IKEA: Target Market and Positioning Strategy

This paper aims to demonstrate a detailed description of the elements of ‘IKEA’ company based on its famous name in the furniture industry.

IKEA to maintain their leading position will keep diversifying their products offerings always based on the “democratic aesthetic”. They will continue offering aesthetic, quality and low-priced products. Moreover, they will expand IKEA concept by opening new to stores to make their furniture available for everyone. For instance, from now to two years IKEA planned to make available to 80% of French population a store at less one hour of road. They will focus at developing its online activities to compete with the pure players. Now, most of their products are available on the IKEA website. The group has developed the “click and collect”, which is available in mostly stores. To accelerate the e-commerce transition IKEA planned to integrate external operators

Wal-Mart 's third phase of its marketing plan to market and sell furniture in the new Wal-Mart furniture stores will describe the attributes of its product and services in greater detail than in the first two phases presented by Team B. Furthermore, the third phase will describe the pace at which Wal-Mart 's newly proposed product line will move through the product life cycle as well as the factors that will likely impact its movement. Team B will be laying out the product life cycle and the impact it has on the marketing of the product. This paper will identify the positioning and differentiation strategies for Wal-Mart furniture stores. Additionally, the paper will identify the appropriate

The basic market segmentation bases that IKEA uses are income level, age, family life cycle, lifestyles, and benefit seeking. Even though IKEA doesn’t have the best quality furniture, it has a great value because of its incredibly cheap prices. IKEA furniture at times is referred to as “start up furniture” meaning furniture one buys for their first home.viii This is why IKEA focuses on the demographics of age, income level, and family life cycle when they are segmenting their market. IKEA is basing their stores strategy 3 around attracting young, lower income individuals. College students and young adults, who tend to be in the low-income category, are a big target market for IKEA because these are the individuals who are looking to buy furniture for the first time. They are not looking to spend a lot of money because they are still unsure about their futures. College students and young adults are just looking for good, cheap furniture that will work for the time being. IKEA is able to take advantage of this target market in College Park, MD because there are many low income, college students and young adult in the area. The other big demographic that IKEA focuses on is family life cycle. IKEA knows that new families need furniture to fill their new homes, but don’t have a lot of money to do so. With that being said, IKEA really

Generating awareness in a new country is a very expensive task whereby you need unique techniques to help the community recognize IKEA as a company and the products it sells. The most common methods used were TV and radio advertisements, sending marketers to the markets to do the marketing one on one with the customers or the buyers in the community, and by putting up billboards and posters around urban areas. Due to its exposure in different countries, they had to train employees who have been working with the company for several years to learn foreign languages to help expand the company. This idea helped the company venture into a new country and do the marketing.

growth or the decline of the expansion of the IKEA branding in the United States.

IKEA is a worldwide expanded company. They enlarge their showrooms to North America, Europe, Australia and Asia. Customers can check out IKEA’s product in the show rooms and also by checking out IKEA’s websites to get their selected products to be home delivered. This is an effective way of selling their products as customers who are busy with their own work can purchase their preferred

This analytical report has been written on behalf of IKEA and will address and assess the six marketing processes used by IKEA and their impact on the businesses overall success. A marketing plan is one of the most important processes for businesses to undertake as the development of a marketing plan will offer a reference document to assist businesses in executing their marketing strategies. It will also help to develop a structured approach to creating services and products that satisfy customer needs and wants.

IKEA is the largest furniture chain in the world, and in 2011 the Swedish company operated over 270 stores in 25 countries. In 2011 IKEA sales soared to over $35 billion, or over 20% of the global furniture market. Most of its stuffs believed IKEA will massive growth throughout the world in the coming decade because IKEA could provide what customer wanted: good design, and good made contemporary furniture with an affordable price. In one word, IKEA’s global approach focuses on simplicity, attention to detail, cost consciousness, and responsiveness in every aspect of its operations and behavior. (Jones, 2013)

The stores have restaurant, childcare facilities and plenty of parking. Customers can drop off their kids at the playroom and have delicious meal when they are tired. All of these not only provide customer with a comfortable shopping environment but also let them make an ‘IKEA trip’ and enjoy the fun of buying. Besides, IKEA’s distinctive show rooms help creating differentiation. Products are strategically placed in different small spaces like rooms which allow customers imaging this furniture in their own home. This makes everything looks more attractive.

The IKEA Group, one of the world’s top furniture retailers, has emerged as the fastest-growing furniture retailer in the US. Its unique business strategy has given it its strengths for its success today. However, like all strategies, IKEA’s strategy has its own flaws that can pose as weaknesses. IKEA also has a lot of opportunities in the marketplace such as expansions of their company and threats such as competitors in the same industry.

In PEST analysis, we will look into what will be affect by the business environment. It includes political environment, economical environment, social environment and technological environment.

Manhas (2010) states that successful positioning can only be achieved by adopting a customer’s perspective and according to him, in developing a positioning, the company has to consider four things: the target market, differentiation of the product, the value of this difference and the ability to communicate this to the target market. A quantitative way to assess what attributes

In august 2008, IKEA had total 253 stores where 560 million people visited. Here the total sales became 23 billion Euros. Considering 20% sales profit here IKEA’s average customer per store and cost per store are given below:

IKEA’s strategy before the mishaps in America could be characterized as going against the norm charting their own path to success using low priced manufactures to secure lower selling prices aimed to target those who were of older age and of middle class standing. Their new strategy was to target those of a younger demographic, young married couples, college students, and 20-30 something singles. By reemphasizing design, promoting through hip quirky advertisements, and encouraging consumers to do away with their old furniture, IKEA revenues doubled in a four-year period. IKEA today has adapted somewhat of a local customization strategy where their store layouts will resemble that of many local household layouts as proven by their success in China where they failed to expand beforehand. They also keep their prices extremely low in some areas as China by sourcing a large percentage of products in the area of operation.