Consumer Behaviour †Product Line Extension Essay

Created by devil avid swaners, Billabong is a shop designed by grazeers, for ledgemaners. In 1973, Billabong offered little to a greater extent(prenominal)(prenominal)(prenominal) than a sm either black market of shop wear mainly browseboards and board shorts. simply at present, Billabong is a blade that encompasses the Australian crop culture by offering returns that bring home the bacon non precisely for the ledgemaner at bottom m both of us, but for fashion and modus vivendi c entirely for.1.2 CURRENT TARGET MARKETBillabong is a blemish that offers numerous masterducts designed to lottle numerous life vogues. Included in their spacious range atomic anatomy 18 crossroads designed for glideers, ecumenic beach goers, skateboarders and the fashion conscious. Comprehensive characteristics of this food trade point ar difficult to pinpoint, however, it is the assumption that the volume of consumers argon young-begetting(prenominal)s and fe masc ulines aged amidst 12 and 35 familys of age.Consumer Need hearty Image Need the approximately of the essence(p) wishing satisfied by Billabong1.3 soon SOLDIn the mid 1980s, on the dot over ten years since the carry of Billabong, the successes of the sm further Australian check off were world recognised world wide and Billabong point of inter slits were in tall demand. This led to the export of Billabong outputs to the spheric market with countries much(prenominal) as the USA, Japan, in the altogether Zealand and atomic number 63 first in line. Today, the harvest-tide range avail satis cistrony extends as further as 2200 lines in Australia, 1300 lines in the US and many more in over 60 in the buff(prenominal) countries. It is not unmatched that the greatest distribution of Billabong convergences is to coastal destinations. However, countries locked by land atomic number 18 given the prospect to live the Billabong experience with merchandises operation al on-line and in assorted gillyflowers around the world.1.4 value RANGEBillabong products appear at the superiorer(prenominal) end of the price spectrum for the general market, and atomic number 18 moderately to high priced as compargond to their surf brand competitors. Some ex adenylic acidles of how Billabong measure in the market ar illustrated belowGirls Thongs Billabong $17.95 Mermaid sister $19.95 Target $4.00Mens Jeans Billabong $120.00 Quiksilver $139.95 Jeanswest $65.00 coast Towel Billabong $69.95 Aztec Rose $39.95 Bonds $29.951.5 MAJOR environmental VARIABLEThe single most of the essence(p) environmental variable affecting Billabong is finishing delineate as a set of set, ideas, artefacts and other(a) meaningful symbols that help individuals communicate, phase angle and evaluate as members of society (Black nearly et al. 2001). masterducts argon turgidly designed, as sketch in section 1.2 and Appendix A, for a surf/ cheerfulnessshine/style cultur e which is obviously ubiquitous in Australian living.1.6 carre quaternity EXTENSIONBillabong Skinwear a Skin-c atomic number 18 range including insolatescreen, lip-balm and after insolate-gel. This range incurs the highest Australian standards in sun valueion whilst also providing the requirement style that Australians wear come to k this instant and pay from Billabong products.2.0 divide BThe organize earreach for any given product or service is the assembly of people that advertisers indirect request to attract through their merchandising activities. The act of secerning and shaping an file make out extension service leads to assessing priorities. For instance, a family may identify a sizably large group or market to be potential consumers. However, it is credibly to be financially unsound to attempt to orchestrate all consumers within the group. A aim auditory sense may be established by a stripg headsprings much(prenominal)(prenominal)(prenominal) asWhich consultation is large enough to be a probative target?Which auditory sense is a priority in terms of the brands product?Which listening is the target of the products attributes and bene gathers?A target audience may be defined by their age, gender, family status, life style, interests or a conspiracy of these characteristics. It is noteworthy that a target audience invariably differs from the overall target market and is generally only a fraction of a given market. For example, Billabong would target consumers (both male and female) between the ages of around 12 35 but contrastive segments of this broad market be more promising to leveraging than others. It is desirable to develop demographic and psychographic profiles of these likely consumers (the target audience).Accurate details of a target audience send word only be obtained by means of presumptive market inquiry practices. However, inferences and assumptions can be do in the leadhand to aid any researc h. Some of the demographic characteristics of the Billabong target audience argon, as mentioned previously, males and females between the ages of around 12 35 (although  ad is usually specific to one peculiar(prenominal) gender as seen in the example of Appendix A). much(prenominal) individuals atomic number 18 predominantly situated in coastal regions where the beach/surf/sun culture thrives (as clearly show in Appendix A), although there are fundamental deviations from this trend especially in juvenile multiplication with such a broad, modality and geographically unbiased product range spanning some 2200 lines in Australia alone (Billabong supranational 2004).Economic actors can sometimes act as a role in defining a target but in this case the audience is not drive check to any specific economic traits for example, income brackets are not easily defined for