Mba 13010025
Mba 13010025
Mba 13010025
INTERNAL GUIDE
Prof. Manish Kothari
Asst. Professor
EXTERNAL GUIDE
Ms. Kruthika Tikare
MIS Analyst
NBPL Dharwad
AUGUST 2014
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DECLARATION
A
I further declare that this project has not formed the basis for award of any
other degree/ diploma of other University/ Institution.
Date:
Place: Dharwad
DVHIMSR, Dharwad
Deepak S Kotrashetty
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ACKNOWLEDGEMENT
At the outset, I would like to take this opportunity to acknowledge the
support and cooperation of all those who enabled successful completion of
this Summer In-plant Training.
I have immense pleasure in expressing my deepest gratitude to our
Honorable Director Dr. C. S. Rajagopal, for his guidance, which goes a long
way to set my future career.
I wish to express my thanks to Ms. Krutika Tikare, Marketing Dept MIS
Analyst, Nectar beverages Pvt Ltd for giving me an opportunity to do my
project work. I express my heartfelt thanks to other members of Marketing
Dept for their cooperation and guidance.
I extend my thanks to Prof. Manish Kothari, Assistant Professor, Dr. Anil
Yaragatti, Academic Dean and other faculty members of our Institute for
extending valuable advice and support during the project period.
Last but not the least there were so many who shared valuable information
that helped in successful completion of this project all of whom I also wish
to thank.
Deepak S Kotrashetty
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CONTENTS
SL .NO
TITLE
1.
PAGE.
NO
EXECUTIVE SUMMARY
2.
INTRODUCTION.
3.
ORGANIZATIONAL STUDY
4.
THEORETICAL BACKGROUND
5.
RESEARCH DESIGN
6.
7.
RECOMMENDATIONS
8.
CONCLUSION
9.
BIBLIOGRAPHY
10.
ANNEXURE
EXECUTIVE SUMMARY
A supply chain of Nectar Beverage Pvt. Ltd. is dynamic and involves the constant flow of
information, products and funds between different stages. The term supply chain conjures
up images of product or supply moving from suppliers to manufacturers to distributers to
retailers to customers along a chain.
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INDUSTRY OVERVIEW
India is the 7th largest country in the world with a population of 1000 million people and
an area of 3.29million sq.kms. Out of its about 1000 million people, approximately 250
million people are affluent middle and upper middle class sections of society with a good
purchasing power. According to the World Bank statistics released recently in
Washington, India is the worlds fifth largest economy in terms of purchasing power
parity (PPP) next to only U.S., China, Japan and Germany.
India is the country that offers the greatest potential, even more so than China. Right now,
India accounts for approximately 10% of global beverage consumption. That makes
beverage consumption in India the third largest in the world, after the United States and
China. And when it comes to carbonated soft drinks, the market has not even been
properly tapped. The situation is similar in the case of bottled and packaged juices and
water and PET packaging. Given its size, the Indian market is still in its infancy. For the
future, beverage manufacturers must invest in plants and equipment "drink technology
India" is the perfect place for them to prepare for and initiate those investments.
The country has broadly two seasons, hot and cold. The hot season can befurther divided
into two parts, summer (AprilMay) and rainy (JuneSeptember). The cold season
consists of autumn (October November and winter (December March). The
consumption of soft drinks is generally high in the hot season, although there is also
steady consumption in the cold season particularly at the time of marriages and parties.
Soft drinks are not listed as high priority items in Indias new industrial policy of 1991
and multinational companies can enter India with an equity of 51% or even up to 100%
with the special permission of the Foreign Investment Promotion Board (FIPB). Two
multinational namely, Coca Cola holding of Atlanta USA (Coke) and PepsiCo (Pepsi)
also of USA entered the country with special permission from the FIPB.
PepsiCo took over a hundred year company of Bombay called Duke and Sons Pvt. Ltd.
which had popular Soda, Lemonade and Mango Brands with a 25% share of the market in
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Key Players
Coca-Cola plans to foray into India's dairy segment in the coming season with its
milk-based drink 'Maaza Milky Delite'. The beverage made from milk and mango
pulp will now be rolled across the country in 200 ml tetra packs.
Everest Spices plans to set up spices processing units in the East African country
Zanzibar at an investment of about Rs 100 crore (US$ 16.73 million), said
MrSanjeev Shah, Executive Director, Everest Spices. The firm has entered into a
memorandum of understanding (MoU) with the Government of Zanzibar for the
same.
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Hardcastle Restaurants, master franchise for west and south India operations of
McDonald's Restaurants, plans to bring its coffee retail format McCafe to India.
