Marketing Strategies of IKEA
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Added on 2020-01-28
Marketing Strategies of IKEA
Added on 2020-01-28
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STRATEGIC MARKETING
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................31. PRINCIPLES OF STRATEGIC MARKETING.........................................................................31.1 Role of strategic marketing in an organization.....................................................................31.2 Relationship between corporate strategy and marketing strategy.........................................41.3 Developing a Marketing Strategy.........................................................................................52. Ways to Carry out strategic marketing analysis..........................................................................62.1 Approaches to Internal Environmental Analysis..................................................................62.2 Approaches to External Environmental Analysis.................................................................72.3 Integration of Internal and External Analysis.......................................................................83. Strategic marketing decisions and choices..................................................................................93.1 Analysis of decisions and choices to be made at corporate level..........................................93.2 Assessment of the influence of corporate decisions at the business unit and functionallevel...........................................................................................................................................103.3 Approaches to Competitive Positioning of organizations...................................................104. Implementation of range of marketing strategies to contribute to the competitive advantage..114.1 Identifying the range of strategies.......................................................................................114.2 Analyzing Marketing Communications Strategy................................................................124.3 Application of marketing strategies....................................................................................12CONCLUSION..............................................................................................................................12REFERENCES .............................................................................................................................13
INTRODUCTIONThe success of business is largely dependent on the marketing strategies it has adoptedand is practicing. It is imperative for the strategies to be customer oriented as well ascompetitively dominant in the market. In respect to the same organizations shall on a regularbasis explore various contemporary innovative tools for management of its marketing. The present report shall analyze and understand the core concepts of Strategic Marketingin respect of IKEA, a multinational company, undertaking a retail business of selling furnitureand other home appliances (IKEA, 2016). The report shall further analyze how IKEA hasimplemented various marketing strategies to gain a competitive advantage in the market. 1. PRINCIPLES OF STRATEGIC MARKETING1.1 Role of strategic marketing in an organizationMarketing strategy is a model or process developed by an organization focusing itsspecific resources on the best of the available opportunities, in order to achieve the fundamentalgoal to enhance the sale and gain a sustainable competitive advantage over others in the market(Jobber and Ellis-Chadwick, 2012). It is a one comprehensive plan to achieve all the marketinggoals an organization, and is best formulated through a deep market research focusing on theright product mix. IKEA has been preparing its marketing strategies to gain a substantial competitiveadvantage over its competitors and has been playing the following roles in the company:Provides a framework for Operational and Marketing Planning: A consistent andcarefully made marketing strategy lays the foundation of the marketing plan as well asthe operational plan of the company. It particularly defines the customers andgeographical areas the company should be serving and assists in optimum allocation ofresources in specific areas. Provides Clarity in the direction of activities: The strategies clearly specify the directionof the activities to be undertaken by an organization for achieving the organizational aimsand objectives. With the help of these the employees of the organization understand aclearer picture of the objectives to be achieved. The strategies of IKEA are specificallydirected towards its objective of increasing the clientele by maximizing customersatisfaction. This strictly defined objective has helped the employees of the company to
decide on the appropriate course of action. Additionally, this approach has increased theefficiency of the employees. Increased effectiveness and Personnel satisfaction: A well defined set of strategiesensures that resources are deployed to utilize the best of their efficiency and in a mannerto achieve the objectives of a business entity (Kotler and et. al., 2015). IKEA hasexperienced that strategies have also defined the role of specific resources as well as thepersonnel, thereby, reducing the issues of role conflict or role ambiguity within theworkforce. IKEA has adopted customer-centric approach as against the product centric approach ofmarketing. It is clearly understood by the company that the needs of customers are far morebroader and distinct from the product or services it is providing. Hence, it is working for itscustomers, which automatically fulfills the product requirements of the company. Further, IKEAhas also installed a fully functional system of monitoring and control, in order to cross check theimplementation of various strategies against the plan so formulated. 1.2 Relationship between corporate strategy and marketing strategyThe primary focus area of corporate strategy is profitability, whereas the marketingstrategies focus on development, pricing and distribution of product or services. The Corporatestrategy include developing the structure of the organization, improving the balance-sheet,creating economies of scale by taking various strategic decisions, reducing production or othercosts etc. Hence, it is more focused on the functions of a business entity and strive to make themmore smooth to enhance the profitability. The marketing strategies are formulated in alignmentwith the corporate mission and vision of the organization. Though, the marketing strategies areseen to be revolving around the 4P's – Product, Price, Place and Promotion, the larger aim is toachieve the corporate mission and vision of the company (Peter and Donnelly, 2011.). It is theprocess which ultimately seeks maximization of return to the stakeholders of the corporate bydeveloping its relation with its customers and thereby, gaining a competitive advantage. Themanagement of IKEA, vision is to impact the regular lives of many people in a positive mannerand the mission is to make the products affordable for many people. This is the corporate visionand mission established by the company, which is incorporated in the marketing strategies whichhas positioned the product in the market to serve many people at lower costs, through the manystores it has opened. Hence, both the corporate and marketing strategies play an important role as
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