Week7Module Final Project RQ

Market Perspectives (ModuleFinal Project) 1

Market Perspectives Module

Final Project (Week Seven)

Marketing Plan of

Al Fajre Marine for Boats Manufacturing – Dubai

Muhammad Rabah Qawaf

Student ID: 16116953 - H 00019410

Word Count: 4021

January 2013

Module Final Project Muhammad Rabah Qawaf


Table of Contents:

Section 1.0 Executive Summary ………………………………………….. Page 03

Section 2.0 Situation Analysis …………………………………………….. Page 05

Section 2.1 Market Summary ………………………………………… Page 05

Section 2.2 Market Needs ……………………………………………. Page 06

Section 2.3 Market Growth …………………………………………… Page 07

Section 2.4 SWOT Analysis ………………………………………….. Page 08

Section 2.5 Competition ………………………………………………. Page 09

Section 2.6 Product Offering …………………………………………. Page 10

Section 2.7 Keys to Success …………………………………………. Page 11

Section 2.8 Critical Issues ……………………………………………. Page 11

Section 3.0 Marketing Strategy ……………………………………………. Page 12

Section 3.1 Mission ……………………………………………………. Page 13

Section 3.2 Marketing Objectives ……………………………………. Page 13

Section 3.3 Financial Objectives …………………………………….. Page 14

Section 3.4 Target Markets …………………………………………… Page 14



Section 3.5 Positioning ……………………………………………….. Page 15

Section 3.6 Strategies ………………………………………………… Page 15

Section 3.7 Marketing …………………………………………………. Page 16

Section 3.8 Marketing Research …………………………………….. Page 18

Section 4.0 Financial ……………………..………………………………….. Page 20

Section 4.1 Break-Even Analysis ……………………………………. Page 20

Section 4.2 Sales Forecast …………………………………………… Page 21

Section 4.3 Marketing Expense Forecast ….……………………….. Page 22

Section 5.0 Controls and Contingencies …………………………………. Page 24

Section 5.1 Implementation Schedule ………………………………. Page 24

Section 5.2 Contingencies Planning ………………………………… Page 25

References List …………………………………………………………………. Page 27

Section 1.0

Executive Summary

The author is presenting in this module Final project herewith

the marketing plan of Al Fajre Marine for Boats Manufacturing.

The following section 2 will analyze the firm’s position in



the market and will summarize the market situation for this

type of business locally and regionally and what are the

market’s needs and how the market grows. Then the author will

conduct SWOT analysis of the firm’s showing its points of

strength, weakness, and opportunities that could be exploits

by the firm and threats & competition facing the firm by other

rivals in this industry, and competitions facing the firm; the

following section will demonstrate keys of success to be

followed and the firm’s offering to achieve the desired

success, showing any critical issues that might arise during

the implementation of this marketing plan. The author shall

also demonstrate in section 3 the marketing strategy and

mission of the firm in addition to the marketing the financial

objectives of the marketing plan.

Al Fajre Marine for Boats Manufacturing was established four

year back during the peak of Dubai booming in the real estate

business and before the financial crises aiming for the

customers of the artificial World and the Palms islands to

build fiberglass recreational boats. Al Fajre Marine started

to invest in building the moulds required for these boats with



the recommended length of 40 to 50ft. so it will be easy to

produce large number of products from the same mould.

In section 3 the author will continue what he has started in

week 4 module project part 1 and demonstrate the markets to be

targeted for the marketing plan showing the position of the

company and what strategy he will follow presenting 7P’s

marketing mix elements and conducting an appropriate marketing

research.

In section 4, the author will project an estimated data to

display close-to-reality projections based upon the targeted

market and the company position in that market. In the same

section, the author will demonstrate the breakeven point in

relation with the units to be produced and sold, where total

revenue equal total (fixed and variable) costs and to be

presented in graph that will illustrate the break-even point,

the estimated variable costs and the estimated levels of fixed

costs. In the same section, the author will display the

forecast of marketing expenses over two years.



