Marketing Strategy of IKEA

The provided document is a project report that delves into the marketing function of IKEA, a renowned multinational company specializing in home furniture and accessories. The report discusses the importance of marketing in achieving business objectives and outlines various key aspects such as scope, objective, conversion, and vision for marketing. It also touches upon the execution of marketing strategies, analysis, and determination of turnover, market share, efficiency ratios, and cost-profit margins.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Roles and responsibilities of marketing department.............................................................3
P2 Roles and responsibilities of marketing relate to organisational context...............................6
TASK 2............................................................................................................................................7
P3 Various organisations apply marketing mix to the marketing planning.................................7
TASK 3..........................................................................................................................................10
P4 Basic marketing plan............................................................................................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Activities related with marketing are essential for the organisation so as to enable him in
maintaining an effective communication and exercise good human relation with consumers. To
adopt long term share in marketing there is need to exercise various approaches by the
management of the company, exercising various approaches will help them in having a good
market share in relation to their product. Marketing is so much necessary nowadays that
consumer only come to know about the description and extra features only through marketing,
even sales and profit to an extent depends on marketing. With the help of marketing organisation
can achieve the targets of company beyond the reality (Business Essentials Information Session,
2017). Marketing activities of the company are performed by the department which is specially
dedicated to the marketing field itself. In marketing function many types of activities are
included but the main activities are development of product, making a channel for distribution of
the product, adopting best means and methods to decide the price of the product etc. IKEA is
known for selling different kind of products internationally. It is established in 1943 and serves
its products as well as services in various countries. This organisation is well known for selling
appliances related with kitchen home décor items and furniture. It is termed as one of the biggest
retailer in furniture segment. This report will help in knowing different types of functions of
marketing and interrelation of this function with the division of the organisation. It also exercises
a relation between same industry and helps in comparison so as the employee are able to achieve
the objectives in a good manner.
TASK 1
P1. Roles and responsibilities of marketing department
Overview of IKEA
In 1943 an organisation was founded in Sweden this is known as IKEA. They run their
business within the boundaries of the country. With the objective set and clear they also have the
required workforce to cope up with the desired objectives. They sell their products as well as
design them too. Home appliances, kitchen accessories and furniture are some of the items in
which they deal. Coming to the year2008 they are getting known as the organisation who is the
largest furniture retailer across the globe (Hoványi, 2013). Due to innovativeness in work they

are able to earn huge profit from their sales, moreover their products are also environment
friendly which was icing on the cake.as per data revealed by the company they have earned
almost €35.074 billion in the year2016, beside profits they are also having assets worth around
€53.967 billion. Management of IKEA ltd is continuously making efforts to reduce their costs,
making products that are of good quality and those products also suits the needs of their
customers. This feature of their products will help the management in expanding their business
internationally and making their processes standardised.
Marketing
According to the American Marketing Association, Marketing is identify as a set of
activity, institutions and activity for communicating, creating, exchanging and delivering
offering that have value for partners, clients, customers and society at large. Marketing may be
defined as a function which is performed by the marketing department so as to make sure that
product of the organisation reaches its destination that is final consumer. It analyses all the
previous trends and the conditions prevailing in the market which will help the organisation in
making a new product with the features that a consumer wants to be in a product (Aaboud and et.
al., 2017). During this analysis organisation is also able to determine the competitors and their
strategies relating to marketing of their product. It will help them to an extent that at some point
of time they will be able to totally outclassing the competitors from the market. Marketing may
be said as combination of 4 P’s which are Product, Price, Place and Promotion.
Further discussion of 4P’s are as under: -
 Developing a product which fulfils the needs of the customers and also follows the trends
which are prevailing in the market
 Selecting that price for the product which will induce the buyer to buy the products of the
organisation
 Selecting the distribution channel which will ensure smooth as well as timely delivery of
their products in various nations
 Promoting its product in such a way that customers in the market are aware of their
offerings as well as the product lines which is currently being offered by the organisation
Marketing deals with an important aspect that is promoting existing as well as upcoming
products of the organisation. Marketing is the medium through which IKEA will increase their

