Hillstone Case Study

860 Words4 Pages
Financial and operational plans: 1. Expected revenues and profits Hillstone when sells a Tron, they will sell at a price of $300. The cost of per shoe to Hillstone is $195. They make $105/shoe, if estimated by the projected figure they expect to sell nearly about 2000 shoe in their first quarter. Their expected revenue is about $600,000 in their maiden quarter. With a margin of $105/shoe the total will be $210,000 by selling 2000 pieces. The profit is within this margin of $105, which they expect to be around 20-25% initially which comes out to be $40,000 to $45,000. ] 2. Projected Budgets, schedules and responsibility With the given budget of $30,000 they plan to launch their shoe. They have divided their funds as follows: Particulars Due…show more content…
How valuable is acupressure in today’s world. How it can improves one’s health physically and mentally. Since it’s a unique idea we as a company want people to not only buy the product we want them to understand the reason why they should buy Tron. - Creating a market: Hillstone already has decided its target audience but by marketing they want people to relate themselves to the product. We want our potential audience to realise the serious benefits to Tron. We want to create our own individual market - Creating enigma: since Tron is the only smart shoe in the world by marketing they believe to create a massive level of excitement amongst the people which they believe are their potential buyers. We tend to do it by marketing in such a way that people are looking forward for the launch. We believe in creating an aura of suspense. Financial…show more content…
Revenue growth comes from an emphasis on sales and marketing activities, and is solely concerned with increasing top-line earnings — earnings before expenses. We may set an objective of increasing revenue by 20 percent each year for the first five years of a new company's operations, for example. Profit Margins Profit objectives are a bit more sophisticated than revenue growth goals. Any money left over from sales revenue after all expenses have been paid is considered profit. Profit, or bottom-line earnings, can be used in a number of ways, including investing it back into the business for expansion and distributing it among employees in a profit-sharing arrangement. Keeping costs low by finding and building relationships with reliable suppliers, designing operations with an eye toward lean efficiency and taking advantage of economies of scale, to name a few methods, can leave us(Hillstone) with more money after paying all of your bills. Sustainability At certain times, we as a company Hillstone may be primarily concerned with basic economic survival. Retrenching is a marketing technique — based on a financial objective — that attempts to keep a us alive and keep current revenue and profit levels from falling any further during the “decline” stage of the
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