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The History Of Pepsi-Cola

1893--Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with many different soft drink concoctions; patrons and friends sample them at his drugstore soda fountain. 1898--One of Caleb's formulations, known as "Brad's Drink," a combination of carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August 28, 1898. Pepsi-Cola receives its first logo.

1902--The instant popularity of this new drink leads Bradham to devote all of his energy to developing Pepsi-Cola into a full-fledged business. He applies for a trademark with the U.S. Patent Office, Washington D.C., and forms the first Pepsi-Cola Company. 1903--"Doc" Bradham moves the bottling of Pepsi-Cola from his drugstore into a rented warehouse; he sells 7,968 gallons of syrup in the first year of operation. Pepsi's theme line is "Exhilarating, Invigorating, Aids Digestion." 1904--Bradham purchases a building in New Bern known as the "Bishop Factory" for $5,000 and moves all bottling and syrup operations to this location. Pepsi is sold in six-ounce bottles. Sales increase to 19,848 gallons. 1905--Pepsi-Cola's first bottling franchises are established in Charlotte and Durham, North Carolina. Pepsi receives its new logo, its first change since 1898. 1906--Pepsi gets another logo change, the third in eight years. The modified script logo is created with the slogan, "The Original Pure Food Drink."

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There are 15 U.S. Pepsi bottling plants. The Pepsi trademard is registered in Canada. Syrup sales rise to 38,605 gallons. The federal government passes the Pure Food and Drug Act, banning substances such as arsenic, lead, barium, and uranium, from food and beverages. This forced many soft drink manufacturers, including Coca-Cola, to change their formulas. Pepsi-Cola, being free of any such impurities, claimed they already met federal requirements. 1907--Pepsi-Cola Company continues to expand; the company's bottling network grows to 40 franchises. Pepsi-Cola sells more than 100,000 gallons of syrup. Pepsi trademark is registered in Mexico. Syrup sales rise to 104,026 gallons. 1908--Pepsi-Cola becomes one of the first companies to modernize delivery from horse drawn carts to motor vehicles. Two hundred fifty bottlers in 24 states are under contract to make and sell PepsiCola. 1909--Automobile race pioneer Barney Oldfield endorses Pepsi-Cola in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race." 1910--The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina. 1920--Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy you." 1923--Pepsi-Cola Company is declared bankrupt and its assets are sold to a North Carolina concern, Craven Holding Corporation, for $30,000. Roy C. Megargel, a Wall Street broker, buys the Pepsi trademark, business and good will from Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation. 1928--After five continuous losing years, Megargel reorganizes his company as the National PepsiCola Company, becoming the fourth parent company to own the Pepsi trademark. 1931--U.S. District Court for Eastern District Virginia declares the National Pepsi-Cola Company bankrupt, the second bankruptcy in Pepsi-Cola history. The Loft candy company acquires the National Pepsi-Cola Company. Charles G. Guth, president of Loft, assumes leadership of Pepsi and commands the reformulation of Pepsi-Cola syrup formula. 1933--By the end of the year, Guth's new Pepsi-Cola Company is insolvent. In a series of moves, he acquires Megargel's interest in the company, giving himself 91% ownership of Pepsi. 1934--A landmark year for Pepsi-Cola. The drink is a hit and to attract even more sales, the company begins selling its 12-ounce drink for five cents (the same cost as six ounces of competitive colas). The 12-ounce bottle debuts in Baltimore, where it is an instant success. The cost savings proves irresistible to Depression-worn Americans and sales skyrocket nationally.

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Caleb Bradham, the founder of Pepsi-Cola and "Brad's Drink," dies at 66 (May 27th, 1867-February 19th, 1934). 1935--Guth moves the entire Pepsi-Cola operation to Long Island City, New York, and sets up national territorial boundries for the Pepsi bottler franchise system.

1936--Pepsi grants 94 new U.S. franchises and year-end profits reach $2,100,000. 1938--Walter S. Mack, Jr., V.P. of Phoenix Securities Corporation is elected President of the PepsiCola Company. Mack, who considers advertising the keystone of the soft drink business, turns Pepsi into a modern marketing company. 1939--The "Pepsi & Pete" comic strip introduces the "Twice as much for a nickel" theme in newspapers. Pepsi-Cola Company names Mack as CEO. The Board of Directors removes Guth from the Pepsi payroll after he plans to personally acquire a competing cola. 1940--Pepsi-Cola Company makes advertising history with "Nickel, Nickel," the first advertising jingle ever broadcast nationwide on radio. 1941--The New York Stock Exchange trades Pepsi's stock for the first time. In support of the war effort, Pepsi's bottle crown colors change to red, white, and blue. 1943--Pepsi's theme line becomes "Bigger Drink, Better Taste." 1948--Corporate headquarters moves from Long Island City, New York, to midtown Manhattan. 1950--Alfred N. Steele becomes President and CEO of Pepsi-Cola. Mr. Steele's wife, Hollywood movie star Joan Crawford, is instrumental in promoting the company's product line. Pepsi receives its new logo, which incorporates the "bottle cap" look. The new logo is the fifth in Pepsi history. 1953--"The Light Refreshment" campaign capitalizes on a change in the product's formula that reduces caloric content. 1955--Herbert Barnet is named President of Pepsi-Cola. 1959--Pepsi debuts at the Moscow Fair. Soviet Premier Khrushchev and U.S. Vice President Nixon

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share a Pepsi. 1960--Young adults become the target consumers and Pepsi's advertising keeps pace with "Now it's Pepsi, for those who think young." 1962--Pepsi receives its new logo, the sixth in Pepsi history. The 'serrated' bottle cap logo debuts, accompanying the brand's groundbreaking "Pepsi Generation" ad campaign. 1963--After climbing the Pepsi ladder from fountain syrup salesman, Donald M. Kendall is named CEO of Pepsi-Cola Company. Pepsi-Cola continues to lead the soft drink industry in packaging innovations, when the 12ounce bottle gives way to the 16-ounce size. Twelve-ounce Pepsi cans are first introduced to the military to transport soft drinks all over the world. 1964--Diet Pepsi, America's first national diet soft drink, debuts. Pepsi-Cola acquires Mountain Dew from the Tip Corporation. 1965--Expansion outside the soft drink industry begins. Frito-Lay of Dallas, Texas, and Pepsi-Cola merge, forming PepsiCo, Inc. Military 12-ounce cans are such a success that full-scale commercial distribution begins. Mountain Dew launches its first campaign, "Yahoo Mountain Dew...It'll tickle your innards." 1970--Pepsi leads the way into metrics by introducing the industry's first two-liter bottles. Pepsi is also the first company to respond to consumer preference with light-weigh, recyclable, plastic bottles. Vic Bonomo is named President of Pepsi-Cola. The Pepsi World Headquarters moves from Manhattan to Purchase, NY. 1974--First Pepsi plant opens in the U.S.S.R. Television ads introduce the new theme line, "Hello, Sunshine, Hello Mountain Dew." 1976--Pepsi becomes the single largest soft drink brand sold in American supermarkets. The campaign is "Have a Pepsi Day!" and a classic commercial, "Puppies," becomes one of America's best-loved ads. As people get back to basics, Pepsi is there as one of the simple things in life. 1977--At 37, marketing genius John Sculley is named President of Pepsi-Cola.

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1978--The company experiments with new flavors. Twelve-pack cans are introduced. 1980--Pepsi becomes number one in sales in the take home market. 1981--PepsiCo and China reach agreement to manufacture soft drinks, with production beginning next year. 1982--Pepsi Free, a caffine-free cola, is introduced nationwide. Pepsi Challenge activity has penetrated 75% of the U.S. market. 1983--Mountain Dew launches the "Dew it to it" theme. 1984--Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a New Generation." Lemon Lime Slice, the first major soft drink with real fruit juice, is introduced, creating a new soft drink category, "juice added." In subsequent line of extensions, Mandarin Orange Slice goes on to become the number one orange soft drink in the U.S. Diet Pepsi is reformulated with NutraSweet (aspertame) brand sweetener. 1985--After responding to years of decline, Coke loses to Pepsi in preference tests by reformulating. However, the new formula is met with widespread consumer rejection, forcing the re-introduction of the original formulation as "Coca-Cola Classic." The cola war takes "one giant sip for mankind," when a Pepsi "space can" is successfully tested aboard the space shuttle. By the end of 1985, the New Generation campaign earns more than 58 major advertising and filmrelated awards. Pepsi's campaign featuring Lional Richie is the most remembered in the country, according to consumer preference polls. 1986--Chairman Donald M. Kendall retires and is succeeded by D. Wayne Calloway. 7-Up international is acquired in Canada. Pepsi-Cola acquires Mug Root Beer. 1987--Pepsi-Cola President Roger Enrico is named President/CEO of PepsiCo Worldwide Beverages. Pepsi-Cola World Headquarters moves from Purchase to Somers, New York. After a 27 year absence, Pepsi returns to Broadway with the lighting of a spectacular new neon sign in Times Square.

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1988--Craig Weatherup is appointed President/CEO of Pepsi-Cola Company. 1989--Pepsi lunges into the next decade by declaring Pepsi lovers "A Generation Ahead." Chris Sinclair is named President of Pepsi-Cola International. Pepsi-Cola introduces an exciting new flavor, Wild Cherry Pepsi. 1990--American Music Award and Grammy winner rap artist Young MC writes and performs songs exclusively for national radio ads for Pepsi. Ray Charles joins the Pepsi family by endorsing Diet Pepsi. The slogan is "You Got The Right One Baby." 1991--Craig E. Weatherup is named CEO of Pepsi-Cola North America, as Canada becomes part of the company's North American operations. Pepsi introduces the first beverage bottles containing recycled polyethylene terephthalate (or PET) into the marketplace. The development marks the first time recycled plastic is used in direct contact with food in packaging. 1992--Pepsi-Cola launches the "Gotta Have It" theme which supplants the longstanding "Choice of a New Generation." Pepsi-Cola and Lipton Tea Partnership is formed. Pepsi will destribute single serve Lipton Original and Lipton Brisk products. Crystal Pepsi: a refreshing, clear soda that is caffine free, has 100% natural flavors, no preservatives and is low in sodium, goes national. Mountain Dew introduces the popular theme line, "Get Vertical." 1993--Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi." Pepsi-Cola profits surpass $1 billion. Pepsi introduces an innovative 24-can multipack that satisfies growing consumer demand for convenient large-size soft drink packaging. "The Cube" is easier to carry than the traditional 24pack and it fits in the refrigerator. 1994--New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO Craig Weatherup explaining the relationship between freshness and superior taste to consumers. Pepsi Foods International and Pepsi-Cola International merge, creating the PepsiCo Foods and Beverages Company. 1995--In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in the year's national advertising championship.

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1996--In February of this year, Pepsi makes history once again, by launching one of the most ambitious entertainment sites on the World Wide Web. Pepsi World eventually surpasses all expectations, and becomes one of the most landed, and copied, sites in this new media, firmly establishing Pepsi's presence on the Internet. 1997--In the early part of the year, Pepsi pushes into a new era with the unveiling of the GeneratioNext campaign. GeneratioNext is about everything that is young and fresh; a celebration of the creative spirit. It is about the kind of attitude that challenges the norm with new ideas, at every step of the way. PepsiCo. announces that, effective October 6th, it will spin off its restaurant division to form Tricon Global Restaurants, Inc. Including Pizza Hut, Taco Bell, & KFC, it will be the largest restaurant company in the world in units and second-largest in sales. 1998--Pepsi celebrates its 100th anniversary. PepsiCo. Chairman and CEO Roger A. Enrico donates his salary to provide scholarships for children of PepsiCo employees. Pepsi introduces PepsiOne - the first one calorie drink without that diet taste! 2000--Although Pepsi is a great place to work, Steven Truitt (aka 'struitt') takes his skills and hard work elsewhere (for more money of course!), therefore putting an end to his Pepsi page! For more information about Pepsi, choose a search engine and search for 'Pepsi' or visit www.pepsi.com or www.pepsico.com. PEPSI COLA INTERNATIONAL HISTORY Caleb Bradham, a New Bern, N.C. druggist who first formulated the beverage, founded pepsi-Cola at the turn of the century. Today, Brand Pepsi and other Pepsi-Cola North America products including Diet Pepsi, Pepsi-One, Mountain Dew, Slice and Mug brands account for nearly one-third of total soft drink sales in the United States, a consumer market totaling about $56 billion. Pepsi-Cola beverages are available in about 170 countries. SETUP OF PEPSI COLA The head office is situated in New York (USA) with units operating in different regions of the world. These are called Business Units and Pakistan is in MENAPak (Middle East, North America and Pakistan). The head office of MENAPak is situated in Dubai (UAE). The local head offices for each country are situated in the respective capitals.

