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CSEC June 2012 Economics SBA2
CSEC June 2012 Economics SBA2
SBA
Title of Project
A comparative study of the demand for KFC and Japs at a particular high school between the
period September 5 and 26, 201 1
Comments
The Title
The title of the project was clearly stated. It was a micro-economic topic and was appropriate
for this level. The full two marks were awarded.
Puiose of the Project
Three objectives were adequate although seven were listed.
awarded.
Collection of Data
Five sources of data collection were used. The full three marks were awarded.
Presentation of Data
A combination of tables, graphs, charts and diagrams were used. ll were accurately named
and labelled. The full seven marks were awarded.
retationandApalsis
An excellent analysis of data using relevant economic theory was done. The full ten marks
were awarded.
Findings
Seven findings relating to the objectives were presented. The full six marks were awarded.
Recommendations
The seven recommendations listed were based on the findings and were linked to the stated
objectives. The full four marks were awarded.
Communication of Information
Excellent use of language and reporting skills were evident throughout the report. The full
five marks were awarded.
This SBA scored the maximum forty (40) marks.
Name:
Subject: Economics
Teacher:
TABLE OF CONTENTS
PAGE
TITLE
Iiitrc:,cjiictjon
AimsandObjectives
Methods of Investigation
Pz.esentat.ion of Data
618
1921
FindingsandObservations..............
22
Recorrir,iencIations
23
24
Concli.ision
Bibliogzaphy
Appendices
25
2630
INTRODUCTION
With the increasing desire to satisfy ones appetite, spend less time cooking and more time
accomplishing tasks and enjoying friends and family, the fast food industry is dynamic,
quick and ever-growing Fried chicken and chips, sandwiches, breakfast. lunch or dinner,
cultural foods or even light snacks can be bought and consumed in under 10 or even 5
minutes. in a world where people eat firstly with their eyes, there is a food shop for
evervone Thus, I have decided to investigate the Fried Chicken industry with reference
specifically to Japs and KFC.
I would like to thank everyone who would have contributed to the completion of this
School-Based Assessment:
God firstly for the opportunity to do such a project
My teacher for her constant advice and willing guiding hand
My fellow group member for working on the SBA. with me
All those who answered the questionnaires distributed
My family for helping and supporting me during the execution of this project.
.:tivesofresearch
The aims of this investigation are:
*
+
-
jSrces:
1, gnnajre. One hundred and twenty questionnaires were shared out to students of
the S.A.G.H.S. body. This was geared towards gaining demand information and trends for
fried chicken and its complements at KFC and Japs outlets.
2. InteJjps. Managers of KFC and Japs outlets in St. Helena were interviewed to obtain
supply information such as the factors affecting supply and methods used to attract
customers.
da
Sources:
2. Internet. The websites listed in the bibliography were used to further clarir economic
concepts to enhance the schooIbased assessment
3. Jpcaifews ciers. These were used to obtain fried chicken advertisements as evidence of
the methods used to persuade customers to buy from KFC or Japs
Data
Question I CAll students ate fried chicken at least once per ear. More than half of the
students surveyed ate fried chicken monthly.
----
---
Weekly
Monthly
Yearly
47
67
4
67
60
50
40
30
10
0
Weekly
Monthly
Vearly
Question 2Of the 20 students, 4323% said that they would buy 2 pieces at $1 L00 eec
piece.
2pieces
Jk(CS
eces
eces
[jp.iees
.--
52
50
40
33
....1
20
8
I
0 pieces
I piece
2peces
Question 3. 5 1% of the students agreed that they would buy the same amount of fried
chicken even though there was a small increase in price.
ithiin
bflOOto3.OO
ab
If
1 61
would buy
5 Buy less
61
fried chicken
Question 4. With a price increase of $200 to $100, the mrjority said that they would
buy 2 pieces of fried. chicken at $1100/piece and 1 piece at $1400/jiece.
At $1100 pernieee:At At400 per piece:
.
....
0
1
2
# of students
13
25
50
[3
#Of pieces
fIen
1
.
LQ_ 2il_J
1
2
3
4
5
_______J L____
43
36
10
4
f
2
50
50
40
30
hi At $1100/piece
At $14M0/pece
20
10
.
