Coca Cola

PREFACE

This report of Coca-Cola International MAKK Beverages and mineral water

(Pvt.) Ltd. is written as a partial fulfillment of requirement for the award of degree

of business administration. In this organization, I worked as an internee for eight

weeks and observed the major activities of the organization in the form of

marketing deptt, production deptt, shipping deptt, accounts deptt. And general

administration. Here, I got the experience of on hand knowledge and situations

not present in curriculum books.

I thank almighty Allah for his mercy and love who enabled me to go through this

tedious job.

I would also thank my parents especially my mother whose love for knowledge

and education acted as a guiding force for me in all of my endeavors.

Mr. Aurangzeb Khan, Factory Manager of MAKK Beverages (Pvt.) Ltd proved to

be a great help for me in arrangement of my internship and writing of this report.

All his associates namely,

Mr. M. Zaman Khan, Production ManagerMr. Jehangir Khan, Marketing ManagerMr. Keramat Ghauri, Chief AccountantMr. Hamayun Khan, Sales Manager (Base)Mr. Mian Zahoor Ahmed Sales Manager (O/S)Mr. Umara Khan (Distributor) andMr. Rahim Khan (Quality Control Manager) deserve my heartiest thanks as they

helped me a lot in understanding the working of a manufacturing company.

Last but not the least I would thank my kind teachers Miss Durr-e-Nayab who

guided me in each matter regarding the compilation of this report.

Ehsan Ullah Safi

LIST OF CONTENTS

S. No. Topic Page #Preface iList of Table iiList of Chart iiiExecutive Summary iv

Chapter – 1INTRODUCTION OF THE REPORT

1.1 Background of Study 11.2 Purpose of the Study 21.3 Scope of the Study 21.4 Methodology of the Report 21.5 Scheme of the Report 3

Chapter – 2INTRODUCTION OF THE COCA-COLA

INTERNATIONAL2.1 Brief History 42.2 Events in Chronological Order 42.3 Coca-Cola Word Wide 52.4 Coca-Cola in Pakistan 52.5 History of Coca-Cola Promotional Campaign 62.6 Coca-Cola Mission 92.7 Profile 102.8 Bottling System 11

Chapter – 3MARKETING REVIEW

3.1 Product 123.2 Sales Promotion 163.3 Consumer Sales Promotion 163.4 Reseller (Trade) Sales Promotion 193.5 Pricing and Pricing Strategy 213.6 Pricing Objective 213.7 Distribution Channels 233.8 The Role of Middle Man 253.9 The Coca-Cola Realm 263.10 Organization Chart of Coca-Cola 293.11 Equal Employment Opportunity 323.12 Coca-Cola Wonder of the World Scheme 323.13 Environmental Policy for Cold Drink Equipment 333.14 Environmental Training 34

Chapter – 4

THE PRODUCTION AND ACCOUNTING

DEPARTMENT

4.1 Manufacturing Process 364.2 Accounting Department 38

Chapter – 5

CRITICAL ANALYSIS

5.1 Strength 425.2 Weaknesses 445.3 Opportunities 465.4 Threats 485.5 General Analysis 50

Chapter – 6

CONCLUSION AND RECOMMENDATION

6.1 Conclusion 526.2 Recommendation 53

Chapter – 7

ACTION/IMPLEMENTATION PLAN

7.1 Staff Oriented Measures 57Questionnaire 62List of Personnel Interview 66Bibliography 67Internet Sources 68

LIST OF TABLE

S. No. Topic Page #

1. The Role or Middle Man 25

LIST OF CHART

S. No. Topic Page #

1. Organization Chart of Coca-Cola 29

EXECUTIVE SUMMARY

Coca-Cola is the world leading and the largest beverages company with its Head

quarter based in Atlanta Georgia USA.

Coca-Cola has a very rich history. Having first introduced by Dr. John Stitch

Pemberton 1886 in Atlanta for local consumers only Coca-Cola today have

millions of the consumers worldwide.

Coca-Cola today is providing their services in almost every part of the world

where its production plants meetings the growing demand of the consumers.

In Pakistan Coca-Cola have ten production plants with its Head quarter based in

Lahore, which is also responsible for the promotional campaign countrywide.

Out of these eight branches are franchise to Oligin groups and two of them

(Peshawar, Rawalpindi) to Muhammad Aslma Khan Khattak (MAKK). The

Peshawar branch located on Charsaddah Road and is the only plant in N.W.F.P.

As the focus of the report is on sales and marketing review of Coca-Cola

generally in Pakistan and particularly in N.W.F.P.

The marketing activities of any company is revolve around the marketing mix

(Product, Price, Place, Promotion).

Coca-Cola is available in the market in 250 ml, 1000 ml, 1500 ml an d250 ml

disposable bottle for different market segment in order to satisfy their need more

effectively and efficiently.

Internship Report On Coca-Cola MAKK Beverages (Pvt) Ltd.

CHAPTER - 1

INTRODUCTION OF REPORT

An internship program is a two months practical training for the students of MBA

in a well-established organization.

Following are the importance of the internship.

- An internship program provides an opportunity for the student to observe

and to watch closely that how organization operational and other activities

(Marketing, finance, production etc.) take place. Thus, the students are

exposed to the practical aspects of business and management.

- An internship program also provides an opportunity for the students to

work in a real life situation and apply the management knowledge

practically which they learn from books.

- Through internship program the students can improve their personnel

skills (Human relation, working with people and intervening etc.) and

analytical skills (marketing analysis, financial analysis etc.)

After the completion of internship the students are liable to prepare a

report on internship program. This practice improves the report writing skills of

the students.

1.1 Background of Study

The focus of this report is on marketing of Coca-Cola (MAKK Beverages) and

Mineral Water Pvt. Ltd.). The Coca-Cola is one of the foremost soft drink in our

country Pakistan and have merit production through out the world. Coca-Cola

Company is a multinational company and has got a very bright history. Since

1886 the company has working to refresh people every where through its

beverages. In the year 1902 Coca-Cola firm advertised its product for the first

time. Coca-Cola company has around nine franchised manufacturing facilities in

different cities of Pakistan namely, Lahore, Karachi, Faisalabad, Haiderabad and

in Peshawar MAKK beverages.

Institute of Management Studies 1


The Coca-Cola system has more than 16 million customer around the world that

sell or serve its product directly to consumer and there are nearly six billion

people in the world who are potential consumer of Coca-Cola company product.

The Coke’s success in achieve when it place right product in the right market at

the right time.

1.2 Purpose of the Study

The study was conducted to check the marketing activities of Coca-Cola in

Peshawar Market. Market is the place where all other soft drink are available at

the same price or below. Its difficult to read the attitude of the people towards

company layout. Prevailing this it is necessary to judge the acceptance of the

people in relation with product and its availability in the market. Another aspect

was to see the competitor, strategies regarding same soft drink. Their scheme and

method of compaign representing their sales and promotion. In the regime of

company the sale of Pepsi was increased and Coke was found modest in market.

This dilemna was also a part of analysis between two major soft drink competitor.

So this reports aims to illustrate the working of Coca-Cola and analyze it from

observation and comparing it to ideal practice as found in the text book.

1.3 Scope of the Study

The main focus of my study is to describe the working procedure of different

departments of MAKK beverages. Especially the marketing department In other

words the study will cover the products that are produced and four element of the

marketing mix 4ps. Product, price, promotion, placement.

1.4 Methodology of the Report

The report is based on my eight weeks internship in the company manufacturer of

Coca-Cola and other beverages. The source of the data used for writing report

includes primary data.



Primary Data

Interview of top management

Interview of the company distributors

Personal observation of the company operation

Questionnaire

And use of secondary data sources of information.

Secondary Data

Internet

Journal

Magazines

Newspaper

Books

1.5 Scheme of the Report

This internship report consists of four sections and eight chapters.

Chapter 1 is about the report, i.e. the purpose, scope, methodology and scheme of

the report.

Chapter 2 is about the introduction of the parent company i.e. Coca-Cola

international.

Chapter 3 is about the Marketing review of the company i.e. MAKK Beverages,

Pvt. Ltd.

Chapter 4 is about the production and the Accounting Department of MAKK

Beverages Pvt. Ltd.

Chapter 5 Critical Analysis of MAKK Beverages.

Chapter 6 Conclusion and Recommendations of MAKK Beverages Pvt. Ltd.

Chapter 7 The Action/Implementation Plan.

Questionnaire are given in chapter 7.



CHAPTER – 2

INTRODUCTION OF COCA-COLA

INTERNATIONAL

2.1 Brief History

The Coca-Cola Company is a multinational company. The Coca-Cola company is

rich with history since 1886. The Coca-Cola Company has been working to

refresh people every where through their beverages.

2.2 Events in Chronological Order in 1886

Dr. Jhan Stith Pemberten first introduced Coca-Cola in Atlanta, Georgia. The

Pharmacist prepared a caramel-colored syrup in a three Iegged bross kettle in his

backyard. He first distribute Coca-Cola by carrying it in a Jug down the street to

Jacobs Parmacy for five cents. Consumer can enjoy a glass of Coca-Cola at the

Soda fountain. This year sales of Coca-Cola average nine drinks per day per

customer.

In 1891, Atlanta enterpreneur Asa G. Candler acquires complete ownership of the

Coca-Cola business for $2300 with in four years his merchandising flair helps

expand consumption of Coca-Cola to every part of the nation (USA).

In 1893, the trade mark “Cola-Cola” name and Script are registered with the US

patent and trade mark office. Dr. Pemberton partner and book keeper frank

Robinson suggested the name and penned Coca-Cola in the unique flowing script

that is famous today. Mr. Robinson thought the two C’s would look well in

Advertising.

In 1894: Coca-Cola began as a fountain product but candy merchant Joseph A.

Biedenharn of Mississippi was looking for a way to serve this refreshing beverage

at Picnics. He begins offering bottled Coca-Cola using syrup shipped from

Atlanta during this especially busy summer. Coke’s rapid world wide expansion



has resulted in over 65 beverage trade marks world wide and sales in 155

countries.

Its operation were divide into three different product categories. Soft drink,

entertainment and food.

2.3 Coca-Cola World wide

Coca-Cola system has more than 16 million customer around the world that sell

or serve its product directly to consumer and there are nearly six billion people in

the world who are potential consumer of Coca-Cola Company product. The

Coke’s success is achieve when it place right product in the right market at the

right time.

In case of India Coca-Cola first negotiated a contingent joint venture arrangement

with two Indian entities. Which it felt could case the negotiation process. Join

venture is a means of engaging in international business in which a company

share management with one or more collaborating foreign firms. It is a form of

merger or partnership of two or more participant companies which have joined

forces for marketing; finance or managerial reason or to protect it self from host

countries environment.

The top management of Coca-Cola international planned to derive much profit

from the foreign market in the coming year.

Cola-Cola Pakistan was a part of the West Asian area of Coca-Cola international

the west Asian area comprised four countries.

