report on shamim & co. naveed

8/21/2019 Report on Shamim & Co. NAVEED

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INTERNSHIP REPORT

ON

SHAMIM & CO.( PVT) LTD, MULTAN

Submitted to:

Submitted by: Naveed Ahmad

Roll No. 93 (A)

MBA (Executive)

Session 2012-2014

DEPARTMENT OF BUSINESS ADMINISTRATION

BAHAUDDIN ZAKARIYA UNIVERSITY, MULTAN


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ABSTRACT

Beverage industry in the whole world is very well established industry and the same case

in Pakistan. The major beverage companies are Pepsi Cola and Coca Cola and the

emerging beverage industry is Amrat Cola. The Pepsi Cola is the market leader in the

Pakistan as well as in the Asia but Coca Cola is the market leader in the whole world.

These industries develop their own marketing strategies to meet the requirements of their

respective target market. As for as the Shamim & Co. beverage in Multan is concerned, it

creates its monopoly in its target market, which is based on Multan, Rahim Yar Kahn and

the sub areas of these cities. Shamim & Co. beverage successfully fulfill the requirement

of its target market. Shamim & Co. beverages believe in departmentalization in their office

works and therefore they establish different department to achieve their respective tasks.

There are different departments in the Shamim & Co. beverages like human resource

department, management information system department, key accounts department, sales

department, marketing services department and marketing department, audit and taxation

department, TOT department, purchase department, production department, finance

department, store management and shipping department.

Each department is running under intellectual managers and there respective team of

assistants. Human resource department in Shamim & Co. has the major function is to

manage the workforce. Recruitment and promotions are also done by this department.

Personal record of each employee is maintained by this department. In this record each

and every thing about the employee is recorded. This record is maintained both by manual

system and computerized system. Employee selection, employee appraisal and leave

records are also the part of this department’s work. Different motivational tools for the

employees are also managed by this department.

The sales & marketing department in Shamim & Co. performs a very vital role. This

department is very strong. It manages all the sale force.


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ACKNOWLEDGEMENT

I am very thankful to almighty ALLAH and the Holy Prophet (P.B.U.H) from the

core of my heart on the completion of this academic task.

I am deeply indented to my supervisor Professor _______________ for his

continued guideline and valuable comments on this study. Through his contribution and

encouragement I was able to accomplish this research work. He preferred me to work on

this topic. I appreciate it.

My appreciation and gratitude also go to the rest of my course lecturers and all

others staff of Business Administration Department of Bahauddin Zakariya University and

library staff, that they made my study successful also thanks to all my friends, whom I

made during my study period in university, thanks for all the support and for being good

friends.

Very Special thanks go to my beloved Mother & Teachers, who pray for me during

my study and Thanks for all being in touch, telling me how much you all care and

supporting at every stage of problem.

Any error in this research work is mine and should not be associated with any of

the Acknowledged individuals or institution.


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TABLE OF CONTENTS

ABSTRACT

CHAPTER – 1 INTRODUCTION: 01

Brief History: 01

Setup of Pepsi Cola: 02

CHAPTER – 2 A LOOK AT SHAMIM & CO. 03

Mission and Vision: 03

Nature of the Organization 03

Products and Brands: 04

Product Range Offered by SCL: 06

CHAPTER – 3 PRODUCT & BRAND 07

COMPETITION ACTIVITY MONITORING 08

PUBLICITY MANAGEMENT 09

List of Main Competitors 10

CHAPTER – 4 MAJOR COMPETITORS: 11

Rivalry with Coca-Cola: 12

CHAPTER – 5 DEPARTMENTS AND THEIR FUNCTIONS 13

A. Administration Department: 13

B. Production Department: 14

C. Management Information System (MIS): 14

D. Sales Information System (SIS) 15

E. Finance & Accounts Department: 16

F. Cash Department: 17

G. Human Resource Management: 17

H. Sales and Marketing Department: 18

I. Operations Department: 20

CHAPTER – 6 WHERE I WORKED AND EXPERIENCE GAINED? 23

Plan of Internship Program 23

Training Program 24

SIS Department: 26

MIS Department: 27Key Accounts Department: 28


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Route Riding and Distribution System: 29

Cold Asset Department: 30

Structure of the Marketing Department 36

Functions of the Marketing Department 37

CHAPTER – 7 MARKETING STRATEGIES OF SHAMIM & COMPANY 38

POSITIONING STRATEGY 38

Marketing Mix Strategies 39

PRICING STRATEGIES 40

Promotional Strategies 41

Function of sales 43

CHAPTER – 8 FINANCIAL ANALYSIS 44

RATIO ANALYSIS 46

LIQUIDITY RATIO’S: 46

Current Ratios: 46

ACID- TEST RATIO: 47

DEBT RATIO’S: 48

ASSET MANAGEMETNT: 49

PROFITABILITY RATIO’S: 49

NET PROFIT MARGIN: 50

CHAPTER – 9 VERTICAL ANALYSIS (COMMON SIZE ANALYSIS) 52

Horizontal Analysis 52

Critical Analysis 53

CHAPTER – 10 SWOT ANALYSIS 54

STRENGTHS: 54

Weaknesses: 55

Opportunities: 55

Threats: 55

Suggestions 56

CHAPTER – 11 CONCLUSION & RECOMMENDATION 57


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CHAPTER – 1 INTRODUCTION

Pepsi is a carbonated soft drink that is produced and manufactured by PepsiCo. Created

and developed in 1898 and introduced as "Brad's Drink", it was later renamed as Pepsi-

Cola on June 16, 1903, then to Pepsi in 196

Brief History:

Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina, United States,

in 1898 by Caleb Bradham, who made it at his home where the drink was sold. It was later

labeled Pepsi Cola, named after the digestive enzyme pepsin and kola nuts used in the

recipe. Bradham sought to create a fountain drink that was delicious and would aid in

digestion and boost energy.

In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered

bankruptcy in large part due to financial losses incurred by speculating on wildly

fluctuating sugar prices as a result of World War I.

On three separate occasions between 1922 and 1933, the Coca-Cola Company was offered

the opportunity to purchase the Pepsi-Cola company, and it declined on each occasion.

Formation of Pepsi Cola Corporation:

Roy C. Megargel, a Wall Street broker, bought the Pepsi trademark, business and good

will from Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation.

In 1928, after five continuous losing years, Megargel reorganized his company as the

National Pepsi-Cola Company. In 1931, U.S. District Court for Eastern District Virginia

declared the National Pepsi-Cola Company bankrupt, the second bankruptcy in Pepsi-Cola

history.

Reformulation of Syrup:

Megargel was unsuccessful, and soon Pepsi's assets were purchased by Charles Guth, the

President of Loft Inc. Loft was a candy manufacturer with retail stores that contained soda

fountains. He sought to replace Coca-Cola at his stores' fountains after Coke refused to


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

syrup formula.

Setup of Pepsi Cola:

PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New

York, United States, with interests in the manufacturing, marketing and distribution of

grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with

the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded

from its namesake product Pepsi to a broader range of food and beverage brands, the

largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker

Oats in 2001 — which added the Gatorade brand to its portfolio.

As of January 2012, 22 of PepsiCo's product lines generated retail sales of more than $1

billion each, and the company’s products were distributed across more than 200 countries,

resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the

second largest food & beverage business in the world. Within North America, PepsiCo is

ranked (by net revenue) as the largest food and beverage business.

