FYP REPORT: COCA-COLA BEVERAGES PAKISTAN LIMITED

SUBMITTED TO: SIR PROFESSOR DR. SARWAR AZHAR

SUBMITTED BY:
RAMEEZ HASSAN
ZAFARULLAH
FAISAL KHIZAR
 Table of contents

ACKNOWLEDGEMENT 4

Executive Summary 5

Acronyms 6

CHAPTER 1: PROJECT INTRODUCTION 7

1.1 Background 7

1.2 Scope 7

1.3 Geographic Scope 8

1.4 Objectives Deliverables 9

CHAPTER 2: BEVERAGE INDUSTRY 10

2.1 Industry Analysis 10

2.1.1 PESTLE Analysis 10

2.1.2 Porters Five Forces Analysis 12

2.2 Beverage Classification in Pakistan 13

CHAPTER 3: Company Background, Analysis and Strategies 16

3.1 Coca-Cola Global: History 17

3.2 CCBPL Background 18

3.3 CCI: Background 18

3.4 Coca-Cola Strategy 19

3.5 Product features and target market 19

3.6 TOWS Matrix 20

CHAPTER 4: Competition (Global and Pakistan) 23

4.1 PEPSI 23

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4.1.1 Introduction 23

4.1.2 Business Strategy 23

4.1.3 Sukkur Beverages 24

4.2 PAKOLA 25

4.2.1 Introduction 25

4.3 GOURMET 26

4.3.1 Introduction 26

4.3.2 Products 26

4.4 Market share (Coke vs other brands) Sukkur 26

CHAPTER 5: Project Deliverables 28

5.1 Retail Survey 28

5.1.1 Survey Results 29

5.1.2 Consumer Survey 31

5.1.3 Consumer Survey Results 31

5.1.4 Recommendations 33

5.2 Invoice Compliance 34

5.2.1 Invoice Check Activity 35

5.3 Shift in Cooler Responsibility 35

5.3.1 Cooler Shifting Activity 36

5.4 Ensuring Promo and Discounts Flow in market 36

5.4.1 Promotional Activity 36

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5.5 Wholesale Survey 37

5.5.1 Results 37

3.5 Decision Rationale 39

Appendix 40

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 ACKNOWLEDGEMENT

This project has proven to be a very important building block for the start of the professional
career for all team members. First of all, we are thankful to Almighty Allah who has given us
this opportunity of life to do something useful with it and we are grateful to our parents who
always motivated us to do something good and valuable.

Before starting the actual contents of the project, we would like to appreciate all those people
who have been part of this project (directly or indirectly) because without them, this would
have been impossible to be completed. These are individuals who provided insights, guidance
and paths regarding the success and completion of this project.

We would like to thank the management and encouraging supervisors like Mr. Mansoor
Kolachi (ASM) and Mr. Raheel Aziz (ASM) of CCBPL, who provided necessary resources
and suggestions. We highly appreciate the efforts of Sir Ali Raza (SDE) who was always there
to co-operate and help in difficult situations.

Faculty supervisor Mr. Professor Dr. Sarwar Azhar has been truly encouraging throughout the
project timeline. Apart from him all the faculty members associated had been of great help and
encouragement regarding this project.

Sincerely,

CCBPL Project Team (Spring 2018)

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 Executive Summary

Report includes the contents of the project and necessary details about the sales and distribution
network of CCBPL and its competitors. This projects had been conducted in the Sukkur market.
Competition is highly intense in this market specially in the seasonal times. main objective of
this project are intended to get deep understanding of the customers and consumers of Coca-
Cola and its competitive companies working in Sukkur and distributing sparkling and still
drinks. Other deliverables include cooler verification, regular promotions assurance in the
market means some routine tasks.

To best achieve the main objective, retail and wholesale survey had been conducted from the
market. Retail survey provided insights into why customers purchase from certain company
and what potential incentive could make them switch to other one. However, wholesale survey
was conducted to rationalize the exclusive discounts provided to the wholesalers in the
marketplace.

Results of wholesale survey provided insights into customer decision making. Customers
decide on the basis of service delivery, availability of the stock, asset (Cooler) and some other
factors. Decisions made by customers are always rational. They always look into what’s in it
for them. based on the survey a consumer survey was also conducted to compare and contrast
the results of retail and consumer survey before providing necessary recommendations.

Wholesale survey provided details about the wholesale customers that are beneficial for doing
business and those who are not according to the details amount of the share they purchase from
CCBPL in comparison to the competition in a particular period of time. It was necessary to
decide whether to continue doing business with them or leave them or make some business
decision for them.

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Acronyms

CCI Coca-Cola Icecek

CCBPL Coca-Cola Beverages Pakistan Limited

A.S.M Area Sales Manager

TSM Territory Sales Manager

OP On Premises

M.T Modern Trade

PSO Pre-Sales Officer

M.T.D Month-to-date

PDA Personal Digital Assistant

T.C.M Territory Commercial Manager

SDE Sales Development Executive

T.T Traditional Trade

Y.T.D Year-to-date

POP Point of Purchase

PCI Pepsi Cola International

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 CHAPTER 1

Introduction to Project

1.1 Project Background

The project paragon is designed by CCBPL for students of MBA at Sukkur IBA University to
analyse real-time marketing practices in beverages industry and its sales team. This is also to
understand about the competitive strategies that are prevailing in the market to cope up and
grow in cut-throat competition in the beverage industry. After the analysis of all above
mentioned factors, through this project it is intended to suggest some better strategies to the
management, marketing and sales team to better utilize resources to get ahead of completion
in the market. This project also intends to provide better knowledge about customers and their
needs and wants that afterwards could be utilized to better serve them in the future.

1.2 Project Scope

Project is not only restricted to understanding the market but actually involving in the activities
of the PSOs (Pre-Sales Officers), SDEs (Sales Development Executives) and actively
suggesting strategies to ASM (Area Sales Manager) to make sales and work procedures better.
This project provides complete nourishment of personal skills from bottom (market activities)
to Executive (decision making level). This is a two-way transition of benefits, for students, it
is for preparing better for their career and for company to have extra support staff.

