Essay: NGO’s Marketing Concept And Relationship With Customers By Billabong: A Comparative Study.

NGO’s Marketing Concept

The organization that is taken into consideration is Oxfam, Australia and they are liable to build up development projects, improve the life of disadvantaged people and respond to emergencies and campaigning. The marketing concepts that they use are fundraising and promotions and sell hand-made products that are made by poor people. According to the data of 2009, Oxfam Australia's work reached 4.64 million people and has their projects in 28 countries across the world (Shop.oxfam.org.au, 2017). The marketing concept of promoting their brands and initiatives for the poor indigenous people is also witnessed through their online shopping sites where people, can  buy hand made products and contribute monetary support for their betterment (Shop.oxfam.org.au, 2017).

Image: Online marketing of handmade jewelry

(Source: Shop.oxfam.org.au, 2017)

Oxfam also follow the marketing concept of enhancing the corporate social responsibility. Some of their handmade products are chocolates, tea ranges, drinking chocolate and handmade jewelry. The concerned organization also helps people in community like conducting community feasts, encouraging people to donate and facilitating dialogue (Shop.oxfam.org.au, 2017).

Image: Handmade products rages by indigenous poor people and food donation campaign in society

(Source: Shop.oxfam.org.au, 2017)

Thus, it can be said that Oxfam applied the marketing concepts as they take initiative for the betterment of the needful people of the community and also encourage their talent and selling their products to provide them identity. They have also expanded their services in other nation so that more people get aware of their business approaches.

The website of Billabong only comprises of their products rages and videos of the models, who wore their products while surfing and skating. This procedure does not allow the organization to develop interpersonal relationships with their customers. The prime reason for that is that the customers do not get information whether or not the public likes their products. () suggested that the concerned organization can initiate personal survey from their customer regarding their products and price ranges (Dickson, 2017). Moreover, after every online purchase, a survey form reading the website and suggestion for future experiment can also be adapted. The executives of Billabong should also broadcast the image of their customers and share their experience on using their products. They can also reward their best customers in terms of extra discounts, free offers or free samples with their purchase. In addition to that, the organization can also introduce real time video chat for customer support so that people can rely on their brand and develop loyalty towards them.

Nestle have launched new product “KITKAT CHOCOLATORY”, where the concerned organization formulate new chocolate ranges in collaboration with Aussie designer Georgia Perry (Nestle, 2017). The two Melbourne-based pop culture icons combined to formulate elite chocolate varieties that are available exclusively at KITKAT CHOCOLATORY in Melbourne Cen-tral (Nestle, 201). The target market of Nestle is especially the children and older people, who have sweet tooth and like chocolates. Children will be more attracted from the new ranges due to bright color and fancy decoration; while, elder people can take experience the taste of a professional made chocolate that is made of exotic items  and dry fruits.

Relationship with Customers by Billabong

Image: New chocolate ranges of KITKAT CHOCOLATORY

(Source: Nestle, 201)

On the other hand, Peter’s Brand is an organization known for their premium beer. Peter’s Brand only targets elder people, who prefer beer.  However, due to its mild taste, most people do not prefer this brand. The average rating of their beer products is 2.5 out of 5 because of their orange golden color, which resembles the look of ginger ale with a small bubbly head (Loy & Glauben, 2015). The glass lacing is also sticky that most of the people do not like. In addition to that, the aroma of the beer is almost like sweet corn and black licorice. People also do not like the taste is watery, grainy, some grass and slightly metallic. Thus, their market segmentation is correct; whereas, the products quality disappointed the customers.

If an organization is interested in distributing the income of the Northern Territory they first have to identify the actual wealth distribution of the respective state. Fagereng et al. (2016) stated that the average Australian Household net worth and income have to be evaluated and then the company can decide whether or not they invest in their nation for better profitability. The company can approach to the Northern Territory’s government for gathering the news about inequality and poverty over time for the nation. The organization can also estimate the wealth distribution parametrically as it facilitates subsequent inferences regarding poverty and inequality (). The organization can also use Gini Coefficient for the Northern Territory and New Zealand’s North Island to find out the income of all the people of the mentioned states and then carry out the cumulative percentage of people against the cumulative share of income earned (Fagereng et al., 2016.). The curve thus formed is known as Lorenz Curve and it ranges between 0 to 1. The formulate of Gini coefficient is = A/A+B. In such cases, if A=0, “Line of Equality” is achieved and when A represents a very large area, it represents very uneven distribution of income (Stockhammer & Wildauer, 2015).

Activity 4: Comparison of the Market Segmentation of Wesfarmers, Woolworths and Treasury Wine Estates

The three organizations that are selected in this activity are- Wesfarmers, Woolworths and Treasury Wine Estates.

Wesfarmers and Woolworths however offer a wide variety of products it can be said that they are following mass marketing rather than a segmented approach. Wesfarmers provide chemicals, manures, coal mining and industrial safety equipment along with they offer retails facility to their end-users. This organization have acquisitioned many other brands for enhance their product diversification business approach. Wesfarmers only have employee strength of around 205,000 and they got listed in the Australian Stock Exchange in 1984 (Wesfarmers.com.au, 2017). Their business approach is appropriate and they have a shareholder base of roughly 500,000 (Wesfarmers.com.au, 2017).

