Functions NBC perform

Group MembersMuhammad BilalM.Zishan KhanMehraj KhanAkhtar YousafFarhan AhmedM.shoaib1

2Northern Bottling Company(Pvt) Ltd16-A, Industrial Estate, Peshawar

IntroductionEstablished in 1964Obtain franchise right for production & selling of PEPSI brandsCover the entire KPK marketProduce & distribute Pepsi Cola, Miranda, 7-up & dewImplement marketing programs of the licensorHold 62% market shares in KPK Employed 2659 workersTarget customers are youthHave Focused differentiated strategyAlways choose related diversification

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Mission, vision & objectiveOBJECTIVE:Objectiveof our business strategy are to increase volume, expand our share worldwide nonalcoholic ready-to-drink beverage sales, maximize our long term cash flows and create economic value added by improving economic profit.

4Functions NBC perform Production DepartmentWater purificationSyrup roomLaboratory testingFilling bottle with raw materialsCompression & refrigeration Shipping & Logistics DepartmentSupply of raw material from head department of companyMaintaining inventoryCollecting products from production departmentStocking the finished productsProviding the vehicle for distribution of products to whole seller & retailers

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Matching all over KPK demand by stocking raw materialMaintaining sales record

Cash DepartmentRecording cash saleAccount receivables & payablesMaintaining cash for raw material acquisitionPreparing monthly, quarterly & annual company statements

Account departmentMaintaining distributors & suppliers recordManaging employee payroll systemPreparing daily vouchers

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MIS departmentManaging all organization hardware's (printer etc.) & software's (auto generated slips and gate pass)Minimum inventory warning

Marketing departmentAdvertisement(mainly commercial, banners & posters)Sponsorship through different programsBudget allocationProviding effective communication b/w retailers and suppliersKeeping timely and enthusiastic sales officer & sales person R&D departmentImproving product quality and innovation in packagingCheck & balance on original product in market7Key success factors of nbcEstablished brand imageEffective marketing communicationQualified and enthusiastic sale forceEasy & timely availability of raw materialTimely availability of the productLoyal customersBroad channel of sub-distributorsInnovative marketing tacticsEnhanced innovation capabilitieslow- and zero-calorie beveragesStrong advertising company with more than 40 slogans and songs

8Northern Bottling Company Dominance over other distributors & Supply ChainsConvenienceLeads toBrand loyaltyLeads toHigher DemandThereforeFood outlets & retail store sells PEPSI instead of COKE and local productsIn-store monopoly is achievedNBC distributions is widely available as compare to KO & other local productsResult inResult in99Distribution Channel of nbcThe company operates through a well-established network of a number of distributors. The company has two types of delivery systems i.e.Direct delivery system: Direct distribution system, the company spends its own resources(e.g labors, vehicles & sale force etc.)Indirect delivery system: The dealers spends their own resources on all the factors which increased the sale. The company also has its depots in different cities. Which helps a lot in increasing its sale and directing the distribution system.

10Tangible & intangible resources of nbcTANGIBLE FACTORS:Labor is easily available from villages & city at normal wages. No problem is there for supply of electricity. Most essential raw material i.e. water is easily available to them. Transportation cost is low. Peshawar is the center of their distribution area and they can easily fulfill the requirements of the KPK areas.IN TANGIBLE FACTORS:Community attitude is positive towards Pepsi Cola. Working conditions are quite good for employees i.e. No harm is there for their health & psychology.11Strategic plans of NBcMarket development is a strategy that NBC is applying by expanding in areas in KPK that not already established and coveredUsing forward integration to acquire smaller & individual distributors in other KPK regions markets to increase their market share and convenient availability of the productsProduct development and related diversification is also considering while trying to produce and distribute healthier products.Introducing new innovative advertisementBuilding research team of experts to identify 3rd quality products

12Future direction of NbcThe company operates through a well experienced, loyal and hardworking employees. The first and the most basic plan it to train them according to the changing technology and computerized environment, and satisfying their needs and requirements. Upgrading the plant structure and installation of the new machinery are other plans.The company is planning to increase its sales force and development in its infrastructure in the coming time period.

