cost of product & Budgeting advertisement and PR
FINANCIAL REVIEWS
The Shareholder Value is the highest over past 8 years at value of $233.61. According the financial strategy has been used for this year especially focusing on reduction of operating cost and lower overhead cost which it leads EPSs has increased significantly from previous year at $19.448 as same as Net Income has decreased up to 5% compared to last year, also the Sales Revenues has dropped down 4% as advertisement and PR has been reduced the expenditure scale.
We have paid dividend to our shareholders at amount of $17.70 and reflecting our share prices is now cost at $179.29 per share.
We continued focusing on delivering overall strategic plan and targets. We also expects to continue growing revenues and operational earning for future year.
1st Rollover – 05 August 2018, 23:59pm (Sun)
Meeting Title: Year 1 –2019 marketing and production strategy
Meeting called by
SUMMIT B DEVKOTA
Meeting Date:
2/08/2018
Meeting time 09:00
Meeting Location
Sydney CBD, at KOI
Attendees
Members name Abdul, Nikhil, Md Nahian
Agenda Topics:Cost of product & Budgeting advertisement and PR
Discussions
Price of product & Budgeting advertisement and PR play vital role in the business. So, it is important to spent money on segments where our company can make a profit. Price segmentation enables us to offer the same basic product but add features that clients are willing to pay for.
Conclusions
In the very first year of the production, the price had reached average which had matched with our segmentation, where recommended price was in the mid-range. It would be a rational price that
keep overall gross margin, and if the market didn’t respond, the price would be considered to adjust to the need.
By analyzing the most effective marketing strategy in the market research in the menu and dictating segmentation of products, our decision in 2019:
Price: $716
Production: 25,500
Advertisings Expenditure $ 9,000,000
PR Expenditure $1,250,000
Action items
Person Responsible
Dead line
Set a price of product & marketing cost
SUMMIT B DEVKOTA
2/08/2018
Year 1 2019 Key reports
Shareholder Value (SHV)
In 2019 our shareholder value was $13.65. We were leading the competition at that time with highest SHV 13.65 and FIRM 4 had the lowest SHV of 12.02 that set our position on the 1ST place. Whereas the cumulative change in SHV was 22% for our company and the FIRM 4,FIRM 5 FIRM 6 has lowest change of 7.09% and the highest was again our company.
Sales and Profit
Our Company is in the business of manufacturing sports product with per price of $716. Retail sales for financial year 2019 were $20,191,200 and that gave us profit after tax of $1829,738. The total number of shares was 1,000,000 and earnings per share were $0.830.
Total product Advertisement and PR
We paid $39000, 000 for the advertisement expense in the year 2019 and total product PR $1250000. Product awareness was 38%.
2nd Rollover – 12 august 2018, 23:59pm (Sun)
Meeting Title: Year 2 –2020 Develop strategy and Brand
Meeting called by
Summit b devkota
Meeting Date:
09/08/2019
Meeting time 15:00
Meeting Location
Sydney CBD at koi
Attendees
Members name Abdul, Nikhil, Md Nahian
Agenda Topics: To Apply marketing and Branding method
Discussions
Along with previous year decision, we planned to modify profit margin and Branding expenditure.
Conclusions
Brand awareness effects on consumer decision making to repeat purchase from single company because of trust and quality. We decided to pay more in Brand advertising as part of advertising campaign.
we wonder whether we’d be better building an alternative distribution method. Our main concern for this year to maximize our profit by decreasing the margin. We gave retail margin to
Product shop max 25%,
Sports stores max 25% and
Discount store 25%.
Price: $790
Production: 30,000
Advertisings Expenditure $ 3,900,000
PR Expenditure $1,250,000
Branding Expenditure: 1,250,000
Action items
Person Responsible
Deadline
Branding the product
Summit B Devkota
12/08/2019
Year 2 2020 Key reports
Shareholder Value (SHV)
Our shareholder value increased as compare to the SHV of previous year 2019, it became $19.83. we were leading the market with highest SHV. first pedal moved second this year by increasing their SHV to $11.84 and beat the Competitor The lucky three which had the lowest SHV of $10.87.
