Global Business Marketing Report: UGG Australia in Finland Market

This report delves into the global business marketing strategies for UGG Australia, focusing on its potential entry into the Finland market. It begins by exploring various market entry modes, ultimately recommending franchising as the most suitable approach. The report then analyzes competitive strategies, advocating for a differentiation leadership approach to establish UGG's unique position in the market. The pricing strategy of penetration pricing is suggested to gain market share, supported by promotional strategies such as point-of-sale marketing and post-sale customer surveys. Finally, a direct distribution channel is recommended to maintain competitive pricing. The report provides a comprehensive overview of how UGG Australia can successfully enter and thrive in the Finnish market.

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Global Business Marketing
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Table of Contents
Market entry mode...........................................................................................................................2
Suitable method for Ugg Australia..............................................................................................3
Competitive strategy........................................................................................................................3
Suitable method for Ugg Australia..............................................................................................5
Pricing strategy................................................................................................................................6
Promotion strategy...........................................................................................................................6
Promotional strategy used by Ugg Australia...............................................................................7
Distribution strategy........................................................................................................................7
Reference List..................................................................................................................................9

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Market entry mode
There are many market entry modes that Ugg Australia needs to consider. They are as
follows:
Direct exporting- It is the method through which the company can consider in selling the
products directly in the Finland market. The company needs to establish themselves in the
market so that they can appoint distributors and agents who can help in selling the products on
behalf of the company in the new market. The agents are the ones who are closely associated
with the company and provide feedback regarding the sale of the products in the new market
(Nilsson & Selmer, 2016).
Licensing- It is the mode of entry where the rights of using the products of the company is
transferred to another firm. It mostly includes an international company that transfers the right to
a local company in the market so that they can sell the products on behalf of the parent company
(Kim, 2018).
Franchising- This is the method in which the companies use a business model that is repeatable
in nature. It helps the parent company in franchising their brands to the local companies in the
new markets so that it can help in increasing the margin of profit for the companies. The
international company needs to have strong brand recognition so that it can help in increasing the
sale of the products in the new market (Johanson & Mattsson, 2015).
Partnering- This mode is a way through which the parent company gets in to a partnership with
the local companies who have a better knowledge regarding the local market. The use of

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partnership is helpful when the culture in new market is same as that of the parent company
where it is operating. This will help the company in selling the products easily.
Joint ventures- This is a form of partnership that is done by creating a third company that is
managed in an independent manner. The companies agree to work together in a market and a
new company is formed based on the partnership of these two companies (Nilsson & Selmer,
2016).
Suitable method for Ugg Australia
The company needs to focus on franchising as the mode of entry in the Finland market.
This will help the company in choosing a local company who can influence the Finland market
in buying the products in a better manner. The local company will use its expertise in selling the
products and use its own resources, which do not require the parent company in being involved
in conducting the market research. The company just needs to provide the products to the
franchise company who will take care of the products that needs to be sold in the market.
Competitive strategy
The competitive strategy is the plan that is based on the company on a long-term manner
so that it can gain competitive advantages over the rivals that are present in the market. It helps
the company in forming a defensive set of actions so that it can help in getting a better Return on
Investment (ROI). The use of this strategy play an important role for the company, as it helps
them to be competitive in the market (Cusumano, Kahl & Suarez, 2015).

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Figure 1: Porter's Competitive Strategy
(Source: Porter & Heppelmann, 2015)
The cost leadership help them company in producing the products at a lower price so that
it can help in achieving large scale production by improving the economies of scale. This helps
the firm in having a better power of bargaining, better way of implementing the technologies that
will help the company in producing the products in an innovative manner. These factors will help
the company in achieving the technique of cost leadership (Huo et al., 2014).
The strategy of differentiation leadership helps the firm in maintaining the unique
features in its products so that it can be different in the market. In this strategy, the company will
be able to achieve the leadership in the market by charging a premium price for its products that
are made in an innovative manner. It will help the products in being a superior brand with respect
to the quality that they are offering in the market (Cusumano, Kahl & Suarez, 2015).

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The strategy of cost focus helps the company in focusing on the segmentation of the
specific market so that the price of the products can be lowered in some of the segments in the
market. This strategy helps the company in satisfying the customers so that the company can
gain popularity in the market.
The last strategy in the competitive strategy by Porter is Differentiation focus where the
company will try to differentiate itself from the rivals in the current market segment. The level of
differentiation helps the company in meeting the demands of the customers who usually
purchase from the rival companies at a lower price by giving a miss to some of the features. This
strategy is followed in niche markets (Huo et al., 2014).
Suitable method for Ugg Australia
The company needs to adopt the leadership that is associated with differentiation. It will
help the company in providing the products that are not available in the Finland market or are
priced at a higher rate. The Ugg boots of the company will be provided at a cheaper rate than the
local ones that are available. The use of better technological factors will help the company in
producing the boots at a cheaper product so that it can be available to the customers at a cheaper
rate as well.

