marketing proposal prepared by: kortney bolton, kevin hirsh, michael schwab, tom sweeney

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