Detailed Marketing Report: Analyzing IKEA's Strategies and Plans

This report provides a comprehensive analysis of IKEA's marketing essentials. It begins by outlining the key roles and responsibilities of the marketing function within IKEA, emphasizing market information collection, planning, product design, and customer service. The report then delves into the specific roles and responsibilities of marketing in relation to the wider organizational goals of IKEA, highlighting the importance of brand image, customer perspective, and marketing communication. A significant portion of the report focuses on the application of the marketing mix (product, price, place, promotion, people, process) to IKEA's marketing planning process, demonstrating how IKEA leverages these elements to achieve its business objectives. The report concludes with an evaluation of a basic marketing plan for IKEA, synthesizing the concepts discussed throughout the analysis. The assignment covers IKEA's strategies in detail, including their product range, pricing strategies, distribution networks, promotional activities, and emphasis on customer service and employee relations. This analysis is designed to provide a thorough understanding of IKEA's successful marketing approaches.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 The key roles and responsibilities of the marketing function for the IKEA..........................1
P2 Roles and responsibilities of marketing relate to IKEA........................................................2
P3 The ways and methods in which the IKEA applies the marketing mix to the marketing
planning process to achieve business objectives.........................................................................3
P4 Produce and evaluate a
basic marketing plan for the IKEA............................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES ...............................................................................................................................9

INTRODUCTION
In this assignment, a detailed report prepare about IKEA. All marketing essentials are
describing in this company's context. Marketing essential is a technique to analyse the market in
proper manner (Pike, 2015.). In this report firstly conclude the key roles and responsibilities of
the marketing function for the IKEA. Further, this report contains marketing mix and lastly is
described the perfect marketing plan for IKEA.
TASK 1
P1 The key roles and responsibilities of the marketing function for the IKEA.
IKEA is a Swedish company founded by Ingvar Kamprad in 1943. This company's
founder was listed by Forbes in 2015 in the top 10 richest persons of the world. It is a company
known for its new and innovative designs for furniture and appliances (carborough, 2016). This
company works as eco-friendly manner. Further, it has a continuous product development,
operational details and cost control that allow it to reduce its prices.
About the marketing functions of IKEA, it refers as the essential points that will helps to
company to identifying and source potentially products for the market place and further promote
them use the differentiating technique from similar products. In marketing function, it can be
said that it is related to the exchange of goods and services that are brought from manufacturers
till the place of consumption. It satisfies the needs of all customers.
The major role and responsibilities of the marketing function of IKEA Company as follows:
 Collecting and Analysing the Market Information – it is an important function of
marketing. In this context it refers as an effort is made to understand about the customer's
preferences thoroughly. For this purpose, all relevant information about customers are
gathered and analysed (carborough, 2016). After performing this function, it is access to
know that what type of product has the best buying product. It is an opportunity in the
target market.
 Marketing Planning – a manager of any organisation have record all information about
the market and customers so that he would be able to make a proper plan. This plan helps
to achieve goal and targets of that organization. A marketer makes a perfect plan to reach
at a certain height.
 Product Designing and Development – This point plays an essential role in product
selling to its customer and a company which product and services is attractively designed
1

and better from its competitors, can increase its sells more than the product of a company
which product quality is not better.
 Grading and Standardisation – Standardisation means standard quality, design, weight,
size, colour or raw material to be used for manufacturing any product. For all these
procedures it is ascertained that a particular product will have some peculiarities (Lanier,
2017). The product is sale on the sample basis because many traders of a product look
that sample and give order in large quantity. It is good for the company in respect to the
achieving the targets. From this way, customer has no doubt in his mind about those
products.
 Labelling and Packaging – This process is also important because the focus of this
process is on the avoiding the damage, breakage, destruction of the products and make
safe transportation. Label is a paper slip that is use in the process of founding the product
itself (Stern, 2017). This slip contains all the information regarding product and it
provides procedure and all information. In facility of packaging lifting, conveying
handling of the goods is included. Many customers demanded different types of goods in
quantities. Therefore, there are requirement of special packaging of that goods. In
packing materials it contains canister, plastic bags, bottles for liquid material, wooden or
tin boxes etc.
 Branding – Every organization's want is to increase its sells and his product image that
should have special identity in target market. So that, it should be a unique identification
of its products and services which is provided by it. For this purpose the company give a
different name to its products and it allows being distinct from other competitors (Lanier,
2017). This is called Branding. Branding process objective is to show that the goods and
services of a given organization is differed from any other firm. It has its own identity.
Branding allows to the company that it can popular its product threw branding. IKEA has
a brand name and this will increase its success.
 Customer Support Service – It is essential for every company to satisfy its customers in
all situations because they are the king of market. This function includes in the chief
functions of marketer. By this process, a marketer should be done every possible help to
the customers. The market manager of IKEA Company can give these types of offers to
2