Methodology

Basic Research method used is Triangulation or Mixed Research Method this includes;

1. Observation.
 Observing consumer and customer behaviour
 Observing to better understand current and potential issues to suggest strategies
accordingly.
 Maintain diary of all the observation that is duly signed by industry supervisor
2. Market Surveys.
 Getting info from customers about their preferences of purchasing beverages from any
particular company.

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  Getting info from whole-sellers to process data and suggest strategies for whole-sale
market development

1.3 Project’s Geographic Scope

Project was first designed for Larkana, Nawabshah and Sukkur. Later higher authorities revised
the decision and the project remained for Sukkur only. Decision was changed because Sukkur
had been a region where, there is a lot of work, market problems and lot things to learn.

1.4 Project Objectives

1. Competitor Promo check mechanism

2. Matching promo and trade discount reflection check
3. Voyage invoice Check/Compliance mechanism
4. Whole Sale Survey

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 5. Shift in Cooler responsibility (Delegation to Distributors)

Project Output/Deliverables

1. Voyage invoice compliance will be ensured

2. Distributors will feel accountability for coolers safety and verification
3. To get competitive by vigilance observance of competitor’s activities
4. Ensuring promo and discounts flow in the market.

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 CHAPTER 2:

BEVERAGE INDUSTRY

2.1 Beverage Industry Analysis

Beverage industry seemed to be saturated first before start of this project. That perception later
on changed when potential was observed in the marketplace that is still available. Currently
there are major products in the market that has major share of the industry that includes Soft
drink, Tea, Coffee, Alcohol and other drinkables. Soft drinks and Tea consumption is observed
to be in large amounts when compared to other beverage products in Pakistan that is true for
Sukkur city as well.

2.1.1 PESTLE Analysis

Macro environmental Factors How it affects Beverage Industry

Political Change in political conditions can affect the
any company operating here because of
highly unstable political environment of
Pakistan and implications could include
inconsistent changes in tax and tariff
structure that may reduce profitability
adversely.
Economic Economic factors that can affect include
increase in inflation that enforces the
consumer to reduce the consumption of soft
drinks and other beverages and focus on their
basic needs. Also if the consumer income
increases they can move towards other drinks
like wine, Champaign, beer etc. because this
drinks shows the status of one’s person.
Moreover, devaluation of local currency can
increase cost of inputs which are imported.

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Sociocultural Changes in consumer preference due health
awareness also highly affects the sales and
profitability of beverages producers.
Technological Technology can affect the profitability of
beverages industry. Advancement in new
technology like if, competitors introduce the
more efficient production plant it would
reduce competitors cost of production and
competition would become able to sell at
lesser prices than others and easily
outcompete it to get more market share for
itself. With more efficient technology one
can produce more to tap new markets and get
first mover advantage.
Environmental Environmental factor highly affects the sales
and profit potential of both two like if their
plant creates pollution that harm other people
and government impose the penalty to them
or shut down their plants. Another critical
factor is recycling of plastic by soft drink
companies that is harming environment to
the alarming stages.
Legal Big giant MNCs need to be vigilant on every
stage and function of their operations
because otherwise when found breaking a
law can cause them sever amount of
penalties. One scandal or mishap can ruin
brand image which is developed over
decades

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2.1.2 Porters Five Forces Analysis

Five forces Effect Rationale

Threat of Entry High  There is no any government restriction
to enter in beverage industry.
 No raw material restrictions.

Bargaining Power of Buyer High  No of competitors offer same type of

Threat of Substitute
soft drinks.
 Switching cost is low for consumers.
Low Almost all categories of drinks come under
beverage category from water to soft drinks to
juices to alcoholic drinks so, very few number
of substitutes remain for consumers.

Bargaining Power of Low  Easily accessibility of raw materials

Supplier  High No: of bottlers available.

Intensity of Rivalry High There are number of competitors of Coca-

Cola available in the market that offer almost
same kind of products and services like;
1. Pepsi
2. Pakola
3. Other local brands.

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2.2 BEVERAGE INDUSTRY CLASSIFICATION IN PAKISTAN

HOT BEVERAGE

TEA.

Tea is most famous consumed hot beverage in Pakistan and its adjoining counties. It is mostly
imported from Kenya Sri Lanka and Nepal. It has become part of the culture. Pakistan is
world’s 3rd largest importer of tea.

On average a Pakistani consumes tea thrice a day. Tea is made in home and also available in
every street of Pakistan of traditional poorly decorated tea stalls which are called ‘Dhabas. One
can find tea from small ‘Dhaba’ to 7star hotel easily. Tea is equally famous in urban and rural
areas and thought all social classes.

Tea selling market is divided into two segments. One is unbranded tea which is sold in open
bags and sold as per quantity demand by consumer and 2nd type is branded which sold in
predefined package sizes. Branded tea has most of the market share. Major players in branded
Tea selling are Unilever, Vital and Tapal. As per press release from Tapal it holds 41% of
Market share, Unilever has 43% and Vital contains 6% market share.

COFFEE

Coffee culture in Pakistan is still in emerging phase. People like what collar, executive, young
trendy and students are being targeted by coffee sellers. One can find raw coffee in general
store and can make at home or he can find it in superstore or restaurants. There is no street shop
(like Dhaba) for coffee. Coffee is liked by people living in urban areas. Currently Nestle
Nescafe is market leader in coffee selling in Pakistan.

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COLD BEVERAGES

CARBONATED SOFT DRINKS

As Pepsi and Coke are known for cut throat competition win worldwide. The case is not
different in Pakistan too. Currently Coke and Pepsi have 39% and 51% market share
respectively. The rest goes to Amarat Cola, Next Cola, RC cola and other small players. In
Pakistan demand of carbonated soft drinks have seasonal impact. Because in summer season
due to heat people prefer to get cold drinks. As per data shared by one of the distributer, demand
for carbonated soft drinks starts increasing from mid of January and remains on peak during
May June July and August. Then at the start of September demand goes downward till the end
of December.