Indra Krishnamurthy Nooyi has been the chief executive officer of PepsiCo since 2006,

and the company employed approximately 285,000 people worldwide as of 2010. The

company’s beverage distribution and bottling is conducted by PepsiCo as well as by

licensed bottlers in certain regions. PepsiCo is a SIC 2080 (beverage) company.

Pepsi-Cola Trademark:

Pepsi Logo 2014


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CHAPTER – 2 A LOOK AT SHAMIM & CO.

Mission and Vision:

At PepsiCo, we believe being a responsible corporate citizen is not only the right thing to

do, but the right thing to do for our business.

Our Mission:

Our mission is to be the world's premier consumer Products Company focused on

convenient foods and beverages. We seek to produce financial rewards to investors as we

provide opportunities for growth and enrichment to our employees, our business partners

and the communities in which we operate. And in everything we do, we strive for honesty,

fairness and integrity.

Our Vision:

"PepsiCo's responsibility is to continually improve all aspects of the world in which we

operate - environment, social, economic - creating a better tomorrow than today."

Our vision is put into action through programs and a focus on environmental stewardship,

activities to benefit society, and a commitment to build shareholder value by making

PepsiCo a truly sustainable company.

Performance with Purpose:

At PepsiCo, we're committed to achieving business and financial success while leaving a

positive imprint on society - delivering what we call Performance with Purpose.

Our approach to superior financial performance is straightforward - drive shareholder

value. By addressing social and environmental issues, we also deliver on our purpose

agenda, which consists of human, environmental, and talent sustainability.

Nature of the Organization

Shamim & Co provides consumer consumable products. It owns FMCG brands like Pepsi, 7up etc.

Shamim & Co is a franchisee of PCI.


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Products and Brands:

PepsiCo’s product mix as of 2012 (based on worldwide net revenue) consists of 63 percent

foods, and 37 percent bever ages. On a worldwide basis, the company’s current products

lines include several hundred brands that in 2009 were estimated to have generated

approximately $108 billion in cumulative annual retail sales.

The primary identifier of a food and beverage industry main brand is annual sales over $1

billion. As of 2009, 19 PepsiCo brands met that mark:

Current Product Portfolio of Pepsi Co. in Pakistan Market:

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

Pepsi

7Up

Mirinda

Mountain Dew

Pepsi Diet


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7Up Diet

Sting

Slice

Aquafina

Lay’s

Cheetos

Kurkure


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Product Range Offered by SCL:

Logo Product

Pepsi

7Up

Mountain Dew

Mirinda

Pepsi Diet

7Up Diet

Sting (Berry Blast & Gold Rush)

Slice (Mango Juice)

All others brands offered by Pepsi in Pakistan are not offered by Shamim & Co., Pepsi Co.

International is selling those brands like Aquafina, Lipton Tea, Cheetos, Lays, Kurkure,

etc. directly to retailer or through their other distributors for that particular brand. Shamim

& Co. is only responsible for above mentioned products in south Punjab market.


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CHAPTER – 3 PRODUCT & BRAND

Brand Packing Unit Volume

Pepsi 250 ML 24 bottles per case 250 ML per bottle

1000 ML 12 bottles per case 1000 ML per bottle

1500 ML(PET) 6 bottles per case 1500 ML per bottle

300 ML 12 bottle per case 300 ML Per bottle

500 ML 6 bottle per case 500 ML per bottle

Pepsi Diet …………….. ……………….. ……………….

7 up 250 ML 24 bottles per case 250 ML per bottle

1500 ML(PET)

1000 ML

6 bottles per case

12 bottle per case

1500 ML per bottle

1000 Ml per bottle



7 up free ……………… ……………… ……………….

Mirinda 250 ML 24 bottles per case 250 ML per bottle





Mountain Dew 250 ML 24 bottles per case 250 ML per bottle



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1000 ML 6 bottles per case 1000 ML per bottle



Sting 250 ML 24 bottle per case 250 ML per bottle

Slice 240 ML 24 bottle per case 240 ML per bottle

STRATEGIES OF BRANDING USED BY THE ORGANIZATION:

On the market side the sales people gather information and on the basis of this information

they further plan and improve their strategies.

Organization have a strong product line so it uses line brand strategy to gain the high

market share.

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

Calculation of daily sales achievements on monthly target basis

Location of the poor performance factors and analyzing their cause

Finding their solution and getting the approval for its execution

Planning for a schedule for the designated area.

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

management

COMPETITION ACTIVITY MONITORING

On the other hand a constant intention has been given to the competitor’s activities,

strategies and offers. They have been compared with ours and updated according to theenvironment.

Following are the key factors to be noted in respect of the competitor:

Discounting, Promotional schemes, empty management,

Cash credit, Vehicles injection (etc.)

Reporting to the higher authority.


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PUBLICITY MANAGEMENT

To promote the image of the company and its products, publicity is a major tool. Publicity

plays an important role in the promoting the image in the consumer's minds.

Publicity involves Banners, posters, signings, gifts and schemes. Publicity budget is spent by focusing the followings.

Location of the area.

Arranging the sources and requirements and making priority lists

Carefully arranging the publicity execution.

EVERY DEALER SURVEY (EDS)

This activity is based on research and marketing people usually perform this activity. It is

basically checking the each and every shop and gets information that what the shopkeeper

is selling and keeping in the shop regarding beverages. This activity is performed in the

shape of teams. Structure of the teams is as follows:

Team Leader (Marketing & Research Executive MRE)

Team Members (Marketing & Research Offices/Supervisor)

The following activities are present in EDS:

Market Visit (Data Collection about Shops)

Data Analysis

Report Preparation

PUBLICITY VERIFICATION

This activity involves the following tasks to be performed by the marketing department:

Counters

Wall paint

Cabins

Plastic Sign Board

Road Boards

Simple Boards

Pana flex


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List of the main Clients

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

mentioned here.

Billay Da Dera

Tasty Food Plus

Dera In hotel

Al Habib store

Akhtar&sons

Mahboob Bakers

Family Mart

E-Mart

Mega Mall

Mercado

Ideal Beakers

Al Hateem

Fresh Life

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

General stores

Cold corners

Captives

Traffic areas and public areas

Retailers and distributors

List of Main Competitors

Following are the competitors of Shamim & Co

Coca cola is one of the major competitors

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


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CHAPTER – 4 MAJOR COMPETITORS:

Pepsi's direct competitor is Coca-Cola. The non-soft drink competitors are tea, coffee,

water, energy drinks, sports drinks, milks, etc. which are all consumed on beverage

occasions. Pepsi aims to gain a greater share of these occasions.

“Without Coke, Pepsi would have a tough time being an original and lively competitor.The more successful they are, the sharper we have to be. If the Coca-Cola Company didn’t

exist, we’d pray for someone to invent them, And on the other side of the fence, I’m sure

the folks at Coke would say that nothing contributes as much to the present-day success of

the Coca-Cola Company than… Pepsi”

Pakistan is one of those limited markets where Pepsi is enjoying higher market share as

compared to coke. Pepsi is enjoying almost 65% market share in Pakistan market,

especially in region of Shamim & Co. Although Coke become very active in last couple of

years due to direct interference of Coca Cola International in operations of franchises in

Pakistan, and they are trying hard to snatch market share of Pepsi, but Pepsi is still

dominant in market due to its aggressive marketing strategies and market leadership of last

few decades.


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Rivalry with Coca-Cola:

The Coca-Cola Company has historically been considered PepsiCo’s primary competitor

in the beverage market, and in December 2005, PepsiCo surpassed The Coca-Cola

Company in market value for the first time in 112 years since both companies began to

compete.

According to Consumer Reports, in the 1970s, the rivalry continued to heat up the market.

