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 par ticular slogan
helped to win over the loyalists or addicts to Coca-Cola, who was in the state of “Cola Shock” or Cola Depression. Soon the Indian Soft drink industry started at a phenomenal rate, and all Parle Products Gold Spot, Limca and Thumps Up became the brand leader in their own segment. In spite of all these, the drink market still has large gap, as claim by soft drink manufacturers. To fill these gaps there are many soft drinks concentrate and squashes flooded the market. The Indian soft markets basically offered three flavours i.e. Orange, Lemon and Cola.
2.2-THE INDIAN SOFT DRINK HISTORY Gold Spot is considered as the first branded soft drink in India it was introduced by Parle in early forties. Coca-Cola was the foreign soft drink to be introduced in Indian markets. The Coca-Cola Company entered India in the early fifties, when four bottling plants were set up at Mumbai, Kolkota, Delhi, and Kanpur. Coca-Cola enjoyed a good beginning and dominated the market. Parle exports private limited, the major domestic player, and later in 1970 introduced “Limca” lemon soft drink. Before Limca‟s they had attentively introduced “cola Pepino” which was soon
withdrawn from the market following the confrontation with Coca- Cola. In July 1977 Coca-Cola left India following a public dispute over shareholding Structure and imports permits. Coca-Cola left a big gap, which was filled by several companies who came
7
forward pushing different brands in market. Parle Products introduced their Cola “Thumps Up”,
pure drinks introduced Double Seven” “Thrill”, “Rush”, “Sprint”. At the same time various regional soft brands played
an independent role in their respective territories like “Duke”, “mangola”. After coke was asked to leave India Pepsi began to lay plans to enter this huge market. Pepsi started its operations in April 1989 for beverages snack foods and export business. In 1990 first Pepsi Cola was produced in India. In the next year 1991, production of Mirinda and 7up started, the production of Slice Teem, Fountain Pepsi started in 1993. Coca-Cola came back again in India in October 1993 and was launched in Agra.It joined hands with Parle Exports Pvt. Ltd. To enter India and gradually took over the same company. The nineties also saw a new foreign entrant Cadbury Schweppes that rolled out Canada dry and Crush in metropolitan cities. Pepsi entered the cloudy lemon market category by launching its Mirinda lemon in 1998. In May 1999 a notification, presented the prevention of food adulteration (fourth amendment) Rules 1999, allowed the use of the artificial Sweeteners, aspartame and acesulfame potassium in The formulation of soft drinks-which was what made the entry of Diet Pepsi and Diet Coke. Coca-Cola also rolled out its popular clear lemon drink Sprite in India in the same year 1999. Soft drinks can trace their history back to the mineral water found in springs.Soft drinks can trace their history back to the mineral water found in natural springs. Bathing in natural springs has long been considered a healthy thing to do; and mineral water was said to have curative powers. Scientists soon discovered that gas carbonium or carbon dioxide was behind the bubbles in natural mineral water. The first marketed soft drinks (non-carbonated) appeared in the 17th century. They were made from water and lemon juice sweetened with honey. In 1676, the Compagnie de Limonadiers of Paris were granted a monopoly for the sale of lemonade soft drinks. Vendors would carry tanks of lemonade on their backs and dispensed cups of the soft drink to thirsty Parisians.
8
Joseph Priestley In 1767, the first drinkable man-made glass of carbonated water was created by Englishmen Doctor Joseph Priestley.Three years later, Swedish chemist Torbern Bergman invented a generating apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman's apparatus allowed imitation mineral water to be produced in large amounts.
John Mathews In 1810, the first United States patent was issued for the "means of mass manufacture of imitation mineral waters" to Simons and Rundell of Charleston, South Carolina. However, carbonated beverages did not achieve great popularity in America until 1832, when John Mathews invented his apparatus for the making carbonated water. John Mathews then massmanufactured his apparatus for sale to soda fountain owners.
Health Properties of Mineral Water The drinking of either natural or artificial mineral water was considered a healthy practice. The American pharmacists selling mineral waters began to add medicinal and flavorful herbs to unflavored mineral water. They used birch bark, dandelion, sarsaparilla, and fruit extracts. Some historians consider that the first flavored carbonated soft drink was that made in 1807 by Doctor Philip Syng Physick of Philadelphia. Early American pharmacies with soda fountains became a popular part of culture. The customers soon wanted to take their "health" drinks home with them and a soft drink bottling industry grew from consumer demand.
The Soft Drink Bottling Industry Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the carbonated drink bottle tops during the early days of the bottling industry. Carbonated drink bottles are under a lot of pressure from the gas. Inventors were trying to find the best way to prevent the carbon dioxide or bubbles from escaping. In 1892, the "Crown Cork Bottle Seal" was patented by William Painter,
9
a Baltimore machine shop operator. It was the first very successful method of keeping the bubbles in the bottle.
