Economic concepts applied in kingfisher

Supply and Demand:

              The more number of people requires beer,the demand is increasing

               In this situation you can increase price of beer to acquire more profits

               The main raw material required to make beer is flour.As price of flour increases due to less supply.The company desired to make wheat to flour.

                so,more number of producers buy wheat to convert it into flour from this there is chance of increase in demand for wheat.

Costs and Benefits:

The consumer will buy beer on the basis of affordability mostly rather than on the base of taste.

The consumer choose product based on high benefits with low cost.when compared to competitors kingfisher is providing products in less price

People Respond To Incentives:

           The company has two sized bottles 500ml and 1ltr it decided to increase the production of beer so it decided to give more bonuses to employees. here employees respond to bonus(incentive) and produces more quantity.

The Price mechanism

Here the demand for flour increased due to shortage so its price is increased.This leads to increase in flour producers and decrease in demand due to high price.

The Economics Of Scope:

The kingfisher produces different products with same equipment with more cost efficiency than producing on their own.for example,kingfisher produces kingfisher strong,ultra,premium etc with same raw materials and machinery.

oligopoly competition:

There are few number of competitors so that new firm can enter into market,

the products are differentiated.