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2


Contents
1. Executive Summary ...................................................................................................................................... 3
2. Situation Analysis ......................................................................................................................................... 4
2.1 PESTEL ANALYSIS .................................................................................................................................... 4
2.2 Porter's Five Forces Analysis Soft Drink Industry ................................................................................ 6
3. The Product Summary.................................................................................................................................. 7
3.1 Product Characteristics: ......................................................................................................................... 7
3.1.1 Packaging & Product Contents: ...................................................................................................... 7
3.1.2 Labeling: .......................................................................................................................................... 8
3.2 The Value Proposition for Phoenix Power (P2) ...................................................................................... 9
3.3 Kotlers 5 Product Levels Model: ......................................................................................................... 11
4. The Market Summary ................................................................................................................................ 12
4.1 Evidence of Primary & Secondary Research: ....................................................................................... 12
4.2 Competition ......................................................................................................................................... 14
4.3 Criteria for segmentation and target market selection. ...................................................................... 15
4.3.1 Segmentation Criteria: .................................................................................................................. 15
4.3.2 Segmentation Analysis .................................................................................................................. 16
5. The Marketing Strategy.............................................................................................................................. 17
5.1 Branding Strategy:................................................................................................................................ 17
5.1.2 Brand TAGLINE: ............................................................................................................................. 18
5.1.3 Brand SLOGAN: ............................................................................................................................. 18
5.1.4 Brand Promise (extension of the Value Proposition) ................................................................... 18
5.2 Distribution and Channel Strategy: ...................................................................................................... 19
5.3 Marketing Communication and Advertising strategy: ......................................................................... 21
5.4 Advertising: .......................................................................................................................................... 22
5.5 Digital Media Advertising: Free & Effective ......................................................................................... 23
6. The Financial Strategy ................................................................................................................................ 24
References ..................................................................................................................................................... 25



3

1. Executive Summary

The model below gives a quick synopsis of the product, market research conducted and a brief glimpse at
the branding & communications strategy.












Phoenix
Power
Market
Research
Product
Summary
Advertising
Marketing
& Branding
Strategy
A Power
drink
100% Natural
Made of
Pomegranate
and Honey
Brand Tagline
Symbol of Re-
Generation
Brand Slogan
Harness The
Power of
Nature
Brand Promise
Three No
Strategy
Primary & Secondary Research
Surveys/Questionnaire
Interviews with Industry Experts
Online Derived Information
Triathlons
Outdoor Signage
Radio Commercials
4

2. Situation Analysis

Due to raising health issues in the UAE, the companies are trying to reduce the sugar content of the juices.
Even the fresh juices contain sugar. UAE government has already prohibited the sales of carbonated drinks
and juices with sugar content in the schools. Lacnor lost shares due to these regulations along with many
other companies like Pepsi, Cola. The market for fresh juices increased 6-7% since 2011.
However there is another concern with fresh juices that they perish easily due to UAEs weather
conditions. The other global concerns which affect the UAE market are the preservatives that are being
used in the long-life juices (E226, E225 etc.). These preservatives are believed to be harmful for human
health, especially for people who are intolerant to sulfites. Although it has been banned in some countries
like Australia, New Zealand, the UAE is still not one of them. (Euromonitor, 2013)
Companies are trying to increase the shelf-life by producing Tetra Pack fruit juices however the production
quantity is higher on fresh juices and the fresh juice market is constantly growing due to health
awareness, changing life style and the recent economic growth in the UAE.
2.1 PESTEL ANALYSIS



Political The UAE government is reacting fast to public concern however companies
well-being is also important for them due to countrys structure.
Food and Drug Administration (FDA) Regulation
Environmental Our product is 100% recyclable, as a way to target the environmental concerns,
we are planning to dispose the waste pomegranate skin to local zoos and animal farms.
The bottle is made from 100% recyclable material.
Social Cultural Educated parents prefer natural products for their children. Changing lifestyle
and increased number of diseases are forcing people to go for juices without
preservatives and E-products.
About one-third of UAE residents are considered obese and studies have
speculated a link between soft drink consumption and obesity
Dieting has become a very marketable, popular trend which forces the soft
drink industry to create new products that meet consumer preferences
Social Media:
5

