Pepsi Internship report

MBA 7th (M)

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Intership Report
on Pepsi.

Submitted to
Mr.Rashid saeed

Submitted by
Abdul jabbar 16-37 Anwar ul haq 16-03

Programme
MBA 7th (M)

Date
19-09-2019

Bahadur Sab Campus Layyah

Bahauddin Zakariya University Multan
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Dedications:

Dedication is a devotion to whom we love, who our benefactors are, who pray for us and who
made us capable of doing all these under this head, there are some personalities, which are our
PARENTS, our BROTHERS & SISTERS, our TEACHERS & our FRIENDS. So we have devoted our
report to our beloved Parents, Brothers, Sisters, loving Friends &

“WELL WISHER Mr.Rashid Saeed

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ACKNOWLEDGEMENT

Person is not a perfect in all the contexts of his life. He has a limited mind and mind thinking
approaches. It is the guidance from the almighty Allah that shows the man light in the darkness and
the person finds his way in this light. Without this helping light, person is nothing but a helpless
creation.
The teaching of the Holy Prophet Muhammad (PBUH) were also the continuous source of guidance
for us especially his order of getting knowledge and fulfilling once duty honestly was key motivation
force for us.
We are very grateful to Almighty Allah who permitted me to be trained in a real world
organization, PEPSI, as well as to complete this report in a very limited time.

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INTRODUCTION

1.01 History of Pepsi

One of America’s favorite soft drinks, Pepsi-Cola, didn’t make it to the Taste test stage …
several times. The ability of the product to survive several bankruptcies, numerous
management changes, and major internal squabbles made it an even stronger player in the bid
for consumer taste acceptance.

Our story begins with the birth of Caleb D. Bradham in 1867. Bradham was born in
Chinquapin, North Carolina in 1867. Chinquapin is a rural community about forty miles
south of New Bern, North Carolina. New Bern is a seaport town which was first settled in
1710 by Swiss and Germa

The pharmacy of Caleb Bradham, with a Pepsi dispenserThe drink Pepsi was first introduced
as "Brad's Drink"[2] in New Bern, North Carolina, United States, in 1893 by Caleb Bradham,
who made it at his drugstore where the drink was sold. It was renamed Pepsi-Cola in 1898
after the root of the word "dyspepsia" and the kola nuts used in the recipe. MBA 7th (M)

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1919 newspaper ad for Pepsi-Cola

A plaque at 256 Middle Street, New Bern, NC

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented
warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in
six-ounce bottles, and sales increased to 19,848 gallons. In 1909, automobile race
pioneer Barney Oldfield was the first celebrity to endorse Pepsi-Cola, describing it as "A
bully drink...refreshing, invigorating, a fine bracer before a race." The advertising theme
"Delicious and Healthful" was then used over the next two decades.[4] In 1926, Pepsi received
its first logo redesign since the original design of 1905. In 1929, the logo was changed again.
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 the wildly fluctuating sugar
prices as a result of World War I. Assets were sold and Roy C. Megargel bought the Pepsi
trademark.[3] Megargel was unsuccessful, and soon Pepsi's assets were purchased by Charles
Guth, the President of Loft, Inc. Loft was a candy manufacturer with retail stores that
contained soda fountains. He sought to replace Coca-Cola at his stores' fountains after Coke
refused to give him a discount on syrup. Guth then had Loft's chemists reformulate the Pepsi-
Cola syrup formula.

1.02 Pepsi Cola in Pakistan

Pepsi-Cola is one of the best soft drink in the world. The company has operated continuously
for over 40 years offering a range of quality products Pepsi, Diet Pepsi, Miranda, 7UP, Diet
7UP, Mountain Dew.

Pepsi is very popular in Pakistan and it holds about 70% in the soft-drink market. Pepsi Cola
International, a remarkable name in the cola industry is running its business in Pakistan
through different distributors

These distributors are!

