A

PROJECT STUDY
ON
STUDY ON CONSUMER GOODS INDUSTRY IN UAE

SUBMITTED TO VINAYAKA UNIVERSITY FOR THE PARTIAL

FULFILLMENT OF THE DEGREE OF MASTER OF BUSINESS
ADMINISTRATION IN MARKETING

ZACHARIA.C. GEORGE
REG. NO.

UNDER THE GUIDANCE AND SUPPORT OF

PROF. JOTHILINGAM

CAPITAL EDUCATIONAL INSTITUTE - ABU DHABI

2009 - 2010

CERTIFICATE

This is to certify that the project work titled "STUDY ON

CONSUMER GOOD INDUSTRY IN UAE” submitted by

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ZACHARIA. C GEORGE, Reg No. In partial fulfillment
of the requirement of the award of degree of Master of Business
Administration of Vinayaka University, Salem is a bonofide record
of work carried out by him under our guidance and supervision
during the year 2009. The result embodied in this record has not
been submitted to any other university or institute for the award of
any degree/diploma.

Internal Guide Director/Principal

STUDENTS DECLARATION

I ZACHARIA.C.GEORGE Reg No: hereby

declare that the project study entitled " STUDY ON CONSUMER
GOOD IN UAE." has been prepared by me, under the supervision
and guidance of Prof. Jothilingam, Faculty Member of Capital

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Institute- Abu Dhabi and now being submitted to Vinayaka
University-Salem for partial fulfillment of the university regulation
for the award of the degree of Master of Business Administration.
In further I declare that this project report is based on the original
project study under taken by me and has not formed a basis for
the award of any other degree/diploma at any other university

Place: Abu Dhabi ZACHARIA. C GEORGE

Date:

ACKNOWLEDGEMENTS

First of all, I thank my Almighty God for giving me the ability

to complete this project. I feel extremely fortunate to have the
privilege of undergoing my project study with Analysis of Rubber
Products in UAE. I would like to express my sincere thanks to
Prof. Jothilingam, my internal guide for providing indispensable
assistance during the project guidance session and thanks to him
for his assistance and useful comments. I am very grateful to our

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director & Principal Mrs. Laly Joseph and the faculty members of
management department. In addition, I express my affectionate to
my beloved parents, friends & all other family members for being
so encouraging and supportive throughout the study.

Place: Abu Dhabi ZACHARIA. C GEORGE

Date:

INTRODUCTION

1.1. UAE economy and current world economic slow down - a brief
overview

It is obliviously important to analysis or study of any industry of a region or a

country, we should know their economic background and how it backing up the
industry with current situation.

Consumer goods industry has been one of the fastest growing industries in
the UAE for the past few years. Favorable government policy frameworks and active
participation of private sector have facilitated one of the world’s most desirable
consumer trade environments in terms of investments and revenue generation.

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Further, burgeoning economy, balancing crude oil prices, rising purchasing power
and strong consumer confidence are strengthening the retail industry.

According to the new research report “Booming Retail Sector in UAE”, the
economic slowdown signs were almost nonexistent in UAE consumer industry and its
growth rate remained intact in 2009-2010. Surging public and private sector
consumption along with the contribution of strong industry verticals (tourism, trade,
banking, etc) are expected to help the consumer industry experience an impressive
Compound Annual Growth Rate (CAGR) of around 13% during 2010-2013.

In addition, the country’s population is highly dominated by expats. Of the total

population, UAE nationalists only account for 20% share and rest is from South Asia
and European countries. Large proportions of expatriates are mainly employed in
commerce, aviation, tourism and constriction sectors and enjoy comparatively high
net worth. The consumer segment is fueling retail sales and encouraging new market
players for more developments.

The rapid development of modern retail infrastructure is luring consumers for

convenient shopping experience and transforming into high retail spending. Per
capita gross leasable area (GLA) surpassed 1 Sq Meter mark in 2008, which is one
of the highest in the world. We anticipate that this trend will prevail in coming years
and gradually boost the retail sales growth.

The report is an outcome of extensive research and thorough analysis of retail

industry in the UAE. It facilitates statistics and analysis of all prominent market
segments to provide deep and informative understanding of the market. The report
also examines consumer behavior scenario with respect to purchasing decisions,
spending pattern, and inclination towards domestic and foreign brands. The future

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growth areas discussed in the report helps to analyze the emerging market segments
for players.

The United Arab Emirates remains one of the region's economic

powerhouses, despite the slow-down it experienced during the last 18 months. The
economy has experienced a difficult year buffeted by a large drop in oil prices along
with rapid de-leveraging and default in its corporate sector and banking sector strains
it is emerging from the crisis in a stronger position. There is clear signs of a strong
recovery process taking shape in the UAE and the region and expecting region to
recover at a faster pace compared to the US and Europe. Analysis says for a 2.1 per
cent expansion in economic activity, supported by Global economic recovery and
demand for commodities. The gradual recovery in global growth, which is being led
by Asia, will have beneficial effects for the UAE.

The UAE economy may have reached the “bottom of this downturn” and
should see a “mild recovery” in 2010. The recent improvement in global economic
momentum, the rise in oil prices, and the stabilization in domestic markets are
helping the country’s economy to recover from a slump led by the collapse in real-
estate and energy prices.UAE retail sales seen growing 3-5% in 2010

Recent study identified as consumer industry has the best practice and
recommendations which retailers and manufacturers can implement to survive, and
even take advantage of the current downturn. It by stressing a product's value
proposition - as opposed to cheapness - maintaining marketing budgets, better
targeted product ranges, improving customer service levels and reinforcing the
quality of products are all vital to building quality and maintaining margins. It believes
that sales of food and beverage products that can be consumed within the home will

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remain strong in UAE. Cosmetics sales are also forecast to benefit from sacrificial
consumption patterns as cash-strapped consumers, wanting to spend less but not
stop buying, continue to buy smaller, less expensive indulgence.

The Middle East region is booming and is now the second fastest growth area
in the world after China. Political and economic reforms across the region provide a
new dynamic business atmosphere where consumer demand and consumption is on
the rise.

1.2 OBJECTIVE OF THE PROJECT

The main objective of the project is to conduct a general study about
consumer goods market in UAE, to analyze the general outlook of the consumer
goods industry and to study about the major competitors in the market.

It also aims at evaluating the strength and weakness of consumer goods

industry and suggesting ways to improve market share of consumer goods.

1.3 SCOPE AND SIGNIFICANCE OF THE STUDY

The scope of the is both overview level information and in-depth analysis of
consumer goods industry highlighting the major internal and external factors which
play a crucial role in the performance of the consumer goods industry in UAE

1.4 RESEARCH METHODOLOGY

The approach to this study is supply based. The trade sector and
supply sector will be considered in this study. Basically the imports constitute the
supply side of the consumer goods market. While the domestic consumption and

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re-exports constitutes the demand side of the market. In addition the data that is
available with the Chamber of commerce databases and other countries databases
are used to shed light on the size and the structure of UAE consumer goods
market. Secondary data from other relevant sources has also been used.

Research methodology is considered as the nerve of the project

.Without a proper well organized research plan, it is impossible to complete the
project and reach to any conclusion. The project was based on the survey plan. The
main objective of the survey was to collect appropriate data, which work as base for
drawing conclusion and getting result. Therefore, Research methodology is the way
to systematically solve the problem. Research methodology not only deals about
the methods but also logic behind the methods used in the context of a research
study and it explains why a particular method has been used in the preference of
the other methods.

1.5 Research Design

Research design is important primarily because of the increased complexity in the

market as well as marketing approaches available to the researchers .In fact it is
key to the evolution of the successful marketing strategies and programmers .It is
an important tool to study the buyers behavior, consumption pattern , brand loyalty
and focus market changes . A research design specifies the methods and
procedures for concluding a particular study. Research design specifies methods
and procedures for study.

1.6 SAMPLING METHODS

The researcher had selected a reasonable number of samples for the
primary data collection. The technique selected for sampling was convenience and
availability. Type of sampling method used is random in nature

1.7SAMPLE SIZE
100 customers

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 1.8 RESEARCH TOOLS
It provides a detailed analysis of the consumer goods industry in UAE,
including key growth trends, statistics, forecasts, and the competitive environment
including key issues facing the industry. The tool used for analyzing the primary
data collected through questionnaire was percentage system. Diagrammatic
presentation has also been done through charts.

1.9 RESEARCH AREA

General study of Consumer goods industry

2. Consumer Goods

2.1. General View

The issue of consumer goods is most important in assessment of Gross

Domestic Product (GDP), basically a yearly measurement of what is purchased
(consumed), made, invested, and what is spent by the government. Economic
analysts can parse out the different types of goods that are included in the GDP, and
look at how each area is performing. So for instance, a decline in the sale of
consumer goods would indicate people aren’t spending as much on most consumer
items, which can include on food, automobiles, clothing, electronics, and a host of
other things.

Some things that would seem like consumer goods are not traditionally
classed as them. For instance, most things sold second hand aren’t consumer goods
any longer because they were already counted as final goods earlier. This would
include the resale of items like cars, clothing or jewelry. Other things that you might
purchase like parts of cars, even tires or a car battery, aren’t final goods either.