Social media outlets (i.e. Facebook, Twitter, Instagram) keep
consumers directly connected to the brand
Firms are able to obtain valuable information and suggestions from
consumers about potential or current new products
Low advertising costs with global outreach
Technological There is a high cost in investments in production technology including high
speed packaging, cooling machines, bacteria testing equipment.
Automation:
New tech advancement in manufacturing and quality improvement
concepts are improving bottling operations efficiency
High product volume requires high levels of automation in
manufacturing. Technological advances increase the utility of employees and capital,
which increases productivity
Economic The soft drink industry experiences market shocks in periods of recession
The industry is expected to take a positive turn with an expansion of 27% by
2015; the highest increase since 2008
Consumers of soft drinks have continued to spend their money frugally over
the past few years following the 2010 recession
UAEs economic condition is booming again. This is affecting the population,
with relatively higher incomes, spending are also getting higher and choices are
becoming healthier.
Legal As the law dictates that we must provide nutritional information of the product
to the customer, we had made a thorough analysis of the nutritional requirement for
the children, and included this information in a clear label on the bottle.
Due to increased obesity and diabetics it is not allowed to sell sugar based soft
drinks in the schools anymore. Phoenix Power has no artificial sugar added.

(Source : http://blog.euromonitor.com/2013/03/could-sports-drinks-be-the-gulfs-choice-of-a-new-
generation.html , 12
th
March 2013)










6


2.2 Porter's Five Forces Analysis Soft Drink Industry

Bargaining Power of Buyers Bargaining Power of Suppliers

Fruit juice markets amount is huge, however there
are many players, customers can switch any time. It
is not easy to keep the customer.
Buyers can reach any information they need.
Customers are sensitive to price changes. However
fresh juices are still preferable by the parents
regardless their price.


The main ingredient is imported from India
(pomegranate). The supplier has high power since
there are many fruit juice producers and not much
fruit supplier

Threat of New Entrants Threat of Substitutes

High cost can be a barrier to entry to new
competitors.

If the entrants were already in the market it would
take them maximum six months to catch up with
our product since they already invested in the
machinery.
There is a high capital requirement for the
machines and testing equipment. However there is
not a high profit and customer loyalty is hard to
establish.


Substitutes are acidic soft drinks and long-life juices
along with milk and flavored water.

Within the UAE acidic soft drinks and long-life juices
lost market share due to health regulations
however consumption is still higher than the fresh
juices.

Rivalry Among Existing Players

The industry is growing rapidly, however the market is still smaller than the long-life juices.
The competition is fierce; many of the companies are not able to compete with price deduction.
Advertising is one of the highest expenses; however it would help to create a powerful competitive
strategy



7


3. The Product Summary
3.1 Product Characteristics:
3.1.1 Packaging & Product Contents:

Phoenix Power is an amalgamation of Pomegranate (which is natures highest source of vitamin C,
Anti-Oxidants, minerals, and surprisingly a large quantity of calcium and iron for a fruit.
The bottle shall be retailed in a 200ml 100% recyclable plastic PET (Polyethylene terephthalate)
bottle which is BPA free (Bisphenol A)to prevent hormone disruption in children who drink from PET
bottles which contain BPA.

It is a mixture of 100% natural pomegranate juice (not extract) and honey suspensions.
Also, the drink has a cape with a graphic display of bursting pomegranates to display the natural
POWER of soft drinks and also a play on the SUPERHERO element which children aspire to in their
growing years.