1. Riaz Bottler Lahore

2. Pakistan Beverage Karachi
3. Punjab Beverage Faisalabad
4. Naubahar Bottler Gujranwala
5. Haidri Beverages Islamabad
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6. Northern Bottlers Peshawar

7. Sakhar Beverages

1.03 Organizational Structure:

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1.04 Nature of Business:

Pepsi is a FMCGS (Fast Moving Consuming Goods) produced in bulks. Pepsi is consumed
regularly that’s why Plants work continuously 24 hours.

1.05 Type of Ownership:

Ownership of Pepsi is franchise in Pakistan, because Mother Company of Pepsi is located in
USA. In Pakistan Pepsi is working as a franchiser. There are seven franchisers who operate
Pepsi Co in different cities of Pakistan include
1.Riaz Bottler Lahore
2.Pakistan Beverage Karachi
3.Punjab Beverage Faisalabad
4.Naubahar Bottler Gujranwala
5.Haidri Beverages Islamabad
6.Northern Bottlers Peshawar
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7.Sakhar Beverages

1.06 Key Players of Pepsi:

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Pepsi Strategic Management Project Report Pepsi international is working in Pakistan with
just 18 employees of its own which are controlling and facilitating its bottlers. The key player
who is controlling the entire system of Pepsi Beverages in Pakistan is the Regional Head.
Under the supervision of Regional Head there is a Country Head who is facilitating the other
main Four Designations:

•Franchise Directors
•Marketing Director
•Operations Director
•Chief Finance Officer

 Regional Head:
Regional head is responsible for all the activities which are taking place in Pakistan under
any other head of department. Regional Head directly reports to the head office located in
America.

 Country Manager:
Country Manager is controlling the other four department heads. He looks after and supports
them in implementing the Pepsi International strategies, policies and rules. At the end he is
responsible to report the Regional Head

 Franchise Director:
To look after and to give the moral and practical support Franchise Director uses two other
Designations which are Franchise Manager and the other one is Sales Development Manager.
Any query from any of the bottler can be solved through these two designations.

 Marketing Director:
Brand Manager of colas, Brand Manager of Flavors & Brand Manager Aquafina work to
support the Marketing Director. This department is responsible to promote and advertise the
products in the country. No promotion and advertisements can be done by the bottler itself.
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 Operation Director:
All the activities which take place under the administration of operation head are supervised
supported and controlled by the Operation Director with his two other subordinates i.e.
Operational mangers.

 Chief Finance Officer:

All the activities like cost evaluation, budgeting, financial analysis and controlling the taxing
system etc are performed under this department with the support of Planning manager,
Controller and Business Analysis Manager. Chief Finance Officer is directly reports to the
Country Head.

1.07 Mission/Goals/Objectives:
INCLUDES!

 Vision
 Mission
 Objectives

 Vision:
To be the premier convenient food and beverages company with brands that are known and
respected in every corner of the world.

 Mission:
We aspire to make PepsiCo the world’s premier consumer Products Company, focused on
convenient foods and beverages. We seek to produce healthy financial rewards for investors
as we provide opportunities for growth and enrichment to our employees, our business
partners and the communities in which we operate. And in everything we do, we strive to act
with honesty, openness, fairness and integrity.

 Objective:

The major objective of the company is to produce and supply highest quality products, which
confirms to both the national and international quality stands. The company is committed to
provide maximum level of customer satisfaction.
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COMPANY ANALYSIS

2.01 STEPLE ANALYSIS:

 Social Analysis:
Pepsi is highly committed to welfare of humanity and social wellbeing and contributes to its
cause by donating handsome amounts to key organizations like;

•LUMS 10 million

•Shaukat Khanum memorial Hospital 10 million to patient diagnoses for free of cost

•Care Foundation 5 million.

•And other NGOs

•Pepsi donated a large sum for earthquake victims relief in October 8, 2005, Pepsi contribute
U.S $2 million (Rupees 120 million) to assist victims of earthquake in Pakistan.

 Technological Analysis:
•Fast production line.

•Less input required from humans

•Automated Plant produces 110 bottles washing to filling in 1 min.

•Main Plant location (which mixes the concentrate with water and send it to its franchise in
seal pack drums)

•110% standardized fulfillment

 Economical Analysis:
•As the main ingredient (concentrate) required making the beverage is imported from main
office in America, frequent changes in the Dollar price can affect the company economically.

