Reg No 10dkcma109

ORGANIZATION STUDY
AN INTERNSHIP REPORT TITLED ORGANISATION STUDY AT NECTAR BEVERAGES PVT. LTD.

ADJ.G.T.C Belgaum Road, P.B. No 205, KC Park, Dharwad 580008. India
Submitted in Partial Fulfillment of the Requirements of Bangalore University for the Award of the Degree of MASTER OF BUSINESS ADMINISTRATION For the academic year 2010-2012 SUBMITTED BY Vinod Raj C.U.M Reg. No: 10DKCMA109 Under the guidance of Mrs. Akhila R Udupa
SESHADRIPURAM INSTITUTE OF MANAGEMNENT STUDIES #26, YELAHANKA NEW TOWN, BANGALORE-560106 2010-2012
Seshadripuram Institute of Management Studies 1
ORGANIZATION STUDY
STUDENT DECLARATION
This is to declare that this Internship Project entitled An Organizational Study conducted at NECTAR BEVERAGES PVT. LTD. Dharwad is an original and bonafide work carried out by me in partial fulfillment of the requirement for the award of Masters Degree in Business Administration (MBA) course of Bangalore University, under the guidance of Mrs. Akhila R Udupa, lecturer of Seshadripuram Institute of Management Studies, Yelahanka, Bangalore.
Place: Bangalore Date:
Signature of the Student Reg No: 10DKCMA109
Seshadripuram Institute of Management Studies
ORGANIZATION STUDY
GUIDE CERTIFICATE
This is to certify that Mr. Vinod Raj C.U.M (Reg. No. 10DKCMA109) has completed Internship Project entitled An Organizational Study conducted At NECTAR BEVERAGES PVT. LTD. Dharwad.
This is an original and bonafide work carried out by the candidate under my guidance and does not form basis for the award of any other Degree/Diploma of Bangalore University or any other University.
Signature of guide
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Acknowledgement
It gives me immense pleasure in submitting this report on organization study to Bangalore University Bangalore, for fulfilling partial requirement of MBA course.Firstly, I take this opportunity to express my sincere thanks to Dr. M .Prakash Principle, Seshadripuram First Grade College, Yelahanka, Bangalore and Dr. D.K. Murhty, Director and all the faculty members of MBA Department, who have constantly motivated and guided through this fruitful endeavor. I extend my sincere thanks to Mr. R.A Bakale, external guide for showing interest in my study & guiding me tirelessly. I also express my deep sense of gratitude to my guide Mrs. Akhila R Udupa, for his valuable guidance during my internship project. I also extend words of thanks to my family members and friends for their support and wishes.
Vinod Raj C.U.M Reg No: 10DKCMA109
ORGANIZATION STUDY
CONTENTS
CHAPTER 1 2 3 4 LIST OF CONTENTS Economics scenario Industry analysis Company analysis Functional Analysis Production Department Marketing Department 36-53 54-61 PAGE NO. 1-7 8-10 11-35
Human Resource Department 62-69 Finance Department SWOT Analysis Summary of Finding, Suggestion & Conclusions Student Learning experience BIBLIOGRAPHY 70-76 77-78 79 80-81 82 83
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1. ECONOMIC SCENARIO OF INDIA
Overview Social democratic policies governed India's economy from 1947 to 1991. The economy was characterized by extensive regulation,
protectionism, public ownership, pervasive corruption and slow growth. Since 1991, continuing economic liberalization has moved the country towards a market-based economy. A revival of economic reforms and better economic policy in first decade of the 21st century accelerated India's economic growth rate. In recent years, Indian cities have continued to liberalize business regulations. By 2008, India had established itself as the world's second-fastest growing major economy. However, as a result of the financial crisis of 20072010, coupled with a poor monsoon, India's gross domestic product (GDP) growth rate significantly slowed to 6.7% in 200809, but subsequently recovered to 7.4% in 200910, while the fiscal deficit rose from 5.9% to a high 6.5% during the same period. Indias current account deficit surged to 4.1% of GDP during Q2 FY11 against 3.2% the previous quarter. The unemployment rate for 20092010, according to the state Labour Bureau, was 9.4% nationwide, rising to 10.1% in rural areas, where two-thirds of the 1.2 billion populations live. India's large service industry accounts for 57.2% of the country's GDP while the industrial and agricultural sectors contribute 28.6% and 14.6% respectively. Agriculture is the predominant occupation in India, accounting
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for about 52% of employment. The service sector makes up a further 34%, and industrial sector around 14%. However, statistics from a 2009-10 government survey, which used a smaller sample size than earlier surveys, suggested that the share of agriculture in employment had dropped to 45.5%. Major industries include telecommunications, textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, information technology-enabled services and pharmaceuticals. The labour force totals 500 million workers. Major agricultural products include rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes, cattle, sheep, goats, poultry and fish. In 2009-2010, India's top five trading partners are United Arab Emirates, China, United States, Saudi Arabia and Germany. Previously a closed economy, India's trade and business sector has grown fast. India currently accounts for 1.5% of world trade as of 2007 according to the World Trade Statistics of the WTO in 2006, which valued India's total merchandise trade (counting exports and imports) at $294 billion and India's services trade at $143 billion. Thus, India's global economic engagement in 2006 covering both merchandise and services trade was of the order of $437 billion, up by a record 72% from a level of $253 billion in 2004. India's total trade in goods and services has reached a share of 43% of GDP in 200506, up from 16% in 199091. India's total merchandise trade (counting exports and imports) stands at $ 606.7 billion and is currently the 11th largest in the world. The overall growth of Gross Domestic Product (GDP) at factor cost at constant prices, as per Advance Estimates, was 8.6 per cent in 201011 representing an increase from the revised growth of 8.0 per cent during
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2009-10, according to the Advance Estimate (AE) of Central Statistics Office (CSO). Overall growth in the Index of Industrial Production (IIP) was 3.6 per cent during February 2011. During April-February 2010-11, IIP growth was 7.8 per cent. The six core industries (comprising crude oil, petroleum refinery products, coal, electricity, cement and finished carbon steel) grew by 6.8 per cent in February 2011 as compared to the growth of 4.2 per cent in February 2010. During April-February 2010-11, these sectors grew by 5.7 per cent as compared to 5.4 per cent during April-February 2009-10. In addition, exports, in US dollar terms increased by 49.7 per cent and imports increased by 21.2 per cent, during February 2011. Indian economy is now attracting the attention of the people from all over the world. The financial condition of the country has shown significant development in the last few months and has become much stable these days. The Indian economic outlook 2011 also indicates that the financial condition of the country has become more stable in the recent years, yet inflation has been a significant problem. As per the reports, policy makers of the country have given a significant boost to the financial state of the country. They have brought development in the countrys financial state in exchange of the risks related to macro stability which resulted in the inflation. Inflation Rate in India According to the financial experts, the economic condition of the country has become stable and the GDP has also improved in the last few quarters. However, the high inflation rate has overshadowed the growth of the economy and that is the reason why many are considering that the economic condition of India is still unstable. As per the reports of Indian
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inflation rate 2011, the non-food inflation has come down to 7 percent this year. It was around 11 percent previously. Reports indicate that inflation rate has become a major cause of concern these days among the common men of the country. It has also raised the eyebrows of investors, too. Rising Rate of Unemployment in India Financial experts have implemented different measures for bringing stability in the inflationary condition of the country. They have also designed programs for boosting the overall economy of the country. As per the reports, the Indian unemployment rate 2011 has also remained a cause of concern among the people. The latest reports indicate that the unemployment rate of the country is at 9.4 percent this year which is quite high. According to the reports, forty million people are still unemployed in the country and more employment opportunities are required for balancing the condition. Indias GDP growth Rate Reports state that several industries have been developed in the country in the past few years and many have been included in the five years development plan for stabilizing the condition. With more financial stabilization plans introduced in the recent years, the overall economy of the country has received a boost. The Indian GDP growth at present is 9.1 percent which is also quite appreciating. Even though the gross domestic product has made a significant growth in the past months, the country needs to maintain a strict growth for emerging as an advanced economy. Recent performance: Real GDP growth slowed to 8.2% y/y in Q4-10, bringing overall growth in 2010 to 8.6%. On a seasonally adjusted basis however, real GDP
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fell 2.1% an annualized rate from 15.5% in Q3.Despite a greater contribution from net trade, a decline in government spending and a sharp slowdown in investment took the momentum out of the Indian economy. Across sectors, the slowdown was widespread, with only agriculture and finance showing a pick-up in growth. Industrial activity stood at a near standstill in Q4, rising 0.2% q/q, as spending on capital goods and intermediate goods fell. Consumption spending rose slightly but remains well below potential, expanding 0.4% q/q. Fiscal policy: Plagued by various scandals, the government presented a budget for FY2011/2012 that is weak on reforms and consolidation. At the same time, the government has maintained or increased a number of populist measures, such as price subsidies on sensitive items as well as the rural workers guaranteed employment program. The forecasted improvements over the next 2 years rely on optimistic growth assumptions and improvements in tax collection, as well as the capacity to contain spending within the allocated budget. On the positive side, the budget reinforces the governments commitment to infrastructure and education development and highlights some progress in key changes in the tax systems (direct and consumer taxes), both of which are impediments to unlocki ng Indias growth potential. As a share of GDP, the Central government deficit is expected to reach 4.6% of GDP in FY2011/2012 (excluding off-budget food, fuel and fertilizer price subsidies and the deficits of state governments), from 5.1% in FY2010/2011. Monetary policy: After a lull in Q4, inflationary pressures picked up again early in 2011, pushing the Reserve Bank of India (RBI, the central bank) to return to a
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tightening stance, raising interest rates by 25 basis points for the repo and reverse repo early in 2011. The move was prompted not only by resilient inflation pressures, with inflation remaining stubbornly high at 8.2% for both the CPI and WPI in January, but also strong demand for credit, which accelerated to 22.5% y/y in December from 18.2% in November. While the increase in prices is partly driven by food shortages, the ramping up of M2 growth and non-food inflation since are also of concerns. As such, additional tightening is expected early in the year. External sector: Despite strong export growth and remittances inflows, the current account balance continued to expand as a share of GDP in Q3, rising to 4.3%. In Q4 however, the trade surplus shrank to US$21.3 billion in Q4, after averaging over US$30 billion in the first 3 quarters of the year, driven by resurging exports, up 28.4% y/y, and a sharp slowdown in imports, up 1.8% y/y, a sign of the slowing economy. With rising oil prices and the capital account vulnerable to outflows, the balance of payment and rupee are expected to weaken in 2011. However, the level of foreign exchange reserves remains stable at US$274 billion, up from US$254 billion in May 2010, and sufficient to cover 7 months of current account debit. Outlook: The lagged impact of monetary tightening and the pullout of fiscal stimulus will slow real GDP growth to 8.2% in 2011 from 8.6% last year. While infrastructure spending will accelerate, tighter credit conditions will result in a slowdown of private sector activity. Of concern for the mediumlong term business environment are the current corruption scandals, such as those of the Commonwealth Games and the 2G licenses, that have engulfed
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the Indian Parliament, putting the reform agenda on the sideline for the moment.
Indian economic and policy highlights Domestic car sales in India declined 16% (y-o-y) in Jul11 the sharpest decline since Nov08 in the midst of the global financial crisis. The decline is attributed to higher interest rates and fuel prices. However, the industry body expects a revival from this month, driven by a flurry of new car launches and resumption of full production at Maruti Suzuki. Indias industrial output grew by 8.8% (y-o-y) in June11 primarily on account of a huge 37.7% (y-o-y) growth in capital goods production (which is known for its lumpiness). However, excluding this sector, the industrial growth has weakened to 4.0% (y-o-y) in June11 partly reflecting the impact of sustained monetary tightening on consumer goods growth that has slowed to 1.6% (y-o-y) this month. Indias gross direct tax collections were up by 26.63% (y-o-y), during April-July, 2011 to Rs 1,325.42 bln on account of healthy collections from both corporate and personal income taxes. Indias exports have registered a growth of 81.8% (y-o-y) during Jul11 to USD 29.3 bln, on account of good performance by sectors like petrochemical products, gems & jewelers and electronics. The FDI into India rose over four times in June11 to reach USD 5.65 bln versus USD 1.38 bln a year ago. The FDI into India is expected to cross USD 35 bln in FY12 as against USD 19.4 bln in the previous year on account of major deals between the Reliance group and British Petroleum.
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Indian Banking Industrys Non-Food Credit grew by Rs 571.14 bln over end- March11 until July 29th, reflecting a slight moderation in y-o-y growth to 18.2%..
2. INDUSTRY PROFILE
A. INTRODUCTION When we feel thirst we feel like drinking water and we drink it. Based on this concept some developments were taken in beverages industries i.e., Coffee, Tea, Soft drinks, etc., all come under beverage industry. Now, we will look towards the meaning of the soft drink, growth of soft drink and major players of soft drink. Meaning of soft Drink: Soft drink (also referred to as soda, pop, soda pop, coke or fizzy drink)' is a non-alcoholic beverage typically containing water and a flavoring agent. Soft drink can be mainly divided into two groups namely: 1. Carbonated: Carbonated drinks are those, which contain Carbon Di Oxide. Examples: Cola, Mirinda, 7 -Up, Sprite, Thumps up etc. 2. Non-carbonated: Non Carbonated drinks are those, which don't contain Carbon di-Oxide. Examples: Mango drinks (Slice, Maaza etc) The soft drink is known by various names in different countries with different meaning such as in US it is called as soda, cola, and coke. In Florida, mid west California is known as Soda. In Atlanta it is known as coke. In UK, it's called as fizzy drink, pop B. HISTORY:
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Soft drinks trace their history back to the mineral waters found in natural springs. Ancient societies believed that bathing in natural springs and/or drinking mineral waters could cure many diseases. The earliest soft drinks were sherbets developed by Arabic chemists and originally served in the medieval Near East. "Alkaline Substances", "A kind of Saltwort" from which soda is obtained, probably from Arabic suwwad, the name of a variety of saltwort exported from North Africa to Sicily in the Middle Ages, related to sawed "black," the color of the plant. These were juiced soft drinks made of crushed fruit, herbs, or flower. From around 1265, a popular drink known as Dandelion & Burdock appeared in England, made from fermented dandelion (Taraxacum officinal) and burdock (Actium lappa) roots, and is naturally carbonated. The drink (similar to sarsaparilla) is still available today, but is made with flavorings and carbonated water, since the safrole in the original recipe was found to be carcinogenic. The first marketed soft drinks (non-carbonated) in the Western world appeared in the 17th century. They were made from water and lemon juice sweetened with honey. In 1676, the Compagnie des Limonadiers of Paris was granted a monopoly for the sale of lemonade soft drinks. Vendors carried tanks of lemonade on their backs and dispensed cups of the soft drink to thirsty Parisians. C. MAJOR PLAYER & MARKET SHARE Market segment of soft drink on the basis of types of product: Market share of Carbonated & Non Carbonated Soft drinks: Type Carbonated Non carbonated Market Share 55.2% 44.8% Example Pepsi, Coca- Cola, Thumps Up Orange, Cloudy Lime Clear Lir
Major players of soft drinks:

