1. ADVENTUS INC.
Growth Roadmap

2. CURRENT STRATEGIC
POSITIONING
Focus: Operate today to accomplish long-term goals
High proposition across several markets
Consumer oriented manufacturing and development
process
Penetration and understanding through Yamaha’s
global expertise

3. PORTER’S ANALYSIS
As a sole entity, market entry will be challenging
Customer acceptance has been attained
No need for supplier dependence
Technology over price idea must be communicated
Cash flows must be strong for international growth

4. A STRATEGY FOR TOMORROW
Market penetration criteria
Use experience from Yamaha
International through internet and stores

5. OBSTACLES TO GROWTH
High degree of consumer education
Lack of useful marketing efforts
Minimal upgrade potential
Pricing gap
Little knowledge or equity build up for Adventus’
brand

6. GLOBAL DISTRIBUTION
Quality not quantity
Institutions over consumers
Spanish language R&D
Small-scale rollout

7. RECOMMENDATION
Develop content
Spanish version
Focus on institutional buyers
AOL model (free trial for consumers)
Distributed through schools
Sent to teachers
New instruments

8. ‘CONTENT IS KING’
Invest in growing library of songs
Include videos
Partner with well-known musicians

9. MARGINS
Premier Basic Bundle Music Cable ET Coach Keyboard
Price CAD $139.42 $77.42 $278.92 $38.67 $38.67 $209.17
Cost $10.56 $5.92 $105.04 $7.30 $3.53 $87.75
Margin 92.43% 92.35% 62.34% 81.12% 90.87% 58.05%

10. IMPLEMENTATION
Low cost to produce discs
Targeted recipients
High margins allow for low uptake rates

11. IMPLEMENTATION CONT.
Produce 5000 trial units @ approx. $5/unit
10 hour usage limit
Minimal investment in market research and shipping
Necessary to see 5% success rate to produce a profit

12. QUESTIONS?...