In Pakistani culture other factors for demand of CSDs, like in birthday parties mostly cold
drinks are served. Soft drinks are also served with meals.

NON-CARBONATED DRINKS.

Non-carbonated drinks include fruit juices water and other drinks which are carbonated. Let’s
have look on each separately.

Water

Need for clean drinking water is observed around the globe which results high in high demand
for bottled water. Urban areas of Pakistan face more issue of finding natural water for drinking
due to indulgence of chemical substance released from factories into Sea and rivers. Currently
Nestle Purelife is market leader in Pakistan others include Dasani by Coca-Cola, Aquafina by
Pepsi cola, Aab-e-Gul by Pakola and there are countless regional water sellers who sell water
from in-house plants in metropolitan cities of Pakistan. Most of them sell water without prior
clearance from respective administrative authorities. Here is market share of frequently sold
bottled water sellers

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 Market share of few renowned bottled
water sellers

8%2% Netsle

15% Pepsi
46% Coca-cola
others
29%
Springly

Source: http://snnword.blogspot.com/2013/08/pakistan-bottled-water-market_8831.html

JUICES

Juices market in Pakistan is devided into segments, one icludes outlets selling fruit jiuces which
are made in front of consumers in shops. 2nd type of jiuces sellers include tetra pack juices.
Jiuces sold in tetra packaging are branded jiuces. Most famous jiuces in Pakitsan are, mago,
orange, Apple, Pine apple and grapes. Companies like Netsle and Fruitien provide company
owned coolers to the shop keepers for selling juices. Marketshare of branded juices sellers is
given bellow.

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 CHAPTER 3

COMPANY BACKGROUND, ANALYSIS AND STRATEGIES

3.1 Coca-Cola History

1886 In Atlanta Georgia there was a person whose

name was John Pemberton. He had some
training as pharmacists, he served in the civil
war as officer and confederate forces and
after the war, and he lived in Georgia and
began the practice of pharmacy and also
began the practice of trying to invent
commercially successful products. Coke was
invented by John Pemberton in a drug store.
Frank Robinson his friend possessed a good
career in advertising and helped him to
advertise his product.
1891 ASA Candler was the sole owner of Coca-
Cola; his total investment was about 2300$.
Candler possessed a vision and he also
possessed a very strong marketing capability.
Due to him first time coke was introduced in
a bottle.
1895 Put Coca-Cola logo on things like calendars,
things like posters, things that people with
carry with them like at notebooks and
bookmarks things that would be used by the
average person in the daily course of their
business. In 1895 alone the company
redeemed 7700 dollars’ worth of coupons,
154,000 glasses of coke and sales continued
to climb.

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1897 After sometime rumors had begun to spread
that Coca-Cola was not just a simple soda
fountain beverage. According to these rumors
it contained cocaine even though cocaine had
never been an added ingredient in Coca-Cola.
Candler position was clear that he would shut
the company down immediately if there were
ever one single case of anyone being harmed
by the drink. Then company published
pamphlet that there was not an invisible atom
of cocaine in an ocean of Coca-Cola. In 19th
century the time came when coke was sold in
46 states of US.
1899 The first ever bottling agreement of coke was
occurred. Chattanooga businessman
Benjamin Franklin Thomas and Joseph white
had approached Candler bout bottling on a
wide scale. Candler was happy to sell the
Chattanooga businessmen Coca-Cola syrup if
they were willing to go to the trouble of
getting it into bottles and ensuring its quality
once it got there. A contract was drawn up
and Candler gave them the right to a bottle
Coca-Cola with no mention of royalties. In
essence he signed away the rights for nothing.

1909 There were bottling plants in 379 American

cities and towns. Ads trumpeted the
portability of Coca-Cola. Somehow the bottle
of Coca-Cola fit naturally into the culture of
America. It was the era of great public events
and entertainment, amusement parks, county
fairs and of course baseball games. Then

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 there came the issue of imitators, and one of
the possible ways to deal with this problem
was to standardize the packaging and shape
of bottle.

1930 Company started its operations

internationally.
1960 Introduced new and different brands.

3.2 CCBPL (Coca-Cola beverages Pakistan limited):

Coca-Cola entered in Pakistan in 1953. Coca-Cola decided to establish its first plant in Karachi.
For many years Coca-Cola operated from Karachi, but when the demand increased it was very
difficult to maintain the quality of brand. So, it was necessary to create a single entity which
covers all the bottling. For this purpose, CCBPL (Coca-Cola beverages Pakistan limited was
made in 1996. From its creation till 2006 it acquired all the bottling plants to maintain the
standard. At the end of 2013 CCBPL has six plants and thirteen ware houses in Pakistan. The
first soft drink of Pakistan was Coca-Cola, subsequently Fanta was introduced in 1965, and
then sprite in 1972, after 30 years’ diet coke and Fanta lemon came into the market in 2001.
CCBPL has all rights of assembling and selling Coca-Cola brands since 2006 when it
completed the process of investing resources into locally franchised bottling operations. The
company generates large amount of tax through its customers for the country, and itself also
pays the tax which makes it the leading forest direct investment company of Pakistan.

The functions of CCBPL are mentioned below:

1. First of all, it deals with packaging and designing of bottles.

2. Secondly it deals with merchandising of bottles.
3. Thirdly, it looks the decisions of distributing the bottles.
4. Fourthly, it maintains local networks.

3.3 Coca-Cola Icecek (CCI):

CCI is a Turkish company which is responsible for non-alcoholic beverages. It is the 6th biggest
bottler which is working for Coca-Cola system. CCBPL is also the part of CCI, other than
Pakistan CCI operates in Turkey, Kyrgyzstan, Jordon, Kazakhstan, Azerbaijan, Iraq,

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Tajikistan, Syria and Turkmenistan. Headquarter of CCI is in Istanbul. It provides employment
to 10,000 people; it operates 25 bottling plants, and has 400 million customers worldwide. CCI
also sells water, juices, energy drinks, and teas. The annual sales of CCI are more than 1.3
billion.

