Business & Marketing Communication: IKEA Case Study Analysis 2019

This case study provides a comprehensive analysis of IKEA's marketing plan, focusing on its history, vision, mission, values, and product portfolio. It examines IKEA's competitors in New Zealand, assesses internal and external factors impacting its business and marketing communication effectiveness through SWOT analysis, and evaluates current marketing strategies including segmentation, pricing, placement, and promotion. The study also proposes promotional strategies tailored for New Zealand consumers and discusses negotiation strategies for effective communication. The analysis covers product levels, pricing strategies, place strategies, and promotion mix strategies employed by IKEA, offering a holistic view of the company's marketing approach and strategic considerations.

Running Head: MARKETING PLAN
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Table of Contents
Task 1:........................................................................................................................................2
History of the company..........................................................................................................2
Vision & Mission of the company..........................................................................................2
Values & Beliefs.....................................................................................................................2
Product portfolio offered by IKEA.........................................................................................4
TASK 2......................................................................................................................................4
TASK 3......................................................................................................................................5
Discuss THREE key points for each factor and evaluate their impact on IKEA’s business
and marketing communication effectiveness.........................................................................5
Task 4.........................................................................................................................................8
IKEA’s current marketing strategies as follows:....................................................................8
Task 5:......................................................................................................................................11
Discuss IKEA’s products/services based on the THREE (3) product levels:......................11
Price strategy Discuss ONE (1) of the following pricing strategy of IKEA:.......................11
Place strategy of IKEA:........................................................................................................12
Promotion mix strategies mostly used by IKEA:.................................................................12
TASK 6....................................................................................................................................13
Promotional strategies to effectively communicate the IKEA brand to New Zealand
consumers.............................................................................................................................13
TASK 7....................................................................................................................................14
Hosted Model.......................................................................................................................14
Negotiation strategies...........................................................................................................14
Accommodating...................................................................................................................14
Avoiding...............................................................................................................................16
Collaborating........................................................................................................................16
Compromising......................................................................................................................16
Competing............................................................................................................................17
References................................................................................................................................18

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Task 1:
History of the company
IKEA is famous for delivering quality home furniture at the global level. It delivers their
goods and services in more than 380 countries across the world. This organization has also an
exclusive museum in Almhult, Sweden, which make different to this from other organization.
Moreover, it is evaluated that IKEA offers their goods at reasonable prices with modern
architectural designed furniture, which shapes the individual living at the global level (IKEA,
2019).
Vision & Mission of the company
Vision Statement of IKEA
The vision statement of IKEA is “To create a better everyday life for many people”.
Mission Statement of IKEA
The mission statement of IKEA is “To deliver the global area of modern architectural
designed furniture products and services at the reasonable cost, which will support an
individual to afford them.
Values & Beliefs
Belief
This organization has believed that an individual has something unique and our organization
strives to have similar values in the method it operates.
Values
There are certain factors that might be considered as the values of Ikea like togetherness,
caring for the individual as well as the planet, cost-consciousness, simplicity, and renew and
improve, different with meaning, give and take accountability, and direct by example. These
are discussed below:
Togetherness

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Togetherness is the culture of IKEA. This organization believes that togetherness is a heat of
the IKEA and it demonstrates that each member of this organization has made faith with each
other and systematically operate on the same goal (IKEA, 2019).
Caring for the individual as well as the planet
This organization believes in the positive change because of the positive change in the
presents activity of business could favorably impact on future growth.
Cost-consciousness
In the current era, people believed in making functional as well as beautiful home and this
organization consider the same to retain their consumers and satisfy them. This organization
could also offer their product and services at an affordable cost that could lead to getting a
positive outcome (IKEA, 2019).
Simplicity
This organization is more believing in simplicity, which could be possible by staying close to
the reality of the situation.
Renew and improve
This organization is always looking for new methods or techniques for improving their
current situation and sustain its position in the marketplace. Moreover, this organization
performs well in today then we can perform better for the upcoming period. Moreover, it is
evaluated that the findings effective solution could be effective for the success of the business
and make inspiration for tomorrow (IKEA, 2019).
Different from a meaning
IKEA don’t want to be like other companies because it has their own unique features that
make it different. This organization has questions to the existing situation and evaluate the
situation with the unconventional method to reach a reliable conclusion.
Give and take responsibility

