BVN Industries
Where the best quality, creates the
best experience!
Victoria Galvin
Nisha Akalanana
Brian 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.
Marketing
Victoria 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
quality.
Apple
Amazon
Nordstrom
Google
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.
Price
Price Change
Quality
News
Magazine
Q1
Q2
65
65
1
0
1.85 2.00
6
3
4
4
WWW 25,000 25,000
Qualit Qualit
Ad Message
y
y
Sales Forecast 6,000 6,250
Actual Sales 6,000 6,250
Net Inventory -330 -811
Price
Price Change
Quality
News
Magazine
Q1
Q2
50
50
3
0
3.65 4.00
6
3
4
4
WWW 25,000 25,000
Qualit Qualit
Ad Message
y
y
Sales Forecast 5,100 5,400
Actual Sales 5,100 5,400
Net Inventory
-55 -981
Product 1
Q3
Q4 Q5
Q6
66
66
68
68
1
0
2
0
2.30 2.65 3.10
3.30
0
0
0
0
2
2
3
4
27,00
27,000 27,000
0 27,000
Qualit Qualit
Quality
y
y Quality
9,000 6,650 7,650 8,000
5,748 7,977 8,225 8,100
2,502
525 -415 -1,545
Product 2
Q3
Q4 Q5
Q6
51
51
53
53
1
0
2
0
4.30 4.40 4.60
4.80
0
0
0
0
2
1
2
3
27,00
27,000 27,000
0 27,000
Qualit Qualit
Quality
y
y Quality
7,500 4,306 3,000 4,000
5,394 4,306 3,000 4,000
1,806 -2,346 -1,359 -2,751
Q7
70
2
3.30
0
4
Q8
70
0
3.45
0
4
Q9
Q 10 Q 11 Q 12 Q 13
72
74
74
74
75
2
2
0
0
1
3.65
3.65
3.65
3.65
3.75
0
0
0
0
0
4
4
4
5
5
27,000 27,000 27,000 30,000 33,000 33,000 33,000
Quality
10,700
8,661
2,089
Quality
8,661
11,089
-1,546
Q7
55
2
4.80
0
3
Q8
55
0
4.95
0
3
Quality
12,000
10,010
-1,725
Quality
11,900
7,882
4,018
Quality Quality Quality
8,000 10,000 10,000
10,067 10,536 10,378
1,451
415 1,887
Q9
Q 10 Q 11 Q 12 Q 13
57
58
62
62
63
2
1
4
0
1
5.10
5.10
5.25
5.25
5.35
0
0
0
0
0
3
4
4
5
5
27,000 27,000 27,000 30,000 33,000 33,000 33,000
Quality
7,700
7,412
88
Quality Quality Quality
7,412 10,000 6,900
7,188 6,399 6,701
-3,690
501 -2,345
Quality
9,000
8,083
2,417
Quality Quality
9,000 12,000
10,917 8,000
-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.
Presents the new Viking Outdoor Light Fixture
513.548.6852
www.bvnindustries.com

BVNIndustries
@BVNIndustries
Sources for Research &
Development
 http://money.cnn.com/magazines/fortun
e/mostadmired/2011/best_worst/best8.ht
ml
 http://www.acrwebsite.org/topic.asp?arti
d=278
Financial
Nisha Akalanana; CFO
Cash Flow
2,000,000
1,500,000
Net Cash
Balance
Short-Term Loan
1,000,000
500,000
0
-500,000
-1,000,000
1
2
3
4
End Cash
Balance
Income
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
1
Net Sales
2 Mfg Cost of3 Goods Sold 4
Balance Sheet
12,000,000
10,000,000
8,000,000
Total Assets
Total Liabilities
6,000,000
Total Owner Equity
4,000,000
2,000,000
0
1
2
3
4
Product Sales vs. Net Income
$3,000,000
$2,500,000
$2,000,000
P1 Sales
$1,500,000
P2 Sales
$1,000,000
Net Income
$500,000
$0
1
2
3
4
ROA and Debt-Asset Ratio
2.5000
2.0000
1.5000
Debt To Total Asset
Return On Total Asset
1.0000
0.5000
0.0000
1
2
3
4
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 Budget
Year 5
Year 6
Revenue
6, 200, 000
7, 600, 000
Manufacturing Costs
3, 500, 000
4, 000, 000
300, 000
300, 000
Warehouse Exp.
50, 000
50, 000
Other Exp.
20, 000
20, 000
2, 330, 000
3, 230, 000
Selling and
Administrative Exp.
Expected Gross Profit
Operations
Brian 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 3-8025
Year 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-$43.41
Inventory
 Our
original plan was to keep at least
1500 of each
 We switched to order as need for both
products
 Our finished good was on the go

For most of the quarters we should all the
products we produced
Raw Material
 On

average raw material available
Digital Photo viewer
 Year
1-7563, Year 2-9,793, Year 3-11,218, Year
4- 12,937

Outdoor Light fixture
Year 1 5,800 Year 2-6,375 Year 3-11,300, Year
4-11,450
Raw Material cont.
 On

average raw material ordered
Digital Photo viewers
 Year
1-5,675, Year 2-8,600, Year 3-10,188, Year
4-8,500

Outdoor light fixture
 Year
1-4,450, Year 2-5,500, Year 3-9,900 Year
4-10,000
Inventory Costs
 On

average to order raw materials
Year 1-96,562.50 Year 2-211146.50
Year 3-178,827.50 Year 4-198,862.50
 Increased

Went from 11,100 to 23,100
 On

warehouse size by 108 percent
average warehouse cost
Year 1- 6,810, Year 2-2,658, Year 3-4,618.67
Year 4-11,690.75
Workforce
 Our
workforce doubled
 Did not have to lay many people off
 Our worker productivity increased
throughout the years


Product one workers increased 4%
Product two workers increased 4%
Workforce Costs
 On
labor, quality and overhead on
average we spent

Year 1-355,128 Year 2-490,738.25
Year 3-533,740 Year 4-0560,325.50
Workforce cont.
 On

average spent on training
Year 1$-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 43.90
 For
the Outdoor light fixture on average
we invested

Year 1-4.09, Year 2-4.78, Year 3-5.18 Year 45.50
Quality Cont.
6.00
Q
U
A
L
I
T
Y
5.00
I
N
4.00
D
O
L
L
A
R
S
3.00
Product 1
Product 2
2.00
1.00
0.00
1
2
3
4
5
TEAMS
6
7
8
We 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.