CCI: Pakistan/ CCBPL

CCI bottlers Pakistan serves a target market of 208 Million and have 3000 employees.

CCI has introduced 16 products in Pakistan those includes, Coca-Cola, Coca-Cola Zero, Diet
Coke, Sprite, Sprite 3G, Sprite Zero, Fanta, Monster, Rani, Dasani, Mutant, Monster, Cappy
Juicy, Cappy Pulpy.

3.4 Coca-Cola Manufacturing and distribution strategy

Plants of Coca-Cola in Pakistan are in Hyderabad, Karachi, Faisalabad, Multan, Rahimyar

Khan, Lahore, Sialkot, and Gujranwala. For providing the product to millions of consumers
the company has eight plants and thirteen warehouses throughout the country.

Manufacturer

Distributor

Wholeseller Retailer

Consumer

3.5 Brand features and target market

Brands Target audience Features and Benefits

Coca-cola Adults  Great taste
 Provides Refreshment
 Goes well with food.
Sprite Young Adults  Crispy taste

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  Mixture of lemon
with carbonated soft
drink.
 No caffeine
Fanta Targets teenagers and  Fruity flavor
youngsters between the age  Vibrant orange color
of 15 and 24 years who
want to have fun.
Mutant Primary target market is  Sharpens the mind
male between the age of 18 and body.
and 38 who needs to work
extra hours.
Monster Adults and youngsters  Good source of
between the ages of 18 and vitamin B.
34. Especially sports lovers,  Improves athletic
and gym lovers. performance
 Energy elevator

Cappy Juicy Children  Rich source of fiber.

 Mango flavored.
Cappy Pulpy Children  Rich source of
vitamin C
 Orange flavored
Dasani People of every age group.  Purified water
 Fresh taste
 Better designed
packaged
Coca cola Diet For weight conscious and  No sugar
diabetic patients.  No calories\

TOWS Matrix

Strength Weakness
1. Brand Awareness. 1. Consistent problems
2. Quick primary order in dispatching
delivery. secondary sales
3. Highly effective orders.
control and audit 2. Limited number of
mechanism. lower staff like PSOs
4. Limited management and drivers.
staff in Sukkur 3. Consistently shortage
reducing high of stocks of particular

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 amount of staffing SKUs that are high in
cost. demand like Coke
Zero, Diet and Sprite
3G.
4. Customer complaints
increasing at
increasing rates.
5. Low customer
loyalty.

Opportunities: S-O: Strategy W-O: Strategy

 Increase marketing Company should follow Coke distribution has service
budget and activity. market penetration quality issues which open
 Install separate strategy. Coke is available windows for competitors to
distribution in Rohri yet there is strong potential grow. Increasing number of
to increase Focus in still available for it to exploit. vehicles and adding one
each individual Despite strong awareness of more person at depot who
market. the brands. Consumers tend should be liable for assuring
 Made exclusive deals to purchase competitors’ timely order deliveries.
with all major products. Company should Because outlet owners are
customers that are not match rates with competitors not happy with current lead
loyal. and introduce better deals for time.
customers to keep its
products and build a long-
term relationship.
Threats: S-T: Strategy W-T: Strategy
1. Competition is taking Strength of coke is brand (Third Party outsourcing)
advantage of changes image and quality product Coke Sukkur faces high
like discouraging but some shopkeepers also turnover of lower staff like
spot sales that leaves complain about different drivers and loaders which
a gap for rates they are charged on. poses threat for image
competition. They believe driver who dilution of coke. In order to

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2. Continuous increase collect money on spot sales, get rid of such unfavorable
in advertising budget charges them high. In order coke Sukkur should make
by competition can to cope up with this issue contract with third party for
decrease in sales and should add feature of spot sourcing of staff. In case if
customer equity. sales in its MIS where spot any driver or loader in not
sales should also be available, 3rd party should be
incorporated into system. In liable to provide alternative
this way this issue could be on spot.
solved. .

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 CHAPTER 4

COMPETITION (GLOBAL AND PAKISTAN)

4.1 PEPSI CO.

4.1.1 Introduction

Pepsi was founded in 1893 with the name of Brads Drink in United States. In 1902 it registered
itself with the brand name of Pepsi Cola. Pepsi cola came in Pakistan in 1959. In Pakistan the
market share of Pepsi is 54%. In Pakistan Pepsi cola works through franchising system. All the
people who operates the franchises belongs Shamim and Co. in Pakistan the franchises are
located in Karachi, Lahore, Sukkur, Multan, Gujranwala, Peshawar, Faisalabad, Hyderabad,
and Islamabad. Pepsi covers one half of all the market as far as the beverage is concerned. The
prices of Pepsi are low as compared to Coca-Cola.

Business and Distribution Strategy

There are two types of selling which Pepsi normally uses:

Direct selling

In direct selling Pepsi supply its variety of products on shops by having its own transportation
system. By this the company generates great profits.

Indirect selling

In indirect selling Pepsi deals through wholesalers to cater all the important areas, the main
reason of doing this is that, some of the times it becomes very difficult to for Pepsi to cater all
the boundaries of Pakistan. So, Pepsi make it possible with the help of whole sellers.

Products and brands

Pepsi comprises of 63 percent of food, and 37 percent of beverages. in beverages Pepsi is

known as Pepsi (the core brand), mountain dew, 7-up, Mirinda, Aquafina, Tropicana (the
biggest name in juices) and Lipton teas.

In food Pepsi Co is known as Cheetos, Frito lays, ruffles, Quakers and walkers.

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Pricing strategy

The prices of Pepsi are set on the basis of market demand. The prices are not too high or not
too low but set on the basis of optimal point where the revenue maximizes.

Promotion strategy

Pepsi mainly sponsors sports events in Pakistan. The roots of cricket and Pepsi are very deep
in Pakistan. As far as the schemes and discounts are concerned, Pepsi announces it according
to different seasons and by observing the buying behaviour pattern of consumers.

