MD messagePakola is the oldest and the leading beverage brand of our country. Pakola was established on 14th August 1950. The flagship Pakola Ice Cream Soda with its green color and tingling fruity flavor is nearly as young as the nation itself. This year, we are celebrating the 55th Anniversary of Pakola and I feel proud to re-launch the web site of Mehran Bottlers Pvt. Ltd., manufacturer of Pakola brand. Our mission is to provide our consumers all over the globe with premium quality beverages with a vast variety that guarantees consumer satisfaction. Our objectives are to continuously globalize our business with un-match quality and services to our consumers. We have had a magnificent past and our future holds the promises of even greater achievements, provided we remain forward-looking, performance-oriented and capitalize on our strengths and eliminate our weaknesses. I hope that through our cyber presence you will get to know our products and us better. Thank you and do visit again. Zeeshan Z. Habib Managing Director Mehran Bottlers (Pvt.) Ltd Contact information Marketing manager Mr. Muhammad mubeen munawar Main office & factory C/5-A S.I.T.E. Karachi -75700, Pakistan Ph: 2570614-5 Mobile: 0333-3558998 The problems faced by Coca Cola. Back in 1980’s, the coca cola company faced a market problem. It was Published in the press that it contributed three days of their profits earned globally to Israel. This created havoc for the cola market in the Muslim world. Most Muslim countries banned the coke and refused to import or manufacture it in their countries. As a result, there were many other companies located in Muslim countries who introduced their own colas. They all were manufactured in the Muslim countries and distributed in the Muslim world. As a result of all this, the following cola’s were introduced: Zam Zam cola was launched from Iran. Mecca cola was launched from Saudi Arabia. But these colas failed to create a hype which was required to sweep the market shares of Pepsi or Coca cola. The initial launch did create awareness and many people opted to buy the Muslim cola’s. These companies, failed to generate enough sales, because of poor marketing and promotional strategies. Finally they withdrew, and nowadays they are not even available everywhere easily. To fill the gap left by the Muslim colas, and to cater a market which is spreading fast, flavored colas were introduced by the Pakistan Beverages.These colas are catering to a market which is usually teenagers and youngsters. After capturing this market, the company plans to expand to other potential customers like adults (middle-age men and women).Pakistani generation is fast getting aware of the drawbacks of caffeine, and other harmful substances included in these dark colas. Even the Mountain Dew is the only lemons drink which ahs caffeine. Flavored colas are also targeting this market that is highly health conscious and would even pay a higher price to avoid harmful substances in beverages. Dark colas usually have more calories. As the number of people having heart problems and dietary misbalances are increasing, so is the awareness to avoid useless calories in the beverages. This market needed beverages which were pleasant to drink as well has minimum of calories. As mentioned above, since the target market is usually the teenagers and youngsters, the drinks are made into trendy bottles and colors. The advertising is also following “the intrend” to attract the young population.The company’s apple sidra, is a real apple juice. Therefore it is catering to the market which wants to substitute their daily drinks with juices. The taste does not include any extra ingredients or any other artificial flavors. The products 1. bubbleup The site: The site of pakola is one of the best sites for any beverage company in Pakistan. It caters not only the curious visitors but also serious seekers of business. The site provides a detailed form and inquiry for any retailer, whole seller, or any other institution and individual wanting to buy medium to large orders. The orders could be of any product which the company provides. The person can visit the site and fill out the form. The company has a detailed database which responds quickly and efficiently to all the applications. A reply to inform the customer that the email has been received is delivered at the returned-email. The customer is informs whether his/her application is accepted or not. The address and contact information is confirmed and the delivery time is also confirmed and re-confirmed. The delivery usually takes place on time. There are few variations in the time or date and this also occurs due to human error or due to the size of the order. The site also provides any news and information regarding the products and the company. Thus this becomes a useful site for the employees of the company as well. The site address is www.pakola.com.pk/onlineorder. The company’s hierarchy the company has different managers for each particular brand. Each brand manager is responsible for the production, storage, and distribution of the his/her particular brands. Under the assistant brand managers come sales officers who are responsible for particular territories. Under each sales officer is the sales person. They vary in number considering the size and the geographical area covered under each sales officer. This is the company’s hierarchy General Manager Senior Brand Brand Manager Brand Manager Brand Manager