The Australian UGG Company
The business report of the Australian major footwear retailer-UGG
Name: Youyou Lu（21968780）
Tutor: Manessoonthorn Chadinee
Tutorial time: Friday, 11:30 am-2:30 pm
Course name: MCD2050 Marketing 1
Due Date: 14/12/2009
Table of content
1.0. Executive summary 4
2.0. Introduction 5
2.1. Background of UGG Company 5
2.2. Assumptions and limitations 5
3.0. Overview of the market 5
4.0. The marketing environment 5
4.1. The Microenvironment 5
4.1.1. Key competitors 6
4.1.2. Other environment 6
4.2. The Macroenvironment 6
4.2.1. Demographic environment 6
4.2.2. Economic ...view middle of the document...
Fourthly, it judges the two variable segments and illustrates the demographic segment in detail. Then, the report also exhibits its product categories. Finally, it draws a conclusions sum up and gives the recommendations.
The secondary information which has close relationship to marketing is the sources of the report. For example, academic journals, textbook, statistics from formal organizations and company websites and newspaper. There are some assessments to evaluate the field of marketing in The UGG Company after assessing.
There are two main recommendations for The UGG Company to improve its business:
1. UGG should improve marketing information system in order to do some research to satisfy customers’ needs and wants.
2. UGG should utilize sustainable material to produce products aiming at undertaking its social responsibility and gaining reputation.
2.1. Background of UGG Company
The UGG Company was first established in California by Brian Smith, a young surfer from Australia (Deckers Outdoor Corporation, 2009). It was acquired by Deckers Outdoor Corporation in 1995. Thompson (2004) reports that the sale astonishingly increased from $250,000 to $11.75 million between 2003 and 2004. The brand becomes national and year-round nowadays because of more than 70 shoe styles except its classical-style boots and slippers (Thompson, 2004). He also mentions that the sales project in 2004 was set up at $75 million which was in double growth of 2003’s.
2. Assumptions and limitations
The limitation of the report is not enough adequate information presenting. With the development of globalization, the company should take actions depending on the varied circumstances to have a strong position in its marketplace.
3. Overview of the market
IBISWorld Pty Ltd (2009) defines the footwear retail as a connection between the manufacturing company and customers. It also identifies that the shoe retail is mainly concerned about purchasing and promoting attractive shoes without any change to the customers. Other activities such as customer service, cash handing are also involved in the footwear retail (IBISWorld Pty Ltd, 2009). According to the statistics by IBISWorld Pty Ltd (2009), the industry has revenue of $2475.0 million between the year 2008 and 2009. But meanwhile, it experienced a real growth of -2.9%.
4. The marketing environment
1. The Microenvironment
1. Key competitors
Footwear market is a competitive marketplace because of globalization. There are 3,238 retails providing large number of appealing shoes to customers in Australia and there are 48 sheepskin retails among them (Yellow Pages Australia, 2009). Barack (2008) recognizes that in the present environment it is a difficult task for retailing to maintain the same revenue as before. Other famous brands like Chukka boots and Rocky are the direct competitors to UGG (Wikipedia,...