UAE Hospitality Industry: Competitive Marketing Strategies

This assignment requires a comprehensive analysis of competitive marketing strategies in the United Arab Emirates' (UAE) hospitality industry. You are to examine the 4Ps (Product, Price, Place, Promotion) of prominent hospitality companies in the UAE, such as IKEA's hotel services and Walmart's retail strategy. The analysis should include an evaluation of their effectiveness and recommendations for improvement.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................................4
TASK 1..........................................................................................................................................................4
P1. Roles and responsibilities of marketing function...............................................................................4
M1 Roles and responsibilities of marketing.............................................................................................7
M2 Significance of interrelationships between marketing and other functional units ...........................7
D1 Key elements of the marketing function ...........................................................................................8
P2 Roles and responsibilities of marketing related to organisation ........................................................8
M3 Various tactics are used through IKEA...............................................................................................9
TASK 2........................................................................................................................................................10
P3 &M4& D2 Comparison of marketing mix of two organisations........................................................10
TASK 3........................................................................................................................................................12
P4 Marketing plan..................................................................................................................................12
CONCLUSION.............................................................................................................................................17
REFERENCES..............................................................................................................................................18

INTRODUCTION
Marketing means developing, promoting and also delivering of products as well as
services to businesses and customers. Marketing is an activity, procedure for developing,
communicating, exchanging and delivering offering which have some values for consumers,
society, partners and many others (Babin and Zikmund, 2015). It is essential that firm should
provide its goods on the basis of needs and demands of consumers by conducting research. This
report is based on IKEA organisation. IKEA is multinational group and it designs as well as sells
kitchen appliances, home accessories and furniture. This firm is one of the biggest retailers of
furniture and it was established in year 1943. This company is known as its attention in order to
operational details, product development, cost control which permitted IKEA business firm to
reduce its costs. It provides better quality of its products on reasonable cost so that each and
every person can avail its goods in an effective or better manner. In this given report mentions
about roles as well as responsibilities of the marketing function in a business firm. Comparison
among the marketing mix of two different business firms will be discussed under this present
business report. Preparation of marketing plan will be discussed in mention report.
TASK 1
P1. Roles and responsibilities of marketing function
Overview of company
IKEA is multinational organisation which designs and sells ready to assemble furniture
items, kitchen appliances and home accessories (Baines, Fill and Page, 2013). It is considered as
the largest retailer organisation of furniture from 2008. It was established in Sweden in 1943. It
is recognised due to having their innovative designs of furniture and home appliances which are
eco friendly. There are many steps are taken by the organisation regarding cost control,
operational details, continuous product development and corporate attributes which helps in
lowering their prices by two to three percent in 2010 at the time of global expansion. The
revenue which is earned by organisation from their different business functions and providence
of diversifies business products is €35.074 billion in 2016. Also, the organisation have large
amount of assets. The amount of assets in 2016 is €53.967 billion.
Marketing

It is important function which is used by the management of organisation is to provide
their goods and services to their end customers. The main part of marketing activities is to
advertise about their existing products to bring awareness among the customer's. It provides the
opportunity regarding improvement of their sales and profitability. It includes the coordination of
4P's of marketing which is defined below:
 Selection of the most appropriate product
 Determination of effective price
 Adoption of effective distribution approaches which helps to expand their reach towards
customer places.
 Implementation of effective promotional strategy
Marketing is one of the important technique which helps the organisation is to improve
their revenue and attain sustainability in their business operations. It also includes about the
research of market which helps in determination of the current preferences of customers. It
provides the opportunity is to manufacture goods as per their preferences and attain their trust. It
helps the multinational organisation like IKEA is to improve their market share through
attraction of large number of customer globally (Baker and Magnini, 2016). It helps in analysing
the competitors which prevail in market and strategies adopt by them. It contributes in
formulation of effective strategies which drive their competitors out of the market and attain
good position in market.
Roles and responsibilities of marketing function
Marketing manager has different roles and responsibilities which is need to perform by
them for the success of IKEA in future. The different roles and responsibilities which are provide
by then in organisational context is defined below:
 Product: It is the duty of marketing manager to identify the different preferences of
customer's and bring changes in the existing features of their product. In this regard, they
also have the duty to analyse the features of their competitor’s products to get some idea
and their customers also. For adoption of such changes, management is needed to adopt
new technologies which help to manufacture the furniture and home appliances of good
quality. There are many advantages are gathered by IKEA like high market share, large

