Answer To: Task back to top This assessment requires you to develop the remaining sections of a comprehensive...
Akansha answered on Sep 30 2020
Marketing Mix
Marketing Mix
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Executive Summary
A marketing mix is a set of controlled tactical marketing tools that companies use to generate the desired response from a target market. It contains everything the company can do to influence the needs of its products. It is also a tool to help with marketing planning and execution. The given report intends to help a company called Billabong to develop an international marketing plan. It is divided into a number of key components those are the proposed framework for the plan. This report follows a prescribed format of writing an international marketing plan. Each section identifies number of key issues that can be addressed when developing such a plan. Not all issues are related to each company's case. In addition, other issues not covered in this guide may appear. This report is used to document new market entry or expansion of existing markets. A key assumption is to consider only one new national market at a time. This report is relevant to marketers of products and services. However, for the sake of simplicity, the term "product" is always used. The program is primarily intended to benefit the company's managers and existing or potential owners of the business. This is a report prepared at a point in time that describes a set of clear and concise activities that will achieve specific international marketing objectives based on the marketing strategy chosen.
Contents
1. Introduction 5
2. Assignments 1 8
2.1. Introduction 8
2.1.1. Global & International Marketing 8
2. Billabong Entering to Indian Market 8
3. Situation Analysis 9
3.1. Situation Analysis 9
3.1.1. Business Environment 9
3.2 Market Analysis 11
3.3. Competitors 13
3.4. Organisational Analysis 14
3.5. SWOT Analysis of Billabong 16
4. Assignment 2 (Market entry strategy, target market, customer analysis, positioning) 18
4.1. Introduction 18
4.2. Part 1 19
4.2.1. Market Entry Strategies 19
4.2.2. Preferred option 21
4.3 Part 2 22
4.3.1. Segmentation, Marketing, and Positioning Strategies 22
Market Segmentation 22
Targeting 24
Positioning 25
5. Assignment 3 (Marketing mix - products, price, distribution, promotion and so on) 30
5.1. Marketing Mix 30
5.2. Standardization versus adaptation of product 34
5.3. Standardization versus adaptation of price 34
5.4. Standardization versus adaptation of place (distribution) 35
5.5. Standardization versus adaptation of promotion 35
5.6. Managing, Measuring and Controlling 36
6. References 41
Introduction
Today, doing business is becoming more and more global. The companies are looking for expanding their market nationally and internationally. Improved factors like communication, better business models, innovation and technology acts as an opportunity for the companies to find the best suited market for their products and services outside the boundaries of their domestic market. Along with it, these factors allow the organizations to shortlist the best market entry option by analyzing the targeted market. Different markets have different benefits to offer. Like some have lower labour cost, some offer lower taxation rates, or some provide easy entry mode. Company planning to expand in the new market should analyse the related factors through a practical international marketing plan to distribute products globally (Buckley, 2002).
Billabong is an Australian clothing company focused on the production of clothing-related products and accessories. Billabong's current position in the industry indicates that it is in the growing stage, which means that the company has great opportunities in both domestic and international markets. Billabong International Limited (Billabong) is a retail company that operates through a network of stores and websites. It is responsible for the marketing, distribution, wholesale and retail of products, including clothing, accessories and sporting goods. Its product portfolio includes clothing, eyewear, accessories, wetsuits and hard goods. The company's core strengths and weaknesses, as well as areas of development or decline, are objectively analyzed and introduced. Recent developments in the companies covered in this profile help to track important events (Dominic, 2009).
International marketing includes marketing strategies adopted by experienced marketers in diverse countries to these national markets. The global marketing is a concept that includes marketing efforts or steps for a unique global market. In global marketing, the company provides accurate products or services to customers in different countries in which it operates. However, in international marketing, every individual market is equipped with specific customized products that are particularly suitable for customers in this market. Billabong International Limited is a surfing company that specializes in clothing retailers and also produces accessories such as watches and backpacks, as well as other brands of skateboarding and snowboarding products. Billabong International Limited (Billabong) is a retail company that operates through a network of stores and websites. It is responsible for the marketing, distribution, wholesale and retail of products, including clothing, accessories and sporting goods. Its product portfolio includes clothing, eyewear, accessories, wetsuits and hard goods. Billabong offers products under multiple brands including Billabong, Element, Surf Dive, Rush, Amazon, Honolua, Quiet Flight and Two Seasons. The company sells its products through direct stores and franchise stores around the world. Geographically, it operates through its subsidiaries and affiliates in Europe, North America, Asia Pacific and other regions. Billabong is headquartered in Burleigh Heads, Australia.