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Technically, the goods used in the assembly of cars don’t represent a final product,
even though many of us have had to buy new tires for a car or replace a car’s
battery, because they may be used in the production of new items.

There’s also a classification of goods called Fast Moving Consumer Goods

(FMCG) or Consumer Packaged goods. These are items that will be sold very
quickly. Most items sold in grocery stores are FMCGs, and many small electronics
items make the list too. These things don’t always sell quickly but usually are
consumed quickly, and are usually defined because they are in contrast to what are
called durable goods, like big appliances. Simply put, a jar of strawberry jam, an
FMCG, will be consumed much more quickly than the refrigerator you place it in, a
durable good.

Another group of final goods is called Fast Moving Consumer Electronics

(FMCE). These include items like cameras, cell phones, MP3 players, and laptop
computers. Note that desktop computers may be more likely to be considered as
durable goods, though they’re still final goods because they tend to live longer than
the average laptop.

2.2. Consumer goods: Definition

Consumer goods are alternately called final goods, and the second term
makes more sense in understanding the concept. Essentially, consumer goods are
things purchased by average customers, and will be consumed or used right away.
Any tangible commodity purchased by households to satisfy their wants and needs.
Consumer goods may be durable or nondurable

2.3. Consumer goods: Classification

Consumer goods can be classified into three type they are durable, non
durable and semi durables

3.3.1Durable goods

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 One that yields services or utility over time rather than being completely used
once. Most goods are therefore durable goods to a certain degree. These are goods
that can last for a long time, such as refrigerators, cars, and DVD players,[1] and
such big-ticket items should continue to be serviceable for three years, at least.
Perfectly durable goods never wear out. It has a significant life span, often defined as
three years or more, and consumption is spread over this span. Durable goods,
which can be used repeatedly or continuously for more than one year, such as motor
vehicles and major appliances. Under this category has got scope of study on varies
industry such as electronic appliance and auto mobile.

2.3.3 Nondurable goods:

Nondurable goods or soft goods (consumables) are the opposite of durable
goods. They may be defined either as goods that are used up when used once, or
that have a lifespan of less than 3 years. Examples of nondurable goods include fast-
moving consumer goods such as cosmetics and cleaning products, food, fuel, office
supplies, packaging and containers, paper and paper products, personal products,
rubber, plastics, textiles, clothing and footwear. Which are purchased for immediate
or almost immediate consumption and have a life span ranging from minutes to three
years (e.g., food, clothing)

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2.3.4Semi-durable goods: Which can be used on multiple occasions and have
an expected lifetime of one year or somewhat more, such as clothing, footwear and

Linen.

The study of consumer goods in UAE is too outsized. Therefore we can

analyze only here the market of non –durable goods and FMCG which is it self huge
and not easy to describe such short project

3. FACTS INFLUENECING THE CONSUMER INDUSTRY

3.1. Statistical Analysis

The UAE’s nominal GDP was US$230.61bn in 2009, with last year’s decline of
2.9% expected to translate into growth of 2.8% in 2010 as the economy begins to
recover. BMI predicts average annual GDP growth of 3.4% between 2009 and 2014.

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With the population increasing from 4.7mn in 2009 to an estimated 5.5mn by 2014,
GDP per capita is forecast to rise by 33.5% by the end of the forecast period,
reaching US$65,941.

Pleas see the following graph showing the expected GDP Growth for next Five Years

UAE - ECONOMIC ACTIVITY :

Table: UAE - Economic Activity

2005 2006 2007 2008 2009 2010 2011 2012 2013
Nominal GDP, AEDbn 485.5 624.6 729.7 855 833.8 939.8 1,085.4 1,238.2 1,351.9
Nominal GDP, US$bn 132.20 170.10 198.70 268.10 227.00 255.90 295.60 337.20 368.10
Real GDP growth, %
change y-o-y 8.2 6.6 5.2 6.7 -1.7 3.9 4.8 3.9 5.3
GDP per capital 32,197 40,218 44,254 56,858 48,643 53,753 59,694 65,480 68,740
Population,mn 4.10 4.0 4.50 4.70 4.70 4.80 5.00 5.10 5.40

3.2 Average spending power among the UAE resident

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 Average household spending power in the UAE stands at US$14,400 per
annum, according to property consultants Colliers International. Emirati households
account for the lion’s share of this spending, with an average of US$23,000, while
Western, other Arab and Asian households have annual spending power of
US$19,500, US$13,500 and US$10,000, respectively.

3.3 factor - influencing retails selling growth

While Emiratis actively contributed to retail sales, the buying power of the
country’s expatriate residents was the major source of success, a study by UAE
research firm RNCOS said. Tourism is also a massive factor in stimulating retail
growth, with the UAE expecting more than 11mn tourists every year by 2010.
Growing urbanization is also factor in the buoyancy of the retail sector. Abu Dhabi in
particular is highly urbanized; with the Urban Planning Council (UPC) projecting that
Abu Dhabi City’s population will rise to 1.3mn by 2013. In 2005, 85.5% of the UAE’s
population was classified by the UN as urban and this is forecast to increase to
86.3% by 2010.

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 3.4 Population forecast for the next Five Years

In 2009, the UAE's population was estimated at 6 million,[3] of which just

under 20% were UAE nationals or Emiratis,[81] while the majority of the population
were expatriates.[82] The country's net migration rate stands at 22.98, the highest.
The UN describes 73% of the UAE population in 2005 as economically active,
forecast to rise to 78.6% by 2015. In 2005, just over 30% of the population was in the
crucial 20-44 age range, and this is expected to hit 57.6% by 2015.

4.5. Prediction on sales growth for the consumer goods industry by

the year of 2015
Retail sub-sectors predicted by BMI to show strong growth over the forecast
period include over the counter (OTC) pharmaceuticals, with sales expected to
increase by 71%, from US$0.27bn in 2009 to US$0.45bn by 2014. Automotive sales
are forecast to rise by 55%, from US$10.01bn to US$15.50bn, during the forecast
period. Sales of consumer electronics are predicted to increase from US$2.56bn in
2009 to US$3.62bn by 2014, a rise of 41%.

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 As a conclusion of above factors are underlying the growth consumer goods
industry and the economic downturn did not appear to have a severe impact on the
lifestyles and attitudes of consumers in the UAE. That will provide us positive out look
for the study of this industry.

4. MAJOR PLAYERS IN THE INDUSTRY – WHOLE SALE SECTOR

4.1. UAE Consumer Market:

UAE, one of the most attractive retail destinations around the world,
represents a high potential and untapped market for Consumer good industry. With
growing awareness, surging income levels and shifts in consumer behavior, the
country’s nascent consumer goods market is fast transforming into the world’s fastest

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growing consumer market. In addition, increasing population will further boost
demand for consumer goods in the country.

According to our new research report “Consumer Market has substantially

grown over the past few years and caught the attention of international players. It
showed impressive performance last year (2009), which indicates to the
nonexistence of economic slowdown effects. Aggressive marketing strategies and
consumer acceptance of branded products will enable the industry to register a
CAGR of more than 11% during 2010-2013.

The market will witness a dramatic change in competitive landscape. A large

number of international companies will foray into the lucrative UAE market with their
diversified product portfolio. This will lead players to invest huge amount of money in
product innovation and development in order to capture a significant share of the
overall market. The large untapped market in al areas is anticipated to witness
concrete market developments which will also give impetus to the consumer foods
market.

The rapid development of modern retail infrastructure is luring consumers for

convenient shopping experience and transforming into high retail spending.
Consumer goods companies are optimally utilizing this trend and executing strong
product positioning strategies to maximize their market returns.

4.2. Market Leaders in the consumer Industry

4.2.1 Industry out look

The UAE is leading global consumer market not merely on account of its
strong growing domestic demand, but also because of its role as trading hub serving

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the expanding market of whole Middle East. Located at the crossroads of Asia and
Middle East, the consumer product distributors of emirates serve a potential market
of almost 2 billion people.

4.2.1 Domestic Market

The sophisticated local market has grown strongly in recent years. The UAE
has one of the highest GDP capita in the world, due to its oil wealth. The consumer
goods market is also boosted by excellent telecommunication and information
technology infrastructure. The large expatriate community also drives market
development and helps swell a growing population.

In the last few years, the local market has steadily become more important in
relation to the re-export trade. The UAE is favorite testing ground for multinational
consumer goods vendors for new product launches and marketing initiatives.

In the last few years, the local market has steadily become more important
relation to the re-export trade. The UAE is a favorite testing ground for multinational
consumer electronics vendors for few product launches and marketing initiatives.
Over the last couple of years, the show has become more attractive to global
consumer goods companies with the rise in spending power of the region, particularly
the UAE.

4.3 COMPANY PROSPECTS -WHOESALE

Trading partners we can classify into three types based on their trading
according to the nature of consumer goods and these are durable goods, non-
durable goods, and Semi-durable goods.

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 Leading players in United Arab Emirates for consumer goods industry is a
huge list. It is not easy to take all of them in such small project. Therefore, we
illustrate few companies here in this project based on the activities and types of
consumer goods handling by them.

