Strategic Marketing Planning for Ikea

This report discusses the application and evaluation of strategic marketing planning theories to Ikea, a Swedish multinational company known for its ready-to-assemble furniture. It explores the concept of corporate strategy and its importance for Ikea's business. The report also highlights the strategies used by Ikea, such as offering low prices, increasing the range of items, and expanding into international markets. It further examines the theories of market segmentation, relationship marketing, brand equity, and market orientation in the context of Ikea's strategic marketing planning.

Strategic Marketing Planning
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Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Demonstrate knowledge and understanding of Corporate Strategy............................................3
Discuss about the application, evaluation of strategic marketing planning theories to Ikea.......4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Strategic marketing planning is based on the process or method through which enterprise
creates an effective marketing strategies and its implementations in target market. This type of
process will be taking into account the current position of Ikea, helps in identifying the
promotional opportunities and then evaluating these approaches. This report is based on the Ikea,
is a Swedish multi-national company that designs and sells their ready to assemble furniture in
marketplace. This organisation was founded in Sweden in 1943 by Ingvor Kamprad, Ikea is one
of the largest furniture retailer since 2008. The group is known for modernist design for giving
different kind of appliances & furniture, interior design work which often associated with eco-
friendly simplicity. Ikea operates 378 physical stores in 30 different countries. On the other hand,
this report will discuss about the concept of corporate strategy, evaluates the application or
strategic marketing theories to Ikea.
TASK
Demonstrate knowledge and understanding of Corporate Strategy
Corporate Strategy is kind of approach in term of strategic decision making by identifies
the importance of Ikea business, how to determine the creation of most valuable aspect. In order
to develop a corporate strategy, Ikea must require to look at how different enterprise they own fit
together. Corporate strategy can built on top of business which is concern about the decision
making for individuals.
On the other hand, Ikea can use corporate strategy which means that represent as highest
strategic plan, which define overall goals, direction of organization. Ikea may focus on the
achieve their long term goals, identify the overall value of enterprise. This is beneficial for
enterprise to motivate or inspire people to achieve business tasks in proper manner.
Ikea business should be used the “Corporate Strategy” in their business and starts with idea of
providing wide range of home furnishing items (Eriksson, Robertson and Näppä, 2020). It is
becoming affordable to different people, not just for combining with quality, design, value and
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functions. It is always supported to maintain the sustainability in Ikea. Whenever, Ikea has been
consider corporate strategy and then handling different business operations and functions.
Offering lowest prices- Cost effectiveness is one of the important solid bases of Ikea in
competitive advantage. The primary goal of Ikea to offer various furniture in low prices,
contribution of economic growth and development. At certain level, it uses technological
integration into different business processes.
Increasing the wide range of items- it is widely used different kind of products, which
belong to Ikea competitive market. Company should try to launch a new items, always maintain
the presence in food & catering industries.
International market expansion- it is one of the important aspect for Ikea where it is
always focused on improving furniture chain, which are basically engaged in new market
development (Gupta, 2020). Ikeas has been already operates 422 physical stores in 50 different
marketplace. Company will continuously opening a new stores in other countries. This is become
consider as one of the great corporate strategy in term of business expansion.
Additionally, it has been identified that Ikea is commonly selected a strategic growth
platform include pursuing specific or new item areas, then entering into new distribution
channels. On the other hand, Diversification adopted by Ikea, which means that consider as
corporate strategy that seeks to increase profitability and productivity of enterprise. It is greater
way to increase sales volume which obtained from new product as well as new markets.
Discuss about the application, evaluation of strategic marketing planning theories to Ikea.
Strategic Marketing planning- this type of innovative concept used by Ikea in the
competitive marketplace. In this way, company can operate their business successfully by
creating as well as developing superior values in order to target consumers (Hughes and
Hodgkinson, 2020). It is one of learning aspect that adopts continuously changing in Ikea
business performance and efficiency with the help of Strategic marketing planning. It must adopt
by Ikea to gain long term business success in global world. Moreover, a strategic planning
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involves developing a growth strategy that help to meet competition level, ensure that business
survival for long term.
A strategic Marketing planning is basically indicate the Ikea’s business approach in term
of marketing. Different theories are associated with strategic plan in which manager of Ikea
seeks to be adopted marketing driven approaches (Levytskyi, 2020). These will help for Ikea to
make important decision in regards of business growth and development.
For purpose of Ikea business expansion, it should be covered the different theories in
regards of strategic marketing planning. It is helping to provide brief idea about the specific need
or requirement for Ikea.
Market Segmentation- it is one of important strategy in marketing plan, which can
divide a market into groups based. This type of segmentation theory is adopt by Ikea in which
targeting more consumers in global marketplace. By using this theory, Ikea can utilise to
determine the purchasing habits of individual people. Sometimes, geographic segmentation is
probably done on the basis of segmentation (Okhiria, 2020). Ikea is always focused on the
preferences, demand of consumer which means that manage or control the requirements of
client. For Example- Ikea is able to design a furniture on the basis of consumer needs, giving a
lot of options to choose them.