Automatic Production of Glass Bottles In 1899, the first patent was issued for a glass-blowing machine for the automatic production of glass bottles. Earlier glass bottles had all been hand-blown. Four years later, the new bottleblowing machine was in operation. It was first operated by the inventor, Michael Owens, an employee of Libby Glass Company. Within a few years, glass bottle production increased from 1,500 bottles a day to 57,000 bottles a day. Ninety years after the invention of what become one of the most favored drinks globally in 1988. Pepsi entered India flanged with heavy resources and riding the winds of change of a newly opened economy. First, Pepsi has only franchise unit. Pepsi gave his concentrate to small factory and they make beverage. In 1988, Pepsi set up its offices in India. In this company Pepsi operates as PEPSI Foods Pepsi Co. India Holdings and Pepsi India marketing.The mission was to change the tastes and life style of a common Indian, who identified soft drinks and beverages as a few available cold drinks, squashes and concentrates. When it came to a refreshing drink conservative consumers would back to traditional nimboo pani, jaljeeram lassi etc. Although India has a per capita consumption as low as 3 per person as compared to 400 in USm India has one of the largest number of potential consumers in a world with a population of an arab, Every Indian guzzles 27 bottles of soft drink every year, an increase of one bottle per capita consumption would mean stating 900 bottles extra. India soft drink is of worth RS. 1800 crores with annual growth at the rate of20% to 25%. All the activities of Pepsi Foods Pepsi Co, India Holdings and Pepsi India Marketing Company are controlled by business Unit (BU) located at GURGAON. This BU is divided into various marketing units (MU's). All except the North and Market Units have common borders with states comprising them. The market units demarcate the areas, which are "Coboised" i.e.Have Company owned bottling 10
operations(COBO). In these units there are company owned bottling plants while in other areas the operations are run by a franchisee these areas are referred to as Fanchisee Owned Bottling Operations (FOBO'S) and some and in some others Joint Venture operate.
COBO - In the COBO, the company has total control of the decisions and implementations undertaken, but for this the company has to invest its own money.
FOBO - The FOBO‟S are independent to take their own marketing and operational decisions with no major interference form the company.The FOBO's are supplied the concentrate from the company and they have to run the show, there after. Pepsi maintains ownership of the trademarks and is primarily responsible for ownership in a local bottling operation. This helps Pepsi maintain strong trademark on the other party's resource and expertise. The PCI workflow concentrates on Selling, Making and Delivering Pepsi- Cola.
11
2.3-COMPANY PROFILE LUMBINI.BEVERAGES, HAJIPUR
Lumbini.Beverage Pvt. Ltd,(Hajipur) a medium sector enterprise, located amidst beautiful surroundings, on the hajipur in the hajipur Industrial Area, and producing bottled soft drinks, viz. Pepsi, 7 Up, Mirinda, Teem, Mirinda Lemon, Mirinda Apple and Lehar Slice and had become a household word in the Bihar State symbolizing achievement and advancement over the years. lumbini Beverages was established in 1967 and production commenced in March 1969. At the very outset the company installed state the art machines and technology, for the production and bottling of soft drinks. The bottling plat with a capacity of produce bottle 220 per minute is totally automatic and also had a modern state of the art inter mix machine for binging forth the right blend of flavors. The company continuous to adopt and innovate technology in keeping with its policy of constant quality improvements. With the advent L B Food Limited for the production and sales of L B range of soft drinks for Bihar.
The company symbolizes self reliant in technology and ranked as the Best bottling company in the country in terms of Quality, Efficiency, Sale, Productivity and KRD. Till 1998, it was under the guidance of its Chairperson, Smt. Kusum Kamani and the able stewardship of its Managing Director, Shri. Nakul Kamani, the Co. has consistently bagged on numerous occasions, awards for Quality Assurance and Productivity, in 1993 it bagged top honors for being the best Quality conscious Plat amongst all Pepsi Bottling companies in India.
In March 1999, lumbini Beverages Ltd. was taken over by Mr. S. K. Jaipuria from Mr. N.D. Kamani, along with Rushabh Marketing Ltd., a marketing unit. Mr. S.K. Jaipuria started running this plant very successfully. He was very much enthusiastic to increase the production and sale and to capture the whole market of Bihar. He established another plant in the name of lumbini Beverages (Bihar) and increased the production from this new plant. The capacity of this new plant is 600 bottles per minute. Simultaneously, another marketing, company came up in the name of Hyderabad Marketing Company, Which is catering the need of whole of Bihar state. 12
The Company‟s highly sophisticated plant and quality control laboratory along with the dedication and enterprise of its employees is more than evenly matched by the management‟s
sense of understanding and compassion that has insured the company‟s progress with every passing day.
The company has a sale of more than 24 million bottles. It has maintained and nurtured a vast network of distribution for its product in Bihar and currently holds way over more than 50% of the states consumer soft drinks market with an estimated growth annual turnover of over Rs. 10 corers. The company is currently in pursuit of the coveted ISO 9002.
2.6-CHRONOLOGY OF ACHIEVEMENT
First plant to achieve 100% result on beverages product and got an award.
Its plant to pack large packs---500ML
Commissioning of kamani foods-1988
Started operating for Bottling Pepsi products as a Franchise operation under kusum kamani-1990
First plant to achieve 100% result on Pepsi norm and got an award-1991
Excellence in quality award-1992
IQA Bronze cash award-1993
IQA Bronze cash award-1994
In 2001 received IQA gold status.
In 2002 received IQA Bronze Award
In 2003 new pet plant capacity of 60 BPM commissioned.
In 2004 received IQA silver award.
Achieve „Best Plant Team‟ in 2004.