Haidri Beverages Pvt Ltd.

Executive summary
Beverage industry in the whole world is very well established industry and the same case in Pakistan. The major beverage companies are Pepsi Cola and Coca Cola and the emerging beverage industry is Amrat Cola. These industries develop their own marketing strategies to meet the requirement of their respective target market. As for as the Haidri beverages in Islamabad is concerned, it creates its monopoly in its target market which is based on Islamabad, Rawalpindi and the sub areas of these cities. Haidri beverages successfully fulfill the requirement of its target market. Haidri beverages believe in departmentalization in their office works and therefore they establish different department to achieve their respective tasks. There are different departments in the Haidri beverages like human resources department, management information system department, audit and taxation department, purchase department, production department, finance department, store management, shipping department, advertising department, marketing services department and marketing department. Each department is running under intellectual managers and there respective team of assistants. Human resources department in Haidri beverages has the major function is to mange the workforce. Recruitment and promotions are also done by this department. Personal record of each employee is maintained by this department. In this record each and every thing about the employee is recorded. This record is maintained both by manual system and computerized system. Employee selection, employee appraisal and leave records are also the part of this departments work. Different motivational tools for the employees are also managed by this department. Management information system department in Haidri beverages is one of the important departments of this company because it plays a role of integration. Its major task is to provide the services t other departments. Different reports of sale are generated by the management Information system department. Such reports are then taken by different departments. For this purpose MIS has developed its own software. Any department can get any type of report whether it is daily sale report, weekly sale report, monthly sale report or annually sale report. Similarly a soft ware is installed to each department and this soft ware is also made by the MIS. Any problem relating to the computer system in any department is handled by the management information system department.

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Audit and taxation department is dealt with the government taxes and duties which are imposed by the GOVT. Such taxes and duties are imposed on sale and purchases. All the records which are linked with taxation are managed by this department. Purchase department in Haidri beverages is dealt with the purchases of those items which are not only used in the production process but also deal in those items that are used with in the factory. But their main and continuous link is with the supplier of production items. Their main emphasis is on the price and quality. There is no compromise on the quality of the item and this is the main reason of the monopoly which is created by the Haidri beverages in its target market. This department negotiates with the supplier. Their main focus is to maintain a stable relationship with their supplier and to resist any kind of monopoly of supplier. For this purpose they have always more than one supplier of any particular item. Production is no doubt the main department of the any manufacturing industry. In Haidri beverages this department is run by skilled team. During production the focusing area is the quality control. Fro this purpose the production department has a well equipped laboratory in which tests are made on the syrup. Such tests are made normally after each half an hour and such continuous check system leave no doubt about the quality. The production capacity is also fulfilling the requirements of their target market. The production department, one is the production manager, who is the manager of the whole department and the one is the CO2 manager. The whole production plant is supplied the electricity by the generator of the company. Store management is the much difficult task in such a big manufacturing organization. To mange the store operations Haidri beverages developed a separate store department. In this department the record of each and every item is maintained. The most important task is to maintain the stock of each item. For each item that comes inside the store, a complete record is developed and similarly fro each item that goes outside of the store a record is maintained. Such records are not only made manually but also made through computerized system. All the items of the store have specific code. By entering the code in the software, the system gives full description of that particular item such as how much go out side of the store and hoe much remain with in the store. Store management includes from the management of the stationery which is used with in the offices to the sugar and other raw materials that are used in the production processes of different brands of Pepsi cola international. Shipping department in the Haidri beverages is concerned with two things, empty shipping and filled shipping. Both activities are run under same manager. Empty shipping is concerned with the 9

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empty bottles that are brought back from the shop keepers. There counting is then done and record is maintained. The other part of the department is the shipping of filled bottles. These bottles are shipped to different shopkeepers through distributors. For shipping purposes the company purchased or rented different vehicles. The labor who worked in this shipping process is almost all temporary waged labor. Advertising department in Haidri beverages is working on the reminding advertisement. All the mass media advertisement is made by the Pepsi cola international while the local advertisement is done by Haidri beverages. The local advertisement includes providing good looking displays to shops, to do paints in their shops and to create and then deliver different types of the pamphlets to the customers. But their main function is to provide nice display to the shops. For this, shop keeper requests for the sign board. Then different types of such boards are developed and then these boards are shown to the owner of the shop. The one which he likes is pasted on its shop with the advertisement of the Pepsi products. For such type of advertisement, mostly these shops are selected that are located in high commercial areas. Marketing services department is dealt with four major areas. R&D department Security Company signage RAC workshop

R&D set annual agreements with the distributors and verification of the distributors flow stock. They conduct meeting with the distributors. TOT(tools of trade) integrity survey is conducted in order to check whether the TOTs are properly used or not. R&D has to manage the different events and verify the advertising bills. Legal matters are also handled by the R&D department. In case of cross distribution they take action against the distributor who is selling the other soft drinks. Refrigerator air-conditioning workshop is the sub department of marketing services. Because it acts as after sale service department it is responsible for the maintenance of all the TOTs present in the market. When the retailer informs about the defect of his TOT then the technician with the RAC vehicle reach there and eradicate the fault. The major responsibility of the company signage is to check the billboards and signage whether they are in proper condition or not. If some billboard or signage is defective or there is some problem in the electricity the department will eradicate the fault. There is only one person in the

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company signage department. The company security is responsible for the security at the factory it checks the vehicles coming inside the factory or going outside the factory. The last one operation of this marketing department is to maintain the record of different sale reports. Such sale reports are daily, weekly, monthly or annually reports. As it is the strategy of Haidri beverages is to do its marketing through indirect distribution. For this purpose they have different distributors. One of the strengths of Haidri beverages is the indirect distribution. Its distribution network is very strong and fully controlled by the company. Haidri beverages have no doubt control over its distributor and also offer some different kinds of the discounts for the distributor. Among giving the discounts to the distributor, each distributor has given a sale target from Haidri beverages. This sales target will definitely help in maintaining the control over the distributor because in case of not achieving the target, the distributor has to bear the penalty. So in this case both discounts and sale targets are maintaining the relationships between the company and distributor. Haidri beverages search strong, experienced parties, devoted and loyal people. Basic requirement of them is financially strong people, devoted with product, loyal with company and involve in their business.

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Pepsi Cola International and its brief history:


Pepsi-Cola is the number one soft drink in the world. The company has operated continuously for over 40 years offering a range of quality products Pepsi, Diet Pepsi, Mirinda, 7UP, Diet 7UP, dew and Teem through a regional network of 27 exclusive Pepsi franchise bottlers. Pepsi-Cola formulated in 1898, Diet Pepsi (1964) and Mountain Dew introduced by Tip Corporation in 1948. History of Pepsi cola starts with a small drug store in North Carolina. This little store belonged to young chemist by the name of doc Bradham. He invented a drink that the customers called broad's drink. In 1903, Bradham got its drink registered formally by the name of Pepsi cola. He set his own company and kept its sales improving gradually. By 1909, more than 250 bottlers in different American states had been allowed to sell under the Pepsi cola license. Pepsi COLA was first sold in the standard size of 6.5 ounces. In 1932 PEPSI COLA took courage enough to introduce a bottle of 12 ounces. Pepsi started offering its soft drinks in cans in 1948. In 1950 reducing its sweetness and calories had changed the PEPSI COLAS formula and a new advertising campaign Refresh without filling had been launched effectively. Under the supervision of the attentive sales staff and the Marketing experts, Pepsi cola began setting new records of distinction. At 30 plants per year, new plants were established all across the globe. A new attractively designed bottle had been introduced in 1957 in place for the 20 years old bottle, and the product line had been enhanced to introduce the new flavors of team & mirinda. In 1963, a new low-calorie drink with taste of the Pepsi-Cola trademark was introduced. It was called Diet Pepsi. In 1964, Mountain Dew left its Mountain birthplace and joined the Pepsi-Cola family. In 1990 PepsiCo profits exceed $1 billion for the first time. In 1994 PepsiCo sales reach $30.4 billion. There are 470,000 employees worldwide, making PepsiCo the third largest employer. In 1995 Pepsi-Cola introduces "Nothing else is a Pepsi" theme line. In 1996 Pepsi-Cola introduces new advertising campaign with the theme "Generation Next." In 1997, Pepsi-Cola celebrates 100th Anniversary with first worldwide bottlers conference, held in Hawaii. The event is held during the same time as first bottler's conference. In 1999 Pepsi-Cola introduces two-liter plastic bottle with built-in "grip handle" that makes it easier to grip and pour." In 2000 PepsiCo sales are $20 billion and the company has 125,000 employees at year PepsiCo creates PepsiCo International, the business that will unite all international snack, beverage and food units in an effort to drive faster growth and improved profitability around the world. Pepsico already has a strong position in many markets around the world. In beverage, specifically it is either number one or two in some 60 countries. In the Middle East Pepsi Cola is the number one

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soft drink by far. Pepsi's marketplace experience, technical expertise and innovation capabilities reflect its market leadership. The year wise progress of Pepsi Cola International is: 1893--Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with many different soft drink concoctions; patrons and friends sample them at his drugstore soda fountain. 1898--One of Caleb's formulations, known as "Brad's Drink," a combination of carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" On August 28, 1898. Pepsi-Cola receives its first logo. 1906--Pepsi gets another logo change, the third in eight years. The modified script logo is created with the slogan, "The Original Pure Food Drink." 1910--The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina. 1920--Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy you." 1923--Pepsi-Cola Company is declared bankrupt and its assets are sold to a North Carolina concern, Craven Holding Corporation, for $30,000. 1928--After five continuous losing years, Megargel reorganizes his company as the National PepsiCola Company, becoming the fourth parent company to own the Pepsi trademark. 1933--By the end of the year, Guth's new Pepsi-Cola Company is insolvent. In a series of moves, he acquires Megargel's interest in the company, giving himself 91% ownership of Pepsi. 1934--A landmark year for Pepsi-Cola. The drink is a hit and to attract even more sales, the company begins selling its 12-ounce drink for five cents (the same cost as six ounces of competitive colas). The 12-ounce bottle debuts in Baltimore, where it is an instant success. The cost savings proves irresistible to Depression-worn Americans and sales skyrocket nationally. 1935--Guth moves the entire Pepsi-Cola operation to Long Island City, New York, and sets up national territorial boundaries for the Pepsi bottler franchise system. 1936--Pepsi grants 94 new U.S. franchises and year-end profits reach $2,100,000. 1939--The "Pepsi & Pete" comic strip introduces the "Twice as much for a nickel" theme in newspapers. Pepsi-Cola Company names Mack as CEO. 1940--Pepsi-Cola Company makes advertising history with "Nickel, Nickel," the first advertising jingle ever broadcast nationwide on radio. 1943--Pepsi's theme line becomes "Bigger Drink, Better Taste." 14

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1948--Corporate headquarters moves from Long Island City, New York, to midtown Manhattan. 1953--"The Light Refreshment" campaign capitalizes on a change in the product's formula that reduces caloric content. 1955--Herbert Barnet is named President of Pepsi-Cola. 1960--Young adults become the target consumers and Pepsi's advertising keeps pace with "Now it's Pepsi, for those who think young." 1962--Pepsi receives its new logo, the sixth in Pepsi history. The 'serrated' bottle cap logo debuts, accompanying the brand's groundbreaking "Pepsi Generation" ad campaign. 1963--After climbing the Pepsi ladder from fountain syrup salesman, Donald M. Kendall is named CEO of Pepsi-Cola Company. Pepsi-Cola continues to lead the soft drink industry in packaging innovations, when the 12-ounce bottle gives way to the 16-ounce size. 1965--Expansion outside the soft drink industry begins. Frito-Lay of Dallas, Texas, and Pepsi-Cola merge, forming PepsiCo, Inc. Mountain Dew launches its first campaign, "Yahoo Mountain Dew...It'll tickle your innards." 1970--Pepsi leads the way into metrics by introducing the industry's first two-liter bottles. Pepsi is also the first company to respond to consumer preference with light-weigh, recyclable, plastic bottles. 1974--First Pepsi plant opens in the U.S.S.R. Television ads introduce the new theme line, "Hello, Sunshine, Hello Mountain Dew." 1978--The Company experiments with new flavors. Twelve-pack cans are introduced. 1981--PepsiCo and China reach agreement to manufacture soft drinks, with production beginning next year. 1983--Mountain Dew launches the "Dew it to it" theme. 1984--Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a New Generation." 1987--Pepsi-Cola President Roger Enrico is named President/CEO of PepsiCo Worldwide Beverages. 1989--Pepsi lunges into the next decade by declaring Pepsi lovers "A Generation Ahead." 1990--American Music Award and Grammy winner rap artist Young MC writes and performs songs exclusively for national radio ads for Pepsi. Ray Charles joins the Pepsi family by endorsing Diet Pepsi. The slogan is "You Got the Right One Baby."

