“Marketing a premier brand in luxury and comfort”
Outline:• General Market• Ugg Sales (2009)• Ugg: – Customers – Image• Competitors• Ugg Strategy: Now• Ugg Strategy: Future• Take Home Points
U.S. Footwear Sales 2009 Women’s Casual Shoes Women’s Dress Shoes Children’s Shoes Men’s Shoes Women’s Boots and Sandals Slippers and Other Shoes IBISWorld Industry Reports, 2010
UGGs- sales (2009)• Highest net sales typically in 2nd half of year• UGG brand sales increased 22.3% to a record $711.8 million after growing 67.5% in 2008.• 12th consecutive year of double digit growth• Main market: United States
Key Customers• 25 to 45 years old women• Higher earner• Trend-Followers
The UGG Image• What the customers see • How we make them see that o Outdoor Sheepskin boots o Placement of products on o Luxurious celebrities and special events o Comfortable o Placement of products in TV- o High quality Series, Shows, Movies o Fashionable o Advertisements and featured articles in national high-end fashion and lifestyle magazines and billboards Target our key customer’s www.brandliciousblog.com lifestyle
• Strengths First mover Luxurious Comfortable Fashionable Very loyal customers• Differential Advantage Premium Quality Distribution Strategy
Taking over the world• Sales strategies o High end department stores and speciality retailers o Flagship retail stores o UGG Australia website• Growth strategies o Enhance brand positioning o Extend brand into complementary product categories (Summer Shoes, Accessories, Clothes) o Expand geographically (Europe, Asia) www.uggaustralia.com
Being Prepared for the Future • Launch of Regular Brand-> stop market for retailers’ local brands • Premium Limited Editions - Seasonal Boots (Christmas, Valentines Day, …) • Increase Mens Footwear revenue -> change design, don’t be UNISEXwww.uggaustralia.com
Introducing Regular Brand• Aim – Hinder the fake ugg market – Increase profit margin – Introduce new customers to affordable brand• How? – Introduce to department stores with different name but associated with Ugg Quality. – Introduce as an internet brand• Potential Problem: Could ruin the premium reputation of Uggs
Premium Limited Edition• Why? – To complement the new regular brand – Introduce variety for not only new but loyal customers. – Exclusive• How? – Introduce Christmas Uggs and Valentine Uggs, include complementary gift wrapping service.• Potential Problem: Return revenue may not cover production cost.
Mens Footwear Line• Why? – Increase popularity with men – Increased revenue• How? – Media/Celebrities/Sportsmen. – Kill two birds with one stone.• Potential Problems: Insufficient sales
Strategy: AssistantValentine Advertise in Attract men directs to Limited High End Male to store mens Edition Magazine collection Tag Line: Don’t know what Gift Wrapping to get for your valentine? Use these steps: 1) Know her size 2) Come into Ugg store 3) We’ll do the rest, including free gift Purchase gift and wrapping. another pair for himself.
Take Home Points• There is always room to improve.• Have to keep ahead of our competitors without loosing our reputation.• Being a niche brand allows us to open other avenues