FUTURE LLC: New Product Line Necessity

Subject: Marketing
Pages: 5
Words: 439
Reading time:
2 min
Study level: Bachelor

Introduction

FUTURE LLC is a dropshipping business. The company sells 100 product lines. 15 products have the highest demand. The new season needs a new popular product. USB portable blenders can hit the records. Diet, weight loss, exercise, and a healthy lifestyle are popular topics. FUTURE LLC will invite bloggers and influencers for promotion.

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Funding Type

FUTURE LLC has its equity capital. A bank loan is another source of funding. The loan will be paid back from sales. USB blenders are not presented in the US. The first butch will require $1000 funding. It will be funded from retained earnings or equity capital. The second butch will require $10000 funding. Mixed types of funding are popular. Government and private businesses use them. Mixed funding is optimal given the risks. The cost of the loan interest is low. Potential losses from freezing the equity capital are considerable.

Long-Run Benefits

Well-designed online promotion will ensure future success. A promotion campaign means new partnerships. A sales campaign means testing new selling tactics. A promotion campaign means testing new marketing tactics. USB blender will be easily advertised through the new channels.

Profit Within the Timeline

The market price of the USB blender is $12.36. The wholesale purchase price is $5. The payback period for the first batch is 2 weeks. The payback period for the second batch is 5 weeks. The total payback period will not exceed 6 weeks for two batches.

Budget and Timeline for the First Stage

During the first week, $1000 = 200 items * $5 will be spent. The sales revenue will be 200 items * $12.36 = $2472. The preparatory stage will take 2 days. The preparatory stage will feature a fast promotion campaign. Net profit from the first batch will be $472.

Budget and Timeline for the Second Stage

$10,000 will be spent on 2,000 units of goods. Sales revenue will be $24,720. $2,000 will be spent on wages for SMM, bloggers, and influencers. $500 will be paid as an interest rate. The profit from the sale will be $12,220.

Risks

Advertising may be ineffective, causing low demand. Goods can be still unsold in 6 weeks. In this case, the amount of net profit will equal $7720. Additional costs can be avoided by following online marketing rules. Online promotion techniques will neutralize the risks.

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Benefits for the Stakeholders and Investors

FUTURE LLC’s profit from sales will equal $8192 to $12692. The projected period will be from 4 to 24 weeks. In the worst-case scenario, the company will earn $8192. FUTURE LLC will increase its presence in the market. FUTURE LLC will test new ways of online promotion.

References

Barker, S. (2021). 20 inexpensive product launch marketing ideas that work. Web.

Estevez, E. (2020). What are the sources of funding available for companies? Web.

Ferreira, N. M. (2020). 15 best new products you need to know about. Web.

Tollestrup, J. (2016). Overview of funding mechanisms in the federal budget process, and selected examples. Congressional Research Service. Web.