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1. Pepsi company 2. Coca cola company 3. Cadbury Schweppes
Market Share of soft drink industry in India. S.NO 1 2 3 4 COMPANY Coke Pepsi Cadbury Schweppes local manufactures PERCENTAGE 43.5 31.9 14.6 10
Major soft drinks in the Indian Market. PEPSI CO. 1. Pepsi 2. 7 up 3. Slice 4. Mirinda (Orange) 5. Mirinda (lemon) 6. Lehar soda 7. Teem Soda 8. Mountain dew 9. Aquafina (water) 1. 2. 3. 4. 5. 6. 7. COKE CO. Coca Cola Thumps up Maaza Fanta Limca Kinley (water) Sprite
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3. COMPANYANALYSIS
ORIGIN OF PEPSICO The business began to grow, and on 16th June, 1903, "PEPSICOLA", was officially registered with the U.S. patent office. That year, Caleb sold 7,968 gallons of syrups, using the line "Exhilarating, Invigorating, Aids Deletion". He also began awarding franchise to bottle to Pepsi to independent investors, whose number grew from just two in 1905 in the cities of Charlotte and Durham, North Carolina, then 15 the following year, and 40 by 1910, there were Pepsi-cola Building a strong franchise system was one of Caleb's greatest achievements. Local Pepsi-cola bottles, entrepreneurial in spirit and dedicated to the products success, provided a study foundation. They were the cornerstones of the Pepsi-Cola enterprise. By 1907, the new company was selling more than 100,000 gallons of syrups per year.
Growth was phenomenal, and in 1909 Caleb established a head quarter that the town of New Bern pictured it on a postcard. Famous racing car driver Barney Old-field endorsed Pepsi in newspapers ads as "A Bully
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Drink refreshing, invigorating, a fine bracer a race" The previous year, Pepsi had been one of the first companies in the United States to switch from Horse-Drawn transport to motor vehicles, and Caleb's business expertise captured widespread attention. He was even mentioned as a possible candidate for governor in 1913 editorial in the Greensboro Patriot praised him for his "keen and energetic business sense". Pepsi cola's first bottling line resulted from some less than sophisticated engineering in the back room of Caleb's pharmacy. After five owners and 15 unprofitable years, Pepsi-Cola was once again a thriving national band.
Pepsi-Colas first bottling line resulted from some less-than-sophisticated engineering in the back room of Calebs pharmacy.
GROWTH OF PEPSICO: Times were tough and five cents was a lot to pay for a soft drink. So Guth decided to make Pepsi-Cola an even more attractive value for hardpressed consumers. In Baltimore, Pepsi began selling a 12-ounce bottle of cola for just a nickel twice as much refreshment as soft drinks, for the same price. Consumers responded immediately, and Guth expanded the idea throughout the Pepsi-Cola system. Very shortly, Pepsi-Cola was once again a healthy company, growing more strongly than ever. During the 1930's
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international expansion began in earnest. The trademark was registered in Latin America and the Soviet Union, and franchises were awarded in Canada.
PepsiCo India PepsiCo entered India in 1989 and has grown to become one of the country's leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. PepsiCo India and its partners have invested more than U.S.$1 billion since the company was established in the country. PepsiCo provides direct and indirect employment to 150,000 people including suppliers and distributors. PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PepsiCo India's expansive portfolio includes iconic refreshment beverages Pepsi, 7UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks Tropicana Nectars, Tropicana Twister and Slice. Local brands - Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands. PepsiCo's foods company, Frito-Lay, is the leader in the branded salty snack market & all Frito Lay products are free of fat & MSG. It manufactures Lay's Potato Chips; Cheetos extruded snacks, Uncle Chips & traditional snacks under the Kurkure & Lehar brands. The company's high fibre breakfast cereal, Quaker Oats, & low fat & roasted snack options enhance the healthful choices available to consumers. Frito Lay's core
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products, Lay's, Kurkure, Uncle Chips & Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats & all of its products contain voluntary nutritional labeling on their packets. The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCo's Frito Lay foods division has 3 state-of-the-art plants. PepsiCo's business is based on its sustainability vision of making tomorrow better than today. PepsiCo's commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers. About the Pepsi-Cola Company: The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So a young pharmacist named Caleb Bradham began experimenting with combinations of spices, juices, and syrups trying to create a refreshing new drink to serve his customers. He succeeded beyond all expectations because he invented the beverage known around the world as Pepsi-Cola. Pepsi-Cola was so popular that Caleb Bradham could hardly take time away from his soda fountain customers to pose for this picture.
CALEB BRADHAM Caleb Braham knew that to keep people returning to his pharmacy, he would have to turn it into a gathering place. He did so by concocting his own special beverage, soft drink. His creation, a unique mixture of kola nut
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extract, vanilla and rare oils, became so popular his customers named it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and advertised his new soft drink. In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and sold it exclusively through soda fountains. But soon Caleb recognized that a greater opportunity existed to bottle Pepsi so that people could drink it anywhere. The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially steered with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line "Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to bottle Pepsi to independent investors, whose number grew from just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by 1907. By the end of 1910, there were Pepsi-Cola franchises in 24 states. Pepsi-Co la's first bottling line resulted from some less-than-sophisticated engineering in the back room of Caleb's pharmacy. Building a strong franchise system was one of Caleb's greatest achievements. Local Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to the product's success, provided a sturdy foundation. They were the cornerstone of the Pepsi-Cola enterprise. Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the town of New Bern- pictured it on a postcard. Famous racing car driver Barney Oldfield endorsed Pepsi in newspaper ads as "A bully drink refreshing, invigorating, and a fine bracer before a race. The previous year, Pepsi had been one of the first companies in the United States to switch from horse-drawn transport to motor vehicles, and Caleb's business expertise captured widespread attention. He was even mentioned as a possible candidate for Governor. A 1913 editorial in the
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Greensboro Patriot praised him for his energetic business sense. Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with the slogan, "Drink Pepsi-Cola. It will satisfy you." Then came World War I, and the cost of doing business increased drastically. Sugar prices see sawed between record highs and disastrous lows, and so did the price of producing Pepsi-Cola. Caleb was forced into a series of business gambles just to survive, until finally, after three exhaustion; luck ran out and he was bankrupted. By 1921, only two plants It wasn't until a successful candy manufacturer, Charles G. Guth, appeared on the scene that the future of Pepsi-Cola was assured. Guth was president of Loft Incorporated, a large chain of candy stores and soda fountains along the eastern seaboard. He saw Pepsi-Cola as an opportunity to discontinue an unsatisfactory business relationship with the Coca-Cola Company, and at the same time to add an attractive drawing card to Loft's soda fountains. He was right. After five owners and 15 unprofitable years, PepsiCola was once again a thriving national brand.
PepsiCo Mission: PepsiCo's overall mission is to increase the value of our shareholder's investment. We do this trough sales growth, cost control and wise investment of resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and
environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity. This page focuses on the soft drink industry, and two of its major competitors; Pepsi and Coca-cola. This page will take an in depth view at the structure these two companies have and how they are influenced by each
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other.
Pepsi-Cola Beverages: PepsiCo's beverage business was founded 1898 by Caleb Bradham, a New Bern, Noijth Carolina druggist, who first formulated Pepsi-Cola. Today, Brand Pepsi is part of a portfolio of beverage brands that includes carbonated soft drinks, juices and juice drinks, ready-to-drink teas and coffee drinks, isotonic sports drinks, bottled water and enhanced waters. PBNA has well-known brand such as Mountain Dew, Diet Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water, Sierra Mist, Mug, Tropicana juice drinks, Propel, So be, Slice, Dole, Tropicana Twister and Tropicana Season's Best. PBNA manufactures and sells concentrate for some of these brands to licensed bottlers, who sell .the branded products to independent distributors and retailers. PBNA provides advertising, marketing, sales and promotional support for its brands. This includes some of the world's bestloved and most-recognized advertising. In 1992 PBNA formed a partnership with Thomas J. Lipton Co. to selling ready-to- drink tea brands in the United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffee through a partnership with Starbucks. Gatorade & Tropicana: Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging business. In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time, consumers could enjoy the fresh taste of pure not-from-concentrate 100% Florida orange juice in a ready-to-serve package. The juice, Tropicana Pure Premium, became the; company's
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flagship product. PepsiCo acquired Tropicana, including the Dole juice business, in August 1998. So be became a part of PBNA in 2001. So be manufactures and markets an innovative line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages with herbal ingredients. Gatorade thirst quencher sport drinks were acquired by The Quaker Oats Company in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink. Created in 1965 by researchers at the University of Florida for the school's football team, "The Gators," Gatorade is now the world's leading sport's drink. PepsiCo Beverages North America includes the United States and Canada Pepsi-Cola began selling its products outside the United States and Canada in the midl-1930s, opening in the United Kingdom in 1936. Operations grew rapidly beginning in the 1950s. Today, PepsiCo, beverages are available in more than 170 countries and territories. Brands include Aquafina, Gatorade and Tropicana. In addition to brands marketed in the United States, PepsiCo International brands include Mirinda, Seven-Up and many local brands. PepsiCo began its international snack food operations in 1966. Today, products are available in nearly 170 countries. Often PepsiCo snack food products are known by local names. Quaker Foods: The Quaker Oats Company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William Heston had established the Quaker Mill Company. The figure in Quaker clothes became the first registered trademark for breakfast cereal and remains the hallmark for Quaker Oats today.
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In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner, George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher, known as "The Oatmeal King," had founded Gennan Mills American Oatmeal Company in 1856. Combining The Quaker Mill Company with the Stuart and Schumacher businesses brought together the top oats milling expertise in the country as The Quaker Oats Company. The first major acquisition of the company was Aunt Jemima Mills Company in 1926, which is today the leading manufacturer of pancake mixes and syrup. Gatorade was acquired in 1983. In 1986, The Quaker Oats Company acquired the Golden Grain Company; pi Rice-A. Roni. PepsiCo merged with The Quaker Oats Company in 2001.
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Brands: Pepsi brands Year of Introduction Pepsi-Cola Pepsi-Cola 1898
7 up Squirt Wink Mug root beer Diet squirt Patio Teem Diet Pepsi Mountain Dew Diet 7 up Pepsi Light Diet Pepsi free Slice Cherry Pepsi (Canada) Cherry Cola Slice Diet Cherry Cola Shce Citrus7 Cherry 7 up Caffeine free Pepsi 7 up Gold Pepsi AM Pepsi's Wild Bunch
7up 7up 7up Pepsi-Cola 7 up Pepsi-Cola Pepsi-Cola Pepsi-Cola Pepsi-Cola 7up Pepsi-Cola Pepsi-Cola Pepsi-Cola Pepsi-Cola Pepsi-Cola Pepsi-Cola 7 up 7 up Pepsi-Cola 7 up Pepsi-Cola Pepsi-Cola
1929 1938 1947 1950 1961 1963 1963 1964 1964 1970 1975 1982 1984 1985 1986 1986 1986 1987 1987 1988 1989 1991
