Buyer behaviour product line extension essay

Created by two enthusiastic surfers, Billabong is a company designed by viewers, for browsers. In 1973, Billabong provided little more than a small range of surf wear: mainly surfboards and panel shorts. But today, Billabong is actually a brand that encompasses the Australian search culture by providing products that cater not merely for the surfer inside many of us, but for fashion and lifestyle needs.

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1 . two CURRENT MARKETPLACE

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Billabong is actually a brand that offers numerous items designed to allow for numerous life-style. Included in their very own extensive selection are items designed for browsers, general seashore goers, skateboarders and the style conscious.

Thorough characteristics with this market will be difficult to identify, however , it is the assumption that the majority of consumers are men and women aged among 12 and 35 years old.

Consumer Want: Social Photo Need – the most important require satisfied simply by Billabong

1 ) 3 CURRENTLY SOLD

Inside the mid 1980’s, just over 10 years since the birth of Billabong, the successes with the small Australian brand were being recognised worldwide and Billabong products were in high demand.

This triggered the foreign trade of Billabong products for the global market with countries such as the USA, Japan, Fresh Zealand and Europe first in line. Today, the product selection available expands as far as 2200 lines nationwide, 1300 lines in the US and more in more than 60 different countries. It is far from unusual which the greatest circulation of Billabong products is always to coastal destinations. However , countries locked simply by land are given the opportunity to live the Billabong experience with items available across the internet and in numerous stores around the globe.

1 . some PRICE RANGE

Billabong products look at the higher end of the selling price spectrum pertaining to the overall industry, and are somewhat to high priced as compared to all their surf manufacturer competitors. Some examples of how Billabong measure on the market are illustrated below:

Girls Thongs: Billabong – $17. 95 Mermaid Sister – $19. 95 Target $4. 00

Men’s Jeans: Billabong – $120. 00 Quiksilver $139. ninety five Jeanswest $65. 00

Seaside Towel: Billabong – $69. 95 Aztec Rose – $39. 95 Bonds $29. 95

1 ) 5 KEY ENVIRONMENTAL CHANGING

The single most important environmental variable affecting Billabong is ‘Culture’; defined as ” a set of values, ideas, ruse and other meaningful symbols that help individuals communicate, translate and examine as members of society” (Blackwell ain al. 2001). Products will be largely designed, as discussed in section 1 . two and Appendix A, for the surf/sun/style traditions which is relatively ubiquitous in Australian living.

1 . six PRODUCT EXTENDABLE

Billabong Skinwear: a Skincare range which includes sunscreen, lip-balm and after sun-gel. This selection meets the greatest Australian specifications in sun protection whilst as well providing the main style that Australians have come to know and expect via Billabong items.

2 . zero SECTION W

The target viewers for any given product or service is a group of people that advertisers would like to attract through their marketing activities. The process of identifying and defining a group leads to assessing priorities. For instance, a firm might identify a sizably significant group or market to become potential buyers. However , it is likely to be fiscally unsound to try and target almost all consumers within the group. A target audience might be established by requesting questions just like:

Which target audience is adequate to be a significant target?

Which in turn audience can be described as priority when it comes to the brand’s product?

Which in turn audience may be the target from the product’s qualities and rewards?

A audience may be defined by their era, gender, friends and family status, way of life, interests or maybe a combination of these characteristics. It truly is noteworthy that the target audience usually differs in the overall target audience and is generally only a segment of your given marketplace. For example , Billabong would goal consumers (both male and female) between your ages of around 12 – 35; but diverse segments of the broad industry are more likely to obtain than other folks. It is attractive to develop market and psychographic profiles of such likely consumers (the focus on audience).

