Marketing Essentials Report: IKEA's Strategies and Planning Process

This report provides a comprehensive analysis of the marketing essentials within IKEA, a leading multinational furniture and home goods retailer. It delves into the roles and duties of the marketing function, emphasizing the importance of merchandising and its impact on achieving organizational goals. The report explores the roles and responsibilities of the merchandising department, highlighting its contributions to image building, planning, monitoring, and strategy development. Furthermore, it examines the application of the marketing mix (7 P's), including product, price, place, promotion, process, people, and physical evidence, in IKEA's planning process. The analysis covers how IKEA utilizes these elements to make decisions, allocate resources, and gather information effectively. The report also discusses IKEA's strategies for product development, communication, and sales support, as well as the importance of events and employee training. Overall, the report aims to analyze the effectiveness of IKEA's marketing activities in achieving its business objectives and expanding its global presence.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Roles and duties of a marketing function of IKEA................................................................1
P2 Roles and responsibilities of merchandising in context with organization............................3
TASK 2............................................................................................................................................5
P3 Role of marketing mix to planning process...........................................................................5
TASK 3............................................................................................................................................7
P4 Marketing plan.......................................................................................................................7
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Marketing essential is a term which defines all the indispensable factors which comes
under promotional activities. In fact the main motive is a profit maximization by satisfying the
needs and wants of whole society by introducing new and innovative products. Basically,
marketing is all about transferring of a goods from supplier to customers by adopting various
effective techniques (Aaboud, and et. al., 2017). This report throw lights on merchandising
policies of IKEA which is a one of the leading multinational group popular for its household
furniture, kitchen appliances as well as home accessories and have their branches across national
boundaries. Therefore a cited company uses marketing elements while launching or introducing
their products at a marketplace with the help of effective techniques of promotion. Instead, of
this it also highlight the indispensable role of 7 P'S in attainment of goals and objectives of a
company by considering affect of micro and macro environmental factors which also plays a
very eminent role. Apart from this, report is going to describe the essential role and
responsibilities of marketing department towards achievement of particular goals and target. At
last, the main aim of report is to analyse the effectiveness of marketing activities in success of an
organization (Aad, and et. al., 2012 ).
TASK 1
P1 Roles and duties of a marketing function of IKEA
Merchandising department plays a very eminent role behind the success of an
organization due to their effective role and responsibilities towards goals achievement. In fact it
is an appropriate way of determining best opportunities available at a marketplace to attain given
objectives of a IKEA with the help of resources (Al-Hasan, 2016). Apart from this, roles and
responsibilities of marketing department act as a indispensable tool in achieving objective of an
organization by introducing or launching new and innovative products to attract millions of
customers. Instead of all this, they are liable to increase revenue, market share and contribution
in company development or profitability.
Some of a indispensable roles and duties of a marketing department are mentioned
below :-
 Strategy :- Senior manager of a marketing department is responsible to make effective
strategy to conduct promotional activities in a proper manner by considering essential
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factors and elements. In fact making of different impressive schemes is very much
important because overall task and activities of promotion is dependent upon strategies of
marketing. In additional, it is helpful in estimating future cost to design whole plan and
process with the help of accurate data and information (Thomas, 2016).
 Market research :- It is a key responsibility of a marketing function to conduct
investigation programs which is very helpful in decision making process by acquiring
real data and information. In fact according to this duty selling department is to asses
overall market in a effective manner to get aware about strategies and policies of a their
competitors to modify their existing plans. Apart from this research process is very much
indispensable in a attaining the goals and objectives of an organization with the use of
accurate evidences and proofs available in past (Mansour, 2016).
 Product development :- According to this role of marketing department they are liable to
enhance the quality and standard of a goods to attract million of consumers with the use
of essential resources. In fact overall success of IKEA is dependent on growth of a
company product by introducing unique and innovative commodity different from their
competitors in every manner. Apart from this whole business is dependent upon
qualitative goods because profit and goodwill for a cited company is earned by
transferring product from supplier to end user with reasonable rates (Babin, 2015).