13Strategic customers of NBCCity & district level main retailersIndividual distributorsWhole sellersRetail storesTarget segments like hotels, restaurants, colleges & universities cafeterias & public places like general bus stands etc.Target group of youth("Now it's Pepsi, for those who think young")

14Value creation process of NBcThe NBC creates value by executing a comprehensive business strategy guided by six key beliefs;Consumer Demand drives every thing we do.Brand Pepsi products is the core of our businessWe will serve consumers a broad selection of the nonalcoholic ready to drink beverage they want to drink throughout the day.We will be best marketers in the entire KPK market.We will think Globally and act Locally.We will lead as a model corporate citizen

15Value creation process16162543Competitor of nbcCoca cola is the main competitor of NBC in KPK market.Coca cola = 46% sharePepsi = 39% shareLocal products = 15% share17

BCG matrix of NBC18

Space graph19

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Positioning Map of NBC in kpk20

High Prices

Low PricesLimited Products

Diverse Products

NBC (PEPSI) in KPK

Coca Cola producers & distributors in KPK

Other KPK local producers & distributorsHOW THE NEW EMPLOYEES OF NBC LEARN CULTURENBCs Culture is transmitted to new employees in a number of forms, the most potent being;STORIESRITUALSMATERIAL SYMBOLSLANGUAGES

21StoriesOld employees of the company carry those stories about the people who had worked with the organization and the rewards they received.

They are well familiar with the past experiences and their outcomes. They either frighten them or give them courage to follow or not the procedures set by the company.

The old bosses of the department brief new comers how they should have to perform their duties and what are the norms of the company which cannot be violated.

For example Mr. ijaz khattak is the In charge of MIS Department of NBC., he is responsible for the initial training of the new comers. He gives them all the details regarding the Department, and Organization. He tells them about the decorum of the office and likely behavior to be pretended22RITUALS

Some activities in NBC are considered to be the understood activities like the break for Namaz-E-Juma.

As the members of NBC., are regular prayer sayings, so a break for the prayer is understood and nobody is compelled to do any office work during the break.

Also there is a company policy in NBC., that is to give 15 days annual recreational holidays with pay. Anybody who wants to go for those holidays, he can go with the consents of his boss.

23MATERIAL SYMBOLS

24As NBC is the franchise of Pepsi so it uses the logo of PepsiCo,.

Another motivational cultural approach is to give due position to the employees who deserve that position. In "NBC" , the top executive like Mr. Aamir Hameed GM Sales, has been given a chauffer-driven Honda Civic Car, a latest Laptop, Unlimited use of mobile phone, a well furnished house, free cold drinks up to 200 c/s. and a very handsome salary package. So the material symbols like these facilities also show the best cultural values and motivational tactics for the new comers and for those persons who work hard in the organization.Few symbols of nbc25b

LANGUAGES

The employees of NBC have a formal way of behaving to each otherThey talk formal like Sir even to their co-workers.Mostly employees talks in UrduThey respect each other all the way to share the respect. Hence use of formal language is also key to learn the culture in NBC26SWOT AnalysisStrengths:

Company ImageQuality consciousness of Pepsi co.Production capacity.Market share.Sponsorships.CSR.

Opportunities:

Changing social class.Emerging middle class and their tastes.Diversification.

Weaknesses

Decline in taste.Weak distribution in rural areas.Low consumer knowledge.

Threats

Imitators.Government regulation.Power shortages.Political instability in kpk province.What if supplier (Pepsi co) reduce supply?Labor strikes.

NBC cultureValues and beliefsService to the kpk communityEqual employment opportunities(race, ethnicity)BehaviorsStrict scheduleBusy routinesBrotherly feelings inside NBC among all employees.

PESTEL FrameworkPolitical factorsPolitical instability.Security concerns and hurdles in supplying and acquiring the products.

Economical factorsEmerging middle class.Consumer income is high in cities less tend to eat outconvenience is important in KPK.

Social factor people & society attitude is positive towards Pepsi In mostly wedding & family parties soft drinks such as Pepsi is offer to guests Technological factor

To upgrade technological capabilities by the acquisition of latest tools & technology recommended by PCI to drive Quality Evolution:

Statistical Process ControlStandards, Methods and ManualsTrade Age ManagementLaboratory Validation & Up-gradationInternet promotion such as banner ads and keywords can increase their sales, and more computerized manufacturing and ordering processes can increase their efficiency

ContinuePEOPLE AND ORGANIZATIONTo share ownership for Quality with everyone at all levels through:TrainingProcess OwnershipEmpowerment

Strategic capability of NBCStrategic capabilityThreshold resourcesThreshold competenciesUnique resourcesCore competencesCompanys strategy for futureCONSUMER FOCUSNBC's focus CPQ (Consumer Perception of Quality)BenchmarkingUp-gradation of Quality Measurement SystemSensory & Appearance Testing

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