Ugg Case Study
By: Noha Salah • Essay • 721 Words • December 21, 2014 • 1,795 Views
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Ugg Case Study
How has the UGG customer changed over the decades? Relate this to the diffusion of innovation categories and their marketing implications.
- When the company established the brand in 1995 they required a product that they could sell alongside their sandals to generate sales revenue during the winter months, they soon a momentum building around a niche product and develop a plan to establish an international brand and reposition its focus on to the luxury footwear sector.
- During the late 1990 the most crucial repositioning took place, as they reviewed distribution, develop new product lines and most important integrated a powerful marketing and communication campaign.
- The product was originally distrusted through wholesale accounts into selective surf shops and independent retailers. The boot was an additional sale to the surf boards and hardware but soon attracted a broader clientele than surfs. This type of limited distribution added to the exclusive and sometimes elusive availability of the product. Lack of stock and limited access added certain kudos to those who were in the know.
- This type of distribution appeal to the early adaptors in Californian fashion circle such as stylists, journalists and fashion PRs many of whom work in the media and film industry. These fashion influencers held sway with the Hollywood elite and celebrities such as Pamela Anderson, Gwyneth Paltrow and Kate Moss who quickly adapted the boots the images of which were rapidly circulate through the global
- Communications network of internet and magazines. These types of celebrity seeding led to a further strategy which included key media personalities such as TV’s Oprah Winfrey endorsing the UGG boot in 2000 in her Oprah’s favorite things’ section. This operated on 2 levels: the glamorous, luxury LA lifestyle as personified by Pamela Anderson and the sophisticated comfort and durability endorsed by Oprah.
Visit the web site and identify what are product replacements, addition to exiting lines, new product lines and new to the world products. Do UGG offer all of this? Explain your reasons for this.
- Product replacements: UGG boot origins were a functional, slip-on boot that offers practicality, warmth and alternative to the flip-flop.
- Addition to exiting lines: addition to the existing women’s wear line included suede wedges, sheep skin lined sandals and slippers.
- New product lines: such as accessories, sheepskin handbags, and the children’s wear collection.
- New to the world products: I think the sheepskin boot itself is a new to the world product by its functionality, practicality and warmth. But other than that UGG doesn’t have new to the world products.
- Yes UGG offer all of this: because UGG has its strong management in its president Connie Rishwain and the in house design team managed by Leah Larson who in 2012 was appointed to a new role as creative director for the brand they also rely on freelance designers and collaboration in products area that they are less familiar with.
- UGG Australia has reached the maturity point in its life-cycle. What could happen next?
- Develop innovative styles, products and product categories for their brand.
- Expanding domestic and international distribution.
- Developing or acquiring new brands.
- Introduce New Categories and Styles under Existing Brands.
- How has the brand managed to sustain sales over the decade?
- In order to maintain their market share and sustain growth in the footwear sector UGG started to expand their product offer beyond the classic boot , from 2005 they developed bi-annual seasonal collections to derive sales orders through the traditionally lean summer months, this type of diversification also offered alternative styles. However, the classic has always generated the majority of orders. In all the design team has to reinvent the same product every season.
- Addition to existing women’s wear line over the years have included suede wedges, sheep skin lined sandals and slippers.
- New product lines such as accessories, sheepskin handbags, and the children’s wear collection comprises mini-version of the classic style and the mini bailey button style.
- In 2011 the brand introduced a women’s premium footwear range called the UGG Collection made in Italy.