Case Analysis about Marketing Mix and Its Trends of IKEA

3551 WordsJun 1, 201315 Pages
Case Analysis about Marketing Mix and Its Trends of IKEA 1. Analysis of IKEA’s Marketing Mix There is no doubt that organization or managers have not the ability to change and control external factors of marketing environment, such as consumers, suppliers, competitors, cultural differences, political differences and economical states. However, organization can develop reasonable strategies for marketing mix which are controllable elements in the marketing environment. Organizations can take product, price, place and promotion into consideration when they make plans for services and products to avoid mistakes and risks (Mind Tools Ltd, 2013). IKEA also use marketing mix tools to ascend high level. The first part of this report refers to how…show more content…
IKEA take low price into consideration when output each products and pursue Cost Consciousness intensely. This is the major breakthrough of IKEA weight price and products characteristics’ importance reasonably. It is a common phenomenon that most companies fail to conquer the problems from cost management and cost accounting. Therefore, they have higher price which is based on costs than competitors and they are in an inferior position. On the contrary, IKEA lows its cost at each production process and make spend be meaningful. It is no denying that good quality, excellent design, exquisite packaging are more likely be preferred by customers. However, these features of a product also mean that people have to pay more money to own it. To decrease the cost and price of products, firms are forced to product different levels of products or product medium-priced products or low-end products. Nevertheless, this traditional idea may cause thinking set which is not beneficial to creative design. 1.1.3 Specific packaging: flat- packs and self-assembly Packaging is a vital role in production process. Packaging stage can bring more profit for organizations or decrease their cost of producing. Nowadays, many firms are willing to spend more money on packaging their products because they can get added value through packing. On the other hand, clever packaging may decrease material costs and transportation costs. The majority of IKEA’s furniture is flat-pack and they are

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