More on Bark Group, Inc. (OTCBB: BKPG) – Our Newest Profile
Bark Group, Inc. (OTCBB: BKPG)
Dear Members:
Here is a more on our latest profile, Bark Group, Inc. Like I said in my first notice of this profile, I see a value story here that is very strong. I am going to detail that later today. First – let’s watch this one closely today!
Any Questions, feel free to ask… Below is our Profile
Thank you,
John Pentony
Publisher, StockGuru.com
Bark Group, Inc. (OTCBB: BKPG)
Bark Group Inc. (OTCBB: BKPG)
Bark Group strives to develop and deliver effective marketing campaigns on strategic, emotional and creative levels to its clients. These campaigns seamlessly integrate classic and digital media as well as viral and other forms of communication. Its integrated approach is offering clients a possible higher return on their advertising investments. Even though Bark is a US based company, Bark has roots in the Scandinavian region of Europe.
2012 Revenue Forecast: Acquired vs. Organic
By leveraging the Company’s resources and dynamic strategy, Bark’s acquisitions will drive exponential organic growth, ramping Bark past $150M in total revenue for 2012.
Large Addressable Market: Rebounding
While U.S. Internet advertising revenues declined in 2009, Q4 of ’09 hit a record high of $6.3B, a 2.6% year-over-year increase and a 14% increase over Q3 of ’09.
Digital Unit
Bark Copenhagen’s digital unit is in the initial process of “developing” a range of digital seminars, in order to showcase their own ‐ techniques as to how additional profit/ROI can be derived from more effective and efficient digital campaigns. Our research, (undertaken by the use of proprietary tools) shows us, that there is significant room for improvement and it is this knowledge that we want to share with the companies that will be invited during the seminars.
Going Digital
Based on industry data from PwC from ’05-’09 in five key U.S. ad supported media: TV, Radio, Newspaper, Consumer Magazines & Internet, the Internet’s share of combined ad revenue grew from 8% -17%.
New Media Continues to Flourish
Display-related advertising – which includes display ads, rich media, digital video and sponsorship – totaled nearly $8.0B in 2009, showing an increase of 4% from 2008 to 2009.
One component of display-related advertising, digital video, continues to experience robust growth, with an almost 39% increase from 2008 to 2009.
Integration of Skills
Bark seamlessly integrates the three most important facets in the development of communication today:
- Digital
- Creative
- Media
Many of the old networks have allowed media and creative to become dislocated and digital is often an afterthought.
Bark will bring these three critical disciplines together under one roof as integrated and equal parts of the communications process.
Replicable Business Concept
In order to maintain brand strength and increase market position, it is vital that Bark acquisition candidates possess the capabilities exhibited by their parent: production of TV commercials, dissemination of viral films, product placement, development of commercial TV formats & provision of rich media content.
- Top ten in local market; cutting edge strategy
- Robust digital platform, content & mobile solutions
- Top five in local market; traditional and new media consulting
Mindmetic Collaboration
Bark collaborates with Mindmetic, a mind research company that is developing neuro-marketing research methods. Mindmetic studies and develops methods for interpreting and decoding conscious and subconscious human emotions that arise when people are subjected to different messages. Bark will hopefully soon leverage this research and use it in its marketing campaigns, giving it a scientific edge on the competition, and further ensuring the efficacy and success of its campaigns.
Bark Copenhagen Flagship Operation
The “formula” behind repositioning Bark Copenhagen (f.k.a. Living Brands) is concise, straight forward and most importantly, replicable.
Bark will implement the following 5-step transformation strategy across all future acquisitions:
- Assess existing financial performance; align agency objectives with management
- Revitalize existing strategy and formulate action plan
- New investment in creative resources
- Workflow optimization; integration of best practices
- Evaluate, define and monitor Key performance indicators
Bark Clients
- Grand Marnier – Alcoholic Beverages
- Coop – Leading Danish Consumer Retailer
- Dogblader Borsen – Leading Danish Financial Newspaper
- SimCorp – Financial Software Provider
- Waterfront Shopping – Retail Outlet
- Ro’s Torv – Retail Outlet
- Jogermeister – Alcholic Beverages
Growth Strategy:
Intelligent Acquisition Drives Growth
Bark’s objective is to use its proceeds to achieve growth through acquisitions and development of media and advertising agencies in Europe and the US.
- Bark Group Inc. operates as a diversified, commercial communication services company throughout Europe.
- Through its subsidiaries, Bark provides integrated traditional and new media advertising and marketing consulting services to its clients.
- Through its various subsidiaries Bark merges its communication expertise inclusive of traditional advertising (creativity and strategy), media consulting, digital know- how and television production.
- This strategy allows Bark to customize advertising campaigns and marketing communication services in order to create maximum value for their clients.