 Communications:- Interaction is a major policy of attaining objectives in a minimum
time period with the help of convincing power. Therefore customers get attracted with
polite nature of an organization and sometime it can also change the mind of various
consumers. In fact marketing department conduct promotional programs and campaigns
to promote products and services at a marketplace by consulting with specialised and
skilled persons (Zikmund, 2015).
 Sales support :- One of major role which is played by merchandising function is to
improve sales performance and speed up development of business with the help of
different activities. In fact they need to prepare an impressive presentations for sales team
and motivate them towards their given target by increasing numbers of sales.
 Events :- To improve knowledge and skills of sales executive it is very essential to
conduct an effective session to motivate employees towards increase in sales. In other
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words events act as a motivational tool for IKEA in encouraging their workers to perform
their functions in a efficient manner (Baines, 2013).
Other duties of a marketing department are stated below:-
 Management of whole enterprise.
 Implement promotional activities.
 Motivate employees of an organization.
 Create brand awareness at a marketplace.
 Controlling and regulating future cost.
 Acquiring appropriate information and data.
Apart from this, IKEA is a leading brand spends lots of money in training their
employees towards their goals and sales target in a given time frame (Fill, 2013).
P2 Roles and responsibilities of merchandising in context with organization
Marketing department is very much useful for success of organization due to their broad
concept and complex nature. In fact they perform major rules and responsibilities for
development of overall company by manufacturing different products and services. It plays a
very vital role in promoting the whole business with clear vision of an organization to build an
image of a company at international level (Page, 2013). The main motive is to convert raw
materials into finished goods on the demand of a different consumers by fulfilling their essential
needs and wants.
Merchandising department plays different roles and responsibilities towards IKEA are
given below :- Image building :- Managers of a marketing department needs to establish a goodwill of
an enterprise by promoting their products across national boundaries with the help of
different promotional techniques. In fact due to the positive reputation of an
organization at a marketplace capture the attention of millions of consumers because of
their qualitative products (Baker, 2016). Planning process :- According to this role they are liable to plan overall activities and
task in a proper manner to avoid any future mistakes and errors with the help of
impressive planning process. In fact proper plan act as a useful tool in estimating all the
future cost to minimize their upcoming losses. On the other hand it covers all relevant
points which is going to happen in a coming time period (Saren, 2016).
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 Monitoring and reviewing :- This method is very helpful in analysing overall activities
which is already occurred for evaluating a consequences of a promotional activities. The
main motive of a monitoring program is to remove barriers and obstacles of marketing
activities. It aims to provide information about hidden problems which may occurred at
the time of performing functions of selling products and attracting numbers of clients.
Instead of all this various methods are used to conduct monitoring and reviewing
programs for example observation, personal reviews, testing techniques etc. Strategy maker :- One of a major responsibility is to prepare an effective schemes
according to the demand of an organization by analysing overall essential factors. It is a
blueprint or documentation of all the activities and task which is played at the time of
promoting (Banerjee, 2013). Economy development :- Growth of an organization and expansion of a business across
national level automatically develop economy of a nation by raising the living standard
of a weaker sections of society. Emergence of many more companies creates
employment opportunity for unemployed individuals. Expansion of business :- IKEA is an international brand expanded their business across
globe for capturing the attention of domestic as well as foreign customers. Introduction of innovative products:- They are responsible to bring new new and
creative ideas with the help of specialised and creative peoples. In fact marketing
department of a IKEA are liable to launch trendy products by analysing the taste and
preferences of whole society by fulfilling their demand. Introduction of foreign products
have a greater impact on a domestic customers because they get attracted towards
creative goods which force company to manufacture unique (Beatty, 2014).
 Management of marketing function :- It is not easy to handle or regulate promotional
activities which requires managerial skills to conduct overall activities and task in a
proper manner. Manager quality is very much important to conduct programs of product
enhancement.
At last, marketing department plays a very eminent role in establishing a successful
business across national boundaries by performing all the major functions for example
controlling, regulating , cooperating, coordinating between different levels of an organization
(Samuelson, 2014).