4.3.1Kuwait Food Co. - Americana (FOOD)

Kuwait Food Co. - Americana (FOOD) is specialized in the industry of canned
and Frozen Goods, Meat and Poultry, Restaurants and Cafes. Kuwait Food
Company Americana KSC is a Kuwait-based public shareholding company engaged
in the manufacture, import, wholesale and retail of consumer food and beverage
products across Kuwait and the Arab markets. The Company is also engaged in the
operation of fast food restaurants and international franchises in Kuwait and the
Middle East. It operates over 1000 restaurants across 17 countries. Its franchises
include Hardee’s, T.G.I. Friday’s, Krispy Kreme, KFC, Pizza Hut, Baskin Robbins,
Samadi and Fish Market. Its consumer food and beverage products are
manufactured in five countries, and are marketed across the region under such brand
names as Americana Meat, Americana Cake, Farm Frites, California Garden, Heinz,
Koki, Greenland, Americana Olives, Gulfa and Beefy. The Company’s subsidiaries
include Egyptian Co. for International Touristic projects (Americana), Egypt; Gulfa for
Mineral Water, United Arab Emirates, and Al Ahlia Restaurants Co., Saudi Arabia.

Maintain a position as the 1st choice of

4.3.1. A Subsidiaries, Associates & Joint Ventures

International Cosmetics Co.

International Fashion Co.

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Kuwait Food Co.

Kuwait Food Co.

Qatar Food Co.

Al Ahlia Restaurants Co.

National Food Industries Co.

America Group for Food & Touristic Projects

Egyptian Canning Co. (Americana)

Products

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Technical Analysis-Kuwait Food Company

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4.4. New medical Centre for Trading- Cosmetics-Healthcare-Food
NMC Trading, is a 100% local organization incorporated in the UAE in 1984,
employs over 1,000 people, with 2007 turnover exceeding US$ 125 million is one of
the UAE’s leading marketing and distribution companies for prestigious international
brands.

NMC Trading is owned by the NMC Group – a multi billion dollar diversified
business conglomerate in UAE with interests in Healthcare, Financial Services,
Manufacturing, Trading, Hospitality, Retailing, Beauty Care, Information Technology,
Advertising and Real Estate

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 The emergence of NMC as a leading player in the trading business stems
from a simple business philosophy - "Advance forays into high potential, high growth
segments and establish a strong presence in these markets".

Armed with a mission critical plan and a team of dedicated marketing

professionals, NMC for Trading is continuously synchronizing the sales, marketing
and distribution support systems for some of the most reputed companies in the
world.

Today, the numbers speak for themselves. Twenty brands occupy premier
slots and an equal number of companies is surfacing in this list, all thanks to able
leadership and focused operational activities. The hallmark of the trading business is
the fourth P in the marketing mix - Physical Distribution.

From temperature-sensitive vaccines and life-saving drugs to ECG machines

and foetal heart monitors, the NMC markets and distributes a wide range of products.
Behind these complex operations are the ultra-modern, strategically located
warehouses and a fully computerized inventory management system.

No wonder, when it comes to logistics, the trading division is famous for its "on
time, each time, every time" deliveries.

The trading wing has stolen the march over competitors by continuously
adding value to the brands of its trading partners, aided by participation in market

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research activities to review, evaluate and propose recommendations to help identify
critical determinants in competitive trade.

In short, NMC for Trading is the gateway for establishing sound businesses in
the United Arab Emirates

The emergence of NMC as a leading player in the trading business stems

from a simple business philosophy - "Advance forays into high potential, high growth
segments and establish a strong presence in these markets".

Armed with a mission critical plan and a team of dedicated marketing

professionals, NMC for Trading is continuously synchronizing the sales, marketing
and distribution support systems for some of the most reputed companies in the
world.

Today, the numbers speak for themselves. Twenty brands occupy premier
slots and an equal number of companies is surfacing in this list, all thanks to able
leadership and focused operational activities. The hallmark of the trading business is
the fourth P in the marketing mix - Physical Distribution.

From temperature-sensitive vaccines and life-saving drugs to ECG machines

and foetal heart monitors, the NMC markets and distributes a wide range of products.
Behind these complex operations are the ultra-modern, strategically located
warehouses and a fully computerized inventory management system.

.The trading wing has stolen the march over competitors by continuously
adding value to the brands of its trading partners, aided by participation in market
research activities to review, evaluate and propose recommendations to help identify
critical determinants in competitive trade.

In short, NMC for Trading is the gateway for establishing sound businesses in
the United Arab Emirates

4.4.1 NMC Trading: Operating Companies

The portfolio of businesses under NMC Trading has been strategically

grouped under 3 operating companies

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4.4.1. A Beiersdorf Cosmetic Trading (BCT)

Product Categories and Key Brands

BCTC represents the following portfolio from Beiersdorf, Germany NIVEA Crèmes

NIVEA Body Lotions ,NIVEA Sun Care, NIVEA Face Care ,NIVEA Hair care,

NIVEA Bath Care, NIVEA Deodorants, NIVEA For Men Range, NIVEA Make Up
Range ,NIVEA Hand Care, Labello Chap Sticks, Eucerin Range, Hansaplast First Aid
Strips,NIVEA Crèmes
f NIVEA PRODUCTS

› Any type
› Face
› Photo
› Clip art
› Line drawing
› Any color
› Full color
› Black and white
› Specific color
› Reset options

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BCTC represents the following portfolio from Beiersdorf, Germany NIVEA Crèmes

NIVEA Body Lotions ,NIVEA Sun Care, NIVEA Face Care ,NIVEA Hair care,

NIVEA Bath Care, NIVEA Deodorants, NIVEA For Men Range, NIVEA Make Up
Range ,NIVEA Hand Care, Labello Chap Sticks, Eucerin Range, Hansaplast First Aid
Strips,NIVEA Crèmes

4.4.1. B New Medical Centre for Trading (NMCT)

Product Categories

The NMT Foods Division supplies international brands of Bread Spreads,Breakfast

Cereal,Cakes (Frozen),Canned Vegetables, Chicken (chilled & frozen),Chocolates,
Coffee, Condiments, Cookies, Cooking Oil, Crabs (frozen), Curry Powders. Fries
(frozen), Fries (frozen),Fruit Juices, Honey, Instant Mixes,Jams, Masala Powders,
Noodles,Pickles & Pastes, Rice,Spices,Spices & Seasonings,Tea,Thai foods,Tuna

Vegetables (frozen)

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NMC Own Brands

Tasty

Food Factory -

BiteRite -

Principal Company Brands

McCormick (Mc Spice, Mc Thai Kitchen, Mc Pop Corn, Mc Vitasoy, Sara Lee, Lamb
Weston, Nectaflor, Droste, Nippon, Mr. Tom, Amor Di Pane, Khaza, Agri Gold, Frooti

Mac Coffee, Kracks, HiTea, Blue Ocean, Handy, Mohanlal Taste Buds

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4.5. Al Ain Dairy

The first established dairy in UAE and a leading producer of dairy products—
has expanded its quality control system at local farms and processing plant through
the establishment of two new technologies; a Food Lab System and Somatic Cell
Counter.

They have forecasted considerable business expansion during 2010 and we

want to do everything we can to ensure that health remains the top priority
throughout the production process

How they operate

Planning

Strategic planning directives are issued by the Board Executive Committee

and provide guidance throughout Al Ain Dairy’s operations. All divisions work
together to formulate independent plans which are then seamlessly integrated as a
blueprint for the company’s operations to meet set directives.

Future sales plans and projections are forecast with reference to historical
statistics, market intelligence, competitor activity and internal and external research.
The sales plan then assists the dairy in planning the raw milk supply required to meet
the sales forecast. Reference to current technical performance data is taken into
account, with consideration given to herd size development and the volume of raw

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milk required from external farms. Financial planning assists all departments by
providing budgets and capital expenditure plans for the forecast activity.

Processing and production

The milk processing function is to convert the available supply of raw milk into
the products required by the sales department on a daily basis. Al Ain Dairy is
equipped with a state-of-the-art processing plant which has many process control
systems in accordance with obtaining HACCP certification. From the milking of the
dairy cows through to the packaging of the finished product, there are many critical
control points, which includes the complete pasteurisation process and these are
continuously monitored. Production records are created and maintained throughout
the whole process, enabling total traceability on all products manufactured.

Products and packaging are analysed regularly and immediate action taken in
the event of non-conformance. All final products are subjected to physico-chemical
and microbiological examination, in addition to monitoring of aseptic points and
online processes.

Strict adherence to the UAE health law, municipality by-laws and the
international health organisations require the manufacturing of safe and healthy
products, in addition to having a good quality assurance system in place. Al Ain
Dairy’s accreditation by HACCP generates confidence from customers and the health
authorities that Al Ain Dairy’s processes meet and exceed safe and hygienic
benchmarks of an international standard.

As the first dairy in the UAE to be awarded HACCP certification, Al Ain Dairy
maintains a competitive edge over other major competing dairies in the region, whilst
offering its customers quality assurance and total peace of mind. Al Ain Dairy’s
quality assurance system has been improved to follow a structured approach by

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formalising all process flows, quality control tests, formulations and by implementing
the HACCP system. The methods used are further improved by comparing Al Ain
Dairy’s processes with those of the local health authority to ensure that all
requirements are met and to assist and verify new techniques. New developments in
testing and monitoring are continually evaluated and implemented if appropriate by Al
Ain Dairy.

