Optimizing Transportation Efficiency at PepsiCo
Optimizing Transportation Efficiency at PepsiCo
Table of Contents
1. Acknowledgment 1 2. Executive Summary 2 Introduction to the Industry 3-24 4. Introduction to the Organization 5. Training Program 5.1 Duration of the Training 5.2 Objective of Training 5.3 Responsibilities as a Student Intern a. Scope of Duties Assigned c. New Knowledge Acquired d. Problems Encountered e. How Experience Impacts your Career 5.4 Limitation of training 6. Suggestions and Conclusion 7. Bibliography 30 30 30-31 32 32 33-34 35 29 29 25-29 3.
Acknowledgment
I express my thanks to Varun Beverages Ltd (Bhiwadi) for granting me the permission to work with the esteem organization. I am also thankful to Mr. Mukesh Khandelwal (Purchase Manager), Varun Beverage Ltd. who guided and helped us in all possible ways they could, at every stage of the project. I am also thankful to Mr. Himansu batwara and [Link] Sharma Who guides me and gives me all information about the Transportation of company. I would also like to thank all the Executives & staff of The Company who provided me all the relevant information and their kind support, on the basis of which this report has been prepared. I would also like to thank my teacher Mrs. Dhwani Mishra for steering my confidence and capability for giving me insight into training by giving me exposure to the arena of competitive and real world. Lastly I would like to pay our special regards to my parents and my friends for their Encouragement and full support for completion of this project work.
Executive Summary
PepsiCo is one of the oldest, largest and most successful beverage and snack food companies in the world. PepsiCo was founded by Caleb Bradham in 1902 in USA. Today PepsiCo and its affiliates operate in more than 140 countries in the world and generate revenues in excess of $ 40 Billion. In its pursuit of never ending growth and expansion, PepsiCo entered India in 1989 in a joint venture with Punjab Government. However, PepsiCo India very soon started its beverage operations in collaboration with the R K Jaipuria group.
Analyzing the company transportation reducing the detention in transportation Reducing the cost of transportation and get optimum way of transportation
(NYSE: PEP) Food Non-alcoholic beverage New Bern N.C, U.S. (1890) Caleb Bradham, Donald M. Kendall and Herman W. Lay Purchase, New York, U.S. Worldwide Indra Nooyi (Chairperson and CEO)
Revenue US$44.3 billion Operating income US$7.3 billion Net income US$6.24 billion Total assets US$39.8 Billion (FY 2009) Total equity US$16.8 Billion (FY 2009)[2] Employees 203,000 (2010)
Divisions PepsiCo Americas (PepsiCo Ameri Food, PepsiCo Americas Beverages), PepsiCo International. Website [Link]
Pepsi-Cola Venezuela
Products
Pepsi Diet Pepsi Mountain Dew AMP Energy Aquafina Sierra Mist Slice Lipton Iced Tea Starbucks Frappuccino Mirinda Izze Tropicana Products Copella Naked Juice Gatorade Lay's Cheetos Kurkure 7up Fritos
HISTORY OF PEPSICO
1893--Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins
experimenting with many different soft drink concoctions; patrons and friends sample them at his drugstore soda fountain.
1902-- Bradham applies for a trademark with the U.S. Patent Office, Washington D.C.,
and forms the first Pepsi-Cola Company.
1934--A landmark year for Pepsi-Cola. The drink is a hit and to attract even more
sales, the company begins selling its 12-ounce drink for five cents (the same cost as six ounces of competitive colas). Caleb Bradham, the founder of Pepsi-Cola and "Brad's Drink," dies at 66 (May 27th, 1867-February 19th, 1934).
1941--The New York Stock Exchange trades Pepsi's stock for the first time.
In support of the war effort, Pepsi's bottle crown colors change to red, white, and blue.
1960--Young adults become the target consumers and Pepsi's advertising keeps pace
with "Now it's Pepsi, for those who think young."
1963-- Pepsi-Cola continues to lead the soft drink industry in packaging innovations,
when the 12-ounce bottle gives way to the 16-ounce size. Twelve-ounce Pepsi cans are first introduced to the military to transport soft drinks all over the world.
1965--Expansion outside the soft drink industry begins. Frito-Lay of Dallas, Texas, and
Pepsi-Cola merge, forming PepsiCo, Inc. Military 12-ounce cans are such a success that full-scale commercial distribution begins.
1970--Pepsi introduces the industry's first two-liter bottles. Pepsi is also the first
company to respond to consumer preference with light-weigh, recyclable, plastic bottles.