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Pricing strategy
Figure 2: Pricing Strategies
(Source: Nagle, Hogan & Zale, 2016)
The company needs to use the strategy that is known as penetration pricing, which will
help the company in capturing a major share in the market. The company needs to keep the
prices low for the products so that it can help in attracting the customers towards them and gain a
competitive advantage as well. The primary principle behind this strategy is that it will help the
company in raising awareness among the people so that they can try the products. In using this
strategy, the company may face a loss in its initial stages, but it will help the creation of word-of-
mouth references among the customers, which will help in increasing the base of customers
among the market that is crowded (Li et al., 2016).
Promotion strategy
There are many promotional strategies such as using the social media so that it can help
in spreading awareness of the brands among the local people. Most of the customers in the

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Manufacturer Agent Consumer
modern world are hooked to the social sites, which helps the companies in promoting their
products and brands as well. The giveaway of the products is another strategy as well that will
help in giving sample products to the customers by the company (Lieder & Rashid, 2016). This
will help the company in attracting the customers towards them, as they can use the samples and
judge the quality of it as well. The point-of-sale and marketing in an end-cap manner will help
the company in promoting their products on the stores as well. This strategy will help in testing
the impulsive buying behavior of the customers. The product can be positioned in the markets in
such a manner so that it can be accessed easily by the customers. The use of surveys conducted
among the customers post the sale of the products will help the company in analyzing the
demand of the product in the market as well (O’guinn et al., 2014).
Promotional strategy used by Ugg Australia
The company needs to use the point-of-sale and end-cap marketing process so that they
can make available the products in the markets present in the Finnish market so that the
customers can indulge in impulsive buying pattern. This will help the company in attracting the
customers, as the product will be new and the customers may try to use it within the market.
After the products have been sold in the market, the company needs to conduct surveys so that it
can help in getting better feedbacks from the customers and make the necessary changes
according to the needs and preferences of the customers.
Distribution strategy
Figure 3: Distribution Channel

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(Source: Created by Author)
The company will be using a direct method of distribution channel where the company
will manufacture the products and appoints agents in the Finnish market so that it can help in
reaching the customers (Stark, 2015). The company will be using lesser number of distribution
channels so that it can help in keeping the prices low in the market. The use of this channel will
help in supplying the products directly to the customers so that the company can gain an
competitive advantage in the market and provide stiff competition to the other companies that are
indulging in manufacturing the same products (Hill & Munday, 2016).

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Reference List
Cusumano, M. A., Kahl, S. J., & Suarez, F. F. (2015). Services, industry evolution, and the
competitive strategies of product firms. Strategic management journal, 36(4), 559-575.
Hill, S., & Munday, M. (2016). The regional distribution of foreign manufacturing investment in
the UK. Springer.
Huo, B., Qi, Y., Wang, Z., & Zhao, X. (2014). The impact of supply chain integration on firm
performance: The moderating role of competitive strategy. Supply Chain Management:
An International Journal, 19(4), 369-384.
Johanson, J., & Mattsson, L. G. (2015). Internationalisation in industrial systems—a network
approach. In Knowledge, Networks and Power (pp. 111-132). Palgrave Macmillan,
London.
Kim, J. (2018). Market entry strategy for a digital platform provider. Baltic Journal of
Management.
Li, B., Zhu, M., Jiang, Y., & Li, Z. (2016). Pricing policies of a competitive dual-channel green
supply chain. Journal of Cleaner Production, 112, 2029-2042.
Lieder, M., & Rashid, A. (2016). Towards circular economy implementation: a comprehensive
review in context of manufacturing industry. Journal of Cleaner Production, 115, 36-51.
Nagle, T. T., Hogan, J., & Zale, J. (2016). The Strategy and Tactics of Pricing: New
International Edition. Routledge.

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Nilsson, J., & Selmer, K. (2016). What role do social media play in the market entry strategy for
SMEs establishing on the global market?.
O'guinn, T., Allen, C., Semenik, R., & Scheinbaum, A. C. (2014). Advertising and integrated
brand promotion. Nelson Education.
Porter, M. E., & Heppelmann, J. E. (2015). How smart, connected products are transforming
companies. Harvard Business Review, 93(10), 96-114.
Stark, J. (2015). Product lifecycle management. In Product Lifecycle Management (Volume
1) (pp. 1-29). Springer, Cham.