1. Executive Summary 2. Situation Analysis a. Market/Company situation b. Market segments c. Competitive situation d. Barriers to entry e. Strength of competitors f. Sustainable advantages g. Pricing issues 3. Macro Situation a. Economy b. Social/cultural 4. SWOT Analysis a. Internal factors b. External environment c. External threats d. Internal weaknesses 5. Issue Analysis 6. Mission, Vision, Values 7. Market Analysis a. Primary market b. Secondary markets c. Tertiary markets d. Prospective customers 8. Proposed locations 9. Action Plans a. Brand awareness action plans b. New location action
Promotion - In terms of promotion, IKEA follows a marketing mix. The data for this analysis is available in the student info website. Although the funding information is not readily available in student website, the information can be gathered from
The purpose of this exercise is to provide a framework for you to analyze the marketing environments and opportunities for Company G. These analyses provide the rationale for the decisions you make regarding your marketing strategies.
* IKEA’s low cost structure has been the very core of its success. It’s low-cost and high-quality strategy fits with the current state of the economy. Offering convenience factors within IKEA’s stores would fit well with IKEA’s low cost structure. It maintains its low-cost business model by creating a different furniture shopping experience. IKEA supplies customers with all possible materials needed to complete their shopping when they enter the store (that are, measuring
Some of these strengths include great core values, their human and social capital, they carry a wide variety of products that have a strong brand name, and their expansion through global expansion and investment.
Everybody has strengths and weaknesses including companies. Bring the focus out on your strength and amplifying that. This will help customers to associate your strength with the business identity. Your strength will become like your brand recognition and that is important when defining yourself.
A company’s strengths are found within their own company and members. Depending on how well and to what extent a company uses its resources determines just what its strengths are. These strengths may be what they do better than other companies, what they do different from other
IKEA has adapted to the operations function of a business. This function is the main function of every company. This key function, of which IKEA has adapted to, is the business function responsible for managing the process of creation of goods and services. The operations function is responsible for organising, coordinating, planning, and controlling the resources that are required in the production of goods and services. IKEA has effectively implemented this function by understanding the needs of customers. In particular, this applies to those who have a lower income, and/or, limited space. IKEA’s employees within the product design and product development departments, focus directly on the price and quality, as well as the design and function of products. Elements of the design are typically agreed on within the factory itself, this is where manufacturers and designers work together, to create a product with regard to the greatest use of raw materials and manufacturing opportunities. IKEA’s operations have proved effective as in 2013 it earned $35.5 billion. IKEA has a large amount of suppliers, greater than 1300. IKEA purchases most of their
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
IKEA has 328 stores in 28 country (Inter IKEA Systems B.V. 2016). The countries includes North America, Europe, Russia, Asia and Australia. Europe has the highest IKEA stores in the world in which it has 229 stores and 19 distribution centre. Follow by North America has 52 stores of IKEA and 7 distribution centre. The third country that has the most IKEA stores is in Asia in which it has 27 stores in total and 5 distribution centre. Furthermore, Russia has 14 stores of IKEA company and 1 distribution centre. Lastly, Australia has 6 stores and 1 distribution centre.
IKEA-products are extremely popular, there are very few people that never heard about the yellow-blue brand. Moreover, it will (even) be hard to find people that have no products from IKEA in their houses. This makes us wonder: “Why is IKEA so successful?” We will analyze IKEA’s marketing department to answer this question. We think IKEA’s marketing strategies are very unique and therefore an important factor causing IKEA’s success. Our main belief was that IKEA is a company with a great proficiency in pricing. However, after some readings about the company we discovered all the 4p’s of the marketing mix are very well developed and still very innovative. IKEA’s marketing strategies are based on its democratic design statement; “Democratic design brings good design to the many
Extensions are usually introduced as they have more advantages and these can be transferred to a new product, with the same attributes but in a different form.