Billabong International Ltd.

Describe about the Report for Marketing Management of Social Enterprises.

Sunfarmer is a social enterprise, which works for reforming renewable energy such as solar. Sunfarmer exchanges monetary assets for its services such as designing the system, procurement, installation, monitoring and maintenance of the solar. This NGO avails the opportunity of e-bidding and tenders which are released for different impact and social projects. Once the tender becomes transferred, it charges a substantial percentage of commission as a loyalty fee. Also, while conducting surveys, both independent and government contact based, it charges certain amount of fee to give a 100% accurate data. Likewise, profit is also made via designing and service consultancy(NGO). Under marketing, they put up stalls in exhibitions such as Renewable Energy Exhibition Nepal, 2015 where they were the technical sponsor. Also, they are indulged in social service in under developed tier 3 and tier 4 parts of the world. In such organizations, marketing comes in the form of the service and their impact.

Billabong International Ltd. promotes clothes and accessories which is designed for surfing, skiing, and skateboarding (Reference for business, 2016). The Billabong website provides customers with the information regarding its shopping portal, blog, team, events, and social connection. Billabong targets their surf wares at young individuals wanting to reflect their personality and lifestyle in a sporty form. It taps into the customer’s passion for surfing and presents interesting, non product related information which attracts the customers. This good content strategy enables Billabong to transform itself from a website simply selling products to a refuge for customer who shall keep coming back. This adds bonus via having a viral effect, thus helping to build and grow relationship with its target customer.

Nestle recently launched its campaign “Super babies”, in support of the World Breastfeeding Week on August 1, 2016.  This campaign aims at providing information to parents and care providers about adequate nutrients and feeding habits in the initial 1000 days from the birth of a baby (Nestle, 2016).For a baby, breast milk provides the best nutrition. Nestle, in support of World Breast feeding week, provides welcoming breastfeeding environments to their employees too. This comprises of giving encouragement to breastfeed by having more than 200 breastfeeding rooms globally. Nestle, with Peter’s brand, launched their product “Milo” in the market. Milo’s brand name signifies chocolate flavored drinks. When Milo was launched initially, it was used as a supplement of nutrient as it consisted of ingredients which proved Vitamin B, calcium, protein and many more.

Nestle and the ‘Super Babies’ campaign

Nestlé’s campaign “Super Babies” aimed its target at the group of parents, especially mother and care providers who are regularly involved in breastfeeding. In response to this campaign, the company was able to reach 20 million people around the globe via the educational information. The numbers already reflect the success of this campaign. Also, by incorporating the paternity leave and taking it into a newer level by having breastfeeding rooms motivated the employees. It also attracted new human resources to become a part of the company. Nestlé’s product Milo, aimed at people based on their demographics of age and personality (Scribd, 2016). It targeted old and young people by having the nutrient filled product. Based on personality, Milo also targeted outdoorsy people who are involved in sports by tagging the product along with sport celebrities. Being able to tap into the real customer needs, and offering the product much superior to other similar products in the market, Nestlé’s launched product shall be a successful one. However, it shall face the threat from its competitors providing similar products.

Distribution of income is an element of inequalities in the society. For a company to estimate the distribution of income, it should follow the steps of understanding the society first. Households in the Northern Territory form the sample economic unit. Northern territory’s household income is one of the vital factors which reflect the socio-economic status of the people living there.  Likewise, in the North Island of New Zealand, the distribution of income is skewed.  New Zealand consists of the wealthiest 10% who owned 52% of the wealth, while the poorest 50% who owned simply 5% (Johson, 2016).  It is important to understand the demographics of the society, and how the various demographics factors affect the distribution of wealth as well.

The company can start the estimation via charting down the inequalities. For example: the company can illustrate the income distribution with a Pen’s parade approach, i.e. ranking people on the basis of their income or consumption (Worldbank, 2016). Also, the company can go through the annual census report presented which includes the dispersion of income both in household and corporate sectors. Numbers are always a good way of coming into a concrete result. Statistics provided by New Zealand could be a positive way of estimating the actual income distribution in the country. Using the formulas such as share of consumption of the poorest, this presents the total income consumption of the poorest as a share of total income in the population.  Overall, the company can go through the Gross Domestic Product and the Disposable income of the Northern Territory or/and the North Island, compare it with other parts of the country and estimate the distributed income.