Cumulative Change in SHV
We managed to increase the cumulative change of SHV to 45.3%. Competitor The lucky three had the lowest cumulative change of (9.9). Whereas, we got the highest cumulative changes.
Sales and Profits
Retail sales of 2020 is $23,175,440 and profit after tax is $2,964,769 which was good compare to the last year.
Unit Sale Price
In 2020 we had just changed the unit sale price which was $790 and still we were providing one the most reliable product and it is our competitive advantage that we were competing on price.
Demand Forecast Accuracy
We production was 30000 units that year because we had some opening stock. It showed our demand forecast accuracy of 98% which was a very good sign that we were almost accurate in our estimation. We were very proud to mention that we had one of the highest accuracy ratios in our multiplayer world.
Total Product ADVERTISMENT
Our Advertisements cost in year 2020 was huge where we had spent $3,900,000 on total product advertisement which was successful in the market to get wide range of awareness that led to a good amount of sales that year.
Total Product Public Relation
As the Result of our experience and calculations we had decided to invest in public relations and discovered that magazines were the good source to promote our product, and we spent $1,250,000 in magazines.
3rd Rollover – 19th august 2018, 23:59pm (Sun)
Meeting Title: Year 3 –2021 developing a new product
Meeting called by
SUMMIT B DEVKOTA
Meeting Date:
15/4/2020
Meeting time 2 PM
Meeting Location
KOI Market street
Attendees
Members name Abdul, Nikhil, Md Nahian
Agenda Topics: Controlling Capacity, efficiency, Quality & Debt
Discussions
We had decided to budget for Brand Advertising as our major campaign. On the other hand, our profit position is average, therefore, budget for branding need to be concerned. Next period, we need to launch a new product. We have enough capacity to produce mountain product. For that reason, we are not increasing our capacity rather we decided to invest money on efficiency and quality. As we reserved money for the future, we decided to pay off the debt which will decrease the interest expenses.
Conclusions
Price: $790
Production: 32,000
Advertisings Expenditure: $ 1,250,000
PR Expenditure: $3,900,000
Branding expenditure: 1,250,000
Capacity expenditure: 20,000
Efficiency expenditure: 1,800,000
Quality expenditure: 1,700,000
Action items
Person Responsible
Dead line
Budgeting of capacity of manufacturing
Summit B Devkota
18/04/2021
Year 3 2021 Key reports
Shareholder Value (SHV)
Our shareholder value increased to $23.32 in the year 2021. We were leading the market with the highest SHV and first pedal moved up that year by increasing their SHV to $14.60 and beat the firm5 which had the SHV of $9.23
Cumulative Change in SHV
We managed to increase the cumulative change and now secured the change of 17.6%. the lucky three had the highest cumulative change of 28.5%. Whereas, Firm 4had the lowest cumulative changes of 7.7 %.
Sales and Profit
Retail sales of 2021 is $27,809,580 and profit after tax is $2,529,056
Unit Sale Price
In 2021 we haven’t changed the retail price which was $790, and which was effective on that particular year and it is our competitive advantage that we are competing on price.
Demand Forecast Accuracy
Our production was estimated for 24,000 units that year, but we produce almost same amount and we had few units from previous stock. It showed our demand forecast accuracy of 91% which was a very good sign that we were accurate in our estimation. Firm 4 had the lowest accuracy margins where they got 69% accuracy.
Total Product Advertisement
We had spent almost 3,900,000 in Television which we found great advantage to increase awareness in the market.
Total Product Public Relation
From our experience and calculations, we had decided to invest in public relations specially magazines were the good source of PR for our business, and we spent $1,250,000 in magazines.
Brand advertising
We were going to launch a new product next year and that’s why we had to spend on brand awareness in which was amounted $1,250,000.
Quality and Efficiency Improvement
We had spent $3,500,000 just to further improve our quality and efficiency to our customer best experience every time.