Appropriate details of a target audience can only be acquired by means of credible market research methods. However , inferences and assumptions can be made beforehand to aid any research. Some of the market characteristics in the Billabong customers are, as mentioned previously, both males and females between the age groups of about 12 – 35 (although advertising is usually specific to one particular gender because seen in the example of Appendix A). These kinds of individuals are mostly situated in coastal regions in which the beach/surf/sun tradition thrives (as clearly demonstrated in Appendix A), although there are significant deviations using this trend particularly in recent times with such a diverse, climate and geographically impartial product range comprising some 2200 lines in Australia alone (Billabong International 2004).

Economic factors can sometimes play a role in identifying a target but in the case the audience can be not necessarily limited to any certain economic traits; for example , profits brackets aren’t easily described for customers as Billabong International provides such a number of products gratifying both functional lifestyle requirements and trend influenced wants, hence the user’s probability of purchasing is definitely expected to be dependant on the psychographic elements of customer motivation, motivational intensity and consumer knowledge.

Consumer determination represents the drive to fulfill physiological and psychological needs via buy and consumption of products (Blackwell et ‘s. 2001, s. 233). Billabong customers will tend to be driven to meet their cultural image demands and needs for pleasure. They are really expected to have a high mindset intensity to fulfil these needs to be able to willingly get over the price buffer associated with this.

The target buyers for Billabong have a relatively high level of consumer expertise regarding their very own chosen item. The concept of customer knowledge requires individuals pre-existing knowledge and perceptions relevant to product obtain and ingestion. These consumers have a top awareness of the items attributes and associations, including the famous dunes symbol, numerous ties with surfing and pro browsing and the corporations Australian roots. They have a familiarity with the products graphic within the industry. They associate the brand with high quality, high fashion and are also prepared to bear the relatively high price.

This kind of target audience is definitely aided by the order knowledge they hold concerning Billabong’s selling price positioning; that is, the company is in the high price range compared to the total market nevertheless is modest to high in price the moment evaluating search brands (see Section 1 ) 4). These types of consumers are likewise equipped with know-how on when and where to buy – which the products are available in specialty surf-specific stores and will rely on a least two sales every year at the end of summer and winter.

Even though expensive research is often the most accurate way of developing a targeted marketing approach, it is always good for attempt to determine expected customers as early as possible in a marketing plan. Whether you utilize extensive demographic and psychographic research or simply use common sense, “the key is to identify a group or groups of potential customers that provide the best possibilities for business potential” (Defining Your Target 2004).

3. zero SECTION C

3. one particular THE BILLABONG COMMUNICATION BLEND

A successful conversation mix is crucial in the marketing of any kind of brand or product to consumers. This ties along with the familiar four P’s of marketing which are price, place, promotion and product. The most crucial factor concerning the concept of the communications mix is advertising. Examples of promotion include: personal selling, product sales promotion, public relations, publicity, normal mail, advertising, sponsorship, branding and distribution of samples.

A good communication combine ensures that the rand name receives satisfactory exposure even though also aimed towards the appropriate followers (see Section B). For most large businesses, their company logo is an integral part of their advertising activities. This unique identifier will probably be present through all forms of visual promoting communication and is also a powerful statement in itself. An evident example of this kind of would be Nike with its ‘swoosh’ symbol. In the same way, the famous Billabong ‘waves’ are present throughout the Billabong communication blend.

3. 2 PRINT PROMOTING

Currently there are many of conversation methods that are used by Billabong. Products are featured in a number of publications such as Dolly,  Girlfriend, Chik and Multicultural, who traditionally market to the female section of Billabong’s target audience. Produce advertisements also feature in more men oriented magazines such as Rob and FHM and can be noticed in specific searching magazines just like Surfing. The combination of these types of promotional actions effectively gets to the specific target audience that Billabong targets.

several. 3 TRANSMIT ADVERTISING

Transmit advertising is very limited and is also likely to only be featured intended for events just like special searching related occasions such as the Billabong Pro search championships.

