Final project

Submitted to:

M. SALAHUDDIN AYYUBI

Course:

Micro economics

Section:

Submitted by: (contribution 45%)

Muhammad usman

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Muhammad nouman (contribution 30%) Zohaib khalil (contribution 25%) (contribution 0%)

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Naveed akhtar l 1s10mbam2057

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Market: Transportation Product: Traffic routes .followings are our 6 products Lahore Lahore Lahore Lahore Lahore Lahore to to to to to to Multan Rawalpindi Peshawar Faisalabad Sialkot okra

1. Lahore to Multan Followings are the prices in wholesale market while traveling through road for Multan from Lahore Daewoo: Faisal movers: Other luxury buses: Local buses: Luxury Rs 780, Rs .550 Rs 500 VIP Rs 900

Rs. 290 to 360

Followings are the prices in wholesale market while traveling through railway for Multan from Lahore Shah shams express Musa pak Ac Rs.620 Economy Rs.320 Business Class N/A

Ac Rs. 620

Economy Rs.320

Business Class N/A

Followings are the prices in wholesale market while traveling by air for Multan from Lahore Economy PKR 4,550 PKR Economy plus 4,950 PKR Business class 5850

Followings are the prices in Retail market while traveling for Multan from Lahore Avis Toyota Corolla GLi. Rs.14000 Suzuki Cultus VRXi . Rs.10000

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Local Toyota Corolla GLi. Rs.9000 Johar town Defense Rs.9000 Rs.11000

Suzuki Cultus VRXi . Rs.7000 Rs.7000 Rs.9000

2. Lahore to Rawalpindi Followings are the prices in wholesale market while traveling through road for Rawalpindi from Lahore Daewoo: Faisal movers: Other luxury buses: Local buses: Luxury Rs 1010 Rs .720 Rs 650 VIP Rs 1170

Rs. 450

Followings are the prices in wholesale market while traveling through railway for Rawalpindi from Lahore Khyber mail Tez Gam Awam Express Quetta express Jaffar Express Ac Rs.540 Ac Rs. 540 Economy Rs.260 Economy Rs.260 Business Class Rs.670 Business Class N/A Business Class N/A Business Class N/A

Ac Rs. 540 Ac N/A Ac Rs. 540

Economy Rs.260

Economy Rs.260 Economy Rs.260

Business Class N/A

Followings are the prices in wholesale market while traveling by air for Islamabad from Lahore
4,050 PKR 4,050 PKR

Economy 4,050 PKR Business 6650 PKR

Economy Plus 5,450 PKR

Followings are the prices in Retail market while traveling for Rawalpindi from Lahore Avis Toyota Corolla GLi. Rs.18000 Suzuki Cultus VRXi . Rs.14000 Suzuki Cultus VRXi . Rs.12000 Rs.12000

Local Toyota Corolla GLi. Rs.14000 Johar town 3| Page Rs.14000

Defense

Rs.15000

Rs.11000

3. Lahore to Peshwar Followings are the prices in wholesale market while traveling through road for Peshawar from Lahore Daewoo: Faisal movers: Other luxury buses: Local buses: Luxury Rs 1190 Rs .1000 Rs750 VIP Rs 1300

Rs. 300 to 400

Followings are the prices in wholesale market while traveling through railway for Peshawar from Lahore Not available Followings are the prices in wholesale market while traveling by air for Peshawar from Lahore Economy PKR 5500 PKR Economy plus 6000 PKR Business class 6850

Followings are the prices in Retail market while traveling for Peshawar from Lahore Avis Toyota Corolla GLi. Rs.20000 Suzuki Cultus VRXi . Rs.15000 Suzuki Cultus VRXi . Rs.8000

Local Toyota Corolla GLi. Rs.10000 Johar town Defense Rs.15000 Rs.16000

Rs.10000 Rs.11000

4. Lahore to Okra Followings are the prices in wholesale market while traveling through road for Okra from Lahore Daewoo: Faisal movers: 4| Page Luxury Rs 420 Rs .300 VIP Rs 500

Other luxury buses: Local buses:

Rs 250

Rs. 100

Followings are the prices in wholesale market while traveling through railway for Okra from Lahore Tez Gam Fareed Express N/A Ac Rs. 75 Economy Rs.150 Business Class N/A Business Class

