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INTERNSHIP REPORT ON:
NAUBAHAR BOTTLING COMPANY
38/40-A S.I.E MODEL TOWN GUJRANWALA.
BY: SHOAIB HAROON
MBA
G.C UNIVERSITY LAHORE.
INTERNSHIP REPORT ON NBC
Introduction to Report
This report is about Pepsi CO. (Nau-Bahar Bottling Company). This report is the part of my
MBA degree which is compulsory for us to complete internship in any organization. The purpose
of this internship is to provide an opportunity to the students to observe the practical applications
of their background professional study. In this report I have given the brief history of the Pepsi
CO. and about Nau-Bahar Bottling Company, departments of the NBC, their functions and
working of the some departments as well
PEPSI COLA IN PAKISTAN
Pepsi cola is also very popular in Pakistan that’s why its market share is about 90% in the soft-
drink market. Pepsi Cola International, a remarkable name in the cola industry is doing its
business in Pakistan through franchising. PCI has developed following bottlers in Pakistan till
now.
Naubahar Bottling Companyis the largest manufacturer and distributor of
Pepsi Cola soft drinks in Pakistan.
These franchises are located in:
Karachi
Lahore
Multan
Faisalabad
Gujranwala
Peshawar
Islamabad
Sukkher
Hyderabad
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NAUBAHAR BOTTLING COMPANY
IINTRODUCTIONNTRODUCTION
Pepsi co starts its operation in Pakistan in 1971 first time in Multan. And NBC also establish in 1971 and from 1974-79 NBC was producing the Coca Cola products. In 1980 NBC achieve the licenses of PCI and in May 27, 1981 its start the production of the Pepsi, in the same year NBC achieve the ISO 9002 certification. And in 2008 NBC start the production of 7up. And its units productions capacity is 100000 cases per day with 5 manufacturing’s plants. The Area allotted to it, was Gujranwala Franchise. The franchise area consists of the following nine districts.
Gujranwala Gujrat Hafizabad Mandibahaudin Jehlum Sialkot Narowal Sheikhupura Chakwal
The company operates through a well-established network of a number of distributors. The company has two types of delivery systems i.e.
Director delivery system
Indirect delivery system
The basic difference between the direct and the indirect delivery system is that in a direct distribution system, the company spends its own resources while in an indirect distribution; the dealer spends his own resources on all the factors which increases the sales volume:
DDIRECTIRECT D DELIVERYELIVERY S SYSTEMYSTEM
Manufacturer Retailers Customers
IINDIRECTNDIRECT D DELIVERYELIVERY S SYSTEMYSTEM
Manufacturers distributor Retailers Customers
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Production
Manager
QC Manager
HR Manager
Audit Manager
Purchase
Manager
Finance Manager
MIS
Manager
Shipping
Manager
Store
Manager
INTERNSHIP REPORT ON NBC
Most importantly, this direct delivery system is present only in Gujranwala franchise in Pakistan. The company also has its depots (remote depots) in different cities. It helps a lot in increasing its sale and directing the distribution system. They are in
Sialkot
Gujrat
Shahdara
Jehlum
Sheikhupura
Narowal
Mandibahaudin (Recently Established)
OOBJECTIVEBJECTIVE
The major objective of the company is to produce and supply of highest quality, 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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INTERNSHIP REPORT ON NBC
Vision
"Pepsi Co's responsibility is to continually improve all aspects of the world in which we operate -
environment, social, economic - creating a better tomorrow than today."Our vision is put into
action through programs and a focus on environmental stewardship, activities to benefit society,
and a commitment to build shareholder value by making PepsiCo a truly sustainable company
Mission
Our mission is to be the world's premier consumer Products Company focused on convenient
foods and beverages. We seek to produce financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our business partner sand the
communities in which we operate. And in everything we do, we strive for honesty, fairness
Organizational Profile
About employees
: There are 2000employees attached with the production department in with about 800 labors
are permanent and others are on contract base. 120 employees attaches with the sales and
other departments.
Plant capacity
Nau-Bahar Pepsi cola industry has a moderate and big plant. It can produce 600 bottles in one
minute. It has also the water treatment plant which can take raw water from 500 dept, treat and
filter it and then store it. Plant can store 20000 gallons
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Marketing Research and Development Department
MR & D Function
Routine Function
Every dealer survey
Core function of MRD department
Definition
“This comprehensive survey of executive in a specific area to collect information from
retailers on a specific format”
Purpose
This survey helps generating report that ultimately sales force (S & D Manager, unit manager
etc) to plane market accordingly and for higher management to make important decisions to stay
abreast with competitors.
