Creating Customer Value Through Strategic Marketing Planning - Term Paper Example

Student Name Student ID No. Teacher Name Czesia (Chessa) Chwasta TeacherContact Czesia.Chwasta@holmesglen.edu.au T. 9564 2762 Course Name Advanced Diploma of Management; Advanced Diploma of Marketing; Advanced Diploma of Management (Human resources) Advanced Diploma of Management Course Code BSB60407; BSB60507; BSB60907 Unit Name Contribute to organisational development Unit Code BSBMGT615A Semester&Year Semester two, 2014 Time Allowed/Due Date Week 14 Assessment Type Report and presentation Description of an organisational development intervention based on a plan that you have made to implement that will meet an organisational need Value of Assessment 30% Assessment Conditions NA Special Requirements NA DECLARATION 1. I am aware that penalties exist for cheating, plagiarism (copying) and unauthorised collusion with other students, or external consultants. 2. I am aware of the requirements covering style and layout standards as designated by my teacher/tutor. 3. For assessments other than those conducted in-class, I have retained a copy. I understand that uncollected assessments will be destroyed. 4. This assessment was prepared using the Unit of Competency from www.training.gov.au with particular attention to; Required Skills, Required Knowledge, Evidence Guide/Critical Aspects. Student’s signature: Date: Question Assessment criteria Possible Marks Actual Marks 1. Introduction 10 2. Methodology 30 3. Report structure 10 4. Presentation 10 Total 60 marks converted to 30% The OD Plan for Billabong Company background Billabong International limited is an Australian based company licensed to distributed apparels and sportswear. It is also engaged in distribution and marketing as well as wholesale and retail dealership of surf and wetsuits. The company has heavy presence in 100 countries with over 11,000 outlets worldwide. It is well represented in Japan, Brazil, China and South Africa. The products are distributed through own branded retail outlets and specialized board sports retailers. Some of the common brands are Tigerlily, Nixon, RVCA brands, Palmers Surf, Dakine and Von Zipper (Ferrel & Hartline, 2012). The company is positioned has a market leader in surfing and sea sporting. The company is founded on a strong brand within the surfing community. Marketing strategies involve market leadership in girls under the Element brand and the line of shoes for technical skate footwear. The target market is premium board sports, eyewear, accessories and general action sports sectors. SMART statement In order to help Before Billabong stop losing money, it plans to open two retail outlets in China and India which are the new target markets by end of July 2014. Situation Analysis Billabong International basically engages in the distribution and marketing of sporting accessories. The clothing company specializes in skate board products, eye wear and wet suits. Though head-quartered in Australia, it has global business operations in regions such as Brazil, United States, Canada, South Africa, Europe and Japan (Frambach & Nijssen, 2001). Globally, it employs more than 6,000 people generating estimated revenue AUD$1.34 billion in the 2013 fiscal year alone. However, there was a 6.94 percent reduction in estimated revenue of AUD$1.44 billion in the previous year. In addition, during the 2013 fiscal year, the company recorded a net loss estimated at AUD$859.5 million. Figure 1: Unlocking value at Billabong Internal challenges Billabong has a challenge of bridging cross border acquisition and fusion of different cultures. The objectives of the business organisation are in growth and maturity of billabong characterized by its ability to provide outstanding products and services (Ferrel & Hartline, 2012). Weak corporate culture is depicted in the loose working relationship between business partners and employees in handling accessories, support, products and services. Broader product range is eating into the nerve of Billabong, since the large product range make it spend a lot of resources in the entire product range. Billabong may not do better job compared to other smaller competitors. Billabong’s retailers are the weak points given that it did a great job on online shop, but the new company is not standing out to be abreast with its website. Billabong’s not so exciting interiors and ergonomics does not delight the customers. Billabong also has a costly supply chain in which ways should be sought to reduce them. Overcoming the problem requires building up some new beneficial supply chain. External Challenge (SWOT Analysis) SWOT Analysis Strengths: Billabong is robust in size giving competitors a run for their money as they take to defensive mechanisms and pursuance of new markets. The strong brand name ‘Billabong’ has customers giving additional value which makes the company to charge higher product prices. The brand enjoys economies of scale due to size, since there are greater advantages with volumes. Weaknesses: Competitor leverage on product sales and information display shows a weak online opportunities coming with a price. Billabong is hurt by weak customer service which makes customers to flee to the competition hence damaging its reputation (Frambach & Nijssen, 2001). Opportunities: New Billabong product lines have necessitated business expansion and customer base diversity. Billabong is highly innovative enabling the company to produce unique products and meet customer expectations. Customer reach with reduced marketing costs ensures that online marketing facilitates business expansion. China as a new market has facilitated diversity of products and services as well as business expansion (Gilligan & Wilson, 2012). Threats: International competitors pose a great challenge as they have more competitive advantages and attractive products. The business is hurt by collapsing economy