Strategic Marketing Plan
UGG Slippers- Inside & Out
Nicole Chuchro, Shobha Ajodhi, Uliana Batih
Central Connecticut State University- School of Business
Marketing 531-01
Dr. Kuan P. Chiang
December 4, 2022
I. Executive Summary
In this market strategy plan we discuss the benefits of our proposed product “UGG
Slippers- In & Out” and how it would benefit the success of the UGG company as a whole. The
situation analysis is
oken down into three key environments: internal, external, and customer,
evealing how each aspect is impacting UGG. In addition, a SWOT analysis is performed to
highlight the strengths and opportunities as well as any weaknesses and threats such as
accessibility at stores and economic stability. The threats and weaknesses are tackled by
developing a competitive advantage through building on its reputation of quality and comfort in
order to
ing attention to the new product that offers greater features. The marketing goal is to
seek customer satisfaction and encourage interest in the new multi-function sole for all shoes
sold by UGG. The product will be marketed through highlighting product differentiation as well
as segmentation to reach as many new consumers as possible. Some findings in market
implementation are that customer reviews can be falsified however with the reputation UGG
cu
ently has; the problem is minor. The formal and information controls are
oken down in
detail to prepare for the market implementation and timeline for launching the new product
which will include marketing audits for the firm.
II. Situation Analysis
A. The Internal Environment
UGG cu
ent marketing goals and objectives revolve around the phrase “it speaks for
itself”. The company does not market heavily to the public, instead uses real customer reviews
and word of mouth to thrive in the market. The goals are achieved by collaborating with known
cele
ities and allowing them to market for UGG. A potential buyer will believe the customer’s
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words, as they have no gain from honest reviews, over a marketing team whose main objective is
to sell the product no matter what.
The firm’s cu
ent performance is rising from that of previous years. In 2021, Decker
eported UGG net sales at 1,717,082 (Decker Report XXXXXXXXXXDecker cu
ently owns UGG which
has benefited the company tremendously as reported that its fourth-quarter earnings more than
doubled to $63 million, or $2.51 a share, from $1.18 a year ago (Owens XXXXXXXXXXThe performance
as a whole is improving the owner. Introducing the bottom sole replacements will be a benefit to
its market share as well through product diversification. UGG is known for its sheep-lined boots
which are claimed to be a by-product of the meat industry as they do not raise their own animals
to kill. Animal welfare is a key concept UGG focuses on in order to maintain relations with their
consumers as well as suppliers. In addition, in terms of the sole replacements, we will use
environmental-friendly plastic alternatives as well as thermoplastic ru
er soles with high
density ethylene vinyl acetate (EVA) which is the lightest of all hard soles that UGG cu
ently
uses on their shoes.
Decker as a whole company had long-term strategies in place before the pandemic to
ensure their record-
eaking success that included diversifying the UGG
and’s product
offering, prioritizing ecommerce to acquire and retain consumers online and, executing
distribution strategies unique to each of our
ands that optimize
and health and sustainable
growth (Powers XXXXXXXXXXThe fact that Decker was able to conquer the pandemic and maintain
stability was proof of their well-planning and spirits. The firm’s structure is supportive of the
cu
ent marketing strategy because it has ensured a stable outcome with thriving financials.
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B. The Customer Environment
The cu
ent customers of UGG vary with respect to demographics and geographic
location. In August 2022, the United States was the top country with traffic to ugg.com holding
66.71% of their total visits, and the United Kingdom fell second with 9.39%. The demographics
is reported to be 30.5% male and 69.5% female with the age groups highest consumers ranging
etween the ages of 18 and 34 years old (SimilarWeb XXXXXXXXXXThe age group of the traffic to the
website does not include who actually wears the shoe or uses UGG’s products, simply those that
take on the financial responsibility of purchasing. UGG used to have a reputation as mainstream
ut re
anded itself to include more trendy and stylish footwear that was inclusive of men and
children, all while maintaining comfort. Including the replaceable bottom soles as an option for
each shoe will allow the customer demographics to increase as other individuals will benefit. The
potential clientele will be inclusive of demographics to consumers between the ages of 45 and
65+ years old as they will enjoy wearing their indoor slippers outside by simply replacing the
ottom sole.
UGG shoes are focused on the customer’s needs in providing comfort, quality, and
warmth to one’s feet in cold weather and conditions. The basic look of the shoe allows for
dressing up and dressing down any look while staying comfortable. UGG shoes are purchased
consistently as there are a variety of styles, however the quality of their shoes is so high it is
expected to have a life of 5-25 years. The majority of UGG shoes are purchased online;
however, they have partnered with retailers’ shoes and large department stores as well as U
an
Outfitters, Journey’s etc. to provide the traditional in-person shopping experience as well. In
addition, the majority of UGG products are purchased around the holidays because with any high
quality comes high pricing. UGGs are known for their longevity in life therefore the appeal for
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their product remains since they became popular in the early 2000s. The high cost to consumers
is what could often discourage purchases since there are competitors that offer cheaper
alternatives, but UGG has countered that by creating their own line of cheaper boots called
Koolabu
a.