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This organization is believing in the authorizing the individual. This organization also
believes in giving and taking the accountability to increase the growth of the firm in the least
time. Moreover, trust in each other could inspire to get higher competitive benefits and
motivate each one to give their best effort in the development.
Lead by example
This organization believes in motivating employee by giving the example of their values,
achievements to employees. It will lead them to work effectively and meet the aim and
objectives of an organization in a limited time (IKEA, 2019).
Product portfolio offered by IKEA
IKEA is an international brand that delivers affordable and smart home furniture to its
consumers. IKEA has followed three qualities in their products and services like durability
design, and affordability. The portfolio of the IKEA’s mainly focuses on certain elements that
are their passion, value, and quality for reattaining their position in the marketplace. It has
offered superior value to their cost. In addition, it is examined that the main reason for
selecting this range is imperative in making a higher profit and retaining their position in the
marketplace (IKEA, 2019).
TASK 2
Analyze TWO (2) potential competitors in New Zealand and provide an overview
Competitor Strengths Weaknesses Product
Features/
Benefits
Promotion
Strategy
Kmart Local brand
recognition
Compliance
cost
Affordable rate Sales promotion
Aldi Unique selling
point
Conflict High-Quality
products
Social media

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TASK 3
Discuss THREE key points for each factor and evaluate their impact on IKEA’s
business and marketing communication effectiveness
Internal Analysis
The internal analysis is effective for evaluating the internal condition of the firm and leads to
reach at the valid conclusion. There are two factors that might be considered in internal
analysis like strengths and threats (Gillespie & Riddle, 2015).
Strengths
It could be effective to examining different factors like KPI (key performance indicators),
quality products, and strong brand. These are discussed below:
KPI (key performance indicators)
Moreover, this organization has evaluated their strengths by considering KPI (key
performance indicators) that demonstrated that this organization is used in the systematic
process. In addition, it is examined that key performance indicators are imperative in getting
reliable outcome (Gummesson, Kuusela, & Närvänen, 2014).
Quality
This organization has delivered quality products and services at a reasonable cost that could
lead to influencing a huge number of customers and reacting them for the long term.
Strong brand
This organization has a strong brand at a global level that could facilitate the organization to
easily inspire the individual of a country for purchasing goods and services of the firm
(Helmefalk, 2016).
Weakness

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The internal situation of the firm could also be evaluated by considering the weakness of the
firm.
Size of IKEA
Size of their business across the world could eliminate the possibilities of making the quality
of goods and services. It could be a major factor that might influence the overall outcome of
the organization (Kotler, Keller, Ancarani, & Costabile, 2014).
Quality at a lower cost
It is harder for the organization to maintain the quality at lower cost. Hence, it can be
evaluated that an organization should consider this factor for getting a reliable result.
Moreover, the organization could consider such factors for making higher competitive
benefits.
Size of organization
It could facilitate to show effective atmosphere due to the big size of the organization. In
addition, it is also examined that sometimes organization is failed to give their best efforts in
their working place and making reliable outcome (Kotler, Keller, Ancarani, & Costabile,
2014).
External Analysis
The external analysis is effective for collecting reliable information towards factors that
might influence the overall outcome of the organizational task. There are two factors that
could evaluate the external situation of a firm like threats and opportunities. Moreover, it is
evaluated that higher demand for greener goods, lower cost, and higher demand for water
usage. Thus, it could be effective for getting reliable information (Gummesson, 2017). These
are discussed below:
Higher demand for greener goods

