AN ORGANISATIONAL STUDY

AT

LUMBINI BEVERAGES Pvt. Ltd.

(A FRANCHISING PLANT OF PEPSICO.HAJIPUR, BIHAR)

A Project Report Submitted to the Bangalore University

For the Partial Fulfillment of the Degree of

MASTER OF BUSINESS ADMINISTRATION

By

RAJEEV KUMAR

REG.NO: 10RWCMA076

Under the Guidance of

Mrs.Divya Nair

DEPARTMENT OF MANAGEMENT STUDIES

T.JOHN COLLEGE, BANGALORE-560087(2010-2011)

1
 CHAPTER-1

INTRODUCTION

2
1.1-INTRODUCTION

Beverage industry is one of the fast growing industries in India .it can be divided into two
sections i.e. carbonated and non-carbonated. the carbonated drinks that can be further classified
into cola, lemon orange, mango and apple segments.
As far as the soft drink market is concerned, it is facing the cut throat competition because of the
availability of a large number of indirect as well as direct competitors. Single company offers the
soft drink to the market in different taste and flavors. In this industry entire range of flavors are
produced by other competitors also. More often it becomes impossible to differentiate between
the same flavors of two different brands, when served in plane container, range also. All these
factors together make the situation complicated. besides both corresponding brands have the
similar price.

Caleb Bradham, a New Bern, N.C. druggist who first formulated Pepsi-cola, founded Pepsi Co.‟s
beverage business at the turn of the century i.e. in the year 1890. A young phannacist Called
Bradham began experimenting in 1890 as a cure for dyspepsia (indigestion) with combination
of spices, 1 juices and syrups and created a refreshing new drink to serve his customer. He
succeeded beyond all expectations as he invented the new beverage now known around the
world as "pepsico"

In 1902, he launched the Pepsi Cola Company in the back room of pharmacy, and applied to
U.S. patient office for Trade Mark. The business began to grow and on June 16,1993, Pepsi-Cola
trademark was officially registered with U.S. office. Bradham believed marketing would e the
key to

PEPSI-COLA prosperity and in his first year of business he spent $1900 on advertising when he
sold 40,000 liters of syrup. In 1905 he built Pepsi fits bottling plant. Three more plants followed
soon and in 1907, he was selling 50,000 liters year.

Troubles started at the end of the First World War when Bradham over stocked sugar at high
price, which subsequently dipped in 1920. By 1922, the company was insolvent by 1923, it went
bankrupt and Bradham returned to pharmacy.

3
In 1931, the company went bankrupt for the second time. At this time charless Groth, president
of a giant candy company both the trademark. His success came when he offered a 12-ounce
bottle at 5 cent while other colas were sold at the same price in 6 ounce bottles. In 1936, Pepsi
has a $2 million net profit.

Today consumers spend about $31 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-
Cola products-including Diet Pepsi, 7UP Pepsi Blue, Mountain Dew, slice and Mugvrands-
Account for nearly one third of total soft drink sales in the United States, a consumer marker
totaling about $56 billion.

In 1992 Pepsi-Cola formed a partnership with Thomas J. Liption Co. Today Liption is the
biggest selling ready to drink tea brand in the United States. Outside the United States, Pepsi-
Cola Company's soft drink operations include the business of even- up International; Pepsi-Cola
beverages are available in about 170 countries.

Pepsi-Cola began selling it products internationally in 1934 with its operations in Canada.
Operations grew rapidly beginning in the 1950s. Today Pepsi-Cola products account for about a
quarter of all soft drinks sold internationally. In addition to brands marketed in the United States,
Major products include Mirinda and Pepsi Max.

Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottles
and food service customers. This includes some of the world loved and most recognized
advertising. New advertising and exciting promotions keep Pepsi-Cola brands young.

In 1940, history was made when the first advertising jingle was broadcast nationally. The jingle
was "Nickel Nickel" an advertisement for Pepsi Cola that referred to the price of Pepsi and the
quantity for that price. "Nickel Nickel" became a hit record and was recorded into fifty-five
languages.

In 1964, Diet Pepsi was introduced.PepsiCo is a world leader in convenient snacks, foods and
beverages, with revenues of more than $39 billion and over 185,000 employees.The company
consists of PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB) and PepsiCo
International

4
Some of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively
young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana
was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in
2001.

5
 CHAPTER-2

INDUSTRY &
COMPANY PROFILE

6
2.1-INDUSTRY PROFLE

This left a large vacuum in the popular soft drink market, and a beverages was opened to any
company with the requisite, technical, marketing and organizational skills.

The exit of beverages co. from India in 1977 accelerated the growth of several Indian Soft Drink.
New soft drink in the form of Tetra pack entered the market among Frooti, Jump-In and Treetop
were the prominent once. Till 1977 their equipped bottling plants and the distribution network a
longing to be of no use. It took them one year to develop new formula to survive and gradually
came up with Campa, Lemon, Orange and Cola that order.

However Parle, the pioneer in the soft drinks, blazed its way to national prominence with their
product “Thumps Up” bearing the slogan “Happy Days Are Here Again”. This particular slogan
helped to win over the loyalists or addicts to Coca-Cola, who was in the state of “Cola Shock” or
Cola Depression. Soon the Indian Soft drink industry started at a phenomenal rate, and all Parle
Products Gold Spot, Limca and Thumps Up became the brand leader in their own segment.

In spite of all these, the drink market still has large gap, as claim by soft drink manufacturers. To
fill these gaps there are many soft drinks concentrate and squashes flooded the market. The
Indian soft markets basically offered three flavours i.e. Orange, Lemon and Cola.

2.2-THE INDIAN SOFT DRINK HISTORY

Gold Spot is considered as the first branded soft drink in India it was introduced by Parle in early
forties. Coca-Cola was the foreign soft drink to be introduced in Indian markets. The Coca-Cola
Company entered India in the early fifties, when four bottling plants were set up at Mumbai,
Kolkota, Delhi, and Kanpur. Coca-Cola enjoyed a good beginning and dominated the market.
Parle exports private limited, the major domestic player, and later in 1970 introduced “Limca”
lemon soft drink. Before Limca‟s they had attentively introduced “cola Pepino” which was soon
withdrawn from the market following the confrontation with Coca- Cola.

In July 1977 Coca-Cola left India following a public dispute over shareholding Structure and
imports permits. Coca-Cola left a big gap, which was filled by several companies who came

7
forward pushing different brands in market. Parle Products introduced their Cola “Thumps Up”,
pure drinks introduced

Double Seven” “Thrill”, “Rush”, “Sprint”. At the same time various regional soft brands played
an independent role in their respective territories like “Duke”, “mangola”.

After coke was asked to leave India Pepsi began to lay plans to enter this huge market. Pepsi
started its operations in April 1989 for beverages snack foods and export business. In 1990 first
Pepsi Cola was produced in India. In the next year 1991, production of Mirinda and 7up started,
the production of Slice Teem, Fountain Pepsi started in 1993.

