Billabong Company - Marketing and Management Analysis - Report Example

Billabong Company Name: Institution: Date: Table of Contents Table of Contents 2 1.0 Company Analysis- Marketing 3 1.1 Brand Analysis 3 1.2 Product Analysis 4 1.3 Customer Analysis 4 1.4 Competition 5 1.5 Growth Strategy 7 2.0 Company Analysis- Management 8 2.1 Management 8 2.2 Mission, Values and Culture 9 2.3 Corporate Social Responsibility (CSR) 10 2.4 Benefits of Working in the Organization 11 2.5 Attributes in Applicants 12 References 14 1.0 Company Analysis- Marketing 1.1 Brand Analysis The organization manages its brand through individual products branding approach. In this regard, the corporation seeks to market and brand each of its products differently, considerably increasing its overall individual brands status in the market. In this regard, as the CEO, Inman argued, the corporation benefited from the application of the individual branding approach through the celebrities endorsements marketing approach (Lafrenz, 2013). Further, Bower and Grau (2009) conducted a study evaluating on the merits of the adoption of endorsements approaches in marketing. In this regard, the study established that due to the celebrities’ role model status in the society and in their respective field, such a marketing approach increased overall products loyalty. Therefore, the adoption of this approach increases the organizational products loyalty in its diverse market base. Through the adoption of this approach, the organizational branding process benefits on a range of aspects. On one hand, its focus on board sportswear and the subsequent use of personalities in these sporting activities increases the organizational appeal to the group over competitors. In addition, the approach ensures that each product is supplied independently into the market subsequently reducing the risk and negative implications of a price or demand decline by one of the products in the industry. As such, individual products negative image or loses do not spill onto the overall organizational earnings as other products performance and revenues offset such losses (“Billabong”, 2014). 1.2 Product Analysis Billbong Company has a definite new product development process. In its development cycle, Annacchino (2007) stated that new products developments cycle is initiated through need recognition, to idea development, alternatives evaluation, through product development to supply into the market. In this regard, the organization through is research and innovation functions, evaluates fashion trend s and needs change in the board sports industry to identify a need in the market. Upon such establishments, the organization designs the appropriate product model and subsequently develops a template for production. Once the production process is complete, the organization distributes the new products into the market through its acquisitions as well as whole owned retail outlets across the globe. This allows for the new product introduction into the market. In managing its products, the organization employs the function and skills of their respective line managers to maintain inventories for business function and profit centres under their jurisdictions. Moreover, in order to increase its products lifecycle and retain them long enough under the growth stage, the organization diversifies its consumer base to focus on new markets where board sports are new and thus introduce the sport as well as the products (“Billabong”, 2014). An analysis and review of the organizational products as a wholesome brand, and based on their revenue gains and trend, this review conclude that the organizational products are at their growth and maturity stages as evidenced by the gradually increasing but steady market revenues experienced in the last decade. 1.3 Customer Analysis The Billabong Company has over the years south to diversify and expand its consumer base. As such, the organization has acquired a consumer base with diverse traits and characteristics. On one hand, the consumer base is sport interested. The organization majorly focuses on the development and supply of products to the boards’ ports professionals and stakeholders. Therefore, the organization has a consumer base that is basically sports oriented and focused on board sports. Traditionally, the organization focused on supplying surf related products for surfers in the Australian market (Plunkett, Jack, Balan, Andreea, Brison, Brandon, Jordan, Daniel & Kolber, 2008). However, the organization through its diversification and expansion overtime has incorporated other sports supplies in its consumer base. An additional, consumer base trait is the presence of an increasingly youthful target population. Due to their interest in board sport the organization has increasingly targeted the youthful population, as characterized by its increased marketing and advertising tools targeting this young population. In addition, the organizational consumer base is fashion driven. In its design and product development, the organizational key concern is on developing fashionable products. In this regard, the eventual consumer base is one that is fashion oriented and that is interested and attracted by fashionable designs in the market. In this regard, a majority of the consumer base, despite their desire for functional products, are fashion driven into acquiring fashionable sports products (English & Pomazan, 2010). Finally, a review of the consumer base traits demonstrates that the consumer base has a key characteristic in their concern for environmental conservation in the market. As such, the consumer base is focused on the development, adoption and use of the environmental implications of the purchased products. 1.4 Competition Despite its key strategic advantages, the organization faces a high and increasing market competition. In this regard, the organization currently faces competition from organizations such as Quicksilver. The Quicksilver supplies women, men and children board sportswear. In this regard, the organization has over the years developed a strong brand reputation in the market. In its expansion and growth approach, the organization applies the organizational branding and marketing approach. Through this approach, the organization has established a reputation in the market for an overall brand market supply package. Therefore, the organizational brands reputation offers it’s a market advantage. This is in contrast with Billabong Company marketing approach. Billabong Company applies the product based marketing approach that despite its merits, denies the organization the desired overall reputation in the market. Nevertheless, the adoption of the organizational overall branding approach adopted by the competitor serves as its main revenue challenge as a failure by one brand in the market directly implicates on the revenue gains on the market (Dale, 2005). An additional