1. Pakistan

2. Bangladesh

3. Sri Lanka

4. Afghanistan

2.4 Coca-Cola in Pakistan

The Coca-Cola Company has around nine franchised manufacturing in different

cities of Pakistan. Namely Lahore, Karachi, Faisalabad, Haiderabad, Rahimyar

Khan, Gujranwala and Sialkot, Rawalpindi and Peshawar.



The Coca-Cola head office is in Lahore. It is the main branch of Coca-Cola

company. In N.W.F.P. the Coca-Cola company MAKK beverages Pvt. Ltd. is

situated at Charsadda Road near in Peshawar.

The MAKK (Muhammad Aslam Khan Khattak) is responsible for the production

and distribution of Coca-Cola product: its has its own sales depot. Where they

store their product of Coca-Cola, Fanta and Sprite which is then provided to

shopkeepers and whole seller. The Coca-Cola company has its own well

developed transportation system.

For advertisement MAKK gets help from the Expert corporation on national basis

while the advertisement on local basis is done by MAKK beverages itself.

For production it has its own plant. The staff provided for production are well

qualified and experts in their own field. For the preparation of Co2 gas it has its

own plant. This plant fulfills all requirement of the company it sold out side the

market and thus the company gets some revenue by this means. The crown corks

are prepared in its own plant. But the raw material are imported from Japan.

It has it own well develop packing system where the product are packed and

distribute through out N.W.F.P.

In initial stage when Coke started its operation it had no competitor. But now it

has a very tough competition with its competitors Pepsi. But the question here

arise why Coca-Cola has lost it market share as compared with that Pepsi?

The main reason for that is the lack of mass advertisements. Because through

advertising one can gain market share through consumer awareness. Coca Cola

had always relied on the Secret formula for its promotion and feared an

expropriation once the new trade mark become accepted.

2.5 History of Coca-Cola’s Promotional Campaigns

In the year 1902, Coca-Cola firm advertised its products in “Minseys”. In 1904 it

hired Massengale Agency to create its image and to convince people to buy its

product. This advertising agency worked for news papers and magazines, but in

terms of media, it concentrated more on street cars and bill boards. There was one

major problem with this type of advertising, the slogan were very long. In order to



solve this problem, Coca-Cola hired W.C.D. Arcy Agency. Both the agencies

worked together to produce effective advertisements.

In 1908, D. Arcy and fellow salesman Sam Dobb’s made the world largest 32 feet

high out –door sign. This billboard was erected on the main line of Pennsylvania

Railroad between Philadelphia and New York. By that time Coca-Cola was

spending $761,981.35 on advertising. Meanwhile PEPSI had started to promote

its product.

Coca-Cola faced a problem as people started calling it “Coke”. The company did

not want their product to link with the drug Cocaine, which had the same

nickname “Coke”. Therefore, they concentrated their efforts to promote their

product as Coca-Cola and not as Coke. During the world War-I the overall sales

of Beverages industry declined. At the end of the war, Coca-Cola adopted a new

marketing strategy by targeting young people in their promotions; and erected

billboards on the most heavily traveled highways. Meanwhile PEPSI was trying to

overcome its losses. The company was brought by a Wall Street man named Roy

Megorgel. He acquired the service of Edward Guth, a business man who owned a

chain of candy stores throughout the country.

He replaced Coca-Cola with PEPSI, in his stores but in vain. They move failed to

increase its sale. As a result, both conducted a successful experiment. He

introduced a ten-ounce bottle. With the advancement of technology, the Coca-

Cola company used different mediums to promote its products.

Coca-Coal used movie stars in its advertisements. By the late thirties, Coca-Cola

was spending 55 million dollars on all types of advertisements annually. The

strong marketing strategy of Coca-Cola enabled it to hold the market. Even during

the World War-II, Coca-Cola president matched every person to get a Coca-Cola

bottle and he succeeded in it. Thus the Coca-Cola followed the troops and by the

end of the war, it had a network of products plants established in most parts of the

world. Moreover, Coca-Cola decided to use coke as the brand named a sit was

more popular among the people by this name. The war resulted in inflation, and

there was shortage of sugar which resulted in sugar rationing. This enabled PEPSI



Co. to offer their beverages at a lower prices. As a result of low prices PEPSI

image was adversely affected, and it lost many customers. At this moment, PEPSI

took a tough task to improve its image. So during 1950’s PEPSI, launched a new

advertising campaign.

They showed that PEPSI is a brand of the young generation. Moreover, they

offered a 26 ounce bottle. In order to compete with PEPSI, Coca-Cola produced

ads showing young people using its product in prestigious locations, with style. In

short, they glamorized their product. They also replaced the painting of their

advertisements with colored photographs.

In 1955 the Company hired a more efficient and prestigious advertising agency-

McCann Erickson. They presented the Coca-Cola bottles with colored paintings

of different food items. This produced a very attractive and appealing image of

the products. This cost US $250,000.

In 1960’s the “Taste Wars” began. A “blind test” was conduced which proved that

people preferred PEPSI over Coke, because they liked its taste. During 1980’s

television emerged as a primary medium for advertisements. Coca-Cola started

celebrity advertising, for example they depicted Michael Jachson, Fred Savage,

Ray chasles, Madonna etc: their primary objective was to promote Coca-Cola,

through entertainment. The slogan of Coca-Cola was “Coke is it” and that of

PEPSI was “The choice of the new generation”.

In 1985, Coca-Cola revealed that it was changing the formula of Coca-Cola. It

was considered to the company’s worst marketing blunder. They failed to realize

the historical significant of their product. PEPSI made full use of the situation and

claimed that Coca-Cola is accepting defeat in the Cola Wars. Coca-Cola sales

started to decline. In order to handle the situation, the Coca-Cola Company

announced that “old coke” Coca Cola classic, will also be available in the market

along with the new Coke. The reason of changing the formula was that the result

of blind testing research performed by the Coca-Cola Company showed, that

Pepsi’s taste was preferred over coke’s.



By 1989 Coca-Cola spending more than $140 millions, and PEPSI was spending

more than $151 millions on advertising. By 1990, Coca-Cola expanded

throughout the world and 60 percent of its 8.6 billion in soda sales took place in

170 countries outside the U.S.A. But Coca-Cola in the past few months had lost

market share in Russian and Venezuela. In U.S.A., Coca-Cola, according to

Maxwell Consumer’s Report has a market share lead of 42 percent to 31 percent

over Pepsi.

2.6 The Coca-Cola Mission

From its heritage to its mission to the people who bring Coca-Cola products to

thirsty consumers, the Coca-Cola company is a part of lives every where.

Coca-Cola’s mission is to maximize stake-holder value over time, and in order to

achieve this mission it creates value for all the constituents it serves, including its

consumers, customers, bottles and communities. The Coca-Cola company creates

value by executing a comprehensive business strategy guided by six key beliefs.

i. Consumer demand drives every thing it does.

ii. Brand Coca-Cola is the core of its business.

iii. It will strive to provide consumers a broad selection of non-alcoholic,

ready-to-drink beverages they want to drink, throughout the day.

iv. Coca-Cola will be the best marketers in the world.

v. Coca-Cola thinks and acts locally.

vi. Coca-Cola will lead as a model corporate citizen.

The ultimate of objectives of its business strategy are to increase volume, expand

its market-share world-wide ready-to-drink beverages sales, maximize a long term

cash flow, and create economic-value-added by improving economic profit.

The Coca-Cola system has more than 16 million customers around the world that

sell or serve its products directly to consumers. Its keen focus on enhancing value

for these customers and helping them grow their beverages business. It strives to

understand each customer’s business and needs, whether that customers is a

sophisticated retailer in a developed market or a kiosk owner in an emerging

market.



There are nearly six billion people in the world who are potential consumers of

Coca-Cola Company products.

Ultimately, Coke’s success in achieving its mission depends on its ability to

satisfy more of their consumers, demands for beverages. Coke’s Company

achieve this when it place the right product in the right markets at the right time.

2.7 Profile

Coca-Cola Company is the world’s leading manufacturer, marketer, and

distributor of non alcoholic beverage concentrates and syrups, with world Head

Quarters in Altanta. Georgia. The Company and its subsidiaries employ nearly

31,000 people around the world, for preparation of syrups, concentrates and

beverage bases for Coca-Cola, the company’s flagship brand, and over 230 other

companies soft drink brands are manufactured and sold by the Coca-Cola

company and its subsidiaries in nearly 200 countries around the world. But

entering into contract with the Coca-Cola parent Company or its local

subsidiaries, local businesses are authorized to bottle and sell company’s products

within certain territorial boundaries, and under conditions that ensure the highest

standards of quality and uniformity.

The company stock, with ticker symbol KO, is listed and traded in the U.S on the

New York stock exchange. Common stock also is traded on the Boston,

Cincinnati, Chicago, Pacific and Philadelphia exchanges. The company’s

operating management structure consists of five geographic groups plus the

Minute Maid Company. Minute Maid Company, the Company’s juice business in

Houston, Taxes, the world’s leading marketer of juice and juice drinks. Its

products include minute maid premium orange juice with calcium, Minute Maid

Premium Lemonade Iced Tea, minute maid coolers, hi-C Blast and Five Alive.

The Coca-Cola Company has a commitment, more than a century old, to social

responsibility through philanthropy and good citizenship. The company’s

reputation for good citizenship results from charitable donations, employee

volunteerism, technical assistance and other demonstrations of support in

thousands of communities world wide.



The Coca-Cola Company continues to sponsor the world’s most exciting sports

events, including world cup soccer, the national football league, national

basketball.

2.8 Bottling System

One of the Coca-Cola company’s greatest strengths lies in its ability to conduct

business on a global scale while maintaining a local approach. At the heart of this

approach is the bottling system.

Coca-Cola company has business relationships with three types of bottlers.

1. Independently owned bottlers, in which it has no ownership interest.

2. Bottlers in which it has invested and have a non-controlling ownership

interest; and

3. Organizations in which it has invested and has a controlling ownership

interest.

During 1999, independently owned bottling operations produced and

distributed approximately 27% of its world wide unit case volume.

Bottlers in which Coke’s owned a non controlling ownership interest

produced and distributed approximately 58% of its 1999 world wide unit

case value. Controlling bottling and fountain operations, otherwise known

as “Fresh Coke” produced and distributed approximately 15%.

Coca-Cola Company view certain bottling operations in which they have a non-

controlling ownership interest as the key or anchor bottlers due to their level of

responsibility and performance. The strong commitment of both key and anchor

bottlers to their own profitable volume helps us meet strategic goals and furthers

the interests of world production, distribution and marketing systems.

These bottlers tend to be large and geographically diverse with strong financial

resources for long term investment and strong management resources.

The bottlers gives Coca-Cola strategic business partners on every major continent.



CHAPTER – 3

MARKETING REVIEW

3.1 Product

Marketing Strategies

Coca-Cola USA has developed suitable changes it hopes will catch the eye of

supermarket shopper.

Discovered during consumer tests on the west coast the new red, white and blue

design on the new Coke could turn up in grocery store and vending machines

across the country in early 1988. The New colour scheme for the (reformulated

Coke) which has been losing market share since it was introduced in 1985 was

designed to further differentiate the new formula from Coca-Cola classic.

