The marketing strategy development provides a direction towards the goal in order to have an effective promotion. The marketing strategy provides the targeted market segmentation, implementation of the initiatives as well as a clear goal to achieve. In this assignment it is discussed about the mission and vision of the company. In addition to that, the SWOT and PEST analysis of the company in order to have a full clear idea regarding the threat and opportunities and its effectiveness in economic, technology and so on. Moreover, there is the implementation of marketing strategy and marketing tactics in terms of to be in the top position.
Billabong is basically a clothing retailer but it also produces various accessories that include snowboard, skateboard and much more. Billabong is a retail industry with headquarter in Queensland, Australia. The company has a revenue in the year 2014 is 1.27 billion. Whereas, it’s net income is 25.7 million as per the year 2014. In the year 2009, the company was awarded as one of the Q150 Icons of Queensland because of the role of innovation and invention (billabongbiz.com, 2017).
The vision statement of the company is to focus on the brand image as well as generate stronger brand identity. The products that are produced by the company will be durable and to be on the top in fashion trends. The mission statement of the company is to be famous for setting some of the new standards in sports with the medium of youthful brands of lifestyle and experiences. The main objective of the company is to rebuild the loyalty of the brand through the medium of sports community. Another objective is to gain the top position in the competitive advantage. At last, is to rebuild the brand image of Billabong’s innovative products in terms of quality as well as enhancing the experience of customer. The company's main target is the young people those are above the age of 25. The company uses the content marketing that is providing information with the help of entertainment (manmonthly.com.au, 2017).
Billabong has various types of products that include accessories, apparel, sunglass, footwear’s, watches and board sports hardware. In the board’s ports hardware, it includes wetsuits, surfboards, and skateboards. Among this entire product the most popular products are the board shorts, t-shirts, swimwear and the backpacks (cips.org, 2017).
The suppliers of Billabong those are helping for making the company be in the top position in the targeted market. The company has signed a contract with the Lawson Software Platform as well as Lawson Quickstep Fashion in order to manage the distribution process of various brands of the company. The purchasing of the suppliers is expected to save 20 million by 2018 and to decrease the lead item of products by 20-30%.
The company's top competitors are Board riders, Inc, Pacific Sun wear of California, LLC and the Burton Corporation. The new threat can be the increase of the supply cost and the rival companies those are decreasing their price of products.
In the retail industry, the political condition of the company has complete support. The economic scenario provides an indication of the purchasing powers of the Australians as well as there is some improvement in terms of their living standards. The social trends of the people are to have the eco friendly cloth that is provided by Billabong. The technology has immense importance in the retail industry and Billabong is using the correct technology to achieve all the goals.
The information regarding the requirements of customers is collected with the help of direct information by asking questions regarding the choice of preference, the information that is present on the website. The other methods for collecting of information are with the help of online feedback and market research. The research found that customers are mostly in need of sport and to spend the time in leisure and fun activity. The research found that the wetsuits are mostly in demand.
The company has various competitors that pose a threat to them to be in the top position. As asserted by Abbott et al. (2016), the information of the biggest competitors is collected by noticing of the share market growth because the top company will have immense profit. The top competitors of Billabong are the Pacific Sun wear of California. The goods of Billabong are expensive than the other companies so that is the reason that customer go to that shop who are having less expense.
There has been a change in the company through the technological medium. The company has designed wetsuits with an advanced technique. With the implementation of the Lawson, Software platform has helped for gathering a change in the technological factors. Hence, the new technology has created a drastic change in the company.
The company has various target market such as the primary target are the board sports enthusiast and the secondary target are the active lifestyle. As opined by Ahmed, Bégaud & Tubert‐Bitter (2014), the board sports enthusiasts are the athletes those have wider knowledge regarding the boarding performance. They are loyal towards the brands but they are willing to test some of the new products. The boarders are mostly interested in local, funky stores as well as trusted. On the other hand, the active lifestyle enjoys boarding in their free time but it is not given much importance in their lifestyle. The active lifestyle group exercise weekly and have the psychographic mindset as per the boarder. The target market for the company is the boarder because they are young and enthusiastic as well as have the trendsetting minds on each individual. The people the boarding is not the only hobby but their passion. As opined by Baig et al. (2017), the board enthusiasts are much discerning and their loyalty cannot be bought. Billabong has played an immense role in fulfilling the needs of this group. The targeted market has been chosen because if once their loyalty is gained they act as an advocate for the company.
The value propositioning plays an immense role in providing the reason for choosing the product that is best for the customer. As asserted by Challagalla, Murtha & Jaworski (2014), each and every company is in need of having a successful value proposition that helps for the customer to provide the best product. The targeted market that is the border the product is best suited for them because the company has the best quality products for the surfers. In addition to that, the company solves the problems of a customer while boarding. The new launch of wetsuits helps the people because it provides comforts and is flexible as well. The targeted market group is all athlete and the company built those products which are best started for the athletics and do not cause any problem. The main reason for choosing of Billabong products is that they are made for the athletics so the targeted groups are all the athletics. The company has implemented new manufacturing software for setting trends. So, the customer if buy the products they will be on the trendsetting ever in front of everyone. In the opinion of Checchinato et al. (2017), the quality of the products is properly marinated so while boarding the boarders will not face any kind of problems. The products are required to but only from Billabong because they are the oldest company who provide the best quality of products. The other companies do not guarantee the products that are sold but Billabong does. On the other hand, they provide the free bonus as well as gift vouchers at the time of purchasing.
The 7Ps of marketing mix provides the review while defining the key issues those are affecting the marketing of the product. The 7Ps of marketing includes the products, service, place, promotion, physical evidence, people and the partners. Promotion: The promotion of the products is done through the medium of advertising that can attract the customers. The advertising promotions play effectiveness for creating awareness regarding the products as well as increase the loyalty towards the brands. The advertising will be simple that provides the daring and adventurous pictures of the targeted market. As asserted by Lusch & Vargo (2014), the advertisements ideas are required to be on the board ideas that say that whatever the challenge is the company puts out the thrills and it wants every person to be on the board. Place: The products are sold mainly in the athlete stores of Sydney and people can automatically reach by seeing on the advisement. The advertisements will be hoarded on each and every place of the main centre. Moreover, the products can be found in the athlete store of Sydney as well as it can be found through the online medium. As asserted by Chng et al. (2015), Sydney is chosen because it is the centre where most of the people are athletes and more engaged in sports. Price: The price for products of Billabong will be not much high. The main reason is that the targeted groups those are boarders between the ages of 15 to 25 are not capable enough to pay a huge amount of revenue. As asserted by Huang (2015), the age group of people is mostly not earning so there is required to be less price for the products.
In this study, it is found that there is huge competition present in the retailing industry. In the company, there is the use of advanced technology for reaching the top in the race of competition. Targeted market is set and they are boarders, who are youthful and adventurous. The company promotes their products with the help of advertisements in the main centre of Sydney. There is various opportunity as well as threats for the company. It is found that there is needed to lower their price for the customers. The new products wetsuits are suited for the customers.
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