In the last section 5, the author will show the controls and

contingencies for monitoring the new marketing plan to insure

correct implementation focusing on the revenues, expenses and

customers and the author will demonstrate table of the

implementing schedule showing each milestones dates in the new

marketing plan with its timeframe and budget; then the author

will show the difficulties that might face Al Fajre Marine

during the new marketing plan implementation and what are the

alternatives in case of worse scenarios.



Section 2.0

Situation Analysis

Al Fajre Marine has started from scratch where it is started

by fabricating the boats’ moulds with the size they thought

there will be high demand for the size and application, and it

took them a full year to finalize the moulds and made them

ready for production.

By the time Al Fajre finished the moulds fabrication, the

global financial crises strike and the demands dropped down

dramatically especially for the wealthy individual customers

for the recreational application, and most customers were

going for second hand boats with smaller size 20 to 30ft.

long. So it was rough start for Al Fajre Marine with all the

unexpected events and its consequences.

Section 2.1

Market Summary

Before the global economic crisis, there were huge demands on

the recreational boats for wealthy individuals in addition to

the fishermen that they require low cost boats with basic



accessories enough for their fishing; and the third demand was

for government tenders that they require boats for patrolling,

security, service etc. The fourth demand is the regional

customers from the neighboring countries for commercial

operation boats used for transporting passengers, fishing

boats, recreational boats and interceptor boats for government

and official authorities’ marine operations.



Section 2.2

Market Needs

The author will demonstrate the market needs for each segment

in the following table detailed as percentage of the total

demands followed by graphic chart showing the differences in

the market needs, detailed as follows:

PotentialCustomers

Recreational

Fishing Commercial

Governmental

OperationsLocals 50% 10% 10% 30%

NeighboringCountries 30% 10% 40% 20%

Total Average 40% 10% 25% 25%


Segments of Customers Locally and Regionally

0%

10%

20%

30%

40%

50%

60%

LocalNeighboring CountriesTotal Average


The above table and chart showing the segment of customers and

the types of boats required in the market, these boats are

segmented according to the customer types, detailed as

follows:

Recreational Boats: Quality of the boat and accessories used

are the customer’s top priority in addition to the Cabin, or

driving console shape and finishing with streamline designs,

fancy accessories and luxurious upholstery with the latest

machines and equipments.

Fishing Boats: Boat’s finishing is not so important as the

performance, the capacity and ability to sail in rough sea

conditions with minimum accessories required for the fishing

operations; and usually the boats are open deck with no cabin

but only driving console and huge ice boxes to store the

fishes.

Commercial Boats: These boats are usually required with

Classification certificate such as Lloyds, ABS, RINA, etc.

that classifying process will cost extra, however, the boat

should be equipped with the minimum accessories enough for its



operation with moderate finishing and maximum safety for the

passengers onboard.

Interceptors Boats: These boats has to be high quality, high

speed with high performance in most weather condition for

governmental operations such as patrolling, intercepting, crew

transportation or service.

Section 2.3

Market Growth

Before the global economic crisis, the growth in boats

building industries was reasonably high as 20% annually, but

after the crises the circumstances has changed and market

demands shrink down to about 50%; but now after three year of

the crisis impact, things are slowly recovering and becoming

normal and the boats building industry is starting picking up

slowly with about 5% growth annually.



Section 2.4

SWOT Analysis

The following SWOT analysis demonstrates the key strengths and

weaknesses within Al Fajre Marine, and showing the

opportunities and threats facing the company.

Strengths

Owning its own moulds and having the patent designs of

the boats to be produced.

Flexible production line where the company can produce

several models with different concepts as per the

customer requirement from the same boat’s mould.

Small company size with a decision maker capable of

taking crucial decisions in pricing, production according

to customers’ demand.

Weaknesses

The payback time for the money invested in the company

due to the unexpected global economic crisis will take

longer time than anticipated.