At the same time Coca-Cola is testing graphic alternations on its six Coke brands.

The testing has been conducted in Fort Wayne, Indian and Montgomery,

Alabama. If consumers like it, the new cans has start appearing in 1989. Most

consumers has know some thing is different the labels, just they would not be able

to put their minds to it. Most significantly the word Coke is bigger and bolder and

it has been forward slightly italicized in a new look the company believed is more

in Coke’s owned a non controlling ownership interest produced and distributed

approximately 58% of its 1999 world wide unit case value. Controlling bottling

and fountain operations, otherwise known as “Fresh Coke” produced and

distributed approximately 15%. Coca-Cola Company view certain bottling

operations in which they have a non controlling ownership interest as the key or

anchor bottles due to their level of responsibility and performance. The strong

commitment of both key and anchor bottles to their own profitable volume growth

helps us meet strategic goals and furthers the interests of world wide production,

distribution and marketing systems.



These bottles give Coca-Cola strategic business partners on every major

continents of the world.

The company feels the new labels will give the product an infirmity that has been

lost through aggressive brand extensions and reinforce the red color of Coca-Cola

famous trademark.

Some 30000-man hours were spent in the redesign effort and more than 19300

initial drafted before management will reduce these colors to a manageable 100 or

so. The final design will be presented to juries of consumers before the new

design package was completed.

This is soft drink and available in different flavors i.e. cola orange. Lemon and

lime. About the product the company says that they are open to every one i.e. all

the people whether they belong to upper class or lower class.

Quality Control

The quality of the product is checked by the corporation in various areas to

maintain the quality of the product, quality control team from the corporation

(USA) gets sample bottles from different areas. They test these bottle in

laboratories and send the report to the related company in Pakistan. The company

personally does not know about the team’s visit. The quality control teams have

the list of the name of the plant according to their result of how much they

maintain international quality. The corporation takes action against the company,

which are found defaulters. They also visit different plants and if found any defect

they will stop the plant and warn them to remove the defect.

New Product of Coca-Cola and its Marketing Failure

This Coca-Cola Company (MAKK Beverage) was established in 1964 and there

are the three brands of the Coca-Cola, which are manufactured in MAKK

Beverages. They are also looking for new ideas and try to develop new product.

MAKK Beverages introduced a litchi flavor into the market but it failed. The

reason were poor advertising campaign. Especially from May to August the



company be able to not provide the new brand to the consumers with the help of

existing plant. Usually there are many reasons for the failure of the products.

Which is according to the marketing and factory manager are as under;

Inadequate market analysis

I. Product deficiencies.

II. Lack of effective marketing efforts.

III. Higher cost than anticipated

IV. Poor timing of introduction

V. Technical and production problems.

Marketing Segmentation

The market segmentation of the Coca-Cola is heterogeneous rather than

homogeneous. They segment the market for their different product sizes. The size

of their product are 250 ml 175 ml, 300 ml, 1000 ml, 1500 ml. These are available

ill different glass bottles, plastic bottles and cans to send different sizes and

different packaging to different markets, where the demand for that size package

is in large scale. Coca-Cola also sells it products in the disposable glasses.

Branding and Trade Mark

In developing a marketing strategy for individual product, the seller has to

confront the issue of branding.

Brand is a name, term, symbol, or design or a combination of them, which is

intended to identify the goods or services of one seller or group of seller and to

differentiate them from those of competitors.

The trade mark of Coca-Cola is Coke around the world. The most popular brand

of Coca-Cola is also available in Pakistan. These are Coca-Cola, Fanta, Sprite,

eanc brand has its own unique flavors. For example, the old and young people like

mostly Coca-Cola and Sprite while children buy Fanta. Coca-Cola has got a

unique market strategy it is for all ages of people every where in Pakistan.



Packaging

Packaging can be defined as all the activities involved in designing and producing

the container or wrapper for the product.

Purpose of Packaging

a. To protect the product from tampering on its way to the consumer: For

example if Coca-Coal has tight packaging that no one can mix any thing

with its product, this will be certainly good for the company’s good will.

b. To implement consumer’s marketing programme. If a product has no

packaging the consumer will not be able to identify the product of a

company and hence will not be able to differentiate the products of

different companies.

c. Packaging is used to write the brand name on it.

d. To attract customers Sometimes a company change its packaging, the

reason is to attract the attention of the customers, such as Coca-Cola

introduced, family pack, one liter bottle.

e. Provide protection to product Coca-Cola introduced plastic bottle, which

is purchased by the consumer and does not need to be returned.

f. To implement company marketing programme Retailers want good

packaging to attract customers so the company gives different sizes to

implement the company-marketing programme:

The importance of packaging is so great that it is now considered as the most

valuable part for the promotion of products.

Coca-Cola also has different alternative packaging. These packages are of plastic

1.50 liter, bottle glass 1 liter bottle, 300 ml, and cans of 250 ml. Glass bottle

Coca-Cola provide these different packages to different areas. Some people like

cans whereas other want to take it home for the whole family. So for people Coca-

Cola provides a plastic bottle of liter, 1 liter. Improved packaging can be an

effective way to attract new customers. Coca-Cola always follow the principle

and make changes in their packaging.



According to corporation, packaging is changed and change in packaging will be

followed through out the world. The most profitable packaging for Coca-Cola is

return bottle sale. About 70% to 75% of the total sale of return bottles.

3.2 Sales Promotion

Sales promotion is a demand stimulating device designed to supplement

advertising and Facilitate personal selling.

Examples of sales promotion devices are coupons, premiums in store-displays,

trade shows, samples, in store demonstration and contests.

In the case of Coca-Coin sales promotion strategies are divided into three primary

types.

I. Coca-Cola end user or consumersII. Coca-Cola resellersIII. Coca-Coal sales force

The first two have direct implications for advertising and will be discussed

in some detail. Sales promotion are simply activities directed at the firms sales

people to motivate them to strive to increase their sale levels.

3.3 Consumers Sales Promotion

In case of Coca-Cola consumers sales promotion are directed at the ultimate user

of the good or service. They are intended to “presale” Consumers so that when

consumer go to a retail. Store and express their willingness to purchase Coke’s

products.

Most often sales promotion are the responsibility of the product manager along

with the advertising department, or sale promotion agency or advertising agency.

The primary strengths of consumer sales promotion are their variety and

flexibility. There are a large number of techniques that can be combined to meet

almost any objective of Coca-Cola sales promotion.

A) Price Deals

A temporary reduction in the price of a product is called a price deal.



Price deals are commonly used to encourage trial of a new product, to persuade

existing users to buy more or a different limes, or to convince new users to try an

established product.

The Coca-Cola company has a very well defined plan for their price deal with

their dealers. For example, any one of the retailers who is the mass customer of

the Coke’s products on every date whose price is 170, 5-10 rupees are discounted

as price deal.

B) Coupon

Legal certificates offered by the Coca-Cola Company and retailers that grant

specific savings on selected products when presented for redemption at the point

of purchase. The coupons Coca-Cola company sponsored can be redeemed at any

outlet distributing the product.

Retail, sponsored coupons can only be redeemed at the specific retail outlet. The

primary advantage of the coupons is that it allows the advertiser to lower prices

without relying on cooperation from the retailers. In the initial days the company

used coupon system in a large scale. The coupon is an original paper on which the

name of the consumer and full address and the retailer is written. Store from

whom to the copes products are purchased is issued. There is one Rupee free for

every coupon in order to capture the “Coke’s market”.

C) Contest and Sweepstakes

Contests requires that the participants exhibit some sort of skills or ability in order

to win, while sweepstakes require that participants submit their names to be

included. A good contest or sweepstakes generates a high degree of consumers

involvement which can review sales, so the retailers / consumers submit their

names and get freezers, shells, racks etc.

D) Refunds and Rebates

Refunds are the offered by the marketer to return a certain amount of money to

the consumer who purchases the product. The refund system of Coca-Cola now

increasing in a very rapid ratio as compared to its competitor (PEPSI). This refund



system is better than that of the coupon system, because it stimulates the sale

without the high cost and waste associated with coupons.

E) Premium Offers

A premium is a tangible reward, received for performing a particular act usually

purchasing a product or visiting the point of purchase. The Coca-Cola Company

has a very well planned programme of premiums for their consumers.

The Coca-Cola offers pencils, ball points, umbrellas, bats, cricket balls, caps,

radio sets, key chains and wall clocks to their consumers. All these tangible

rewards that are offered by the Coca-Cola Company, are signed by the words

Coca-Cola or the company logo.

F) Continuity Programs

This is a program that requires the consumer to continue purchasing the product

or service in order to receive a reward. At this stage Coca-Coal plays a very good

and cooperative role. The company gives free sampling on monthly basis to their

mass retailers 5-10 crates free. The Coca-Cola company gives freezers to their

mass retailers in order to keep the store loyal and continue to market the coke’s

products.

G) Consumer Sampling

Allowing the consumer to experience the product or service free of charge or for a

small fee is called sampling. It is very effective strategy for introducing a new or

modified product or for dislodging an entrenched market leader.

The MAKK beverages Pvt. Ltd. in stages of the emergence of the product into

market it gives free bottles to the consumers for product taste. This process /

arrangement is located particularly at Peshawar Cantt. Or at Badcha Khan

Chowke, Peshawar.

H) Sponsorships

Sponsorships include different activities, including sports, entertainment tours and

attractions festivals and annual events. Many of these will be the responsibility of



public relation manager. For example, Olympic games, cricket, cricket word up is

sponsored by Coca-Cola Company. The Coca-Cola Company spends 40 percent

of its budget which is 3.25 billion dollar on sponsorship program.

3.4 Resellers (Trade) Sales Promotion

Resellers, or intermediaries are the retailers and wholesalers who distribute the

products made by manufactures to other shelf and ultimate users.

The Coca-Cola reseller’s sales promotions are intended to accomplish four overall

goals.

1. Stimulate in-store merchandising or other trade support, picture pricing.

Superiors store location and / or shell space.

2. Manipulate levels of inventory held by wholesalers and retailers.

3. Expand product (Coca-Cola, FANTA, and Sprite) distribution to new

areas of the province or new class of trade.

4. Create a high level of excitement about the product among those

responsible for its sale.

The ultimate gauge of a successful Coca-Cola reseller-promotion is to see

whether sale increase among ultimate users or not.

A great number of promotional devices that are designed to motivate resellers to

engage in certain sales activities are available to the manufacturer. The major one

are discussed in the following paragraphs.

A) Point of Purchase Display (POP)

A display designed by the manufacturer and could be distributed to retailers in

order to promote a particular brand or line of products.

Point of purchase is the only advertising that occurs when all the elements of the

sale, the consumer, the money, and the products come together at the same time.

POP can include special racks, display customer banners, signs price cards

mechanical product dispensers.

In case of Coca-Cola, the company distribute freezers, wooden shells, plastic

shells in order to promote the sale for consumer products.



These freezer have a price of 17,000 while the Coke Company Charges for their

retailer price Rs. 8500 i.e. fifty percent discount is given.