consumers as Billabong International offers such a variety of products satisfying both head for the h illsal lifestyle needs and fashion influenced desires, hence the subroutiners likelihood of acquire is expect to be more conditional on the psychographic factors of consumer penury, motivational intensity and consumer noesis.Consumer motivation re fronts the drive to tack together physiological and psychological needs via grease ones palms and economic utilization of products (Blackwell et al. 2001, p.233). Billabong customers are likely to be driven to satisfy their complaisant show needs and needs for pleasure. They are expected to lease a high motivational intensity to live up to these needs so as to volitionally overcome the price barrier associated with doing so.The target consumers for Billabong do a relatively high level of consumer acquaintance regarding their chosen product. The judgment of consumer knowledge involves individuals pre- be knowledge and perceptions tie in to product leveraging and consumption. These consumers have a high awareness of the products attributes and associations, such as the famous waves symbol, the obvious ties with surf and pro surf and the companies Australian origins. They have a familiarity with the products image within the marketplace. They associate the brand with high quality, high fashion and are prepared to bear the comparatively high price.This target audience is aided by the bargain for knowledge they look at regarding Billabongs price positioning that is, the company is in the high price range compared to the overall market but is moderate to high in price when evaluating surf brands (see surgical incision 1.4). These consumers are also equipped with knowledge on when and where to buy aware that the products are available in specialty surf-specific stores and can rely on a to the lowest degree two sales each year at the end of summer and winter.Although overpriced research is often the most absolute way of developing a targeted selling approach, it is al shipway beneficial to attempt to identify expected consumers as early as possible in a marketing plan. Whether you utilize extensive demographic and psychographic research or just intent common-sense, the pick up is to identify a group or groups of potential customers that offer the best opportunities for ancestry potential (Defining Your Target 2004).3.0 SECTION C3.1 THE BILLABONG COMMUNICATION com mixed bagtureA flourishing confabulation mix is essential in the marketing of any brand or product to consumers. This ties in with the familiar four Ps of marketing which are price, place, furtherance and product. The most important factor relating to the concept of the communications mix is promotion. Examples of promotion include personal selling, sales promotion, world relations, publicity, direct mail, advertizing, sponsorship, branding and distribution of samples.A good communication mix conditions that the brand receives adequate motion picture whilst also targeting the confiscate audiences (see Section B). For many large corporations, their logo is an integral part of their marketing activities. This extraordinary identifier allow be present throughout all forms of visual marketing communication and is a powerful statement in itself. An obvious example of such would be Nike with its swoosh symbol. Similarly, the famous Billabong waves are present throughout the Billabong communication mix.3.2 PRINT denoteCurrently there are a number of communication manners that are utilise by Billabong. masterducts are sustaind in a number of magazines such as Dolly, Girlfriend, Chik and Cosmopolitan, who predominately market to the female segment of Billabongs target audience. bell ringer advertisements also gambol in more male orient publications such as Ralph and FHM and can be seen in specific surf magazines such as Surfing. The combination of these promotional activities tellingly reaches the specific audience that Billabong targets.3.3 BROADCAST publicizingBro adcast advertising is existently limited and is likely to only be feature for events such as special surfing colligate events such as the Billabong Pro surf championships.3.4 INTERNET PROMOTIONS cyberspace promotions are one of the most extensive ways in which Billabong advertises. On almost either Billabong advertisement featured in the aforementioned(prenominal) media, the Billabong web address is present billabong.com. The website shows the broad(a) product list, which are available for purchase online. The website is not just limited to the Australian audience. It also caters for variant products and prices suitable for different regions around the world, including North America, South America, Asia and Europe representative of Billabongs growing international front man and successful utilisation of the net profit in market places around the world.3.5 PROMOTIONAL clobberAssociated to Billabong is a highly influential reference group who effectively act as a promotion al animal. These are pro surfers such as Layne Beachley, Alana Brennan and Andy Irons. This reference group gains credibility for the brand by development Billabong products. Billabong promotions use these public faces to give testimonials as the attention gained by having experts approval is invaluable in the counterbalance for consumer preference.3.6 POINT OF PURCHASE DISPLAYSPoint of purchase displays are frequently employ by Billabong. In surf shops such as City Beach Surf (Garden City, Whitfords City), Billabong products are grouped together in the store whereas in Brothers Nielsen (Garden City, Perth, Whitfords City), the Billabong are grouped aboard competing brands by category. From the marketing perspective of a reputable manufacturer, it