Global Business Marketing: Ugg Boots Market Penetration In The UK

Ugg Boots: A Brief Overview

Question:

Discuss about the Global Business Marketing for Ugg Australia.

The global business marketing is the simple form of selling a product in the global business market. The international acclamation of the product is the concern matter of this kind of business and company penetrate in other host countries through the effectiveness of the product. The whole process is associating with planning, producing, placing and promoting the strategy of the business and in case of business globalization, this aspect is important for the development of engaging other nations. Large companies are mainly doing their business in other countries as they have the power to expand their markets however in these days comparative smaller organizations are doing same and penetrate other countries for the development of their business.

In this report, the entire concern business in Ugg Boots and the company wants to expand their market in the United Kingdom. For this penetration, all the possible aspect of the country need to be understood by the company then only legitimate strategic planning will be planned by Ugg Boots.

Ugg Boots is a unisex style of sheepskin boots, which basically originated in Australia and New Zealand. Initially, it was used for the utilitarian and they used to carry these boots to save them from the cold temperature. These are twin-faced surface boots and boot makers are so skilled that they make this boots with the double-faced identification (Australian Ugg Boots Pty Ltd., 2018). The fleece part is inside the boot and the tanned part in outside, that signify that quality of the boots and the reason behind it used in cold-environmental nations. The quantity of the boot is not the concern for the manufacturing company, rather they maintain the quality of the boot and want to make some good customer and also try to retain those customers.

United Kingdom (UK) is an autonomous country in Western Europe. The place is situated on the north-western coast of Europe mainland. Almost 65,645,100 is the approximate population of the nation in 2016 and the country has the sixth largest economy in case of nominal GDP. The GDP growth of the country is $2.566 trillion as per the economic condition in 2017 and a significant increase of 0.4% has been noticed in this section (Zimmerman & Blythe, 2013). The rate of inflation also increased by 4% and that is the concern factor for the nation. The service sector of the nation contributes 80% of the GDP, so the concern business building is the major project of the nation. The import rate of the nation is $581.5 billion in 2016 and as per the global import-export rate; the nation is in the sixth position (De Mooij, 2013). The foreign reserves of the country are $159.34 billion and all these aspects highlight a perception that Ugg Boots needs to channelize their business for the development of market sustainability and gain some competitive advantages from the other boot companies in the UK (Basturk et al., 2014).

Economic Condition of the UK

The United Kingdom is a constitutional monarchy and the monarchy runs with the help of parliamentary system. One of the strong points of UK is the speed of formalities. Approximately thirteen days are required for the entire set up for the company. This is a positive side of the political scenario of UK (Terpstra, Foley & Sarathy, 2012). The low taxation policy makes the country in form of environment investor –friendly. Most of the other countries love to do their business in the UK as the nature of the business field is big and companies can get enough fame from the country (Basturk et al., 2013). A transparent investment scenario is present in the nation and rather than other countries this level of transparency, responsibility, power and investment protection are allowed by the nation and a comparison between all of them shows the superiority of UK.

Table 1: Comparison factors for the stakeholders

(Source: Santandertrade, 2018)

There are some positive aspects of UK’s politics and the most important aspect of their politics that helps the business culture is the fair atmosphere of the country. In the inner-working condition in business, the UK has the opportunity to do this thing. The government is very much proactive and working for the betterment of the nation. Political stability is present in that scenario (Peng, 2016). Through advisers declare about well-hidden corruption in the nation and in the aspect of Brexit the economic climate also change for the business scenario and that is the main concern and negative aspect of the nation.

The economic condition of UK is highly developed. This is the fifth largest national economy country in the world so the GDP growth and the sectors of GDP accumulation are high. The composed form of per capita income is $40,049 and in the section of the global economy, the countries position is high and inward foreign direct investments are important in that case. The influence of large population helps the small markets to be profitable (Kolios & Read, 2013). The free market allows foreign direct investments in an effective manner and influence of diverse economy helps the situation for the economic development of the country. United Kingdom has received around USD 20 billion in 2017 in the aspect of trade and development aspect (Bargain et al., 2015). Three cross-cultural merger and acquisition deals influence the business market scenario of UK. In spite of Brexit situation, the nation has one of the strongest economic backgrounds. The largest share of FDI flow goes in the UK and the current investment stock of GBP 1 trillion comes from the EU member states (Kemp et al., 2016).

Table 2: Foreign Direct Investment and economic condition of UK

(Source: Santandertrade, 2018)

The tax exemption benefits are the concerning aspect for the UK and in this zone, companies are willing to spread their business in the UK. Companies can contact with Department of Trade and Industry for the further acceleration of business and through their business strategy real investment can be made (Peichl, Pestel & Schneider, 2012).