•As the company is bound to the agreement with government, its keeping the price of Pepsi
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(250ml) at Rs 12, while according to the high cost of production, price should be 16 Rs.

 Political Analysis:

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•Riaz bottler is one of the franchise owners with remarkable political influence in his territory
and at times he try to be abstinent from the company regulations and policies; this directly
affects the company in terms of market share, profits and others.

•Government policies changes relating beverages industry due to instability in political

factors

 Legislation Analysis:
•If the government changes the prices of Beverage industry, then company pass on 30%-
40%of the changed prices to the consumer.

 Environmental Analysis:
•If the International Standards change rapidly then it can affect the company internally and
externally because the Pepsi is always ready to have updated fulfillment of international
standards.

•Company claims that prod uces no Wastage, but any negligence can badly affect the
environment.

•Use wastage in recycle process (glass bottles

•Non recyclable plastic bottles are a source of environmental pollution.

SWOT analysis

SWOT is the abbreviation strength, weakness, opportunity and threats as we

know the first analysis point is strength of an organization and Pepsi’s strength
is highly dependent on success factors.

Key Success factor:

Following are the key success factors of Pepsi cola that are playing important role in the
success of Pepsi cola in Pakistan.

 Strong marketing:

Pepsi cola have strong marketing campaign in Pakistan. They are doing 360’ marketing
campaign for the awareness of their each product. They have different promotional
campaigns for different products. They are also using brand ambassadors in their
advertisement that creates positive image and strong loyalty with the product.
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 Strong committed employees:

Pepsi cola have committed employees who gave them the best output and loyal with the
company and this is because of motivation from the company. One of the main reasons of the
loyalty with the company is incentives and benefits given by the Pepsi cola to its employees
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for their betterment. And due to these benefi ts the employee can’t switch to any other
company. Empowerment is also the main reason for commitment with the company.

 Decentralized in decision making:

Decision making system in Pepsi cola is decentralized the decisions are made on top level
management but management also involved the middle line and front line management as
well in their decision.

 Financially strong:

Pepsi cola is financially strong company they have the potential for more growth and they
can enhance their product line.

 Dominant market share:

Pepsi cola have 72% dominant market share in the Pakistan as compare to its direct
competitors like coca cola. And still the company is working for capturing the more market
share.

 Target market:

This is also one of the reasons in the success of the Pepsi cola. Pepsi cola is doing mass
marketing in the Pakistan they are hitting all types of customers and filling the demand of
every type of customer.

 Strength:
 Pepsi itself is a strong brand name which is strength for the company.
 Pepsi has a broader product line and exceptional reputation.
 Strong distribution system all over Pakistan.
 Product is very convenient for all type of customers
 Record revenues and increasing market share.
 Financially very strong.
 Existing customer loyalty is high with Pepsi.

 Weakness:
 Company is unable to control the distribution
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 TQM ( Total Quality Management) is not properly implemented in production of

pepsi.

 Opportunity:
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 Non-carbonated drinks are the fastest-growing part of the industry, so they must
launch more such products. Pepsi co must also enter into juice and non carbonated
drinks industry.
 Install vending machines in different public places to promote product and brand
name.
 There are increasing trend towards healthy food
 Penetrating marketing would motivate considerable sales growth
 Contract with cellular companies as a payment mode to use vending machine in a fast
and efficient manner.

 Threats:
 Coca-Cola is the main direct competitor of Pepsi. It had always been a big threat for
the company.
 Local brands are also the threat for Pepsi.
 Illegal in house production of beverages using Pepsi brand.
 Rapidly changing life style and taste, which may divert people from carbonated drink
to non carbonated drinks.
 Instability and fluctuation in the prices of dollar regularly.
 Movement against Pepsi by the extremists e.g. “Be Pakistani and Buy Pakistani”
 Security condition of the country is not satisfactory.

Internee activities

There were different type of learning and activities which I performed

as I learned by class week vise during my internship.

1st week activities

Customer dealings

In first week I met with different type of shopkeepers and customers

and I learn how we can deal we offered different incentives and
discounts as well as promotions.