several. 4 NET PROMOTIONS

Net promotions happen to be one of the most extensive ways in which Billabong advertises. On almost every Billabong advertisement featured in the previously mentioned media, the Billabong web address is present; ‘billabong. com’. The web site shows the complete product list, which are available for purchase online. The website is not just restricted to the Australian audience. In addition, it caters for diverse products and prices suitable for several regions around the globe, including: United states, South America, Asia and The european union – representative of Billabongs developing international occurrence and good utilisation in the internet in market places around the world.

several. 5 ADVERTISING AND MARKETING

Associated to Billabong is actually a highly powerfulk reference group who effectively act as a promotional instrument. These are pro surfers just like Layne Beachley, Alana Brennan and Andy Irons. This reference group gains reliability for the brand by using Billabong products. Billabong promotions employ these community faces to provide testimonials as the attention obtained by having expert’s approval is usually invaluable in the fight for consumer preference.

several. 6 LEVEL OF ORDER DISPLAYS

Point of obtain displays are often used by Billabong. In browse shops including City Beach front Surf (Garden City, Whitfords City), Billabong products are grouped jointly in the store while in Friends Nielsen (Garden City, Perth, Whitfords City), the Billabong are arranged alongside rivalling brands by simply category. From your marketing point of view of a trustworthy manufacturer, it truly is more appealing to have the clothing grouped by simply brand instead of by category as this enables consumers to search for the specific manufacturer they wish to purchase.

3. six IS THIS CONVERSATION MIX IDEAL?

Print advertising and marketing utilised simply by Billabong is acceptable and effective as the magazines that they feature in are focusing on similar or perhaps overlapping audiences. Promotions and promotional material assist public understanding of the brand. It turned out achieved by attaching the Billabong name and logo with events such as the Billabong Expert and other surfing events around the world. Celebrities, especially movie stars, television set actors, entertainers, and athletics figures, can be quite powerful assets to any merchandising campaign (Blackwell et ing. 2001). Billabong uses well-known surfers Layne Beachley, Alana Brennan and Andy Iron to achieve bigger credibility in the surfing globe.

Another effective promotional device is the brands website. Generation “X” and “Y” are very likely to search the internet pertaining to products that they wish to purchase, as it enables them to shop in the convenience of their homes without the work of searching different stores to find particular products or perhaps information. Internet Promotions are seen to be effective due to increasing consistency and efficiency of ecommerce in today’s globalised market place. The web site is easy to use, easy to find which is prevalent in all the advertising material; increasing client knowledge of the website.

Broadcast promoting for Billabong is likely to have got a limited performance. It has been displayed that only 19% of television set viewers truly watch the advertisements shown during a display (Lach, offered in Blackwell 2001, p. 438). Bearing this in mind, and realising the fact that target audience is actually a relatively certain one, it is doubtful that the audience will be reached over a frequent basis via this medium.

3. 8 CHANGES TO COMMUNICATION MIXTURE

We believe that Billabong ought to implement numerous various becomes the current sales and marketing communications mix in order to launch the Skinwear range. Procedures including distributing cost-free samples would be effective in increasing: knowing of the product, the function of reducing the effects of sun publicity and the great associations of the brand.

An increase in Billabong sponsored occasions will result in increased exposure of the Billabong name and will provide an good opportunity to bring in consumers to the product extendable line. The Skinwear range can be officially launched by specifically attaching the name of the cool product (Skinwear) into a Billabong sponsored event. About its start, the mentioned before method of sample distribution may be used to full result.

The start of Skinwear will overlap with the elevated marketing activities surrounding the entire Billabong range during the summer season holiday season. An easy way of increasing the benefits of this case would be to utilise POP exhibits, perhaps combined with promotional surprise packs.