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In the current era, a higher demand for greener products and services could lead to getting a
favorable outcome (Hakansson, 2015). Moreover, it is examined the demand for goods and
services could facilitate the organization to make a huge number of products and deliver to
their consumers as it would directly impact on IKEA’s business.
Lower cost
Lower cost could facilitate to the firm for increasing their sale in the least time, which would
be effective in getting a feasible solution with respect to the research matter.
Higher demand for water usage
In the recent business era, higher demand of lower water usage, as well as carbon footprints,
could mandate to IKEA for offering their goods and services in the least time and facilitates
to make a higher profit (Varley, 2014).
Threats
It is also a factor might influence the overall outcome of the research. There are different
elements that might affect the overall growth of outcomes like the growth of home products,
competitors, and economic factors. These are discussed below:
The growth of home products
Slower growth of the housing products at an initial level could be the threat of the firm. It
will make fear among IKEA for sustaining their position in the marketplace (Stadtler, 2015).
Competitors
Probabilities of coming more competitors in the country could create a threat for the firm.
The higher number of competitors could impact on the price of goods and services that might
influence the overall outcome of research.
Economic factors
Economic factors might influence the disposal income of an individual that would also create
a problem for the organization, which will decline the overall outcome of the research. In

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addition, it is evaluated that the organization could fail to maintain their accuracy in getting a
favorable outcome (Constantinides, 2014).
Task 4
IKEA’s current marketing strategies as follows:
Segmentation strategy
The segmentation strategy is effective in getting reliable information about the research
matter. Moreover, it is evaluated that a segmentation approach is effective for focusing on the
particular area and people to operate a business and reach at the favorable conclusion
(Schaltegger, Burritt, & Petersen, 2017). There are different kinds of segmentation strategies
that are considered in the marketing as it would also lead to getting higher competitive
benefits named geographic segmentation, demographic segmentation, and psychographic
segmentation, and behavioral segmentation. It is discussed as below:
Geographic segmentation
From the application of geographic segmentation, IKEA will determine a particular area and
leads to get a reliable outcome. There are two factors that will be considered in this factor like
Population density and Nation as it is discussed as below:
Nations
IKEA will concentrate on the national country for offering their services. It considers both
developed well as developing countries to operate their business effectively and lead to get a
reliable result. The primary reason for selecting this element is that this organization desire to
improve the comfort zone in the home.
Population density (urban, suburban, rural)
On behalf of population density, this organization will mainly focus the urban and suburban
people for delivering their goods and services in limited time. The main reason of selecting
this factor is that this area of people giving more value to the modern furniture, which will be

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effective for getting a positive response in limited time and cost (Keegan, Schlegelmilch, &
Stöttinger, 2014).
Demographic segmentation
The demographic factor could be effective in segmenting goods and services on behalf of
family size/life cycle and occupation. It could lead to operate the business systematically and
support to get a favorable outcome. This organization mainly focus on the modern family to
deliver their goods and services. Apart from this, it is evaluated that the organization has
considered two kinds of individual salary based and business income people to deliver their
services in the least time. Moreover, it is evaluated that these factors might lead to get higher
competitive benefits and sustain their position in the marketplace (Parsons, Maclaran, &
Chatzidakis, 2017).
Psychographic segmentation
IKEA will also consider psychographic segmentation to deliver their products and make a
positive atmosphere in the least time. In addition, it is evaluated that there are mainly two
factors that are considered in the psychographic segmentation name social class and lifestyle.
Moreover, it is also evaluated that organization has mainly focused on the medium and higher
class of people to deliver their services and make their unique image in the marketplace.
Apart from this, it is evaluated IKEA will mainly focus on those consumers who prefer to
have modern products and services rather than normal goods (Frynas & Mellahi, 2015).
Behavioral segmentation
The behavioral segmentation is effective for collecting reliable information towards the
organizational goal. In this, an organization will concentrate on two factors like occasion and
attitude. In this, the organization will mainly concentrate on the occasion to increase their
sale. In this, the organization will mainly use different promotional tools on Festive and other
specific occasion and increase the profitability of the firm. Apart from this, it is evaluated that

