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Consumer Profile & Brand Analysis Consumer Behavior & Marketing Consumer Profile & Brand Analysis Consumer Behavior & Marketing Strategy Fall 2018 Lauren Gronbeck, Ivy Peterson, Haley Shoebotham, Laney Spears UGG Australia was founded in 1978 by Brian Smith, a laid-back surfer with a dream of introducing a popular Australian product to Californians. His million-dollar idea was a comfortable slipper intended to keep feet warm after coming out of the cold waters. Despite the initial surfer target, the shoes gained attention from the apres-ski crowd and eventually diffused to the general public as everyday leisure boots. UGG took advantage of this shift by embracing mass-market distribution and prominent label placement. As A-list celebrities adopted and were photographed wearing the UGG logo, the boots became trendy for teen girls. After enjoying several years at the center of fad fashion, UGG boots became seen as passe and mainstream. Recently, in 2017, UGG rebranded once again to include menswear and couture styles. UGG has shown intent to shift away from its reputation as a mainstream, outdated clothing brand sold in discount stores into a more trendy, upscale, and stylish boot worn by the likes of Urban Outfitters shoppers and celebrities. To do this, UGG has attempted to transition its classic products to brick and mortar stores, and has partnered with retailers like Urban Outfitters in hopes of getting its boots on the feet of trendier consumers. It has also begun to break into the men’s market with an integrated marketing campaign using Tom Brady as a brand ambassador, and focusing on “UGG men of character,” which celebrates men who demonstrate passion, talent, and dedication in their everyday lives. UGG prides itself on the consistently delivered promise of high-quality, luxurious sheepskin. The product quality has maintained a positive impression amongst women and users who believe that UGG offers a better value for its price over time. However, UGG fails with consumers due to inconsistent brand identity, “basic” stigma, knock-off replicas, female focus. Following our research findings and analysis, we propose UGG Australia refocus its brand identity by targeting higher-end distribution channels, crafting refined in-store experience, and securing social media sponsorships with mid-level influencers to advertise new products. This allows UGG to position itself with trend leaders of a higher income target market and generate authenticity around the brand through stronger personal connections. Our goal in this proposal is to reposition the brand as relevant to a new target market, while maintaining accessibility of classic styles for current consumers through tiered product categories and appropriate outlet selection. Current consumer profiles fit feminized, middle class stereotypes. The current consumers of UGG shoes include a broad range of middle and upper-middle class females between the ages of 13-45 years old. In order to properly analyze the current consumer base, we have used primary and secondary research to identify two primary profile segments: suburban moms and high conformity teens. In order to analyze these two groups in more detail, we have constructed two fictional consumers, Stacy and Katie, to better understand their lifestyles and behaviors. These consumers exemplify the attitudes and beliefs of Nielsen PRIZM Premier Lifestage Groups, “Kids & Cul-de-sacs” and “Striving Selfies.” According to Nielsen PRIZM Groups, members of the “Kids & Cul-de-sacs” segment are upper-middle class, suburban married couples with children. Mostly homeowners, this demographic resides in newly developed neighborhood subdivisions. Claritas360 demographic data identifies 1,711,329 American households clustered in the suburbs of the upper-east coast that belong to this segment. “Kids & Cul-de-sacs” members are composed of college educated, white-collar professionals with median income of $74,573 and between the ages 25-44. These consumers typically have large families of school-aged children, and as Achievers tend to have a “me first, family first” mentality. Therefore, spending habits are largely devoted to child-centric products and services. These consumers are likely to own an Acura, eat at Jason’s Deli, and shop at New York & Company. Free time is spent attending children’s soccer games or playing tennis. Typical media consumption habits are above average, visiting Disney.com, watching DIY Network, and keeping up with their favorite celebrities on Access Hollywood. Meet Stacy, the “Suburban Housewife” The first consumer profile is Stacy, a 37 year old Caucasian female. Stacy is best categorized as an intersection of a VALS Achiever and a “Kids and Cul-de-sacs” segment member of Nielsen PRIZM Groups. As a busy suburban mom of three, Stacy lives in Belmont, a kid-friendly neighborhood outside of Boston, Massachusetts. Stacy enjoys a comfortable, upper-middle class life supported by her husband’s income, but as a stay at home