The vicious competition among the boats builders caused

price reduction and lower quality products.

Lack of distribution network for dealers.

Opportunities

Increasing demands for new boats especially for

governmental authorities.

Medium and small size old boats’ builders leaving the

industry due to the economic recession that decreased the

chances for more orders to run the existing boats’

factories in high capacity.

Surviving the first three years after the crisis gave

better chance for the company to have its position in the

boats industry.

To establish new customers’ base abroad in the

neighboring countries.

Threats

Potential competition from the existing medium and small

size boats builders.

Slow economy growth and long economic recovery.



The distribution network of the huge boats builders

locally and internationally.

Section 2.5

Competition

Al Fajre Marine is facing a vicious competition from the small

and medium size boats’ builders who managed to survive the

economic crisis, and from the new comers with their policy of

hit and run where they get big order in very low price due to

social connection with the buyer or other means, by even

breaking the prices just to get the order and keep their

factory running, then they start to suffer in meeting the

delivery time and quality requirements and eventually failing

to deliver the required boats as per the customer’s

specifications and time frame.

On the other hand, the huge boats factories with their brand

names where they work on mass production and sell in

quantities for their dealers and distributors’ network in the

region in low price that affect Al Fajre Marine’s sales with

its new brand name and tailor-made production causing higher



production cost and longer delivery time putting the company

in difficult situation to compete with them.

Section 2.6

Product Offering

Al Fajre Marine is offering reasonable required products out

of its two moulds where it manages to use the same boat’s hull

for different concepts such as:

Recreational concept with open deck and center driving

console that could be used for pleasure as well as sport

fishing.

Recreational concept with air-conditioned Cabin, to

include bedroom, sitting area and stern open area for

outside sitting or fishing.

Commercial concept for transporting passengers with full

size air-conditioned cabin with feasible number of

passengers’ seats for better and fast payback for the

owner/ operator with the ability to use inboard diesel

engines, because in commercial concepts it is preferable

to use inboard diesel engines because diesel is safer



than petrol and it has higher torque, longer working

hours, more durable and less maintenance.

Governmental concept to be used for official operations

and services that could be used with open deck or air-

conditioned cabin.

Fishing concept with open deck and huge ice boxes for

professional fishermen equipped with the necessary basic

accessories to be sold for low and competitive price in

large quantities.



Section 2.7

Keys to Success

The main focus of Al Fajre Marine is “Customer Satisfaction”

where it tailor-made every boat according to the customer’s

needs and requirements, while the big factories with a

production line do not do that under any circumstances and Al

Fajre Marine knows that, it is not an easy task to achieve,

but its vision is to build wider base of loyal customers that

will strengthen the company’s position in this business and to

become profitable and sustainable company.

Section 2.8

Critical Issues

Al Fajre Marine is still in the stage of establishing its

brand name in very difficult economy situation and for

that reason, the shareholders are still paying from their

pockets to cover the company’s expenses, but they are so

keen to complete what they have started until the company

becomes profitable.



Satisfying customers cost money especially in the boats

industry where boats mass production is the most

efficient way to save money and increase profit, but

building each boat according to customer demand will

cause the price to jump high and hence reducing the

margin of profit and lead to uncompetitive price with the

other rivals.



Section 3.0

Marketing Strategy

Al Fajre Marine is looking to maximize the beneficial use of

its boats and to have a unique tailor-made product meeting the

delivery time and price limits without compromising the

quality, safety and performance of any boat to fulfill each

and every detail to ensure the customer’s satisfaction and

quality standards that could be achieved by implementing the

followings:

Implement the latest technologies to improve the product

quality, minimizing the manufacturing time and

maximizing the employees’ output by using Vacuum

lamination process and to be upgraded in the near future

to the new Infusion lamination process that will reduce

the time required to complete the boat and also

increasing the hull stiffness and reducing the boat’s

weight by 30%, hence less power engines will be required

and consequently less fuel consumption.

