Global Business Marketing

The report is prepared to discuss about the marketing of UGG Australia, also known as the Australian UGG Boots Pty Ltd in United Kingdom. The PEST analysis was conducted to determine the various factors associated with the creation of impact on the international marketing campaign in UK.

Running head: GLOBAL BUSINESS MARKETING
Global business marketing
Name of student
Name of University
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Table of Contents
Introduction......................................................................................................................................3
Background information on product and country of choice............................................................3
Strategic analysis of variables.........................................................................................................3
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Introduction
The report is prepared to discuss about the marketing of UGG Australia, also known as
the Australian UGG Boots Pty Ltd in United Kingdom. As a marketing manager, I have been
assigned with the role of enabling global business marketing and ensuring success in the global
markets in United Kingdom. To market the products and services of UGG Australia in the global
market, it will be important to identify the issues experienced and then determine the political,
economic, social and technological factors that can contribute to the successful global business
marketing (Armstrong et al., 2015).
Background information on product and country of choice
The business organization UGG Australia is a unisex style boot that is made of sheep
skin and has been originated in Australia. The products are considered as luxury bots that consist
of twin faced sheepskin with fleece inside the boot and a tanned outer surface and synthetic sole
on the outer side. The Ugg boots are considered as utilitarian footwear that provides warmth in
cold climatic conditions and are considered as effective boots for the surfers. The sheepskin
boots have become a fashion trend among the people all over the world and there are new and
wide range of shoes introduced nowadays too that are associated with the bogan culture and
daggy fashion sense (Australianuggboots.com.au, 2018).
Strategic analysis of variables
Various factors are associated with the international marketing campaign while marketing
the products and services of UGG Australia in United Kingdom. The consumers in United
Kingdom follow latest fashion trends and the sheepskin made products can definitely arouse
interest among the customers and influence their buying behaviors too. Though there would be
huge competition in the UK market place, still the company should develop the products that
could keep the feet warm during the winter as well as would be breathable for ensuring customer
satisfaction. UGG boots, Australia should also focus on unique products’ features that could
create a positive brand image among the customers and make them avoid between just “high
fashionable products” and “keeping warmth” (Ferraro & Briody, 2013). UGG boots has become

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a luxury brand to enter the foreign market segments and made sure to provide the customers with
more flexibility in terms of their fashion choices.
To compete with the growing Chinese made boots of similar kinds, the Australian boots’
manufacturer has focused on providing something unique to ensure that the global marketing
techniques are successful and noteworthy in terms of business profit and competitive advantage.
The PEST analysis could be conducted for analyzing the different variables such as political,
economic, social and technological factors to check whether marketing UGG boots, Australia in
United Kingdom would be successful or not (De Mooij, 2013).
Political factors: The United Kingdom possesses a free market oriented economy where the
Government has very little roles and responsibilities due to which the employee rights have some
specific effects on the business functioning. The country still runs under a proper parliamentary
system that has created good scopes and opportunities for international business management.
Due to the proactive government and political instability, there might be issues to manage global
business properly sometimes (Brennan, 2014). There are both national and local administrations,
which can be beneficial for starting an international business with ease and efficiency in UK. The
footwear industry is labour intensive and thus the effects on employee laws can create significant
effect including wages provided to the employees who would be willing to relocate, benefits
provided to them along with the health and safety rules and regulations needed to be maintained
while managing international business properly. UGG boots could use this opportunity as a
essential way of surviving in the killer competition in UK and ensure good working conditions
for the employees too to manage international business expansion with convenience (Wild, Wild
& Han, 2014). The classic tall boots for men, short deluxe boots, team boots, mini boots and
nomad boots are few of the products offered by UGG boots that can make a mark among the
customers and influence their buying behaviors too.
Economic factors: The wages paid to the employees and the employment rules and regulations
should be managed properly for ensuring employee satisfaction and encouraging them to
perform to their potential at the new location where the company has started its business in
United Kingdom. During the phase of recession, the footwear sales might get low and even make
the company left out with large amounts of stocks, inventories, etc. Due to this, the UGG boots

