Marketing Essentials: An Analysis of IKEA's Marketing Mix and Plan

This report provides a detailed analysis of IKEA's marketing strategies, covering essential aspects such as marketing functions, the marketing mix (including product, price, place, and promotion), and the interrelationship between the marketing department and other functional units. The report also explores the application of the marketing mix, comparing IKEA's approach with that of ALDI. Furthermore, it includes an examination of IKEA's marketing plan, outlining its goals and objectives. The introduction emphasizes the importance of marketing in organizational success, while the conclusion summarizes the key findings and insights gained from the analysis. The report aims to provide a comprehensive understanding of IKEA's marketing practices and their effectiveness.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Role and responsibilities of different marketing functions....................................................1
P2 Interrelationship of marketing department with other functional units.................................3
TASK 2............................................................................................................................................4
P3 Application of marketing mix and comparison with other organization...............................4
TASK 3............................................................................................................................................7
P4 Marketing plan.......................................................................................................................7
CONCLUSION................................................................................................................................9
References......................................................................................................................................10

INTRODUCTION
Marketing is a crucial term which needs to be considered as mandatory aspect in
organization that transform organization to earn higher income and make firm to get stable in
market for longer period of time. Marketing content needs to be formulated according to the
requirement of enterprise and it also help in catching eyes of millions of people in right direction
too. It can be said that marketing is that process which do help entity to earn higher goals and
objectives in great manner (Baines, Fill and Page, 2013). Moreover, enterprise is having an
responsibility to conduct research in market so customer needs and wants can be met by
organization and they can satisfy them in better manner too. The report is based on IKEA, which
do sell furniture, home accessories and kitchen appliances to millions of people in better way.
Assignment will discuss about roles and responsibilities which discuss about marketing
function and having an interrelationship with different department. Comparison in between two
entity with use of marketing mix. Although, there is a basic plan which develop goals and
objectives in firm as well.
TASK 1
P1 Role and responsibilities of different marketing functions.
Marketing process do include movement of goods and services from one place to another
for customers in great manner. It also include four elements i.e. 4P's of marketing. Basically, it is
that concept of firm which do help in converting every kind of work in better manner and it helps
firm to attain a particular good amount of profit in great way (Berkowitz, 2016). Some functions
of marketing department:
 Marketing department try to produce an marketing plan as well in better way and it is
such which also lead to analyse factor which do affect performance and productivity in
perfect way.
 Marketing do help entity to define there brand to large people and with such more
customers needs to be attracted as well.
Roles and responsibilities of marketing functions.
Marketing information management: IKEA is that organization who goes out to use
collected information in great way which do convert organization to formulate better plan and
needs to learn higher profit scenario in market as well. Marketing information leads to have an

some gathering of customer needs and wants and working in effective manner all such can help
in earning higher profit too.
Selling: Marketing is that department who is responsible to showcase there product in
effective way and produce such content which can attract the large portion of people to buy
company commodities. Basically, increase in sales of IKEA products and services can make firm
to earn good amount of profit in great way as well and it is responsibility of organization to look
over and bring in effective plan for selling. All same aspect that can help firm to attain higher
goals and objectives in perfect manner (Blythe, 2012).
Financing: Finance is that particular part which do help company to perform there
functions in effective way. Even though, finance is considered as backbone of firm. This is such
which do convert organization to bring in proper resources and looks forward to use it in right
format as well. Top most people of firm formulate plan and divide the finance in different
department according to requirement so smooth functions can be there.
Pricing: IKEA is having a reasonable prices of there product and services which help to
firm to call in various kind of people to buy there product. A quality product by IKEA can make
them to increase faith and loyalty of customer with earning satisfaction. Organisation do set there
prices according to competition in market so that they can gain an competitive advantage in
market. Price do play an important role and it Is based on the change in environment and all
same does make firm to earn a huge amount of profit.
Promotion: Marketing is that which do help firm to promote there product and services
in effective way and concept also make firm to gather a large part of portion and millions of
people to buy IKEA product and services in at great extent. Promotion nowadays has became an
mandatory aspect of organization that help customer to get in with firm. This concept is that
which do include different kind of things like as advertising, sales promotion and personal
selling in great way (Durmaz, 2011). Hence, it is such which needs to be done in great way as
this could help in earning higher amount in a particular year.
Distribution: This particular thing is considered as important marketing functions which
do distribute product and services and help in having an better distribution channel. Firm do
choose an effective distribution channel that somewhere help organization to distribute there
quality product and services to variety of stores at some specific customers in great way even on

