Group Simulation Report on Meetings and Minutes for Desklib

This report covers the minutes of meetings held by Anu Priscilla Khati, Jose David Valencia, Durga Jayanth Seethamsetty, and Nimeshi Shashikala Babarawana Hetti Gamage for the development of marketing and production strategies, brand development, and launch of new products. The report includes discussions on pricing, budgeting, advertising, PR, and quality improvement. The report also includes key reports on shareholder value, sales, profits, and demand forecast accuracy.

GROUP SIMULATION REPORT
ASSIGNMENT
Meetings and Minutes
SUBMISSION DATE: 28TH SEPTEMBER,2018
SUBMITTED TO: REX WALSH
SUBMITTED BY: ANU PRISCILLA KHATI: 11500414
DURGA JAYANTH SEETHAMSETTY :11601098
NIMESHI GAMAGE: 1170020
JOSE DAVID VALENCIA: 11501715

1st Rollover – 15.08.2018, 23:59pm (Sun)
Meeting Title: Year 1 –2019 marketing and production strategy
Meeting called
by
Anu Priscilla Khati
Meeting Date: 11/08/2018 Meeting time 09:00
Meeting
Location
Sydney CBD
Attendees Anu Priscilla Khati, Jose David Valencia, Durga Jayanth Seethamsetty, Nimeshi Shashikala
Babarawana Hetti Gamage
Agenda Topics: Price of product & Budgeting advertisement and PR
Discussions
Price of product & Budgeting advertisement and PR play vital role in the business. So, it is vital to spent
money on part where the company can make a profit. Therefore, price segmentation allows us to offer the
same basic product but add features that clients are willing to pay for.
Conclusions
First year of production, the recommended price was in the mid-range, where the price was at average
which was equivalent with the segmentation. The rational price kept hold of the overall Gross Margin, and
if the market didn’t respond, the price would be re-considered to adjustment 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: $700
Production: 16,500
Advertisings Expenditure $ 750,000
PR Expenditure $500,000
Action items Person Responsible Dead line
Set a price of product & marketing cost Nimeshi Shashikala Babarawana Hetti Gamage 11/08/2018
Year 1 2019 Key reports
Shareholder Value (SHV)
In 2019 the company’s shareholder value was $11.45. The competition was led by Road-Ranger with
highest SHV 13.07 and Interior Inc. had the lowest SHV of 12.46 that set their position on the 3rd place.
Whereas the cumulative change in SHV was 2.8% for our company and the lowest change for EMS Sydney
was 4.1% and the highest was again 17.3% for road-Ranger.
Sales and Profit
Our Company is manufacturing mountain product with retail price of $700. Retail sales for financial year
2019 were $11,288,200 and that earned us profit after tax of $1,079,908. The total number of shares being
$1,000,000 and earnings per share were $1.080.

Total product Advertisement and PR
Our Company paid $750,000 on the advertisement expense in the year 2019 and $500,000 on total
Product PR and Product awareness was 18%.
2nd Rollover – 22.08.2018, 23:59pm (Sun)
Meeting Title: Year 2 –2020 Develop strategy and Brand

Meeting
called by
Anu Priscilla Khati
Meeting
Date:
18/08/2019 Meeting time 9:00
Meeting
Location
Sydney CBD
Attendees Jose David Valencia, Anu Priscilla Khati, Durga Jayanth
Seethamsetty, Nimeshi Shashikala Babarawana Hetti Gamage
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 decided whether it would be better planning an alternative distribution method. Our main concern for
this year to maximize our profit by decreasing the margin. We distributed retail margin to
Product shop=max 25%,
Sports stores=max 25% and
Discount store =25%.
Price: $738
Production: 24,388
Advertisings Expenditure: $3,800,000
PR Expenditure: $1,200,000
Branding Expenditure: $1,200,000
Action items Person Responsible Deadline
Product Branding Jose David Valencia 18/08/2019
Year 2 2020 Key reports
Shareholder Value (SHV)
Our company’s shareholder value decreased comparatively to the SHV of previous year 2019, it became
$11.09. Road-Ranger was leading the market with highest SHV of $18.45 and You-Bike went up that year
by increasing their SHV to $14.02 and beat the Fantastic-four which had hold the SHV of $13.86.
Cumulative Change in SHV
There’s a decrease in the cumulative change of SHV to 3.1%. Road-ranger having the highest cumulative
change of 41.2%. Whereas, the lowest cumulative change was 1.6% for Interior Inc.
Sales and Profits
Company’s Retail sales of 2020 is $ 16,529,724 and profit after tax is $625,336 which has decreased in
comparison to last year.