Pepsi conducted blind taste tests in stores, in what was called the "Pepsi Challenge".

These tests suggested that more consumers preferred the taste of Pepsi (which is believed

to have more lemon oil, and less orange oil, and uses vanillin rather than vanilla) to Coke.

The sales of Pepsi started to climb, and Pepsi kicked off the "Challenge" across the nation.

This became known as the "Cola Wars".

Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. However,

exceptions include Oman; India; Saudi Arabia; Pakistan (Pepsi has been a dominant

sponsor of the Pakistan cricket team since the 1990s); the Dominican Republic;

Guatemala the Canadian provinces of Quebec, Newfoundland and Labrador, Nova Scotia,

and Prince Edward Island; and Northern Ontario.


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CHAPTER – 5 DEPARTMENTS AND THEIR FUNCTIONS

Following is the list of departments working at SCL:

A. Administration Department

B. Production Department

C. Management Information System (MIS) Department

D. Research & Sales Information System (SIS) Department

E. Finance & Accounts Department

F. Cash Department

G. Human Resource Department

H. Sales & Marketing Department.

Sales.

Sales Capability.

Marketing.

Key Accounts Management.

I. Operations Department

Cold Assets Department.

Merchandising Equipment Management (MEM) Department.

A. Administration Department:

Administration department deals with the overall matters of the company and takes

different actions for increasing the performance of the company. This department also

carries out different social welfare programs.


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B. Production Department:

This department is responsible for the production of the products according to the

requirements of the customers. Production department have to manage the inventory of all

types. Currently they are having seven production plants and all of them are automated.

Mostly they go for importing their production plants from Italy, Germany and

Netherlands. Previously they used to purchase Ammonia for cooling purposes but recently

they have installed an Ammonia plant with in their own premises. Now they purchase

CO2 for the production of Ammonia gas. Regarding the use of management information

systems, they are shifting their production record from manual system to computerized

system. Production department can be divided into sub departments which are:

Quality Control Department:

Quality control department is responsible for checking the quality of the product.

After every 3 hours a quality check report is presented by this department to the

production manager and GM technical. In case of any problem with the quality,

after every half an hour quality is checked.

Technical Department:

Technical department is responsible for any technical assistance needed in case of

any plant problem. They also maintain the spare parts inventories, which are used

in case of any breakage or malfunctioning of plant part.

Procurement Department:

This department is responsible for any assistance needed to purchase the technical

parts. In case of any purchase of plant or any part of the plant they help the

purchase department for purchasing the right part.

C. Management Information System (MIS):

In today's fast moving business environment, organizations are rapidly moving towards

computerization and information systems. In this era of rapid and frequent changes, it

provides current, reliable and accurate information to the management. This information is


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very useful in decision-making. Information systems are generally defined as the system,

which provide regular and current information to management for decision-making.

MIS department of SCL is playing a vital role in this regard. The department is working

with a small setup & satisfying the information requirements the organization with a smart

staff and developed setup, the department has eliminated much workload, paper work and

saved a lot of time.

The software system has two basic parts and these are developed in some programming

language. The most important part of any information system is database. The database is

the basic structure of data and defines how data is organized, stored and retired from

memory. The database operates at the back end. At the front end, data is entered and

retired through input screens.

The MIS department is currently performing its day-to-day operations as well as involved

in software development. It also provides technical assistance and training to other

departments. At that time oracle 8.0 is in execution. All computers in the department are

networked by LAN (local area network) the department has licensed software working.

D. Sales Information System (SIS)

Sales Information System, which is working under marketing department, is responsible

for making decisions regarding either to provide chiller or not, either to sponsor store

publicity arrangements or not and etc. Decisions are made on the basis of store look,

location and amount of turnover provided by the retailer. This department also provides

information about the distributors and their product requirement.

Research and SIS Department:

This department works under the marketing department and its responsibility is to check

the market performance of the product and provide information regarding the product

status and its market share. They are also responsible for checking the performance of the

new products like Sting and Slice, its acceptance and capacity to launch a new product in

the market.

Market Research & SIS is a very strong department, aimed to keep current record of each

& every outlet of the franchise. Through this system, management can come to know:


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Market Share.

Name & address of each outlet, Cold Assets Detail.

Publicity position.

Discount verification.

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

Distributor & area wise.

Route wise.

District wise.

E. Finance & Accounts Department:

It deals with the financial matters of the company. It collects the revenues and makes

different payments and maintains proper record of the financial performance of the

company’s business to show the net result in the form of either profit or loss. Financedepartment consist of

Management Accountants

Cost Accountants

Accounting MIS Department

Accounts Department:

The job of the department is to maintain books of accounts. There are following main

activities of accounts.

Issuance of purchase vouchers for raw material, plant and machinery and

general store items

Check payment of payroll to employees including wages, overtime, bonuses

etc.


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Handling of monthly tax statements.

Computerized general ledger system is working and shows the result of each

transaction up to balance sheet and income/profit and loss statement.

F. Cash Department:

Cash department does cash handling (collection and payment). The major part of cash

collection is from dealers and salesman based on their settlement sheet and daily sales

report. Cash payment is done on the vouchers issued by accounts department. Payments

include employee's pay, bills, allowances, procurement expenditures and day to day

general expenses.

G. Human Resource Management:

The concept of H.R is changed to Human Capital and SCL is completely familiar with this

valuable assets. This department has changed so much in last couple of years. Now this

department is directly linked with M.D. also now PCI is intervening in recruitment

process. Now the jobs are advertised through newspapers and concept of job by reference

is minimized. The department expands recently and now there is a complete process of

hiring, firing, benefits, promotions, allowances, pay, career development programs etc.

This year SCL is taking very aggressive decision and due to increasing needs of market,

SCL is making new designations, expanding departments and hiring personnel very

quickly. In this regard the efficiency of H.R. dept. also increases.

Now hiring is done through a proper formal channel, H.R. process involves following

steps:

Determining need of personnel

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

Before recruitment process starts, Job Description and Job Specification in co-

ordination with departments are defined.

Then job vacancy is formally advertised in newspapers, etc.

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


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

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

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

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

recruitment is preferred

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

job starts.

H. Sales and Marketing Department:

Sale and marketing is the most important department of any beverage company. To

maximize the sales and profit, this department should be proper planed and managed. SCL

has a very aggressive and hardworking sales and marketing department. Due to its efforts

the company has got the first position in sales in 1993 throughout the Pakistan.

Following are the major parts (sub departments) of this department:

• Sales and Capability Department

• Marketing Department

• Key Accounts Department

Sales and Capability Department:

The first and the most basic job of the sales and marketing department are to plan, develop

and make targets. Also make strategies to achieve targets and to develop the market. The

following major factors are considered in this respect.

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

exclusivity.

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

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


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

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

Marketing Department:

This is the most important department of SCL. Marketing dept. plays a role of backbone

especially in beverage industry, because this is the only way for survival. It is most

competent department of SCL, as we can observe, Pepsi dressing is shown everywhere in

the town, this is all because of this departments.

Following are terms which can completely define marketing department of SCL:

Budgeting

Taxation

Shop and Road fascia

ATL/BTL activities

Merchandising

Planning and formulating marketing strategies to cover up the growing competition

Event Management

Brand Awareness

Work Process

Key Accounts Department:

This department is recently established in 2010. That was meant to deal with the retailers

who will be proved beneficial for SCL, like in case of sale, location, clientage, etc.

