Evaluation of the production of coca-cola in pakistan

The Coca-Cola Company is a beverage retailer, manufacturer and seller of non-alcoholic beverage concentrates and syrups. The company was established in 1886. Although coca cola was created in United States, it quickly became popular where ever it went. Coca cola first bottling plant was opened in 1906 in Canada, Cuba and panama soon followed by many more. Coca-Cola currently offers more than 400 brands in over 200 countries and serves 1.6 billion servings each day. The reason behind its truly global company is that their products meet the varied taste preference of consumer everywhere.

Location:

There are total 8 production plants of coca cola beverages in Pakistan out of which 2 are under process. The head office is in gulberg 3 Lahore. The production plant we visited is located 23km raiwind road Lahore.

Mission

Their Roadmap starts with their mission, which is long-term. It declares purpose as a company and serves as the standard against which they consider their proceedings and decisions.

To refresh the world.

To inspire moments of optimism and happiness.

To create value and make a difference.

Vision statement

“Coca cola Co responsibility is to continually improve all aspects of the world in which they operate – environment, social, economic – creating a better tomorrow than today”.

MARKET SHARE:

Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market share. This company controls about 59% of the world market.

Products:

There are many brands of Coca Cola Company, which are currently in use worldwide. Some of the popular brands are

Coca cola

Sprite

Fanta

Diet coke

Pulpy orange

Sprite zero

Splash

Kinley water

Company offers their products in different bottle sizes these include:

SSRB (standers size returnable bottle)

LRB (liter returnable bottle)

NRB (no return bottle) or disposable bottle

PET 1.5 (1.5 liter plastic bottle)

PET 2.5 (2.5 liter plastic bottle)

CANS (tin pack 330 ml)

Product life cycle of Coca Cola Company:

SWOT analysis:

Strength Weakness

The Coca Cola sells beverages in around 200 countries in the world

Coca Cola Logo is very famous among the people

coca cola has strong marketing and advertising

People like the taste and quality of Coca Cola around the world.

Strong Financial reserves and returns of the company

Health issues

Lack of popularity of coca cola brands

Opportunities

Threats

Increase Awareness programs

Launch other coca cola variants in the untapped countries.

Launch healthy drinks

Intense competition from Pepsi

New entrants are gaining market share.

Decrease in Coca Cola brand value in last few years.

Ongoing recession

Target market:

Their target market is young generation because they want to represent coke with energy and youth. Old people are their co-target market.

Competitors:

Their competitors are all the other companies who are manufacturing carbonated soft drinks. Like consumers compare coke with Pepsi and gourmet cola, sprite with 7up and team, fanta with marinda etc.

Visit to the coca cola factory:

Production process

Production management is the selection of inputs, operations, personnel and different ways for producing goods and services. In the production process input selection include mix of human skills, raw materials, outside services and equipment consistent with organization’s positioning strategies and its ability to obtain these resources.

Production process of coca cola is divided into the following steps.

Purchase of Bottles

The first step include in the production of coca cola is purchase of bottles. In this process company order the contractor to send new bottles. In case of disposable or not reusable bottles this step is basic and when the production process starts there is always need to purchase new bottles from the contractors.

Collection of Bottles

In the factory area ordinary bottles of Coca-Cola are collected from dealers and contractors. Bottles that are not returned from dealers and customer’s decreases the quality of empty bottles stock and then there is need for purchasing of new bottles. In case of breakage order is sent to purchase new bottles of that much quality.

Decaser

In this step empty bottles are sent to the washing department by the decaser.

Inspection section

In the inspection station the light inspector having lights checks bottles. The light inspectors pick up unacceptable bottles. This step is taken to assure the quality management.

Washing of Bottles

Washing department at coca cola has an automatic plant and this plant automatically washes all the bottles. There are following steps in the washing process.

First soak

In this soak, bottles are passed under the pressure of 40 to 50 degree.

Second soak

In this soak bottles are passed under the temperature of 55 to 60 degree. There are few jets in this section, which rotate the bottles upwards to downward.

Third soak

In this soak temperature is between 65 to 75 degree and caustic wash is also provided to the coca cola bottles.

Fourth Soak

This is last water soak in the washing department. In this soak chlorine is mixed with water to purify the water and temperatur is 45-55 deegree and after this washing treatment washing process is completed and then bottles come out of this tank for further processing.

Light room (empty bottles)

In this section, the light inspectors pass bottles. If any bottle is reached unwashed then this bottle is again sent to the washing department for washing.

Water treatment

Water is obtained from the turbines of the company and then this water is treated according to the international drinking water standards.

Water cleaning is done with reverse osmosis process. There are three turbines for this treatment. One is for soft water and cleaning and the other two are for Auto treatment when one is ON then second is on a standby. A pre treatment sand filter is also there and product flow meter is installed to check the per hour flow rate.

