IKEA Marketing Plan: Roles, Mix, and Organizational Impact

This report provides a detailed analysis of IKEA's marketing strategies, covering various aspects such as the important roles and responsibilities of the marketing function, the relationship between marketing and other organizational departments like HR, Finance, R&D, and Production, and the application of the marketing mix (product, price, place, promotion, people, process, and physical evidence). The report also includes a comparative analysis of ASDA's marketing mix and concludes with a comprehensive marketing plan for IKEA. The report emphasizes the importance of marketing planning, market research, promotion, physical distribution, and customer support services for IKEA's success, and highlights how these functions are interconnected within the wider organizational context. The marketing plan outlines strategies related to product, pricing, promotion, and distribution, as well as IKEA's focus on customer satisfaction and its unique supply chain management techniques.

Marketing Essential

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Important roles and responsibilities of marketing function...................................................1
P2 Roles and responsibilities of marketing relate to wider organisation....................................2
TASK 2............................................................................................................................................4
P3 Marketing mix to analyse marketing process........................................................................4
TASK 4............................................................................................................................................6
P4 Marketing plan of IKEA........................................................................................................6
CONCLUSION................................................................................................................................9

INTRODUCTION
Marketing is viewed as an important tool in today's competitive environment. The
process of marketing compromise of making, delivering, advancing and distributing such good
and services that meet customer needs and wants in an effective and efficient manner (Baker and
et. al., 2016). Success and growth of any enterprise depend upon how it promote their product or
services among potential buyer that immediately seize their attention. The given report is based
on IKEA which is a Dutch based multinational group that mainly deals in offering furniture
items. It covers roles and responsibilities of different marketing function, determining how
functional area of organization is linked with marketing function, marketing mix of two
organisation and produce marketing plan.
TASK 1
P1 Important roles and responsibilities of marketing function
Marketing refers to the process to bought goods and services to the place of consumption
to satisfy the need and want of customer. It is a way through a company can communicate to its
customers in order to influence them to purchase product and services. Main aim of an
organisation is to earn high profit and that can achieve through customer satisfaction. Hence
marketing is more emphasize on promotional activities to communicate products offering and its
benefit to end consumers. Following are key roles and responsibilities of marketing functions
that allow IKEA to attain its objectives and target in more efficient way.
Marketing planning:-
Marketing planning is essential to identify the potentiality of market segment that help
Ikea in achieving their objectives. For example if Ikea has a 25% of market share and want to
increase it to 40% than he must have to prepare an marketing plan regarding promotional
techniques used by them. This will help Ikea to determine various strategies that may help in
increasing the market share of company (Berkowitz, 2016).
Market research:-
Marketing research refers to gathering and analysing information related to the target
segment. It includes some questions like what do consumers want?, In what quantity?, At what
price? etc. These questions help in collecting and analysing relevant information related to
consumers and on the basis of this analysis efforts are made to identify that which product has
best opportunity in market.
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Promotion:
Promotion refers to the mean of communicating consumers about the product and
services of company and influencing them to purchase these products. Promotional methods are
Advertising, personal selling, sales promotion, publicity and many more. Ikea uses social media
to promote their product because majority of people uses internet to access detail about product
and services as it is more easier and convenient way to collect information (Brassington and
Pettitt, 2013).
Physical distribution
This function of marketing take into account decisions related to carrying product from
the place of production to the place of consumption. It includes decisions related to selection of
channel of distribution, transportation, inventory levels, storage and warehousing. Ikea must
develop such distribution strategies that help company to deliver right product on right time and
at right place to get maximum customer satisfaction.
Customer support services:-
Customer is the king of market and customer satisfaction is the key to get success in
market. Therefore, an important function of marketing is to provide customer support services
like after sale services, technical services, customer complaint handling, credit facilities,
maintenance services etc. Providing such services to customer help company to achieve
maximum customer satisfaction.
Standardization and Grading:-
Standardization refers to the process of producing product according to pre-specified
standards regarding quality, weight, raw material and price of product and grading refers to
classifying product into different group according to their features like size, shape, quality etc.