and customer numbers. Changing customer tastes makes it difficult the most suitable product. Switching costs are very low making it easier for customers to opt for the competition. Intervention brief Billabong web site shows that it has ceded a sizeable share of its market to its retailers. This is attributed to the high cost of the suppliers, retailers and broad large product range. The dwindling global economy subjects the financial costs up as it lowers its revenues since many customers have reduced incomes. To edge out competitors and stand out, the company needs to shove those redundant products not beneficial to the company. Some of the suppliers and retailers should be eliminated to reduce liability to the company benefit but keep some of them which bring future benefits to Billabong. Figure 2: Diagnosing Billabong turnaround strategy Billabong to overcome this hard time can spend its limited resources in critical areas and functions like marketing and product development to keep the company running. A new spring for the Billabong will come with the improvement in the global economy. China will be a good country for a new target market given the population numbers and its strong board sports culture. The people are dynamic and experiencing a huge change in attitudes and lifestyles. Objectives To develop by 50% the level of brand awareness of sea sportsmen and women in Australia and around the world within the next two years To help people create interest in the brand among investors to take interest in the Billabong brand To improve the market share of Billabong from 5% to 10% within the next two years To grow the investment portfolio and savings within the next two by 15% To make Billabong brand number one brand among surfers in the world Deliverables Billabong makes stocks surf wears and distributes; Boys swim suits and gents Girls and ladies Caps and Belts Casual wear for both ladies and gents Wallets and boarder stashes Back packs, thongs and key rings Socks, vests, pencil cases and singlets Towels and laptop satchel bag and watches Water bottles, waist bags and sandals Constraints The limiting constraints of Billabong are both external and internal. This organisation’s constraints limit its ability to achieve its set organisational objectives and reach the organisation’s maximum potential. The External Constraints Changes not anticipated in the macroeconomic environment Reduced board sports account base given the structural change within Billabong Impacts of FX transaction Product change within competitor research and development lines The Internal Constraints Global expansion strategy going ahead of organizational strategies Diminished own brand performance Retail implementation Supply chain cost and responsiveness Low employee morale Assumptions of Billabong Presence of new investors to help revive the company and expansion of new territories or countries are important. Better management system and decision support systems. Greater increase in market share and increased sales, leadership in the brand portfolio in board sport. Finally, building stronger brand loyalty among their customers Exclusions Billabong plan will have some exclusion found such as weak financial state, poor internal décor and store representation. Outcomes Upon making these strategic changes, Billabong is expected to be stronger, competitive and attain greater market share in the sports wear market. Be faster than its competitors will be the reason why Billabong doing this to become more successful. China being one strong and emergent market should be built to cushion the company and business from the global economic crisis. Glossary of terms SMART statement SMART statement is a goal that the company going to arrive in a short or long time. It made by the following part. Specific: Clearly define what you are going to do, where goals are simplistically written. Measurable: Usually, the entire goal statement is a measure for the project, but there are usually several short-term or smaller measurements built into the goal. Goals should be measurable so that you have tangible evidence that you have accomplished the goal. Achievable: The study should possess the appropriate knowledge, skills, and abilities needed to achieve the goal. Goals should be achievable; they should stretch you slightly so you feel challenged, but defined well enough so that you can achieve them. Results-focused: Goals not activities should measure outcomes. Time-bound: Without such tension, the goal is unlikely to produce a relevant outcome. Goals should be linked to a timeframe that creates a practical sense of urgency, or results in tension between the current reality and the vision of the goal. Research Billabong will undertake its market research by using mystery shoppers within a span of one week and help collect feedback from customers. This will ensure that data collected will be of great significance to Billabong. The problem of poor organizational orientation will be highlighted by customer concerns. Bibliography Drummond, G., Ensor, J. & Ashford, R. (2010). Strategic Marketing. Routledge. Ferrel, O.C. & Hartline, M. (2012). Marketing Strategy. Cengage Learning. Frambach, R.T. & Nijssen, E.J. (2001). Creating Customer Value Through Strategic Marketing Planning: A Management Approach. Springer Science & Business Media. Gilligan, C. & Wilson, R.M. (2012). Strategic Marketing Planning. Routledge. http://markets.ft.com/research/Markets/Tearsheets/Forecasts?s=BBG:ASX http://www.fashionunited.com/executive/management/fewer-bigger-better-businesses-for-billabong-20131112493862 http://financials.morningstar.com/competitors/industry-peer.action?t=BLLAF®ion=usa&culture=en-US http://connection.ebscohost.com/c/articles/75073653/billabong-international-ltd-swot-analysis McDonald, M. (2007). Malcolm McDonald on Marketing Planning: Understanding Marketing Plans and Strategy. Kogan Page Publishers. Read More