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distribution. A distributor acts as an independent agent who purchases products

from an agent and delivers them to wholesalers and/or retailers. It is common

practice for Australian distributors to ask for exclusive geographic rights due

to the size of the market. Australian distribution and sales channels are

comparable to other industrialized countries. Channels of distribution are

direct sales, use of agents, and direct investment. Their duties include good

faith representation and the maintenance of proper accounts, We will be

utilizing all methods of distribution as available and established through our

joint venture partner. Through our direct and distributor sales we expect to

attain the mix that will achieve Oceana the market share it deserves and meets

the customer needs Down Under. See Appendix B for additional information.

There are many major ports located throughout the continent. Transporting to

these active ports is very accessible through several shipping means (including

air transportation, where applicable). The size and population locations are

very unevenly distributed. Key population areas tend to center around the outer

perimeter of the country where these major cities’ airports and seaports are

located.

The following is an overview of the transportation and communications systems:

Established railway systems 40,478 km

The highways of the country total 873,872 km

The telephone communication systems are very extensive both internationally and

domestically. Radio broadcast frequencies include 258 am and 67 fm. There are

134 broadcast stations. (National Trade Databank).

Raw materials

All raw materials will be purchased and supplied locally through ICI Australia

Pty Limited’s botany plant. ICI Australia is a large manufacturing facility

that produces 50 organic and non-organic chemicals located in Castle Hill, South

Australia. Our suncreen’s ingredients are, or can be, produced by this facility

for easy “just-in-time” inventory delivery. Our sunscreen will be safe for the

environment and everyone that uses it. The main ingredients in our products are

octylmethooxycinnamate, oxybenzone, octylsalidylate, titanium dioxide,

octocrylene and the secret ingredients necessary for our gold, silver and bronze

coloring agents.

Target Market Demographics

Since such a high incident rate of skin cancer and skin damage exists in this

region, there is an ever growing need (market) for sunscreen products. Based on

our marketing research we have focused on three specific markets: tourism,

teenagers/young adults and parents with young children. These target markets

will allow for market penetration and diffusion at a quick rate since they are

the groups that have the highest need for our product and the greatest

purchasing power.

Geographically, our focus is on the Australian states, New Zealand, Tahiti, New

Caledonia and Fiji. The following demographics will highlight the targeted

areas beginning with the Australian states:

+ NEW SOUTH WALES — SYDNEY & CANBERRA

- Tourism: 1,237,900 per year or seasonally and is expected to increase

by 60% for the 2000 summer Olympic games.

- Teenagers/Young Adults: 26,000.

- Parents and Children: 6,066,000 with a population growth rate of

about .07% per year.

+ VICTORIA — MELBOURNE

- Tourism: 728,200 per year or seasonally.

- Overall population: 2,676,000.

+ NORTHERN TERRITORY- DARWIN & AYERS ROCK

- Tourism: 146,650 per year or seasonally.

- Overall Population: 892,150.

+ SOUTH AUSTRALIA — ADELAIDE

- Tourism: 182,050 per year or seasonally.

- Overall Population: 1,427,460.

+ WESTERN AUSTRALIA — PERTH

- Tourism: 364,100 per year or seasonally.

- Overall Population: 1,695,113.

+ QUEENSLAND — BRISBANE, CAIRNS & GREAT BARRIER REEF REGION

- Tourism: 1,092,300 per year or seasonally.

- Overall Population: 3,033,361.

+ TASMANIA — HOBART

- Tourism: 36,500 per year or seasonally.

- Overall Population: 2,027,200.

NOTE: Overall population of Australia is approximately 18,000,000 with a growth

rate of 1.1% per year.

The following demographics are for the countries that border Australia in the

Oceanic Region:

+ NEW ZEALAND — NORTH ISLAND — Auckland

- Tourism: 546,000 per year or seasonally.

- Overall Population: 1,540,000.

+ NEW ZEALAND — SOUTH ISLAND — Christchurch & Queensland

- Tourism: 756,420 per year or seasonally.

- Overall Population: 1,630,000.

+ TAHITI

- Tourism: 150,000 per year or seasonally.

- Overall Population: 213,000.

+ NEW CALEDONIA

- Tourism: 81,000 per year or seasonally.

- Overall Population: 179,000.

+ FIJI

- Tourism: 288,000 per year or seasonally.

- Overall Population: 588,068.

NOTE: Tahiti and New Caledonia are overseas territories of France. Although

these are target markets, secondary data for these areas are limited. Primary

data will be collected after the initial market distribution, subsequent to the

roll out in this area.

Direct Marketing (advertising)

Australia’s direct marketing industry is at the early stages of development when

compared to the United States but due to economic levels of income and the

infrastructure of the country this

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