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TASK 2
P3 Role of marketing mix to planning process
Cluster of a modern and traditional P'S is known as marketing mix which shows the
essential role of a 7 p's in marketing activities. It is defined as a set of marketing techniques
which firm has been uses to perform its promotional activities in a target market. Basically
traditional merchandising mix is classified into four different parts that is place, promotion,
product, price whereas modern mix consist of process, place and physical evidence. On the other
hand, cluster of a marketing is very helpful in decision making process due to their broad
concept and complex nature (Braslow, 2015). Apart from this 7 P'S plays a very eminent role in
a marketing department of an organization which are mentioned below :- Decision making process :- Useful in making impressive decision by showing accurate
information and data. Resources :- Utilisation of all the resources in a proper manner by allocating it for
necessary use.
 Collection of information :- Gathering of accurate and reliable data with actual
evidences.
Traditional marketing mix consist of 4 P'S which are stated below :- Place :- It is only company that grants right to become a franchisee in market in which
rights have not provided to the company but there by maintained exclusivity (Caporaso,
and et. al., 2010). It includes experience, local market knowledge and its existences and
corporate culture and its values. It is operated in almost every country like: Europe,
France, Canada, United states and middle east and Asia pacific. The main aim of the
company is to catered wide market with product offering to its valuable customers. Product :- Ikea from the starting stage identified the need of customers and target
prospective, and studies potential segment who are going to buy the product those are
offered by Ikea. It consist of detail list of product that range from furniture products to
fittings and other home items. It changes continuously with the change in the
environment (Chamorro-Mera, 2014). The designed are new and fresh and different in
all prospective. The wide range of products at Ikea can determine complete portfolio
included: eating, Desks, mirrors, cooking, bathroom storage, beds and mattresses ,
chairs and many more.
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 Price :- It is based on evaluating price of products as a sort of non kind because its
administration and its individual nature. It has being observed that company is deal in
monopolistic business. It has been consistency and after the centre path in evaluating its
administrative control and delivering economical price to its customer so that they can
able to buy easily (Miranda, 2014).
 Promotion :- It is important part of company that help them to provide product to
customer reach. There are various mode through which Ikea can promote its product.
But It use ATL medium like Newspaper, Television as well as digital media. The most
appropriate print ads of Ikea are said to be smart to attains customer attention towards
their products. It presences are there in geographies through communication too
compare from other companies.
Contemporary mixture of P'S act as a very indispensable role in a planning process of a
promotional activities of IKEA to attract millions of customers (Rubio, 2014). Later on extended
marketing mix is also added in a marketing activities which is used while planning process are
given below :- Process :- According to this, an organization must adopt proper procedure to distribute
their product across national borders with the help of effective transport facilities. In
fact IKEA planned there distribution techniques to delivered their goods and services at
a right time. Therefore they can capture the attention of numbers of customers and
famous for its services in all over the world. Physical evidence :- On the basis of this P an organization explains its customer
experiences towards products. In fact it describes the views and opinions of a consumer
on the basis of their feedback (Clow, 2013).
 People :- One of indispensable resource for whole organization because all the
activities and task are regulated and controlled by human resource only. In fact
personnel resource of a IKEA plays a very eminent role in converting raw materials
into finished products. Apart from this it act as a indispensable tool for development of
whole organization by attaining their target in a minimum time period.
At last all theses cluster of marketing P'S act as mandatory tool in a planning process for
promoting product at international level by identifying the requirement of a goods. In other
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words it act as a pillar of selling programmes by achieving objectives of a promotional activities
by increasing sales (James, 2013).
IKEA and McDonald is very much different from each other in every aspect and there
differences are mentioned below :-
IKEA McDonald
It is a multinational organization manufacture
household appliances and furnitures as well as
famous for its qualitative products.
International enterprise produce foodstuffs for
whole society for example burger, desserts,
cold drinks etc.
Limited market size. Unlimited.
Deal with electrical equipments. Popular for its tasty foods.
Food is exactly similar in every restaurant in
all over the world in terms of taste, amount,
size, ingredients in burger, tomatoes in salad
etc.
Whereas products manufactured by IKEA is
not exactly same in terms of size, use, quantity,
quality etc.
