Marketing Report: Analysis of IKEA's Marketing Strategies and Mix

This report offers a comprehensive analysis of IKEA's marketing strategies. It begins with an introduction to the marketing process and its significance for organizations like IKEA. Task 1 delves into the key roles and responsibilities of the marketing function, including financing, market research, pricing, promotions, distribution, selling, and product/service management. It analyzes these roles in the context of the marketing environment, emphasizing market research, business promotion, and distribution. Task 2 compares IKEA's marketing mix with that of other organizations, such as Tesco, examining product, price, place, and promotion strategies. The report also discusses the interrelationships between marketing and other functional teams, such as supply chain management, finance, and sales. The report concludes with a basic marketing plan for IKEA, which can enhance sales and customer satisfaction.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Key roles and responsibilities of marketing function...........................................................1
M1. Analysis of roles and responsibilities of marketing in context of marketing environment. 2
P2. Relation of roles and responsibilities to wider organisational context.................................3
M2. Significance of interrelationships among marketing and other functional team in an
organisation.................................................................................................................................4
D1. Critically analysis of key elements of marketing function and interrelation with other
functional units............................................................................................................................5
TASK 2............................................................................................................................................5
P3. Comparison of other marketing mix with other organisation...............................................5
M3. Business objectives can be achieved by different applied tactics........................................9
TASK 4............................................................................................................................................9
P4 & M4 Basic marketing plan for IKEA...................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing process enhance value of products and services for their targeted customers
and finally it supports to organisation. Each company is using contemporary marketing concept
to enhance it's sales and value of products for their customers (Al-Hasan, Thomas and Mansour,
2016). Marketing is an essential element for any organisation to survive in tough competition
market and beat their rivalry companies. This report is based on IKEA which is an international
retailer company deals in furniture, kitchen appliance and home accessories. This report
including details on roles and responsibilities of marketing functions, application of marketing
mix in different organisations and finally basic marketing plan which can enhance sales of cited
business entity.
TASK 1
P1. Key roles and responsibilities of marketing function
Marketing contains many functions in it which are required to
increase it's production and sales, as IKEA is working in retail sector so it is
essential for them to use these function in appropriate manner. Some
marketing functions are given under these points:
Financing: In this section, it is essential for cited business organisation to
find out investors to manufacture their products and start further process
which are required to develop and sales of products and services in to their
targeted market. Finance is basic need for any organisation to develop their
products, promote, distribute in to market so management of company have
to make a proper discussion with their investors to take their approval for
new product and services.
Market research: To make a product which has all basic qualities and
features which a customers wants in that particular product can be possible
by making a proper market research. So it is essential for organisations to
make a target market by which they can makes a better product (Babin and
Zikmund, 2015). Primary and secondary are two methods which are
includes in 5this and it is based on organisation which one they wants.
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Pricing: Consideration of price is has a huge significance for any
organisation to be successful or not. Basically, it depends on company, in
which market they are working. Management has to select an appropriate
pricing strategy as per their market structure. Competitive pricing strategy
has to be selected by a company if they are working in a perfect competition
market. They have to use a price on which other companies are dealing in
that particular product and market. In premium pricing can be effective for
organisation if they have determined to work in monopoly market.
Promotions: To be successful in market, it is required for any organisation
to use promotional activities. Market research process can help to identify
which type of promotions can help to organisation to enhance their market
share and enhance communication of product in wider community (Baines,
Fill and Page, 2013). Facebook, Twitter and other social media platform can help
organisations fro better communicate of product in it's target market.
Distribution: Appropriate management is essential in this section, each
organisations have a separate department for to manage supply chain
management. So they have to make a proper distribution of product and
services in their targeted market by which they can attain their objectives.
It is also essential for retail organisation to full fill demands of target
market so they have to make appropriate distribution centres in market.
Selling: It has a close relation with marketing and it is a final function of
marketing process. After selection of target market, price, promotion,
distribution channel selling process starts. Sale product has to be as per
targeted factors otherwise it can impact on company's motivation and also
in their position.
