Adventus 1

ADVENTUS INC.Growth Roadmap

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

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

A STRATEGY FOR TOMORROW

Market penetration criteria

Use experience from Yamaha

International through internet and stores

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

GLOBAL DISTRIBUTION

Quality not quantity

Institutions over consumers

Spanish language R&D

Small-scale rollout

RECOMMENDATION

Develop content

Spanish version

Focus on institutional buyers

AOL model (free trial for consumers)

Distributed through schools

Sent to teachers

New instruments

‘CONTENT IS KING’

Invest in growing library of songs

Include videos

Partner with well-known musicians

MARGINS

Premier Basic Bundle Music Cable ET Coach KeyboardPrice CADCostMargin

$139.42 $77.42 $278.92 $38.67 $38.67 $209.17$10.56 $5.92 $105.04 $7.30 $3.53 $87.7592.43% 92.35% 62.34% 81.12% 90.87% 58.05%

IMPLEMENTATION

Low cost to produce discs

Targeted recipients

High margins allow for low uptake rates

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

QUESTIONS?...