Asst Brand Mgr Asst Brand Mgr Asst Brand Mgr Corporate profile Pakola The Brand Pakola is one of the most popular brands in Pakistan. The brand was created on 14th August, 1950. As per our slogan, “DIL BOLA …. Pakola”, we believe that Pakola is the heart beat of the nation and with its amazing taste holds the potential or ride the taste buds of the consumers at home and abroad. Although the green drink “Pakola Ice Cream Soda” is aynonyms with the name Pakola, but that’s not all, Pakola gives sensation by bottling other fruity flavors namely Pakola Orange, Pakola Lychee, Pakola Raspberry and Pakola Guava. Our Quality Food Safety and Environment Standards Mehran bottlers is the 1st bottling plant is South Asia. Which has been certified to integrated management system based on (ISO 9001: 2000), (ISO 14001: 1996) and (RVA HACCP) standard. Our quality and food safety system follows the FDA GMP requirements and codex. Our products are manufactured under strict CGMP and Hygiene controls. Our Technical Team Mehran bottlers has well experienced people in technical side. There experiences and on going trainings make them more confident and prepare to face all challenges. Painting the Globe Green Pakola is Pakistan's national drink but its might is spread all over globe. It’s the only Pakistani soft drink which is available in North America, Africa, Europe, Far East, India, Afghanistan and Middle East. Production Mehran bottlers operate one of the most modern can filling plant in Pakistan with a filling capacity of 300 cans per minute. The plant is fully computerized and conforms to the highest international quality standards. Apart from the above, Mehran Bottlers also operate a bottle filling plant with a capacity of 240 bottles per minute. The plant can fill both glass and pet bottles of various sizes. Distribution Pakola is distributed nation wide through our network of vehicles and distributors. The company maintains a fleet of 56 trucks for operations in the Karachi base market. Human Resource The company employees 300 personnel at its Karachi plant. Constant efforts are initiated by the management to train and upgrade the employees and to provide better training and working environment. Vision and mission Quality Policy Vision To be SECOND TO NONE in exceeding customer expectations for Taste and Flavor, Product Safety, Quality and Price Competitiveness. Mission To develop, implement and continuously improve the Integrated Management Systems in a culture of continuous improvement which: Directs the continual up-gradation for efficient and environment friendly manufacturing technology. Monitor and improve the efficiency and effectiveness of all business processes. Promotes professional and flexible work environment, teamwork and innovation through employee participation and process ownership. Drives customer orientation at all levels within the organization. Monitor and economize the Cost of Quality. Environmental Policy Vision To be SECOND TO NONE in protecting OUR SHARED environment, as EARTH MATTERS for our future generation. Mission To support this vision, we will continually: Comply with applicable local and other environmental regulations and strive to secure fundamental reforms that will improve their environmental effectiveness and reduce the cost of compliance. Improve the environmental performance of our products and processes by minimizing the negative impact on the environment and adopting where practical cleaner production and recycling method. Protect the health and safety of our employees and the surrounding human communities and ecosystems. Use natural resources, including raw materials, energy, and water, as efficiently as possible. Take into account the principles of sustainable development in conducting its administrative, manufacturing, marketing and social activities. Participate in initiatives to improve the Quality of the environment. Food Safety & Hygiene Policy Vision No comprise on consumer health by maintenance and improvement of Soft Drink and Drinking Water safety and workplace hygiene conditions. Mission To develop, implement and improve the Integrated Food Safety and Quality Management Systems in a culture of continual improvement which: Provides framework based on HACCP, CODEX Alimentarius and CGMP for safeguarding the consumer health. Supports the use of scientific knowledge, risk analysis and controls in the enhancement of hygiene conditions and practices. Educates people on Good Manufacturing and sanitization practices. OVERALL TREND The overall trend for the whole market prevailing right now is that : • it serves 65% of colas drinks which include Pepsi, coca cola and the like. • 22% of lemon sodas are served. Among lemon sodas it includes mountain dew, seven up, bubble up, sprite and the like. • The 15% is served with apple soda, Fanta, Marinda and other sorts of juices. PRODUCT LIFE CYCLE The product life cycle for Mehran bottlers is that they are still in their maturity stage. They still have a long way to go. They need to advance and strength their product life cycle so that they may stay longer in the market. They have a lot of potential as they are the only bottlers serving the huge market. The demand for mountain dew is increasing. It is because it has a different taste and it also has caffeine. This means that it is the only soda drink which has caffeine in it. If the trend of the market switches it is going to switch towards the lemon sodas. EXTERNAL FACTORS The power