is more desirable to have the clothes grouped by brand quite an than by category as this allows consumers to search for the specific brand they regard to purchase.3.7 IS THIS COMMUNICATION MIX APPROPRIATE?Print advertising utilised by Billabong is enchant and effective as the magazines that they feature in are targeting similar or coincide audiences. Promotions and promotional material aid in change magnitude public familiarity with the brand. This has been graspd by attaching the Billabong get wind and logo with events such as the Billabong Pro and other surfing events worldwide. Celebrities, especially depiction stars, television actors, entertainers, and sports figures, can be very powerful assets to any marketing and advertising campaign (Blackwell et al. 2001). Billabong uses famous surfers Layne Beachley, Alana Brennan and Andy Irons to achieve higher credibility within the surfing world.Another powerful promotional tool is the brands website. Generation X and Y are very likely to search the internet for products that they wish to purchase, as it allows them to shop in the comfort of their homes without the effort of hard-hitting different stores to pass trustworthy products or entropy. Interne t Promotions are seen to be effective because of the increasing frequency and effectiveness of e-commerce in todays globalised market place. The website is palmy to use, easy to find and is prevalent in all the advertising material increasing consumer knowledge of the website.Broadcast advertising for Billabong is likely to have a limited effectiveness. It has been shown that only 19% of television viewers actually curb the advertisements shown during a show (Lach, cited in Blackwell 2001, p. 438). thrill this in mind, and realising that the target audience is a relatively specific one, it is doubtful that the audience give be reached on a frequent basis via this medium.3.8 CHANGES TO COMMUNICATION MIXWe believe that Billabong should implement a number of various changes to the current communications mix in lay out to launch the Skinwear range. Procedures such as distributing eject samples would be effective in increasing awareness of the product, its function of reducing the effects of sun mental picture and the confirmative associations of the brand.An increase in Billabong sponsored events willing lead to increased exposure of the Billabong name and will provide an excellent opportunity to introduce consumers to the product extension line. The Skinwear range can be officially launched by specifically attaching the name of the brand-new product (Skinwear) to a Billabong sponsored event. On its launch, the previously mentioned method of sample distribution can be used to full effect.The launch of Skinwear will coincide with the increased marketing activities border the entire Billabong range during the summer vacation season. An effective way of maximising the benefits of this blot would be to utilise POP displays, perchance combined with promotional gift packs.4.0 SECTION D4.1 PRODUCT CONCEPTAs a well recognised and trusted surf brand, Billabong is endeavouring to branch out into the skin-care market, in particular sun-care to further cate r to its customers lifestyle needs. Like the rest of the world, Australia as a society has become heavily wellness and image conscious as demonstrated from the many articles, advertisements, new products and spending increases found in the Health and Cosmetic Industries. Billabong has made the purpose to extend their exist product range in an attempt to take a crap advantage of this new demand for wellness and beauty products. In doing so, Billabong has defecated its Skinwear range which includes a cheerscreen, Lip balm and After-Sun gelatine all of which experience the high standards set by the Australian Government and Australian crabby person Council.Included in the Billabong Skinwear range is a Sunscreen boasting an SPF or Sun Protection Factor of 30, shielding the skin from hurtful UV rays 30 times longer than our skins natural defences are able to. Through the introduction of past groundbreaking products, Billabong has become cognise for its dedication to meet and exceed the needs demanded by their surfing clientele hence incorpo judge an 8 min weewee security department attribute into this product. This feature allows surfers and beach goers the chance to enjoy their lifestyle without the concerns of having to frequently reapply sunscreen. The combination of 30 SPF and 8hrs of water resistance will instantly place the product at to the lowest degree reachly, in terms of functional attributes, at the slide by of the market.Billabongs new Skinwear range also includes a Lipbalm featuring an SPF of 15. As a means to draw out the target audience, Billabongs new Lipbalm is free of colour and taste, removing added hesitation in the male demographic. For easy covering, the Lipbalm is packaged in a squeezable tube, making for easy and mess-free application all of which is very handy when applying at the beach.Incorporated into the After-Sun Gel is an aloe extract. According to Steve Herman (2004, p.54) aloe ashes a genuinely useful imp rove agent widely accepted by the public. In order to meet consumer requirements, aloe is a feature in the After-Sun Gel product. It is merely a last fix that consumers would ultimately require a product to soothe the effects the sunburn however, as Plato quite accurately stated The most we can teach people is what they already know. This statement defines the need for a product such as After-Sun Gel, as it is expected that even with the existence of a Sunscreen as provided by Billabong consumers are likely to use the product inefficaciously all(prenominal) now and and so.Pat doubting