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Ugg Boots

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Nicole Saykali

on 19 August 2013

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Transcript of Ugg Boots

Ugg Australia
Nicole Saykali, Chantel El-ahmor, Joshua Papaioannou, Eric Chan, Dylan Friend
What are Ugg Boots?
Scale of operations
Cultural Background
- Ugg boots are a unisex style of sheepskin boots made of twin-faced sheepskin with fleece on the inside, with a synthetic sole.
- Originated in Australia, however the year is unclear
- Became a worldwide phenomenon in the late 1970's
- Distribute to over 20 countries worldwide
- E.g. Belgium, France, Germany, Sweden and many more
- Expanded into the international market originally through surfers who competed in competitions within Australia, and brought
them back to the US to sell them in their own shops.
Population: 313,847,465 million
Geography: Border countries, Canada & Mexico
Demographics:-Race: white 79.96%, black 12.85%, Asian 4.43%, Amerindian and Alaska native 0.97%, native Hawaiian and other Pacific islander 0.18%, two or more races 1.61%-Language: English 82.1%, Spanish 10.7%, other Indo-European 3.8%, Asian and Pacific island 2.7%, other 0.7% -Religions: Protestant 51.3%, Roman Catholic 23.9%, Mormon 1.7%, other Christian 1.6%, Jewish 1.7%, Buddhist 0.7%, Muslim 0.6%, other or unspecified 2.5%, unaffiliated 12.1%, none 4%Source: (CIA, 2012)
Hofstede's cultural dimensions consist of 5 segments: individualism, power distance, uncertainty avoidance, long term orientation and masculinity.

The two most significant dimensions with comparison to USA's cultural background are individualism and masculinity.
'Individualism holds that the individual is the primary unit of reality and the ultimate standard of value'-Score of 91 – highly individualistic-In the business world employees expected to be self-reliant and display initiative
' Represents a preference in society for achievement, heroism, assertiveness and material reward for success'.-Score of 62 -'Winner takes all'
Introduction into the USA
-Country Leather, advertised outside Australia for distributors to sell its ugg boots.
- Australian surfer Brian Smith applied to be their United States distributor.
-Smith registered UGG Holding's Inc and registered a US trademark 'Original UGG Boot Ugg Australia'.
-In 1996 he sold his interest to Deckers and in 1999 Deckers registered the trademarks for "UGG" in the US.
Government type-Constitution based federal republic; strong democratic tradition
Legal system-common law system based on English common law at the federal level; state legal systems based on common law except Louisiana
Economy-GDP (purchasing power parity): $ 15.67 trillion -GDP – per capita (PPP) $49,800
Unemployment rate: 8.2%
Education:-Education expenditures 5.5% of GDP

Source: (CIA, 2012)
Demographics cont.
* how they are sold online and offline
* the signs of how to spot them
* why you shouldnt buy counterfeit products
* its impact
* making sure its an UGG (R) authorized retailer
- Deckers Outdoor Corporation brought out Ugg Hodlings Inc. off Brian Smith who had trademarked the word ugg in 25 countries
- In 2004 Deckers Outdoor Corporations (during the height of the ugg boots craze) sent out a letter to Australian companies to stop using the name or face litigation
- Australian companies banded together to remove trademark of the word ugg in Australia and by January 2006 the word ugg was determined to be a generic word
Trade Mark Issues

Entering the global market
1. Understand market
2. Conduct Research
3. Assess Risks
4. Create Plan
Recommendations for ugg:
Advertising and marketing for the global environment
1. determine market
2. keep focus on customers
3. keep promises
4. create a strong brand startegy
5. Ensure details are correct
6. Quality Design

Internet - Online Success
1. Search Engine Optimisation
2. Advertising on the Internet
3. Web Content and Structure
Recommendations cont.
Recommendations cont.
Major cities
• Business suit and tie
• Women should wear a suit or dress with jacket.

Rural areas
• Women may wear a business dress, or skirt and blouse, in rural areas.
• Men may conduct business without wearing a jacket and/or tie in rural areas.
United States Appearance
Business meetings
- may be arranged at breakfast meetings, luncheon meetings, or dinner meetings

- It is discouraged or limited by many US companies.
- If you do give a gift, it should not appear to be a bribe.
- An invitation for a meal or a modest gift is usually acceptable.
United States Behavior

• Offer a firm handshake
• Good eye contact during business and social conversations
• Good friends may briefly embrace
• Introductions include one's title if appropriate
• Business cards are generally exchanged during introductions
• A smile is a sign of friendliness
• Ask permission to smoke before lighting a cigarette or cigar.
United States Communications
The web
- easier for buyers and sellers to find each other
- allows business, both small and large, to expand their global presence at a lower cost - makes virtue of different time zones

- geographically distant from the large northern-hemisphere markets

Technological advance
- adopts new-cost cutting techniques
- gains a temporary advantage
- firms can increase sales and obtain economic profits at the expense of rivals.
- Rivals must follow the lead of the most progressive firm or suffer the penalty of losses.
Cross-cultural communication
The relationships among the apprehension, competence, and willingness measures previously observed in the U.S. were closely replicated in this Australian data, even though mean scores on competence and willingness were much lower for the Australians. In both samples, greater willingness to communicate was associated with lower apprehension and higher self-perceived competence.

(Barraclough, Chritophel, McCroskey, 1988)
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