To implement new target marketing and position strategies at IKEA to increase company’s profits. The purpose of this report is to introduce new ideas of target market and position strategy at IKEA, analyze IKEA’s target market, understand the business and improve their marketing strategies by suggesting an implementation of strong online presence and increase profits.
To suggest ideas on how IKEA can improve their marketing strategies, we need to first remember their vison their mission and what the ultimate goal is. effective positioning strategies allow companies and organizations alike to gain and sustain superior business performance (Cravens & Piercy, 2009). IKEA’s target market is those individuals that make up the global middle
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SOURCES AND METHODS: the report contains information obtained from publications on different websites and secondary sources.
SCOPE: IKEA has already an online presence but it needs to be stronger; as technology involves, the company has to find new ways of innovation, the report will suggest specific online marketing strategies.
REPORT ORGANIZATION: first, the report explains how the business runs, analyzes IKEA’s target market, and suggests how to have stronger online presence.
UNDERSTANDING THE BUSINESS:
• IKEA has 298 stores in 26 different countries (IKEA, 2015). The company’s vision is “to create a better everyday life for the many people” (IKEA, 2014, para 1).
• IKEA’s goal is to make costumer’s lives easier by providing them modern, innovative, inexpensive products which they use during their daily home activities. (IKEA, 2014, para 2).
• IKEA’s prices are 30-50% lower than their competitors’ prices.
• IKEA leads the furniture market with simple, functional designs as they use designers to create their products using innovative techniques and unique materials (Cravens & Piercy, 2009
• ANALIZING TARGET’S MARKET:
• Knowing which consumers in the market to target is an essential decision of market strategy (Cravens & Piercy, 2009). Understanding IKEA’s targeting strategy helps the company with their efforts to change (Cravens & Piercy, 2009). IKEA’s target market is the global
IKEA is a world famous furnishing company known for selling Scandinavian-style furniture and other home-based goods. The company has over 230 stores, with operations carried out in over 42 countries with well over 70 000 employees. The stores themselves can occupy 410 million shoppers per year. It is a Swedish based company built on the idea of offering a wide range of well-designed, functional home furnishing products such low prices, that a majority of people will be able to afford them. The IKEA group is currently solely owned by the INGKA Foundation through a holding company, unlisted on any stock exchange.
Considering the previous mission statement with a unique customer vision IKEA is clearly antagonistic with specific customers’ needs. That lack of adjustment to customer needs is the main reason for not getting the same results in China than in Northern Europe.
Evaluating SWOT of IKEA, the company has developed a strong strength in the industry through effective global marketing strategy that would assist, and continue to help them gain more grounds globally as indicated in the outlined strength. The company has great future opportunities for business expansions in the market as well as developing nations; having said that, their weak point is quality, which is a concern as customers can discouraged because of poor quality, poor relationship with employees can be detrimental to efficiency, their competitive market strategy is low cost product, but create standardized products as such will attract
IKEA is rumored to be a very standardized retailer, i.e., a certain set of marketing strategies is used that are the same around the world. This indeed sets IKEA, operating on markets in Europe, US as well as Asia and Australia, apart among international retailers. Often the theoretical conclusions in international
With such situation, IKEA faces several challenges in this competitive market. In order to prevent to be substituted, IKEA need to improve on marketing strategy. I have two ideas of marketing strategy which is online store and IKEA collaborate with real estate.
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 products online whenever they want to. Thus, this is an advantage for both customers and IKEA’s company as their sales doesn’t stop at the showroom itself.
IKEA’s clear vision is to offer well designed and useful home furnishings at low prices so many customers will be able and capable to afford them. IKEA designs exclusive products that meets firm requirements for task, well-organized delivery, excellence and has a good impact on the environment.
To begin with, IKEA is an established global brand which has managed to attract main consumer groups, while with its vision "to create a better everyday life for many people", it promises and offers the same quality and variety around the world. Moving on, it is reputed for its strong concept and its "democratic design", since it offers a big variety of
This low price strategy is coupled with a wide range of well designed, functional products. IKEA 's products cater for every lifestyle and life stage of its customers, who come from all age groups and types of households. This is vital in times when the retail sector is depressed, as it increases IKEA 's potential market. The customer knowledge. Constantly using innovations to drive costs down.
Ikea 's management idea is "provide various kinds, beautiful and practical products, promising that most people can afford the household articles for use". In
IKEA is a manufacturer of home and business furnishings who offer interior furnishing products to consumers in several countries across the globe. Before IKEA plans on expanding and entering any new market, they are required to obtain a clear understanding of what consumer behaviour and requirements are in that particular market. There are basically two types of Markets which include Consumer Market and Business Market.
IKEA (2011) has found a wide market in the discount furniture industry. The mission is simple- provide furniture to help everyone decorate as they like (IKEA, 2011). The company always strives to lower costs and pass savings to consumers (IKEA, 2011). It provides exceptional products which enabled the company to increase sales through the recession (Manners, 2009). However, IKEA’s advertising is limited to regional store locations and personal recommendations (Peter & Donnelly, 2009). This level of advertising leaves consumers oblivious to IKEA’s brand. This analysis recommends that IKEA
The author believes that we as customers become part of Ikea because we have to participate in the process. Ikea thinks it is good for us if we learn to build our furniture by collecting them from the warehouse, haul it onto the car roof or boot and take it home, all by ourselves. This participation means we belong more to the Ikea brand than any other brands in our lives. We indirectly became part of Ikea’s brand and business model and we are one of the reasons its prices are kept low and lower. In a way, this is one of the key ideas behind Ikea and this is why it is different from other furniture retailers. This is an innovation that Ikea owns and this is what differentiates it from the competition.
IKEA established itself as the largest furniture retailer in Sweden by the early 1970s by reinventing the wheel of furniture manufacturing at that time. Majority of furniture manufacturers in Sweden produced expensive products with designs that were basic or passed down generation to generation, additionally other manufacturers stores where located in downtown congested areas. IKEA’s strategies which consisted of low cost low priced furniture, brave intricate designs, self-assembly,