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Econ Poa Pob Sba Benjamin (2)

The document presents an investigation into the impact of packaging changes on demand, sales, and customer responses at Royal Roti Palace in Trinidad and Tobago. The study reveals that the introduction of new packaging led to an increase in daily demand from 140 to 200 units and a significant rise in net profit from $30,000 in 2023 to $130,000 in 2024. The findings highlight the importance of packaging in influencing consumer purchasing decisions and overall business profitability.

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Ahmad Ali
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0% found this document useful (0 votes)
10 views17 pages

Econ Poa Pob Sba Benjamin (2)

The document presents an investigation into the impact of packaging changes on demand, sales, and customer responses at Royal Roti Palace in Trinidad and Tobago. The study reveals that the introduction of new packaging led to an increase in daily demand from 140 to 200 units and a significant rise in net profit from $30,000 in 2023 to $130,000 in 2024. The findings highlight the importance of packaging in influencing consumer purchasing decisions and overall business profitability.

Uploaded by

Ahmad Ali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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NAME OF SCHOOL: ASJA BOYS’ COLLEGE,

CHARLIEVILLE.

TITLE: AN INVESTIGATION INTO THE CHANGE


IN DEMAND AT ROYAL ROTI PLACE DUE TO A
CHANGE IN PACKAGING.

TERRITORY: TRINIDAD AND TOBAGO

YEAR OF EXAMS: 2025

Members Candidate Number


Ahmad Ali 1605220180
Benjamin Joseph 1605220369
Alex Gopaul 1605220296
Rayshad Banfield 1605220245
Afraz Francis 1605220270

Aiden Bahadoorsingh 1605220229

Aidan Adams 1605220172

1
2
Contents
Topic/Issue/Problem.........................................................................................4
Objectives for the SBA.....................................................................................5
Background and Overview...............................................................................6
Methodology....................................................................................................7
Presentation and Analysis of Data...................................................................8

Topic/Issue/Problem

To investigate how the introduction/change in packaging affected demand at


the business Royal Roti Palace. Also, investigate the impact of packaging

3
changes on sales and profitability as well as assess the customer responses
to the new packaging and its impact on purchasing decisions.

Objectives for the SBA


Economics Objective – To investigate the impact that packaging changes
have on the demand at Royal Roti Palace.

POA Objective – To investigate the impact that packaging changes have on


the sales and profitability at the business Royal Roti Palace.

4
POB Objective – To assess the customer responses to the new packaging and
its impact on their purchasing decisions.

Background and Overview


History of Royal Roti Palace and the development of the problem.
The Royal Roti Palace is a popular venue for food founded by Jacob Adams in
the year 2019. Jacob quickly saw success in his business venture as his food
was one of the best in Chaguanas. He would usually sell all the food
prepared for that given day, which means sales were usually good. However,
in the past couple of months, there have been issues with packaging which

5
has led to a steady decline in sales. This decline in sales negatively affected
the business and as of recently, there have been changes made to solve this
issue.

Initially, packaging was not a major focus of The Royal Roti Palace and as the
business grew in size, it became noticeable, and it couldn’t be ignored for
much longer.

The Impact of this study on us as Students


This topic is important to us as students because we are trying to understand
business dynamics before we go out into the world and start a business of
our own. We can learn how business manage and respond to operational
challenges and the role of sustainability and innovation in modern business
practices which can all be of use later in our lives.

The Impact of this topic on Society


The impact of studying changes of The Royal Roti Palace extends beyond it
as a food venue itself. It influences consumer choice, promotes sustainability
and economic growth. This can also be taken as a learning opportunity to
improve its business in the future. A high-quality business can help shape a
positive society.

Methodology
The goal of Royal Roti Palace is to provide high-quality, fresh and flavorful
rotis along with an array of traditional Indian rotis to a diverse customer
base. The methodology outlines how we achieved our objectives in product

6
development, service quality and operation efficiency. To collect the data,
both Primary and Secondary data sources were utilized.

The Primary source of investigation used is listed below:

1. Survey / Questionnaire – Containing 15 closed-ended questions, the


survey was sent to 15 customers who had access to the internet in a
certain week. It was sent via WhatsApp and took approximately 5 days
to be collected and administered. This method allows researchers to
collect the necessary information from the customers within a short
time frame.

2. Trading and Profit and Loss Account – This helps us to determine


the results in profit before the packaging changed, and the results in
profit after the packing has changed. This would also show the period
which the business was more successful at.

The Secondary sources used in this investigation is listed below:

1. Economics Textbooks – This was used for formulae relevant to the


economics objective of investigating the demand change.

Limitations Faced.

While conducting this study, there were problems and errors which occurred
during this period. One of them being the time taken to distribute the
questionnaire to the people that had access to internet connectivity. Another
problem was that we weren’t able to conduct a yprivate interview with the
customers to gain additional feedback and their thoughts on our decision to
change the packaging.

Presentation and Analysis of Data.