Cold Chain Process

The cold chain is an essential element in the supply of fresh and safe milk.
The eight step procedure is a critical process which covers the supply of milk from
cow to consumer. The main aim of the cold chain is to keep bacterial contamination
to minimum levels and provide consumers with safe fresh milk. Temperature is a
main contributor to bacterial contamination, so strict controls have been put in place

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to keep the milk at a constant temperature of four degrees centigrade (+4ºC)
throughout the whole process.

In the first stage, after the cows have been milked under hygienic conditions,
the raw milk output is examined by technicians at the processing plant. This ensures
that the milk is of the required quality and standards.

The milk is then stored in silos at a constant temperature of +4ºC before

starting the processing procedure by being treated by pasteurization. The
pasteurization process involves the milk being heat treated to destroy any harmful
bacteria present in the raw milk. The milk is then subjected to homogenization which
is a mechanical process where the milk fat is evenly distributed throughout the milk.
Homogenization gives milk a creamy taste and stops the fat from collecting along the
top and sides of the bottle as cream.

After being treated by pasteurization and homogenization, the milk is

packaged or formulated into other dairy products prior to being stored for distribution
from the dairy to the sales depots.

The entire fleet of Al Ain Dairy vehicles is fitted with cooling units to enable the
distribution of milk from the dairy to the sales depots and in turn to the retailers at the
required temperature. Al Ain Dairy salesmen regularly monitor that retailers conform
to the requirements of the cold chain by checking and inspecting the temperatures of
the cold storage units used to display products to consumers and remedial action is
taken in the event of non-conformance.

The cold chain process ultimately provides the consumer assurance and
confidence that they are purchasing the freshest milk that has been produced, stored
and distributed under the most hygienic and controlled conditions possible.

Purchasing

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 Streamlined and efficient Purchasing procedures ensure that Al Ain Dairy
obtains the best quality raw materials and other production requirements in the most
timely manner. Comparative pricing and evaluation is used in all purchases made by
the dairy to guarantee procurements are being made at the most competitive prices
possible.

Products
» Milk » Yoghurt» Flavored Milk» Laban & Laban Drinks» Health & Lifestyle Products
» Desserts» Juices» Coffee Drinks» Camel Milk» Long Life Milk

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 The Al Ain Diary bags award of ISO certification to Al Ain Farms in November
2009 for planning, implementing, and maintaining a Food Safety Management
System to work across the company’s operations. Such recognitions are an

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important means of encouraging local companies to elevate their production
standards to worldwide calibers.

The Al Ain Diary bags award of ISO certification to Al Ain Farms in November
2009 for planning, implementing, and maintaining a Food Safety Management
System to work across the company’s operations. Such recognitions are an
important means of encouraging local companies to elevate their production
standards to worldwide calibers.

4.6. Al Futtaim Motors.

Considering the study on Consumer good of we have to look the Automobile
industry as well.

Al Futtaim Motors established in 1955, currently it occupies the pre-eminent

position of the largest distributor of automotive products in the Emirates, and leads
the rapid development of automobile business in the UAE, while continuing to
contribute to Toyota's worldwide growth.

Today, Al-Futtaim Motors is synonymous with Toyota and Lexus, which enjoy
undisputed leadership in the UAE in terms of the largest number of vehicles on the
road. Besides Toyota, we also hold exclusive franchises for some of the world's top
automobiles and automotive products like Hino - Japan's leading heavy-duty vehicle
manufacturer, Toyo & Chen shin/ Maxxis tyres, GS & Panasonic batteries and many
more.

To provide full back-up support to these world-class franchises, we have an

established network of showrooms and service & parts centers throughout the UAE.

The UAE's auto industry is seeing a slow recovery during the first quarter of
this year, as consumer confidence and financial lending gradually picks up, industry
experts said.
Page 3 of 87
 "International Expo Consults have suggested that automotive car sales are
expected to rise by an average of 19.2 per cent this year whilst car ownership is
projected to rise to 55.9 per cent in 2010 from 55.4 per cent in 2009," said Ehsan
Koman, an economist at Dubai Chamber of Commerce and Industry

Al Futtaim become benchmarks in their respective market segments, setting

unrivalled standards in the automobile industry.

A name that spells quality and value for money, Toyota enjoys a majority
market share in the highly competitive and consumer conscious UAE market. Each
one of its wide spectrum of vehicles is a leader in its class and the first choice of
discerning consumers.

With an exhaustive range of passenger cars that is designed to satisfy every

customer and meet every possible budget, Toyota continues to dominate the UAE
roads. Be it the revolutionary Echo, sporty xA, reliable Corolla, elegant Camry, the
luxurious Avalon, the spacious Innova, the new Yaris Hatchback to the all new Yaris
Sedan, each model is a winner in its class. No need to wonder, therefore, why every
fourth passenger car in the UAE is a Toyota.

For a country that offers a unique off-road experience, Toyota has an

impressive line-up of 4 x4s. From the fun machine RAV4, to the affordable Prado, the
mighty Landcruiser and the all new Fortuner, Toyota continues to lead the way.

And that's not all. Toyota's unmatched range also includes light commercial
vehicles such as the all New HILUX pickup cabs, vans like the HIACE, and
passenger coaches like the COASTER.

Toyota engineers have worked long and hard to make the year all models
even better (a difficult job by any standards). It is this level of dedication that gives
Toyota such a strong, competitive edge. A wide choice of models which meet every
individual requirement, superior technological features and specifications, high
quality, low overall cost of ownership and legendary resale value make every Toyota
a sound investment.

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 Al-Futtaim Motors is the largest distributor of automobiles and automotive
products in the Emirates, with fully computerized showrooms plus fully-equipped
service workshops and parts facilities in every emirate.

An aggressive Customer Satisfaction programme, designed to enhance our

service levels right across the company, from showroom to workshop, continues to
foster Customer relationships. Our ultimate goal is to consolidate our position as the
number one distributor in the UAE by achieving new standards in customer
satisfaction.

4.6.1 Auto sector poised to rise by 5pc in the UAE

Auto sales in the UAE are expected to rise 5 per cent between 2009 and 2010
as an easing in liquidity conditions boosts confidence in the sector, according to an
analysis by the Dubai Chamber.

A general high-level of disposable income and renewed consumer confidence

in the UAE on the back of easing liquidity conditions, provides a favourable
background for the auto sector in the coming months. Furthermore, plans for a car
production plant in the UAE could help initiate a local automotive manufacturing
industry.

Since the UAE is the fastest growing auto market in the Middle East, the
sector is in a position to expand with preliminary plans for a car production plant to
help spawn a local auto manufacturing industry already in place.
"The automotive sector was affected by the financial crisis as banks became more
cautious in granting auto loans. But with the UAE accelerating on the path to
economic recovery, banks are now being more flexible with auto financing which will
no doubt benefit the sector, fuel the demand, and ultimately increase sales, as per
Dubai Chamber Director.
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 The analysis disclosed that it is increasingly apparent that the UAE automotive
market is mature, with vehicle ownership rates of over 540 per 1,000 inhabitants —
a rate that exceeds most of the developing world.

Car dealers in the UAE are optimistic on the outlook for the second half of
2009 and are confident that their sales will grow though at a lower rate, in what
seems like a challenging year on the back of the global financial crisis. This is
primarily down to an easing in lending conditions with banks loosening their belts and
imposing lowers rates and more lenient requirements on borrowers. Over 70 per cent
of new car purchases are made on credit in the UAE. Galadari Automobile's General
Manager R. Krishnan expressed a cautious optimism about the rest of 2009.

The combination of relatively high living standards, a growing population in

the UAE, as well as a resurgence in oil prices, have been the key driving forces
behind the growth in the auto sector in the UAE. Despite an expected slowdown in
auto sales this year, the outlook based on resurgence in consumer demand on the
back of a pick-up in the global economy is likely to lead to robust growth in 2010 and
beyond.

Whilst the UAE does not possess a sizable domestic automobile

manufacturing capability, its high national wealth has created a niche market for
sales of imported vehicles in recent years, and there is a large re-export trade based
on the country's regional status as a key strategic location, Dubai Chamber said. Car
ownership is expected to rise above 55 per cent this year for the first time in the
country's history. The analysis further revealed that though Abu Dhabi contributes
over 55 per cent to overall UAE GDP, its economy is dominated by the energy
sector. Thus, it is diversified Dubai that is experiencing the most rapid growth, and it

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has taken a lead in the auto sector, accounting for nearly 50 per cent of the total
vehicle stock Khaleej Times

The growth 2008 was 34 per cent, and 2009 year, it was 19 per cent expected
the growth to be not less than 5 per cent in 2010. Globally, the crisis will ease once
the banking system is fixed

The growth 2008 was 34 per cent, and 2009 year, it was 19 per cent
expected the growth to be not less than 5 per cent in 2010. Globally, the crisis will
ease once the banking system is fixed

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4.7 JUMBO ELECTRONICS: Leader in consumer electronic products

The flagship company of the Jumbo Group, Jumbo Electronics Company Ltd. (LLC)
was founded in 1974. Jumbo is one of the leading names in the field of consumer
electronics, information technology, telecommunications, home appliances, office
automation and entertainment in the United Arab Emirates and is amongst the first
transnational corporations with a well spread out network of 30 retail stores and 9
service centres across the Emirates. Jumbos presence in the UAE encompasses the
seven Emirates of Dubai, Sharjah, Abu Dhabi, Umm Al Quwain, Ras Al Khaimah,
Fujairah and Ajman.