Following are the terms which will define this department:

What is ―Key/Captive Account‖

Account creation and retention


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Create credibility, build strong relation with clients

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

Market research

Ensure product availability

I. Operations Department:

Operations department of any firm is responsible for making whole process smooth and

easy to run. It works as lubricant in company. Following are some segments of operation

department of SCL.

Cold Asset Department:

This department is responsible all the freezers, coolers, chillers, ice boxes of SCL. These

equipment are called cold assets.

Following types of cold assets are available at SCL:

Deep Freezer

12CFT

15CFT

Visi Coolers

Small (Single Door)

Large (Double Door)

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

Cold asset is demand by sales officer on behalf of shopkeeper

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

Cold asset is given to shopkeeper after making all documentation including stamp

paper showing that cold asset is property of SCL


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After injection of cold asset it is verified that is cold asset transferred and if so then

to a right person or not

In tracking process it is verified that cold asset is with same person or he sold it or

whether he is making its right use like for Pepsi or for any other purpose

In case of business is transferred to other person cold asset is also get back and

formally hand over to new owner with complete documentation

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

case of loss or theft

Marketing Equipment Management (MEM):

This department is responsible for maintenance of cold assets. This is newly made

department which has complete solutions for cold assets. In past, there was no proper

maintenance and repair workshop for cold assets, cold assets even with minor faults were

treated as total loss. If any deep freezer or visi cooler had some issue in it then it had to be

sent to the factory for repair where no proper workshop, tools or technicians were

available.

But now with the existence of this dept. SCL saves a lot by repairing old cold assets and

by making mobile workshops to eliminate the transportation charges and problems which

both company and retailer has to face. The existence of MEM department is big

achievement of SCL especially the concept of mobile workshops add lots of ease. Now

there is no issue if the cold asset is in town, village or anywhere else, the mobile workshop

will reach there, solve the problem and make clients happy.

The idea of MEM department is given by PCI and it is recently implemented all over theworld. The biggest achievement in this regard is that SCL won the Best Global MEM

Award from Pepsi factories all over the world. The function is held in Miami U.S.A where

C.O.O Amer Hameed and B.O.M. Kamran Zaffar received the award.


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Shipping Department:

Shipping is a very critical area for any beverage organization. It serves the role of

coordinator or middleman between production and sales. Ensuring appropriate quantity

and on time availability of empty & liquid stock is utmost important. Any malfunction in

empty receiving, storage, and supply to plants, liquid stock and distribution directly affects

sales. This is a complete chain or cycle and any weak link, bottle neck or disturbances will

slow down the whole operations.

Comments on the Organizational structure

According to my point of view, the organizational structure of SCL is the best

organizational structure in south Punjab.

Span of Control

The number of employees a manager efficiently and effectively manages. During my

internship program, I observed that sales department has a span of 4. Like sales force of

multan base indicates. There is 4 SO’S under each ASM and 4 ASM,S under RSM.

Centralization/Decentralization

The degree to which decision making is concentrated at upper level of the organization

during my internship I observed that Shamim & co has a centralized and very strong

culture. All the departments are integrated with each other and under a leading body.


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CHAPTER – 6 WHERE I WORKED AND EXPERIENCE

GAINED?

Plan of Internship Program

Introduction to Shamim & Co. (Pvt) Ltd Multan

Shamim & company (Pvt.) Ltd. is a franchise of ―Pepsi Cola International‖. The company

established in 1964. Mr. Allah Nawaz Khan Tareen was the founder of the company and

also chairman. It is a great pleasure of ―Shamim & Company‖ that it was Second

Beverage Company of Pakistan that time, and this time one of famous Beverage Company

of South Asia.

There are 9 franchise of Pepsi cola international in Pakistan, Shamim & co. is one of them

that is situated at District jail road Multan. Other franchise of Pepsi cola are situated in

Lahore, Faisalabad, Karachi, Islamabad, Rawalpindi, Gujranwala, Sakhar, Peshawar and

Baluchistan that are described above. The company started the production for the first time

in 1967 that time brand was 7-up 270 ml that is why it is also known as 7-up factory. It is

deal in CSD (carbonated Soft Drinks).Pepsi cola international franchise Shamim &

company covering 11 districts.

Shamim & Co. Multan has very committed staff and this is the reason that it captures more

than 65% share of market share.

Depending on the potential of the town we have one and more than one distribution in

each town. At this time nineteen distributions are working in Multan. Sales supervisor,

sales officer is responsible for all the activities of the entire distributors. He looks after the

stock availability possibility and all the routes covered by the salesman of that distribution.

Salesman training is also a main responsibility of sales supervisor.

Company has invested too much money in shape of coolers, visi coolers, counters and

cabin. These are offered to those shops which are producing good sales to promote sales.

All the services matters of coolers and maintenance and look after of these assets are also

the responsibility of our sales force.


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Every salesman of distribution network is covering a specified area in which all the points

and shops are listed in a ―Route Card‖ salesman is bound to fill that.

Training Program

During my six week internship program, I was moved through following departments:

1. Marketing department

2. SIS and MIS Department

3.

Key accounts Department

4.

Sales and operations Department

5. Cold asset Department

6.

HRM Department

7. Accounts & Finance Department

Marketing department:

What actually happens here?

Budgeting

Taxation

Shop and road fascia

ATL/BTL activities

Merchandizing

Planning and formulating strategies to cover growing competition

Event management

Brand awareness

Work process

Annual budget approved by managing director has to be trickled down for

implementation round the area/territory, comprising of 170 distributers. This budget is

then utilized entirely for two activities:

ATL (above the line); E-media, print media and digital media

BTL (below the line); banners, bill boards and road plus shop fascia.


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The installation of these boards always hinge upon the kind of shop it is on the basis of its

monthly sales and return.

For taxation whole city Multan is divided into two authorities: TMA & Cantonment

board. By this TMA conduct a bid and who so ever bidden higher would take the board

into his custody. While Cantonment board charge and collect tax against advertisement in

its Cantt area.

Next is the work of merchandizing team that has to make it certain that every board is

justly installed and every concerned shop has been painted when approved with its

visibility ostentatiously clear to the customers.

Events, like in BZU are seen to have managed and supported by the marketing departmentafter approval from GM Sales. In Multan public school, they also sponsored a show

performed by Fawad Khan with their banners all

over the place.

Similarly brand awareness programs are

orchestrated by the PCI Lahore, which is

designed primarily for honing the current value of

the regular brands in the minds of customers. As,

dew campaign is being launched for the same

purpose. Similarly, teasers in Pepsi ad also raised suspiciousness and attraction towards

the brand.

Work process includes the identification of the work to perform for their shops. This

would prompt them to contact area vendors to oversee the desired function. Vendors then

handover their bills with the photos annexed therein to the Marketing department which

has to be scrutinized by the SIS (sales information system). After their green signal the

orders are approved by GM Sales and then sent to finance for final formulation and

delivery.


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SIS Department:

Plan discussed and worked upon is:

Market share

Market and chiller share calculation

Sustaining market and chiller share

Chillers integrity

Shop census, routes and CSD market

Discounts and schemes verification

Sales capability

SIS department is entirely responsible to conduct research for the products being made

available in market. This has to make sure by the SIS tracking team, whether the claims

for discounts and other schemes are being fulfilled or not. Relation between marketing and

SIS department is like two peas in a pond. This is so, because the work being conducted

by the vendors approved by marketing department has to be verified by the SIS just like

they have to verify discounts and schemes being bestowed upon the shops against their

sales. In this case direct visits on some or sample shops has to be made for verification.