B) Trade Incentives

Trade incentives for accomplishing certain tasks are offered to the resellers by the

marketers.

The only requirement is that the resellers demonstrates in some way that Cokes

product were displayed. Usually the Coca-Cola company offers free crates of their

product to the retailers or they offer a substantial prize of cash or merchandise to

retailer who order a certain amount of Cokes, Fanta or Sprite.

However, in the case of trade incentive programs of Coca-Cola, two aspects or

subparts of trade incentives is worth mentioning here.

C) Push Moneys

A monetary bonus paid over a period of time. In this case from Coca-Cola

company side a specific target is assigned to the sales person, when achieved the

company gives his a bonus in cash form or in the initial stage the company

arranged a foreign trip programme for the sales persons.

Dealer Loader

This is a premium given to a retailer by a manufacturer for buying a certain

quantity of products. For example, the company donates stands in bottle form

made from plastic or iron, but durable.

D) Trade Deals

It is an arrangement in which the retailer agrees to give the manufacturer’s

products a special promotional efforts in return for product discounts, in the form

goods or cash.

The Coca-Cola company has arranged a programme that any one of its retailer

who achieves a specific target of sale will be given special discount or 10-18

crates free of cost.



3.5 Price and Pricing Strategy

Price is the amount of money and / or other items with utility needed to acquire a

product. Price is a basic regulator of the economic system because it influences

the allocation of factors of production (Labor, Land, Capital).

To reduce the risk of government intervention, Coca-Cola establish prices in a

manner and at a level, that consumers and government officials consider socially

responsible.

As the image of the quality of Coca-Cola is well developed in the consumer mind

so therefore the company determine price on the competitive basis.

Price affects a firm’s competitive position and its market share. As a result, price

has a considerable bearing on a company’s revenues and net profits. Through

pikes money comes to an organization. The Coca-Cola company does not want to

increase price and increase sales volume with the same price. Decisions regarding

the prices are influenced by the price control committee, D.C. Peshawar, Director

of Industries etc.

3.6 Pricing Objectives

Every marketing activity including pricing should be directed towards a goal. To

be useful, the pricing objective must be consist with the overall goals set by the

firms and the goals of marketing.

To adopt a primary pricing goal of maintaining the Coca-Cola market share or of

stabilizing prices, we will discuss the following pricing objectives.

Profit-oriented

To achieve a target return.

To maximize profits.

Sales oriented

To increase sales volume.

To maximize or maintain market share.



Status quo-oriented

To stabilize prices.

To meet competition.

A. Profit-oriented goals of coca-cola

The Coca-Cola Company’s goal, may be set for the short or long term, it always

select one of two-profit oriented goals for its pricing policy.

I. Maximize profits

A profit maximization goal is likely to be for more beneficial to Coca-Cola

Company it is pursued over the long term.

For example, when Coca-Cola Company wants to enter a new territory where the

market share of its competitor is at the peak, it has adopted the policy that it

allows discounts in the shape of now prices for their products.

If the price of 1crate is Rs. 170 it keeps its price by 165+160 rupees per crate.

II. Achieving a target return

The Coca-Cola company may price to achieve a target return-a special percentage

return on its sales or on its investment. The Coca-Cola retailers and whole sellers

use a target return on sales as a pricing objectives for short period (4-6 months) or

a fashion season.

B. Sales-oriented goals of coca-cola

I. Increase Sales Volume

This pricing goal of increasing sales volume is typically adopted to achieve rapid

growth or to discourage other competitor from entering a market.

This goal is usually stated as a percentage increase in sales volume over some

period, say I year or 3 years.

In this case Coca-Cola Company seek higher sales volume by discounting to their

customers or setting some schemes.



According to marketing manager MAAK Beverages and Mineral Water Pvt. Ltd.

usually use this pricing strategy at the end of season when their sales of down.

II. Maintain or increase market share

The Coca-Cola Company emphasis to increase their market share. The market

share of Coca-Cola is 40 percent. While the market share of its competitors

(PEPSI) is 60% market share is very low for the operation of an enterprise.

In order to increase market share for Coca-Cola, the company has development

wonders of the world scheme.

Similarly they give freezers to their retailers. The price Rs. 17,000/- per freezer

they receive cash of Rs. 8500 per freezers.

But maintain the market share of their competitor (PEPSI) now a days PEPSI

gives freezers free of cost to their retailers.

C. Status quo goals

Stabilizing prices and meeting competition are least aggressive of all pricing

goals. Price stabilization is often the goal of a company, where to product is

highly standardized.

All these are concerned to maintain the firms current situation-that is the status

quo, but in the case of Coca-Cola the market share is 40% and wants to improve

their current situation.

3.7 Distribution Channels

A distribution channel consists of the set of people and firms involved in the

transfer of tile to a product as the product moves from producer to ultimate

customer.

A channel of distribution always include both the producer and final consumer for

the product in its present form as well as any middleman such as retailers and

whole sellers.

It should be noted that five channels are widely used in marketing tangible

products to ultimate consumers.



1. Producer Consumer

2. Producer retailer consumers

3. Producer wholesaler retailer consumer

4. Producer agent retailer consumer

5. Producer agent wholesaler retailer consumers.

In the case of MAKK BEVERAGES (Pvt) Ltd. this 3rd channel is used.

The Coca-Cola (MKKK BEVERAGES) have their won sales Deptt, for example

on university road at Tehkal Bala, Hastnagari, Khyber Bazar etc in these stores

they have their wholesalers, the company provide them a bulk stock which they

then distribute to different retailers.

In this sales Deptt. There is also a well developed program for sales in different

localities. For each territory the responsible person of each sales deptt. have kept

vehicles. The driver is used as a sale man, he has a very close link with the

retailers. So from these retailers the products are then distributed to the ultimate

consumers.

Sometime the company uses this 2nd channel too. For example some retailers

come directly to the factory, where they receive Coca-Cola products in bulk and

finely distribute these products to ultimate consumers.



3.8 The Role of Middleman

Institute of Management Studies

SALES SPECIALIST FOR

PRODUCTS

Provides market information

Interpret consumer wants.

Promotes producer product.

Create assortment.

Store products

Negotiate with customers.

Provide financing

Owns products

Shares risks.

PURCHASE AGENT FOR

BUYES

Anticipates wants

Subdivide large quantities of

prelates

Stores products

Transports products

Create assortment

Provide financing

Products readily available

Guarantee products

Shares risksMiddle Man

25


2.5 The Coca-Cola Realm

From Production to the Market Place

People grab a movement of simple refreshment from Coca-Cola products millions

of times every day. So it is as routine as drawing a breath of fresh air.

It’s so routine people may take for granted always having the quality products

they desire when-and where they want them.

Coca-Cola company the world’s largest bottler of liquid nonalcoholic

refreshment. It produces, market and distributes Coca-Cola products at the local

level through mutually profitable partnerships with customers such as

supermarkets, convenience stores, retail out lets schools and business of all kinds.

Throughout the company two primary goals unparalleled product quality and

superior market place execution – helps to operate in diverse markets with

dramatically different consumer preferences and market conditions.

Because of geographic diversity and the local nature of its business it operate in

markets with dramatically different consumer preferences economics conditions,

products delivery systems, retail trade customers and market place opportunity.

Yet, in spite of this diversity, Coca-Cola operations are bound together by two

key goals creating the highest quality products possible, and supervisor market

place execution.

Simply defined market place execution means making Coca-Cola products

available everywhere a consumer may want one.

It dedicated people offering hands-one, face to face service to meet superior

market place execution demands.

It works shoulder to shoulder with customers to create the most advantageous

sales initiative for their business and through local, market-based programs.

To better meet customer’s need, Coca-Cola provides front line personnel with

training and tools necessary to deal with an ever-changing market place.



These tools supplement the greatest strength of employees an unwavering

commitment to superior market place execution. It help employees work

diligently every day to meet the needs of each individual customers.

Creating demand for Coca-Cola products through superior market place

execution, MAKK BEVERAGES (Pvt) Ltd. manages the process of getting the

product to the customer. The work begins in the early morning hours as MAKK

BEVERAGES ware house employees assemble order from the day before, then

place the products on delivery trucks and vehicles for distribution to customers.

In MAKK BEVERAGES, where delivery systems to customers vary ware house

employee’s load larger tucks for bulk delivery to customers ware houses or load

tucks for local delivery.

Their employees maintain a round the cloak operation. They staff production lines

to meet consumer demand pull order from inventory and in direct delivery areas,

load cases onto tucks for delivery to customers the next day.

This process is essential in meeting goals for quality and market place execution.

Often by 6 A:M, sales managers, accounts representatives, merchandisers and

drivers across the company are meeting at sales centers to plan the day’s efforts

and discuss sales opportunities.

Local delivery drivers will check their trucks and vehicles, making sure loads are

correct.

They then head to market using routes created the day before by dispatchers at

each sales centers routinely delivering 400 or more cases of products each day.

Once the products each day. Once the products are delivered to the stores, the

accounts representatives and merchandisers take the lead.

Merchandiser work in large stores making sure our products are available and

displayed properly.

Account representatives delivered marketing materials, organize their cell lists

handle paper work, and assists customers. Accounts representatives will call on

15 or more customer each day working with those customers to help them grow



their business. As they visit customers they send in new orders electronically or

by phone, keeping the cycle of sales, production, and delivery moving forward.

Production lines run 20 hours a day. Back at the plant production lines keep

rolling bottling the products needed to keep the pipeline full of Coca-Cola

products.

The constant production helps assure costs down by making maximum utilization

of facilities.

Managers and administrative employees work to provide front-line employees the

tools they need.

For example they create marketing programs and strategies to help sales plan the

requirements develop employees benefit programs and provide overall local and

company wide leadership.

MAKK BEVERAGE (Pvt) Ltd. has its own 3 trucks five Mazdas, 8 Suzuki, 6

Dahntsun and with the help of these vehicles they cover different channels of

distribution.

Other drivers use tractor trailers to deliver products in bulk, while in the Punjab

side drivers use side loaded trucks.

Coca-Cola (MAKK BEVERAGE) concentrates on having the right products for

its consumers when they need it and making sure products are the finest quality

possible.



Organizational Chart of Peshawar

Institute of Management Studies

Chair Person

G.M.

Marketing Manager Accounting Deptt. Shipping Deptt.

Factory Manager

Marketing Manager Production Manager

Quality Control

Mechanical Engineer

Shipping Manager

ShippingShipping Officer

Personnel Manager

Sales Manager (Base)

Sales Manager (O/S)

Sales OfficerSales Officer

Sales SupervisorSales Supervisor

Sales ManSales Man

Distribution Officer

29


3.10 Organizational Chart of Coca-Cola

The Coca-Cola Company (MAKK beverage & Mineral water Pvt. Ltd.) is situated

at a suitable geographic location in the district Peshawar at Charsadda Road. The

second factory located at Rawalpindi (Shahi Beverages Pvt. Ltd) also belong to

Muhammad Aslam Khan Khattak.

