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PECULIARITIES OF DEVELOPING AN INVESTMENT PROJECT TO PROMOTE AN ENTERPRISE BRAND

Authors :
Iryna S. Shkura
Kristina A. Stozharova
Source :
Êvropejsʹkij Vektor Ekonomìčnogo Rozvitku, Vol 2, Iss 31, Pp 136-148 (2021)
Publication Year :
2021
Publisher :
Alfred Nobel University Publisher, 2021.

Abstract

The article discusses the main features of the development of an investment project to promote the brand of an enterprise. The purpose of any investment is to increase capital. Many companies are wary of investing heavily in promotion, as there is a high risk that the promotion will be ineffective. It is necessary to carry out a lot of preliminary work in order to analyze the economic benefits of investments, determine the term and size of deposits, take into account all the risks and calculate the company’s profitability. For this, investment projects are being developed to promote the brand. The main features of such investment projects are: – research of the effectiveness of the company’s efforts using marketing analysis methods; – the flexibility of the project, the ability to adapt it to changes in the external and internal environment without risks and losses; – the difficulty of predicting the real results of using certain marketing tools; – the need to test marketing activities in practice; – without big risks. To study the topic of the article in practice, a project was developed to promote the brand of LLP “Stoma-K”. LLP “Stoma-K” is a dental clinic that is currently unprofitable, but has great potential for development. The reasons for the negative financial results are a change in ownership, an outflow of material and labor resources, as well as the COVID-19 pandemic, due to which the clinic did not function for several months in 2020. The developed investment project will grow the company’s net profit through the implementation of certain marketing activities. To confirm the hypothesis and calculate the expected effect of marketing implementation, a test advertising campaign was carried out, which was financed from the personal funds of the head of the clinic. The ad campaign resulted in a 23% increase in monthly revenue and a 20% increase in dental workload. The implementation of the investment project predicts an increase in net profit from 100% in the first year to 20% annually, taking into account expenses. To implement the project in the first year of promotion, investment in the amount of 6 182.4 thousand tenge are required. According to calculations, the payback period of the project is 4 months. The developed investment project can be considered like effective, since even during the test period it showed positive results. Despite the fact that investment promotion projects are not widespread at present and are not yet widely considered in scientific papers, we predict that in the future their popularity will grow due to the growing importance of marketing in modern conditions. Such projects have some peculiarities, but their development and implementation are generally identical to other types of investment projects.

Details

Language :
English, Russian, Ukrainian
ISSN :
20745362
Volume :
2
Issue :
31
Database :
Directory of Open Access Journals
Journal :
Êvropejsʹkij Vektor Ekonomìčnogo Rozvitku
Publication Type :
Academic Journal
Accession number :
edsdoj.8b49d6c117a940f3bf663a2232f2d3cb
Document Type :
article
Full Text :
https://doi.org/10.32342/2074-5362-2021-2-31-11