BUSINESS REPORT

Business Report

Executive Summary

Cosmos ITL Group Middle East plans to enhance its UAE market share for one of its products; i.e. SHARP Plasmacluster® Air Purifiers, despite dealing with a diversified range of electronics but this plan is exclusively initiated to serve the potential market demand for this particular product only in light with the huge concerns and worries of H1N1 Virus Swine Flu across UAE residents and business owners in which this product helps in protecting the people and the environment from this virus and many other harmful airborne substances. To achieve this objective, we will increase revenues/sales and improve client post sale service, thus, reposition the company as the leading distributor and service provider for this category of products, hence, cross sell other products eventually through our gathered clientele database and serve the environment in the same time.

Our new marketing focus, made explicit in this plan and exclusive for the SHARP Plasmacluster® Air Purifiers in the UAE, renews our vision and strategic focus on adding value to our target market segments; i.e. homes, small and large business offices, hospitals, schools and universities in our local market. Our marketing challenge is to position our product and service offerings as the high-quality, high value-add to the health of the society, our goal is to achieve 100% increase in sales over the coming 5 years and 100% customer satisfaction, we believe that superior customer service leads to superior sales acheivement.

The sale price of SHARP Plasmacluster® Air Purifiers is AED 1,600 including AED 1,200 in total expenses (inclusive cost of goods, storage, variables & non-variables, utilities, overheads, etc..) and an AED 400 (25%) mark-up (Net profit), having the target audience prefer quality over value in addition to their health protection concern, we expect the audience won't perceive the price as too high.

Our demographic is mainly above average income individuals who care more about their family health and establishments that care about their people's health. After conducting a survey it was found that 93% of people and 81% of establishments do actually care about health. Four major competitors who sell similar products currently exist in the UAE with an equal market share of 25% each. We will be advertising the quality and features of our product. Our target is to achieve a market share of 50% in the next 5 years vs. our current market share of 25%. Our forecast is considering 100% increase in sales from AED 35.2 Mln (22,000 Units) per annum currently in 2009 to reach AED 70.4 Mln (44,000 Units) per annum by end of year 2014 (5 year forecast).

Our expected market share will grow most rapidly in the first two years (growth and maturity stage) then stabilize after 5 years. Our promotion strategy includes: mails/emails campaigns, creating direct sales force, introduce sales commissions to motivate staff, media advertisements, website advertisements, sponsorship and affiliation.

Quality is our primary concern so we will be implementing quality control systems including: audits, documentation and meeting UAE regulatory ...