More than 150 McCafes are expected to be set up in the next five years.
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Within the beverages market, packaged juice has charted a high growth trajectory.
As of March 2013, the Indian packaged juices market is valued at Rs 1100 crore
(US$ 183.89 million) and is projected to grow at a compound annual growth rate
(CAGR) of 15 per cent over the next three years. Dabur India Ltd is the
established leader with a market share of 54 per cent with its brands Real and Real
Active. PepsiCo India is the second largest player with a 2530 per cent share
through its Tropicana juice brand.
Milk and tea could also witness rapid growth, as foreign firms have started
looking at India as a huge dairy market. It has been projected that Indias
packaged milk segment would grow from US$ 7.76 billion to US$ 32.9 billion
and register an annual growth of eight per cent by 2030. The top ten companies in
India account for 65 per cent of the hot beverage market.
Government Initiatives
The Government of India has allowed FDI up to 100 per cent in food processing
sector through automatic route. For promotion and development of the food
processing sector, it has allocated a sum of Rs 5,990 crore (US$ 1 billion) under
various schemes of the food processing industries ministry during the 12th Five
Year Plan.
The MOFPI and Invest India have entered into an agreement for the setting up of
an Investors Help Desk for offering online support to investors, both domestic
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With the objective of providing incentive to create integrated cold chain and
preservation infrastructure facilities in the country, the Ministry is implementing
the Scheme of Integrated Cold Chain, Value Addition and Preservation
Infrastructure.
Road Ahead
The MOFPI has formulated a Vision 2015 Action Plan that includes trebling the
size of the food processing industry, raising the level of processing of perishables
from 6 per cent to 20 per cent, increasing value addition from 20 per cent to 35 per
cent, and enhancing India's share in global food trade from 1.5 per cent to 3 per
cent.
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COMPANY PROFILE
About the Pepsi-Cola Company
The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So a
young pharmacist named Caleb Braham began experimenting with combinations of
spices, juices and syrups trying to create a refreshing new drink to serve his customers.
He succeeded beyond all expectations because he invented the beverage known around
the world as Pepsi Cola.
Caleb Braham knew that to keep people returning to his pharmacy, he would have to turn it into a
gathering place. He did so by concocting his own special beverage, soft drink. His creation, a
unique mixture of cola nut extract, vanilla and rare oils, became so popular his customers named
it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and advertised his new soft drink.
In 1902, he launched the Company in the back room of his pharmacy, and applied to the U.S.
patent office for a trademark. At first, he mixed the syrup himself and sold it exclusively through
soda fountains. But soon Caleb recognized that a greater opportunity existed to bottle Pepsi so
that people could drink it anywhere.
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Pepsi-Cola's first bottling line resulted from some less-than-sophisticated engineering in the back
room of Caleb's pharmacy.
Building a strong franchise system was one of Caleb's greatest achievements. Local Pepsi-Cola
bottlers, entrepreneurial in spirit and dedicated to the product's success, provided a sturdy
foundation. They were the corner stone of the Pepsi-Cola enterprise Growth was phenomenal, and
in 1909 Caleb erected a headquarters sospectacular that the town of new berm pictured it on a
postcard.
The previous year, Pepsi had been one of the first companies in the United States to switch from
horse-drawn transport to motor vehicles and Caleb's business expertise captured widespread
attention. He was even mentioned as a possible candidate for Governor. A 1913 editorial in the
Greensboro Patriot praised him for his "keen and energetic business sense."
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PepsiCo Inc. is best known for its soft drink Pepsi and Mountain dew and yet, over the
years it has also created logo items, such as T-shirts, hats and duffel bags with the Pepsi
globe design. These are part of its marketing strategy to promote the drinks in the minds
of the people making the drink a part of the life of their life. But that sort of marketing has
its limitations. These items can be taken to the beach but they are not a 'brand'. In today's
lifestyle a brand name is what is needed to succeed. It is the brand name that Grabs the
attention of the consumer and retains their loyalty as price, quality etc. become associated
with the name accordingly. So the logo accessories that were promoted by Pepsi may
have been used but they did not create an awareness of Pepsi in any market other than that
of soft drinks.The Indian Carbonated Beverage Industry is a very dynamic industry. The
soft drinks are the life style brads and are closely related with the consumers. The passion
for cricket in the country makes it a unique market. The Indian Carbonated Beverage
Industry is worth Rs.1000crore, which is equal to 270millon cases i.e. 6480millon bottled.
The current growth rate of industry is 8%. Among the total Cola product 62% is of soft
drinks and 36% is an orange, cloudy lime, clear lime and mango juices.