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PYASS HAl BADI YE DIL MANGE MORE HAVE A PEPSI DAY THE GENERATION NEX PEPSI NOTHING OFFICIAL ABOUT IT THE CHOICE OF NEW GENERATION YOU GOT THE RIGHT ONE BABY A GENERATION AHEAD NOTHING ELSE IS A PEPSI NOTHING OFFICIAL ABOUT IT CHANGE THE GAME YAANGISTAN A tale of PepsiCo's Strategy and Structure: Pepsi Co. And the coca-cola Company is to of the largest and oldest archrivals in the carbonated soft drinks industry. The war between the soda giants, also known as the "cola wars", initiated in the 1960s when Coca-Cola dominance was being increasingly challenged by Pepsi-Cola. The competitive environment between the rivals was intense and well publicized, forcing the Pepsi Company to continuously establish and implement strategic changes as a means to create a competitive advantage. Furthermore both Pepsi and coke offered a limited number of products that "looked the same, tasted the same, and bubble into foam the same "thus, questioning whether further substantial growth in sales was possible. Rather than succumbing to the impending maturation of its domestic market, the Pepsi company as a leader, fostered by the competitive intensity, launched new strategies, such as product modifications, new forms - of pricing and promotion, and fundamental changes in its distribution system, that have led to rapid and continued expansion of the company's domestic sales. By forecasting and responding to changes in the
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economic, political, social, and technological environment, Pepsi has successfully innovated in marketing, distribution, and product development. The soda rivalry also initiated Pepsi Company to seek international markets and diversification strategies in order to increase its sales growth. "To be the World's Premier Consumer Products Company focused of convenient foods and beverages. In everything we do we strive for honesty fairness and integrity". PepsiCo is a world leader in convenient foods and beverages, with 2004 revenues of more than $29 billion and 153,000 employees. The company consists of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo international and Quaker Foods North Ame11ca. PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $78 billion Many of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay, Tropicana was acquired in 1998 and PepsiCo merged with the Quaker oats company, including Gatorade, in 2001. PepsiCo offers product choices to meet a broad variety of needs and preference from fun for-you items to product choices that contribute to healthier life styles. PepsiCo is among the world's largest food and beverage companies. Our businesses include: Frito-Lay, the world's largest manufacturer and distributor of snack Pepsi-Cola, the world's second largest beverage company; Tropicana, the world's largest marketer and producer of branded juices; Gatorade, the world's leading sports drink and Quaker, a leading manufacturer and marketer of cereals, rice and pasta and other grain based products. PepsiCo brand names are among the best known and our operations reach every comer of the world. As a consumer products
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company, and important environmental challenge facing all our divisions is the packing generated by our products, packaging is important to public health and safety and is critical component of the destitution system that delivers products to consumers and commercial establishments. To meet these needs and safeguard-the environment, we follow the Environmental Protection Agency's (EPA) approach of Reduce, reuse and recycle. Each business also strives to be responsible in its use of resources in manufacturing and distributing our products. This report covers our environmental commitment, the principles we follow, and progress at each of our businesses.
PepsiCo's Environmental commitment PepsiCo is committed to providing safe and healthy work environments and to being an environmentally responsible corporate citizen. It is our policy to comply with all applicable environmental, safety and health laws and regulations. We believe that protecting the environment is an important part of good corporate citizenship. We are committed to minimizing the impact of our businesses on the environment with methods that are socially responsible, scientifically based and economically sound. We encourage conservation, recycling and energy use programs that promote clean air and water and reduce land fill waste. PepsiCo World Wide code of conduct. Shareholders: PepsiCo (symbol: PEP) shares are traded principally of the New York stock exchange in the United States. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded.
Corporate Citizenship:
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At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute to the quality of life in our communities. This philosophy is expressed in our sustainability vision which states: "PepsiCo's responsibility is to continually improve all aspects of the world in which we operate- environment, social, economic-creating a better tomorrow than today". Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and commitment to builds shareholder value by making PepsiCo a truly sustainable company. PepsiCo Headquarters: PepsiCo world headquarter is located in New York City. Edward Durrell Stone, one of America's foremost architects, designed the sevenbuilding headquarters complex. The building occupies 10 acres of a 144 acre complex that includes: he Donald M. Kendall sculpture Gardens, a world-acclaimed sculpture collection in a garden setting. The collection of works is focused on major twentieth century art, and features works by masters such as Augusta Robin, Henri Laurens, Henry Moore, Alexander Calder, Albelio Giacometti, Arnaldo Pomodoro and claes Oldenburg, the gardens originally were designed by the world famous garden planner, Russell Page, and have been extended by Francois Goff net. The grounds are open to the public, and a visitor's booth is in operation during the spring and summer. Recycle: All Pepsi-Cola containers are designed for easy recycling and more than half recycled, making soft drink containers the most recycled packaging in the United States. Pepsi-Cola is working with suppliers and bottlers to develop a PET (poly eth eneterephthalate) bottle that contains 10% recycled content. PepsiCola PE plastic bottles will include 10% recycled content by 2010. We
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are current!; conducting tests with suppliers on the safety of 20 ounce and 2 liter plastic bottle containing various recycled resins. We are developing a sensory protocol fcj Pepsi-Cola bottles containing recycled plastics. In the United States, 48 million Pepsi-Cola aluminum cans are recycled each day] In Canada, over 50% of soft drink containers are recycled', and this continues I rise. Over the years Pepsi-Cola has made the plastic PET bottles more easily recyclable in the United States, Canada Europe and elsewhere. PepsiCol] eliminated base cups in most markets, switched to polypropylene caps instead (aluminum metal caps, and paper contamination. In U.S. and Canadian bottling plants, packages damaged during filling collected and recycled glass, plastic and aluminum. Many plants also recycle] used packaging from incoming materials corrugated packages, straps front pallets, etc. This has reduced plant waste by 50%-75% avoiding disposal costs and land filling. Pepsi-Cola established one of the first programs in the country to collect and recycle the plastic ring connectors from six packs. Since then the company has established similar programs with its supplier, Hircine, at over 10,000 schools across the country. Many of the Pepsi-Cola bottling partners have established programs to recycle ring connectors collected after filling vending machines with cans. And if some consumers do litter, North American ring connectors are photo degradable and have a "breakaway" pull tab so they can be easily separated, minimizing any impact on wildlife.
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ORGANIZATION STRUCTURE
CLASSIFICATION OF EMPLOYEES
The company human resources, which includes the manpower available in the entire organization.
The company (NBPL) divided its human resource in to: 1. Technical Staff: Company classifies employees working in production department where many activities related to technical are done. Such as filling and making of pet bottle section. 2. Non - Technical staff: Company also has non - technical staff in security department, dispatch section and workers in garden etc.
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3. Administrative staff: Nectar Beverages also have the staff to administrate the company. Every department has the head of the department; the H.O.D Staff makes decision in the company after having discussion with the subordinates.
Total Manpower of Nectar Beverages Pvt. Ltd: CEO Managers Executives Staff Permanent workers Temporary workers (season) 01 05 32 09 169 70
Company also takes temporary workers during the season that is summer season it takes up to 120 workers and during non-season it recruits only 30 workers to meet manpower requirement. RECRUITMENT Recruitment is nothing but searching and obtaining potential candidates in sufficient number and quality and stimulates them to apply for job, so that organization can select the most appropriate people to fill its job needed. There are two sources of recruitment namely internal and external sources of recruitment it only follows externals recruitment, such as 1. Casual callers: 2. Placement Consultants: 3. Employment Exchanges officers: 4. News Paper Advertisement:
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PROMOTER OF NECTAR BEVERAGES: 1. Shri. S. K. Jaipuria 2. Shri R. K. Jaipurai 3. Shri. Gandhi 4. Shri. P. U. Devasai
INDRA NOOYI CEO, PEPSICOLA, INDIA SIZE OF LAND & BUILDING: (7). INFRASTRUCTURAL FACILITIES: Nectar Beverages Pvt. Ltd. is located in outskirts of Dharwad, near to Agricultural University. It is having 2.65 acres area, with good transportation facility. Company is having suitable buildings for Production & Administration. Production building also has Quality Control Department & Administration building has different Departments like H.R, Finance, Sales & Marketing. As there is no water supply at correct & constant time they have their own water plant which supplies clean water which is also treated for safety thereafter. They have much machinery made up of stainless steel which provides good quality products. In order to meet the increasing demand for soft drinks in Karnataka enhanced production capacity has been installed. To overcome the chronic problem of electricity failure the company has installed a generator with enhanced power capacity of 320 KVA. The company is geared up with all necessary changes as suggested by the principal's technical and quality team to fall in line with the international standards. In case the unit has already received a green signal for manufacturing
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International Brands of Pepsi Cola in the said plant. BRANCHES OF N.B.PVT.LTD. : No branches PRODUCTS PRODUCED AT N.B.PVT.LTD. : 1. PEPSI It is a carbonated drink with the ingredients such as phosphoric acid, fructose corn syrup, carbohydrates, caffeine, sugar and color. 2. MIRINDA (orange) It is a fruit drink with the ingredients like sugar, orange flavor and color. 3. MIRINDA (Lemon) It is a fruit drink with the ingredients like sugar, lemon flavor, citric acid, sodium bicarbonate. 4. SLICE It is a noncarbonated fruit drink with the ingredients like mango pulps, coloring agents, sugar etc. 5. LEHAR SODA It is a carbonated drink with the ingredients such as phosphoric acid, caffeine, phosphoric acid etc. 6. 7-Up It is a carbonated drink with the ingredients such as carbonic acid, citric acid, sugar etc. 7. MOUNTAIN DUE It is a carbonated drink. 8. AQUAFINA It is a mineral water 9. TROPICANA 10. TWISTER It is a fruit based drinks
MARKET SHARE: Market segment of soft drink on the basis of types of product: Market share
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of Carbonated & Non Carbonated Soft drinks: Type Carbonated Non carbonated Market Share 55.2% 44.8% Example Pepsi, Coca- Cola, Thumps Up Orange, Cloudy Lime Clear Lir
Major players of soft drinks: 4. Pepsi company 5. Coca cola company 6. Cadbury Schweppes Market Share of soft drink industry in India. S.NO 1 2 3 4 COMPANY Coke Pepsi Cadbury Schweppes local manufactures PERCENTAGE 43.5 31.9 14.6 10
Major soft drinks in the Indian Market. PEPSI CO. 1. Pepsi 2. 7 up 3. Slice 4. Mirinda (Orange) 5. Mirinda (lemon) 6. Lehar soda 7. Teem Soda 8. Mountain dew 9. Aquafina (water) Area of operation: NBPL has its registered office in Dharwad and they are operating in most part of the North Karnataka Districts. They are supplying their
COKE CO. 1. 2. 3. 4. 5. 6. 7. Coca Cola Thumps up Maaza Fanta Limca Kinley (water) Sprite
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Supplies to 12 districts which are listed below. 1. Dharwad 2. Gadag 3. Haveri 4. Davangere 5. Belgaum 6. Bijapur 7. Bagalkot 8. Bellary 9. Koppal 10. Chidradurga 11. Karwar 12.Chikkamagalur 13. Shimoga
Competitors: The major competitor is Coca-Cola along with local/ unorganized sector. Pepsi Co. Brands Pepsi, 7up Mountain Dew Mirinda lemon Mirinda orange Slice Nimbooz Aquafina (Water) Coca-Cola's Brands Coca-Cola Sprite Thumbs Up Limca Fanta Maaza Nimbupani Kinley (Water)
BANKERS AND FINANCIAL INSTITUTIONS: Bank of India TRANSPORTERS: Out Sourced to Pvt. Company
SWOT Analysis of Pepsi Company

