An Analysis of Ikea's Marketing Strategies in the Malaysian Market

This report provides a comprehensive analysis of Ikea's marketing strategies in Malaysia. It begins by examining the macro-environmental factors, using a PESTLE analysis to identify opportunities and threats. The report then delves into Ikea's marketing mix, discussing product, pricing, distribution, and promotional strategies. Furthermore, it explores how Ikea expands its revenue through product and market growth strategies, including market development and diversification. The analysis highlights Ikea's adaptability to the Malaysian market, its focus on affordable pricing, and its use of online and social media marketing. The report concludes with a summary of the key findings, emphasizing the importance of marketing in achieving organizational goals. The report's detailed examination of Ikea's approach offers valuable insights into the company's success in the Malaysian market.

MARKETING
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Analyse the Macro-environmental Factors that provide the opportunities, threats of Ikea in
Malaysia.......................................................................................................................................3
Discuss about the concept of marketing mix strategies...............................................................5
Describe about that how Ikea Malaysia expand its revenue by product or market growth
strategies......................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Marketing is based on the activities, set of institutions and processes for creating.
Communicating, delivering and exchanging the offers. These will be helping to support in value
of potential consumers, partners and society at large scale. This documentation is based on the
Case scenario of Ikea, defining the importance of resources, equipment’s that help for creating a
lot of growth opportunities in global marketplace. Documentation will describe the macro-
environmental factors which provide the both opportunities and threat of Ikea in Malaysia.
Furthermore, it will discuss about the concept of marketing mix strategies, identify that how Ikea
Malaysia expand its overall business revenue with the help of product as well as market growth
strategies.
MAIN BODY
Analyse the Macro-environmental Factors that provide the opportunities, threats of Ikea in
Malaysia.
The Macro environmental factors are related to the significant affect in Ikea, when expand the
business in Malaysia. Analysis of Ikea in which uses pestle analysis as framework or tool for
purpose of identifying the business tactics (Chou and et.al., 2020). Usually, it should be consider
the pestle analysis as framework which stands for political economic, social, technological,
environmental and legal aspect. Different factors are directly impacts on the business and
highlights the different extrinsic scenario. Pestle analysis is tool or platform which helps to
identify future of Ikea in Malaysia.
Political/ legal- This factor is related to the political environment such as policies,
procedures, government funding. These are becoming important where applicable as legal
environment. In Malaysia, it has different kind of political or legal factors. When Ikea operates
around the nation so that they have need to follow some legal or political procedures. For
Example- Ikea has been adopted a new policy to make business as running in Malaysia.
Therefore, company has compromise in Malaysia where there is only limited political stability.
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Economic- this type of factor is helping to identify the consumer buying behaviour and
attitude in Malaysia. Ikea has already adopts different strategies according to the country. In this
way, it gained the opportunities which are well known for quality at price. This is becoming
affordable for most of Malaysian citizen. Ikea has launched regional economic integration that
aim to lower the cost or price of enterprise (Li, Larimo and Leonidou, 2021). The actual growth
of Ikea depends on the economic climate which influencing more expectations. Ikea is
established in Malaysia but a major source of business acquired from Europe. Due to the strong
economy, Malaysian people with low income so that they can easily affordable product of Ikea
in marketplace.
Social- this factor is related to cultural environment which means that consider behaviour,
attitude, taste, tradition and belief of potential consumers. The potential consumer preference and
purchasing patterns are always influencing Ikea business and also affected. Malaysia country
have changed the policies for Ikea to boost their own economy. At that time, it quite difficult for
Ikea to maintain the position in marketplace. Afterwards, Ikea should be taken more advantage
while launching a new items on the basis of their tradition, in order to attract potential consumers
Technological- in current scenario, Advancement of modern technology is consider as
important factors which means that Ikea adopt in their business to increase overall performance.
Using innovative technology to reduce price, cost and launch a revolutionary products in
marketplace. Through this way, it is not only save time but also gaining the importance of new
technologies in business expansion for Malaysia country (Sánchez-Garcés and et.al., 2021). Ikea
is based on the furniture pack enterprise which keep use modern techniques and easy to assemble
items in Malaysian markets. Another way, threat of modern technology in Ikea business which
may have reduce the manpower and generate a lack of employment opportunities.