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Pepsi Cola Pepsi Cola beverage business was founded at turn of the century by Caleb
Bradham a New Bern N.C druggist who formulated Pepsi Cola. Pepsi Cola Company
now produces and markets nearly 200 refreshment beverages to retail, restaurants and
food service customers in more then 190 countries and territories around the world and
generates revenue of over 18 billion dollars. Although Pepsi holdings over the years have
become diverse in such fields as the snack industry and restaurants industry this portfolio
will discuss its core business and its highly successful business of beverages. The soft
drink industry customer base is probably the widest and deepest base in a world that is
flooded with some many categories. According to Beverage Digest the customer base for
soft drinks is a whopping 95% of regular users in the United States.
This represents a large field of potential customers for Pepsi Cola. Yet although Pepsi
could just use the majority fallacy to market their product, Pepsi prefers to segment itself
as the beverage choice of the New Generation, Generation Next, or just as the Pepsi
Generation.
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CORPORATE CITIZENSHIP
At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute
to the quality of life in our communities. This philosophy is expressed in our
sustainability vision which states: PepsiCos 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.
PepsiCos beverage business was founded 1898 by Caleb Bradham, a New Bern, North
Carolina druggist, who first formulated Pepsi-Cola. Today Brand Pepsi is part of a
portfolio of beverage brands that includes carbonated soft drinks, juices and juice drinks,
ready-to-drink teas and coffee drinks, isotonic sports drinks, bottled water and enhanced
waters. PBNA has well known brand such as Mountain Dew, Diet Pepsi, Gatorade,
Tropicana Pure Premium, Aquafina water, Sierra Mist, Mug, Tropicana juice drinks,
Slice, Dole, Tropicana Twister and Tropicana Seasons Best.
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Pepsi in India
After Coco-cola was asked to leave India, Pepsi began to lay plans to enter this huge
market. Pepsi worked with an Indian business group to seek government approved for its
entry over the objections of both domestic soft drinks companies and anti-multinational
legislators. Pepsi saw the solution to lie in making an offer that the Indian Government
would find hard to refuse. Pepsi offered to help India export some of its agricultural
products in volume that would more than cover the cost of importing soft- drink
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COMPETITORS PROFILE
COCA COLA
Overview:
The Coca-Cola Company is the worlds largest beverage company, generating $22.0 billion in net
operating revenues in 2004. The Coca-Cola Company markets four of the worlds top-five softdrink brandsCoca-Cola, diet Coke, Sprite and Fanta. Our beverage offerings encompass nearly
400 brands, including coffees and teas, juices and juice drinks, sports drinks and waters, as well as
carbonated soft drinks.
With operations in more than 200 countries, we have a diverse workforce of approximately
50,000 individuals. Together with our subsidiaries and bottling partners, we strive to be an
integral and contributing member of each of the communities where we operate.
When speaking about the corporate sector, the main competition is from the coca cola. It is not
only in India but throughout the world both the companies are to increase their market share.
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Pepsi and Coca cola are the major companies in the soft drink industry throughout the world. The
total worth is Rs.4200 crore rupees of BSD industry is perfect duopoly with the two usual global
giants.
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3 Mar
4 April
5 May
6 Jun
7 July
8 Aug
5% (Weak season)
9 Sept
10 Oct
11 Nov
15 %( Transit season)
12 Dec
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Every incoming raw material is checked for quality by the Quality Assurance
Department.
Apart from this, on line and final product checks are carried out at regular
intervals.
The entire ranges of equipments are made out of superior grade Stainless steel
Material.
House keeping
Special attention is also given to keep the Factory Surroundings Clean and Green
by growing Lawn.
Quality Policy:
Make, sell and deliver the beverage to the consumer as it was designed, in order
to derive preference. Nectar Beverages follows one quality standard across the globe.
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PRODUCTS PROFILE:
Main Brands of the company:
Pepsi
Glass bottle
200ml
Glass bottle
300ml
Tin
250ml
PET bottle
600ml
PET Bottle
2 litres
MIRINDA LEMON
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Glass bottle
200ml
Glass bottle
300ml
Tin
250ml
PET bottle
600ml
PET Bottle
2 litres
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MOUNTAIN DEW
Glass bottle
200ml
Glass bottle
300ml
Tin
250ml
PET bottle
600ml
PET Bottle
2 litres
SLice
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Glass bottle
200ml
Glass bottle
250ml
PET bottle
500ml
PET Bottle
1.2litres
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200ml
Glass bottle
300ml
TIN
250ml
PET bottle
600ml
PET Bottle
2litres
MIRINDA
Glass bottle
200ml
Glass bottle
300ml
TIN
250ml
PET bottle
600ml
PET Bottle
2litres
AQUAFINA
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PET bottle
500 ml
PET bottle
1 Litres
PET Bottle
2Litres
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System
System refers to the formal process and procedure used to manage the
organization, including the management control systems, performance management
measurement and record systems, performance measurement and reward systems,
planning, budgeting resource allocation systems information system and distribution
systems.