By carefully identifying, structuring and acquiring mid-size companies with concealed potential, Bark is able to orchestrate inexpensive transactions, by allowing the seller to participate in any realized upside
Basic Acquisition Criteria:
- Companies operating within traditional media, advertising and digital arenas
- Intrinsic, but unrealized maximum potential
- Proven track record of continuous profitability (3+ years)
- Key personnel motivated to stay on – long-term
- Strong local ranking in well-established market
- Strong, dynamic skill sets
- Collaborative mindset
Acquisition Pipeline
Bark Copenhagen, H/Q
Acquired Q2 ‘07
Anaconda GmbH
Acquired Q1 ‘10
Tre Kronor Media AB
Acquired Q2 ‘10
Bark Norway
Targeted completion Q3 ‘10
Bark Italy
Targeted completion Q4 ‘10
Bark France
Targeted completion Q1 ‘11
Bark Spain
Targeted completion Q1 ‘11
Bark Poland
Targeted completion Q3 ’11
Bark Holland
Targeted completion Q1 ’12
Bark Czech Republic
Targeted completion Q2 ’12
Situation Analysis: European Consolidation
- Acquisition costs are at historical lows – independent operations in particular
- Established networks amidst the process of launching innovative operations in order to adapt to the current market environment
- Advertisers have refocused concentration to partnering with agencies attentive to ROI and versatile media exposure
- Digitally-oriented operations less adversely affected by looming global slow-down
- Recent trends suggest European consolidation in the Advertising and Media space is expected to ramp over the next 18 months
Bark Timeline
- Company Established- August 2006
- Living Brands acquired; converted to Bark Copenhagen – April 2007
- Bark completes RTO, begins trading as OTCBB: BKPG – March 2009
- Bark completes 1:20 reverse split – August 2009
- Bark acquires Anaconda GmbH – March 2010
- Bark acquires Tre Kronor Media AB – May 2010
Bark Significant Accomplishments and Business Milestones
- Proven high quality of work – Bark has been nominated and won awards for its campaigns and has achieved recognition for its business model.
- Bark’s approach to communications integrates three communications fields in one, giving clients a turn-key solution for marketing.
- Scientific edge – Bark has partnered with mindmetic to leverage innovative research that gives insight into conscious and subconscious effects of messages on the human mind; Bark intends to use this insight to improve the efficacy of its campaigns in the near future.
- Strong and highly experienced management team with many years of international experience.
- Managers are shareholders: Therefore, their interest is aligned with those of other shareholders as management holds a vested interest in the company themselves.
- Ambitious, yet achievable vision: Bark intends to be ranked among the best communications companies within four years.
- Aggressive growth strategy – Bark plans on having 14 offices throughout Europe and the US within a few years.
- Current economic environment could be favorable for Bark’s aggressive acquisitions strategy, reducing acquisition costs while markets are near the bottom of the economic cycle.
- International Client List – Bark’s clients include large and small companies representing a wide range of brands and industries.
Management Team
Bent Helvang – Chairman, Bark Group, Inc.
Bent Helvang is a co–founder of Bark Group Inc., and formerly a part owner and CEO of one of the leading Danish TV stations, “Kanal Denmark” later called TV Denmark Kanal 60 A/S. In addition, Mr Helving previously held a board seat of a NASDAQ listed media company, SBS, in 1990. Mr. Helvang is a specialist in developing editorial TV formats as well as commercial formats for international television.
Anders Hageskov – CEO, Bark Group Inc.
Anders Hageskov has been a part of the Scandinavian and European advertising and communication industry for more than 18 years. Throughout his tenure he has held several leadership positions as director within the multinational advertising networks BBDO, Young & Rubicam and McCann.
In addition, having lived and worked in several European countries, Mr. Hageskov conducted a cross border expansion initiative for the Scandinavian advertising company Republica. Mr. Hageskov is a highly recognized individual within the international advertising community.
Peter Brockdorff – CEO, Bark Copenhagen
Peter Brockdorff has spent the last 18 years in the advertising and media industry. Initially, Mr. Brockdorff worked as a sales executive at the TV station network, SBS, followed by six years as Managing Director of Leo Burnett’s Demark media company, Starcom. From Leo Burnett, Mr. Brockdorff went on to set up a new strategically focused advertising agency – Living brands. Sustaining profitability since inception, Living Brands grew from two to 16 FTEs in four years while building a strong market reputation and a significant client roster.
Mr. Brockdorff is known for and acknowledged by major advertisers as a highly innovative thinker and as an individual who identifies opportunities instead of barriers. Mr. Brockdorff holds a Master of Business Administration (MBA) from Henley in the UK.
Bark Group Inc. (OTCBB: BKPG)
Founded in 2005
HQ: Copenhagen, Denmark
Certain statements in this document constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Bark Group, Inc. “Bark” or “the Company”, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. The Company’s future operating results are dependent upon many factors, including but not limited to the Company’s ability to: i obtain sufficient capital or a strategic business arrangement to fund its plan of operations when needed; ii build the management and human resources and infrastructure necessary to support the growth of its business; iii competitive factors and developments beyond the Company’s control; and iv other risk factors discussed in the Company’s periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov.
Pentony Enterprises LLC is STOCKGURU.COM. 10604 Robincreek Lane; Frisco, Texas 75035. (469) 252-3030. Disclosure: Pentony Enterprises LLC was be compensated twelve thousand dollars for profile coverage from a non-controlling third party. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.