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organization will also focus on the attitude of consumers to deliver actual product feature to
them and increase probabilities of getting higher competitive benefits (Demangeot,
Broderick, J., & Craig, 2015).
Targeting strategy
The Targeting strategy will be effective for targeting consumers in limited time and cost. In
addition, it is examined that there are different strategies that might be considered as a
targeting approaches named Undifferentiated, Differentiated, and Concentrated marketing
strategy. It will be effective for collecting favorable outcome. In this, IKEA will use
undifferentiated marketing strategy for making a favorable image in the marketplace. This
strategy will lead to the firm for offering unique feature products and services that support to
make a different image of products and services among a huge number of consumers. It will
also lead to higher profits in limited time (Bharti, Agrawal, & Sharma, 2015).
Positioning strategy
IKEA will focus on the consumers who give more preference to have modern home products
and services. These consumers could be imperative in getting higher profit in the least time.
In addition, it is also evaluated costs be effective in getting higher profit hence this
organization has delivered its services in the least time. In addition, it is examined that the
organization could consider certain factors like modern technology, prompt services, and
comfortable atmosphere. In addition, it is examined that workforce training is imperative in
getting the reliable information as it improves the efficiency of an employee to make a
positive relationship with their consumers (Zutshi, Creed, Holmes, & Brain, 2016). Thus, it
is evaluated that this factor might influence the overall outcome of the organizational goal. It
could lead to making a positive image in making higher value to consumers. It could also be
effective for obtaining the feasible result towards the organizational task.

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Task 5:
Discuss IKEA’s products/services based on the THREE (3) product levels:
KEA:
There are three levels, which might be considered by IKEA like core products, actual
products, and customer value. These are discussed below:
Core product:
Core products demonstrate the basic feature of the products and services of the firm.
Moreover, it is evaluated that IKEA’s products considered a different feature like
Functionality, affordability, and Customer Value. It could be effective in making a different
image of the firm in the marketplace. This will force the employee for getting higher
competitive benefits (Koniorczyk, 2015).
Actual Product:
The actual product has offer Furniture as well as Housewares to their consumers. It will also
be effective for making a unique image in the marketplace.
Augmented Product:
IKEA offered many services to their potential consumers like Return policy and instruction
manual. It will lead to getting a favorable outcome.
Price strategy Discuss ONE (1) of the following pricing strategy of IKEA:
Price adjustment tactics
The price strategy is effective for attracting a huge number of consumers at least time and
cost. In this, the organization has considered different kinds of strategies that are known as
new product pricing, Product mix pricing, and Price adjustment tactics. Moreover, IKEA is
considered price adjustment tactics for operating their business. This method will lead to the
firm to make its pricing strategy on behalf of the pricing policy of the market player and
increase probability getting favorable outcome (Gandini, Gennari, & Cassano, 2014).

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Place strategy of IKEA:
Selective distribution
The place strategy leads to attract consumers and directing to a favorable outcome. In
addition, it is examined that there are certain place strategies that are considered by a firm
named intensive distribution, selective distribution, and exclusive distribution. IKEA will use
selective distribution strategy and offer their goods and services in a specific place. It could
be effective for making higher competitive benefits. This method is more effective as co
pared to other distribution strategies (Guercini, La Rocca, Runfola, & Snehota, I2014).
Promotion mix strategies mostly used by IKEA:
IKEA will mainly use three strategies to gain their competitiveness in the marketplace such
as advertising, sales promotion, and public relations and publicity. These are discussed
below:
Advertising
Advertising is an imperative tool that assists in IKEA for promoting their goods and services
in the least time. It could be imperative for increasing the awareness of products and services
by considering certain sources like Newspaper, TV, and radio. For illustration, IKEA has use
TV advertising wherein organization promote their products and services in the least time and
cost. It will also support to target a huge number of people at the same time that could save
time as well as the cost of the organization (Acar & Puntoni, 2016).
Sales promotion
Sales promotion is another tool that could lead to the firm for increasing the sale of the
organization. There are different methods that might be used by a firm like seasonal discount,
occasion sale, and cards. For example, IKEA has to use the seasonal discount method to
promote their goods and services.
Public relations and publicity

