Meyerhoffer – A new surf board
Executive summary
Meyerhoffer is a new set of surfboards that have been developed by Global Surf industries (GSI). It
operates from Manly which is found in Northern Sydney Australia along its sandy beaches. Manly is also
the headquarters of GSI whose major business activity is the manufacture and distribution of water
surfing boards. It was founded in June the year 2002. Initially it operated as a cottage industry that dealt
with distribution of manufactured Surfboards to the international market of surfing. GSI currently has
sixteen different brands that are manufactured to fit the general needs of all its clients. All the surf boards
are designed to different surfers with particular needs and the level of surfing ability of specific
customers. The CEO of GIS is Mark Kelly from the town of Victoria in the USA and his co-founder is
Thomas Meyerhoffer, a Swedish designer based in the USA.
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- Introduction
A surfboard is basically an elongated surface or platform that’s used in the water sport of surfing. They
are very light but they are made from a very strong material that can support the weight of a human being
while standing on it and riding on a water wave out in the sea or ocean. They were discovered and
invented in the American resort city of Hawaii where they made from wood found near the beaches. They
measure about fifteen feet by one and half feet. ( 15 by 11/2)
Major advances have been made over the years and additional fins have been added on the back side of
the surfing board to improve its stability and its directional ability. A lot of other improvements have been
added including the use of polyuerethane also known as the polystyrene form that’s usually reinforced
with fiberglass, clothing or resin. These eventually results in a very strong surf board that’s very light
while it’s buoyant and maneuverable. The long boards currently have a size of eight (8) feet by two and
half (21/2) feet and they thicker and more stable.
The Meyerhoffer is probably the most radical in terms of its innovation and design in the history of long
boarding surfs. It incorporates major elements of both the short and the long boards and strikes a balance
that offers maximum performance. The invention of the meyerhoffer went through a lengthy process of
design and testing before the product was perfected for more speed, endurance, sudden turns and
toughness. It provides ease paddling and very high performance. - Environmental analysis
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An environmental analysis is an integral step towards understanding the local or international
external forces that may grossly affect your investment or business. Most of these factors are
beyond your direct control but you can adopt in the business strategic business plans to take
advantage of the existing opportunities and taking provisions to the likely threats likely to be
encountered. A PESTEL analysis is the best way to analyze the situation.
- Pestel
The PESTEL analysis denotes the words Political, Economical, Social, and technological, Environmental
and Legal. These factors cannot be controlled by any company but their effects and impact to any
organization cannot be ignored as such they have to be analyzed and evaluated to weigh their effects on
the company and its marketing strategies. Pestel analysis is crucial to the success of any product before
it’s launched in a new market or country. This enables a clear and realistic understanding about the
targeted market. Concepts that were applicable and were highly successful in certain markets may fail
totally in other markets and this may be because of the differences in PESTEL factors.
3.1 Political
For GSI Company and the marketing of the Meyerhoffer surfboards it’s necessary that the PESTEL
analysis be done for both the US and the Australia. Political factors include the host’s government’s
policies that may impact negatively on the ability of your business to trade freely. For instance restrictions
on exports to certain countries or imposition of certain unfavorable terms to certain imports. Politically
both the US and Australian countries are very stable and their democracies in the political domain serve
as world class examples of good governance. The US and Australia are very peacefully countries and are
ranked 99 and 16 respectively by the Global Peace Index. www.visionof humanity.org 2012
3.2 Economical
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Australia is one of the world’s largest economies sitting at number thirteen. It has a GDP of $1.4
trillion with an economic growth of 3.25% both in the year 2012 and 2013. Australia has a per
capita of $60000. These economic conditions make it a world class investing destination for any
multination corporation. www.export.gov/australia
The US on the other hand is the largest worldwide single economy. Its GDP was around $16.62 trillion in
the year 2012 with an income per capita of $51688 in the same year.(Department of commerce, 2013)
The economic trends in the US are very favorable for any kind of investment as the living
standards are very high and the consumer spending habits are favorable to GSI investment
opportunities. Other economic factors that may affect the business include the imposition of
taxes and duties as well as the existing fiscal decisions on interest rates and the exchange rate
volatility. This analysis will assist the business in financial planning and in its subsequent
strategic financial planning.