PepsiCo Strengths Branding - One of PepsiCo's top brands is of course Pepsi, one of the
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most recognized brands of the world, ranked according to Interbred. As of 2008 it ranked 26th amongst top 100 global brands. Pepsi generates more than $15,000 million of annual sales. Pepsi is joined in broad. recognition by such PepsiCo brands as Diet Pepsi, Gatorade Mountain Dew, Thirst Quencher, Lay's Potato Chips, Lipton Teas (PepsiCo/Unilever Partnership), Tropicana Beverages, Fritos Corn, Tostitos Tortilla Chips, Doritos Tortilla Chips, Aquafma Bottled Water, Cheetos Cheese Flavored Snacks, Quaker Foods and Snacks, Ruffles Potato Chips, Mirinda, Tostitos Tortilla The strength of these brands is evident in PepsiCo's presence in over 200 countries. The company has the largest market share in the US beverage at 39%, and snack food market at 25%. Such brand dominance insures loyalty and repetitive sales which contributes to over $15 million in annual sales for the company. Diversification - PepsiCo's diversification is obvious in that the fact that each of its top 18 brands ge:p.erates annual sales of over $1,000 million. PepsiCo's arsenal also includes ready-to-drink teas, juice drinks, bottled water, as well as breakfast cereals, cakes and cake mixes. This broad product base plus a multi-channel distribution system serve to help insulate PepsiCo from shifting business climates. Distribution - The Company delivers its products directly from manufacturing plants and warehouses to customer warehouses and retail stores. This is part of a three pronged approach which also includes employees making direct store deliveries of snacks and beverages and the use of third party distribution services. Weaknesses Overdependence on Wal-Mart- Sales to Wal-Mart represent approximately 12% of PepsiCo's total net revenue. Wal-Mart is
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PepsiCo's largest customer in USA. As a result PepsiCo's fortunes are influenced by the business strategy of Wal-Mart specifically its emphasis on private-label sales which produce a higher profit margin than national brands. Wal-Mart's low price themes put pressure on PepsiCo to hold down prices. Overdependence on US Markets - Despite its international presence, 52% of its revenues originate in the US. This concentration does leave PepsiCo somewhat vulnerable to the impact of changing economic conditions, and labor strikes. Large US customers could exploit PepsiCo's lack of bargaining power and negatively impact its revenues. Low Productivity - In 2008 PepsiCo had approximately 198,000 employees. Its revenue per employee was $219,439, which was lower that its competitors. This may indicate comparatively low productivity on the part of PepsiCo employees. Image Damage Due to Product Recall- Recently (2008) salmonella contamination forced PepsiCo to pull Aunt Jemima pancake and waffle mix from retail shelves. This followed incidents of exploding Diet Pepsi cans in 2007. Such occurrences damage company image and reduce consumer confidence in PepsiCo products. Opportunities Broadening of Product Base - PepsiCo is seeking to address one of its potential weaknesses; dependency on US markets by acquiring Russia's leading Juice Company, Lebedyansky, and V Water in the United Kingdom. It continues to broaden its product base by introducing True North Nut Snacks and increasing its Lipton Tea venture with Unilever. These recent initiatives will enable PepsiCo to adjust to the changing lifestyles of its consumers. International Expansion - PepsiCo is in the midst of making a $1, 000 million investment in China, and a $500 million investment in India.
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Both initiatives are part of its expansion into international markets and a lessening of its dependence on US sales. In addition the company plans on major capital initiatives in Brazil and Mexico. Growing Savory Snack and Bottled Water market in US - PepsiCo is positioned well to capitalize on the growing bottle water market which is projected to be worth over $24 million by 2012. Products such as Aquafina, and Propel are well established products and in a position to ride the upward PepsiCo products such as, Doritos tortilla chips, Cheetos cheese flavored snacks, Tostitos tortilla chips, Fritos corn chips, Ruffles potato chips, Sun Chips multigrain snacks, Rold Gold pretzels, Santitas are also benefiting from a growing savory snack market which is projected to grow as much as 27% by 2013, representing an increase of$28 million. Threats Decline in Carbonated Drink Sales - Soft drink sales are projected to decline by as much as 2.7% by 2012, down $ 63,459 million in value. PepsiCo is in the process of diversification, but is likely to feel the impact of the projected decline. Potential Negative Impact of Government Regulations - It is anticipated that government initiatives related to environmental, health and safety may have the potential to negatively impact PepsiCo. For example, manufacturing, marketing, and distribution of food products may be altered as a result of state, federal or local dictates. Preliminary studies on acryl amide seem to suggest that it may cause cancer in laboratory animals when consumed in significant amounts. If the company has to comply with a related regulation and add warning labels or place warnings in certain locations where its products are sold, a negative impact may result for PepsiCo. Intense Competition - The Coca-Cola Company is PepsiCo's primary
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competitors. But others include Nestle, Grouped DANONE and Kraft Foods. Intense competition may influence pricing, advertising, sales promotion initiatives undertaken by PepsiCo. Recently Coca-Cola passed PepsiCo in Juice sales. Potential Disruption Due to Labor Unrest - Based upon recent history, PepsiCo may be vulnerable to strikes and other labor disputes. In 2008 a strike in India shut down production for nearly an entire month. This disrupted both manufacturing and distribution. PepsiCo is a world leader in convenient snacks, foods and beverages with revenues of more than $43 billion and over 198,000 employees. Take a journey through our past and see the key milestones that define PepsiCo.
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FUNCTIONAL ANALYSIS
1. PRODUCTION DEPARTMENT 2. MARKETING DEPARTMENT 3. HUMAN RESOURCE DEPARTMENT 4. FINANCE DEPARTMENT
PRODUCTION DEPARTMENT
PRODUCTS PRODUCED AT NBPL: 1. PEPSI It is a carbonated drink with the ingredients such as phosphoric acid, fructose corn syrup, carbohydrates, caffeine, sugar and color. 2. MIRINDA (orange) It is a fruit drink with the ingredients like sugar, orange flavor and color. 3. MIRINDA (Lemon) It is a fruit drink with the ingredients like sugar, lemon flavor, citric acid, sodium bicarbonate. 4. SLICE It is a noncarbonated fruit drink with the ingredients like mango pulps, coloring agents, sugar etc. 5. LEHAR SODA It is a carbonated drink with the ingredients such as phosphoric acid, caffeine, phosphoric acid etc. 6. 7-Up It is a carbonated drink with the ingredients such as carbonic acid, citric acid, sugar etc. 7. MOUNTAIN DUE It is a carbonated drink. 8. AQUAFINA
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It is a mineral water 9. TROPICANA 10. TWISTER It is a fruit based drinks Raw Materials Used and Product Mix: Companys Flavor concentrates, which make up less than 1% of the finished beverages, also are diligently controlled. Each supplier must submit written verification that each lot of ingredient shipped to companies to water, sugar, and flavor testing, other ingredients, including non agricultural have been analyzed by outside laboratories. All ingredients including flavors, emulsifiers, preservatives, colors, acidulate, approved by global food standards like the JECFA/CODEX, USFDA and EU Scientific Committee for Foods. All ingredients used also conform to standards laid out by the prevention of Food Adulteration Act under the health ministry Sugar: Sugar accounts for 10 to 13% of a soft drink. Sugar must meet high standards of quality, which are uniform for all of the Pepsi beverage plants across the globe. All of the company's sugar manufacturers must undergo the same supplier qualification process. To add to our already high quality standards, all of our plants in India further purify sugar with hot activated carbon and fine filtration. Carbon Dioxide: The CO2 in each bottle of Pepsi surpasses that recognized for medical applications. The company achieves this by subjecting each supplier to a rigorous supplier qualification process, which includes a complete audit of
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refineries and testing from approved international laboratories. Further, each batch carries certificates of analysis and compliance. Once the CO2 reaches a bottling plant, it undergoes further purification;
QUALITY CONTROL: Quality Control and policy department: Make Sell and Deliver the Beverages to the consumer has it was designed, in order to drive brand preference. Safety Principles in the Company: We believe that safety health and environmental excellence is fundamental to demonstrating the values of the right side up company in all our operations. Through a fully empowered Pepsi-Cola organization, it is the job of every individual at Pepsi-Cola to be conscious of and strive towards protection of safety, health and the environment in our operating procedures and in the design of our facilities and equipment. We will rely on an integrated process that places value on individuals, exceeds performer and customer expectation and increases the value of our company. We intend to sustain safety health and environmental process that will prevent injury and property damage, protect against loss by fire and provide security for our assets. It is the obligation of everyone at Pepsi-Cola to comply with all applicable safety health and environmental laws. Ongoing monitoring of these activities will take place in order to ensure that we hold our self accountable for safety, health and environmental excellence.
Quality Control:
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Soft drink manufacturers adhere to strict water quality standards for allowable dissolved solids, alkalinity, chlorides, sulfates, iron, and aluminum. Not only is it in the interest of public health, but clean water also facilitates the production process and maintains consistency in flavor, color, and body. Microbiological and other testing occur regularly. The National Soft Drink Association and other agencies set standards for regulating the quality of sugar and other ingredients. If soft drinks are produced with lowquality sugar, particles in the beverage will spoil it, creating floc. To prevent such spoilage, sugar must be carefully handled in dry, sanitized environments. It is crucial for soft drink manufacturers to inspect raw materials before they are mixed with other ingredients, because preservatives may not kill all bacteria. All tanks, pumps, and containers are thoroughly sterilized and continuously monitored. Cans, made of aluminum alloy or tin-coated low-carbon steel, are lacquered internally to seal the metal and prevent corrosion from contact with the beverage. Soft drink manufacturers also recommend specific storage conditions to retailers to insure that the beverages do not spoil. The shelf life of soft drinks is generally at least one year.
Quality Assurance: Perhaps the most important in a bottling plant are those concerned with the maintenance of the standards of purity and uniformity set for the beverages produced. Those activities can be grouped together under the heading of quality assurance. To get the top most quality of the product, all the ingredients such as water, CO2, concentrate; are strictly inspected and analyzed by our quality assurance department. Apart from raw material, online sampling finished products are also tested.
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Samples of beverages produced are picked item the market for testing by independent laboratories of international repute.
Major Players and Market Shares: The two global majors Pepsi and Coca-cola, Which had winded up its India operations during the introduction of the FERA regime, reentered India 16 years later in 1993, dominate the soft drink market in India. Cocacola acquired a major chunk of the soft drink market buying out local brands thumps up, Limca and gold spot from Parle beverages. Coca cola has also acquired Cadbury Schweppes soft drinks brands crush, Canada dry and sport Cola in early 1999.Pepsi although started a couple of years before Coca-Cola in 1991,has a lower market share today. It has bought over Mumbai based duke's rang of soft drink brands both the cola manufacturers come up with their own market share figures and claim to have increased their share.
Segmentation: The soft drink market can be segmented on the basis of place of consumption or on the basis of type or products. The segmentation on the basis of place of consumption divides the market into Parts. On-premise -80% of the consumption of the soft drinks is on premise i.e. restaurants, sweet marts, railway station, cinema theaters etc. At home-the rest of 20%of the market comprises of the soft drinks purchased for consumption at home. The market can also be segmented 0 the basis of types of products into cola products and non-cola products. Cola products account for nearly 62-65% of the total soft drinks
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market. The brands that fall in this category are Pepsi, coca-cola, thumps up, diet coke, diet Pepsi etc. Non-cola segment, which constitutes 36%, can be divided into four categories based on the types of flavors available, namely: Orange, Cloudy Lime, Clear Lime, and Mango. Orange flavor based soft drinks constitute around 17% of the market. The segment is largely dominated by national brands like Fanta of coca-cola and Mirinda orange of Pepsi Co, which collectively form 15% of the market, rest of the market is in hands of smaller brands like crush, Gold Spot etc. Cloudy Lime flavors constitutes of 14% of the market and is largely dominated by Limca of coca-cola and Mirinda Lemon of Pepsi Co, Limca is the market leader with around 0-75% of the market followed by Mirinda Lemon. Clear lime: this segment of the market witnessed good growth initially with all the players launching their brands in the segment. Mango: this flavor segment constitutes 2% of the total soft drinks market and it directly it completes with mango based fruit drinks like Frooti. The leading brands in these segments are: Maaza of coca-cola, and slice of Pepsi.
PROCESS INVOLVED IN MANUFACTURING OF PRODUCT: Raw Materials: Carbonated water constitutes up to 94% of a soft drink. Carbon dioxide adds that special sparkle and bites to the beverage and also acts as a mild preservative. Carbon dioxide is a uniquely suitable gas for soft drinks because it is inert, non-toxic, and relatively inexpensive and easy to liquefy. The second main ingredient is sugar, which makes up 7-12% of a soft drink. Used in either dry or liquid form, sugar adds sweetness and body to the beverage, enhancing the "mouth feel," an important component for
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consumer enjoyment of a soft drink. Sugar also balances flavors and acids. Sugar-free soft drinks stemmed from a sugar scarcity during World War II. Soft drink manufacturers turned to high-intensity sweeteners, mainly saccharin, which was phased out in the 1970s when it was declared a potential carcinogen. Other sugar substitutes were introduced more successfully, notably aspartame, or Nutria-Sweet, which was widely used throughout the 1980s and 1990s for diet soft drinks. Because some high-intensity sweeteners do not Provide the desired mouth-feel and aftertaste of sugar; they often are combined with sugar and other sweeteners and flavors to improve the beverage. The overall flavor of a soft drink depends on an intricate balance of sweetness, tartness, and acidity (pH). Acids add sharpness to the background taste and enhance the thirst-quenching experience by stimulating saliva flow. The most common acid in soft drinks is citric
acid, which has a lemony flavor. Acids also reduce pH levels, mildly preserving the beverage. Very small quantities of other additives enhance taste, mouth-feel, aroma, and appearance of the beverage. There is an endless range of flavorings; they may be natural, natural identical (chemically synthesized imitations), or artificial (chemically unrelated to natural flavors). Emulsions are added to soft drinks primarily to enhance "eye appeal" by serving as clouding agents. Emulsions are mixtures of liquids that are generally incompatible. They consist of water-based elements, such as gums, pectin's, and preservatives; and oil-based liquids, such as flavors, colors, and weighing agents. Saponins enhance the foamy head of certain soft drinks, like cream soda and ginger beer. To impede the growth of microorganisms and prevent deterioration, preservatives are added to soft drinks. AntiSeshadripuram Institute of Management Studies 47
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oxidants, such as BHA and ascorbic acid, maintain color and flavor. Beginning in the 1980s, soft drink manufacturers opted for natural additives increasing health concerns of the public. Impurities in the water are removed through a process of coagulation, filtration, and chlorination. Coagulation involves mixing folk into the water to absorb suspended particles. The water is then poured through a sand filter to remove fine particles of Roc. To sterilize the water, small amounts of chlorine are added to the water and filtered out.
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The Manufacturing Process: Most soft drinks are made at local bottling and canning
Brand name grant licenses to bottlers to mix the soft drinks in strict accordance to their secret formulas and their required manufacturing procedures. Clarifying the water: The quality of water is crucial to the success of a soft drink. Impurities, such as suspended particles, organic matter, and bacteria, may degrade taste and color. They are generally removed through the traditional process of a series of coagulation, filtration, and chlorination. Coagulation involves mixing a gelatinous precipitate, or floc (ferric sulphate or aluminum sulphate), into the water. The floc absorbs suspended particles, making them larger and more easily trapped by filters. During the clarification process, alkalinity must be adjusted with an addition of lime to reach the desired pH level.
Filtering, sterilizing, and dechlorinating the water:

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The clarified water is poured through a sand filter to remove fine particles of folk. The water passes through a layer of sand and courser beds of gravel to capture the particles. Sterilization is necessary to destroy bacteria and organic compounds that might spoil the water's taste or color. The water is pumped into a storage tank and is dosed with a small amount of tree chlorine. The chlorinated water remains in the storage tank for about two hours until the reaction is complete. 4 Next, an activated carbon filter dechlorinates the water and removes residua\ organic matter, much like the sand filter. A vacuum pump de-aerates the water before it passes into a dosing station. Mixing the ingredients: The dissolved sugar and flavor concentrates are pumped into the dosing station in a predetermined sequence according to their compatibility. The ingredients are conveyed into batch tanks where they are carefully mixed; too much agitation can cause unwanted aeration. The syrup may be sterilized while in the tanks, using ultraviolet radiation or flash pasteurization, which involves quickly heating and cooling the mixture. Fruit based syrups generally must be pasteurized. The water and syrup are carefully combined by sophisticated machines, called proportioners, which regulate the flow rates and ratios of the liquids. The vessels are pressurized with carbon dioxide to prevent aeration of the mixture. Carbonating the beverage: Carbonation is generally added to the finished product, though it may be mixed into the water at an earlier stage. The temperature of the liquid must be carefully controlled since carbon dioxide solubility increases as the liquid temperature decreases. Many carbonators are equipped with their own cooling systems. The amount of carbon dioxide pressure used depends
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on the type of soft drink. For instance, fruit drinks require far less carbonation than mixer drinks, such as tonics, which are meant to be diluted with other liquids. The beverage is slightly over-pressured with carbon dioxide to facilitate the movement into storage tanks and ultimately to the filler machine. Filling and packaging: The finished product is transferred into bottles or cans at extremely high flow rates. The containers are immediately sealed with pressure-resistant closures, either tinplate or steel crowns with corrugated edges, twist off, or pull tabs. Because soft drinks are generally cooled during the manufacturing process, they must be brought to room temperature before labeling to prevent condensation from ruining the labels. This is usually achieved by spraying the containers with warm water and drying them. Labels are then affixed to bottles to provide information about the brand, ingredients, shelf life, and safe use of the product. Most labels are made of paper though some are made of a plastic film. Cans are generally preprinted with product information before the filling stage. Finally, containers are packed into cartons or trays which are then shipped in larger pallets or crates to distributors. Manufacturing Process of Carbonated Drink: Water and Water Treatment: Pure water is taste less, color less and odor less. Water as it occurs in nature, whatever the source, always contains impurities in solution are in suspension. The determination of these impurities makes water analysis necessary and the control of these impurities makes water conditioning essential. The various sources of water can be classified as rain water, surface water and ground water. Irrespective of the source of the water, the water
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has to be tested and treated before taking in to the production. Testing and Treatment Procedure Adopted At MIS. Nectar Beverges Pvt. Ltd. Dharwad: The source of water at Nectar Beverages Pvt. Ltd. is ground water. The water is tested for various parameters like, hardness, alkalinity, suspended impurities, and micro organisms. Treatment Procedure: There are two types of water treatment adopted at nectar beverages Pvt. Ltd, Chemical batch treatment: This water is used for beverage purpose. Ion exchange: This water is used for boiler feed water, cooling tower, D.G. sets, condenser, heat exchanger and bottle washer. 1. Chemical Batch Treatment Process: Here the raw water is collected in storage tanks and dosages for chemical treatment are given according to the characteristics of the raw water. The source of raw water is bore wells. At present N .B.P.L. is holding three water treatment storage tanks, out of which two tanks are of3,00,000 liters capacity and one is 4,00,000 liters capacity. Raw water is collected from bore wells in the storage treatment tanks and analyzed the characteristics of raw water such has P-alkalinity, Malkalinity, temporary hardness and calcium hardness, afterwards chemical dosages are fixed. After addition of chemicals, the water is stirred by mechanical agitator, and three hours contact period is given before taking the water for production. Treated water passed through the sand filter to remove any floe carryover, then an activated carbon filter which removes chlorine and off taste/ odor causing impurities. Finally it goes through 5 micron pore size polishing filters to remove any carbon that may have been carried out over from the carbon purifier, and then through ultra-violet. Chlorine
ORGANIZATION STUDY
concentration is maintained at 6-8 PPM level before carbon filter and 2 hours contact time prior to dechlorination. Details of Chemicals Used: Lime: Added to remove alkaline compounds from water to an acceptable level and to reduce temporary hardness. Bleaching Powder: Added for chlorination to oxidize
microorganisms. Ferrous Sulphate: Added for coagulation and flocculation i.e., to remove the suspended solids and also insoluble materials created by chlorination and alkalinity reduction is removed. The sludge is drained and the treatment tanks cleaned with water after every treatment and fresh raw water is taken for fresh treatment. Sweetening Agent and Syrup Preparation: Sweetening agents are those subsistence's, which when blended with flavor, acid etc. will provide satisfactory sweet taste in the finished beverages. They also furnished body, which helps to carry or transits the flavor. They also give energy or food value to the beverage. Syrup Preparation: The preparation of the syrup is certainly one of the most important operations in the beverage plant, both from the stand point of sanitation and control of concentration. The object in syrup making is to prepare satisfactorily bended and finished syrup from which uniform beverages of high quality can be produced. Normally required quantity of sugar of high quality is added to treated water and heated to 85 C, in a high grade stainless steel double jack vessel. Activated carbon is added to this to remove impurities. Impurities along with activated carbon added to the sugar are separated form the sugar solution by filtering the sugar syrup. Filter paper and Hyflo Supercel are
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used as filter aid. The temperature of the clear syrup thus obtained is brought down to 20 C and stored is called "Simple" syrup. When the syrup is completely prepared by the addition and blending of all flavoring ingredients it is called as "Ready"/ "Finished" / Flavored The syrup is ready for use in production process, CO2 and Carbonation: The.C02 used for beverage purpose are 99.9% pure, free from moisture, air, oil, grease and other impurities.
The amount of CO2 dissolved in solution is called as volumes. The number of volumes of gas in the finished beverage has a definite relationship to the taste of the beverage. Correct carbonation means a sparkling, stimulating, thirst quenching beverage that completely refreshes and satisfies the consumer. Since there is definite relationship between taste and carbonation, it is extremely important to determine and maintain the carbonation which has proved most acceptable through experience in consumer section. The technique adopted at MIS. N.B.P.L for carbonating the beverage is as under: The ready syrup, which is prepared and stored in ready syrup tank, is taken to the bottling line. It is passed trough a machine called 'premix' where the syrup is automatically diluted with treated water to the required level. Once it is diluted it is sent to the carbonator for carbonation. For carbonating the beverage a mechanical device known as "CARBONATOR" is used. CO2 gas enters the carbonator through a valve at the top of the body of the carbonator. The dome as well as the body of the carbonator is filled with gas. Syrup is sprayed in to the carbonator from the top, which flows down through the baffle plates provided inside the carbonator. As the water flows down it gets mixed with the CO2 gas nrp.se, nr inside the carbonator.
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Concentrates: Flavoring materials used in making carbonated beverages are primarily are alcoholic extracts, emulsions, alcoholic solutions or fruit juices. Concentrates or non-alcoholic beverage bases are supplied by N.B.P.L's principle company from channo (Punjab) having international standards. On addition of concentrate to the simple syrup we get respective finished syrup ready for further process beverages. Bottle Washing and Bottle Inspection: One of the most important aspects of the bottling operation is the cleaning of the reusable bottles when it returns to the bottling plant. In order to be reused the bottle must be sterile, of acceptable appearance, rinsed free of any detergent of sterilizing agent, and of good mechanical strength. The object of bottle washing is to produce both a clean bottle and stelile one. The fact that bottle looks dean does not indicate it is sterile, and on the other hand, a dirty looking bottle may be a sterile one. The present day bottle washer is designed to both clean and sanitize bottles before sending them to the filling line.
Plant Sanitation: The most scrupulous sanitation practices are essential in soft drink plant. The highest standard of cleanliness for premises, personnel and equipment is obviously necessary due to the type of operation involved that of manufacturing a food product. Sanitation is necessary to insure the keeping qualities, proper appearance and full flavor of any soft drink. When the equipment becomes contaminated, yeast, bacteria or mold microorganisms begin to appear in the finished beverage. Increased numbers of these microorganisms will cause the development of undesirable tastes and odors and ultimate spoilage of the product: Nothing will kill the demand for a beverage any quicker than off
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tastes and odors or product spoilage. Hence sanitation, good plant house keeping and good manufacturing practice are strictly implemented at N.B.P.L.
Quality Assurance: Perhaps the most important activities in bottling plant are those concerned with the maintenance of the standards of purity and uniformity set for the beverages produced. These activities can be grouped together under the heading
of quality Assurance. To get the too most quality of finished product, all the ingredients such as water sugar, CO2, concentrate are strictly inspected and analyzed by N.B.P L Quality.
Effluent Treatment Plant: The effluent water charged by N.B.P.L is properly treated and neutralized to maintain a value of C.O.D., B.O.D., pH and T.D.S in water as per the guidelines prescribed by the Water Pollution Board of Karnataka. For this N.B.P.L has full fledged effluent treatment plant.
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SWOT ANALYSIS OF PRODUCTION DEPARTMENT
Strength World class equipments at plant to produce same taste of pepsi produced else were in world TQM measures are followed to good extent Inspection at every step helps to maintain the same quality Weakness Logistics maintenance must be improved Incidents like occurrence of 0.001% of pesticide in pepsi should not be repeated Cost of production should be minimized
Opportunities Innovative ideas to improve production & packaging process to reduce cost of production Products oriented towards children & households
THREATS
Events like global recession have adverse effect on production
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MARKETING DEPARTMENT:
SALES DEPARTMENT
CEO
DEPUTE GENERAL MANAGER
TERRITORY DEVELOPMENT MANAGER
AREA SALES MANAGER
EXECUTIVE
EXECUTIVE
EXECUTIVE
EXECUTIVE
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CUSTOMER DATA BASE: EGC Eatery Bar & Restaurant Grocery - Bakery Convenience - Pan Shop, Karina Shop PROMOTIONAL STATARGY: Promotional Strategy is classified into 2 categories: 1) ATL 2) BTL
1) ATL : Above the line It includes promotional activities like : Press advertisement Sign Board News Paper Banner Under the Ground Under the Label This promotional activities are controlled and decided by the Head Quarters of the Pepsi Company that is New Delhi
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BTL : Below the line It includes promotional activities like : Road Shows Sponsoring of Tournament Dealer Boards Sales Promotion----- going to Bars & Restaurant & Convincing the Bar Owners, Managers, Weathers to Supply Pepsi Products. To have a strong monopoly like supplying only Aquafina Drinking Water, Pepsi, 7up, etc.
Marketing Department: There are two types of marketing channels: 1. Consumer marketing channels. 2. Industrial marketing channels N.B.P.L. Pepsi Co. is a Fast Moving Consumer Goods (FMCG) Company which comes under consumer marketing. So this consumer marketing channel includes four levels of: channel they are, a. b. c. d. O-level channel I-level channel 2-level channel 3-level channel
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Consumer Marketing Channel Of N.B.P.L Pepsi Co:
2-LEVEL CHANNEL MANUFACTURER
WHOLESALER
RETAILER
CONSUMER (End User)
The 2-Level channel is company to manage the business and reduce the high risk adopts the most suitable marketing channel for N.B.P.L PEPSI CO. this channel. In this channel company main work is to manufacturing the products and promoting the products to the wholesalers. Here the wholesaler is the main key for the company's business growth. This channel makes it easy for the customers to purchase product, but by providing greater service output which increases channel costs and there by increases prices for customers. So 2-level channel which correlates with conmans market functioning Function of Marketing Channel: A marketing channel performs the work of moving goods from producers to consumers. And its key functions are; It gathers information about potential and current customers, competitors, and other factors and forces in the marketing environment It develops and disseminates persuasive communications to stimulate purchasing.
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It reaches agreements on price and other tenns so that transfer of ownership or possession can be affected. It place orders with manufacturers. It acquires the funds to finance inventories at different levels in the marketing channel. It assumes risks connected with carrying out channel work. It provides for the successive storage and movement of physical products. It provides for buyers payment of their bills through banks and other financial institutions. It over sees the actual transfer of ownership from one organization or person to another. MARKET DHARW AD HUBLI BELGAUM HAAS AN DAVANGERE MADHURAI BIJAPUR SHARE 58% 60% 50% 99% 87% 88% 45%
Task Environment: A. Markets: The major market segments are Bars and wine centers. Students in soft drinks houses, restaurants, convenience stores. Families that like to store pet bottles.
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B. Competitors: The major competitor is Coca-Cola along with local/unorganized sector.
Pepsi Co Brands Pepsi 7-Up Mountain Dew Mirinda Orange Mirinda Lemon Slice Everest soda Aquafina water Diet Pepsi
Coca Cola's Brands Coke Thumps Up Sprite Fanta Limca Maaza Teem soda Kinley water Diet coke
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C. Distribution and Dealers: The three main channels to reach the consumers are:
D. Suppliers: The suppliers are ofbottIes, caps, openers, posters, advertising boards, sugar, flavors etc. E. Facilitators and marketing firms: The transportation and ware housing is outsourced. Pepsi Co has excellent advertising agency. Pepsi is rated as top 3rd brand in India after ITC. F. Publics: Teenagers and alcoholics form major opportunities.
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SWOT ANALYSIS OF MARKETING DEPARTMENT Strength Being established in Darwad since 1987 enabled them to have a strong market share Strong brand image in the mind of customers Always innovative in implementing innovative strategies to increase market share Weakness Below The Line promotional activities need to be improved No coordination between the head quarters and N.B.Pvt. Ltd. in formulating strategies Sales team are not given incentives at regular time which will demotivate them Opportunities Pepsi can include new products to their existing product line like milkshakes, energies drink etc
Threats Local soft drink brands data base are not available with the company like there numbers of production market share etc which is a big hurdle to crack them
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HUMAN RESOURCE DEPARTMENT :

