Chapter 7- Business Marketing

Chapter 7 - BUSINESS MARKETING 

UGG Australia's business marketing includes the breast cancer UGG. This markets for a specific organization. This creates relationship marketing with customers who also support the cause. This product also consists of strategic alliances because it creates partnerships for business. The resellers of the product are in the a relationship with that market. The business aspect of UGG's marketing helps them increase sales using business relationships. When retailers all around the world sell UGG's product they both make a profit. UGG's connection with non profit organizations as well make a difference in the market.

Chapter 11- Developing and Managing Products

Chapter 11- Developing and Managing Products

UGG Australia's product development stays pretty consistent of the boots overall purpose, style and warmth. As far as using new materials, styles, and colors, UGG has a new development every season. The brainstorming process for them is built upon the target market and what's " in " for that group at the time. UGG's commercialization may depend upon advertisement or a test wear, to see if the product seems as it will sell based off of feedback. UGG's are still at their growth stage. They continue to sell more and more. UGG's product category is winter boots. The diversity within that catagory that they have is the reason they are so successful. For example, they have the snow " Adirondack " boot as well as classics for less harsh weather, also they have water proof UGG's for rainy weather as well. 

Chapter 8 - Segmenting and Targeting Markets

CHAPTER 8 - SEGMENTING & TARGETING MARKETS 

The market segmentation of UGG Australia consist of winter shoes. People need a warm and stylish boot for the winter. This market is typically large and easily segmented. Everyone needs winter shoes. The bases for UGGS segmentation is the geography, demographics, psychographics, benefits and usage of the market. For example, a list of things that play a role are, the climate of the targeted market, the income of that market, the lifestyle of that market, as well as the benefits the market is seeking from the product. UGG segments the product based on their target market. UGG targets teens, kids, middle aged women and men. The market is broad. UGG Australia's market is successful.

Chapter 15 - Marketing Communications

CHAPTER 15 - MARKETING COMMUNICATIONS

The methods of communication UGG's uses to market is important. UGG's channel consist mainly of television. UGG communicates using technology, on the TV or the web , although most information you can obtain on their website by signing up for their email list. You will then be contacted with offers and new arrivals. This is their way to transmit messages to customers about the product. The company that owns UGG Australia " Deckers Outdoor " , they post press releases about UGG's on their website as well. As UGG expands their product with new styles and branching more towards men, word of mouth from consumers is their strongest source of publicity as well as interpersonal communication. For example, UGG's started he Adirondack boot style which is also sometimes called " boy UGGS " . These were the first boot they made targeted to men. They didn't need much paid media to spread the word, UGG is so established the word spreads itself. Below is is one of very few of UGG's commercial advertising.

Chapter 10 - Product Concepts

CHAPTER 10- PRODUCT CONCEPTS

The product concept of UGG Australia is based on them showcasing the best qualities of their product. By knowing their target market they are able to understand what concepts are important to these customers. For example, UGG's are targeted toward middle aged women and men who want comfort as well as style. So UGG's advertising always includes how comfortable the product is being made of sheepskin and fur. While every boot has this concept of comfort, there is then so many different styles to choose from. So customers get comfort while still wearing their own preference of color or style. UGG's product has a reputation that they must maintain. They continue to better the product as they notice what the target market is becoming interested in. For example, UGG's sunburst model started in one color, they were a hit, so UGG made more colors, as well as lengths in this style.

Chapter 17 - Personal Selling

CHAPTER 17 - PERSONAL SELLING 

UGG Australia's relationship selling includes customers as well as retailers who sell the product. These relationships are very important to sales, as the workers in the retail stores become advocates for the product. Employee involvement is important, which is why UGG allows internships to establish an experience the brand. Some UGG retail stores include Nordstrom, Bloomingdales, Lord and Taylor and more. The relationship with these companies allow UGG to sell comfortably and successfully in their stores. If you work at UGG Australia you get your first pair free. This is another way of building inside relationships with those who are assets to the company. Also, using social websites such as twitter, and facebook, this allows UGG to communicate with customers. The personal relationship side of business surely increases UGG's reputation.

CHAPTER 16- ADVERTISING, PUBLIC RELATIONS & SALES PROMOTION

CHAPTER 16- ADVERTISING, PUBLIC RELATIONS & SALES PROMOTION

UGG Australia, just like any other company has to keep their sales increasing. One downfall towards their sales promotion is the fact that the product is not environmentally friendly. UGG's are made of sheepskin and fur. This causes UGG's to automatically deter possible consumers who are big on the environment. The public relations of the company uses things like celebrities or musicians in promotion to keep the public intrigued. For example, in 2011 UGG Australia's first broadcast commercial supporting their mens collection used the quarterback Tom Brady, and rapper " Mos Def ". The use of these celebrities will catch attention of their fans and target market which then allows them to view UGG's product in the process. This is a very strategic use of advertisement.

CHAPTER 14 - MARKETING CHANNELS & RETAILING

CHAPTER 14 - MARKETING CHANNELS & RETAILING

Ugg Australia has countless numbers of retail stores. In almost every major shopping area you will come across a store that sells UGG's. There are 5 UGG Australia stores in New York City, and over 50 stores worldwide. This is apart of UGG's competitive advantage, they have made their product very widely available. Their shopper marketing strategy helps them understand the consumers needs, location being one of them, as well as price and quality. As a marketer you put yourself in the consumers shoes, and determine what you would look for in a product. UGG has memberships and workshops, yo keep relationships strong with customers. UGG also uses online shopping to it's advantage, with deals online, and alot of variety of UGG's you cant find in some stores. UGG also has an app for smartphones, for quick efficient shopping. UGG has to keep loyal customers, because sales drop in certain seasons, since UGG's are most utilized in fall and winter. A strategy for UGG to keep their sales moving during "non-UGG-season" is to sell them at a relatively cheaper price, which consumers can't pass up, despite the season. The marketing channel and retail practices of UGG Australia is crucial to their success.