After reverse osmosis process water is sent to first storage tank then chlorine is added, after addition of chlorine water is ejected into a pump and then it goes into a carbon purifier.

This is over all view of process 1 shown in figure, which is basically picture of a computerized touch screen installed in that room for control of flow and operations. Water passes through flushing valve to the six vessels, one vessel is equal to six membranes, rejected water is sent up to the other three vessels , accepted water is sent straight through the pipes and again from the three vessels rejected water is sent up and other straight through the pipes. All the hardness of water is eliminated and the water is made pure for the use in the syrup manufacturing. The rejected water left is disposed off.

Syrup manufacturing

Screw converter, sugar converter and motor are used in this process. When the motor gets ON the screw is automatically removed and sugar is pasteurized. Water is mixed with the sugar and concentrate according to the fixed ratio of the formula for Coke.

First, brix is manufactured according to the following ratio.

Coca Cola 54.80 (concentrate. sugar)

Fanta 57.30

Sprite 53.00

Then beverage is prepare according to

Coca Cola 10.37 (concentrate. Sugar)

Fanta 12.00

Sprite 10.00

Then water and Co2 is added to the brix. Then beverage is passed through ammonia gas which cold the beverage.

There is some extra machinery required only for coke. A separate room is maintained which is the most chilled unit of the plant. There are lines for production of coke, fanta, sprite, and connectors are there to change lines. The syrup room is totally controlled on a computerized touch system machine. The overall electronic plant view is given in the following picture.

Filling of bottles

The company has modern automatic filling machines where bottles are automatically filled and then automatic machine puts cap corks on the bottles. The capacity of this machine is 7.5 cycles per minute and per cycle 40 bottles can be filled.

Light room (Filled bottles)

In this stage the quality of the filled bottles is checked. Any less filled or over filled bottle is filtered out in this stage.

Loading

After the inspection an automatic machine is used to print the certain things on the caps of the bottles, e.g. code number, line, expiry date etc.

Packing

Coca cola products are available in different packing.

24 regular bottle shell

6 bottle pack for 1.5 pets

6bottle pack for 2.5 pets

12 bottles in a pack for disposable bottle (500ml)

24 cans in one pack.

Store room

Then bottles are sent to the storeroom or go down.

Loading and delivery

Loading and delivery is done according to the demand. Bottles are loaded by the fork differs into the trucking of the company and then sales department then is responsible for its distribution into the market.

Capacity

Capacity is the maximum rate of output for a facility and it can be measured in terms of input and output. Capacity in the Lahore beverages is in term of machine cycles. Maximum or peak capacity of coca cola system is 9 cycles per minute. In a cycle forty bottles can be filled so it means that capacity is 360 bottles per minutes.

Coca cola’s utilization capacity is 6 cycles per minute, which is 240 bottles per minutes.

Utilization capacity of the coca cola company is the average utilization capacity in the high demand day company in this season increases the cycle to 8 cycles per minutes. Company has two bottling plants in the facility, which can produce 720 bottles per minutes.

Quality management

In a general sense, quality may be defined as meeting the expectations of the customers.

Coca Cola Company has one global standard and follows the same international quality standard across all the bottling operation within Pakistan. Every ingredients used in the manufacturing of beverage meets all the local, regulatory, company and international standards. All ingredients undergoes extensive testing and inspection prior of being released for use. On periodic base external validation and testing is performed by independent laboratory in all ingredients used in manufacturing of beverages.

Company gives special type of consideration to the quality of raw material, work in process and finished goods.

Raw material

Concentrate

The concentrate is a main ingredient of the finished goods. The parent company is itself quality conscious company so company never had any complaint about the concentrate quality.

Sugar

Sugar is purchased from different suppliers. When there is major need then order is placed to the Ittefaq sugar mills. Company has a minimum acceptable level as standard to check the quality.

coca cola company also receives the certificate of analysis from the supplier before delivery. there is also sugar test in the lab and high quality is used in the manufacturing of the process.

Water

There ate very high standards are kept to process the water and then several checks are made to identify whether the quality of water is up to the required standard or not. Following are the technical names of tests.

Upper lab test

Water softness test

Sound filter test

Carbon purifier test

These tests promise that the quality of water used in the products is equal to the standards of mineral water.

Work in process

Syrup treatment

Syrup treatment process of coca cola makes the quality of product more reliable. Company already has given the standards to check the syrup.

Lab test

When carbon dioxide and ammonia are added to the syrup then a lab test is made of the ingredients. This test is most important test because it is the final test before the conversion into the finished product.

Finished product

Finished good test

Finished product is selected and tested in the lab. This test also checks the ingredients and status of the bottles. In the finished goods test two type of test are used to maintain the quality of finished products.

DISTRIBUTION CHANNELS

Coca Cola Company makes two types of selling

Direct selling

Indirect selling

Direct Selling

In direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin.

Indirect Selling

They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products.