UGG Boots: Australian Generic Product to Global Luxury Brand
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Case Details:
Case Code : MKTG202
Case Length : 14 Pages
Period : 1995-2008
Pub Date : 2008
Teaching Note :Not Available
Organization : Deckers Outdoor Corporation
Industry : Footwear
Countries : USA; Europe; Australia
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Excerpts
Background Note
Deckers was founded by Doug Otto in 1973 . Initially, the company manufactured sandals under the Deckers brand name in a small factory in Carpentaria , California...
Marketing Uggs
The comfort, luxury, and fashion element associated with the Uggs ensured that Ugg Australia soon became a well-known brand. The Uggs were stylish and could be worn all through the year...
Luxury and Comfort Footwear
Uggs were made of high quality sheepskin. Their soles were durable and the boots
themselves were well constructed. They were lightweight, giving the wearer a
feeling of walking around in socks or slippers...
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Distribution
Globally, Ugg products were distributed through independent distributors and
high-end retailers. Deckers distributed products through 30 independent
retailers based in countries like Canada, China, France, Korea, and
Scandinavia...
Promotion
According to company sources, Deckers spent nearly US$ 17 million in 2007 to
advertise, market, and promote its brands. The promotional strategy aimed at
positioning Uggs as premium luxury footwear...
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Results
The sales of Uggs rose from US$ 40 million in 2003 to over US$ 116
million in 2004 . According to Wall Street Journal , 'Ugg Australia'
brand products contributed to a 77 percent jump in Deckers' overall
sales in 2004, which were about US$215 million...
Looking Ahead
Analysts felt that though Deckers had efficiently positioned the Ugg
products in the market through extensive marketing, it had failed to
maintain a balance between demand and supply and consequently, was
caught unprepared when the demand for the Uggs rose... |
Exhibits
Exhibit I: History of Ugg Boots
Exhibit II: Deckers Outdoor Corporation Key Financials 2003-2007
Exhibit III: Deckers' Brands
Exhibit IV: Ugg Australia-Footwear Line
Exhibit V: The Ugg Boot Controversy
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