The decision making process for
Table of Contents
Billabong was founded on Australia’s Gold Coast in 1973 by a local surfer and surfboard shaper. From the very beginning Billabong incorporated professional surfers within the marketing aspect of the brand, consequently gaining recognition in the wider society as a surfer’s brand. During the 1980’s Billabong was well positioned in Australia and decided to expand into a number of oversea markets. (BillabongBizHistory 2010) Today Billabong is a global brand represented in most of the worlds’ major markets. It is still recognized as a surfers brand and is very common among members of surfing subculture, the “popular culture which spends billions of dollars each year on surfing equipment” (SurfLibrary 2011). Billabong is popular worldwide among homogenous groups such as surfers and teens, enabling them to use similar marketing strategies globally. Through our research we will show that Billabongs strategy is cost efficient, recognizable and relatively cheap to implement, all of which contribute to the bottom line. In our work we are going to examine the decision making process consumers go through when deciding to purchase a Billabong wetsuit. Wetsuits represent an irreplaceable part of modern surfing equipment, for this reason Billabong has dedicated a website exclusively for wetsuits. Although wetsuits can be used for many purposes, Billabong has chosen to advertise them exclusively to surfers, therefore all of our examples and research are based on surfing. In our work we have paid particular attention to how Billabong addresses the consumer decision making process through, amongst other elements, segmentation, motivation, personality, behavior and perception. We have also taken an in-depth look into how consumers learn to adapt and behave in line with their family’s values and attitudes. Finally we have considered how Billabong manages to influence culture and innovation. Segmentation
The Billabong brand originated in Australia which is big in size but with a relatively small population within densely populated cities. The company soon realized to increase revenues and profit they had to expand abroad. They needed time to secure position in the home market, to acquire knowledge and experience in the production of surfing equipment. Faced with this situation, Billabong used their available resources and expanded from their home market into much more sizeable markets, with good infrastructure, dense populations and relatively stable economies, all which are the criteria for effective targeting. “Billabong began exporting products to Japan and the United States, particularly Hawaii, in 1979, and the company decided to license its name and product designs in the early 1980s. The brand is now available in many countries in Asia, and across Europe – from Russia and Finland in the north to Greece in the south, but around 50 per cent of our total sales still come from the Americas” said Mr. O’Neill, the general manager of Billabong international. After establishing themselves in the world’s biggest market, America, they managed in successive years to follow the same logic and expand into territories where surfing is considered as one of the main beach activities such as New Zealand, South Africa, Europe and the Pacific Island region. When it comes to the wetsuit market, as with many other markets, there are unknowns which need to be answered, such as, who are surfing, where are they surfing and why are they buying that particular product? Common sense suggests that the core of the surfing population is living by or within a reasonable proximity to the sea where “decent” waves come ashore. Whilst we can make these assumptions, Billabong still needed to do research in order to market effectively to the correct target segment. Such areas of...
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