Participating in the domestic and regional boats shows

with product samples to be displayed and even tested in



the sea by the potential customers to show them how the

boat performs in real conditions and feel the quality of

the product.

Advertize in the most famous and popular boating

magazines locally, regionally and internationally,

focusing on the tailor-made ability for demanding

customers and on the commercial concept models.

Balancing the use of the available funds and resources

to achieve development and expansion to cover wider

range of customers and markets maintaining the leading

in product’s quality and the product’s personality that

meets the customer’s requirement.

Shifting the targeted customer and boat’s concept from

recreational tailor-made, high quality boats for

demanding customers to commercial standardized boat

where the customer focuses on the safety and performance

and not so demanding as the other one and willing to pay

well, knowing that s/he will get the invested money back

within less than two years.

Section 3.1



Mission

The mission of Al Fajre Marine for Boats Building is to

achieve the maximum customer satisfaction by providing the

customers with the proper and suitable unique boats for their

needs with the best quality and reasonable price to establish

Al Fajre Marine’s brand name and to secure a leading position

among the leading and reputable boats builders companies in

the region and to achieve sustainable growth in profit trying

to maximize the shareholders’ wealth and stakeholder

prosperity.

Section 3.2

Marketing Objectives

The marketing objectives of Al Fajre Marine Boats

Manufacturing are as follow:

To maintain steady positive growth.

To gradually increase its market share locally,

regionally and internationally.

To Increase sales and revenues.



To decrease the tailor-made boats manufacturing without

compromising the customer satisfaction.

Focusing on government tenders and large orders.

Focusing on commercial passengers’ boats and recreational

boats for touristic companies in the UAE and the region.

Section 3.3

Financial Objectives

Al Fajre Marine financial objectives are detailed as follows:

Minimizing the tailor-made boats by standardizing the

boats’ parts and accessories to reduce the cost of

materials and labor charges.

Increase the profit margin by 5% annually through

efficient use of material and labor working-time

management.

To maintain skilled workers to have better product with

less time, hence increasing the product value compared to

the competitive product.

To minimize the time required for the company to become

profitable and sustainable.



Section 3.4

Target Markets

In addition to the local and regional market in the UAE and

the GCC countries in the Arabian (Persian) gulf region, Al

Fajre marine is seeking an overseas opportunity to expand its

activities and it is already started that by supplying Indian

government through Indian local supplier with number of boats

for their marine operations because India is a peninsula

surrounded by the Indian ocean and thousands of miles of sea

shores need to be patrolled and protected, so Indian

government is deploying tenders for over 500 new boats

annually with different sizes to fulfill their needs and Al

Fajre Marine is trying to secure its share within these

tenders through a local Indian dealer.

Section 3.5

Positioning

Al Fajre Marine is trying to position themselves among the

leading boats builders in the region by producing the tailor-

made state-of-the-art product to satisfy its demanding

customers where none of the existing brand boats’ builder will



be able to do that. In addition to that, Al Fajre Marine will

also secure a good leading position in the commercial boats

aspect for mass production that will cover the overhead and

production expenses and to build up its brand name locally,

regionally and internationally.

Section 3.6

Strategies

The first thing Al Fajre Marine should do is to identify its

customers, like who will buy its boats, and once it does, it

should refine its boats for that particular segment of

customers so Al Fajre Marine could achieve the maximum

customer satisfaction by fulfilling all the customers’ needs.

So in the recent situation and indications, Al Fajre Marine

will focus on two segments of customers and government

tenders.

The first segment is the wealthy customers seeking luxurious

high standard small size yacht with all the necessary

equipments and to be tailor-made as per the customer’s

requirements and this type of customers are usually locals or

from the neighboring countries and Al Fajre Marine has very



good chance with those customers because of the tailor-made

production that no other boats’ builder will do in addition to

the high quality product and the fair price.

