The report analyses the rationale, market selection, competitive, pricing, promotion and distribution strategy for Ugg footwear expansion in UK. The report recommends marketing strategies for Ugg to succeed in the UK market.
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Running head: GLOBAL BUSINESS MARKETING Global Business Marketing Name of the Student Name of the University Author note
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1GLOBAL BUSINESS MARKETING Introduction The report throws light on analysis of the rationale of the choice along with selection of market and entire strategy adopted for Ugg, Australia. The different strategies related to pricing, competitive, promotion and distribution strategy has to be identified and analysed effectively as to analyse the different recommendations. The main aim and purpose of the report is to understand the strategies that are required to be utilised in promoting the same brand in United Kingdom. United Kingdom has been chosen as the economy is stable and the technological advancements has tried to transform the country along with the different marketing strategies as well. Analysis of Rationale The main rationale of the choice of Ugg foot wear company to expand in United Kingdom is that the entire nation is politically stable along with the proactive government regulations. The low interest rate is the other factor that can help the company in receiving fund for marketing activities. The respective country has strong economy and the high disposable income can facilitate the organization to attain the different interests of the individuals in brand of Ugg. Furthermore, due to technological advancements, the economy has been transformed and this provides the company to market their products effectively. Market Selection and Strategy The market in United Kingdom has been selected for the Ugg footwear brand as after conducting the PEST analysis, it has been analysed that there are various top fashion brands that are quite successful. Furthermore, it has been noticed that the nation is multi-cultural place in which the individuals of various races flourish (Appiah-Adu & Amoako, 2016). The
2GLOBAL BUSINESS MARKETING brand is very fashionable in nature and the main competitive advantage of Ugg Australia is that they provide premium quality by enhancing their brand positioning in United Kingdom. The main motive of Ugg, Australia is to expand their presence in various countries by implementing marketing campaigns to understand the tastes and preferences of the customers in the market. However, it has been noticed from PEST analysis, the expansion in UK can be little disadvantageous for the company as the trends are changing and the respective brand can not appeal the people in the nation appropriately as well (De Pelsmacker, van Tilburg & Holthof, 2018). Competitive strategy The competitive strategy that has to be adopted by Ugg, Australia to expand in United Kingdom is to maintain appropriate quality of the shoes that are sold to the customers. The Ugg brand is popular in Australia, and in order to expand in United Kingdom, it is essential to grab the attention of all the customers with high quality products along with minimal pricing technique. Ugg footwear brand can step in the mobile strategy as this can play a key role in increasing their brand awareness among individuals effectively (Ottman, 2017). Pricing strategy The pricing strategy of Ugg footwear company that can be used by them is value- based strategy of pricing as this ensures growth in the profit and sales. This respective element of the marketing element helps the company in identifying the prices of the company that is applied by them to maximise the profit (Grönroos, 2016). Ugg has to consider the perception of the customers about the value of the products. The value-based pricing will assist Ugg footwear in succeeding in UK as they provide quality products at a minimal rate. This can help Ugg in controlling costs and influence the pricing of the product (Pappas, 2016). Ugg footwear company can include the different kinds of pricing
3GLOBAL BUSINESS MARKETING strategies that can be competitive in nature in comparison to the other footwear brands that is situated in United Kingdom. Promotion strategy Ugg can adopt the mobile and social media networks to reach out to the different customers as this can enhance their brand image in the market. Ugg can sponsor different events as this will help them in attracting the different customers in the market (Ganguly, Das & Farr, 2017). The quality products developed by Ugg can be recognizable in the UK market and create a loyal customer base in the entire market. Ugg footwear has to appoint different brand ambassadors as to enhance their brand image effectively and appropriately (Funk, Alexandris & McDonald, 2016). Distribution strategy The marketing strategy pf Ugg is embraced by different organizations and Ugg provides reliable distribution network of the products to improve the sales and gain more profit. Ugg footwear company can distribute the items through different channels such as by selling the products to the customers directly in the UK market or selling the products to the wholesalers (Armstrong et al., 2015). As Ugg footwear brand is expanding their presence in the United Kingdom market, they can directly sell to the customers and offer the products to the wholesalers as this will assist them in gaining competitive advantage. Concluding recommendations Therefore, it can be recommended that Ugg footwear brand has to analyse the entire market of United Kingdom in an effective manner. It is suggested that the company has to
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4GLOBAL BUSINESS MARKETING analyse and address the different cultural or social issues that can be faced by them in UK market as the preferences of the customers are different and this might not appeal the customers effectively as well. The negative aspects of the UK market have to be analysed efficiently in such a manner that this can help them in managing the issues related to distribution and sponsorship or promotional strategies. Furthermore, from the PESTanalysis, it can be recommended that Ugg footwear brand has to understand the preferences of the customers in the market in such a manner that the influence of the government has to be reduced as this can affect the business negatively. Ugg has to adopt the direct sale to the customers strategy appropriately as this helps them in managing the risks and solve the issues. The value-based pricing strategy can be difficult for the company in the beginning while setting up the business in United Kingdom. Therefore, it is recommended that the company has to analyse the market situation more appropriately as the company can compare the prices with other competitors in the market and solve the issues effectually as well.
5GLOBAL BUSINESS MARKETING References Appiah-Adu, K., & Amoako, G. K. (2016). The execution of marketing strategies in a developing economy: A case study of selected market leaders.African Journal of Economic and Management Studies,7(1), 9-29. Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015).Marketing: an introduction. Pearson Education. De Pelsmacker, P., van Tilburg, S., & Holthof, C. (2018). Digital marketing strategies, online reviews and hotel performance.International Journal of Hospitality Management,72, 47-55. Funk, D., Alexandris, K., & McDonald, H. (2016).Sport consumer behaviour: Marketing strategies. Routledge. Ganguly, A., Das, N., & Farr, J. V. (2017). The Role of Marketing Strategies in Successful DisruptiveTechnologies.InternationalJournalofInnovationandTechnology Management,14(03), 1750016. Grönroos, C. (2016). Internationalization strategies for services: a retrospective.Journal of Services Marketing,30(2), 129-132. Ottman, J. (2017).The new rules of green marketing: Strategies, tools, and inspiration for sustainable branding. Routledge. Pappas, N. (2016). Marketing strategies, perceived risks, and consumer trust in online buying behaviour.Journal of Retailing and Consumer Services,29, 92-103.