Jumbo is ISO 9001 certified with established systems and procedures which are
constantly tested and improved upon to best serve customer needs.

GLOBAL BRANDS
A partner for the world’s leading brands, Jumbo’s extensive retail and distribution
network have made it a natural choice for manufacturers wanting to establish their
products in the growing Middle East markets. One of the largest distributors of Sony
products in the world, the company has an enviable line-up of various other
international brands in its portfolio. Jumbo is a distributor for Acer, Blackberry,
Brother, Casio, Dometic, Du, Dyson, Etisalat, Gorenje, Hewlett Packard, LG, Ricoh,
NCR, Rionet, Sennheiser, Sony, Supra, Vaio.

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In addition to the above brands, the retail arm of the company also handles most of
the other well know brands including Apple, Asus, Belkin, Bit Defender, Buffalo,
Cisco, Compaq, Dell, Fujitsu, Garmin, HTC, IBM, Imation, Intel, Kasperesky, Lenovo,
Logitech, Microsoft, Mio, Motorola, Net Apps, Netgear, Nokia, Optoma, Orion,
Packard Bell, Pixel Point, Samsung, Seagate, SCR, Sony Ericsson, Toshiba,
VMWare, Western Digital, Wincor Nixdorf.

From modest beginnings in 1974, Jumbo’s remarkable progress into becoming a

consumer electronics giant has been built with an uncompromising adherence to
quality. Jumbo’s five principal divisions - Sony, Information Technology, Telecom,
Supra and Agencies Divisions - work seamlessly with channels such as the Retail
and Corporate Sales, with support from the Central Services and Logistics, to set
new benchmarks in customer service.

Global Brands

Asus Packard Bell Vaio

Gorenje Sony

Casio Brother Nokia

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 Sony Ericsson Ricoh Hewlett-Packard

Acer Toshiba Apple

Current Scenario in the Consumer Electronic Market - Analysis

The UAE is not only a leading market for consumer electronic products in the
neighboring region extending from the Indian sub-continent to East Europe, but is
also an important trading sector in the domestic non-oil economy. The total turnover
of the consumer electronics market is estimated to be almost US$2.9 billion. Most of
the demand for consumer electronics is from outside the domestic market, viz. re-
exports, tourists and travelers.

Consumer electronics trade is usually understood to include watches, still

cameras and household electrical appliances (white goods). However, the largest
amount of business is conducted in audio/visual products (brown goods), which
account for about 60-65 per cent of business. White goods being bulky do not enjoy
the same ease of transport as the former, and consequently do not have the same
re-export and "carry" potential as brown goods. The largest proportion of sales of
electronics items are "carry" sales, namely sales in the domestic market which are
"carried" by individual travellers out of the country. Industry sources estimate such
sales to have an almost 40 per cent share in sales. Such sales are known as semi-
wholesale, as "carry" individuals make dedicated trips for the purpose of purchase of
electronics, and purchase significant quantities.

Pure domestic sales are around 40 per cent as well. Mostly retail, these are
for local consumption by residents and those purchased by expatriate residents as
gifts etc. on home leave. Pure domestic demand is in fact very low, considering that

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the market is already saturated. According to a report in early nineties, 90 per cent
and 70 per cent of the households owned a television and Video Cassette Recorder
respectively. Only about 20 per cent of sales are officially registered direct re-exports.
The re-export markets which developed in the 70s were Iran, India and Eastern
Africa. Iran is still the most important official re-export market for the United Arab
Emirates. East Europe and particularly the CIS were an important addition since
1989 onwards. The entry of buyers from these markets has significantly lifted the
annual volume turnover of the electronics market by up to as much as 20-25 per
cent.

UAE leading Distributors

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5.1 CALSSIFICATION OF TRADING PARTNERS IN CONSUMER
GOODS INDUSTRY –REATAIL SECTOR
The UAE has been ranked eighth among the top 15 most international retail markets,
with 41 per cent of international retailers present in the emirate. The global footprint
of 250 of the world's top retailers revealed that the UAE is now ranked among the top
international retail destinations ahead of countries such as china, Singapore, Russia,
us and the Netherlands. Retailing in the UAE has changed beyond recognition in
recent years with the emergence of some of the most high-profile retail developments
anywhere in the world.

According to our latest research report "Booming Retail Sector in UAE",

offering huge potential for retail developments, the UAE is gradually becoming hub
for international retail giants. In the tough post-recession scenario, when prominent
retail markets around the world are struggling to survive, UAE retail sector has
continued to record a reasonable growth. The report projects that the retail sales in

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the country are expected to remain intact and will achieve one of the highest CAGR
globally in coming years.

The report reveals that rapid development in country's modern retail

infrastructure is luring consumers for convenient shopping experience, thereby
leading to increased retail spending.

In view of the study of consumer goods industry retail outlet playing a major
role in sales and marketing.

5.2 EMKE Group is an Abu Dhabi

The company with interests in retail shopping and other businesses, EMKE
are the developers of several supermarkets, hypermarkets, and shopping centers in
Abu Dhabi and elsewhere in the UAE and other countries in the GCC region.
Turnover of more than $2.1 billion (AED 7.7 billion) in 2008 Previous figures
(unconfirmed) $1.2 billion in 2005, $1.4 billion in 2006, $1.14 billion in 2007.

5.2.1EMKE Group shopping centers and hypermarkets in the UAE

Lulu's supermarkets and hypermarkets - in all seven emirates (Abu Dhabi,

Ajman, Dubai, Fujairah, Ras Al Khaima, Sharjah, Umm Al Quawain) and other GCC
countries. A total of 75 with the opening of one in Al Ain in August 2009.

a. Al Falah Plaza, Abu Dhabi

b. Al Raha Mall, Abu Dhabi, open 2007
c. Al Wahda Mall, Abu Dhabi, open 2007
d. Emirates General Market, Abu Dhabi
e. Khalidiyah Mall, Abu Dhabi, open 2008

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 f. Madinat Zayed Mall
g. Mazyad Mall, Mussafah, Abu Dhabi, open 2009
h. Lulu Center
i. Lulu Express - smaller versions of Lulu Hypermarkets (there's one in
the new Mazayad shopping mall in Mussaffah)

Khalidiyah Mall is located in the densely populated residential area of Al Khalidiyah. Architecturally
inspired by arabic traditions, the Mall is spread over a total built up area of 86,000sq. mtrs. and offers
2500 covered car park spaces.With its prime location, premium brands,
exclusive ambience and world class facilities Khalidiyah Mall has been
conceived to ensure total shopper convenience. Expansive multi-cuisine
Food Court, Amusement Arcade, Cinema Complex, three level of
elegantly laid out space with Outlets;

everything combines with Khalidiyah Mall to give the shoppers a uniquely

Al Wahda Mall, located in Airport road besides the famous Al

Wahda Sports and Cultural Club stands in an area of 1.5 million
square feet and houses 152 brands, a 200,000 square feet Lulu
Hypermarket, the biggest in the city and 9 levels of covered
parking. It opened to the public on the 31st of May 2007.

5.3 Abu Dhabi Co-op Supermarkets

Year 1981, UAE saw the birth of a retailing revolution through the inception of
the first 'Abu Dhabi Co-op' supermarket. Seven committed professionals put together
their efforts to see through a 30,000sqft. supermarket and little did they know this
odyssey would turn to a $30 billion organization, employing 2,200 professionals with
primary interests in Hypermarkets, Supermarkets, Shopping malls, Retail parks &
Franchise operations.

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 Currently the Company is diversified into various business segments. Some
are Supermarkets, Hyper markets, Consumer goods, Distribution, Real estate,
Franchise for International Brands, Electronics Superpark, Infotech, Share
Investments and Imports.

At Abu Dhabi Co-op, customer find quality products at a reliable price. As a

leading super market chain, we provide almost all products available in the market.
We are associated with Consumer Co-operative Union of UAE, a volountery
consumer protection organization. There is a wide range of fast moving items are
made available across UAE by the union through its band name "CO OP". You may
find the product range associated with CO-OP brand here. Supermarket &
Hypermarkets

With Ten branches in Abu Dhabi and an annual turnover of Dhs. 750 Million,
Abu Dhabi Co-operative Society is the No. 1 retail chain in Abu Dhabi commanding
43% share of the retail market. Abu Dhabi Co-operative Society has retail operations
spanning through 1.5 million sqft. The most recent Megamart Hypermarket chain is
Abu Dhabi Co-op's retail arm in emerging markets with two stores, one in Sharjah
and the other in Al Ain. Abu Dhabi Co-op is a part of the Consumer Co-operative
Union, which is also the governing body for the various Co-operatives in the UAE.

