An Economic Study of Vitracs Jam

Prepared By:

Hany Elkammar Aly Farahat Abdalla Ismail

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Telecom Egypt - MBA program - Econonmic

Outlines
Objectives.
Introduction:

Factors affect Supply.

Factors affect Demand. Supply. Demand. Supply and Demand.

Market Volume Market Share. Market Type.

Company Portfolio. Elasticity

Our Product.
Conclusions Refrences
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Telecom Egypt - MBA program - Econonmic

Objectives
Study of the Egyptian Vitracs 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.
Telecom Egypt - MBA program - Econonmic 3

Market Volume of JAM in Ton

35000 30000

29542 26465 27107 24356 24591 21997

Quantities In Ton

25000 20000 15000 10000 5000 0

2008

2009

2010

Years
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Importing and Exporting

6000

5395
5000

Quantitity in Tons

4000

3042
3000

2596
1863 1163

Exporting Importing

2000

1000

142
0 2008 2009 2010

Year
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Market Share
Market of JAM:
Vitrac (80%) Alrashedi(10%) Halwani (8%) others (2%)
Alrashedi, 10

Halwani, 8 others, 2

Vitrac, 80

Vitrac Alrashedi Halwani others

Telecom Egypt - MBA program - Econonmic

Vitrac Portfolio
Vitrac (1981).
Hero Group (2002[65%],2005[100%]).

Hero Brands names:

Telecom Egypt - MBA program - Econonmic

Hero Group

Telecom Egypt - MBA program - Econonmic

Our Product
Vitracs Jam Jar 420gm.

Telecom Egypt - MBA program - Econonmic

Market Type
Few Sellers.
Little Differentiated product.

The Market is Oligopoly and tend to be :

MONOPLY
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Factors affect Demand

Seasonality(Winter and

Schools Seasons). Holidays. Taste of consumers. Promotions. Competition.

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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) and

Expectations for demand to store. Others(ex. Lorry drivers Strike). Distributions.

Telecom Egypt - MBA program - Econonmic

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Quantity in Months
180 160

Qunatinty (Qt x 1000)

140 120 100 80 60 40 20 0 Quantity Supp. (Qt x1000) Quantity Demanded Qd(Qtx1000)

1 105 100

2 109 100

3 100 105

4 125 115

5 125 125

6 90 100

7 120 110

8 90 115

9 160 140

10 170 160

11 140 150

12 160 160

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Demand
5.5 5
5 5 5 5 5

Unit Price(LE)

4.5
4.25 4.25 4.25

4.5

4.5

Promotion Promotion

4
3.75

3.5

3
80 90 100 110 120 130 140 150 160 170

Quantity Demanded(Qt x 1000)

Telecom Egypt - MBA program - Econonmic 15

Supply
5.5
May2010-Risk Avoidance
5

Unit Price(LE)

4.5

Aug2010Preparing for promotion

4.5 4.25 4.25 4.5

4
3.75 3.75

3.5

3 80 90 100 110 120 130 140 150 160 170

Quantity Supplied(Qt x 1000)

Telecom Egypt - MBA program - Econonmic 16

Demand and Supply

5.5
5

Unit Price(LE)

4.5

3.5

3 80 90 100 110 120 130 Quantity (Qt x 1000) 140 150 160 170

Supply

Demand
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Telecom Egypt - MBA program - Econonmic

Elasticity of Supply & Demand

Month dQs
Jan-Feb2010 Feb-March2010 Mar- Apr2010 Apr-May2010 May-June2010 June-July2010 July- Aug2010 Aug-Sep2010 Sep-Oct2010. Oct-Nov2010 Nov-Dec2010

dQd
0 0.04878 0.090909 0.083333 -0.22222 0.095238 0.044444 0.196078 0.133333 -0.06452 0.064516

dP
0 0.125 0 0

Es
-0.689

Ed

Notes
No Price change

0.037383 -0.08612 0.222222 0 -0.32558 0.285714 -0.28571 0.56 0.060606 -0.19355 0.133333

0.390244 Inelastic S&D No Price change

No Price change

0.162162
0 0 -0.10526

-2.00775
-5.32 -1.83871

-1.37037
-1.86275 -0.6129

Elastic S&D
No Price change No Price change

0
0.105263 0

No Price change

No Price change 18

Telecom Egypt - MBA program - Econonmic

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

Telecom Egypt - MBA program - Econonmic

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