a) Sales forecasting system:
In Nectar Beverages, there are 3-territory developments managers given different
areas, the sales are forecast depending on the previous years sales.
b) Order receiving system:
In order receiving system the customer executives will take a major part they will
go to each distributor in various areas and take the order form the distributor. The
collected orders will be shown to the area sales manager and area sales manager will give
indent to the marketing manager of Dharwad, the area sales manager will take care the
crates which will be sent back to the plant for refilling.
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d) Logistic system:
There is not so big logistic system in Nectar Beverages. The stock will be just
interchanged between the near district places. The indent given by the distributor will be
delivered within 2-3 days of indent received.
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Raw materials
Sweetening agent
Syrup Preparation
Co2 &
carbonation
Concentrates
Bottle washing
Filling bottles
Effluent treatment
plant
Bottle line
Quality Assurance
Store
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2. The inspected bottles are feed into the bottle washing machine, automatically. The
bottles are turned upside down to drain any contents and given a pre rinse spray wash
both internally and externally with plain water with certain pressure. This operation is
called pre rinse operation. Then the bottles are moved to pre wash compartment, where
the bottles are spray washed both internally and externally with 1 to 1.5% caustic
solutions at 450C to 550C temperature.
3. Bottles are then, moved into a tank in the bottle washing machine, where the bottles are
soaked with caustic solution of 3 to 3.5% at 750C temperature. To get these best
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4. Then the soaked bottles are moved to a compartment called Hydro, where again the
bottles are given spray wash both internally and externally with 1 to 1.5% caustic wash
at 50 to 550C.
5. Bottles are moved to a compartment called pre-final compartment where again the
bottles are given spray wash with soft water to remove the caustic traces. Here the
temperature is maintained around 40 to 450C.
Finally bottles free from caustic moved to a compartment called final rinse compartment
where the bottles are again, water sprayed both inside and outside with soft water to
deliver clean and sanitary bottles to the conveyor enrooted to filler at ambient
temperature. Before the bottles moved through the conveyor, the bottles are subjected to
methylene blue test to ensure the bottles are free from mold and as also tests are carried
out to determine whether the bottles are free from caustic traces. These tests are done at
random, finally the inspection is been done.
Bottle Inspection:
The clean bottles undergo inspection after they leave the washer and before they
arrive at the filler. Inspection can be done visually by an individual. It is a job
requiring a great deal of concentration and no individual can be efficient for long
stretches at time. Provision should be made for changing inspectors frequently, and
adequate bring diffused light should be provided which illuminates all parts of
thebottle effectively, but does hot glare in the operators eyes.
A receptacle should be provided, convenient to the inspector for non-usable bottles,
and cases should be handy to accumulate unclean bottlers for rewashing. Those
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The bottles, on a suitable conveyor line arrive at the rotary filler, which is equipped with
filing heads. The beverages filling unit includes a filling tank, whichreceives beverage
from the carbonator. The tank is also connected to the gas chamber of the carbonator.
This connection insures balanced pressure and a proper beverage level in the tank.
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7. PLANT SANITATION
The most scrupulous sanitation practices are essential in soft drink plant. The highest
standard of cleanliness for premises, personnel and equipment is obviously necessary due
to the type of operation involved that of manufacturing a food product. Sanitation is
necessary to insure the keeping qualities, proper appearance and full flavor of any soft
drink. When the equipment becomes contaminated, yeast, bacteria or mold
microorganisms begin to appear in the finished beverage. Increased number of these
microorganisms will cause the development of undesirable tastes and odors and ultimate
spoilage of the product. Nothing will kill the demand for a beverage any quicker than offtastes and odors or product spoilage. Hence sanitation, good plant housekeeping and good
manufacturing practice are strictly implemented at N.B.P.L.
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PRODUCTION DEPARTMENT
Chart No. 2.3:Showing Hierarchy of the Production Department
GM
(PLANT)
SHOPPING
EXECUTIVE
STORE EXECUTIVE
MANAGER
PRODUCTION
QUALITY
CONTROL
EXECUTIVE
PRODUCTION
EXECUTIVE QUALITY
CONTROL
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CHEMIST
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1. STRUCTURE
Organization structure gives concrete shape to the organization. The structure
specifies division of work activities and shows how different function or activities are
linked. It also indicates the organizations hierarchy and authority structure, and
shows its reporting relationships. It provides the stability and continuity that allow the
organization to survive the comings and goings of individuals and to coordinate its
dealings with the environment.
