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
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
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
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
Word-of-Mouth Buzz
Product Placements Magazines Oprah Show
2000 2003 2005 2006 2007
Celebrity Sightings
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
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
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
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
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.com/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>.
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