C. The External Environment
UGG’s major competitors are Bearpaw, Mozimo Ltd., and Rocket Dog. UGG was
founded in 1978 and renowned for its iconic Classic boot. The reported revenue for UGG was
eported as 11 million USD whereas its competitors stood at 19 million USD for Bearpaw, 6
million USD for Mozimo, and 8 million USD for Rocket Dog (ZoomInfo XXXXXXXXXXThe target
market is very similar in all companies with respect to purchasers as well as users. In addition,
the products provided (specifically the warm lined classic boots) are similar in look but are
cheaper than UGG. The only competitive advantage is the price that these firms have compared
to UGG, $30-$70 per pair whereas UGG is $120 plus per pair of shoes. UGG tackles this
competitive “advantage” by being inclusive with their
and KoolaBu
a, offering the lower to
middle class their comfort and warmth as well. Including the replaceable soles will allow UGG
to stand out against their competition in providing exclusive sole replacements will set them
aside on another level, besides quality, adding to the longevity of life.
The other external factor that has been dictating UGG success is the COVID-19
pandemic, directly linked to economic stability. The world and United States specifically in this
case, are working to bounce back from the repercussions. The economic conditions are directly
elated to customers’ ability to purchase luxury products at the price UGG provides. Including
another benefit adds reason to justifying the purchase of UGG shoes with replaceable soles. The
price of these shoes would be for one with two purposes (indoors/outdoors and quality) instead
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of buying slippers and then shoes as well. Furthermore, the trend behind the name
and UGG
was held to a higher social tier and the same concept applies now as they are making a
comeback. The consumer would act as personal marketing for UGG and our replaceable soles,
putting them as convenient and fashionable.
III. SWOT Analysis
SWOT Matrix
Strengths:
● Fashionable/Trendy
● Variety of Style
● Inclusive of Gende
Opportunities:
● Style of Shoes
● Multi-Purpose Functionality
● Product Diversification
Weaknesses:
● Price of Product
● Sizing
● Accessibility at Stores
Threats:
● Competitors
● Economic Stability
● New Trends
A. Strengths
UGG has many strengths that have helped the
and to grow and continue to be a
consumer favorite over decades. The products range from boots to slippers that offer a
comfortable but fashionable look for a wide-ranging demographic. As the
and has grown the
products have become more in line with cu
ent trends and appeal to a wider base. As mentioned
previously UGG is seeing a resurgence in popularity with teens and young adults with many
seeking the shoes for style and comfort. Most recently UGG has seen success with the range of
slippers offered as they are easier to wear than the boots and offer a different style. The slippers
have been popular with men and women showing how strong the UGG
and is across
demographics. This will help with the launch of the slipper with replaceable soles as there is
already a strong base that is a fan of the slippers.
B. Weaknesses
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Though UGG has seen a growth in sales over the last year the high price of the product
deters customers before they really know about the product. With other competitors in the
market selling similar products for less such as Bearpaw and Rocket Dog, UGG has to find ways
to justify its pricing. With economic issues on the rise many are looking to save and may not see
a $120 pair of boots as a necessary purchase. Another weakness for UGG is the lack of
availability of their products in stores so that consumers can physically interact with the product.
This can be helpful as it gives potential buyers a direct feel and knowledge of the product so they
can see the quality of it. By experiencing the feel and comfort of the show they may be more
inclined to purchase even at a higher price. UGG should identify ways to be in more retail stores
to better reach consumers.
C. Opportunities
Adding this new product to the extensive and reputable catalog of UGG products can
help to start a new trend in multi-purpose shoes. The replaceable soles allow for the slippers to
e used more often and in different environments reducing the number of shoes needed. This is
also an opportunity to expand on the company’s goals of social responsibility and sustainability
as they can deliver a product that is quality and will last over time. This style of shoe is not yet
popular and gives UGG the opportunity to continue to set trends and styles with their already
dedicated consumer base.
D. Threats
The market is always shifting and trends constantly changing, UGG has to move fast to
meet the needs of consumers at the time of demand. With many competitors that can produce
their own version of the products quickly and offer for lower prices UGG has to position itself
appropriately to attract consumers. Trends are also quick to change and the comfortable but chic
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style is popular now, a trend that would include these multi-purpose slippers. Consumers are
constantly looking for the next trending product and reaching the market at the right time is
imperative.
E. Developing Competitive Advantages
As a major
and UGG has the ability to
ing in a new kind of product to the market as
they have already formed a trusted consumer base. Internally they have the knowledge and
esources to expand into this new te
itory and market it as needed. Strategically the
and can
uild on its reputation of quality and comfort to
ing attention to a new product that offers these
features. They can also use social media to bolster their campaign as the trending products are
quick to sell out and the instant content allows for more word-of-mouth advertising.
F. Developing a Strategic Focus
Utilizing UGGs strengths of an established reputation and consumer along with trending
styles the
and can implement a strategy to sell this inventive product. Many consumers may
ask why they need this product, and a strategic marketing strategy would be to highlight the
multi-use functions, the inventive concept and the ability to have multiple styles with one
product.
IV. Marketing Goals and Objectives
Marketing goals for UGG in this new venture would be to seek customer satisfaction with
the new product. Furthermore, to create an interest in this new multi-function shoe style so that it
may be further developed overtime. The objectives for UGG would be to see positive sales
growth following the release of the product and to also see increased traffic to online retailers.
Interest in the product will give an indication to if the concept should be developed further to
other styles. Other objectives for UGG would be to see an increase in user engagement with their
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social media platforms and tags. This is the main source of advertising to the demographics of
UGG consumers, see interactions and positive reviews would indicate happy consumers. The
most important objective is to see positive feedback on the new product to see if it aligns with
UGGs mission statement of delivering the feeling of quality and comfort.
V. Marketing Strategy
To