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Plant
Manager
operation
Deputy general
manager(account
and finance
Manager (HRD)
Deputy
Manager
Manager accounts
Assistant manager
(excise tax)
Assistant
manager (acc
&finance
Executive
accounts
Senior
executive (HR
admin)
Executive (HR
admin)
HOS (Head of
sales)
Assistant
manager
Security officer
cum vigilance
officer
Security
Account
Assistants
Deputy
Manager
productions
Production
supervisor
Manager
(Shipping &
logistics)
Executive
(shipping)
Supervisor
Production
executives
Workers
Time office
Clerk
Maintainance
manager
Engineer
Executive
(Maintenance)
Staff, billing
clerks
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Worker
Unit
manager(sales
and marketing)
TDM,MDM
MEM(territory
development
manager
ADC(area
development
counsellor)
SCE (senior
customer
executives
Chief Manager
(quality control)
Deputy
manager(QC)
Customer
executive
Trainee
Assistant manager
(QC)
Executives
Staff chemistry
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3. STYLE:
Top down
At Nectar beverage, the style that is followed in the working of the organization is top
down. All the rules and regulation orders and decision are given by the top
management people namely board of directors, or the precedent which flows down to
the other members of the organization.
Line relationship:
The relationship existing between two managers due to delegation of authority and
responsibility and giving or receiving instructions or orders is called line relationship.
The line relationship generally exists between a superior & a subordinate. Line refers
to those positions of an organization which have responsibility, authority & are
accountable for accomplishment of primary objectives.
Managers identified as line are not subject to command by staff position. In case of
disagreement between line & staff, the line manager has the right to make final
operating decisions. Line authority represents uninterrupted series of authority &
responsibility delegating down the management hierarchy.
In other words the Board of Directors authority to the managing directors who inturn
delegates a part of his authority to the General Manager. The general manager in turn
delegates a part of his authority to different departmental heads & through them to the
supervisors. However the line managers are completely responsible & accountable for
the results achieved by the employees of the respective departments & sections.
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Price strategies
The price of all Pepsi products is fixed by its parent company, Pepsi India ltd. If any
changes in the price setting are required then NBPL can send a resolution to the parent
company. Sometime price can be fixed depending upon the competitor activity.
Basically Prices are fixed taking factors such as
Bottle charges
Tax rate
Transit cost to distributors.
AOP Strategy
Annual Operation planning is carried out every year where all the managers of various
franchisees meet at one place to decide on various aspects like pricing, Marketing
Promotions, Additional Coolers, and about the targets for the next year.
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Packaging changes have also affected sales and industry positioning, but in general, the
public has tended not to be affected by anew products. The primary competitor of the
Pepsi Company is Coco-Cola Company. Pepsi and Coca-Cola make up anywhere from
75% to90% of the market where they operate.
Advertising Sources
Different Media used for advertisement are
1. Press advertisement.
2. Television by parent company.
3. Glow Signs.
4. Sign Boards.
5. Wall paintings.
6. Dealer Boards.
7. Sponsoring of Tournaments.
8. Banners.
9. News papers and posters.
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Bar men Scheme: Under this scheme waiter in the bar have to collect 500 Pepsi
crowns for which a surprise gift is awarded to them. And if they collect 250
crowns a Pepsi T-Shirts is given to them.
Under the Crown Scheme: This is the Promotional scheme for the retailers where
they have to check out the numbers under the crown and the said numbers is
converted in to cash and is paid to them.
Eatery Scheme: It is a special scheme for all eating points such as bakeries, hotels,
convenience points, where the waiters have to promote and influence the
customers to buy only Pepsi products, this scheme is audited by the company
representatives by visiting these points as a customers and verifying the progress.
Road Shows: Various road shows are carried out the company representatives as
promotional activities.
National Scheme or Space Club Scheme: It is a special scheme for the retailers
where they have to display the Pepsi products in their outlet and attract more
customers. The scheme is audited by hired agencies and is awarded based on the
findings.
Benefit Scheme: It is a scheme where the retailer is given 1 or 2 cases for free for
purchase of more than 10 cases.
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6. STAFF:
The staff of McKinsey 7S framework includes the human resource management, rewards
and recognition.
