Consumer Behaviour †Product Line Extension Essay

Created by deuce avid breakerers, Billabong is a cross off designed by surfers, for surfers. In 1973, Billabong offered little to a greater extent than a small aim of surf wear mainly surfboards and board shorts. But today, Billabong is a fall guy that encompasses the Australian surf flori ending by offering professional personducts that cater nary(prenominal) further for the surfer inside m any(prenominal) of us, unless for fashion and life modality guides.1.2 stream TARGET MARKETBillabong is a tick off that offers numerous proceedss designed to conform numerous modus viv terminateis. Included in their extensive honk atomic morsel 18 w ars designed for surfers, general rim goers, skateboarders and the fashion conscious. Comprehensive characteristics of this market atomic number 18 assumeing to pinpoint, however, it is the assumption that the majority of consumers atomic number 18 males and females aged between 12 and 35 years of age.Consumer Need Social Image Need the most substantial need satisfied by Billabong1.3 CURRENTLY SOLDIn the mid(prenominal) 1980s, clean over ten years since the birth of Billabong, the successes of the small Australian brand were being prize world wide and Billabong w atomic number 18s were in high up demand. This led to the export of Billabong overlaps to the global market with countries overmuch(prenominal)(prenominal) as the USA, Japan, stark naked Zealand and Europe first in line. Today, the harvest-time range available extends as far as 2200 lines in Australia, 1300 lines in the US and many more than in over 60 untested(prenominal)wise countries. It is not unusual that the greatest dissemination of Billabong ingatherings is to coastal destinations. However, countries locked by land argon effrontery the probability to live the Billabong experience with results available on-line and in assorted stores most the world.1.4 PRICE RANGEBillabong fruits appear at the higher end of the deter mine spectrum for the overall market, and argon moderately to high priced as comp atomic number 18d to their surf brand competitors. just about examples of how Billabong measure in the market be illustrated belowGirls Thongs Billabong $17.95 Mermaid infant $19.95 stigma $4.00Mens Jeans Billabong $120.00 Quiksilver $139.95 Jeanswest $65.00Beach Towel Billabong $69.95 Aztec Rose $39.95 Bonds $29.951.5 study ENVIRONMENTAL VARIABLEThe single most important environmental unsettled affecting Billabong is Culture defined as a set of values, ideas, artefacts and other meaningful symbols that help individuals communicate, interpret and evaluate as members of society (Blackwell et al. 2001). Products be outstandingly designed, as describe in section 1.2 and Appendix A, for a surf/ sunlight/ title culture which is seemingly ubiquitous in Australian living.1.6 PRODUCT EXTENSIONBillabong Skinwear a Skin-c atomic number 18 range including sunscreen, lip- emollient and after sun-gel . This range meets the highest Australian standards in sun auspices whilst also providing the innate style that Australians have come to k instanter and expect from Billabong products.2.0 SECTION BThe stern earreach for any given product or service is the conference of people that advertisers wish to attract through their trade activities. The process of lineing and be an sense of hearing lives to assessing priorities. For instance, a firm whitethorn identify a sizably large conference or market to be authorisation consumers. However, it is probable to be financially unsound to attempt to target all consumers deep down the group. A target audience may be established by enquire questions such(prenominal) asWhich audience is large enough to be a signifi goatistert target?Which audience is a priority in harm of the brands product?Which audience is the target of the products connects and benefits?A target audience may be defined by their age, sex activity, family s tatus, lifestyle, interests or a compounding of these characteristics. It is noteworthy that a target audience invariably differs from the overall target market and is generally only a segment of a given market. For example, Billabong would target consumers (both male and female) between the ages of intimately 12 35 but polar segments of this broad market are more likely to leverage than others. It is desirable to develop demographic and psychographic profiles of these likely consumers (the target audience).Accurate details of a target audience buttocks only be obtained by representation of credible market look into practices. However, inferences and assumptions can be made forwardshand to aid any research. Some of the demographic characteristics of the Billabong target audience are, as mentioned previously, males and females between the ages of nigh 12 35 (althoughadvertising is usually ad hoc to one particular gender as seen in the example of Appendix A). Such indivi duals are predominantly situated in coastal regions where the beach/surf/sun culture thrives (as clearly demonstrated in Appendix A), although there are large deviations from this trend specially in recent times with such a broad, climate and geographically unbiased product range spanning some 2200 lines in Australia alone (Billabong global 2004).Economic factors can sometimes play a role in defining a target but in this episode the audience is not necessarily limited 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 functional lifestyle need and fashion influenced desires, hence the givers likelihood of acquire is judge to be more dependant on the psychographic factors of consumer motivation, motivational metier and consumer association.Consumer motivation represents the drive to meet physiologic and psychological necessitate via purchase and in gestion of products (Blackwell et al. 2001, p.233). Billabong customers are likely to be driven to satisfy their mixer photograph needs and needs for pleasure. They are expected to have a high motivational intensity to fulfil these needs so as to pass oningly overcome the price barrier gentd with doing so.The target consumers for Billabong have a relatively high level of consumer knowledge regarding their chosen product. The concept of consumer knowledge involves individuals pre- brisk knowledge and perceptions colligate to product purchase and consumption. These consumers have a high awareness of the products attributes and associations, such as the noted 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 hustling to bear the comparatively high price.This target audience is aided by the purchase knowledge they catch regarding Billabongs price positioning that is, the lodge is in the high price range compared to the overall market but is moderate to high in price when evaluating surf brands (see Section 1.4). These consumers are also equipped with knowledge on whenand 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 summertime and winter.Although expensive research is often the most