number of profits etc. IKEA is needed to conduct market research to ascertain the views
of customers about their furniture’s and home appliances. It helps in determination of
discrepancies in their product. So, for success it is important for organisation is to adopt
new trends of market.
 Selling: One of the main role of marketing manager is to adapt innovative techniques to
expand their sales. In this regard, need to prepare effective strategies and policies on the
basis of information which is gathered from market research. One of the important aspect
which help to expand their sales is to improve their end process where final products are
easily available to end customers under the time period which stipulated by them
(Collins, J. and Stern, E.J., 2012). It provides the opportunity regarding satisfaction of
their needs and demands. To make this process more enhances need to adopt effective
distribution channels and tools which contribute in easy access of products in market.
Another important tactic which contributes in the process of improvement of sales is
advertisement of their products. It helps to bring awareness among customers about their
new featured products. Through use of advertisement approaches buying behaviour of
customers is influenced and they attracted towards their products (Desai, 2013). It helps
the organisation in enhancing their number of revenues and becomes world leading retail
organisation.
 Pricing: It is the duty of marketing department of organisation is to decide the prices of
their products. Price of the product has direct link with the buying behaviour of
customers. If the prices are affordable then organisation is able to attract the customers of
their competitors also (Durand and Barlow, 2012).In this regard, marketing manager of
IKEA is needed to analyse their current pricing policies and the strategies which are
adopt by their competitors. It provides opportunity regarding formulation of new strategy
which is more enhanced and effective. Through fixing of reasonable cost of their
furniture’s and home appliances able to attract middle income group individuals. It helps
in earning large number of profits in short span of time.
 Promotion: One of the most important function which done by the marketing department
is to promote and advertise their products in market. This will includes the use of
different tools and medium which provides opportunity to reach between the customers.

Such different methods are known as newspapers, television, online platforms etc. At
present, online method is best for IKEA is to expand their reach in different countries
through use of social media (Forshier, 2012).It is one of the cost efficient technique
which helps to connect with youth in more effective and efficient manner. It helps in
improving their communication channels and grabs their trust and loyalty towards their
products and brand. It also contributes to aware their customer about their new
launchings. One of the major perspectives which is served by this technique is that it
helps in capturing large market share through attraction of large number of customers.
The main motive behind the use of this tool is to create the demand of their products in
market.
 Financing: Marketing manager also has the duty is to formulate budget about
requirement of funds which they need to perform their functions. It is so, fund is
important to carry out their operations through application of innovative techniques.
Effective allocation of funds improves overall working efficiency.
 Distribution: One of the important activities which includes the process about transfer
of goods from one place to another. It is responsibility upon marketing managers is to
develop effective distribution channels through which end customers get their products.
Delivery of product on time is important aspect which helps to create the bond with
customers and retain them for longer period of time. It has positive impact upon business
operations.
M1 Roles and responsibilities of marketing
Marketing environment consist two different factors and these are internal and external.
These both factors can create the negative and positive affect of business (Jones and Rowley,
2011). So, it is a main responsibility of the marketing function to determine all those factors
which develop negative effect on business and decrease productivity level of business.
M2 Significance of interrelationships between marketing and other functional units
In IKEA, different departments like marketing, production, finance, human resource,
operations etc. are working for accomplishing the common goals as well as objectives. Without
all these functions, marketing department cannot conduct its activities in a better manner. So, it is
essential that all departments should work with marketing in order to increase profit level.

D1 Key elements of the marketing function
Marketing department has many functions such as production, pricing, selling and many
others but all are working together with finance, marketing, human resource, operations to
attaining the common goal of company. It creates positive effect on business and helpful in
enhancing sales and development of company.
P2 Roles and responsibilities of marketing related to organisation
In IKEA business, there are different departments which are working for making business
firm successful and more productive (Kongstvedt, 2012). The main motive of this organisation is
to make business firm more productive. IKEA is an organisation which carried its business
activities as well as operations in a systematic or corrective manner. Each department of IKEA
business firm us specialised in its activities. Without support of the other department, marketing
function cannot perform in a better or systematic manner. Interrelationship of marketing
department with other functions of IKEA Company given below as above:
Marketing function with human resource- HR department is a backbone of any
organisation and its main objective is to enhancing development as well as productivity level.
The main roles of human resource department is to payroll, provide training and development,
recruitment and selection, performance appraisal and many others. IKEA business firm provides
training to marketing staff members in order to increase their working efficiency as well as
effectiveness. From this their performance level will be enhanced and they can give their
contribution towards achieving the aims and goals of firm. Human resource department recruit
capable staff members for marketing department so that they can with consumers in a fair
manner and work on maximising sales along with profit level (Koontz, 2010).
Marketing function with finance department- The main role of finance function is to
arrange as well as manage the funds for business activities as well as operations. In order to
attacking large number of consumers for increasing sales as well as productivity. There are many
different activities which are need to done by marketing department like for an instance
promotion, advertisement and many others. So, in addition to this it is a responsibility of finance
department to provide finance or proper amount of money on the basis of marketing activities.