Ac Rs. 150

Economy Rs.70

Followings are the prices in wholesale market while traveling by air for Okra from Lahore Not Available Followings are the prices in Retail market while traveling for okara from Lahore Avis Toyota Corolla GLi. Rs.7000 Suzuki Cultus VRXi . Rs.6000 Suzuki Cultus VRXi . Rs.4500 Rs.4500 Rs.5000

Local Toyota Corolla GLi. Rs.5500 Johar town Defense Rs.5500 Rs.6000

5. Lahore to Sialkot Followings are the prices in wholesale market while traveling through road for Sialkot from Lahore Daewoo: Faisal movers: Other luxury buses: Local buses: Luxury Rs 440, Rs .320 Rs 300 VIP Rs 510

Rs. 180

Followings are the prices in wholesale market while traveling through railway for Sialkot from Lahore Passenger Lasani 5| Page Ac N/A Ac N/A Economy Rs.150 Business Class N/A Business Class N/A

Economy Rs.150

Alama Iqbal

N/A

Rs.150

Followings are the prices in wholesale market while traveling by air for Sialkot from Lahore

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N/A

Followings are the prices in Retail market while traveling for Sialkot from Lahore Avis Toyota Corolla GLi. Rs.8000 Suzuki Cultus VRXi . Rs.7000 Suzuki Cultus VRXi . Rs.5500

Local Toyota Corolla GLi. Rs.6500 Johar town Defense Rs.6500 Rs.7000

Rs.5500 Rs.5500

6. Lahore to Faisalabad Followings are the prices in wholesale market while traveling through road for Faisalabad from Lahore Daewoo: Faisal movers: Other luxury buses: Local buses: Luxury Rs 440 Rs .380 Rs 330 VIP Rs 550

Rs. 180 250

Followings are the prices in wholesale market while traveling through railway for Faisalabad from Lahore

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Porlour car Tez Gam Karachi Express Awam Express Quetta express

Ac Rs.480 Ac Rs. 410

Economy Rs.140 Economy Rs.140

Business Class N/A Business Class N/A Business Class N/A Business Class N/A Business Class N/A

Ac Rs. 410 Ac Rs. 410 Ac N/A

Economy Rs.140 Economy Rs.140

Economy Rs.140

Followings are the prices in wholesale market while traveling by air for FSD from Lahore N/A

Followings are the prices in Retail market while traveling for FSD from Lahore Avis Toyota Corolla GLi. Rs.8000 Suzuki Cultus VRXi . Rs.6000 Suzuki Cultus VRXi . Rs.5000 Rs.5000 Rs 5000

Local Toyota Corolla GLi. Rs.6000 Johar town Defense Rs.6000 Rs.6500

Brands in wholesale market: When you wish to travel through road with family with safety Daewoo bus service comes into your mind since brand always shows shortcut to decision making also its safer, road accidents in Daewoo are very fewer as the have average speed above which driver is not allowed to drive also mid way stop of Daewoo are good with better facilities and most importantly they are always on time with good and helping staaf.target market of Daewoo is above middle class due to their fares.Faisal movers is other one but its level is nowhere near to Daewoo so its target market is middle class and is in competition with other local companies There are no as such brands available in railways as it is state owned department and only Pakistan railways available there is huge corruption and poor management due to this services are very poor TEZ GAM is a train which you can say that it is kind of a brand as it is nonstop and good internal environment otherwise traveling through railway is not a better choice

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By air PIA operates at a local destination and its services are not that bad and are up to satisfactory level most of the times since it is only choice to reach your destination quickly Brands in retail market: Traveling solely within Pakistan you have one option to rent a car so brand available in rent a car is AVIS which is located in all the major cities of Pakistan with a toll free number and head office in Islamabad their help line is ready to help you always with a efficient staff others rent a cars are available but they are not reliable as avis is so it charge heavier than other local companies. Product range in market at wholesale level: Product range in transportation market is in three different categories which appeal to different segments of market. Three options are available by road by railway track and by air in all three cases there are different ranges related to price luxury and time as by road you have Daewoo Feisal movers other local ac and non ac buses in by air you also have economy ,economy plus and business class categories same is case with railway you have the option of ac and economy class and decision to choose among such options depends upon your income level, level of comfort you want to achieve, time you want to save as well as your personality traits. Product range in market at retail level: Product range in retail market is limited up to renting the car and most of the times it appeals to above average income level segment of market as it is very expensive and people who choose this option wants to achieve the comfort level are they are in emergency and want to save time Price range of product in wholesale market: Price range in wholesale market for traveling from Lahore to Multan Rs. 290 to 5850 Lahore to Rawalpindi Rs. 260 to 6650 Lahore to Okra Rs. 4000 to 50 Lahore to Peshawar Rs. 300 to 20000 Lahore to Sialkot Rs. 160 to 4000 Lahore to Faisalabad Rs.140 to 3800