accurate personal manner of developing a targeted trade approach, it is always 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 use common-sense, the fall upon is to identify a group or groups of potential customers that offer the best opportunities for business potential (Defining Your Target 2004).3.0 SECTION C3.1 THE BILLABONG COMMUNICATION MIXA successful co mmunication concoction 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, onward motion and product. The most important factor relating to the concept of the communications mix is promotional self-coloured. Examples of promotion accept personal selling, sales promotion, public relations, publicity, direct mail, advertising, sponsorship, branding and distribution of samples.A good communication mix ensures that the brand receives adequate term picture whilst also targeting the appropriate audiences (see Section B). For many large corporations, their logo is an constitutional part of their marketing activities. This unique identifier volition be present passim all forms of visual marketing communication and is a powerful asseveration 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 ADVERTISING before long there are a number of communication methods that are use by Billabong. Products are featured in a number of magazines such as Dolly,Girlfriend, Chik and Cosmopolitan, who predominately market to the female segment of Billabongs target audience. patsy advertisements also feature in more male oriented publications such as Ralph and FHM and can be seen in specific surfboarding magazines such as shoping. The combination of these promotional activities effectually reaches the specific audience that Billabong targets.3.3 convey ADVERTISINGBroadcast advertising is very limited and is likely to only be featured for events such as special surfing related events such as the Billabong Pro surf championships.3.4 INTERNET PROMOTIONSInternet promotions are one of the most extensive ways in which Billabong advertises. On almost each Billabong advertisement featured in the aforementioned media, the Billabong web language is present billabon g.com. The website shows the entire product list, which are available for purchase online. The website is not just limited to the Australian audience. It also caters for different products and prices suitable for different regions around the world, including North America, South America, Asia and Europe representative of Billabongs growing world(prenominal) presence and successful utilisation of the internet in market places around the world.3.5 PROMOTIONAL MATERIALAssociated to Billabong is a highly influential reference group who effectively act as a promotional tool. These are pro surfers such as Layne Beachley, Alana Brennan and Andy Irons. This reference group gains credibility for the brand by using Billabong products. Billabong promotions use these public faces to give testimonials as the attention gained by having experts approval is invaluable in the fight for consumer preference.3.6 dit OF PURCHASE DISPLAYSPoint of purchase displays are frequently utilise 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 alongside competing brands by category. From the marketing perspective of a estimable manufacturer, it is more desirable to have the clothes grouped by brand rather than by category as this allows consumers to search for the specific brand they wish to purchase.3.7 IS THIS COMMUNICATION MIX APPROPRIATE?Print advertising utilized by Billabong is appropriate and effective as the magazines that they feature in are targeting similar or overlapping audiences. Promotions and promotional material aid in increase public familiarity with the brand. This has been achieved by attaching the Billabong name and logo with events such as the Billabong Pro and other surfing events worldwide. Celebrities, especially movie stars, video actors, entertainers, and sports figures, can be ver y powerful assets to any marketing and advertising execute (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 searching different stores to maintain certain products or information. Internet Promotions are seen to be effective because of the increasing frequency and effectiveness of e-commerce in todays globalised market place. The website is tardily 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 square up the advertisements shown during a s how (Lach, cited inBlackwell 2001, p. 438). Bearing this in mind, and realising that the target audience is a relatively specific one, it is doubtful that the audience will be reached on a frequent basis via this medium.3.8 CHANGES TO COMMUNICATION MIXWe look at that Billabong should implement a number of various changes to the current communications mix in swan to launch the Skinwear range. Procedures such as distributing free samples would be effective in increasing awareness of the product, its function of reducing the do of sun exposure and the tyrannical associations of the brand.An increase in Billabong sponsored events will 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 new product (Skinwear) to a Billabong sponsored event. On its launch, the previously mentioned method of sample distribu tion can be used to full effect.The launch of Skinwear will coincide with the increased marketing activities contact the entire Billabong range during the summer holiday season. An effective way of maximizing the benefits of this situation would be to utilise POP displays, perhaps 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 throw together-care market, in particular sun-care to further cater to its customers lifestyle needs. Like the rest of the world, Australia as a society has bring into being heavily health and image conscious as demonstrated from the many articles, advertisements, new products and spending increases based in the Health and Cosmetic Industries. Billabong has made the decision to extend their existing product range in an attemptto take advantage of this new demand for health and beauty products. In doing so, Billabong has bring ind its Skinwear range which takes a Sunscreen, Lip balm and After-Sun Gel all of which meet the high standards set by the Australian Government and Australian crabmeat Council.Included in the Billabong Skinwear range is a Sunscreen brag an SPF or Sun Protection Factor of 30, shield the skin from harmful UV rays 30 times longer than our skins innate defences are able to. Through the introduction of past innovative products, Billabong has become known for its dedication to meet and exceed the needs demanded by their surfing clientele hence incorporating an 8 hour water protection 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 least(prenominal) equally, in terms of functional attributes, at the bill of the market.Billabongs new Skinwear range also includes a Lipbalm featuring an SP F of 15. As a means to widen the target audience, Billabongs new Lipbalm is free of colour and taste, removing added suspense in the male demographic. For easy application, the Lipbalm is packaged in a compressible 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 remains a genuinely reusable healing agent widely accepted by the public. In order to meet consumer requirements, aloe is a feature in the After-Sun Gel product. It is hardly a last resort 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 rehearsal 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 ineffec tively every now and then. satiny Thomas (2004, p.16) declares the sun is now officially the enemy against which sun creams are our weapon of choice. 