Economics Objective

7
Demand and Supply Curve at Royal Roti Palace. (Old Packaging)

Price ($)

$35

Quantity Demanded

140 Units

Demand and Supply Curve at Royal Roti Palace. (New Packaging)

Price ($)

D1 D
2

8
E1
E2
$35

140 200 Quantity


Units Units Demanded

From these demand curves, we derive that there was an increased demand
when the new packaging was introduced. 140 units were demanded daily at
$35 when the old packaging was in effect, however, with the new packaging,
200 units are being sold daily at the same price of $35. The demand curve
shifted to the right, showing an increase in demand at Royal Roti Palace.
There was an increase of 60 units daily with the new packaging in effect.

POA Objective

Royal Roti Palace.

Trading and Profit and Loss Account for the year ended 31st December 2023

$ $ $
Sales $100,000

9
Less: Sales Returns ($0.00)
Net Sales $100,000
Opening Stock $10,000
Add: Purchases $60,000
Add: Carriage Inwards $2000
Gross Purchases $62,000
Less: Purchase Returns ($0.00)
Net Purchases $62,000
Cost of Goods available for $72,000
sale
Less: Closing Stock ($15,000)
Cost of goods sold ($57,000)
Gross Profit $43,000
Less: Expenses
Carriage Outwards $1,000
Wages $6,000
Insurance $3,000
Packaging $3,000
Total Expenses ($13,000)
Net Profit $30,000

Income Statement Overview - 2023


120,000
100000
100,000

80,000
62,000
60,000
43000
40,000 30000

13000
20,000

0
Net Sales Net Purchases Gross Profit Total Expenses Net Profit

Net Sales Net Purchases Gross Profit Total Expenses Net Profit

According to the Bar Graph above, we can see that Royal Roti Palace made
$100,000 in net sales, followed by $62,000 worth of purchases. The gross

10
profit amounted to $43,000 before expenses. After handling the expenses,
the net profit of Royal Roti Palace was $30,000.

Royal Roti Palace.

Trading and Profit and Loss Account for the year ended 31st December 2024

$ $ $
Sales $500,000
Less: Return Inwards ($0.00)
Net Sales $500,000
Opening Stock $50,000
Add: Purchases $300,000
Add: Carriage Inwards $5,000
Gross Purchases $305,000
Less: Return Outwards ($0.00)
Net Purchases $305,000
Cost of Goods available for $355,000
sale
Less: Closing Stock ($25,000)
Cost of goods sold ($330,000)
Gross Profit $170,000
Less: Expenses
Carriage Outwards $0.00
Wages $30,000
Insurance $5,000
Packaging $5,000

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Total Expenses ($40,000)
Net Profit $130,000

Income Statement Overview - 2024


600,000

500000
500,000

400,000
305,000
300,000

200,000 170000
130000

100,000
40000

0
Net Sales Net Purchases Gross Profit Total Expenses Net Profit

Net Sales Net Purchases Gross Profit Total Expenses Net Profit

As we can see from the Bar Graph above, Royal Roti Palace’s net sales
significantly increased to $500,000, showing an increase of $400,000 as
compared to last year. The net purchases are worth $305,000, another
increase from last year as well as a higher gross profit of $170,000. After
dealing with $40,000 worth of expenses, Royal Roti Palace’s net profit came
out to be $130,000, which is $100,000 more than 2023.

After comparing the Income Statements shown above for the years 2023 and
2024, we can see that the new packaging strategy led to an increase in
profits from $30,000 to $130,000. This shows that Royal Roti Palace made
$100,000 more in profits in the year 2024 with newer packaging than what
was sold in the year 2023. ($130,000 - $30,000)

Sales – 2023 Sales - 2024

Mean Sales - $100,000 Mean Sales -


$500,000

12
Median Sales - $100,000 Median Sales -
$500,000

Mode Sales - $100,000 Mode Sales -


$500,000

POB Objective

Question 1, showing form levels of students.

Number of Students
Upper 6 0

Lower 6 0

Form 5 13
Form Levels

Form 4 1

Form 3 1

Form 2 0

Form 1 0

0 2 4 6 8 10 12 14

Number of Students

Number of Students

The table and bar graph above shows that majority of our responses came
from the Form 5 Students with 13 responses, followed by Form 4 and 3 with
one response each. All the other forms had zero responses.

13
Question 4, showing the impact of purchasing decisions with regards to new
packaging.

Response Type Number of Respondents


Yes 14
No 1

Number of Customers

No 1
Response Type

Yes 14

0 2 4 6 8 10 12 14 16

Number of Customers

Number of Customers

14
Data from above shows that even if Royal Roti Palace changes their
packaging, it would affect 14 of our customers’ purchasing decisions. Only
one person would change their mind about buying when the change in
packaging occurs.

Question 5, showing if persons would pay more with new packaging


introduced.

Response Type Number of Respondents


Yes 10
No 5

Responses to paying more with new packaging

10

Yes No

15
We can see that if Royal Roti Palace were to increase their prices after
changing their packaging, 10 customers said that they wouldn’t mind those
decisions, however, 5 customers stated “no” in paying more for the product
with new packaging.

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