Marketing Essentials Report

This report analyzes the marketing essentials of IKEA, a global furniture retailer. It examines the roles and responsibilities of the marketing department, analyzes the marketing mix applied by IKEA and its competitor Walmart, and presents a comprehensive marketing plan for IKEA. The report provides insights into IKEA's marketing strategies, SWOT analysis, segmentation, targeting, and positioning.

Marketing Essentials

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 organisation apply marketing mix to the marketing planning........................................7
TASK 3...............................................................................................................................................10
P4: Basic marketing plan.................................................................................................................10
CONCLUSION...................................................................................................................................14
REFERENCES....................................................................................................................................15

INTRODUCTION
Marketing is an essential element which supports an organisation to reach to their
targeted customers with the products and services offered in market. The main objectives of
adopting several marketing activities is to inform and convince customers to buy company’s
products and services if want to get maximum satisfaction level. Therefore, it plays an
important role in increasing revenue and customer base of company through attracting their
interest and buying behaviour towards company’s products and services. The present
assignment report is based on IKEA, a multinational retail organisation which deals in
providing multiple numbers of products such as kitchen appliances, furniture and home
appliances across worldwide... It was first established in 1943 and now it becomes as one of
the largest retailer of the furniture. The project includes the functions and roles of marketing
department along with their interrelation with other departments. The project also summarises
the marketing mix of an organisation with similar sector organisation. In addition with this,
marketing plan has been also prepare under this report for the purpose of assisting employee
in achieving desired goals and objectives (Baker and Saren, 2016).
TASK 1
P1: Roles and responsibilities of marketing department
Overview of IKEA
IKEA was first established in the year 1943 in Sweden as a small retail organisation
and at current times it becomes on the recognised retailer organisation which deals in
providing multiple range of products such as furniture, home accessories and kitchen
appliances throughout the world. Due to offering innovative furniture and home accessories
which are eco-friendly, IKEA are able to successfully generate huge amount of products. In
the year 2016, it has been recorded approx. €35.074 billion as revenue of company. In order
to sustain in competitive market for longer period of time, the company has taken many
initiatives such as controlling of their expenses, making operations more effective so as to
develop their products and services as per the needs and preferences of customers. This will
help them in expanding its business to a large scale and earn maximum revenue every year
(Cleverley, 2017).
Marketing

It refers to activities which are essentially required to be performed by marketing
department in order to reach company’s products and services in the market and promote
them in towards their targeted customers with an objective of influencing their interest and
buying behaviour. The main functions of marketing department is to identify and analyse the
current market trends and conditions according to which needs and preferences of customers
are identified. It will direct the organisation to make changes in their existing products so as
to maximise the satisfaction level of customers. It will also help in determining the number of
rivals exists in market along with their strategies due to which the management of IKEA are
able to make an effective decisions and suitable plans in order to move ahead than their
rivals. Marketing is considered as combination of 4P’s. Such 4P’s and their role is described
as below”
 Improvement and selection of suitable products according to the needs and
preferences of customers and market trends.
 Identification of prices which maximises the satisfaction level and attract large
number of customers.
 Selection of best distribution channels through which products has been distributed to
different stores on time so as to meet customer’s demands.
 Formulation of promotional strategies which informs customers about the new
offerings and product lines of company (Desai, 2013).
One of the main functions of marketing is to make promotion of existing products and
services with a hope of achieving huge customer base. This is the way through which IKEA
can able to expand its business in market. Digital platform is one of the best promotional
methods with the help of which the company can able to reach its products to their customers.
For example, Social media is such a platform where large number of customers are active and
available thus attracting them and maintaining good relation with them, such platform is more
useful.
Roles and responsibilities of marketing department
There are several roles and responsibilities which are possessed by marketing
manager thus required to perform in order to achieve desired goals and objectives of an
organisation within pre-determined period of time. Such roles and responsibilities are briefly
described as below:

