«confirmation» “ ”

Market and marketing concept

4.1. Supply and demand

The number of companies producing emulsion paintsin the market of Uzbekistan is small, and the market offer is mainly made by foreign companies along with local manufacturers.
The volume of sales in the market almost corresponds to the market supply.
The constant increase in the standard of living of the population, the increase in the number of the population leads to a constant increase in the demand for our products. The graph below shows the state of supply and demand being in balance:
Product size; Demand(D); Offer(O); Price(P)
Conditional signs: Q- marketed product; P- cost of goods sold; Tb- potential demand for the product; Tf point explaining the high price and low quantity of products in today's market of meat products - potential offer of the product; O- Optimum state of supply and demand (optimal point of intersection of price and product quantity); B- point explaining the high price and low quantity of products in today's market of meat products; dQ- Quantity of missing product; dP- inflated price;
Potential demand refers to the requirement provided by the purchasing power of the population for emulsion paints. These products are in high requirement and demand, and there is a large annual potential demand in the republic.
The following factors influence potential demand:

• 
  A shortage of supply in the market (product deficit) - that is, an excessive decrease in supply leads to a sharp increase in demand, the population's attention to the product that has become a deficit and the desire to buy it increases.
  
• 
  Standard of living of the population - i.e. the improvement of the standard of living of the population increases the purchase of consumer goods and potential demand, and on the contrary, the deterioration of the standard of living and the social situation causes a decrease in the potential demand.
  
• 
  An increase in the supply of substitute products and a decrease in price the effect of this factor is not so significant due to the lack of substitute goods for the same emulsion paints.
  
• 
  An increase in the import of the same or similar products - the effect is not significant, and the policy in Uzbekistan is aimed at reducing the number and quantity of imported products.
  
• 
  Social policy – the improvement of social protection and stability of the social environment will affect the potential demand in the right proportion.
  
• 
  Inflation rate – a sharp increase or decrease in the rate of inflation or deflation can affect potential demand out of proportion.
  
• 
  The spread of various diseases - a decrease in harvest, which in turn leads to a decrease in supply, potential demand and a sharp increase in product prices.
  

Similar to the above factors, many more political situation, economic stress, technological changes and globalization, integration process, natural disasters can also have their influence on the change of potential demand.