Class activity – Extender Marketing Mix

UGG-The seven Ps mix

The origin of UGG in Australia lies in the wide-open beaches of Byron Bay - a surfers' paradise. Surfers
looked for ways to keep their feet dry and warm - and handmade sheepskin boots offered natural warmth
and comfort. The foundation was laid for a marketing phenomenon as the global brand now has sales of
over US$1 billion.
The UGG boot is now globally well known; the promotion focuses on celebrity endorsements and prices
are high to reflect the image of the brand. UGG offers online, premium outlets and, increasingly, its own
stores as places for customers to purchase just UGG products. These products include more than just
boots as there are now UGG men's footwear products and even a range of bridal shoes called 'I Do'!
The shift towards increasing its retail operation means that UGG has put more emphasis on the extended
marketing mix such as physical evidence. In its shops it has tried to match the fun-loving free-wheeling
image of its brand and its customers. Stores are in high-street locations with a welcoming exterior. Inside,
the layout is spacious, light and colorful with quality fittings and furniture. There is ample seating to allow
customers and their partners to relax as they try UGG products on for size.
In line with its retail expansion, UGG has upgraded its IT platform to improve the ordering and delivery
process. The new software will gather sales, stock and orders in a single system, collecting data from the
point of sale. From a customer-service perspective this means that orders can be filled more quickly and
a closer relationship established.

1. Define the term “extended marketing mix”. [2 marks]

Extend Marketing Mix is the traditional marketing combination of product, price, place and
promotion (the four Ps), including three other Ps:

• physical evidence – the tangible elements of a service that enable consumers to evaluate
it.
• people – an evaluation of the personnel providing the service (knowledge, competence,
politeness).
• process – an evaluation of the overall experience provided by the service to ensure that all
the elements of which it consists operate effectively together.

2. Suggest 2 ways UGG uses physical evidence as part of the extended marketing mix. [4 marks]

UGG uses physical evidence as part of the expanded marketing mix, as it has placed more
emphasis on its stores by trying to match the free and fun image of its brand and its customers.

• The stores are on the main streets with a cozy exterior, which makes people attract the
store and try the clothes on.
• Not leaving behind the interior, the distribution that UGG has given it is spacious, bright,
and colorful, with quality accessories and furniture, making customers feel like they are in
a high-end store.
• There is ample seating to allow customers and their partners to relax while testing UGG
products in size, thus giving customers comfort.

3. Explain how UGG has improved its process as part of its retail marketing strategy. [4 marks]

UGG has improved its process as part of retail marketing. It has expanded its retail line, updating
its IT platform that has improved the ordering and delivery process. This expansion of retail
marketing is considered good for the customer since, according to this same, it improves their
speed to have the product at their disposal.

The new software also collects sales, stock, and orders in a single system, collecting data from
the point of sale. What the customer can do is establish a closer relationship with the company.

10° ib Diego Alejandro Vásquez Otiniano 1/09/2021

Class activity – Extender Marketing Mix

4. Evaluate the importance of the people element of the extended marketing mix to the success
of UGG’s retail outlets. [10 marks]

The importance of the element of people in the Extended Marketing Mix applied in UGG, lies in
the fact that thanks to a study they realized the need of their future clients, surfers were looking
for ways to keep their feet dry and warm, that's where the idea lies. for the handmade sheepskin
boots that offered warmth, ensuring that the feet will stay dry and give natural comfort. The
brand was highly successful, thus positioning itself as the foundation for a marketing
phenomenon, as the global brand now has sales of more than a billion dollars.

10° ib Diego Alejandro Vásquez Otiniano 1/09/2021