Product: It includes the offerings which are provided by company in market such as
home accessories and appliances, furniture etc. In this regard, there are some responsibilities
of company to provide quality products having different features to their customers which
makes them different from their rivals in market. To compete with rivals it is important for
marketing manager to first analyse the market trends, competitors’ strategies, needs and
preferences of customers, technologies used by their rivals etc. This will provide an
opportunity to create new ideas and implement an effective and advanced technology in
process of executing marketing activities (Eslinger, 2014).
Selling: It is an important function which should be performed by marketing manager
of IKEA in which they need to sell their products in market in order to generate huge
revenues and sustain in market for longer period of time. In order to make improved changes
in selling process of different products, the marketing manager should required to adopt new
and effective strategies regarding developing their distribution channels in order to fulfil
shortage of products at their stores. This will help in meeting demand of customers which
makes them loyal with company. Another aspect which help company in achieving huge
customer strengths is adoption of an effective marketing strategies such as adoption of print
media, digital media etc. due to which the interest and buying behaviour of customers are
easily influenced towards company’s products and services which makes positive impact on
the sales figure of company.
Promotion: It includes the different marketing activities which need to be performed
by marketing manager with an objective of grabbing an attention of large number of
customers towards company’s products and services. There are different channel of
marketing with the help of which the company can able to communicate and inform
customers about the quality, features, price etc. of products and services in order to attract
their interest and buying behaviour. Such marketing tools include social media, advertisement
on TV, newspapers etc. through the targeted customers are aware about the new offering of
company.
Financing: Finds are an essential of every department in order to execute their
business activities an effective and efficient manner. Therefore, the marketing manager need
to assess the needs of funds which is required to carry out different marketing activities and
prepare budget on each activities after analysing their effectiveness. It will guide employees

to perform in better way through minimising the wastage of funds while performing (Hsu,
2011).
Distribution: It includes the process of identification of suppliers who help company
in getting sufficient products at their retail stores on time. As IKEA is multination retailer
organisation which has operated its business across worldwide thus it is important for
marketing manger to appoint suppliers from different nations in order to ensure about
availability of products at their different stores. This will help in meeting the market needs
and demands which makes positive impact on sales figure and revenues as well.
P2: Roles and responsibilities of marketing relate to organisational context
Marketing is an important department of an organisation which help and supports
other departments as well in performing their functions in more effective and efficient
manner. It is important to bring coordination among different departments which help in
minimising the chances of mistakes as well as duplication of efforts. It can be further
understood under the below:
Marketing with operating: IKEA is one of the know retail organisation which also
engaged in designing their products according to the needs and demands of the customers.
For this, marketing department of IKEA need to first conduct research in market with a
motive of identifying the designs which are more in trend and accordingly direct operation
department to make changes in their existing designs of products so as to achieve huge
customer strengths. Along with this, adoption of advanced technologies in the process of
designing are also directed by marketing department to operation department.
Marketing with HR department: The main roles and responsibilities of HR
department are to recruit and select best candidates for their organisation which are capable to
bring profitable result to company in near future (Jeffery, 2010). Along with this, there are
other functions as well performed b y such department which includes fixation of salary,
training of workers, performance appraisal etc. Marketing department can able to get skilled
employees having adequate knowledge about performing different marketing activities with
the help of HR department. Such department also liable to identify the deviations in the
performance of employees of marketing department and according provide optimum solution
in order to bring efficiency in marketing activities.

