Assignment – 6

Name of the student : Abishek S S

Roll Number : 17E602

A short report on the below graph:

Introduction:

The given graph shows the varying trends in income, expenditure and advertising for each
month of a company. This report gives a brief view about what strategy should the company follow
to become a successful company in the market.

The right strategy:

From the graph, it is clear that the in month A and B, the company has gained more than
double of what it has spend on expenditure. But in in the upcoming months of C, D and E, the
company’s profit diminished when compared to previous months and then again in the months of F,
G and H it starts to see some raise in profit. This can be clearly understood if we see the company’s
expenditure on advertising. As the month passes by, the company reduces its expenditure on
advertising leading to a fall in its popularity among consumers thus reducing its profit. Then the
company realizes it and from the month F the company starts to increase its expenditure on
advertising leading to regain its popularity and thus attaining the market again and increases its
profit.

Conclusion:

Even if the company produces high quality product for its target customers, for the company
to be highly successful, it should spend at least 1/3rd of its total expenditure on advertising so that its
customer knows about their product and also gain popularity among market leading to raise in its
profit.