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HR DEPARTMENT
2)
3)
PRODUCTION DEPARTMENT
4)
FINANCE DEPARTMENT
To implement provisions such as standing orders of the company factories act etc
to meet the statutory requirement.
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The plant manager and the HR Manager and other departmental heads discuss the
necessity of the job and take the decisions accordingly.
The HR Manager develops the job description and job specification
The next step is giving the advertisement for the requirement of the candidates for
required job.
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Mr. R. A. Baakale
3. Finance Department:
Mr. K. Chetan
4. Production Department:
Mr. M. A. Pritviraj
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CEO
01
H.O.D
27
Executives
34
Staff
51
Trainee
21
Workers
114
Append Trainee
Permanent
116
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PRODUCTION DEPARTMENT
Production is the process by which raw materials and other inputs are converted into
finished goods.
Chart no. 2.6:Hierarchy
In marketing department, there is a Unit Manager under him there are Head of Sales
Managers who assists Territory Development Managers (TDM) depending on their
location. The role of TDM is to oversee the proper flow of work and sales of his region.
Under TDM there is Area Developing Coordinators (ADC) who are assistingCustomer
Executive (CE). The number of CE given under a ADC differs from region to region
depending on the size of town and city, in big cities like Hubli, Belgaum some of the
ADC have 5-6 CEs, where as in the Haveri, Shimoga, Chickmangalur there may be 3-4
CEs. This CE assists Pre-Selling Executive (PSE) and Route Agent (RA). The work of
PSE is to bring the customers and create demand and to conveyance the customers to buy
the beverages. The route agents are responsible for the clients of PSE and to supply the
material, look after the stocks in stores, shops etc., RA and PSE have close link between
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Selling Process
NBPL follows 5 steps in selling their products:
Introduction.
To check the stock of the retailer.
To prepare an order.
Dealing with the customer.
Settling the deal
Price Setting
The price of all Pepsi products is fixed by its parent company, Pepsi India ltd. If any
changes in the price setting are required then NBPL can send a resolution to the parent
company. Sometime price can be fixed depending upon the competitor activity.
Basically Prices are fixed on considering few factors such as
Bottle charges
Tax rate
Transit cost to distributors.
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Advertising Sources
The present Punch line of Pepsi is "OH YES ABHI". Different Media used for
advertisements are;
1. Press advertisement.
2. Television by parent company.
3. Sign Boards.
4. Wall paintings.
5. Dealer Boards.
6. Sponsoring Tournaments.
7. Banners.
8. Newspapers and posters.
9. And many more
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Brand Ambassadors
Company has well reputed people as their brand ambassadors such as
Sports Celebrities
Film Celebrities
M.S. Dhoni
RanbirKapoor
Sachin Tendulkar
Priyanka Chopra
Mohammed Kaif
Sharukh Khan
Rahul Dravid
Katrina Kaif
SouravGanguly
Salman Khan
Zaheer Khan
Asin.
Promotional Schemes
NBPL to increase its sales has come out with various promotional schemes some of them
are:
Bar men Scheme: Under this scheme waiter in the bar have to collect 500 Pepsi crowns
for which a surprise gift is awarded to them. And if they collect 250 crowns a Pepsi TShirt is given to them.
Under the Crown Scheme: This is the Promotional scheme for the retailers where they
have to check out the numbers under the crown and the said numbers is converted into
cash and is paid to them.
Eatery Scheme: It is a special scheme for all eating points such as bakeries, hotels,
convenience points, where the waiters have to promote and influence the customers to
buy only Pepsi products, this scheme is audited by the company representatives by
visiting these points as a customer and verifying the progress.
Road Shows: Various road shows are carried out by the company representatives as
promotional activities.
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House Keeping
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7. SHARED VALUES:
The shared value of McKinseys 7S framework includes the guiding concepts. Values
and believes of the company. It also includes the long term vision of the company.
Values of the Company are:
Punctuality
Integrity
Honesty
Loyalty
Credibility
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SWOT ANALYSIS:
Strengths:
Pepsi have a broader product line and outstanding reputation.
Merger of Quaker Oats produced synergy across the board.
Record revenues and increasing market share.
Lack of capital constraints (availability of large free cash flow) Great brands,
strong distribution, innovative capabilities. Number one maker of snacks, such as
corn chips and potato chips.
PepsiCo sells three products through the same distribution channel.
For example, combining the production capabilities of Pepsi, Gatorade and
Tropicana is a big opportunity to reduce costs, improve efficiency and smooth out
the impact of seasonal fluctuations in demand for particular product.
Weaknesses:
Pepsi hard to inspire vision and direction for large global company.