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ESTABLISHMENT L.B established its business operation in India in1989 and has grown to become one of the country‟s leading food and beverage company. One of the
largest multinational investors in the country, L.B has established a business which aims to serve the long term dynamic needs of consumers in India.
INVESTMENT Lumbini beverages and its partners have invested more than USD1 since the company was established in the country.
EMPLOYMENT Lumbini beverages pvt.ltd provides direct and indirect employment to 1500 people including supplier and distributor.
2.7-PRODUCT PROFILE PRODUCTS:
Following are main products of LB Pvt. Ltd.
Pepsi 14
Mirinda Orange
Mirinda Lemon
7 Up
Mountain Dew
Slice
Mirinda Sorbet (Limited Edition)
Pepsi Diet
Lehar Soda
Aquafina
Tropicana
Gatorade
Lehar Namkeen
Lays
Kurkure
Uncle Chips
Cheetos
CARBONATED SOFT DRINKS COLA PEPSI
The Joy of Pepsi.Contains: Carbonated water, high fructose corn syrup,caramelcolor,phosphoric acid, caffeine, citric acid and natural flavors.
Calories
100
Total Fats (g)
0
Sodium (mg)
25
Potassium (mg)
10
Total Carbohydrates (g)
27
Sugar (g)
0
Protein (g)
0 15
Caffeine (mg)
25
Diet Pepsi
0 carbs. 0 calorie. It‟s the diet cola. Contains: Carbonated water, caramel color, aspartame, phosphoric acid, potassium benzoate
(preserves freshness), caffeine, citric acid and natural flavors. Calories
0
Total Fats (g)
0
Sodium (mg)
25
Potassium (mg)
20
Total Carbohydrates (g)
0
Protein (g)
0
Sugar (g)
0
ORANGE Mirinda Orange
Savor Your Mirinda. Contains: Carbonated water, high fructose corn
syrup, citric acid, purity gum, potassium benzoate and potassium sorbate (preserves freshness), ester gum, natural flavor, yellow 6, ascorbic acid and calcium disodium EDTA (to protect flavor), sodium citrate.
Calories
120
Total Fats (g)
0
Sodium (mg)
25
Total Carbohydrates (g)
33
Protein (g)
0
Sugar (g)
32
Caffeine (mg)
24
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OTHERS Mountain Dew
Do the dew. The fastest-growing soft drink of the
decade,
Mountain
Dew
currently ranks as the nation's leading soft drink in retail outlets. Doing the "Dew" is like no other soft drink experience because of its daring, high-energy, high-intensity, active, extreme citrus taste.
Contains: Carbonated water, high fructose corn syrup, concentrated orange juice and other
natural flavors, citric acid, sodium benzoate (preserves freshness), caffeine, sodium citrate, gum arabic, yellow 5, erythorbic acid (preserves freshness), calcium disodium EDTA (to protect flavor) and brominated vegetable oil.
Calories
110
Total Fats (g)
0
Sodium (mg)
50
Potassium
0
Total Carbohydrates (g)
31
Protein (g)
31
Sugar (g)
0
Caffeine (mg)
36
CLEAR LEMON 7up
Cool 7up 17
Contains: Carbonated water, caramel color, aspartame, phosphoric acid, potassium benzoate
(preserves freshness), caffeine, citric acid and natural flavors
Calories
100
Total Fats (g)
0
Sodium (mg)
25
Potassium
20
Total Carbohydrates (g)
25
Protein (g)
31
Sugar (g)
0
Caffeine (mg)
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FRUIT JUICE
Slice
Pure Mango Pleasure Contains: Carbonated Water, High Fructose Corn Syrup, Mango Juice From Concentrate, Citric
Acid, Potassium Benzoate (Preserves Freshness), Modified Food Starch, Natural & Artificial Flavors, Potassium Sorbate (Preserves Freshness), Ascorbic Acid (Vitamin C),Yellow 6, Glycerol Ester of Wood Rosin, Calcium Disodium EDTA (To Protect Flavor), Sodium Citrate.
Calories
120
Total Fats (g)
0
Sodium (mg)
25
Potassium
35
Total Carbohydrates (g)
35
Protein (g)
35
Sugar (g)
0
Caffeine (mg)
0 18
PACKAGED DRINKING WATER Aquafina
Pure Water. Perfect Taste. Enjoy the crisp, refreshing taste of Aquafina 100% pure, non-carbonated, purified drinking water. The consistent purity and great taste of Aquafina are guaranteed by means of a state-ofthe-art purification process that includes reverse osmosis and carbon filtration. Since its debut in 1995, Aquafina has won over consumers with its great taste and purity.
Aquafina is the official bottled water of Major League Soccer and the PGA of America. Aquafina is distributed nationwide and can be enjoyed in 500 ml., 1-liter and 1.5-liter bottles. Aquafina. Purity Guaranteed.
Contains: Purified water
Calories
0
Total Fats (g)
0
Sodium (mg)
0
Potassium
0
Total Carbohydrates (g)
0
Protein (g)
0
Sugar (g)
0
Caffeine (mg)
0
19
.
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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.
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CHAPTER-3
22
ORGANIZATION CHART OF LUMBINI BEVERAGES. HAJIPUR
DIRECTOR (LB BEVERAGE)
Logistic Dept.