Chapter 6 - Consumer Decision Making

CHAPTER 6 - CONSUMER DECISION MAKING 

The consumer decision making relies on several different things. First, advertising. UGG's advertising includes several pillars. They don't have to spend billions on advertising because the company has made such a name for itself, that it self advertises. What this means is commercials, and train station posters? Those are way in the past. UGG's market advertises enough through word of mouth and through visuals. This includes on social media, television, magazines with photos of celebrities wearing them, these things alone can sway a potential customer to a yes! A consumers decision can be shifted by quality, price as well as the intended target market. If the product is targeted specifically to eldery for example, teens won't be interested. UGG has beat this by targeting all age groups from babies, to old ladies, you can still be stylish in UGG's. UGG's product differentation is it's quality. UGG's are a very warm high quality boot made of sheepskin, with not many of its kind. Consumers make their decision based on the factor of the products pro's outweighing the con's.

Chapter 5 - Developing A Global Vision

CHAPTER 5- DEVELOPING A GLOBAL VISION

UGG Australia used strategy of providing different product features which are sold the same all over the world. UGG Australia's companiee lie in the corporation of Deckers Outdoor, which is served worldwide. Although the name includes " Australia " , UGGS headquarters are actually in Goleta, California, in the U.S. They also have an E-Commerce division in Flagstaff, Arizona. UGG is now increasing their market share globally , by targeting more towards men products, which they have very little of. Also, they continue to open more retail stores in all different areas, to target many middle and high class groups. UGG's product, pricing, and promotion is their key to developing a Global vision. They make their product appealing to several target markets.

CHAPTER 4 - THE MARKETING ENVIRONMENT 

The marketing environment of UGG Australia barely includes competition. UGG is the number one boot of its kind, with imitations like " Bear Paw" they are still in no competition with UGGS. Social media is also a strong part of UGGS marketing environment. UGG has promotions on Facebook, Twitter, Tumblr and more. Also all over the internet you can see several people sporting UGGS. You can go on Youtube to see video reviews on any style of UGGS before you purchase. UGGS cost of production is rising because of the supply of sheep, but it is still managable for UGGS since their sale rate is also very high. The UGG trademark is distinctive and you can look on the back of any boot and you will know if they are UGGS or not. 

CHAPTER 3 - ETHICS & SOCIAL RESPONSIBILITY

UGG Australia's ethics and social responsibility include customer satisfaction first and foremost. The company always meets or exceeds customers expectation with their products. UGG has warrantys, you can send your Uggs back, even after wearing. If you have a complaint UGG will allow you to send yours back and send you a new pair of your choice with the same value, or credit you online so you can chose a pair. This lenient warranty is a way UGG can assure customer satisfaction. UGG also has a strong " cause " marketing with their "Breast Cancer UGGS ". They show their support by putting the breadt cancer ribbon on these boots. UGGS globalization is very strong, with their shoes selling in over 130 countries. This gives the boot a better cultural and economic spread, which may explain why UGG Australia has became a cash cow for 1.3 Billion, owner Deckers Outdoor Corporation.

CHAPTER 2 - STRATEGIC PLANNING 

UGGS planning strategy includes their strong social ecosystem. In order to plan who the product appeals to, UGG has their product worn by celebrities, and people with influence over others. This allows the product to be marketed on television and social media which are the two fastest ways to influence society. This is the market development strategy of using stars. UGGS marketing myopia stands on the quality of the shoe, warm fur on the inside, sheepskin on the outside, which lasts very long if treated accordingly. The shoes meet the customers needs of a warm and stylish winter shoe. UGGS product placement is also a strong part of their marketing strategy, their trademark is feautured on any show or movie where their product is worn. 

History of Ugg Australia

In 1978, Brian Smith landed in Southern California with a bag of sheepskin boots and hope. He fell in love with the sheepskin experience and was convinced the world would one day share this love. The beaches of Southern California had long been an epicenter of a relaxed, casual lifestyle, a lifestyle that Brian felt was a perfect fit for his brand. So he founded the UGG brand, began selling his sheepskin boots and they were an immediate sensation. By the mid 1980's, the UGG brand became a symbol of relaxed southern California culture, gaining momentum through surf shops and other shops up and down the coast of California, from San Diego to Santa Cruz. UGG boots reached beyond the beach, popping up in big cities and small towns all over, and in every level of society. Girls wore their surfer boyfriend's pair of UGG boots like a letterman jacket. When winter came along, UGG boots were in ski shops and were seen in lodges from Mammoth to Aspen.

The UGG brand began to symbolize those who embraced sport and a relaxed, active lifestyle. More than that, an emotional connection and a true feeling of love began to grow for UGG boots, just as Brian had envisioned. People didn't just like wearing UGG boots, they fell in love with them and literally could not take them off. By the end of the 90's, celebrities and those in the fashion world took notice of the UGG brand. A cultural shift occurred as well - people were embracing, and feeling empowered, by living a more casual lifestyle and UGG became one of the symbols of this lifestyle. By 2000, a love that began on the beaches had become an icon of casual style. It was at this time that the love for UGG grew in the east, over the Rockies and in Chicago. In 2000, UGG Sheepskin boots were first featured on Oprah's Favorite Things® and Oprah emphatically declared that she "LOOOOOVES her UGG boots." From that point on, the world began to notice.