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and which tells you story of huge difference as it varies from local non ac bus to business class portion of PIA actually this difference is based upon the market segments as companies are made to target specific segments because no company in world can keep all the segments happy so poor people have lesser amount of money and have the ability to absorb unhealthy temperature and noise so they have to travel through local buses and economy portion of train middle class is compel to travel through Feisal movers and ac portion of train where some of above middle class travel through Daewoo and on PIA also economically elite class travel through PIA. one thing which we noted is local buses have more fare when traveling to Rawalpindi as compare because there are fewer no of midway stop as compare to Multan so they cannot refill passengers. Price range of product in Retail market: Price range in Retail market for traveling from Lahore to Multan Rs. 7000 to 14000 Lahore to Rawalpindi Rs. 12000 to 18000 Here market is not very large and target market is most of time is elite or in emergency or for wedding of middle class peoples so prices are high as cost is also high as well as luxury. There is difference in price as there is Brand Avis which is cashing or milking his brand and charging people more so people go there to have more safety due to trained drivers and timing and staff they have Wholesale seller opinions and views: They looks very satisfied specially Daewoo, Feisal movers, but PIA, railway and local road buses firm have mix response. Satisfied one says that they have good business there is no as such significance growth because of circumstances Pakistan is in especially but they still manage to earn good profit and they have good profits on weekends even they have to refuse to customer due to non availability of seat especially on Enid problem behind is that they cannot increase their capacity as there is no same demand on normal days.unsatisied one says that on special or on holidays they have good response otherwise they have normal profits. Local buses firms says that it all depends upon day especially on holidays the earn good profits.faisal movers and Daewoo has more profits towards Multan as compare to other products. Retailer opinions and views: As there are limited retailers but still they are unhappy with their profits because of economic situation of Pakistan the says most of their business days are working 9| Page

days Except Eid and wedding season Avis firm said that they have good business on summer too because plan to hire their cars for few days otherwise their business is shrinking instead of growing because more people are having their own cars. Weekly demand in physical units: Followings are weekly data of Passengers traveling From Lahore to Multan From Lahore to Rawalpindi From Lahore to okara 90000 to 95000 65000 to 70000 20000

From Lahore to Peshwar 25000 to 30000 From Lahore to Sialkot From Lahore to Faisalabad 50000 to 60000 100000 to 120000

Why our selection is important: Time, it is a valuable commodity both in business and in our personal life . With a efficient transportation system it allows people to get to the work they need to do without giving up to much of their own time. Produce can arrive to the destination before it spoils. Provides economic opportunities Enhances personal opportunities Railways and PIA is monopoly Prices of local luxury buses affect faisal mover and vice versa (monopolistic competition Daewoo sets its own price ( oligopoly) Local buses (pure competition) Imperfect substitutes

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References: Meeting with office manager Daewoo Mr.ali murtaza on 30 may 2011 at 05.30 Pm Meeting with Assistant manager operations Faisal movers Mr.akram ilahi on 30 may 2011 at 09.15 Pm Meeting with president of Lari ada Mr.safwan on 31 may 2011 at 07.30 Pm Meeting with Assistant manager operations Faisal movers Mr.akram ilahi on 30 may 2011 at 09.15 Pm Meeting with assistant station master Mr.ali zaib achakzai on 01 june 2011 at 06.00 Pm Meeting with Head of ticketing Department PIA Mr.manan bashir on 01 june 2011 at 09.00 Pm Meeting with manager operations Avis Mr.Rizwan on 30 may 2011 at 09.15 Pm Road interviews from different Local car rent firms on road. 02 june between 6 to 8 pm.

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