The second segment is the touristic companies who operate

marine cruise or passenger transportation between the islands

and Al Fajre has very good chance with these customers because

the products it is offering is internationally classed and

certified boats with all the safety required for passengers

transportation and reasonable price that will enable the

buyers/ operators to increase their revenue and decrease their

operating expenses of the fuel consumption compared to the

number of passengers onboard.

The third segment is the governments and authorities tenders

where it is usually involved in mass production that will

reduce the production cost price so Al Fajre Marine could

compete on the quality delivered and price offered.

Section 3.7

Marketing Mix (7P’s)



Al Fajre Marine’s marketing mix is comprising the following

(7P’s) approaches that is: Product, Price, Place, Promotion &

advertizing, People, Process and Physical Environment.

Product: Al Fajre Marine excels in the tailor-made state-

of-the-art boats that are specially made for certain

customers aiming to achieve complete customer

satisfaction on delivery and even beyond for after sale

service and maintenance. On the other hand, Al Fajre is

also specialized in passengers’ transportation boats

complying with the international classification societies

with high standards of safety.

Price: Despite of the high quality tailor-made yacht, the

price offered by Al Fajre Marine is still 30% lower than

any similar quality branded boats and Yachts; and the

prices of the commercial passengers’ boats are still

reasonably cheaper than other similar size boats.

Place: Al Fajre Marine is targeting with its products,

the domestic market in the UAE in addition to the

regional market and neighboring countries plus in some

cases international market.



Promotion: Advertizing through Yachts and boats magazines

and participating in the domestic boats’ show with one or

two of the products and prepare CD with all details and

steps about the boats’ building process to the final

finishing with sea trials video in different weather

conditions. And also maintaining customer satisfaction so

the customer could promote for the product by (WOM) to

other people sharing him/ her the same interests and

financial ability.

People: Al Fajre Marine is investing in people whether

those people are employees or customers, where it keeps

its employees satisfied with the money they get paid on

time and the working environment with possibilities for

upgrading and continuous training on the latest

technologies in the boats’ industries. On the other

hand, Al Fajre Marine investing in customers as well

where it tries its best to get the complete customer

satisfaction in quality and price wise, so the customers

will definitely come back with several others

recommending our company to them.



Process: Al Fajre Marine has invested huge amount of

money to improve the boats’ building industry by using

the most advanced material and process for laminating the

fiberglass and they started with the Vacuum process and

now they are implementing the latest technology in

fiberglass lamination that is Infusion process where this

process increases the boat’s hull stiffness with less

weight and consequently smaller engines with less fuel

consumption.

Physical Environment: Al Fajre Marine with the new

implementation of the Infusion system in fiberglass

lamination process, it actually reduces the amount of

chemicals used in boats’ building such as resin and other

components and eventually less pollution to the

environment. On the other hand, with the new building

process, the boats’ final weight will be reduced by 30%,

hence smaller engines are required with much less fuel

consumption and eventually less Co2 pollution.

Section 3.8

Marketing Research



Al Fajre Marine being located in Dubai which is considered a

major landmark in boats industries where Dubai Boat Show

attract so many famous international boats and yachts brands

from Europe, USA, Australia and the far east, in addition to

all the interested visitors and other related industries such

as marine equipments and accessories fishing and diving

equipments, navigation and entertainment gadgets, etc. so Al

Fajre Marine will have very good chance to do marketing

research with the Dubai Boats Show visitors showing them its

product and concepts and offering them a sea trial to have

better reflection about their impression on the product and

its performance seeking the possibility to market its product

internationally. The author has conducted a market research

for boats and yachts available in Dubai and the number of

boats’ builders in the UAE and came up with the following

results:

Yachts from 40 ft. to 150 ft. available in Dubai is: 1167

Yachts

Boats from 27 ft. to 50 ft. available in Dubai is: 15,510

boats



Number of the public Marinas in Dubai is: 12 marinas with

2400 parking capacity for boats and yachts.

