BVN Industries

Where the best quality, creates the best experience!

Victoria GalvinNisha AkalananaBrian Freeman

Introduction Approximately four years ago the three of us were

asked to take over this company. From there we went in rather blind with the

industry. We were unsure of the economy, and with little

experience in the industry of outdoor lighting and picture frames

We weighed all our options and with great experience in marketing, management, and finance we decided it was a step we were willing to take.

Introduction (cont.) We are happy to present our triumphs and

realizations over the past four years. It was a learning and growing experience for

all, but we truly believe you can not grow any further without learning as you go.

We are pleased with where are company is ranked in comparison to its competition, and we would love the opportunity to share with you our journey.

MarketingVictoria Galvin; CMO

Overview When first starting out BVN Industries

unanimously decided to focus on quality. While evaluating various companies

who seem to use quality well, we finalized our decisions.

We researched the top companies for product quality. Qualit

y

Apple

Nordstrom

Google

Amazon

Overview (cont.) Upon discussion we concluded that

although quality may raise price, we assume consumers would be willing to pay the price for a product that would last longer.

Some say higher customer satisfaction leads to higher customer loyalty, which in turn, will potentially lead to higher profits.

Areas of Concentration Target Markets- Tri-state Marketing Strategies

Advertising Research and Development

Pricing Strategies Company’s Long Term Plans Customer Impact

Target Market-Digital Photo Viewer We were looking to distribute the Digital Photo Viewer to

consumers between the ages of 16-20 and 25-40. We figured ages 16-20 are around the age to starting making

their own money, while also being interested in technology, and would be interested in buying our product.

The majority of consumers in the 25-40 range have now bought their own home, and have probably started to have their own family. This would give this age group more reason to have a product to display their family photos throughout their house, without having the bulky photo albums.

Although these were our target markets, we also saw consumers in the ages above 40. Though not a huge market due to the technology, this age group were interested in having a display of their family photos.

Target Market-Outdoor Light Fixture We wanted to focus on marketing our products to

younger home owners. We thought with the younger home owners, they

are likely to have kids as well host gatherings at their home. In this case you are more apt to be outside longer enjoying nice weather and so on.

We wanted families who were going to be spending a lot of time outside, with the reasoning that they would need more light fixtures than the average house.

Marketing Strategies In the following slide you will see we put

most of our advertising dollars in web marketing. After much research we decided newspaper and magazines were a dying sector of marketing.

Product 1  Q 1 Q 2 Q 3 Q 4 Q 5 Q 6 Q 7 Q 8 Q 9 Q 10 Q 11 Q 12 Q 13

Price 65 65 66 66 68 68 70 70 72 74 74 74 75Price Change 1 0 1 0 2 0 2 0 2 2 0 0 1

Quality 1.85 2.00 2.30 2.65 3.10 3.30 3.30 3.45 3.65 3.65 3.65 3.65 3.75News 6 3 0 0 0 0 0 0 0 0 0 0 0

Magazine 4 4 2 2 3 4 4 4 4 4 4 5 5

WWW 25,000 25,000 27,000 27,00027,00

0 27,000 27,000 27,000 27,000 30,000 33,000 33,000 33,000

Ad MessageQualityQuality QualityQualityQualit

y Quality Quality Quality Quality Quality Quality Quality QualitySales Forecast 6,000 6,250 9,000 6,650 7,650 8,000 10,700 8,661 12,000 11,900 8,000 10,000 10,000

Actual Sales 6,000 6,250 5,748 7,977 8,225 8,100 8,661 11,089 10,010 7,882 10,067 10,536 10,378Net Inventory -330 -811 2,502 525 -415 -1,545 2,089 -1,546 -1,725 4,018 1,451 415 1,887

                         

Product 2  Q 1 Q 2 Q 3 Q 4 Q 5 Q 6 Q 7 Q 8 Q 9 Q 10 Q 11 Q 12 Q 13

Price 50 50 51 51 53 53 55 55 57 58 62 62 63Price Change 3 0 1 0 2 0 2 0 2 1 4 0 1

Quality 3.65 4.00 4.30 4.40 4.60 4.80 4.80 4.95 5.10 5.10 5.25 5.25 5.35News 6 3 0 0 0 0 0 0 0 0 0 0 0

Magazine 4 4 2 1 2 3 3 3 3 4 4 5 5

WWW 25,000 25,000 27,000 27,00027,00

0 27,000 27,000 27,000 27,000 30,000 33,000 33,000 33,000

Ad MessageQualityQuality QualityQualityQualit

y Quality Quality Quality Quality Quality Quality Quality QualitySales Forecast 5,100 5,400 7,500 4,306 3,000 4,000 7,700 7,412 10,000 6,900 9,000 9,000 12,000

Actual Sales 5,100 5,400 5,394 4,306 3,000 4,000 7,412 7,188 6,399 6,701 8,083 10,917 8,000Net Inventory -55 -981 1,806 -2,346 -1,359 -2,751 88 -3,690 501 -2,345 2,417 -1,142 -110

                         

Company’s Long Term Plans Our company would like to branch out in the WWW marketing. We will

continue along doing a few ads in the magazine industry, while promoting ourselves mainly through web.

We will be planning an expansion in Q17 to accommodate our company to make various products within each category.

We will be making digital photo viewers of various sizes to meet the needs of the younger consumers.

We will also be making different styles of lighting fixtures so our loyal consumers will be able to purchase an item that best fits their lifestyle.

Along with WWW marketing, we will begin promoting at local home and garden shows with our light fixtures. As a company we have decided the popularity of these showcases will allow us to reach more of our target market.

Customer Preference As a whole we wanted to focus our

company on quality. I believe consumers wanted our products and were willing to pay the price due to our quality.