Plant Mgmt.
Logistic Manager
Staff
Personal Dept.
Purchase Dept.
Personal
Production Manger
Purchase Manager
Manager
Supervisors
Personal Officer
Staff
Staff
Lab
Security Dept.
Store
23
PMTMI Scooler Dept.
Finance Dept.
Equipment Manager
Finance Manager
Account Executive
Supervisors
Staff
Store
Accountant
CHAPTER-4
24
4.1-HUMAN RESOURCE MANAGEMENT PEOPLE :
ORGANISATION STURUCTURE
GENERAL MANAGER
HR MANAGER
ASSISTANT HR MANAGER
REGIONAL HR MANAGER
25
Human Resource Human Resource basically works for the welfare of the employees. It acts to organize the manpower and work to increase productivity of the employees. Basically Human Resource performs the functions of Recruitment, Hiring, Induction, Training and development, Performance appraisal of the employees. Human Resource studies and involves in inter life cycle of the employee from his joining the organization to till his end from the organization
POLICIES OF H.R DEPARTMENT The main policies of H.R department in L B is:
Peace among employees in the work place
Better co-ordination in the working environment
Motivational activities
Sense of belongingness
Recognition of work
Carrier & self development of employees & consultants
System and procedure of Recruitment a) Consultancy Services: For top level management, employees are recruited through private consultants. They are usually appointed as Departmental Managers. b) Walk-ins: This is the main source through which L B recruits its employees. People seeking job usually themselves approach the HR department for job vacancy. Employees usually selected from this source are appointed at the entry level as team members.
26
c) Employee Referrals:
This is the other main source through which employees are selected. Candidates who have given their previous employer as referrals are first interviewed and from their previous employer, opinion is taken about their behaviour and performance in the job. If they receive a positive opinion from their previous employer they are selected . d) Campus Recruitment:
Young people bring new ideas and fresh enthusiasm. Therefore L B visits some of the reputed educational institutions to hire some of the most talented and promising students as its employees. Selection Procedure The following is the selection procedure that the HR department practices to hire its employees. i) Interview: For entry level jobs, the candidates are interviewed by a HR person. They are asked a few basis questions about their education, previous work experience if any, languages known etc. This is done to evaluate the candidate‟s ability to communicate freely and also other
skills.
ii) Psychometric Tests: For higher and top level jobs, candidates are asked to answer a few questions which basically test their sharpness, analytical ability, ability to handle stress, presence of mind etc. This is done as Managers are required to work under stress all the time and still maintain a cool head to make some vital decisions. iii) Group Discussion: In campus recruitment students are involved in a Group Discussion, where they will be given a topic on which the group has to deliberate, discuss and arrive at a solution or a decision which
27
is accepted by the whole group.Along with the G D they are also given a written aptitude test. Finally a formal interview will be conducted to assess the overall skills of the student.
Induction New employees selected will be given a 13 day induction and training program. They will be given information about the company‟s business, different departments etc. They
will be informed of their roles, duties and responsibilities. They will also be informed abou t the HR policies and rules of the company. The new employees will be on probation for a period of 6 months. After this period the HR period along with the department manager will review the performance of the employee. If the employee‟s performance is good and encouraging, the employee‟s services will be
confirmed.
Compensation & Rewards The employees are rewarded suitably with attractive pay packages. The salary of an employee includes basic pay. HRA, special allowance, PF,ESI, Mediclaim etc.Annual bonus will be given at the time of Diwali. The employees and their dependents are also entitled for medical treatment in recognised hospitals with cashless hospitalisation with whom the company has tie-ups. If a hospital is not recognised, the amount spent by the employee will be reimbursed. Along with these all the employees are given a card known as „Employee Discount card‟ (EDC)
through which they can buy any product at L B at a special discount of 20-30 %.
Leaves and other rules An employee during his probationary period is entitled for 7 days of leave. A confirmed employee is entitled for 30 days of leave in a year. There is only one type of leave the employees can take which is known as All Purpose Leave (APL). 28
All the employees will be given identity cards which they have to wear and also swipe while at the time of entering and leaving the Store.
Performance Appraisal The HR department conducts performance appraisal of all the employees annually in the month of April. Based on their performance increments will be given in their pay. In addition to this if an employee achieves or exceeds the target given to along with their team members will be provided with attractive cash and other incentives.
Training & Development Future group has its own training division for all its employees, known as „Future Learning & Development Limited‟ (FLDL). All the employees are given training for 20 days in a year spread
over different periods. „Gurukool‟ which is a part of FLDL gives training to all the employees on various skills like
team work, dedication discipline improving customer service etc to make them more knowledgeable and productive.
PROBLEMS
1.Lack of trained people 2.Process of selection and recruitment is not good.
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4.2-MARKETING DEPARTMENT PEOPLE:
DIRECTOR (LUMBINI BEVERAGE)
PERSONAL DEPARTMENT
HEAD OF SALES
Finance Department
Marketing Development Manager
Shipping Department
Finance Manager
Account Executive
Supervisors
Staff
Marketing Officer
Merchandiser
Accountant
Territory Development Manger
Account Development coordinator
Sr. Customer Executive
Customer Executive
Salesman
Loaders
30
Marketing department is mainly concerned with promoting "TOM" i.e.” Top of the Mind
Awareness for Pepsi as it is a consumer oriented organization. It performs the following functions to build consumer and customer preference. Signage: This includes putting up of glow gings, banners, wall paintings, hoardings, kiosks etc. Promotions: This includes ad campaigns, sales promotions, new packages and brand launches.