0
0 pieces
1 pie.ce
2 pieces
Question
whorefer:
Japs
KFc
72
:41laps
21 KFc
10
:0
I 1111
1rt-,
Ut
.
9
0
0
a...
IxI
aO.
It-I
iizzz:z:zz.:zz::::
I
117!EL1!. I1
.4
Fl
I!
.1
Question 7Of all the fActors considered in the previous question, Taste was as the most
important factor affecting choice.
each_astheostimpfttactofgffeetinclo1ce
:t
Taste
Advertising
Location
10
Number of outlets
Special offers/discounts
Complements
21
Question 8. The majority of students surveyed, 80%, said that even though price
increases, they would rem in loyal to their choice of source for fried, chicken,
.
source
Loyalty to source
Question 9J)2% of students said that their purchase of fried chicken also encourages
them to buy complementary goods.
Option
# of students
Encouraged to buy
IO
lcm.cntary
goods
hPEP
Not encouraged to bu..t
10
ccmpjgmentary oods
a # encouraged to buy
complements
4 not encouraged to but
corn p1 emen ts
Question 10. 63% or 76 students said that they prefer to buy complementary goods
from KFC.
aps
!KFC
76
laps
KFC
a.
I-
.t
at
ii
(M
I-
ptJ
J LiII
4*
caaa
C)
Is
I
I1
I II
bZWCflGOWOOt%)
pg
C)
I:
Question 12. Most students (67 students or 59%) said that they wont buy more fried
chicken if in. ore complements were available.
tes
T#
of stud nts
j3
zzzzzzzzzzzi
Effect of Complementary goods
on fried
chicken
A U of students buying
more
students not
buying mare
Question 13. Of the varied response in this question, most students suegested that
less/fresh oil he used to fr chicken.
a____
eiini
tlLhht
C can the ch cken better
Season the chicken better
Semove excess fat from chicken
(ik chicken beter
18
P
20
SUPPLY INFORMATION
Response of interview conducted in St. Helena at KFC and Japs outlet
2.
Japs
X
::-_
Quality of Chicken
Cost of Production
Puce of Substitutes
Puce of Complements
Use of technology
V
V
V
V
N
N
S
IN
c
0
4.
..
a,
a
\\
\\
a,
03. iz
a c(Q-cQd
L-
cN
S Pce
de,,,dpd a
.Qj
/ .r/3
P E ij
ZzzZEZIE
pieces)
Quantity
P E D
nOt p 1
i6
021
a ide 1
32
S Przce
22
Quantity
-L21
19
S.
1
a*w
01
d,anaa.aet
9e44. &tJ
Ivin it
ED
Quantity demanded
A Price
11
8
33
2
-1.33
Price
Quantity
.oi. ChLCI&tfl
4
ei
lan .1
E I)
A Quantity demanded
A Price
10
11
33
3
Price
Quantity
+1.11
Many factors affect the demand for a specific brand of fried chicken such as Price, Taste
and Complements. Of the range of factors affecting demand, 111 students said Taste
affected their choice and of the 111, 67 students ranked Taste as the most important
factor. This is so because since fried chicken is a food product, people would generally rank
taste appeal as the deciding factor, with price and complements following suit.
Thus, 60% of the students preferred KFC while 40% preferred Japs. The fact that more
students preferred KFC shows that KFC is employing some method of attracting customers
that Japs is lacking. These methods include Advertising, Special Promotions and Special
Combos. Japs only uses the latter. KFC implements a marketing strate where they target
the entire family since the fast food service offers a substitute for cooking while the demand
for KFC can be linked to the desire to purchase toys for children. Effective use of these
methods can increase the demand for fried chicken, lower production cost, result in a
rightward shift of the supply curve, decrease cost price and lead to an extension of demand,
all of which increases a firms profits. KFC has also been in business for much longer than
Japs and would have a better grasp on how to operate under the competition oresent in the
industry and how to effectively market their product.
The concept of Joint demand holds for fried chicken and it complements but in a biased
manner. This is because even though 92% of the surveyed student population said that
their purchase of fried chicken encourages them to buy complementary goods, 59% of the
students stated that buying more complements does not encourage them to buy more fried
chicken. 63% of the students preferred complements from KFC, with Chips being the
students favourite. This was made based on the factors affecting demand, with Taste
possibly have the greatest influence.