Not all PepsiCo products bear the company name.
PepsiCo is far away from leader Coca-cola in the international market - demand
is highly elastic.
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Threats:
Beverage industry is mature.
Pepsi is blamed for pesticide residues in their products in one of their most
promising and emerging market .e.g. in India.
Over 50 percent of the company's sales come from Frito-Lay; this is an area if
the market takes a downturn.
The Biggest threat to Pepsi is from Non-Carbonated Soft drinks wherein they
should focus more.
PepsiCo now competes with Cadbury Schweppes, Coca-Cola, and Kraft foods
(Because of broader product line) which are well-run and financially sound
Competitors).
Size of company will demand a varied marketing program; Social, cultural,
Economic, political and governmental constrains.
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METHODOLODY:
The methodology includes personal interaction with finance manager of the organization.
The aim of methodology is to present clear picture of the procedure followed in this
study. It also gives detail idea of the firms procedure adopted in conducting the study.
Data collection method:
Primary Data
Secondary Data
Primary Data:
Information has gathered from discussions, observations &interactions with the
departmental managers.
Secondary Data:
These data collected from companys websites, annual reports, stores ledger and
journals.
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Manufacturer
Location
Sugar
Dudganga
Chikodi
Oriental Container
Murbad
Rajasthan
Nidia
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Tamatkar Travelers.
Mahalaxmi Travelers.
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Total number of
Total number of distributors- 142
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To know what are the fraction of production orders completed on time and in
full?
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2. PRODUCTION SCHEDULE
Production scheduling is the management and allocation of resources, events and
processes to create goods and services. A business adjusts its production schedule based
on the availability of resources, client orders and efficiencies. The goal of production
scheduling is to balance client needs with available resources while operating in the most
cost-efficient manner. The companys production schedule is:
February to May the company manufactures in 3 shifts.
June to January the company manufactures in only 1 shift.
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season.
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Nectar beverages company using Road mode for overall transportation. Because it is
situated in near NH4 (Belgaum and Pune National highway)
1.2. In-house or out-source in transportation:
Transportation can be performed in-house or out source. Nectar Beverages company
outsource its transportation.
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Supplier
Manufacturer
supplier
Supplier
TL is used in this stage because here the orders are in bulk quantity. It helps to reduce the
total cost of transportation and cost per unit.
Distributors
Manufacturer
Distributors
Distributors
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Distributors
Retailers
Retailers
Retailers
Retailers
LTL is used in this stage because here also order is in small quantity. So the distributor
consolidates some of retailers order, it makes quantity of goods is more and helps in
reducing total cost of transportation and cost per unit.
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Retailers
Distributors
Retailers
Hub
Supplier
Distributors
Supplier
Manufactures
Retailers
Distributors
Supplier
Hub
Retailers
Distributors
Retailers
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Number of Employees
Percentage
Responded
Yes
93
80%
No
23
20%
Graph No.3.1: Representation of supply chain management having all the address of the
developer branches of the company
20%
Yes
No
80%
Interpretation: From the above graph it is a clear evident that 80% of the supply chain
management having all the address of the developer branches of the company
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Number of Employees
Percentage
Responded
Outstanding
82
70%
Excellent
24
20%
Good
10
10%
Average
10%
Outstanding
20%
Excellent
Good
70%
Average
Interpretation:From the above analysis it is evident that 70% respondents rated the
working strategies of Supply Chain Management as Outstanding while the remaining
20% rated the strategies to be excellent and 10% rated the strategies to be good.
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b) No
Number of Employees
Percentage
Responded
Yes
116
100%
No
0%
Yes
No
Interpretation: From the above analysis it is clear evident that the supply chain
management department is having a sufficient transportation.
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Operational activities
Tactical activities
Table No. 3.4:Representing the needs of much attention and progress to boost the
production
Contents
No. of Employees
Percentage
Responded
Operational Activities
47
40%
Tactical Activities
47
40%
Current Programming
22
20%
Activities
Graph No.3.4:Representing the needs of much attention and progress to boost the
production
40%
Tactical activities
Current programming
strategies
Interpretation: From the above graph it is clear that 40% attention has given to
Operational Activities and another 40% has to concentrate to Tactical Activities and the
remaining 20% has concentrated on Current Programming Strategies.
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Choose the right option, where the supply chain department is facing problem in
taking care of the raw material?