Unit Sale Price
In 2020 we updated the retail sale price which was $738 still providing one of the best cheapest and most
reliable product.
Demand Forecast Accuracy
The production was 24,388 units that year because we had some opening stock. It showed the demand
forecast accuracy of 91%. We were working hard and trying to get up with the sales in our world in
comparison to our competitors.
Total Product ADVERTISMENT
Our company’s total Advertisements cost in year 2020 was $3,800,000 on total product advertisement in
the market to get wide range of awareness that led to a average amount of sales that year.
Total Product Public Relation
After the experience and calculations we decided that investment in public relations and found out that
magazines were the best source to promote our product, leading the company to spend $1,200,000 on
magazines.

3rd Rollover – 19.04.2019, 23:59pm (Sun)
Meeting Title: Year 3 –2021 developing a new product
Meeting called
by
Anu Priscilla Khati
Meeting Date: 15/08/2020 Meeting time 9:00
Meeting
Location
Dinning Hall KOI,
Attendees Anu Priscilla Khati, Jose David Valencia, Durga Jayanth Seethamsetty, Nimeshi Shashikala
Babarawana Hetti Gamage
Agenda Topics: Controlling Capacity, efficiency, Quality & Debt
Discussions
We decided Brand Advertising as our major campaign and to fund it. Also, our profit position is average,
therefore, budgeting for branding needs to be taken under consideration. Next, we are going 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 dept which will decrease the interest expenses.
Conclusions
Price: $760
Production: 30000
Advertisings Expenditure: $ 3,800,000
PR Expenditure: $1,200,000
Branding expenditure:1,200,000
Capacity expenditure:0
Efficiency expenditure:1,000,000
Quality expenditure:1,00,000
Action items Person Responsible Dead line
Budgeting of capacity of manufacturing Durga Jayanth Seethamsetty 15/08/2020
Year 3 2021 Key reports
Shareholder Value (SHV)

Our company’s shareholder value increased to $12.71 in the year 2021. Road Ranger is leading the market
with the highest SHV of $20.12 and You-Bike went up that year by increasing their SHV to $13.97 beating
the Interior Inc which had the SHV of $12.16.
Cumulative Change in SHV
We finally managed to increase the cumulative change and secured the change of 14.6%. Road Ranger has
the highest cumulative change of 9.1%. Whereas, You Bike has the lowest cumulative change of 0.4 %.
Sales and Profit
Retail sales of 2021 is $21,903,200 and profit after tax is $1,455,037.
Unit Sale Price
In 2021 we changed the retail price which is $760, and which was effective on that particular year and it is
competitive advantage to us that we are competing on price.
Demand Forecast Accuracy
Our production was estimated for 30000 units that year, but we produced nearly the same amount and we
had few units from previous stock. It showed the demand forecast accuracy of 96% which was a good sign
that we were accurate in estimating.
You Bike had the lowest accuracy margins where they got 23% accuracy.
Total Product Advertisement
We had spent almost same amount as last year with few changes being made in spending in advertising
via: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 $1,200,000 in magazines.
Brand advertising
We will be launching a new product next year and that’s the reason we spent minimal amount on brand
awareness in which was amounted $1,200,000.
Quality and Efficiency Improvement
We had spent $2,000,000 just to further improve our quality and efficiency for our customer to experience
the best service always.