Many factors would affect the ability of KFC and Japs to achieve production and alloc ative
efficiency in production. These factors, which are essentially the factors affecting supply,
include the Quali of chicken, ost of Production. , Price of Substitutes, Price of
Complements nd the Use of Technology Both KFC and Japs implement all of these
However, the extent of implementation of each factor would account for the supply
difference between KFC and Japs and thus, the cost price of fried chicken. As firms
expand, increasing, production, they could benefit from economies of scales and produce at
the Minimum Efficient Scale on the Averae Cost Curve. In this manner, there could he a
rightward shift of the supply curve and consumers could benefit from low prices.
With health and disease awareness on the rise, we see that the most prevalent suggestion
to improve fried chicken is to use less oil, In the Caribbean where we have a special flavour
to our pots, suggestions were made to cook and season the fried chicken better.
+ Observing the demand and supply trends for KFC and Japs, KFC would
generate more revenue from sales but Japs would have a lower Cost of
Production than KFC.
KFC is in a better financial position than Japs since they have better
marketing strategies than Japs and they also have a larger consumer
market.
+ Both factors affecting the demand and supply of fried chicken in turn
impact the profitability of KFC and Japs.
22
Recommendations
Both KFC and Japs can endeavour into improving in the following areas if
they havent already done so
order to boost sales and have a better
competitive stance:
+ Increasing their potential consumer market by having more outlets
nationwide
+ Increase advertising
+ Use more Special Gifts, combos and promotions to attract more
customers
+ Clean and season the chicken better
+ Use less oil to fry chicken
+ Cook the chicken better
+ Use suggestion boxes to get feedback from customers
23
Conclusion
In this investigation between KEG and Japs, I have come to realize the
majo
role that economics plays in the operation of a business. It was deduce
d th
KFC is in a much better financial position than Japs since they have
a bigg
consumer market. Consumers made many suggestions to help improv
e the
quality of fried chicken and implementations of these recommendations
cou
hold the general improvement of the industry in the future.
Bibliography
Books:
*
-.
->
-4
Whitehead, Geoffrey. Economics: made simple. 13. ed. London: Heinemann, 1986.
Websites:
Retrieved
-4 hL.ix! /www.trr;o..i
.;
..de!n.
1
vc:.
i.:zn:nd
Retrieved on
25
Appendices
flrnleuesflonnaire
M name is Renee Voisin. As part of my investigation for my school-based
assessment., this questionnaire is prepared for any volunteers to fill out. Your
responses will be deeply ajpreeated.
10-13
Ac:
Form class:
14-16
Li Monthly
Yearly
a 2. If one piece of fried chicken cost $11.00. how mneh pieces would yon purchase?
rieces of chicken
oftbon
each p
rr:. oh chicken
Plea so
1 3 1))
oice:es 01
11
Li
Japs
Li KFC
Taste/Fashion
Li Advertising
H Location
Number of Outlets
Special Offers/Discounts
7. In order of importance, I being the most important, rank the options you chose in
question 6.
* Price
Li Taste/Fashion
El
Advertisii. g
Location
Number of Outlets
Li Co.mnlcn. cuts
8. if once ncncascs, would von remain Iovai to your choice of source Ion fried
chicken?
L:Ycs
0
UN
2?
9. Does your purchase of fried chicken encoursge ycu to buy complementary goods
(chips, beverages, salads) also?
LI
Beverages
12. Would you buy more fried chicken if more complements were available?
13. V/hat do you think can be done to improve the quality of fried chicken?
The Principal,
June 2011.
Dear Miss,
the bearer of this letter, is
member of the Form S student body in St. Augustine Girls High School,
She is in the process of collecting research for her Economics SBA entitled,
A comparative study of the demand for KFC and Japs in St. Augustine
Gir.Is High School between the period September 5th 201.1 to September
26th 201 1. She requests permission to surve persons in the form of a
questionnaire as part of the research process.
Mrs P. Balgaroo
Economics Teacher
Date of Signature
29