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1992--Pepsi-Cola launches the "Gotta Have It" theme which supplants the longstanding "Choice of a New Generation." Mountain Dew introduces the popular theme line, "Get Vertical." 1993--Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi." Pepsi-Cola profits surpass $1 billion. 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--In February of this year, Pepsi makes history once again, by launching one of the most ambitious entertainment sites on the World Wide Web. Pepsi World eventually surpasses all expectations, and becomes one of the most landed and copied, sites in this new media, firmly establishing Pepsi's presence on the Internet. 1997--In the early part of the year, Pepsi pushes into a new era with the unveiling of the GeneratioNext campaign. GeneratioNext is about everything that is young and fresh; a celebration of the creative spirit. It is about the kind of attitude that challenges the norm with new ideas, at every step of the way. PepsiCo. announces that, effective October 6th, it will spin off its restaurant division to form Trion Global Restaurants, Inc. Including Pizza Hut, Taco Bell, & KFC, it will be the largest restaurant company in the world in units and second-largest in sales. 1998--Pepsi celebrates its 100th anniversary.

Other Soft Drink Market in Pakistan


Coca cola Coca Cola Company begins operating in Pakistan in 1963. Coca cola brand for Pakistan are coca cola, fanta, sprite .the coca cola system in Pakistan operate through eight bottlers, four of which are majority owned by coca cola beverages Pakistan limited (CCBPL) .CCBPL plant are in Karachi, Hyderabad, Sialkot, Gujaranwala, Faisalabad, Raheemyarkhan, Multan & Lahore. The remaining two plants independently owned are in Rawalpindi & Peshawar. It employees consist of 1800 people. During the last two years, the coca cola system in Pakistan has invested over $130 million.

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Makka cola the creation of Makka cola was to create a profit making business which would have to relieve yaman suffering where actions is still possible the most intolerable and the most immediate suffering is that of the Palestine people. Amrat Cola Amrat cola was launched in Pakistan after the 9/11, and the Americas attacks on Afghanistan and Iraq. It successfully starts decreasing the sale of Pepsi because of the perception that the funds given by Pepsi Cola International are used against Muslims. And with in one year it got the market share of 22% in the Rawalpindi and Islamabad market. The major strength of the Amrat cola is their not returnable packages, which reduces the transportation cost. Because they dont need to go to the retailers for getting the empty bottles. Mehran bottlers Mehran bottlers pvt limited is one of the leading players in beverage industry of Pakistan.. Mehran bottler has the authority, franchise to produce at beverage market. Bubble up, lemon line flavors, apple sidra, vimto, lychee, cola1 having recently installed a high speed technologically advance system of reverse osmosis for water cleansing & treatment. The company has recently launched mineral water under the brand of vital

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PEPSI COLA IN PAKISTAN: Pepsi cola is also very popular in Pakistan thats why its market share is 90% in the soft-drink market. Pepsi Cola International, a remarkable name in the cola industry, doing its business in Pakistan through franchising.PCI has developed following bottlers in Pakistan till now. These franchises are located in Karachi Lahore Multan Faisalabad Gujranwala Peshawar Islamabad Sukkher Hyderabad

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Organization
Owner
Mr. Imran Khan Treen General Manager Mr.Mujeebullah Ch. G.M. Technical Mr.Muhammad Akhter ch. Assistant General Manager Mr.Robin Sadiq Human Resource Manager Marketing Services Manager Purchase Manager Shipping Manager MIS Manager Irfan Audit Manager Maqbool Finance Manager Ahmed Production Manager Co2 Manager
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Mr.Zulkifl Ejaz Maj. P.S. Tariq Mr.Shahid Insha Mr.sajid Sharif Mr.Muhammed Mr.Tariq Mr.Muhammed Mr.Amjad Javed Mr.Naveed Sadiq

Haidri Beverages Pvt Ltd.

Quality control manager Store Manager

Mr.Abdul rauf Mr.Jawad Ahmed

Rawalpindi zone 1 Rawalpindi zone 2 Malik Islamabad sheikh Out station 1 Pervaiz Mian Out station 2

Mr.Naseem Sial Mr.Abdul Ghafoor Mr.Imran Mr.Khalid

Mr. Tanveer

Hussain

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Mission
Pepsis' mission seems They make, sell and deliver beverages." But, in the competitive market, it provides an excellent service, favorite drink, strong external relationships and best business strategy. PepsiCos mission is to be the world's leader consumer Products Company focused on convenient foods and beverages. Pepsis attitude is expressed in their maintained vision which states: PepsiCos responsibility is to creating a better tomorrow than today.

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Vision
Their vision statement is We were number 1, we are number 1, and we will be number 1. Their collective success depends on their healthy balance strategies the organization's needs and the needs of their employees and their families. Like Enhanced career opportunities, Education and development, Medical, dental and prescription coverage Flexible spending accounts, Retirement, Life insurance, Vacation time, Disability, Tuition reimbursement, Scholarships, Matching charitable donations.

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Goal
Pepsi has remained focused on its singular mission: They make, sell and deliver beverages. They focus that they strive to be the best. In short, their vision is to transform their selves into the best-performing beverage company in the world through persistent focus on internal and external growth, shareholder value creation, and customer service and employee satisfaction. They recruit, hire, develop, reward and promote individuals who exhibit all of their core values; they offer competitive compensation

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and benefits that reflect Pepsis commitment to their employees and their families

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Introduction
Pakistan today has a very competitive beverages market. Opportunities for this industry to establish itself firmly in this country were gloomy at first because of the country's low per capital income and because of the business' status depending on consumer motion. . In 1965 Shamim Khan Tareen first got the franchise of 7-UP and established a production unit in Multan. They started producing and marketing 7-UP. In 1972 they also started producing Pepsi at the same plant. This is the only unit in the world that is producing both Pepsi and 7-UP at the same unit Due to increased consumption, marketing efforts, they built new units in Faisalabad, Lahore, and Gujranwala. It covered the whole southern region. Philip Morris Company, renowned for its tobacco products handled 7-UP brand. For the last 10 years Shamim and Co. has again taken over the franchise. primary goal is not to undermine the competition but to expand the market as a whole. Analysts believe the potential market in Pakistan is though to be enormous because the country's per capita consumption is as low as 14 bottles per year. In 1989 the current owner Mr. Imran Khan Treen purchased the franchise at that time it was only producing Pepsi, Team, and Mirinda. But in 2004 it successfully launched the new brand which is called "Mountain Dew". The area under the franchise is allocated by the Pepsi Cola International in which the company sells its products, manufactured under the licensed agreement. Different departments within the organization work together to achieve their respective goals as well as the goals of the organization as a whole.

ORGANIZATIONAL SETUP
Managing Director Mr Alamgir Khan Tareen General Manager Finance Mr Sohail Butt General Manager Technical

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Mr. Azmat Ullah Mir Manager Finance Mr. Sohail Butt Manager Sales Mr. Aamir Hameed Administration Manager Maj. (Retd.) Khalid Operations Manager Maj. (Retd.) Farooq
Human Resources Department
HRM department plays a vital role in each organization. Human resources department in Haidri beverages is headed by MR. Zulkifl Eijaz. HR department in Haidri Beverage performs the following functions. Workforce planning Specifying jobs and roles Recruitment Screening applicants Outsourcing Career development Benefits and compensation Leadership development Management development Personnel policies and records Employee Laws, Topics and Issues

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Diversity management Preventing violence in the workplace Ensuring safety at the workplace Performance appraisal Transfer and promotions

The transfer and promotion of the employee is based on all the information present in the personal file. Total employees in the Haidri Beverages are 850. Out of which 500 are permanent and the remaining are the temporary workers. In the summer season the number of the temporary workers increases, who are lay off at the end of the season. These temporary workers are usually unskilled and work as helpers.

Workforce

Permanent Workers

Temporary Workers

500

350

Management Information System Department

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The manager of MIS department is MR. Irfan, who is capable person and believes in team work. He creates a working team environment in his department. Under his supervision there are no designations within MIS department. Any body can be called to do any type of work. The manager himself is often engaged in doing little works. Management information system (MIS) department in the Haidri Beverages has the main function of integration. The main purpose of this department is to integrate different department with MIS department. It is basically a servicing department that provides services to production, shipping sales and other departments. MIS prepare different types of the reports, like daily reports, monthly reports and region wise reports. Each report has its own specific code. For example the codes of the reports are M075 M005 M037 Daily report Monthly report Region wise

The basic purpose is to provide support to the other departments in the form of providing reports to them and maintaining the soft wares which are installed in different department's computer systems. System problems are usually handled by the MIS in all departments.

Store
MR. Jawad is manager of store. The main tasks of his duty are to maintain the stock of each item that is used within factory. Records are also maintained of each item. The raw material and the other items used in different areas of the factory, like office stationery, vehicles spare parts, machines parts, and nut bolts are kept in the store. For each item a separate ledger is maintained. When that item is received or issued from the store, the respective entries are made on that particular ledger.

Purchase Department
Mr shahid, who is the manager of purchase department have no compromises on the prices ad the quality of the items which are used in the factory. His main duty is to deal with different suppliers and set the prices and quality of the items according to the standards which are made by the company. When store informs the purchase department about the purchase of a particular item, the

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purchase department gets information about the prices of desired items. At this level quotations are required by the department from its different suppliers. On receiving these quotations the selection of supplier is based on the low price and high quality. Another procedure is the negotiating the prices with the supplier. In this case the prices are settled at the desired level. After setting the prices, the order is placed to the supplier. When the goods are received their physical verification is done and in case of any shortage or poor quality product the respective supplier is informed. In this case the supplier has to bear the charges of shortages or low quality. In case of events like 14th August, Eids and festivals etc. 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.

Domestic and Foreign purchases


The purchases in Haidri Beverages are made from two sources; Domestic Markets Foreign Markets

Audit & Taxation Department:


In Haidri Beverages, audit is done annually. For the taxation purpose the taxes are implemented on the basis of the purchase. If purchases are made locally there will be a tax and if purchases are from the international market there will be no taxes.15% sales tax is implemented on the domestic sales. All the departments are being audited by the audit department. The audits are made according to the government laws. Records are maintained both manually and computerized. The revenue submission date to the bank is 15th of each month. When the audit is conducted by the government, the company has to present the invoices of purchase in order to get rebate on the foreign purchases. These items come under no tax category. Sales tax Sales tax is 15%. Excise duty is 12% which the company pays to the government.