Calculating market and chiller share include the formulation of a document that

includes proportionate amount of Pepsi in comparison to coca cola available in their

chillers, coolers or visi coolers. A team is designed to conduct search for the amount of

Pepsi products available in the chillers which gave the estimation of the chiller’s

integrity. Like liter bottles occupy 10% of the chiller and the regular bottles comprising of

the dew, Miranda and Pepsi manage to capture the rest, and it’s decided by the member on

the spot.

Improving and sustaining these shares includes a special care for those shops who can

sell as many products as they can. Like sale of chilled CSD bottles. Similarly to give

packages on different products would mean the requirement of its availability in certain

amount against any other product of competitor. Like to avail package at PET, shops must

have 70% of it available thereto.


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To outlay the activities of sales capability, I will start with the skills and the resources the

company and its distributors have. SIS has to make sure that whether the shop getting

discount is improving its sales by tracking it periodically. Next, they have to gauge as to

how much their Chillers are adding to this sales, plus SIS has to oversee the vehicle

capability of the distributors whether they are fulfilling the market requirements in high

and low demand situations.

MIS Department:

Plan:

Sales targets

Sales reports

Sales record and analysis

Distributor accounts reconciliation

Quotas allocation and procedure

Distributor approved credits

Glass management at MIS

Rating and incentive structure

Market discounts verification

Sales operations system

Targets for next year sales are forecasted on the basis of current market position and

sales. Like in this year, business operations manager approved sales 10% more in the

coming year. Targets for the seasonal festivals like EID or Ramadan highly hinge upon the

previous year’s performance. Primary stocks in the possession of SCL, has to be provided

to the distributor against commitment according to the market demand but the secondary

stock which is distributor’s possession is paid at the spot by vendor. For this sales

forecasting periodical reports are formulated and presented to the respective manager who

after analysis would set the sales targets for each area. These reports are formulated on the

basis of time series analysis and then shared with PCI (Pepsi cola international), who do

benchmark analysis as to which franchise has more and skyrocketing sales performance.

Depending upon the capability of the distributor, now MIS department would negotiate

and reconcile with the distributor on the following cases like discounts to be provided to


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the shops and incentives for the distributors. After this step now the quotas are then

allocated among the vendors depending upon their rankings already formulated by SCL.

Like A, B, C and D, would be allocated quotas accordingly. These ratings then win them

packages like ummrah package against their performance.

Glass is managed scrupulously by MIS, by constantly monitoring the amount to be

provided to the distributors. This monitored amount has to be pertaining to the amount

available with the company and its distributors. So, a two prong strategy is adopted where

when glass is given on credit for special or normal operations, check has to be made over

the amount available and given. Distributors get glass on credit but the liquid is always

given on payment. But in case of special operations like in case of any village mela, they

are provided on credit to endorse the requirement.

Key Accounts Department:

Plan I followed:

Key/captive account

Account creation and retention

Creating credibility

Analyzing account, setting objectives, taking action and reviewing account

Market research

Ensure product availability

Key accounts are those who have specific importance due to

its location, volume and worth in comparison to the other

points. Whereas captive are those where direct customers

frequently visit and result in higher sales. Frequent visits at

these accounts by the manager to cater to the emerging needs

in time often results in retention of these accounts. Plus a

strong dynamic and personal relationship is also ideal here to make things easy and less

strange in competitive market. This also provides advantage of exclusivity to the Pepsi

products which is the major goal of key accounts department. This is then aided by many

activities like event management and sponsorship of concerts by key account department.

To improve and create endless credibility, key account manager has to be vigilant


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enough to listen and act to the executives working in his subordination at any point of

time. Market research orchestrated by the executives and ensuring product availability is

playing another versatile role in the success of this department established in 2010.

Route Riding and Distribution System:

Worked out plan:

Distributor route management

Target management

Distributor working style

Salesman capability and shopkeeper behavior and

coolers integrity

Execution of company standards regarding sales

and merchandizing

Coolers tracking, productivity and utilization

Routes are decided and allocated per distributors on the basis of number of shops

available in any locality. Then these routes are synchronized according to each sub locality

by the consent of both the company and the distribution management. As stated earlier,

target base for the sales team and its management is set on the average of its current and

previous year’s performance basis according to the pools selected for the first six months

and the last.

A distributor capability is judged by his capacity and audacity to perform and fulfill

emerging needs. It should be able to show a viable and demonstrative experience in

beverages and that the incentives and credit provision is done on the basis of sales whether

primary or secondary.

Moreover, while working in Pepsi I witness another new project that is the transition

from spot selling to the order booking style. This is usually considered to be the system

most beneficial for company as the orders with discounts and schemes are decided earlier

than dispatching the order by distributors themselves.

Sales are first build upon the relationship of sales man from distributors where 27% of the

population tends to be loyal while 72% of them require black water though. So the


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behavior of shopkeeper would get altered by salesman’s attitude and way of service. They

all have to follow the company standards formulated by the capability department after

approval from the GM sales. Unlike chiller integrity, cooler integrity is to be checked by

the distributors in the same way to ensure its capacity and contribution to the product’s

sale.

Secondary sales now entail the activity of order booker who gets orders from the

shopkeepers the day before delivery. So, the allocated discounts are added in the

formulation and calculation of the bills formed thereafter.

Cold Asset Department:

Plan I followed:

Quota

Injection

Tracking(handover and back check)

Sales officers are responsible to report for any need that erupts in the market for chillers or

any other TOT like coolers to the upper management. Then before allocating TOT, GM

has to figure out a quota for the local market according to their sales capacity as

mentioned before.

TOT (tools of trade) includes coolers, vii coolers and freezers (12 CFT and 15 CFT).

These are then dispatched from the MEM department after final approval and a signed

agreement between the company and shopkeeper. Distributors are to be held entirely

responsible for the loss or theft of TOT.

For injection, agreement on the stamp paper (100 rupee) is verified and then pertaining to

the quota allocated to that locality TOT’s are dispatched to their shopkeepers. Similarly,

tracking team is assigned to hunt their investment whether it has been dispatched to their

real owner and verified again with the help of back check program. Whereas, when

shopkeeper leave or quit working that TOT has to be handed over to the next desired and

capable one.


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Team Tracking Department:

The department of team tracking is working efficiently in the company. This department

deals mainly with a significant asset of the organization namely human resource. Miss

Sadaf is manager of this department and Mr. Rizwan is her assistant.

The basic functions of this department are performed after a forecasted need or

specific requirement for vacant seat at managerial or officers level.

The team tracking department performs following tasks

Job Analysis:

Preparation and collection of applicant’s info.

Recruiting

Selection

Placing

Specifying jobs and roles

Training

Evaluation

Feed Back

Career development

Promotion within company

Out sourcing

Preventing violence in the workplace

Ensuring safety at the workplace

Transfer and promotions

First of all information about the jobs are collected and then deciding what level of

employee is needed to perform the job. Either is a manager level, executive, officer or

junior officer level.

For Managers and AMs Level 1

For Executives Level 2

For Officers Level 3

For Junior Officers Level 4


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Preparation and collection of applicant’s info:

Resumes are collected from applicants.

Recruitment Process:

After collection of CVs a test is conducted. For all four levels there are different types

of tests available. This test can be online test (through software) and can be written by

the Madam. If the applicant passes the test then a realistic job preview is done. In

which the applicant is shown the job environment and responsibilities.

After the RJP further interviews are collected.

The manager of team tracking takes 1st interview. It is an unstructured type ofinterview. The manager of respected department takes 2nd interview. This is a

structured interview.

After this GM and a panel of mangers take a 3rd interview. This interview is optional.