These are the ways those I learned in sales management to deal a

customer.
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Be honest with the customer at all times.
A reputation of honesty and integrity is crucial to building long-term customer
relationships. In fact, customer trust can be as important as the quality of the products
you sell or services you offer.
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Always keep your commitments. Attempts to earn trust by making commitments that
cannot be kept will only hurt the customer relationship.
Be open and honest about any problems you encounter. If you cannot meet a deadline,
have difficulty locating a particular product, or encounter difficulties providing a specific
service, notify the customer immediately

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Be transparent in your business dealings.
This means focusing on providing a complete answer in response to customer queries
and concerns. Be honest in those communications and set reasonable expectations for
getting back to clients if you need to do some research before making a response.
Doing so leaves the impression that what the customer thinks matters greatly and that
the customer is in fact your priority.
You can create an online resource for customers to track orders, monitor the progress of a
project, or find other important information about the particular product or service they
have invested in

3
Always acknowledge mistakes, problems and delays.
Customers will often know when you are telling the truth and when you are not
providing all of the relevant information. Long-term customer relationships are built on
transparency and trust

4
Say thank-you to your customers.
Showing your appreciation for a customer's business and loyalty is key to maintaining
a good relationship with them. Expanding your business requires not only new
customers, but also clearly communicating your appreciation to loyal customers.
Reward programs for frequent customers, particularly for those who invest the most time
and money in your business, helps to create loyal customers. Rewards might include
loyalty points cards, gift cards, and special sales

Building relationship
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In first week I also try to build relationship with customers through

making different type of telephonic contact.

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And as I learned in class I build the relationship through using the

concepts studied in organizational behaviour book 11 Ways to Build
Solid, Strong, Lasting Business Relationships

1. Be Authentic
This is pretty simple. Be who you are and accept others as they are. It’s easy to create a false
persona, especially online, but that is not the way to start a relationship and short lived when
we start qualifying people and companies. Find people and companies you feel a natural
connection and ease of communication with and things you both have in common. The
authenticity of connecting personality, beliefs and point of view can accelerate relationships.

2. Identify Shared Goals and Values

We seek out people in life we like, share similar goals and values with. Are they honest, kind,
knowledgeable, helpful? How do they treat others? This is about moral character. Do we
respect them? I have sadly seen too many people present themselves one way only to take
advantage of people, once they have their trust. We may not always share the same point of
view with everyone, but the shared values are a must.

3. Develop Mutual Respect

I find this takes time, unless someone is referred to you by a trusted connection. We prove
ourselves over time and through different activities and experiences. Join a chamber,
professional group, or online community which are all great environments to develop
relationships. Be patient, selective and watch people in action. Building mutual respect is an
essential for growing relationships.

4. Share Some Vulnerability

We are human and sometimes that means sharing and supporting people through difficulty,
challenge and change. Showing our vulnerability is part of our authenticity. One word of
caution: this is best shared with a select few rather than more publicly. Use good judgment
here.

5. “I’ve Got Your Back”

Let people know that you have their back as a way of showing loyalty to them. I have been at
way too many events where gossip and unnecessary conversations go down among people
that simple shouldn’t be doing that. As tricky as this can be, I have selectively addressed
certain people directly and respectfully asked them to reconsider those conversations and
choose not to continue interacting with them.

6. Make Meaningful Connections for People to Network

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with Each Other

The greatest compliment in business is a referral. We should be thoughtful, have the right
motives and be connecting people for the right reasons. Not all referrals work out. It takes
two to make it happen and work, so don’t be doing all the work.

7. Get More Personal

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If you really want to get to know people, ask them to go for coffee so that you can talk more
personally, one on one. Be willing to share experiences, ideas, points of view and simply
learn more about each other’s story, family and professional history.

8. Plan Something Fun to Do Together

All work and no play makes us dull! Be willing to go out and do something fun together that
may not have anything to do with work. Music, art, entertainment, meet ups and community
events are all fun things to do to see different sides of people. Not to mention some random
and memorable conversations and laughs that can come out of it.