Production Department
Production department is managed by the MR. Amjad who is really capable person. The capacity of the production is 90000 cases per day. Previous capacity of the plant was 70000 to 80000 cases per day. But this increase in the production capacity is due to the expansion of the production plant. More over demand of the products is also increasing day by day because of its brand that shows

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high quality and low price. In addition to this Haidri Beverages has established a canning plant having capacity of producing 2000 cases per day. This would be the second can plant in Pakistan after Karachi. The company is going to introduce its own mineral water which is called "Aquafina" and some flavors of juices which will further increase the capacity of the plant. 2 generators are there to support the continuous supply of the electricity to the plant. This supply of electricity is enough to meet the requirements of the plant Production staff Direct 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 Haidri Beverages 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 Mirinda Pepsi diet 7up 7up diet mountain dew

Advertising Department
Advertising is bringing a product (or service) to the attention of potential and current customers. Advertising is typically done with signs, brochures, commercials, direct mailings or e-mail messages, personal contact, etc. 32

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Major Methods of Advertising


Brochures or flyers -- Many desk-top publishing and word-processing software packages can produce highly attractive tri-fold (an 8.5 inch by 11-inch sheet folded in thirds) brochures. Brochures can contain a great deal of information if designed well, and become a common method of advertising. Direct mail -- Mail sent directly from you to your customers can be highly customized to suit their nature and needs. You may want to build a mailing list of your current and desired customers. Collect addresses from customers by noticing addresses on their checks, asking them to fill out information cards, etc. Keep the list on-line and up-to-date. Mailing lists can quickly become outof-date. Notice mailings that get returned to you. This should be used carefully and it can incur substantial cost, you don't want to inundate your stakeholders with information so make the most of your message. E-mail messages -- These can be wonderful means to getting the word out about your business. Design your e-mail software to include a "signature line" at the end of each of your e-mail messages. Many e-mail software packages will automatically attach this signature line to your email, if you prefer. Magazines -- Magazines ads can get quite expensive. Find out if there's a magazine that focuses on your particular industry. If there is one, then the magazine can be very useful because it already focuses on your market and potential customers. Consider placing an ad or writing a short article for the magazine. Contact a reporter to introduce yourself. Reporters are often on the look out for new stories and sources from which to collect quotes. Newsletters -- This can be powerful means to conveying the nature of your organization and its services. Consider using a consultant for the initial design and layout. Today's desktop publishing tools can generate very interesting newsletters quite inexpensively. Newspapers (major) - Almost everyone reads the local, major newspaper(s). You can get your business in the newspaper by placing ads, writing a letter to the editor or working with a reporter to get a story written about your business. Advertising can get quite expensive. News paper are often

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quite useful in giving advice about what and how to advertise. Know when to advertise -- this depends on the buying habits of your customers. Newspapers (neighborhood) -- Ironically, these are often forgotten in lieu of major newspapers, yet the neighborhood newspapers are often closest to the interests of the organization's stakeholders. On-line discussion groups and chat groups -- As with e-mail, you can gain frequent exposure to yourself and your business by participating in on-line discussion groups and chat groups. Note, however, that many groups have strong ground rules against blatant advertising. When you join a group, always check with the moderator to understand what is appropriate. Posters and bulletin boards -- Posters can be very powerful when placed where your customers will actually notice them. But think of how often you've actually noticed posters and bulletin boards yourself. Your best bet is to place the posters on bulletin boards and other places which your customers frequent, and always refresh your posters with new and colorful posters that will appear new to passers by. Note that some businesses and municipalities have regulations about the number of size of posters that can be placed in their areas. Radio announcements -- A major advantage of radio ads is they are usually cheaper than television ads, and many people still listen to the radio, for example, when in their cars. Ads are usually sold on a package basis that considers the number of ads, the length of ads and when they are put on the air. . A major consideration with radio ads is to get them announced at the times that your potential customers are listening to the radio. Telemarketing -- The use of telemarketing is on the rise. Television ads -- Many people don't even consider television ads because of the impression that the ads are very expensive. They are more expensive than most of major forms of advertising. However, with the increasing number of television networks and stations, businesses might find good deals for placing commercials or other forms of advertisements. Television ads usually are priced with similar considerations to radio ads, that is, the number of ads, the length of ads and when they are put on the air.

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Web pages -- You probably would not have seen this means of advertising on a list of advertising methods if you had read a list even two years ago. Now, advertising and promotions on the World Wide Web are almost commonplace. Businesses are developing Web pages sometimes just to appear up-to-date. Using the Web for advertising requires certain equipment and expertise, including getting a computer, getting an Internet service provider, buying (usually renting) a Web site name, designing and installing the Web site graphics and other functions as needed (for example, an on-line store for e-commerce), promoting the Web site (via various search engines, directories, etc.) and maintaining the Web site. Yellow Pages --The Yellow Pages can be very effective advertising if your ads are well-placed in the directory's categories of services, and the name of your business is descriptive of your services and/or your ad stands out (for example, is bolded, in a large box on the page, etc.). The phone company will offer free advice about placing your ad in the Yellow Pages. They usually have special packages where you get a business phone line along with a certain number of ads. Pepsi Cola International following the reminder advertising in order to remind the brand name to the customer. All the print and the electronic media ads are managed by the Pepsi Cola International. Where as the local and outdoor ads are managed by franchise organizations in their respective areas. Each franchised organization has to share with the PCI in these ads. In addition to this sharing each franchise organization has to contribute in the local sports events, festivals like eid. Haidri Beverages are usually concentrate on doing outdoor advertising which includes billboards, banners, signage etc. vehicles are also used as an advertising medium. Pamphlets are used in order to advertise different schemes which mostly launch on different occasions like Ramadan Scheme. This scheme heavily depends on the market conditions and the strength of the event. PCI has also some contribution in these schemes and ads. The skins of the billboards are usually given by the PCI.

Marketing Department
Marketing in Haidri beverages is based on indirect distribution. Products are sold to the distributor who than sale to the customer. For this purpose Haidri beverages has divided its target market in to different zones and each zone has its own unit manager. Similarly in each zone there is different number of the distributors. Sale targets are given by the Pepsi cola international to the Haidri

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beverages. These targets than divided among different zones by the Haidri beverages. Different kinds of the incentives are given on achieving their targets by Haidri beverages It has 77 distributors in all five units. Rawanpindi 1 Rawalpindi 2 Islamabad Outstation 1 Outstation 2 3 distributors 3 distributors 4 distributors 39 distributors 28 distributors

Haidri Beverages has a very strong distribution network in its entire area which is a competitive edge over the other cola manufacturers. They are following the strategy of achieving the organizational goal by providing satisfaction to the customers through their products. They dont Marketing services department has four sub-departments. R&D department Security Company signage RAC workshop

Research and development department has 6 officers who manage all the areas of Haidri Beverages (private) Ltd. For the marketing point of view the area is divided into 5 units whish are Rawalpindi cantt. Rawalpindi city Islamabad Zone 1 (Gujjar khan,Kahota,Murree,Kashmir) Zone2 (Attock,teila,Hazara division,Northern Areas)

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R&D set annual agreements with the distributors and verification of the distributors flow stock. They conduct meeting with the distributors. TOT integrity survey is conducted in order to check whether the TOTs are properly used or not. R&D has to manage the different events and verify the advertising bills. Legal matters are also handled by the R&D department. R&D department consists of 6 officers. Refrigerator air-conditioning workshop is the sub department of marketing services. Because it acts as after sale service department it is responsible for the maintenance of all the TOTs present in the market. When the retailer informs about the defect of his TOT then the technician with the RAC vehicle reach there and eradicate the fault. There are four vehicles that are for Islamabad Rawalpindi Outstation Complaint cell

RAC consists of following staff 1 Senior supervisor 1 Supervisor 4 technicians 9 helpers 4 drivers

The major responsibility of the company signage is to check the billboards and signage whether they are in proper condition or not. If some billboard or signage is defective or there is some problem in the electricity the department will eradicate the fault. There is only one person in the company signage department. The company security is responsible for the security at the factory it checks the vehicles coming inside the factory or going outside the factory. It also checks the loads on the vehicles and maintains their records and then it is presented to the marketing services department.

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Its staff consists of

1 chief security officer 4 security officers 23 security guards

The reporting system in the Haidri Beverages (private) Ltd is very distinctive. Four types of reports are prepared in marketing services department. Daily reports Weekly reports Monthly reports Annual reports

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Marketing:
I have done my internship in marketing department as the major functional area. First of all some different definitions of marketing: Marketing deals with identifying and meeting the human and social needs, one definition of marketing is "meeting needs profitability". "Marketing is a societal process by which individual and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others". For managerial definition, marketing has often been described" the art of selling products" but the people are surprised when they heard that the most important part of marketing is not selling! Selling is the only tip of marketing iceberg." Marketing is the wide range of activities involved in making sure that you're continuing to meet the needs of your customers and getting value in return. These activities include market research to find out, for example, what groups of potential customers exist, what their needs are, which of those needs you can meet, how you should meet them, etc. Marketing also includes analyzing the competition, positioning your new product or service (finding your market niche), pricing your products and services, and promoting them through continued advertising, promotions, public relations and sales The American marketing association offers the following definition of marketing. "Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy the individual and organizational goals".

Marketing is typically seen as the task of creating, promoting, and delivering the goods and services to consumers and businesses. Marketers are skilled in stimulating the demand for the company's products, but this is too limited a view of the task marketers perform just as production and logistics professionals are responsible for supply management, marketers are responsible for demand 40

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management. Marketing managers seek to influence the level, timing, and composition of demand to meet the organization's objective. Marketing people are involved in marketing of ten types of entities. Goods Services Experiences Events Persons Places Properties Organizations Information Ideas

What is Sale?
Sales involves most or many of the following activities, including cultivating prospective buyers (or leads) in a market segment; conveying the features, advantages and benefits of a product or service to the lead; and closing the sale (or coming to agreement on pricing and services). It appears that the attributes of strong leadership and effective selling have a tremendous amount in common. After all, to be really successful in sales, you need to be a leader, both within your own organization, as well as to your clients and customers. There are seven secrets to leadership, as they apply to leadership in selling: 1. "Unwavering Courage": Selling successfully requires courage; taking a risk where the odds may seem stacked against you; courage to make that extra call, to deal with the tough client or prospect, and to not let anything deter you. 2. "Self-Control": The ability to set a course for yourself and take disciplined action each day is a key attribute of all successful salespeople. 3. "A keen sense of justice": Knowing right from wrong - understanding what is fair and just allows you to make, wise informed decisions.

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4. "Definiteness of decision": Deciding on what you want to achieve, and then doing whatever it takes to get there, even in the face of obstacles and setbacks, is crucial to your success. 5. "Definiteness of plans": The successful leader must plan his work, and work his plan. Plan your time, and then take action on your plan each and every day. 6. "The habit of doing more than paid for": Want to sell more? Go the extra mile for your clients. Want to get the respect, admiration, and cooperation from your internal "clients" - the people you need to rely on to implement or help you close sales? Go the distance for them as well. 7. "A pleasing personality": Is selling a popularity contest? No, but would you buy something from someone who was nasty and rude? Sale of last year of haidri beverages was 10.7 million cases but the target was 10 million cases, this shows the efficiency of the company. Market share of different pepsi brands is given below.

Market Share of Pepsi Flavors

Flavor Pepsi Mirinda 7up pepsi diet 7up diet Mountain dew

market share 47.48% 7.20% 34.27% 1% 2.19% 7.74%

market share

pepsi mirinda 7up pepsi diet 7up diet mountain dew

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Target market and segmentation


A marketer can rarely satisfy everyone in the market. Therefore marketers start by dividing of the market. They identify and profile distinct groups of buyers who might prefer or require varying product and services mixes. Market segments can be identified by examining the demographics, psychographics, and behavioral differences among buyers. The marketers than decide which segment present the greatest opportunity, which are its target market. For each chosen target market, the firm develops the market offering. The offering is the position in the mind of the target buyers as delivering some central benefits.

Marketing channels
To reach a target market, the marketers uses three kinds of marketing channels;

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Communication channels Distribution channels Service channels

Communication channel
Communication channel delivers and receives the messages from the target buyers, and include the news paper, magazines, radio, television, mail, telephone, bill boards, posters, fliers, cds, audio tapes, and the internet. Beyond these communications, conveyed by the facial expression, clothing, the look of retail store and many other media.