Retail audit
Retail audit is conducted when we have shortage of time and results are needed urgently
Retail audit is carried out in a single day in a single visit. Results are as much reliable as from the
survey.
After EDS, retail audit is one of the main functions of MRD department.
Marketing development reporting
NAD (new account development)
Cooler placemen
Promotion verification
Advertising verification
Distributor stock verification
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INTERNSHIP REPORT ON NBC
MEM Department
Marketing Equipment Management
Before 1998 coolers were not issued to retailers. In 1998 NBC started to provide the coolers but
there was no record of coolers issuance and retailers to those coolers were issued. In 2006, NBC
develop a new department with the name of MEM which hold all the system of coolers issuance
and repair etc.
Problems to NBC Before 1998
No agreement with retailer
No witness
No identity of cooler
Violation
Shop closure
Tracking movement of cooler in case of lifting
No multi placement cooler checking
No record room
Operative Vs retired cooler
Asset losses
No data base for new sale staff
Responsibilities
Issuance of new cooler to retailers
Repairing & maintenance of chillers
Types Of Issuance
Regular issuance
In regular issuance they take required documents in advance from retailers. Which as
under:-
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INTERNSHIP REPORT ON NBC
Affidavit
Party A signature
Party B signature
Witness A signature
Witness B signature
I D card
Equipment requisition form
Outlet review
Previous issued chiller
Current demand
Contingency cooler issuance
In this issuance each unit is allocated a quota of 30 coolers. This issuance is for emergency
purposes, because Coca Cola is their strong compotator and as soon as they get the news of
opening of new shop they offer the shopkeeper of new chiller. So that for this reason they
provide the chiller on the spot from the unit quota to hold on the new shop. After contingency
cooler issuance, sale officer of that unit take the documents from the retailers and fulfill the all
process that discuss above.
EMO
EMO means Equipment Move Order. EMO has two types move order
Reassign
Retire
Process of EMO:-
Install Pickup Reassign- Retire
Repairing and maintenance
From 1998 to 2006 they are facing problems regarding delay in repair deception by
private contractor, time consuming, high cost.
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INTERNSHIP REPORT ON NBC
After 2006 they maintained a workshop for repair and maintenance. They have also a
sheet EWO (Equipment Work Order) for that purpose. In which there is a list of spare parts of a
cooler. They replace parts and send the sheet to MEM department for verification department. In
this department the repair work done is recorded.
Publicity Department
To promote the image of the company and its products, publicity is a major tool. Publicity plays
an important role in the promoting the image in the consumer's minds.NBC does publicity
activities in only in trade .
Publicity involves :
Banners
Posters,
Signings
Gifts
Schemes
Wall chalking
Iron counter
Iron cabin
Iron shed
Hoarding board
Tin board
Focusing the followings spends publicity budget.
RESPONSIBILITIES OF DEPARTMENT
Arranging the sources and requirements and making priority lists.
Carefully arranging the publicity execution,fulfill sales team needs in an efficient and effective
manner.To ahere to Pepsi cola international standards.To maintain record of advertising items.To
resolve tax matters,deal with rent matters,vehicle branding,Advertising budget
monitoring,events sponsorship.
Production D epartment
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Production is a process of converting raw material into finished goods. It is a major function in
all the Organizations. Production is back bone of any manufacturing Organization. In NBC the
raw material used by them in production is approved by the Pepsi Cola International. The
material they purchase should be according to the standard of PCI. In the case of material does
not meet the standard of PCI then the NBC have a right to return back to its suppliers, in this
case the cost of that material is beard by the supplier. The main purpose of this high quality
checking is to provide high quality to the end user.
Raw material used by NBC includes.
Sugar ,water, co2,ammonia,syrup.
Capacity of Plants
Company is operating with 5 plants at unit one. Out of these 5 plants, 3 are producing only
250ML RB bottles. While 01 produces 1500 ML (PET) & 1000 ML (Glass) bottles Plant 2
produces1000 ML (PET), 300ML (NR) and 1500ML (PET) bottles. Capacities of each plant are
as follows:
Plant # 250ML(RB) 1000ML( RB) 1500ML(PET) 1000ML(PET) 300ML (NR) P # 01 - 1100
Cs/hr 600Cs/hr - -P # 02 - - - - 300Cs/hr P # 03 1500Cs/hr - - - -P # 04 1250Cs/hr - - - -P # 05
1375Cs/hr - - -
There are 3 more plants working at unit 2 in which two plants are busy in the production
of 500ml, 1000ml and 1500ml NRB (pet) while the 3rd plant is producing 250ml of slice (RB).