8

It meet the daily calorific requirement for a child from a fruit (200 KCAL), when the total daily
need for this age group is 1700-2000 KCAL. (Source: http://www.mayoclinic.com/health/fruit-
juice/AN01631)
3.1.2 Labeling:

With reference to the label above, Phoenix Power has a 6 months shelf value, and uses no artificial
preservatives; it relies on the preservative powers of honey and natural preservatives (White Mustard
Essential Oil) only.
Phoenix Power does not have artificial stimulants like caffeine and tannic acid which all power drinks in
the market like Mountain Dew & Red Bull contain to give a temporary euphoric sense of power. Phoenix
Power on the other hand, plays on the term HARNESS THE POWER OF NATURE and simply uses natures
most POWERFUL ingredients to make a children-friendly POWER BOOSTER.
Also Phoenix Power has no artificial sweeteners like refined chemical sugars. That way, it meets UAE
Statutory Regulations of adding no sugars to foods meant to target children. Research shows the rising
levels of diabetes in the Arab world amongst whom UAE residents are badly afflicted. Juvenile Diabetes
accounts for nearly 25% of rising diseases amongst the youth in Dubai and as marketers; this concern
needs to be addressed when targeting children and their parents.
The bottle for Phoenix Power is 100% recyclable and made of natural fibers which will not adversely affect
the environment. The waste material (i.e. the discarded pomegranate skins) will be sent as animal feed to
animal farms, zoos etc. this is a CSR initiative taken by Phoenix Power since the product does not pollute
the environment and simultaneously gives back to nature.
Here again, we play on the concept of Re-Generation wherein we follow the chain of Ashes to Ashes,
Dust to Dust. This means we have sourced from nature and at the end of the value chain; it again goes
back to nature. This is further elaborated by the idea that the Phoenix is a mythological bird which arises
FROM THE ASHES and is also a symbol of Re- Generation.
9




3.2 The Value Proposition for Phoenix Power (P2)



As per Daniel Bursteins model of Customer Value Proposition (CVP) above, there are three stages of
analyzing value proposition, and with relevance to Phoenix Power, they are as follows :

1. Primary Value Proposition
Phoenix Power needs a primary value proposition, which is the answer to the question: Why should our
Actual customer buy from us rather than any other competitor?
The reasons are enumerated below:
a. No such natural power drink exists in the market
b. Boost energy of kids
c. Natural power booster
10

These values are held for an existing customer who had already made a purchase and can expect these
basic promises from the drink. This hold an assumption that post sale, these values will be met as
promised and will hold value in the eyes of the buyer.


2. Prospect Value Proposition
Why should your prospective/potential customer buy from you rather than any of your competitors?
The reasons are enumerated below:
a. No artificial sweeteners : uses only natural fruit extracts of pomegranate and Honey
b. No artificial preservatives: only honey and natural preservatives : honey used as natural
sweetener and power booster, and includes high nutritional elements
c. No artificial stimulants: Harness the POWER OF NATURE

These values are important for a prospective/potential customer who is yet to make a purchase since any
parent would want their children to consume 100% natural product and still give the children a boost of to
their self-esteem and ego, since we are playing on the terms POWER OF NATURE and the SUPER-HERO
elements.

3. Product Value Proposition
Why should your customer consider buying your product rather than any other product in the market?
Considering Price, even though it is not entirely accurate to make this a value proposition, but since we
are relatively low priced compared to competitors (200 ml @ 3 AED) which is significantly lower than what
other large players like Masafi, Al Marai, Lacnor are offering at the same quantity, and also none of them
are 100% natural like Phoenix Powered.









11


3.3 Kotlers 5 Product Levels Model:

To further explain the potential for Phoenix Power to sell in the market, Kotlers 5 Product Levels Model
has been used to demonstrate the various need levels this drink can satisfy for children.