Woolworths on the other hand, has huge portion of share through Australia and New Zealand. They have huge products that they marketed to target all possible group in the community. The organization has products for infants to elderly people and they have attained profit every years and termed as biggest retailer on the planet in 2008 (Woolworths.com.au, 2017).  The market capital for this organization is $ 26.892 billion (Woolworths.com.au, 2017).

Success of the Marketing Concept of Nestle and Peter’s Brand

Lastly, the Treasury Wine Estates Limited own more than 9,000 hectares of vineyards and only use and source quality grapes to formulate premium range of wines (Treasury Wine Estates, 2017). The company caters to all segments of consumers by means of a magnificent route-to-market model. Thus, it can be said that this organization segments the entire customer base other than infants, younger millennial and extreme elderly people. The daily distribution of wine is 30 million cases, which have got the categorization of 70 brands (Treasury Wine Estates, 2017). The company employs more than 3500 people and the company is also actively involved in CSR programs like sustainable sourcing, community engagement and responsible consumption.

Woolworths and Wesfarmers can take initiative to implement the reverse integration business approach so that both the organization can increase their production line. This aproahc will allow them to reduce their production cost as a result their products can available in cheaper cost and more customers can be targeted. In case of Treasury Wine Estates Limited, the business personnel can focus more on the millennial and high income group people. In this way, they can target only high-end customers, who can pay more for their premium services.

Activity 5: Impact of worldwide demographics trends on opportunity for international marketing and benefit of the aging baby boomer

Czinkota and Ronkainen (2013) highlighted that a drastic demographic transition is witnessed due to the aging of the people, who are liable to carry out all the business operations and functionalities. Chand and Tung (2014) stated that there are three types of demographic trends- demand trends, supply trends, and external factors. Demand trends resembles a situation, where billions of new consumers surging up frequently. On the other hand, the scarcity of labor in the emerging markets can also be considered. Throughout many years there are many baby boomers in the global economy and thus, in order to maintain high customer base, every organization intends to be more efficient and productive. Moreover, Bonoli (2017) stated that the global geographic trends provides opportunity to the organization and international marketing.

Pieterse (2015) portrays that declination in birth rate also affects the opportunity in international business. Taken for instance, young childless couples have more money and time to spend in international hotels. Although in many countries birth rate reduces but the total number of population is still high like in Asian countries in India and China. Knight and Liesch (2016) on the other hand also stated that high population growth rate also illustrates increase in labor supply and the opposite is also true. Especially in western countries, labor shortages are witnessed that leads to rise in wages and encouraged the growth of intensive labor production methods. Some developing countries that are not affected by international marketing opportunities are still affected by the progress of the European Union and the economic changes. Industries like auto companies like Toyota, technology and communication industry such as Apple, sports industry, wears industry such as Nike, food company such as Cadbury and Nestle are benefiting more from these baby-boomers (Shaheen and Cohen, 2013).

Reference List 

Billabong Womens Australia | Billabong. (2017). Billabong. Retrieved 23 August 2017, from https://au.billabong.com/womens

Bonoli, G. (2017). Labour market and social protection reforms in international perspective: parallel or converging tracks?. Taylor & Francis.

Chand, M., & Tung, R. L. (2014). The aging of the world's population and its effects on global business. The Academy of Management Perspectives, 28(4), 409-429.

Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Cengage Learning.

Dickson, T. (2017). How to Brand and Market a Fashion Label: New lifestyle brand 48.

Fagereng, A., Guiso, L., Malacrino, D., & Pistaferri, L. (2016). Heterogeneity in returns to wealth and the measurement of wealth inequality. The American Economic Review, 106(5), 651-655.

Knight, G. A., & Liesch, P. W. (2016). Internationalization: From incremental to born global. Journal of World Business, 51(1), 93-102.

Loy, J. P., & Glauben, T. (2015). Spatial and Temporal Retail Pricing on the German Beer Market. Food Price Dynamics and Price Adjustment in the EU, 102.

Nestle. (2017). New Products, News Media.  https://www.nestle.com.au. Retrieved 23 August 2017, from https://www.nestle.com.au/media#itemPerPage=20

Pieterse, J. N. (2015). Globalization and culture: Global mélange. Rowman & Littlefield.

Shaheen, S. A., & Cohen, A. P. (2013). Carsharing and personal vehicle services: worldwide market developments and emerging trends. International Journal of Sustainable Transportation, 7(1), 5-34.

Shop.oxfam.org.au. (2017). Buy Best Lowest Price Womens Fashion Jewellery - Oxfam Shop. [online] Available at: https://shop.oxfam.org.au/fashion/jewellery [Accessed 23 Aug. 2017].

Stockhammer, E., & Wildauer, R. (2015). Debt-driven growth? Wealth, distribution and demand in OECD countries. Cambridge Journal of Economics, 40(6), 1609-1634.

Treasury Wine Estates. (2017). Tweglobal.com. Retrieved 23 August 2017, from https://www.tweglobal.com/

Wesfarmers.com.au. (2017). Home. Retrieved 23 August 2017, from https://www.wesfarmers.com.au/

Woolworths.com.au. (2017). Woolworths.com.au. Retrieved 23 August 2017, from https://www.woolworths.com.au/