Billabong International Ltd. Company
Billabong is a holding company for an Australian brand of surf wear and extreme sports apparel. The company was established by Gordon and Rena Merchant in Burleigh Heads on the Gold Coast, Queensland in 1973 and expanded overseas into Japan, the USA and Europe through licensing agreements with third parties. Billabong sources its products from manufacturers before attaching their specific logos and designs and then distributing the products to its own stores and other retail outlets (Jacksurfboard 2006).
Billabong has been recognized in Australian and most in European countries for more than 10 years in the board sports industry, yet Billabong has a limited consumer in a limited area with the high competitors (Billabong n.d.). In order to survive with the limited consumer spending observed in 2008, Billabong must adopt a strategy that is not necessarily focused on cutting costs or monitoring pricing alone.
Also a brand “Billabong” should contain no internal differences and it should be consistent over time. Billabong consistency must be maintained through all channels, and communicate the same values, whether it be to shareholders, corporate affiliates, or at the retail or consumer level through service delivery.
This report is to analyze how current business environment and the acquisition impact on Billabong, as well as providing a realistic strategic planning in the future recommendation and evaluation. However, Billabong needs to have a good marketing plan and strategy to overcome their toughest opponents such as Quicksilver and Rip Crul. The study has divided into three main sections. The first section contains the information of Billabong marketing environment. The second section provides the marketing strategies. The third section applies the consumer evaluation and marketing mix.
Market leader (emerged as a market leader in the design and manufacture of skate long boards, a fast-growing niche segment within the skateboard market)
Wide product range (It’s pre-ordering system and specialty store sales are superior to Quicksilver's distribution, which includes company-owned stores and department stores)
Production spread among different places (The company has a better geographic spread than Quicksilver)
Most popular brand in Australia
Production wide spread in more than 100 countries
Company size smaller than other big companies
Not popular enough compared to bigger brands
Other companies help in expanding the business (The alliances for the retailer outlet to the supermarket)
Products that are produce are seasonal goods (always keep on trends)
Exchange rate (To some countries the product prices in Australia dollar when converted to in their currency is consider more expensive especially in the developing countries)
The currently target market of Billabong is in every aspect of its operation to become one of the world’s leading manufacturers of surf wear and surf accessories. In term of demographic segment they target both the age of 12-20 males and females who live in Australia or Generation Y, young people who live an active lifestyle and enjoy sports such as surfing and skateboarding (Billabong 2007). Moreover, Billabong has expanded its product range to include board sports products such as watches, surfboards, snowboard outerwear, wetsuits and skateboarding apparel (Billabong 2007). The brand is success because the products are top quality and functional, that associates the wearer to the lifestyle Billabong represents. (Billabong, 2007)As the young people would like to play some excited games such as board sports and snowboard, Billabong would like to...
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