Distribution Channel
The marketers use the distribution channels to display, sell, or deliver the physical products or services to buyers or users. They include Distributor Wholesalers Retailers Agents

Service channels
The marketers also use the servicing channel to carry out the transaction with potential buyers.

Methods of Distribution
Sales promotion can be directed towards: The ultimate consumer (a "pull strategy" encouraging purchase) The distribution channel (a "push strategy" encouraging the channels to stock the product). This is usually known as "selling into the trade" In marketing, sales promotion is one of the four aspects of promotion. (The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations.) Sales promotions are non-personal promotional efforts that are designed to have an immediate impact on sales. Sales promotion is media and non-media marketing communications employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include: coupons 44

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discounts and sales contests point of purchase displays rebates gifts and incentive items

what is distribution channel:


A distribution channel consists of a set of people and firms involved in the transfer of title to a product as the product moves from producer to ultimate consumer or business user.a channel of distribution always includes both the producer and the final customer for product in its present form as well as any middle men such as retailer or whole seller. There are two ways of distributions:

Direct Distribution Manufacturer Indirect Distribution Manufacturers Distributor Retailers Customers Retailers Customers

Distribution in Haidri Beverages


The distribution in haidri beverage is indirect. It has 77 distributors in all five units. Rawanpindi 1 Rawalpindi 2 Islamabad Outstation 1 Outstation 2 3 distributors 3 distributors 4 distributors 39 distributors 28 distributors

Area Allocation

Rawalpindi 1

Rawalpindi 2

Islamabad

Zone 1

Zone 2

Post Mix

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RAWALPINDI CANTT

SECTOR 1

SECTOR 2

SECTOR 3

Two Sales Officers

Two Sales Officers

Two Sales Officers

Rawalpindi city
UNIT MANAGER

SECTOR 4

SECTOR 5

SECTOR 6

Three Sales Officers

Five Sales Officers

Two Sales Officers

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Haidri Beverages has a very strong distribution network in its entire area which is a competitive edge over the other cola manufacturers. They are following the strategy of achieving the organizational goal by providing satisfaction to the customers through their products. They dont sell but market their product therefore they are the market leaders. As the pepsi and all pepsi brands are fast moving consumer goods, so it is necessary marketing decision of haidri beverages to select the in direct distribution channel. In this case the distributor takes the bulk amount of the product from the company. Usually the amount or the number of the items that are purchased by the distributor are dependent on the targets which are given to the by the haidri beverages. When the distributor takes the product, haidri beverages count and record its sale. Now its the matter of distributor to achieve the sale target. For this purpose the disrtubutor has the sale team that consists on the sale officers and sale men. The sale officer are under the haidri beverages while sale men are under the distributor. The target of sale that is given by the pepsi cola international to the haidri beverages is divided to the ground levels. It mean that this target is divided to among different sale zones. With in the zone these targets are divided among the unit mnagers than unit manager divided this target to its sale officer. Than sale officer divides the target among its sale men. So In this case the sale targets reaches to the ground levels. Selection criteria of the distributor: The selection of the distributor in hiadri beverages is heavily dependant on the financial condition of the distributor and the area which is selected by the distributor for its store. No doubt the store condition is also important for the selection criteria. The other factors are Number of sale men Number of loaders Number of vehicles Condition of vehicles Area to be covered by the distributor Amount of security in sense of money

All the points mentioned above are supposed to fulfill by the distributor. 47

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Some times the quotations are received by the haidri beverages in response to advertisement made by the company for hiring new distributor or some times the willing company itsel contact with the haidri beverages to become a part of its distribution team.

Why haidri beverages selects indirect distribution:


There are two major factors which are involved in the selection of in direct distribution by haidri beverages. These factors are Market consideration Product consideration

Market consideration for haidri beverages: As the pepsi and all its products are fast moving consumer goods so their market is obviously is large with large number of customers so it is beneficial for the haidri beverages to adopt the indirect distribution. Fro the whole target market of haidri beverages, it is not advisable to select the direct distribution. In case of direct distribution the company has to provide the products at the door step of its customer which are retailers actually. Similarly the geographic size of the market also affects the selection of distribution method. As the market of haidri beverages is much large so it is better to adopt indirect distribution. More over the customers are dispersed among different areas so to give distribution to different people is right decision. Product consideration for haidri beverages: From product consideration point of view there are three reasons to select the in direct distribution: Unit value Perish ability Technical nature

Because the unit value of the pepsi is low so it is not advisable for the company to sell its products own. By choosing the indirect distribution the unit cost of the product definitely becomes low. Similarly the perish ability and technical nature of the product affects the distribution method selection. As to store the product prior the sale is very difficult and expensive, specially in case of pepsi products that are actually syrups, haidri beverages selects indirect distribution. 48

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Three major categories of distribution: Intensive distribution: Under intensive distribution, a product sells its products through every available outlet in the market where a consumer might reasonably look for it. Ultimate consumers demand immediate satisfaction from convenience goods and will not defer purchase to find a particular brand. Selective distribution: In selective distribution, a producer sells its product through multiple, but not all possible, whole seller and retailers in market where a consumer might reasonably look for it. Selective distribution is appropriate for consumer shopping goods and business accessory equipment. Exclusive distribution: Under exclusive distribution, the supplier agrees to sell its product only to single wholesaling middlemen and/or retailer in a given market. At the whole sale level, such arrangement is known as the exclusive distributorship and at the retail level it is known as exclusive dealership

The distribution category in haidri beverages:


In haidri beverages the distribution category is intensive distribution. It is because the pepsi and pepsi products are fast moving consumer goods. Such goods require a strong supply. And strong supply definitely require intensive distribution. The main purpose to adopt the intensive distribution by haidri beverages is the availability of their products. They believe in the continuous availability of their products. That is why they selects the indirect distribution network. The sale men and the sale officers are responsible to maintain the sale in their respective sale. And this maintenance is occurred only when there is continuous supply.

Control over the distributor:


One of the strengths of haidri beverages is the indirect distribution. Its distribution network is very strong and fully controlled by the company. Haidri beverages have no doubt control over its competitor and also offer some different kinds of the discounts for the distributor. Among giving the discounts to the distributor, each distributor has given a

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sale target from the haidri beverages.

This sales target will definitely help in

maintaining the control over the distributor because in case of not achieving the target, the distributor has to bear the penalty. So in this case both discounts and sale targets are maintaining the relationships between the company and distributor.

Marketing Concept:
The marketing concept holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than do competitors. The marketing concept has been stated in colorful ways such as, WE MAKE IT HAPPEN FOR YOU (Marriott) TO FLY, TO SERVE (British Airways) WE ARE NOT SATISFIED UNTIL YOU ARE (General electric) CHOICE OF THE NEXT GENERATION (Pepsi) "DIL HO TO MANGO AUR" (Pepsi)

Marketing concept suggests that to be more profitable an organization must satisfy consumer needs and wants.

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Marketing Mix
The role and importance of each element of the mix are identified. The Marketing Mix consists of Product, Price, Promotion and place (channel of distribution)

Product Product variety Quality Design Brand name Packaging Sizes Services Target Customers

Price List price Discount Credit Allowance

Promotion
Advertising Sales promotion Print media Sponsors Mobiles Posters Banners

Place
Channels Coverage Locations Inventory Transportation Logistics

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Product Product means the goods-and-services combination the company offers to the target market. Thus, Pepsi Cola product consist of cold drink, its packaging, bottling, its caps, ingredients and 100% energizing and thousand of other products. The services include its clean bottles its hygiene factor and the way the dealer gives to the customer. Product planning is basically done on three levels; Core product Actual product Augmented product

As for the core product is concerned in pepsi and pepsi products, this is the chill and taste that are actually bought y the customer. Specially in summer, when people are tired by the hot weather, they prefer to take those things that provide them a feel of chill. And a good taste is an additional benefit that customer can take from the product. The actual product is the syrup that is kept with in the glass or plastic bottle. This is the thing which is bough and touched by the customer. Customer can not only feel it but also see it, take it or drink it. The quality of the product can be checked by its taste. The brand name pepsi and other brands of pepsi team, their packaging, their features and designs all combined to give a shape to actual product. Augmented product is the service through which these bottles are supplied to the retailer. Any kind of discount scheme is also part of augmented product. Stock Keeping Units (SKUs)

Package
250ml 1litre glass 1 litre pet 1.5 litre pet 2.25 ltr pet 250ml N/R 330ml Can

Pepsi

Pepsi diet -

7up

7up diet -

mirinda

Team -

M.Dew -

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Haidri beverage is producing 35 stock keeping units in Pakistan including the mineral water which is called acquafina. Price The price of a single 250ml bottle of Pepsi in the market is Rs.10.00 The price of a single 1 liter bottle of Pepsi in the market is Rs.25.00 The price of a single 1500ml bottle of Pepsi Cola in the market is Rs.45.00 The price of the bottle is very reasonable as compared to the other drinks with respect to quality. Overall people are satisfied with its pricing policy and its quality

Package 250ml 1 litre glass 1 litre pet 1.5 litre pet 2.25 litre pet 250ml N/R Can 330ml

Retail and consumer prices Trade price/case Trade price/unit Rs. Rs. 194 8.083 276 23 140 23.33 225 37.5 188 47 126 10.5 210 17.5

Consumer price/unit Rs. 10 25 25 40 50 12 20

The price of the bottle is very reasonable as compared to the other drinks with respect to quality. Overall people are satisfied with its pricing policy and its quality. Quality is no doubt the main factor in analyzing the price from the point of view of the customer. Customer first checks the price and then analyzes the product quality. Haidri beverages set the prices at the level that are acceptable for the customer. Although the retailer do not sell the bottle on the price which is decided by the company but the company sell the case of bottles in discount to the distributor. Such types of discounts are called trade discounts which are offered the distributor in order to perform the storing and selling the product.

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Promotion Promotion includes all of the tools available to the marketer for 'marketing communication'. Marketing communications has its own 'promotions mix.' Think of it like a cake mix, the basic ingredients are always the same. However if we vary the amounts of one of the ingredients, the final outcome is different. It is the same with promotions. We can 'integrate' different aspects of the promotions mix to deliver a unique campaign. personal selling Sales promotions Public relations Direct mail Trade show and exhibitions Advertising Sponsorship The elements of the promotions mix are:

Haidri beverages, main focus is given on the local advertising with respect to the promotion. Pepsi spend almost 1million each year on advertisement to tell people about their new schemes and prices. Execution of the scheme is carried out by the own plants in Pakistan. These all are the part of its strategic planning .The location of the plants are as under:-Peshawar, Islamabad, Gujranwala, Lahore, Faisalabad, Sukker, Hyderabad, Multan and Karachi. Every plant has its own franchised area which is demarked by district and tehsil boundaries.

