Billabong Case
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Billabong Case Study- Summary
Marketing:
Billabong is now a global brand appealing to the young, trendy, outdoor cool market involved in outdoor activities. Interbrand rated Billabong eight in 2009 in the highest rank Australian brands, with a brand value of A$2.2 billion. Billabong pursues a multi-brand strategy, with its marketing strategies focused on its core target market for whom it provides consistently high-quality, functional, contemporary, innovative and durable products supported by a range of other popular brands it owns. This minimizes the opportunities for brand fatigue, which could be associated with a mass marketing strategy. The major marketing strategies include athlete sponsorship, and event staging and publicity generated through support of industry bodies. Billabongs target, markets include:
Primary
Teenagers and young adults engaged in active outdoor or extreme boardsports, particularly surfing, skateboarding, snow activities and other water-based activities. This market brand focused.
Secondary
Teenagers and young adults who want to look cool, wearing trendy outdoor leisurewear that has credibility with teens.
Tweens, and children, are the next generation of consumers.
Competitors:
Globally, Billabongs major competitors in the outdoor leisure and extreme sports apparel and hardware market are Ripcurl and Quiksilver. Australian focus and remains a private company, so licensing has been a key strategy in its expansion. A major influence on Billabongs future success is its ability to manage in an increasingly competitive market, with many competitors, both in niche markets, and through mass market competitors, supplying retailers such as Myer, Kmart and Target.
Marketing strategies:
Product-
Billabong has around 2200 product lines in Australia and more than 1000 in Europe and America. Boardshorts are a core product and are considered to be the killer product in the beachwear market.
Price-
Billabong products are designed to be affordable yet represent and cover the costs of manufacturing a high-quality product that must be durable in tough physical conditions. A range of price points are used that reflect the market price and quality of materials and design used. Competition on pricing is limited in many markets and Billabong, like its competitors, uses other marketing strategies successfully to attract the customer. Discounting is limited.
Promotion-
Billabong is considered the leading