their customers such as after sale service, technical services, credit facilities, handling the
customer complaints properly, maintenance services.
P2 Roles and responsibilities of marketing relate to IKEA
The role and responsibility of the marketer is to develop the personality of a brand. In
IKEA the marketing managers makes its brand image about its quality products and services.
This can make it differ from others (Philip, 2014). For the purpose of determining the price of
any product, this company must consider the customer’s perspective on the market competition.
It is assumed that high price of a product is considered as it is more qualified and the best ever in
the market.
The roles and responsibilities of marketing that are related to the wider organisational are
as under:
Enhance the liability – IKEA provides the best products and services to its targeted customers
in the different place with all facilities like packaging and labelling. This process shows that for
any supplier providing ad serving product and service in the certain time, especially in short time
so that management team can provide other quality services in such a short time.
Marketing communication – in the role and responsibilities of the company consists the
marketing communication with the other organization. This give a positive feedback to that
particular company. For example, IKEA have employees that give to the organization positive
feedback.
Promotion of Services – there are many promotional schemes arises in recent years that an
organization can use for the communication system and have given important facts that relates
with the roles and responsibilities. In IKEA, it offers its customers to buy online and they also
give special offers for its online customers.
Quality of Products and Services – for every organization the success is fully depends on the
quality of products. A company must have calculated the ratio of the standard of the products
which is based on the customer's interest to the products (Malhotra, 2015). IKEA have to
consider the need of the product. IKEA usually understand which product is more important in
the market and what is the demand of it.
For the managerial sector of the company, it is essentials that they should take care about
the services and products which is sale to its customers. For making a better communication with
3

its customers it is compulsory that they take all personal responsibilities. In this time all
strategies and feedback can be easily taken from the customers by regulating the roles and
responsibilities in the company such as IKEA.
P3 The ways and methods in which the IKEA applies the marketing mix to the marketing
planning process to achieve business objectives.
In last two decades, there is a particular brand name has become the synonym to furniture
and home furnishing industry is IKEA. It is a Swedish furniture company. It is very popular
company and majority of its customer are fully depended on it. It provides highly reliable
assemblies, furnitures and fittings etc. In the below section there are discussing about overall
marketing strategy and marketing mix of this company (Malhotra, 2015). There are seven P's of
marketing mix and these P's use for understand its potential that makes it the most popular brand
in furniture industry :
1. Product – IKEA is a leading company in manufacturing of furniture and furniture related
equipments across the globe. It is a retail chains spread across the world. There are a wide
range of products give by this company and it offers many kinds of products. In its offers,
it can be broadly divided into so many products like outdoor furniture, eating, desks, beds
and mattresses, cooking, chairs, baby and children's products, decoration, toilet stage,
leisure, mirrors and safety products. Further, it also provided lightning, sofas and
armchairs, kitchen cabinets and appliances, storage furniture, textiles, rugs, tables,
Swedish food, tools and hardware, TV, media furniture and wireless charging. All of
these products are available at IKEA stores. It also available at IKEA online stores.
2. Price – IKEA have too many competitors in retail chains as well as local supermarkets at
global level. IKEA apply a vision that is low prices and its concept is available more
products at very cheap rate. The production team of IKEA makes low cost furniture for
offices and household (Philip, 2014). The basic concept is to focus on efficient
operational details and cost control. During the period of its global expansion it controls
its product prices and sale more products. Further, in enhance of its market value Ikea has
been consistent and has taken after the centre way in evaluating its administrations. This
technique has make it to flawlessness.
4