Product and service management: After determining of price,
distribution, promotions and selling of product in target market, it is
essential for any company to manage their service and products supply and
delivery chain effectively. For any organisation, it is essential that their
goods has to be effective for their targeted customers. Customers feedback
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system can help to an organisation to manage quality in their products and
services.
M1. Analysis of roles and responsibilities of marketing in context of
marketing environment
In the context of IKEA, marketing haves a huge significance in context
of marketing environment (Baker and Saren, 2016). Here are some points to
describe roles and responsibilities of marketing in combined mixture micro
and macro environmental factors:
Researcher: Marketing process contains a main element market research.
It is required for organisation to make changes in their order process. By
using this, a company can adjust order quantity after analysing demands of
market, as well as they can make changes in their products after making a
proper research of other rivalry company's products.
Business promoter: Marketing is a term which is generally used to
business or product promotions in target market. It increases value of
product and as well as number of people which knows about that particular
product. So by this business can easily develop in a target market and it can
reduce market rivalries which is required for any company for a bright
future.
Distributor: Marketing process generally enhance distribution in a
particular market so it finally provides a better service to customers
(Banerjee, 2013). It helps to maintain proper supply in a market which can
make a better impact on it's targeted end users. So it is essential for any
company to evaluate their distribution process.
P2. Relation of roles and responsibilities to wider organisational context
As IKEA is retail company and they are having their own suppliers from Asia Pacific so
it is essential for them to make a proper analysis of customers needs and communicate the same
with their suppliers. Retail market contains a huge competition so it is essential for cited business
entity to make a proper marketing activities in this market to reduce their rivalry. Here are some
roles and responsibilities of marketing for IKEA:
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Market selection: This process help to identify available different types of market for cited
business entity in which they can deal. As IKEA is working retail market so now it is essential
for them to manage their prices as per other available products in market. Many companies are
working in retail furnitures so it is required for them to keep pricing as competitive standards by
which they can give a tough competition to other companies to increase their market share.
Different markets are having distinct scope of profit generation so now it depends on company in
which market they wants to deal.
Product betterment: As they are working in furniture and other home & kitchen appliances so
it is essential for them to make a better products. Because they are dealing with direct end users
so it is required for them to make a better products as per needs of consumers. So by this IKEA
can increase their sales by developing their products as per demands of their customers which is
essential for them (Beatty and Samuelson, 2014). Market research is main element which helps
to company what things are increasing or decreasing values of their products and services in
market and it appeals them to make changes.
Market analysis: It is an another feature of marketing process which increases values of
products and services for their customer's. It also establishes a communication in between
company and end users. As they are working in home appliances and furniture so by this they
can get knowledge of what a customers having a problem during dealing with them. As well as it
supports to organisation to identify their new emerging rivalries in that particular market. IKEA
can increase their value for customers services by analysing their needs by communicating with
them.
Communication: It is a main value of marketing process that it gives a way to communicate
with their targeted end users (Braslow, 2015). By this company can get an exact feedback of
consumers regarding to their products and services. It is essential for them to make a better
product as per customers demands and given description regarding to a furniture. Also they can
get an information regarding to loopholes in their services also they can possible changes which
they can include in their acts.
So these are some roles and responsibilities of marketing for IKEA which can increase
their customers database also their effectiveness for their end users. They have to use it in
effective manner by which they can increase value for customers and increase their market share.
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M2. Significance of interrelationships among marketing and other functional team in an
organisation
Marketing activities and functions are having huge interrelationships with all teams and
units of organisation (Chamorro-Mera, Miranda and Rubio, 2014). As IKEA is working in retail
market so they are having various department to manage demands of customers. Here is
relationship in between other marketing and other functions:
Supply chain management team: It is essential for organisation to manage their supply of
products on each distribution centres. By using different marketing activities they can analyse
market needs and demands can make modifications on it. So this marketing process helps to
them to make a proper change in their supply chain management as per changes in demands from
a particular geographical market segment.
Accounts and Finance department: IKEA haves many branches in all over UK so they haves a
large accounts and finance department so according to market research they can allot finance to
their production and purchase team to increase their production and stock. So it helps to manage
all needs of organisation by which they can make a better change in minimum stock level.