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 Australians are diagnosed with a melanoma, of which 1300 will die as a result. Such affright statistics generate the question are members of Australias beach and surf culture taking appropriate steps to protect their skin from such withering 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 wearing and applying sunscreen.4.2 TARGET MARKET REVISITEDIt would be unwise for a brand such as Billabong to extend an already successful product range if there was any reason to consider that it would not be as successful as the collective existing products. In accordance, Billabong has created a Skinwear range that not only extends 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, innovative 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 reason that the slogan for the new Skinwear range reads Wear Billabong, even when youre naked.As identified in Section B, Billabongs key target aud ience extends between males and females aged between 12 and 35. At these ages, it would not be inaccurate to suggest that a major factor in the purchase and consumption ofsurf brands and their related products is whether the product think consumers with the desire to fit certain image and style demands. The surf and beach culture is dominant in the lifestyles and images of Australian people. This, in effect, further intensifies the need for many consumers to conform.Australians are go more obsessed with their health and appearance. seem on Australian networks week by week are television shows that promote cosmetic surgery, crash diets, new health risks, advanced 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 maintain 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 locati ons, 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, existing Billabong consumers will see the need to execute a diligent skin protection 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 attempt to seize the large target audience that already purchases and consumes their existing product range. It is suggested by Blackwell et al. (2001, p. 289) that holding a favourable attitude toward a product is almost always an essential prerequisite in order for consumers to hold a favourable purchase of consumption intention. In formula this, it is not expected that the consumer will automatical ly purchase the product, but that they will hold a favourable intention which may assist in their decision.Several models are used to aid marketers of companys such as Billabong to analyse consumer attitudes and their associated effects on product evaluation and choice. bankrupt known as the Fishbien Model and Ideal-Point Model, marketers of brands such as Billabong are given important information from consumers responses. 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 impartial between brands, it is essential to do whatever it takes to achieve Attitude persistence where an attitudes repellent to such corrosion (Blackwell et al. p. 300). It is likely that the need for products such as that offered in Billabongs Skinwear range will never be made redundant, purely because the risks associated with having lives turn around the su n are not diminishing in number and neither are the risks associated.The greatest obstacle faced when introducing Billabongs new Skinwear range is changing consumers preferences, in effect, eliciting 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, drawing 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 importance of consumers needs to be protected in the sun. After all, it is the expectation that having consumers who transude 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 n eeds for preventive 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 experienced by a consumer it is practical to use the Consumer Decision Process (CDP) Model which defines septette 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). entirely 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 Process ModelIn the case of Billabong, to ensure the success of their product line extension and the associated marketing activities it would be beneficial to hypot hesise the probable processes of their target audience in becoming incorruptible users of the new product. Such predictions may be made by examining the stages of the CDP model.The first stage of the model, need recognition, involves the consumer sensing the difference between their model and actual state of affairs. Billabong 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 contrasting negative consequences of not using the product (such as skin damage and/or cancer) with the altogether positives 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 authentication 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 onproducts and alternatives. The loyal Billabong consumer will find themselves undergoing components of both an internal and external search and will then move on to assess evaluative criteria as outlined by the third 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 dominance into th e new market and it is hoped that consumers eliminate the need for extensive searching in order to simply channelise loyalty into this new market.There are two paths that will lead a consumer to the fourth stage of the purchase decision. They may either systematically travel through the previous 3 stages principal to an obvious choice to purchase, or they may avoid the first three 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 impulse purchasing, where point-of-purchase (POP) displays may play a significant role.The twenty percent stage consumption, is likely to occur 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 five and six consumption and post-consum ption evaluations are likely to have a positive, satisfied response from consumers when taking into consideration Billabongs efforts to transfer loyalty 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 whole and not discard it in preference for a competing brand before the end of its useful lifeThe transition 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//ww w.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 the beach, Global Cosmetic Industry, vol. 172, no. 8, pp. 53-54. Retrieved October 13, 2004, from Proquest.Thomas, P. 2004, Behind the Label Suncream, The Ecologist, vol. 34, no.6, Retrieved October 13, 2004, from Proquest.