9. Let Go of Expectations
Always go into relationships with an open mind, realistic expectations and never assume.
People are only who we think they are based on what our interactions have been with them.
One of the best pieces of advice I got from a client was: accept the way people are not as you
want them to be. If we have preconceived expectations of people, then we are setting
ourselves up for disappointment.

10. Schedule Brainstorming Time

Block out dedicated time to brainstorm, engage and do business together. Best to set a regular
time, a time limit and an agenda for what you want to accomplish in it. Leave some time
unexpected discussion.

11. Offer Something Before Asking for Something

In 2010, Trendwatching.com came out with a trend brief that highlighted “serving is the
new selling”. They put a name on what we were already knew was the trend shift in sales and
marketing and now it is the norm in business, social media and content marketing.
When we educate, help and inspire others with our experience and expertise, we are building
the foundation for trust that underlies relationships that endure. When we blog, create
content, speak, do a workshop, webinar, write an e-book, go to events, we are serving and
helping.
When we get more serious and engaged on LinkedIn, Facebook, Twitter and other social
media where community gathers and exchanges ideas, we are serving and helping . Serving
and helping builds trust like nothing else.

2nd week activities

Accounts management

And did some business level strategies which I learned in the class these
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are some business level strategies

BUSINESS LEVEL STRATEGY:

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In business level strategy we discuss how a single firm or business unit competes in only one
market and is essentially a self contained. The fair most common approaches to business
level strategy are:

 Adaption Model:

The basic purpose of this strategy is to match the business strategies with basic environmental
conditions.

 Prospector:

Work or act on a corporate strategies. Company always works as a prospector to take

preventive actions. Company scans the environment and after the analysis of the competitors
and situation they plan things.

Pepsi cola using the prospector approach because of “Aqua Fina” launched b6 months before
of its exact launched time because that time coke was going to introduce “Kinely”.thats is
why Pepsi took the proactive action and introduced the “Aqua Fina” before the “Kinely” to
capture the market before the competitor.

 Analyzer:

Having the knowledge of market share & Competitors Pepsi has planned to launch
Tropicana. Because company analyzed that there is very much room available in these types
of products. After evaluating the overall market then Pepsi has decided to introduce
Tropicana.

 Defender:

Pepsi some time also act as a defender because to retain the loyal customer and to sustain the
market share Pepsi use the defender strategy according to the situation. Company use product
development/enhance existing product line and also some marketing techniques to be use to
defend the company’s products.

 Reactor:

Reactor strategy always be pushed by or to give the full support to the defender strategy,
reactor strategy is basically is the implementation of the defender strategy. e.g. in Ramadan
when coke decrease the price of 1.5 Liter coke from 50-45 then immediately Pepsi acted as a
reactor and also decrease the price of 1.5 Liter Pepsi from 50-45.
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3rd week activities

Establishing new product

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That is the process that I learned after studying in brand management

subject.

How to Build a Brand

1. Determine your brand’s target audience.
The foundation for building your brand is to determine the target audience that
you’ll be focusing on.

When brand building, keep in mind who exactly you are trying to reach. You’ll
tailor your mission and message to meet their exact needs.

2. Establish a brand mission statement.

Have you thought about your brand mission? In essence, you’ll have to craft a
clear expression of what your company is most passionate about.

Before you can build a brand that your target audience trusts, you need to know
what value your business provides.

The mission statement basically defines a purpose for existing. It will inform every
other aspect of your brand building strategies.

Everything from your logo to your tagline, voice, message, and personality should
reflect that mission.

When people ask you what you do: answer them with your brand mission
statement.

3. Research brands within your industry niche.

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You should never imitate exactly what the big brands are doing in your industry.

But, you should be aware of what they do well (or where they fail).
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The goal is to differentiate from the competition. Convince a customer to purchase

from you over them!

We’re always thinking about how to make a brand stand out. Don’t skip this step
in the brand building process.

Research your main competitors or benchmark brands. For instance, study how
well they have gone about building a brand name.

For a brand name to be effective, it needs to be easy for consumers to recognize

and remember.

4. Outline the key qualities & benefits your

brand offers.
There will always be brands with bigger budgets and more resources to command
their industry.

Your products, services, and benefits belong solely to you.

