Marketing Mix of Ikea

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Marketing Mix 1. Price IKEA’s strategy is based on cost leadership. Across markets where it currently has a presence, products are sold at low prices. Prices are 30 to 50% lower than competing products. Price variations are only a result of fluctuations in exchange rates. This penetration pricing enables IKEA to gain significant market share. Low prices are a result of large-quantity purchasing, low-cost logistics, store location in suburban areas and a DIY approach to marketing. IKEA also benefits from economies of scale and healthy supplier-firm relationships. IKEA enters into long-term contracts, provides leased equipment and technical support in exchange for exclusive, low-cost manufacturing from suppliers. For new…show more content…
room magazine This is a European IKEA magazine that is available in all stores in Europe. It is also mailed out to 150,000 IKEA Home Card holders in the UK. It contains lifestyle features on IKEA customers and how they live, product news, and tips and ideas for the home. Similarly to the catalogue, this is produced centrally, but each country has control of a number of pages to communicate their country specific messages. IKEA food services The IKEA restaurants are important in providing our customers a place to eat and relax while shopping. There are 3 different concepts offering food in IKEA stores in the UK currently. The main restaurant serves meals based on our Swedish heritage, with traditional dishes such as Gravadlax and meatballs with Lingonberry relish. There are also bistro areas which sell localised snacks such as; hot dogs in the UK, baguettes in France, and pizza in Italy. The IKEA Swedish food markets are also in every store and encourage customers to take home a taste of Sweden. The wide range of traditional Swedish foods helps customers understand our Swedish origins and also lives up to our low price promise. internet is the global site where you have an overview of IKEA as a company. From the global site it is possible to access all local sites. One of the main tasks of the internet is to display product
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