Advertising: Advertising is any paid form of non personnel presentation and


promotion of ideas, goods or services by an identified sponsor. Advertisers include not only business firms but also museums, charitable organizations and government agencies that direct messages to target publics. Ads are cost effective way to disseminate people. Organizations handle advertising in different ways, in small companies advertising is handled by someone in sales or marketing department who works with an advertising agency. A large company will often setup its own department, whose manager reports to the vice president of marketing. The advertising department's job is to propose a budget; 54

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developed advertising strategy approved ads and complains; and handles direct mail, advertising, dealer displays and other forms of advertising. Setting the advertising objectives The advertising objectives must flow from the prior decisions on target market, market positioning and marketing mix. Advertising objectives can be classified according to whether their aim is to inform persuade, remind or reinforce. Informative advertising It aims to create awareness and knowledge of new products and new features of existing advertising. Persuasive advertising It aims to create liking, preference, conviction, and purchase of a product or service. Reminder advertising It aims to stimulate repeat purchase of products or services. Reinforcement advertising It aims to convince current purchaser that they made the right choice. Pepsi Cola International following the reminder advertising in order to remind the customer the brand name. All the print and the electronic media ads are managed by the Pepsi Cola International. Where as local and the outdoor ads are managed by franchise organizations in their respective areas. Each franchised organization has to share with the PCI in these ads. In addition to this sharing each franchise organization has to contribute in the local sports events, festivals like eid. Haidri Beverages are usually concentrate on doing outdoor advertising which includes billboards, banners, signage etc. vehicles are also used as an advertising medium. Pamphlets are used in order to advertise different schemes which mostly launch on different occasions like Ramadan Scheme. This scheme heavily depends on the market conditions and the strength of the event. PCI has also some contribution in these schemes and ads. The skins of the billboards are usually given by the PCI. Selection of the location for the billboard and signage

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Haidri Beverages is usually using the outdoor advertising because the print and the electronic advertising are managed by the PCI. Therefore they are only concerned with the billboards and the signage in their respective. But they have to consider various factors before installing a billboard or signage. For the billboard the main traffic areas are selected where the view is greater and the frequency of seeing that billboard is high. The skins for these billboards are usually provided by the Pepsi Cola International. The signs are usually fitted at the retail outlets in the markets. But that retailer should have the god record of selling the Pepsi and its other brands. Process First the owner of the outlet asks the sales officer of that area that he want to have the signboard of Pepsi. Then sales officer informs the advertising department and the advertising department see the location and analyze whether it would be beneficial for them to fit a signboard at that outlet if it is feasible then the advertising department orders the manufacturer of the signboard to prepare the designs for that particular outlet and they prepare the design then it is approved by the advertising manager and then the sign boards are installed. The advertising budget is considered before installing the signage. And it is approved by the AGM who is the head of all the marketing and advertising departments. Regional budgets There are five regions of the Haidri Beverages (private) Ltd. The advertising budget is divided according to the requirements of these five regions or zones. The meetings are held with the managers of each zone in order to know about their advertising needs. Place After all the promotion the last thing is the place or where to market the product. So the company according to the geographic segmentation places their product in the market. If the promotion offer is for the Cricket then the company tries to market their product in those areas where people plays cricket to a large extent. For example in the 1996 world

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cup cricket the company marketed its product where there are cricket stadiums because people use to drink Pepsi after the match or in the lunch break.

Marketing services:
Marketing services as a sub department of marketing has four other departments; R&D department Security Company signage RAC workshop

Research and Development Research and development department has 6 officers who manage all the areas of Haidri Beverages (private) Ltd. For the marketing point of view the area is divided into 5 units whish are Rawalpindi cantt. Rawalpindi city Islamabad Zone 1 (Gujjar khan,Kahota,Murree,Kashmir) Zone2 (Attock,teila,Hazara division,Northern Areas)

R&D set annual agreements with the distributors and verification of the distributors flow stock. They conduct meeting with the distributors. TOT integrity survey is conducted in order to check whether the TOTs are properly used or not. R&D has to manage the different events and verify the advertising bills. Legal matters are also handled by the R&D department. In case of cross distribution they take action against the distributor who is selling the other soft drinks. The major function of the R&D department is to conduct the surveys which includes the Brand availability survey Post mix evaluation survey

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Staff

Sales force attitude survey Stock taking survey Frequency of visit survey Salesman's behavior survey

6 R&D officers

RAC workshop Refrigerator air-conditioning workshop is the sub department of marketing services. Because it acts as after sale service department it is responsible for the maintenance of all the TOTs present in the market. When the retailer informs about the defect of his TOT then the technician with the RAC vehicle reach there and eradicate the fault. There are four vehicles that are for Staff 1 Senior supervisor 1 Supervisor 4 technicians 9 helpers 4 drivers Islamabad Rawalpindi Outstation Complaint cell

Company signage and security: The major responsibility of the company signage is to check the billboards and signage whether they are in proper condition or not. If some billboard or signage is defective or there is some problem in the electricity the department will eradicate the fault. There is only one person in the company signage department. The company security is responsible

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for the security at the factory it checks the vehicles coming inside the factory or going outside the factory. It also checks the loads on the vehicles and maintains their records and then it is presented to the marketing services department. Staff Reporting system: The reporting system in the Haidri Beverages (private) Ltd is very distinctive. Four types of reports are prepared in marketing services department. Daily reports Daily reports includes Daily sales report Daily activity R&D report Daily issuance report of TOTs Company signage report Weekly report Weekly reports includes Company signage report TOTs issuance report R&D activity report Security report Monthly reports Monthly reports includes Weekly reports Monthly reports Annual reports Daily reports 1 chief security officer 4 security officers 23 security guards

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Stock taking base market report TOTs issuance report RAC workshop report Missing TOTs report Company accommodation report

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All brands of Pepsi Cola in the world

Pepsi-Cola Caffeine Free Pepsi Diet Pepsi Caffeine Free Diet Pepsi Pepsi Twist (regular & diet) Wild Cherry Pepsi Pepsi Blue Pepsi ONE Pepsi Vanilla Diet Mountain Dew Mountain Dew Code Red Diet Mountain Dew Code Red Mountain Dew LiveWire Mountain Dew Blueshock Mountain Dew AMP energy drink Mug Sierra Mist (Regular & Diet) Slice Lipton Brisk (Partnership) Lipton Iced Tea(Partnership) Dole juices and juice drinks (License) FruitWorks juice drinks Aquafina purified drinking water

Frappuccino ready-to-drink coffee (Partnership) Starbucks DoubleShot (Partnership) SoBe juice drinks, dairy, and teas SoBe energy drinks (No Fear and Adrenaline Rush)Outside North America Mirinda 7UP (International) Pepsi Limon Kas Teem Pepsi Max Pepsi Light Manzanita Sol Paso de los Toros Fruko Evervess Yedigun Shani Fiesta D&G (License) Mandarin (License) Radical Fruit

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Role of Pepsi Cola Company in soft drink market


It develops new business opportunities and builds strong partnerships with customers. It maximizes opportunity with new and existing customers. It generates partnerships with its customers leading to long term business success. It gained organizational alignment to deliver against customer needs through strategic planning. It Achieve Financial Targets, Marketplace Plan and Promotions that build brand development and maximize brand performance. Its specialized activities that return self motivation, initiative, independence and strong interpersonal skills. Its Strong strategic planning experience.

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HR Department:
HRM department plays a vital role in each organization. The HR department in Haidri Beverage performs the following functions. Workforce planning HR department is responsible for the workforce planning. It has the records of the employees, the current needs of the organization and its future needs all these functions are performed by HR department in Haidri. Specifying jobs and roles When the new employees are hired the HR department specifies the job and the role of the new employee in the organization which he will play in the future. In other words job specification and job description is done by HR department Recruitment A very important function of the Hr department is recruitment. Ads are given by the HR department in the newspapers and in the magazines. Screening applicants When the HR department receives C.Vs then short listing of the candidates is done by the HR department and the selected candidates are called for interview. Outsourcing The services received from the persons who are not the regular employees of the organization are called outsourcing which is managed by HR department. Career development career development is the important function of the HR department because all the training programs are initiated by this department and therefore it plays a vital role in career development. Benefits and compensation

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All the payroll of the entire organizations is prepared by the HR department. And all the benefits and compensation in case of high performance is given by this department. Leadership development A competitive leadership is the core for the organization to be in the right direction. Therefore the leadership development plays a vital role for the corporate growth. And all this is managed by HR department. Management development Management is to do the right things in the right manner and at the right time, this is the essence of management, and all the developments in management are due to the HR. Personnel policies and records Leave records are maintained by the HR department. Each employee has to fill a specific leave form and get it signed from the departmental head. Then this from is submitted to the admin office. After submission this from is signed by the HR manager. At this end the leave approves. In the leave form, the nature of leave must be mentioned. Although the leave records are maintained as data base on the computer but manual records are also maintained by the HR staff. Now this leave record is transferred to the personal file of that employee. A personal file of each employee is maintained which includes all the records of the employee. The specifications of personal file are Joining report Joining approval by GM Leave records Attendance records

The transfer and promotion of the employee is based on all the information present in the personal file.

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One of the main functions of the HR department is to maintain the attendance records. Executive attendance is confirmed at the gate. The admin staff marks its attendance themselves. The attendance of the sale staff is maintained by the unit manger and it is readily transfer to the HR department. Motivation and performance appraisal Motivation and performance appraisal is usually done by the immediate supervisor. Bonuses are one of the major tools for the motivation. Incentives are given to the sales staff for their encouragement and increasing sales. Employee Laws, Topics and Issues All the internal Laws and policies regarding employees are made by the HR department and all the issues of employees are handled by the HR deptt. Diversity management One of the major challenges today's management face is diversity. Therefore HR department plays a vital role in managing diversity because workers are from far off places and managing workforce diversity is a difficult job. Preventing violence in the workplace Due to the good policies of the Haidri Beverage there are no unions and the HR department is providing the peaceful working environment to the employees by preventing the violence. Ensuring safety at the workplace Providing safe working environment to the employees in the responsibility of the HR department and it has a check over it. Particularly employee's safety is ensured in the production department in order to avoid the loss.

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Employee performance management HR department work scientifically in order to increase the performance of the employees different motivational tools are used to increase the performance of the employee. And the performance appraisal is done by the immediate supervisor. Transfer and promotions All the transfer and promotion decisions are made by the HR department. But in case of senior manager a meeting is conducted and the decision is made whether to promote or not.

Management Information System Department:


The functional support role The business processes and operations support function is the most basic. It involves collecting, recording, storing, and basic processing of data. Information systems support business processes and operations by:

recording and storing sales data, purchase data, investment data, payroll data and other accounting records processing these accounting records into income statements, balance sheets, ledgers, management reports, and other forms of financial information recording and storing inventory data, work in process data, equipment repair and maintenance data, supply chain data, and other production/operations records recording and storing personnel data, salary data, employment histories, and other human resources records processing these human resources records into employee expense reports, and performance based reports recording and storing business intelligence data, competitor analysis data, industry data, corporate objectives, and other strategic management records use of all the above to implement, control, and monitor plans, strategies, tactics, new products, new business models or new business ventures 67

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Management information system (MIS) department in the haidri Beverages has the main function of integration. The main purpose of this department is to integrate different department with MIS department. It is basically a servicing department that provides services to production, shipping sales and other departments. MIS prepare different types of the reports, like daily reports, monthly reports and region wise reports. Each report has its own specific code. Operations in MIS MIS services with respect to store The service which is provided to the store by the MIS department is. The soft ware which is made in oracle is developed by the MIS department. Any type of error, which occurs in this software are also handled by the MIS department. In the store, there is a need of one more computer. Moreover the current computers should be up graded. It is because of the data base which is too heavy and to maintain such data is difficult by these low processing computers. Some times it will be difficult to get previous data again; in this case MIS provides different solutions to the store.

Store:
The raw material and the other items used in different areas of the factory, like office stationery, vehicles spare parts, machines parts, and nut bolts are kept in the store. For each item a separate ledger is maintained. When that item is received or issued from the store, the respective entries are made on that particular ledger. Receipt register In this register, all the material received by the store is recorded. A requisition slip is given by that department that requires a particular material. This slip is entered in the store and by checking the level of that particular material issued that material to the respective department. At the end this issuance is recorded by the store both by manual and computerized system. More than 10000 items are maintained by the store. Echo item category has its own code number. Store has to maintain the minimum level of inventory at least for 4 days. The lead time for purchasing from the local market is from 3 to 4 days and from the international market is from 8 to 10 days. Bin cards 68

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Bin cards are used for the issuance. Entries are made on these bin cards against which the material is issued. This issuance of the material is also entered in to the computerized system that also checked the manual record. The computerized and manual systems are check of each other and minimize the chances of mistake. Purchase order When a particular item is short in the store, a purchase order is made by the store head and sent to the purchase department. Then a purchase order is given by the departmental head to its different suppliers. Goods verification report When the order is received there are three documents against which the entry is made in the store. These three documents are Builty Delivery challan Invoice

At the receiving of that particular item in the store, the physical verification and laboratory testing (in production items) is done. After this verification, purchase department confirms it and the goods are sent to the store. Entries are made in the store against builty, delivery challan and invoice and then these documents are sent to the accounts department. TOT's( Tools Of Trades) Tools of trades which are an essential part of sales efforts are also maintained by the store. These TOTs includes deep freezer and visi cooler. Goods receipt report Goods receiving report is prepared by the store on receiving material. These reports are maintained on daily basis. Account department is also has a check on these reports on daily basis.

