Consumer Behaviour Product Line Extension (Billabong)

4281 words - 17 pages

1.0 SECTION A1.1 PRODUCT INFORMATIONOriginal Brand Name of Product:Billabong InternationalProduct Class:Surf BrandDescription:Created by two avid surfers, Billabong is a brand designed by surfers, for surfers. In 1973, Billabong offered little more than a small range of surf wear: mainly surfboards and board shorts. But today, Billabong is a brand that encompasses the Australian surf culture by offering products that cater not only for the surfer inside many of us, but for fashion and lifestyle needs.1.2 CURRENT TARGET MARKETBillabong is a brand that offers numerous products designed to accommodate numerous lifestyles. Included in their extensive range are products designed for surfers, general beach goers, skateboarders and the fashion conscious. Comprehensive characteristics of this market are difficult to pinpoint, however, it is the assumption that the majority of consumers are males and females aged between 12 and 35 years of age.Consumer Need: Social Image Need - the most important need satisfied by Billabong1.3 CURRENTLY SOLDIn the mid 1980's, just over ten years since the birth of Billabong, the successes of the small Australian brand were being recognised world wide and Billabong products were in high demand. This led to the export of Billabong products to the global market with countries such as the USA, Japan, New Zealand and Europe first in line. Today, the product range available extends as far as 2200 lines in Australia, 1300 lines in the US and many more in over 60 other countries. It is not unusual that the greatest distribution of Billabong products is to coastal destinations. However, countries locked by land are given the opportunity to live the Billabong experience with products available on-line and in assorted stores around the world.1.4 PRICE RANGEBillabong products appear at the higher end of the price spectrum for the overall market, and are moderately to high priced as compared to their surf brand competitors. Some examples of how Billabong measure in the market are illustrated below:Girls Thongs: Billabong - $17.95 Mermaid Sister - $19.95 Target $4.00Men's Jeans: Billabong - $120.00 Quiksilver $139.95 Jeanswest $65.00Beach Towel: Billabong - $69.95 Aztec Rose - $39.95 Bonds $29.951.5 MAJOR ENVIRONMENTAL VARIABLEThe single most important environmental variable 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 are largely designed, as outlined in section 1.2 and Appendix A, for a surf/sun/style culture which is seemingly ubiquitous in Australian living.1.6 PRODUCT EXTENSIONBillabong Skinwear: a Skin-care range including sunscreen, lip-balm and after sun-gel. This range meets the highest Australian standards in sun protection whilst also providing the essential style that Australians have come to know and expect from Billabong products.2.0 SECTION...

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