Strategic Analysis: UGG Boots' Entry into the UK Market

This report explores the global business marketing strategies required for UGG to successfully enter the United Kingdom market. It details the importance of market research in understanding potential barriers and facilitators, emphasizing the significance of market entry strategies for survival among competitors. The analysis covers market selection, competitive strategies including cost and differentiation focus, pricing strategies such as penetration pricing, and promotion strategies leveraging personal selling, coupons, and social media advertising. The report also highlights the importance of distribution strategies, recommending the use of retailers and wholesalers to promote the product and increase sales volume. Ultimately, the report recommends that Australian UGG boots implement the discussed strategies to ensure a successful entry and growth within the United Kingdom market. Desklib provides a platform for students to access this and other solved assignments and past papers.

Running Head: GLOBAL BUSINESS MARKETING
Global Business Marketing
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Academic Affiliation
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Introduction
Foreign market entry is always challenging too many organizations, since there are still
numerous challenges faced ranging from competition, international law and regulations, social
and cultural differences, inadequate workforce, economic and political stability among many
others. Therefore, it is important forever company contemplating to go global to have extensive
knowledge about the company. This paper will explore various strategies that will be used to
introduce UUG into the United Kingdom Market. The plans include market entry, competitive,
pricing, promotion and the distribution strategy of UGG boots from Australia.
Market Selection and Entry Strategies
During the initial process of organization expansion, the first aspect to be deliberated is
always market entry and strategy. Market selection refers to the process by which a company
uses to decide on the market to invest in. Selecting the right market and determining the correct
entry always ensure the success of the business (Poturak & Dunman, 2014) .The process still
requires the investor to understand the marketplace and the customer thereby having a
conceptual framework of the market growth, and how it will affect the product and services. The
significant factors that contribute to market selections are the firm related factors and market-
related factors: the firm associated factors entail the expansion of the UUG boots, an aspect that
is possible in the United Kingdom.
This is favored by the number of people in the United Kingdom, that total to about 66.57
million people that assures the company a broad market base. The United Kingdom has high
purchasing power parity of about 90.99, standing at number 20 in the global ranking and have a
strong economy worth about $3,152 billion. The senior population, robust economic status, and

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the high purchasing power, the United Kingdom market is the best selection among the options.
On the other hand, the firm related issues of the UGG make the United Kingdom the best
selection since the boots are designed in a stylish way, an aspect the most of the UK population
love, hence will attract a large number of consumers. Secondly, the boots are of good quality
material offering the product an essential primary selling point. Thirdly, the product variety
catches the attention of all gender hence have a more substantial demographic factor.
Market entry is the process of taking the new product into the targeted market and always
considers different aspects such as the size of the opportunity, barriers to entry, and the projected
and historical growth of the market. Generally, there are still about six market entry strategies
used by the international business. The plans include franchising, licensing, alliance, mergers,
and acquisition, exporting and joint ventures. Therefore, it is upon every business organization to
choose the best strategy depending on the information gained from the market research done
prior the investment.
For the UUG boots, the best market entry strategy is the joint venture. The joint venture
is an entry mode that entails a partnership formed by two or more companies that are already in
operation in the expansion market. UUG Boot Company may join other companies such as
Deeasjer, NPS Solovair, Tricker’s or any other in the United Kingdom to provide easy access to
the market. Joint venture choice has a significant number of advantages to a company theta is
expanding its market share into the international market, especially into a completive one
(Abdul-Rahamn et al., 2014). The selection of the joint venture will help UUG to access the new
market, increase capacity and distribute any risk that might be faced. Additionally, through a
joint venture, UGG can get specialized stress that has information about the United Kingdom
market hence enhances the marketability of the product.