Number of the medium to mega size boats’ factories in the

UAE is: 168 factories.

With the above information, Al Fajre Marine should construct

its marketing plan bearing in mind the above statistics that

are directly related to its line of business and to update

these statistics on annual basis and to broaden the research

to include more details such as the boats’ size, propulsion

type, whether inboard or outboard engines and to include the

same information and statistics for the neighboring countries

because they are a high stake customers in Al Fajre Marine

business and this type of information will be very helpful for

sales and products forecast.



Section 4.0

Financial

In this section, the author shall demonstrate the financial

overview of Al Fajre Marine in relation to its marketing

activities showing the Break-even analysis, sales forecast and

expenses forecast indicating their relation to the marketing

strategy.

Section 4.1

Break-even Analysis

The Break-even analysis indicates that, US$ 350,000.00 will be

required in the monthly sales revenue that is equal to produce

and sell a minimum of 2.2 boats according to its average

selling price to reach the Break-even point.



1 2 3 4 5 60

50000

Units RevenueVariable Exp. Fixed Exp.

(Break-even Point Chart)

The above Break-even point chart shows that Al Fajre Marine

need to produce and sell a minimum average of 2.2 boats per

month that is about 27 boats per year to achieve the Break-

even point, bearing in mind that, any sales above 2.2 units

per month, will be a net profit, taking into consideration

that, the recent production capacity of Al Fajre Marine is 3

boats per month that is 36 boats per year that could be

achieved with the utilized facility and the existing manpower.

Section 4.2

Sales Forecast

Al Fajre Marine’s sales forecasts for the coming two years

starting from 2013 detailed in the following table on



quarterly basis starting with the productions and sales of an

average of 2.2 boats per month to be increase by 0.1%

quarterly reaching by the fourth quarter of 2014 to its

maximum production capacity with the existing manpower of 3

boats per month.

Period Revenue Units

FixedExpense

s

VariableExpenses

TotalExpenses

NetProfit

1st. Quarter2013

$1,023,000 6.6 $360,00

0 $660,000 $1,020,000 $3,000

2nd. Quarter2013

$1,069,000 6.9 $360,00

0 $690,000 $1,050,000 $19,000

3rd. Quarter2013

$1,116,000 7.2 $360,00

0 $720,000 $1,080,000 $36,000

4th. Quarter2013

$1,162,500 7.5 $360,00

0 $750,000 $1,110,000 $52,500

1st. Quarter2014

$1,209,000 7.8 $360,00

0 $780,000 $1,140,000 $69,000

2nd. Quarter2014

$1,255,500 8.1 $360,00

0 $810,000 $1,170,000 $85,500

3rd. Quarter2014

$1,302,000 8.4 $360,00

0 $840,000 $1,200,000 $102,000



4th. Quarter2014

$1,395,000 9 $360,00

0 $900,000 $1,260,000 $135,000

The author will demonstrate in the following graph the total

revenue on quarterly basis for the years 2013 and 2014.

1st. Qrtr. 2013

2nd. Qrtr. 2013

3rd. Qrtr. 2013

4th. Qrtr. 2013

1st. Qrtr. 2014

2nd. Qrtr. 2014

3rd. Qrtr. 2014

4th. Qrtr. 2014

$0$1

00,0

00$2

00,0

00$3

00,0

00$4

00,0

00$5

00,0

00$6

00,0

00$7

00,0

00$8

00,0

00$9

00,0

00$1

,000

,000

$1,1

00,0

00$1

,200

,000

$1,3

00,0

00$1

,400

,000

$1,5

00,0

00

Quarterly Revenue for 2013 & 2014

Section 4.3

Marketing Expenses Forecast

Years 2013 2014 2015



Website Updating $3,000 $4,000 $5,000

InternetAdvertisement $5,000 $7,000 $9,000

Advertisements $12,000 $15,000 $18,000

Boats ShowParticipation $15,000 $15,500 $16,000

Others $3,500 $3,500 $4,000

Total MarketingExpenses $38,500 $45,000 $52,000

The above table shows the expected marketing expenses Al Fajre

Marine is going to pay to implement the marketing plan for the

next three years trying to maintain the expenses within the

budget, taking into consideration to increase or decrease some

of the elements over the others depending on that element’s

effect positively or negatively on the marketing plan.