mom, assumes all of the responsibilities of childcare. She is constantly on the move: running household errands, shuffling kids to and from activities, and trying to somehow make time for herself. Stacy purchased her first pair of UGGs in 2003 after seeing them featured on Oprah Winfrey’s “Favorite Things” list. Quickly falling in love with the comfort and warmth, UGGs became her favorite shoe throughout her pregnancies and life as a new mom. During her daily juggling of kids’ sports, school, and social schedules, comfort and functionality take precedence over style. While Stacy does value her appearance and looking good, she realistically does not have the time every day to put together outfits and accessories. While UGGs are her go-to for household chores and quick errands, Stacy would never wear her UGGs to weekly book club or monthly date night. She regularly wears her UGGs to keep warm while walking the family dog in the morning, driving carpool to her kids’ soccer practice, or running to the grocery store after her weekly yoga class. At the end of the day, after putting the kids to sleep, Stacy unwinds in her UGG slippers with a glass of wine, and reads the latest edition of People and Extra magazines. To the “Stacy” demographic of consumers, owning and wearing a pair of UGGS makes them feel relaxed and comfortable. The warmth and softness of the classic style fur lining are psychologically reassuring and create a therapeutic calming effect for a stressed mom running errands and juggling childcare responsibilities. Stacy believes UGGs are a good value for her money, as they are durable, weather appropriate, and made of authentic, high-quality materials. Consistent with the Achievers mentality, Stacy’s attitude and beliefs generally are hard-working and productivity focused. UGGs fulfill her needs of practicality, convenience, and comfort. The neutral colors and style are versatile enough for athleisure outfits, casual jeans, and even sweats. The YouGov Brand Index reveals that in 2018, the UGGs Impression Score amongst women almost doubled from a rating of 10 in 2017, to high of 17 in 2018. This favorable impression amongst women is derived from the belief in product quality and value for money. UGGs are not a regular purchase, as their durability do not necessitate frequent replacement. The boots are often purchased in anticipation of the winter season, or every few years to refresh the softness of the sheepskin or for a new color. Stacy is aware cheaper alternatives such as Emu, Bearpaw and Minnetonka exist, but believes “you get what you pay for” with footwear so is willing to pay premiums. Using price as an indicator of quality, UGG reinforces the notion of luxury splurges as being accomplished and deserved; a self-concept of upper-middle class. The second key consumer group of the UGG brand are teens and young millennials who fall under Nielsen’s “Striving Selfies” demographic segment. According to Nielsen PRIZM, members of the Striving Selfies segment are young singles and couples with middle class status and working towards a college degree. While they may not have large incomes now, median ​ ​ income being $35,402, this segment shows great future potential. They often spend what money they do have on designer shoes and leisure activities. Making up 1,769,183 US households, these consumers typically reside in centers of satellite cities, renting apartments rather than owning houses. These consumers are avid social media users and have the highest tech use. Media habits include watching MTV.com, using Groupon, and watching Jimmy Fallon or MTV2. Meet Katie, the “Basic Fad Follower” Katie is a first year college student at UVA from Harrisonburg, Virginia. She comes from a middle-class family that pays for her tuition and housing, but maintains a job at the local Panera Bread for spending money. Any free time is spent hanging out with friends, listening to Top 40 hits and binge watching Keeping Up With the Kardashians. Katie follows fashion trends, but waits until peak popularity to adopt trends, as she has a high need for conformity. She regularly shops as a social experience with her friends at department stores, but purchases online for the best deals. She received her classic tall style chestnut UGGs as a Christmas gift years ago at the height of their popularity, and continues to wear them for their comfort and warmth. Katie values her appearance and social reputation, but due to time restraints, is selective in when and where she puts forth effort into fashion and makeup. She is confident wearing little-to-no makeup with comfortable leggings and big t-shirts to class, but never out to a party or event. With a busy schedule juggling school, work and social life, Katie often throws on her UGGs on the way to class, late nights in the library, or getting a Bodo’s bagel after a night out with friends. For the “Katie” demographic, wearing UGGs do not make them feel fashionable, but do make them feel comfortably confident.
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