Sukkur Beverage Limited

Local politician and entrepreneur Nadir Akmal Laghari purchased franchise of Pepsi cola
international in 1972. This plant contains 12 production facilities and all famous brands like
Pepsi, Dew, Mirinda, Sting and 7up are produced in this SBL plant located in Sindh industrial
and trading estate (SITE) area Sukkur. All SKUs starting from 250ML to 225ML are produced
in PET, RGB and Tin packs.

Upper given figure shoes the organogram of SBL.

Factors behind the Success of Pepsi in Sukkur.

1. Availability.

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 2. Prompt Services
3. Competitive Pricing and Promos
4. Strategic location
5. More focused and frequent advertising
6. Sponsoring and Promotional activities

4.2 Pakola

4.2.1 Introduction

It is first national brand of Pakistan, and represented as the identity of Pakistan in many aspects
such as the name of Pakola in which it represents Pakistan as the cola or drink of Pakistan. It
also represents Pakistan as it is the first ever brand of south Asia and Pakistan receives the
credit that it is the first ever country in south Asia that Pakola opened its plant in Pakistan.

The third aspect is the colour of Pakola which represents the Pakistan as the colour of Pakola
is also green and the flag of Pakistan is also green. The fourth and final aspect by which it
represents the Pakistan is that, it is the only Pakistani drink which is exported to many countries
including USA and UK.

Strengths Weaknesses
The oldest local beverage company formed Pakola has better quality products but there
on 14 August 1950. So they have better is issue of availability. Sukkur is home
knowledge of market. ground for Pokola as it has production plant
here is in sukkur site area. But there is issue
of availability. One can find Pakola products
hardly in out of ten shops.
It has presence in Pakistan and it is also Pakola spends very less on branding and
exported to different countries. advertising. Whereas its copmepiters like
Pepsi and Coca-cola spend handsome
amount of money on advertising.
It has clever strategy; they don’t provide Another bottleneck in Pakola’s growth is not
coolers to customers rather they provide providing coolers to retailers. Through this
higher margins to customers. Customers put strategy they get some market share but still
Pakola’s products in other company’s they lag behind competitors because
coolers available at their shops. companies like Coca-cola, Pepsi and Nestle

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 refrain shopkeepers to put competitor’s
products in their coolers.
Pakola has better products portfolio. It has
branded water namely Aab e Gul, RC Cola,
Pakola juices and Milk. It has flagship brands
named Pakola Ice-cream Soda and Apple
Sidra.

4.3 Gourmet

4.3.1 Introduction

Mr. Nawaz Chatha started Gourmet as a bakery in 1987.” Gourmet Bakers and Sweets” comes
under one of the largest bakeries of Pakistan. The company is located in Lahore from where it
started its career in traditional foods. Gourmet wants the largest market share through the usage
of updated technology, its own distribution channels and through best quality products. The
target market of gourmet is Punjab as Punjab covers more than sixty percent of country’s
population. Moreover, gourmet also targets almost all restaurants, shopping malls, food outlets
and super stores of Punjab for the availability of its products.

4.3.2 Products of Gourmet:

Bakery items, Sweets (Mithai), water, ice cream, milk, carbonated soft drinks, jam and
Ketchup, Nimko, candy, and juices.

Carbonated soft drinks are available in the flavours of orange, lemon up, cola, and Bon Vivant
Premium Cola.

Market Share of Coke Vs Other brand in Sukkur

No. of cases Percentage (%)

Pepsi 1400000 77%
Coca-Cola 300000 17%
Other local brands 100000 5.55%
Total 1800000 100%

This data was shared by distributor Coca-Cola Sukkur Market.

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Pepsi produces 1800000 cases however, but only 1400000 are distributed in Sukkur while
remaining 400000 are sold in other remote areas of Sindh and Baluchistan.

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 CHAPTER 5

PROJECT DELIVERABLES

5.1 Retail Survey

Methodology

Two hundred shops and hotels were selected as sample for the market survey. This survey was
conducted in the market of Sukkur and Rohri. Where customers (the shopkeepers were asked
following questions).

Q.NO.1: What is the most critical factor that you consider before purchasing from any
particular beverage company?

Q.NO.2: which beverage company according to you, produce and distribute highest quality
beverage products mostly soft drinks?

Survey Terms

Customer: In beverages industry these are individuals that are mostly retailers that are involved
in B2B transactions. Other than retailers there are also wholesalers that are classified as
customers as well.

Consumer: These are end-users of the product.

Consumer demand: Beverages product demanded by end-users at the retail shops

Customer Demand: This is demand of the product by the retail shopkeepers.

Customer Loyalty: loyalty of the retail shopkeepers with particular beverage company due to
long-term relationship.

Price: Profit percentage provided by beverage company to the customer.

Service quality: It includes timely delivery of products, effective complaint handling and
cooperation shown toward customers.

No Asset (Cooler) provided: Provision of assets like coolers, stands and other necessary
equipment required for display and chilling of beverage products

No reason: Customers who were not willing to answer survey questions due to any reason.

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There were some issues like customers responded about electricity concerns that we ignored
because these are beyond the control of any beverage company to resolve at mass scale in the
markets.

5.1.1 Survey Results

Market Survey
1.20%

7.70%
10.93%
5.66% 49.00%

25.50%

Consumer Demand Service Quality Customer Loyalty

Price Asset (Cooler) Demand Not Stated

Consumer Demand

Demand of soft drinks by consumers is very high in the Sukkur market and retailers has been
focusing on consumers, whatever they demand retailers would try to purchase that product.
Our survey results suggest that this factor is most critical for retailers for purchasing any
particular type of soft drink to sell and its intensity in responses is highest as well. 49% of the
responses are related to consumer demand.

Service Quality

25.5% retailers responded that they would like to work with the beverage company that
provides them better service mainly in the times of soft drinks season that is summer when
market becomes tough competitive due to increase in demand. According to retailer’s service
quality is one of the most critical factors while considering working with any beverage
company.