Marketing with finance department: The main role of finance department is to
arrange and allocate funds to different departments according to their needs and
requirements. Arrangement of funds can be through financial institutions, venture capital etc.
which ensures company in having adequate liquidity. Therefore, such department provides
sufficient support to the marketing department in execution of different marketing activities
more effectively. It will provide an opportunity to marketing department of IKEA to adopt to
adopt effective and modern marketing tools which help in attracting large number of
customers across worldwide. The finance department also responsible to control cost incurred
in market activities in order to enhance the profit margin of company.
TASK 2:
P3: Various organisation apply marketing mix to the marketing planning
It is considered as an effective tool of marketing management which are employed by
marketers. It consists of seven components which include product, price, place, promotion,
process, people and physical evidence. These all components help marketing manager in
making an effective decision and plans to execute marketing activities in more effective and
efficient manner. The comparison is made between the marketing mix of two rivals such as
IKEA and Walmart which are briefly defined as below:
Marketing mix of IKEA Firm
Product: It is related with offerings of IKEA in market which includes furniture,
home accessories and hone appliances etc. For this, it is essential for IKEA to first find out
the needs and preferences of customers and accordingly offered wide variety of products in
order to maximise the satisfaction level of customers. Changes should also be made in the
design of their products according to the demand of customers which in results achieving
huge customer strengths (Lane, 2014).
Price: It is related with pricing strategies adopted by IKEA on their offerings. Pricing
factors makes huge impact on the interest and buying behaviour of customers. As IKEA is
multinational retailer company which has compete with many rivals engaged in similar
industry therefore the firm has charged an affordable prices on their products and services so
that middle call people can also afford to buy their products. Their main motive is to control
cost of operation in order to increase their profit margin,

Place: The firm has always focusing of locating their store in known and popular
places so that maximum crowd can easily be attracted. The company has over 25 distribution
centres and has operated in more than 50 countries. Apart from this, IKEA has launched its
application as well through which the customers can easily obtain their products without
reaching to their stores.
Promotion: There are various promotional activities which are adopted by IKEA
which includes television, billboards, online advertisements, print media etc. It also launches
its promotional campaigns across worldwide due to which maximum customers are easily
attracted towards company’s products and services. In addition with this, the company offers
discounts, coupons etc. with the purpose of grabbing attention of maximum number of
customers and increases their sales figure as well. Through adopting such marketing
strategies, the company has generated huge revenues every year.
People: IKEA is a brand which is known for providing quality products and services
therefore to attract and convince people to buy their products, the employees of front line are
directly contact with customers and communicate them regarding the information and
benefits of their products with a motive of influencing their buying behaviour. The employees
of IKEA always touched with the customers and identifying their satisfaction level as well
after using their products. This will help in maintaining healthy relation with their loyal
customers (Martin, Campbell and Harmsen, 2014).
Process: The selling process of IKEA starts from show rooms and ends with selling to
the customers. At their stores, the buyers come, select and purchase without any interference
of their staff members this the customers are free to buy whatever they want to buy. While
buying furniture, the company provides the vehicle to transfers purchased furniture to the
customer’s location.
Physical evidence: IKEA has multiple number of stores across worldwide thus
attaining strong presence in market due to which it can be easily identified by the customers.
While entering in stores, the firm has particular layouts of paths.
Marketing mix of Walmart
Product: It is also known multinational retail brand which offered multiple numbers
of products such as tablets, mobile phones, computers etc. Recently the company has

acquired Flipkart Company due to which now they are offering wide variety of products
through online as well.
Price: The main motive of Walmart is providing products and services at reasonable
prices through adopting effective pricing strategies. It offered wide varieties of products due
to which the company has attained maximum number of loyal customers. Therefore, charging
effective prices will help them in retaining loyal customers for longer period of time.
Place: Walmart has attained over 11500 stores across worldwide and has more than
150 centres which are located to reach their products to maximum number of customers. This
help company in generating huge revenues every year. As after acquiring Flipkart, the
company has expand its business operations on very large scale which offers products not
only to urban areas people but also covers rural areas people as well (Mihart, 2012).
Promotion: Walmart uses online platform for selling their products to the targeted
customers due to which their revenue goes up. The website of company is also designed in
such an effective way that will easily attracts customers to visits at their sites and buy clothes
of their choice. Walmart adopt various marketing tools such as advertisement on TV, social
media, public relation etc. which help in reaching to the targeted customers.
Process: The process of selling products to the customers is very convenient. In their
stores, all the products of different varieties are put at every section which facilitates
customers to reach easily to the section from which they want to buy products. Different
payment modes, categorisation of section of products, providing trolleys etc. makes easy for
customers to do shopping at their stores without facing any difficulties.
People: As attained large number of stores throughout the world, the company has
employed skilled and qualified employees who know how to deal with the customers in an
effective way. For this, training is also provided for them in order to help in maximising the
satisfaction level of customers. Collecting feedbacks and ask them for reviews is also helpful
in achieving good image in front of customers. According to the company’s official website,
Walmart has employed over 2 million of staff members.
Physical evidence: The Company has attained more than 11000 stores across
worldwide due to which they make their strong presence in market. Through providing
quality products of multiple ranges help them in recognising by customers in easy manner.

