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”

7

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

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.

8

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.

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

9

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,

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

10

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

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

12

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.

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.

13

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.

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:

14

Following are main products of LB Pvt. Ltd.

Pepsi

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.

15

Calories 100

Total Fats (g) 0

Sodium (mg) 25

Potassium (mg) 10

Total Carbohydrates (g) 27

Sugar (g) 0

Protein (g) 0

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.

16

Calories 120

Total Fats (g) 0

Sodium (mg) 25

Total Carbohydrates (g) 33

Protein (g) 0

Sugar (g) 32

Caffeine (mg) 24

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

17

CLEAR LEMON

7up

Cool 7up

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.

18

Calories 120

Total Fats (g) 0

Sodium (mg) 25

Potassium 35

Total Carbohydrates (g) 35

Protein (g) 35

Sugar (g) 0

Caffeine (mg) 0

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

19

Potassium 0

Total Carbohydrates (g) 0

Protein (g) 0

Sugar (g) 0

Caffeine (mg) 0

.

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

DIRECTOR(LB BEVERAGE)

Logistic Dept.

Logistic Manager

Staff

Plant Mgmt.

Production Manger

Supervisors

Staff

Lab

Store

Personal Dept.

PersonalManager

Personal Officer

Staff

Security

Dept

.

Purchase Dept.

Purchase Manager

Supervisors

Staff

Store

PMTMI Scooler Dept.

Equipment Manager

Finance Dept.

Finance Manager

Account Executi

ve

Accountant

ORGANIZATION CHART OF LUMBINI BEVERAGES. HAJIPUR

23

CHAPTER-4

FUNCTIONAL DEPARTMENT

24

4.1-HUMAN RESOURCE MANAGEMENT

PEOPLE : ORGANISATION STURUCTURE

25

GENERAL MANAGER

HUMAN RESOURCE

HR MANAGER

HUMAN RESOURCE

REGIONAL HR MANAGER

HUMAN RESOURCE

ASSISTANT HR MANAGER

HUMAN RESOURCE

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:

26

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.

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.

27

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

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

28

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).

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

DIRECTOR(LUMBINI BEVERAGE)

HEAD OF SALES

Finance Departm

ent

Finance Manag

er

Account

Executive

Accounta

nt

Shipping Departm

ent

Supervisors

Staff

Marketing Developm

ent Manager

Marketing

Officer

Merchandi

ser

Territory Develop

ment Manger

Account Development coordinat

or

Sr. Custom

er Executi

ve

Customer Executive

Salesman

Loaders

PERSONAL DEPARTMENT

4.2-MARKETING DEPARTMENT

PEOPLE:

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

31

Consumer

Indenting

Primary Sale

Secondary SaleMarket / Retailers

Distributor

LB’s Plant

convenience items such as Tobacco, gasoline, and soap, snack foods & bubblegum.

Manufactures are constantly tempted to move from exclusive or selective distribution to more

SYSTEM OF LUMBINI BEVERAGES LTD.

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

32

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

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

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Grocery Channel

Eatery Channel

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

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 channel includes different kiosks are which is convenient to general public.

Grocery channel includes different grocery shops .

Eatery channel includes different hotels, restaurants

etc.

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Convenience

Channel

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

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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.

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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.

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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

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MEDIA : What media should be used?

MEASUREMENT : Method of evaluation of Result.

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”.

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

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

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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

41

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

4.3-FINANCE DEPARTMENT

PEOPLE:

ORGANISZATION STRUCTURE

42

CENTRAL ZONE FINANCE

MANAGER

NORTH ZONE FINANCE

MANAGER

AREA HEAD CASHIER

(FINANCE MANAGER)

ACCOUNTENT

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

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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 HighlightsSales 48.55 Bil

Income 6.18 Bil

Net Profit Margin 12.81%

Return on Equity 36.55%

Debt/Equity Ratio 1.23

Revenue/Share 30.31

Earnings/Share 3.86

Book Value/Share 12.32

Dividend Rate 1.92

Payout Ratio 47.00%

Revenue - Quarterly Results (in Millions)  FY (11/10) FY

(11/09) FY (11/08)

1st Qtr NA NA NA2nd Qtr 14,801.0 10,592.0 10,945.03rd Qtr NA 11,080.0 11,244.04th Qtr NA NA NATotal 14,801.0 21,672.0 22,189.0

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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.

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PROBLEMS

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

2. More emphasis is given to the big dealers only

4.5-PRODUCTION DEPARTMENTPEOPLE

46

VICE PRESIDENT PRODUCTION DEPARTMENT

GENERAL MANAGER

MANAGER PRODUCTION

EXECUTIVE PRODUCTION

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.

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OFFICER PRODUCTION

ASSISTANT PRODUCTION

TECHNICIAN

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

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:

48

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.

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

49

Bottling&Crowning

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

50

per minute

Final Check

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

51

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.

PROBLEMS1.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.

CHAPTER-5

52

SWOT ANALYSIS ,

VISION,MISSIONAND OBJECTIVES

5.1-SWOT ANALYSIS

STRENGTH

L B has a broader production line and outstanding reputation

Great brands, strong distribution, innovative capabilities

53

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.

5.2-VISION AND MISSION OF THE COMPANY

VISION

54

"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.

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'

55

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.

56

CHAPTER-6

FINDINGS &

SUGGESTIONS

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.

57

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.

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

58

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.

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

59

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.

BIBLIOGRAPHY60

BIBLIOGRAPHY

Reference Books

Marketing Management: Philip Kotler

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Journal Magazines 

Business World

Business Today

Websites

www.pepsizone.com

www.pepsiindia.com

www.pepsico.com

www.google.com

`

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