within time period too. Basically, distribution is that which needs to be done in right format as
customers loyalty for brand is also rely on this scenario.
Product service management: Product and service development which needs to be
considered as marketing functions that needs to be developed and maintained with different
aspect and also leads improve product and services mix with in response that has market
opportunity in great way. Management is having an responsibility to manage every aspect like
product services as well and it is required to provide services to customers of time to time basis.
P2 Interrelationship of marketing department with other functional units.
IKEA is having an different department in organization and work as one. Basically it is
there that interrelated department always bring an effective working in organization with some
objective and having an purpose of firm too (Dibb and Simkin, 2013). Moreover, it is necessary
in with to coordinate with each other and leads to develop and enhance overall productivity and
image with organization.
 Finance department and marketing: Finance department leads to utilise finance in
better manner and resources are such which allocate place as well. Finance manager of of
IKEA is responsible for creating budget, making investment decisions for the long and
short term. Marketing do carry a lot aspect like selling, advertising and promotion etc.
and for such finance is required in right format. Even marketing and finance department
work as one to bring smoothness.
 HRM and Marketing: HRD plays an crucial role in business and formulate some
needed policies that could recruit effective respondents in firm. Even though, marketing
department also need to have an effective employees so that they can work in right
direction in better manner. HRD do recruit young blood and having skills, knowledge and
ability to perform in great way. Marketing is that aspect to whom they need to have those
employees who conduct research in market and lead to collect important information
from the market.
 Marketing and R&D department: Research and development is that department who
work according to needs and customer of market and produce quality product and
services for them (Jones and Rowley, 2011). Basically, R&D department is having an
responsibility to collect information and data which is needed for organization to produce
an effective strategy and decision in correct format too. Marketing also conduct research

in market which help them to know that which type of marketing will help them to
perform in right manner and make them to earn higher profit.
 Marketing and production department: Production department is that part of
organization where the quality product and services are produced to satisfy the customer
at great extent. Production department do use various approaches to use resources in
better way which could lead to reduce the wastage of resources in better manner. Even
though marketing tell production department as market is changing which is affecting on
customer and changing there taste and preferences in great way. Therefore, according to
such both needs to work together (Lancaster and Massingham, 2010).
 Marketing and IT department: IT department of organization is that which do help
company to perform there task and activity in better manner and bring in variety of thing
that could help company to cope up with the different department and can help them to
earn higher profit in great manner. IT department with marketing make entity to adopt
innovative tools and techniques into the system which market functions that needs to
conduct in proper style.
 Customer relationship management and Marketing: It is required by company to
provide services by company on time in effective manner. Even though, this department
also focus on solving some complaint and issues in with customer in firm. IKEA do
provide attention in which solving queries of customer which do help rise in different
aspects too. It needs t deliver work on time so proper information and marketing
department needs to improve existing product.
TASK 2
P3 Application of marketing mix and comparison with other organization.
Marketing mix is that which needs to considered as commercialisation tool and needs to
be used in order to gain goals and objectives of company in effective way (Lamb, Hair and
McDaniel, 2011). Even marketing mix is having components as- product, price, place, promotion
and extended one has another tree in addition to those four and they are people, process and
physical evidence.
BASE IKEA ALDI
PRODUCT IKEA is that company which sell ALDI is firm who provide various

furniture, kitchen appliances and
home accessories in quality to
customer. IKEA mainly deal in
with furniture and provide
satisfaction to different people
and make firm to attain goals and
objectives.
functions and sell different kind of
products and services to customer in
great way, with this they are not be
able to focus on particular aspect and
this is something which is making
IKEA to perform better then ALDI.
PRICE Prices of IKEA is reasonable in
nature which do make people to
come in and buy product and
services in great extent. Even
though IKEA is that firm who
changes the price according to
demand and market changes as
well, this is all such which is
making firm to attain higher goals
and earn higher profits as well
(Lipsman and et. al., 2012).
Hence, it is required that prices
should not be so high an should
not be so low, set it somewhere in
between so that customer can buy
product.
ALDI is that firm which set there
prices according to sales. For instance,
if selling of some specific thing is
higher then firm also goes in with
increase in prices as such item is
giving more and more income. This is
such which do create problem for firm
at the time of changes in market and
manipulation of preferences, taste etc.
PLACE IKEA is among those part of
country which do serve millions
of people with there product and
services that might help in
earning high amount to them.
Place should be according to
demand of particular product and
ALDI is among the successful firms in
world that do provide an variety of
product and services in better way and
it is quite lead to attain goals and
objectives. All same criteria help
company lead to have an effective
working as well. Place plays an crucial

it should be there which is
considered as convenient for
different millions of people and
can reach to buy there product
and services as well. It is
considered as important part of
organization and marketing mix.
role in earning good amount too.
PROMOTION IKEA is that company where
promotion part is that which do
like other do in great extent.
IKEA needs to cope up in huge
market and also make it firm to
attain some goals and objectives.
In IKEA promotion needs to be
done according to requirement
and bring in healthy environment
so that change in working can be
adopted by firm too. Promotion
by IKEA is done less then ALDI
as because they have trust on
there quality of product as well.
ALDI is considered as the famous and
successful organization and it is
required to promote there product and
services further so that they can earn
higher goals and objectives in better
manner (Malhotra, Birks and Wills,
2013). Promotion is done by ALDI
and needs to be done in right manner.
Even though, it might help company to
perform in right contrast. Basically, it
is required to have an work in right
manner and required to handle
everything too.
PEOPLE IKEA should provide an full
attention which do build an
proper relationship with there
customer and which satisfy work
in effective manner. Even people
are those part of organization in
every field they play an effective
role and make a firm to attain
goals and objectives too.
ALDI is that entity to provide services
which serve different segment and also
produce, even in result which needs to
work and having at every section in
with departmental store i.e. ALDI.
Employees are those who needs to
work in effective manner and leads to
impart training with them.

