comment s Good Good Good Good Poor

Interpretation

Good Gross Profit Ratio

The Gross Profit Margin with respect to the previous year is increase and indicates that our production cost is less from last year. Operating Profit Ratio Operating profit margin is increasing its mean our profit margin increase as compare to expenses. Firms operations become effective and save the operating cost. Net Profit Ratio Net profit also increases that shows our expenses of Tax and our expenses for interest decrease. Earning Per share Earning per share also increasing that is due to increase in Net profit Margin. Return on Equity Return on equity also decreasing because of net profit. Return on Total Assets Return on Total Assets showing increasing trend. Its firm is using its assets optimally.

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Activity Ratio Measure the speed with which various accounts are converted into sales or cash-inflow or outflow.

Activity Ratios Ratios Year 2009 Inventory Turnover 7.68 Times Average Collection period 38.50 Days Total Assets turnover Ratio 1.08

Year 2008 8.07 Times 39 Days 1.20

Comment s Poor Good Poor

Interpretation Inventory Turnover The inventory turnover ratio decrease by some points and it’s unfavorable for our operation of business. Its mean the inventory less rapidly become the part of production. Average collection Period Average collection period is decreased this is favorable for the company. This means company is better position to recover its credit. Total Assets Turnover Total Asset turnover is decrease because we are not properly utilized the assets it’s become the cause of less sales volume.

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Internship Report On NBC Market Ratio Relate a firm’s market value, as measured by its current share price, to a certain accounting values.

Market Ratios Ratios Year Year 2009 2008 Price Earning Ratio 15.0 24.7 2 1 Market/ Book Ratio 3.33 2.88

Comment s Poor Good

Interpretation Price Earning Ratio Price Earning Ratio decrease with respect to the previous year .Price earning ratio decrease its shows the company performs is not up to the secondary market. Market Book Ratio Market Book ratio increase because our equity or retained earning increase so automatically its effects the market /book ratio.

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TREND ANALYSIS In trend analysis we done two types of analysis, these are

1. Horizontal Analysis It is conducted by setting consecutive balance sheet, income statement side-by-side and reviewing changes in individual categories on a year-to-year or multiyear basis. A comparison of statements over several years reveals direction, speed and extent of a trend(s). The horizontal financial statements analysis is done by restating amount of each item or group

of items as a percentage. 2. Vertical Analysis Like horizontal analysis this can also done for balance sheet and income statement. Here we assign 100% value to any key item of balance sheet or income statement and then see portion of other items in this percentage.

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Internship Report On NBC Description

2008

Comments

100 100 100 100 100 100 100 100 100 100 100 100 100

2009 % Change (0.04) (1.23) 1.01 (5.35) (1.58) 15.59 (2.40) 20.66 63.41 14.67 11.76 15.73 37.50

Net Revenue Cost of Sale Gross profit Selling, general and administrative expenses Amortization of intangible assets Operating Profit Bottling equity Income Interest expenses Interest income Income before interest and Taxes Provisions for income Taxes Net Income Less: Net income attributable to non-controlling interest Net Income attributable to Pepsi Co

100

15.63

Favorable

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Unfavorable Favorable Favorable Favorable Favorable Favorable Unfavorable Unfavorable Favorable Favorable Unfavorable Favorable Unfavorable

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Description Asset Current Assets Cash and cash Equivalents Short-term investment Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Total Current Assets Property, Plant and Equipment, net Amortizable Intangible Assets, net Goodwill Other non-amortizable intangible assets Non-amortizable Intangible Assets Investments in Non-controlled Affiliates Other Assets Total Assets

2008

2009 % change

Comments

100 100 100 100 100

91.03 (9.85) (1.25) 3.80 (9.81)

Favorable Unfavorable Unfavorable Favorable Unfavorable

100 100 100 100 100

16.33 8.64 14.89 27.51 4.78

Favorable Favorable Favorable Favorable Favorable

100 100

1.02 15.47

Favorable Favorable

100 100

(63.69) Unfavorable 10.70 Favorable

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Description LIABILITIES AND EQUITY Current Liabilities Short-term obligations Accounts payable and other current liabilities Income taxes payable Total Current Liabilities Long-Term Debt Obligations Other Liabilities Deferred Income Taxes Total Liabilities Commitments and Contingencies Preferred Stock, no par value Repurchased Preferred Stock PepsiCo Common Shareholders’ Equity Common stock, par value 1 2/3¢ per share Capital in excess of par value Retained earnings Accumulated other comprehensive loss Repurchased common stock, at cost Total PepsiCo Common Shareholders’ Equity Non-controlling interests Total Equity Total Liabilities and Equity

200 8

2009 % Change

Comments

100 100 100 100 100 100 100 100

25.74 (1.76) 13.79 (0.35) (5.82) (14.52) 191.59 (4.29)

Unfavorable Favorable Unfavorable Favorable Favorable Favorable Unfavorable Favorable