The two plants at unit 2 are totally automatic with fewer requirements of labor and remaining are
manual with little automatic functions.
Company also started manufacturing of mineral water called “Aquafina” in two packages
of 600ML and 1500ML and for this purpose it installed a separate plant.
Quality Control
Quality control is the basic organizational objective of NBC. Quality check is made from zero
level to final products. For this purpose samples are taken from the production to check the
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INTERNSHIP REPORT ON NBC
quality. This sampling is done after each an hour or half an hour. These samples are tested
according to the PCI standards.
Production staff
Employees are directly involved in the production process. Whereas the helpers are the indirect
employees Moreover direct supervisor and helpers are also there. Indirect employees are
about350 in number, who are not directly involved in the production process but they are
essential part of the production department.
Laboratory
In order to maintain the high quality the plant has a well equipped lab. Laboratory is sufficient to
measure the standards and to test syrup of different flavors. The well equipped lab enables the
smooth flow of production process.
Product line
The major brand of NBC is Pepsi 250 ml, having highest market share which is 47% as compared to other brands. The other brands produced by the organization are.
Pepsi Mirinda Teem 7up 7up Free Mountain dew Slice
Production Process
Production process is a complete cycle of interrelated activities which is as follows…
First time light inspection after taking the empties to the conveyer with the uncaser by the
shipping dept.
Empties shifted to the washer for washing
In washer the empties washed with hot, caustic water and then finally with fresh water.
After washing, bottles again pass through the light inspection.
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INTERNSHIP REPORT ON NBC
After 2nd time light inspection the empties move towards filler
The filler filled the empties with liquid and then move them towards bottle neck covering
machine
Then the 2nd last step is of coding in which specific codes are assigned to each bottle containing
date, time and chemist name.
Finally bottles pass through the 3rd & last light inspection where the level, dirt are inspected in
the liquid.
The bottles are ready to use.
Sales D epartment
There are 2 types of sales System
TU system(Territory University)
A system of distribution in which the company main focus is on the consumer because the
consumer is the most important and the role of middle man is abolished. Now ADM accont
development manger TDM territory development manger,CR deals in places of middleman.No
distributor is in this system.Here data ware house operator punch in manual data taken from
customer representive, that works with sales teem into computer .In this way they have
weekly ,monthly an yearly sales data of each outlet.
Non TU system(Non Territory University)
A system of distribution in which company give to manufacturer and manufacturer gives to
distributer and distributer give to the retailer and finally product reaches to the final consumer.
Company does not know about their consumer. Working of the Sales force of the NBC
2-3 Customer representative work under the supervision of Area development Manager
2-3 Area development Manager work under the supervision of the Unit Manager
1 Unit manager control the 1 city
2-4 Unit manager are controlled by the Sales Development Manager
5 Sales Development Manager Supervised by the Manager
NBC have a total 5 Sales Development manager. And NBC is 50% TU based and 50% Non
TU based
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INTERNSHIP REPORT ON NBC
Non TU Base Area
Muridke
Kamoki
Hafizabad
Daska and Outstation.
TU Base Area
Shekhupura
Shadra
Gujranwala
Gujrat
Jehlum
Sialkot
SHIPPING DEPARTMENTSHIPPING DEPARTMENT
Shipping is a very critical area for any beverage organization. It serves the role of coordinator or
middleman between production and sales. Ensuring appropriate quantity and on time availability
of empty & liquid stock is utmost important. Any malfunction in empty receiving, storage and
supply to plants, liquid stock and distribution directly affects sales. This is a complete chain or
cycle and any weak link, bottle neck or disturbances will slowdown the whole operations.
The Shipping System of NBC is responsible for the management of the
following tasks:
Shipping is responsible for managing the empties that are required for production.
Shipping is responsible for receiving the liquid clearance from excise to dispatch it further to
Depots & distributors or parties.
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INTERNSHIP REPORT ON NBC
Shipping is also responsible for maintaining proper stock of liquids and empties as they appear in
the liquid and empties stock register, so as the stock appears in the registers, it should also be
physically present in the depots.
Shipping is also responsible for proper management of empties and liquid vehicles loading and
off-loading i.e. time management is very important in this case.
Shipping also receives new empties of both RB and NRB and manages their storage and
handling and their proper supply to production as they are required by the production for filling
purpose.
The management of other empty stock is also the responsibility of Shipping Department and its
exchange is especially important in this case.