3. Place – The company got an excellent place as a part of its marketing mix. It follows a
different distribution strategy. It has a global distribution network and huge volumes on
manufacturing side. This is useful in increasing the value to weight ratio. It has more than
25 distribution centres and it has its business operations in more than 50 countries. IKEA
have 9500 different type of products across the world. It uses procuring material in
optimum because it reduces the transport costs. Organization use more of ocean transport
rather than road transport (Mishra, 2016). These are some strategies adopted by IKEA.
This reduces transport cost, handling cost and also lowers the carbon footprint.
4. Promotion – the company focuses a lot on its marketing and operational activities. They
use several promotional tools like print, online ads, TV, billboards etc. in marketing mix.
Recently IKEA launched a new UK wide advertising campaign. In this campaign they
suggest home is the most important place. There are also an advertising campaign was
launched to gauge whether women or men are worse at home. The innovative idea behind
the campaign is that a known social clutter leads to an issue which can be avoided by this
company. Further, there are many online ads promoted its products. It refers as the
problems faced by people and it offering solutions (Zgarrick, and et.al 2016). IKEA uses
different medium like newspaper as well as digital media. These promotion schemes
support the products by making them.
5. People – the organization provide more importance to the people and in people there are
customers, employees and staff members. The members of its management team believe
on the idea that they are simple straight forward people with passion for office and home
furnishing. All the employees are work together and with enthusiasm and fun. They
satisfy their customers and it is the core values level. In the organization there are 21000
employees in production, 116000 in retail and 18000 in supply as of last year report. The
company does not discriminate on the basis of race, religion and ethnicity.
6. Process – it conducts many business process in place. Their business process including
production and operation scattered more than ten countries. It makes its own wood which
is made in its own sawmills and after they produce high quality furniture. They also
provide in house production facility (Zgarrick, and et.al 2016). It is a highly developed
technique. It follows the clean environment slogan like corporate social responsibilities.
It has a unique supply chain and different techniques in inventory management. It designs
5

a different policy in terms of price. They buy raw materials from their 1800 suppliers for
making the best quality products. IKEA have a code of conduct which is give to its
manufactures. In this there are rules and various guidelines which help them to reduce
their checks for environmental friendly.
7. Physical Evidence – physical evidence for this company is its huge store layouts. It
provides more than shopping experience. It has more than 350 stores across the world. In
their stores there are specific path layouts that allows guide arrows. This will help for
getting desired item to their customers (Moore, 2014). Their stores are club with many
restaurants for refreshments and there are also baby handling areas for mothers. In their
stores there are a large parking areas. All the stores are situated outer side of the city in
big areas. In the largest stores the first number is in Sydney and another one is at
Montreal. This covers the all marketing mix of IKEA.
P4 Produce and evaluate a basic marketing plan for the IKEA.
The basic marketing plan is a tool which is used to understand the main business issues
are analysed by SWOT, PESTLE and STP analysis. It is help to IKEA for achieving desired
goals and targets. For this purpose the SWOT analysis is as under :
1. Strengths – it is a company which is committed to workforce. It is source of the
organization's innovative ideas and concepts. This is known as strong international brand.
It uses the concept that is “showroom- warehouse” it will help in reduce the retailing cost.
The management always focuses upon the cost efficiency.
2. Weaknesses – Americans did not like this company's products especially its kitchen
cabinets, sheets, beds and appliances etc. The style selection according to consumers are
limited. Competitors of this company also have good quality and low cost products. Its
size is too long and scale of its global business could make it difficult to control as
standards.
3. Opportunities – it can increase its sales volume with the use of e commerce in the digital
marketing scenario. This will improve the customer service (Pike, 2016). There are an
increase demand in greener products and also low priced products. The company should
follow its current strategy which offerings on the grid and looking for empty spaces.
6