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Price

Rates and prices has been considered as critical factors because when doing B2B transaction,
profitability plays a vital role in decision making. 10.93% retailers considered rates as primary
factors while deciding to work with any particular beverage company.

Asset (Coolers) Demand

7.7% customer responded that they would work only with beverage company that would
provide them with cooler (Fridge) or already working with those which has provided them with
one.

Customer Loyalty

5.66% customers responded that they have been working with beverage company that has
reached them first and they have good relationship with their sales management team.

No Response:

1.2% Customers were reluctant to respond to the question properly and couldn’t decide proper
reason behind choosing any beverage company.

9%

91%

CCBPL Pepsi

This was very astounding, Sukkur market retailers (Customers) has very good image of
products produced by CCBPL. The problem that was found by the responses generated through
second question was that the customers and consumers have clearly different perceptions of
the beverages products. This suggests that there is clearly a gap present in the market of
perception of the beverage products.

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Retail Survey

To get the actual results from consumer’s retail survey was conducted. This survey was not
conducted on mass scale rather a sample of 100 consumers were selected just to match the idea
of actual demand of Pepsi and Coca-Cola brands.

Assumption

Any brand named of any company among both would be mentioned as the name of the
company like Fanta (Coca-Cola) and 7-UP (Pepsi) to minimize the confusion.

Survey Questions

Q No.1: Which cold drink brand do you prefer between Coke and Pepsi?

Q No.2 Why do you prefer that brand?

Survey Results

Sales

14%

30% 56%

Pepsi Coke Nuetral

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Why Pepsi?

Sales

17.85%
36%

46.42%

Easily Available Tastes Better Loyal Customer

Why Coca-Cola?

Sales

30%

70%

Loyal Customer Tastes Better

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5.1.2 Recommendations.

1. Push strategy is required to make necessary improvements. Suggested by the consumer

survey, there isn’t any consumer purchasing products of Coca-Cola based on its
availability. Coca-cola is easily losing this segment of customers. At the same time
retailers also want drinks always available at their outlets so that consumer may not
leave without getting drink if comes for it.
2. Service Improvement: Any company that would improve its service quality would be
able to capture the market because this factor constitutes large amount of concern for
retailers. Distributors that have limited number of delivery vehicles and staff should
increase the number of drivers to according the demand and potential in the market. A
Distributor should pay drivers a fixed plus some variable amount for each successful
delivery. This is because it has been observed that drivers also deliberately skip some
shops that are not very convenient for them to deliver orders.
3. Competitive Pricing: Matching competitive pricing and promotions has been observed
and found through survey that are important in seasonal times to sell more and earn
more. Companies should announce promotions until they get positive marginal returns
because in season times many consumers become indifferent in choosing any particular
soft drink.
4. Coolers Demand: Coolers are major investments of beverage companies towards
retailers, they intend to buy from that beverage company that provide and maintain
coolers (Vizi and DF). Customers often complain that coolers have not been provided,
coolers have not been maintained well with products or coolers have not been repaired.
These are most common concerns of customers that are very crucial for sales and
relationship. Companies that wants to improve their reach and relationship should not
only provide coolers to retailers but also visit them at least thrice or four times a week
to maintain it properly.
5. Customer Loyalty: Survey results show that very small number of customers are loyal
to sell any particular beverage product from any particular company. This is a very
important opportunity for any beverage company to make a better deal with retailer
than competitor and convert that outlet. This is a threat as well however, because outlets
can be changed and converted rather easily by any company through better terms and

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 deals. That makes it highly important to do a cost benefit analysis before investing on
any particular outlet or sign exclusive deals with them through congrats and agreements
to make investment viable enough to mitigate and reduce risk of investment loss.
6. CCBPL: Retailers in the market of Sukkur perceive products from CCBPL to be of
highest quality and better taste. Despite that consumers of Sukkur demand other
beverage products more than that of CCBPL. This suggests that there is huge gap
between consumers and customer’s perception regarding Coke. There is need of pull
strategy to fill this gap of perception and to accept the products of CCBPL as better
than competition. Current marketing efforts are effective but not that much for
consumers to switch towards Coke. There is also lack of push strategy, despite
perceiving CCBPL as producing better products, customers tend to sell more of
competitor products, this is due to better margins, betters service levels and high
consumer demand of those products.

5.2 Invoice Compliance

Invoice compliance is very important for company. This had been a routine activity and task
but company needed to implement check mechanism on that because company had different
distribution in various cities that can have conflict of interest with the company. Company
wants to ensure that exact rates are offered to customers that company has suggested but
distributor can sell at more or less and deliver any invoice other than that of the company’s
system generated invoice. This is very critical for the company to ensure.

CCBPL follows strong ethics and follows all the rules and regulations of the government.
Besides, all this company wants to maintain a stable kind of market and maintain the brand
image as well. local beverage brands in recent times have caused problems for the multinational
brands like Coca-Cola. They highly compromise on quality but sell to customers at much less
price, luckily for them consumer in the market are price sensitive and tend to switch to local
products.

Distributors can then sacrifice their own margins to sell to local markets at lower prices to
complete the targets and remain competitive. However, in peak seasons distributors can sell at
higher prices to gain unjustified profits that are ethical wrong company’s code of ethics and
conduct.

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Other main reason behind company to ensure invoice compliance is that there are multiple
promotions and discounts to customers round a year from the company side. To ensure that
these reach to customers, company has this mechanism of invoice check at retail stores.

5.2.1 Invoice Check Activity

Since February 1, 2018 it was great pressure to check invoices at retail stores and ensure that
they maintain them. team of Sukkur IBA, University was deployed along with team of CCBPL.
To ensure that customers receive correct copy of system generated invoice that company wants
them to have. Each was visited individually, in Sukkur and Rohri and invoices were checked,
if they didn’t have then duplicate copies were given to shopkeepers. This activity was also to
maintain habit in retailers to maintain their bills properly for future concerns and queries.