Coca-Cola came back again in India in October 1993 and was launched in Agra.It joined hands
with Parle Exports Pvt. Ltd. To enter India and gradually took over the same company. The
nineties also saw a new foreign entrant Cadbury Schweppes that rolled out Canada dry and
Crush in metropolitan cities. Pepsi entered the cloudy lemon market category by launching its
Mirinda lemon in 1998.

In May 1999 a notification, presented the prevention of food adulteration (fourth amendment)
Rules 1999, allowed the use of the artificial Sweeteners, aspartame and acesulfame potassium in
The formulation of soft drinks-which was what made the entry of Diet Pepsi and Diet Coke.
Coca-Cola also rolled out its popular clear lemon drink Sprite in India in the same year 1999.

Soft drinks can trace their history back to the mineral water found in springs.Soft drinks can
trace their history back to the mineral water found in natural springs. Bathing in natural springs
has long been considered a healthy thing to do; and mineral water was said to have curative
powers. Scientists soon discovered that gas carbonium or carbon dioxide was behind the bubbles
in natural mineral water.

The first marketed soft drinks (non-carbonated) appeared in the 17th century. They were made
from water and lemon juice sweetened with honey. In 1676, the Compagnie de Limonadiers of
Paris were granted a monopoly for the sale of lemonade soft drinks. Vendors would carry tanks
of lemonade on their backs and dispensed cups of the soft drink to thirsty Parisians.

8
Joseph Priestley

In 1767, the first drinkable man-made glass of carbonated water was created by Englishmen
Doctor Joseph Priestley.Three years later, Swedish chemist Torbern Bergman invented a
generating apparatus that made carbonated water from chalk by the use of sulfuric acid.
Bergman's apparatus allowed imitation mineral water to be produced in large amounts.

John Mathews

In 1810, the first United States patent was issued for the "means of mass manufacture of
imitation mineral waters" to Simons and Rundell of Charleston, South Carolina. However,
carbonated beverages did not achieve great popularity in America until 1832, when John
Mathews invented his apparatus for the making carbonated water. John Mathews then mass-
manufactured his apparatus for sale to soda fountain owners.

Health Properties of Mineral Water

The drinking of either natural or artificial mineral water was considered a healthy practice. The
American pharmacists selling mineral waters began to add medicinal and flavorful herbs to
unflavored mineral water.

They used birch bark, dandelion, sarsaparilla, and fruit extracts. Some historians consider that
the first flavored carbonated soft drink was that made in 1807 by Doctor Philip Syng Physick of
Philadelphia. Early American pharmacies with soda fountains became a popular part of culture.
The customers soon wanted to take their "health" drinks home with them and a soft drink
bottling industry grew from consumer demand.

The Soft Drink Bottling Industry

Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the carbonated drink bottle
tops during the early days of the bottling industry. Carbonated drink bottles are under a lot of
pressure from the gas. Inventors were trying to find the best way to prevent the carbon dioxide or
bubbles from escaping. In 1892, the "Crown Cork Bottle Seal" was patented by William Painter,

9
a Baltimore machine shop operator. It was the first very successful method of keeping the
bubbles in the bottle.

Automatic Production of Glass Bottles

In 1899, the first patent was issued for a glass-blowing machine for the automatic production of
glass bottles. Earlier glass bottles had all been hand-blown. Four years later, the new bottle-
blowing machine was in operation. It was first operated by the inventor, Michael Owens, an
employee of Libby Glass Company. Within a few years, glass bottle production increased from
1,500 bottles a day to 57,000 bottles a day.

Ninety years after the invention of what become one of the most favored drinks globally in 1988.
Pepsi entered India flanged with heavy resources and riding the winds of change of a newly
opened economy. First, Pepsi has only franchise unit. Pepsi gave his concentrate to small factory
and they make beverage.

In 1988, Pepsi set up its offices in India. In this company Pepsi operates as PEPSI Foods Pepsi
Co. India Holdings and Pepsi India marketing.The mission was to change the tastes and life style
of a common Indian, who identified soft drinks and beverages as a few available cold drinks,
squashes and concentrates. When it came to a refreshing drink conservative consumers would
back to traditional nimboo pani, jaljeeram lassi etc.

Although India has a per capita consumption as low as 3 per person as compared to 400 in USm
India has one of the largest number of potential consumers in a world with a population of an
arab, Every Indian guzzles 27 bottles of soft drink every year, an increase of one bottle per capita
consumption would mean stating 900 bottles extra. India soft drink is of worth RS. 1800 crores
with annual growth at the rate of20% to 25%.

All the activities of Pepsi Foods Pepsi Co, India Holdings and Pepsi India Marketing Company
are controlled by business Unit (BU) located at GURGAON. This BU is divided into various
marketing units (MU's). All except the North and Market Units have common borders with states
comprising them.

The market units demarcate the areas, which are "Coboised" i.e.Have Company owned bottling

10
operations(COBO). In these units there are company owned bottling plants while in other areas
the operations are run by a franchisee these areas are referred to as Fanchisee Owned Bottling
Operations (FOBO'S) and some and in some others Joint Venture operate.

COBO - In the COBO, the company has total control of the decisions and implementations
undertaken, but for this the company has to invest its own money.

FOBO - The FOBO‟S are independent to take their own marketing and operational decisions
with no major interference form the company.The FOBO's are supplied the concentrate from the
company and they have to run the show, there after. Pepsi maintains ownership of the trademarks
and is primarily responsible for ownership in a local bottling operation. This helps Pepsi
maintain strong trademark on the other party's resource and expertise. The PCI workflow
concentrates on Selling, Making and Delivering Pepsi- Cola.

11
2.3-COMPANY PROFILE

LUMBINI.BEVERAGES, HAJIPUR

Lumbini.Beverage Pvt. Ltd,(Hajipur) a medium sector enterprise, located amidst beautiful

surroundings, on the hajipur in the hajipur Industrial Area, and producing bottled soft drinks,
viz. Pepsi, 7 Up, Mirinda, Teem, Mirinda Lemon, Mirinda Apple and Lehar Slice and had
become a household word in the Bihar State symbolizing achievement and advancement over the
years.

lumbini Beverages was established in 1967 and production commenced in March 1969. At the
very outset the company installed state the art machines and technology, for the production and
bottling of soft drinks. The bottling plat with a capacity of produce bottle 220 per minute is
totally automatic and also had a modern state of the art inter mix machine for binging forth the
right blend of flavors. The company continuous to adopt and innovate technology in keeping
with its policy of constant quality improvements. With the advent L B Food Limited for the
production and sales of L B range of soft drinks for Bihar.

The company symbolizes self reliant in technology and ranked as the Best bottling company in
the country in terms of Quality, Efficiency, Sale, Productivity and KRD. Till 1998, it was under
the guidance of its Chairperson, Smt. Kusum Kamani and the able stewardship of its Managing
Director, Shri. Nakul Kamani, the Co. has consistently bagged on numerous occasions, awards
for Quality Assurance and Productivity, in 1993 it bagged top honors for being the best Quality
conscious Plat amongst all Pepsi Bottling companies in India.