This marketing function help Ikea to assure customer about the quality of product and also
influence their decision regarding purchasing of product (Brooks and Simkin, 2012) .
P2 Roles and responsibilities of marketing relate to wider organisation
Marketing is one of the important department which is working to get positive results
from business activities. It is essential to know what has to be done and when. In IKEA there are
various departments through which association can make changes in roles and responsibilities of
workers. There are various activities to achieve targets, so there must be proper coordination
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among department. As trend of marketing is increasing, so they have contact with various
departments.
Human-resource-management and Marketing: HR department works for upliftment
of workers. There are many changes in business operations which has to be applied by workers
of IKEA. So HR department has to work according to market need. When there is need of
workers, then this affects operations of association. If some wrong person is selected in
association , then this affects business operations (Caragher, 2016).
Finance and Marketing: For marketing of product, there is use of various measures, so
it is essential to plan actions as per budget. Budget must be set by manager after analysing
market and emphasise must be on performing business activities in efficient way. There must be
use of approaches which covers more people and this helps to appropriate profits and reducing
cost of promotion. While promoting product, it is essential to work as per pre-determined budget,
this helps to make strategies accordingly.
Research & development and Marketing: Marketing department is closely related with
research and development department. There is use of various approaches which are competent
to know what improvement can be done in product. To make good image there is requirement of
approaches which are competent to society. When manager of IKEA is in contact with consumer,
then they can know about use of techniques which are effective for growth of company.
Customer service & Marketing: Customer service is the department which tries to
know about query or problem faced by company. There is important role of manager to perform
business operations in proper way through which customer satisfaction is possible. In case
marketing manager came to know about queries and this affects business's growth.
Production and Marketing: Production is the department which manufactures product
and it is essential to know what has to be produced which is trendy and helps to work as per
customer demand. There must be good relations between production and marketing manager
through which best product can be served and there will not wastage of resources (Desai, 2013).
There is requirement of factors which is helpful for increasing sales and profits. Manufacturing
unit ah to deliver features of product to consumer which are efficient for its growth. This helps
marketing department to market product in effective way.
Sales and Marketing: Sales and marketing are two departments which are effective for
analysing market and this helps to make changes in constant and bored from regular designs.
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When marketing manager deliver features of furniture in effective way, then this helps to
increase sales. It is essential to know what can be done through which plans and activities are
according to current trend. There are possibilities that marketing manager has to sale product.
There are some profit margins which has to be considered by marketing as well as sales manager
(Dibb and Simkin, 2013).
TASK 2
P3 Marketing mix to analyse marketing process
Marketing mix include several marketing elements of product and services that are used
by company to promote its brand and product in market. Marketing mix elements includes
product, price, place, promotion, people, physical evidence, process that help Ikea to provide
right product at right time and at right place. Ikea uses marketing mix to formulate strategies
related to product, its pricing, promotional strategies, distribution strategies etc.
Product:
Ikea is an global furniture retail based company and which covers a wide range of
product offering. Ikea product includes outdoor furniture, baby and children's products, eating,
bathroom stage, desks, mirror, beds and mattresses, chairs, decoration products, kitchen cabinets
and appliances, lightning, sofas etc.
Price:-
Ikea follows cost leadership pricing strategy in which they sell product at low price or on
no frill pricing basis to attract more and more customers. Ikea also uses psychological pricing
method, for instance they set price of a product 0.99 Cents than 1 US Dollar.
Place:-
Ikea group is an international company which sell its products and accessories in several
countries like Europe, North America, Asia and Australia. It operates 340 stores in 28 markets
around the world (Dibb and Simkin, 2013). Ikea also uses online channel to sell its products
through its website ikea.com. It has more than 25 distribution centres that transfer products from
suppliers to Ikea stores directly which reduces handling costs,transportation costs and lower the
carbon footprint.
Promotion:-
Ikea more focuses on marketing activities. It uses promotion tools like TV advertising,
sponsorship, newspaper and magazine advertising and many other elements , but due to its
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popular brand name best promotional strategy that bring results for Ikea are sales promotions and
trade promotions. For sales promotion Ikea uses coupons, price discounts, festival promotions to
ensures that customer get benefit over special offers.