1984--Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a New
Generation."
1991-- Pepsi introduces the first beverage bottles containing recycled polyethylene
terephthalate (or PET) into the marketplace. The development marks the first time recycled plastic is used in direct contact with food in packaging.
1992-- Pepsi-Cola and Lipton Tea Partnership are formed. Pepsi will distribute single
serve Lipton Original and Lipton Brisk products.
1994-- Pepsi Foods International and Pepsi-Cola International merge, creating the
PepsiCo Foods and Beverages Company.
1997-- PepsiCo. Announces that it will spin off its restaurant division to form Tricon
Global Restaurants, Inc. Including Pizza Hut, Taco Bell, & KFC, it will be the largest restaurant company in the world in units and second-largest in sales.
This strategy has worked a lot and it has helped them to become the Worlds leading Soft Drink Company. The global unit sale of the PepsiCo Company is increasing from the last ten years. The data of the global unit sale of the PepsiCo Company can be represented by following chart.
So there is positive growth in the market of the PepsiCo Company. There is a worldwide volume increase by 4% with strong international growth of 5%. This is only due to the innovative marketing programmers, which has deepened the relationship of the customers and PepsiCo. The financial health and success of their bottling partners is a critical component of The PepsiCo Company's ability to build and deliver leading brands. the company had worked with their bottlers to turn good intentions into reality by improving the system economics. The results in 2008 reflect this steadily improving and mutually constructive relationship between the Company and their bottling partners. The main reason behind this relationship is to continue realizing shared opportunities for growth, with closer coordination of operations including customer relationships, logistics and production.
Frito-Lay snacks Pepsi-Cola beverages Gatorade sports drinks Tropicana juices Quaker Foods
PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats Company, creating the worlds fifth-largest food and beverage company, with 15 brands each generating more than $1 billion in annual retail sales. PepsiCos success is the result of superior products, high standards of performance, distinctive competitive strategies and the high level of integrity of our people. Pepsi-Cola North America, headquartered in Purchase, N.Y., is the refreshment beverage unit of PepsiCo Beverages and Foods North America, a division of PepsiCo,
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Inc. PepsiCo Beverages and Foods North America also comprises PepsiCo's Tropicana, Gatorade and Quaker Foods businesses in the United States and Canada.
Pepsi-Cola North America's carbonated soft drinks, including: Pepsi, Diet Pepsi, Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root Beer account for nearly one-third of total soft drink sales in the United States. Pepsi-Cola North America's non-carbonated beverage portfolio includes Aquafina, which is the number one brand of bottled water in the United States, Dole single-serve juices and SoBe, which offers a wide range of drinks with herbal ingredients. The company also makes and markets North America's best-selling, ready-to-drink iced teas and coffees via joint ventures with Lipton and Starbucks, respectively.
OVERVIEW PEPSICO
The PepsiCo challenge (to keep up with archrival The Coca-Cola Company) never ends for the world's #2 carbonated soft-drink maker. The company's soft drinks include Pepsi, Mountain Dew, and Slice. It owns Frito-Lay, the world's #1 maker of snacks such as corn chips (Doritos, Fritos) and potato chips (Lay's, Ruffles). Cola is not the company's only beverage: PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices (licensed) and Lipton ready-to-drink tea (licensed from Unilever). Its Quaker Foods division offers breakfast cereals (Life), pasta (Pasta Roni), rice (Rice-A-Roni), and side dishes (Near East). Wal-Mart is PepsiCo's largest customer, accounts for 9% of sales. PepsiCo may be vying for more Pepsi-drinking people but its hefty snacks and juice sales help to quench the company's thirst for bottom-line growth. Frito-Lay's salty snacks rule the US market; the snack division accounts for about one-third of company sales. The company announced a major restructuring in 2007, splitting its two business units (Pepsi-Cola North America and PepsiCo International) into three: one for US food, a second for US drinks, and a third for food and drinks abroad. CEO Indra Nooyi said that due to the company's healthy growth in recent years, PepsiCo is approaching a size that can be better managed as three units rather than two.
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The split looks like this: PepsiCo Americas Foods includes Frito-Lay North America, Quaker, and the Latin American food and snack businesses; PepsiCo Americas Beverages includes North American beverage sales, including Gatorade and Tropicana;
and PepsiCo International includes business in the UK, the rest of Europe, Asia, the Middle East, and Africa.