Retail Park

Mina Center the first retail park in the Middle East is established around the
principal of large retail concepts under one roof established a little away from the
hush and rush of the city. Similar to retail parks in the west, Mina Center offers
serious shopping through large concept stores offering no-frill value bargains on
reputed brands from reputed resellers.

Shopping Malls

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 Mina Center, Sharjah Mega Mall & Abu Dhabi Co-op shopping centers are
state of the art shopping malls of the group. Well laid out leisure and shopping
destinations the shopping malls houses reputed global retail concepts.

Franchise Operations

2XL French furnishing and home decor concept Abu Dhabi Co-op represents
the concept in the Middle East as the Master Franchisee for the French furnishing
concept XXL. 2XL offers radical design driven furnishing concepts through state of
the art stores spanning 60,000sqmtr

5.4 Majid Al Futtaim Retail (Carrefour)

Recognized as one of the most active shopping concept developers
throughout the region, the Group first introduced the hypermarket model to the
Middle East in 1995. Majid Al Futtaim Retail manages Majid Al Futtaim
Hypermarkets, a joint venture company with the world’s second largest retailer
Carrefour, and offers shoppers the same quality, variety and value-for-money that
have made the brand a household name to millions over the world.

In the last 3 years, Majid Al Futtaim Hypermarket has opened 14 new Stores.
In the expansion of Carrefour across the region currently there are 37 hypermarkets

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in the Middle East. In the coming year of 2010, Majid Al Futtaim Retail expects to
open 10 new stores.

Carrefour reputation has been built, above all, on the quality and freshness of
the products, customer service and competitive prices. Selling goods with quality
choices in food, personal care, communication, leisure, entertainment and household
goods while continually meeting the needs of local consumers in 2009, with the
ranging from needed to refrigerate food to clothes under one roof, is trendy as
shoppers pick specialized stores. Carrefour’s own retail brands are a significant
medium for brand differentiation and customer loyalty, contributing substantially to
the organization’s growth in sales

Majid Al Futtaim Retail is honored to share the experience of Carrefour

growing with more than 13000 Employees from more than 50 different nationalities in
11 countries.

5.5 SPINNEYS DUBAI LLC

Spinney’s is one of the best known supermarket groups in the Middle East. It’s
particularly popular with British expatriates because it stocks Waitrose products.

1995 Spinney’s acquired Fine Fair Commercial Complexes, built Ramada

Supermarket & a brand new distribution center at Al Quoz. In 1997 Spinney’s center
in Umm Sequim was opened. In 1999 Spinney’s Ghubaiba was acquired from First
choice & closed its Qassimia Supermarket.

In April 1999, Ali Albwardy took 100% ownership of the Spinneys Dubai
Group.

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 Spinney’s group today is involved in distribution and marketing of consumer
goods and liquor products, supermarket retailing, food services, and exports of
consumer products. The group's activities extend to the entire UAE which includes
Dubai, Abu Dhabi, Sharjah, Ajman, Umm AI Qwain, Ras Al Khaimah and Fujairah.

The company operates nine supermarkets in Dubai and four in Sharjah. The
largest is at the Mercato Centre with 40,000 sq ft.area.

Spinneys imports a large proportion of its retail products and a state-of-the-art

computer system has been installed to facilitate point of sale scanning and to provide
sales and stock data.

The retail stream of the company expects the fastest growth in future

Consumer Products Distribution & Marketing

Examples of brands represented:

Nestle -Nescafe, Nido, Maggi, Libby's, Rowntree Mackintosh etc

Kraft –Cheeses, Colgate -Toothpaste, toiletries etc,

Reckitt & Coleman,-Dettol, Pif Paf etc

Kimberly Clark -Kleenex, Huggies, Kotex etc

Nabisco -Biscuits, Jellies, Angliss Pacific -QBB Ghee

5.6 Choithram Supermarkets

Choithram Supermarket and Department Store is the best example for the
retail and whole sales sector of consumer goods industry

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 In UAE Choithrams have come up in convenient locations across the seven
Emirates. With its unbeatably high standard of quality and service, Choithrams has
become a name synonymous with excellence in the region today.

True to its mission of absolute customer satisfaction, Choithrams provide the

freshest fruit and vegetables and quality meats. The variety of wholesome seeded
breads, light creamy cakes and croissants are baked in store every day. And the
readymade chilled and hot meals are a great relief to a growing number of customers
who are always on the go.

The efficiency of the chain was recognized when Choithrams was awarded the
first ever "Grocer of the year" RetailME award in 2005, for overall excellence in the
field of food retailing. It was a true testament to the competence of Choithrams in
successfully catering to the needs of a diverse population.

Choithrams- a successful enterprise

Choithrams is today a successful group with associates in diverse fields like

wholesaling, commodity brokerage, and manufacturing of edible and non-edible
items. This rich association brings to the group a huge bank of experience and
resources. Choithrams came to UAE in 1974 and has grown to a retail chain with
over 25 supermarkets in the emirates.

Choithram Supermarkets is the face of a large and successful network of

companies, T. Choithram & Sons. T. Choithram & Sons was establised in 1944 in
Sierra Leone, West Africa. Since then, it has developed into an international
company spanning Europe, North America, Africa as well as the Gulf, and remains a
private business. The trust funds and manages a group of schools and hospitals in
India and West Africa.

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 It was in the 70's that Choithrams came to the Gulf countries namely UAE,
Oman, Bahrain and Qatar. It brought with it international expertise, experience,
networks and communication built over 60 years in 25 countries.

Since then there has been no looking back and Choithrams is today a trusted
name and a significant contributor to the fast paced economic and social growth of
the Gulf region.

6. Supply chain management

Supply chain management (SCM) is the management of a network of
interconnected businesses involved in the ultimate provision of product and service
packages.

Design, planning, execution, control, and monitoring of supply chain activities

with the objective of creating net value, building a competitive infrastructure,
leveraging worldwide logistics, synchronizing supply with demand, and measuring
performance globally.

In consumer goods industry SCM is the core factor to mobilize industry which
determine the growth of the market. Its make the consumer goods are turning to
consultancies to help reduce sales losses and cope with high growth by creating so-
called supply chain management networks. The primary intention of SCM is that the
product should reach the to customer in least time. Therefore SCM in basic

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requirement of any industry to grab their position in the market.

7.1. INDUSTRIAL FORECAST SCENARIO

MACROECONOMIC FORECAST:
Downturn Raises Employment Questions
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 We are forecasting recession for the UAE in 2009, with lower oil prices-
and reduced investment spending two of the key culprits. The downturn will bring
employment regulations to the fore, as the government balances the need to
encourage continued immigration while protecting the employment of UAE citizens.

While recently released figures from the Ministry of Economy confirmed the
UAE's strong economic expansion in 2008, we believe that government bullishness
regarding the effectiveness of its fiscal rescue package is somewhat misplaced. We
remain bearish regarding the country's growth prospects this year; indeed we are
now forecasting an outright recession, with the economy expected to contract by
1.7%. In our view, government spending will limit the downside and stave off job
losses in key sectors, but will not be sufficient to fully counteract the contraction in
trade volumes, the slowing of consumer spending on the back of population losses
and the severe cutting back of investment plans.

GOOD TIMES ARE PAST

A recent statement by Sultan bin Saeed aI-Mansouri, the UAE Minister of Economy,
put real GDP growth at 7.4% in 2008, slightly above our 6.9% estimate for the year.
While we are still awaiting a full breakdown of GDP by expenditure from the ministry
or the central bank, the minister's statement confirmed a number of key trends that
we were following throughout the year. Most important of these was the surge in oil
revenues as prices peaked in the middle of the year. Overall, the contribution of the
oil sector to GDP rose from 35.9% in 2007 to 37.9% in 2008. The second trend was
the sharp upswing in investment spending,much of which was ploughed into real
estate developments. Both these trends have already witnessed a sharp reversal. On
the oil front, we recently raised our forecast average annual price to US$45.50/bbl for
the OPEC Basket in 2009, up from our previous figure of US$39.50/bbl. However,
this is still less than half of the 2008 average of US$95.40/bbl. Oil prices are likely to
creep up again as global demand recovers in the second half of this year and from
2010 onwards, but we believe a return to 2008 levels is unlikely in the foreseeable

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future. Even by 2012, we are forecasting an average price of DS$71.50/bbl, broadly
on a par with 2007.

Lower oil prices, combined with stricter lending requirements by banks and
greater caution among investors whose fingers have been burned (or are still
getting burnt) by the collapse in real estate prices will also translate into less
exuberant investment plans. We see real growth in gross fixed capital formation
(GFCF) remaining in single digits over the next two to three years, rather than the
rates of 15-20% (or likely even higher in 2008) seen over the past three, as plans
for many real estate projects are shelved, others are scaled back and the
government begins to play more central role in infrastructure development.