4th Rollover – 22.08.2018, 9:00pm (Sat)
Meeting Title: Year 4 –2022, launch a new product
Meeting
called by
Anu Priscilla Khati
Meeting
Date:
18/08/2021 Meeting time 9:00pm
Meeting
Location
Market street

Attendees Nimeshi Shashikala Babarawana Hetti
Gamage, Jose David Valencia, Durga Jayanth
Seethamsetty, Anu Priscilla Khati
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: $3,000,000
Product Launch Expenditure: $1000000
Advertisings Expenditure: $3800000
PR Expenditure: $3,000,000
Branding expenditure: $1,200,000
Capacity expenditure$200*13000): $2,600,000
Efficiency expenditure: $1,800,000
Quality expenditure: $4,500,000
Equity buyback: $1,270,000
Dividend: $0
Action items Person Responsible Dead line
Improvement and launching new product Anu Priscilla Khati 18/08/2021
Year 4 2022 Key reports
Shareholder Value (SHV)
The company’s shareholder value increased in compare to the SHV of previous year 2021, it became
$39.07. Road Ranger was leading company in our world. Fantastic Four was also leading the market but
they hold second position with SHV of $16.11.
Cumulative Change in SHV
We managed to increase the cumulative change in SHV and also secured the change of $207.4% and we
were leading in the market. Interior Inc had the lowest cumulative change of 9.2%.
Sales and Profits
Retail sales of 2022 was $51,450,580 and Profit after tax was $5,452,296.
Unit Sale Price
In 2022, we increased the retail price to $790 as we had developed the mountain product. We had also
launched our new product called “Faster Ride” and it was priced as $2300.
Demand Forecast Accuracy

Our production estimation was 35,000 units this year and we sold 33,102 units. It was a great achievement
that we sold most of our product. For the new Product, we estimated 100,00 and sold 11,000 units and we
did not sell all of them which showed our demand forecast accuracy of 77%.
Total Product Advertisement and Public Relation
We have spent $3,800,000 on Advertisement and $4,200,000 on Public Relation.
Brand advertising
To get awareness in Branding we spent $1,20,000 that gave us 57% brand awareness in the market.

5th Rollover – 29.08.2018, 23:59pm (Sun)
Meeting Title: Year 5 –2023 to launch a new product
Meeting called by Anu Priscilla Khati
Meeting Date: 25/08/2022 Meeting time: 12:00pm
Meeting Location Library, Kent Street
Attendees Anu Priscilla Khati, Jose David Valencia, Durga
Jayanth Seethamsetty, Nimeshi Shashikala Barawana
Hetti Gamage
Agenda Topics: Launch a new product
Discussions
In this meeting, we are focusing our discussion on new Product Pricing. The study about the
estimated preferences for product dimensions in each segment is given below. In this year
we are launching our third new product and developing and making improvements with the
previous two products.
Conclusions
Development expenditure: $4,000,000
Product Launch Expenditure: $1,000,000
Advertisings Expenditure: $ 6,200,000
PR Expenditure: $5,400,000
Branding expenditure: $1,200,000
Capacity expenditure: $1,200,000
Efficiency expenditure: $2,400,000
Quality expenditure: $5,000,000
Equity buyback: $3,540,000
Dividend:$0 (no payment)
Action items Person Responsible Dead Line
Fast-Youth Durga Jayanth Seethamsetty 25/08/2022
Year 5 2023 Key reports
Shareholder Value (SHV)
Our shareholder value was increased in the year 2023 in compare to the SHV of previous year which is
$79.07. We were first and leading in the market in our world5. However, Interior Inc had the lowest SHV in
our world with $13.96.
Cumulative Change
We managed to increase the cumulative change in SHV and secured the change of 102.4%.
Sale and Profits
Retail sales in 2023 were $70,898,960 and Profit after tax was $9,254,655.
Unit Sale Price
In 2023 we managed the price for mountain product $810. We had also launched our new product called
“Faster-Ride” and it is priced as $2400. We have improved Fast-youth and then the price was $380.