In March 1999, lumbini Beverages Ltd. was taken over by Mr. S. K. Jaipuria from Mr. N.D.
Kamani, along with Rushabh Marketing Ltd., a marketing unit. Mr. S.K. Jaipuria started running
this plant very successfully. He was very much enthusiastic to increase the production and sale
and to capture the whole market of Bihar. He established another plant in the name of lumbini
Beverages (Bihar) and increased the production from this new plant. The capacity of this new
plant is 600 bottles per minute. Simultaneously, another marketing, company came up in the
name of Hyderabad Marketing Company, Which is catering the need of whole of Bihar state.

12
The Company‟s highly sophisticated plant and quality control laboratory along with the
dedication and enterprise of its employees is more than evenly matched by the management‟s
sense of understanding and compassion that has insured the company‟s progress with every
passing day.

The company has a sale of more than 24 million bottles. It has maintained and nurtured a vast
network of distribution for its product in Bihar and currently holds way over more than 50% of
the states consumer soft drinks market with an estimated growth annual turnover of over Rs. 10
corers. The company is currently in pursuit of the coveted ISO 9002.

2.6-CHRONOLOGY OF ACHIEVEMENT

 First plant to achieve 100% result on beverages product and got an award.
 Its plant to pack large packs---500ML
 Commissioning of kamani foods-1988
 Started operating for Bottling Pepsi products as a Franchise operation under
kusum kamani-1990
 First plant to achieve 100% result on Pepsi norm and got an award-1991
 Excellence in quality award-1992
 IQA Bronze cash award-1993
 IQA Bronze cash award-1994
 In 2001 received IQA gold status.
 In 2002 received IQA Bronze Award
 In 2003 new pet plant capacity of 60 BPM commissioned.
 In 2004 received IQA silver award.
 Achieve „Best Plant Team‟ in 2004.

13
 ESTABLISHMENT

L.B established its business operation in India in1989 and has grown to
become one of the country‟s leading food and beverage company. One of the
largest multinational investors in the country, L.B has established a business
which aims to serve the long term dynamic needs of consumers in India.

INVESTMENT

Lumbini beverages and its partners have invested more than USD1 since the
company was established in the country.

EMPLOYMENT

Lumbini beverages pvt.ltd provides direct and indirect employment to 1500 people
including supplier and distributor.

2.7-PRODUCT PROFILE

PRODUCTS:

Following are main products of LB Pvt. Ltd.

 Pepsi

14
  Mirinda Orange
 Mirinda Lemon
 7 Up
 Mountain Dew
 Slice
 Mirinda Sorbet (Limited Edition)
 Pepsi Diet
 Lehar Soda
 Aquafina
 Tropicana
 Gatorade
 Lehar Namkeen
 Lays
 Kurkure
 Uncle Chips
 Cheetos

CARBONATED SOFT DRINKS

COLA
PEPSI
The Joy of Pepsi.Contains: Carbonated water, high fructose corn syrup,caramelcolor,phosphoric
acid, caffeine, citric acid and natural flavors.

Calories 100
Total Fats (g) 0
Sodium (mg) 25
Potassium (mg) 10
Total Carbohydrates (g) 27
Sugar (g) 0
Protein (g) 0

15
Caffeine (mg) 25

Diet Pepsi
0 carbs. 0 calorie. It‟s the diet cola.
Contains: Carbonated water, caramel color, aspartame, phosphoric acid, potassium benzoate
(preserves freshness), caffeine, citric acid and natural flavors.
Calories 0
Total Fats (g) 0
Sodium (mg) 25
Potassium (mg) 20
Total Carbohydrates (g) 0
Protein (g) 0
Sugar (g) 0

ORANGE
Mirinda Orange
Savor Your Mirinda.
Contains: Carbonated water, high fructose corn
syrup, citric acid, purity gum, potassium
benzoate and potassium sorbate (preserves freshness), ester gum, natural flavor, yellow 6,
ascorbic acid and calcium disodium EDTA (to protect flavor), sodium citrate.

Calories 120
Total Fats (g) 0
Sodium (mg) 25
Total Carbohydrates (g) 33
Protein (g) 0
Sugar (g) 32
Caffeine (mg) 24

16
OTHERS
Mountain Dew
Do the dew.
The fastest-growing soft drink of
the decade, Mountain Dew
currently ranks as the nation's
leading soft drink in retail outlets.
Doing the "Dew" is like no other
soft drink experience because of its
daring, high-energy, high-intensity,
active, extreme citrus taste.

Contains: Carbonated water, high fructose corn syrup, concentrated orange juice and other
natural flavors, citric acid, sodium benzoate (preserves freshness), caffeine, sodium citrate, gum
arabic, yellow 5, erythorbic acid (preserves freshness), calcium disodium EDTA (to protect
flavor) and brominated vegetable oil.

Calories 110
Total Fats (g) 0
Sodium (mg) 50
Potassium 0
Total Carbohydrates (g) 31
Protein (g) 31
Sugar (g) 0
Caffeine (mg) 36

CLEAR LEMON
7up
Cool 7up

17
Contains: Carbonated water, caramel color, aspartame, phosphoric acid, potassium benzoate
(preserves freshness), caffeine, citric acid and natural flavors

Calories 100
Total Fats (g) 0
Sodium (mg) 25
Potassium 20
Total Carbohydrates (g) 25
Protein (g) 31
Sugar (g) 0
Caffeine (mg) 24

FRUIT JUICE

Slice
Pure Mango Pleasure
Contains: Carbonated Water, High Fructose Corn Syrup, Mango Juice From Concentrate, Citric
Acid, Potassium Benzoate (Preserves Freshness), Modified Food Starch, Natural & Artificial
Flavors, Potassium Sorbate (Preserves Freshness), Ascorbic Acid (Vitamin C),Yellow 6,
Glycerol Ester of Wood Rosin, Calcium Disodium
EDTA (To Protect Flavor), Sodium Citrate.

Calories 120
Total Fats (g) 0
Sodium (mg) 25
Potassium 35
Total Carbohydrates (g) 35
Protein (g) 35
Sugar (g) 0
Caffeine (mg) 0

18
PACKAGED DRINKING WATER
Aquafina
Pure Water. Perfect Taste.
Enjoy the crisp, refreshing taste of Aquafina 100% pure, non-carbonated, purified drinking
water. The consistent purity and great taste of Aquafina are guaranteed by means of a state-of-
the-art purification process that includes reverse osmosis and carbon filtration. Since its debut in
1995, Aquafina has won over consumers with its great taste and purity.

Aquafina is the official bottled water of Major League Soccer and the PGA of America.
Aquafina is distributed nationwide and can be enjoyed in 500 ml., 1-liter and 1.5-liter bottles.
Aquafina. Purity Guaranteed.

Contains: Purified water

Calories 0
Total Fats (g) 0
Sodium (mg) 0
Potassium 0
Total Carbohydrates (g) 0
Protein (g) 0
Sugar (g) 0
Caffeine (mg) 0

19
.