Marketing function with research and development function- The main work of
research and development department is to conduct a proper investigation and to know about the
perception of consumers, their needs, current marketing trends, strategies, existing products at
market place and much other information. With the help of this company can produce its goods
by take care needs and demands of customers in an effective manner (Mihart, 2012). It is an
efficient manner to attracting buyers and provides them goods at the reasonable cost. With the
help of this they will attract more and will be loyal consumers of firm. With the help of this
profit level of business can be increased and achieve objectives with in a specific period of time.
Marketing department with production- production is functional area which is
responsible for concerting inputs in to the finishes outputs by process of manufacturing series.
The primary motive of IKEA organisation to produce those goods as well as services which can
satisfy demands and requirements of consumers. It is the responsibility of production manager to
choose right materials to produce the goods. It is necessary that production department should
use the better quality raw materials in order to manufacture products (Nguyen and Simkin,
2012). If production will be good then in this case sales will be increased in a better manner. It is
essential that marketing department should use the new and advanced technology to increase
quality of production in a better manner.
M3 Various tactics are used through IKEA
There are different tactics are applied by IKEA to accomplish their goals. Such tactics are
defined below:
 Fair assessment of the duties and responsibilities which are needed to perform by the
marketing manager. It helps in effective allocation of duties to subordinates.
 Development of effective marketing plan through application of the provision of 7P’s and
its comparison with competitors to ascertain about effectiveness for their plan.
 Understand about the linkage of marketing department with other organisational
department to build effective coordination in different activities. It helps to direct all of
them to provide combine efforts to achieve common goals of organisation.

TASK 2
P3 &M4& D2 Comparison of marketing mix of two organisations
Marketing mix is a broader concept and it includes products, place, price, promotion,
people, process and physical evidence. These all elements of marketing mix plays a necessary
role in order to conducting marketing activities in an effective as well as better manner. There is
a comparison among the marketing mix of two different business firms and these are IKEA and
Walmart (Papasolomou and Melanthiou, 2012). Both business firms deal in the retail sector and
strong competitors of each other. Marketing mix of both firm are given below as above:
IKEA
This company is the largest brand of furniture in all over the world. It was founded in
year 1943 and headquarter of this firm is in Sweden. It offers its consumers minimum cot
functional furniture which is assembling in a easy manner. This brand depends on concept of
providing home furnishing related products at the reasonable costs.
Products- It is a leading retail chain which is spread in the entire world. The products
which are provided through IKEA organisation in wide range and providing are in the
marketing mix of firm. The offerings of IKEA organisation is divided in to the children’s
products, bathroom stage, storage, cooking, eating, clothes, storages and many others. Apart
from all these, IKEA Company also keeps the kitchen appliances and cabinets, sofas, small
storage, tools and hardware’s etc. The products of this company are related with the no- frills
simplicity in order to retain its cost leadership related strategy (Perreault, 2010).
Place- IKEA firm promotes its goods through multi- channel retailer efficiently through
integrating offline as well as online channels of sales. This group operates its business in to 28
markets and it has 340 stores in all over world.
Price- This firm uses the cost leadership costing strategy. It offers its goods at the minimum
cost so that every people can afford them in a bets possible manner. Furnishing chain and home
improvement is helpful to maintain its minimum cost because of economies of scale of IKEA
organisation.

