The Expanded Marketing Mix: IKEA - highlights the 4Ps and expanded 7Ps marketing mix

As explained in the “bargaining power of consumers”, it is hard to substitute the products that are offered by IKEA. This is further intensified by the fact that IKEA has formed a brand perception that makes it stand out amongst its

In order to assess and give recommendations to IKEA, it is important to fully understand the operations and the values that drive the company, ant its philosophy. Since was founded in 1954 by Ingvar Kamprad the Swedish company’s vision of “creating a better life for the many people” inspired them to develop high quality and lower cost products in the furniture business, and almost a decade later, after they consolidate in the Swedish market, they made the decision to expand abroad opening stores in Northway and Denmark respectively (Exhibit 1). With a relatively rapid expansion the company needed to transmit their unique philosophy and created the testament of a furniture Dealer and trained ambassadors to help spread and secure the firm’s values (Exhibit 3). Furthermore, IKEA’s adopted another principle, the company preferred to focus on establish close ties with business partners and supporting their suppliers in a long-term relationship rather than just

Marketing has become more and more important, especially as the purposes of marketing expanded into performing marketing researches. Through marketing researches, it is asserted that marketing starts with a real customer need. Classic marketing, has, nonetheless, focused on making the need that will draw customers, and this stresses the advertising power of marketing (Woodall 2007, p.1284). This is also called the sales concept of marketing (Woodall 2007, p.1285). An example is how advertising lures people into buying a brand, because of the

Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2012). Principles of Marketing. Frenchs Forest: Pearson Australia.

IKEA is a multinational group founded by Ingvar Kamprad in 1943. A production oriented firm in the retail industry, IKEA designs and sells a range of functional and durable, self-assembled ‘flat-pack’ furniture, appliances and home décor at low prices (Rodionova, Z. 2017). IKEA originated in Sweden and has 370 stores in 47 countries, mainly in Europe, Asia, North America and Australia (IKEA 2014).

This 308-page book includes a table of contents, 74 references, an index of words to easily be able to locate specific topics, tables and graphs tracking changes in the marketing environment, and suggested further reading. The book discusses changes in marketing outlets and encourages managers to look at marketing in a new light. It also discusses how these changes have come about and what companies might do to apply this new approach to marketing within their organizations. This text is meant to inform. Unless one has a basic knowledge of marketing, the reading is difficult. The targeted audience is marketing managers looking to update a current marketing program. This book accomplishes its purpose of informing the reader of changes to the world of marketing and how to apply a new approach to a marketing program.

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

IKEA is an international company which designs house products and sells them in the form of ready to assemble furniture. It is one of the world’s largest furniture companies. It is founded by17 years old Ingvar Kamprad in Sweden in 1943. The most important fact about the company is the attention to control the cost of the products, which allows them to lower the prices. Even today they are continuing to expand in the world by looking forward to new product developments. The number of stores of IKEA in the United States is 14 at the moment and they aim to have 50 stores by 2013.

The process is all about been able to run your business smoothly without any delays miss takes or anyone been left out. Remember to look at this from your customers’ point of view. The process problems that are most annoying to a customer are those that are designed for the provider’s convenience, not the customer.

When it comes to marketing strategies, most people spontaneously think about the 4P (Product, Price, Place, Promotion) – maybe extended by three more Ps for marketing services (People, Processes, Physical Evidence).

A Framework for Marketing Management, Fourth Edition, by Philip Kotler and Kevin Lane Keller. Published by Prentice Hall. Copyright © 2009 by Pearson Education, Inc.

In this business report on the global retail business IKEA, it will cover the nature of business, influences on operations, operation processes, operation strategies and how the business can sustain competitive advantage. IKEA was founded in 1943 by Ingvar Kamprad in Älmhult, Sweden. The business established after and with the money his father awarded him for succeeding in his studies, Kamprad sustained a cash inflow by selling pens, wallets, watches, picture frames, table runners, jewellery and nylon stockings at reduced prices to customers. Although, later on in 1958, IKEA was introduced as a leader of Swedish Furniture Company as they started to produce local furniture by the Swedish local manufacturers, which gained positive attention from their customers. Eventually, developing flat packs of furniture for storage and self assembly, making their signature style of IKEA and turning the small business into a global sensation.

IKEA furnitures, privately held, international, low-cost home products are an inevitable part of interior furnishings at many houses in the world. IKEA furnitures are marked for its modern utilitarian design. The company has 260 retail outlets around the world and more new stores are on the line to be opened in 2008 (Dhanyasree, 2007).

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)

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,