Discuss the factors that will be affecting the demand and supply the given products in the next several years.

University Degree Business and Administrative studies

Introduction

In this report we are trying to do broad discussion on the factors that will be affecting the demand and supply for the given products in the next several years, and we have also described about these factors how they will affect on demand and supply to increase or decrease. This particular report has appropriate facts and figures, price, sales and growth rate which will assist to do market analysis. After doing critical marketing analysis we have predicted the future growth or decline in demand and supply.

Demand

“The quantity demanded of any good is the amount of the good that buyers are willing and able to purchase”. (N. Gregory Mankiw, 2004).

Quantity demanded of any good depends on various things, but one determinant plays an essential role in the market which is price of that good. But price is not the single thing that affects on market there are also other factors which affects the demand which are: Income, Distribution of income, Tastes, substitute goods, Complementary goods, Expectation of future price change (Sloman & Norris, 1999).

1. Convenience foods

“Total demand for converted flexible packaging (food and non-food sectors combined) will grow 4.2 per cent per year to $16.5bn in 2011”

These figures clearly show that convenience foods item’s demand is going to increase in coming future.

Now a day if we look at supermarkets there is lot of variety available in convenience foods which are of good standard and easy to use and relatively good in taste now because we have lots of variety in market, annually food manufactures are offering 5,000 to 6000 new products or product variations for grocery stores.

Which mean we have choice of substitute and substitute goods create competition which do not allow price to be raised. Recent reports shows more women working in market

Because women are working and can’t cook at home this will increase number of buyers for convenience foods in market and it will also affect on income per family, income will increase which will also help to increase demand in future.

Easily prepared food buying fashion, change in the UK population. The growths in single- and two-person houses, as well as stumbled eating events in larger households are biggest driver to increase in demand.

0 Q

Demand will increase for convince food

2. Product purchased on internet

Figures founds during research reveal that demand of products purchased on internet will increase at staggering rate. Total world’s Est. population in year 2008 is 6,676,120,288. In year 2000 internet user were 360,985,492 and latest data tells us today 1,463,632,361 people are using internet which gives us 305% growth in internet usage from 2000 to 2008.

Statistics shows that internet shopping is also on the increase, with 53% having bought goods online, compared with 44% last year.

People are doing their banking on internet. In U.K year 2001 6.2m people were using online banking and in 2006 17.0 m peoples were using internet banking which tells us 174% growth rate.

The entire online market in the year 2004 was projected to be £6.3 billion, in 2005 £ 8.2 billion and 10.9 billion in 2006 in that order. Respectively the demand for online shopping market is projected 14 billion in 2007 and 17 billion in 2008.

The main factor behind the growth of internet purchasing is, internet shopping is time saving, customer found it convenient to shop online, because of technology they can find more accurate and low price for their choice with comparison of thousands of item price. In early days of internet shopping payments procedures were not secured, but today with the help of new legislation and technology it has been made secure which gives more trust to people to shop online and more people population have access to internet.

0 Q

Demand will increase for internet purchasing

3. Fax machines

Fax machine usage is not totally vanished, but their use is limited in these days. If we look at figures for fax machines it shows the demand of fax machine is declined.

Uni-Copy Technologies sold about five stand-alone fax machines a month in 2002. This year in last 10 moths they sold only 7 machines. According to Joe Waldo of Uni-copy technologies fax machine demand declined significantly.

This is because of new paper free era, people like to communicate or addressed via E-mail. It is more convenient and easy to use and manage; it is also cost effective because in electronic communication we don’t need paper, staff and extra office room to handle this department. In electronic communication it is easy to communicate, manage, and track documents. It also gives us quick reply facility. In these days latest technology changed the culture’s demand people like paper free documentation in these days.

Alone in U.S.A sales of stand-alone fax machines are well ...