Promotion- The main focus of this company is on marketing activities. For promotion, it uses
print, billboards, television, online ads and many other methods. IKEA firm launches its
advertisement campaign in United Kingdom and uses the signs such as “Not for Sale” written
on advertisement.
People- IKEA organisation provides importance to its staff members and consumers.
Employees of IKEA firm believe in an idea of straight forward people with the passion for
products of home furnishing. Under this organisation around 116000 staff members are working
in retail, 21000 in production and 18000 in the supply department. The core values of this firm
are satisfy needs and demands of consumers in a better manner.
Process- This Company has many business processes and in more than 10 countries it has total
44 manufacturing units.ots develops its own wood and also manufactures better quality of
furniture (Rossi, Allenby and McCulloch, 2012). In its facilities of house production are
developed through advanced technologies. IKEA Company follows clean environment slogan.
Its technique of stock management as well as supply chain is unique.
Physical evidence- IKEA business firm has more than 350 stores in around 50 countries. The
layouts of its stores are very attractive and give better shopping experience. Its stores are well
located outside cities in the larger areas.
Walmart
It is one of a leading multination business firm which was founded in year 1962 and then
incorporates in the 1969 year. This organisation operates its business in 28 countries in all over
the world. It operates in discount departmental stores, groceries, hyper markets, e- retail and
many others.
Product- Walmart business firm sells its large number of goods like for an instance groceries,
hardliners, health and wellness, entertainment, home furnishings and many others. In order to

keep quality of its products better (Rowley, 2016). Walmart Company make innovation and
uses the advanced technology.
Price- This business firm is a market leader and cost of its goods are more competitive.
Walmart company sets its record in its the pricing strategy through costing its goods and
services. Walmart Company procures its goods in high quantities in all over the world. This
firm provides its products at the reasonable cost. As comparison to its strong competitors,
Walmart business firm charges its goods around 15% lesser. It uses various kinds of pricing
strategies which are based on purchasing behaviour of consumers.
Place- Walmart firm has more than 1500 retail stores in all over the world and in about 28
countries, it has under 63 banners. In addition to this, distribution strategy consists delivery to
the stores through vendors which are suppliers of retail stores. There are more than 15
distribution centres which uses method of the cross docking. Transportation is attained by fleet
of the 61000trailers, 6100 tractors and also more than the 7800 drivers. Walmart Company has
different kinds of stores which consist Walmart discount stores, Walmart neighbourhood
markets, express stores, super markets and many others (Smith, 2012).
Promotion- It promotes its goods by plethora of the sales promotion like for an instance product
bundling and also its competitive pricing strategies. This company adopts the attractive strategy
of the brand promotion. The website of this firm is more attractive. The slogan of Walmart
website is ‘Grab it before it’s done’ in order to attract the large number of consumers for
enhancing sales as well as profit level.
People- Walmart is an international business firm with focus on large number of people. The
staff members are necessary assets for the Walmart firm and they handle all kinds of consumer
queries at stores. Walmart Company provides better consumer’s services to buyers to resolve
their complaints.
Process- Walmart process is effective and also helpful consumers to shop in a easy manner
(West, 2012). Under its process includes systematic placement of goods, trolleys, several
payment counters and many others.

Physical evidence- It is seen through more than the stores which are spread in all over world.
Every stores has many categories of goods, product placement etc.
TASK 3
P4 Marketing plan
It is a major part of an organisation and a document which helps in outlines the
advertisement as well as better marketing for future context. With the help of better plan,
company can perform its business activities in a proper manner. If marketing plan will be better,
then IKEA business firm can determine its upcoming activities as well as factors of business in
order to enhancing sales (Wilson, 2014). The marketing plan of IKEA organisation given below
as above:
Company Background
IKEA business firm deals in the retail sector and it provides large number of services to
people in order to satisfy their needs and demands. In the entire world, this firm is the largest
furniture firm and founded in 1943 in Sweden. It deals in home accessories, furniture and also
kitchen appliances (Zimmerman and Blythe, 2013). It wants to give large number of well-
designed, home furnishing goods at reasonable at minimum cost so that people can afford them.
Vision
The vision of IKEA business firm is to develop better every life for many of the people.
Mission
The main mission is to produce the better quality of goods to consumers by optimising
the full value chain and developing the long- term relationship with suppliers and manufacturing
more values (Baker and Magnini, 2016).
SWOT analysis of IKEA
Strength Weaknesses
 The market presence as well as brand
reputation is good.
 Consumer knowledge.
 Standard products
 Negative publicity of goods.
 Reducing quality