(Source: Kotler & Keller 2011, 326)

1. Core benefits: thirst quenching & energy supply are the intrinsic needs it satisfies
2. Basic Product: Energy Power Drink designed for kids between 6 and 10 years old which is 100%
natural & environmentally friendly.
3. Expected product: that the product will be safe for children to drink, will not spoil for at least 6
months, will be bottled in a 100% recyclable PET Bottle which is BPA (Bisphenol A) free so
excessive heat & undesirable climatic conditions in the UAE will not cause the plastic to melt into
the drink, cause leaching and HORMONAL disruptions in male children.
4. Augmented Product: The drink is good for the kids health and contains the needed vitamins and
minerals for their growth at this stage of life, and full of Antioxidants
5. Potential Product: New Product Line Horizontal Expansion (i.e. more energy flavors) Vertical
Expansion (i.e. Fruit based bars).
Potential Product
Augmented Product
Expected Product
Basic Product
Core Benefits
Energy Power Drink
designed for kids
between 6 and 10 years
old
Branding and
Packaging address
Children's ego,
increase self-esteem
and boosts
confidence. The drink
will keep for 6 months,
and does NOT contain
artificial preservatives,
refined chemical
sugars, and artificial
The drink is good for the
kids health and contains
the needed vitamins and
minerals for their growth
at this stage of life, and
full of Antioxidants
New Product Line
Horizontal Expansion (i.e.
more energy flavors)
Vertical Expansion (i.e.
Fruit based bars)
Thirst quenching
Instant calorific
supply
12

4. The Market Summary

4.1 Evidence of Primary & Secondary Research:

A questionnaire comprising of 50 respondents was done and 10 main questions were framed. The
respondents were chosen randomly (women & men) from different parts of Dubai. The results of the
questionnaire are as follows (a few main points have been selected to create the graphs as shown below):

With reference to the graph above, it was pleasantly surprising to realise that nearly 45% of the
respondents were positively inclined to purchase fruit based drinks which showed us that most parents
prefer their children to imbibe natural healthy products as opposed to artificially sweet & aerated
carbonated waters.


In Markets, do we allow our kids to choose their drink or do we choose
it for them?


45%
25%
30%
0
10
20
30
40
50
yes no maybe
Would you buy fruit based power drinks?
respondents
0
10
20
30
40
50
60
parents choose children choose don't know not sure
40
16
32
12
30
22
11
27
22
52
13 13
discovery gardens
dubai media city
downtown dubai
13

With reference to the graph above, the results showed that parents allow their children to choose their
own drinks in most instances (i.e nearly 52%) provided the purchase was made under parental
supervision. This survey was conducted with the questionnaire in various parts of Dubai.

Please rank what you wish your children to drink? 1-least 5-
most preference

Based on the graphs above, nearly 32% of the respondents wished to purchase milk-based products for
their child which tells us that dairy products are the main attraction for parents who wish to increase the
calcium intake for their kids. This is a positive thing in our favor since pomegranate has a very high level of
calcium which can be pitched when marketing the drink.
Please rank what you feel your children will like? Please assign
1-least preference & 3-most preference

Based on the graph above, nearly 37% of the respondents said they prefer pomegranate over blueberry
and orange juice. It can be assumed that pomegranate has a high percentage of people who choose it over
other flavors since it has a refreshingly tangy flavor.
30
12
32
5
21
Preference Scaling
natural fruit juice
fizzy fruit drink
milk based drink
caffeineited power drink
organic, fruit based power drink
34
37
29
Preference Rating
blueberry
pomegranate
orange
14