ACKNOWLEDGING THE PROBLEM

While the economy ministry is painting a bullish picture, comments from
elsewhere in the ruling elite suggest that the government does recognise the
magnitude of the challenges facing the DAE economy this year. In mid-March, the
central bank governor, Sultan bin Nasser al-Suweidi, admitted that growth was
likely to slow to low single digits, or could even turn negative, this year. He
promised interest rate cuts to stimulate growth, although as is the case around the
world, the real problem is translating central bank cuts into lower market rates for
consumers and businesses. At the time of writing, the DAE interbank offered rate
(AEIBOR) stood at 2.9188%, compared with a central bank repo rate of 1 %

Another key area where the government is sitting up and taking notice is population
growth. We have long argued that a steady expansion of the population is essential
to the UAE's growth plans. Immigration, by both highly skilled white collar workers
and unskilled laborers, has fuelled the country's recent boom. Highly skilled
migrants have brought experience and expertise in key non-oil sectors such as
financial services and construction, while laborers from south Asia have provided
the manpower for the bulk of construction projects. On top of this, steady population
expansion has driven increases in consumer spending and fuelled demand for

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housing, particularly in Dubai, the first Emirate to allow foreign ownership of
property.

With many construction sites now lying untouched, large numbers of laborers
have lost their jobs and redundancies have spread to office workers in the real
estate and financial sectors. With most visas for foreign workers tied to
employment, those that lose their jobs often have only a few weeks in which to find
new employment before being forced to leave the country. The scale of recent
emigration is unknown; the ministry of labour has insisted that thousands of new
work permits are still being issued, although it is not clear what proportion of these
are simply renewals of existing permits.

In 2009, we are currently forecasting a 1% contraction in the total population

to 4.67mn. However, the government is reportedly re-examining its immigration
regulations, with a view to making it easier for unemployed expatriates to remain in
the country while they search for new jobs. Without changes to the current system,
Dubai - probably the Emirate most reliant on foreign labour - has little chance of
achieving its 3% workforce growth target in 2009 (even with these changes, we
think this figure is optimistic).

EMPLOYMENT NATIONALISM
But at the same time as it tries to retain foreign workers, the UAE is also
keen to shield its native population from the Impact of the economic downturn.
Dubai recently launched another 'Emiratisation' drive, aimed this time at increasing
the proportion of UAE citizens employed in the public sector (previous initiatives
have tended to focus on encouraging private firms to take on more local staff).

Recent research by the UAE University found that among over 120 private
firms surveyed, less than 1% of their employees were Emirati. Figures were much
higher in the public sector, but still not high enough according to Sheikh Mohammed
bin Rashid, ruler of Dubai and the UAE's Prime Minister. Just 25% of staff at federal
authorities, and barely more than half of those employed in ministries, are UAE
citizens.

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 The poverty that often accompanies unemployment is not such an issue in
the UAE - the. government has always provided its citizens with a generous range
of welfare benefits, ranging from free education and healthcare to subsidised land
and loans for house building. That said, with a young population, providing enough
jobs is still a concern and job losses among Emirati staff will always be unpopular,
particularly when there are still large numbers of foreign workers still employed in
the UAE. However, until now the government has tried to tread carefully. Rules on
emiratisation have not been strictly applied, as the state recognised the tradeoff
between boosting domestic employment levels and remaining competitive.

UAE - ECONOMIC ACTIVITY :

Table: UAE - Economic Activity

2005 2006 2007 2008 2009 2010 2011 2012 2013
Nominal GDP, AEDbn 485.5 624.6 729.7 855 833.8 939.8 1,085.4 1,238.2 1,351.9
Nominal GDP, US$bn 132.20 170.10 198.70 268.10 227.00 255.90 295.60 337.20 368.10
Real GDP growth, %
change y-o-y 8.2 6.6 5.2 6.7 -1.7 3.9 4.8 3.9 5.3
GDP per capital 32,197 40,218 44,254 56,858 48,643 53,753 59,694 65,480 68,740
Population,mn 4.10 4.0 4.50 4.70 4.70 4.80 5.00 5.10 5.40

8. SWOT ANALYSIS
Swot Analysis is a strategic planning method used to evaluate the
Strengths, Weakness, Opportunities and Threats involved in a project or in a
business venture. It involves specifying the objective of the business venture or
project and identifying the internal and external factors that are favourable and
unfavourable to achieving that objective. The technique is credited to Albert
Humphrey who led a research project at Stanford University in the 1960s and 1970s

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using data from Fortune 500 companies. The Fortune 500 is an annual list compiled
and published

By Fortune magazine that ranks the top 500 US public corporations as

measured by their gross revenue.

Strengths and Weaknesses are internal factors that create value or destroy
value. They can include assets skills or resources that a company has its disposal,
compared to its competitors. They can be measured using internal assessments or
external benchmarking.

Opportunities and Threats are external factors that create value or destroy
value. A company cannot control them. But they are emerging from either the
competitive dynamics of the industry / market or from demographic, economic,
political, technical, social, legal or cultural factors.

8.1 SWOT ANALYSIS OF CONSUMER GOODS INDUSTRY IN UAE

STRENGTH
• Rising income levels, i.e. increase in purchasing power of consumers

• Large domestic market- a population of over one billion.

• • Export potential

• One of the largest consumer industry in the Gulf region, accounting close to
85% of regional speeding

• A trading hub serving the expanding market of Saudi Arabia & Gulf as well as
further-flung regions such as East Africa

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 • There is government support for many projects

• One of the major economy of the country

• Vast customer portfolio

• Marketing many brands

• Good will

• Location of business-loccal manufacturer

• Cost advantage-manufacture supplier

• New and innovative products

WEAKNESS

• Piracy and parallel imports. Country’s low trade barrier contribute

to a growing problem with counterfeit or grey market goods

• Regional economy very dependent on oil, despite diversification

effort in many sectors

• Lack of product awareness with European consultants

• Lower scope of investing in technology and achieving economies

of

• scale, especially in small sectors

• Low exports levels

OPPORTUNITIES
• Fast growing consumer goods industries in UAE

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 • Private label growth to enhance brand & margins

• Vast untapped market

• High income growth in GCC countries

• Stable economy of UAE

• Innovation of new products

• Strategic alliances

• A new international market

• Wealthy domestic market offers continued growth potential

THREATS
• Recession - seriously affected the construction industry all over
the

world.

• Decreasing petroleum products price.

• Rising commodity & shipping prices

• Cut- throat competition.

• Non availability of reliable trade partners.

• Non availability of qualified and experienced staff.

• Entry of new foreign competitors.

8.2 UAE ECONOMIC SWOT

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STRENGTH

• UAE is a member of GCC which as well as being a common

market, is targeting a common currency by 2012(although UAE looks, at
present, unlikely to participate)

• UAE has one of the most liberal trade regimes in Gulf and
aattracts strong capital flows across the region

• In common, with most gulf states, there are high number of

experienced workers at all levels of economy

• UAE is progressively diversifying its economy, minimizing

vulnerability to oil price movements

WEAKNESS
• UAE’s currency is pegged to dollar giving it minimal control over
monetary policy and reducing the ability to tackle inflatory pressure

• The state’s location in a volatile region means that its risk profile is
to some extent, affected by US concerns about regional militant groups and
Iranian WMD programmes could affect investor perceptions

OPPORTUNITIES

• Oil prices are expected to stay high over forecast period

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 • Economic diversification into gas, tourism, financial services &
high tech industry offers some protection against volatile oil prices

• The construction, tourism and financial sectors are growing rapidly

driven by domestic and foreign investments

THREATS
• Heavy subsidies on utilities and agriculture and an outdated tax
system have contributed to persistent fiscal deficits in the past,although rising
oil revenues have masked the problem in recent years

• Some bottlenecks have been forming in construction sector and

there is a chance of delays in several high profile construction projects

8.3 UAE BUSINESS ENVIRONMENT SWOT

STRENGTH

• UAE is a member of GCC,a six member common market and has been a
member of WTO since 1996

• The state has invested large amount in infrastructure and will continue to do
so over next 10 years

• UAE’s diversified economy reduces risk from volatile oil prices

WEAKNESS

• Due to state’s federal nature, regulations can vary considerably across the
emirates

• The regional economy is oil dependent. This has historically been cyclical
which increase risk for long term project

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 OPPORTUNITIES

• Large number of free trade zones offering tax holidays and full foreign
ownership comparatively relaxed rule on expertise employment

• The UAE’s social stability and relative property means that there is far less
concern for security than in some other gulf states

THREATS
• The state is bureaucratic relative to regional peers

• Strong oil prices massively increased liquidity in the region.

• This has resulted in strong in strong financial inflows, increasing risks that
projects of lower investment potential are currently being funded.

9.1 DATA ANALYSIS AND INTERPRETATION

CUSTOMERS CHOICE

Consumers are responsible factor for the sales of any product or services.
So, when a new product is launched in the market, understanding consumer’s
buying behavior becomes very essential. For this marketer has to study and
understand the various factors which influences the customers thoughts while
buying any product or services.

Consumer purchases are influenced strongly by four factors.

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 1. Cultural Factor
2. Social Factor
3. Personal Factor
4. Psychological Factor.

CULTURAL FACTOR:-
The set of basic values perceptions , wants, and behaviours learned by
a member of society from family and other important institutions. Culture is the most
basic cause of a person’s wants and behavior . Every group or society has a
culture, and cultural influences on buying behaviour may vary greatly from country
to country.

SOCIAL FACTORS :-
A consumer’s behavior is influenced by social factors, such as the
Groups ,Family, Roles and status

PERSONAL FACTORS :-
It includes Age and life cycle stage, Occupation , Economic situation , Life
Style , Personality and self concept.