India has experienced an exciting time. To develop into an open market economy, India is definitely on a high development track, with an average annual close to 7% from 1997 to 2016. It is expected that a 7.2% increase in GDP in 2017-2018 will make India the speediest growing economy in world Dominic, 2009). In addition, India's economy exceeded the trillion-dollar mark in 2007 and is expected to turn into a $5 trillion economy by year 2025, presently ranked third (PPP) after the United States and China. India is undoubtedly the "country of opportunity. "Billabong may have many opportunities to expand its presence in India and take advantage of opportunities in apparel products and services (Atighechian, Maleki, Aryankhesal & Jahangiri, 2016). A scenario examination of Billabong has been accomplished to determine the Billabong’s situation in the Australia and its growth in Indian market expansion. SWOT analysis is also conducted for Billabong to expand in the Indian market.
International marketing and global marketing both terms are not the same thing, even many marketers treat international and global marketing in a same way. Global marketing sees the entire world as a whole and creates the products that fit into any regional market in just a few weeks. International marketing means that all the marketing decisions made in various countries, and employees know the nearly all about the targeted market. Global marketing is much more than selling products globally (Balasubramanian &Makadok, 2018). Instead, it also includes complete process of planning, producing, or placing, as well as marketing a company's services or products in a global marketplace. Large firms usually have offices in all the countries they sell abroad; however, with the Internet expansion, even small firms can reach to their customers around the world. On the other hand, International marketing applies marketing principles to several countries. However, it is often expressed as a cross connection between international marketing and global marketing, which is a similar term.
Assignments 1
2.1. Introduction
2.1.1. Global & International Marketing
International marketing and global marketing both terms are not the same thing, even many marketers treat international and global marketing in a same way. Global marketing sees the entire world as a whole and creates the products that fit into any regional market in just a few weeks. International marketing means that all the marketing decisions made in various countries, and employees know the nearly all about the targeted market. Global marketing is much more than selling products globally (Balasubramanian &Makadok, 2018). Instead, it also includes complete process of planning, producing, or placing, as well as marketing a company's services or products in a global marketplace. Large firms usually have offices in all the countries they sell abroad; however with the Internet expansion, even small firms can reach to their customers around the world. On the other hand, International marketing applies marketing principles to several countries. However, it is often expressed as a cross connection between international marketing and global marketing, which is a similar term.
2. Billabong Entering to Indian Market
Billabong International is a retailing organization that operates number of stores or from online websites. Billabong is also responsible for the marketing, wholesale, distribution, and retailing of products, such as clothing, sporting goods and accessories. Their product portfolio simply includes sporting accessories, eyewear, clothing, hard goods and wetsuits. It offers products under several brands including Billabong, Element, Rush, Amazon, Surf Dive, Honolua, Two Seasons and Quiet Flight (Tay, 2018). They also sell its products and services through franchise stores and direct stores globally. Geographically, Billabong operates through their subsidiaries moreover affiliates in the Asia Pacific, North America, Europe, and some other areas. Billabong Company head office is located in Australia. Considering the steady and continuous growth in clothing industry and huge population, Billabong Limited has considered international expansion to Indian market as a best way to expand its business internationally (Tay, 2018).
3. Situation Analysis
3.1. Situation Analysis
3.1.1. Business Environment
PESTLE Analysis of the Indian Market
Political
Indian political environment is extremely determined by various factors for example government policies and political stability, the ideology of the political parties, the interests of politicians, along with the influence of political forums. Therefore, multiple political factors will affect the business environment of India (Braouezec, 2012). They include taxes that are fully developed due to their three-tiered government structure: alliances, state rural and urban institutions. The federal government level income taxes, consumption taxes, customs duties and service taxes and sales taxes. Billabong will easily enter in the Indian clothing market after considering political attitudes properly.
Economic
According to International Economic Fund's report of 2017 on economic forecast, GDP of India is 2.4 trillion US dollars, making India 7th largest country in the whole world's nominal GDP. Gross domestic product will grow almost 7.0% in FY 2018 and is also expected to grow to 7.5% by FY 2020 (World Bank Group, 2018). India's current corporate taxation rate is 30%. It is also worth noting that Indian corporate tax rates change frequently from last few years. Tax rate in 2012 was almost 33.88%, and in 2001 it reached the highest level of 38.95% (Trading Economics, 2018). India's steady growth in GDP will benefit the business expansion of Billabong Limited in India.
Social
Social factors such as trend changes have a profound impact on the entire business environment such as; the aging population of India led to an increase in the cost of pensions for enterprises and an increase in the number of recruits for older workers (Choi, 2018). The changes in the Indian population and their awareness towards sports and improved lifestyle will also help Billabong to transform their sporting goods and surfing products as well as accessories in Indian market.
Technological
Technology significantly impacts the development of the product and also introduces the new cost decrease processes. India being a developing country has a better acceptance level of new technologies. India is already offering virtual-speed internet services and aiming to improve further (Dingus, 2014). Additionally, India has world's most strong IT departments, promoting ongoing IT development and software upgrade. Billabong will easily produce and distribute their sporting goods based on existing advanced technologies in India, with minimum challenges related to logistics.
