Discuss about the Global Business Marketing for Ugg Company.
The present assignment provides an overview on the significance of global marketing for the business. This study focuses on the marketing of Ugg enterprise in UK. Global marketing refers to marketing on worldwide level reconciling commercial benefit of operational similarities, differences and opportunities for meeting global objectives. Global marketing is crucial to internationalize and expand the business. It basically requires think internationally as well as act regionally strategy. The global marketing program applies strategies for accomplishing its marketing target. The organizations marketing globally adopt the strategy to analyze the target market and marketing environment (Czinkota & Ronkainen, 2013). Global marketing not only offers the business huge opportunity to increase their revenue but also creates several obstacles within the business. The factors that every organization must consider before they market internationally involves- cultural, economical, political, social and technological. The strategic analysis of these variables has been conducted before marketing this company in this new market.
Ugg Australia also known as Ugg is an American Footwear organization and division of the Deckers Brands. This company has been a registered trademark mainly in US and also over 130 nations. The Ugg brand has been reputed for its distinctive “Classic”sheepskin boots for women as well as men. Over the last few years, this boots have been developed to become termed as Ugg “classic” style. It has also been recognized as a fashion trend for men as well as women since the year 2000. This company has huge product range including- footwear, clothing, handbags , home products and other materials (Papadopoulos & Heslop, 2014). The philosophy of Ugg Company is to deliver comfortable, fashionable and attainable products to their customers. The product platform of this company is mainly directed towards customers who value comfort, quality and luxury. The boots of Ugg Australia has become the vital item in the fashion industry. The boots produced by this company has been reputed as it is very fashionable as well as comfortable shoes. The key customers of this enterprise are 25 to 45 years of old women, trend followers and high earner. The customers of this enterprise have increased over the years as their products satisfy their needs and preferences. This enterprise effectively provides two kinds of requirements for their target customers, which includes- warm keeping and fashionable. There has been huge competition in the boots markets as this enterprise face with several strong rivalries involving- Koolabura, Junbo Ugg etc. The retail segment of this company has increased substantially in terms of both total assets and net sales. This enterprise has entered into several long term leases especially for few Ugg retail locations. As the cost of Ugg retail stores are fixed, if the business has insufficient sales they might be unable to decrease expenditure for avoiding losses. Offering incentives to their customers is one of the marketing strategies adopted by this company (Wilson & Gilligan,2012). However, their effective marketing campaign in several location helps this company to attain huge success in the market and expand globally.
Marketing is one of the vital aspects of the growth of enterprise. Effective marketing strategy allows the company to attain target and gain competitive advantage. It acts as creative message to impact sales by attaining interest of the target audience (De Mooij, 2013). Ugg Australia has been trying to establish its image and brand with their new marketing strategy and campaign (West, Ford & Ibrahim, 2015). This company’s does not release any advertising campaigns for marketing as that of other enterprise. Their main way of marketing is advertising via magazines. In addition to this, they also use internet for advertising via social networking sites. As this company does not utilize advertising campaigns, they basically depend on word of mouth advertising for marketing (Parente & Strausbaugh-Hutchinson, 2014) The CEO of this enterprise has adopted a strategy to market this enterprise brand in order to expand their business. Being the marketing manager of this company, the location that has been chosen for marketing Ugg Australia is UK. The analysis of the variables involving- political, cultural, economic, social, technological and financial have been done in order to market Ugg Australia in UK (Kotler, 2015).
Conduction of strategic analysis of this variables helps to monitor as well as analyze the macro- environmental factors that might affect the company while entering this market. It has been opined by Dibb (2012) that, this analysis is mainly used for bridging into new market and achieves success. Analysis of these strategic variables helps to reduce threats in business and thereby attain valuable advantages. However, these benefits facilitates with idea phase, development and launching of products, marketing strategies and several other factors for increasing success. It also acts as opportunity for this enterprise to build marketing campaign before their new rivalries. Analysis of these variables also aids Ugg enterprise to make decision whether UK holds the potential for the profitable business.