20
Core Values

L.B Values & Philosophy

Our Values & Philosophy are a reflection of the socially and environmentally responsible
company

We are committed to delivering sustained growth through empowered people acting responsibly
and building trust.

What It Means
Sustained Growth is fundamental to motivating and measuring our success. Our quest for
sustained growth stimulates innovation, places a value on results, and helps us understand
whether today's actions will contribute to our future. It is about the growth of people and
company performance. It prioritizes both making a difference and getting things done .

Empowered People means we have the freedom to act and think in ways that we feel will get the
job done, while adhering to processes that ensure proper governance and being mindful of
company needs beyond our own.

Responsibility and Trust form the foundation for healthy growth. We hold ourselves both
personally and corporately accountable for everything we do. We must earn the confidence
others place in us as individuals and as a company entrusted to us, we strengthen that trust by
walking the talk and following through on our commitment to succeeding together.

21
 CHAPTER-3

ORGANISATION
STRUCTURE

22
 ORGANIZATION CHART OF LUMBINI
BEVERAGES. HAJIPUR

DIRECTOR
(LB BEVERAGE)

PMTMI Scooler
Logistic Dept. Plant Mgmt. Personal Dept. Purchase Dept. Finance Dept.
Dept.

Production Personal Purchase Equipment Finance

Logistic Manager
Manger Manager Manager Manager Manager

Account
Staff Supervisors Personal Officer Supervisors
Executive

Staff Staff Staff Accountant

Security
Lab Store
Dept.

Store

23
 CHAPTER-4

FUNCTIONAL
DEPARTMENT

24
4.1-HUMAN RESOURCE MANAGEMENT

PEOPLE : ORGANISATION STURUCTURE

GENERAL MANAGER

HUMAN RESOURCE

MANAGEMENT

HR MANAGER

HUMAN RESOURCE

MANAGEMENT

ASSISTANT HR MANAGER

HUMAN RESOURCE

MANAGEMENT

REGIONAL HR MANAGER

HUMAN RESOURCE

MANAGEMENT

25
Human Resource

Human Resource basically works for the welfare of the employees. It acts to organize the
manpower and work to increase productivity of the employees. Basically Human Resource
performs the functions of Recruitment, Hiring, Induction, Training and development,
Performance appraisal of the employees. Human Resource studies and involves in inter life cycle
of the employee from his joining the organization to till his end from the organization

POLICIES OF H.R DEPARTMENT

The main policies of H.R department in L B is:-

 Peace among employees in the work place

 Better co-ordination in the working environment
 Motivational activities
 Sense of belongingness
 Recognition of work
 Carrier & self development of employees & consultants

System and procedure of Recruitment

a) Consultancy Services:

For top level management, employees are recruited through private consultants. They are
usually appointed as Departmental Managers.

b) Walk-ins:

This is the main source through which L B recruits its employees. People seeking job usually
themselves approach the HR department for job vacancy. Employees usually selected from this
source are appointed at the entry level as team members.

26
c) Employee Referrals:

This is the other main source through which employees are selected. Candidates who have
given their previous employer as referrals are first interviewed and from their previous
employer, opinion is taken about their behaviour and performance in the job. If they receive a
positive opinion from their previous employer they are selected .

d) Campus Recruitment:

Young people bring new ideas and fresh enthusiasm. Therefore L B visits some of the
reputed educational institutions to hire some of the most talented and promising students as
its employees. Selection Procedure The following is the selection procedure that the HR
department practices to hire its employees.

i) Interview:

For entry level jobs, the candidates are interviewed by a HR person. They are asked a few
basis questions about their education, previous work experience if any, languages known
etc. This is done to evaluate the candidate‟s ability to communicate freely and also other
skills.

ii) Psychometric Tests:

For higher and top level jobs, candidates are asked to answer a few questions which basically test
their sharpness, analytical ability, ability to handle stress, presence of mind etc. This is done
as Managers are required to work under stress all the time and still maintain a cool head to
make some vital decisions.

iii) Group Discussion:

In campus recruitment students are involved in a Group Discussion, where they will be given a
topic on which the group has to deliberate, discuss and arrive at a solution or a decision which

27
is accepted by the whole group.Along with the G D they are also given a written aptitude test.
Finally a formal interview will be conducted to assess the overall skills of the student.

Induction

New employees selected will be given a 13 day induction and training program. They
will be given information about the company‟s business, different departments etc. They
will be informed of their roles, duties and responsibilities. They will also be informed abou t
the HR policies and rules of the company.

The new employees will be on probation for a period of 6 months. After this period the
HR period along with the department manager will review the performance of the employee. If
the employee‟s performance is good and encouraging, the employee‟s services will be
confirmed.

Compensation & Rewards

The employees are rewarded suitably with attractive pay packages. The salary of an employee
includes basic pay. HRA, special allowance, PF,ESI, Mediclaim etc.Annual bonus will be
given at the time of Diwali.

The employees and their dependents are also entitled for medical treatment in recognised
hospitals with cashless hospitalisation with whom the company has tie-ups.

If a hospital is not recognised, the amount spent by the employee will be reimbursed.

Along with these all the employees are given a card known as „Employee Discount card‟ (EDC)
through which they can buy any product at L B at a special discount of 20-30 %.

Leaves and other rules

An employee during his probationary period is entitled for 7 days of leave. A confirmed
employee is entitled for 30 days of leave in a year. There is only one type of leave the employees
can take which is known as All Purpose Leave (APL).

28
All the employees will be given identity cards which they have to wear and also swipe while at
the time of entering and leaving the Store.

Performance Appraisal

The HR department conducts performance appraisal of all the employees annually in the month
of April. Based on their performance increments will be given in their pay. In addition to this if
an employee achieves or exceeds the target given to along with their team members will be
provided with attractive cash and other incentives.

Training & Development

Future group has its own training division for all its employees, known as „Future Learning &
Development Limited‟ (FLDL). All the employees are given training for 20 days in a year spread
over different periods.

„Gurukool‟ which is a part of FLDL gives training to all the employees on various skills like
team work, dedication discipline improving customer service etc to make them more
knowledgeable and productive.

PROBLEMS

1.Lack of trained people

2.Process of selection and recruitment is not good.

29
 4.2-MARKETING DEPARTMENT

PEOPLE:

DIRECTOR
(LUMBINI
BEVERAGE)

PERSONAL
HEAD OF SALES
DEPARTMENT

Marketing Territory
Finance Shipping
Development Development
Department Department
Manager Manger

Account
Finance Manager Supervisors Marketing Officer Development
coordinator

Sr. Customer
Account Executive Staff Merchandiser
Executive

Accountant Customer Executive

Salesman

Loaders

30
Marketing department is mainly concerned with promoting "TOM" i.e.” Top of the Mind
Awareness for Pepsi as it is a consumer oriented organization. It performs the following
functions to build consumer and customer preference.

Signage: This includes putting up of glow gings, banners, wall paintings, hoardings, kiosks etc.

