Marketing Essentials Report: IKEA's Marketing Mix and Plan Analysis

This report delves into the marketing strategies of IKEA, a leading furniture and home goods company. It begins by outlining the key roles and functions of marketing within an organization, emphasizing the importance of understanding the market and consumer behavior. The report then explores IKEA's organizational structure, highlighting the roles and responsibilities of various departments, including finance, human resources, sales, marketing, research and development, production, customer service, and distribution, and how they contribute to the company's overall success. A significant portion of the report is dedicated to comparing different ways firms apply their marketing mix, focusing on IKEA's approach to product, price, place, and promotion. Finally, the report culminates in the creation of a comprehensive marketing plan tailored to IKEA, incorporating elements of marketing information systems, distribution channel management, product management, pricing strategies, promotion, and financing to achieve its marketing objectives. The report provides a detailed analysis of IKEA's marketing practices and offers insights into the development and implementation of effective marketing strategies.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ........................................................................................................................................1
P1. Key roles and functions of marketing ..................................................................................1
P2. Roles and responsibilities of marketing in context to organisation......................................5
TASK 2 ...........................................................................................................................................8
P3. Compare the different ways in which firm apply their marketing mix ................................8
TASK 3..........................................................................................................................................10
P4. Produce marketing plan......................................................................................................10
CONCLUSION .........................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Marketing is very essential for every business. Because when firm is producing any
product it is important to sell in market. Customers should know about company's products. In
every enterprise marketing is having their separate department by which they promote their
products and conduct lot many activities. Marketing is very vast concept in business. There are
many fundamental which comes under marketing. So firm need to understand this concept
deeply so that they can promote goods and services in proper manner.
The company which is taken into consideration is Ikea. The company deals with furniture
and it is world leading company in this particular segment. The firm is having large market share
and many loyal customers (Aaboud and et. al, 2017). The company sells different kind of
products such as home accessories, appliances and others.
In this report functions of marketing has been discuss. The roles and responsibility is
related with organisational context is also mention in this project. Different ways in which firm
can apply their marketing concept. The marketing plan has been design in this assignment.
TASK 1
P1. Key roles and functions of marketing
Marketing is very a vast concept. This can be used to communicate, regulate and populate
offering the products which are manufactured by firm. In the other way the marketing has been
so that promotions can be done and sales of company can be increases. Marketing have basic
meaning to aware consumers about products. IKEA is multinational company which is having
global operation headquarter in Netherlands. The company deals in furniture, kitchen alliances
and accessories (Aad and et. al, 2012). Brand known for furnishing products in all over the
world. Firm is getting success all over where they expand their business.
IKEA firm founded in 1943 by the Ingvar Kamprad in Sweden. Firm is establish in
many countries. They have operations in around 48 countries. The brand is well know in all over
the world. Firm first starts from domestic location and after that the expand their business in
other countries also. There are around 163,600 employees are working with this brand. They
regularly creating new opportunities for new people so that they can show their talent in market
place. IKEA is having 392 stores in all over world. Enterprise is following matrix structure. By
this proper conversation can take place between departments. This structure is very flexible in
1

nature. If every staff can properly communicate with each other more new ideas and thoughts
can be generated. The firm is conducing their business in fair manner so that they do not need to
face any circumstances in future. All kind of discrimination are eliminated by firm.
There are four elements of marketing which firm need to take into consideration.
Coordination of these elements are given below.
 Identify and determination of products.
 Identifying the prices of goods and services
 Determine the distribution channel which can use by firm to sell their products
 Identifying the suitable tools by which product can be promoted.
Marketing is combination of many activities. In which effective plans are included. This
activity include marketing research, marketing plan, sales promotions and many more. To make
proper marketing plan firm need to look after all these functions. IKEA need to operate all these
activities (Al-Hasan, Thomas and Mansour, 2016). Following are the justification which is
given below.