Environmental- this factor is consider as biggest barrier in the furniture making company
such as Ikea. An enterprise makes most of various furniture from wood but it needs to be
protected or secure the environmental degradation. Ikea operates in Malaysia market which
require for consideration of eco-friendly raw materials and then produce the efficient product in
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marketplace. In this way, company will gain more opportunity to recycle plastic item and save
more energy which use less power.
Discuss about the concept of marketing mix strategies
Marketing mix is based on tool or platform in which Ikea adapt to their marketing
objectives, also target market. Ikea pursues the marketing mix concept which includes 4Ps
product, promotion, price and place. A marketing mix applicable in different areas, focus on the
specific part of comprehensive marketing plan (Tozanlı, Kongar and Gupta, 2020). It often refers
to the some classification that start as different segmentations. An effective marketing touches all
kind of areas which always opposed to fix errors.
Marketing strategy helps Ikea achieve its business goals and objectives. Marketing mix 4ps
is widely used framework to define the different approaches in business growth and
development. Ikea is focused on the marketing strategies which will support for increasing the
entire business profitability as well as productivity in marketplace. Usually, it has been
categorized the marketing strategy such as product, pricing, distribution and promotional etc.
these are consider the most suitable approaches in the organization to develop or create
importance of business in global marketplace.
Product Strategy-
Ikea is one of leading enterprise spread across the global world. As per given study, it has
been analysed that Company operates their business Malaysia. In order to offer wide range of
products such as outdoor furniture, mirrors, matters and bathroom stage etc.
Ikea has adopted the product differentiation strategy which means that provide the facilities
for Malaysian consumers to differentiate the quality of product to another enterprise. This type of
differentiation strategy is applicable when Ikea implement innovation in their product so that it
can easily attract targeted consumers (Wang and et.al., 2021). By using differentiation strategy,
Ikea look for competitive advantage by offering furniture items that are perceived to be different
and better than others in term of characteristics, uniqueness etc.
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Pricing Strategy-
Ikea competes with different Malaysia- based retail chain in local marketplace. In this
way, company is basically used the low price constitute the specific vision of Ikea, business idea.
Ikea should adapt the differentiation or low price strategy in order to provide the product or
service at affordable price or cost (Widyatama and et.al., 2020). Usually, it has been increasing
the demand of furniture in offices, homes. So as Ikea want to expand their business where they
should consider differentiate, price discount strategy to target potential consumers.
Ikea focus on the price control and efficient way to handle the operational activities.
Sometimes, it allow Ikea not only for lowest price but also giving more discounts, offers during
special occasion, celebration.
Distribution Strategy-
Ikea has become excellent place and distribution strategy as part of marketing mix.
Usually, distribution can be done on the basis of different principles. The expansion of Ikea
business in Malaysia, which needs to be adapted the “direct” and “indirect” distribution strategy.
It is helping to establish global network, identify the huge volumes on the manufacturing side.
Direct distribution strategy is that use efficient online network to connect with potential
consumers. In order to give more options in regards of product as well as services.
On the other hand, indirect distribution strategy used by Ikea to establish 25+ centers,
perform various business operations more than 50 nations. Procuring materials applicable with
supply chain to minimize price or cost. Indirect distribution with suppliers to transfer the product
from one place to another. This will help for minimized handling price, transport or lower carbon
footprint. Indirect distribution is that involvement of different mediators such as suppliers,
investor. These are helping to export the products in the Malaysian country.
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Marketing Communication Strategy-
Ikea business expansion in Malaysia which need to be used promotional as well
advertising strategy. Generally, Ikea is focused on the different marketing activities. It uses
promotional tool or platform such as online Ads, TV, Print etc. these are consider the most useful
promotion aspect to share information about product, services and company.
Ikea has used the online social media marketing and launch as campaign to target the
large number of Malaysian population. Online campaign should start with different slots, which
means that establish a live session (Widyatama and et.al., 2020). Therefore, it deals potential
audience while fulfill their specific need or requirement. This type of online social media
marketing strategy will help to eliminate any kind of conflict or avoidance in regards of social
culture. Meanwhile, Ikea has promoted the various items in Malaysian market and demonstrating
the problem or issue face by people, offering a better solutions.