4th Rollover – 02 Sep 2018, 23:59pm (Sun)
Meeting Title: Year 4 –2022, launch a new product
Meeting called by
Summit b Devkota
Meeting Date:
18//042021
Meeting time 18:00
Meeting Location
5/382 MOWBRAY RD LANECOVENORTH 2066
Attendees
Members name – Abdul, Nikhil, Md Nahian
Agenda Topics: Capacity Planner and New Product
Discussions
From this year, we can launch our new product. The discussion includes to introduce the most effective product that popular in the market. We decided to improve our mountain product which will attract more customers in the future. We also decided to increase the capacity of the factory and spend more amount to increase efficiency and quality.
Conclusions
Development expenditure: $1,000,000
Product Launch Expenditure: 4,500,000
Advertisings Expenditure: $ 3,900 ,000
PR Expenditure: $2,500,000
Branding expenditure: $1,250,000
Capacity expenditure: $3600000
Efficiency expenditure: $2,000,000
Quality expenditure: $2,500,000
Equity buyback: $14,590,328
Dividend:0
Action items
Person Responsible
Dead line
Improvement and launching new product
Summit B Devkota
21104/2021
Year 4 2022 Key reports
Shareholder Value (SHV)
Our shareholder value increased compare to the SHV of previous year 2021, it became $52.63. We were proudly leading company in our world. Competitor Fast pedal was also leading the market but they were in second position with SHV of $26.44.
Cumulative Change in SHV
We managed to increase the cumulative change in SHV and secured the change of 372% and we were leading in the market. Firm6 had the lowest cumulative change of 7%.
Sales and Profits
Retail sales of 2022 was $52,886,800 and Profit after tax was $7,194,093.
Unit Sale Price
In 2022, we increased the retail price to $840 as we had developed the mountain product. We had also launched our new product called “name of the product” and it was priced as $400.
Demand Forecast Accuracy
Our production was estimated for 38,000 units this year and we sold 38,400 units. It was a great achievement that we sold most of our product. For the new Product, we estimated 50,000 and sold 36,770 units and we did not sell all of them which showed our demand forecast accuracy of 83%.
Total Product Advertisement and Public Relation
We have spent $3,900,000 on Advertisement and $1,250,000 on Public Relation.
Brand advertising
To get awareness in Branding we spent $1,250,000 that gave us 57% brand awareness in the market.
5th Rollover – 02 Sep 2018, 7pm (Sun)
Meeting Title: Year 5 –2023 to launch a new product
Meeting called by
Your name-SUMMIT B DEVKOTA
Meeting Date:
28/08/2022
Meeting time: 12:00pm
Meeting Location
Market Street KOI
Attendees
Members name – Abdul, Nikhil, Md Nahian
Agenda Topics: Launch a new product
Discussions
In this meeting, our discussion is on new product Pricing. The estimated preferences for product dimensions in each segment is given below. In this year we are launching our third new product and improving the previous two products.
Conclusions
Development expenditure: 3,000,000
Product Launch Expenditure: 1,000,000
Advertisings Expenditure: $ 6,250,000
PR Expenditure: $5,950,000
Branding expenditure: 1,250,000
Capacity expenditure: 8,000 Scu
Efficiency expenditure: 2,400,000
Quality expenditure: 7,600,000
Equity buyback: 4,760,000
Dividend:0
Action items
Person Responsible
Dead Line
Road Product
SUMMIT B DEVKOTA
03/09/2022
Year 5 2023 Key reports
Shareholder Value (SHV)
Our shareholder value increased in the year 2023 as compare to the SHV of previous year it became $94.20. We were leading in the market in our world. Firm 6 had the lowest SHV in our world with $9.02.
Cumulative Change
We managed to increase the cumulative change in SHV and secured the change of 79.0% and we were leading in the market in our world.
Sale and Profits
Retail sales in 2023 were $76,879,840 and Profit after tax was $10,148,632.
Unit Sale Price
In 2023 we managed the price for mountain product $870. We had also launched our new product called “nsuma” and it is priced as $2250. We have improved tsumi and then the price was $400.
Demand Forecast Accuracy
We sold 34,632 units of mountain product, 55000 units of youth product and 11,000 Roads product were sold in the year 2023 and our forecast was 84% and we sold most of them.
