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An Economic
StudyofVitracs Jam
Prepared By: Hany Elkammar
Aly Farahat
Abdalla Ismail
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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
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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.
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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
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Importing and Exporting
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3042
2596
5395
142
1863
1163
0
1000
2000
3000
4000
5000
6000
2008 2009 2010
QuantitityinTon
s
Year
Exporting
Importing
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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
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Vitrac PortfolioVitrac (1981).
Hero Group (2002[65%],2005[100%]).
Hero Brands names:
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Hero Group
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Our ProductVitracs Jam Jar 420gm.
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Market TypeFew Sellers.
Little Differentiated product.The Market is Oligopoly and
tend to be :
MONOPLY10Telecom Egypt - MBA program - Econonmic
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FactorsaffectDemandSeasonality(Winter andSchools Seasons).
Holidays.
Taste of consumers.
Promotions.
Competition.11Telecom Egypt - MBA program - Econonmic
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Factors affect Supply Inputs in Production:Ingredients:
Fruits.
Sugar.
Pectin.
Packaging
Jars.
Lids.
Labels.
Labors.
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Factors affect Supply(contd.)Price of Inputs.
Fruit Seasons (Jan.,Feb.,March) andExpectations for demand to store.
Others(ex. Lorry drivers Strike).
Distributions.
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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)
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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
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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
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Demand and Supply
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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
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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
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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).
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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.
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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/
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Thank You
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