Introduction
The marketing mix is the theoretical basis on which all promotion methods are built. The two most basic tasks of the marketing mix are to increase the perceived value of the product in order to provide the company with a long-term perspective and profit (Keller & Brexendorf, 2017). The strategy allows you to create a product that meets the needs of customers at an adequate cost but at the same time with financial benefits for the business. Billabong is an Australian clothing brand that utilizes marketing mix techniques to function successfully in the market (“About us,” n. d.). This part will review how Billabong implements this strategy to increase its market share.
Product Strategy
The company sells items divided into five broad categories, which is quite uncomfortable as it can be pretty challenging to find a specific item in an online store. What is more, the manufacturer has a wide range of clothes starting from swimming suits to hats offering a unique opportunity of choosing the perfect size, color, and style. Additionally, the products are considered high-quality; hence, the customers are ready to pay more for the quality (“About us,” n. d.). Indeed, the average price for a swimming suit varies from $40 to $100 (Russell et al., 2021). Billabong mainly targets people who lead an active lifestyle; thus, it aims to create clothes, shoes, and outdoor equipment for a reasonable price.
Price Strategy
Primarily, to effectively operate in the industry and have a competitive advantage, a company should develop an elaborate pricing strategy. The chosen company has had ups and downs due to the insufficiently developed pricing orientation, yet, in recent decades, it has managed to sustain stability (“The rise and fall of Billabong,” 2021). The current pricing strategy follows a simple rule – to set the prices at the competitors’ level so as to stay viable in the market. It is easy to obtain necessary data on Billabong’s rivals and compare the prices. In addition, the manufacturer uses bundle pricing, which means it sells several items in a single pack at a lower price. Yet Billabong does not offer many discounts making it less appealing to the customer. Billabong also has a fixed price on its goods, making them available to retail or other buyers who can add up to the current price. Finally, the brand sends goods online, and charges for delivery which is a regular practice for such businesses since the expenses on logistics are quite high.
Distribution Strategy
Billabong uses two channels for distributing its items: wholesalers and a website. The company prefers selling its clothing, shoes, and outdoor equipment through wholesalers because it helps them get more profit. Only throughout the U.S., the manufacturer owns more than 500 retailers (Russell et al., 2021). What is more, it offers customers an opportunity to purchase goods online and get everything delivered to one’s doorstep. An omnichannel distribution allows Billabong to operate efficiently both in stores and online (Keller & Brexendorf, 2017). Moreover, due to the well-developed system of online sales, the company faces traffic on its websites. Due to online sales popularity, Billabong has partnered with numerous delivery services to send parcels both to clients and retailers. Ultimately, the company owns more than 500 suppliers who provide raw materials (Russell et al., 2021). In general, the distribution strategy is effective in terms of productive operations between stores, websites, and logistics partners.
Promotion Strategy
Billabong utilized all traditional and modern methods of promoting its products, from advertising on TV to purchasing ads from Internet influencers. Such a wide variety of channels is beneficial since this approach helps reach large audiences. Even though advertisement on TV or radio is expensive, it remains effective. Meanwhile, social media do not require many investments yet demand expenses when it comes to collaborating with bloggers or other Internet personalia. Its main net channels are YouTube, Facebook, Twitter, and Instagram (Russell et al., 2021). Recently, a South African surfer Tanika Hoffman participated in Billabong’s marketing project aimed at popularizing surfing and an active lifestyle in general. Around the year, Billabong takes part in trade shows and exhibitions to promote its products and boost sales.
Organizational Allocation of Resources
Billabong invests in the development of corporate social responsibility (CSR) as it aims to establish itself as a sustainable brand. Hence, it makes contributions to social, educational, health, and sport-associated products aimed at the improvement of people’s lifestyles and environment (Russell et al., 2021). In addition, the company spends decent sums of money on promotion as social media influencers raise the prices of advertising. Finally, the manufacturer invests in the development of ecologically clean products to ensure the alignment with its mission and goals.
Conclusion
In summary, Billabong remains one of the major clothing manufacturers in the market due to its competitive advantages. Its primary benefit is the top-quality products; hence, the customers are ready to pay more to purchase the company’s items. Despite the fact that the pricing strategy does not let a manufacturer take the top position in the industry, it still allows for attracting new customers. Billabong has quite a productive distribution strategy incorporating in-store and online sales. Finally, its promotion is also efficient due to the comprehensive coverage of traditional and modern communication channels.
References
About us. (n. d.) Billabong. Web.
Keller, K. L., & Brexendorf, T. O. (2017). Measuring brand equity. Handbuch Markenführung.
Russell, S., Ens, E., & Rangers, N. Y. (2021). Now it’s not a billabong: Eco-cultural assessment of billabong condition in remote northern Australia. Marine and Freshwater Research, 72(7), 925-941. Web.
The rise and fall of Billabong. (2021). Startup Sapience. Web.