With quality we are able to guarantee our product, and stand behind our product with great pride.

Community Involvement We have recently partnered with Habitat for

Humanity to give outdoor fixtures and lighting to the houses built within our community.

We felt that this was important to give back to our community since they have helped us grow beyond what we could have imagined.

In Quarter 20, after our expansion we have plans to join with Boys and Girls Club of America to give various young adults the opportunity to have a successful career.

BVN Industries Presents the new Viking Outdoor Light Fixture

513.548.6852www.bvnindustries.com

BVNIndustries @BVNIndustries

Sources for Research & Development http://

money.cnn.com/magazines/fortune/mostadmired/2011/best_worst/best8.html

http://www.acrwebsite.org/topic.asp?artid=278

FinancialNisha Akalanana; CFO

Cash Flow

1 2 3 4

-1,000,000

-500,000

0

500,000

1,000,000

1,500,000

2,000,000

Net Cash BalanceShort-Term LoanEnd Cash Balance

Income

1 2 3 40

1,000,0002,000,0003,000,0004,000,0005,000,0006,000,000

Net Sales Mfg Cost of Goods Sold

Balance Sheet

1 2 3 40

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Total AssetsTotal LiabilitiesTotal Owner Equity

Product Sales vs. Net Income

1 2 3 4$0

$500,000$1,000,000$1,500,000$2,000,000$2,500,000$3,000,000

P1 SalesP2 SalesNet Income

ROA and Debt-Asset Ratio

1 2 3 40.0000

0.5000

1.0000

1.5000

2.0000

2.5000

Debt To Total AssetReturn On Total Asset

Cost Control Measures Raw Materials: Ordered according to our

forecasted sales for future quarters. Manufacturing: Labor: Hired enough for next quarter. Let

staff work overtime if understaffed. If overstaffed, laid off excess labor.

Warehouse: Built extra production units according to expected demand.

Marketing: Concentrated on web marketing.

Company Strengths Products: Quality Marketing: Web Based Marketing Personnel: Constantly Trained and

Improved Working Conditions

Areas of Improvement Products:

Quality to beat competition. Marketing:

Increased web presence. Personnel:

Increased workforce so that there was no overtime (which could lead to low productivity levels).

Future Operating Plan Concentrate in quality over quantity. Continue training workforce and

maintain manufacturing plant. Increase advertisement to reach larger

demography Invest company’s net profit. Pay off all mortgages and look at

possible expansion into a different market area.

Future BudgetYear 5 Year 6

Revenue 6, 200, 000 7, 600, 000Manufacturing Costs 3, 500, 000 4, 000, 000Selling and Administrative Exp.

300, 000 300, 000

Warehouse Exp. 50, 000 50, 000Other Exp. 20, 000 20, 000Expected Gross Profit 2, 330, 000 3, 230, 000

OperationsBrian Freeman; COO

Production Plan was to produce equal amount of both Average production for Digital Photo Viewer

Year 1-6,625, Year 2-7,888, Year 3-9,728 Year 4-9,363

Average productions of Outdoor light fixture Year 1-5,050, Year 2-4900, Year 3-8025Year 4-9275

Production cont. We wanted to have happy employees Spent on average for maintenance

Year 1 $5,537.50 Year 2-$4,737.50 Year 3- $7,387.75 Year $4-8,00

Only had to subcontract for one quarter On average cost to produce both products

Year 1-$42.41, Year 2-$43.39, Year 3-$42.53 Year 4-$43.41

Inventory Our original plan was to keep at least

1500 of each We switched to order as need for both

products Our finished good was on the go

For most of the quarters we should all the products we produced

Raw Material On average raw material available

Digital Photo viewer Year 1-7563, Year 2-9,793, Year 3-11,218,

Year 4- 12,937 Outdoor Light fixture

Year 1 5,800 Year 2-6,375 Year 3-11,300, Year 4-11,450

Raw Material cont. On average raw material ordered

Digital Photo viewers Year 1-5,675, Year 2-8,600, Year 3-10,188,

Year 4-8,500 Outdoor light fixture

Year 1-4,450, Year 2-5,500, Year 3-9,900 Year 4-10,000

Inventory Costs On average to order raw materials

Year 1-96,562.50 Year 2-211146.50 Year 3-178,827.50 Year 4-198,862.50

Increased warehouse size by 108 percent Went from 11,100 to 23,100

On average warehouse cost Year 1- 6,810, Year 2-2,658, Year 3-

4,618.67 Year 4-11,690.75

Workforce Our workforce doubled Did not have to lay many people off Our worker productivity increased

throughout the years Product one workers increased 4% Product two workers increased 4%

Workforce Costs On labor, quality and overhead on

average we spent Year 1-355,128 Year 2-490,738.25 Year 3-533,740 Year 4-0560,325.50

Workforce cont. On average spent on training

Year 1$-5,366.50 Year 2-$6,212.50, Year 3-$7,150 Year 4-$7,900

We wanted to have the most trained and skilled workers

Learned how to utilize workers better

Our Competitors Our direct competion was QAD Solutions Our indirect competion was JTM

Enterprise

Quality For the Digital Photo Viewer on average

we invested Year 1-2.20, Year 2-3.29 Year 3-3.65 Year

4-3.90 For the Outdoor light fixture on average

we invested Year 1-4.09, Year 2-4.78, Year 3-5.18 Year

4-5.50

Quality Cont.

1 2 3 4 5 6 7 80.00

1.00

2.00

3.00

4.00

5.00

6.00

Product 1Product 2

TEAMS

QUALITY IN DOLLARS

BVN IndustriesWe thank you for taking some time with

us today, and we hope you enjoyed learning about BVN Industries!

At this time we would like to offer up the opportunity to ask any questions.