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Marketing Proposal Prepared 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.
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Marketing Proposal Prepared 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
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 البلاتين 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
Lens Production San Diego, CA Raw Materials USA Railroad Manufacturing Warehouse Houston, TX, USA Truck Port of Houston Houston, TX, USA Ship- Maersk Line Gioia Tauro Terminal, Italy Dubai Importer/ Customs Jebel Ali, UAE Jebel Ali Terminal Jebel Ali, UAE Truck Foreign Warehouse Mina Jabal Ali , UAE Truck- E11 Retailers Dubai, UAE Retailers Abu Dhabi, UAE
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)
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