Why choose us?

We understand the dilemma that you are currently in of whether or not to place your trust on us. Allow us to show you how we can offer you the best and cheap essay writing service and essay review service.

Global Surf industries (GSI)

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.

3 Marketing

  1. 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.
  2. Environmental analysis

4 Marketing
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.

  1. 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

5 Marketing
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
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

6 Marketing
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

7 Marketing
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.

  1. 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

8 Marketing
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)

  1. 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)

9 Marketing

  1. 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.

10 Marketing

  1. 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.
  2. 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

11 Marketing
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.

  1. References
    Ajzen, I. (1985) From intensions to actions: a theory of planned behavior. Kuhl, J., Beckman, J (Eds)
    Action Control: From cognition to behavior, Berlin: Springer Verlag. 1985. P. 11- 39.
    Ajzen, I., Fishbein, M. (1980) Understanding attitudes and predicting social behavior: Engel-wood
    Cliffs, NJ: Prentice Hall.
    Donovan, R., J., Rossiter, J. R. (1982) Store atmosphere: an environmental psychology approach.
    Journal of retailing, V58 n.1, p 34 – 57.
    Department of commerce (2013) Bureau of Economic Analysis.US
    Engel, J. F., Blackwell, R. D., Miniard, P.W. (1995) Consumer behavior: Chicago: Dryden Press Foxall,.
    Ehrenberg, A. S. C. (1991) New brands and the existing market. Journal of the market research
    Society, V.33, n.4 p. 285 – 299,

12 Marketing
Ehrenberg, A. S. C., Goodhardt, G. J. (1977) Essays on Understanding Buyer behavior. New York: J.
Walter Thompson and Market research Corporation of America.
Foxall, G. R., Yani-de-so-Riano, M. M. (2005) Situational influences and behaviour, Journal of Business
Research, V58, p. 518- 525.
Foxall, G. R., James, V. K. (2001) The behavioral basis of consumer choice. A preliminary
analysis. European Journal of Behaviour Analysis, V2, p. 209 – 220.
Foxall, G. R., James, V. K. (2003) The behavioral ecology of brand choice: how and what do
consumers maximize? Psychology and marketing, V20, p. 811 and 836.
Foxall, G. R (2005) Understanding Consumer Choice. London and New York: Palgrave Macmillan.
Foxall, G. R (1987) Radical Behaviorism and Consumer Research, International Journal of Research in
Marketing. V4 p.111 – 129
G. R (2002) Consumer Behavior Analysis: Critical Perspective. London and New York: Routledge
Jobber, D. (2004) Principles and practices of marketing. London: McGraw Hill.
Jacoby, J., Johar, G. V., Morrin, M. (1998) Consumer behavior: A quadrennium. Annual Review of
Psychology: V. 49, p. 319 – 344 www.surfindustries.com/surfboards
Kotler, P., Armstrong, G., Saunders, J., Wong, V. (2001) Principles of marketing European Edition,
Harlow: Prentice hall Europe.
O’Shaughnessy, J., O’Shaughnessy, N. J. (2002) The Marketing Power of Emotion, New York: Oxford
University Press.
Simonson, I., Carmon, Z., Dhar, R., Drolet, A., Now-lis, S. M. (2001) Consumer research; In search of
identity. Annual review of psychology, Vol. 52, p. 249-275

13 Marketing

Hunt, S. D. (1983). General theories and the fundamental explanation of marketing. Journal of
Marketing, 47, 9–17.
Hunt, S. D. (2002). Foundations of marketing theory: Toward a general theory of marketing.
Armonk: M. E. Sharpe Inc

All Rights Reserved, scholarpapers.com
Disclaimer: You will use the product (paper) for legal purposes only and you are not authorized to plagiarize. In addition, neither our website nor any of its affiliates and/or partners shall be liable for any unethical, inappropriate, illegal, or otherwise wrongful use of the Products and/or other written material received from the Website. This includes plagiarism, lawsuits, poor grading, expulsion, academic probation, loss of scholarships / awards / grants/ prizes / titles / positions, failure, suspension, or any other disciplinary or legal actions. Purchasers of Products from the Website are solely responsible for any and all disciplinary actions arising from the improper, unethical, and/or illegal use of such Products.