Detail of these functions is as follows:
RESPONSIBILITIES OF DEPOT INCHARGE
Monitoring of empty and stock incharges
Maintenance of shipping records and documents
Reconciling physical stock with MIS reports
Posting on balance sheet register
Sending daily stock report and dealer wise sales report to factory
Receiving bank slips from dealers
Clearance of depot's settlement sheet
Transfer of cash to friends agency account
Maintenance of stock FIFO system
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INTERNSHIP REPORT ON NBC
During my visit to depot Shahdara, I studied depot operations and
* The job of stock incharge.
Perfoemed the job of empty incharge.
* Worked on the seat of shift incharge.
* Drew liquid laws arrangement, Depot layout and time study of loading & unloading of
vehicles.
SSHIPPINGHIPPING R REPORTSEPORTS
Daily shipments report Daily carton report
Daily packing report
Daily pet empty report
Daily net empty report
Daily filled stock report
Daily production (filled stock) report
Daily liquid stock tacking report (shift wise)
Daily empty stock tacking report (shift wise)
Daily plastic shells report
Daily excise report
Daily dirty empty wash repot
Daily pending load report
Daily vehicles ( loading / un-loading ) report
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INTERNSHIP REPORT ON NBC
APPENDIX
ASSIGNMENT NO 1
The Assistant Manager MRD Department gave me a assignment on Stock Keeping Units (SKU). The detail of SKU is given below
Purpose of SKU
The main purpose of SKU is to maintain the stock in the market.
Brands with packages of NBC SKU
There are 51 SKU of NBC which are available in market. These SKU consist on soft drinks, and juices, energy drink and mineral water.
P P. Diet M T 7Up 7Up F MD
SSRB
MSRB
1L PET
1.5 L (Pet)
2.25 L
500 ml
300 ml
SSNR
CAN
Slice Sting Aquafina
240 ml
TP/NR
250 ml
CAN
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1.5
500 ml
ASSIGNMENT NO 2
Name of Units, Units Manager, Regions and S&D Manager
Sr. #
Units Units Manager Regions S&D Manager
1Gujranwala Unit 1
Mr. Imran Shafiq
Gujranwala BaseMr. Saeed ullah Khan
2Gujranwala Unit 2
Mr. Johar Islam
3Gujranwala Unit 3
Mr. Riaz Islam
4 Hafizabad Mr. Abdul Rasheed
Gujranwala outMr. Hussain Ali Sehgal
5 Wazirabad Mr. Akhtar Hussain
6 Kamoki Mr. Muhammad Rafiq
7 Sheikhupura Mr. Amir Nazir
SheikhpuraMr. Tanveer Qureshi
8 Shahdra Base Mr. Fayyaz Khan
9 Nankana Mr. Yousaf Amin
10 Farooqabad Mr. Shakif Bashir
11 Muridke Mr. Shahzad Hassan
12 Sialkot Base Mr. Ghulam Murtaza Sialkot Mr. Amir Razzaq
13 Sialkot out Mr. Hammad Zafar
14 Daska Mr. Muzaffar-ud-din
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INTERNSHIP REPORT ON NBC
15 Pasroor Mr. Abdul Wahid
16 Narowal Mr. M. Yaseen
17 Gujrat Base Mr. Amir Saleem
GujratMr. Iftikhar Ahmad
18 Gujrat out Mr. Maqsood Sarfraz
19 M.B. Din Mr. Rao Atif Nazir
20 Jehlum Mr. Khuram ShahzadJehlum
Mr. Jawad Akram Baig21 Chakwal Mr. Jawad Khan
ASSIGNMENT NO. 3
Market survey
I visited the Kamoke Unit with Marketing Research Officer team to collect the data from retailers about SKU and to check the chiller integrity. I visited about 17 shopes and collect the data on market survey form.
Market Survey Form
Market survey form consist of name & address of retailers, detail of SKU, purchasing and sales rates.
Survey Results
All packages with all brands were available in this unitTwo shops were misusing the chiller15 shops were selling the only pepsi brand
ASSIGNMENT NO4
Production Department
The Assistant Manager of production Department Zahid Arif gave me assignment on the following complete production processes.
DecaserWasherFiller
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INTERNSHIP REPORT ON NBC
Trade MarkCell wise rejection percentageQC LabBoiler QA Lab
Decaserdecaser circulates eight times in per minute and in each circulation decaser takes
four crates for washing. Each crate has 24 bottles.
WasherIt consists of 5 tanks detail is below.