Events this includes sponsoring events at national, state, district and city level e.g. sports tournaments, rock shows Musical Nights, Dance competitions, School and college annual festivals etc. All these activities are carried out by the unit office with the help of guidelines issued by the BU in the form of an annual marketing calendar and budget. Marketing department at the Unit Office is headed by a Marketing Manager and has three Marketing Executives. The marketing department co ordinates with the five sale division in UP-Lucknow, Kanpur, LUCKNOW, Gorakhpur and Bareilly to implements the various marketing programs
DISTRIBUTION STRATEGIES A Company can choose any of the following distribution types:
Exclusive Distribution
Selective Distribution
Intensive Distribution
“L.B” HAS ADOPTED THE INTENSIVE DISTRIBUTION STRATEGY.
INTENSIVE DISTRIBUTION A Strategy of intensive distribution is characterized by placing the goods or services in as many outlets as possible. When the consumer requires a great deal of location Convenience, it is important to offer greater intensity of Distribution. This strategy is generally used for convenience items such as Tobacco, gasoline, and soap, snack foods & bubblegum. Manufactures are constantly tempted to move from exclusive or selective distribution to more
31
SYSTEM OF LUMBINI BEVERAGES LTD.
LB’s Plant
Primary Sale
Distributor
Market / Retailers
Consumer At first soft drinks is supplied to distributors directly. Retailers cannot take the delivery directly from the company. They have to take it from their respective or nearest distributors. The distributors selected on the basis of assurance given by them regarding minimum sales, which they have mention annually. The selection is also done on the basis of the financial position and reputation of distributing in the market. As for the example, in appointing distributors first priority is given to those people who are in cigarette business.
Depending upon market each distributor in its initial stage deposit some security money. This 32
amount varies between five thousand and ten thousand. The distributor selects the retailers. There is no relation between the companies its retailers.
On the other hand there is no definite and fixed criteria for the selection for appointment of retailers from the side of distributors. Any one likes ”Panwala, Cigarette Shop” Or any other
shopkeeper can have the stall for the sale of soft drinks and they are called retailers or dealers. They have to give assurance to the concerning distributors for better sales and at the time of taking delivery they have to deposit the security that is the change for the empty bottle with specified purchasing price.
The distributors at first have to seek the permission of the sales department for the number of cases of soft drinks required by them. After getting for the proper authority from the sales department, they take the delivery from the shipping department paying the requisite either in cash or as demand draft.
Generally there is no compulsion on that part of distributors to provide the transportation facilities to their retailers. But the distributors of the big areas like Hajipur,patna, Bokaro and Ranchi etc. provide the transportation facilities to their respective retailers.
The distributors and retailers are independent to sell as they want but are controlled to some extent by the company also, as they have to give some assurance regarding minimum sales. It happens so because they are given some incentives also. They are fully independent to gear up the market, as they want. The company does the gearing job itself also and some times it advises them to the gearing up in a way, which is more profitable for all of them.
The distributors can be dropped if they fail to achieve the required target of sales. They can be also dropped when they don‟t follow the instruction given by the company or when they charge
high price or when they are engaged in black marketing, loading etc. But the company has not dropped any of its distributors till now.
The supply of soft drink, to the distributors depends upon the Ups and Downs in sales. But, in 33
the initial stages the distributors have to sell up to a minimum target set by the company or as decided by an agreement between the company and distributors. In the later stages soft drink is supplied as and when demanded by the distributors.
RETAIL CHANNEL
Convenience channel includes different kiosks are which is convenient to general public.
Grocery channel includes different grocery shops .
Eatery channel includes different hotels, restaurants etc.
34
FACILITIES PROVIDED BY THE COMPANY TO THE RETAILER VISI COOLER
65 Litre
110 Litre
120 Litre
165 Litre
200 Litre
210 Litre
220 Litre
300 Litre
320 Litre
330 Litre
500 Litre
SCHEMES OF VOLUME PURCHASE
Cash discount
Card discount (sampling)
DISPLAY MATERIAL
Stickers
Banners
G.S. Boards
D.P.S. Boards
Racks
Counters
35
PROMOTIONAL ACTIVITIES Sales promotion is a key ingredient in marketing campaigns, consists of a diverse collection of incentive tools, mostly short-term design to stimulate quicker and greater purchase of particular products of services by consumers.
To generate more sales as well as create and maintain its products, L B. Beverages carried out several promotional activities, which play greater and vital role in marketing.L B Beverages private limited carried out its promotional activity as a control and integrated program of communication and material design to present its product to the prospective customers. It also help in communicating the needs satisfying qualities of soft drinks to facilitates the sales and eventually to contribute towards the profit in long range. Several tools used by the L B Beverages Pvt. Ltd for fulfilling the various purposes of its promotional activities are:
Dealer Sales Scheme: In this contest at first each dealer is categorized by their respective distributors according to their past sales performance and then each distributor fixes a target to minimum sales of each category to, which dealer according to their category have to achieve during the contest period. The dealer achieving highest sale over and about the target set is given the award as announced by the company.