Billabong Company competitor in the market is Rip Curl. The organization has over the years established itself as a key market and industry player in the board sports accessories and wears industry through its low pricing approach. Currently, the organization profiles as the cheapest in the industry offering it increased demand over competitors such as Billabong. However, although the low prices increase its overall demand and sales, the approach reduces the organizational overall profitability, reducing its shareholder gains as compared to competitors. As such, its expansion capability is strongly reduced as compared to vibrant competitors as Billabong expanding their consumer bases by the day. The organizational revenue implications by competition can be illustrated in the pie chart below 1.5 Growth Strategy The organization has over the years expanded its operations across Europe, USA and Australia. In this regard, the developments have enabled it attain multinational status as well as the enjoyment of economies of scale. In its growth and expansion strategy, the strategy has maintained its adopted approach over the years. In this case, its focus is majorly two fold. On one hand, it expands through acquisitions. When venturing into the global markets, organizations face the challenge of developing new market structures as well as the formulation of appropriate and sufficient business models. In this regard, corporations face the challenge of developing the appropriate networks to facilitate success. Therefore, the corporation overcomes this challenge through increased adoption of already established businesses. As such, it purchases such organizations accompanied by their business distribution and network systems in the market. Consequently, this offers the organization ad added advantage in that they acquire organizations with already established market distribution centres as well as customer bases. As such, the overall organizational starts up and establishment costs are reduced making its growth strategy viable and sporadic. On the other hand, the organization expands and intends to project its market expansion through market diversification and branding. Through its organizational products diversification as well as labelling, the organization intends to expand ad influence the market through a branding and standardization approach, through which consumers can acquire its products regardless of their markets geographical locations. A standardization and expansion approach as Melewar, Hayday, Gupta and Cohen (2008) argued, in regard to the European Union, increases an organizational reputation and market goodwill, two critical expansion factors in an industry. 2.0 Company Analysis- Management 2.1 Management The corporation, being a publicly owned organization and listed in the Australian stock exchange, is headed by a corporate CEO. The CEO also sits in the organizational board of directors. The board is charged with the development of key organizational operational frameworks as well as the development of organizational objectives, goals and subsequent strategic plans to accomplish them. One developed, the CEO is mandated with the responsibility of ensuring the execution of such board resolutions. In its management structure, the organization has its respective managers in each of its owned outlets as well as acquisition ventures (“Billabong”, 2014). As such, the respective managers are adjudicated with the powers to develop appropriate operational decisions and strategies for their managed business centres. In addition, the corporation employs’ the hands on management structure. A hand on management approach, as Akhter (2010) argued, incorporates the direct involvement and participation of the managers in the production process. Such an approach increases employee motivation through increased interactions with the management, an approach that promotes two way organizational communications, both downward and upward. Therefore, in order to achieve this objective, the organization employs both the staff and line managers. While as the line managers are selected and appointed based on their managerial and control qualities, the staff managers are appointed based on their professional skills and expertise on distinct organizational functions and operations. 2.2 Mission, Values and Culture The organization has a corporate mission of providing innovative yet functional board sportswear products. In this regard, the management established a series of organizational support values that play a significant role in aligning the organizational daily operational and strategic functions with its overall objective and goals as enumerated in its mission statement. As such, the corporation has values in designing of innovative products designs Thus, the corporation evaluates on the design sustainability inters of production process implications as well as function conformance, to allow for increased comfort. This g-has resultantly enabled the organization achieve its consumer focused production approach culture. This culture was described by Brunner and Siegrist (2011). In a study to evaluate the merits for the adoption of a consumer oriented production approach, the authors evaluated its merits. As such, they concluded that organizations adopting this approach benefits in two key ways. One is the development of increased customer loyalty due to the production of fitting and need meeting products. Secondly, the study revealed that corporations adopting this approach had reduced production costs as well as the matching of their capacities with demand. This ensured that although organizations had the capacity to produce diverse product brands, they limited their production to the existing and potential consumer needs, thus collating production with market demand. Therefore, the Billabong Company organizational culture on customer oriented production has earned its increased market competitiveness over competitors who major on innovation and design creativity over consumers needs. However, the culture limits the organizational creativity ability. In this regard, the approach seeks to apply logic in product design development. Therefore, as Dettmer and Dettmer (2007) argued, the application of logical thinking, suppresses creative thinking, thus restricting and limiting the organizational expansion and market influence capabilities over competition. 