With a saturated soft-drink market, the company continues to try new iterations: In 2007 the company introduced its first vitamin-enhanced water, called Aquafina Alive. It signed a licensing agreement with Ben & Jerry's in 2006 for the sale of Ben & Jerry's milkshakes in the US, as well as a deal with Starbucks for the distribution of the coffee purveyor's Ethos water brand. Hot on the heels of Coke's introduction of Blak, in 2006 Pepsi launched a coffee-flavored cola, named, Pepsi Max Cino, in the UK. Venturing further into the non-cola category, PepsiCo acquired sparkling juice companies IZZE and Naked Juice in 2006. It also began selling Fuelosophy, a smoothie drink, at organic grocery store chain Whole Foods, and struck a deal to develop products with juice maker Ocean Spray Cranberries. Bowing to the public's growing concern about childhood obesity, in 2006 Pepsi, along with Coca-Cola, Cadbury Schweppes, and the American Beverage Association agreed to sell only water, unsweetened juice, and low-fat milk to public elementary and middle schools in the US. As for high schools, the agreement calls for no sugary sodas to be sold and one-half of the offered drinks to be water, diet sodas, lemonade, or iced tea. The agreement was facilitated by former president Bill Clinton. CEO Steve Reinemund stepped down as CEO in 2006 in order to spend more time with his family. His replacement was Indra Nooyi, the company's president and CFO. Indianborn Nooyi, the 11th female CEO of a FORTUNE 500 company, has been instrumental in strategic decisions at the company, such as the acquisition of Tropicana and merger with Quaker Oats. Shortly after her appointment, Nooyi restructured the top level of power at the company. She appointed John Compton, previously head of the Quaker-Tropicana-Gatorade unit, to the newly created position of CEO for PepsiCo North America, reporting directly to her.
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business strengths that once applied to cola would take hold across a broadened soft drink and snack-food market -- a market that Pepsi, and not Coke, dominated.
"They were the first to recognize that the consumer was moving to noncarbonated products, and they innovated aggressively," observes Gary Hemphill of Beverage Marketing. PepsiCo embraced bottled water and sports drinks much earlier than its rival. Pepsi's Aquafina is the No. 1 water brand, with Coke's Dasani trailing; in sports drinks, Pepsi's Gatorade owns 80 percent of the market while Coke's PowerAde has 15 percent. Throughout the past five years under CEO Steve Reinemund, the company has deftly moved with every shift in consumer tastes. "He's thinking about what the products should look like in the future," says Victor Dzau, a director of PepsiCo.
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PEPSICO INDIA
Introduction:
PepsiCo established its business operations in India in 1989 and has grown to become one of the countrys 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. The group has built an expansive beverage, snack food and exports business and to support the operations are the group's 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. PepsiCo stays committed to providing its consumers with top quality beverages. Its diverse portfolio of brands include the flagship cola brand - Pepsi; Diet Pepsi; 7Up; Mirinda; Mountain Dew; Slice fruit drink; Tropicana brand 100% fruit juices in various flavours; Aquafina packaged drinking water; Gatorade plus local brands Lehar Evervess Soda, Dukes Lemonade and Mangola. PepsiCo is also a dominant player in the snack food segment in India. PepsiCo's snack food company Frito-Lay is the leader in the branded potato chip market. It manufactures Lay's Potato Chips; Cheetos extruded snacks, Uncle Chips; traditional namkeen snacks under the Kurkure and Lehar brands; and Quaker Oats. PepsiCo is one of the largest MNC exporters in India and its export business consist of three categories - agri business, commodities and Pepsi system sales. PepsiCo has made significant investments with the Punjab Agriculture University to develop a comprehensive agro-technology program that has helped thousands of farmers across India improve the yield of their farms and the quality of their agricultural products. PepsiCo has leveraged its knowledge in contract farming to develop seaweed cultivation in Tamil Nadu and has partnered with the Government of Punjab to help farmers of the state through the utilization of developed technology for citrus farming.
Investment
PepsiCo India and its partners have invested more than USD1 billion since the company was established in the country.
Employment
PepsiCo India provides direct and indirect employment to 150,000 people including suppliers and distributors.