4. 0 SECTION D

4. 1 PRODUCT CONCEPT

Like a well recognised and trustworthy surf company, Billabong is definitely endeavouring to branch away into the skin-care market, particularly: sun-care to increase cater to it is customers way of life needs. Just like the rest of the globe, Australia being a society is becoming heavily into the image conscious; as proven from the a large number of articles, advertising, new products and spending boosts based in the and Cosmetic Industries. Billabong has made the decision to extend all their existing product range in an attempt to take advantage of this new demand for health insurance and beauty products. To do so , Billabong has created their ‘Skinwear’ range which includes a Sunscreen, Lip product and After-Sun Gel all of these meet the substantial standards set by the Aussie Government and Australian Tumor Council.

Contained in the Billabong Skinwear range is known as a Sunscreen boasting an SPF or Protection from the sun Factor of 30, protecting the skin via harmful Ultra violet rays 30 moments longer than our cases natural defences are able to. Throughout the introduction of past ground breaking products, Billabong has become praised for its determination to meet and exceed the needs required by their surfing clientele; hence incorporating an 8 hour water protection attribute in this product. This kind of feature allows surfers and beach goers the chance to get pleasure from their life-style without the problems of having to frequently re-apply sunscreen. The combination of 40 SPF and 8hrs of water resistance is going to instantly place the product for least similarly, in terms of efficient attributes, at the top of the market.

Billabongs new Skinwear range also includes a Lipbalm featuring an SPF of 15. As a means to broaden the target viewers, Billabong’s fresh Lipbalm is definitely free of coloring and flavor, removing added hesitation in the male demographic. For easy software, the Lipbalm is packaged within a squeezable conduit, making simple and mess-free application; all of which is very useful when applying at the beach.

Designed into the After-Sun Gel is an aloe vera extract. According to Steve Herman (2004, p. 54) “aloe remains a genuinely beneficial healing agent widely approved by the public”. In order to fulfill consumer requirements, aloe is actually a feature in the After-Sun Skin gels product. It is merely a last resort that buyers would ultimately require a merchandise to calm the effects the sunburn; nevertheless , as Avenirse quite effectively stated “The most we can teach people is what they will already know”. This affirmation defines the advantages of a product such as After-Sun Solution, as it is anticipated that in spite of the existence of a Sunscreen as intended by Billabong; consumers are prone to use the product ineffectively every so often.

Pat Jones (2004, l. 16) reports “the sunlight is now officially the opponent – against which sunshine creams are our tool of choice”. According to figures offered on the Aussie Cancer internet site (http://www.cancer.org.au) 374, 000 Australian’s are remedied for non-melanoma skin tumor every year. This kind of figure makes up about 1 . 9% of Australia’s entire populace. More scary is that an additional 8, five-hundred Australians are diagnosed with a melanoma, of which 1300 can die consequently. Such distressing statistics make the question; happen to be members of Australia’s beach front and search culture acquiring appropriate procedure for protect their skin coming from such devastating consequences?

Leaders in providing this beach/surf culture, Billabong attempt to produce their consumers aware of the harmful problems associated with long term exposure to sunlight and its effects. In doing therefore , Billabong provides such products as found in their new Skinwear selection to protect the physiological demands of their buyers as well as eliminating the quite apparent cultural negativity associated with wearing and applying sun screen.

4. a couple of TARGET MARKET REVISITED

It would be foolish for a manufacturer such as Billabong to extend an already powerful product range if perhaps there was any kind of reason to believe that it probably would not be while successful since the collective existing items. In accordance, Billabong has created a Skinwear selection that not simply extends the well recognized image of the rand name but as well the principles and features that a buyer would associate with any kind of its additional products. For instance, Billabong is known for its high quality surf-related products, innovative design and up to date fashion. An advertising approach to improve the popularity of Billabong products is to promote intake as much more than an experience, but instead a statement of image and self-expression. It can be for this reason that the slogan pertaining to the new Skinwear range reads: “Wear Billabong, even when you’re naked”.