People:-
Ikea gives equal importance to the people, i.e. its customer and employees. Culture of
Ikea is based on togetherness, enthusiasm and fun and customer satisfaction is at the core of the
values. Ikea more focus on customer satisfaction by providing quality product at reasonable price
and at the place of their choice (Gamble and et. al., 2011).
Process:-
Ikea makes its own wood-based furniture and wooden components. It has in house
production facility and has 44 production units that are scattered across 10+ countries. It has
unique supply chain and inventory management techniques as it buys product from 1800
suppliers and itself gives a code of conduct to manufacturers which state guidelines for their
operations and finished products is delivered in pieces to be assembled by customer which saves
cost.
Physical evidence:-
Physical evidence of Ikea is its large stores that are out of station and offer huge
selection of furniture that provide more than just a shopping experience. Its stores has specific
path layouts with guide arrows that help you find your desired item, very large car parking,
modern display technologies, restaurants for refreshments etc.
Marketing Mix of ASDA
Product: It is greatest contender of IKEA association and arrangements in a few things
including new organic products, vegetables, fabrics, home machines, well-being and excellence
items, stationery etc.
Price: ASDA is offering its items at least expensive expenses through appropriation of
evaluating techniques. They additionally consider the costs factors that can emerge amid
preparations process (Hsu, 2011).
Place: ASDA firm is exist at a few nations as it has retail locations around 8000 so clients can
achieve effortlessly to get items and administrations to fulfil their requirements or needs in a
successful way. They likewise attempting to grow business at a few nations.
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Promotion: It likewise consider a few strategies, for example, web, TV, prints, announcements,
hoardings, print media and numerous more to provide data with respect to merchandise and
ventures (Illing and Anders, 2016).
People: They think about their workers and make better culture which depend on harmony,
eagerness and in addition fun inside an association.
Process: In this, ASDA utilize sensible costs with the goal that individuals can reach and
purchase organization's items and administrations in a proper way. It will be bolster in settling on
purchasing choices to the clients.
Physical Evidence: It refers to material part of any service. Customer tends to depend on
material cues as there is no physical evidence. for example: web pages, packaging,brochures etc.
TASK 4
P4 Marketing plan of IKEA
Marketing plan is the technique which provide guidance how to perform business actions.
Marketing plan is the comprehensive document which shows how business activities has to be
performed. This is blue print which affects business approaches in effective way. This helps to
perform business operations effectively and gets positive results out of it (Jones and Rowley,
2011). There is use of policies which are effective for accepting changes in roles and
responsibilities of company. Due to changes taking place in business environment manager has
to work as per requirement and this affects business roles and responsibilities of managers. To
make good image in market, it is essential to work as per requirement of business objectives.
IKEA is the association has god image in market and then there are possibilities of working due
to use of policies which affects business objectives. There is discussion about marketing plan of
IKEA-
Overview: IKEA is the company which deals in home furnishing furniture,. This company works
at international level and operates business since 1943. this is the large retail store of furniture.
IKEA serves around 9500 products through 18 stores in overall UK. To increase sales they
operates at international level also.
Vision: Vision of IKEA is to provide satisfaction to society for day to day life of people. This is
effective when they design furniture of good and latest trend, so they tries to select source
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through which activities can be performed in competitive way. Their main goal is to deliver best
quality product.
Mission: Mission of IKEA is to provide product which are affordable by every group. They
provide wide variety of furniture which is effective for satisfying demand of consumer.
SWOT analysis
Strength
IKEA deals in flat pack technology, this is
their best features which makes them
competitive in market. This is their USP.
As IKEA has good image in market, so they
various suppliers which help them to minimise
cos of product.
IKEA has varieties of product, so they have
wide customer range of school, colleges,
restaurants. This proves that their product are
attractive.
Store of IKEA is effective as they have kids
play zone, so this makes their good image in
market.
IKEA satisfy need of customer whether it is
related to latest design or related to traditional
market.
Weaknesses
They have less marketing tools as compared to
other competitor's. They promote their brand
less when they are entering in new segment or
country.