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Goods issuance report The second report prepared by the store is the goods issuance report. It contains all the information about the goods issued from the store. This report is prepared daily, weekly and monthly basis.

Purchase Department:
As oppose to its meaning the root purpose of the purchase department is savings. Purchase department is very important because it has to get the cost efficiency. Haidri Beverages does not rely on one supplier because it will create the monopoly of that supplier that creates problems for the company. To avoid such kind of monopoly of the supplier, company always prefers to have more than one supplier in their supplier list. Purchasing process When store informs the purchase department about the purchase of a particular item, the purchase department gets information about the prices of desired items. At this level quotations are required by the department from its different suppliers. On receiving these quotations the selection of supplier is based on the low price and high quality. Another procedure is the negotiating the prices with the supplier. In this case the prices are settled at the desired level. After setting the prices, the order is placed to the supplier. When the goods are received their physical verification is done and in case of any shortage or poor quality product the respective supplier is informed. In this case the supplier has to bear the charges of shortages or low quality. In case of events like 14th August, eids, festivals etc. 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 Haidri beverages have both local and international suppliers of glass and pet bottles who are approved by the Pepsi Cola International. These are JILANI karachi Standard manufacturers Lahore

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Burhani Spell packages Lahore Crystal eye Lahore Ghani glass Peshawar Concentrate from PCI

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 Haidri 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 Haidri Beverages 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, as the can plant has been imported from Germany.

Audit & Taxation Department:


In haidri Beverages, audit is done annually. For the taxation purpose the taxes are implemented on the basis of the purchase. If purchases are made locally there will be a tax and if purchases are from the international market there will be no taxes.15% sales tax is implemented on the domestic sales. All the departments are being audited by the audit department. The audits are made according to the government laws. Records are 71

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maintained both manually and computerised.The revenue submission date to the bank is 15th of each month. When the audit is conducted by the government, the company has to present the invoices of purchase in order to get rebate on the foreign purchases. These items come under no tax category. Sales tax Sales tax is 15%. Excise duty is 12% which the company pays to the government. Types of taxes Haidri Beverages has to pay two types of taxes. Input tax Output tax

In put 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 is implemented on the sales. At the end the tax is calculated as Output tax input tax = actual tax which has to be paid

Production Department:
Production is like a back bone in any manufacturing organization. In haidri Beverages the main production materials are Sugar Concentrates Water Ammonia etc Co2

All the raw material which is used in the production process is approved by the Pepsi cola international. These materials should be according to the standards of the PCI. If in any case the material does not match with the standards haidri beverages has a right to return it to the supplier. In this case the entire cost of the material has to bear by the

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supplier. This strong check on the material is because of maintaining the high quality in the products which is the credentials of the Pepsi cola products. The basic ingredients of Pepsi with caffeine and without caffeine are given below:

Pepsi with caffeine contains Carbonated water, high fructose corn syrup and/or sugar, Calories Total Fat (g) Sodium (mg) Potassium (mg) Total Carbohydrates 10 0 0 25 10

27 (g) Sugars (g) 27 Protein (g) 0 Caffeine (mg) 25 Caramel color, phosphoric acid, caffeine, citric acid and natural flavors

Pepsi without caffeine Contains Carbonated water, high fructose corn syrup and/or sugar, caramel color, phosphoric acid, citric acid and natural flavors Calories Total Fat (g) Sodium (mg) Potassium (mg) Total Carbohydrates (g) Sugars (g) Protein (g) Caffeine (mg) 10 0 0 25 10 27 27 0 0

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Pepsi diet with caffeine Contains Carbonated water, caramel color, aspartame, phosphoric acid, potassium benzoate (preserves freshness), caffeine, citric acid and natural flavors Calories Total Fat (g) Sodium (mg) Potassium (mg) Total Carbohydrates (g) Sugars (g) Protein (g) Caffeine (mg) 0 0 2 5 2 0 0 0 0 2 4

Pepsi diet without caffeine Contains Carbonated water, caramel color, aspartame, phosphoric acid, potassium benzoate (preserves freshness), citric acid and natural flavors Calories Total Fat (g) Sodium (mg) Potassium (mg) Total Carbohydrates (g) Sugars (g) Protein (g) Caffeine (mg) 0 0 2 5 2 0 0 0 0 0

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Quality control Quality control is the basic organizational objective of Haidri Beverages. 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 half an hour. These samples are tested according to the PCI standards Reports Production department maintains following reports; Invoicing of raw material quality report syrup production report

Production process The production starts with the empty wash department where the empty bottles are washed with detergents so that the syrup can be filled into these bottles. Then second department in the production is syrup preparation department where the syrup pf different flavors ids prepared then the empty bottles are filled with the syrups at this stage water and co2 is mixed with the syrup and crowns are fitted on the bottles then these bottles are put into the plastic shells where these are transferred to the stock. Packages The packages available in Pepsi are 250 ml (single serving returnable glass bottle) 1000ml (multi serving returnable glass bottle) 1.5 liter (multi serving non returnable bottle) 2.25 liter (jumbo pack) N/R 250 ml (single serving non returnable bottle) Can 330 ml

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SWOT analysis
Is a technique used by managers to analyze these factors? Its planning exercise identifies organizational strengths, weaknesses, opportunities, and threats. Based on SWOT analysis managers are capable of implementing the best strategies to achieve its organizations mission and goals

SWOT analysis of Haidri Beverages


Strength Well-developed strategy:

Haidri beverages recognize right time and place for their product; therefore, their strategy makes room for adjustments. For this purpose their marketing department is headed by a skilled manager who is assisted by the skilled unit managers. This will definitely makes a competitive sale team. In haidri beverages the marketing manager is discussing the marketing decisions with unit manager. The target is divided among each unit manager. Than this target is divided among sale officers who give the targets to their respective sale men .This target setting strategy definitely gives haidri beverages a competitive edge. Brand name reputation:

One of the major advantages that Pepsi cola have over its rival soft drink in the Pakistan market is that, it is the global brand and have done strong advertising and promotion internationally Its Cola flavor, no caffeine, black color, includes gas, unique taste, attractive logo etc are its strength. People prefer any brand of Pepsi to other soft drinks brands. Haidri beverages create its monopoly in the Islamabad and Rawalpindi market through its strong marketing decisions. This brand awareness is made by the pepsi cola international and is enjoyed and maintained by the haidri beverages. They are trying their best to make possible the supply at each and every corner of their target market. More 78

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over strong and timely supply of the products also create good reputation of the brands of pepsi. Strong distribution network:

One of the strengths of haidri beverages is the indirect distribution. Its distribution network is very strong and fully controlled by the company. Haidri beverages have no doubt control over its competitor and also offer some different kinds of the discounts for the distributor. Among giving the discounts to the distributor, each distributor has given a sale target from the haidri beverages. This sales target will definitely help in maintaining the control over the distributor because in case of not achieving the target, the distributor has to bear the penalty. So in this case both discounts and sale targets are maintaining the relationships between the company and distributor. Good marketing skills and Grasp market region

Pepsi is now a days working on this concept because they want to increase their market share. They are providing quality products to the customers that include their services and products. They maintain their quality which includes the hygiene factor and their packing. They mostly keep a check on the dealers to maintain the quality which increase their productivity. They full fill the demands of the consumers by offering different scheme and by reducing prices. They also give incentives to their dealers. Pepsi Cola control soft drink market. Their success can be attributed to their overall strategy to produce and promote their products Differentiation advantage

This is only factory in Pakistan, which use air curtains .all production plant is covered up. There is no open space in production plant. 100% hygienic factory exists in Islamabad which has high speed pillars .24 hours filling in factory. Their production capacity is sufficient for their target market. Working 24 hours, factory does not rely on wapda electricity. Instead of this company operates through its own generator. The capacity of this generator is much to provide the electricity to a hole town.

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Well known company

Pepsi Company is the world leader and convenient food & beverages with revenues of about $27000 billon at over 143,000 employees. The company consists of the snacks business of Frito lay North America and the beverage in food business is of Pepsi coke beverage and food. Pepsis brands are available in nearly 200 countries & territory. Many of Pepsi company brands use are over 100 years old but the corporation is relatively young. Excellent distributor selection criteria:

Haidri beverages search strong, experienced parties, devoted and loyal people. Basic requirement of them is financially strong people, devoted with product, loyal with company and involve in their business. Nicely display of different shops by the company:

According to their advertising strategies, haidri beverage is continuously providing good and nice displays to different shops which are located at high potential areas. Such type of displays results in two benefits like the nice look of the shopkeepers shop that definitely attracts more customer and secondly good advertisement of the companys products. This advertisement and sign boards advertisement increases the loyalty of the customer.

Financial rating :

Their domestic organization achieved revenue growth from a healthy pricing environment, strong field execution, and effective innovation as their diet, water and flavor portfolios partially compensate a continued shift away from their Pepsi trademark. Revenue growth and cost management offset a relatively more volatile raw material cost environment. The profitability of their international business continued to improve and it has become a more significant contributor to their performance.

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Sponsoring matches all over the world:

Pepsi sponsors world cup, cricket series matches to increase its viability and brand awareness and become more involve with customers. This is specifically done by the pepsi cola international but definitely haidri beverages cash such activities. If such matches are being held in the Rawalpindi cricket stadium than it is the responsibility of the haidri beverages to fulfill the requirement of bottles there. In this case company not only enjoy a good sale but also no other beverage company like Amrat cola have strength like this. This is a super advantage of haidri beverage over its competitors. Strong awareness about the product

The very important advantage which haidri beverages have is the strong awareness about the pesi products. To be successful in the market, it is necessary for a product to create its brand loyalty among its customers. And this is too true for the beverages industry. This is what haidri beverages have really enjoying. It is a strong advantage for pepsi that it has strong awareness of its products. Haidri beverages have not to do much in creating awareness about the pepsi products among its customers. Pepsi cola international provides a great help in adverting its products among mass media. For its specific target market, haidri beverages itself advertise its products in a well manner that is its strength. Customer loyalty

To be successful in the market, it is required that in the market the companys products should have strong loyalty so that their will no place for its competitors to enter. Different strategies are being used fro this purpose by different organization. Haidri beverage is also using different strategies to create loyalty and such strategies are mostly focus the shop keeper because of total indirect distribution network in haidri. For example different discount schemes are launched by the company periodically. In last days, a scheme was launched by the company for the shopkeepers only, in which shopkeepers have a chance to win prizes if they are collecting a specific number of the coupons. This is not only for

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promotion but also to create loyalty among the customers. It will result in increasing the sale that kicks out the competitor from the market.

Weaknesses
Conflict and politics

After 9-11 scenario and Iraq war, majority Pepsi consumers turned towards other beverages due to sentimental point of view. That is why pepsi cola has to maintain its market share. The competitor means Amrat cola takes the advantages of these sentiments and continuously increasing its market share. Such conflicts definitely affect the sale of pepsi products. Because in 9/11 days not only Amrat cola but also some other cola like Qibla cola or Muslim cola specially in Islamabad and Rawalpindi markets are also taking the advantages of theses sentimental issues and provided tough competition to the pepsi. But due to lack of professionalism Qibla and Muslim cola can not sustain themselves in the market. While Amrat cola takes a competitive edge over pepsi in Islamabad and Rawalpindi market. So to handle conflicts is really become a weakness for haidri beverages to maintain its current market share. Lack of skilled sale team

Sale team at the ground level in haidri beverages is mostly unskilled. Among these, sale men are at the top. There is a need to give them some kind of selling skills. Among selling skills the convincing skills are lacking much. This could be the reason of the major weakness of haidri beverages and competitor can take advantage of such weakness. To some extent this lack of convincing skills is also exist in newly hired sale officers. Such sale officers are trained by experienced sale man by sending them on different routes. This type of training is helpful but off the job training should also be given to the sale officers. Monopoly of distributor causes harm to company:

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Haidri Beverages Pvt Ltd.