Sometime it is taken and sometime not. It depends upon the level of job.

Recruitment procedure

Major sources of potential job candidates are

Internal Search Advertisement

Employees Referrals

School placement

Interviews for worker level job where qualification and skill requirement is low, this

formal procedure is not adopted rather candidates abilities are fledged by department

head and sent to factory manager for approval. Orientation is the introduction of new

into his or her job & the organization. This is for few selected persons in NBC training

is generally on the job employees in all departments are bearing by the time or with the

help of seniors.

The organization provides compensation benefits to its employees such as:

Accommodation

Vehicle provision at officers and managerial level

Increment & bonus. Medical facility


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Time office maintains personal file of each employee, daily attendance, leaves,

incentives & commission etc., job descriptions and organizational charts are available

for all employees. Employees are rotated from one department/post to other on request

or when required. Payroll system.

Process of Recruitment and Selection Chart

CV acceptance Qualification

Written Test If Qualified RJP

Demand generation

By respective dept Experience

3rd

Interview 2nd

interview 1st Interview

Panel interview By Manager of by team tracking Manager

With GM Respected Dept

Final selection Joining


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Final Selection:

After clearing all interviews final selection is made.

Placement:

Then employee is placed on his job.

Career Path

General Manager

Manager

Assistant manager

Executive

Sales officers

Junior officer


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Profile of Employees:

Total employees in the Shamim & Co. are estimated to be 2000. Out of which

500 are permanent and the remaining are the temporary workers. In the summer

season the number of the temporary workers increases, who are lay off at the endof the season. These temporary workers are usually unskilled and work as

helpers.

Decision Making Style at SCL:

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

Autonomy:

SCL is completely autonomous in strategy development. There is no concept of dictation

from country office rather sharing of policies is more evident. Country office does not

provide any financial resources, human resources or managerial competence to SCL.

Involvement of country office is only up to the extent of creating advertisement &

publicity campaigns in which SCL also contributes.

Formal Communication Channels:

At SCL, there is no concept of informal communication between lower level managers &

top executives. They have to follow proper organizational hierarchy to communicate with

top level managers. For example, Area Sales Manager can’t directly communicate to GM

Sales. He will communicate with DSM which will in turn communicate with GM Sales.

This flow of communication leads to delay in decision making, noise in information &

misinterpretation.

Bureaucratic Management Style:

Decision making is highly centralized & ideas from lower levels are not welcomed. So

idea generation is not facilitated & top executives are responsible for developing strategies

for their own SBUs. This sort of arrangements restricts innovative strategies & lower level

participation in decision-making. Also only head of departments like top and middle level

managers are seemed to be motivated; there is no charm for lower level and sub-ordinates.


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Structure of the Marketing Department

Marketing Department Hierarchy

Marketing Operations

The Department performs the following operations:

Marketing Department

(Marketing strategy) (BTL budget planning

And execution)

BTL Execution and planning

Central workshop (base)

BTL execution process

Existing vendor setup

Budget planning

Marketing strategy

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

share.

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

Make strategy to increase sales of the company


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Functions of the Marketing Department

SEGMENTATION STRATEGY

It means that you divide the target market in to different groups. Market consists of buyers

and buyers differ in one or more ways. They may differ in wants, resources, locations and

buying practices. Through market segmentation companies divide large, heterogeneous

markets into smaller segments that can be reached more efficiently and effectively with

products and services that match their unique needs.

Segmentation is done on basis of the previously mentioned external factors and the

following:

Behavioral Base

It is how people perceive a specific product, in short psychological analysis of a product.

Pepsi all over the world is recognized as a quality drink and therefore people drink it

without any hesitation whenever they are thirsty or otherwise. So marketers of Pepsi have

made it a drink for all people and for diabetic people they introduced diet Pepsi.

Cognitive Base

It pushes and pulls the consumer. If the outlook of Pepsi bottle is desirable and it attracts

the consumer, he will buy it even if he isn’t thirsty.

TARGET MARKET

The market which is focused by the producer is called the target market. Targeting is to

focus on the target market to attract the customers.


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CHAPTER – 7 MARKETING STRATEGIES OF SHAMIM &

COMPANY

There are different marketing strategies which are applied in targeting. Some of these

strategies which Pepsi follows are discussed below:

Mass marketing

Big firms or companies say that everyone is their buyer whether they belong to rural or

urban area, big or small country, rich or poor, adults and small children etc. Pepsi is

mostly used by the young generation but it claims that it is moving towards mass

marketing.

POSITIONING STRATEGY

It means that you try to give image to your product in the mind of the customers. To give a

true and positive picture of the product is the best positioning. The company should

promote its good points or comparative advantage which it has over its competitors

DIFFERENTIATION STRATEGY

In order to serve your target market you introduce different things to your product so that

your product can be differentiated from other products.

Basis of Differentiation

There are many bases on which a product can be differentiated but Pepsi has differentiated

its product on the following base:

Product Differentiation

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


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Image Differentiation

Logo is used for image differentiation. Logo is what establishes a brand name in the

consumer mind. It is the brands identification, signature and image. Pepsi has kept on

changing its logo from time to time.

Marketing Mix Strategies

PRODUCT

.Pepsi has a product line comprised up of carbohydrate drinks, Lays and many other

products in Pakistan. Pepsi’s product line satisfies consumer needs because Pepsi produces

different types of soft drinks for different consumers.

The most popular product of Pepsi is Pepsi Cola. Due to its good taste Pepsi is a well-

known product. Thus Pepsi Cola satisfies the consumer’s needs efficiently by launching a

desired product.

New product development by Pepsi

Pepsi is doing new product development on frequent interval of times. The purpose of

which is to refresh the brand. By new products and innovative ideas consumers can easily

be attracted.

In following ways Pepsi is doing new product development.

New product category

Pepsi which is mainly a company of soft drinks After establishing a brand in Pakistan

Pepsi came into several new product category. Lays, kurkuray and aqua fina and recent

introduced brand sting which is highly used in fast food restaurants.

Product line extension

Dew and sting are the most recent addition in the product line of soft drinks which are

very popular especially among the youngsters.


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However Pepsi launch its several variants with a minor difference on frequent interval of

time. There have been many Pepsi variants produced over the years since 1903, including

Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold,

Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and Brazil), Pepsi Next

(available in Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico, Pepsi One, Pepsi

Ice Cucumber and Pepsi White in Japan.

Incremental Improvement

Pepsi jumbo is an example of incremental improvement made by Pepsi. It was 2.25 litter

bottle introduced few years ago in Pakistan. The purpose of this packing is to offer the

Pepsi to a family for one or two time meals. Price of this pack is also kept low so that is

can be affordable easily by the consumers.

PRICING STRATEGIES

Competition based pricing approach

Pepsi has intense competition with the coca cola the largest soft drink company world

wide. So its pricin exceed too much nor decrease to much as compared to the price of coca

cola. If price of the Pepsi exceed too much from the coke people will shift to the coca cola

and on the other hand if the price of Pepsi decreases people might get the impression that

quality of the Pepsi is also low.

Promotional Pricing Policy

Pepsi has offered promotional prices very frequently. Especially on some occasion Pepsi

reduces its rates. like in Ramazan Pepsi reduces its rate unto 5 Rs on 1.5 litter bottle.

Market Penetration Pricing Policy

Prices in beverage industry are determined by the consumer. In an economy like that of

Pakistan, consumers tend to switch towards a low priced product. Pepsi objective is to

target every consumer of the country so Pepsi has to set its prices at such a level which no

one can offer to its consumers. That is why Pepsi Cola charges the same prices as are


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being charged by its competitors. Otherwise, consumers may go for Coca Cola in case of

availability of Pepsi at relatively high price.