PepsiCo Boilerplate
PepsiCo offers the worlds largest portfolio of billion-dollar food and beverage brands, including 18 different product lines each generating more than $1 billion in annual retail sales. Our main businesses Frito-Lay, Quaker, Pepsi-Cola, Tropicana and Gatorade
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also make hundreds of other nourishing, tasty foods and drinks that bring joy to our consumers in over 200 countries. With more than $43 billion in 2008 revenues, PepsiCo employs 198,000 people who are united by our unique commitment to sustainable growth, called Performance with Purpose. By dedicating ourselves to offering a broad array of choices for healthy, convenient and fun nourishment, reducing our environmental impact, and fostering a diverse and inclusive workplace culture, PepsiCo balances strong financial returns with giving back to our communities worldwide.
Brand Facts
PepsiCo nourishes consumers with a range of products from tasty treats to healthy eats that deliver enjoyment, nutrition, convenience as well as affordability The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 41 bottling plants in India, of which 13 are company owned and 28 are franchisee owned. In addition to this, PepsiCos Frito Lay division has 3 state-of-the-art plants. PepsiCos business is based on its sustainability vision of making tomorrow better than today. PepsiCos commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers.
Beverages
PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Nimbooz, 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.
Foods
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PepsiCos food division, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lays Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The companys high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lays core products, Lays, Kurkure, Uncle Chips and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets.
Vision
Being the best in everything we touch and handle.
Mission
Continuously excel to achieve and maintain leadership position in the chosen businesses; and delight all stakeholders by making economic value additions in all corporate functions. It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself. Our services touch different aspects of commercial and civilian domains like those of Bottling, Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on today can lay claim to expertise and leadership in the fields of education, food and beverages. The business of the company was started in 1991 with a tie-up with Pepsi Foods Limited to manufacture and market Pepsi brand of beverages in geographically predefined territories in which brand and technical support was provided by the Principals viz., Pepsi Foods Limited. The manufacturing facilities were restricted at Agra Plant only. Varun Beverages Ltd. is the flagship company of the group. The group also became the first franchisee for Yum Restaurants International [formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise rights for Northern & Eastern India. It has total 46 Pizza Hut Restaurants & 1 KFC Restaurant under its company.
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The group added another feather to its cap when the prestigious PepsiCo International Bottler of the Year award was presented to Mr. R. K. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCos centennial year celebrations at Hawaii, USA. The award was presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of Pepsi Cola Company.
PRODUCTS:
There are different brands of the PepsiCo Company, which are currently in use through out the world. This company not only deals in the carbonated drinks but also other drinks. While launching its product, the marketing team considers the culture of the country.
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The commitment of the company is to devote resources to water only in markets where it expects profitable growth. This strategy has paid dividends. The company has successfully applied its approach to brands in several key markets, including Ciel in Mexico, Mori No Mizudayori in Japan, Bonaqua in Russia and Aquafina in India. Backed by a strong network of bottling partners through out the United States, Dasani became the nation's fastest-growing water brand. In Eurasia, the entire Turkuaz brand team worked together to launch Turkey's first purified water brand. This year, Pepsi Company also successfully energized a major piece of its beverage strategywater. By the end of 2001, its bottled water volume exceeded 570 million unit cases, making it the second biggest contributor to the growth of the company after carbonated soft drinks. Three of the water brands, Dasani, Ciel and Bonaqua each achieved sales of over 100 million unit cases for the year.
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In 2007and 2008, the company has also made good progress in coffees and teas. Beverage Partners Worldwide, the renewed and strengthened marketing partnership with Nestl S.A., began operations in 2007. This partnership combines Nestl's knowledge in life science, research and development with the expertise of PepsiCo Company in brand building and distribution. At the same time, the company grew Georgia coffee in Japan by 3 percent through award-winning marketing in a category that was flat for the year. Also in Japanwhere The Pepsi Company is the leader in the total tea category, the second-largest category in the non-alcoholic ready-to-drink segmentit launched Marocha Green Tea. With sales of 46 million unit cases for the year, Marocha Green Tea is the fastest-growing product in the fastest-growing category: green tea. The popularity of
Marocha is also recognized by the industry with a leading trade journal naming Marocha the most popular new food and beverage product of the year.
Product Quality:
This is one of the most important aspects that any Co. needs to address. Specially in the case of Pepsi this is even more important because of the controversies and claims regarding the CSE report on Pesticides in Pepsi. Therefore pepsi has to maintain stringent quality norms and standards and norms. Pepsi does that by following one quality standard worldwide and according to the official website of pepsi, the Co. maintains that: At every level of Pepsi-Cola Company, we take great care to ensure that the highest standards are met in everything we do. In our products, packaging, marketing and advertising, we strive for excellence because our consumers expect and deserve nothing less. We promise to work toward continuous improvement in all areas of our organization. At every step of our manufacturing and bottling process, strict quality controls are followed to ensure that Pepsi-Cola products meet the same high standards of quality that consumers have come to expect and value from us. We also follow strict quality control procedures during the manufacturing and filling of our packages. Each bottle and can undergoes a thorough inspection and testing process. Containers are then rinsed and quickly filled through a high-speed, state-of-the-art process that helps prevent any foreign material from entering the product. Additional quality control measures help to ensure the integrity of Pepsi-Cola products throughout the distribution process, from warehouse to store shelf.
