Marketing Management of Ugg Australia in the UK

This report discusses the marketing management of Ugg Australia in the UK. It covers the political, economic, social, and technological aspects of the UK market. The report concludes that Ugg Boots needs to follow these marking guidelines to make a sustainable condition in the UK.

Running head: GLOBAL BUSINESS MARKETING
GLOBAL BUSINESS MARKETING
Name of the Student
Name of the University
Author Note

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Topic: The marketing management of Ugg Australia in the United Kingdom.
Introduction
The global business marketing is the simple form of selling a product in the global
business market. The international acclamation of the product is the concern matter of this kind
of business and company penetrate in other host countries through the effectiveness of the
product. The whole process is associating with planning, producing, placing and promoting the
strategy of the business and in case of business globalization, this aspect is important for the
development of engaging other nations. Large companies are mainly doing their business in
other countries as they have the power to expand their markets however in these days
comparative smaller organizations are doing same and penetrate other countries for the
development of their business.
In this report, the entire concern business in Ugg Boots and the company wants to expand
their market in the United Kingdom. For this penetration, all the possible aspect of the country
need to be understood by the company then only legitimate strategic planning will be planned by
Ugg Boots.
Background of Ugg Boots
Ugg Boots is a unisex style of sheepskin boots, which basically originated in Australia
and New Zealand. Initially, it was used for the utilitarian and they used to carry these boots to
save them from the cold temperature. These are twin-faced surface boots and boot makers are so
skilled that they make this boots with the double-faced identification (Australian Ugg Boots Pty
Ltd., 2018). The fleece part is inside the boot and the tanned part in outside, that signify that
quality of the boots and the reason behind it used in cold-environmental nations. The quantity of

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the boot is not the concern for the manufacturing company, rather they maintain the quality of
the boot and want to make some good customer and also try to retain those customers.
Background information on the United Kingdom
United Kingdom (UK) is an autonomous country in Western Europe. The place is
situated on the north-western coast of Europe mainland. Almost 65,645,100 is the approximate
population of the nation in 2016 and the country has the sixth largest economy in case of
nominal GDP. The GDP growth of the country is $2.566 trillion as per the economic condition in
2017 and a significant increase of 0.4% has been noticed in this section (Zimmerman & Blythe,
2013). The rate of inflation also increased by 4% and that is the concern factor for the nation.
The service sector of the nation contributes 80% of the GDP, so the concern business building is
the major project of the nation. The import rate of the nation is $581.5 billion in 2016 and as per
the global import-export rate; the nation is in the sixth position (De Mooij, 2013). The foreign
reserves of the country are $159.34 billion and all these aspects highlight a perception that Ugg
Boots needs to channelize their business for the development of market sustainability and gain
some competitive advantages from the other boot companies in the UK (Basturk et al., 2014).
Political environment
The United Kingdom is a constitutional monarchy and the monarchy runs with the help
of parliamentary system. One of the strong points of UK is the speed of formalities.
Approximately thirteen days are required for the entire set up for the company. This is a positive
side of the political scenario of UK (Terpstra, Foley & Sarathy, 2012). The low taxation policy
makes the country in form of environment investor –friendly. Most of the other countries love to
do their business in the UK as the nature of the business field is big and companies can get

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enough fame from the country (Basturk et al., 2013). A transparent investment scenario is
present in the nation and rather than other countries this level of transparency, responsibility,
power and investment protection are allowed by the nation and a comparison between all of them
shows the superiority of UK.
Comparison Factors UK OCED US Germany
Transactional Transparency 10.1 6.1 6.9 5.2
Manager’s Responsibility 7.5 5.2 9.1 5.4
Shareholder’ Power 8.3 7.1 4.3 8.1
Investor Protection 7.9 6.6 6.6 6.1
Table 1: Comparison factors for the stakeholders
(Source: Santandertrade, 2018)
There are some positive aspects of UK’s politics and the most important aspect of their
politics that helps the business culture is the fair atmosphere of the country. In the inner-working
condition in business, the UK has the opportunity to do this thing. The government is very much
proactive and working for the betterment of the nation. Political stability is present in that
scenario (Peng, 2016). Through advisers declare about well-hidden corruption in the nation and
in the aspect of Brexit the economic climate also change for the business scenario and that is the
main concern and negative aspect of the nation.
Economic environment
The economic condition of UK is highly developed. This is the fifth largest national
economy country in the world so the GDP growth and the sectors of GDP accumulation are high.
The composed form of per capita income is $40,049 and in the section of the global economy,