Describe about that how Ikea Malaysia expand its revenue by product or market growth
strategies.
The Swedish Furniture giant Ikea opened its second store in Malaysian capital, day before
launch as regional economic integration. Its primary aim is to lower the price or cost of business,
allows easier movement of different individual people. The company is mainly focused on the
long term business expansion in Singapore, Malaysia. It comes just opening the physical stores,
as current chair of Association with Southeast Asian nation.
Generally, Ikea is focused on the business expansion in Malaysia while trying to generate
huge revenue by product as well as market growth strategies.
Market development Strategy-
This type of strategy is basically adapted by Ikea during expansion of business in
Malaysian marketplace. When using a market development strategy with associated with finding
a new market in Malaysia and promote the existing products. Ikea is one of the largest furniture
retailer and always try to maintain their quality of product or service (Widyatama and et.al.,
2020). Therefore, it become easier for organisation to engage with market development strategy
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extensively. Afterwards, Ikea has been targeted the Malaysian people with the help of efficient
products. In this way, company operates different stores. Ikea is forecasted to enter into
Malaysian markets in long term success.
Market development strategy is helping Ikea in the business expansion while exporting
the product to Malaysian market. It may be performed the packaging or new item on the basis of
particular dimensions. Moreover, it is also applying the new distribution channels to interact or
communicate with potential consumers. Sometimes, Ikea should include different pricing
policies to attract multiple clients and create new market segments.
Diversification Strategy-
Diversification is also consider as growth strategy where Ikea target the Malaysian
market by using new product. This is basically define as business diversification in global world.
At certain point, it is extremely risky strategy because of enterprise which can move or shift into
different market. There is only less experience. Whenever, Ikea is to adopt diversification
strategy, it must have represents the clear idea about what it should expect from consumers.
Afterwards, it would gain opportunity from diversification strategy and eliminate or remove risks
or threat.
On the other hand, Diversification strategy is basically involves developing a new
product and then sell into Malaysian markets. In this way, Ikea can use diversification strategy to
remove any kind of risk within organisation. In expansion of Ikea business, company is also
performed the different experiments with diversification strategy occasionally. Ikea restaurants
within furniture retail as mention in marketplace. Therefore, it has been identified the right path
or direction to expand business through strategies. Moreover, it also taking cost or price
advantage in marketplace.
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CONCLUSION
From above discussion, it has been concluded that Marketing plays important role in
organization which help for promoting the various product as well as service in marketplace.
Therefore, company can utilize to essential assets in business operational task executions,
achieve its desirable goal or objective. In this report, it has chosen Case scenario of Ikea,
defining the importance of resources, equipment’s that help for creating a lot of growth
opportunities in global marketplace. As per analysis, it has been identified that macro-
environmental factors which provide the both opportunities and threat of Ikea in Malaysia. On
the other hand, it has been determined the concept of marketing mix strategies. However,
examined that how Ikea Malaysia expand its overall business revenue with the help of product as
well as market growth strategies.
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REFERENCES
Book and Journals
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Li, F., Larimo, J. and Leonidou, L.C., 2021. Social media marketing strategy: definition,
conceptualization, taxonomy, validation, and future agenda. Journal of the Academy of
Marketing Science. 49(1). pp.51-70.
Sánchez-Garcés, J. and et.al., 2021. Implementing the RECONAC Marketing Strategy for the
Interaction and Brand Adoption of Peruvian University Students. Applied
Sciences. 11(5). p.2131.
Tozanlı, Ö., Kongar, E. and Gupta, S.M., 2020. Trade-in-to-upgrade as a marketing strategy in
disassembly-to-order systems at the edge of blockchain technology. International Journal
of Production Research. 58(23). pp.7183-7200.
Wang, T.C. and et.al., 2021. The development of a sustainable wellness service marketing
strategy in Taiwan based on consumer eye movements and preferences. Journal of
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Widyatama, G.W. and et.al., 2020. Grab marketing strategy, research &
development. International journal of Tourism and hospitality in Asia Pasific. 3(2).
pp.97-104.
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