Ugg Boots International Market Campaign in China: Strategic Analysis

This report assesses the potential for marketing Australian Ugg Boots in China, considering various factors that may affect the international marketing campaign. It provides a background on both the product and China, and then examines economic, financial, political, socio-cultural, and technological variables. Economic factors such as the per capita income and social status of the Chinese population may affect the affordability and demand for Ugg Boots. Political factors, including China's free trade agreement with Australia, could positively influence sales. Socio-cultural variables, such as language, taste, preferences, and consumer habits, also require careful consideration. The report also acknowledges the impact of technological advancements in China on supply chains and distribution. The analysis concludes that a thorough understanding of these factors is crucial for a successful international marketing campaign.

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INTERNATIONAL MARKET CAMPAIGN
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Contents
Introduction................................................................................................................................2
Background information on the product....................................................................................2
Background of China.................................................................................................................3
Factors that may affect the international marketing campaign of the product...........................3
Economic and financial variables...........................................................................................3
Political factors.......................................................................................................................4
Socio-cultural variables..........................................................................................................4
Technological factors.............................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

INTERNATIONAL MARKET CAMPAIGN
Introduction
Global marketing is one of the subjects that have gotten a lot of concern from both the
business scholars as well as researchers. Marketing managers serve crucial roles as far as
international marketing is concerned as they have to do prior research on the market patterns
and other variables. Marketing a product of a particular company to other countries in the
international market must always be accompanied by research on variables that may affect
the global marketing campaign of that product to the proposed country. As a result, therefore,
marketing managers are charged with the duty to ensure that such information is collected
and availed to the company so that informed decisions can be made.
The purpose of this study is to give a report concerning the marketing of Australian Ugg
Boots in China as the hired marketing manager of the company by its CEO. This report will
discuss the variables that may affect the international marketing of the Australian Ugg Boots.
These variables are economic, political, social, financial and technological. The report will
give a brief overview and background of the product as well as the selected country and then
discuss how these variables may affect the sale of this product in that given country.
Background information on the product
Ugg boots are both sex boots originating from Australia that is made up of sheepskins by the
Australian Ugg Boots Pty Company. Initially, the retailers of these boots sourced them from
different manufacturers and sold them to customers directly. However, after some time the
suppliers began reducing selections as well as selling the products abroad something that
negatively affected the sellers (Kumar, 2017). The move left the sellers with no choice other
than accepting any quality because there was no variety to choose. However, these sellers felt
that it was time to reclaim their quality and innovation in their industry and therefore decided
to own theirs without looking back or quitting the business. This company selects
components that are of the highest quality including quality threads, natural sheepskins as
well as hard wearing soles.

INTERNATIONAL MARKET CAMPAIGN
Background of China
The people’s republic of China famously known as just China is located in East Asia and it
covers 960, 0000 square kilometers. Its capital city is Beijing, and the largest city is
Shanghai. It is the most populous country in the world with a population of 1.404 billion
people (Joshi, 2016). China is associated with the origin of many elements related to the
modern world such as the compass, gunpowder, credit banking, paper, and money. Currently,
China is undergoing the second industrial revolution after the abandonment of the rigid
communist rule. It now has the world’s fastest growing economy and has set a space
exploration programme with the intentions of setting up a station in space by the year 2020.
Factors that may affect the international marketing campaign of the product
As mentioned earlier in this report, taking a product into the international market is usually
challenging and affected by some variables. These variables that may affect the international
marketing campaign of Australian Ugg Boots in China are discussed below:
Economic and financial variables
Economic factors affect the launch of any product to a new country in some ways. The ability
of the citizens of China to buy the Australian Ugg Boots will depend on the economic status
of China. Currently, the per capita income of a whole household in China is estimated to be
711.35 USD (Al-Dmour, 2015). This fact means that the financial stability of many of its
citizens is low. Again, most of the people living in the rural areas are not economically stable.
As a result, this fact might adversely affect the international marketing campaign of these
boots in China. Therefore, people may opt to spend the littlies amount of income they get on
basic needs.