 Marketing information system(MIS): This is software which is required in every
organisation. This system helps to transfer data from one place to another. MIS collect
and store all the data which can be used to sell merchandising. By this firm can take
effective support. IKEA is using this system as they are having business in many
countries. They need to adopt this system so that they can transfer their information to
one place to another. By this firm can get less affected by the adverse factors which take
place inside and outside the organisation.
 Distribution channel of management: In this firm need to choose channel. By which they
can available the products to its final customers. It is very important to choose right
channel so that more customers can buy products. There are two different type of channel
direct and indirect (Anderson and et. al, 2014). In direct the firm directly approach
customers to sell their products and indirect way there is intermediators those those help
firm to sell their products. There are different kind of channels such as retailers,
wholesalers, brokers and others. IKEA marketing segment is having main objective to
satisfy customers by understanding their needs and wants.
 Product management: In this management has been done regarding the product such as
its labelling, pricing, packaging and other things. These should be simultaneously done
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with proper production and maintain supply level. By this customers needs and wants
can be fulfil at correct point of time (Anderson, Sweeney and Williams, 2011). If is very
important to maintain proper level of stock so that no customer can go without
purchasing product.
 Pricing: Pricing is another element which can take place. Marketing help to identify the
prices which firm need to select for their product. There are different pricing strategies
are there which can be adopted such as skimming pricing, penetration and premium
pricing. IKEA is providing their products at affordable prices so that more customer can
easily buy goods. Firm also try to reduce their production cost so that profit margins can
be increases.
 Promotion selling: Promotion is very important part of marketing. By this promotion can
be done of products and awareness can be generated among customers. So that they can
know about particular product and its features. It is very important so that firm can
success and develop its operations. Promotion is done so that boost in a sales can take
3
Source 1: Seven marketing function, 2016

place. IKEA is adopting so that sales can be enhance and company can have edge over
market.
 Financing: Financing is vital resources. It supports all activities that are conducted in
market place. Finance is required at every stage of business. IKEA is having large
operation. So that they required more finance. There is separate department in an
organisation those who make budget so that all operations can go in smoother manner.
These are all the concept which take place in marketing. These need to look after by firm
in proper manner so that they can sell their products in market, satisfy more and more customer,
increase their market shares, retain customers and many more benefits. Marketing take place in
every phrase of business (Babin and Zikmund, 2015). Whether firm is going to another market or
they are introducing new product in existing market. Marketing take place everywhere. The
scope in marketing is very high. Because this is the only department in an organisation which
never work in limitation. There is huge scope of creating new ideas, thoughts and actions so that
innovation take place. Companies are spending huge among on conducing this activities so that
they can get success in business.
4

P2. Roles and responsibilities of marketing in context to organisation
There are different kind of functions which are performed in an organisation. These all
function contribute in enterprise success. As IKEA is manufacturing company of furniture. They
have different department in an organisation. Every department is having their own and
responsibilities in which they are specialised (Baines, Fill and Page, 2013). Every department
need to control and monitor in proper manner so that their performance should stable and
maintain. These departments are having various roles and responsibilities which they need to
perform. Such responsibilities and duties of different department are given below.
 Finance: This department staff handle all issues and problems regarding the finance. The
manager is responsible to prepare budgets. They records all transaction which are taking
in business. Finance department is responsible for preparing balance sheet, profit and loss
account and others by which they can identify the final position of firm. They ensure that
all resources should be used in proper manner. So that cost can be minimise at its
possible manner. They also need to handle receivable and payables. So that cash flow can
be manage in proper manner (Baker and Saren, 2016).
5
Source 2: Different Department in an organisation, 2017

 Human resources department: This department look after the work force of the business.
They do many activities such as recruiting, selection, appraisal, giving training and many
more. They ensure that performance and productivity of employees should be increase.
So that firm can earn more revenues. The main responsibility of this department is to
make all employees happy and provide them safety environment. So that they get
engaged with an organisation and employees turnover can be decrease.
 Sales: It is responsibilities of firm to sell their products to customers. In this production,
marketing, and finance department all need to coordinate well so that they can increase
sales. IKEA is earning good revenues because they manage their sales in effective
manner (Banerjee, 2013).