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Competitive Strategy
In every market, there is always competition received from either existing companies or
threats posed by potential entrants. Competition still affects the business operations and must
always be addressed strategically to ensure that the company remains relevant in the
market .these is achieved through a competitive strategy (Wiggan, 2015). Competition strategy
refers to the designed long-term plan that dictates and makes a company to gain a competitive
advantage over others. The approach focuses on creating a defensive position and generation
return on investment. Four competitive strategies were designed by Michael Porter; these are
cost leadership, differentiation, cost focus and differentiation focus. The choice depends on the
level of competition in the market and the company's goals.
For the UGG, the best competitive strategy would cost focus and differentiation focus.
Through differentiation focus, the product’s uniqueness in the United Kingdom market will
ensure that it has equal opportunity with other brands such as Tricker’s in the United Kingdom.
On the other hand, through the cost focus, the company will ensure that the products are as low
as possible compared to the existing potential competitors to build the initial customer attention
and loyalty by attracting as many as possible.
Pricing Strategy
The popularity of a product always depends on the marketability strategies employed.
Among these strategies, product pricing played a significant role in capturing the attention of the
consumers. Low prices attract many customers. However, a good number of customers tend to
relate low rates with low quality. On the other hand, high product prices deter away some
customers as the products seem expensive, but to some extent, such products are always

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considered of good quality. Therefore, pricing is a challenging aspect of many organizations,
especially a startup. The different pricing strategies include premium pricing that is used in
introducing new products into a distinct competitive advantage over similar products; and are
always priced higher than the competitor.
The penetration pricing still lower than a competitor is used to get broader access to the
market. The economy pricing used to set prices at the bare minimum making a small profit by
selling a high volume of products and finally the skimming pricing used to establish product
price while there are no competitors. UGG footwear, the best pricing strategy will be penetration
pricing to set the price in the United States. Jointly venturing with an existing company in the
UK, the use of penetration strategy will aid in marketing the product in the new market. High
quality with many prices will attract the attention of many shoe buyers.
Promotion Strategy
Promotion is an element of the marketing mix that aims at creating awareness of a
product to the potential customers hence increasing the volume of sales. There are different kinds
of promotions; these are advertising, sales promotion, personal selling, and publicity.
The best promotion strategy for the Australia UGG is personal selling, coupon and
adverting. Using the coupon and the discount, on the Australian UGG boots, customer’s attention
is guaranteed. The reduced prices create to enable the promotion, and more customers spread the
word the more they buy the product. The marketing staffs from the UK Company who have
enough knowledge on the market will assist Australia UGG in penetrating the market through
face-face selling.

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This opportunity will enable customers to get a full insight of the new product and spread
the positive aspects through word of mouth. On the other hand, a large number of people use the
internet and spend a lot of their time using social media sites. Therefore, Australia UGG will
employ social media advertising to capture the attention of a considerable number of customers
who are on the social media platforms. Through creating Facebook accounts, twitter accounts,
and website, many people will have to see the pictures, prices and location of the shops hence
can make a stop or make an online purchase.
Distribution Strategy
Distribution always enables the products and services to reach customers where they are.
The distribution strategy refers to the set of independent organizations that ensure that the
process by which a product or service is available for customer use. Apart from creating
availability of the product and services to the final application, the distribution strategy provides
customer service, help in negotiating the terms and also help in promoting the product
(Javanmard, Vahdani & Tavakkoli-Moghaddam, 2014).
There are different kinds of distribution methods such as the middlemen, the agents, the
wholesalers, the retailers, the distribution, the dealer and the value-added resellers. The choice of
the distribution strategy depends on the product, the market structure, and level of competition.
Australian UGG best’s distribution strategy would be the use of retailers, and the wholesalers as
these two channels will help in promoting the product and increasing the volume of sales at the
same time.

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Conclusion
From the above exploration, it is evidential that every organization going global has to do
extensive market research to determine the barriers that may hinder or facilitate the entry. Market
entry and strategy are essential as they allow the organization to adopt the best method to ensure
survival among the existing competitor. The approach will enable the company to have the best
pricing and distribution strategies for the products to have a better competitive advantage over
other products. Therefore, it is recommended for the Australian UGG boot to follow the above
approach to have a successful entry and growth into the United Kingdom.

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References
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