cola or double cola is decreasing in demand. It is no more to be seen in neither the market nor it is demanded for. Therefore the trend goes that power colas are not demanded any more. The 15% demand for lemon sodas for example apple sidra and ice cream soda has to stay like this otherwise they will loose their boundary. The external factors which influence the demand for their products is that the franchise from the United States of America do not support them. By the support we mean that they are not willing to help in for example the launch of the product or the marketing of the product. When double cola was launched the demand for it was so many 3 to 4 years back that the melas for example fun land melas and melas in other recreational areas, the people themselves used to contact them for double cola. The cola 1 was asked for only in NR bottles. When dawlance used to launch their product for example their new refrigerators they used to show double colas in the fridge for promotion without even making a contract with Mehran bottlers. Promotion for double cola was easy. Promotion The term selling and promotion have the same concept and meaning. And they refer to informing and persuading a market about an organizations product or service. The intention behind this effort is to buy the product or service. In marketing mix of an organization, we find that selling (promotion) is an element of organization’s marketing mix. There are five tools which serve the purpose of promotion i.e. informing and persuading a market about a product or service. These tools are: Advertising, personal Selling, Sales Promotion, Publicity, Public Relations. Pakola also incorporates these promotion tools for selling purpose. Following are some of the ways through which this goal is met. 1. Schemes : In Ramadan Pakola reduces its rates on its drinks so that people consume more of it. 2. They make sure that their products are available in occasions such as melas / charity shows. 3. They have their stalls in every major exhibition that is held at Expo Centre’s across Pakistan. 4. A well known channel of Pakistan, KTN has aired shows where stalls of Pakola were placed. The show was telecasted twice and had a huge viewership. 5. Advertisements are shown at major cricket matches across Pakistan, these matches are seen in every corners of the country. 6. Pakola has sponsored many cycle races to promote its image and social awareness of exercise. Market penetration The company is in the phase of introducing few new flavors in Karachi. Therefore they are trying to overcome their competition through market penetration. SEAview marketing strategy Lately on eid , the company distributed free samples and promotional material to the Karachiites on the SEaview. This did promote their product and help the company to build their image in the minds of the consumers. Distribution Distribution Basically the mehran bottlers is the sister concern of Pakistan beverages. Pakistan beverages provided manufacturing and distribution facilities to, Sukkur, Pasni and Gwadar. The rest of Pakistan is covered by mehran bottlers. Their factory and distribution centre is used for the distribution for the rest of Pakistan. Therefore for the company there is little room for growth and increasing their territory because of the boundaries places by the parent company Pakistan beverages. Mehran bottlers cover Karachi, and interior Sindh. Their main markets are abroad. They provide export quality goods to US, UAE, Canada etc. Pakola follows a direct distribution network where by Pakola is distributed through various retailers and wholesalers. It is readily available in most restaurants and hotels, schools and colleges and other retail outlets. Pakola is sold for Rs 9 or 10 to the retailers and they can in turn sell it for Rs 11 or 12, making an average profit margin of Rs 1 or 2 per bottle. ZONAL AREAS Right now only in Karachi there are 4 zones On the outside station they have Interior Sindh Balouchistan, and Gawadar Procedure of complaint “Customer is the King”. This philosophy should be kept in mind when dealing with customers because it is because of them that the profits pour in. A big successful company always uses different tools to gather feedback about its products and acts on customer complaints. Complaints are usually received by phone calls, mail, customer handling, or through distributors etc. At Pakola, complaints are gathered by marketing department which forwards them to the quality assurance department. The purpose of this department, as the name suggests is to make sure the products reach customers in the best shape and that the customer is satisfied. If there is any sort of discrepancy, the dept makes sure the problem is rectified. Getting ISO Certification has helped Pakola greatly. They are able to have a more firm control now on the quality standards. After ISO Certification, the complaints have decreased by 90%. Complaints usually are about the flavor. They have to keep a strict check in order to ensure premium quality. The usual expiry period of the drink is 9 months to 1 year. Once when this much time elapses, the flavor is affected. Some of the complaints are because human error as well, such as putting 11 bottles instead of 12 in a carton. The bottles used need to be very clean otherwise the flavor is effected which results in customer complaints. Pakola uses state-of-the-art technology to ensure clean bottles and efficient filling. The glass