Sales department: Marketing haves a straight connection with sales, marketing data is finally
have impact on sales. So marketing and sales teams are having huge co ordination for
organisational success and attain their business objectives.
D1. Critically analysis of key elements of marketing function and
interrelation with other functional units
According to Clow, (2013) , marketing haves a huge relevancy with
several teams of an organisation and it haves a large impact on
organisation. Research, strategy, planning and tactics are four major part of
marketing functions which are having direct connection with other
functional units like: accounts, finance and sales. Market research haves an
impact up on product development because it deliver data to marketing
team on which they have to make changes in products and services.
Marketing of a product includes these elements which can help to company
to increase values of products and services. A strategy of marketing can
increase and decrease values of cost of marketing which finally mark an
effect on pricing of that particular product.
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TASK 2
P3. Comparison of other marketing mix with other organisation
Each and every organisation uses marketing mix which support in determining product,
price, place and promotion. IKEA is using marketing mix to enhance their effectiveness towards
their customers and also it helps to them to improve their market share. Many other companies
which are working in same retail sectors are also using it. Each company decides their product,
price, place and promotion according to their business objectives and strategy, so all companies
haves a differentiation in marketing mix elements which are given under here in table:
Comparison of marketing mix in IKEA and TESCO
Marketing mix
elements
IKEA TESCO
1. Product. IKEA is working especially
working in retail furniture so they
have to develop their furnitures
which can easily adjust in home.
As they are having their
manufactures in Asian countries so
they have to make a proper
communication with them about
product design and it's
effectiveness for their users which
is must.
TESCO is a multinational company and
deals in grocery products. They are
having a huge range of products. Cited
business entity have products of large
manufacturers so they are not having a
lead on them to make changes in their
products as per their suggestions (Clow
and James, 2013).
2. Price. Attainment of objectives is must
for cited organisation so they are
using lower pricing strategy to
increase number of customers and
as well as by this they want to
provide a better consumer
satisfaction. Most users wants a
furniture which can easily adjust in
As TESCO is having a large range of
products to sale in market and it is a
leading company of grocery retail
market. It is working general grocery
retail market so cited organisation is
using competitive pricing strategy
which helps a lot to them to increase
their market share and as well as to
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their home, fulfil their needs in a
effective cost so cited company is
targetting to it's consumers by
using this pricing policy (Cua,
Reames and Chai, 2013). So they
have use cost effective labour from
Asian countries which are having a
better grip on furniture
manufacturing.
increase their sales in huge rivalry. As
company wants to retain it's position in
market so they are having a focus on
other competitors to manage changes in
it's prices accordingly.
3. Place. As IKEA is working in
international market so it is
essential for them to manage
demands of market. Cited company
haves more than 300 stores in all
over UK which is enough to them
to manage demands and supply of
consumers. IKEA haves a large
outlets which haves a huge space to
store furnitures and as well as it
haves in built restaurant, food shop
etc. to provide appropriate facilities
to targeted consumers. Most stores
are located out of town due to
consume a large area for outlet so it
is a negative point and loophole for
company.
As TESCO is working retail grocery
market so most of their stores are
situated in a central market where a
consumer can easily come for shopping.
Organisation is focused to deliver a best
convenience facility to their customers
which can increase their number of
customers and as well as by their they
can attain their sales and customers
targets (Dioko, 2016). To provide a
proper customer satisfaction and
distribution of products in target market
they are having different type of stores
which are Tesco Express, Extra, Metro,
Compact, Homeplus and Superstore to
according to market needs.
4. Promotion. It is an essential element for any
company to increase their number
of customers and show their
presence in targeted market
TESCO haves a big brand image in UK
market and they are having focus to
promote their pricing strategy in their
promotions. They are also using many
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(Hoványi, 2013). As they are
working furniture market so they
are promoting their newly designed
furnitures via advertisings in
electronic media (TV), print
media (newspapers and
magazines) which are working
effectively for them to increase
their sales. They are marketing and
promotional teams are using their
innovative ideas in actual
conditions like: recently they have
used a kitchen party campaign 'Be
happy Inside' to increase their
promotions and add new
customers with company.
types platform to advertise their
products, it's prices and offers for
customers. But they are mainly focus to
increase number of customers by making
changes in prices and also providing
discounts in various products. TESCO is
promoting it's business by making
charities in various NGO, this is the way
by which they can make a better image
in targeted market.