Brand Name:
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This is the most important thing any Co. in this Business needs to do if it wants to remain and succeed in the Business. Pepsi has successfully done that for so many years. Pepsi has targeted the youth and has invested heavily in advertising and building a brand image (by launching several campaigns and roping in mega stars such as Shahrukh, Sachin, ganguly, Dravid etc.) that attracts to the youth and this is one of the main reason for the success of Pepsi.
Product Range
The total range of PepsiCo Company in India includes: Pepsi. Mountain Dew. Merinda. Diet Pepsi.
And company offers their products in different bottle sizes these includes: SSRB LRB NRB PET 1.5 CANS (standers size returnable bottle) (litter returnable bottle) (no return bottle) or disposable bottle (1.5 litter plastic bottle) (tin pack 330 ml)
PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack business of Frito-Lay North America and the beverage and food businesses of PepsiCo Beverages and Foods, which includes PepsiCo Beverages North America (Pepsi-Cola North America and Gatorade/Tropicana North America) and Quaker Foods North America. PepsiCo International includes the snack businesses of Frito-Lay International and beverage businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in1965 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.
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Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's
brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and Rolled Gold brand pretzels (acquired 1961)Pepsi co is the world leader in the food chain business. It consists of many companies amongst which the prominent one is Pepsi cola, frito lay, Pepsi food international, pizza hut, and KFC and taco bell. The group is presently into three most profitable businesses namely, beverages, snack foods and restaurants. It has scores of big brand available in nearly 150 countries across the globe. The beverages segment primarily market Pepsi diet, mountain dew and other brands worldwide and 7UP outside the U.S. Market. They are positioned in close competition with Coca-Cola inc. of USA. A point to be noted is that coca cola get 80% of its profit from international operation while same figure of Pepsi co. stand at 6%, the segment is also in the bottling plants and distribution facilities. The restaurant segment primarily consists of the operations of the worldwide pizza hut, Taco Bell and [Link] time no.2 player in the cola wars, Pepsi co. Is widening the play field, over the last years; the company has invested more than $2billion in its worldwide operations. When Coca-Cola changed its formula in1985,Pepsi stepped up its competition with its long time archival claiming victory in the cola wars. Coke and Pepsi expanded their rivalry to tea in 1991 when Pepsi formed A venture with #1 Lipton in response to cokes announced venture with Nestle (Nestea) it has won over 30% of the ready to drink tea market, a Part of the so called "new age beverages segment. The beverage industry has witness the phenomenal growth over the last few years necessitating capacity increase and builds up of commensurate infrastructure to meet the business growth, which is accordingly matched. PepsiCos success is the result of superior products, high standards of Performance, distinctive competitive strategies and the high integrity of our people.