4.2 Competition

100% Fruit juice (not from concentrate) covered 15.9% of the global market with total of $17 bn. Middle
East and Africa has 3.2% of the global share and this is $3.5 bn.
Local dairy manufacturers and bottled water sellers are usually the ones producing fresh juices; however
fruits are exported from various countries. The prices of the fresh juices are subject to increase due to
increase in cost of production. However there is a fierce competition in the market and many companies
are not willing to increase their product price, this may decrease the quality of the product. Companies
may go for the option of producing the juices in cheaper countries.
There are imported fruit juices as well; South Africa is the biggest one.
The channel for these brands are the hyper and supermarkets mainly, and then the small markets come.
The biggest one in the UAE is Carrefour which holds the 25% of the market. Distributors are usually having
a margin of 10% to 50% which depends on the market they are involved.
The common promotion is to sell the products in packs of 6 to 10 pieces. Discounts are made on these
packs not on individual products. Our product will be sold individually for the beginning. However
depending on the market condition, this strategy may apply to our product as well.
The main products on the shelves are as below;
Product Company
Name
Size Price Origin Distributor
Sun Blast Arab
Beverages
200 ml AED 2.50 UAE
Lacnor NFPC 200 ml AED 1.10 UAE
Ceres Ceres 200 ml AED 2.00 South Africa
KDD The Kuwaiti
Danish Dairy
Company
200 ml AED 1.15 Kuwait
Capri Sun WILD 200ml AED 1.00 German Al Ain Water
Al Rawabi Al Rawabi
Dairy
200ml AED 1.50 UAE
Al Rabie Saudi Foods
Company
200ml AED 1.15 Saudi Arabia National
Trading and
Developing
Marmum Dubai
Investments
Industries
200ml AED 1.15 UAE
Milco NFPC 200ml AED 1.50 UAE
Unikai United
Kaipara
Dairies Co.
240ml AED 2.50 UAE
Al Marai Al Marai 200ml AED1.5 Saudi Arabia Al Marai
Establishment
Nadec Nadec 200ml AED 1.50 Saudi Arabia
15


4.3 Criteria for segmentation and target market selection.

Rising health awareness, the growing demand for convenience products and the increasing purchasing
power of the population are the main triggers of juice consumption on the global market. According to
IEU, consumer expenditure on food, beverages and tobacco in the UAE totaled $14b in 2010 with 6.7%
being household spending. In the beverages sector an RBS (2012) report noted that the UAE is the worlds
largest per capita water consumer at consumption of 285 liters per day.

The fruit juice sub-segment for the 6-10 year age group is relatively untapped in UAE. Amounting to about
3 million (verify with latest census data), the 6-10 year age group represents an attractive niche market for
fruit juices in the UAE. The age group, which is growing, thanks to a relatively high birth rate of 2.3% is the
focus of a new 100 % fruit juice which is a blend of three highly nutritious and energy giving tropical fruits-
orange, pomegranate and blueberry.

4.3.1 Segmentation Criteria:

1. Geographics

The UAE has the largest proportion of adults consuming fruit juice at 91% of the population. The
geographic location targeted for phoenix juice covers the member states of the UAE.

2. Demographics

The primary target market for Phoenix is the 6-10 year age group. This age group covers children in
kindergarten and elementary school. A recent Mintel survey noted that 90% of high income households
looked for 100% orange juice when buying fruit juice while lower income households preferred cheaper
juice drinks or to dilute drinks. Phoenix, a 100% fruit based fruit juice will thus target high income
households with children. Pack size must be of such size that would fit into the drink compartment of
lunchbox. So kids can put a snack e.g. sandwich and drink in the lunch box. It offers convenience for
carrying to school.

3. Psychographics

The target market comprises highly active, playful and fun loving consumers with a high demand for
energy and nutrition for growth.


4. Secondary market

With high observed rates of obesity among children in the UAE, the secondary market for Phoenix
comprises health conscious teenagers who want to remain in good shape. Potential crossing over of this
product into the adult category (owing to the high anti-oxidant content/ good for slowing ageing) is a
possibility.


16

4.3.2 Segmentation Analysis

Segmentation variables

In segmenting the market, a multifactor segmentation approach was applied. Demographic and
psychographic variables were used. These were age (6-10yrs), household income (middle to high income)
and family lifestyle [health conscious, outgoing (spend time in recreational activities and eat out in
restaurants), educated]

Segment size

The size of the proposed primary target market provides considerable opportunity for sales. According to
the UAE (2005) census report, the 6-10 year age group totaled 0.5 million (verify with latest census data.
This is just an estimate). According to CIA (2010), the UAE population growth rate surpassed that of all
countries in the world

Segment attractiveness:

There are a number of factors that contribute to our assessment that phoenix will be better off marketed
in the chosen segment
Increasing per capita income in the UAE, currently at $59717 (this is a 2010 figure, Please get latest figure)
and second to Qatar in the GCC.
High population growth rate of 3% (second to Qatar in GCC) supported by a higher birth rate, putting focus
on consumption of 100% fruit based juices in view of high incidences of cardiovascular diseases and
obesity among children.
(Source : Hans Zayed, MENA Strategy)












17

5. The Marketing Strategy

5.1 Branding Strategy:

Looking at the Product Brochure above, Phoenix Power is a POWER drink which plays on the ego, need for
authority and SUPERHERO aspirations of children. The image shows a child with a cape who is trying to fly
high and maybe SAVE THE WORLD as all SUPERHEROES endeavor to do.
The MODEL below is a matrix created especially for Phoenix Power:


18

1. Phoenix Power is a name based on concept of a Phoenix Bird, which is a mythological creature
arising or GENERATING from the ashes. It is a symbol of Re-Generation since the bird practically evolves
from its own remains and is a play on the word GENERATION since we are targeting young children who
are technically the next generation.
2. Phoenix Power addresses not only the nutritional needs of a growing child but also satisfies the
childs EGO and SUPERHERO aspirations.
3. Children today wish to express their INDIVIDUALISM and NEED FOR INDEPENDENCE from the
parents. They need their parents for their physical welfare, however, still wish to own a PERSONA which is
SEPARATE & INDEPENDENT FROM PARENTAL AUTHORITY.
4. Phoenix Power can be abbreviated to be known as P
2
(P TWO) to allow a trendy element to the
actual name of the product which can be a mouthful for very small children.



5.1.2 Brand TAGLINE:


As explained above, the Phoenix bird is a mythological bird which re-assembles from its own ashes.


5.1.3 Brand SLOGAN:


This is a PUN on the word POWER Since Phoenix Power is an all-natural power drink and we are using
the POWERFUL ingredients of NATURE.


5.1.4 Brand Promise (extension of the Value Proposition)

Three No Strategy which PROMISES a children friendly drink:

a. No artificial sweeteners : uses only natural fruit extracts of pomegranate and Honey
b. No artificial preservatives: only honey and natural preservatives : honey used as natural
sweetener and power booster, and includes high nutritional elements
c. No artificial stimulants: Harness the POWER OF NATURE





19


5.2 Distribution and Channel Strategy:

Phoenix Power channel strategy will identify the needed path to be taken from production to end user.
We have identified three channels related to the product: sales channel, product channel and service
channel.
Soft Launch: Targeted Areas:



The sales channel: These are intermediaries involved in selling the product through each channel
layer and ultimately to the end user. The key question which needs to be addressed is Who needs to sell
to whom for the product to be sold to the end user?. The retail channel is as follows:




Large supermarkets
parks
malls
hospitals
Coffee shops
Schools
Outsourced
producer
wholesaler Retailer Buyer End-user
H
y
p
e
r
m
a
r
k
e
t
s

S
u
p
e
r
m
a
r
k
e
t
s

M
a
l
l

e
t
c
.

20


The product channel: The product channel focuses on the series of intermediaries who physically
handle the product on its path from its producer to the end user:


The service channel: Necessary services needed to support the product launch will be handled in
the service channel as illustrated below:


Supplier of
Raw Material
Sourced from low cost
countries like India,
China & Bangladesh
Outsourced
Manufacturer
Production can be
outsourced to lower
costs. No ownership of
Plant & equipment
Wholesaler/
Rented
Warehouse
For storage purposes. No
ownership. Only low cost
seasonal renting as per
demand
Retailer
Malls
Supermarkets
Hospitals etc

After sales customer service- HOT
LINE maintained to get regular
feedback from both satisfied and
disgruntled customers.
Suppliers are business partners in the value chain and will
receive commissions based on how efficiently the
product moves through the value chain. We have a 10%
margin set aside as profits to be shared with suppliers,
wholesalers & retailers for set up attractive merchandise
schemes in retail units.
21