Rack Display Contest: “Dil se sajao milega more”
Pepsi selected a tactics for the outlets that are sure to increase the sales. In this scheme when the rack and Visi-cooler is fully displayed with purity that is visi-cooler with Pepsi product will score runs every month. Maximizing the runs ensures to get the best gift. Achieving all 500 runs for the quarters will get the man of the series and achieving a minimum of 300 runs for the quarters will get the man of the match gift.
36
Sales man Contest This scheme is undertaken to motivate the salesman. In this salesman are given the monetary incentives on the basis of sales made in their given route.
Money Back Scheme:
In this scheme the consumer during their consumption when open the bottle they get the coded amount of money, which is mentioned, in the inner side of the bottle cap.
Retailer Sales Scheme:
The most beneficial scheme for promoting the sales is the retailer sales scheme as implied by the LB Pvt. Ltd. According to this scheme the retailer who so ever he or she make a purchase of two pack of nine pet jars in each pack of two ltr that is eighteen pet, one pet free is supplied.
Visi-Cooler Plano Gram (P-O-G)
In this Scheme company PSR‟s or CE‟s arrange in sequence the visi-cooler in retailer shop and
tell all the Plano gram steps. Step 1: Empty the Cooler. Step 2: Clean the Cooler. Step 3: Clean the bottles with duster. Step 4: Place the Product in the Shelf first. Step 5: Keep a gap of 2 inches between shelf above bottles and repeat the Process. Step 6: Charge as per P-O-G
Then Company PSR and CE Visit three times in retailer shop, if Visi-cooler is pure then they give Cheque of Rs. 150/- and it is a gift of retailer. It is very beneficial in sales promotion.
37
First Ball ka Captain (Road Show) Company promotes the sales through the Road show with new concept “First Ball Ka Captain”
in 20-20 world cup through the Road show Company Executives Introduce to scheme.
POLICIES OF MARKETING DEPARTMENT To attract customer through their advertisement.
To make know about their business
To make heir about their products & goods
To make know about their offers
To make know about their different facilities
To provide customer satisfaction
To build customer relationship
“ Advertising is any paid form of the non -personal presentations & promotion of ideas, goods, or services by an identified sponsor.”
Advertising is what we perceive through one or more human senses. These are: The sense of sight
i.e. Magazines, Newspapers etc.
The sense of hearing
i.e. Radio etc.
The combination of two
i.e. Television, cinema etc.
FIVE Ms OF ADVERTISING In the process of development of any advertising program five major decisions must be taken into account, known as the FIVE Ms OF ADVERTISING. These are:
MISSION
: Identification of advertising objects.
MONEY
: Deciding the amount that can be spent.
MESSAGE
: What should be the message being sent
MEDIA
: What media should be used?
MEASUREMENT
: Method of evaluation of Result. 38
Apart from these five Ms, TIMING also has a crucial role to play. The various advertising modes can be enlisted as:
DIRECT ADVERTISING
Ad film, radio, newspaper, magazine.
Hording
Glow sign etc.
Sponsorship
INDIRECT ADVERTISING
Shop painting
Wall painting
Visi-cooler
Vehicle painting
YEAR WISE ADVERTISING STRATEGY OF PEPSI SINCE 1990 After entering in Indian market Pepsi started their advertising in planned way to fulfill the objectives expressed by Vibha Risi, executive Vice President, marketing Pepsi India Ltd. as “I believed in advertising that leaves a smile on your face”.
In 1991- The first commercial came on the screen with actress actress Juhi Chawla and
Pop
singer Remo. The theme was “Feel the music, Are you ready for the magic?” went the jingle and this ad ends with opening of Pepsi bottle.
In 1992- The famous and unforgettable punch line “Yeh hai right choice baby…Ahaa! was introduced with Remo and twelve years Penny Vaz.
In 1993- This time also Aamir Khan, Aishwarya Rai and Sanjana have done the commercial on the theme “Can I Have Another Pepsi”.
In 1994- Here Pepsi introduced cricket star Sachin Tendulkar, Vinod Kambli and Md. 39
Azharuddin in which Sachin and Kambli fights for Pepsi bottle and meanwhile Azhar comes out and take the bottle. This ad also ended with the same punch line “Yeh hai right choice baby…Ahaa!”
In 1995- In this commercial when Akshay Kumar is given another soft drink. Then the kid in the audience shouts “Hai Akshay Pepsi” and he gets back and he gets back with his magic and this ad also with the same punch line.
In 1996-Here the commercial shows the enthusiasm of Shahrukh Khan to get his Pepsi for his girl friend. He dodges the dog and with this tries he tries to show that Pepsi is the active choice to get, for which 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 1. Sales promotional activity is lacking as compared to other beverages in the market.