market share and will improve its customer base (Harris, Schwartz and Brownell, 2010).
Marketing may be done by using the old methods or it can be affected by exercising the new
methods which are currently prevailing in the market Modern approach of marketing will best
suit the conditions which are currently prevailing in the market. Under the new method digital
marketing is used to promote the products of the market. Social media is a great example of
modern era marketing this medium, has vast reach to the audience as well as it is also considered
as a cost saving medium, by using this medium organisation can easily redress the problem of
their consumers instantly providing a chance to create the feeling of trust as well as generating
the loyalty for the organisation (Aad and et. al., 2012).
Functions of marketing department
Marketing department preforms many functions so as to achieve the desired goals within
the specified time. Some of the functions are described as below:-
Product: These are the items which are offered by the organisation to the market.
Regarding product marketing department have some responsibilities and one of the
responsibilities is that providing the distinct products to the consumers which have distinct
features as well as enhanced quality. To fulfil this responsibility there is a need to identify the
trends, strategies as well as technologies prevailing in the market; this analysis will help the
IKEA in getting new ideas as well as technology for their products. IKEA mainly deals in
Kitchen appliances, Home accessories and Furniture (Dioko, 2016).
Selling: When the product offering is done then important tasks wait for the marketing
department, this is selling the products in market so as to achieve the profits and running the
business of the organisation regularly. To sell more and more products of IKEA the managers
must assess different types of distribution channels so that their product can cope up with the
demand which is prevailing in the market. Apart from distribution channel there is a need to
advertise the products among different platforms so that it can better its previous sales and can
maintain its largest retailer tag.
Pricing: Apart from the above 2 functions pricing is the function which can increase or
reduce the sales as well as profits of the organisation. It is the duty of the marketing manager of

IKEA to decide such price which is decided keeping in view the competitors price as well as the
buyer’s capacity to purchase such product at such price. It will help them in obtaining a better
position in the market. Pricing must be done in a way that consumer of IKEA can afford the
product of the organisation (Jain, Ahuja and Medury,2013.).
Promotion: THIS includes advertising the product on different platforms. Promotion is only
done so as to make aware the consumers about the offerings of the organisation as well as their
features, this will help them in lasting longer in the minds of the customers. Promotion can be
done through using newspapers, social media, FM, Television etc. but among these mediums
social media is considered as best medium because it has wide reach as well as it is cost saver
too.
Financing: Everyone in this world to run an organisation needs funds to fulfil their
objectives. It is the duty of marketing manager to prepare a budget so that amount needed for
better performance can be ascertained and also instructing the employees of the organisation to
follow the budget while performing their duties. This will help them in reducing wastages in the
working of the employees. Funds are essential requirement to carry out different functions. It is
the duty of the marketing manager is to assess the need of amount which is required for effective
performance of their functions and prepare budget which guides the employees is to follow such
budget while give their functions (Cua, Reames and Chai, 2013).
Distribution: apart from the above mentioned functions there is also a need to identify
the supplier who will supply the product of the organisation to different stores. As IKEA deals
internationally there is a need to identify a best supplier so as to make available its product in the
market. If supply will be regular then it will be able to respond to the customer satisfaction
regularly.
P2 Roles and responsibilities of marketing relate to organisational context
Marketing is one of the important function which assist the other department of
organisation is to perform their function which effectiveness. It helps to bring coordination in
different departmental activities which reduce the chance of mistakes and duplication of efforts.
The interrelationship of the marketing department with others is understood with the help of
points which are defined below:

Role of marketing in Operational department: As we know IKEA is an organisation
which on its own design its products also therefore the marketing department should conduct
research on the available designs and selecting the designs which are trending in the market. This
research will help the operational department to bring the necessary changes in the old obsolete
designs and adopting those designs which are trending in the market. Similarly, research is also
done on the technology prevailing in the market so that changes can be handled more easily by
the organisation.
Role of marketing in Human resource department: The role which HR department can
play in marketing is appointing such candidates which are skilful as well as are having
knowledge to cope up with the demands of the manufactured products. Marketing department by
making a schedule help the organisation in finding the differences in the performance of the
employees and to suggest sound concerning of the problem. They also have to design training
programmes for employees so that employees remain up to date from the new techniques and
this can lead to more innovativeness in products of IKEA.
Role of marketing in Finance department: The finance department of IKEA perform
functions so as to cope up with the liquidity function of the organisation. With regard to
marketing department they have to prepare a budget to allocate funds in such a manner that they
will be able to achieve efficiency in the working level (Cohen and et. al., 2010). This budget will
play a role in completing the desired objective in decided amount. By completing the desired
targets as decided the profit of IKEA can be increased because of reduction in the unwanted
costs in completion of a product. Also saving here will enable marketing department in spending
more on marketing with new methods so that it is able to attract the customers as well as
outclassing its competitors ultimately making its position better and reaching at that level where
competing with IKEA will be more difficult for the competitors.
TASK 2
P3 Various organisations apply marketing mix to the marketing planning
As per the point of view of Chand, (2018) The process of distribution or marketing of
products needs specific attention of administration because production and manufacture has no
relevance unless goods are sold. 7P's of marketing mix is identify as an effective process of