Promotions: This includes ad campaigns, sales promotions, new packages and brand launches.
Events this includes sponsoring events at national, state, district and city level e.g. sports
tournaments, rock shows Musical Nights, Dance competitions, School and college annual
festivals etc.

All these activities are carried out by the unit office with the help of guidelines issued by the BU
in the form of an annual marketing calendar and budget. Marketing department at the Unit Office
is headed by a Marketing Manager and has three Marketing Executives. The marketing
department co ordinates with the five sale division in UP-Lucknow, Kanpur, LUCKNOW,
Gorakhpur and Bareilly to implements the various marketing programs

DISTRIBUTION STRATEGIES

A Company can choose any of the following distribution types: -

 Exclusive Distribution
 Selective Distribution
 Intensive Distribution
“L.B” HAS ADOPTED THE INTENSIVE DISTRIBUTION STRATEGY.
INTENSIVE DISTRIBUTION
A Strategy of intensive distribution is characterized by placing the goods or services in as many
outlets as possible. When the consumer requires a great deal of location Convenience, it is
important to offer greater intensity of Distribution. This strategy is generally used for
convenience items such as Tobacco, gasoline, and soap, snack foods & bubblegum.
Manufactures are constantly tempted to move from exclusive or selective distribution to more

31
SYSTEM OF LUMBINI BEVERAGES LTD.

LB’s Plant

Indenting

Primary Distributor
Sale

Secondary Sale
Market /
Retailers

Consumer

At first soft drinks is supplied to distributors directly. Retailers cannot take the delivery directly
from the company. They have to take it from their respective or nearest distributors. The
distributors selected on the basis of assurance given by them regarding minimum sales, which
they have mention annually. The selection is also done on the basis of the financial position and
reputation of distributing in the market. As for the example, in appointing distributors first
priority is given to those people who are in cigarette business.

Depending upon market each distributor in its initial stage deposit some security money. This

32
amount varies between five thousand and ten thousand. The distributor selects the retailers.
There is no relation between the companies its retailers.

On the other hand there is no definite and fixed criteria for the selection for appointment of
retailers from the side of distributors. Any one likes ”Panwala, Cigarette Shop” Or any other
shopkeeper can have the stall for the sale of soft drinks and they are called retailers or dealers.
They have to give assurance to the concerning distributors for better sales and at the time of
taking delivery they have to deposit the security that is the change for the empty bottle with
specified purchasing price.

The distributors at first have to seek the permission of the sales department for the number of
cases of soft drinks required by them. After getting for the proper authority from the sales
department, they take the delivery from the shipping department paying the requisite either in
cash or as demand draft.

Generally there is no compulsion on that part of distributors to provide the transportation

facilities to their retailers. But the distributors of the big areas like Hajipur,patna, Bokaro and
Ranchi etc. provide the transportation facilities to their respective retailers.

The distributors and retailers are independent to sell as they want but are controlled to some
extent by the company also, as they have to give some assurance regarding minimum sales. It
happens so because they are given some incentives also. They are fully independent to gear up
the market, as they want. The company does the gearing job itself also and some times it advises
them to the gearing up in a way, which is more profitable for all of them.

The distributors can be dropped if they fail to achieve the required target of sales. They can be
also dropped when they don‟t follow the instruction given by the company or when they charge
high price or when they are engaged in black marketing, loading etc. But the company has not
dropped any of its distributors till now.

The supply of soft drink, to the distributors depends upon the Ups and Downs in sales. But, in

33
the initial stages the distributors have to sell up to a minimum target set by the company or as
decided by an agreement between the company and distributors. In the later stages soft drink is
supplied as and when demanded by the distributors.

RETAIL CHANNEL

Convenience Convenience channel includes different kiosks are which is

convenient to general public.
Channel

Grocery Grocery channel includes different grocery shops .

Channel

Eatery channel includes different hotels, restaurants etc.

Eatery
Channel

34
FACILITIES PROVIDED BY THE COMPANY TO THE RETAILER

VISI COOLER
 65 Litre
 110 Litre
 120 Litre
 165 Litre
 200 Litre
 210 Litre
 220 Litre
 300 Litre
 320 Litre
 330 Litre
 500 Litre

SCHEMES OF VOLUME PURCHASE

 Cash discount
 Card discount (sampling)

DISPLAY MATERIAL
 Stickers
 Banners
 G.S. Boards
 D.P.S. Boards
 Racks
 Counters

35
PROMOTIONAL ACTIVITIES
Sales promotion is a key ingredient in marketing campaigns, consists of a diverse collection of
incentive tools, mostly short-term design to stimulate quicker and greater purchase of particular
products of services by consumers.

To generate more sales as well as create and maintain its products, L B. Beverages carried out
several promotional activities, which play greater and vital role in marketing.L B Beverages
private limited carried out its promotional activity as a control and integrated program of
communication and material design to present its product to the prospective customers. It also
help in communicating the needs satisfying qualities of soft drinks to facilitates the sales and
eventually to contribute towards the profit in long range. Several tools used by the L B
Beverages Pvt. Ltd for fulfilling the various purposes of its promotional activities are:

Dealer Sales Scheme:

In this contest at first each dealer is categorized by their respective distributors according to their
past sales performance and then each distributor fixes a target to minimum sales of each category
to, which dealer according to their category have to achieve during the contest period. The dealer
achieving highest sale over and about the target set is given the award as announced by the
company.

Rack Display Contest:

“Dil se sajao milega more”
Pepsi selected a tactics for the outlets that are sure to increase the sales. In this scheme when the
rack and Visi-cooler is fully displayed with purity that is visi-cooler with Pepsi product will
score runs every month. Maximizing the runs ensures to get the best gift. Achieving all 500 runs
for the quarters will get the man of the series and achieving a minimum of 300 runs for the
quarters will get the man of the match gift.

36
Sales man Contest
This scheme is undertaken to motivate the salesman. In this salesman are given the monetary
incentives on the basis of sales made in their given route.

Money Back Scheme:

In this scheme the consumer during their consumption when open the bottle they get the coded
amount of money, which is mentioned, in the inner side of the bottle cap.

Retailer Sales Scheme:

The most beneficial scheme for promoting the sales is the retailer sales scheme as implied by the
LB Pvt. Ltd. According to this scheme the retailer who so ever he or she make a purchase of two
pack of nine pet jars in each pack of two ltr that is eighteen pet, one pet free is supplied.

Visi-Cooler Plano Gram (P-O-G)

In this Scheme company PSR‟s or CE‟s arrange in sequence the visi-cooler in retailer shop and
tell all the Plano gram steps.
Step 1: Empty the Cooler.
Step 2: Clean the Cooler.
Step 3: Clean the bottles with duster.
Step 4: Place the Product in the Shelf first.
Step 5: Keep a gap of 2 inches between shelf above bottles and repeat the
Process.
Step 6: Charge as per P-O-G

Then Company PSR and CE Visit three times in retailer shop, if Visi-cooler is pure then they
give Cheque of Rs. 150/- and it is a gift of retailer. It is very beneficial in sales promotion.