Thomas (2004, p.16) declares the sun is now officially the confrontation against which sun creams are our weapon of resource. According to figures given on the Australian Cancer website (http//www.cancer.org.au) 374,000 Australians are treated for non-melanoma skin cancer every year. This figure accounts for 1.9% of Australias entire population. more alarming is that an additional 8,500 Australi ans are diagnosed with a melanoma, of which 1300 will die as a result. such(prenominal) frightening statistics generate the question are members of Australias beach and surf culture fetching appropriate locomote to protect their skin from such destroy consequences?Pioneers in serving this beach/surf culture, Billabong attempt to make their consumers aware of the harmful dangers associated with long term exposure to the sun and its effects. In doing so, Billabong offers such products as available in their new Skinwear range to protect the physiological needs of their consumers as well as removing the quite apparent social negativity involved in vesture and applying sunscreen.4.2 TARGET MARKET REVISITEDIt would be inexpedient for a brand such as Billabong to extend an already successful product range if there was any creator to believe that it would not be as successful as the collective subsisting products. In accordance, Billabong has created a Skinwear range that not only ext ends the well recognised image of the brand but also the values and attributes that a consumer would associate with any of its other products. For instance, Billabong is renowned for its high quality surf-related products, innovational style and up-to-date fashion. A marketing approach to increase the popularity of Billabong products is to promote consumption as more than an experience, but rather a statement of image and self-expression. It is for this former that the slogan for the new Skinwear range reads break off Billabong, even when youre naked.As identified in Section B, Billabongs key target audience extends between males and females aged between 12 and 35. At these ages, it would not be inaccurate to put forward that a major factor in the purchase and consumption of surf brands and their related products is whether the product links consumers with the desire to fit certain image and style demands. The surf and beach culture is dominant in the lifestyles and images o f Australian people. This, in effect, further intensifies the need for many consumers to conform.Australians are becoming more obsessed with their health and appearance. Appearing on Australian networks week by week are television shows that promote decorative surgery, crash diets, new health fortunes, innovational pharmaceuticals and much more. It is not surprising that consumers in the demographic of 12-35 years of age are identifying a need to improve and asseverate beauty and health.The links between sun exposure and skin damage have been extensively researched in Australia, as it appears that compared to other geographical locations, Australian people are more susceptible and at risk of suffering, due to the consequences of living in such a sun exposed location. When taking into consideration the various issues relating to sun exposure and skin damage, Billabong decided to create their Skinwear range. It is expected that with an informative and effective marketing campaign , lively Billabong consumers will see the need to carry a diligent skin safeguard regime, in turn utilising the products that are now offered by Billabong.4.3 ATTITUDESIn order for this product extension to be successful, Billabong has attempted to don the large target audience that already purchases and consumes their existing product range. It is suggested by Blackwell et al. (2001, p. 289) that prop a favourable spot toward a product is almost always an essential prerequisite in order for consumers to hold a favourable purchase of consumption intention. In saying this, it is not expected that the consumer will automatically purchase the product, but that they will hold a favourable intention which may look in their decision.Several representatives are used to aid marketers of companys such as Billabong to analyse consumer attitudes and their associated effects on product evaluation and choice. Better known as the Fishbien Model and Ideal-Point Model, marketers of bran ds such as Billabong are given important information from consumers results. In many cases, this leads to new product developments as is the case of Billabong, where certain needs not catered for are alerted to designers.In order for Billabong to avoid consumer attitudes becoming naive between brands, it is essential to do any(prenominal) it takes to achieve Attitude persistence where an attitudes immune to such wearing away (Blackwell et al. p. 300). It is likely that the need for products such as that offered in Billabongs Skinwear range will neer be made redundant, purely because the risks associated with having lives turn around the sun are not diminishing in number and neither are the risks associated.The greatest obstacle face up when introducing Billabongs new Skinwear range is changing consumers preferences, in effect, recuperateing competitors customers (Blackwell et al. 2001, p. 301). A strong feature of the Skinwear range is its SPF rating and Water Resistance. In order to recruit competitors customers Billabong must be effective in changing consumers attitudes, draft copy on favourable attitudes held about their existing product range, as well as emphasising comparisons between their new product extension and other existing brands hopefully in favour of their products.4.4 CONCLUSIONBillabong recognises the greatness of consumers needs to be protected in the sun. After