3.3 Social
The Australians and the Americans as per the GPI ( Global Peace Index) are relatively peaceful
and the social life is also favorable to investment opportunities. The major aspects that should
taken into account are the religious beliefs i.e. if there are religious fundamentalist or fanatics
and if their actions may interfere with your business, the lifestyle expectations, the basic
standards of housing and the population demographics for instance gender or ethnic
backgrounds.
3.4 Technology
Understanding the rate of technological changes could add a comparative advantage over the
existing competitors and they also may present opportunities that could be exploited. America
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leads in technological advancement and its rate of technological growth is higher than those in
Australia but substantially the average citizens in both countries enjoy relative similar facilities
which are available in both countries. Communication systems are evolving at a very fast rate
and they should be fully exploited to make the business more efficient both in its production
departments and its communication systems.
3.5 Legal
All business activities operate within the given frameworks of the host countries legal system.
These laws should be studied and any law that may adversely affect the nature of the potential
business should be quickly identified and addressed lawfully. These may include environmental
restrictions like the Californian Environmental Protection Agency that restricts the use of TDI
(Toluene diisocyante) a key material of making form which was largely used in making
Surfboards as from 5 th December the year 2005. These grossly affected the surfboard industry
for sometime before the alternative use of polystyrene was discovered however some companies
switched to countries with friendly policies. www.knowledge.essec.edu/points-of-view/the-surfboard-
industry . The companies’ acts in both the US and Australia protect and ensure fairness in all
trading activities and dispute resolutions. The court systems are functional and all their decisions
are respected and implemented fully.
3.6 Environment
All the economies worldwide are well aware of the environmental conditions and factors
surrounding all business operations. All business activities are regularly evaluated in relation to
set international standards in relation to the impact on global warming and the changing weather
conditions globally. These led to the growth of the green led initiative which calls for more
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actions to save the planet earth. The US and the Australian government are members of the UN
assembly whose Environmental departments ensure the protection of the environment.
Finally the PESTEL analysis also provides a very useful tool for establishing and determining
the overall opportunities and threats facing the organization. When an internal review of the
business strengths and weakness are also taken into consideration when analyzing the PESTLE
standards then a strong strategic plan may be developed.
- Consumer behaviour analysis
The sturdy of consumer behavior has been given a lot of prominence in the expansion of
marketing and marketing research in the recent years. (Kotler, Armstrong, Saunders and Wong,
2001; Jobber, 2004). The main reason for this interest in this particular subject is that markets
and firms are continuously growing in size and the proximity that existed between buyers and
sellers is no longer there. Advancement in technology has brought its own challenges where
sales are made over the internet, the social contacts between the sellers and buyers are
increasingly becoming more minimal and most of the rest sales even in developing countries
are done in supermarkets where there is little or no interaction between the employees of the
supermarket and the customers. (Foxall, 2002)
Despite the rapid improvement and growth in the sturdy and research of consumer behavior,
disagreement still exists on what exactly consumer research is, its objectives and its differences
from other fields (Simonson, Carmon, Dhar, Drolet, Now-lis, 2001) It therefore consequently lacks a
standard of universally – accepted theoretical guidelines or model (Foxall, 2005) Most consumer
choice models consider consumer behavior models as a way of thinking, analyzing, evaluating
and making decisions (Engel, Blackwell and Miniard, 1995) Emotions also play a role in buying
behavior. (O’Shaughnessy and O’Shaughnessy, 2002; Donovan and Rossiter, 1982) Majority
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of the studies and research work undertaken are designed to test, investigate and analyze the
consumer making processes as inspired by the cognitive processing theories. (Jacoby et al.,
1998) For instance, it’s widely believed that measuring attitudes and customers beliefs may
enable consumer behavior’s prediction. Theory of Reasoned Actions and the Planned behaviour
theory have been the basis of this concept which demonstrates the connection that exists
between attitudes, action and general beliefs. (Ajzen and Fishbein, 1980; Ajzen, 1985)
- Market Analysis
To analyze the exact number of surfers in any particular region is rather problematic. The
proportion of the number of beginners is always increasing and mastering the sport isn’t easy
and it needs a lot of supervision. Currently it’s estimated that out of ten surfs at least one is an
Australian i.e. about two million Australians while the US has over two million surfers.
