GROUP MEMBERS

Muhammad Bilal
M.Zishan Khan
Mehraj Khan

Akhtar Yousaf
Farhan Ahmed

M.shoaib
1

Northern Bottling Company(Pvt)

Ltd
16-A, Industrial Estate, Peshawar

INTRODUCTION
Established in 1964
Obtain franchise right for production & selling of PEPSI brands
Cover the entire KPK market
Produce & distribute Pepsi Cola, Miranda, 7-up & dew
Implement marketing programs of the licensor
Hold 62% market shares in KPK
Employed 2659 workers
Target customers are youth
Have Focused differentiated strategy
Always choose related diversification

MISSION, VISION & OBJECTIVE

OBJECTIVE:
Objectiveof our business strategy are to increase volume, expand our share
worldwide nonalcoholic ready-to-drink beverage sales, maximize our long term
cash flows and create economic value added by improving economic profit.

FUNCTIONS NBC PERFORM

A.

B.

Production Department
1.

Water purification

2.

Syrup room

3.

Laboratory testing

4.

Filling bottle with raw materials

5.

Compression & refrigeration

Shipping & Logistics Department

1.

Supply of raw material from head department of company

2.

Maintaining inventory

3.

Collecting products from production department

4.

Stocking the finished products

5.

Providing the vehicle for distribution of products to whole seller & retailers

 Continue

C.

D.

6.

Matching all over KPK demand by stocking raw material

7.

Maintaining sales record

Cash Department
1.

Recording cash sale

2.

Account receivables & payables

3.

Maintaining cash for raw material acquisition

4.

Preparing monthly, quarterly & annual company statements

Account department
1.

Maintaining distributors & suppliers record

2.

Managing employee payroll system

3.

Preparing daily vouchers

 Continue

D.

MIS department
1. Managing all organization hardware's (printer etc.) & software's (auto generated slips and gate pass)
2. Minimum inventory warning

E.

Marketing department
1. Advertisement(mainly commercial, banners & posters)
2. Sponsorship through different programs
3. Budget allocation
4. Providing effective communication b/w retailers and suppliers
5. Keeping timely and enthusiastic sales officer & sales person

F.

R&D department
1. Improving product quality and innovation in packaging
2. Check & balance on original product in market
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KEY SUCCESS FACTORS OF NBC

Established brand image
Effective marketing communication
Qualified and enthusiastic sale force
Easy & timely availability of raw material
Timely availability of the product
Loyal customers
Broad channel of sub-distributors
Innovative marketing tactics
Enhanced innovation capabilities
low- and zero-calorie beverages
Strong advertising company with more than 40 slogans and songs

Northern Bottling Company Dominance over other distributors & Supply Chains

Result
in

NBC distributions is widely available as

compare to KO & other local products

In-store
monopoly is
achieved

Food outlets & retail

store sells PEPSI instead
of COKE and local
products

Brand loyalty
Leads
to

Leads to

Result
in

Convenience

Therefore

Higher Demand

DISTRIBUTION CHANNEL OF NBC

The company operates through a well-established network of a number of distributors. The
company has two types of delivery systems i.e.

Direct delivery system

own

Direct distribution system, the company spends its

resources(e.g labors, vehicles & sale force etc.)

Indirect delivery system :

The dealers spends their own resources on all the

factors which increased the sale.

The company also has its depots in different cities. Which helps a lot in increasing its sale
and directing the distribution system.

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TANGIBLE & INTANGIBLE RESOURCES OF NBC

TANGIBLE FACTORS:
Labor is easily available from villages & city at normal wages. No problem is there for supply
of electricity. Most essential raw material i.e. water is easily available to them. Transportation
cost is low. Peshawar is the center of their distribution area and they can easily fulfill the
requirements of the KPK areas.

IN TANGIBLE FACTORS:
Community attitude is positive towards Pepsi Cola. Working conditions are quite good for
employees i.e. No harm is there for their health & psychology.

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STRATEGIC PLANS OF NBC

Market development is a strategy that NBC is applying by expanding in areas
in KPK that not already established and covered
Using forward integration to acquire smaller & individual distributors in other
KPK regions markets to increase their market share and convenient
availability of the products
Product development and related diversification is also considering while
trying to produce and distribute healthier products.
Introducing new innovative advertisement
Building research team of experts to identify 3rd quality products

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FUTURE DIRECTION OF NBC

The company operates through a well experienced, loyal and hardworking
employees. The first and the most basic plan it to train them according to the
changing technology and computerized environment, and satisfying their needs and
requirements.
Upgrading the plant structure and installation of the new machinery are other plans.
The company is planning to increase its sales force and development in its
infrastructure in the coming time period.

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STRATEGIC CUSTOMERS OF NBC

City & district level main retailers
Individual distributors
Whole sellers
Retail stores
Target segments like hotels, restaurants, colleges & universities cafeterias & public
places like general bus stands etc.
Target group of youth("Now it's Pepsi, for those who think young")

14

VALUE CREATION PROCESS OF NBC

The NBC creates value by executing a comprehensive business strategy guided by six key beliefs;
1.
2.
3.
4.
5.
6.

Consumer Demand drives every thing we do.