5.3 Marketing Communication and Advertising strategy:



Regarding the advertising, the strategy is NOT to make an initially large investment since that would
require a larger amount of venture capital. There can be low cost tie ups with Dubai schools wherein we
can arrange Triathlons. Instead of the usual physical activities consisting of swimming, running & cycling,
the advertising strategy will comprise of an element of FUN:
1. Tricycle rides instead of bi-cycles as smaller children find it difficult to maneuver two wheelers
2. Short distance races like the egg and spoon, sack races in place of 100 m sprints which are often
taxing on small children
3. Swimming activities with tubes in place of the 100m lap races to make it more children friendly
4. The winner will be crowned P2 HERO OF THE GENERATION. This is an obtuse reference again to
Generation and Re-Generation since the Phoenix is a symbol for the same and children are the
next generation.

And of course, after each activity every child will be given a sample free drink as an instant POWER
BOOSTER.










Three Wheeler Bicycles
Short Distance races
Swimming races with floating tubes
Winner will be crowned : P
2
Hero of the
Generation
22

5.4 Advertising:




1. Outdoor signage which will provide a high exposure for passing commuters :


Above is a rendered image of an outdoor signage advertised on Kassab TansMedia screen near by MoE.

2. Radio commercials which cost around AED 300 for non-peak hours and AED 600 for peak
hours. Having spoken to Radio 102.4, they said that the REACH for a FREQUENCY of
commercials being repeated even twice in an hour is no more than 30 people a day which is
relatively low even though this specific radio channel has a huge following amongst South
Asians.
Outdoor Signage
Radio Commercials
Children Events Organizers
Schools
Theme Parks
23

3. School & Theme Parks can be targeted but unless a deal can be negotiated, then such a tie-up
may involve high investments in advertising which should ideally be avoided in early stages of
production


5.5 Digital Media Advertising: Free & Effective


As per the diagram above, it is evident that advertising using digital media is free of cost and many new
entrepreneurs are using this strategy to advertise their products online. We could also consider
advertising on Google & Yahoo with the help of Instagram & Adwords.











Create a page on Facebook
Create a following on Twitter
Create a page on Linked In
24

6. The Financial Strategy

The marketing plan undertaken does not delve in to in-depth financial since it proposes to only make a
soft launch based on certain assumption.
As any financial projection has already pre-established, Phoenix Power does not seek to make profits for
the first three years.
It proposes to break even only in the fourth year and perhaps make minor profits from the fifth year
onwards.
Based on certain assumptions and data received from industry experts (e.g. a Masafi Product Manager &
Al Marai Sales Manager) the per unit costing is given below:
Cost per Unit of 200 ml of P
2

(AED)
Cost of ingredients 1.00
Cost of packaging & labeling 0.25
Cost of advertising 0.50
Cost of storage & warehousing 0.25
Cost of transportation 0.10
Total COGS per unit 2.10

S.P. of 1 unit 3.00
Total cost per unit 2.10
Profit margin per unit 0.90

The figures below are based on assumptions that if the team is able to sell 6500 bottles in a 1 month SOFT
LAUNCH then maybe a profit figure of AED 5850 could accrue but it seems unlikely given the highly
competitive nature of the UAE Market.
Proposed
target launch
6500 students At least 1 bottle
/kid
19,500
total costs of production for 6500 bottles 13,650
Proposed profit margin after 1 month soft launch 5850


25

References

[1] Burstein, Daniel (August 24th, 2011). Value Proposition: A free worksheet to help you win arguments in
any meeting. Available at: [http://www.marketingexperiments.com/blog/general/value-proposition-
worksheet.html] (Accessed on March 10, 2013).
[2] Wageningen University, The Netherlands (N.A.) Which E-numbers and additives are from animal
origin? Available at: [http://www.food-info.net/uk/index.htm] (Accessed on 4 February 2013)
[3] Hand, Rado (N.A.). Dangerous food additives to avoid. Available at:
[http://www.traditionaloven.com/articles/122/dangerous-food-additives-to-avoid] (Accessed on 4
February 2013)
[4] Demand Media, Inc. (2013). Side effects of food preservatives. Available at
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