During storage
Packaging
Testing of packaging
Table No. 3.5: Representation of various problems faced by supply chain management
department while taking care of raw materials
Contents
During Storage
Packaging
Testing of Packaging
Evaluation of Raw
materials
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Number of Employees
Responded
Percentage
52
38
13
45%
33%
11%
13
11%
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Chart Title
During storage
11%
11%
Packaging
45%
Testing of packaging
33%
Evaluation of defective
raw material
Interpretation: From the above graph, it can be interpreted that storage of the raw
materials is being high importance that is 45% respondents agree on this, 33% consider
packaging to be important factor, 11% consider Testing of packaging to be important
factor while 11% consider evaluation of defective raw material to be important factor of
consideration for various problems faced by supply chain management department while
taking care of raw materials.
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Excellent
Very effective
Good
Average
Percentage
Outstanding
47
40%
Excellent
47
40%
Good
22
20%
Average
Excellent
40%
Very effective
Good
40%
Average
Interpretation: From the above graph it is clear that the rating of delivery activities is
excellent and very effective as 80% respondents have rated for it, while another 20%
have rated it to be good.
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b) No
Table No.3.7: Representing supply chain department in which the production department
complained late delivery of raw materials
Number of Employees
Contents
Responded
Percentage
Yes
No
116
100%
40
20
0
0
Yes
No
Interpretation: From the above graph it is evident that no respondents have complained
about late delivery of the raw materials and hence satisfies about the delivery mechanism
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RECOMMENDATION
1. The Company has to use the GPS tracking system in order to track the movement
of goods in each of the vehicle so that the goods can be reached on time.
2. In case of any accidents or mishaps happens the company can get to know with
the help of the GPS tracker.
3. The Company faces a lot of problem particularly a breakage of bottles and thus
the spillover happens. The company being engaged into food and beverages
business as to maintain its quality to the best standards therefore it is
recommended to the company to change the material of bottle manufacturing and
at the same time bring them attractive shapes of bottles to increase the visibility.
In case of movement of the goods there are chances of breaking up of bottles
hence the company needs to maintain a proper packing system so that the goods
are reached safe.
4. The Company is engaged into business of beverages whose demand is fluctuating
throughout the year, hence the company needs to analysis the movement of the
goods based on season and keep a track on production planning and product sales
as a their demand is fluctuating
5. The company should concentrate on developing vendor base management system
or transportation based outsource activities
6. The company should develop vendor grievances cell so as to involve vendors in
effective lane handling distribution systems through their feedbacks, reciprocating
on it and implementing suggestions.
7. The company as to develop parallel crisis handling teams to take care of
contingencies during transportation mishaps.
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CONCLUSION
From the study it is found that the nectar Beverages Pvt. Ltd is one of the strongest
manufacturing vendor of Pepsi Inc and has develop effective supply chain management
systems over a period of time. The Company strives hard to deliver Right Goods at the
Right Place and at the Right time to the Right Customer, however the company has to
concentrate on developing vendor based management systems for transportation based
outsourcing activities and have parallel crisis handling teams to take care of the
contingencies.
The Company faces a lot of problem particularly a breakage of bottles and thus the
spillover happens. The company being engaged into food and beverages business as to
maintain its quality to the best standards therefore it is recommended to the company to
change the material of bottle manufacturing and at the same time bring them attractive
shapes of bottles to increase the visibility. In case of movement of the goods there are
chances of breaking up of bottles hence the company needs to maintain a proper packing
system so that the goods are reached safe.
The Company is engaged into business of beverages whose demand is fluctuating
throughout the year, hence the company needs to analysis the movement of the goods
based on season and keep a track on production planning and product sales as a their
demand is fluctuating
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BIBLIOGRAPHY
BOOKS
1) Philip Kotler, Keller, Koshy and Jha, Marketing Management, Pearson
Publications, 9th Edition
2) Naresh K. Malhotra, Satyabhushan Dash, Marketing Research: An Applied
Orientation, 6th Edition, Published by Dorling Kindersley (India) Pvt. Ltd
(licensees of Pearson Education), ISBN: 978813173181
WEBSITES
3) www.businessvibes.com/blog/report-global-beverage-market-outlook-2015
4) http://indiainbusiness.nic.in/newdesign/index.php?param=industryservices_landin
g/337/1
JOURNALS
5) Company Brochures, Pamphlets
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b) No
Q2: Rate the working strategies of supply chain management department on the basis of
the current programs?
Outstanding
Excellent
Good
Average
b) No
Q4: According to the current growth process of the organization, which of the following
needs much attention and progress to boost the production?
Operational activities
Tactical activities
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During storage
Packaging
Testing of packaging
Excellent
Very effective
Good
Average
Q7: Is there any case recorded by the supply chain department in which the production
department complained late delivery of raw materials?
a) Yes
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b) No
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