UGG Boots: Australian Generic Product to Global Luxury Brand


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Case Details:

Case Code : MKTG202
Case Length : 14 Pages
Period : 1995-2008
Pub Date : 2008
Teaching Note :Not Available
Organization : Deckers Outdoor Corporation
Industry : Footwear
Countries : USA; Europe; Australia

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

Deckers was founded by Doug Otto in 1973 . Initially, the company manufactured sandals under the Deckers brand name in a small factory in Carpentaria , California...

Marketing Uggs

The comfort, luxury, and fashion element associated with the Uggs ensured that Ugg Australia soon became a well-known brand. The Uggs were stylish and could be worn all through the year...

Luxury and Comfort Footwear

Uggs were made of high quality sheepskin. Their soles were durable and the boots themselves were well constructed. They were lightweight, giving the wearer a feeling of walking around in socks or slippers...

Distribution
Globally, Ugg products were distributed through independent distributors and high-end retailers. Deckers distributed products through 30 independent retailers based in countries like Canada, China, France, Korea, and Scandinavia...

Promotion
According to company sources, Deckers spent nearly US$ 17 million in 2007 to advertise, market, and promote its brands. The promotional strategy aimed at positioning Uggs as premium luxury footwear...

Results

The sales of Uggs rose from US$ 40 million in 2003 to over US$ 116 million in 2004 . According to Wall Street Journal , 'Ugg Australia' brand products contributed to a 77 percent jump in Deckers' overall sales in 2004, which were about US$215 million...

Looking Ahead

Analysts felt that though Deckers had efficiently positioned the Ugg products in the market through extensive marketing, it had failed to maintain a balance between demand and supply and consequently, was caught unprepared when the demand for the Uggs rose...

Exhibits

Exhibit I: History of Ugg Boots
Exhibit II: Deckers Outdoor Corporation Key Financials 2003-2007
Exhibit III: Deckers' Brands
Exhibit IV: Ugg Australia-Footwear Line
Exhibit V: The Ugg Boot Controversy

 

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