Brand Pepsi products is the core of our business
We will serve consumers a broad selection of the nonalcoholic ready to drink beverage they want to drink
throughout the day.
We will be best marketers in the entire KPK market.
We will think Globally and act Locally.
We will lead as a model corporate citizen

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VALUE CREATION PROCESS

1

Consumer
demand

Make
product
available(
Distributi
on)

Advertise
the
product

Branded
product

Loyal
customer
s
Localize
the
product

Providing
ready-todrink nonalcoholic
beverage

3
16

COMPETITOR OF NBC
Coca cola is the main competitor of NBC in KPK market.
Coca cola

= 46% share

Pepsi

= 39% share

Local products = 15% share

17

BCG MATRIX OF NBC

18

SPACE GRAPH

65

6
2

2
1
5

1
2

3 1 4

2
5

19

POSITIONING MAP OF NBC IN KPK

High
Prices

Limited
Products

NBC
(PEPSI) in
KPK
Coca Cola

Other KPK
local
producers &
distributors

producer
s&
distributo
rs in KPK

Low

Diverse
Produc
ts

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HOW THE NEW EMPLOYEES OF NBC LEARN CULTURE

NBCs Culture is transmitted to new employees in a number of forms, the most potent being;

1.
2.
3.
4.

STORIES
RITUALS
MATERIAL SYMBOLS
LANGUAGES

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1. STORIES
Old employees of the company carry those stories about the people who had worked with the organization and
the rewards they received.
They are well familiar with the past experiences and their outcomes. They either frighten them or give them
courage to follow or not the procedures set by the company.
The old bosses of the department brief new comers how they should have to perform their duties and what are
the norms of the company which cannot be violated.
For example Mr. ijaz khattak is the In charge of MIS Department of NBC., he is responsible for the initial
training of the new comers. He gives them all the details regarding the Department, and Organization. He tells
them about the decorum of the office and likely behavior to be pretended
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2. RITUALS

Some activities in NBC are considered to be the understood activities like the break for Namaz-E-Juma.

As the members of NBC., are regular prayer sayings, so a break for the prayer is understood and nobody is
compelled to do any office work during the break.
Also there is a company policy in NBC., that is to give 15 days annual recreational holidays with pay. Anybody
who wants to go for those holidays, he can go with the consents of his boss.

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3. MATERIAL SYMBOLS

As NBC is the franchise of Pepsi so it uses the logo of PepsiCo,.

Another motivational cultural approach is to give due position to the employees who deserve that position. In
"NBC" , the top executive like Mr. Aamir Hameed GM Sales, has been given a chauffer-driven Honda Civic
Car, a latest Laptop, Unlimited use of mobile phone, a well furnished
house, free cold drinks up to 200 c/s. and a very handsome salary package.
So the material symbols like these facilities also show the best cultural values and motivational tactics for the
new comers and for those persons who work hard in the organization.
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FEW SYMBOLS OF NBC

b

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4. LANGUAGES

The employees of NBC have a formal way of behaving to each other

They talk formal like Sir even to their co-workers.
Mostly employees talks in Urdu
They respect each other all the way to share the respect.
Hence use of formal language is also key to learn the culture in NBC

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SWOT ANALYSIS
Strengths:

Opportunities:

Company Image
Quality consciousness of Pepsi co.
Production capacity.
Market share.
Sponsorships.
CSR.

Changing social class.

Emerging middle class and their tastes.
Diversification.

Weaknesses

Threats

Decline in taste.
Weak distribution in rural areas.
Low consumer knowledge.

Imitators.
Government regulation.
Power shortages.
Political instability in kpk province.
What if supplier (Pepsi co) reduce supply?
Labor strikes.

NBC CULTURE
Values and beliefs
Service to the kpk community
Equal employment opportunities(race, ethnicity)

Behaviors
Strict schedule
Busy routines
Brotherly feelings inside NBC among all employees.

PESTEL FRAMEWORK

Political factors
Political instability.
Security concerns and hurdles in
supplying and acquiring the products.

Economical factors
Emerging middle class.
Consumer income is high in cities
less tend to eat out
convenience is important in KPK.

Social factor
people & society attitude is positive towards
Pepsi
In mostly wedding & family parties soft
drinks such as Pepsi is offer to guests

Technological factor
To upgrade technological capabilities by the
acquisition of latest tools & technology
recommended by PCI to drive Quality
Evolution:
Statistical Process Control
Standards, Methods and Manuals
Trade Age Management
Laboratory Validation & Up-gradation
Internet promotion such as banner ads and
keywords can increase their sales, and more
computerized manufacturing and ordering
processes can increase their efficiency

CONTINUE

PEOPLE AND ORGANIZATION

To share ownership for Quality with everyone at all levels through:
Training
Process Ownership
Empowerment

STRATEGIC CAPABILITY OF NBC

Strategic capability
Threshold resources
Threshold competencies
Unique resources
Core competences

COMPANYS STRATEGY FOR FUTURE

CONSUMER FOCUS
NBC's focus CPQ (Consumer Perception of Quality)
Benchmarking
Up-gradation of Quality Measurement System
Sensory & Appearance Testing

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