Due to large number of offices in different countries, the company has attained strong brand
image in market (Moons and et. al., 2010).
TASK 3
P4: Basic marketing plan
The marketing plan is essential need for every organisation due to which it becomes
easily to compete with the rivals in more effective way. Preparation of marketing plan
includes different marketing components such as objective, mission, vision, SWOT analysis,
marketing mix and many others. Along with this, 4P’s of marketing mix are included in
marketing plan for IKEA. This will help company in executing all business activities in more
effective way so as to spread company’s products and services across worldwide.
Company Background
IKEA company is Swedish retailer company which deals in designing as well as
providing multiple varieties of products includes kitchen and home appliances, furniture
products etc. at an affordable prices. It becomes popular furniture brand since the year 2008.
The firm is known for their designs of their furniture products, interior designs and
appliances which are eco-friendly environment. In addition with this, IKEA is also known for
cost control ad continuous growth of its products and operations details.
Vision
The vision of IKEA is to develop better every day for several people.
Mission
The mission of IKEA is to make business of IKEA more productive and expand
business into different markets.
Objectives
Following are the objectives of IKEA:
 Making improvement in offering such as discounts coupons etc. to attract maximum
number of customers.
 The growth rate of company should be increased by 10% every year.

 Continuous improvement in existing products
 Provide value for money
SWOT Analysis of IKEA
Strengths Weaknesses
 The vision, objectives of the company
are clear in front of their employees
due to which maximum supports are
received in order to add value to make
business more successful.
 Capturing large market share through
providing Multiple varieties of
products.
 Strong brand image in competitive
market.
 Charging affordable prices due to
which attained large number of loyal
customers.
 Negative publicity which restricts
customers to visit at their stores and
buy their products.
 The quality of products offered by
company is also not up to the
standard.
Opportunities Threats
 Increasing sales through developing
online platform.
 Expansion of business into grocery
market.
 The business of IKEA maybe
expands due to growth of economy.
 High competition
 Increment in income of customers.
 Fluctuations in legal system.
Marketing Mix of IKEA
Product: IKEA has offering multiple varieties of products and services which
includes furniture, hone and kitchen appliances etc. The company is well known for their
unique design of their furniture products thus achieving huge customer strengths.

Price: IKEA mainly focuses on reducing cost due to which they are able to charge
affordable prices on their products from the customers. This will help in attracting lower and
middle income group people (Ottman, 2011).
Place: IKEAS has operated its business in Australia, Asia and North America through
having large number of stores from where the customers can easily get their products and
services. Using online platform also help company in reaching their products and services to
the customers throughout the world.
Promotion: Different promotional strategies such as sponsorship, advertisement on
TV, Newspapers, magazines etc. which help in grabbing an attention of large number of
customers towards the discounts, coupons offered by company on their products and services.
This will help company in increasing sales figure of company and earn revenue.
Segmentation, Targeting and Positioning of IKEA
Segmentation can be divided into psychographic, demographic and geographic which
are target to meet their needs and demands through providing products and services. Such
type of segmentation are briefly described as below:
Psychographic: Such type of segmentation is based on the lifestyle, interest and
activities of people. Mostly the high income group focus on buying furniture according to
their needs and preferences.
Demographic: Such type segmentation is based on the age, gender, income,
occupation etc. which need to be consider by IKEA in order to fulfil their demands.
Geographic: Such kind of segmentation is based on the locations, geography etc.
IKEA should require to focus on opening their store in such places where they get maximum
crowd.
Marketing strategy
IKEA’s main mission is to expand its business throughout the world thus it requires
an effective marketing strategies which includes promotion of products through
advertisement on TV, social media, print media etc. it helps in spreading the information
about the product’s quality, features and prices with an objective of influencing buying
behaviour of customers (The Marketing Mix 4P’s and 7P’s Explained, 2017).