Tank # Temperature Description
1 50 to 65 degree Centigrade Hot water (by steam)
260 to 70 degree Centigrade Caustic tank No.1 (Caustic
Soda)
370 to 75 degree Centigrade Caustic tank No.2 (Caustic
Soda)
4 50 to 55 degree Centigrade Hot water
5 Cold water (Fresh water)
Washer Capacity
Total lifts of washer are 428, each lift has 40 pockets. In one minute 640 bottles are washed.
Filler PlantIn filler tank water, syrup and CO2 are mixed and finally bottle is produced by
filler plant.
Filler Plant Capacityproduce 515 bottles in 1 minute of 7Up and 600 in general
Trade Mark
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INTERNSHIP REPORT ON NBC
Trade mark the bottle after production by laser machine. The sample of trade mark discussed below.
L12 103C× 5AA17:20 BB Jan 13
L means NBC Gujranwala12 means year103 show the date (start from January to onward)C unit No. 15 plant No.AA supervisor name17:20 time of productionBB best before
Cell wise rejection percentage
Cell No. Rejection percentage
1 50%
2 30%
3 15%
4 5%
5 No rejection
What is rejection? How many cases are rejected in hour after production?
Breakage 8 cases rejected
Dirty
Logo
Foreign matter
High and low filling level
Quality Control Lab
Quality control Manager gave me assignment of water treatment process and syrup preparation.
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Water treatment process
Raw water Reaction tank Sand fitter Protected storage
treated water U.V Polisher Carbon purifier
Syrup preparation
There are two rooms for syrup preparation
Sugar feeding roomAfter each two hours 80 bags of 50 Kg feed in sugar tankPressurizer roomPressurizer room has three tanks one for water other two tanks for mixture of water and sugar. This mixture is passed through filter press for purification and then passed from heater changer for the purpose of cold.
Quality Control Lab Function
Check the CO2 level e.g3.2 psi of dewCheck the densityMeasure the PH 2.5 of pepsi acidicDegassingTorque test of crownWeightSugar test e.g 10.4 brix pepsi
Boiler
The purpose of boiler provide the steam.
Quality Assurance Lab
Quality assurance lab receives the raw material and packaging material, check sampling and finalize.
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What is Raw material?
Ferrous sulphat Lime H2SO4 CaO CO2 Salt Caustic solution
What is packaging Material?
There are two types of packaging Material
Primary (which touch the beverage) Secondary
Pet empty Paper glass
Chromes Cottons
Glass Lits
Caps Sheets
Height, weight -
Body dia, heal dia -
Shoulder, label -
Fill point capacity -
Logo -
Types of test
Physical base test High flow Activity carbon (remove smell) Viewal test Check the weight.
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INTERNSHIP REPORT ON NBC
Survey was conducted of around 100 respondents.
WHAT IS YOUR AGE
Below 15 15-30 30-50 50 and above.
YOUR AREA OF LIVING-----------------------
Mohala Town Village Colony
Other -------------------------------
YOUR INCOME
Below 10000 Rs 10000-30000 30000-60000 60000 above
SEX
Male Female
DAILY ACTIVITY LEVEL
Highly active Moderately active Sitting Resting
BEVERAGE PREFERRED IN THIRST EXCEPT FOR WATER
Carbonated soft drinks Fresh juices
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SURVEY QUESTIONNAIRE FOR BEVERAGES
INTERNSHIP REPORT ON NBC
Flavored juices Energy drink
CARBONATED SOFT DRINKS PREFERRED BRAND
Pepsi cola Coca cola Gourmet cola Other
REASON FOR LIKING
Price Taste Advertising Availability Bottle shape Other reason
MOST CONSUMED SOFT DRINK
Pepsi Coke Teem 7up Mirinda Fanta Sting Dew Sprite
JUICES
Shezan Pulpy orange Slice Other--------------------------
CARBONATED SOFT DRINK FREQUENCY
Daily Weekly Monthly By –chance
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Never
QUANTITY OF CONSUMPTION
Daily …………Weekly……..Monthly………
YOUR PERCEIVED PRICE OF YOUR MOST LIKED BEVERAGE
Beverage……………………… Price……………..
BEVERAGE AVAILABILITY POINTS FOR YOU. Pan shop Bakery Burger shop General store Other------------------------------
CONSUMPTION QUANTITY PREFERRED
250 ml 300ml 500ml 1.5 liter 2,25 liter Other--------------------
Do you like your beverage from your childhood or you switched to the other brand? If yes then why?
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.
YOUR PREFERRED PACKING?
pet glass tin other
ENERGY DRINKS
sting
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Red bull Power full Verve Other-----------------
HOW DO YOU SEE PEPSI AS BRAND?
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WHAT IMPROVEMENT DO YOU THINK PEPSI NEEDS?
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