37
First Ball ka Captain (Road Show)
Company promotes the sales through the Road show with new concept “First Ball Ka Captain”
in 20-20 world cup through the Road show Company Executives Introduce to scheme.

POLICIES OF MARKETING DEPARTMENT

 To attract customer through their advertisement.
 To make know about their business
 To make heir about their products & goods
 To make know about their offers
 To make know about their different facilities
 To provide customer satisfaction
 To build customer relationship

“ Advertising is any paid form of the non-personal presentations & promotion of ideas, goods,
or services by an identified sponsor.”

Advertising is what we perceive through one or more human senses. These are:
The sense of sight i.e. Magazines, Newspapers etc.
The sense of hearing i.e. Radio etc.
The combination of two i.e. Television, cinema etc.

FIVE Ms OF ADVERTISING
In the process of development of any advertising program five major decisions must be taken
into account, known as the FIVE Ms OF ADVERTISING. These are:

 MISSION : Identification of advertising objects.

 MONEY : Deciding the amount that can be spent.
 MESSAGE : What should be the message being sent
 MEDIA : What media should be used?
 MEASUREMENT : Method of evaluation of Result.

38
Apart from these five Ms, TIMING also has a crucial role to play.
The various advertising modes can be enlisted as:

DIRECT ADVERTISING
 Ad film, radio, newspaper, magazine.
 Hording
 Glow sign etc.
 Sponsorship
INDIRECT ADVERTISING
 Shop painting
 Wall painting
 Visi-cooler
 Vehicle painting
YEAR WISE ADVERTISING STRATEGY OF PEPSI SINCE 1990

After entering in Indian market Pepsi started their advertising in planned way to fulfill the
objectives expressed by Vibha Risi, executive Vice President, marketing Pepsi India Ltd. as “I
believed in advertising that leaves a smile on your face”.

 In 1991- The first commercial came on the screen with actress Juhi Chawla and Pop
singer Remo. The theme was “Feel the music, Are you ready for the magic?” went
the jingle and this ad ends with opening of Pepsi bottle.

 In 1992- The famous and unforgettable punch line “Yeh hai right choice
baby…Ahaa! was introduced with Remo and twelve years Penny Vaz.

 In 1993- This time also Aamir Khan, Aishwarya Rai and Sanjana have done the
commercial on the theme “Can I Have Another Pepsi”.

 In 1994- Here Pepsi introduced cricket star Sachin Tendulkar, Vinod Kambli and Md.

39
 Azharuddin in which Sachin and Kambli fights for Pepsi bottle and meanwhile Azhar
comes out and take the bottle. This ad also ended with the same punch line “Yeh hai
right choice baby…Ahaa!”

 In 1995- In this commercial when Akshay Kumar is given another soft drink. Then
the kid in the audience shouts “Hai Akshay Pepsi” and he gets back and he gets back
with his magic and this ad also with the same punch line.

 In 1996-Here the commercial shows the enthusiasm of Shahrukh Khan to get his
Pepsi for his girl friend. He dodges the dog and with this tries he tries to show that
Pepsi is the active choice to get, for which the customers can do anything, and it is
also revealed by the line “Pepsi to Mai Pee Ke Rahunga”. In the same year the
slogan “Nothing Official About It”., was introduced by Sachin, Azhar and Kambli.

 In 1997- in this year Pepsi celebrated has the 50 years of Indian Independence by the
slogan “Azaadi Dil Ki” with Shahrukh and Azhar.

 In 1998- in this year Pepsi has again involved many cricket stars for commercial with
slogans “More Cricket More Pepsi”, “Get a Pepsi Keep Your Head Cool” and
“Generation Next”. Beside this it has also flashed many commercials with Mahesh
Bhupati and Leander Paes for Mirinda (Orange) i.e., Mirindaaaa…. For Mirinda
(Lemon), the commercial was done by the Bollywood mega-star Amitabh Bachchan,
gave tremendous real “Jhatka” to its competitor with the help of memorable punch
line “Jor Ka Jhatka Dhire Se Lage”, which is ruling heart throbbing of millions.
Apart from this entire commercial, Pepsi has sponsored Sharjah Cup at Sharjah. It
also sponsors the following:-
Pepsi Independence Cup in India
 YANNI concern in Agra
 Asia Cup in Sri Lanka

40
In 1999- Pepsi sponsored World Cup ’99- the ad featured Shahrukh Khan and Sachin
Tendulkar and the punch line “Yeh Dil Maange More” become very popular.

 In 2000- Ad featuring Shahrukh Khan, punch line “Yeh Dil Maange More”.

 In 2002-Ad featuring Shahrukh Khan, Amitabh Bachchan, Kareena Kapoor, Sachin

Tendulkar, Adnan Sami with the same punch line.

 In 2003- Ad featuring Fardeen Khan, Saif Ali Khan, Kareena Kapoor, Preeti Zinta with
the punch line “ Mousam Gram Hai Pepsi Ke Liye Hum Besharam Hain”.

 In 2003- ICC World Cup was also sponsored by Pepsi, featuring Shahrukh Khan in the
ad. Also an ad featuring Sachin Tendulkar, Shane Warne & Carl Hooper punch line.

 In 2004- Ad featuring Shahrukh Khan who done the Army uniform to promote the new
positioning “Yeh Pyaas Hai Badi”.

 In 2005-Ad featuring Shahrukh Khan with the punch line “Oye Bubley…”.

 In 2008- Ad featuring Ranbir Kapoor and Deepika Padukone and Shahrukh Khan with
the punchline “Yeh Hai Youngistaan Meri Jaan!”

 In 2008- Ad featuring Mahendra Singh Dhoni with the punchline “ Yeh Hai Youngistan
Meri Jaan!”.

 At Present- Ad featuring Ranbir Kapoor with the punch line “Youngistan Ka W

PROBLEMS
1. Sales promotional activity is lacking as compared to other beverages in the market.

41
4.3-FINANCE DEPARTMENT

PEOPLE:

ORGANISZATION STRUCTURE

CENTRAL ZONE FINANCE

MANAGER

NORTH ZONE FINANCE

MANAGER

AREA HEAD CASHIER

(FINANCE MANAGER)

ACCOUNTENT
CASHIER

42
POLICIES OF FINANCIAL DEPARTMENT

 Maintaining grooming standard

 To speed up cashier efficiency
 To provide customer service under cash stile‟s (cash counter‟s)
 To prepare different report such as
 Scheme‟s report (discount report)

 Cancellation report
 Cash maintenance report
 Cash deposit repor

Income Statement - 10 Year Summary (in Millions)

Sales EBIT Depreciation Total Net Income EPS Tax Rate (%)
12/09 43,232.0 8,079.0 1,563.0 5,946.0 3.77 25.99
12/08 43,251.0 7,045.0 1,486.0 5,142.0 3.21 26.67
12/07 39,474.0 7,643.0 1,362.0 5,658.0 3.41 25.81
12/06 35,137.0 6,989.0 1,344.0 5,642.0 3.34 19.27
12/05 32,562.0 6,382.0 1,253.0 4,078.0 2.39 36.1
12/04 29,261.0 5,546.0 1,209.0 4,174.0 2.41 24.74
12/03 26,971.0 4,992.0 1,165.0 3,568.0 2.04 28.53
12/02 25,112.0 4,433.0 1,067.0 3,000.0 1.67 32.33
12/01 23,512.0 3,644.0 1,008.0 2,400.0 1.33 34.14
12/00 22,337.0 3,761.0 987.0 2,543.0 1.42 32.39