Demand Forecast Accuracy
We sold 35,000 units of mountain product, 30,000 units of Fast-youth product and 12,000 Faster-Ride
Road product were sold in the year 2023 and our forecast was 94% and we sold most of them.
Total Product Advertisement
We have spent $,6,200,000 on advertisement.
Total Product Public Relation
Because of our past experience and calculations, we had decided to invest in public relations and we spent
5,400,000.
Brand Advertising
We launch a new product this time , making an investment of $1,200,000 on Brand awareness and Brand
awareness index was 59%.

6th Rollover – 09 sept 2018, 23:59pm (Sun)
Meeting Title: Year 6 –2024 to launch a new product
Meeting called by Anu Priscilla Khati
Meeting Date: 05/09/2023 Meeting time 18:00
Meeting Location King’s own institute, Library
Attendees Durga Jayanth Seethamsetty , Nimseshi Shashikala
Babarawana Hetti Gamage, Anu Priscilla Khati, Jose
David Valencia
Agenda Topics: Discussion about How to continue with all Products
Discussion
We planned to improve all the product and increased the production capacity. 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: $ 6,200,000
PR Expenditure: $5,400,000
Branding expenditure:1,200,000
Capacity expenditure:800,000
Efficiency expenditure:2,000,000
Quality expenditure:2,900,000
Equity buyback: 1,578,358
Dividend: $12.40
Production:
Mountain – 36000 Unit
Fast youth – 44000 Unit
Faster ride – 12,000 Unit
Action items Person Responsible Dead line
All decisions Jose David Valencia 05/09/2023
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
$130.12. We were the leading company in our world. Interior Inc. had the lowest SHV in our world with
$15.08.
Cumulative Change
We managed to increase the cumulative change in SHV and secured the change of 64.6% and we are
leading the market. Competitor had 59.0% cumulative Change.
Sales and Profits
Retail sales in 2024 were $69,403,920 and profit after tax was $13,095,769.
Unit Sale Price
In 2024 we increased the price for mountain product which is $830. We had also improved our new
product called “Faster Ride” and it was priced as $2450. We had priced Fast youth with $388.
Demand Forecast Accuracy
We sold 36000 units of mountain product. 12000 units of Faster- Ride and were sold in the year 2024 and
our forecast was 94% and we sold most of them.
Total Product Advertisement
We had spent $,6,200,000 on advertisement.
Total Product Public Relation
As the Result of our experience and calculations we had changed many of our decision and we spent
$5,400,000.
Brand advertising
We launched all of the products that was on our product range in the current year, we are making an
spending $1,200,000 on Awareness and Brand index was 61%.
Equity and dividend
Within 2024 we bought back all the equity we bought and the equity we had was 800,000. And we gave
$12.40 dividend to our shareholders.

7th Rollover – 19 sept 2018, 23:59pm (Sun)
Meeting Title: Year 7 –2025 Cost Control
Meeting called by Anu Priscilla khati
Meeting Date: 15/09/2024 Meeting time 18:00
Meeting Location Café Townhall
Attendees Anu Priscilla Khati, Jose David Valencia, Jayanth
Seethamsetty, Nimeshi Shashikala Babarawana Hetti
Gamage