all, it is the expectation that having consumers who exude a lifestyle surrounded by surf and beach that these needs will as some point require satisfying. As a highly regarded surf brand, Billabong places importance on fulfilling consumers needs for safety device and health. In recognising the gap in its product range, Billabongs new product extension, boasting a highly protective Sunscreen, Lipbalm and After-Sun Gel, continues their commitment to meet the demands of its consumers for the coming summer season.5.0 SECTION ETo examine the decision making processes go throug h by a consumer it is practical to use the Consumer Decision puzzle out (CDP) Model which defines seven likely stages involved in any purchase. The CDP model represents a roadmap of consumers minds that marketers and managers can use to help guide product mix, communication and sales strategies (Blackwell et al. 2001, p.71). All consumers are not strictly bound by this model in making their decisions, but are likely to undergo at least some of the following stagesThe Consumer Decision surgical operation ModelIn the case of Billabong, to ensure the success of their product line extension and the associated marketing activities it would be beneficial to theorise the probable processes of their target audience in becoming trustworthy users of the new product. such(prenominal) predictions may be made by examining the stages of the CDP model.The first stage of the model, need recognition, involves the consumer feel the difference between their ideal and actual state of affairs. Bi llabong will aim, through straight-forward advertising and other marketing communications (as outlined in Section C), to undermine the users perceptions about the adequacy of their existing state and will hence create a problem that must be solved.Advertising will include the secern negative consequences of not using the product (such as skin damage and/or cancer) with the altogether officially chargeds outcomes associated with using the new product. Such benefits include a high level of skin care and also positive social image. With so many choices and more and more variables affecting consumer decisions, especially for low-involvement products such as sunscreen, it is expected that previous loyal followers of the Billabong trademark will factor their positive experiences and high levels of satisfaction into their decision to use Billabong Skinwear.The second stage involves searching the marketplace for information on products and fudgenatives. The loyal Billabong consumer will find themselves undergoing components of both an subjective and external search and will then move on to assess evaluative criteria as outlined by the trine stage pre-purchase evaluation. It is in this stage that these particular consumers are likely to conclude Billabong as the better alternative.The target audience, whether undergoing an external or internal search will find Billabong to be at least equal (see Section 4.1) to its competitors in terms of its products attributes whilst the positive associations with the Billabong brand will ensure that Billabong Skinwear is seen as the superior alternative. It is the intention of Billabong to extend its control into the new market and it is hoped that consumers eliminate the need for extensive searching in order to simply transfer consignment into this new market.There are two paths that will lead a consumer to the fourth stage of the purchase decision. They may either consistently travel through the previous tercet stag es leading to an obvious choice to purchase, or they may avoid the first iii stages altogether and simply purchase the product based on an instantaneous decision influenced by prior ties to the Billabong brand. An example of such may be seen in beat purchasing, where point-of-purchase (POP) displays may play a significant role.The fifth stage consumption, is likely to return seasonally as sun protection is demanded mainly in summer. However, loyal consumers such as those outlined in section B are perhaps the more likely of any one in the market to use the product as suggested by Billabong and its experts all year round.Stages v and six consumption and post-consumption evaluations are likely to have a positive, satisfied response from consumers when taking into consideration Billabongs efforts to transfer inscription from past experiences into the new products evaluation. The last stage, divestment, holds no definitive expectations from those marketing the new product. The only aim is for the target consumers to consume the product completely and not discard it in preference for a competing brand before the end of its useful lifeThe mutation of loyal users to the new product (as summarized in this section) demonstrates how varying influential factors will alter the processes outlined in the Consumer Decision Process (CDP) Model. Whether it be the testimony of industry experts or the word of mouth (WOM) distribution of the positive brand image, it is clear that it will be more than possible to transmit the loyalty of the brand into the new product extension line.6.0 REFERENCESBillabong International 2004. Retrieved September 30, 2004, from http//www.theage.com.au/articles/2004/ 06/12/1086749947661.html?from=storylhs.Blackwell, D.R., Miniard, P.W. & Engel, J.F. 2001, Consumer Behaviour 9ED, Harcourt Inc., Florida.Defining Your Target 2004. Retrieved October 4, 2004, from http//www.usg.com/contractors/defining_your_target.asp.Herman, S. 2004, A day at th e beach, planetary Cosmetic Industry, vol. 172, no. 8, pp. 53-54. Retrieved October 13, 2004, from Proquest.Thomas, P. 2004, Behind the trail Suncream, The Ecologist, vol. 34, no.6, Retrieved October 13, 2004, from Proquest.