The strategic analysis of these variables that is conducted for marketing Ugg company in UK are illustrated below:
Political factors- These factors basically represents the level by which the government of the specific nation affects the business. The political factors generally include- policies of government including tax policy, political stability in the international market, environment laws, etc. When the political decisions outcomes in legislation that is unfavorable to the specific enterprise, they might sometimes apply astroturfing method in order to give pressure on the government for changing their decision. The UK is the constitutional monarchy, which runs under influence of the parliamentary system. This nation is politically stable and has proactive government. One of the main political decisions that might affect marketing of Ugg brand is the tax levied by their government(Gillespie & Riddle, 2015). Lower level of the corporation tax will reduce the cost of marketing campaign of this company. Furthermore, UK’s low level of interest rate will be another positive factor for this company as they can effectively borrow huge amount of fund for the marketing activities at lower rate. On the contrary, less well- hidden corruption might adversely impact their promotional activities at present times.
Economic factors- Although the UK has strong economy with respect to other developed countries, the financial crisis in the year 2008 has created huge problem for this economy. Owing to sluggish recovery since the year 2008, the GDP growth of this economy also declined. This might have an adverse impact on the marketing of Ugg Company (Ho, 2012). The increasing amount of FDI (foreign direct investment) in recent years will provide new opportunities to market this company in UK. Due to increasing rate of unemployment, less people might be interested in this brand. On the contrary, increase in level of household’s disposable income might facilitate this company to attain the interest of some people in this Ugg brand.
Social or cultural factors- The social framework of UK has been mainly affected by the social class. At the present times, this nation has become multi- cultural place where the people of varied races proliferate. There are several social as well as cultural changes occurring in this nation at present, which might have high influence on the marketing of this enterprise. Ageing population might be problematic to market this company in this nation. Marketing Ugg’s brand in UK might not appeal to many people of this nation due to their varied perspectives. However, innovative marketing campaign will adopted for Ugg in order to ensure that this will appeal this ageing population (Keegan & Green, 2015). In addition, as UK is culturally diverse country with influx of varied races, ethnicities and cultures, aligning this brand might not affect particular cultural segments. However, rising cultural diversity of UK might create conflict among the team members owing to difference in their ideas of marketing their few brands in UK. Hence, social unrest owing to varying migrants and ethnicity within the nation might create problem in marketing campaign of Ugg in UK.
Technological factors- Development in technology have transformed the business environment of UK. Emerging technologies of this country will help to predict customer’s base for marketing Ugg’s brands in this nation (Risselada, Verhoef & Bijmolt, 2014). In addition, it will also facilitate them to develop few business models relating to marketing of this enterprise. Technological advancement will also help them to interact with their customers and attain their feedback regarding the brands of this company (Chaffey & Ellis-Chadwick, 2016). The feedback might either positively or negatively impact on their marketing campaign of Ugg in this location.
Conclusion
From the above study, it can be concluded that UK will be the ideal place to market Ugg company despite having some negative aspects. The strategic analysis of these variables conducted reflects that this location will provide opportunity as well as challenges to their marketing campaign. The opportunities will include ability to borrow fund at low interest rate, advancement in technology and increase in FDI inflows while the challenges will involve socio- cultural diversity, increasing unemployment rate and so on. Although this location might impact their marketing campaign, it will help them to improve their brand image and increase customer base in business.
References
Chaffey, D., & Ellis-Chadwick, F. (2016). Digital marketing. Prentice Hall.
Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Cengage Learning.
De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes. Sage Publications.
Dibb, S. (2012). Marketing Briefs: A revision and study guide. Routledge.
Gillespie, K., & Riddle, L. (2015). Global marketing. Routledge.
Ho, J. K. K. (2014). Formulation of a systemic PEST analysis for strategic analysis. European academic research, 2(5), 6478-6492.
Keegan, W. J., & Green, M. C. (2015). Global marketing. Upper Saddle River, NJ: Pearson.
Kotabe, M., & Helsen, K. (2014). Global marketing management.
Kotler, P. (2015). Framework for marketing management. Pearson Education India.
Papadopoulos, N., & Heslop, L. A. (2014). Product-country images: Impact and role in international marketing. Routledge.
Parente, D., & Strausbaugh-Hutchinson, K. (2014). Advertising campaign strategy: A guide to marketing communication plans. Cengage Learning.
Risselada, H., Verhoef, P. C., & Bijmolt, T. H. (2014). Dynamic effects of social influence and direct marketing on the adoption of high-technology products. Journal of Marketing, 78(2), 52-68.
Turnbull, P. W., & Valla, J. P. (Eds.). (2013). Strategies for international industrial marketing. Routledge.
West, D. C., Ford, J., & Ibrahim, E. (2015). Strategic marketing: creating competitive advantage. Oxford University Press, USA.
Wilson, R. M., & Gilligan, C. (2012). Strategic marketing management. Routledge.
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