INTERNATIONAL MARKET CAMPAIGN
The class or social status of most of the population will also affect the sale of this product.
However, since these boots are considered as footwear for any social class, this aspect would
not have much impact on the success of the international marketing campaign. Another
economic factor is payment method (Ahmed, 2014). Considering China, debit and credit
cards, travelers' cheques, as well as other online payment options, are some of the payment
methods used. This fact implies that the sale of this product will not be barred by lack of
appropriate payment methods
Political factors
Political factors significantly affect international marketing. Some countries have strict
trading policies and bureaucracies towards foreign investment, something that scares away
foreign investors. China is one of the nations that values international trade (Jahanmir, 2017).
On the same note, it has a free trade agreement with Australia and something that will
positively affect the sale of this product in China (Awan, 2014). In cases where a government
restricts free trade or has unfavorable trade policies like Thailand, it becomes difficult for
foreign companies to sell their products there.
In most cases, some countries come up with strict trading policies with the intention of
protecting the domestic companies from unfair competition as well as guarding the country’s
balance of payment. However, this has not been the case in China (Galan Ladero, 2015).
Research shows that China’s economy is rapidly growing even without trade restrictions.
Absence trade restrictions will positively impact the idea of the sale of the Australian Ugg
Boots in the country.
Socio-cultural variables
The social behavior and culture of a country affect international trade so much. Research has
to be done to reveal whether the consumption of the product intended for sale in that country
conforms to the culture and the patterns of life of the country in question (Dunning, 2016).
Marketing managers who do not do prior research on the culture and social norms of the
country targeted may fail the company when supplies start flowing into a country without
purchases.

INTERNATIONAL MARKET CAMPAIGN
The language problem is one of the critical factors affecting international trade. Depending
on the dialect of different countries, different words mean different things (Vahlne, 2017).
For instance, the first time coca cola was introduced into China it was translated as “female
horse stuffed with wax.” This wrong interpretation will always bring a negative impact to the
sale of the products in that given country (Elias, 2014). It has to be appreciated that the
widely spoken language in China is Chinese and therefore any adverts concerning the
products will do better if they are translated into that language so that all the people can
completely understand the product.
Country's taste and preference also dramatically affect international trade. For instance, some
countries like India have a negative perception of the consumption of meat. However the
people of China do not have superstitions or negative cultures concerning wearing of boots,
two things should be considered. Firstly, most people in China love either open shoes or
closed shoes that do not cover most of their leg (Ainin, 2015). That means that these
specifications have to be met. Secondly, the people in China have considerably small feet as
compared to people from other parts of the world. Therefore, the boots must be designed in a
way that they suit the China market.
Consumer habits also affect international trade. A marketing manager has to research whether
decision making in the country is individual or peer-influence. That will dictate to whom the
product will be directed. It will also suggest the importance of the use of opinion leaders to
successfully introduce the product (Tadasse, 2015). Luckily, in China decision making is
individual and thus people can make a personal decision on whether to buy the product or not
based on their judgements.
Technological factors
Technological factors have a significant influence on international marketing. Advancement
in modern technology and virtual connectivity has enabled companies to develop robust
supply chains that have eased the distribution of products globally (Yule, 2016). New
technologies have increased productivity and lowered the cost of production so that more
products are produced at a reduced cost. It has also led to time-saving in manufacturing
where the items generated per unit time increase.
China is one of the countries that are experiencing industrial growth and advancement in
modern technologies in production and distribution as well as supply chains and logistics.

INTERNATIONAL MARKET CAMPAIGN
Having this information, Australian Ugg Pty has a reason to smile because of the assurance
that the recent advancement in technology will positively affect the international marketing
campaign of their product in China.
Conclusion
Many factors affect the international marketing campaign of a product to a new country.
Wise is the marketing manager who conducts prior research to know how some of these
factors may affect the whole process of launching the product. While a product may be
having a significant public command in the host country, it should be appreciated that
different countries have different cultures, tastes, preferences, and policies that differ to those
of any other country. This fact justifies the importance of market analysis before joining the
global market.

INTERNATIONAL MARKET CAMPAIGN
References
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