 Marketing: This department ensure that customer should reach to its final customers.
They promote products. They try to create awareness among customers. The main motive
of this department is to fulfil customers needs and wants. There are different kind of
techniques by which promotion can be done. IKEA is promoting their products through
social networking sites. Because by this they can reach to large number of customers.
 Research and development: Every firm need to do research and development. In this
marketer collection information about customers, their needs and wants. They also find of
the new trends and fashion. IKEA having this department by which they try to perform
best in market place. This also help other departments also to perform well. And help to
achieve organisational goals in effective manner. They collect data from different sources
such as primary and secondary. This research took long time and cost.
 Production: This is primary function of an organisation after that only further activities
can be proceed. Production refers to converting input into output. All department
coordinate with each other so that production can take place in proper manner. There are
different resources which can be use to produce goods and services and company need to
assure that these resources should allocated and used in proper manner. So that good
quality of product and be manufacture in least cost (Beatty and Samuelson, 2014).
 Customer services: This department in a business by which business is alive. Now a days
this segment is very important. After sales of goods firm wants to stay connect with their
clients. So for this they come up with new department. This segment solve customers
queries, problems and help them to assess the product. This division make sure that
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customers are well satisfied by the product and they need to take regular feedback from
them so that firm can know whether customers like goods or not and what are they
changes which are required to make.
 Distribution: Distribution is another important segment in firm. It is medium by which
product get reach to its final customers. IKEA is selling their products through online and
by stores. They choose this way f distribution so that they can reach to maximum
numbers of customers (Braslow, 2015). If product is not available to its customers they
can swift to another brands also which a loss for company.
Like this all department are connected with each other. So that firm can get success in
their operations. As marketing and research department is identify the demand and customers
needs in market they need to inform production department so that they can produce goods
accordingly. As production department need different resources such as raw material they need
to inform finance department so that they can prepare budget accordingly. When new product is
launching in market. They need man power to conduct various activities. In this human
resources department need to do selection of proper candidate so that they can do work in
effective manner. The new joining need to get training so that they can know how to do work
and in what manner. All divisions need to coordinate well because if one division is not doing
their work properly it have negative impact on another one.
Following are the functions of marketing department
 Product development: The develop new product according to customer preferences and
taste. It is long process in which they need to understand needs and wants of customers
by doing research. It should be done in proper manner so that accurate information can be
collect by marketer (Caporaso and et. al, 2010).
 Market segment: It is another responsibility of marketing department to do market
segment in this need to select particular segment of customers. On the basis of their age,
income, lifestyle and other factors.
 Communication: Marketing department need to communicate with public in proper so
that customer get aware about products and services. Communication can build strong
relation between company and its customers.
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TASK 2
P3. Compare the different ways in which firm apply their marketing mix
Marketing mix is having many types of components. While taking any decision firm
need to take into consideration thee marketing mix. Marketing mix consist of product, place,
promotion and prices. In services three more extra mix has been added. These are process,
people and physical evidence. As IKEA is selling only products the product mix only taken into
consideration (Cavusgil and et. al, 2014). The comparison of IKEA is done with B&Q. It is
major competitor of IKEA and they are selling home decorative things to its customers. Both of
them are dealing with same kind of products. Both of companies are trying to use this marketing
mix so that they can get edge of market. Following is the brief justification of these elements.
 Product: Product is the physical objective which is offered by firm to its customers.
As IKEA is offering Kitchen alliances, kitchen modules, lightning, bathroom
accessories and others. Firm is providing range of products. And quality of products
are very good.
Comparison:
8
Source 3: Marketing mix, 2015

In this IKEA is providing finished goods to its customers. Whereas B&Q is providing
raw material also to their suppliers. Bot are almost same but they have some difference between
them.
 Price: Price is another element which which taken into consideration by firm. Prices
refers to something which customer paid in return of product. Price is very essential
elements. Because firm need to set their products prices according to purchasing power
of customers. If product prices are very high customer do not willing to pay that much
prices (Chamorro-Mera, Miranda and Rubio, 2014). There are different kind of pricing
strategies are there . Which firm can adopt so that they can attract more customers.
