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PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand & Supply Analysis) PARLE Hide and Seek (Demand &
PARLE Hide and Seek
DEMAND & SUPPLY ANALYSIS
Under the guidance of-ASAVARI BAPAT
HISTORY: PARLE COMPANY
In 1929 a small company by the name of Parle products
emerged in British dominated India. The intent was to
spread joy and cheer to children and adults alike, all over
the country with its sweets and candies. The company knew
that it wouldn’t be an easy task, but they decided to take
the brave step. A small factory was set up in the suburbs of
Mumbai, to manufacture sweets and toffees. A decade later
it was upgraded to manufacture biscuits as well. Since then,
the Parle name has grown in all directions, won international
fame and has been sweetening people's lives all over India
and abroad.
Apart from the factories in Mumbai and Bangalore Parle also
have factories in Bahadurgarh in Haryana and Neemrana in
Rajasthan, which are the largest biscuit and confectionery
plants in the country. Additionally, Parle Products also has 7
manufacturing units and 51 manufacturing units on
contract.
DETERMINANTS OF DEMAND OF HIDE AND SEEK
Price: The product is popular in middle and upper middle class
and it has a very good taste so we can say that if we see a rise in
price of product then there will be a slight decrease in the
demand of product, but if there is a decrease in the price, the
demand of the product may slightly increase.
Income: If the income of the people increases, the demand of the
product may slightly increase or may not increase but if the
income of the people decreases, the demand of the product may
decrease or may not decrease because the product comes in
different quantities like Rs. 5, Rs. 8, and Rs. 14.
Population & Age group: This product is mainly consumed by
Teens, Tweens, Adults and DINKS therefore the age group does
not affect the demand of the product and by the increase in the
population the demand of the product also increases.
Brand Image: The brand image of the Parle plays an important
role in the demand of the Hide & Seek. This product has built such
a brand image that it has much attracted the mind of the
consumers so they will not like to switch over to the other brand.
Consumer’s taste and preferences: Hide & Seek comes with a
mix of ingredients like Wheat Flour, Chocolate Chips, and Cocoa
butter with a unique taste which has remained the same and has
touched the heart of the consumers. So, they will not like to go for
any other product.
BRANDS AGE GROUPS0-10 10-20 20-30 ABOVE 30
Hide & Seek 15 14 12 12Britannia Good-Day Choco-Chip
8 10 11 12
NO CONSUMTION 2 1 2 1
0-10 10-20 20-30 ABOVE 30
AGE GROUPS
0
2
4
6
8
10
12
14
16
Hide & SeekBritannia Good-Day Choco-ChipNO CONSUMTION
According to the above analysis it is concluded that people of
different age groups prefer mostly Hide & Seek brand of
biscuits while Britannia Good-Day Chocó-Chip brand is almost
at par with Hide & Seek among all the age groups. People of
age group above 30 equally like to have both brands.
Competition: There are many competitors like Britannia Good-
Day Choco-chip cookies, Sunfeast Choco, etc. in the market
providing Chocolate biscuits so if the price of the competitors
increases, the demand of Hide and Seek also increases. But if the
price of the competitor’s decrease, the demand of Hide & Seek
will be slightly affected by it.
Price of Complementary Goods: Hide & Seek is made from the
Sugar, Cocoa mass, Cocoa butter, Dextrose, Emulsifier (322), and
Vanillin. If the price of these complementary goods increases then
there will be slight decrease in the demand.
Advertisement campaign: Advertisement campaign has played
a vital role in attracting the major part of the population towards
Hide & Seek. It was through this campaign like “Dil aa Jaaye!”
Hrithik Roshan is their brand ambassador and they have used
his flawless dance for promoting Hide and Seek. So, it is through
advertisement that Hide & Seek has gained social acceptance
which has played a major role in increasing its demand.
SHIFT IN DEMAND CURVE:
Downward Shift in Demand Curve
When the demand for product decreases due to external factors but the price of that particular product remains constant.
E.g. - If the prices of Substitute goods like Britannia Good Day Chocó Chips, Sunfeast Chocó etc fall, the demand for Parle Hide and Seek will also fall.
Upward Shift in Demand Curve
The change in quantity demanded due to change in other
factors with price remaining constant of that particular product.
Eg. If the prices of Substitute goods like Britannia Good Day Choco Chips, Sunfeast choco etc increase, the demand for Parle Hide and Seek will also increase.
SUPPLY
ANALYSIS
SUPPLY OF PARLE HIDE & SEEK
What Does Law Of Supply Mean?
A microeconomic law stating that, all other factors being equal,
as the price of a good or service increases, the quantity of
goods or services offered by supplier’s increases and vice
versa.
DETERMINANTS OF SUPPLY
Technology
A supply curve is drawn for a given technology. Better
technology shifts the supply curve to the right. Producers
supply more than previously at each price.
For instance-
Better cocoa refining reduces the cost of making chocolate
biscuits.
Faster shipping and better refrigeration lead to less
wastage in spoiled cocoa beans.
Technological advancement enables firms to supply more
at each price.
As a determinant of supply, technology must be interpreted
broadly. It embraces all know how about production methods,
not merely the state of available machinery. In agriculture, the
development of disease-resistant seeds is a technological
advance. Improved weather forecasting might enable better
timing of planting and harvesting. A technological advancement
is any idea that allows more output from the same inputs as
before. A technological advancement shifts the production
possibility frontier outwards.