HR STRATEGY OF THE COMPANY:
STAFF: Staff refers to the company human resources, which includes the manpower available in the entire organization. The company (N.B.PVT.LTD) divided its human resource in to: 1. Technical Staff: Company classifies employees working in production department where many activities related to technical are done. Such as filling and making of pet bottle section. 2. Non - Technical staff: Company also has non - technical staff in security department, dispatch section and workers in garden etc. 3. Administrative staff: Nectar Beverages also have the staff to administrate the company. Every department has the head of the department; the H.O.D Staff makes decision in the company after having discussion with the subordinates. Total Manpower of Nectar Beverages Pvt. Ltd: CEO Managers Executives Staff Permanent workers Temporary workers (season) Male Female 01 05 32 09 169 70 209 30
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ORGANIZATION STUDY
Company also takes temporary workers during the season that is summer season it takes up to 120 workers and during non-season it recruits only 30 workers to meet manpower requirement.
RECRUITMENT Recruitment is nothing but searching and obtaining potential candidates in sufficient number and quality and stimulates them to apply for job, so that organization can select the most appropriate people to fill its job needed. There are two sources of recruitment namely internal and external sources of recruitment it only follows externals recruitment, such as 1. Casual callers: 2. Placement Consultants: 3. Employment Exchanges officers: 4. News Paper Advertisement:
Recruitment Process in Nectar Beverages: The recruitment policy adopted by the organization has influence on its employees and on the efficiency of the company. So the recruitment policy adopted by the company should aim at right kind of potential candidates to ensure right kind candidate have been simulated for the job. The recruitment policy adopted by the Nectar beverages Pvt. Ltd is as follows: 1. The recruitment policy in the company begins with receiving the recreation form concerned department. 2. The plant manager and the HR manager and other departmental heads will discuss the necessity of the job and will take the decisions. 3. The HR manager will develop the job description and job specification. 4. The next step is followed by the advertisement of the requirement of the job if it found necessary.
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Selection procedure in NBPL: Nectar Beverages has the simple selection procedure, as it is the franchise unit. The company follows the following procedure for selection: 1] Application banks: 2] Preliminary interview: 3] Tests: 4] Final interview: Training: Training is given to the new employees for 6 months and their superiors are observed them for that period. For present employees training is given by sending them to different places. Some of the training methods followed are, Job rotation Coaching Job Instruction Lectures Employee empowerment programs.
Wages and Salary Administration: Salary (Executives) Basic D.A H.R.A Conveyance Allowance Washing Allowance Wages(Workers) Shift Allowance Attendance Allowance Washing Allowance Over time Allowance Others
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Provident Fund & Bonus Payment: 1.75% of total salary by the employee. 8.33% of salary i.e. D.A + V.D.A Leaves provided for the employees.
Leaves provided to staff and Executives on the basis of physical days are given below
Leaves Casual Leave Privileged Leave Sick leave
Staff Workers 12 18 10
Executives 10 30 15
Welfare Facilities; 1. N.B.PVT.LTD considers its employees as a valuable resource of the organization. Hence various welfare facilities are provided to the employees. 2. Free two pairs of uniforms are given to employees and one pair of shoes every year for workers only. 3. Every day 4 times tea is provided to all the employees. 4. All employees and workers are covered under ESIC i.e. Employee State Insurance Corporation 1948. 5. Basic loan facility without interest. 6. Production Incentives for overtime work 35-40 Rs. per hr is paid to workers. Retirement benefits to the employees: 1. EPF: If the employees are retired at 58 years, P F Office will give family pension provided the employee has done a minimum of 10 years service in the company.
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2. GRATUITY: Insurance co gives group gratuity scheme to the employees who have served the organization for 5 years. Reports and Records: Reports & Records are maintained from inception to retirement. Conventional Methods: 1. Paper 2. Charts 3. Files 4. Blue Prints. 5. Diskettes. EMS: Employee Management System is used in the company. Modern Methods: 1. Video 2. Audio 3. Magnetic Tapes
3. SKILL: A skill refers to how smart an employee does his work with available sources. In marketing department various steps are taken for staff to develop appropriate new skills for marketing their products. a. Multi disciplinary skills: In production department some persons have the skill to operate bottle washing machine, sealing machine, and even some time they also handle small problems in machines. They themselves identify the problem area of machine and make it repaired if required. b. Single skill: Single skill refers to the only single skill which people, which people have in organization. In Nectar Beverages only HR people and chemist have the single skill.
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Skill classification in Nectar Beverages: In Nectar Beverages skill is mainly classified in marketing department and engineering skills in production department. In marketing department extra benefit will be given to the persons who achieve the sales target. Every person in marketing department will be having respective sales target. Once in a year various steps are taken to import various skills such a listening skill, presentation skills to customer executives.
4. STRATEGY: Strategy refers to how an organization will attain its vision, mission responds to the threats & opportunities of the new capabilities needed in different departments. Strategy is the determination of the basic long-term goals and objectives of an enterprise and the adoption of the course of action and the allocation of resources necessary for carrying out these goals The main strategy of NBPL is aiming at gaining the sustainable advantage over the competitors and improving the Product through quality and reduces cost. It is also trying to improve its position in the minds of the customers by following up and providing the customer value and value added service of the competent industry. And also the company is allocating the resource available very legibly to get best out of the availability.
TRANSFER POLICIES: no branches, no transfers. COMPENSATION POLICIES: Compensation Policies follow ESI-Act EMPLOYEE STATE INSURANCE ACT: 4.75% 1.75% --Employer Employee
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PUNISHMENT SYSTEM: MEMO (Asking Explanation) SUSPENSION CHARGE SHEET ENQUIRY DISMISSAL
PERFORMANCE APPRAISAL SYSTEM: Suresh Dasar a unskilled labour through his firm hard work and dedication moved to top Executive Position with in time span of 4-5 years it shows that performance appraisal happens according to the hard work of the employee.
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SWOT ANALYSIS OF HUMAN RESOURCE DEPARTMENT
Strength Performance appraisal is done on the basis of work & not on the on the job experience which motives employees. High degree of participative management
Weakness Shortage of effective and skilled labors
Opportunities Proper training and development programs can enhance the skills of workers which help the company in meeting the objectives of organization
Threats Proper training and development programs can enhance the skills of workers which help the company in meeting the objectives of organization
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FINANCE DEPARTMENT
Steps followed at N.B.PVT.LTD Raw materials purchased against the Demand Draft only. 99% of the Purchases are in cash & carry system. 1% distributors support up to 10 lakhs Credit bases. Temporary over Draft is available for the company in Syndicate Bank For casual workers salary is paid on the cash basis. For permanent workers salary will be transferred to their Bank account. Company uses basically the Syndicate Bank & M.G. Bank & bank of India for their transaction. Finance Resources: Collection from Data Internal Surplus from Bank of India Equity Contribution: Total borrowing Net fixed Assets: Current Assets Current Liabilities Net Sales Rs. 10 crores Rs. 23 Crores Rs. 10 Crores (Cash Credit) Rs. 50 Crores Rs. 55.05 Crores Rs.28 Crores Rs.115 Crores
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Finance Department: Present details of Nectar Company: Nectar co collects details of sales n purchases in the month of October and from there budget planning process is started it is firstly audited by the finance department and the handed over to Chartered Accountant. Where both the budgetary plans are matched and final preparation of budgetary plan is made for the year. Raw materials are purchased 90% on cash basis only. Usually creditors are allowed at the extent of2-3 months Nectar Company's Working Capital is ofRs 10crores Letter of Credit (LC) is of Rs.1.5crores At presents its Turn Over is of Rs. 40crores Nature of Ratio Analysis: Ratio analysis is a technique of analysis and interpretation of financial statements. It is the process of establishing and interpreting 'various ratios for helping in making certain decisions. It is only a means of understanding of financial strengths and weaknesses of a firm. Significance of ratio analysis: As a tool of financial management, ratios are of crucial significance. The importance of ratio analysis lies in the fact that it presents facts on a comparative basis and enables the drawing of inferences regarding the performance of a firm. Ratio analysis is relevant in assessing the performance of a firm in respect of the following aspects: 1. Liquidity position 2. Long term solvency 3. Operating efficiency 4: Overall profitability 5. Inter-firm comparison 6. Trend analysis
ORGANIZATION STUDY
Appointment of Auditors: Auditor's appointment will be done at the Head office (Delhi).At present company's auditor is O.P. Bagla & Co (Delhi). Yearly twice auditing is conducted i.e. in the month of July and December.
Software used in the Finance Department: From 2005, Company started using the Profit (+) windows based software for maintaining the financial records. Before this year company used the Profit software for its day to day operations.
Training in the Finance Department: In the Finance Department, on the job training method is followed for the new employees. Along with the on the job training, Head Office (Delhi) conducts some lecture type of training once in three months. Structure of finance department of Nectar Company: CEO
DGM Finance Accounts Manager Deputy Accounts Manager Assistant Accounts Manager
Accounts Executive
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Terms and concepts used in the study: Several ratios calculated from the accounting data, can be grouped into various classes accounting to financial activity or functions to be evaluated. We classify ratios into the following four important categories. 1. Liquidity ratio 2. Leverage ratio 3. Activity ratio 4. Profitability ratio
1. Liquidity ratio: Liquidity refers to the ability of a firm to meet its obligations in the short run, usually one year. Liquidity ratios are generally based on the relationship between current assets (the sources for meeting short ten obligations) and current liabilities. The important liquidity ratios are: Current Ratio Acid Test ratio or Quick Ratio Cash Ratio Net Working Capital Ratio 2. Leverage ratio: Financial leverage refers to the use of debt finance, while debt capital is a cheaper source of finance. It is a riskier source. Leverage ratios help in assessing the risk arising from the rise of debt capital. The important ratios are: Proprietary ratio Fixed assets to net worth ratio .3. Activity/efficiency/turnover ratio: Activity ratios are employed to evaluate the efficiency with which the firm manages and utilizes its assets. These ratios are also called turnover
ORGANIZATION STUDY
ratios, because, they indicate the speed with which assets are being converted or turned over into sales. Activity ratios thus involve a relationship between sales and assets. The proper balance between sales and assets generally reflects that assets are managed well.
CURRENT RATIO: Year 2007-08 2008-09 2009-10 2010-11 Current Assets 5,47,97,324 8,14,33,018 11,04,12,215 55,50,25,000 Current Liabilities I 2,16,56,121 4,26,32,113 3,17,13,911 28,15,00,000 Current Ratio 2.53 1.91 3.48 1.98
Current Ratio
4 3.5 3 2.5 2 3.48 1.5 2.53 1 0.5 0 2007-08 2008-09 2009-10 2010-11 1.91 1.98
Current Ratio
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2) Table Showing NET Profit :
NET PROFIT : Year 2007-08 2008-09 2009-10 2010-11 Net Profit 28550513 61985705 111519726 165853013 Sales 470751318 517826450 640013362 952161933 Net Profit Margin Ratio 6.06 11.97 17.42 17.42
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SWOT ANALYSIS OF FINANCE DEPARTMENT
Strength: Company as the ability to take proper financial decisions at right time Good support from bankers is given to company Good maintenance of accounting system is the statutory task of the organization & it is doing by u sing accounting software.
Weakness: 60% of accounting systems are computerized & rest are manually maintained.
Opportunities: 60% of accounting systems are computerized & rest are manually maintained. Scope for improving profitability by adopting proper cast accounting techniques
Threats: Credit policies offered by the organization may cause some problem in future. Need to solve payment related problems by adopted better inventory management system
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ORGANIZATION STUDY
SWOT ANALYSIS OF THE COMPANY:

STRENGTH: It is the potency of the company, which makes the difference from others in the industry, the important strength of the company is: The main strength Nectar Beverage is, it has 60% of market share in its area. Price of the product is within reach of the ordinary people. Production campaigns are highly visible. Appealing to young generation Branding & Packaging Achievement of business goals through ethical management and the responsible uses of natural resources.
WEAKNESSES: Weakness is those limitations or disadvantages, which have an influence on the business of the company, some of the limitations of the Nectar Beverages Pvt. Ltd. are: Nectar Beverages cannot cross its boundaries and sell their products. So it is restricted to some boundaries. Lack of novelty in advertising. Numbers of absentees are more. Decline in profit due to recession.
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OPPORTUNITIES: Opportunities are the openings or prospects for the future expansion or growth of the company and to meet the objectives for which it is formed. This makes avenue for the company to achieve goals. Natural based drinks to quench thirst. As they all ready recognized in the beverage market, they would not have a problem in launching the product in a wide scale. Additional youth consumers entering the market Global market
THREATS: Threats are the fear or the pressure for which are uncertain to the company has to be geared up to face and to cope up with the changes from the current state. The major threat for the Pepsi is the increasing techniques used by its rival Coke for increasing the share in the market. The newer and innovative advertisement campaign by Coke and such companies are never ending threat to the PepsiCo. The recent outbreak of findings of high pesticides content in most of the soft drinks can pose a major threat to the company. More substitutes Health Conscious Consumer Trends. Competition with local brands
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FINDINGS
Most of the retailers are doing business more than 4 years ie, 66% between 2 to 3 years 20%, between 1 to 2 years 6% less than 1 year 8% As according to the consumer demand most of the retailer store in their shop pepsi 28%. Most of the retailers are satisfied with the company service ie.., 45% but 55% of retailers are not satisfy with the company policy. From the research it is clear that almost all the retailers keep pepsi and coke in there shop 52% ie.., 38% pepsi.
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SUGGESTIONS
The company should provide more coolers to the retailers to maximize sale. They should provide the retailers good service during the off season also. Pepsi Company should give more schemes to retailers and promote them to keep more stocks to increase sale. Company should introduce an Executive who will look after circulation of coolers and maintain it. The most important parameter scheme given by Pepsi is really good but it is not reaching to every retailers.
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CONCLUSION
Thus according to this Internship project I conclude that most of the retailers stock both the products of Pepsi & Coke because of consumer demand for the Products and also for the service provided by the company. Retailers prefer Pepsi brand more because sales person maintain a very good relationship with the retailer & also because of its good quality. The most important parameter is the scheme given by the Pepsi is really good.
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LEARNING EXPERIENCE
For the first time in my life I got the opportunity to understand how the organization works and also to be part of it This internship project helped me to implement theoretical concepts to reality Production process of products like pepsi,7UP,Moutian due produced on seasonal basis Since my interest lies in marketing department I got the opportunity to learn each and every aspect of marketing department briefly The pepsi produced at Nectar Beverages PVT. LTD. is of the same quality else were produced in the world The staff members were very cooperative in their approach they took precious time out of there tight schedule to assist me Finally I wish to say that I was able to gain insight towards the working of the organization was also able to relate theoretical aspects that we learn in class and organize.
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Bibliography
BOOKS REFERRED Financial Management by - I.M.Pandey Organization Behavior by - K.Ashwathappa Human resource Management by Shashi K Gupta
INTERNET SOURCES Companys Website : www.nectarbeverages.com www.wikipedia.com www.pepsico.in www.rbi.org.in
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ORGANIZATION STUDY

