Price Elasticity of Demand for Pizza in Pune

1. Group members:
AASHIT PRAKHAR (14003)
ANKUR KIMTANI (14014)
DEV DUGGAL
(14019)
RASHMI RANJAN (14050)

3.  The
change in the quantity demanded of a
product due to change in its price is called
price elasticity of demand.
 Price
elasticity of demand =
Percentage change in Quantity demanded of x/
Percentage change in Price of x

4. •Pizza
is an emerging fast food in Indian urban areas.
•With
the arrival of branded pizza such as Domino's and Pizza
Hut in early mid-1990s, it has reached almost all major cities
in India by 2013.
•The
Indian organized pizza market will surge more than 27%
during the year 2012-2015.

5. 






Age up to 25 years(COLLEGE)
Middle income group(D-MART)
Health conscious(GYM)
Professional employees(IT PARK)
Entrepreneurs(SHOPKEEPERS IN BAVDHAN)
Dominos in residential area(BAVDHAN)
Dominos in commercial area(HINJEWDI)

7. CATEGORY 1 UP TO 25
NO OF
WHEN PRICE
PERSON Consumption INCREASE BY
'
per month
10%
BY BY
20% 30%
WHEN PRICE
DECREASE BY BY
10%
20% BY 30%
1
4
4
1
0
4
4
5
2
5
5
4
4
5
6
6
3
3
2
2
1
5
6
7
4
5
4
3
3
4
4
5
5
2
1
1
0
1
1
1
6
3
3
2
1
4
5
6
7
2
1
1
1
2
3
4
8
2
2
2
2
2
2
2
9
1
1
1
1
2
2
2
10
2
1
1
1
2
2
2
29
24
20
14
32
35
40
Total

8. %
INCREASE
IN PRICE
DECREASED
DEMAND
% CHANGE
IN DEMAND
ELASTICITY =%CHANGE IN QUANTITY
DEMANDED/%CHANGE IN PRICE
10% 24/29*100=82%
18%
18%/10%=1.8
20% 20/29*100=69%
31%
31%/20%=1.55
14/29*100%=
48%
52.00%
30%
%
DECREASE
IN PRICE
INCREASED
DEMAND
% CHANGE
IN DEMAND
52.5/30.5=1.73
ELASTICITY =%CHANGE IN QUANTITY
DEMANDED/%CHANGE IN PRICE
10%
32/29*100=
110%
10%
10%/10%=1
20%
35/29*100=
121%
21%
21%/20%=1.05
30%
40/29*100=
138%
38%
38%/30%=1.26

9. Elasticity Index for Both Situations ( When price increase & when
price decrease)
elasticity when price decrease
by
elasticity when price increase by
Category
10%
20%
30%
10%
20%
30%
1 Age- up to 25
1.8
1.55
1.73
1
1.05
1.26
2 Middle income Group
2.5
1
1.2
2.2
1.1
1.16
3 health Conscious
1.5
1.25
1.16
1
1.5
1.83
4 Professional Employees
1.1
0.87
1.16
1
0.65
0.7
1
1.5
1.4
1.1
1
1
6 Dominos in Residentional Area
1.8
1.6
2.7
2.7
2.7
1.2
7 Dominos in Commercial Area
1.8
1.6
1.6
0.4
1.4
1.76
5 Entrepreneur

10. CATEGORY
PRICE INCREASE BY 10%
1
1.8
2
2.5
3
1.5
4
1.1
5
1
6
1.8
7
1.8
3
2.5
ELASTICITY
2
1.5
Series1
Linear (Series1)
1
0.5
0
0
1
2
3
4
SEGMENTS
5
6
7
8

11. Highest price elasticity is of Middle income
group.
Lowest price elasticity is of entrepreneurs.

12. CATEGORY
PRICE DECREASE BY 10%
1
1
2
2.2
3
1
4
1
5
1.1
6
2.7
7
0.4
3
2.5
ELASTICITY
2
1.5
Series1
Linear (Series1)
1
0.5
0
0
1
2
3
4
SEGMENTS
5
6
7
8

13.  Highest
price elasticity is of dominos located
in residential areas.
 Lowest
price elasticity is of dominos in
commercial areas.

14. CATEGORY
PRICE INCREASE BY 20%
1
1.55
2
1
3
1.25
4
0.87
5
1.5
6
1.6
7
1.6
1.8
1.6
1.4
ELASTICITY
1.2
1
Series1
0.8
Linear (Series1)
0.6
0.4
0.2
0
0
1
2
3
4
SEGMENTS
5
6
7
8

15.  Highest
price Elasticity is for dominos
located in commercial & Residential areas.
 Lowest
price Elasticity is for Professional
Employees.

16. CATEGORY
PRICE DECEASE BY 20%
1
1.05
2
1.1
3
1.5
4
0.65
5
1
6
2.7
7
1.4
3
2.5
ELASTICITY
2
1.5
Series1
Linear (Series1)
1
0.5
0
0
1
2
3
4
SEGMENTS
5
6
7
8

17.  Highest
price Elasticity is for Dominos
located in Residential Area.
 Lowest
price Elasticity is for professional
persons.

18. CATEGORY
PRICE INCREASE BY 30%
1
1.73
2
1.2
3
1.16
4
1.16
5
1.4
6
2.7
7
1.6
3
2.5
ELASTICITY
2
1.5
Series1
Linear (Series1)
1
0.5
0
0
1
2
3
4
SEGMENTS
5
6
7
8

19.  Highest
price elasticity is for Dominos
located in Residential Area.
 Lowest
price elasticity is for Health
Conscious persons & Professional persons.

20. CATEGORY
PRICE DECREASE BY 30%
1
2
1.16
3
1.83
4
0.7
5
1
6
1.2
7
2
1.26
1.76
1.8
1.6
ELASTICITY
1.4
1.2
1
Series1
0.8
Linear (Series1)
0.6
0.4
0.2
0
0
1
2
3
4
SEGMENTS
5
6
7
8

21. Analysis
For 30% decrease in price(demand increases)
• Highest price Elasticity for Health Conscious persons.
• Lowest is for professional Employees

22. Inferences THE HIGHEST PRICE ELASTICITY IS FOR THE
DOMINOS LOCATED IN THE RESIDENTIAL
AREAS.
 THE
LOWEST PRICE ELASTICITY IS FOR THE
PROFESSIONAL EMPLOYEES.