Haidri beverages use indirect distribution channel.company has full control over its distributors. But for exceptional case for one or two distributors who are major buyers of the pepsi products like sector 5 distributor who is one of the major distributors of haidri beverages. For such distributors some times company has to compromise on some dealings. This shows the weakness of the company to some extent because if there is some sort of conflict raises among the distributor and the company than may b the company has to bear the loss for maintaining good relationships with the distributor. No competition is itself a weakness

For making good business decisions there should be some sort of competition among the companies. Because in this case the thinking process has got direction. And this direction will definitely helps in decision making. So some times no strong competition causes the company to ignore the importance of the decision making process. So for haidri beverages the company should not wait for competitive attack. Because in case of monopoly, such as maintained by the haidri beverages, the competitor is waiting for such sort of ignorance. Not satisfied workforce

Now- a- days it is the major issue in international business that if you want to enjoy a good success in the market than your workforce should happy with you. This is main area of any organization which is highly ignored by haidri beverages. There executives are satisfied from them but the lower employees are not satisfied by the companys policies. Their labor is paid the low wage as compared in other industries. More over their most employees are not permanent employees so this is a major weakness of the company because the employees feel insecure n the company. The labor is searching for other jobs. In this conflict haidri beverages can lose many competitive and intelligent employees.

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Opportunities Penetrating market would motivate considerable sales growth

Quality, innovation, and responsiveness of Pepsi to customers, can help them to achieve a competitive advantage by lowering the cost of creating value, or by adding value above and beyond that offered by Competitor. Existing customer base is high

Pepsi Cola strives to create value for their consumers, customers, bottlers and the community. They believe their success depends on their ability to satisfy their beverage consumption demands and their ability to add value for their customers. Nevertheless, attaining efficiency, quality, innovation, and responsiveness to customers requires a strategic plan. Expanding markets through its strong advertisement

It is the global brand and have done strong advertising and promotion internationally Pepsi brands are available in nearly 200 countries .Many of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively young through its strong strategic planning. Haidri beverages should take advantage of this strong international advertisement. Expanding the target market

The target market of haidri beverages is the Islamabad and Rawalpindi cities and their sub areas. This is the main target market of the company but the upper Punjab is also under haidri beverages. Here is still an opportunity for the haidri beverages to expand its target market. For example still many colleges and schools and universities in Islamabad and Rawalpindi are without pepsi. In such areas pepsi is supplied n the near shopping areas but are not provided in side the schools, colleges etc. More over such markets of

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Haidri Beverages Pvt Ltd.

schools and colleges are the target market of the non refundable bottles which are usually called NR or the market of CANS. There is an increasing number of schools and colleges in Islamabad and Rawalpindi. So to meet the requirement of such NR and CAN market haider beverages have to increase its production capacity. By increasing its NR and CAN production haidri beverages have the opportunity to penetrate in the school and college market. While in case of no supply of NR or CAN, Amrat cola can easily access to these markets. Training of sale officer and sale man

Training for every one is necessary to increase his or her capabilities. It has been observed that in haidri beverages, there in less concentration on the training program of marketing employees. While training is most important issue for the sale of fast moving consumer goods. It is because that fast moving consumer goods require rapid sale. The competitor of pepsi cola in Islamabad and Rawalpindi market can control nicely by giving training to the sale team periodically. This is an opportunity for haidri beverage to take a competitive edge over its competitor because training program usually require a huge investment in both time and money. Large company like haidri beverages can handle these training programs. The sale man of company is has not convincing skills. If a shopkeeper is not ready to take pepsi diet than the sale man does not know that how to convince the shop keeper. Same case is for the sale officer. Haidri beverages can take the advantage of such training programs. More sign boards

Now a days most companies concentrates on the advertisement through sign boards. But very few sign boards of pepsi are observed in Islamabad and Rawalpindi. With the help of pepsi cola international haidri beverages can increase the number of the sign boards in both cities as well as in its whole market. Such sign boards are for the reminding purposes. These sign boards should be placed at good commercial locations. Through these sign boards pepsi in Islamabad and Rawalpindi can get good competitive advantage because its competitor like Amrat cola has a few sign boards in both cities. So this is a good opportunity for the pepsi that still is not taken by its competitor.

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Enhancement in production capacity

To have a full market coverage haidri beverages should increase its production capacity. It is mostly happened that one or more brands are short in the market. Shop keepers are continuously demanding their require products. But due to limited production capacity haidri beverages can not fulfill the requirement of the shop keepers. This will give an opportunity for competitor to fill this gap. To avoid such competition and to avail the opportunity of getting 100% market share haidri beverages should increase in production capacity. Recently company has opened its CAN plant in Islamabad, which previously made in Karachi it will definitely increase the market share of the company. Similarly the market for NR bottles is high in Islamabad . company should give attention more production of the NR. This is an opportunity for the company to take competitive edge and to get full market share. Surveys:

For any company to increase its market share and to know the market condition in a well manner surveys should be conducted periodically. Such surveys enables the company to make good decisions about the opportunities that are availabal ein the market for that particular company. Aidri beverage should ive proper attention to its surveys programsto avail the opportunity of increase the market share sureys should be done in TOTS and customer satisfaction.

Threat Increase in competition

Their new strategy for International beverages is to focus on building their core business in markets in which they are already strong and in emerging markets where they believe the competitive playing field is essentially level.

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Amrat cola gives a good competition.

A healthy competition no doubt gives an organization a competitive edge. An organization with healthy competition always takes advantages from such competition. In Islamabad haidri beverages have to face a good competition from the AMRAT COLA. Amrat cola is now an emerging beverage industry in Pakistan, which is locally based. This cola uses a good marketing strategy. For example this company takes an advantage of 9/11 incident. They were successful in getting the emotional favor of its target market. Still this company taking the emotional favor of its target market by changing its marketing slogan that is now APNA COLA AMRAT COLA. If haidri beverage is not giving a proper attention to their competitor strategies than they will have to bear a great loss especially in the sense of loosing the market. Other local brands in Islamabad and Rawalpindi etc. such are not giving competition to haidri

There are other local brands that work in the Islamabad and Rawalpindi market like QIBLA COLA, MUSLIM COLA beverages but if haidri loses its market share due to any reason than it will be providing a space to such cola companies. So to avoid such competition, haidri beverages have to make the right decision at right time. Such small comapies always seek the space, where they can enter in the market and such spaces are always provided by big companies by ignoring sucht sort of competition. Coca cola

It is very strange that coca cola in Islamabad Rawalpindi market has less than 2% market share. As compared to coca cola , pepsi cola has full market share. Coca cola, which is the leader in beverage industry in the whole world but has only less than 2% share in Islamabad market. But because of its universal brand, people has its brand name in its their minds that will definitely help in increasing the market share of Coca cola , when this company seriously giving attention towards increasing their market share in this

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market. That is why haidri beverages being a franchised manufacturing company of pepsi cola international has to maintain its full coverage of its target market. They have not t give any kind of indication of ignoring the market share. Other wise the marketers of coca cola can capture their target market. Full market coverage

No doubt haidri beverages has a full market share in Islamabad market but still some sub urban areas of Islamabad and Rawalpindi are ignored by the company. For example a village near Islamabad called JABI village has not proper supply of pepsi brands. Similar some other areas are not in the under the coverage of haidr beverages. In other words, haidri beverages not only concentrates on the cities but should also give a full coverage to sub areas of Islamabad and Rawalpindi areas. In fast moving consumer goods such rapid and full supply of al the brands of the company must takes place.to maintaining a good market share and also to increasing the market share, it is necessary to make sure the supply of each item of the company. It is also much necessary to have a full notice of customer demand who are retailers in case of beverages industry. Providing a good display to retailer

Providing a good display to retailers store is the duty of advertising department in the haidri beverages. This is definitely a competitive advantage for haidri beverage because such displays are very expensive and small companies can not afford too much displays. Such displays give a nice look to retailer store. Not only for the purpose of advertising, such displays also give a pleasure sense to the retailer who in return definitely shows his or her loyalty to the company products. But still many stores which are located in high customer terrific areas are without displays or boards. It is not meant that each and every shop should be provided with the displays , but all those shops or stores are nicely displayed by the pepsi that are located in good commercial area. If haidri beverages is not doing so than definitely the competitor, which is Amrat cola would take advantage of this ignorance of haidri beverages. Still many stores are decorated and displayed by the Amrat cola. Similary paints are made inside and out side of the shops by Amrat cola such sort of displays by the competitor should be noticed by the haidri beverages.

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Haidri Beverages Pvt Ltd.

TOT (tools of trades) should in good condition

Tools of trades (TOT) should be in good conditions. As the name shown, these are the tools for the traits. These include mostly deep freezer and V/C. To maintain and to provide new one is the duty of Haidri beverages. Such TOTS are checked by the sale officer or sale man periodically. Mostly shop keeper and store keepers have the complaint of faulty TOTS. Some time, these TOTS are not checked and remedied by the company personnel. In this case the store keeper is looking for the TOTS from some other company. Similarly new one has to be provided with in right time to the shop keeper. These cases have been observed that shop keeper are continuously demanding the TOTS from the company but company do not provide them. In this case these TOTS are taken from Amrat cola and in return these shopkeepers would ready to sell the Amrat cola products.

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Recommendations
Supply to Rural Areas You will find Pepsi everywhere in Pakistan but it is difficult for the bottlers to available the supply in small villages, where the local brand are covering the markets. In order to reach these markets the company should get small distributors from those areas by offering incentives to cover these potential markets of Pepsi. Pepsi is having a good brand awareness and people are willing to be the distributors therefore the company should reach the villages near Islamabad and Rawalpindi. This will help in increasing the market share and give a tough time to competitors. On The Job Training Of Slaesforce Haidri beverages, of course, have a competitive sale force but lacking skilled and trained salespeople. Therefore the company should launch a comprehensive training program particularly the on job training which is low cost and effective. A trained and skilled work force would be a competitive priority and when it becomes the culture of the organization the organizations most precious asset is its employees. Permanent Hiring The hiring in Haidri beverages is on permanent and on temporary basis. The skilled persons are usually hired on permanent basis and the unskilled workers are on temporary basis. In off season the temporary workers are laid off, which is creating a negative impact of the organization in the minds of the employees. Therefore the hirings in the company should be on permanent basis. Fair Wage Rate The company should introduce a fair wage rate for the workers; they are getting the lowest hourly rate which is RS.10 /hour. The employees are not satisfied with the wage rate and there is no union in the organization therefore any negotiations about wage rate is not take place. The higher level mangers are getting the very good pays and the employees should also get the same.

Enhanced Capacity The production capacity of the plant should be enhanced although it is meeting the current demand but the previous years sales, which is beyond the targets is indicating that still there is demand but due to limited capacity cannot be fulfilled. The current production capacity is 90000 cases daily in three lines. The company should add a new line of minimum 20000 cases daily. This is obligatory in order to grasp the market and to augment the market share. Control over the Distributors The company should have a strong control over its distributors in order to manage the supply the markets. Sometimes the distributors are involved in cross distribution and sell the brands of other companies in this way violating the agreement between the company and Haidri. When there is a strong control, and check over the distributors, cross distribution would be avoided. TOT (Tools of Trade) Should In Good Condition Tools of trade (visi cooler, deep freezer) should be in good conditions. As the name shown, these are the tools for the trade. These include mostly deep freezer and visi cooler. To maintain and to provide new one is the duty of Haidri beverages. TOTS should be checked by the sale officer or sale men periodically. Mostly shop keepers or store keepers have the complaint of faulty TOTS. The complaint cell should immediately tell the technicians about the retailer to service the TOT. If the proper services are not provided to the retailers in this case the store keeper are looking for the TOTS from some other company. Similarly new one has to be provided with in right time to the shop keeper.

Annexure
www.pepsico.com www.hrmguide.com Marketing management by Philip kotler Principles of marketing by kotler Armstrong Mr.Mujeebullah Mr.Muhammad Akhter ch. Mr.Robin Sadiq Mr.Zulkifl Ejaz Maj. P.S. Tariq Mr.Shahid Insha Mr.sajid Sharif Mr.Tariq Maqbool Mr.Amjad Javed Mr.Jawad Ahmad Mr.Abdul Ghafoor Malik

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