TYPES OF PRODUCTS:
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Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks while mango drinks come under noncarbonated category. The soft drinks market till early 1990s was in hands of domestic players like campa, thumps up, Limca etc but with opening up of economy and coming of MNC players Pepsi and Coke the market has come totally under their control. While worldwide Coke is the leader in carbonated drinks market in India it is Pepsi which scores over Coke but this difference is fast decreasing (courtesy huge ad-spending by both the players). Pepsi entered Indian market in 1991 coke re-entered (After they were thrown out in 1977, by the then central government) in [Link] soft drinks major Pepsi India is now putting together a cocktail to take a bigger slice of the fruit juice market. Close on the heels of the launch of its global lemon drink Twist in an Indian avatar as Pepsi Aha, Pepsi, once again, is all set to roll out another global productin a localized version. Come June 2002, and Pepsi will roll out the blends of its international fruit drink Twister in the country, albeit, with a difference. In India, Twister blends will be launched as mixed fruit cocktails under Pepsis existing juice brand Slice. Pepsi spokesperson, when contacted, confirmed the launch but said the products will be launched on an experimental basis for three to four months beginning June 2002. However, confirmed sources said that the product has been test-launched and is ready for a formal launch in June. Globally, the proposed Slice fruit blends exist under Twister brand and are available in over 10 flavors and in various packaging options. However, in India, while the blends will be decided as per local tastes and as per the availability of fruit pulp, packaging will be restricted to cartons only. Among the four to five flavors planned, strawberry-peach and kiwi-guava are some of them. However, the new product could be priced a little higher than Slice since Twisteroriginallyis believed to have more than 15 per cent juice content. Slice, on the other hand, is a 15 per cent juice drink positioned at the mass-end; against the 100 per cent fruit juice Tropicana, which is at the top-end. Pepsis decision to launch Twister flavors as Slice variants rather than the original brand itself follows the companys decision to make slice the mother juice brand in India. The company had at one time contemplated bringing Twister in its original self to India but the plan was later shelved. Internally we have been debating whether to go ahead with Twister or keep Slice as a mother brand for juices, the Pepsi spokesperson said. The move, point out industry observers, is clearly aimed at saving costs of launching an altogether new brand and instead cash in on the potential of a existing juice brand. A Rs 200-crore brand, Slice was originally launched as a mango drink in returnable glass bottles. Last year, in fact, Pepsi launched a new advertising campaign to rejuvenate the brands mango positioning. And early this year, it was launched in cartons and more recentlythree new flavorsorange, leechi and guavawere added to the [Link] by high cost of production of returnable glass bottles, Pepsi India has decided to look at the most sought after packaging alternativeflexible packaging more seriously. The company through one of its prime bottler Mr. Ravi Jaipuria of Varun Beverages Ltd is now setting up a new carton line (tetrapack) at its existing bottling plant at Noida in Uttar Pradesh. The plant with a capacity of 5,000 to 7,000
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cases per day will be used to pack Pepsis juice drink Slice and its new variants in 200ml cartons. The product is currently being packaged at Varun Beverages at Boranada Road [Link] Noida slim line carton plantwhich is expected to take off shortly will cater to the north market and will help the company cut huge transportation costs.
COMPANY PROFILE
Since the entry of Pepsi co. to India in 1987, the soft drink Industry has undergone a radical change. When Pepsi entered parley was the leader with Thumps UP being its flagship brand. Other product offerings by parley included Limca & Gold Spot. Another upcoming player in the market was the erstwhile bottle of Coca-Cola, Pure Drinks. Its offerings included Campa Cola, Camps Lemon and Campa [Link] the re-entry of Coca-Cola in the Indian market, Pepsi had to go in for more aggressive marketing to sustain its market share. The chronology the initial phase of the Coal Wars in India was. July 1986 An application for soft drinks-cum-snack food joint venture by Pepsi, Voltas and Punjab Agro is submitted to the government after an earlier proposed alliance- 1985, between Pepsi and Duncans of the Goenkas fails to take off. Sept.1988 Final approval for the Pepsi Foods Limited (P.F.L) project granted by the Cabinet Committee on Economic Affairs of the Rajeev Gandhi Government. March 1990 Pepsi Cola and Seven up Launched in limited market in North India. May 1990 The government clears the Pepsi project again but with a change in brand name to Lehar Pepsi. Simultaneously it rejects the Coca-Cola application. Citra form the Parle Stable hits the market. Dec 1991 Pepsi extends its soft drinks reach on national scale. Products launched Delhi and Bombay. Jan 1992 Brito Foods application cleared by the FTPB. Pepsi and Parle start initial negotiations for strategic alliance but talks break off after a while. Jan1993 Pepsi launches Teem and Slice. Captures about 25.30% of the soft drinks market in about two years. July 1993 Voltas pulls out of PFL joint venture. Pepsi decides to raise equity to 92% Reports of coke Parle negotiations gain strength. July 1994 Pepsi brought Dukes& Sons
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July 1995 Pepsi launched Cans having capacity of 330 ml in various flavors. 1997 Pepsi brought Mirinda Orange opposite to Fanta. 1998 Pepsi launched Lemon Mirinda to give taught competition to Limca. 1999 Pepsi has launched its Diet Pepsi Can and 1.5 Liters pet battles for health conscious people. 1997 Refusing to dilute its equity state Coca-Coal winds up operations in the [Link] launches Thumps Up and Drinks launches Campa Cola. 2001 Pepsi launched Aquafina. 2003 Pepsi launched Mountain Dew 2005 Mirinda lemon zinger, [Link] was launched by Pepsi. 2006 Bubbly Pepsi was launched. 2007 Pepsi Gold was launched.
