“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• How we make them see that

o Placement of products on celebrities and special events

o Placement of products in TV-Series, Shows, Movies

o Advertisements and featured articles in national high-end fashion and lifestyle magazines and billboards

• What the customers see o Outdoor Sheepskin bootso Luxuriouso Comfortableo High qualityo Fashionable

Target our key customer’s lifestylewww.brandliciousblog.com

Challengers & FollowersFashion Outdoor

• Strengths First mover Luxurious Comfortable Fashionable Very loyal customers

• Differential Advantage Premium Quality Distribution Strategy

Our Advantages

Taking over the world

• Sales strategies o High end department stores and

speciality retailerso Flagship retail storeso UGG Australia website

• Growth strategieso Enhance brand positioningo 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:

Valentine Limited Edition

Advertise in High End Male

Magazine

Tag Line: Don’t know what to get for your valentine? Use these steps:1) Know her size2) Come into Ugg store3) We’ll do the rest,

including free gift wrapping.

Attract men to store

Assistant directs to

men's collection

Gift Wrapping

Purchase gift and 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