Shareholder Value & New Product Launch: A Detailed Business Report

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Added on  2023/04/04

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This report analyzes the launch of a new product and its impact on shareholder value, comparing performance across multiple years. It covers key aspects such as pricing strategies, demand forecasting accuracy, advertising expenditure, and brand equity development. The analysis includes data on retail sales, profit after tax, and changes in shareholder value, highlighting the company's market leadership and improvements in product offerings. The report also touches on equity repurchase and dividend distribution to stockholders, reflecting the company's focus on enhancing shareholder returns. It further discusses the allocation of resources towards advertising, PR activities, and brand awareness campaigns, correlating these investments with the company's overall financial performance and market position.
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Launching a new product
The discussion was carried on the pricing of new product. The estimation of the
preferences in regards to the dimension for the each segment are here below. This
year, we have been coining third new product and enhancing the previous ones.
Shareholder value
The value contributed to the shareholders in 2013 has increased while comparing it to the
previous year where the value was only $101.66. We have been consistently leading the
market. Company that has been named as “Mountain bike” has lowest shareholder`s
value in the market at $14.68.
Fluctuation in shareholder`s value from the previous year
Our company has managed to hike the change in the shareholder`s value of the last year with
a change of nearly 76.8 percent whereas the mountain bike has the lowest on 37.7
percent.
Profit After tax and the retail sales
During 2023, the retail sales were nearly $74482520 and the profit after taxation is estimated
at $11428337.
Price at the sales unit
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In 2023, the prices increased after the VIP meeting in the rook for the product that was $880.
Our company has launched new product known as “conference room” and it was priced
on $395. Our company has tried to improve the boardroom and finally the price is $2400.
Forecasting of demand and its accuracy
Our company has sold nearly 36,260 units of VIP meetings and room product. Further, it will
sell 11976 units boardroom and other 35016 units of the conference product in 2023. The
demand forecasting accuracy has been appropriate as 93 percent and our company has
achieved to seen that.
Advertising of all the products
Our company has nearly spent $ 6,200,000 on advertising activity.
Product Past experience
As per the past- experience and the calculations, it is seen that we have decided to invest in
the PR activity and spent $4850000.
Advertisement of brand
When the new product is launched, our company have spent nearly $1550000 on the
important basis on the brand awareness and brand advertising where it was indexed at 64
percent.
Topics of the Agenda (discussion regarding continuation of existing products)
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Our company has improved all products and services in order to increase the efficiency of the
productivity. Company had increased the expense on quality and the efficiency. We have
repurchased shares and paid maximum dividend to the existing shareholders.
Six-years report (2024)
Value of shareholder
The shareholder value has increased in 2024 while comparing it to the shareholder`s value of
the last year when it was $161.99. We are maintaining ourselves and leading the market.
Mountain bike is still estimated at $3.39.
Change in shareholders’ value since the previous year
Our company has managed the changes in shareholder`s value from previous year and there
is an secured change 59.3 percent. KING TEA is consistently leading the market with the
44.44 dollars. Millennial and corporation has reached to 50.2 percent as compared to
previous year.
Profit and sales
Profit after taxation is estimated as 15435502 dollars with the retail sales of 74656060
dollars.
Sales price of units
By 2024, our company has improved the products and the price increase for few products.
VIP meetings decided the price of room product is estimated at $880, conference room at
$395 and the boardroom is estimated at $2400.
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Accurate demand forecasting
The company have sold 35000 units to the VIP meeting or the room product where 11000
units and 42000 conference room products in 2024. The forecasted demand for product
was 92 percent and we have achieved it.
Product advertisement
The company has spent $6,200,000 on advertisement.
Product PR
The consequence of the experience and other calculations as we have changed our decisions.
Company have spent $4850000.
Brand equity
Our company has launched products in that year and this is because our company has been
spending $1550000 dollars on brand advertising with brand index of 66 percent.
Equity and dividend
In 2024, it is seen that all the equity has been repurchased which our company could have
repurchased and the shares increased to 800000. Our company give dividend to
stockholders.
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