Ikea Case Study on Marketing

This report is Part 1 of assignment for Marketing MBA 565-MBOL1 to Dr. Stephen Baglione

Course Description This course involves an integrated analysis of the role of marketing within the total organization. Specific attention is given to the analysis of factors affecting consumer behavior, the identification of marketing variables, the development and use of marketing strategies, and the discussion of international marketing issues. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents:   University policies: You must be

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

This is an individual assignment as a single report in two parts. Candidates are encouraged

STUDENT HANDOUT ASSESSMENT PART ONE MARKETING RESEARCH REPORT Unit of Competency: BSBMKG501B - Identify and Evaluate Marketing Opportunities /35 C or NYC

I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledge and disclosed in the paper. I have also cited any sources from which I used data, ideas of words, whether quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.

The brand uses several cost-saving strategies like recycling. Many waste resources are used to make new products.

Armstrong, G. Brown, L. Burton, S. Deans, K., & Kotler, P. (2010). Marketing (pp. 4-40). New South Wales: Pearson

This dissertation is submitted in partial fulfillment of the requirements for the Degree in Marketing Practice

Being one of the leading Companies in Furniture, IKEA offers an extensive variety of decently composed, useful home outfitting products at costs that are reasonable to individuals who are attracted to their Swedish design. This is the real trick which led to IKEA’s success, advancement in product design development, targeting proper designers and suppliers to how they offer their products in IKEA stores. Over the past six decades, IKEA went from the cozy forested areas of southern Sweden to being a one of the largest competitors in the retail industry in over 40 countries around the globe. The story of IKEA began in 1926 when organizer Ingvar Kamprad is conceived in Småland in southern Sweden. He is raised on 'Elmtaryd' where he began his entrepreneur skills by selling matchsticks as a source of income where he discovered bulk purchases at discounted rates and learnt how to expand his inventory which in turn led to IKEA. IKEA expands their markets, for example, Japan and Russia. Everything from the

Barbara J. Phillips and Edward F. McQuarrie Marketing Theory 2004 4: 113 DOI: 10.1177/1470593104044089 The online version of this article can be found at: http://mtq.sagepub.com/content/4/1-2/113

In order to achieve sales forecast, IKEA Malaysia has to develop an appropriate marketing strategy so that it can generate sales from the target market for its future. These 7ps of marketing tools are product or service, pricing, place, promotion, people, process and physical evidence.

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.

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.

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: