Demand and Supply Analysis of Soccer Balls in United States
Essay by 78pranay • July 18, 2016 • Research Paper • 617 Words (3 Pages) • 1,575 Views
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DEMAND AND SUPPLY ANALYSIS OF SOCCER BALLS IN UNITED STATES
The current study is concerned with analyzing the demand and supply of one of the most popular branded product in the US. The study seeks to throw light on the growth pattern of the selected product. The study is mainly based on secondary data. The data is collected mainly from the internet and company annual report. The product chosen for the current study is “Soccer” ball and the brand chosen is Adidas.
Demand refers to the willingness of customers to buy a particular product whereas supply is the capacity of a firm to produce & offer the products to the customers. Soccer is one of the most popular products in the US. Demand and supply trend of a product helps in developing suitable marketing strategies related to a product.
At present, the soccer balls offered by Adidas are of mainly three sizes which are 3, 4 and 5. The price of the balls ranges from $40-120.
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The sales of soccer balls in US is presented below in million dollars:
Year | Sales (million USD) |
2007 | 77 |
2008 | 72 |
2009 | 73 |
2010 | 77 |
2011 | 80 |
2012 | 84.2 |
2013 | 87.6 |
2014 | 92.6 |
2015 | 94 |
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The above figure indicates that the demand for soccer is increasing steadily in the US. This can be attributed to the rise in child population in the US. On the other hand, increasing awareness among the people to fight obesity & diabetes is yet another key factor contributing to the growing demand for soccer balls in the US.
Supply of soccer balls in the US is also on the rise.The growing demand for soccer balls is currently being met successfully by the existing firms in the market. Here, it is important to note that the number of companies producing soccer balls is rising as well in the US. As mentioned by Fitzgerald et al. (2013), the strong growth potential in the soccer market is attracting new companies to the sector. There is also tough competition in the market among the existing players. Price has become the main basis for competition. However, the demand for soccer balls in the US is expected to rise more heavily in the coming years. This might be a concern as the current number of companies might not be able to supply the adequate number of soccer balls to meet customer demand.
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