integrating and designing different components of marketing in this form to see the
accomplishment of company objectives and goals. This is a very useful function for managing
market that is established by marketers themselves. These is a sector that is needed by the
manager of marketing to for having good decision which is advantageous for the company and
very attractive toward consumer. This is very useful technique of marketing in concern to get
response from the market. The marketing composition inclusive of 5(P) it means product, place,
price, promotion and promoter. Marketing is completed by only mix of these five things. There is
huge competition between IKEA and WALMART company.
Marketing mix of IKEA Firm
Product- in the beginning the firm has to decide what product should be produce an
which product has more preference for consumption. The firm is required to organise a survey to
know about the demand of customer in the market and which product can be substitute with the
original product along with its cost and margin. The product should be selected that is more
beneficial for the firm provide quality product to the consumer.
Price- the firm has to decide on what price its product should and service should be sold
out in the market (Clow and James, 2013). The firm has large number of competitors in market
on global level it has to sell its product at affordable price so that consumer use the product and
service and increase in the consumer of product and service. Price should be determining by
taking all important factor in consideration as substitute product price market for new products
and etc.
Place- IKEA firm has a great place to operate its business through online sites and reach
local markets. The firm has 25 branches around the world and operated into more than 50
countries in all over the world and also has a great chain of customer for product as well as
services of firm.
Promotion- the main objective of the firm is adopting more beneficial methods for
marketing function with the help of promotional activities like advertising, add in magazine,
adds in theatres, or on business documentary, radio or by yellow paper to promote its product
and increase in number of consumer in global level. It also provide various type of fringe
benefits like, cash rebate, vouchers and get one buy one and etc. By providing these benefits it is
very advantageous for the company to stand in international market.

People- The EKEA company has a huge brand image just because of fulfilling the need
of its consumers and having great connection with its customer. In concern with the employers
are directly connected with the people (Chamorro-Mera, Miranda and Rubio, 2014). The firm
deals with its customer in very good way that the consumer respond towards its product and
services and let people know about the product and services of the company.
Process- the IKEA firm’s procedure for sell its product is big showrooms and
supermarkets. The customer can choice its product for purchase and adopt option for paying like
debit, credit cards and paytm and cheque along with home delivery of furniture.
Physical evidence- physical evidence is refer as tangible and physical presence evident of
product its design and performance of services for these products. The firm has various branches
in many countries along particular presence of products in distribution canter.
Marketing mix of Walmart
Product- the walmart company has huge brand image for various product and services in
international market level and has big department store in connection to provide services along
with providing various kind of products. On the other hand each departmental store has various
kind of product mix.
Price- the essential factor for walmart company is to create a vision of providing its
product and services at a lower cost. The product and services of the walmart company is
affordable by the consumer of these goods and services. The company get reduce its cost of
products to provide more goods to the large number of consumer in the wide range. The
company take many decisions regarding pricing policy to improve its relationship with
customers (Caporaso,and et. al., 2010).
Place- In many countries the walmart company conduct its business the company has its
business operation in various countries and have approx. 10999 stores in all over the world and
also have stores in approx 14999 and many distribution canters. The company provide its
product in small town to big cities of country and the company has many kinds of various type
products and services in the store. Company is expanding its business distribution branches by
day by day and gets more profitability.

Promotion- Walmart organization has promote its product and services through the
internet explorer system to gain more income and promote its activity by various kind of tools
like giving adds on television, radio, print media. Business documentary and effectively sell its
products and services to customer. The company promotion also includes some benefits to
customer to increase its turnover ratio.
People- Walmart company run its company through many canters spread over the world
and has consideration to give satisfaction to its customer by make available its product anytime
on a reasonable price for the consumer of the products and also providing discount and vouchers
to its customer to increase in chain of consumer. The walmart company has a great brand image
through its customers in all over the word and the chain of consumer is increasing day by day of
this company (Banerjee, 2013).
Process- The walmart company’s branches spread out all over the branches and having
same selling procedures for selling its product by systematic way to customer of its products and
services. The company provide its product by way of supermarkets, showrooms departmental
stores and also provide various mode of payment for goods and services at a very affordable
price.
Physical evidence- The physical evidence of this firm is very large the WALMMART
company has approx 10999 branches in around the global level and provide goods and services
from these stores to international markets. Along with this the company has great product and
various type of product in every canter and provide good quality product atmosphere.
TASK 3
P4 Basic marketing plan
Marketing plans explain as the scope of marketing factors which are objectivity, targets,
strategies, and decisions and determinations also the another factors. Along with these factor
marketing plan is very useful for the manager of marketing department of the IKEA company. In
this plan the useful tool is 7p of marketing mix with concern introduce innovative planning about
the policies and structure of the company. On the other hand, the advance technology for more

