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Marketing ProposalPrepared by:
Kortney Bolton, Kevin Hirsh,
Michael Schwab, Tom Sweeney
• Orange 21 is in Need for Expansion– US Sunglass Market is Saturated– Have Facilities for Expansion– US Economy is Struggling
• United Arab Emirates is Prospering
Marketing Manufacturing Finance Other Departments
Spy Optic Division Om Optical Division
Corporate Staff
Line Management
International Structure Based on Product Lines
• Name is Arabic for:– Superiority– All-Mighty
• Logo is Arabic Symbol for Om
• Targets Emirati Population – 95% of UAE
• Will be based in the United Arab Emirates
• Offers ultra-high fashion sunglasses
• Targets Emirate Market
• Relatively new market – 1971
• Great market potential
• Growing: Over 30,000 Construction Cranes are in Dubai – 25% of World’s Cranes
Economic Scenario:• Not Feeling Affects of
Global Recession• Opened $1.5 Billion
Hotel in September
Atlantis, The Palm, 2008
• Infrastructure• Free Trade Zones• Low Tariffs – 5%• Open to Foreign
Investment• Modernized Cities
• 350% Sales Increase on Sunglasses• Sunglass Sales Grossed Over
$500 Million in 2005• Hold World-Renowned
Fashion Weeks• Strong Base for
Expansion• Tourist Influx
Target Markets:
• Geographic– Abu Dhabi– Dubai
• Demographic– Emirati– High Fashion
Demand For Product• Sunglasses:
– Sunny Over 90% of Year
• Fashion:– Market is Fashion Rich– Large Disposable Income– Americanized Style– Ultra-High Fashion
Platinum البالتين • High End• $400 and Up
Gold الذهب • Middle End• $100 to $300
White أبيض• Snow Line• $100 to $300
Male and Female
Dubai• Deira City Center• Burjuman City Center• Mercato Mall
Abu Dhabi
• Capitay City Mall
• Marina Mall
• Abu Dhabi Mall
• Fashion Shows– Dubai Fashion Week
• Essa• HSY• Nili Zahar• Luxecouture
– Abu Dhabi Fashion Week• Albino• Milia M• Missoni• Maison Rabih Kayrouz
• Celebrities
• Events– Atlantis, The Palm
• Billboards
• Designed in California
• Web Site
• Based on Competition
• High Prices– Represent Quality– Status in UAE
• Multiple Lines Offer Different Prices
• Sunglass Hut• Other Designers:
– Dolce and Gabbana– Versace– Armani– Gucci– Ray Ban– Oakley
• Points of Parity– High Fashion– Premium Prices
• Differences– Focus on Sunglasses– Targeted toward
Arabic Population
Manufacturing Warehouse
Houston, TX, USA
Port of HoustonHouston, TX, USA
Jebel Ali TerminalJebel Ali, UAE
Dubai Importer/ CustomsJebel Ali, UAE
Foreign WarehouseMina Jabal Ali , UAE
RetailersAbu Dhabi, UAE
RetailersDubai, UAE
Truck
Ship- Maersk Line
Truck
Truck- E11
Gioia Tauro Terminal, Italy
Lens ProductionSan Diego, CA
Raw MaterialsUSA
Railroad
• Retailer: Solstice Sunglass Boutique
• Forwarding and Brokering:
Kuehne and Nagel
• Warehousing: Mina Jebel Ali– Bonded Warehouse– 24 miles from Dubai– 37 miles from Abu Dhabi
• Tariffs – 5%
• Taxes– No Income Tax or Sales Tax
• Free Trade Zones– 17 FTZs in UAE– Largest is Jebel Ali Free Zone
• Import Regulations– Business License
• Emirate
• Dubai Population: 1,241,000• Abu Dhabi Population: 1,463,000
– 1/3 Population of UAE (4,300,000)
• The 2 Cities are 63% of Total Population
• Sunglass Sales over $500 Million Annually• We Expect to Control at Least 0.5% of Sales
Within the First Year– $2,500,000 In Sales
• Goal is Control 1.9% by 2013 ($9,500,000)
Expect Sales to Surpass Expenses by the End of 2009
Break-Even Analysis
-$2,000,000
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
2009 2010 2011 2012 2013
Sales Expenses Profit
• Orange 21 is in need of world expansion• UAE is prospering and open to foreign
investment with limited Government Regulations• Orange 21 has the facilities for the project• Om Optical is marketed to appeal to consumers
in the Emirates• We expect to break-even in the first year and
make an annual of profit of $10 Million in 5 Years• UAE will be a perfect location for a regional
headquarters for further Middle East expansion