Total Product Advertisement
We have spent $6,250,000 on advertisement.
Total Product Public Relation
Because of our past experience and calculations, we had decided to invest in public relations and we spent 5,950,000.
Brand Advertising
We had to launch a new product that was why we had to spend on Brand awareness amount of $1,250,000 and Brand awareness index was 60%.
6th Rollover – 08 sep 2018, 2:00pm (Sun)
Meeting Title: Year 6 –2024 to launch a new product
Meeting called by
Summit b devkota
Meeting Date:
29/05/2023
Meeting time 18:00
Meeting Location
King’s own institute
Attendees
Members name – Abdul, Nikhil, Md Nahian
Agenda Topics: Discussion about How to continue with all Products
Discussion
We planned to improve all the product and increased the production capaity. We have increased the expenditure in efficiency and quality. Bought back all the share that we can buy and paid maximum amount of dividend.
Conclusions
Development Expenditure: 4,000,000
Advertisings Expenditure: $ 6,250,000
PR Expenditure: $5,950,000
Branding expenditure: 1,250,000
Capacity expenditure:46,000
Efficiency expenditure:
Quality expenditure:
Equity buyback: 1,898,089
Dividend: $15.90
Production: mountain 32000 tsumi 50000 nsuma 12000
Action items
Person Responsible
Dead line
All decisions
Your name
3/06/2023
Year 6 2024 Key reports
Shareholder Value (SHV)
Our shareholder value increased in the year 2024 as compare to the SHV of previous year 2023, it became 137.39% We were the leading company in our world. Competitor had the lowest SHV in our world with $5.92.
Cumulative Change
We managed to increase the cumulative change in SHV and secured the change of 543% and we are leading the market. Competitor had 35% cumulative Change.
Sales and Profits
Retail sales in 2024 were $67,080,150 and profit after tax was $11,932,460
Unit Sale Price
In 2024 we decreased the price for mountain product which is $850. We had also improved our new product called “nsuma” and it was priced as $2350. We had priced tsumi with $400.
Demand Forecast Accuracy
We sold 29,894 units of mountain product. 37,276 units of (tsumi) youth product and 9,458 units of (nsuma) Roads product were sold in the year 2024 and our forecast was 98% and we sold most of them.
Total Product Advertisement
We had spent $6,250,000 on advertisement.
Total Product Public Relation
As the Result of our experience and calculations we had changed many of our decision and we spent $5,950,000.
Brand advertising
We had launched all of the products to our product range in the current year and that’s why we had to spend $1,250,000 on awareness and brand index was 62%.
Equity and dividend
Within 2024 we bought back all the equity we can buy and the equity we had was 1,898,089. And we gave $0.00 dividend to our shareholders whereas dividend per share was 15.90 .
7th Rollover – 16 sep 2018, 7 pm (Sun)
Meeting Title: Year 7 –2025 controlling cost
Meeting called by
Your name
Meeting Date:
24/07/2024
Meeting time 12:00PM
Meeting Location
King’s own institute
Attendees
Members name – Abdul, Nikhil, Md Nahian
Agenda Topics: Discussion about How to continue with all Products
Discussion
· Implement Similar decision taken in the last period
· Increasing our production
· Declaring more dividend
Conclusions
Advertisings Expenditure: $ 6,250,000
PR Expenditure: $5,950,000
Branding expenditure: $1,250,000
Capacity expenditure: $0
Efficiency expenditure: $0
Quality expenditure: $0
Equity buyback: 0
Dividend: $0.00
Production:
Mountain –32,000 Unit
tsumi– 41,000 Unit
nsuma – 9,000 Unit
Action items
Person Responsible
Dead line
All decisions
Your name
28/07/2024
Year 7 2025 Key reports
Shareholder Value (SHV)
Our shareholder value increased in the year 2025 as compare to the SHV of previous year 2024, it became $185.34. We were leading company in our world. Firm 6 had the lowest SHV in our world with $3.77.
Cumulative Change
We managed to increase the cumulative change in SHV and secured the change of 34.9% and we were leading the market. Fast pedal had 24.4% cumulative Change.