bottles are placed in the washer where they are thoroughly flushed with a mixture of water and plastic soda. Then the bottles go through filter where they are soaked clean. After this the bottles are filled, then they go through punch machine where they are capped, this phase is called crowner. The assembly line then flows to “caser”, where these bottles are cased and further sent to crate maker. The crate maker fills the crates and the bottles end up at distribution. Sales returns The sales returns of the company have reduced immensely in the past. The complaints and sales return are down by 80-90%. This was made possible in few years by the motivated work of the management as well as the sales force. As a result, the company now enjoys ISO standards, at its office and warehouse. Their work methods are also bought to same standards. JOB DESCRIPTION pakola consider following sources for sales recruits: • • • • Educational Institutes Internal Company Source Company Sales People Advertisements A Systemic Approach to Salesperson Selection The approach used by Nestle is: • • • • Resumes Interviews (3-stages) Psychological tests Trial Periods Recruitment The recruitment at mehran bottlers occur when the applicant go through the above given steps, the selection takes place by the consent of the sales officer but the final appointment is carried out by the sales manager. Sales Training and Development There is a common misconception that a salesman is born, which is a clearly a wrong concept, because they are actually made. Once new recruits are hired, they must be given adequate training and orientation, so that they have ample knowledge about their respective commitments. Sales training should come along the Salesperson’s career life cycle. Like a Product’s Life Cycle, a human also has a career cycle, which needs its nourishment altogether. A Salesperson’s career life cycle also comprises of 4 stages; Preparation, Development, Maturity and Decline. The first question is, why is training so necessary? There are two major reasons for that; firstly to develop the right working habits, and secondly, to offset the detraining that one encounters daily. Here, at mehran bottlers, with many sales personnel, it is also obligatory that they should be given the due training, due to the above stated reasons. Having a superb reputation in the market, their salesperson must carry themselves in the same manner. At mehran bottlers training to the Sales staff is given on four occasions: 1. 2. 3. 4. Orientation of new Sales Recruits. When a new Product is launched into the market. When a new strategy of activities is devised. When an old product needs refreshed outlook or a new campaign is given to promote it. Orientation of Sales Recruits When new sales recruits are hired, they must be given a clear orientation to the objectives and strategies of the company. They must be shown all the root canals and work methods of the company. This can be done by an Orientation. At mehran bottlers, every batch of new sales recruits is given such an introductory orientation so as to acquaint them with the company. This also gives the company managers and executives the opportunity to interact with these new recruits. Product Launch Whenever a new product is launched into the market, certain training is required so as to give information to the sales people about it. So that when they disperse into the market they can clearly handle any objections they are confronted with. Designing a Formal Training Program At mehran bottlers, a yearly training program is devised, which is mandatory for all sales personnel. This is done to develop the employee abilities to (a) manage themselves (b) work with others (c) lead others. Few of the salespeople were also exposed to overseas training and 10 of then were sent on international assignments for developing their skills and experience. There are four typical questions which need to be answered; before the training program can be formulated: • • • • Which salesperson should be trained, and at what points in their career? What should the training program cover? How should the training be done? Who train the salespeople, and where does the training fit into the Organization? To answer such questions; definite training techniques are used such as Lectures, Discussions, Role-playing, visual aids and high tech training methods. The Methods which has adopted to train their salespeople are: Lectures: This mode is the most important as it practically covers all theoretical and practical aspects of the training camp. Visual Aids: The most commonly used format of training is done by visual aids. This is advantageous so that it can be repeated and seen again. High-tech training methods: Computer interactive details can also help as training factors. Nestle’ recently upgraded its software and hardware capabilities, so it had to train its staff and managers with the up to date technologies. Evaluation and Follow up Top level executives always need immediate feedback as to the success of the training. They need evaluation and results of the trained personnel. At mehran bottlers sales people are evaluated on the basis of “SALES PERFORMANCE AGAINST STANDARDS” (i.e.) by comparing the performance of trained and untrained people against defined standards. This occurs on an individual level. Every person is judged according to the standards kept by the immediate sales officer. The training and development of the employees of