100 100

5.07

Favorable

100 100 100 100 100 100 100 100 100

(28.77) 10.33 (19.17) (5.23) 38.55 25.39 38.62 10.70

Unfavorable Favorable Favorable Unfavorable Favorable Favorable Favorable Favorable

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Description

2009 % Net Revenue 100 Cost of Sale 46.49 Gross profit 53.50 Selling, general and administrative expenses 34.76 Amortization of intangible assets 0.15 Operating Profit 18.60 Bottling equity Income 0.85 Interest expenses 0.91 Interest income 0.15 Income before interest and Taxes 18.68 Provisions for income Taxes 4.85 Net Income 13.83 Less: Net income attributable to non-controlling interest (0.07 ) Net Income attributable to Pepsi Co 13.75

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2008 % 100 47.05 52.95 36.71 0.15 16.09 0.86 0.76 0.09 16.29 4.34 11.94 (0.05 ) 11.88

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Description Asset Current Assets Cash and cash Equivalents Short-term investment Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Total Current Assets Property, Plant and Equipment, net Amortizable Intangible Assets, net Goodwill Other non-amortizable intangible assets Non-amortizable Intangible Assets Investments in Non-controlled Affiliates Other Assets Total Assets

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2009 %

2008 %

9.89 5.73 0.48 0.59 11.60 13.0 1 6.56 7.00 2.99 3.67 31.54 30.0 2 31.79 32.4 0 2.11 2.03 16.39 14.2 3 4.47 3.13 20.86 17.3 6 11.25 10.7 8 2.42 7.38 100 100

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Description LIABILITIES AND EQUITY Current Liabilities Short-term obligations Accounts payable and other current liabilities Income taxes payable Total Current Liabilities Long-Term Debt Obligations Other Liabilities Deferred Income Taxes Total Liabilities Commitments and Contingencies Preferred Stock, no par value Repurchased Preferred Stock PepsiCo Common Shareholders’ Equity Common stock, par value 1 2/3¢ per share Capital in excess of par value Retained earnings Accumulated other comprehensive loss Repurchased common stock, at cost Total PepsiCo Common Shareholders’ Equity Non-controlling interests Total Equity Total Liabilities and Equity

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2009 %

2008 %

1.16 20.39 0.41 21.97 17.57 14.03 1.65 56.22

1.02 22.98 0.40 24.41 21.83 18.17 0.62 65.04

0.10 (0.36)

0.11 (0.38)

0.07 0.62 84.83 (9.52)

0.08 0.97 85.11 (13.04 ) 39.23

(33.58 ) 42.43 1.60 43.77 100

33.90 1.32 34.95 100

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Internship Report On NBC

SWOT Analysis SWOT analysis means the analysis of internal and external environment. Internal environment refers towards the strengths and weaknesses of an organization while external environment refers towards the opportunities and threats. We conducted the SWOT analysis of NBC which is given below…

Strengths Good strategy adoption The strategies related production and supply of their product are really admirable and these strategies play a vital role in capturing the market share. Customer Positioning Pepsi Co. creates its good reputation in the market as compare to other brands and consumers positioning is high. Experienced Staff Pepsi Co. has well experienced, competent and committed staff in marketing department with high marketing skills and because of this advantage they are grasping the high market share. Focus on Differentiation Differentiation is a tool which plays a vital role for success in the competition and NBC always prefer to be different from its competitors. Revenue Growth Their domestic organization achieved revenue growth from a healthy pricing environment, strong field execution, and effective innovation as their diet, water and flavor portfolios partially compensate a continued shift away from their Pepsi trademark. Revenue growth and cost management offset a relatively more volatile raw material cost environment. The profitability of their international business University Of the Punjab, Gujranwala Campus

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Internship Report On NBC continued to improve and it has become a more significant contributor to their performance. Sponsorship To increase its popularity and awareness among people the Pepsi sponsors cricket matches which plays a vital role in its promotions. Strong Distributors Pepsi Co. search strong, experienced, devoted and loyal people. Basic requirement of them is financially strong people, devoted with product, loyal with company and involve in their business.

Weaknesses No Proper Infrastructure There is no proper structure within the organization like work space problems etc due to which employees got exhausted. Low Wage Rate Low wages for the employees and the other staff with respect to their main competitor Coke. Conflict Management There are so many conflicts and use of politics inside the organization but management is not taking any serious actions about it. Fewer Incentives NBC offer fewer incentives with respect to the Coke to their retailers and distributors. High Rate of Discrepancy Production is good but the have high rate of problems in filling such as maintenance of level of liquid in filling etc.