The organizational chart of both factories are the same while (MAKK Pvt. Ltd.) is

discussed below.

The owner of this Coca-Cola factory is Muhammad Aslam Khan Khattak.

The general managers was initially an audit officer who was responsible for audit

of MAKK Beverage Pvt. Ltd. Then he worked here as G.M.

The G.M has responsibility to control three main department i.e. sales department

accounting department and shipping department.

The factory manager is a senior person of this organization.

As the marketing manager has left this organization, so temporary responsibility

of marketing has been taken by the factory manager.

This marketing job is very tough, he is responsible to control either left side right

side, back side and front side.

He will have to face his competitors especially with PEPSI.

He is responsible for the mass advertising of the Coca-Cola factory in NWFP.

All the sales manager daily give him report of their activity and sales programe.

The accounting department is also controlled by the G.M and the responsible

persons of the accounting department are Ghori Baba and Jamil Shaib.

Accounting department have the responsibility to keep the record of sales,

production, shipping and personnel. It keeps the record of the production on daily

basis.

It keeps record of all the stockiest.

It keeps records of payment and receipt, Debt and credit, record about the

payment of salaries of the employees.

The record of incentives they receive from factory side.



The product manager is responsible for the manufacturing process. He is very

sensitive in production prepared. When the syrup is prepaid, there is a laboratory

where it is checked. If the report of laboratory give positive result be will

continue.

There, is also a quality control manager who control the quality. This quality

manger is M.Sc in Chemistry. He also works in Laboratory.

Then under the supervision of marketing manager two sales manger work.

One sale manager is out station sales manager and the 2nd is base sales Manager.

The marketing and the sale manager have a very closed link with each other.

Base sales manager of MAKK beverages is a very sharp Pvt. Ltd. Is he is a very

sharp and active person. As clear from his job assign to him (Base). He works in

Base i.e. in the locality of Peshawar.

This base Sale Manager have his our staff. They work according his instruction.

Noorilahi is his right hands, and helps Base unit manger.

All his staff works with in Peshawar.

The outstation Sales Manager job is Telephonic. He is a very responsible person

of this organization. The out Station Sales Staff works in outstations like

KOHAT, BANNU, CHARSADDA. Outstation manager have divided, his each

sales officer in each station. They daily present him the report of each locality.

They discuss with o/s manager about the demand, supply and over stock of

Limited, Stock.

As discussed above that sales manager have a very close link with that of the

marketing manager. So when some complaint is reviewed, or there is some basic

need for advertising Coke’s product through Banners or boards or need of

painting he will give the report to the marketing manager if necessary the

outstation manager personally go there, and solve the problem immediately or the

assign this job to his sales assistant.



3.11 Equal Employment Opportunity

The Coca-Cola company provides equal employment opportunities. The company

has an on going commitment to affirmative action and the creation of a work

place free of discrimination has assessment.

The company will recruit hire, train and promote individuals in all job titles with

out regard to race, color creed, religion, ancestry, national origin age.

The organization present them the mission of the company. Target are assigned to

them which they have to achieve. If target is not achieved, they take some

corrective action to help them.

All the employees that the company hires, are experts in their won field with good

manners well dressed smart sharp, active and are punctual.

3.12 Coca-Cola Wonders of the World Scheme

The worldwide leader in beverages, the Coca-Cola company has announced a

schemes named wonder of the world and other small schemes.

Under the wonders of the world scheme of Coca-Cola, a person or a loyal

consumer is required to collect 5 crown caps and win a wonderful trip.

This offer is valid for 250 ml, and 300 ml bottles of Coca-Cola, sprite and Fanta

till stocks last.

If a consumer has 5 crown caps on which the names of the countries like PARIS,

HOLLYWOOD, NEW YORK, SINGAPORE, & CAIRO have been written.

Then the consumer will win the prizes of the scheme and loyal consumer will visit

for these countries.

Under small schemes at the crown cap of 250 ml bottles, it’s written (Enjoy one

free 250 ml of Coca-Cola). It should be noted that this schemes is also for a very

short duration.

Under the Coca-Cola schemes (Wonders of the world) the 1st prize of Mohajir

Pakistani young man named SYED QALAM SHAH won.

This young man belong to Hayatabad.



From MAKK VEVERAGE Pvt. Ltd. a check of two lacs (200,000) was presented

to him.

This check of Rs. 200,000/- was presented by the MAKK BEVERAGE general

Mangers.

On this occasions the General Manger addressed that all over the world 1 billion

of people drinks of quenched their thirst by drinking Coca-Cola Beverage daily.

The Coca-Cola export corporation district operation manger Shehzad Iqbal also

addressed, the occasion.

3.13 Environmental Policy for Cold Drink Equipment

As the world wide leader in the beverage industry, the Coca-Cola company has

long worked to make sure company cold drink equipment meets the highest

possible environmental standards.

For the past three years, a special company task force has been working to

identify energy saving opportunities and integrate the use to alternative

refrigerants and refrigeration systems.

In connection with this effort, the following policy for new cold drink equipment

purchased by the Coca-Cola.

By the Athens Olympic Games in 2004, the company will no longer

purchased new cold drink equipment using hydrofluorocarbon (HFCs)

where cost efficient alternatives are commercially available. This

initiative applies both to refrigerant gases and insulation.

Between now and 2004, the company will expand its innovative

research and development program to identify and field-test a variety

of promising alternative refrigerant technologies.

Supplies will be required to announce specific times schedules to use only HFC

free foam insulation and refrigeration in all new cold drink equipment by 2004.

In concert with the international Kyota Agreement on climate change. It required

company suppliers to develop, by the end of the decade, new equipment that is

40-50 percent more energy efficient than today’s equipment.

Consistent with the leadership role taken on ozone-depleting CFCs in the 1990s.



The Coca-Cola company will continue to lead the system to use the most

environmentally responsible cold drink refrigeration technology available

intensifying company efforts to support research and innovation in this area.

Detailed communication with suppliers about expectations and schedules

management system.

The Coca-Cola Company has developed a comprehensive environment

management system.

The system is designed specifically for alignment with operation of the Coca-

Cola, business system and focus on environment issues directly related to

business.

Compliance, waste minimization, pollution prevention, continuous improvement,

and identification of cost savings are all hallmarks of the Coca-Cola

environmental management system (CCEMS)

At the core of the Coca-Cola environmental management system is a simple

overarching principle company conduct business in ways that protect and preserve

the environment.

The Coca-Cola Company conducts its operations in compliance with applicable

environmental laws and regulations. Even in the absence of governmental

regulation are operate in an environmentally responsible manner.

3.14 Environmental Training

The company identifies training needs and develops environmental training

programs so that employee understand their role in fulfilling environmental

policies, requirements and practices.

A. Corporate Training Programs

The company develops training programs to address system-wide environmental

topics and assist operations in implementing effective environmental training.



B. Plant training programs

Plant management coordinates training programs to assist plant personal in

effectively implementing programs to meet all applicable requirements.

C. New employee orientation

New employees receive pertinent company environment information.

Environmental coordinators provide additional resources and training relevant to

the employees job responsibilities.

D. Professional development

Each individual with operational environmental responsibility regularly

participates encourages, seminars, meeting or other programs to continuously

improve his/her environmental knowledge and expertise.



CHAPTER – 4

PRODUCTION DEPARTMENT

4.1 The Manufacturing Process

The Coca-Cola Company has its own well developed and well equipped

manufacturing department. The production manager is responsible for the

manufacturing process. Shipping is the initial process of manufacturing, in this

case empties, which is the factory floor terminology for an empty bottle, are put

into the initial action. These empties are picked up with the help of decaser which

are then forwarded through the conveyer in order to proceed further process.

In this case full concentration on inspections are given whether the empties are

oil, or some straw materials are not stacked on it when this inspection process in

complete washing process of empties are started.

There is a wash table which moves horizontally and vertically this wash table can

have 30 bottles at a time to wash, which are then shipped through the conveyer.

In this production department, we have observed five tanks from where these

empties can be forwarded for further procedures out of these five tanks tow to

them are of fresh water. In the first tank caustic soda (NaOH) is passed. The

temperature of the first tank remains from 450C to 550C. the purpose of the NaOH

is to remove dust from empties. In the 2nd tank where fresh water is present space

some chemical process.

In this case the temperature remains from 600C to 750C. here sodium phosphate,

sodium gluconate, and stabilon are used. Stabilon is a water softening (oxidation).

Caustic life increases and protect bottles from chemical reactions. In removes

certain types of germs from the empties.

Thus after functioning of these two tanks the remaining three tanks are taken into

concentration. Approximately the 2nd and 3rd tank perform the same function. It

cleans empties further and removes the remaining dust ad germs the temperature



is reduced in the next two tanks and in the fourth tank under temperature of 400 to

500 bottles are washed.

Then in the last tank chlorine (Cl2 ) gas is passed which remove further germs and

thus the quality of the Coca-Cola remains stable. Jets remove dust and caustic

elements from bottles. Then inside and outside washers front check washed

bottles, which cleans bottles outside and inside. These tests are done in a

laboratory. Coca-Cola Company has it s own test laboratory, inside the production

department.

This laboratory is well lit, air conditioned and well equipped.

These tests are of Methlylene, blue phenaphy line. Also there is an empty light

inspector who removes dirty and defective bottles. There are five empty light

inspector who takes part in this process.

During the production process the damage of bottles may occur so the defective

bottles and the bottles which are broken during the production process are

removed.

When all these process are completed and the inspectors make sure that there is

no dust remains in the bottles. Then these bottles are tanker moved in front of a

filler where they are filled up with syrup.

But at this stage the carbon dioxide is required into the mix. But before mixing of

the carbon dioxide gas there is partially oxygen mixed in it. And the Co2 cannot

mix syrup in the presence of O2 gas. So for this purpose with the help of a polisher

decorator O2 is removed. Then with help of ammonia plate the temperature is

reduced further and further. So at a very low temperature Co2 is mixed in to it.

Co2 extends the shell like at the products. Co2 is every effective at low

temperature.

Now the syrup is ready to be put in bottles. The Coca-Cola syrup is filled in Coca-

Cola bottles, Fanta syrup in Fanta bottles and Sprite in Sprite bottles.

Now these are ready for distribution in the market.



ACCOUNTING DEPARTMENT

4.2 Maintenance of Account

The system of accounts adopted here is called double entry book keeping there is

4 members staff in account section namely.

Staff Members

Chief accountant

Senior accountant

Assistant accountant

Store accountant

Chief Accountant

The chief accountant is responsible of account section. He maintains the general

ledger and sales to register. He is also responsible of submitting final

account/report to the management on monthly basis. He is the person who

conduct the audit. He looks after the sales tax affairs.

Senior Accountant

This person is responsible for bank transactions preparation of journals vouchers,

bank payment voucher, bank receipt voucher, maintenance of bank book, supplier

ledger and journal, is the responsibility of senior accountant.

Moreover he is liable to prepare and bank reconciliation statement supplier trail

balance at the end of the month and submit it to the chief accountant.