Sales personnel is less as compared to
customers. This affects image of IKEA as
customer has to wait to be in contact of sales
department.
IKEA has concept of self services. This is one
of the biggest weakness which affects image of
company. Sometimes customer are not aware
of features of product then this affects sales of
IKEA.
Opportunities
They can contact to various supplying agents,
this outsourcing is effective for approaching
changes in roles and responsibilities.
They must modify design and cost of product
must also be low.
They use resources which are best but they do
not consider cost feature.
Threats
They have various competitor's in market, this
proves to be like danger for association.
As modifications are raking place in furnitures,
them this must be communicated to society
before competitor's do so.
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IKEA must cover other parts of UK and they
can enter in other fields.
Marketing mix
Product- There are varieties of product served by IKEA in furniture segment. They
mainly serve outdoor furniture, baby and children's products, eating, bathroom stage, desks,
mirror
Price- IKEA has various price strategies as per customer. They using prefer skimming
pricing strategy.
Place- IKEA has store in all over UK. There is requirement of some factors through
which targets can be achieved and they use effective distribution techniques which are essential
for business growth.
Promotion- IKEA use various promotional measures through which they can
communicate to customer. They have innovative ideas as per customer taste.
Physical evidence- Physical evidence of IKEA is attractive. They have various attractive
furniture styles through which changes can be performed and helps to improve sales of
association.
People- There are various customers of IKEA such as Schools, colleges, movie halls,
corporate offices, etc. They have also small scale customers. They provide satisfaction to large as
well as small scale customer.
Process- IKEA has many production units, so this helps to perform business operations in
effective way. They use machines which are significant for growth of business.
Ansoff's matrix
Ansoff's Matrix is the model which is helps in planning regarding to product or market
growth strategy. They are four element in Ansoff's matrix. They are discussed a under-
Market penetration- This is the segment which is used when IKEA wants to market
existing furniture in existing market.
Product development- When IKEA launches new variety of furniture then this technique
is used. In this new product is launched and this is effective for making creating demand of new
product in existing market.
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Market development- In this segment managers focuses on new and emerging market. In
this promotion is of existing product only.
Diversification- Under this component, there promotion of new range of furniture to new
customers.
STP
STP stands for segmentation, targeting and positioning. This is one of the best technique
through which company can make changes in their roles and responsibilities. There is use of
factors which makes brand of IKEA effective and competent in industry.
Firstly manager of IKEA has to analyse Market and then find who are their key customer.
To provide best and desirable product. Hence as per customer demand, they are divided under
different basis (Kennedy and Parsons, 2014).
Targeting means to provide goods which works towards what is need of consumer. This
helps to provide satisfaction to consumer and this helps to reduce time of consumer as well
employees.
Positioning means to make brand known in society. This helps to work as per change in
business objectives. They are various method through which manager can use to promote brand
and provide knowledge related to new product and services.
Competitive analysis
These days people are more aware of their home decor, so they give emphasise on décor
of house. Hence scope of furniture business is increasing. Walmart, ILVA, ASDA, Barn
Furniture, etc. are some core competitors of IKEA.
Marketing budget
Budge is one of the most important factor of business operations. There is planning
related to selection, execution of business operations. It is essential to work as per change in
business environment. There are many activities related to business operations, such as
advertisement, transportation, manufacturing, etc. So manager of IKEA provides following
budget-
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
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Initial money 50000 28900 22400 34900 44400
Investment 12000 25000 36000 40000
Total 50000 40900 47400 70900 84400
Marketing
expenditures
Advertisement 5000 2500 3600 4500 7400
Sales promotion 6300 9600 4200 10000 2300
Direct marketing 9800 6400 4700 12000 9000
Total 21100 18500 12500 26500 18700
Available balance 28900 22400 34900 44400 65700
Monitoring and Controlling –
Managers of IKEA plan various approaches, it is essential to work under it. This is
possible when they work as per change in business objectives. There are possibilities that
business operations are not as requirement, so there is impact of profits and cost of product. So
manager must control and monitor business operations (Lamb, Hair and McDaniel, 2011).
Monitoring and controlling are the actions which has to be performed by manager so they can
guide workers in what actions has to be taken.
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