productivity to increase the total turnover throughout the year. The firm also provide quality
product and services to the consumer of the product through a proper technique.
History of the IKEA firm
The IKEA firm is very big industry whose products and services are distributed in
international market having a huge brand image (Baines, Fill and Page, 2013). The company’s
production are readymade furniture, home decor, kitchen wears at a very reasonable price and
sell to consumers by online sites and via traditional markets. It is biggest furniture brand from
2008. And also has 25 branches and established in approx. 50 countries in global market. The
firm is famous for providing fashionable and luxurious furniture and home designing product at
very cheaper amount and increasing its business.
Strategy
The strategy of the IKEA firm is to improving its product quality every day for all
consumers.
Target
Target of the firm is to enhance its business growth and also increasing its market in all over the
world also in various market.
Goals
The following are various goals of the EKEA firm which are described as:-
 Giving more rebates and vouchers also fringe benefits.
 Enhance the productivity for every year approx the last year production.
 Providing more eco-friendly products to the consumers.
 Establishing more branches in global level.
SWOT analysis of IKEAS
Strengths
 The EKEA firm has its targets to
provide large number of distribution
branches in systematic manner for
attaining its goals and objective.
Weaknesses
 The main factor is fake labelling by some
fake companies.
 There is decline in the quality of the
product.

 It provides a wide range of products
and services to consumer by online
applications.
The firm has huge brand image around the
world (Babin and Zikmund, 2015).
Opportunities
 Improvement in online selling
technology.
 It can be increased the business by
starting business in luxury appliance of
kitchen grocery furniture.
 IKEA business can increase in
employment by enhancing its business.
Threats
 Huge number of competitors.
 Increase in the revenue of customer.
 Systematic legal differences.
Marketing mix of IKEA
Product- IKEA firm is biggest multinational company providing quality products along
with the services at reasonable price in all over world to its customer in global that is furniture,
interior decor, kitchen appliance etc.
Price- IKEA provides its product in wide range in all over the word and having large
chain of consumers around the global due to this the firm provides product at a possible lower
cost that is affordable by the customers of the product and services.
Place- the IKEA is very large multinational company running its business in big
countries of world and sells its product in these countries the business of IKEA is identify with
the retailer of the kitchen accessories and home appliance, home decor. All the distribution
canters are out of the range of cities.
Promotion- promotion of products and services is very essential for the organization to
tell about the product and services to the people for selling. The IKEA company promote its

product in very systematic manner. The IKEA promotes its product and services by sponsoring,
print media, adds in theatres, radio and magazine, yellow papers and hording.
Scope, objectivity and conversion of IKEA - Scope of IKEA is to increase its production
product and spreader its business in all over country and making competitive in competition with
the standard of various multinational companies (Aad and et. al., 2012).
IKEA firm is objected the productivity by using various tool and technique for marketing
to live up according to the need of consumer by providing valuable products and services.
This firm is converted its business into production bases for making better valuable stand
in the marketing.
Vision for marketing
In concern to attain the goals and aim of the firm in prescribed time due to this it very
essential for the company to make and regulate a proper vision for the marketing of its product
and service of the IKEA company in appropriate manner. The marketing strategies are very
important for the management for smoothly running their business.
Execution
The company has to use all the steps in a appropriate way due to its importance for the
completion of the calculation. From this it is easy to make proper and good decision for company
as well as regulating policies in a appropriate way to achieve targeted objective and goals by the
company. It is also necessary for giving profit to company and increasing in the business
productivity as well as the turnover of firm’s product and services.
Analysis
It identify with the better solution for the cost, price and investment also including profit.
In this analysis inclusion of determination of all the performance in proper way. Various type of
formula foe analysis is describing in following:
Turnover determination- it is determination of total turnover throughout the year of the
firm for the various type of products and services like, furniture, material of food and etc.
Market-Share determination- it is the determination of market share of company either it
is huge or small in the market (Aaboud and et. al., 2017).
Efficiency Ratios- efficiency ratio analysis about the efficiency of the firm for its activity
by using asset turnover ratio less turnover and then divided by net asset.

Cost-Profit determination-. It’s all about the price of product and cost plus margin of
product for earning more profit by the company.
CONCLUSION
From the above given project report, it can be summarised that function of marketing is
from one of the most important function of every organisation and that’s why it is very essential
that it should be perform in effective manner. With this, company can attract more number of
customers towards its offering and can generate more revenues. One of the main factor that
require to consider by marketing manager while assign roles and responsibilities to employees is
that different functions of an organisation are interrelated with each other this affect the
performance of company in market. Further, it is very important that all components of
marketing mix should be well applied so company can satisfy the needs of its customers and at
the same time can generate more revenues. In addition to this, all relevant aspect should be
evaluate by marketing manager to develop an effective marketing plan for organisation.

REFERENCES
Books and Journals

Online
Business Essentials Information Session. 2017. [Online]. Available through:
<https://haskayne.ucalgary.ca/executive/BEInfo>.
Basic elements of the marketing function. 2012. [Online]. Available through:
<http://steinvox.com/blog/five-core-marketing-functions-a-business-organization-
blueprint/>.