Comparison:
Both of these companies are selling their products in very affordable prices. But the
difference is IKEA provide free assistance to their customers. So that they can know customer
needs. On the other hand B&Q is provided different techniques such as providing discounts and
offers to customers. There are many other techniques also which firm can adopt to set their
prices and attract customers.
 Place: Place is important factor at which customers can find out the product. The firm
need to choose right place at which more customers can visit and sales of firm can be
enhance. IKEA is having global business they are having around 330 stores in 38
countries (Clow and James, 2013). They also provide their goods through online
websites. They also provide guidelines to their customers so that they can reach to stores
in effective manner. On the other hand B&Q is also having business in many countries.
They have 371 stores. They dis play their products in shelves so that customer can easily
preview them. Location is important because if firm expand in wrong market market
share can be affected by this.
Comparison: Both companies are selling their products from same sources. They seller
their products via retailers, online and by their exclusive stores. But their operation mode is
different IKEA specific its product by scientifically and B&Q is making shelves to display its
products so that customer easily see and evaluate the quality.
 Promotions: Promotions is very crucial. When any firm is producing any item it is very
important to product that product so that customer can know about that product.
Promotion create awareness so that customers get attracted. There are different ways in
9

which firm can attract their goods and services. IKEA is using catalogues by which
customers can see designs of products. They promote their products through online also.
Because it is having large reach of customers. IKEA also promote through UNICEFF and
save children in this they bring better life for needy people.
Comparison:
Both of firm are using almost same kind of tools. B&Q is promoting its product through
social media. Both do welfare and they promote their brands through welfare organisation. They
both design the catalogues in which customer can over look the products and it prices. As both
firm are different but the main motive of these firm are to make profits and growth their business
(Cobanoglu and et. al, 2011).
As both the firms are dealing with same kind of products. Their business operation
strategies are different. They adopt some strategies by which they can get competitive advantage
against their competitors. They both are controlling their activities in proper manner and proper
action are taking place to their respective sections.
TASK 3
P4. Produce marketing plan
A marketing plan is an out-script of plans and marketing strategies of a company and its
product. For a company product and production sales, action, practices and plans are essential to
achieve desired result. Marketing plans are made for a specific span of time includes several
information markets, objectives, pricing and practices that needed to be adapted.
Marketing strategies require to vary according new trends and marketing strategy. It
direct and maintain organisation objectives and aims by management of all strategies in definite
situation (Cohen and et. al, 2010). IKEA is leading and emerging company in UK which demand
an effective and efficient plans for organisational achievement and success of marketing
strategies. This attract consumer to purchase product and influence them for adopting company
product. These are some elements that assist in building an effective marketing plan-
Identify Market
Marketing Plans are designed after a complete market analysis in order to assist in
deciding certain decision for recent positions and environment. This provide assist in
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improvement in products and services. IKEA can identify business trends with market analysis
help.
Product Development
IKEA can produce attractive and effective product in order to attract potential purchaser
in industry. Product development help in improving product quality and make it interesting for
buyer so they can drawn to product by watching it.
Provide Direction
A marketing plans helps to meet aims and vision of organisation as well objective of
building a product. This helps in managing organisation to direct company services and products
and taking them in a definite direction (Cua, Reames and Chai, 2013). This can help IKEA to
determine a direction to go on.
A marketing plan is build through determining many components which help to
communicate strategy. Marketing Plans are require to attain business strategy according
company requirement and competitive objectives which are mentioned below-
Environment Analysis
Environment study of market and recent trends in industry is require to study while
creating a market plan. To evaluate company products, target costumer, future issues and
problems and probable solutions which may influence organisation operations and management.
To help in creating entire plan of marketing strategy this is basic to analyse. IKEA first require to
know their costumers needs and preferences in order top attain them. Environment analysis carry
out new trends and needs of organisation as well as society trends vary and new innovation that
is bring into market (Dioko, 2016). As well this will attain new technologies that help in reaching
targeted consumer by segmentation of consumers into various segment and identify their desires
from organisation.