Distribution of income and its impact

Globally, there are thousands of Fast Moving Consumer Good (FMCG) companies. Segmented approach includes identifying various segments in the market and dividing the broad target group into those segments. On the other hand, mass marketing is an attempt to attract the entire target group via one marketing strategy. The three FMCG which I would like to focus on includes: Amway, Procter and Gamble (P&G) and Unilever. FMCGs usually use the method of demographic segmentation as their marketing approach (Shodhganga, 2012). Amway, which stand for American Way, has segmented its products on four categories, namely Personal care, Home care, Nutrition and wellness, and cosmetics. Also, Procter and Gamble (P&G) has segmented its products into Beauty, grooming, health care, snacks and pet care, fabric care and home care, baby care and family home care segment. Unilever too has segmented its products into the categories of Soap and detergents, personal care, beverages, ice cream, foods and home care (Unilever). All these three FMCG companies indicate segmented approach rather than mass marketing.

On the basis of segmented approach, I would rank from top to bottom – Unilever, P&G and then Amway respectively. Recommendations on how they could segment their market further are:

a) Unilever: Unilever and P&G’s product are almost similar. Thus, if it could segment its products more geographically such as in areas like Africa and Asia. They could provide low cost products to meet up the demand of the population.

b) Procter & Gamble: Procter and Gamble (P&G) incorporates 100s of products into numerous segments. It becomes difficult to be measurable. Thus, if P&G could cut off few of its market segments, it shall be easier to run on low costs.

c) Amway: Amway has segmented its market more into premium and quality aspect. If it could provide products to the segment of middle-range income, yet maintaining the quality, the sales could be significantly better.

Worldwide changes in the demographic environment have major implications for international marketing. In present context, the geographical population is shifting more often. The environment is being equipped with people seeking for more value, i.e. right combination of good quality at a fair price. The demographics are being categorized into rich and the poor, the affluent and the less affluent. The new changes involve women’s entry in the market. The change is demographics brings along beneficial partnerships, such as new market are emerging as an opportunity for new marketers. The marketers can grab the opportunity to seek the demand of the women in the market. People are getting connected via social networking, thus international marketers can tap into this segment of demographics.

The baby boomers, born post the World War II; have been one of the most crucial forces in the market (Andre). With ageing baby boomers, there comes an advantage for several industries. This includes, Senior citizen food industry, where they can produce food which is easy to chew. For example, Gerber launched senior citizen easy to chew food. Likewise, cosmetic surgery industry, health products industry such as Unilever producing Proactive, Medicine sector is also benefitted. The tech industry can tap into this age group via developing simple and big, such as Raku Raku mobile in Japan. The shoes industry such as Steve Madden, who design comfortable shoes such as Mary Lue, doctor slippers etc for senior citizens are availing this benefit. There is an increasing opportunity to promote products to this demographic.

References

Andre, C. (n.d.). Demographic-economic-environments. Retrieved August 15, 2016, from Linkedin: https://www.linkedin.com/pulse/how-changes-demographic-economic-environments-affect-marketing-andre

Johson, A. (2016). Wealth and income trends NZ. Retrieved August 14, 2016, from Salvation Army: https://www.salvationarmy.org.nz/sites/default/files/uploads/20150211SPPUspeechAlanJohnsonRecent%20wealth%20and%20income%20trends%20in%20NZ.pdf

Nestle. (2016, August 1). Media News: Nestle . Retrieved August 14, 2016, from Nestle: https://www.nestle.com/media/news#itemPerPage=8

NGO. (n.d.). Retrieved August 15, 2016, from Sunfarmer: https://www.sunfarmernepal.org/ngo/

North island. (n.d.). Retrieved August 14, 2016, from New Zealand: https://www.newzealand.com/int/north-island/

Reference for business. (2016). History- Billabong International. Retrieved August 14, 2016, from Reference for business: https://www.referenceforbusiness.com/history2/89/Billabong-International-Ltd.html#ixzz4HJvAUwjc

Scribd. (2016). Marketing-Report-Nestle-Milo. Retrieved August 14, 2016, from Scribd: https://www.scribd.com/doc/26214574/Marketing-Report-Nestle-Milo

Shodhganga. (2012, December 12). Chapter 5: Shodhganga. Retrieved August 15, 2016, from Shodhganga: https://shodhganga.inflibnet.ac.in/bitstream/10603/16744/12/12_chapter5.pdf

Unilever. (n.d.). Brands: Unilever. Retrieved August 15, 2016, from Unilever: https://www.unilever.com/brands/

Worldbank. (2016). Library- Model 5 measuring Inequalities. Retrieved August 14, 2016, from World Bank: https://info.worldbank.org/etools/docs/library/93518/Hung_0603/Hu_0603/Module5MeasuringInequality.pdf