As identified in Section B, Billabong’s important target audience expands between males and females aged among 12 and 35. For these age ranges, it would certainly not be erroneous to claim that a major factor in the purchase and usage of surf brands and their related products is actually the product backlinks consumers with all the desire to fit certain graphic and style demands. The browse and beach culture can be dominant inside the lifestyles and images of Aussie people. This, in effect, further intensifies the need for many consumers to conform.

Australians are getting to be more captivated with their into the appearance. Appearing on Aussie networks over time are television shows that showcase cosmetic surgery, crash diets, new health risks, advanced pharmaceuticals plus much more. It is not amazing that customers in the demographic of 12-35 years of age will be identifying a need to improve and maintain beauty and health.

Site between sun exposure and skin damage have been extensively explored in Australia, since it appears that compared to other geographical spots, Australian individuals are more prone and at risk of suffering, because of the consequences of living in these kinds of a sun exposed site. When with the various problems relating to sunshine exposure and skin damage, Billabong decided to generate their Skinwear range. It is expected that with a revealing and successful marketing campaign, existing Billabong consumers will see the need to execute a persistent skin safeguard regime, consequently utilising these products that are at this point offered by Billabong.

4. 3 ATTITUDES

To ensure that this product extendable to be successful, Billabong has attempted to seize the top target audience that already purchases and consumes their existing product range. It is suggested by Blackwell et approach. (2001, s. 289) that “holding a favourable frame of mind toward a product is almost often an essential prerequisite in order for customers to hold a favourable getting consumption intention”. In stating this, not necessarily expected which the consumer is going to automatically pick the product, although that they will carry a good intention that might assist in their very own decision.

A lot of models are accustomed to aid internet marketers of company’s such as Billabong to analyse consumer thinking and their associated effects upon product evaluation and choice.  Better referred to as Fishbien Version and Ideal-Point Model, marketers of brands such as Billabong are given information from card holder’s responses. Oftentimes, this leads to cool product developments as is the case of Billabong, wherever certain demands not crafted for happen to be alerted to designers.

In order for Billabong to avoid consumer’ attitudes becoming unbiased between brands, it is essential to perform whatever it takes to accomplish “Attitude persistence… [where] a great attitude’s resistant to these kinds of corrosion” (Blackwell et approach. p. 300). It is likely that the advantages of products just like that come in Billabongs Skinwear range will never be made unnecessary, purely as the risks linked to having lives revolved around the sun are not diminishing in quantity and neither are the risks associated.

The highest obstacle experienced when bringing out Billabongs fresh Skinwear selection is changing consumer’s personal preferences, in effect, “recruiting competitor’s customers” (Blackwell ou al. 2001, p. 301). A strong characteristic of the Skinwear range is usually its SPF rating and Water Resistance. To be able to “recruit competitor’s customers” Billabong must be effective in changing consumers perceptions, drawing on good attitudes organised about their existing product range, as well as emphasising evaluations between all their new product extendable and other existing brands – hopefully in favour of their products.

4. 4 SUMMARY

Billabong acknowledges the importance of shoppers needs to ‘be protected inside the sun’. In the end, it is the requirement that having consumers who have exude a life-style surrounded by surf and seashore that these requirements will for instance a point need satisfying. As a highly regarded browse brand, Billabong places importance on rewarding consumer’s requires for security and wellness. In identifying the distance in its range of products, Billabongs cool product extension, promising a highly protective Sunscreen, Lipbalm and After-Sun Gel, proceeds their determination to meet the demands of it is consumers to get the coming summer season.

5. 0 SECTION Electronic

To examine the choice making techniques experienced with a consumer it can be practical to use the Consumer Decision Process (CDP) Model which defines seven likely levels involved in any kind of purchase. The CDP version “…represents a roadmap of consumers’ minds that entrepreneurs and managers can use to help guide item mix, communication and revenue strategies” (Blackwell et approach. 2001, l. 71). Almost all consumers are not strictly destined by this model in making their decisions, tend to be likely to go through at least some of the subsequent stages:

The Consumer Decision Method Model

Regarding Billabong, in order that the success with their product line expansion and the linked marketing actions; it would be good for hypothesise the probable techniques of their target audience in becoming loyal users of the new product. Such estimations may be manufactured by examining the stages with the CDP unit.

