Political-The crime index in Pakistan is 60.36% and the safety index is 39.64%, crime has increased 67.20% in the last three years (Anon 2014). In the last 13 years Pakistan has experienced political instability and war including assassinations, strikes, bombings, violence and armed clashes (Anon 2014). The minimum wage of labor in Pakistan is PKR11000 for the budget of 2014-2015 (Anon 2014) the corporate tax in Pakistan is 34% (trading economics.com). Political factors have direct impact on how the business operates; In Pakistan the political stability of the country is very disturbed therefore people will be reluctant of leaving their houses for enjoyment and entertainment which will decrease demand for products like ice cream however there is cheap labor in Pakistan which will increase the profitability of the business.
Economical: Pakistan is the 27th largest economy of the world in terms of GDP (PPP) and is expected to see growth for the next 5 years, the unemployment rate of Pakistan is expected to remain constant at 6.195% till 2016 (economywatch.com) The interest rate of Pakistan is 9.5% as reported on 12 December 2014 (tradingeconomics.com) and is predicted to increase in the coming years (tradingeconomics.com). The inflation rate in Pakistan was 13.9% in 2010 and has decreased to 7.7% in 2013 (data wordbank.org).The foreign exchange rate of Pakistan to UK is 1 British pound sterling equals to PKR160.8 (google.com) and PKR is predicted to depreciate by 13% in the future(tribune.com). Pakistan is the fifth largest producer of milk with different dairy products reached at US$26 billion in urban and rural areas (newstribe.com).The economic conditions of the country shows that inflation is declining which will increase the purchasing power of consumers so there will be more customers, there is unemployment in the country so there will be labor supply and the country is showing economic growth which will improve the lifestyles of the people and ultimately increase demand for luxury products such as ice cream apart from that interest rates are expected to increase which will be a problem for JOE’S if it decides to borrow money from the bank for its business, however investment in Pakistan will be beneficial because of the currency rates moreover Pakistan being a major producer of milk which is one of the main products used in ice cream the business will have ample of cheap supply (Satija 2009, pp.366-374)
Social: Ice cream is the most popular desert in Pakistan (Adnan Khalid rasool 2012). Pakistan is listed in the top 6 countries in terms of population and 54.8% of its 19million (approx) population are below the age of 24 (indexmundi.com).There are many cultural festivals in Pakistan in which eating of deserts are commonly used (sharnsoffglobalviews.com). Increasing Globalization has increased the influence of western culture in Pakistan and there has been an increase in western food chains in Pakistan (hub pages.com). In Pakistan Ice Cream is perceived as a western product which is good in dealing with heat therefore it is becoming popular in children and amongst adults too, over the forecast period Ice Cream is predicted to record a 4% constant value CAGR because of the hot weather and growing popularity of ice cream (euromonitor.com).The age distribution of Pakistan is shown in the graph.
According to Sarah Barrette (2004), the preference of consumers depend on their age and gender, children eat more dairy products than adults(scribd.com).The social factors of Pakistan show that there are a lot of consumers of ice cream and the sources of outdoor eating and enjoying luxuries are becoming popular in Pakistan, segments like teenagers and the youth take it as a fashion, due to so many Islamic festivals happening in Pakistan there will be more demand for ice cream. There is also a good market growth in Pakistan for ice cream products and it has become a trend to buy expensive ice