Price of Input
A particular supply curve is drawn for a given level of input
prices. Lower input prices (lower wages and lower fuel costs)
induce firms to supply more output at each price, shifting the
supply curve to the right. Higher input prices make production
less attractive and shift the supply curve to the left. If a late
frost destroys much of the cocoa crop, scarcity will bid up the
price of cocoa beans. Choco-chip Biscuit’s producers supply
less biscuits at same price than previously.
Government Regulation
Once people have discovered a better production method they
are unlikely subsequently to forget it. Government regulations
can sometimes be viewed as imposing a technological change
that is adverse for producers. If so, the effect of regulations will
be to shift the supply curve to the left, reducing quantity
supplied at same price.
More stringent safety regulations prevent chocolate biscuit
producers using the most productive process because it is quite
dangerous to workers. Whenever regulations prevent producers
from selecting the production methods they would otherwise
have chosen, the effect of regulations is to shift the supply
curve to the left.
SHIFT IN SUPPLY CURVE:
In simple words the shift in the supply curve refers to the
change in quantity supplied due to the other factors other than
price.
Downward shift (shift to right) and upward shift (shift to
left) are the two shifts in the supply curve.
Downward shift (shift to right):
When the supplier is able to supply more products without a
change in price it is called as downward shift or shift to right.
E.g. Due to introduction of new cost-effective technology, the
production of Parle Hide & Seek Packets will increase.
Upward Shift (Shift to Left):
When the supplier is able to supply less without changing the
price of the product is called as upward shift or shift to left.
E.g. if in any year the agricultural production of cocoa crops get
damaged due to bad weather then there will be less supply of
Chocó products at same price and same with hide and seek.
ELASTICITY ANALYSIS
PRICE ELASTICITY
Our product has a unique taste so if we increase our price by 25%
then demand of our product will decrease by 5% that means
elasticity of price is <1. So, our product is less elastic. (If we
increase the price by Rs. 1 then demand will fall by 5 pc per 100
pc)
EP=∆Qd∆ Px
×PQ
EP = 51
× 4100
= 0.20
[Our Product’s price elasticity is <1 because our product is in
monopolistic market]
Arc Price Elasticity:
Ep=Q2−Q1
P2−P1
×P2+P1
Q2+Q 1
¿ 95−1005−4
×5+4
95+100
¿−0 .23
INCOME ELASTICITY
If the income rises by 20% then the demand will rise by 14 %
( approx) the curve is positively sloped means that elasticity of
Income is >0 and <1.
E I=∆Qd∆I x
×IQ
¿ 101000
×500070
= 0.71
30 40 50 60 70 80 90 100 110
QUANTITY DEMANDED
8 7 6 5 4 3 2 1
INCOME IN THOUSANDS
Arc Income Elasticity:
E I=Q2−Q1
I 2−I 1
×I 2+ I 1
Q2+Q1
¿ 80−706000−5000
×6000+5000
80+70
= 0.73
CROSS ELASTICITY OF DEMAND
If there is an increase in the price of Britannia Good Day Chocó
Chips or Sunfeast Chocó by 20% to 25% then the demand for
Parle Hide & Seek will increase by 8%.
(When there is an increase of Rs.1 in the substitute’s price then
the demand of the Hide & Seek will increase by 10% approx)
E xy=∆Q x
∆ P y×PyQx
¿ 121×
5118
= 0.51
Arc cross- price elasticity:
E xy=Qx2
−Q x1
Py2−P y1
×Py2
+Py1
Qx2+Q x1
¿ 130−1186−5
×6+5
130+118
= 0.53
Cross Elasticity for Complementary Goods:
If the price of the cocoa butter, wheat flour and other
complementary goods like plastic packaging materials will
increase constantly than the cost of the production will increase
and by this the price of the relevant product will also increase but
the demand of hide & seek will remain constant because of it is a
normal good.
Short run and long run impact in the elasticity of
the demand
In the Short run period of time, the demand for hide &
seek is less elastic because if the price of hide & seek biscuit
suddenly increases Rs.5 to Rs.8, than the demand of the product
will also decrease but in the long run the demand may not be
much affected.
There are some criteria that also affects and they
are like:
Our product should be in the monopolistic competitive market.
No change in the taste and quality.
In the Long run period of time, the demand for the hide &
seek is more elastic because if the price of the hide & seek in the
2005 was Rs.5 and in the 2010 it will be Rs.10 and, the quantity
and the quality will remain the same and the other products like
Britannia good day Chocó chips, Sunfeast Chocó etc. if they don’t
change any of the things like price, quality and quantity then it
will greatly affect the demand of the hide & seek and it will
started decreasing day by day.
Assumptions:
There are possibilities of change in technology & chances of
Product innovation in the long run.
There are possibilities of increasing good quality biscuits
manufacturing units.
CONCLUSION
As Parle Hide & Seek is an elastic product, a slight increase in
its price could greatly affect the consumer’s buying decision as
they would then prefer to purchase its substitutes such as
Britannia good day choco chips, sunfeast choco etc.
BIBLIOGRAPHY
www.parle.com
www.britannia.com
www.itcportal.com