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the countries position is high and inward foreign direct investments are important in that case.
The influence of large population helps the small markets to be profitable (Kolios & Read,
2013). The free market allows foreign direct investments in an effective manner and influence of
diverse economy helps the situation for the economic development of the country. United
Kingdom has received around USD 20 billion in 2017 in the aspect of trade and development
aspect (Bargain et al., 2015). Three cross-cultural merger and acquisition deals influence the
business market scenario of UK. In spite of Brexit situation, the nation has one of the strongest
economic backgrounds. The largest share of FDI flow goes in the UK and the current investment
stock of GBP 1 trillion comes from the EU member states (Kemp et al., 2016).
Foreign Direct Investment 2014 2015 2016
FDI Inland Flow 44,800 33,044 253,900
FDI Stock 1,628,582 1,408,300 1,196,600
Number of Greenfield Investments 1,190 1,330 1,180
FDI Inwards 9.0 6.7 57.3
FDI Stock 54.5 49.3 46.0
Table 2: Foreign Direct Investment and economic condition of UK
(Source: Santandertrade, 2018)
The tax exemption benefits are the concerning aspect for the UK and in this zone,
companies are willing to spread their business in the UK. Companies can contact with
Department of Trade and Industry for the further acceleration of business and through their
business strategy real investment can be made (Peichl, Pestel & Schneider, 2012).

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Socio-cultural environment
The high influenced social class is the concern factor for the nation. High societies are
noticed in this nation and most of the people are from well-based backgrounds. In most of the
cases, native people are there and they have the same mentality as well and that that has
impacted on the aspiration of people. The class of social understanding and the class of behavior
is the significant matter of business expansion. In modern situation the level of cross-cultural
aspect is important and people from different culture enrich the situation in the UK. The density
of the population is high. 64.2 million Inhabitants as per the density signify the social
establishment of UK (Berthon et al., 2012). In this country, every 1out of 8 people are from a
different nation, so cultural assimilation is there along with the standard high living (Okoro,
2012). Ugg Boots is a product that people use for the necessity reason. However, it will be
interesting to see how much social dependency will be persisted by the nation. Social unrest
becomes a significant option for the UK. In most of the cases, due to the unrest situation, some
of the products are not making their market. So, better man-management and promotional
innovative options are needed for the successful market orientation in the market.
Technological environment
As the nation is economically developed, thus better technological innovations are quite
common in this nation. Through the technological channels, the business effectiveness reaches to
people. The situational growth of the product and get better technology for the product is the
concern reason for the nation. This innovation in technology is important. In the UK, intellectual
property rights are effectively implemented (Walker et al., 2014). Through this property right
act, the promotion of the product will be easier and people can get to know about the products. A

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plethora of the internal growth of market stimulates growth and that is the reason most of the
product internal orientations are suitably handled (Kremer & Symmons, 2015). In comparison to
the US, the product development is not so much aggravated in form of upgradation but the
change in customer engagement is highly observed in the UK.
Conclusion
Therefore, the report can be concluded that Ugg Boot needs to follow these marking
guidelines of political, economic, social and technological aspects to make a sustainable
condition in the UK. In the UK, most of the cultural changes will be noticed, and as per the sales
rate in Australia, marketing structure in the UK will not match at the initial time. However, as
per the political and economic support from the nation, it will be a health marketing scenario for
Ugg Boots. Customer engagement policies, better-promoting aspects along with the innovative
way of promoting the products are completely depends on the company. Peoples’ thought and
cross-cultural accumulation help the process or market acceleration for Ugg Boots.

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References
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