General Electric

Factors affecting Demand of Pepsi( coldness drink) (1)Changes in the bell (2)Changes in consumers Income spent on goods and services (3)Changes in the Tastes/Preferences of consumers for goods/services (4)Changes in the Prices of related goods and services Substitutes and Complements 5) changes in relate order and the general availability of credit. Many households finance consumption by borrowing. If interest rates rise, c altogether for contracts for more goods and services particularly housing. 6) Natural disasters (storms, hurricanes, earthquakes, tornadoes, floods etc) ) ad can consider a foodstuff effect on accept. Indeed, producers of PEPSI that argon close substitutes generally spend large amounts on advertising, reminding consumers that their product is damp than the oppositions product. (Whether or not this is reality true, of course is another matter). 8) Seasonal changes. For example, demand for Cold drinks rises in warmer weather, and falls in the colder mon ths of the year. If price save changes, the demand curve for a good or service give not shift. Instead, there lead be a movement along the demand curve.If price rises, demand will contract less will be purchased in a attached close of cadence. If price falls, demand will expand, and more will be bought in a given period of time. The demand curve will shift to the left or right, if other factors, other from price, change. Factors Affecting Supply Of a Product . * expected value of future price * When producers expect higher(prenominal) prices in the future commodities, the proclivity is to keep their goods and release them when the price rises. * ? Change in the price of related goods * Changes in the price of goods have a significant effect in the supply of such goods. Government subsidies * Subsidies or the financial aids/ care given by the government reduces cost of drudgery which encourages more supply. * rate of firms in the securities industry * An sum up in the num ber of firms in the market leads to an increase in supply of goods and services. Nature of elasticity in hurt of Income The degree to which a demand for a good changes with respect to a change in income depends on whether the good is a necessity or a luxury. The demand for necessities will increase with income, just at a slower rate.This is because consumers, instead of buying more of only the necessity, will exigency to use their increased income to buy more of a luxury. During a period of increasing income, demand for luxury products tends to increase at a higher rate than the demand for necessities. Nature of elasticity in terms of Price Price elasticity of supply measures the relationship between change in quantity supplied and a change in price. If supply is elastic, producers can increase output without a rise in cost or a time delay If supply is inelastic, firms find it hard to change production in a given time period. Major competitors Type of market (structure) it compet es in (give reasons as to your opinion) Major Competitor is COCA COLA and all other different Soft drinks made locally It competes in many products as compare to Coca cola its products are * Aquafina * Pepsi * Mountain Dew * sierra Mist * Sobe * Lipton Brisk Tea * MUG Root Beer * Slice * Gatorade * pogey Juice * Tropicana Pepsi is purely a Monopoly One seller dominates the market with no close substitutes. Natural Monopoly efficient production by a hotshot supplier PRICING STRATEGY OF PEPSI In Pakistan Pepsi cola is being operated by Pakistan Beverages.Pepsi is available in the majority ofstores, outlets, restaurants, and hotels. It has a huge market of customers. fundamentally it is segmented for theyounger generation of Pakistan but because of its customized offerings it is being consumed by differentage groups in our society. The smart set has offered Pepsi in different quantities and prices in our market. Its market oriented statement is hardiness for more PRICES QUANTITY 1 2 Rs250ml 20Rs 300ml 20 Rs500ml 40Rs1. 5 lit 55 Rs2. 25 lit. In our society Pepsi often reduces its prices during the holy month of Ramadan and at the time of Eid.In this way they adopt promotional pricing strategy. Even if you incur on their offerings they are usingproduct-line pricing strategy as they are offering different quantities with different amount of money. Indifferent sectors Pepsi have excessively adopted segmented pricing strategy as its prices are often higher in luxurious hotels and other sectors. Its main competitor is Coca-cola when it comes to soft-drinks. Coca-cola have also made various efforts through different pricing strategies and offerings but Pepsi have alsoresponded effectively towards their actions through initiating price cuts at the right time for example.In the month of Ramadan whenever Coca-cola reduces their prices Pepsi also responds through price cuts and then eventually later that period it rises its prices. However buyers reactions have not been much affected the company in the long-run. Pepsi have always operated their sales through promotional andphsycological pricing strategy and the great example for this can be their recently offered deal which is 2. 25 litre in 50 Rs.