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Public relations and publicity is also another imperative method that will be used by IKEA to
increase their profitability and sustain their position in the marketplace. For illustration,
IKEA will directly meet to their consumers and inform unique feature of products and
services that could also be supportive to make public relations in the least time (Amann,
Roehrich, Eßig, & Harland, 2014).
TASK 6
Promotional strategies to effectively communicate the IKEA brand to New Zealand
consumers
IKEA will use two methods like Online and social media marketing and mobile marketing
method to make higher competitive benefits. It will also be effective to cover a huge number
of consumers. These are discussed below:
Online and social media marketing
Online and social media marketing offers an opportunity to the firm for directly meeting with
the consumers and comprehend their opinion, experience, needs, as well as their interest in
particular goods and services. It will be imperative in getting the positive as well as negative
features of the company’s products and services which will offer an opportunity to improve
the negative points of products and services. For illustration, IKEA will our different sources
of social media like Instagram, Facebook, YouTube, Twitter, and Google. It will be
imperative in getting a favorable outcome (Hill, Jones, & Schilling, 2014).
Mobile marketing
Mobile marketing is also another imperative tool to promote the goods and services of the
firm. This method will support to the consumers for using the services of the company by
considering their smartphone, which will save time and cost of the firm and lead to make
higher competitive benefits. For example, the organization will offer the company app to

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their consumers and inform the consumers towards goods and services. It will lead to getting
a favorable result in the least time and cost (Farhana, 2014).
TASK 7
Hosted Model
From the above chart, it is evaluated that in New Zealand, power distance has scored low i.e.
22 as compared to Sweden. Along with this, individualism has scored high i.e. 79 as
compared to a business in Sweden. Along with this, in masculinity, New Zealand has scored
high i.e. 58 as compared to the business of Sweden. It is also assessed that in terms of
uncertainty avoidance, New Zealand has scored very high i.e. 49 as compared to the business
of Sweden. Along with this, in terms of long term orientation, New Zealand has scored low
i.e. 33 as compared to business deals in Sweden. In the last, in the element of Indulgence,
New Zealand has scored almost similar to Sweden business. These factor shows that New
Zealand can be a favorable international business culture in terms of expanding the business.
Negotiation strategies
Accommodating

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This strategy focuses on providing the opposing side what it desires. The practice of
accommodation occurs while one of the parties wants to maintain the peace as well as
observes the concern as minor. For instance, IKEA company requires formal dress hence it
may develop the casual Friday policy like a low stake. It indicates that the company can
maintain peace with rank and file. An individual, who implements the accommodation as a
negotiation strategy, should have a requirement to maintain track as well as builds resentment
(Carlsson-Wall, Kraus, & Lind, 2015).
Avoiding
The avoidance strategy could be also used by IKEA to develop negotiation. By ignoring as
well as delaying the conflict, the avoider hopes to resolve the problem without disagreement.
In addition, those who actively eliminate the conflict regularly have low esteem as well as
keep the position of low power. In certain situation, avoiding can facilitate as a profitable
conflict management approach like after the dismissal of popular however unproductive
workforces. The hiring of more productive substitute for the position can decline the conflicts
(Carlsson-Wall, Kraus, & Lind, 2015).
Collaborating
Collaboration strategy could be used by IKEA by combining the ideas developed by different
people. The aim of using this strategy to address the creative strategy that is acceptable for
everyone. This strategy calls for appropriate time commitment to all negotiation. For
instance, IKEA can develop work collaboratively with the top authority in order to develop
the policies. However, collaborative decision-making about office supplies can waste time on
other activities.
Compromising

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This strategy could be also used by IKEA Company by both parties for avoiding the conflicts
to give up the element of their position for establishing an acceptable solution. The manager
may frequently use compromise at the time of contract negotiation with other businesses
while each party can lose something valuable like customer services (Hapsari, Clemes, &
Dean, 2017).
Competing
Competing strategy deals as a zero-sum game where one side wins as well as other loses.
Along with this, highly assertive qualities may fall back on competition as a negotiation
approach. This strategy works best in some cases of conflicts like emergency situation
(Hapsari, Clemes, & Dean, 2017).

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