 Integration of supply chain
 Diversifies portfolio of goods.
Opportunities Threats
 .Developing online sales
 Expand business in to the developing
economies.
 Development of an average income of
customer.
 Increased competition level.
STP of IKEA
Segmentation, targeting and also positioning of IKEA includes set of the consequent
decisions of marketing which constitute core marketing strategy of an organisation.
Segmentation- Under this IKEA Company divide its business in to smaller group on the
basis of demographic and geographical level (Collins and Stern, 2012).
Targeting- It consist selecting of the particular groups which are divided as segmentation
outcomes as customers for brand. The main targets of this company are women, children or
urban people.
Positioning- It implies chosen of marketing mix and attract large number of consumers. In
addition to this, there are different kinds of positioning which are used through IKEA
organisation such as mono segment and defensive (Babin and Zikmund, 2015).
Marketing mix of IKEA
Product- IKEA business firm understands requirements of consumers and also prospects
of targets. This firm deals in large number of products such as furniture, kitchen fittings,
furnishings, book cabinets and many others.
Price- Basis of IKEA pricing is value and that is no- frills and minimum costing. This
business firm provides its goods on low cost and they are not the premium skimmer (Jones and
Rowley, 2011).
Place- IKEA group is global marketing business and it sells accessories and furniture in
North America, Europe, Australia and Asia. This firm has large number o stores but some of
them are located out of the town.
Promotion- IKEA is a largest brand of furniture and it gives promotion through
sponsorship, television, newspapers etc.

Marketing strategy
IKEA business firm regularly make improvement in its product quality and attract large
number of consumers. This firm wants to make its relationship with customers better.
Financial Projection of IKEA
Income statement All numbers in thousands
Revenue 2/25/2017 2/27/2016 2/28/2015
Total revenue 55295000 53357000 56388000
Cost of
revenue 52932000 51184000 54320000
Gross profit 2363000 2173000 2068000
Operating
expenses
Research
development - - -
Selling
general and
administrativ
e 1190000 1367000 1949000
Non-
recurring - - -
Others - - -
Total
operating
expenses
54122000 52551000 56269000

Operating
income or
loss 1173000 806000 119000
Income from
continuing
operations
Total other
income/expe
nses net -1028000 -604000 -6453000
Earnings
before
interest and
taxes 1173000 806000 119000
Interest
expense -513000 -480000 -487000
Income
before tax 145000 202000 -6334000
Income tax
expense 87000 -54000 -670000
Minority
interest -24000 -10000 -10000
Net income
from
continuing
ops 58000 256000 -5664000
Non-
recurring
events

Discontinued
operations -112000 -127000 -102000
Extraordinary
items - - -
Effect of
accounting
changes - - -
Other items - - -
Net income
Net income -40000 138000 -5741000
Preferred
stock and
other
adjustments - - -
Net income
applicable to
common
shares -40000 138000 -5741000
It has been been interpreted from the above statistics that in 2016 IKEA is earned the
profit of 138000. This shows the customers are satisfied with the quality of products and their
diversified offerings. But in the year it is observed in year 2017 that IKEA attains the loss of
40000. So, it is important for the management of IKEA is to atke some strategic decisions to earn
profits.
Execution
There is need to IKEA company to follow all the steps in marketing plan in a better
manner and it will be helpful in developing the better marketing related strategies or policies in
addition to achieve objectivise or goals (Mihart, 2012).
Evaluation
Under this, there is a judgement related to the funds, value and also number and there is
an evaluation of marketing activities in a better manner.

CONCLUSION
It has been concluded from the above given report that marketing is helpful in interacting
consumers and sellers and make better or healthy relationship among them. IKEA organisation
provides effective quality of goods to consumers in order to enhancing development and profit
level of firm. Comparison of marketing mix is helpful in know about the effectiveness or
efficiency of two business firm. Marketing plan helps in doing work in a systematic and better
manner. Under this given report studied regarding interrelationship of marketing function with
the other functions in order to achieve the set goals and aims of IKEA business firm.

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Online
IKEA Marketing Mix, 2017. [Online]. Available through: <
https://www.mbaskool.com/marketing-mix/services/17066-ikea.html>./
Walmart’s Marketing Mix (4Ps) Analysis & Recommendations, 2017. [Online]. Avaialble
through: < http://panmore.com/walmart-marketing-mix-4ps-analysis-recommendations>./