43
Balance Sheet - 10 Year Summary (in Millions)
Current Assets Current Liabilities Long Term Debt Shares Outstanding
12/09 39,848.0 23,044.0 7,400.0 1.6 Bil
12/08 35,994.0 23,888.0 7,858.0 1.6 Bil
12/07 34,628.0 17,394.0 4,203.0 1.6 Bil
12/06 29,930.0 14,562.0 2,550.0 1.6 Bil
12/05 31,727.0 17,476.0 2,313.0 1.7 Bil
12/04 27,987.0 14,464.0 2,397.0 1.7 Bil
12/03 25,327.0 13,453.0 1,702.0 1.7 Bil
12/02 23,474.0 13,951.0 2,187.0 1.7 Bil
12/01 21,695.0 13,021.0 2,651.0 1.8 Bil
12/00 20,757.0 13,104.0 3,009.0 1.7 Bil
FINANCIAL HIGHLIGHTS
Financial Highlights
Sales 48.55 Bil Revenue/Share 30.31

Income 6.18 Bil Earnings/Share 3.86

Net Profit Margin 12.81% Book Value/Share 12.32

Return on Equity 36.55% Dividend Rate 1.92

Debt/Equity Ratio 1.23 Payout Ratio 47.00%

Revenue - Quarterly Results (in Millions)

FY (11/10) FY (11/09) FY (11/08)
1st Qtr NA NA NA
2nd Qtr 14,801.0 10,592.0 10,945.0
3rd Qtr NA 11,080.0 11,244.0
4th Qtr NA NA NA
Total 14,801.0 21,672.0 22,189.0

44
SYSTEM &PROCEDURE

Customer Service is a support function to sales and marketing Department and is concerned with
effectively dealing with all customer complaints

This starts from:

Ensuring Receipt, Documentation and Follow Up of all complaints to be take care of within a
specified time in order to achieve the ensure Customer (retailer) distributor and consumer
Satisfaction. The Customer complains directly through phone or pager or through the sales team
visiting them. Types of Complaints handled are related to:

 Consumer
 Signage and Schemes
 Supply and Service
 Quality of Product
 Cooling Equipment

A Customer Service executive who in turn co-ordinates with five Customer Service
Representative positioned in the five sales divisions in UP-Lucknow, Kanpur, Gorakhpur,
LUCKNOW and Bareilly heads customer service department at the unit office. These Customer
Service Representative handle customer service functions in their respective territories.

PROBLEMS

1.The auditing system of Lumbini beverages pvt. is not taking place timely.

2. More emphasis is given to the big dealers only

45
4.5-PRODUCTION DEPARTMENT
PEOPLE

VICE PRESIDENT PRODUCTION

DEPARTMENT

GENERAL MANAGER

MANAGER PRODUCTION

EXECUTIVE PRODUCTION

OFFICER PRODUCTION

ASSISTANT PRODUCTION

TECHNICIAN
46
SYSTEM &PROCEDURE:

Water Treatment Plant:

Water in the L B is coming from Ganga. It is stored in a reservoir. Before ensuring production

this raw water is being treated in the water treatment plant. The process involved is known as
coagulation process. Main chemicals used are Ferrous Sulphate (FeSo4), Calcium Hydroxide
(CaOH), & Chlorine (Cl). Initially water is treated with all these chemicals in the treatment tank
and becomes turbid. All impurities get settled at the base and remove the chlorine‟s are removed.
The water so obtained is completely free from any kind of impurities and can be used in further
processing. The maximum alkalinity maintained until as much as 50 ppm.

Roll Conveyor
This automatic operation machine takes the dirty empty bottles for washing. A person is required
to put the empty bottles on the roller conveyor.
Bottle Washing Plant:
Used bottles returning from the market are stealthy. It is complete an auto process which takes
place within a machine called washer machine. The machine has three compartments. Bottles for
washing are placed on the conveyor come inside the machine and get successive treatment.
Bottles are treated with 2% caustic soda at a temperature of 120F, in the third compartment

47
bottles are treated with soft water. Time duration in each compartment is 10 minutes. Bottles are
then sent through the inspection centre, where these are watched against strong light.
Syrup Room:

Syrup room is situated on the first floor. Here syrup is prepared from filtered water, sugar and
the concentration. The room is well equipped with several tanks and filter press. The first one is
„heating tank‟ in which the syrup is actually prepared. Calculated amount of syrup along with
concentrate and water are being heated up to 85 degree C. Thus a saturated solution is being
prepared. Next it is sent through a machine called “Filter Press”, syrup is filtered here.

Filtered syrup is next passed through a Para flow cooler, when by recycling and glycol method,
the temperature of the syrup is cooled down to 20-25 degree C cooled syrup is then stored in the
syrup tanks. Syrup comes to the traumatic machine. Here syrup is mixed with carbonated water
under pressure in definite proportion. Inspected bottles gradually come under the „filtration
machine‟ Carbonated syrup by this time fills the filler machine. From this machine syrup is
poured into bottles in calculated amount. The exact rate of filling is 620 bottles per minute.

48
Meanwhile, crowner machine helps in closing the bottle mouth with helps of the caps completely
air tight.

Ready bottles are again sent through an inspection centre for thorough examination on conveyer.
Next they were carried on a round table from where they are collected.
Liquid Filling

Bottling&Crowning

49
The filled bottles are crowned with metallic caps to protect the purity of content. Then the bottles
are given the batch no., year, etc. with the help of laser machine.Thus the whole process from
washing to crowning is automatic. The filled bottles are lifted manually from conveyor and
placed in crates. The bottling of beverages is carried out at a rate of 240 bottles/min.The new
bottling unit has been established in order to pace the bottling process in the month of February.
After establishing the now production unit the rate per minute raised to 600. Before it was 440
bottles per minute
Final Check

50
POLICY
 To produce beverages maintaining desired quality of products and services.
 To attain market leadership and achieve consumer and stakeholders delight.
 To achieve continual improvement of the QMS through effective cost reduction measures
and reviewing KPI‟s.

FOOD SAFETY POLICY

We at L B Pvt. Ltd. Hajipur commit ourselves to :-

 Produce safe and hygienic beverage products under clean condition.
 Comply with all applicable legal and requirements related to food safety.
 Ensure through periodic verification, the effective implementation and continual
improvement of the food safety management system
 Educate and motivate all employees to contribute towards effective implementation of
Food Safety Management System.
 Review Food Safety Policy during management reviews.

PROBLEMS
1.Produce safe and hygienic beverage products under clean condition some times not occurred.

