Marketing Communication Mix

According to Gary Armstrong and Philip Kotler, the marketing communication mix is the specific blend of advertising, public relations, personal selling, sales promotion, and direct marketing tools that the company uses to persuasively communicate customer value and build customer relationships. I believe that UGG Australia has some upsides and downsides that come out of the marketing mix for them.
"Advertising is any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor."UGG's advertising is very scarce. I personally have never seen an UGG ad in a magazine that I have read nor have I ever seen a commercial on television for them. I believe UGG puts their ads in magazines that older women may read, such as Lucky. So, I went online and found some pictures of UGG ads that people have gotten from magazines, and I would have to say that some of the ads are more risque than I would think them to be.

http://www.bwgreyscale.com/ads/ugg.html ; http://www.visit4info.com/brand/UGG-Australia/7045  ;  http://www.uggaustralia.com/experience/index.aspx

"Sales promotion are short-term incentives to encourage the purchase or sale of a product or service." UGG rarely does many sales promotions, they may every once in awhile lower their prices for a sale, but again, that does happen rarely. The only way that you would really see UGG footwear discounted would be through a shoe website that does offer discounted footwear. Other than discounts and coupons, the authorized UGG stores will have displays of the footwear that they have to promote the line. http://farm1.static.flickr.com/142/326754456_b683fe0814.jpg?v=0 ; http://www.evansonthecommon.com/Footwear/website%20jan%205%20012.jpg

"Personal selling is the personal presentation by the firm's sales force for the purpose of making sales and building customer relationships." UGG has their sales force that keeps their relationships with retailers who sell their footwear. Also, the people who work in the stores can also be considered part of their sales force since they do help to sell UGG footwear. UGG's sales people have kept a good relationship with many stores for years who continue to sell their footwear, such as Nordstrom. 

"Public relations is building good relations with the company's various publics by obtaining favorable publicity, building up a good 'corporate image', and handling or heading off unfavorable rumors, stories, and events." I know from time to time, UGG Australia has special events that allows some of their profits go to a non-profit organization. They also do have press releases and conferences sometimes. I also believe that they have to take a lot from critics or consumers who compare UGG products to their competitiors products, so they need to handle the stories in an ethical manner. Also, they have kept a good 'corporate image' with many of their consumers, since many keep purchasing their products.

"Direct marketing is the direct connections with carefully targeted individual consumers to both obtain an immediate response to cultivate lasting customer relationships." UGG does not generally use too much direct marketing, other than using the internet. They do not use telephone, kiosk, or catalogs to market their products. The internet is how many people do find UGG products, with their website and many stores who do sell their footwear. There are also ads that come up, such as on Facebook, that markets along with what your interests are, allowing more consumers to see the products, and possibly go and browse on the webiste.


I believe that UGG can do a lot better with their marketing communications mix. I believe that they can advertise more, including more magazine ads and possibly commercials. I also believe that they should try using more direct marketing, such as sending small postcards or catalogs to consumers, allowing them to view the products. This can allow a neighbor or friend to be at their house, and also view the catalog and possibly purchase a product from them. They cannot really do much more with their sales promotion, personal selling, and public relations; I think that they are doing as well of a job as they can with these.

*Definitions are from 'Marketing: An Introduction' by Armstrong & Kotler

UGG Australia Pricing & Distribution

UGG's Pricing Strategies:

Currently, UGG uses marketing-skimming pricing for their new arrivals. They are setting a very high price for their new summer arrivals, to attract the target markets that will agree to buy these products at the prices. http://www.uggaustralia.com/ProductsList.aspx?gID=w&categoryID=451&page=1 
With their regular UGG boots, I personally know that they used a market-penetration price when they first got to be in bigger demand, to attract a larger amount of markets that will buy the products at the price. Recently though, they have raised the prices of the boots, and a few other of their footwear products.
In other countries, for example, their prices are much higher for their footwear than they are over here. I would have to say this may be because they sell them in more "expensive" countries, and they have larger markets in the U.K. When I converted the euros to U.S. dollars, they came out to be much more expensive than they are sold for here. (http://www.translatum.gr/converter/currency.htm?texaccept=site+operator+accepts+conditions+at+http://cconv.textor.com&val1=149.99&cur1=1.000000&cur2=0.760648) 

UGG also uses value-bases pricing because everybody who has owned a pair of UGGs before knows they live up to their expectations, and they are worth the price that they are buying for them. I think that this is a good strategy for UGG because it will keep their large target market that they have acquired to this point in time, because these customers know they are getting the right value for the higher prices of the products. They also use psychological pricing, because again, the target market they have set and loyal customers know that the product is worth it, and the people who don't normally buy UGG products will see the higher prices, and know that they are a higher-end footwear company. They use geographical pricing as well, as I mentioned earlier, they set a higher price for their footwear in other countries than they do in the U.S. I think they do this because they know the prices that other people in countries will buy, so they can make a larger profit. Lastly, they use captive-product pricing. UGG sells different care products for their footwear, including replacement insoles, and spray to protect the outside sheepskin from getting damaged. http://www.uggaustralia.com/ProductsList.aspx?gID=w&categoryID=173&page=1

http://www.brandchannel.com/features_profile.asp?pr_id=365

In this article, they discuss how much UGG's profits went up for their footwear over just a few years, which goes to show that even though they do set higher prices for their products, they are now a well known company that can be trusted with their products. 

