Problem statement

For the launch of new product, the company needed financial resources. It performed market study in
order to know the project’s viability and return-generating potential. The potential of the product will be
shown through an examination of net present value and internal rate of return. The economic and
environmental conditions and the company’s financial stability are also in the favour of investment in a
new product.

Following are some of the risks and benefits are attached with this investment.

Risks:

 The middle class, and particularly the lower class, do not care about obesity or any other health
risks, therefore the zero calorie carbonated drink may not be popular enough with them. Failure
of the product is a possibility.
 The government might introduce new laws for soda, and the rival companies might cut the cost
of their goods.
 There is a chance that the rival companies may introduce their products on this idea and capture
the market share, as they have a brand name and customers.

Benefits

 A market analysis confirms the viability of the product, and now is the ideal time to introduce it
to the market.
 The corporation will earn more money from the new product and expand its line of goods.
 Potential customers who care about their health may be drawn to the business.