PROCESS IKEA does go with simple and
effective process where they do
face an minimum issues and
problems. They impart various
customer care services and also
provide various opportunity in
respect of delivery functions.
They do carry out the process in great
manner. Segregate in products and
services is such which do leads to find
for those problems in respect of work
in various ways. ALDI deliver a great
process of working but not having an
great working like IKEA in proper
way. `
PHYSICAL
EVIDENCE
IKEA is that firm who is working
at large scale and having an
continuous investment efforts and
looks forward to utilise solar
power energy in organizational
system (Mihart, 2012). They do
have an additional features and
also lead to offer customer a
various type of discounts at great
extent and provide satisfaction to
people.
They need to attract stores in market
place and also contain ranging home
items. Apart from it they do charge
high prices that it could easily
affordable and satisfy needs and wants
in effective way. Physical evidence
also lead to make it attainable in
perfect way and make them to attain a
great way as well.
TASK 3
P4 Marketing plan.
Marketing plan in organization which do help in having an essential points and needs to
carry out with work in proper manner in the right directions as well. Plan includes certain task
and activities that needs to perform aims and objectives in firm. They do plan activities and task
needs to earn profit and sales.
Overview of company.
IKEA is considered as private company and it is required manufacture furniture, kitchen
appliances and having home accessories. Basically, it is largest retail store, even though it was

founded in Sweden and somewhere established 1943, with headquarters in Netherlands. They are
in more then 45 countries with hundreds of stores.
Vision and mission of company.
Vision statement of company is to look forward and to create an better and everyday life
for people. They really wanted to provide designed furniture at somewhere affordable and
economic prices too and they do buy it in some easily manner. IKEA mission and vision both
needs to serve purpose of company too (Papasolomou and Melanthiou, 2012). They needs to
provide proper direction in company and also help manager to develop strategies which can
achieve vision statement.
STP of IKEA.
Segmentation, positioning and targeting is that which refers to marketing strategy.
 Segmentation: It leads to divide population in various groups and needs to depend upon
traits and features. Even though, this also help in offering product and according to taste.
Reaching target market and customers easily.
 Targeting: It can be said that group of result of segmentation and this also looks after
research as consumer brand. Target market of IKEA is very large and broad too.
 Positioning: They need to select marketing mix that needs to help target customer
segment. Different segment are as:- mono, multi, standby and adaptive which leads to
gap the types of positioning. IKEA does uses mainly to satisfy needs and wants of
customer in better way.
SWOT Analysis of IKEA.
STRENGTH WEAKNESS
 They do unique design furniture with
home appliances etc.
 They need to provide value to
customers in irrespective of market
conditions.
 They do focus on customer
requirement.
 They do use concept of innovation in
 They do leads to have an weak online
support in working even in effective
manner.
 IKEA, moreover having an approach of
working as do-it-yourself.
 They do have an misconception of
quality in better manner.

better manner.
 Hence, they do have an strong
marketing strategies and having an
smart marketer.
OPPORTUNITIES THREAT
 Basically, opportunity is there with
economic condition in better manner.
 Great and emerging market is there
which needs to be analysed in proper
way.
 Even though, various socio cultural
environment are there and even there
trends too.
 E-commerce opportunities are there
which needs to make earn higher profit
too.
 There is huge change in particular
needs and wants even in taste too.
 Moreover there is a huge competition
as well.
 Economic boom and downturn are
there for many a times in great extent.
 Fluctuating references of market is
there and having an exchange rates too.
Segmenting, targeting and positioning: It is considered as familiar approach of modern
marketing. STP is used in IKEA and needs to produce an marketing plan. Through, they do deal
in with target audiences with personalised messages too.
Marketing mix: This mix develop the 7P's this help in producing plan so to keep right
product at right price at right place. This help in earning money at large level.
Budget: £850000 is total budget plan and 70% amount will be somewhere utilised digital
marketing and strategies which remain in product.
Monitoring and controlling: Moreover the whole plan needs to be monitored and
controlled with top management to make it successful in great way and leads to have an
conclusion that plan and include aspect of firm that needs to be followed by maximum sales and
profitability.

CONCLUSION
From the above report, it has been concluded that marketing is that which do play an role
of organization and also lead to make it earn higher competitive advantage with growth in better
manner. Variety of roles and responsibilities of marketing in right manner. Various types of
functions are there that product design in with development, finance, transport, selling etc. in
better manner. Even though department and there interrelation with each other is also included in
this for effective working and earning of more profit. Even though marketing plan is that which
needs to be achieved with higher growth rate and somewhere also having an effective way too.