Reevaluated Offer

Originally, Phunk asked for $60,000 for 20% or our company. This would have valued Phunk at $300,000 dollars which is almost $40,000 more than the projected 12 month cash income. After reevaluating our company, we are asking for 35,000 for 15%.  This values our company at $230,000. This is lower than our projected 12 month cash sales (which is 260,262), as we know it is best not to overestimate our company’s sales in order to ensure a safe financial plan. This $35,000 will cover Phunk for the all of the first 6 months except for $3,739 which will have to be paid on our own. As a result of the investment, Phunk will be able to save the total cash sales for the first 6 months, guaranteeing financial safety.  In the first 6 months of our company, we will pay out $38,739. The means we would have to take $3,739 out of all the money we would be saving up from the previous 6 months. In the first 6 months, we will potentially have $104,984 from sales, and eventually have the $155,378 more it is projected to make. This leftover money will provide Phunk with financial safety, as well as an opportunity to gain attention for the product and increase sales even more. Having the extra money will be beneficial to the sharks, and our company in which it gives us the opportunity to do what Phunk was made to do: to conveniently incorporate music into everyday life by producing phone cases with built in speakers

Phunk Twitter Strategy

Phunk has acknowledged the prevalence of the lack of social media. evaluated its social media weaknesses, and created strategies to ensure future success. Phunk's main weakness with social media is that on its Twitter account there are only a 4 followers, and has had trouble gaining attention for the account. Phunk understands just how vital a popular twitter account can be to a company's customer base. Phunk's target audience are iPhone users between the ages of 12-26. According to Daily Tech, and Geek Wire, a survey showed that 94% of teenagers have a Facebook account, and 26% have a Twitter account. This shows how Phunk has the opportunity to advertise to such a large portion of its company base through social media. Phunk has acknowledged that one can simply say they are going to use twitter to gain attention but the main question is how. Phunk understands how valuable the use of social media is to the company, and thus has created strategies to gain more attention. 

Firstly Phunk would have a giveaway, in which they give away an iPhone to one lucky winner. But in order to enter, it require a retweet and follow to Phunk's account. This will only cost Phunk about $12 to give away one Phunk speaker case, and in return, it will gain more advertising than $12 ever could have provided the company with. These giveaways could occur monthly, and will have a "snowball effect" in which the followers will greatly increase with time. This will gain a great amount of social media attention. Additionally, Phunk will use promoted tweets which have proved to draw in great amounts of attention in the past.

Secondly, companies have proved to gain attention through hashtags, in which would be able to tweet about the company using a user friendly, clever hashtag. Companies such as Old Spice and Taco Bell have gained the most attention through tweets that are witty, edgy, and audience-engaging.  By looking at other companies’ strategies, Phunk was able to find some inspiration in gaining web traffic.  Domino's Pizza has a very similar target audience to Phunk,and thus their strategies will be similar to the one's Phunk will use. Although Domino's is a much larger company than Phunk's as of now, their strategies are still ones that Phunk will use. Domino's described their keys to success, in which first, they came up with a "catchy hashtag,"  Domino's described that the hashtag should "[reflect] both what its audience was doing with their evening and the kind of programming that it was targeting. This is a strategy Phunk will practice with hashtags like #GetPhunky and #GoPhunkYourself. Additionally, according to Krista Bunskoek, the marketing officer at Wishpond, there are three key hashtags to gaining followers. One is a brand or campaign hastag; this is the main one associated with the company. Secondly is the trending hashtag, which is an audience engaging hashtag tha will be used to get a trending topic. This hashtag is perhaps most important because once a hashtag is trending anyone can see it. Finally is the content hashtag which are hashtags about specific releases and details with Phunk's products. Phunk will use this strategy that evidently has worked for Wishpond, as they have gained more than 15,000 followers on twitter.

Finally, Phunk will execute perhaps the most effective strategy, which is a promoted tweet. Promoted rates saw an engagement increase of over 20%, proving to be the most effective strategy. On the other hand, small company called Alter saw a 250% increase in their followers with a promoted tweet. This proves that this strategy brings thew account to many user's attention, and will be key in gaining followers. According to Quora.com and Ehowmuchdoesitcost.org, a promoted tweet only costs about $5. This will be an effective way to kick start Phunk's account.
Another stategy that this small business took was providing its followers with exclusive content (future plans and products). This would give followers an incentive to follow, as they would benefit from the follow.

Phunk has acknowledged the prevalence of the lack of social media. evaluated its social media weaknesses, and created strategies to ensure future success. Phunk understands how the use of social media can be used to its advantage, and with its strategies, the company will gain much more attention.

Executive Summary

Executive Summary

Mission Statement: Phunk is a company that conveniently incorporates music into everyday life by producing phone cases with built in speakers.

Phunk was formed on April 4, 2014, when the founders, wanted to solve the problem of poor quality phone speakers and inconvenient amplifiers. The owners of the company are Alec Gannon , Jack Sommer , Jill Purvis , and Stephanie Medeiros. All of the companies owners have key roles that can lead to the success of Phunk. Alec is the consultant for all business ideas, creative ideas, and the future of the product; Jack paves a path for the business with day-to-day operations which he is in charge of; Jill keeps everything organized and ensures efficient business ideals; Steph handles marketing so that we can gain as many customers as possible. The product provides the service of a portable speaker in the convenience of a iPhone case. Initially Phunk phone cases will sell online and in a kiosk. The profit will be used to market through social media and eventually sell our product on store shelves. Phunk also wants to expand our product line to other phone cases such as Samsung and Motorola, and eventually expanding to other products such as tablets. Phunk already has an untapped customer base of teenagers and young adults that enjoy listening to music. The future of the speaker industry is moving in the direction of portability; this can be represented by the fact the 10 top selling speakers on Amazon in the month of may are all portable. This trend towards portable speakers is perfect for Phunk’s product.