Promotional Strategies

In Pakistan Pepsi is the most liked soft drink especially by young generation so the Pepsi

cola company has devised such marketing strategy which attracted them. For this reason

they started monitoring the habits of the generation. What they saw was that the students

were crazy about cricket and usually liked to idealize them so in order to increase their

sales the Pepsi cola company paid high amounts of money to the cricketers to act as their

spokes men.

Some of the most famous cricketers in the modern era have acted as spoke persons also

film stars have been acting as spoke persons.

The Pepsi cola company has after doing research also has introduced different size of

bottles offered at lower prices so that every one can afford them. Also Pepsi Company has

introduced other soft drinks including mountain dew, seven up and marinda. Pepsi

company has introduced other flavors such as Pepsi twist, Pepsi max diet Pepsi.

Pepsi Cola Company has also become official sponsors of Pakistan cricket and has

sponsored a number of series.

Also Pepsi has donated a lot to the earth quake victims and has launched a number of prize

schemes to attract new customers

As a result of this marketing strategy Pepsi has become the largest seller of soft drinks in

Pakistan and is slowly forming a monopoly in drinks market. Although many soft drinks

like Pepsi have been introduced such as Amrit Cola, Quibla Cola offered at lower prices

but none of these drinks have been able replace it.


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Following are the strategies:

Comparative Parity Method:

As we have already discussed Pepsi pricing strategy is determined y consideration the

strategy of coca cola so in this case also Pepsi ads are telecasted with the competition in

coca cola which is its direct competitor.

Objective and task methods

When Pepsi introduced any new variant they have advertised it heavily. Objective of

which is to make a space for new product in the market. We have seen the heavy

advertisement of Pepsi max in previous days.

Seasonal advertisement:

Frequency of the Pepsi ads varies from time to time. When the season is on Pepsi do

heavy advertisement especially in ramzan days or eid occasions but this advertisement not

remain consist. We can hardly see the ads of Pepsi now as there is winter season.

Structure of sales department

Number of employees

There are almost 220 employees In the Sales department.

Sales operations

The sale departments perform the sale operation. First they market their products and after

that they sell their products to customers each of these department are individually or

separately involved in the marketing and sell their product. The sales department head is

also personally meet with business class customers and tells all detail to customers about

the product and they also contact with customer through telephone calls, give broachers to

customers for selling of the product.

The selling function is an important element of the overall marketing process. In many

instances, some component of the Marketing Department is responsible for developing


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leads and then turns them over to the Sales Department. Make sure that planning and

execution of plans is always coordinated, and that all programs are integrated across both

marketing and sales efforts.

Function of sales

The function of sale department is to sell the product and service of the organization and

the focus of a sales department is to coordinate sales activities to meet the customer

demand with appropriate supply. The next is to increase the sales volume considering a

particular period of time the sale department is link with marketing department to help

marketing department in meeting the sales volume force castled by then. To give

motivation by appropriate means to the sales persons and to give appropriate training tothem in carrying out the sales activities successfully the sale department analyze the

demands of markets and study the consumer's psychology, study market fluctuations,

prepare sale budgets, explore new markets and so on.

Sales are the activities involved in providing products or services in return for money or

other compensation. The marketing department generates potential customers and, it can

be beneficial for sales. The marketing department's goal is to bring people to the sales

team using promotional techniques such as advertising, sales promotion, publicity, and

public relations. The function of sale department is not to see the product and service to

customer but also satisfy other factor and provide them special attention because the sale

is performed by customer and it will be repeated if the customer is satisfy.

Sales methodology

Sale department is back bone of any organization No organization exists without the sale

department. After the procedure of the marketing these departments give the product to

customers finally. The main and the most important function of the sale department are to

coordinate the sale activities.

The operational manager and the head of sale departments do the personal selling to sell

their products to large business user. The employees in sales department personally meet

with customers and tell all detail about the features of the product.


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CHAPTER – 8 FINANCIAL ANALYSIS

Pepsi Shamim & Co. (Pvt) Ltd.

Balance Sheet

For the period ending 30 June, 2013

Total Assets Rs.

Cash & Cash Equivalents41,798,182

Accounts & Notes Receivable, Net26,657,334

Inventories606,134,761

Total Current Assets674,590,277

Property, Plant & Equipment, Net62,545,440

Goodwill100,000

Vehicles etc22,340,036

other Assets391,189

Total Assets759,966,942

Total Liabilities & Equities

Short-term Obligations419,017,087

Accounts Payable & Other Current Liabilities70,151,892

Income Taxes and markup Payable7,071,397

Total Current Liabilities496,240,376

Long-term Debt Obligations1,553,726

Total Liabilities497,794,102

Total equity262,172,840

Total Liabilities & Equity 759,966,942


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Pepsi Shamim & Co. (Pvt) Ltd.

Income Statement

For the period ending 30 June, 2013

Rs.

Sales1,529,726,171

Less: Cost of sales(902,538,441)

Gross Profit627,187,730

Less: Admin exp.(150,412,069)

Less: Selling and Marketing expenses(330,906,552)

Less: General and Other expenses(120,329,655)

EBIT25,539,453

Add: Other income4,884,866

NET PROFIT BEFORE TAXATION30,424,319

Less: Provision for taxation2,138,730

NET PROFIT AFTER TAXATION 28,285,589


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RATIO ANALYSIS

LIQUIDITY RATIO’S:

These ratios are important in measuring the ability of a company to meet both its shortterm and long term obligations.

Working Capital:

Working capital is an indication of the short – run solvency of business

Working Capital = C.A – C.L.

Year 2009 2010 2011 2012 2013

CA 343179640 390387892 468465470 562158564 674590277

CL 280253635 326286103 375229018 431513371 496240376

Working Capital 62926005 64101789 93236452 130645193 178349901

Current Ratios:

This ratio measures the short-term debt-paying ability of the company

Current Ratio = LC

AC

.

.

Years 2009 2010 2011 2012 2013

CA 343179640 390387892 468465470 562158564 674590277

CL 280253635 326286103 375229018 431513371 496240376

Current

Ratio 1.2 1.2 1.25 1.30 1.36


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ACID- TEST RATIO:

This ratio is like the current ratio but excludes current assets such as inventories and

prepaid expenses that may be difficult to quickly convert into cash.

Quick Ratio=Quick Assets / Current Liabilities

Years 2009 2010 2011 2012 2013

CA 42218250 49449960 57856450 67692050 79876619

CL 280253635 326286103 375229018 431513371 496240376

Q Ratio 0.15064301 0.151554 0.1541897 0.15687127 0.16096356

DEBT MANAGEMENT:

This is the most common measure of the ability of a firm’s operations to provide

protection to the long-term creditor.

TIME INTEREST EARNED:

TIE = EBIT /INTEREST EXPENSE

YEAR 2009 2010 2011 2012 2013

EBIT 13130022 15544100 18432038 21643604 25539453

Interest

Exp 1644312 1061878 1536003 1812483 2138730

TIE 8 15 12 11 12


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DEBT RATIO’S:

This ratio measures what portion of a company’s assets is contributed by creditors.

DEBT RATIO: TD / TA

YEAR 2009 2010 2011 2012 2013

TD 281275235 327307703 376403858 432864437 497794102

TA 385165619 439795604 527754820 633305785 759966942

Debt

Ratio 73% 74% 71% 68% 65%

D/E RATIO:

This ratio indicates the extent to which debt is covered by shareholders’ funds. It reflectsthe relative position of the equity holders and the lenders and indicates the company’s

policy on the mix of capital funds.