Political Stability of the UK

The high influenced social class is the concern factor for the nation. High societies are noticed in this nation and most of the people are from well-based backgrounds. In most of the cases, native people are there and they have the same mentality as well and that that has impacted on the aspiration of people. The class of social understanding and the class of behavior is the significant matter of business expansion. In modern situation the level of cross-cultural aspect is important and people from different culture enrich the situation in the UK. The density of the population is high. 64.2 million Inhabitants as per the density signify the social establishment of UK (Berthon et al., 2012). In this country, every 1out of 8 people are from a different nation, so cultural assimilation is there along with the standard high living (Okoro, 2012). Ugg Boots is a product that people use for the necessity reason. However, it will be interesting to see how much social dependency will be persisted by the nation. Social unrest becomes a significant option for the UK. In most of the cases, due to the unrest situation, some of the products are not making their market. So, better man-management and promotional innovative options are needed for the successful market orientation in the market.  

As the nation is economically developed, thus better technological innovations are quite common in this nation. Through the technological channels, the business effectiveness reaches to people. The situational growth of the product and get better technology for the product is the concern reason for the nation. This innovation in technology is important. In the UK, intellectual property rights are effectively implemented (Walker et al., 2014). Through this property right act, the promotion of the product will be easier and people can get to know about the products. A plethora of the internal growth of market stimulates growth and that is the reason most of the product internal orientations are suitably handled (Kremer & Symmons, 2015). In comparison to the US, the product development is not so much aggravated in form of upgradation but the change in customer engagement is highly observed in the UK.

Conclusion

Therefore, the report can be concluded that Ugg Boot needs to follow these marking guidelines of political, economic, social and technological aspects to make a sustainable condition in the UK. In the UK, most of the cultural changes will be noticed, and as per the sales rate in Australia, marketing structure in the UK will not match at the initial time. However, as per the political and economic support from the nation, it will be a health marketing scenario for Ugg Boots. Customer engagement policies, better-promoting aspects along with the innovative way of promoting the products are completely depends on the company. Peoples’ thought and cross-cultural accumulation help the process or market acceleration for Ugg Boots.

References

Australian Ugg Boots Pty Ltd. (2018). Australianuggboots.com.au. Retrieved 13 April 2018, from https://www.australianuggboots.com.au/en-au

Bargain, O., Dolls, M., Immervoll, H., Neumann, D., Peichl, A., Pestel, N., & Siegloch, S. (2015). Tax policy and income inequality in the United States, 1979–2007. Economic Inquiry, 53(2), 1061-1085.

Basturk, F. B., Nekoofar, M. H., Günday, M., & Dummer, P. M. (2013). The effect of various mixing and placement techniques on the compressive strength of mineral trioxide aggregate. Journal of endodontics, 39(1), 111-114.

Basturk, F. B., Nekoofar, M. H., Gunday, M., & Dummer, P. M. (2014). Effect of various mixing and placement techniques on the flexural strength and porosity of mineral trioxide aggregate. Journal of endodontics, 40(3), 441-445.

Berthon, P. R., Pitt, L. F., Plangger, K., & Shapiro, D. (2012). Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy. Business horizons, 55(3), 261-271.

De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes. Sage Publications.

Kemp, S. J., Smith, F. W., Wagner, D., Mounteney, I., Bell, C. P., Milne, C. J., … & Pottas, T. L. (2016). An improved approach to characterize potash-bearing evaporite deposits, evidenced in North Yorkshire, United Kingdom. Economic Geology, 111(3), 719-742.

Kolios, A., & Read, G. (2013). A political, economic, social, technology, legal and environmental (PESTLE) approach for risk identification of the tidal industry in the United Kingdom. Energies, 6(10), 5023-5045.

Kremer, P. D., & Symmons, M. A. (2015). Mass timber construction as an alternative to concrete and steel in the Australia building industry: a PESTEL evaluation of the potential. International Wood Products Journal, 6(3), 138-147.

Okoro, E. (2012). Cross-cultural etiquette and communication in global business: Toward a strategic framework for managing corporate expansion. International journal of business and management, 7(16), 130.

Peichl, A., Pestel, N., & Schneider, H. (2012). Does size matter? The impact of changes in household structure on income distribution in Germany. Review of Income and Wealth, 58(1), 118-141.

Peng, M. W. (2016). Global business. Cengage learning.

Terpstra, V., Foley, J., & Sarathy, R. (2012). International marketing. Naper Press.

Walker, T., Jeffries, C. L., Mansfield, K. L., & Johnson, N. (2014). Mosquito cell lines: history, isolation, availability and application to assess the threat of arboviral transmission in the United Kingdom. Parasites & vectors, 7(1), 382.

Zimmerman, A., & Blythe, J. (2013). Business to business marketing management: A global perspective. Routledge.

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