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Internship Report On NBC

Opportunities Innovation or Cost Reduction Edge Pepsi Co. has the opportunity of getting more satisfaction of the customer by offering the lower cost products in comparison with its competitors or by providing the high quality, innovative products to its customer as well as the by the quick responsiveness. Strategic Planning for Customer Satisfaction Pepsi Cola strives to create value for their consumers, customers, bottlers and the community. They believe their success depends on their ability to satisfy their beverage consumption demands and their ability to add value for their customers. Nevertheless, attaining efficiency, quality, innovation, and responsiveness to customers requires a strategic plan. Opportunity of Penetration Pepsi Co.’s brands are moving in more than 200 countries. Pepsi Co. has the opportunity to expand its products in the countries where it is not performing its functions as well as by providing the high quality product to the existing customer to retain them. 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.

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Internship Report On NBC

Threats Existing Competitor’s Management 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. New Entrance It is also facing the threats of newly introduced beverages in the market such as Gourmet, Amrat and Fizz etc. They are capturing market share up to their best which is not in the favor of Pepsi Co.

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Internship Report On NBC

Suggestions ➢ Management is not participative because of the group think, their own priorities and politics within the NBC. The company should use the participative management system and eliminate the other factors by having a strong and proper check in order to increase the job satisfaction level of employees. ➢ Company management has to put its all efforts to change the prevailing culture of the Co. to avoid the mentioned problems such as group think, favoritism, politics etc. ➢ Employees’ turnover rate is very high in the organization. Management should take effective actions to reduce it. ➢ Latest reorganizing efforts are necessary to make it cost effective also to meet the current needs of modern environment. ➢ To attract the customer in the future, NBC have to make extensive efforts by offering extra incentives to retailers and consumers. ➢ The infrastructure of the company is another thing which needs to be improved which should provide a relaxed working environment to the labor and other staff. ➢ The procedure of taking services from the company must be made easier and straight forward not involving long difficult procedure for simple tasks.

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Internship Report On NBC

Conclusion After going through the whole period of internship as an internee I’ve observed so many professional activities and learnt as well. This report is basically is a brief explanation of the activities I’ve observed and learnt from the NBC. NBC is a professional organization with very cooperative staff which really helps the internees and newly entered employees to make them aware about the organization. As I mentioned earlier in this report about department where I’ve done my internship and staff with whose kind cooperation I’ve seen the practical implementation of the bookish knowledge. I also learn that how to perform the duties in the meaningful ways by accomplishing my assignments given by the concerning departments heads and their executives. They were also there to guide me in the ambiguities. Market and Research Department where I spent one week is a memorable time where Ass. Manager Marketing Services Mr. Mahmood Ahmed really gave us a tough time about preparing an analysis based presentation regarding competition among Pepsi, Coke and other soft drink brands. Similarly in the Production Dept. we learnt that how the raw material including water, syrup and sugar are mixed. We also assigned an assignment about calculating the time of an empty from shipping department to the production until it is not ready to use by the consumer (filling time). And then in the Post Mix and Sales & Marketing departments assigned us the preparation of reports about these departments after giving us the relevant information about these. These reports are dispatched in this report. Overall I am very satisfied with my internship in Pepsi because now I really have some knowledge about the practical field and experience as well.

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Internship Report On NBC Bibliography Book Reference: ➢ LAWRENCE J. GITMAN,2005 “Managerial Finance”, Financial statement and

Analysis”.58-70 ➢ Frank K. Reilly and Keith C. Brown, 2007 “Investment Analysis & Portfolio Management,” Financial Ratios”, 102-113

Websites Reference:

➢ www.pepsico.com/Company.html

➢

www.sirpepsi.com/pepsi11.htm

Visited Date

Time of Visit

15/08/2010

10:21pm

17/08/2010

➢ www.nbcpepsi.com

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3:00 pm 3:10 am

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Internship Report On NBC

Glossary Department: A group of people who work together and possesses similar skills or use same knowledge, tools or techniques to perform their jobs. Distributer: Organization that help other organizations to sell their goods or services to the customers. Director delivery system: Distributions system in which company directly distribute its products to the retailers. Human Resource Management: Activates which are necessary for the staffing of the organizations and sustaining high employee Performance. Knowledge: A blend of information, experience and insight that provide a framework that can be thoughtfully applied when assessing new information or evaluating relevant situation. Management: The process of using organizational resources to achieve organizational objectives through planning, organizing, staffing, leading and controlling. Mission: A firm’s purpose and where it fits into the world. Opportunities: Positive trends in the external environment of the company.

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Internship Report On NBC Organization: A deliberate arrangement of the people to accomplish some specific purpose. Production: The process of converting the raw material into finished goods. Shipping: Transfer of goods from one place to another desired place. Strategy: A cluster of decisions about what goals to peruse, what actions to take and how to use resources to achieve its goals. SWOT Analysis: An analysis of an organization’s strengths, weakness, opportunities and threats. TOT’s: TOT’s means list of items available in a shop, which helps to sell product conveniently on priority basis. Vision: An ideal picture of the future of an organization. DPG: Duty Paid Godown RG: Registered Godown

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