Mehran bottlers is getting much better day by day. They are now more systematic then they used to be previously. They are getting more organized training. They also hire people to develop their employees in getting more prompt in customer complaints and handling emergencies and other daily problems. They give each if their employees a selling book which is much categorized and easy to use. In that book they write what they have to do for the whole day. It keeps a record of their activities and functions for the whole day. The company’s log book The company gives a book to its employees which holds all the information regarding different policies and procedures for the sales people. Compensation packages The compensation at mehran bottlers is based on the hierarchical level in the organization. The following hierarchy exists Amount Head marketing manager Rs. 50000 and above General Manager Rs. 25000 and above Zonal manager Rs, 9000-Rs.10000 Sales officers Rs. 4000-Rs. 5000 Sale person Rs, 2500-3000 Commission plans: The commission is given at every level of the organization. The marketing manager informed us that the commission system is different and varies at each level if hierarchy. The structure is different and so is the percentage given of the total sales volume generated by the individual. For example if the zonal manager is earning 10% commission on a particular level of sales, the sales person at the lowest level is earning maybe 5% of the sales generated. The company uses fixed system of commission. No complexities occur and there are no quotas. Bonuses Bonuses are provided for extra ordinary performance. This occurs when particular incentives are given for achieving extraordinary performances. This happens when new products are launched; new markets are captured, particularly around eid or high sales seasons. Time management Time management refers to the practice of allocating a sales person’s time in order to maximize his or her productivity. Time management is the asset of the mehran bottlers. The reason of their success story is the belief that ‘time is money’ and nothing can overcome this fact. They incorporate this philosophy in each and every individual of their organization as the key driving force. Nobody is to waste any time in ‘doing nothing’. Mehran bottlers discourage any laziness or lethargy showed by any worker in the factories or any sales person on the fields. They are supposed to put their maximum effort in generating results and ‘delight’ their manager. They are not only to meet deadlines given by the company but also according to individual capacity ‘do more in little time’. This philosophy is incorporated in any new employee or sales person at its orientation time. The company believes in reducing the time spend by every sales person in a particular territory by maximizing efforts and minimizing time taken to do a particular job. The sales person in the mehran bottlers are supposed to spend considerable time in preparing for the sales call. They are supposed to make the sales call with complete data, report of the territory and of the particular customer. They are supposed to spend time in gathering data, habits, requirements from the market and other related information for the company. They are also supposed to make records of all the potential buyers and their industries. These reports are used not only for present time period but could also be used by other sales people, for reference, in the future. This way they company would be able to hold records of whatever territory and the good contacts in that territory. The unproductive time is also made into use by the company. Unproductive time is those times that generally do not produce any results and time is wasted in traveling and waiting. This unproductive time is generally used by the company’s sales person in trying to find other opportunities to expand their market or find more sales calls. Therefore to maximize the sales efforts, a balance is worked out between the managers of a particular territory and the sales force in order to maximize their output in a shortest period of time. Regular meetings are arranged between the sales force and the managers in which they discuss their mutual concerns. The time allocated in the offices; finding new customers, preparing new sales call etc; is balanced between times allocated in the field. This whole process depends upon the territory the individual sales person is catering and the competition prevailing in that particular territory. The following ways are ensured: 1. Routing = this procedure involves finding a particular territory and then routing the schedule for the sales force in order to cover maximum territory in the allotted time. This is also done in mehran bottlers with the consultation of the managers. 2. Scheduling = the manager and the sales personnel work out a schedule for the trips. The sales people are given the buffer time as well as some autonomy in order to schedule their time in the wake of unplanned circumstances. At mehran bottlers, this is a big innovation of plan. Although brands abroad does use Time management as they fully understand its magnitude. We had noted that the managers here do not recognize this value as yet but are more prone to move in that direction. The Managers are developing this scarce knowledge and attempting to enforce this into their salespeople. Time Management is defined as ‘Structuring a sales person’s time resources so as to maximize productive time and minimize wasted time.’ A lot actually depends on the company as well; such as Organizational Discipline and management. Another important aspect to time is the Territory Design of the Company, which acts as a regulating feature to time and its implication to Salespeople. Planning, Discipline & Organization are the key points to Time Management Skills. This era brings the Challenge of Sales Productivity; which can only be achieved with Time competence. Pakola Managers also emphasize the magnitude of Time Value; as they have to focus geographically. This makes them conscious to the Time factor and compels them to force their subordinates to regulate their timings. Nevertheless, it was understood that not, as much as required, effort is being put into this fundamental concept. Territory management Under the concept of territory management, sales representatives are assigned particular territories and accordingly they are placed in charge of their own territories. In other words sales representatives become territory managers. Territory management can be defined as the planning, implementing, and control of sales activities. Right now the pakola company have recently launched new products (new flavors) under the green pakola umbrella. As the green pakola is the symbol of Pakistan it was successfully distributed and has a name. it has become a brand with a successful market. When it was launched, it catered to the cities only but now almost all over Pakistan, people not only identify the cola with Pakistan but also enjoys the drink. It has been made available on almost all corners of the country. Pakistani’s living abroad imports this drink in order to enjoy it abroad. Supervising the sales force Supervising the sales force refers to guiding a sales force on a prescribed line of action regarding sales efforts to be made. Routine conditions: here at mehran bottlers, supervision and reporting takes place on a routine or on a regular basis. The manager cheeks on the sales person before the sales trip and after the sales trip. The sales person is supposed to file in the reports and other materials necessary for the sales call. This policy does not only apply to the sales people making the sales call in the city or outside the city, or in any other territory. Emergency conditions: the emergency conditions apply to unforeseeable situations which arise in unexpected circumstances. These include burning of a particular warehouse, damage to the stock, stock expiry in the warehouse, change in government policies etc. at mehran bottlers the sales people are supposed to report any emergency to the managers. Firstly they are given the autonomy to deal with the situation in which they find themselves and act on their own initiatives. They are supposed to protect the company’s property, image and product in every situation. If they feel that the situation is not in their control, they are supposed to report to their immediate supervisor for further assistance. Ay mehran bottlers each and evry individual makes a difference. The managers have a moral and an ethical duty to understand the needs, wants and other requirements of his/her sales force and take necessary actions in order to motivate them. Strong leadership and guidance is required to motivate the workers to a level where their productivity is at the maximum. As the launch of the new products require initiative, not only form the company but also at the individual level where the sales force are working at the maximum potential. Sales forecasting/forecasting demand Forecasting market demand or sales forecasting means: to estimate the sales volume (in rupees or product units) of company’s product of services during a specified future period of time under pre-determined marketing plan and environmental conditions. • Estimation of the total industry’s potential • Estimating company’s share The forecasts are usually based on past trends. The marketing manager of mehran bottlers informed us that the forecast are very predictable. They are usually seasonal and follow trends. The company easily forcasts the company’s expected returns in the coming fiscal years. Suggestions The pakola company is one of the most successful brands in Pakistan. It is one of the benchmark brands which has been associated with the image of Pakistan. It has retained its market share as well as increased it to a considerable percentage. By looking at the whole company and interviewing two managers working at the company, we have concluded the following suggestions: • The company need to strnghten itw workfore. It has to reduse its routing time which they themselves confess is immense. • The company needs to promote their product not only in the citites but employ aggressive markting strategies for the rural parts of the country. The eople of Pakistan need to be reminded that pakola and its associative products are the drinks which normal Pakistani should consume. • The company should employ their wn distribution network. right now they employ other distribution agencies. By employing their own distribution they would definitely reduce on their costs and would become more competitive • The company need to expad their territories. Right now they cater to a small market in sindh. They need to expand it and include other cities. • The company needs a vision to broaden its scope to other metropolitan cities of Pakistan. • To expand their base in the foreign countries as well.