Uraudio Multi-station

Promotional Budget:

When I sell the Uraudio Multi-station, I could include two sets of wireless headphones and give consumers the third pair for free. However, I will compensate for the “free” headphone set by raising the price of the overall product. This way, consumers will think they are getting a fantastic deal with more product for less money. The TV advertisement would cost the most money to create and would be ideal to release during the Superbowl and other high-televised events in which parents and teenagers are the main viewers. This would mean millions of dollars for a 1 minute spot. However, for a starting company, releasing an advertisement during the Superbowl is uncommon and too costly. It would be hundreds of thousands of dollars cheaper to air the commercial on late-night TV shows and news channels. Radio advertisements are less expensive and internet advertisements are the least expensive. The product would have the most luck being promoted on TV since people like visuals for products of interest in the context in which they will be used. The promotional budget may cost $400,000 to cover advertising, support staff, salespeople and beta-testing. We expect the product to have a 10% return on investment.