The first stage from the model, require recognition, involves the consumer realizing the difference among their best and actual state of affairs. Billabong will aim, through straight-forward advertising and also other marketing communications (as outlined in Section C), to undermine the user’s perceptions about the adequacy of their existing state and definitely will hence build a problem that must be solved.

Advertising and marketing will include the contrasting unfavorable consequences of not making use of the product (such as scarring damage and/or cancer) with the totally positives outcomes associated with using the new product. These kinds of benefits include a high level of skin care and in addition positive interpersonal image. With the many choices and more and more variables affecting client decisions, particularly for low-involvement items such as sun screen, it is predicted that earlier loyal supporters of the Billabong trademark is going to factor all their positive experience and large levels of satisfaction into their decision to use Billabong Skinwear.

The 2nd stage requires searching the market for information on products and alternatives. The dedicated Billabong customer will find themselves undergoing pieces of both an internal and exterior search and definitely will then will leave your site and go to assess evaluative criteria as outlined by the third stage; pre-purchase evaluation. It is with this stage the particular particular people are likely to deduce Billabong since the better alternative.

The prospective audience, if undergoing a or inside search will find Billabong to become at least equal (see Section 4. 1) to its competition in terms of its products attributes while the positive interactions with the Billabong brand will make sure that Billabong Skinwear is viewed as the excellent alternative. Is it doesn’t intention of Billabong to extend its dominance into the new market and it is hoped that consumers eliminate the need for considerable searching in order to simply copy loyalty in this new market.

There are two paths that will lead a consumer to the next stage of the purchase decision. They may both systematically travel through the previous 3 stages bringing about an obvious decision to purchase, or perhaps they may enough time first 3 stages totally and simply choose the product based on an immediate decision influenced by before ties for the Billabong company. An example of this kind of may be observed in impulse purchasing, where point-of-purchase (POP) exhibits may play a significant role.

The 6th stage; consumption, is likely to occur seasonally as sun protection can be demanded primarily in summer season. However , loyal consumers such as those outlined in section B will be perhaps the more likely of any one in the market to use the product as suggested by simply Billabong and its particular experts – all year round.

Periods five and six; intake and post-consumption evaluations probably have a positive, satisfied response from customers when considering Billabongs work to copy loyalty by past experiences into the new releases evaluation. The last stage, divestment, holds not any definitive targets from these marketing the newest product. The only aim is made for the target consumers to consume the item completely rather than discard this in desire for a contending brand before the end of its useful life

The transition of loyal users to the new product (as described in this section) demonstrates just how varying powerfulk factors can alter the procedures outlined in the Consumer Decision Process (CDP) Model. Whether it is the accounts of industry experts or the word of mouth (WOM) division of the confident brand picture, it is very clear that it will be than feasible to send the devotion of the brand in the new product extension line.

six. 0 RECOMMENDATIONS

Billabong Foreign 2004. Recovered: September 30, 2004, coming from http://www.theage.com.au/articles/2004/ 06/12/1086749947661. html? from=storylhs.

Blackwell, Deb. R., Miniard, P. T. & Engel, J. N. 2001, Buyer Behaviour 9ED, Harcourt Incorporation., Florida.

Defining Your Target 2004. Retrieved: October 4, 2004, via http://www.usg.com/contractors/defining_your_target.asp.

Herman, S. 2004, ‘A day at the beach’, Global Plastic Industry, vol. 172, no . 8, pp. 53-54. Recovered: October 13, 2004, from Proquest.

Thomas, P. 2004, ‘Behind the Label: Suncream’, The Ecologist, vol. 34, number 6, Recovered: October 13, 2004, from Proquest.

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