Website Updating

Internet Advertisement

Advertisements

Boats Show Participation

Others

Others

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000

201320142015

Marketing Expenses for Three Years



Section 5.0

Controls and Contingencies

Al Fajre Marine’s marketing team will monitor and track

performance of each segment when implementing the marketing

plan to ensure correct implementation and to do any necessary

adjustment to ensure the success of this marketing plan trying

to focus on the customers feedback about this marketing

campaign and try to make direct contact with the customers

whether in the marinas with the boats & Yachts owners or

during the Dubai Boats Show, taking into consideration other

means of feedback such as phone calls, e-mails etc.

Al Fajre Marine’s marketing team will continuously monitor the

following areas to indicate the performance of the implemented

marketing plan and how it is affecting the sales, revenue,

expenses and customers:

Expenses: Monthly, Quarterly and Annually

Revenue: Monthly, Quarterly and Annually

Customer Satisfaction at all times

Section 5.1



Implementation Schedule

The below mentioned table will demonstrate the milestones for

implementing the marketing plan taking into consideration to

maintain the deadlines dates and to stay within the estimated

budget.

AdvertisingStart

DateEnd Date Budget Manager Department

Completing the Marketing plan

01/02/2013 10/2/2013 $0M. Rabah Marketing

Internet Advertisement

15/02/2013 15/03/2013 $5,000 Outside

Firm ===

Advertising Campaign #1

01/04/2013 15/04/2013 $3,500 Ahmad Marketing

Printing & Distribution of Brochure & Leaflets

01/05/2013 30/12/2013 $3,500 Ahmad Marketing

Participating in Dubai Boats Show

03/06/2013 10/06/2013 $15,000 Outside

Firm ===

Advertising Campaign #2

01/07/2013 15/07/2013 $3,500 Ahmad Marketing

Adverting in BoatsMagazine 5 Issues

01/08/2013 30/12/2013 $5,000 Arabian

Yachts ===

Total $35,500

Section 5.2



Contingencies Planning

Difficulties and Risks

The difficulties Al Fajre Marine might face during launching

the new marketing plan is the time required for the positive

or negative effect of the marketing plan to be reflected on

the sales and business and time will be the critical element

in case of any necessary and immediate adjustment required to

the marketing plan. In addition to the tough competition Al

Fajre Marine will face with the existing giant branded boats’

builders.

The risk Al Fajre Marine is taking in the new marketing plan

is the additional necessary marketing expenses that are going

to be spend without any guarantee for any pay back.

Worst Case Scenarios

The worst case scenarios is to realize after few months of

implementing the marketing plan that it is not giving the

expected outcome and causing even more losses due the

additional marketing expenses.

Potential Alternate Strategy



The alternative strategy Al Fajre Marine should take to

overcome worse scenario case is to indicate the strength

points of the marketing plan and focus on it and try to

liquidate some of its assets sell boat with the cost price to

overcome the situation.



References List:

Grönroos, C. (2007) Service management and marketing: Customer

management in service competition (3rd ed.). Chichester: Wiley.

Lovelock, C. H. and Wirtz, J. (2007) Services marketing: people,

technology, strategy (6. ed.). Upper Saddle River, NJ:

Pearson/Prentice Hall.

Guille, M. How to find and sell to your target market. Available online from: (http://sbinfocanada.about.com/cs/marketing/a/targetmarket.htm) Accessed on Jan. 19th. 2013.


http://sbinfocanada.about.com/cs/marketing/a/targetmarket.htm

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