Financial projection of IKEA
Execution
Under this, all above pre-determined activities are required to properly execute
through formulation of plans and strategies so as to achieve desired outcomes in near future.
It will help company in attaining huge customer base and expand its business to maximum
number of countries (Nguyen and Simkin, 2012).
Evaluation

It is related to making effective judgement concerning to value, number and also
amount. Under this, there is an evaluation of all activities in a better manner. Some different
methods of an evaluation mention below:
Sales Analysis- In this, it is related with the sales volume on the yearly basis on the
basis different variety of products like furniture, kitchen goods, accessories etc.
Market-Share Analysis- It is related to the study concerning about marketing shatter
whether it is high and also low. The market share of IKEA business firm is large (Novak,
2011).
Efficiency Ratios- Asset Turnover Ratio- Revenue (Sales)/Net Assets
Cost-Profitability Analysis- It includes an examination of profit in regards to pricing.
This shows a gap among the cost and also sales.
CONCLUSION
It has been concluded from the above project report that marketing enhances the
chances of achieving growth and success of company thus need to be adopted by every
organisation through formulating an effective plans and strategies. It must required for
company to communicate and inform to the customers about their offering so as to influence
their buying behaviour which results in achieving huge customer strengths. There are various
departments in an organisation which need to be work together in order to achieve desired
goals and objectives.

REFERENCES
Books and Journals
Baker, M. J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Cleverley, W. O., 2017. Essentials of health care finance. Jones & Bartlett Learning.
Desai, S.S., 2013. An analysis of the competitive marketing strategies of the hospitality
industry in UAE. IUP Journal of Management Research. 12(1). p.22.
Eslinger, T., 2014. Mobile Magic: The Saatchi and Saatchi Guide to Mobile Marketing and
Design. John Wiley & Sons.
Hsu, W., 2011. The vocabulary thresholds of business textbooks and business research
articles for EFL learners. English for Specific Purposes. 30(4). pp.247-257.
Jeffery, M., 2010. Data-driven marketing: the 15 metrics everyone in marketing should know.
John Wiley & Sons.
Lane, V., 2014. Measuring the Financial Value of Marketing Strategy with Excess Stock
Market Return. International Journal of Risk and Contingency Management
(IJRCM), 3(4), pp.1-16.
Martin, C., Campbell, R. and Harmsen, S., 2014. Media essentials: A brief introduction.
Bedford/St. Martin's.
Mihart, C., 2012. Impact of integrated marketing communication on consumer behaviour:
effects on consumer decision–making process. International Journal of Marketing
Studies. 4(2). p.121.
Nguyen, B. and Simkin, L., 2012. Fairness quality: the role of fairness in a social and
ethically oriented marketing landscape. The Marketing Review. 12(4). pp.333-344.
Moons and et. al. , 2010. The extended decomposed Theory of Planned Behaviour. A
framework for investigating the adoption process of electric cars. In The 6 Senses-The
Essentials of Marketing (EMAC 2010) (pp. 191-191).
Ottman, J., 2011. The new rules of green marketing: Strategies, tools, and inspiration for
sustainable branding. Berrett-Koehler Publishers.
Online
The Marketing Mix 4P’s and 7P’s Explained, 2017. [Online]. Available through: <
http://marketingmix.co.uk/>.