Grant Proposal for New Venture The Villanova Calendar Company March 16, 2005

Organizational Chart Michael Bieselin Lead Entrepreneur/CEO Daniel Duca CFO Wayne Sangster VP – Accounting Robert Nydick CMO Rory Verducci VP – Marketing Travis McMenimom VP – Marketing Megan Williams CPO Adam Siegrist VP- Productions

Mission Statement To provide a resourceful and informational product that can be widely used by the Villanova Community

The Product Text  14 month, academic, wall calendar with option to tailor-make calendar - Months on lower half - Pictures on upper half  Functionality component & affinity component…goal is to produce a product that has an intrinsic value beyond the run-of-the-mill calendar  Also…possibility of poster-calendar - More appealing…can be thought of as art - Reduce production costs & lead time

Target Market Segments to be Served  Villanova Students (on campus) Faculty and Staff (on campus) Alumni (newsletter and website) Incoming students and their families (Candidates Day)

Revenue Streams  Individual Sales  Group Sales  Consignment Sale to Villanova Shop

Marketing Research  A high percentage of students at Villanova do not currently have a print version of the academic calendar  A high percentage of students have wall space in their rooms that they would like to fill  Students would like to see pictures of Villanova Campus scenes and Villanova Students

Competition  University Shop  Calendar Websites - Shutterfly.com - Snapfish.com  Villanova Website

Positioning Strategy  We are the only company of this sort in the Villanova Community -No other group within the University offers a product like ours that has both aesthetic and practical value.  Mid to High End Calendar Market  Provide a product that cannot be obtained elsewhere.

Channel Decisions  Website  Consignment agreement with the University Shop  Individual sales  Balloon Day  Early Action Candidates Day  Sales Table in high traffic locations

Pricing Strategy  $14.99 Wall Calendar  Shutterfly.com - $18.99  Snapfish.com - $19.99  $7.99 Poster Style Calendar

Sales and Promotion Strategy  When selling to Faculty and Departments: -Buy 15 get 2 free  When selling to Students: -Buy 2 for $24.99  Sales tables in recognizable places  Posters/Flyers on campus with information  Word of mouth

Customer Service Program  We do not plan to offer extensive customer service - Defective products will be replaced. - Cases will be handled on a case by case basis.

Operation Production Plan  PDQ Printing based in Norristown, PA.  PDQ will design the layout and produce a 14-month calendar with academic dates and pictures of Villanova University.  Total production time of 500 calendars will be 2 weeks.

Distribution Logistics  Personal Selling to Faculty, Staff, Alumni, Students, Friends and Family  On Campus- Booths at the Oreo and the Atrium in Bartley  Candidates Day on April 16, 2005  Balloon Day

Financial Controls  When orders come in, Wayne will distribute them equally among members and they will be responsible for either giving the Calendars back or the money - If a member needs more calendars they will have to come back to Wayne and then he needs to decide whether more needs to be ordered or take from another member  There will be a weekly log kept of how much each member sells and how many calendars are remaining  Access to Account: - Dan Duca - CFO - Mike Bieselin - Lead Entrepreneur - Wayne Sangster - VP of Accounting  Use Quickbooks for Records

Sales Forecast Month 1Avg. PriceQuantityMixSales Var. Cost %Var. Cost Contr. Mar gin Calendar$ %$7,49529%$2,175$5,320 Total %$7,49529%$2,175$5,320

Price/Volume Variance Price Variance (Month 1) Low FlexibleOriginal StaticHigh Flexible # of Units Sold 500 Avg. Price$10.00$14.99$19.99 Sales Revenue$5,000$7,495$9,995 Percent Change -33%0%33% Volume Variance(Month 1) Low FlexibleOriginal StaticHigh Flexible # of Units Sold ,000 Avg. Price $14.99 Sales Revenue$3,748$7,495$14,990 Percent Change -50%0%100%

Cash Flow Budget Week 0Week 1Week 2Week 3Week 4Total Beginning Cash Balance 2,500$75$1,174$4,147$6,371 Cash Inflows (Income): Sales & Receipts 01,1242,9982,249$1,1247,495 Total Cash Inflows $0$1,124$2,998$2,249$1,124$7,495 Available Cash Balance $2,500$1,199$4,172$6,396$7,495 Cash Outflows (Expenses): Advertising Inventory Purchases 2, Misc Subtotal $2,425$25 $0$2,500 Other Cash Out Flows: Other: Subtotal $0 Total Cash Outflows $2,425$25 $0$2,500 Ending Cash Balance $75$1,174$4,147$6,371$7,495

Break Even Analysis USP = Unit Sales Price$14.99 UVC = Unit Variable Costs$4.35 TFC = Total Fixed Costs $ #units = Total Cost $ 2, Unit Sales Price $ Answer(Break Even Point): # units = 167

Financing Needs  We are Requesting $2,500 - $2,175 for Inventory Purchases - $325 for Initial Marketing Expense - $50 for Website

Return on Investment  Return on Sales - Net Income / Sales = 4,995 / 7,495 = 67%  Return on Investments - (Sales / Total Assets) * (Net Income / Sales) = (7,495 / 2,175) * (4,995 / 7,495) = 230%

Milestone Dates  March 18, Pictures chosen for calendar  March 23, Layout design given to printer  April 6, Payment to printer upon receiving product  April 7, 2005 Selling begins

Additional Resources  Marketing Budget to increase as revenue comes in  Additional calendars will be ordered to match demand with revenue from sales  Working with printer on layout  Acquiring space necessary on campus to sell product

Potential Obstacles  Not enough interest - Break-even point is low - Additional funding for marketing  Significant issues with printing - Multiple printing options - Switching to poster - Additional product ideas

Questions