Company vision
To become truly global company, by continuing to build a competitive an d profitable Worldwide refreshment beverage business.
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4. EMPTY kA HI KHEL HAI: - [Empty plays an important role]: - As discussed earlier the distribution points keeps on putting up distribution schemes for retailers i.e. like two bottles of solution free with the purchase of every one carat of solution. Now these schemes have timed well keeping minding the environmental conditions & schemes provided by the other company. These schemes are of twentyfour hours duration. If a scheme is launched & there is no empty in the market for refill, the whole effort goes in vain that is the reason is said ki sub empty ka khel hai.
It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself. Its services touch different aspects of commercial and civilian domains like those of bottling, Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on today can laid claim to expertise and leadership in the fields of education, food and beverages. The business of the company was started in 1991 with a tie-up with Pepsi Foods Limited to manufacture and market Pepsi brand of beverages in geographically pre-defined territories in which brand and technical support was provided by the Principals viz., Pepsi Foods Limited. The manufacturing facilities were restricted at Agra Plant only. Varun Beverages Ltd. is the flagship company of the group. The group also became the first franchise for Yum Restaurants International [formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise rights for Northern & Eastern India. It has total 46 Pizza Hut Restaurants & 1 KFC Restaurant under its company. It diversified into education by opening our first school in Gurgaon under management of Delhi Public School Society. The schools of the group are run under a Registered Trust namely Champa Devi Jaipuria Charitable Trust. Companies
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are medium sized, professionally managed, unlisted and closely held between Indian Promoters and foreign [Link] group added another feather to its cap when the prestigious PepsiCo International Bottler of the Year award was presented to Mr. R. K. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCos centennial year celebrations at Hawaii, USA. The award was presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weather up, President of Pepsi Cola.
Ravi K Jaipuria (RKJ), one of PepsiCo Indias largest franchisee bottler, says that despite a slump in Pepsi sales, he is going ahead with capacity expansion plans with an investment of Rs 100 crore over a period of next six months. The investment will see setting up of two new plants through Varun Beverages (a bottling company of RKJ and part of the Rs 1,200-crore Jaipuria Group) at Bhiwadi and Jaipur in Rajasthan and also a foray into the manufacture of crowns and plastic shells for glass bottles, RKJ chairman Ravi Jaipuria told FE. One of the largest franchisee bottlers for Pepsi, the Jaipuria group collectively forms about 45 per cent of Pepsis total franchisee business. According to Varun Beverages president-finance Mr RP Gandhi, the company is spending Rs 60 crore to set up a new bottling plant at Bhiwadi, Rajasthan, with an installed capacity of 80 lakh cases. A 15-acre plot has already been acquired by the company and the plantcommissioned last monthis expected to come up by March 2004. Additionally, the company plans to raise capacities at its Kosi plant in UP by 30 lakh cases, pumping in an investment of Rs 15 crore. As part of its backward integration venture, Mr Jaipuria is setting up a new plant for manufacture of crowns and plastic shells at Ajmer Road, Jaipur, with an investment of Rs 25 crore. While admitting that Pepsis sales were hurt post-cola contamination controversy, Mr Jaipuria, however, maintained that it was difficult to assess whether the slump was due to the controversy or a lean monsoon. Weather has played a spoilt sport, too, and the season has been dull so we cant really say whether sales have been hit by the pesticides issue alone, he said, adding that otherwise 2003 has been an excellent year for soft drinks sales. With the new initiatives, the RKJ group which operates through two companiesVarun Beverages and Devyani Beverageshopes to achieve a sales turnover of Rs 600 crore by the end of 2004, and Rs 720 crore by 2004. The company posted a sales turnover of Rs 500 crore in 2002. The RKJ group led by Mr Jaipuria has seven Pepsi bottling plants spread around the country in Greater Noida and Kosi (UP), Alwar and Jodhpur (Rajasthan), Goa, Dharwar (Karnataka) and Kathmandu. The total capacity at these units is about 220 lakh cases per year or 5,000 bottles per minute.
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MissionContinuously excel to achieve and maintain leadership position in the chosen businesses; and delight all stakeholders by making economic values in all corporate functions.
Their Success
Production of innovative, high quality retail branded beverages combined with worldclass packaging. Driven by a management team with a relentless focus on achieving superior customer service, driving earnings improvement and increasing shareholder value.