UGG's Distribution:

UGG has grown throughout the past 11 years, distributing to more and more places. UGG first started out just distributing on the shores of California, and grew through cities in the U.S. to New York. Once they became a hit in New York, they kept growing to large cities throughout Europe and other countries. (http://www.uggaustralia.com/experience/history.aspx?p=ex)  
UGG footwear has many places that it has authorized to be sold in, which include online retailers, flagship stores, and just regular stores that can be found in most malls. You can find all of these authorized stores on their website, http://www.uggaustralia.com/customerService/dealerLocator.aspx?store=retailer, which you can search where the closest store is to your town.
At first, UGG Australia used selective distribution, selling mostly only in Nordstrom stores, until they started to advertise more and the demand went up for the product. Since UGG does only authorize certain stores to sell their footwear, and sell in more stores other than just Nordstrom, they now use exclusive distribution. I think that this type of distribution is great for the company because since they are a high-end brand of footwear, they only sell it in stores where they will sell it for their going price, and where the demand is highest for the products.

UGG Australia's Target Markets

With UGG's reputation, being comfortable and luxurious, they have reached out and collected their target markets. I think that UGG has formed one particular target market, young to middle aged women and men that is in the upper middle class and higher who live a luxurious or fashionable life. 
UGG Australia has gathered a target market of people who are young to middle aged women and some men. With their comfortable footwear, they attract people who want to feel comfortable but also be fashionable. They have created different types of footwear, from sandals and slippers to boots. They also come in different colors, so customers can get different colors to match any outfit. 
UGG also gathered a target market of people who are in the upper middle class and higher. With their higher prices for their products, many people who are financially stable buy UGG products. Also, you normally see people who are of a higher class, and who live luxurious lives wearing or buying UGG products. 
Every customer who buys UGG products, has known people who have bought the product and who have already purchased a product from UGG. Many of the consumers know the product before they buy it, so they know that they are getting a good product for the money they are spending on it. These people know the UGG products, and know that they are comfortable and luxurious.
UGG Australia has gotten these target markets, and I do not believe that they will change, unless the company changes itself. All consumers of UGG know and love the products, and keep purchasing because they know that they are getting a good quality of a product for their money. These target markets have stayed the same since UGG came around, and will stick around for awhile.

UGG's Environment

The enviornment plays as a huge factor to any company. For UGG, their microenvironment deals with how they market their products, their suppliers, competitors, and the company themselves. I don't see UGG advertisements that often, at least not in any magazines I read, but I think UGG gets a lot of their marketing from their customers. Almost anywhere you go you'll see people wearing some form of UGG footwear. Stores that sell UGG footwear can be found in almost any mall, for example Journey's sells UGG footwear. UGG doesn't really have that many competitors, except for EMU, but I never see that many people wearing EMU footwear. The company also keeps thinking of different colors for their footwear, and are making more products. UGG's macroenvironment deals mostly with demographics, economics, and cultural. Demographics may play a big part in their marketing, or may not. Some places in the world aren't as populated, so they may not have stores there that are authorized to sell UGGs, or maybe it's a place where nobody wears UGGs regularly, for example, people in Florida may not wear UGGs because of the weather. The economic environment plays a huge role for UGGs, since they are a higher end company of footwear. Since the economy right now isn't in such great shape, less people will probably be buying UGGs, for their prices, unless it's a holiday season or a birthday. Another macro environment problem may be cultural. Some cultures may only be able to wear certain shoes, so they wouldn't try selling their products in that area. I think UGG has some advantages and disadvantages in terms of the environment. Their micro environment is generally in good terms, while their macro environment may cause some problems for the company.

UGG's Positioning

For UGG, they need to have a good positioning since they are a higher end shoe company. UGG Australia shoes can be found online, and in certain stores, which some stores are the ones that many teenagers go into. UGG has competition, like Emu, but UGG Australia has held a reputation of being comfortable and luxurious. Anytime you go to a store, you at least see five or more people wearing UGGs, which is like an advertisment for them. They have held their reputation for the past few years, as they have been growing. More and more people are seeing that their products are worth the price and are buying them more than they did in the past. I think as UGG continues to make new boots and shoes, and new colors, then they will continue to be one of the leading luxurious shoe companies.

Core Competency

For UGGs, I think that their biggest core competency is their products, and the place. UGG products are fashionable, and very comfortable. They make all products from footwear, to outerwear, to some home decor. Their products can also be purchased for women, men or children. All of their footwear are very comfortable, made of sheepskin. Their second core competency is their place. They distribute their products to certain stores around the world, they also sell their products online, and they have a few UGG stores around the world as well. You can find UGG products at almost any mall, or many places online.

Mission Statement

UGG Australia's Mission Statement is as follows:


"UGG® Australia delivers on its promise of luxury and comfort. UGG® Australia is about accessible luxury. Our products fit into the consumer's every day life offering them products that are fashionable, comfortable, and attainable. The UGG® Australia product platform is directed toward consumers who value luxury, comfort and the highest quality footwear available. Only the finest materials are used in the construction of our products - the highest quality leathers and suedes, and of course, the world's finest sheepskin. UGG® Australia is the world's largest purveyor of grade-A sheepskin. We take great care to ensure that every shoe is going to feel great from the moment our consumer tries it on."


The mission statement greatly reflects how UGG Australia's products are, comfortable and luxurious. It tells you what the UGG products are made from, and that they want anyone who wears them to always feel comfortable while wearing their products. Their mission statement explains just how they want people who are buying their products to feel while wearing the products. I also think that it shows people that they are a more high-end dealer of products, as many people do know they are quite pricey, but I believe their products are worth it.