33
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 PARLE Hide and Seek DEMAND & SUPPLY ANALYSIS Under the guidance of-ASAVARI BAPAT

SUR HIDE N SEEK

Embed Size (px)

Citation preview

Page 1: SUR HIDE N SEEK

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

Page 2: SUR HIDE N SEEK

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.

Page 3: SUR HIDE N SEEK

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.

Page 4: SUR HIDE N SEEK

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

Page 5: SUR HIDE N SEEK

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.

Page 6: SUR HIDE N SEEK

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.

Page 7: SUR HIDE N SEEK

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.

Page 8: SUR HIDE N SEEK

SUPPLY

ANALYSIS

Page 9: SUR HIDE N SEEK

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.

Page 10: SUR HIDE N SEEK

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

Page 11: SUR HIDE N SEEK

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.

Page 12: SUR HIDE N SEEK

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.

Page 13: SUR HIDE N SEEK

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.

Page 14: SUR HIDE N SEEK

ELASTICITY ANALYSIS

Page 15: SUR HIDE N SEEK

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

Page 16: SUR HIDE N SEEK

= 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

Page 17: SUR HIDE N SEEK

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

Page 18: SUR HIDE N SEEK

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

Page 19: SUR HIDE N SEEK

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

Page 20: SUR HIDE N SEEK

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

Page 21: SUR HIDE N SEEK

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

Page 22: SUR HIDE N SEEK

will greatly affect the demand of the hide & seek and it will

started decreasing day by day.

Page 23: SUR HIDE N SEEK

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.

Page 24: SUR HIDE N SEEK

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.

Page 25: SUR HIDE N SEEK

BIBLIOGRAPHY

www.parle.com

www.britannia.com

www.itcportal.com