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Ugg Australia “They’re so ugly, they’re cute”

Ugg Australia “They’re so ugly, they’re cute”. By: Allison Robertson & Gretchen Peed. History of Ugg Australia. Sheepskin boots originally worn by Australian surfers

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Ugg Australia “They’re so ugly, they’re cute”

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  1. Ugg Australia“They’re so ugly, they’re cute” By: Allison Robertson & Gretchen Peed

  2. History of Ugg Australia • Sheepskin boots originally worn by Australian surfers • In 1978 an Australian named Brian Smith went to New York in search of customers for his branded Ugg boots but didn’t sell many until he introduced them to surfers in California • Deckers Outdoor Corporation of California bought the brand in 1995

  3. Marketing Strategy • Target a small, clearly defined customer base • Get word-of-mouth buzz working for you • Deliver a consistent marketing message • Match your pricing to your image and target consumers

  4. Target Customer Base • Originally targeted to surfers as something in which to wrap their feet after catching a few waves • Uggs were closely targeted at upscale tweener and teen girls. • Soon wanna-be-cool moms were wearing them too. • They didn’t start by trying to appeal to everyone

  5. Word-of-Mouth Buzz • Product Placements • Magazines • Oprah Show • 2000 • 2003 • 2005 • 2006 • 2007 • Celebrity Sightings

  6. Marketing Message • Uggs were positioned as boots that Australians wear year round, without socks • Ugg boots are thermostatic – comfortable even in extremes of temperature • The makers of Uggs reinforce their image in every component of their marketing, from their website to their ads, to their in-store displays

  7. Pricing • Costlier proposition at $125-$150 for the more basic styles, just right for upscale “nothing is too good for my girl” moms and dads • Price reinforces the quality of the brand • Customers are willing to pay more because only so many Ugg products are offered each year due to supply of high quality sheepskin

  8. Has it Worked? • Based on consumer demand and increasing profits Ugg Australia has proved success in their marketing strategy • 2003 - $35 million • 2004 - $75 million • 2007 – 129.4 million

  9. The Future • Dropping seasonal bias • Purposely eschew snow to distance the seasonal bias formally attached to the brand • Ads feature sensual shots of a model donning the new fashion-forward styles • Crossing gender lines – Appeal to men • In 1975, 75% of men’s clothes were bought by women • Now 75% of men are buying their own fashions • Ads now portray shots of men and couples wearing the products as part of their luxury lifestyle

  10. Sources • Brown, Suzanne S.. "Uggs on the A-List."Denver Post 11252003 02212008 <http://www.theage.com.au/articles/2003/11/24/106952253 5796.html>. • oprah.com • Sexton, Michael. "Power Marketing for a Fast-Changing World." The Trump Blog 01142006 02212008<http://www.trumpuniversity.co m/blog/post/2006/11/power-marketing-for-a-fastchanging- world.cfm> • Thompson, Stephanie. "Ugg Aims to Protect its Fashion Foothold." Advertising Age vol. 75. issue 31. 08022004 02212008 <http://search.ebscohost.com/login.aspx? direct=true&db=aph&AN=14044314&site=ehost-live>.

  11. Sources • Thompson, Stephanie. "Ugg, others take a shot at gender bending." Advertising Age vol. 77. issue 21. pS4-S6, 2p 5/22/2006. 02212008 <http://search.ebscohost.com/login.aspx? direct=true&db=aph&AN=20926912&site=ehost-live>. • uggaustralia.com • Youtube.com • Pictures from Google Images

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