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