Billabong Case Study report

Submitted by-
Aviral Agarwal (BBA-AI)
Madhav (BBA-AI)
Aastha Ganjoo (BBA-AI)
Devansh Shrivastav (BBA-IBAI)
CM Vishal (BBA-IBAI)
 Billabong History: The Birth and Bloom Of The
Surf Brand
• Billabong is an Australian company that was created in 1973 by Gordon Merchant. The company started in Gold
Coast, Australia. Merchant was known to design and produce homemade board shorts and sell them to nearby surf
stores. His shorts had a unique technique known as the triple-stitching technique that was very durable for his
customers. This technique was his sales pitch, and with time, surfers preferred his shorts to other shorts in the stores. 

• Due to the increased demand for his shorts, he realized that he needed to establish the company more significantly. He
knew that he would satisfy more customers with the brand being bigger. In an expansion bid, he used the company to
fund events. This funding strategy created significance in Billabong history. It helped him gain publicity and
prominence. As time went on, Billabong surf shorts filled Australia in the 80s.

• Billabong began to export its products towards the end of the 80s. It exported its board shorts to other continents,
including Africa, Asia, and Oceania. In the following decade, the surf industry saw a significant level of growth, and
Billabong was a significant contributor.
 The Brands Marketing Strategies

• Product Strategy From the beginning of Billabong’s journey, the brand displayed uniqueness that no other

brand could beat. It satisfied its customers by producing valuable items with stable features irrespective of its

users’ unfavorable conditions. The product strategy is one of the most significant aspects of Billabong’s

marketing strategy and is very notable in Billabong’s history. As expected, it has maintained a high sales

record because its customers were willing to exchange money for its products’ value.

• Promotion Strategy In Billabong history, records have it that the brand-sponsored events during its prime

time. Since then, it has used this strategy to boost its products and image. The company has a user-friendly

website for displaying its products. It also gets features on magazines, handouts, and local outlet promotions.
• Price Strategy Billabong’s pricing strategy is based on competition. This strategy works
such that Billabong places its product’s prices at a range the same as its competitors, despite
their high quality. The essence is to make sure that the customers in the industry do not go for
the less expensive products.

• Place Strategy Billabong’s products are everywhere in the market; cheers to its place
strategy. The surf brand has outlets in several countries. It employs wholesale marketing to
ensure that retailers receive its products. The brand has been able to study the market systems
of its store locations, making sure that it aligns with the market language of every place it
finds itself.
 Q1. Why does a fall in the value of the Australian
dollar against the US Dollar benefit BillaBong?

• Because the U.S. is such a big part of Billabong's foreign market, it's fortunes
are very closely connected to the value of both currencies against one another.
When the Australian dollar falls against the U.S. dollar, Billabong's products
become less expensive in U.S. dollars and therefore there are more sales.
 Q2. Could the rise in the value of the Australian
dollar that occurred in 2009 have been predicted?

• No they could not have because currency markets are difficult to predict and
sharp reversals occur. Although the Australian dollar was falling against the
U.S. dollar, the sharp turn in currency balance caused this rise in value in
Australian dollar in 2009. It could not have been predicted.
 Q3. What might Billabong had done in order to better
protect itself against the unanticipated rise in the value of
the Australian dollar that occurred in 2009.

• In order to better protect itself, Billabong should have found other foreign
markets to also be dependent on. It is so heavily impacted by the U.S.
currency, since 50% of its sales are from the U.S. This can be very risky since
a majority of sales are dependent on only the U.S. They should have been
invested in other foreign markets as well.
Q4. The Australian dollar continued to rise by another 20% against
the U.S. dollar in between 2010 and 2012. How would this have
affected Billabong? Is there anything that Billabong might have
done to limit its long-term economic exposure to changes in the
value of the currency in its largest export market?

• When the Australian dollar continues to rise against the U.S. dollar, this raises
prices of Billabong's products, and therefore affects sales negatively. In order
to limit the long-term economic exposure to these changes, it should continue
to search for other countries other than the U.S. to drive sales, so it is not
entirely dependent on the U.S.
Thank You…..