Apart from all this both the organization are different due to their products and quality as
well as standard or position at a marketplace (Cohen, and et. al., 2010). Both the companies have
their own strategy and policies of running their business due to their demand by domestic and
foreign customers. On contrary to this marketing plans of companies are very much different
during comparison process due to their product and quality. Instead of all this every companies
have their own plans and strategy of promoting its products across national levels. While
exchanging goods and services at international market both the organization ready to face
challenges arsing across national boundaries. McDonald is one of attractive brand across national
boundaries with a concept of standardisation whereas IKEA is different in terms of their product
service in every aspect (Cua, 2013).
TASK 3
P4 Marketing plan
Planning is a profitable process which act as a indispensable tool for removing the
obstacles of an organization by adopting effective strategies. In fact accurate information and
data is required while preparing marketing plan by considering various major internal and
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external factors which plays an indispensable role in a plan (Reames, 2013). Overall
merchandising design is going through appropriate steps and process by explaining all the
mandatory elements are stated below :- Executive summary-Marketing plan of every business organisation must be effective so
that company can achieve its organisational objectives and goals of profit maximisation
and revenue generating in long term. This is an official document which contains
blueprint of business advertising and marketing efforts taken in future. There are different
activities and tasks to make more efforts for customer satisfaction. Being a leading brand
in retail sector of United Kingdom, it must adopt appropriate and efficient approach for
marketing. Purpose of this document should be specific and measurable so that firm can
capture lion share in market (Chai, 2013). A marketing plan can also be considered as a
tool which helps a business to decide on the best utilisation of its resources to achieve
corporate objectives in future. Company overview-Ikea is a leading company in retail market environment of United
Kingdom. It deals in furniture for any kind, kitchen appliance and home accessories
which are inseparable part of daily life. It has headquarter in Netherlands and designs
furniture. It was founded in Sweden in 1943 by Ingvar Kamprad. It has business in flats
and house, solar PV system, retail shopping centre and furniture all over the world. As
per latest data it has gained €2.538 billion profit on sales of €21.846 billion (Dioko,
2016). Situational analysis:- In this step an organization need to understand the lines of specific
product and services and try to estimate the existing marketing opportunity at a
marketplace so that a cited company able to grab it as soon as possible. Apart from this it
also going to describe the geographical area to sell its products in a target market by
analysing internally and externally. Instead of all this, situational analysis is very
important step in marketing plan because it helps in identifying the biggest threat of a
company and how well goods are sold at international market (Harris, 2010).
1. Internal analysis :- First step is to evaluate the internal factors which have a
greater impact on a overall planning process for example employees, operational
factors, financial structure etc. It is very essential to understand the role of workers
in production process as well as all the task and activities are controlled by them
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only. Internal analysis is all about assessment of all the factors which are internally
playing their eminent role in attainment of organization goals and target. Apart
from this, various factors are existed in a company which is used while making a
marketing plan such as capital, resources, labours etc.
2. External analysis :- Secondly, they need to asses all the extrinsic elements which
must be consider during planning process (Schwartz, 2010). Various external
factors are customer relationship, government, economy, cultural, technological,
legal etc. In fact all these factors have their own roles and responsibilities towards
an organization in different manner. It is very indispensable for IKEA is to
maintain their positive relation with their domestic and foreign consumers because
they are known as end user of a product. Apart from this government implemented
number of policies to protect buyer and seller from getting exploited by any fraud
and criminals. Instead of this, culture is one of a major factor which have a greater
impact on whole society as well as marketplace. Because every consumer have
different norms and beliefs which must be considered by IKEA while making
strategies or merchandise plan.
3. SWOT analysis :- According to this assessment an IKEA get aware about their
visible or invisible strength and weakness as well as available threats and
opportunity at a marketplace (Brownell, 2010). Therefore it is very essential to get
ware about their weakness to overcome in a minimum time period by removing
obstacles which might be arise in a success path. In additional due to the
emergence of numbers of competitors a cited company is going to face various
threats which influence the success of a product. On contrary to this, IKEA has to
grab the available opportunity at a marketplace to eliminate their threats which
influence their success. Objectives :- The main motive of IKEA is to maximize their sales by serving domestic as
well as foreign customers to build their goodwill across national boundaries. IKEA is an
international brand famous for its qualitative products due to their effective strategies and
planning process (Hoványi, 2013). Therefore their first and foremost objectives is to
minimization of losses and maximization of profit by increasing their sales over the seas.