OBJECTIVES OF VARUN BEVERAGES: To observe the implementation and working of sales club programme at different sections in Noida. To monitor whether it is successfully implemented in the market. To monitor the customer awareness about the sales club programme whether they are fully aware about the programme or not. To check out that all the required materials for sales club programmed are given to customer/ retailer or [Link] find out the effect on increasing the sales b/z of sales club programmed at partial shop. To monitor the purity of vis-cooler at sales club account. To monitor the purity of sack at sales club account. To monitor whether updates in the programmed book is clan in time or not.
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[Link] transport- Varun bevragehes hire only driver for transportation and give these type of payments
Provide T A ,D A Driver food per day 90Rs. 30
[Link] vehicle- For the transportation purpose company select one transporter from the market with lowest prize and than company give commission @10%.
3. Party vehicle In the party vehicle transportation, company give the payment to the transporter which is = 80% of total payment amount Decided by the company policies for that particular period For eg: one transporter having 850 carrots Company payment rates=2 Rs/carrot Total Amount=850*2=1700 Payment as per company policy to party=1700@80/=1360
Objective of Study
To study and identified measures threw which detention can be reduced in
transportation system.
To identify optimum process of transportation threw which the cost of
To understand the overall transportation system of company and find out the main root cause of detention in depot which increases the company product cost and ITS effect on the Supply chain management (SCM).
the cost of transportation can be reduced without wastage of time and detention
categories
Problems Encountered
One of vital thing which I have acquired there is that under our company there is foure depot. Jaipur Jhunjhunu Alwar Kota
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My studies show that all the depots fare acing same problem of detention but specially in kota depot because of this problem supply chain is effecting more .
TROLLA TRUCK-1000RS.
1109MODEL -500RS.
The reason of increase this problem when distributor give the order of DEW(Demanding product) to the sales department or in plant than company dont have that product at that time in season and than company take payment to the party and stay that order on the hold and than for the accomplish the target and sell more any product, the sales person of company take the order of another product which is not in demanding(Pepsi), and when those undemanding products trucks will go for unloading in the plant like (Pepsi) and than suddenly if DEW truck will reach there which is pre order truck of DEW for company, than suddenly depot management not unload remaining trucks of Pepsi and than they will unload that DEW trucks into one truck to another truck which will go for transport than under this process or by the DEW trucks those are pre order product or
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demanding product ,the remaining trucks which are Pepsi or undemanding products trucks stay there above 24hour for waiting of unloading that demanding product (DEW) and than on the Pepsi trucks which were not in demand they will get the detention after every 24hour.
condition on job Learned about relationship building at work place. I understand and learn that how and why it is important to take care of our customer.
Limitation of trainingThe limitations faced during my training were time limit in my training period I faced problems in collecting data from other plants,
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The next difficulty was that rates change as per season and market condition in transportation department thus it could affect the recommendation and conclusion part. In todays context
Conclusion
After analyzing all the aspects of the documents & secondary data available suitable conclusion, which should be derived for this study. However, before starting the conclusion part, the objective of the Topic must be kept in mind so that we can arrive at a befitting conclusion for the problem The primary objective of this study was to reduce the detention in transportation and get the optimum process of transportation Varun beverages pvt. Ltd. The data collected provided a sound base, by analyzing the data, following conclusion was inferred:
between plant SCM and depot incharge and between dealer, And I have learned managerial skills in this training process and also got the skills of the various transportation of the company
And in this training process I also get the knowledge about the payment system
of transportation
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Recommendations
As per my topic Reduce the Detention of transportation and get optimum way of transportation without waste of time there some suggestion which I will recommend. First for reducing the detention problem there should be a good communication between plant SCM and depot incharge and between dealer,
The main root cause of this problem is not good communication between sales
time and need not to hold any order one by one because by the holding process of order it creates disturbance on another orders as a detention and on SCM.
If all person will talk to each other and will communicate than they will know that
what product is in demand in market and what is not than they will take order by the demanding process and than in depot trucks will unload by the order or sequence
And for the reducing the detention first of all the plant management should be
well trained, and they should unload the all pre order trucks and also need to unload which are already waiting there for unloading.
if we will talk about the plant space than KOTA depot have no more space so
the plant should hire land or purchase because by this process all trucks will unload at proper time and will eradicate the detention but for this process land will not enough there should be increase the member of the management team.
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And one thing which very vital that take the order if we will take order to the party than that order product should be in depot or in system (SAP)
After chase these all process we can see the effect in our product cost and
Bibliography
1. [Link]
2. [Link]
3. [Link]
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