(Hunt,1983). The experienced, professional and passionate surfers settle near suitable
beaches which are suited for practicing while another category of surfers buy the surf boards for
fashion and only practice occasionally. (Foxall, 1987) The surfing equipment for this two kinds of
surfers differ in that the professional and experienced surfer may have a specific surfing level
which is suited to his style, body weight and type of water waves they ride. These groups of
surfers maintain a number of surf boards depending on the needs of certain moments.
(Ehrenberg, Goodhardt, 1977) The buying criterion of these two categories of people is quite
different. Once in a while surfers will seek to buy the trendy and fashionable esthetical
surfboards that are very attractive. Some of them may even hire for some time or while they are
on vacation. (Foxall, James, 2001) The buying criterion of these surf shops and the surf
schools are characteristically low priced, easy to ride and with a varied range of use i.e. surfers
of different heights, builds and which are suited for use in a variety of different water waves.
(Ehrenberg, 1991)
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- Segmentation, targeting and positioning
Segmentation, targeting and positioning is a tool that provides the management with up-to-date
information on the target markets, the strengths of the competitors, the customers’ preferences
and segments. Segmentation, targeting and position (STP) allows the simultaneous data
visualization at a glance i.e. in one map and also facilitates accurate, timely and decisions. STP
allows easy and intuitively interpretation of information which enhances the internal
communication between the different stakeholders and the users of the processed data. (Foxall,
Yani-de-so-Riano, 2005)
The surfboard market has since the early 1990s to date maintained a sustained growth which gives an
average of over three million units per year (2009) which totals to more than $1.2 billion. Most of these
surfboards are built by just about 2000 craftsmen across the world; apparently half of them are based in
the US alone. However, 10% of these craftsmen produce only 2000 boards annually by using shaping
tools and semi industrial techniques.
After decades of developments and design changes, five models of surf boards have been identified and
they vary measurement, the board type and general characteristics. These are the Gun, a long board that’s
narrow, designed exclusively for surfing large boards, the Shortboard, a surf board that’s thin and narrow
and it’s very maneuverable, Funboard, its longer and thicker and its meant for occasional surfers or
beginners. And finally the Mini-Malibu which is also designed for beginners and occasional surfers.
The Meyerhoffer is one of the most modern surfboards that utilize modern technology to develop well
designed and latest surfboards. It has combined the best of longboarding and shortboarding techniques.
They have conveniently tweaked the basic fundamentals of the board into a well designed organic shape
that makes the surfer enjoy the thrills of speed, quick and sudden turns.
www.surfindustries.com/surfboards
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- Product and pricing plans
A product is a unit or bundle of potential utility. Products are essentially purchased because they are
beneficial to the purchaser. Consumers are only interested on the benefits to derive from the product
rather than the characteristics in the actual physical nature. The job of product planning mainly consists of
planning the benefits to be derived from the use of the product. The products life cycle creates two major
problems for the companies. First, since all the products eventually decline in value, companies must
develop ways or processes of finding other new products to replace the ageing ones i.e. new product
development. (Hunt, 2002). The company must be able to explain how its products are ageing and adapt
ways of modifying the products marketing strategies as they go through different stages in their life cycle.
New products fail in the market because of in sufficient market analysis and appraisal measures. Bad
timing, ineffective market support, overlooking the business and market environment, higher costs, lack
of customer satisfaction and failure to take into consideration the strengths of the competitors are also the
major reasons why products fail. (Foxall, James, 2003)
A price is a specific offer that tests the pulse of a particular the market. If the price is rejected then it may
be reduced or the product may be withdrawn from the market. The major pricing objectives are profit
oriented or sales oriented. Prices are determined by the demand of the products. The target share of the
market and the competitive reactions. Price is the primary mechanism for resource allocation that reflects
both the degrees of risks and competition in a particular market especially in a free market. Price is the
mover of economy i.e. production, distribution and consumption. Pricing objectives are the bases for price
policies and which also facilitate formulation of strategies. For Global surfing industries, their basic prices
for surfboards will mostly depend on the available market existing and the competition involved. - Conclusion
In conclusion, the Meyerhopper is a unique surfboard that has attracted a huge market because of the
aggressive nature of its advertising by its owners the Global Surf industries. Also the multi-brand nature
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of its distributor provides an array of selection opportunities to its regular and new customers. Every
customer finds something that can appeal and fit into their demands. The major threats however are the
cheap products from the Asian worlds especially from China that have begun to invade the market with
their low priced surfboards. Also the surfboards are usually fragile to transport and they are also
cumbersome to store because of their sizes.
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