9

Apart from this, IKEA has number of aim or objectives towards their organization are
stated below :-
1. Goodwill :- Building of image is a mandatory part for every company either small
or large to attract millions of customers at international level (Kirby, 2012).
2. Introduction of creative products :- It is very indispensable to launch new and
unique products on the basis of consumers taste or preferences for capturing their
attention.
3. Expansion :- To earn maximum revenue, expanding of a existing business is a
major technique or tool at international level.
4. Mutual understanding :- Effective communication between employees and higher
authority is also very much important part because it have a grater impact on their
relations.
5. Healthy environment :- Surroundings influence overall marketing plan in every
manner due to their broad concept and it affects minds of a working employees in
attaining goals and target of an organization (Jain, 2013). Strategies :- IKEA wants to make different and stunning schemes to achieve their
company goals in a minimum duration by fulfilling the demands of consumers as well as
organization. Therefore they make strategies for every departed of a marketing for
example pricing schemes, operational techniques, promotional tactics etc. for
safeguarding the extra cost. Basically it is very necessary to prepare impressive strategies
to hit the target of sales and marketing in a given time frame by satisfying whole society
with their unique and different products. Instead of all this, IKEA believes in planning
process to eliminate mistakes and obstacles for establishing a successful enterprise across
national boundaries (Ahuja, 2013). Tactics: Staff members of IKEA have to use different type of actions which helps in
doing advertisement of the products and services which the company is selling to their
consumers. The employees of IKEA have to organise different campaigns by using the
SMART objectives. They have to provide best payment services to their service users
which will assist in providing motivation to consumers to increase sale of company. It
will helps IKEA in attaining goals and objectives.
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 Budget: For doing proper and appropriate marketing, staff members of IKEA have to
make proper budget which will aid them in doing spendings (Medury, 2013). By the
below mentioned budget, they have to make proper plans and according to that actions to
be taken so that they can complete their work on specific time.
Marketing budget
Particulars
1st
year
2nd
year
3rd
year 4th year 5th year
Initial money 20000 2500 4800 4200 5600
Investment 17500 15200 15800 14400
Total 20000 20000 20000 20000 20000
Marketing
expenditures
Advertisement 7000 8000 6000 5000 7000
sales promotion 2000 2000 3000 2000 2000
Direct
marketing 3000 1500 2500 2500 1500
digital
marketing 3000 1000 2000 2000 2000
Social media 1000 1000 1000 1000 1000
printing 500 700 300 400 550
Events 1000 1000 1000 1500 1000
Total 17500 15200 15800 14400 15050
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 Control :- The managers of IKEA have to put proper control by using appropriate
policies and procedures which will help them in completing plan and according to that
they can maximise return. When manager put proper control on their subordinates then
this will aid them in improving performance by using the different and relevant tools and
techniques (Joshi, 2014). They have to do survey as well as collect feedback then this
will help managers in setting price of product according to the quantity in the competitive
market. Employees of make proper coordination among the members of other
departments.
CONCLUSION
By concluding this report, it has been summarized that marketing essential is very much
important and indispensable for transferring of goods and services from retailer to end user.
Initially, it explained the roles and duties of played by merchandising department in success of a
whole organization by developing overall company with the help of impressive techniques and
methods. After that, report is going to highlight the uses of modern and traditional P'S adopted
by IKEA to promote their product at a marketplace by considering essential elements of a
marketing. In additional, above assignment describes the comparison in between two leading
companies by highlighting their promotional strategies and policies which differentiate both of
them from each other in every aspect. On contrary to this, appropriate marketing plan is also
prepared by considering all the mandatory elements which are directly and indirectly dependent
upon each other in attainment of goals and targets of a company . Basically IKEA is a
multinational organization famous for its kitchen appliances and furniture by expanding its
business over the seas by fulfilling demand of domestic as well as foreign consumers.
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