IKEA: Target Market and Positioning Strategy

1157 WordsJul 13, 20185 Pages
IKEA: Target Market and Positioning Strategy When analyzing an organization’s target market, the first step is to understand the business and what they hope to achieve through their marketing strategies. Targeting and positioning strategies consist of analyzing and identifying segments within a given product-market, choosing which segment or segments to target, and developing and implementing a positioning strategy for each targeted segment (Cravens & Piercy, 2009). The company’s target market determines what customer group or groups the company wants to serve (Cravens & Piercy, 2009). Analyzing IKEA’s target market allows the company to determine if their marketing strategies have successfully targeted their intended customer group or…show more content…
IKEA’s positioning strategy allows the company to reach several people using different communication channels. The company uses their employees in their IKEA Catalog to showcase new products (Cravens &Piercy, 2009). The company also uses publications, advertising, IKEA website, brochures, and public relations (IKEA, 2014). The ultimate goal of IKEA’s positioning strategy is to get more consumers to come the store and buy more than they originally planned to purchase. Changes in the Industry and Strength of Strategies Weak targeting and positioning strategies result in weak marketing and business performances (Cravens & Piercy, 2009). To determine if IKEA’s targeting and positioning strategies are effective, one must evaluate how the industry has changed and the predictions of future change. IKEA finds itself in a product-market environment that is still growing. Target, Kmart, and Fly are some of IKEA’s major competitors it is estimated that even more companies may enter the market forcing IKEA to improve their targeting and marketing strategies (Craven & Piercy, 2009). Consumers are starting to change their furniture to reflect changes in their life such as newly married, starting a family, or new college student. Consumers are looking for flexible, dual purpose furniture such as sofa beds. They are also looking for furniture companies that allow them to personalize their furniture, so

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