Starting a brand that is memorable means you dig deep to figure out what you
offer, and no one else is offering.

Focus on the qualities and benefits that make your company branding unique.

5. Create a brand logo & tagline.

When you think about how to build a brand, visuals probably come to mind first.
This step may be the one where you need help with execution.
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The most exciting (and arguably the most important piece) of the brand building
process, is to create a brand logo and tagline for your company.

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This logo will appear on everything that relates to your business. It will become
your identity, calling card, and the visual recognition of your promise.

So be willing to invest the time and money by creating something exceptional to

reinforce the visual identity for your business.

Need help branding your business? Hire a professional designer or brand agency
with logo and identity design experience, to help make your brand stand out. Their
expertise will ensure that you get a unique and timeless mark for your business.

6. Form your brand voice.

Your voice is dependent on your company mission, audience, and industry.

It’s how you communicate with your customers, and how they respond to you.

7. Build a brand message and elevator pitch.

When building a brand, tell customers succinctly who you are.

Use the business voice you have chosen for your brand.

Your message should be intricately associated with your brand and conveyed in 1-
2 sentences.

8. Let your brand personality shine.

Customers aren’t looking for another cookie-cutter company who offers the same
thing as everyone else.
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They are looking for an experience tailored to their needs, backed by genuine
personal interaction.

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9. Integrate your brand into every aspect of

your business.
The brand building process never stops.

Your brand should be visible and reflected in everything that your customer can
see, read, and hear.

Let me explain.

If a client walks into your office, or a customer walks into your store—your brand
image should be on display both in the environment and with personal interactions.

Anything tangible–from business cards to advertisements, to packaging and

product–needs the stamp of your logo.

On any digital platform, ensure that your brand looks the same everywhere. Use
your brand style guide to create consistency with visuals such as color and logo
use, fonts, photography, etc.

Your website is the most important tool for marketing your brand. When you
design your website: incorporate your voice, message, and personality into the
content.

10. Stay true to your brand building.

Unless you decide to change your brand into something that is more effective
based on measured consumer response, consistency is key.
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Once you’ve chosen a brand voice, use it for every piece of content you create.
(See above, Step 6 in the brand building process.)

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Document all the brand guidelines you create and distribute internally for
reference.

What is brand building worth, if it is not consistent? Don’t constantly change your
branding. The inconsistency will confuse your customers, and make long-term
brand building more difficult.

11. Be your brand’s biggest advocate.

Once you build a brand that works for your small business, you (and your
employees) are the best advocates to market your brand.

No one knows your brand better than you, so it’s up to you to spread the word.

When hiring employees, ensure that they are a culture fit–aligning with the
mission, vision, and values of your brand.

4th week activities

Managing the stock

Effective stock control methods

Just In Time (JIT) aims to reduce costs by cutting stock to a minimum - see avoid the problems of
overtrading. Items are delivered when they are needed and used immediately. There is a risk of running out of
stock, so you need to be confident that your suppliers can deliver on demand.
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These methods can be used alongside other processes to refine the stock control system. For example:

1. Re-order lead time - allows for the time between placing an order and receiving it.

2. Economic Order Quantity (EOQ) - a standard formula used to arrive at a balance between holding too much
or too little stock. It's quite a complex calculation, so you may find it easier to use stock control software.
InventoryOps provides information about the EOQ formula.

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3. Batch control - managing the production of goods in batches. You need to make sure that you have the right
number of components to cover your needs until the next batch.

4. First in, first out - a system to ensure that perishable stock is used efficiently so that it doesn't deteriorate.
Stock is identified by date received and moves on through each stage of production in strict order.

5th week activities

Dealing with distributors

6th week activities

Visiting the shopkeepers and analyzing the competitors activities

Recommendations:

 Train local employees instead of foreigners to work in production Department

 Update TQM Standards for betterment of Continuous Processes
 Improve Packing Process to Maintain the quality in different Packing(250ml and
cans)
 Stop In-house Production
 Implementation of Rules within the Territory of All the Franchises
 Install vending machines in different public places to promote product and brand
name.
 Mobile Vans must be introduced to attract the consumers towards Pepsi brands
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