Relationship Marketing- it is one of the important strategic marketing theory which
helps seeks to build a long term relationship with potential consumer. Ikea has been used this
theory in their business where establishing a strong coordination with consumers in regards of
good or services. First of all, Ikea should attract client by offering furniture, home items in
affordable price and maintain high quality of good service. Secondly, client should be retained
by this method, Ikea will be assigning individual task for manager. Therefore, they offering
excellent consumer service, also increasing the demand of Ikea’s goods and Services in
marketplace.
Brand Equity- It is also consider the most efficient marketing planning theory which
may help for providing the options of potential consumer to differentiate product or service with
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other brands. Ikea should use brand equality approach in their business to add more value
attributes in product by consumers. Usually, the actual source of brand equity can be related in
term of marketing decision. As a result, managers of Ikea will develop understanding towards
source of brand equity. This type of strategic marketing planning theory is consider all about the
feelings, perceptions, experience and thoughts of people towards brand position.
Market Orientation- it is another important theory or philosophy in term of strategic
marketing planning. This is mainly used by Ikea to run their business continuously. It places the
potential consumer at centre of enterprise, Asserts that all department of Ikea should focus on the
satisfying the specific need or requirement for people. Marketing involves deciding whether
potential consumer to produce in first place, also indicate that target the client of Ikea. Therefore,
company will make important decision on the basis of client needs, coordination of all
department efforts in strategic marketing plan.
Application of Strategic marketing Planning-
Strategic planning is one of the essential stage of ikea business and applicable to perform
various promotional activities. As a result, it is helping to think ahead in systematic manner.
Therefore, Ikea is expected to have a better understanding of overall strength, weakness of task
executions. It rely on the interactions between Ikea’s business manager and involvement with
different functional areas such as HR, IT and management etc. At that time, Strategic marketing
planning will support for Ikea to establish a strong coordination with client, putting efforts to
achieve their desirable performance standards (Tuneva, 2020). In case, if case of Ikea is to
sharpen in term of objective, a better way to prepare sudden developments. An effective
communication is enable the strategic marketing planning to know the demand of Ikea
expectation with potential consumers.
Within Ikea, Manager of enterprise should perform the process of creating an efficient plan
which facilitates a common understanding towards all different stakeholders. An efficient
marketing plan is helping to information management of Ikea, determine the behaviour of staff
members towards institutional goals. Moreover, it also responding among current as well as
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potential clients of Ikea. At that time, Ikea is able to subject the change over a period of time in
order to meet the specific demand. A marketing plan allows for manager in Ikea to grow their
business market share (Yaneva, 2020). As a result, it will be generating a better revenue as well
as profits. Whenever, management of Ikea is always focused on the expand the business, enjoy
large economics of scale. Thus, it would support for organisational cost or price. Overall,
strategic marketing plan is to establish a connection with production engine and consumption.
CONCLUSION
From above discussion, it has concluded that Strategic marketing planning is becoming
consider as one of the greatest approach in term of business growth and development. An
effectiveness of marketing plan helps to provide direction of enterprise, therefore it can easily
achieve desirable goal or objective. As per analysis, it has been examined the importance of
marketing strategies in different areas of enterprises. In this report, it has been described about
the concept of corporate strategy, identifying the current position of idea in order to gain
promotional activities in marketplace.
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REFERENCES
Book and Journals
Eriksson, T., Robertson, J. and Näppä, A., 2020. Functional top management teams and
marketing organization: exploring strategic decision-making. Journal of Strategic
Marketing. pp.1-18.
Gupta, P., 2020. Marketing, Advertising or Promotions: A Strategic Planning. Journal of
Accounting, Finance & Marketing Technology. 1(1). pp.8-13.
Hughes, P. and Hodgkinson, I., 2020. Knowledge management activities and strategic planning
capability development. European Business Review.
Levytskyi, V., 2020. MARKETING CONCEPT OF THE MANAGEMENT STRATEGIC
PLANNING ENTERPRISE ACTIVITY. Economic journal of Lesia Ukrainka Eastern
European National University. 3(23). pp.84-91.
Okhiria, A., 2020. The role of strategic marketing in successful event management (Doctoral
dissertation, Dublin, National College of Ireland).
Tuneva, M., 2020. Nonprofit Marketing: Does Strategic Planning Help?. Journal of Innovative
Business and Management. 12(2). pp.96-104.
Yaneva, D., 2020. THE ROLE OF STRATEGIC MARKETING MANAGEMENT FOR
COMPANY DEVELOPMENT. 17(2). pp.105-110.
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