Marketing Strategy Of IKEA

The well-known ‘build-it-yourself’ product design makes them progressive and makes them running ahead of the competition. IKEA is the only big brand in a category further not present in global markets, there are no real competitors operating in the same category. In 2013 775 million customers visited IKEA in 2013, and its website hosted 1.2 billion visits (4). Due to the ‘build-it-yourself’ product design IKEA is able to provide their customers with high quality and low cost products, even the customers with limited income and limited living space

IKEA is an internationally known home furnishing retailer that has grown rapidly since it was founded in 1943 and is renowned around the world for its Scandinavian style. The majority of IKEA 's furniture is flat-pack, ready to be assembled by the consumer that helps in the reduction of costs and packaging. Moreover; IKEA carries a range of 9,500 products, including home furniture and accessories. This wide range of option is available in all IKEA stores and customers can also order much of these items online through IKEA’s website (Frynas & Mellahi, 2011).

After IKEA did the low cost strategy in furniture industry and it is growth so fast recently. More than 3 franchise retailer as IKEA competitors.

Marketing strategies and the resources-A marketing strategy is the foundation of a marketing plan; it integrates an organisation’s marketing objectives, goals, policies and actions.BBQfun’s 3 types of marketing strategies-

IKEA implements new product service design and development to offer their quality products at a cheaper price to suit people’s contemporary needs and circumstances. They focus on the price and quality, design and function, environment and health of their new product service design and development to minimize waste and

As IKEA stores are located away from the urban areas, many customers may only patronize the stores during weekends. Hence, the store may be relatively quiet during the weekdays and highly packed with shoppers over the weekends. In the case of IKEA, although it adopts the self-service concept in their stores, it actually still maintains a high level of contact with their customers. To ease and facilitate consumer’s shopping, IKEA provides catalogues, measuring tapes, shopping list and pencils. In addition, IKEA stores are designed to have a ‘family shopping experience’ with customer services and facilities such as a restaurant, day care facilities and a Swedish shop. Parents can leave their kids in a supervised play area, or keep their children with them in pushchairs provided (Slack, Chambers and Johnston, 2007). The key point about IKEA is that it is different to the rest of its industry. In typical furniture stores similar products are grouped together and the final delivery of products to customers may take several weeks.

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.

Singapore has been facing constant challenges for housing space due to limited land area and high population density. The decreasing land resource will inevitably contribute to smaller living conditions for future public houses. As such, IKEA should look into incorporating more space saving concepts in their product designs. Adapting to the market trends not only satisfies the market demand, IKEA can continue to maintain their competiveness in its industry. Most importantly, being a successful pioneer will differentiate IKEA from its competitors, allowing them to achieve higher profits and maintain if not achieve better brand

IKEA, founded in 1943 by Ingvar Kamprad, has a vision “to create a better everyday life for the many people”. With its business idea of “offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them”, IKEA’s operational processes continues to focus on creating quality products and services at low costs as well as environment sustainability. (IKEA, 2016) More than being a furniture merchant, IKEA sells a brand that is easily recognizable, chic, stylish, minimalist and modern. It believes that everyone will leave IKEA store with something they like, be it the products or services. Its success is evident internationally where there are more than 300 stores in 35 countries. (Freden, 2015) The case study will

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)

As we all know, marketing plays an important role in promoting the success of the business. With the growth of 6% in its most recent fiscal year, IKEA is one of the world’s most successful retailer, as well as a powerful brand, ranking among Forbes Top 50 World’s Most Valuable Brands.

Marketing strategic planning is a management tool to help the organization does better work and understand how to compete for the future. It is a guiding process for the members of an organization developing them necessary procedures and operations in the future. Like a decisions strategy for the organization process, as the process of growing and maintaining a strategic fit between target of organization and capability and it’s changing marketing opportunities (Kotler, 2009). It involves defining a clear company mission, setting supporting goals, designing a sound business portfolio, and coordinating functional strategies.

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.

The case study is to discuss about the different strategy used by IKEA to approach their customers. It is also talking about the localization concept from a global company based on the cultural demand from different countries worldwide. IKEA is also famous for their less expensive furniture, has some other strategies to “reach” the customers based on their needs. 4 Ps concept plays a very important role on IKEA’s success besides the way of shopping which is differ from all other their competitor.

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.