Sale and Profits
Retail sales in 2025 were $62,546,600 and profit after tax was $15,653,457.
Unit Sale Price
In 2025 we didn’t change the price. We had the same price as in 2024. Price for mountain product was $850, youth was 400, and the road segment was 2350.
Demand Forecast Accuracy
We sold 32,500 units of mountain product. 43000 units of youth product and 10,000 Roads product were sold in the year 2025 and our forecast was 98% and we sold most of them.
Total Product Advertisement
We had spent $6,250,000 on advertisement.
Total Product Public Relation
Because of our experience and calculations, we had changed many of our decision and we spent $5,950,000 in public relation.
Brand advertising
We have launched all the products to our product range in the current year and that’s why we have to spend $1,250,000 on brand awareness and brand index was 62%.
Equity and dividend
Within 2025 no more equity to buy and dividend per share was $15.80.
8th Rollover – 23 sep 2018, 7.30pm (Sun)
Meeting Title: Year 8 –2026 controlling cost
Meeting called by
Your name summit b devkota
Meeting Date:
13/06/2025
Meeting time 18:00
Meeting Location
King’s own institute
Attendees
Members name
Agenda Topics: Discussion about How to continue with all Products
Discussion
· Implement Similar decision taken in the last period
· Increasing our production
· Declaring more dividend
Conclusions
Advertisings Expenditure: $ 6,250,000
PR Expenditure: $5,950,000
Branding expenditure: 1,050,000
Capacity expenditure:36,500
Efficiency expenditure:0
Quality expenditure:0
Equity buyback: 0
Dividend: $0.00
Production:
Mountain – 29,500 Unit
youth – 35400 Unit
Road – 9,800 Unit
Action items
Person Responsible
Dead line
All decisions
Members name
16/06/2025
Year 8 2026 Key reports
Shareholder Value (SHV)
Our shareholder value increased in the year 2026 as compare to the SHV of previous year 2025, it became $233.61. We are leading company in our world. Firm 6 had the lowest SHV in our world with $3.30.
Cumulative Change
We managed to increase the cumulative change in SHV and secured the change of 26.0% and we were leading the market. The lucky Three had 2.1% cumulative Change.
Sale and Profits
Retail sales in 2026 were $60,878,200 and profit after tax was $15,558,317.
Unit Sale Price
In 2026 we put the same price to $850, 400 and 2350 for mountain, Youth and Road products respectively.
Demand Forecast Accuracy
We sold 29,954 units of mountain product. 34,740 units of youth product and 9,158 Roads product were sold in the year 2026 and our forecast was 95% and we sold most of them.
Total Product Advertisement
We have spent $6,250,000 on advertisement.
Total Product Public Relation
Because of our experience and calculations, we had changed many of our decision and we spent $5,950,000 in public relation.
Brand advertising
We had launched all products to our product range in the current year and that’s why we had to spend $1,050,000 on brand awareness and brand index was 60%.
Equity and dividend:
Within 2026 no more equity to buy and the equity we had 800,000 and we gave $0.00 dividend to our shareholders.
The summery of the game play:
Financial statement at the end of the 8th rollover:
The Final Result:
Class Ranking: #4
World 2 Ranking: #1
Global Ranking: #93
Global Percentile: 99.6%
We finished the game at the 1st position in the World 6, at the 4th in the class ranking and achieved the highest profit of $15,558,317.
However, surprisingly, the other groups did not reduce their expense to maximise their PAT and SHV; therefore, the result is almost the same as what we got in the offline mode. As the result, we have more closing inventory than we expected because we expect the others to decrease their expenses and our sales to increase more.
Apart from the variance mentioned above, our prediction was quite accurate as the industry benchmark report shows 96%.
One of the most important achievements is that our profit growth has never decreased since year 2 while the PAT of the other companies fluctuate at some points
Conclusion:
We will launch interactive website for consumer to share their feelings and comments about our products and experiences. Our website will consist of an area where consumers can read and keep up on the latest information in the bicycle industry from new to sporting places. We will launch social network for bicycle enthusiasts where people can have forum to chat with cycling fans.
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