5. Process. It is related to procedures which are
used by company to manufacture
and deal with customers (Jain,
Ahuja and Medury, 2013). As
IKEA is a retail company and they
are having a their own manufacture
suppliers. As company wants to
provide a product on low cost so
they are not providing home deliver
services. They are having a huge
stock in their stores so a customer
which wants buy a product has to
go on store, select a product and
purchase it. It is simple process
which is used by company to
As TESCO is a grocery retailer company
so they are using online and offline both
methods to provide a proper customers
assistance. Many of their end users are
unable to come in their stores due to bad
health, old age and buy a product so they
are providing a online shopping and
home delivery services. In their online
retail shopping, customers has to place
an order of desired products and make an
online payment (Lane, 2014). Their
order will placed at their home after a
particular time period which is already
mentioned in order placing process.
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enhance their cost effective pricing.
6. People. As IKEA is working retail segment
and they are not having any online
services so it is essential for them
to make a proper communication
with their customers in their own
outlets. So cited company has
recruited local people in
organisation which are skilled to
communicate with customers to
appeal them to purchase a desired
product of them (Joshi, 2014).
Locals can easily get what a
customer wants in a furniture and
what type of specifications they
need in a furniture.
TESCO in working in international
market and they are working from both
mode offline and online retails. Higher
management of TESCO is highly focus
to deliver a better work and services by
their employees so they are focusing on
those people which are qualified and
educated to deliver their services and
manage their work accordingly. Cited
company wants to retain higher qualities
in their services so they are using a
highly educated and experienced
employees in their organisation.
7. Physical
Evidence.
It makes a direct impact on
customers by presentation of
products in their outlets. As they
are having a large buildings to
attract their so they are having a
huge impact up on their customers
by it. Restaurants and other
markets are also involved in
physical evidence part and over all
it is making a huge effect on
consumers to buy a furniture from
them.
TESCO has a positive and huge brand
image in their targeted market. So they
are having a normal types of their outlets
in market which are having a low
dependency on it. As they are providing
home delivery services so it is essential
or them to cut organisational expenditure
to retain their profits (Malhotra, Birks
and Wills, 2013). Same they are using in
online shopping, company' has simple
website design which can easily operated
by any customers.
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M3. Business objectives can be achieved by different applied tactics
Organisational targets are must to attain by efforts of management
and employees. So it is essential for cited organisation to keep their
services as per needs of customers. To provide a better consumer
assistance so in lower level management line, their managers are having a
focus on employee's services by which they can maintain their performance
as per their pre decided objectives (Martin and Reed, 2015). To increase
their brand promotions in new markets, they generally use promotional
campaigns in which they conduct several activities like: social media
campaign, Kitchen party etc. Mostly tactics works up on business objectives
so by this IKEA can attain their business objectives easily.
TASK 4
P4 & M4 Basic marketing plan for IKEA
A document which contains all details and outline of business promotions and developing
new markets in a particular year, stated as a marketing plan. Most companies has used this
format to enhance their market share and sales in a particular market and increase their scope to
deliver their products and services. A marketing plan is given under these points:
Analysis of market: It is first step of organisation in marketing planning, in this company has to
make a proper analysis of the market in which they are dealing. IKEA is working in furniture
market in which more than 8,113 companies are working, so they have to be prepare for tough
competition. £11.1 billion is total contribution of these companies in GDP of UK. This industry
generates more than £16.2 billion per year (Mittal, 2014). IKEA is mainly focusing on kitchen
furnishings so it is essential for them to make a proper marketing activities to identifies needs of
customers by which they can make a better products an services for their customers.
Segmentation: As IKEA is working in furniture industry so it is essential for them to make a
better quality module kitchen fittings which has to be durable and better in quality. According to
their market they have to make two types of segments which are ready made and order. Many
customers wants to buy a ready made furniture but some wants to make an order of furnitures
and fixtures according to available space in their home and store. So they have to make a
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