7/29/2019 Jam Market

1/22

An Economic

StudyofVitracs Jam

Prepared By: Hany Elkammar

Aly Farahat

Abdalla Ismail

1Telecom Egypt - MBA program - Econonmic

7/29/2019 Jam Market

2/22

Outlines Objectives.

Introduction:

Market Volume

Market Share.

Market Type. Company Portfolio.

Our Product.

Factors affect Supply.

Factors affect Demand.

Supply.

Demand.

Supply and Demand. Elasticity

Conclusions

Refrences 2Telecom Egypt - MBA program - Econonmic

7/29/2019 Jam Market

3/22

Objectives Study of the EgyptianVitracs Jam Market & applying

Economic laws of Supply and Demand and to calculate

the Price Elasticity of both Demand and Supply.

Adding new information to our colleagues.

Getting High grade in Evaluation.

3Telecom Egypt - MBA program - Econonmic

7/29/2019 Jam Market

4/22

Market Volume of JAM in Ton

2646524356

21997

29542

24591

27107

0

5000

10000

15000

20000

25000

30000

35000

2008 2009 2010

QuantitiesInT

on

Years

4Telecom Egypt - MBA program - Econonmic

7/29/2019 Jam Market

5/22

Importing and Exporting

Telecom Egypt - MBA program - Econonmic 5

3042

2596

5395

142

1863

1163

0

1000

2000

3000

4000

5000

6000

2008 2009 2010

QuantitityinTon

s

Year

Exporting

Importing

7/29/2019 Jam Market

6/22

Market ShareMarket of JAM:

Vitrac (80%)

Alrashedi(10%)

Halwani (8%)

others (2%)

Vitrac, 80

Alrashedi,10

Halwani,8 others, 2

Vitrac

Alrashedi

Halwani

others6Telecom Egypt - MBA program - Econonmic

7/29/2019 Jam Market

7/22

Vitrac PortfolioVitrac (1981).

Hero Group (2002[65%],2005[100%]).

Hero Brands names:

7Telecom Egypt - MBA program - Econonmic

7/29/2019 Jam Market

8/22

Hero Group

Telecom Egypt - MBA program - Econonmic 8

7/29/2019 Jam Market

9/22

Our ProductVitracs Jam Jar 420gm.

9Telecom Egypt - MBA program - Econonmic

7/29/2019 Jam Market

10/22

Market TypeFew Sellers.

Little Differentiated product.The Market is Oligopoly and

tend to be :

MONOPLY10Telecom Egypt - MBA program - Econonmic

7/29/2019 Jam Market

11/22

FactorsaffectDemandSeasonality(Winter andSchools Seasons).

Holidays.

Taste of consumers.

Promotions.

Competition.11Telecom Egypt - MBA program - Econonmic

7/29/2019 Jam Market

12/22

Factors affect Supply Inputs in Production:Ingredients:

Fruits.

Sugar.

Pectin.

Packaging

Jars.

Lids.

Labels.

Labors.

12Telecom Egypt - MBA program - Econonmic

7/29/2019 Jam Market

13/22

Factors affect Supply(contd.)Price of Inputs.

Fruit Seasons (Jan.,Feb.,March) andExpectations for demand to store.

Others(ex. Lorry drivers Strike).

Distributions.

13Telecom Egypt - MBA program - Econonmic

7/29/2019 Jam Market

14/22

Quantity in Months

1 2 3 4 5 6 7 8 9 10 11 12

Quantity Supp.

(Qt x1000)105 109 100 125 125 90 120 90 160 170 140 160

Quantity Demanded

Qd(Qtx1000)100 100 105 115 125 100 110 115 140 160 150 160

0

20

40

60

80

100

120

140

160

180

Qunatinty(Qtx1000)

14Telecom Egypt - MBA program - Econonmic

7/29/2019 Jam Market

15/22

Demand

3.753.75

4.25 4.25 4.25

5 5 5

4.5 4.5

5 5

3

3.5

4

4.5

5

5.5

80 90 100 110 120 130 140 150 160 170

UnitPrice(L

E)

Quantity Demanded(Qt x 1000)

PromotionPromotion

15Telecom Egypt - MBA program - Econonmic

7/29/2019 Jam Market

16/22

Supply

3.75 3.75

4.254.254.25

5 55

4.54.5

5 5

3

3.5

4

4.5

5

5.5

80 90 100 110 120 130 140 150 160 170

UnitPrice(LE)

Quantity Supplied(Qt x 1000)

May2010-RiskAvoidance

Aug2010-

Preparing forpromotion

16Telecom Egypt - MBA program - Econonmic

7/29/2019 Jam Market

17/22

Demand and Supply

Telecom Egypt - MBA program - Econonmic 17

3

3.5

4

4.5

5

5.5

80 90 100 110 120 130 140 150 160 170

UnitPrice(L

E)

Quantity (Qt x 1000)

Supply Demand

7/29/2019 Jam Market

18/22

Elasticity of Supply & Demand

Month dQs dQd dP Es Ed NotesJan-Feb2010 0.037383 0 0 No Price change

Feb-March2010 -0.08612 0.04878 0.125 -0.689 0.390244 Inelastic S&D

Mar- Apr2010

0.222222 0.090909 0

No Price change

Apr-May2010 0 0.083333 0 No Price change

May-June2010 -0.32558 -0.22222 0.162162 -2.00775 -1.37037 Elastic S&D

June-July2010 0.285714 0.095238 0 No Price change

July- Aug2010 -0.28571 0.0444440

No Price change

Aug-Sep2010 0.56 0.196078 -0.10526 -5.32 -1.86275

Sep-Oct2010. 0.060606 0.133333 0 No Price change

Oct-Nov2010 -0.19355 -0.06452 0.105263 -1.83871 -0.6129

Nov-Dec2010 0.133333 0.064516 0 No Price change

18Telecom Egypt - MBA program - Econonmic

7/29/2019 Jam Market

19/22

Conclusions Market is Oligopoly and tend to be Monopoly.

Vitrac has Market Power because Market share is about 80%.

Vitrac can work as Price Maker and lead the market and the

others will act as price takers.

Market can accept newcomers but with new Ideas and

Innovation(Like diet Jam products with high quality and low

prices).

19Telecom Egypt - MBA program - Econonmic

7/29/2019 Jam Market

20/22

Conclusions(Contd.) Promotion raise the Demand distinctly.

Supply Curve try to follow Demand curve because the Demand

should Expected. Before Promotion the Quantity supplied decreased to consume

the old product in Market.

Also before Price rising ,the Quantity supplied decreased to

Avoid the risk of consumer reaction.

In parallel with the promotion the supply largly increased to

meet the consumer demand.

Telecom Egypt - MBA program - Econonmic 20

7/29/2019 Jam Market

21/22

Refrences Interviews with Vitracs accounting & Marketing Dep.

www.hero.ch,www.vitrac.com.

www.capmas.gov.eg

AC Nielsen.

www.halwani.com

http://www.elrashidi-elmizan.net/

Telecom Egypt - MBA program - Econonmic 21

http://www.elrashidi-elmizan.net/

7/29/2019 Jam Market

22/22

Thank You

Telecom Egypt - MBA program - Econonmic 22