Company deployed an audit team at the end of February 2018. Audit team was specially
deployed to check whether retailers have correct or fake copy of invoice. They selected 10
random shops from Sukkur and Rohri and asked shopkeepers for copy of bill that they receive
from Coke. Result of the Audit came 100% and activity was a huge success.

5.3 Shift in Cooler Responsibility

CCBPL is undergoing major internal changes within the organization. That includes coolers
responsibility to be shifted towards the distributors. There are many reasons behind this change.

Firstly, company is going through major internal changes under the name of project phoenix
that is national level project of CCBPL. Although details major details are classified but some
that has been discussed includes shifting of cooler responsibility towards distributors to make
as close as possible towards company and make them an internal part of company’s philosophy.
Responsibilities generate relationships and trust.

Secondly, company wanted to divert its focus mainly towards capturing market share and
maintaining it. Responsibility of coolers take much productive time of company employees
that they could spend on customer issues and achieving their sales targets. This gives them
some relaxation to work upon much more productive and critical issues.

Finally, distributors are local in their respective vicinities. This makes them able to handle such
an investment effectively and safely. While previously there had been issues of lost coolers and
shifting problems that company wants to minimize.

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5.3.1 Cooler Shifting Activity

This activity had been mutually done with SDEs (Sales Development Executives) and Team
from Sukkur IBA University, papers were provided to visit each shop where coolers are present
and to manually write down their details one by one. This activity included to write barcode
and asset code of the cooler and also to write down its proper location (Shop’s Name). till the
end of the march coolers were verified and handed over to the distributor.

This activity had been successful altogether and coolers that had missing asset and barcodes
were also verified and reported through their compressor code. However, coolers complaint
handling and supply would still be in authority of SDEs and ASM but if that’s lost then that
goes under the responsibility of the distributor.

5.4 Ensuring Promo and Discounts flow in the market

Company issues regular discounts and promotions in the market to increase sales and to
mitigate the effects of moves of competitors. Promotions and discounts are very important
when firms operate in highly competitive market such as beverage market. This market is
mostly saturated yet has much more potential and regularly new firms enter this market to try
their luck because of higher profits that this business generates if become successful.

Promotions and trade discounts are not same always for the customers, those depends upon the
potential and sales of customers that it generates. The more customer purchase and sale the
stock the more discount it gets and higher promotions are offered to that customer and vice
versa.

5.4.1 Promotional Activity

This is related to sales. By the near end of March, Company announced a special promo that
included buy 6 get 1 free on the 1.5 litre SKU of CSDs. This was a major promo in the market
and all the PSOs were ordered to sell as much as they can because 1.5 litre is among highest
running SKUs of Coca-Cola beverages.

On the other hand, the team from Sukkur IBA University was ordered to sale with a twist. They
were ordered to sale with this promotion but only on the outlets of Pepsi. This activity included
not only sales rather also convince the retailer that are solely selling Pepsi to sell Coca-Cola
that proved to highly challenging. Target for each day was at least 100 cases.

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This promotion was three days only and it proved to be a great boost to enter a new season of
beverages with selling more than 1000 cases each day of 1.5 litre. Total sales of SIBA
University team were 350 cases that are huge considering 3 days and selling to the outlets of
competition. All three targets were completed rather more sales were generated.

This activity also demanded to make retailers aware of the promotions that they shouldn’t miss
out and make sure that all the stock reaching those days were included with the promotion.
This promotion was same with all the retailers.

Apart from this one-time promotional activity regular promotions are always made sure that
are known to customers and are receiving systematic bill that include discounts and
promotions. This is very critical to consider because in a market where one wrong move or
dissatisfied customer can switch to competitor easily, company cannot afford risk.

Wholesale Survey

Wholesale is an essential part of the supply chain and overall business for CCI. Wholesale
helps to sell in bulk and reach far remote areas. However, there are some problems associated
with the wholesale business like wholesale generates a problem of cross-selling and it creates
price war in the market. This creates disturbance and hindrance in the market.

To overcome these problems and to minimize the disadvantages. A wholesale survey is

conducted to rationalize the exclusive discounts given to the wholesalers and to make necessary
decisions whether to continue doing business with them or not.

Survey Limitations

1. Survey was conducted to only wholesales that keep all kinds of beverages.
2. CCI exclusive outlets were not included in the survey.
3. Survey was limited to Sukkur city only.
4. Only wholesalers were included that were available in the CCI database.

Survey Results

No. Outlet (Wholesale) Name Total CCI CCI % Decision

Potential Potential
Cases
1 Malik Naeem 100000 6000 6% Keep current
discount

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2 Ahsan Traders 400000 10000 2.5% No exclusive
discount
3 Haji Noman 250000 5000 2% No exclusive
discount
4 Abdullah Traders 400000 8000 2% No exclusive
discount
5 Shabir Cold Corner 800000 25000 3.125% No exclusive
discount
6 Abdul Hameed Store 1000000 20800 2.08% No exclusive
discount
7 Rafique Cold Corner 500000 520 0.104% No exclusive
discount
8 Irshad Cold Corner 100000 1600 1.6% No exclusive
discount
9 Pakistan General Store 100000 10000 10% Increase
discount
10 Amir Traders 200000 20000 10% Increase
discount
11 Memon Beverages 300000 20000 6.67% Keep current
discount
12 Bismillah Traders 300000 1500 0.5% No exclusive
discount

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 Sales
16.66%

66.67%

1.4

Increase Discount No Exclusive Discount Keep Current Discount

Rationale behind Decisions:

1. The wholesalers that keep at least 5% of the CCI stock were kept active for doing
business with them and discounts were kept intact.
2. The wholesalers that keep at least 10% of the CCI stock were to be decided to continue
doing business with them. these may get extra exclusive discounts if they make
exclusive contracts to increase CCI percentage in keeping stock.
3. Wholesalers that keep stocks below 5% were should be excluded from offers of
exclusive discounts.

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APPENDIX

TORs

Project Background

Project Phoenix has been designed to provide vigilant observation of real-time issues prevailing
in beverage market and to develop alternative solutions for those problems. Project is also
related to understand beverage industry as whole to get a broader view of operations and
activities prevailing in the market.