2.In case of deviation take corrective action, which include disposition ,recall of defectives and
elimination of root causes.
3.Lack of fresh and purified water.

51
 CHAPTER-5

SWOT ANALYSIS ,
VISION,MISSION
AND OBJECTIVES

52
5.1-SWOT ANALYSIS

STRENGTH

 L B has a broader production line and outstanding reputation

 Great brands, strong distribution, innovative capabilities
 The market position of the L B is very strong in area allotted to near about 75%
softdrinks and beverages sold belongs to others.
 We get to know our customers, one by one. Our direct sales force maintains a
relationship with our customers.
WEAKNESS
 Sales promotional activity is lacking as compared to others in the market.
 More emphasis is given to the big dealers only.
 Schemes and other sales promotional item are not reaching to the small outlets.
 Glow shine board, stand, umbrella and other sales promotional items have not
reached the market for a long time.
OPPORTUNITIES
 There is a huge potential in HAJIPUR and its surroundings rural area for tapping up
this, promotional camps schemes and other promotional activities must be carried out.
 It should give more incentives to the dealers in the rural areas, where there is a huge
market potential.
 Many shops and outlet holder do not keep LB product only due to the commitment
those companies have made during the peak season but it did not fulfilled thereafter
so it is necessary to pay attention towards this.

THREATS:
 Other beverage like Thumbs-Up has the biggest share in cola flavor where as 7up is
facing stiff competition from its counterpart Sprite of the Coca-Cola.
 Cola‟s beverages and its expenditure on sales promotional activity and advertisement
is far ahead than the LB..
 One of the biggest threat to the LUMBINI BEVERAGES is that distribution channel
in the rural area is not up to the mark.

53
5.2-VISION AND MISSION OF THE COMPANY

VISION

 "To be the best beverages production company in the eyes of our suppliers, consumers,
employees and shareholders.
 "To become truly successful company, by continuing to build a competitive and
profitable world wide refreshment beverage business."
 The challenge of the LB will be the test of the Best
 The best in connecting with the customer , the consumer, the best in marketing, the best
in selling, the best in quality, the best in processes and the best in people and teamwork.

Mission

Aspire to make LB the best beverages Productional Company, focused on convenient foods and
beverages. Seek to produce healthy financial rewards to investors as provide opportunities for
growth and enrichment to employees, business partners and the communities in which we
operate. And in everything do, L B strive to act with honesty, openness,fairness&integrity.
The behaviors that will help us achieve our mission are articulated in our Values Statement.

People Leadership
Refers to talented people who perform excellently by internalizing and practicing innovations.

Corporate Culture
Though a company implements perfect management strategies and boasts of outstanding and
talented people, it should have an appropriate corporate culture to unleash the power of these
capabilities.

54
No 'No'- Challenge
We foster a corporate culture whereby we suggest an alternative before saying "no" and
aggressively work towards fulfilling our goal.

'We' not 'I'

We pursue a corporate culture whereby we embrace a strong teamwork.

Fun to work
We create a workplace where individuals' creativity and freedom are respected and working is
made fun.

OBJECTIVES

PRIMARY OBJECTIVE:
“To know the market share of L B and Pepsico through comparative analysis”.

SECONDARY OBJECTIVE:
 To determine the visibility of the LB on the Dealer outlets
 To know the percentage share of L B cooling equipments.
 To find out the sales level of L B in comparison to the others
 To find out the dealers‟ perception about the L B products.

55
 CHAPTER-6

FINDINGS &
SUGGESTIONS

56
6.1-FINDINGS

The collected data which were analyzed came out with the following conclusions:-

 The numbers of Lumbini beverages exclusive outlets is less than the numbers of
competitor‟s outlets at hajipur and surrounded areas.
 In the area like hajipur, lumbini beverages products distribution is more uniform than
that of its competitor
 It was also observed that Cola‟s product has paid much attention in proving visi
coolers in last couple of years and penetrating the market with infrastructure for
cooling where still L B visi are available and also stores which do not got visi” from
Pepsico.
 Some of the dealers want glow sign and chilling equipments, which they are asking
from long time.
 Most of the consumer preferred taste of lumbini beverages after it was made little
strong.
 Retailers whose sales of L B products are more asking for the special incentives.
 Some dealers & retailers stops selling L B products because they are not satisfied with
the company, where Coca-cola fulfill some of their demand (such as visi-cooler, sing
boards etc.) and got the opportunity to make exclusive counter for the soft drinks.
 The advertisement of Thumbs-Up is blocking the mind of the customer that lumbini
beverages is a sweet and it‟s a baby drink and so they like Thumbs-Up.
 Cost of each bottle of Aquafina is too high as compare to the competitors. So most of
the dealers prefer to sale other brands of competitors with the objective of having
more or less same profit margin.

57
6.2-SUGGESTIONS
 Lumbini beverages should come out with such an advertisement, which can block the
customers mind and can change the customer‟s perception about the product.
 More improvement is required in the distribution network , because in the peak seasons
like summer the small dealers are taking goods twice or thrice and in between if the
distributors could not supply them, the competitors will get the opportunities to supply
the goods.
 Few areas in hajipur such as patna, Garamnala etc. company should take special care of
their dealers as because they are highly dissatisfied with the companies behavior, they
have a lot of complains towards the company.
 Salesman should have good interaction with the dealers, which result Company in
increase in sales.
 In most of the areas executives are not getting properly interacted with retailers and as a
result most of the distributors hide the schemes issued by the company from them which
may affect the sale volume. So company executives should visit the counter on weekly
basis.
 The entire lumbini beverages product should be display at one place so that the customers
can aware about the different brand of lumbini beverages. Such as displaying products in
front of shop etc.
 Company must provide sufficient amount of chilling equipments, sign board and display
racks in the market in order to satisfy the dealers.
 Regular visit of technician is required to solve the problems of visi cooler in the market at
the right time.
 Coca cola is putting much effort to capture the market share of cold drinks and beverages
by fulfilling most of the demands of dealers, and providing visi‟s. So company must take
care of these.
 L B distributor can convince the retailer for entering into agreement for exclusive outlet
with some extra benefit.

58
 CONCLUSION:

LUMBINI BEVERAGES PVT LTD”, is a soft drinks manufacturing Company, producing

world class soft drinks for buyers of India. They are engaged in the production of PEPSI
products. For years LUMBINI BEVERAGES PVT LTD has worked in active collaboration
with PEPSI to provide the best soft drinks to its customers.

Company‟s strength lies in well built inventory and well trained human resource; with the help
of this the company fulfills the requirements of the buyers by providing right quality of products
at right time and right place.

The company is successfully carrying out its operations and has occupied a strong position in
the minds of the customers.

From this study it can be concluded that the company has grown considerably and cemented its
position as a trusted and preferred vendor to PEPSI.

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BIBLIOGRAPHY

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 BIBLIOGRAPHY

Reference Books

 Marketing Management: Philip Kotler

Journal Magazines

 Business World
 Business Today

Websites

 www.pepsizone.com
 www.pepsiindia.com
 www.pepsico.com
 www.google.com
`

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