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4.3-FINANCE DEPARTMENT PEOPLE:
ORGANISZATION STRUCTURE
CENTRAL ZONE FINANCE MANAGER
NORTH ZONE FINANCE MANAGER
AREA HEAD CASHIER (FINANCE MANAGER)
ACCOUNTENT
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POLICIES OF FINANCIAL DEPARTMENT
Maintaining grooming standard
To speed up cashier efficiency
To provide customer service under cash stile‟s (cash coun ter‟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 Highlights Sales
48.55 Bil Revenue/Share
30.31
Income
6.18 Bil Earnings/Share
3.86
Net Profit Margin
12.81% Book Value/Share
Return on Equity
36.55% Dividend Rate
Debt/Equity Ratio
1.23 Payout Ratio
12.32 1.92 47.00%
Revenue - Quarterly Results (in Millions)
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
FY (11/10) FY (11/09) NA NA 14,801.0 10,592.0 NA 11,080.0 NA NA 14,801.0 21,672.0
FY (11/08) NA 10,945.0 11,244.0 NA 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. PROBLEMS 1.The auditing system of Lumbini beverages pvt. is not taking place timely. 2. More emphasis is given to the big dealers only
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4.5-PRODUCTION DEPARTMENT
PEOPLE VICE PRESIDENT PRODUCTION DEPARTMENT
GENERAL MANAGER
MANAGER PRODUCTION
EXECUTIVE PRODUCTION
OFFICER PRODUCTION
ASSISTANT PRODUCTION
TECHNICIAN 46
SYSTEM &PROCEDURE: Water Treatment Plant: Water in the L B is coming from Ganga. It is stored in a reservoir. Before ensuring production
this raw water is being treated in the water treatment plant. The process involved is known as coagulation process. Main chemicals used are Ferrous Sulphate (FeSo4), Calcium Hydroxide (CaOH), & Chlorine (Cl). Initially water is treated with all these chemicals in the treatment tank and becomes turbid. All impurities get settled at the base and remove the chlorine‟s are removed.
The water so obtained is completely free from any kind of impurities and can be used in further processing. The maximum alkalinity maintained until as much as 50 ppm.
Roll Conveyor This automatic operation machine takes the dirty empty bottles for washing. A person is required to put the empty bottles on the roller conveyor.
Bottle Washing Plant: Used bottles returning from the market are stealthy. It is complete an auto process which takes place within a machine called washer machine. The machine has three compartments. Bottles for washing are placed on the conveyor come inside the machine and get successive treatment. Bottles are treated with 2% caustic soda at a temperature of 120F, in the third compartment
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bottles are treated with soft water. Time duration in each compartment is 10 minutes. Bottles are then sent through the inspection centre, where these are watched against strong light.
Syrup Room:
Syrup room is situated on the first floor. Here syrup is prepared from filtered water, sugar and the concentration. The room is well equipped with several tanks and filter press. The first one is „heating tank‟ in which the syrup is actually prepared. Calculated amount of syrup along with
concentrate and water are being heated up to 85 degree C. Thus a saturated solution is being prepared. Next it is sent through a machine called “Filter Press”, syrup is filtered here. Filtered syrup is next passed through a Para flow cooler, when by recycling and glycol method, the temperature of the syrup is cooled down to 20-25 degree C cooled syrup is then stored in the syrup tanks. Syrup comes to the traumatic machine. Here syrup is mixed with carbonated water under pressure in definite proportion. Inspected bottles gradually come under the „filtration machine‟ Carbonated syrup by this time fills the filler machine. From this machine syrup is
poured into bottles in calculated amount. The exact rate of filling is 620 bottles per minute.
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Meanwhile, crowner machine helps in closing the bottle mouth with helps of the caps completely air tight. Ready bottles are again sent through an inspection centre for thorough examination on conveyer. Next they were carried on a round table from where they are collected.
Liquid Filling
Bottling&Crowning
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The filled bottles are crowned with metallic caps to protect the purity of content. Then the bottles are given the batch no., year, etc. with the help of laser machine.Thus the whole process from washing to crowning is automatic. The filled bottles are lifted manually from conveyor and placed in crates. The bottling of beverages is carried out at a rate of 240 bottles/min.The new bottling unit has been established in order to pace the bottling process in the month of February. After establishing the now production unit the rate per minute raised to 600. Before it was 440 bottles per minute
Final Check
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POLICY
To produce beverages maintaining desired quality of products and services.
To attain market leadership and achieve consumer and stakeholders delight.
To achieve continual improvement of the QMS through effective cost reduction measures and reviewing KPI‟s.
FOOD SAFETY POLICY
We at L B Pvt. Ltd. Hajipur commit ourselves to :
Produce safe and hygienic beverage products under clean condition.
Comply with all applicable legal and requirements related to food safety.
Ensure through periodic verification, the effective implementation and continual improvement of the food safety management system
Educate and motivate all employees to contribute towards effective implementation of Food Safety Management System.
Review Food Safety Policy during management reviews.
PROBLEMS 1.Produce safe and hygienic beverage products under clean condition some times not occurred. 2.In case of deviation take corrective action, which include disposition ,recall of defectives and elimination of root causes. 3.Lack of fresh and purified water.
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CHAPTER-5
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5.1-SWOT ANALYSIS STRENGTH
L B has a broader production line and outstanding reputation
Great brands, strong distribution, innovative capabilities
The market position of the L B is very strong in area allotted to near about 75% softdrinks and beverages sold belongs to others.
We get to know our customers, one by one. Our direct sales force maintains a relationship with our customers.
WEAKNESS
Sales promotional activity is lacking as compared to others in the market.
More emphasis is given to the big dealers only.
Schemes and other sales promotional item are not reaching to the small outlets.