Legal
With the aim of attracting more foreign investment, a lot of flexibility is added in the laws and regulations for the companies approaching for investment in India. This has made India as one of the famous destinations for almost all foreign direct investments. Based on the business needs and scope, foreign investors have the opportunity to easily and smoothly set up companies, branches and limited liability partnerships in India. Most of the firms in India are completely governed by the “Company Law” of 2013 (Ferdinand, 2013). Billabong can easily find a suitable process to enter in the Indian market following the laws of the country and gaining the targeted market.
Environmental
India, is a destination that can offer different environment as per the company’s need. Whether it is climate wise or location based (HOWELL, 2011). With increasing awareness related to sustainability, following sustainable approach is very important to find success in the Indian market. Therefore, it is beneficial for Billabong to do business in Indian market after considering the environmental and sustainability aspects of India.
3.2 Market Analysis
a. Customer Segment
Most of the customers of Indian clothing industry are affected by the value-for-money ratio. If brand is relatively new, most of the customers of India clothing industry are more and more attracted towards the brands that offer value for their money products. It is understood that there are 500 million Indians using the Internet for making the purchases (Statista, 2018). Billabong’s Surfing apparel targets the young customers, and in India, maximum online users belongs to the young age category which promises a wide opportunity (Statista, 2018).
b. Type of Market
The open market access policy and large customer base makes Indian market highly competitive. Exclusive products can be monopolized in the Indian market in a very short time. This has been identified by the local organizations of India and they are rapidly learning, and developing similar services and products, thereby reducing competitive advantage of developing the monopoly (Owler, 2018).
c. Profitability
Indian market is highly diverse based on the geographic characteristics as well as the customer's economic group; these customers constitute a smaller, regionally based market circle. A company that is popular in one part of India may not be as popular in other sectors as other companies may be selling the similar product and attaining the market segment (Huang, Dyerson, Wu &Harindranath, 2015).
d. Market Size
With the second highest population in the world, India acts as a huge market for most of the products and services. The country is enjoying the growth of middle-income segment which provides the population disposable income. This allows them to spend more. The expected retail clothing market in India is near INR 20,000 crore. The flexible FDI policies allows the entry in the Indian market easy making it a favourable place to market the clothes. Though, Indian apparel and retail clothing industry has a good hold on the Indian market which increases the challenge for the company to achieve the targeted segment in the Indian market (Keshavamurthy, 2016).
e. Growth
Indian economy is one of the fastest growing economies in the whole world and is also experiencing a major shift in consumer preferences. Enhanced disposable income, increase brand awareness and increase in technology efficiency in the millennium population are the driving factors for the corporate retailer of the country. Overall, India's retailing format shows durable long-term development and growth compared to all other developing economies. Indian textile industry is also the largest contributor to the retail industry after the grocery industry. Entry of the international brands from non-brand brand preferences and rapidly growing economy, large population of the country's young consumers has made India an attractive market (Moro Visconti, 2014). India has the world's largest young population, and India is becoming fashionable due to the entry of the mass media and social media. It opens an unprecedented retail market opportunity. The promising growth rate of 9.7% has made the Indian clothing industry a major player in the retail industry (Pargaonkar, 2016).
f. GDP
GDP refers to total market value of each and every good as well as services produced in the country every year. In 2017, real GDP growth rate of India was approximately 5.98% compared to 2016 (Owler, 2018).
3.3. Competitors
a. Two key competitors
The two most competitive opponents in market for Billabong, are Volcom and Quiksilver. The two companies are based in India on a healthy business and are based on Reliance. These two companies account for almost 8% of entire market (Partridge, 2011).
b. Data related to competition
Volcom and Quiksilver are having a full impact on Indian apparel market because both the companies tend to improve as well as expand fabrics, accessories and sportswear based on surfing culture (Tay et al., 2018). Quiksilver has signed a relationship with Reliance and is expected to open six retail stores. In Indian clothing market, both organizations are doing the right business, even though earnings are still at a low level.
c. Competition level
Since India is emerging nation, the trend of purchasing quality products is still rising, but it has not yet reached the saturation level. So, it can be projected that brands for example, Volcom and Quiksilver will gain more profits over time. The current status of Volcom and Quiksilver in India displays that by rating products from INR 2000 to 3,000, these companies are capable to fascinate very limited customer types from apparel industry (Tay et al., 2018).
3.4. Organisational Analysis
a. Billabong Products
Billabong International Limited is a company which specializes in the retail clothing as well as also makes accessories, for example, backpacks and watches along with other brands of snowboarding and skateboarding products.
b. Domestic Market of Billabong
Billabong is one of Australia's smaller multinational companies, operating on four continents and was established as a private company in 1973 - an era in which the US still dominates the world market, and Australian manufacturing companies were just beginning to become more export-oriented. In 2000, it was listed on the Australian Stock Exchange and became a listed company of shareholders. The globalization process has enabled Billabong to now distribute their products in more than 60 nations around the world and access many other businesses by diversifying the products and services they are able to offer (Balasubramanian &Makadok, 2018). Looking at the reasons for Billabong's globalization and the way companies are managed, Billabong...