Dolls and ROI in Vamplets

Welcome to my 6 blog, I have discussed how does social technologies implement for ALDI in last blog, if you are interesting, please follow the link. Today I will discuss a bit of ROI, example of business case study for Vamplets company and how does ROI makes revenues for them. 

ROI 

ROI is the concept of investments that when business invest their effort on their business case and implement it to gain benefits from the investment. It is used to evaluate the efficiency of an investment or to compare the result of a number of different investments. Below it is the calculation of ROI. 

Vamplets 

Vamplets is a small business that base on making Vamplets dolls and introduced Facebook as their new channels to advertise their products for lead revenues. Refer to their investment of Facebook advertising, they spend $250 on Facebook advertising monthly and produce extra $1000 sale revenues per month. When we calculate the amount of their investment with additional gain from investment, it can be very worth as 300% return back. This is positive return on their investment, and if they are going to begin other platforms with similar strategies for their ads and set up their fans page to release their news by click following, like, share, and hash tag by visitors, the ROI of their business will be able to grow bigger by doing so and huge revenue each year as well. 


                                                            (1000 - 250) 
                                        300% =  ------------------------   X 100
                                                                   250

Tangible 

It is obviously that ROI evaluate the business revenue and the company itself operates more efficient to spread out their brand and also reputation. Moreover, when the rate of visibility grows to public, it assists its trademarks to gain more people known its product, and selling dolls to kids or young adult.  

1. Reduce cost 

2. Revenue increase 

3. Public visibility and known 

Intangible benefits

It is quite hard and measures the benefits for internal company, but it is able to forest that employees will be able to stay longer in the company because of increasing the revenues, staff will be confidence to their brand. It could be a kind of psychology thinking when the number of profits you seen, the effort of your work will be valuable as their mind.  

Weakness and Strength

Base on the business case study which I mention above is quite obviously for company to gain such huge revenues; even Vamplets is a small business to gain additional profits. For the weakness, they should start this kind of advertising in other website or social technologies, not just in Facebook, there are lots of social technologies, such as Twitter and Instagram. On the other hand, it is a great for small business growth to return on investment (ROI) and also evaluate the possibility of increasing the visibility for their trade marker. 



Reference 


Lauren,F.(2011). The ROI of Social Media:10 case studies. Retrieved from http://thenextweb.com/socialmedia/2011/07/16/the-roi-of-social-media-10-case-studies/