Principles of Marketing Management: Analysis of IKEA in the UK Market

Principles of
Marketing
Management

Contents
Introduction.................................................................................................................................................3
Background of company..........................................................................................................................3
Macro analysis.........................................................................................................................................4
Micro analysis..........................................................................................................................................6
Competitive analysis................................................................................................................................7
SWOT Analysis.........................................................................................................................................9
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
Books and Journal..................................................................................................................................12

Introduction
The criteria behind this report are to evaluate different principles of Marketing by analyzing a
leading market and requirement of strategic decisions for growth and expansion. Marketing is a
significant function of organization and for market growth. It is the process of putting product for
the right customer's at right price. Marketing involve branding, promotion and customer service
in an effective way. Therefore it requires an analysis of different market areas that could affect
and organization. This report is going to consist auditing report on IKEA in a leading market of
UK. The company e is a leading manufacturer of furniture and home furnishing products. As
marketing could not get beneficial without analyzing the potential customers and factors
affecting the environment so that this report is going to present analysis of micro and macro
factors using pestle and competitive analysis through which it would be analyze how political
commerce social and environmental and other factors influence organizations product and its
market (Kumar, 2018). Also coma the report will present SWOT analysis of the company so that
the strength and weakness come out and decisions will be more effective for future growth and
expansion. UK comes under one of the most wide business market in which business could use
effective resources and technologies for marketing. Therefore, it is necessary to identify the
surrounding to eliminate uncertainty and future competition.
Background of company
IKEA is one of the largest retailer and manufacturer of home accessories and furniture. The
company was first established in 1943. it is a Dutch company and now scattered into many
locations which include South Asia Africa Europe, North America and many more. IKEA is
basically known for its quality products of home appliances and furniture as which they make
through a sustainable production and fulfil all the customer requirements. Ikea has great Grand
exposures into to market and provide unique selling furniture and home equipment which are
ready to use and durable (Hurth, and Whittlesea, 2017). The company serves as a Supermarket
chain into Retail Industry and has large operational cost inventory and brand reputation. It serves
into approx 445 locations and looking forward to spend into further markets. IKEA provides
product through offline and online methods both which has prominently reaching to high success
as the website contains over 12000 products which provide customer convenience and varieties

at one place. In UK market, IKEA is creating immense growth bye providing unique product
solutions for every corner of home and people love their varieties and designs (Heath, and
McKechnie, 2019).
Macro analysis
Macro analysis can be characterized as an assessment which facilitates prominent assistance to
the business enterprises in terms of monitoring and determining the potential factors and forces
existing within the external environment which can impact upon the operations and functioning
of the same in a considerate manner (MARKETINGU, 2020). In order to conduct the macro
analysis of IKEA, Pestle Framework will be taken into consideration.
Pestle Framework can be defined as a tool that allows the business firms to obtain essential
insights about the forces external to the business that can influence the stability and profitability
of the same. The external environmental forces factors that can impact upon the business
operation of IKEA in United Kingdom are as follows:-
Political
Political stability plays a significant role in the routine functioning of a business entity. In
context to IKEA, the minor or major alterations within the political reforms, policies, procedures
etc. within UK can result in severe implication for the concerned business organization.
Moreover, the political environment can also impact upon the brand name and value of the
organization. Hence, IKEA is required to monitor the political culture of UK in order to obtain a
necessary overview that can help the firm in taking the appropriate measures in the UK market.
Economic
Brexit policy can emerge as complete game changer in the UK business industry. The regulation
of Brexit policy can impose major threat to the trade and supply procedures of the respective
enterprise. The impact of Brexit can also contribute to the hike in the cost of the raw materials
within in turn can result in modifications in the pricing structure of the company (THIS, 2020).
In addition to that, the fluctuating rates of foreign currencies, inflation, recession, doom period
etc. can also impact the business process of IKEA in an enhanced manner.