The document presents the results of measuring the elasticity of demand for Lux and Lifebuoy soap. It finds that demand for both Lux and Lifebuoy is elastic, meaning quantity demanded is responsive to changes in price. Specifically, it calculates the price elasticity of demand for Lux as 1.2 and Lifebuoy as 1.1, indicating that for a 1% increase in price, quantity demanded decreases by more than 1%. While Lux has a slightly more elastic demand than Lifebuoy, the conclusion is that demand for both soap brands exhibits elastic characteristics.
3. GROUP NAME : CONNECTING PEOPLE
INFORMATION OF GROUP MEMBER :
NAME OF MEMBER ID
FAHIMA AKTER 15102192
SAMIA ZAMAN 15102208
FAKID ISRAK SHAD 15102202
MD. AMZAD HOSSAIN 15102225
H.M. ABID HASAN 15102226
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4. FLOW OF CONTENTS :-
INTRODUCTION
RESEARCH OBJECTIVE
METHODOLOGY
DEMAND
ELASTICITY OF DEMAND
DIFFERENT CATEGORIES OF PRICE ELASTICITY OF DEMAND
MEASUREMENT OF ELASTICITY OF DEMAND FOR “LUX”
MEASUREMENT OF ELASTICITY OF DEMAND FOR “LIFEBUOY”
RESULTS
CONCLUSION
REFERENCE
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5. INTRODUCTON
Can you imagine anything that is possibly more important in our
daily lives than soap? We all need soap to wash and clean our
bodies, clothes, cars and even our houses. We want soap that will
keep we clean and fresh feeling, yet at the same time, soft and
elegant. Using high quality handmade soap is a great way to help
a healthy life style and to maintain better feel and beauty to our
skin. Without Soap we cannot clean properly .Although the price
of soap is increasing day-by-day, we cannot avoid it . But we
purchased less amount of soap.
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6. THE ISSUE
There are various types of soap in our country. Like as LUX,
Lifebuoy, Meril, Dettol, Keya, Dove etc. But the most popular
soaps are Lux and Llifebuoy . The price of these soaps are
increasing day-by-day. For this reason the demand of these soaps
are decreasing. In a word, there is an important change in
quantity due to change in price.
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7. RESEARCH OBJECTIVE
There are some important objectives for this research.
The main objectives of the present study are given
below:
01. To measure the elasticity of demand
02. To investigate the responsiveness of quantity
demanded to price.
03. To compare elasticity of demand between LUX and
Lifebuoy.
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8. 8
For accessibility and availability of information we have
chosen to work on the strategies of Unilever Bangladesh
Ltd. As the company operates in the market with a huge
number of products in different industries. We have
decided to focus on two of their world wide successful
brands, LUX & LIFEBUOY. We need to know how much
supply & demand response to the changes in price.
METHODOLOGY
9. DEMAND
In economics, Demand is a buyer's
willingness and ability to pay a price for a
specific quantity of a good or service.
Demand refers to how much (quantity) of
a product or service is desired by buyers
at various prices. The quantity demanded
is the amount of a product people are
willing or able to buy at a certain price;
the relationship between price and
quantity demanded is known as the
demand.
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10. ELASTICITY OF DEMAND
Demand elasticity is a measure of how much
the quantity demanded will change if another factor
changes. One example is the price elasticity of demand;
this measures how the quantity demanded changes
with price. This is important for setting prices so as to
maximize profit.
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11. DIFFERENT CATEGORIES OF PRICE ELASTICITY
OF DEMAND
There are three categories of price elasticity of demand.
Such as : --
01. Price elasticity demand
02. Price inelasticity demand
03. Unit elasticity demand
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12. MEASUREMENT OF ELASTICITY OF DEMAND
FOR ‘LUX’
For calculating the price elasticity of demand , We need data on price and
quantity . We went to Unilever Bangladesh Ltd. Uttara Zone. They have given
us all possible data on quantity and price of LUX & Lifebuoy. We get from
office of Uttara Zone. That’s why our data is an unpublished data. These data is
given below:
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The price elasticity of
demand is more than 1,
So, it has elastic demand.
We can avoid(-) sign,
because all elasticity are
positive. After calculating
the elasticity of LUX, We
can see that it has elastic
demand .
14. MEASUREMENT OF ELASTICITY OF DEMAND FOR
‘LIFEBUOY’
Our working year is 2013 & 2014. In 2013 the price of
lifebuoy was 31tk per piece. The quantity of demand
was 13824 pieces. After that In 2014 price slightly
increased , But quantity demand more than less
previous demand with 8540 pieces.
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The price elasticity of
demand is more then 1.
So, it has elastic demand .
We can avoid (-) sign
because all elasticity are
positive. After calculating
the elasticity of Lifebuoy,
we can see that it has
elasticity demand.
16. RESULT
After calculating LUX and Lifebuoy, the result
shows that elasticity of demand of LUX is almost
same as lifebuoy. In both cases, we have found
elastic demand.
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