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must lower the prices of products and services to ensure that the customers’ mindsets could be
changed and they could remain competitive in the international marketplace. UK boosts a string
economic position when compared with the other countries, because of which, he has a high
GDP rate and the chances of issues are quite low for international business marketing (Zikmund
et al., 2013). Due to the higher GDP and huge population, it could be easy for the small and
medium sized businesses to become profitable as well as would establish good communication
with the customers for attracting the customers from diverse market segments with effectiveness.
The diversified and free market economy would further allow for increased foreign direct
investments and this could even enhance the chances of UGG boots in Australia to start its
business in UK quite successfully. The company should look at the UK customers’ disposable
income and rate of employment, which could make them know about the spending behaviors and
preferences for the new products. The fluctuations of currency in UK would be assessed with the
use of online currency converter to monitor the exchange rates for Australian dollar, furthermore
carry out money transfer to UK for managing the global business properly (Czinkota &
Ronkainen, 2013).
Social factors: The social factors are related to the demographic conditions and so the company
while entering UK with such a huge population would need to reach the customers through
proper marketing and distribution channels (Australianuggboots.com.au, 2018). The use of
advanced marketing strategies and involvement of social media and mobile phones could be
helpful for UGG boots to maintain communication with the customers and at the same time,
manage a website properly at the foreign country, so that the customers could gain accessibility
to the wide range of products and services available. The environmental considerations are also
considered as a major aspect of managing global business and the UK footwear industry has
focused on sustainability (Solomon et al., 2014). Thus, as a marketing manager of UGG
Australia, it would be my responsibility to make sure that the company maintains sustainable
approaches to work according to the environmental policies, laws, rules and regulations,
furthermore maintain the ethical standards and create positive mindset among the customers. The
company could face issues to adopt the new culture and thus the consumer buying behavior
might not be influenced as well. The company should also create new employment opportunities
for the individuals of UK to make sure that workers from there could make business more

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efficiently due to their knowledge, ability and skills in adapting to the local culture with much
ease (Piekkari, Welch & Welch, 2014). The typical dresses and shoes for the individuals in
England during the extreme winter would include the boots of UGG, Australia. These factors
would also contribute to the increased and consistent consumption of the outdoor apparel
products and shoes by the customers at a rapid rate.
Technological factors: As we all know that technological advancements have brought immense
changes in the way business functions and the same will happen for managing global business
effectively. The use of advanced technologies with advanced machineries and equipments would
increase the automated functions’ efficiency as well as reduce the labor workload. The apparel
industry in UK is quite labor intensive and so the implementation of advanced technologies
would reduce the pressure of workers and increase the production level at the same time
(Kankaanranta & Louhiala-Salminen, 2013). The production would be automated and the
complex tasks would be changed to simple yet effective tasks, which could manage successful
global business management and increase the effectiveness of business operations at UGG boots
too. The marketing of UGG Australia in UK would be possible with the involvement of social
media platforms and various other channels of distribution through which the customers in UKJ
would be able to access the products and services easily and their buying behaviors would get
influenced too. The orders would be placed and payments should be done easily, which could
allow the customers to get the products delivered at their doorsteps (Kasemsap, 2014).
Conclusion
The report was prepared to analyze the various variables including the political,
economic, social and technological factors that should be considered while managing the
international marketing campaign for UGG boots, Australia. The company was considered as a
major sheepskin show manufacturer that wanted to market its products and start its business in
United Kingdom. Thus, the PEST analysis was conducted to determine the various factors
associated with the creation of impact on the international marketing campaign in UK. As a
marketing manager of the organization, I would recommend to use the right marketing channels

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and involve social media along with employ the local individuals of UK as employees to make
sure that the company could sustain in the competitive foreign market place.

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References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction.
Pearson Education.
Australianuggboots.com.au. (2018). Australianuggboots.com.au. Retrieved 18 April 2018, from
https://www.australianuggboots.com.au
Brennan, R. (2014). Business-to-business Marketing (pp. 83-86). Springer New York.
Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Cengage Learning.
De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes. Sage
Publications.
Ferraro, G. P., & Briody, E. K. (2013). The cultural dimension of global business. Upper Saddle
River: Pearson.
Kankaanranta, A., & Louhiala-Salminen, L. (2013). “What language does global business
speak?”-The concept and development of BELF. Ibérica, (26).
Kasemsap, K. (2014). The role of social networking in global business environments. Impact of
emerging digital technologies on leadership in global business, 183-201.
Piekkari, R., Welch, D., & Welch, L. S. (2014). Language in international business: The
multilingual reality of global business expansion. Edward Elgar Publishing.
Solomon, M. R., Dahl, D. W., White, K., Zaichkowsky, J. L., & Polegato, R. (2014). Consumer
behavior: Buying, having, and being (Vol. 10). Pearson.
Wild, J. J., Wild, K. L., & Han, J. C. (2014). International business. Pearson Education Limited.
Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2013). Business research methods.
Cengage Learning.