Project Scope

Project is not only restricted to understanding the market but actually involving in the activities
of the PSOs (Pre-Sales Officers), SDEs (Sales Development Executives) and actively
suggesting strategies to ASM (Area Sales Manager) to make sales and work procedures better.
This project provides complete nourishment of personal skills from bottom (market activities)
to Executive (decision making level). This is a two-way transition of benefits, for students, it
is for preparing better for their career and for company to have extra support staff.

Project’s Geographic Scope

Project was first designed for Larkana, Nawabshah and Sukkur. Later higher authorities revised
the decision and the project remained for Sukkur only. Decision was changed because Sukkur
had been a region where, there is a lot of work, market problems and lot things to learn.

Project Objectives

6. Competitor Promo check mechanism

7. Matching promo and trade discount reflection check
8. Voyage invoice Check/Compliance mechanism
9. Whole Sale Survey
10. Shift in Cooler responsibility (Delegation to Distributors)

Project Output/Deliverables

5. Voyage invoice compliance will be ensured

6. Distributors will feel accountability for coolers safety and verification
7. To get competitive by vigilance observance of competitor’s activities
8. Ensuring promo and discounts flow in the market.

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Timeline of the Project

Feb Week 1:

 Understanding the distribution and value chain activities.

Week 2 to 3
 Route riding exercises with PSOs.

Week 4
 Assuring Invoice Compliance in the market.
Mar Week 1:
 Retail survey of the industry to get better understanding of marketing and
promotional activities of competitors and devise a proper competitor promo
check mechanism.

Week 2 to week 4
 Processing the results of retail survey to suggesting strategies.

April Week 1-3:

 Activities related to cooler verification and cooler shifting.

Week 4:
 Discussions on various real-time market problems related to coolers and
customers.
 Suggesting alternative solutions for proper cooler verification and safe handling.

May Week 1-2:

 Visiting different distributions in other cities with ASM (Area Sales Manager) in
order to find best practices that could be used in Sukkur.

Week 3:
 Continuous visits of market with SDEs and ASM and discussing major market
issues and discuss possible solutions.

Week 4:
 Market survey to test feasibility of alternate solutions.

June Week 1-4:

 Finalizing all the activities in the proper project file to summarize the months’
work and prepare solutions for the company that would be feasible and creative.

July Week 1-3:

 Submission and Final presentation of the project before judges and gather
constructive feedback to be able to understand industry in much better way.

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 Week 4:
 Closure of the project by getting proper feedback.

Market visit report sample for April 10, 2018

No. Outlet Customer Case Complaints Possible

Name Status Orders Solutions
1 J.J Bakers Dissatisfied 9 Delivery Ensure timely
Vehicle Never delivery
Stops by (Spot PSO should
Sales) be instructed
No timely to visit
Delivery regularly.
Very Few
Visits of PSOs
2 Kiran Highly - Delivery PSO must
Bakers Dissatisfied Vehicle visit daily to
doesn’t stop by
collect
(Spot Sales). amount or at
PSO visits least visit
rarely to every two
collect creditdays after.
amount. Delivery
Vehicle must
be ordered to
stop by if
anything is
needed.
3 Sodagran Satisfied 9 No Invoice
M/S Computerized compliance
Invoice is should be
Provided. ensured.
4 Friends G/S Dissatisfied - DF complaint DF complaint
not resolved should be
for 6 months. resolves as
Schemes are soon as
not timely possible
communicated. otherwise
Unsupportive customer
PSO. might switch.
No timely Timely
delivery. delivery
should be
ensured to
make

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 customer calm
and satisfied.
5 Al-Saif G/S Shop Closed - - -
6 Khuram Tea Satisfied 6 - -
Stall
7 Mehran Pan Dissatisfied - Stock is short Short items
Shop all the times. should be
Order communicated
processing and prior taking
delivery takes orders and
many days. making sure
their
availability.
Delivery
Vehicles and
Staff should
be increased
as this issue is
almost
persistent with
every
customer.
8 Pizza Palace Satisfied - One DF Customer
complaint. wants DF
replacement
so, should be
provided if
possible soon.
9 Ghousia Satisfied 4 Wants display If possible his
Biryani boards outside concern
shop that was should be
promised to addressed.
him till 1st
April.
10 Hill Top Bar Satisfied - Two Vizi
BQ complaints.
11 AB Bakery Satisfied Yesterday - -
order was
taken.
Waiting
delivery.
12 Kiran Baker Satisfied Yesterday - -
(Station order was
Road) taken.
Waiting
delivery.
13 FRY1 Authorized - - -
Person not
available.

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14 Kareem Infuriated 20 Limited Stock Concern
Foods available. should be
No on time resolved with
delivery. few visits of
Customer officers
wishes to mutually.
switch to
competitors
15 Abassi Hotel Satisfied Waiting Regular cold Customer was
order drinks might briefed that
delivery. be expired this might be
since they lack a fluke.
gas (RGB). Further this
concern
should be
confirmed.

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Wholesale Survey Questionnaire.

Discounted Outlet Verification Survey

This survey is conducted to measure actual volume potential of the whole sale outlet

Outlet Name*

Sub Trade Channel (As per actual observation) *

Territory*

Outlet Status*
o Outlet Exists
o Outlet exists but stopped business with CCI
o Outlet is permanently closed
o Outlet does not exist
Outlet is CCI exclusive*

o YES
o NO

CCI Total Potential (1 Year) *

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Total Beverage Potential*

Recommendation
o Continue with the same discount
o Opportunity to rationalize discount (based on new volumes)
o Potential to increase discounts (based on new volumes)
o Discontinue business with outlet

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CCI Subsidiaries (Around the World)

Source: AC Report

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Source: brandwatch.com

http://www.nielsen.com/pk/en/insights/news/2017/when-it-comes-to-beverages-global-
brands-are-quenching-consumer-thirsts.html

https://www.brandwatch.com/reports/best-brands-for-cx/view/

***The End*****

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Page | 49