Assistant Accountant

Assistant accountant is responsible for all cash transactions. Customers ledge,

cash book and sales journal are the maintained by him preparation of cash

payment vouchers and cash receipt voucher also the responsibility of him.



Store Accountant

Store accountant handles all store requisitions. Goods receipt note in word gate

passes outward gate passes. He maintains the store ledger.

Fixed assets ledger

Electric items ledger

Raw ledger

His additional responsibilities is to conduct stock taking at the end to each month.

Books of Account

General ledger

Supplier ledger

Customer ledger

Stores ledger

Journal

Cash book

Bank book

Sales journal

Ledger (General)

The principal of account is ledger. It is ledger in which all transaction are

ultimately recorded in double entry form. The ledger is divided into two accounts

each being devoted solely to transactions with a particular personnel or of a

particular kind.

For short and long terms loans are obtained from different financial institution

like, MCB, ABL, NBP.

In this case short case terms period is for one year while long term period is from

3 to 10 years.

The rate of interest is 20% similarly all the transport building of MAKK

BEVERAGES & mineral waters (Pvt) Ltd. are pledged against the loan.



It means that obtaining these loans from these financial institution all the land ,

building, transport are used as security or collateral, of the payment of the loans

and, interest on loan to these banks.

Journal

Formally the journal was the only book of prime entry, and every transaction of

what ever kind recorded in it before being post4d to the ledger in modern book

keeping the journal has been supplanted to large extent by the day book.

So that the use of the journal is now restricted to miscellaneous transactions and

adjustment for which no other book of prime entry is available.

The Bank Book

The bank contains all the transactions regarding banks. The bank book contains

more than one bank balances. Like cash book, it has two sides receipt and

payment side. Receipt side contains all the receipts in the bank. The voucher

prepared for this side is called bank receipt voucher.

Payment side contains all the payment made through banks, the voucher prepared

for this side is called bank payment voucher. The bank book must be balanced

daily.

Sales Journal

This book contains the daily sales of the company invoice wise and product wise.

At the end of the month the summary of all sales is made and posted into general

ledger. It also has several columns for the following headings.

Invoice No. Customer Name, Brand Names.

Vouchers and Documents of Account Department

Vouchers and other documents prepared by the account department.

Cash payment vouchers.

Cash receipt vouchers.

Bank payment vouchers.

Bank receipt vouchers.



Journal vouchers.

Purchase vouchers.

Sales invoices.

Trail Balance

Trail balance is a list of al the balances standing on the ledger accounts and cash

books of debit and credit. It is clear that if a debit and a credit have been made for

every transitions the total of the debts should equal the total of the credits and if

the accounts are balanced off, and the balances carried down the total of the of the

debit balances should equal. The total of the credit balances.

The Profit and Loss Account

In-order to assertion the profit or loss made during period where books are kept

by double entry it is necessary on the final date of the period to transfer the

balances of the nominal accounts to a profit and loss account in which the

expenses and losses are set against the gains to show the net profit and loss.

Balance Sheet

In classified summary of the balances of the accounts remaining open in the

ledger after the balances of the nominal accounts have been transferred to the

profit and loss account but including the balance of that account. The balance

sheet does not relate to a period, but sets out the not values of the assets liabilities

and capital, “as at” particular date.



CHAPTER – 5

CRITICAL ANALYSIS

5.1 SWOT Analysis

5.1.1 Strengths

The Coca-Cola Company has the following strengths:

i) Conduct business on global scale.

ii) Good quality product.

iii) Good packaging.

iv) Equal employment opportunities.

v) Procedure management style.

Fanta and sprite are not challenged by the competitors.

a. Conduct Business on Global Scale

The Coca-Cola is a multinational Company and as we know that they produce

soft drink like Coke, FANTA and Sprite. Since 1886 the company has working to

refresh people through out the world. The Coca-Cola has more than 16 million

customer around the world that sell or serve its product directly to consumer and

there are nearly six billion people in the world who are potential consumer of

Coca-Cola Company product. So the great strength of Coca-Cola is that it conduct

business on global scale people around the world enjoy the good quality and good

taste of Coca-Cola and refresh and quench their thirst.

b. Good Quality Product

A product is a set of Tangible and intangible attributes which may include

packaging, color, price quality and brand plus the seller’s services and reputation.

People buy product because they want satisfaction in the form of benefit they

expect to receive from the product.



So Coca Cola is a good quality product and it is a great strength of it. People gets

satisfaction from it and enjoy their self. As we know that the Coca-Cola product

has a image in the world market. So they take more care in the preparation of

product. So for a product like Coke there must be good quality, without good

quality you can not create a good image.

c. Good Packaging

Packaging can be define as all the activities involved in designing and producing

the container or wrapper for the product. The packaging protect the product from

tempering on its way to the consumer. The packaging identify the product of a

company. So a good quality packaging sell the product for the company. Good

packaging is important for a good quality product like Coke. The Coca-Cola

MAKK beverages has it own packaging plant where they packed their product

and distribute throughout N.W.F.P. The Coca Cola has different alternative

packaging. There packages are of following;

Plastic 1.50 liter

Bottle glass 1 Liter, 250 ml

Can 300 ml

They produce there packages according to the need of the consumer.

d. Equal Employment Opportunities

MAKK Beverages (Pvt.) Ltd. Recruit people. There is a H.R.M. department. They

recruit qualified people from the whole Pakistan with out regard to race color,

creed, religion and ancestry because there is equal employment opportunities for

every one. After recruitment these people are trained according to the need of

organization and they give him good pay, they also pay incentive according to the

work of employee.

e. Fanta and Sprite are not Challenged

The success of MAKK beverages lies in its two product FATNA, and SPRITE.

The test of these two product are really very good from the competitor product.



Meranda and 7UP. People like the test of Sprite and Fanta and they prefer it.

These product are so well developed in the market and in the consumer mind that

no competitor can compete with them. The consumer have good perception about

the product and it good quality and test. So these product are not challenged by

the competitor and it is a great strength of MAKK beverages.

f. Other Strength

i. Co2 Plant

1. It has its own Co2 plant. After the completion of his own need for Co2.

They sell it in the market which earn sufficient revenue for the company.

ii. Water Softening Plant

They have there own well developed and international standard water softening

plant, were the water is treat with different chemical and when the water is

purified they used it in the preparation of its product.

iii. Production Plant

They have there own will developed and international standard production plant

were the product like Coke, Sprite, Fanta are prepared and then they distributes it

in the whole N.W.F.P.

iv. Transportation

MAKK beverages has its own fleet of transportation vehicles. They have 3 trucks,

4 Suzuki’s and 5-6 other vehicles.

5.2 Weaknesses

The Coca-Cola MAKK Beverages and Mineral Water (Pvt) Ltd. has the following

weaknesses.

i. Lack of mass advertising.

ii. Lack of financial resources.

iii. High employees turn over rate.

iv. Having high deficiency of empties.



v. Lack of well trained and qualified staff.

vi. No care of gate pass.

1. Lack of Mass Advertising

All activities involved in presenting to an audience a non personal, sponsor-

identified paid for message about a product or an organization.

MAKK Beverages (Pvt.) Ltd. has the weakness that it does not insist upon mass

advertising. In past 4-5 year they take no care for advertising and promotional

activities and that’s why their market share is low as compared to that of its

competitors Pepsi. The Pepsi company totally depend on mass advertisement. A

good advertisement has the ability to pursue the audience to buy the product and

Pepsi take advantage. As we know that both the product of Pepsi and Coca-Cola

is same but the market share of Pepsi is more than Coca-Cola. The reason behind

is mass advertisement Pepsi sponsor the music events the sports, and they used

every medium of advertisement. The print, the electronic and many more. So it is

the weakness of Coca-Cola and they must concentrate on it to compete with

Pepsi.

2. Lack of Financial Resources

To run a business the company or the organization must have sufficient resources.

MAKK Beverages has the weakness that it has the lack of financial resources.

That is why they can not compete with Pepsi. The Pepsi have sufficient financial

resources and that is why they get more market share and earning more revenue

than Coca-Cola and Pepsi is the market leader in Pakistan. When a company have

sufficient financial resources, they can use it to beat its competitor in any way. So

they use their resources in better way.

3. High Employees Turnover

In MAKK Beverages one of the weakness is the high employees turnover. The

reason is that they hire the employees on seasonal basis mostly the employees are

hired in summer season and when summer can to an end. The employee must

leave the job because they have the lack of financial resources and they do not



pay their employee through whole year. The summer season is good for soft

drink and they earn more in that season. So they hire their employee because the

work load is high.

4. Lack of well Trained and Qualified Staff

In MAKK Beverages mostly the employees and staff are not so much qualified

and trained. Mostly the sales manager, assistant sales manager have F.A.

qualification. The product manager and marketing manager have B.A. / B. Sc.

Qualification. This situation is very dangerous for MAKK Beverages because

they do not know about the basic knowledge of marketing and selling. The Pepsi

have well trained and qualified staff.

5. No Care of Gate-Pass

One of the weakness of MAKK Beverages is that no one take care of Gate pass.

Any one can in and out without a Gate pass. So for an organization like Coca-

Cola there must be some securities and Gate pass and no outsider well allowed

without a Gate pass. On the other hand the Pepsi has its Gate pass and no outsider

are allowed without the permission or Gate pass.

6. Having High Deficiency of Empties

In MAKK Beverage the summer season is full of demand. But due to lack of

empty bottles they cannot fulfil the demand for their customer.

5.3 Opportunities

MAKK Beverages and Mineral Water (Pvt) Ltd. has the following opportunities

which they must avail as soon as possible to become the market leader.

i. Launching new marketing schemes.

ii. No other Coca-Cola factory in N.W.F.P.

iii. Opening of new sales depot.

iv. Great potential.



1. Launching New Marketing Schemes

The success of Coca-Cola lies in launching New marketing scheme. One of their

marketing schemes was wonder of the world and these schemes boast the Coca-

Cola sell. They also sponsor the cricket world cup in 1996. This also create good

image and sell is increase. So for a company like Coca-Cola. They must sponsor

sports event and they must plane for their new marketing scheme, like most of the

company, like Nike, Reeboc they sponsor sports events and they have a good

image. So for Coca-Cola there is an opportunities of Football would cup 2002.

They must plane a marketing schemes this well help them and the image and the

sell of the company should also increase.

2. No other Factory in N.W.F.P

MAKK Beverages has the opportunity that having no other Coca-Cola factory in

N.W.F.P. So they get benefits from such opportunity by producing good quality

product and improve it work and create a good image in the mind of consumer

and work hard to compete with its competition Pepsi and win the market share

and create new marketing strategies and implement it in a better way.

3. Opening of New Sales Depot

MAKK beverages and mineral water (Pvt.) Ltd. must open a new sales depot in

different region of N.W.F.P. in order to extend its distribution program because in

Marketing of a product you must have sufficient distribution channel. Now a days

Coca-Cola company have 3 trucks 4 Suzuki’s and 5-6 other vehicle which are not

sufficient in order to cover huge territory. So they must buy some new vehicle for

its new sale deptt and they must improve their distribution channel and in this way

they can easy capture the market and get more market share for its competitor

Pepsi and gets more revenue.