PSYCHOLOGICAL FACTORS :-
It includes these Factors. Motivation, Perception , Learning , Beliefs and
attitudes. Here the data collection method include both field research or primary
research and secondary research. Here primary research means collecting
information from the customers directly through surveys. Its disadvantages are that
it is expensive to collect, time consuming and needs a large sample size to be
accurate The secondary research is collecting information from the annual reports
of various companies , journals and search engines .The secondary research is
more cheaper and easily accessible. Disadvantages of secondary research are that
it is often not specific to our area of research and data used can be biased and
difficult to validate.

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 All the above mentioned company’s products have its own advantages.
Some products may have less cost, some having good quality, or some may have
their easily availability. Customers are of different types with different attitudes.
Some customers prefer less costly products. Some people give more importance on
the quality of products. So it depends on the customer to choose the product and
most of the customers are not interested to reveal which company’s product they
prefer.

9.2 Data analysis of Primary Data

In this section I will present the data analysis of the primary data collected
through the survey conducted in the shopping malls for this particular study.
Following please find the primary data gathered through the survey /questionnaire

Public Participation on Mall Visits

The following chart it shows that there are families visiting mall to purchase
consumer goods in UAE. It is the 70% of the total population.

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Country of residence:

In the following chart the mostly people who are visiting to the shopping malls are the
residents of UAE. There only few visitors from other countries.

Shopping Malls preference in terms of Nationalities.

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In the following chart it shows that different nationalities prefer to visit different
Shopping

Foreign Direct Investment (FDI)

Automatic investment approval and there is a continuous growth in net FDI Inflow.
ere is an increase of about150 per cent in Net Inflow for Vegetable Oils for the year
2009

NET FDI FLOW IN UAE IN BILLIONS

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10.0 DATA ANALYSIS SECONDARY DATA
In this section Will be presenting the data analysis of the secondary data
gathered through the different resources i.e. through websites publication related to
the business and marketing in UAE. Following please find the secondary data
gathered.

Growth Industry
A sector of the economy experiencing a higher-than-average growth rate

Growth Rates
The amount of increase that a specific variable has gained within a specific
period and context. For investors, this typically represents the compounded
annualized rate of growth of a company's revenues, earnings, dividends and
even macro concepts - such as the economy as a whole.

Different types of industries have different benchmarks for rates of growth. For
instance, companies that are on the cutting edge of technology would be more likely
to have higher annual rates of growth compared to a mature industry, like retail sales.

The use of historical growth rates is one of the simplest methods of estimating
future growth. However, historically high growth rates don't always mean a high rate
of growth looking into the future, because industrial and economic conditions change
constantly.

Compound Annual Growth Rate – CAGR

The year-over-year growth rate of an investment over a specified period of
time. The compound annual growth rate is calculated by taking the nth root of the
total percentage growth rate, where n is the number of years in the period being
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considered.

This can be written as follows:

CAGR is one of those terms best defined by example. Suppose you invested
$10,000 in a portfolio on Jan 1, 2005. Let's say by Jan 1, 2006, your portfolio had
grown to $13,000, then $14,000 by 2007, and finally ended up at $19,500 by 2008.

Your CAGR would be the ratio of your ending value to beginning value
($19,500 / $10,000 = 1.95) raised to the power of 1/3 (since 1/# of years = 1/3), then
subtracting 1 from the resulting number:

1.95 raised to 1/3 power = 1.2493. (This could be written as 1.95^0.3333).

1.2493 - 1 = 0.2493
another way of writing 0.2493 is 24.93%.

Thus, your CAGR for your three-year investment is equal to 24.93%,

representing the smoothed annualized gain you earned over your investment time
horizon.

The above process will not explain us the forecasting or the forthcoming trend
of any industry. Therefore time series analysis we can use to analyze for the current
and future trend of an industry.

10.1 TIME SERIES ANALYSIS

A time series is simply a sequence of numbers collected at regular intervals
over a period of time.
Time series is the study of properties of variable with respect to time
period may be microsecond, minute, hours, day, week, month, and years etc. The
time series divide into four major components.

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 1. Secular trend(Trend Analysis)
2. Seasonal Variation
3. Cyclic Fluctuation
4. Irregular variation.

T= (T+S+C+I)

Secular trend:
Trend can be measured by any one of the following method.

Graphical Method

Semi Average Method

Moving Average Method

By method of Least Square (MOL)

Fit a straight line trend of consumer industry growth of UAE by

method of least Square (MOL) in billion and find the trend Values.
Also predict the growth of industry by year 2013.

YEAR Y X X² xy
2005
17 -2 4 -34
2006
22 -1 1 -22
2007
26 0 0 0
2008
29 1 1 29
2009
30 2 4 60

∑y=124 ∑ X²=10 ∑XY= 33

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Let the trend line Y= a+bx

Where a= ∑y/n

∑y=124

n= 5

Therefore ∑y/n=124/5= 24.8

Then b= ∑XY/∑ X² = 33/10 = 3.3

Y= a+bx= 24.8+3.3x the received trend line

Therefore the trend values

YEAR X Y=a+bx=(24.8+3.3)*X Value

2005
-2 24.8+3.3*-2 18.2
2006
-1 24.8+3.3*-1 21.5
2007
0 24.8+3.3*0 24.8

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 2208
1 24.8+3.3*1 28.1
2009
2 24.8+3.3*2 31.4

Therefore the predicted trend value

YEAR X Y=a+bx=(24.8+3.3)*X Value

2010 3 24.8+3.3*3 34.7
2011 4 24.8+3.3*4 38
2012 5 24.8+3.3*5 41.3
2013 6 24.8+3.3*6 44.6

Therefore the projected percentage of growth in the consumer

good industry will be

Current year Price/Base year price= 2013/2005*100%=

44.6/17*100%= 262% which is equal to 44.6 billion

(The linear least squares regression through the data provided is)
y= (3.3)*x+ (-6598.29)
The regression coefficient (R) is: 0.95)
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11.1 FINDING AND RECOMMENDATIONS
It has been a truly remarkable journey over the years in pursuit of a strong
economy and a premium quality of life for all the people of UAE. The experience has
been richly inspiring and greatly satisfying, with the transformation of the emirate into
one of the most exciting business and lifestyle destinations in the region

The past few years have been of particular significance in the consumer
industry growth because it development initiatives and accelerated growth in line with
the changing dynamics of an increasingly inter-connected global economy. In
addition to being an excellent government support has evolved into a magnet of
business and industrial investments from all corners of the world, while opening new
gateways for people from different countries and cultures to experience the unique
and exciting lifestyle offerings of the emirate.

UAE opens up to a world of opportunities, and business organizations from all

over the world to be part of the continued progress of the economy. This thriving
support of UAE government giving exciting new possibilities of to expand the horizon
of consumer goods industry and achieve sustainable, long-term growth.

11.2 Limitations
Although I tried my best in preparation of this project, but this study has come
limitations.

 The period of this project was not sufficient to study all the factors
deeply
 Many consumers and dealers showed less interest in providing
information and have not cooperated.

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  Visiting various places for study consumed a lot time.
 Unavailability of datas

11.3. RECOMMENDATIONS

Above analysis shows real potential in the consumer goods industry even in
the recession period of business increased especially. There is still more space fort
the new products to be served and get the market share.

We highly recommended bringing more new industries after proper research

as the customer requirement.

Increase the local retail sector to provide the competitive advantages.

Have more industries and products in all kinds of store / malls and run
different kind of promotions to make people buy products.

11.4. CONCLUSIONS

To improve the market we should tackle the challenges for the growth of
consumer goods industry. The country has to create of many new markets and a
further expansion of the existing ones. In retail sector bring more mega retail chain
and look to built a highly quality supply chain formula by roping customers interest.

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12. Following references have been used to prepare this analysis.

➢ www.uaeinteract.com
➢ www.wisegeek.com/
➢ www.cornwell.co.uk
➢ www.businessballs.com
➢ www.uae.gov.ae
➢ www.investopedia.com
➢ www.tutor2u.net
➢ http://reports.zoho.com
➢ http://www.realtyna.com
➢ www.zawya.com
➢ Busuness Magazine (www.worldnewspaper)
➢ Gulfnews
➢ Khaleejtimes
➢ The National

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13. Sample Questionnaire:

1. What is your Gender?

○ Male
○ Female

1. What is your Age?

○ 16-19
○ 20-25
○ 26-30
○ 31-35
○ 36-40
○ 41-45
○ Over 45

1. Country of Residence? ____________________________

2. What is your Nationality?_____________________________

3. How often you buy Consumer goods products?__________________________

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4. Which retail outlet you go to buy consumer goods products?

• EMKE(LULU)

• ADCOPS

• SPINNEY’S

• CARREFOUR

1. What is your preference for buying Consumer goods?

1 2 3 4 5 6 7 8 9 10

Cost

Brand Name

Features

Customer
Service

2. What is your suggestion for the improvement consumer good products?

3. NAME :______________

4. AGE :_______________

5. P.O.BOX :__________________

6. Email address:

7. Telephone

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a. Res:

b. Mobile:

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