AN INTERNSHIP REPORT TITLED ORGANISATION STUDY AT NECTAR BEVERAGES PVT. LTD.

Place: Bangalore Date:

Signature of the Student Reg No: 10DKCMA109

Seshadripuram Institute of Management Studies

Place: Bangalore Date:

Seshadripuram Institute of Management Studies

Place: Bangalore Date:

Vinod Raj C.U.M Reg No: 10DKCMA109

Seshadripuram Institute of Management Studies

Seshadripuram Institute of Management Studies

1. ECONOMIC SCENARIO OF INDIA

Seshadripuram Institute of Management Studies

Major players of soft drinks:

1. Pepsi company 2. Coca cola company 3. Cadbury Schweppes

Seshadripuram Institute of Management Studies

Seshadripuram Institute of Management Studies

Brands: Pepsi brands Year of Introduction Pepsi-Cola Pepsi-Cola 1898

Seshadripuram Institute of Management Studies

Seshadripuram Institute of Management Studies

Seshadripuram Institute of Management Studies

SWOT Analysis of Pepsi Company

Seshadripuram Institute of Management Studies

Seshadripuram Institute of Management Studies

Filtering, sterilizing, and dechlorinating the water:

Seshadripuram Institute of Management Studies

Seshadripuram Institute of Management Studies

SWOT ANALYSIS OF PRODUCTION DEPARTMENT

Events like global recession have adverse effect on production

Seshadripuram Institute of Management Studies

DEPUTE GENERAL MANAGER

TERRITORY DEVELOPMENT MANAGER

TERRITORY DEVELOPMENT MANAGER

TERRITORY DEVELOPMENT MANAGER

TERRITORY DEVELOPMENT MANAGER

AREA SALES MANAGER

Seshadripuram Institute of Management Studies

Seshadripuram Institute of Management Studies

Seshadripuram Institute of Management Studies

Consumer Marketing Channel Of N.B.P.L Pepsi Co:

2-LEVEL CHANNEL MANUFACTURER

CONSUMER (End User)

Seshadripuram Institute of Management Studies

B. Competitors: The major competitor is Coca-Cola along with local/unorganized sector.

Seshadripuram Institute of Management Studies

Seshadripuram Institute of Management Studies

Seshadripuram Institute of Management Studies

HUMAN RESOURCE DEPARTMENT :

Seshadripuram Institute of Management Studies

Seshadripuram Institute of Management Studies

Seshadripuram Institute of Management Studies

Leaves Casual Leave Privileged Leave Sick leave

Seshadripuram Institute of Management Studies

Seshadripuram Institute of Management Studies

Seshadripuram Institute of Management Studies

SWOT ANALYSIS OF HUMAN RESOURCE DEPARTMENT

Weakness Shortage of effective and skilled labors

Seshadripuram Institute of Management Studies

Seshadripuram Institute of Management Studies

Seshadripuram Institute of Management Studies

Seshadripuram Institute of Management Studies

2) Table Showing NET Profit :

Seshadripuram Institute of Management Studies