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: $ 6,200,000
PR Expenditure: $5,400,000
Branding expenditure: $1,200,000
Capacity expenditure:0
Efficiency expenditure:800000
Quality expenditure:900000
Equity buyback:0
Dividend: $14.60
Production: adv5
Mountain – 36000 Unit
Faster ride– 9500 Unit
Fast-youth – 42000 Unit
Action items Person Responsible Dead line
All decisions Anu Priscilla Khati 15/09/2024
Year 7 2025 Key reports
Shareholder Value (SHV)
Our company’s shareholder value increased in the year 2025 as compare to the SHV of previous year 2024,
it became $182.45. We were the third leading company in our world. Interior Inc had the lowest SHV in our
world with $6.37.
Cumulative Change
We managed to increase the cumulative change in SHV and secured the change of 40.2% and we were
leading the market. Road-Ranger had 41.3% cumulative Change.
Sale and Profits
Retail sales in 2025 were $65,910,840 and profit after tax was $16,360,687.
Unit Sale Price
In 2025 we kept the price for $830. We had not improved our new product “Faster-Ride” and it was priced
as $2400, dropped the price and the price for “Fast-Youth” was $385. We are controlling the cost here in
all three product.
Demand Forecast Accuracy
We sold 36000 units of mountain product. 43,000 units of Fast-youth product and 10,000 Faster-Ride
Roads product were sold in the year 2025 and our forecast was 92% and we sold most of them.
Total Product Advertisement
We had spent $6,200,000 on advertisement.

Total Product Public Relation
After the experience and calculations, we made changes with our decision and we spent $5,400,000 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 $1,200,000 on brand awareness and brand index was 61%.
Equity and dividend
Within 2025 no more equity to buy and the equity we had was $0 and we gave $14.60 dividend to our
shareholders.

8th Rollover – 23.08.2018, 23:59pm (Sun)
Meeting Title: Year 8 –2026 controlling cost
Meeting called by Your name
Meeting Date: 19/08/2025 Meeting time 15:00
Meeting Location KOI Dinning Hall, market street
Attendees Durga Jayanth Seethamsetty , Anu Priscilla Khati, Jose
David Valencia, Nimeshi Shashikala Babarawana Hetti
Gamage
Agenda Topics: Discussion about How to continue with all Products
Discussion
 Implementing Similar decision taken in the last period
 Increasing our production
 Declaring more dividend
Conclusions
Advertisings Expenditure: $6,200,000
PR Expenditure: $5,400,000
Branding expenditure: $1,200,000
Capacity expenditure: $0
Efficiency expenditure: $0
Quality expenditure: $200,000
Equity buyback: $0
Dividend: $5.00
Production:
Mountain: 33,000 Unit
Faster-Ride: 9,000 Unit
Fast-Youth– 39,00 Unit
Action items Person Responsible Dead line
All decisions Nimeshi Shashikala Babarawana
Hetti Gamage
19/08/2025
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
$222.01. We are the third leading company in our world. Interior Inc. had the lowest SHV in our world with
$4.21.
Cumulative Change
We managed to increase the cumulative change in SHV and secured the change of 21.7% and we were
leading the market. Road-Ranger had 27.9% cumulative Change.
Sale and Profits

Retail sales in 2026 were $63,394,900 and profit after tax was $16,812,750.
Unit Sale Price
In 2026 we kept the price constant to $830. We had not improved our new product for sports called
“Faster-Ride” and it was priced as $2400 and the price for Faster-Youth was $385.
Demand Forecast Accuracy
We sold 33,000 units of mountain product. 39,000 units of youth product and 9,000 Roads product were
sold in the year 2026 and our forecast was 96% and we sold most of them.
Total Product Advertisement
We have spent $6,200,000 on advertisement.
Total Product Public Relation
Because of our experience and calculations, we had changed many of our decision and we spent
$5,400,000 in public relation.
Brand advertising
We launched all the products from the product range in the current year, spending $1,200,000 on brand
awareness and brand index was 62%.
Equity and dividend:
Within 2026 there had been no more equity to buy and we had $0 equity and we gave $5.00 dividend to
our shareholders.

The summery of the game play:
Financial statement at the end of the 8th rollover:
The Final Result is stated below:
Class Ranking: #6
World 5 Ranking: #1
Global Ranking: #117
Global Percentile: 99.5%

We played the game and completed on the 1st position in the World 5, held 6th position in the class ranking
and achieved the highest profit of $16,812,750.
However, the other groups did not reduce their expense in maximizing their PAT and SHV.
Therefore, our company’s result is almost the same as what we got in the offline mode.
As the outcome, we have more closing inventory than what 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 98%.
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.