Determine Goals and Objectives
To bridge distance between recent situation and targeted positions, objectives and aims
are required to set by adopting new techniques and strategies in company. This can be achieved
by determining future sales and consumer numbers as well as goals and objectives which targets
in upcoming market situations. This attain competitive goals as well boost performance
compatibly. IKEA must have an entire plan which explain its objectives and situations which it
desire to meet. IKEA may require to determines new visions and goals which provide a different
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and unique identity to organisation and provide a vision and brand image and build a goodwill
within company.
Determining Techniques
Several different techniques to meet costumers and consumers can be used in business
which is needed to be evaluated and analysed according company requirements. This defines the
need and techniques to identify and meet people in market such as social media, TV, newspaper
and other effective means by which costumer can be formulate. This acquire methods of
promotions such as advertising and publicity or personal selling and other promotional activities.
Magazines and websites can be consider as a medium which is effective as well as interesting in
reading (Green, 2012). IKEA provides its costumer a free of cost service to attract public though
Outlets services.
Budget
To function business properly and manage funds and plan capital, budget planning is
important part of marketing and strategy planning. Company can follow cost effective marketing
planning exciting in industry or they can adopt new innovative and creative marketing planning
according their financial availability. Such as advertising cost, buying door prices rates, mailing
etc. should be decided in budget planning (Guffey and Loewy, 2012). A budget is IKEA 's
financial preparation and presentation of several factors that is needed to be complete while
building a marketing strategy.
Marketing Plan Techniques
A marketing plans in order to set organisation objectives and goals and to attain
organisation vision is important. Therefore, marketing plans need to vary according marketing
scenario and environmental trends and innovation which have bring in industry. To develop
business activities and approaches, plans need to vary with some period of time in business.
Various factors of market environment influence marketing strategies indirectly and directly
such as demands, pricing, supply. Policies, conditions and new promotion and marketing
techniques. This is essential to be informed about all facts and statics with time which can assist
in providing suggestions for improvement in strategies whenever it is needed. IKEA require a
definite marketing techniques to acquire in industry in order to achieve product development and
gain consumers and potential buyer in industry.
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Controlling
To control IKEA affect and perfect functions effectiveness, it has innovated several
techniques through which company assure proper goals and aims achievement among consumer
and market. Many tactics which are accessible such as individual observation, maintenance,
evaluation and experiment (Hair, 2015). Through this organisation can compare actual
performance and potential profits with standard which are established to form a plan for
organisation growth. Implementation and experimenting of plans are to be done in order to
measure effectiveness and impact of strategies in organisation and manages and monitor those
plans to gain desire result from organising different approaches within business to meet
consumer needs (Harris, Schwartz and Brownell, 2010).
Experts and auditing of plan can be done by appointed experts in company which will
help in gaining errors which needs to be rectified in order to have more effectiveness as well as
this could help in making appropriate changes which are required in implemented plan.
CONCLUSION
Promoting plan a critical part keeping in mind the end goal to accomplish objectives and
destinations of an organization. The majority of the apparatuses and systems which underpins in
giving help to creating powerful methodology of advancing result of an organization by
ascertainment of legitimate use of assets accessible for the same have been deduced in this
report. A legitimization for advertising blend in IKEA furniture organization and examination of
it with it substitute have been given in this record. It is a consequence of this examination that a
powerful arrangement of promoting can prompt accomplishment of goals on time. Checking and
assessment procedures for arrange for which is made is likewise determined in this investigation.
IKEA is a main furniture organization which can have viability in its operations is shows in this
report for helping it to accomplish the same. An organization must have an arrangement which is
legitimately settled keeping in mind the end goal to have an administration which is
exceptionally solid and brilliant which IKEA have and its business culture which goes for giving
a space to workers where they can unreservedly share their thoughts and reactions to have
greater creativity and development is best for extremely other such association to adjust with a
specific end goal to manufacture a professional IKEA. Henceforth, organization can make its
business more solid by receiving strategies which are indicated in above composed record.
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