“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
Fashion   Outdoor
• 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 Men's Footwear
                         revenue -> change design,
                         don’t be UNISEX

www.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.
Men's Footwear Line
• Why?
  – Increase popularity with men
  – Increased revenue
• How?
  – Media/Celebrities/Sportsmen.
  – Kill two birds with one stone.
• Potential Problems: Insufficient sales
Strategy:
                                                          Assistant
Valentine         Advertise in
                                  Attract men             directs to
 Limited         High End Male
                                    to store                men's
 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

Marketing Uggs

  • 1.
    “Marketing a premierbrand in luxury and comfort”
  • 2.
    Outline: • General Market •Ugg Sales (2009) • Ugg: – Customers – Image • Competitors • Ugg Strategy: Now • Ugg Strategy: Future • Take Home Points
  • 3.
    U.S. Footwear Sales2009 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
  • 4.
    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
  • 5.
    Key Customers • 25to 45 years old women • Higher earner • Trend-Followers
  • 6.
    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
  • 7.
    Fashion Outdoor
  • 8.
    • Strengths  Firstmover  Luxurious  Comfortable  Fashionable  Very loyal customers • Differential Advantage  Premium Quality  Distribution Strategy
  • 9.
    Taking over theworld • 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
  • 10.
    Being Prepared forthe Future • Launch of Regular Brand-> stop market for retailers’ local brands • Premium Limited Editions - Seasonal Boots (Christmas, Valentines Day, …) • Increase Men's Footwear revenue -> change design, don’t be UNISEX www.uggaustralia.com
  • 11.
    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
  • 12.
    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.
  • 13.
    Men's Footwear Line •Why? – Increase popularity with men – Increased revenue • How? – Media/Celebrities/Sportsmen. – Kill two birds with one stone. • Potential Problems: Insufficient sales
  • 14.
    Strategy: Assistant Valentine Advertise in Attract men directs to Limited High End Male to store men's 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.
  • 15.
    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