Glow shine board, stand, umbrella and other sales promotional items have not reached the market for a long time.
OPPORTUNITIES
There is a huge potential in HAJIPUR and its surroundings rural area for tapping up this, promotional camps schemes and other promotional activities must be carried out.
It should give more incentives to the dealers in the rural areas, where there is a huge market potential.
Many shops and outlet holder do not keep LB product only due to the commitment those companies have made during the peak season but it did not fulfilled thereafter so it is necessary to pay attention towards this.
THREATS:
Other beverage like Thumbs-Up has the biggest share in cola flavor where as 7up is facing stiff competition from its counterpart Sprite of the Coca -Cola.
Cola‟s beverages and its expenditure on sales promotional activity and advertisement is far ahead than the LB..
One of the biggest threat to the LUMBINI BEVERAGES is that distribution channel in the rural area is not up to the mark. 53
5.2-VISION AND MISSION OF THE COMPANY VISION
"To be the best beverages production company in the eyes of our suppliers, consumers, employees and shareholders.
"To become truly successful company, by continuing to build a competitive and profitable world wide refreshment beverage business."
The challenge of the LB will be the test of the Best
The best in connecting with the customer , the consumer, the best in marketing, the best in selling, the best in quality, the best in processes and the best in people and teamwork.
Mission Aspire to make LB the best beverages Productional Company, focused on convenient foods and beverages. Seek to produce healthy financial rewards to investors as provide opportunities for growth and enrichment to employees, business partners and the communities in which we operate. And in everything do, L B strive to act with honesty, openness,fairness&integrity. The behaviors that will help us achieve our mission are articulated in our Values Statement.
People Leadership Refers to talented people who perform excellently by internalizing and practicing innovations.
Corporate Culture Though a company implements perfect management strategies and boasts of outstanding and talented people, it should have an appropriate corporate culture to unleash the power of these capabilities.
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No 'No'- Challenge We foster a corporate culture whereby we suggest an alternative before saying "no" and aggressively work towards fulfilling our goal.
'We' not 'I' We pursue a corporate culture whereby we embrace a strong teamwork.
Fun to work We create a workplace where individuals' creativity and freedom are respected and working is made fun.
OBJECTIVES PRIMARY OBJECTIVE:
“To know the market share of L B and Pepsico through comparative analysis”.
SECONDARY OBJECTIVE:
To determine the visibility of the LB on the Dealer outlets
To know the percentage share of L B cooling equipments.
To find out the sales level of L B in comparison to the others
To find out the dealers‟ perception about the L B products.
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CHAPTER-6
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6.1-FINDINGS The collected data which were analyzed came out with the following conclusions: The
numbers of Lumbini beverages exclusive outlets is less than the numbers of
competitor‟s outlets at hajipur and surrounded areas. In
the area like hajipur, lumbini beverages products distribution is more uniform than
that of its competitor It
was also observed that Cola‟s product has paid much attention in proving visi
coolers in last couple of years and penetrating the market with infrastructure for cooling where still L B visi are available and also stores which do not got visi” from Pepsico. Some
of the dealers want glow sign and chilling equipments, which they are asking
from long time. Most
of the consumer preferred taste of lumbini beverages after it was made little
strong. Retailers Some
whose sales of L B products are more asking for the special incentives.
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 bab y 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.
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6.2-SUGGESTIONS
Lumbini beverages should come out with such an advertisement, which can block the customers mind and can change the customer‟s perception about the product.
More improvement is required in the distribution network , because in the peak seasons like summer the small dealers are taking goods twice or thrice and in between if the distributors could not supply them, the competitors will get the opportunities to supply the goods.
Few areas in hajipur such as patna, Garamnala etc. company should take special care of their dealers as because they are highly dissatisfied with the companies behavior, they have a lot of complains towards the company.
Salesman should have good interaction with the dealers, which result Company in increase in sales.
In most of the areas executives are not getting properly interacted with retailers and as a result most of the distributors hide the schemes issued by the company from them which may affect the sale volume. So company executives should visit the counter on weekly basis.
The entire lumbini beverages product should be display at one place so that the customers can aware about the different brand of lumbini beverages. Such as displaying products in front of shop etc.
Company must provide sufficient amount of chilling equipments, sign board and display racks in the market in order to satisfy the dealers.
Regular visit of technician is required to solve the problems of visi cooler in the market at the right time.
Coca cola is putting much effort to capture the market share of cold drinks and beverages by fulfilling most of the demands of dealers, and providing visi‟s. So company must take
care of these.
L B distributor can convince the retailer for entering into agreement for exclusive outlet with some extra benefit.
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CONCLUSION: LUMBINI BEVERAGES PVT LTD”, is a soft drinks manufacturing Company, producing
world class soft drinks for buyers of India. They are engaged in the production of PEPSI products. For years LUMBINI BEVERAGES PVT LTD has worked in active collaboration with PEPSI to provide the best soft drinks to its customers.
Company‟s strength lies in well built inventory and well trained human resource; with the help
of this the company fulfills the requirements of the buyers by providing right quality of products at right time and right place.
The company is successfully carrying out its operations and has occupied a strong position in the minds of the customers.
From this study it can be concluded that the company has grown considerably and cemented its position as a trusted and preferred vendor to PEPSI.
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