2.3 Corporate Social Responsibility (CSR) The global market, as illustrated in changing global consumer buying behaviours, is changing to sustainability focused production. As such, the consumer base, perceive organizations with social program as sustainable and attractive. In this case, Billabong Company adopted the supply chain management social responsibility program since its reforms in 2005. Today, the organization has developed a sustainable and centralized supply chain management function. In this regard, the organizations regularly inspect and appraise its suppliers. On one hand, it requires all its suppliers to abide by the social responsibility compliance standards SA8000 developed by the international standards organization. Moreover, the organization developed its supplier’s code of ethics. The code outlines the organizations ethical and technical requirements through which suppliers must conform to prior to entering into supply partnerships (“Billabong”, 2014). The adoption of these approaches enhances the organizational ethics as well as production sustainability through a regulation of its third party stakeholder’s regulation, significantly reducing the supply chain. Therefore, this CSR approach increases the organizational production and distribution competitiveness and market reputation over competitors. 2.4 Benefits of Working in the Organization Working as a human resource in Billabong Company, through mandated with huge organizational responsibilities, has its share of merits and benefits. In this case, the benefits cut across the divide on both the managers and employees. On one hand, the organizational managers benefit on two fronts. On one hand, they earned increased remunerations based on their added managerial functions and responsibilities. As Ghahroudi (2011) argued, financial rewards serve as a key motivational factor among the labour force. Therefore, the organizational management stands motivated with its attractive remuneration packages. Second, the managers receive managerial training programs sponsored and facilitated by the organization. Under these programs the managers are equipped with leadership and managerial skills for increased performance efficiency. Although the performance benefits the organization in facilitating increased management efficiency, the managers’ benefits through career development. The trainings and workshops serve as career developers, thus increasing their professional status profile in the industry. On the other hand, the organizational employees similarly benefit. Besides the high remuneration and financial rewards, the employees experience and skills are significantly increased. Through working in the organization and its multinational corporations and partners, the employees interact with diverse labour cultures. As such, their perception is changing allowing for diversity in their decision making processes. Ajmal (2009) argued on the merits of employee cultural interactions. The authors argued that each labour culture has its perception in decision making and thus an integration of these perspectives increases individual decision making. Therefore, the organizational employees’ decision making process and quality increase. Moreover, the organization offers its employees training opportunities. As such, the management offers working offs for employees furthering their academic goals as well as providing internal employee training programs to acquit the employees on current industry and professional affairs in the market. 2.5 Attributes in Applicants The Billabong Company has over the years developed an organizational reputation that forms part of its strategic objectives. In this regard, the organization develops systems and structures that seek to retain and support the reputation gains acquired over the decades. On such reputation retention approaches is in its workforce recruitment. Retna and Ng (2006) conducted a study evaluating the role of labour and employees in an organization. As such, the study established that employees serve as the key organizational objectives and goal drivers, thus making them an indispensable organizational resource. In recognition of these facts, Billabong Company has set its recruitment standards high in order to ensure the acquisition of an appropriate workforce. On one hand, in order to qualify for recruitment, an employee must demonstrate both qualification and skills in the proposed vacancies job descriptions. In this regard, the insistence on professional qualification and skills seeks to raise and retain the existing organizational quality production process efficiencies. In addition, employees should posses’ high ethical standards and performance records. In this regard, the organization has over the years established ethical business practices and the subsequent consumer base trust as key on its competitive traits (“Billabong Biz”, 2014). As such, prospective employees should demonstrate performance ethics as a guarantee of their capability and willingness to retain the ethical business culture in the corporation. Further, prospective employees must demonstrate impartiality and ability to interact with individuals from diverse cultures and backgrounds. With its multinational status, the organization requires employees with capabilities to interact with peers and customers from across cultures, as a functionality to increase the overall organizational gains in cultural integration and internationalization strategies. References Ajmal, M. M. (2009). Managing knowledge in project-based organizations: A cultural perspective. Vaasa: Universitas Wasaensis. Akhter, W. (2010). Risk management in takaful. Enterprise Risk Management, 2(1), 128-144. Annacchino, M. A. (2007). The pursuit of new product development: The business development process. Amsterdam: Butterworth-Heinemann. Billabong Biz (2014). Behind the Brand - Investors - Social. Retrieved from Billabong Company, (2014) Why adopt a Standard. Author. Retrieved from < Bower, A. B., & Grau, S. L. (2009). Explicit Donations and Inferred Endorsements. Journal of Advertising, 38(3), 113-126. Brunner, T. A., & Siegrist, M. (2011). A consumer-oriented segmentation study in the swiss wine market. British Food Journal, 113(3), 353-373. Dale, G. (2005). BTEC national travel & tourism. Oxford: Heinemann. Dettmer, H. W., & Dettmer, H. W. (2007). The logical thinking process: A systems approach to complex problem solving. Milwaukee, Wis: ASQ Quality Press. English, B., & Pomazan, L. (2010). Australian fashion unstitched: The last 60 years. Port Melbourne, Vic: Cambridge University Press. Ghahroudi, M. R. (2011). Ownership advantages and firm factors influencing performance of foreign affiliates in japan. International Journal of Business and Management, 6(11), 119-137. Lafrenz, C., (2012). Billabong CEO stands by turnaround strategy, Financial Review. Retrieved from Melewar, T. C., Hayday, D., Gupta, S., & Cohen, G. (2008). EU enlargement: A case study of branding standardisation. EuroMed Journal of Business, 3(2), 179-201. Plunkett, Jack W., Balan, Andreea, Brison, Brandon, Jordan, Daniel P., & Kolber, Maria. (2008). Plunkett's Sports Industry Almanac 2009. Plunkett Research Ltd. Retna, K. S., & Ng, P. T. (2006). The challenges of adopting the learning organisation philosophy in a Singapore school. The International Journal of Educational Management, 20(2), 140-152. Read More