D/E = TD / TE

YEAR 2009 2010 2011 2012 2013

TD

28127523

5

32730770

3 376403858 432864437 497794102

CE

10389038

4

11248790

1 151350962 200441348 262172840

D/E 2.71 2.9 2.5 2.2 1.9


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ASSET MANAGEMETNT:

These ratios are important in measuring the efficiency of a company

1. Days sales in receivable:

Shows both the average time it takes to turn the receivables into cash and the age, in terms

of days, of a company's accounts receivable

Days sales in receivable =365/

Re

Sales Net

ceivablesGross

YEAR 2009 2010 2011 2012 2013

A/R 16881442 15527617 20156759 23180273 26657334

Sales 849952926 885258201 1062309841 1274771809 1529726171

DSO 7 6 7 7 6

PROFITABILITY RATIO’S:

Profitability Ratios show how successful a company is in terms of generating returns or

profits on the Investment that it has made in the business. If a business is liquid and

efficient it should also be Profitable. Ability to provide financial rewards sufficient to

attract and retain financing.

RETURN ON EQUI TY (ROE):

The Return on Equity of a company measures the ability of the management of the

company to generate adequate returns for the capital invested by the owners of a company.

Generally a return of 10% would be desirable to provide dividends to owners and have

funds for future growth of the company


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ROE = N.I / C.

YEAR 2009 2010 2011 2012 2013

NI 11485710 14482222 18102777 22628471 28285589

CE 103890384 112487901 151350962 200441348 262172840

ROE 11% 13% 12% 11% 11%

RETURN ON ASSET’S:

The Return on Assets of a company determines its ability to utilize the Assets employed in

the company efficiently and effectively to earn a good return. The ratio measures the

percentage of profits earned per dollar of Asset and thus is a measure of efficiency of the

company in generating profits on its Assets.

ROA= N.I / TA

YEAR 2009 2010 2011 2012 2013

NI 11485710 14482222 18102777 22628471 28285589

TA 385165619 439795604 527754820 633305785 759966942

ROA 3% 3.30% 3.40% 3.60% 4%

NET PROFIT MARGIN:

The Profit Margin of a company determines its ability to withstand competition and

adverse conditions like rising costs, falling prices or declining sales in the future. The ratio

measures the percentage of profits earned per dollar of sales and thus is a measure of

efficiency of the company.


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NPM = NI /SALE

YEAR 2009 2010 2011 2012 2013

NI 11485710 14482222 18102777 22628471 28285589

Sales 849952926 885258201 1062309841 1274771809 1529726171

NPM 1.35% 1.64% 1.70% 1.80% 1.85%


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CHAPTER – 9 VERTICAL ANALYSIS (COMMON SIZE

ANALYSIS )

From vertical of Shamim&Co (Pvt) L td Mu ltan I have concluded that the

performance of Organization is good from previous five years. In the vertical analysis I

have calculated the values of all items of Balance Sheet and income Statement in

percentage with respect to the sales and total assets. From these calculations I come to

know that the Current Assets and fixed asset are increased in every next year.

Shamim&Co (Pvt) L td Mu ltan Operating Income is increasing and Net Income increasing

in the every next month as total percentage of sales. Shamim&Co (Pvt) L td Multan is able

to receive its receivable on time due to which it receiving cash time by time and able to

pay back to its creditors on time. It means its average collection period as well as the

average payment period of the firm are good.

On the basis of my conclusion I can say that the overall performance of Shamim& Co(Pvt) Ltd Multan is good from previous five years.

Horizontal Analysis

From horizontal analysis of the Shamim&Co (Pvt) L td Multan I have concluded that

over all performance of the firm from previous five years is very good. From the last five

years its profit is increasing. Organization focusing on expansion in the last 3years as a

result of expansion its Fixed Assets 2010 increased by 35% and in 2011 increased by 60%.

Common-size

Percent

Analysis Amount 100

%= ×

Financial Statement Base Amount

Balance Sheet Total Assets

Income Statement Revenues


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Similarly current asset were also increased 20-25% in 2009, 2010 and 2011. But relative

to this its current liabilities increased less. So, it had enough working capital to which was

enough for solvency of organization. In 2007, 2008, 2009 Common Equity increased

while purchasing Fixed Assets.

Shamim&Co (Pvt) Ltd Multan its assets efficiently as result of this generating more profit.

So, we can say the performance of fixed asset is up to standard. Profit of Shamim& Co

(Pvt) Ltd Multan is also increasing 2007,2008,2009,2010 and 2011.

Critical Analysis

During the internship I fell that there is a bridge between educational and professional life

The thinks that we read and observe now has implemented practically it is necessary for us

to show our skills the task and assignment which is assigned us during educational life is

very helpful in professional life and show us the new way of innovation and success

I completed my internship program in shamim & co. during this period a worked in

marketing key Accounts and human resource department. Theoretically marketing tells us

to build customer value and in return value from the customer. During working in

marketing dept I analyze that this department support theoretical concepts

This department focuses on the positioning the customer by building strong relationship to

retain customers. As compare to main competitor coca cola the sponsorship of the shamin

& co. sponsor the local events.

My fifth was in key accounts department. This dept just focus on the retention of the main

customer and highly keep check on the competitors and pay full devotion to convert into

Pepsi exclusive.

My last week was in HRM dept there is a strong culture. Their selection process and the

compensation process are perfectly working

But they are not appraising the employees properly and there is no proper infrastructure

And the dead bad thing is ethical Issue in co.


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CHAPTER – 10 SWOT ANALYSIS

STRENGTHS:

High brand image and customer loyalty

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

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

quality products.

Effective and efficient management of distribution channel allows Pepsi Multan to

cover a huge geographical area.

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

operations effectively so that machine downtime is reduced to minimal.

Very huge production capacity 500,000 per day.

Pepsi provides its own transport to distributors to cover those geographical areas

where competitors are not distributing their products because of difficulties to

reach there.

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

PEPSI

Strong coordination between different departments

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

research

They are proactive in their competitive strategies.

They are having more than one supplier for a particular material to avoid stock

outs in case of high demand or supplier’s inability to ship material.

Daily revision of production schedule based on daily demand.

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

Their plants are capable of producing round the clock.

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

PEPSI brands

They have a recovery department which is responsible for the collection of bad

debts and identifying sales of low graded PEPSI.


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Weaknesses:

Poor feedback from employees

Insufficient salaries

Monopoly of distributors cause harm to company

Loading and unloading of trucks can take place only in the night because of the

law permitting trucks to enter into urban areas only in the night.

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

its vehicles.

No involvement of lower level subordinates in decision making.

Opportunities:

Because of high customer loyalty and brand image new brands can gain customer

preference very soon.

There is high market growth opportunity

Country office is responsible for national ad campaigns which facilitate PEPSI

Multan to enjoy the benefits of integrated advertisements.

New brand introduction

Low cost skilled person availability

Strong consumer commitment with Pepsi.

Threats:

Coca- Cola is on its way to get market share

Amrat and Makka cola also trying to get market share

Changes in consumer purchasing power

Increase in competition

Inflation

Due to blame of religious group

No proper employee’s orientation programs


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Suggestions

On the basis of SWOT analysis I observed that shamim & Co. Multan is working in a very

well manner. But I think they are lacking in some areas. So they need to improvement in

some aeas. I have following suggestions to cope with their weakness and threats and take

competitive advantage of theor strengths and opportun

report on shamim & co. naveed

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