4. Great Potential

We know that the MAKK beverages has a great potential of expansion especially.

It has a great opportunities in Gulf and west east Asian countries. The countries

are the following

1. Pakistan

2. Afghanistan

3. Sri Lanka

4. Bangladesh

5.4 Threats

MAKK Beverages and Mineral Water (Pvt) Ltd. has the following threats which

they must overcome to be a market leader.

i. Market demand inconsistency.

ii. Counterfeit brands.

iii. Government policies.

iv. Competition.

v. High taxes.

1. Market Demand Inconsistency

Just as external environment has opportunities that can be exploited and larger

gain can be made the external environment also possess certain threats which are

out of control of the company management. These threats need to be visualized as

soon as possible and strategies formulated to safeguard against these threats.

Due to lack of mass advertisement and other sales promotion activities in the past

five year, the Coca-Cola company has lost its market share especially in Pakistan

while its competitors Pepsi has gained sufficient market share. The second reason

for this threats over opportunity face to Coca-Cola company that they are unable

to provide as much services to their customers as their competitors. So in the

market the demand for their products is insufficient.



2. Counterfeit Brand

Most of Coca-Cola Company brands counterfeit are available in the market at

price about two third lower than the original one. This results drastic fall in

MAKK Beverages revenue. So these threats need to be visualized as soon as

possible and strategies are formulated to safeguard these threats. If they not

visualized these problem so it create a serious damage in the sell and also in the

revenue of MAKK beverages.

3. Govt. Policies

As we know that in Pakistan Govt. policies are not stable. The Govt. policies are

changed when the new govt. came. It has its own policies so it create threats for

soft drink and other industries. Take the case of Italy the govt. change but the

policies of each govt. is same for each industries and for foreign investor so these

policies of Govt. create a threats for the organization.

4. Competition

The fourth threat faced by the Coca-Cola company is the tough competition with

Pepsi. The Coca-Cola company has only one competitor in the Market and he is

the market leader in Pakistan and he gets more market share and revenue from

Coca-Cola. The reasons behind is that the marketing strategies of Pepsi is more

better than Coca-Cola and they implement their strategies in a good way and they

have sufficient financial resources.

5. High Taxes

About 45% of MAKK beverages revenue goes in the payment of taxes. They

govt. have imposed high tax on soft drink business. Some of the taxes are when a

they bring raw material from other countries so they pay taxes, some are the

factory tax some are sales tax. So the company are worried about some new taxes.

When the new govt. came it has its own policies and tax. So it is a great threat for

soft drink business.



6. Political Instability

Since Pakistan has an instable political system and one does not know what will

happen next. So this make life very difficult for various organization, including

MAKK beverages and Mineral water (Pvt.) Ltd. and they cannot make policies

and implement them freely in the long term.

5.5 General Analysis

1. Attitude of Senior Towards Junior

It has been noted that most of the managers of different departments are not

supportive by their juniors and they also cannot control their subordinates. This

creates an unfavorable situation for this organization.

2. Punctuality

Some of the staff members come late, which has become a practice and as soon as

the duty hours finish, the staff members leaves the organization with out sharing

the extra work with other workers.

3. Slow Career Advancement Improvement

The promotion policy of MAKK Beverages and Mineral Water (Pvt) Ltd. is very

slow and there are only few opportunities available for up-ward advancement.

This create dissatisfaction among employees and the talented employees some

times switch over to other organizations.

4. Lack of Efficient Staff

One of the most important problem which is faced by MAKK Beverages is

shortage of talented staff. Mostly staff having F.A., B.A. and B.Sc. qualification.

It means that they have no knowledge of professional management.

5. Unnecessary Leaves

Employees take unnecessary leaves from the factory. It has been noted that there

is not supervision on their subordinates.



6. Improper Work Distribution

In MAKK Beverages the distribution of work among the employees and staff is

improper and this type of management creates dissatisfaction among employees

and leads to role ambiguity.

7. Job Analysis and Wages

In MAKK Beverages and Mineral Water (Pvt) Ltd. there is no concept of job

analysis and that’s why wages are not according to the work performed by the

workers.

8. Lack of Appreciation

Another important thing which is discounted and ignored by the management of

MAKK Beverages and Mineral Water (Pvt) Ltd. is the appreciation of the

employees on their ordinary performance. If the hard work and out standing

performance of the employees and staff members is not appreciated, it makes

them discouraged and dishearted.



CHAPTER – 6

CONCLUSION & RECOMMENDATIONS

6.1 Conclusion

The beverages business is well organized through out the world. Coca-Cola

operates their business in more than 200 countries of the world and offers a

numbers of flavours but due to some religious facts Coca-Cola international offers

three major falvours in Pakistan. From the last few decades, the market share and

sales volume of Coca-Cola company in Pakistan is very low due to poor

marketing strategies, policies, advertising and sales promotion activities.

MAKK Beverages and Mineral Water (Pvt) Ltd. is also suffer from such kind of

situation during these days. The findings are the following.

1. MAKK Beverages has insufficient financial resources.

2. There is limited authority to G.M. and Factory Manger for planning.

3. All the authority is concerned in the hands of chairperson.

4. There is low coordination among the employees of MAKK.

5. The plant is nearly out of order because of carelessness.

6. There is no substitute of power during the days of load shedding which

cause difficulty to the company which makes the production slow.

7. The casing and bottles are old and out dated.

8. There is no proper technical staff in MAKK Beverages.

9. The company has no their own bottle manufacturing unit.

10. The transportation system is weak because of less number of vehicles

availability.

11. Marketing in MAKK Beverages is not standardized because of poor

management. They sell their products to the whole sellers and whole

sellers are independent in their beverages supply to the market.



12. There is a lot of empty bottles lay down on the working places, and

because of this easy movement of products from on unit to other is not

possible.

13. Bottles caps material is imported from Japan and Korea, which is very

expensive, and they pay heavy duty to the Government.

14. In MAKK Beverages the sales promotion activities is equal to nil.

6.2 Recommendations

Coca-Cola (MAKK Beverages and Mineral Water (Pvt) Ltd. is doing adequate

business. However it lags behind its main competitor Pepsi and there is potential

to Coca-Cola to increase its market share.

For this purpose the following recommendations are given in order to rectify the

situation.

1. Advertising

Coca-Cola’s advertising pales in comparison to that of Pepsi. Pepsi has done well

to associate itself with leading personalities. Pepsi has endorsements from the

highly popular national cricket team, musicians, pop singers and film stars.

Coca-Cola on the other hand has few endorsements and the endorsements it

currently has not advertised heavily. In sports it supports the National Hockey

team. Which does not enjoy the same success and popularity.

Coca-Cola needs a long term vision for its advertising strategy that would create

for it’s a brand loyal customer base similar to that of Pepsi.

2. Give Financial Support to the Re-Sellers

Not only should advertising be aimed at the end user, but in the cola industry the

re-seller or the middleman assumes prime importance.

At present Pepsi is heavily funded and provides vast incentives to the resellers to

exclusively stock their products thus diminishing the territories available to Coca-

Cola to sell their products. The company often faces a financial crunch at the peak

season where it is imperative to maintain aggressive selling.



So because of this most resellers prefer to stock Pepsi over Coca-Cola. For this

Coca-Cola must take some steps to overcome this problem.

3. Inventory Management

At present Coca-Cola is not able to meet demand at peak season. This is not

because of the inadequate concentrate or raw materials, but mainly because there

is a high deletion rate of the bottles that need to be recovered.

Bottles recovery is primarily the responsibility of the vendors but most vendors

take too much time to get this done.

In the peak season it is very necessary to increase recovery of empty bottles

through incentives for the resellers which would offset of costs of a loss of lessors

sales in the peak season if these bottles were not otherwise available.

4. Staff Interpersonal Relationship

In MAKK Beverages senior staff and junior staff have a very formal and distant

relationship. Motivation is rarely practiced and achievements by junior staff are

rarely acknowledged.

New appointees are directly sent to start their jobs with no training and advice.

And then they are held accountable for their failures. Moreover new staff are

viewed by senior staff as an opportunity to reduce their work load by increasing

the work load of the junior who may be inadequately prepared for it.

In this environment delegation is not conclusive because work comes to a stand

still when senior staff are not present because they are afraid to make decisions. A

concerted effort is required so that upper management values the input and

potential of new employees.

5. Staff Oriented Measures

The staff of Coca-Cola can be improved and there are a great deal of problems

that stem from this part of the organization.

There is no MBA on the staff and most of them have either done their

intermediate or are simple graduate. The staff at present are not able to carry out a

well managed planning function. They rely upon institution and past experience.



The staff approach to employees is personal one as opposed to a system based

programme that would have clear standards and objectives stated. Motivation in

the organization is also curbed because of the lack of a clear policy for upward

mobility into management from sales.

6. Increase Transport Facilities

At present Coca-Cola has only two trucks and several pickups at its disposal to

cover demand for its products in N.W.F.P.

Whenever demand increases Coca-Cola make a contract to commercial

transporters. This process brings with it a new set of problems. First thing,

commercial transporters are not very punctual. Second, driving a truck with

fragile cargo requires special technique that commercial transporters do not have

and because of this Coca-Cola products get damaged.

Increasing the transportation facilities can reduce these problems.

7. Computerized Divisions

At present only the accounting department is computerized.

MAKK Beverages and Mineral Water (Pvt) Ltd. would benefit from added

computerization in other areas because it would improve inventory management

and bottle tracking system.

Whenever information is required presently a tedious manual process is used that

requires compiling from data entry source books.

Computerizing many manual data entry source books would not only save time

but would also give efficiency to the decision making function.



CHAPTER – 7

ACTION/IMPLEMENTATION PLAN

Coca-Cola is a multinational company. The Coca-Cola is rich with history since

1886. The company has been working to refresh people every where through their

beverages.

The Coca-Cola system has more than 16 million customer around the world that

sell or sever its product directly to consumer and there are nearly six billion

people in the world who are potential consumer of Coca-Cola Company products.

The Coca-Cola is the market leader in soft drink and have a good market share in

the world market because they sell their product in more than (170) countries and

have a good image in the world market.

But in Pakistan the case is quite different. In Pakistan the Pepsi is the market

leader and they are getting more revenue from that market and have a good

market share. The market share of Pepsi is 60%. While the market share of Coca-

Cola is 40% there is a beg difference in the market share. Both the product are

same. But what make the difference that Pepsi has a better market share than

Coca-Cola.

After my recommendation which is the following.

1. Advertising

2. Financial Support to re-seller

3. Inventory Management

4. Staff interpersonal relation

5. Staff oriented measures

6. Increase transport facilities

7. Computerized divisions.

I take one of the aspect which is staff oriented measures and make an action plan

for Coca-Cola MAKK beverage (Pvt.) Ltd.



7.1 Staff Oriented Measures

The staff of Coca-Cola can be improved and there are a great deal of problem that

stem from this part of organization.