4. Threats – there are a recession time periods which slowdown the consumer spending
pattern and disposable income reduces. Many new competitor coming up with low cost
house hold and furnishings.
Further, PESTLE analysis is as follows :
1. Political – The company has changed its current facility because it was forced in the
culturally diverse Chinese market. It is a part of the national trends and changes, it is seen
as an example of a firm that are get success in domestic as well as international market.
2. Economic – it uses wood from responsibly managed forests that maintain biological
diversity and re plantation (Hair Jr, and et.al 2015). This company use only the material
which is recyclable because the flat packaging. Its product line consists a series of air
inflatable furniture products.
3. Sociological – it supports the educational project which is run by UNICEF. It committed
to promote the rights of children healthcare. This is a social initiative.
4. Technological – in the goals of this company it includes low costs, Adequate product
functionality. Such goals induce the company to promote same type of product and
technological developments.
5. Legal – it should look at the corruption more because it is a situational problem. There
are many online marketers who trying to earn income by generating web traffic.
6. Environmental – it should be taken into consideration that they should not compromise
the safety and quality of products while they would involve in production.
Segmentation, targetting and positioning of IKEA are as follows :
1. Segmentation – it uses the market segmentation strategy which allows its products
toward a particular target market (Hair Jr, and et.al 2015). It means company focuses to
attract the target market rather than the whole market. There are one of the basic
segmentation is to market the product sustainability.
2. Targetting – it is based on the market segmentation strategy, the target market of it is
young customers and youth who are focused on their lifestyle and space saving. These
younger consumers have the modern style and appetite to technology. The another target
7

market is older customers who wants the things that is light and not too bulky. This is
because they tend to be downsizing (Baker, 2016). These customers attract on simple
products that these products can provides comfort to them.
3. Positioning – they fix their target market and this needs to position them so that they are
able to achieve their goals. This company provides the simple products that are tested
against the durability.
Marketing plan for the company IKEA is as under:
Current Position – The company was established by a Sweden resident Almhult in 1943. This
company is one of the world's largest furniture retailer in present organisation. In the current
business environment the company's CEO is Peter Agnefgall and it has 149000 employees. Its
turnover is 40 billion dollar and its headquarter in Almhult. It has 355 stores in 29 countries
across the world.
Goals and Objectives – IKEA has a vision is inspirational view of the business and it helps to the
position the organisation. This provides the focused direction for the future and it main goal is to
develop a logistical efficiency in their business.
Target Market – the target market of Ikea is rich class of people and that sector where the quality
furniture is required. Furthermore, These younger consumers have the modern style and appetite
to technology. The another target market is older customers who wants the things that is light
and not too bulky.
Strategy – the company Ikea's strategy for become a successful brand, it follows the forward
thinking strategy and this is made it the best furniture seller in the world. In addition to this, it
changed retail again and it follows the solving method for the worst part of buying furniture.
This is resulted in the lot of anxiety and indecision.
Resources – in this company it can say that it uses the renewable energy which consumed by its
infrastructure in its buildings and stores (Philip, 2014.). In its goals criteria it makes sure about
that all of its products and services are packaged and sell with recyclable, renewable materials
which are useful for the environment.
8

CONCLUSION
In this above report, marketing essentials and its uses in the company IKEA are
described. The company sale many products and provides several services to everyone. The
report contains functions of marketing, marketing mix in the context of this company (Stern,
2017). In addition to there are a marketing plans which conclude the SWOT and PESTLE
analysis for this company. After, there are segmentation, targetting and positioning of its market.
REFERENCES
BOOKS and JOURNALS :
Pike, S., 2015. Destination Marketing: Essentials. Routledge.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Lanier, P. and Lanier, M., 2017. Marketing Essentials for Independent Lodgings.
9

Philip, K., 2014. Marketing Essentials. A brief course: Translated from
English. Moscow:“Williams” Publishing House, 496.
Malhotra, N.K., 2015. Essentials of marketing research: A hands-on orientation. Essex: Pearson.
Mishra, A., 2016. Describing Marketing.
Zgarrick, D.P., Alston, G.L., Moczygemba, L.R. and Desselle, S.P., 2016. Pharmacy
Management: Essentials for All Practice Settings, 4e.
Moore, G.A., 2014. Crossing the Chasm: Marketing and Selling Disruptive Products to
Mainstream Customers (Collins Business Essentials).
Pike, S.D., 2016. Destination Marketing Organizations–Research opportunities in an era of
uncertainty. In Book of Abstracts-6th International Conference on Tourism. International
Association for Tourism Policy (IATOUR).
Hair Jr, J.F., Wolfinbarger, M., Money, A.H., Samouel, P. and Page, M.J., 2015. Essentials of
business research methods. Routledge.
Baker, M.J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Stern, P.N. and Porr, C.J., 2017. Essentials of accessible grounded theory. Routledge.
10