There is no MBA in the staff and most of them have either done their

intermediate or simple graduate. The staff at present are not able to carry out a

well managed planning function. They rely upon institution and past experience.

The staff approach to employee’s is personal one as opposed to system used

program that would have clear standard and objective stated. Motivation in the

organization is also curbed because of lack of clear policy for upward mobility

into management from sales.

How we can achieve our organization object to be the market leader like the rest

of the world. The Coca-Cola achieve its mission. We are not ensures that we have

the right number and kind of people in right places at the right time, capable of

effectively and efficiently completing these task that will help organization to

achieve its overall objectives.

MAY Action Plan is that how the Coca-Cola company can improve its staff

oriented measures.

These are the following steps;

In MAKK beverages there is human resource management department. But are

not capable, they are not so much qualified, but they only used their experience,

they do not know about the procedure of job analysis, job description, job

specification, about the recruitment, about H.R.M. planning, development

function. So how they can hire a qualified person.

H.R.M.

H.R.M. is the part of organization that concerned with people dimension. Because

every organization is comprised of people acquiring their services developing

their skill motivating them to high levels of performance and ensuring that they

continue to maintain their commitment to organization are essential to achieving

organizational objective.



Step – 1 “Human Resource Planning)

The first step of Coca-Cola MAKK beverages will be the human resource

planning. The process by which they ensures that they have the right number and

kind of people in the right place, at the right time, capable of effectively and

efficiently completing those taste that will help the organization to achieve its

overall objectives.

Step – 2 “Job Analysis”

After the human resource planning we need job analysis. A job analysis is a

systematic exploration of activities with in a job. It is a technical procedure, one

that is used to define the duties, responsibilities and accountabilities of a job. This

analysis involves the identification and description of what is happening on the

job, accurately and precisely identifying the required task, the knowledge and the

skill necessary for performing them and the condition under which they must be

performed now and in the future.

Step – 3 “Job Description”

After the job analysis we further proceed to the next step which is job description.

A job description will be in written statement of what the job holder does, how it

is done, under which condition it is done and why it is done. It should accurately

portray job content, environment and condition of employment.

Step – 4 “Job Specification”

In job specification the minimum acceptable qualification will be MBA (Mkt)

because we need marketing people for organization Coca-Cola MAKK beverage.

Step – 5 “Recruitment and Selection”

1. After all the process the final step is the recruitment of those people who

apply for the job. Recruitment is the discovering of potential candidates

for actual or anticipated organizational vacancies.

2. Goal of Recruiting: The goal of recruiting is to communicate the position

in such way that job seekers respond. The more application received the



better the recruiter’s chances for finding an individuals who is best suited

to the job requirement. So for this purpose we provide enough information

about the job so that unqualified applicant can self selected themselves out

of job condidacy.

3. Recruitment Sources: There are many sources of recruitment bit we only

used the advertisement source and our advertisement source will be print

media. Those newspaper who have a good image in Pakistan and the

people read it regularly.

Like, the newspaper, Dawn.

The Nation, The News.

Job Opportunity

The Coca-Cola Company MAKK beverages (Pvt) Ltd. Located in Peshawar

required the services of suitable, energetic candidates for the following position.

Posts Qualification / Experience

Market Manager MBA Marketing

Sales Manager MBA Marketing

Production Manager MBA Marketing

Finance Manager MBA Finance

Factory Manager MBA Marketing

Experience: Minimum two years: Age not more than 35 years.

Fringe benefits and handsome package will be offered for only eligible

candidates.

Apply in confidence with detail CV and last latest photograph.

On the following address Coca-Cola MAKK beverage and Mineral Water (Pvt)

Ltd. Peshawar.

Selection Process

After the advertisement, those candidates who apply for the job should be selected

in the following form.



1. Initial screening

2. Completing the applicant form

3. Employment test

4. Comprehensive interview

5. Background investigation

6. Medical and Physical Examination

7. The job offer

Development Function

The function of H.R.M. concerned with preparing employees to work effectively

and efficiently in the organization.

Training

A learning experience that seeks a relatively permanent change in an individual

that will improve his or her ability to perform on the job.

Training Method

We used off the job training for our employees. It cover a number of techniques;

1. Classroom lectures

2. Films demonstration

3. Case studies

4. Seminar

5. Conferences

Motivation

When the employee of a organization is motivate. So they can work hard to

achieve the organization objective.

Motivation begins with an unsatisfied need. The unsatisfied needs are any thing

that we desire of which we are deprived and this unsatisfied need create tension

and to reduce the tension they do some effort to satisfied it and the tension is

reduce.

So what are the needs which unsatisfied a person.



Some employees needs are the following.

1. Challenging work

2. Recognition for good work

3. Being part of what’s going on

4. Job security

5. Good wages

6. Promotion and growth opportunities

7. Good work Environment

If some of these need are satisfied the employee are motivated and we can achieve

our objective. Because it is employee of that organization which work effectively

and efficiently to make the organization the best.

Reward

The two types of rewards;

1. Intrinsic reward

2. Extrinsic reward

1. Intrinsic reward are the satisfaction one gets from the job itself. These

satisfaction are self-initiated reward. Such as having pride in one’s work,

having feeling of accomplishment or being a part of team.

2. Extrinsic Reward. It include money, promotion and benefit.

So if MAKK beverage concentrate on all these activities. So the employee

turn over will be less, and the employee must be loyal to the company, and

in this way they can beat the Pepsi and get the leadership of the market,

and achieve it over all objective of good market share, more revenue and

good image which they lost in the last few year.



QUESTIONNAIRE

Pepsi & Coca-Cola

Name: _____________________

Age: _____________________

Sex: _____________________

Father’s Income (per month): _____________________

Pocket Money (per month): _____________________

Encircle the correct answer

1. Among the following cold drinks, which one will you prefer to buy.

a. 7UP

b. Coca-Cola

c. Pepsi

d. Mirinda

e. Any other _____________________

2. Suppose if there are only two cold drinks in the market you will buy.

a. Pepsi

b. Coca-Cola

3. You will prefer to buy

a. Liter bottles

b. Cans

c. Disposable bottles

d. Normal bottle / 250 ml

4. You will prefer to buy this bottle because

a. Price is low

b. Quality is better

c. It is more strong

d. It is easy to handle

e. The drink is better



f. The taste is better

5. In Normal Routine you buy.

a. Liter Bottles

b. Disposable bottle

c. Cans

d. Normal bottles

The reason of buying this product

a. Price is low

b. Taste is better

c. The drink is more safe

6. You buy your brand (Pepsi / Coca) because

a. It is easily available

b. It is more popular

c. You like it without any reason

d. It is more sweet

e. It is more strong

7. Will you buy other cold drinks for a change?

Yes No If yes which one will you buy.

a. 7UP

b. Fanta

c. Miranda

d. Sprit

e. Any other

8. If price of your brand increases comparatively will you change the brand?

Yes No



If yes, you will buy the other brand (Pepsi / Coca-Cola) if its price increase by.

a. 10%

b. 20%

c. 30%

d. 40%

e. 50%

f. Any other __________________

9. Which cold drink is often used in your home

a. Pepsi

b. Sprit

c. 7UP

d. Coca-Cola

e. Any other

10. Your parents buy

a. Pepsi

b. Sprite

c. 7UP

d. Coca-Cola

e. Any other ____________

11. You like the advertisement of

a. Pepsi

b. Coca-Cola

c. None of them

d. You don’t remember

12. Can you differentiate between Pepsi and Coca-Cola by taste?

Yes No If yes, in your opinion your brand is better because

a. It is more strong

b. It is sweeter

c. Any other



13. Which one of the following cold drink is manufactured by Pepsi?

a. Sprite

b. Miranda

14. Which one of the following cold drink is manufactured by Coca-Cola.

a. Sprite

b. Miranda

15. NOTE: (Write the slogan for Coca-Cola and Pepsi like “Ask For More”)

a. What is the slogan of Pepsi?

___________________________________________

b. What is the slogan of Coca-Cola?

________________________________________

16. Have you seen any advertisement of your brand (Pepsi / Coca-Cola) on the

banners?

Yes No If yes mention its slogan

_________________________________

17. If prizes are offered in other brand, will you still buy you brand (Pepsi / Coca-

Cola).

Yes No 18. If your brand (Pepsi / Coca-Cola) is not easily available you will

a. Start buying imported cans of your favorite cold drink.

b. Switch to the opposite local brand.

c. You will stop drinking soft drinks.

19. If you don’t like a particular cricketer and the brand you like heavily

advertises him, do you think you will stop using your brand due to this reason.

Yes No 20. Your favorite cricketer are (Encircle 3 Answers)

a. Wasim Akram

b. Shahid Afridi



LIST OF PERSONS INTERVIEWED

- “Zahoor Ahmed”, o/s sales manager, Coca-Cola MAKK Beverages

(personal Interview), Peshawar, July 2001.

- “Zaman Khan” (Production Manager), Coca Cola MAKK Beverages

(personal Interviews), Peshawar, 28th July 2001.

- “Humayun Khan, “Marketing Manager, Coca Cola MAKK Beverages

Private Ltd. (personal Interviews), Peshawar, 19th August, 2001.

- “Zulfiqar Hussin” General Manager, Coca Cola MAKK Beverages (Pvt.)

Ltd.(personal Interviews), Peshawar, 16th August, 2001.

- “Rahim Khan”, Quality Manager, Coca Cola MAKK Beverages (Pvt.)

Ltd.(personal Interviews), Peshawar, 11th August, 2001.

- “Muhammad Ayaz Khan”, Personnel Manager, Coca Cola MAKK

Beverages (Pvt.) Ltd.(personal Interviews), Peshawar, 13th July, 2001.

- “Aqeel Niazi”, Sales Manager, Coca Cola MAKK Beverages (Pvt.) Ltd.

(personal Interviews), Rawalpindi, 17th August, 2001.

- “Noor Elahi”, Distributor of Coca Coal Products to Sales Depot. MAKK

Beverages (Pvt.) Ltd. (Personal Interview), Peshawar, August. 2001.



BIBLIOGRAPHY

1. Kotler, Philip, Marketing Management 9th ed. New Jersey; Prentice – Hall

International, 1997.

2. Stanton, William J. Marketing 11th ed. New York; McGraw-Hill

Companies, 1997.

3. Kotler, Philips., “Marketing Management”, 6th edition. New Delhi;

Prentice Hall of India, 1989.

4. William J. Stanton, Michall J. ETZEL, Bruce J. Walker, “Fundamental of

Marketing” 10th edition, U.S.A. McGraw-Hill, 1994.

5. F. JEROME Me Carethy William D. Perreault. Jr., “Essentials of

Marketing” fifth edition, U.S.A. IRWIN series in marketing, 1991.

6. Cateora Philip-R., “International Marketing” McGraw Hill International

U.S.A. 9th ed. 1999.



INTERNET SOURCES

1. www.pepsi.com[Accessed on 10th August 2002]

2. www.coca-cola.com

3. www. The Coca-Cola Company.com.

4. www.newsweek.com


http://www.newsweek.com/

http://www.coca-cola.com/