Marketing Essentials: IKEA and Barn Furniture Strategies Report

This report provides a comprehensive analysis of IKEA's marketing strategies, focusing on the key roles and duties of marketing functions and their interrelationships with organizational functions. It examines how IKEA and Barn Furniture apply the marketing mix to achieve their business objectives, including detailed tactics and strategies. The report delves into the importance of marketing in the environment context, market strategies, and segmentation. It includes an in-depth evaluation of key elements of marketing functions, such as research, tactics, strategy, and planning. The report also presents a marketing plan for IKEA, providing evidence-based insights and a critical use of the 7Ps of the marketing mix. The analysis covers various departments within IKEA and their connection with marketing functions. The report concludes with a summary of the key findings and recommendations for future marketing efforts.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and duties of the marketing functions ..................................................................1
M1 Roles and responsibility of marketing in the environment context......................................3
P2 Interrelationships between roles and responsibility of marketing and organisational
function.......................................................................................................................................3
M2 Importance of interrelationship between marketing and organisational functions...............5
D1 Critical evaluation of key elements of marketing functions.................................................5
TASK 2............................................................................................................................................6
P3 Different ways in which IKEA and Barn Furniture apply marketing mix ...........................6
M3 Different tactics applied by IKEA to achieve business objectives.......................................9
TASK 3............................................................................................................................................9
P4 Marketing plan for a IKEA ...................................................................................................9
M4 Detailed, Coherent evidence-based marketing plan...........................................................12
D2 Use of 7P's of marketing mix..............................................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14
.......................................................................................................................................................15

INTRODUCTION
Marketing is the process and activity of interesting potentials clients and customers in
business services or products. It generates the effective strategy that underlines business
communications, development and sales techniques. It is refers to the company activities which
is associate with selling and buying a service or product. It covers delivering, selling and
advertising products to large number of person. An employees who are work and perform in
marketing department of firm try to obtain attention of target customers by applying packaging
design, slogans, celebrity endorsements and other general media exposure (Baker and et. al.,
2016). Used of marketing is to satisfy the basic needs and wants of customers by providing
quality products. Marketing is important to the organisational and consumers in different ways
such as increase their living standard and gain maximum amount of capital. In present
assignment, chosen organisation is IKEA, it is a multinational group that sells and designs
furnitures, home accessories and kitchen appliances. This report divided into different parts
which includes; role and responsibilities of marketing functions and their relationship with
organisational functions. Different ways in which IKEA and Barn Furniture apply marketing mix
which is also determined in this projects. Marketing plan of IKEA which is also described in this
report.
TASK 1
P1 Key roles and duties of the marketing functions
Marketing deals with determining and meeting with social and individual needs of
customers. It is an organisational function and process of communicating, creating, delivering
and developing value to client and for managing long lasting relationship with them (Berkowitz,
2016). It is essential for the company to maximise their sales and revenues in limited time period.
Marketing function is a role of individual that supports a business to identify potentially
successful goods for the marketplace (Functions of marketing, 2017). There are different
functions of marketing which are determined as below:
Gathering and evaluating market Information: It is a primary function of marketing, it
is the role and responsibility of marketing manager to conduct research program. During this
process they play essential duty in order to identifying the basic needs of customers and current
trend of marketplace. IKEA sell different kind of home appliances to the clients, so in this
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business administrator is responsible to design best furniture and different products as per the
audience requirements.
Marketing planning: Marketing manager of the IKEA play important role in planning an
effective strategy for maximising sales and production as well as product promotion. In this
business plan about the marketplace, customers needs and market trends. These are role of
marketing manager to identify demands of home appliances and furniture in marketplace.
Product designing and development: It is another important function of marketing
which is beneficial for the success and growth of company (Brassington and Pettitt, 2013). In
order to develop product marketable and right of the company identity, employees of IKEA in
the design and development process of product they mainly emphasis on quality, price, health
and environment, functions and design. Development of company in Sweden, Almhult and many
other areas.
Standardization and grading: It is an effective process of producing products of
predetermined quality so as to accomplish the consistency and uniformity in goods. This assures
the clients of the packaging, prices and quality of commodity. On the other hand grading is an
activity of classifying goods into various groups as per its features like quality, shape, size etc. It
is the role and duty of marketing manager to set their standard according to furniture and home
appliances prices, quality and so on.
Customer support services: It is the key function of marketing which is important for the
IKEA manager to satisfy customers needs and wants by providing quality goods at reasonable
prices. In this role and duty of manager is to render different customer help services such as
procuring credit services, after sales facility, consumer information, handling client complaints
etc. These facility assist in keeping, getting and developing the customers number (Brooks and
Simkin, 2012).
Pricing of products: Price of the main and essential function of marketing which is
necessary for the company to set appropriate price of furniture and other home appliances as per
the demands of market. Thus, while identifying the product price, different factors like, customer
types, income, product demand, firm's objectives and challengers' policy should be included.
Promotions: It is another role of marketing manager of IKEA is to promote services and
products which is introduced to rendering information to the clients according the furnitures,
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their features, prices, uses etc. Main tool of promotion is advertising, sales promotion, publicity
and personal selling.
All these functions are apply by IKEA in order to maximise their sales and profit by
providing quality features in their products such as furniture, home appliances and many other.
All these functions are highly required by the manager to accomplish their predetermined goals
and targets in given time period.
M1 Roles and responsibility of marketing in the environment context
There are different roles and responsibilities of marketing in relation of environment
which are determined as below:
Market Strategies: It is important for the company to set an effective marketing strategy
in order to identify needs and wants of customers. The implementation of market strategies
develop a relation between market opportunities and business objectives.
Marketing information system: This factor render different information about product,
planning, monitoring and developing of marketing strategies (Caragher, 2016). It is essential for
the organisation to recognise various data about environment and many other.
Market segmentation: In this IKEA segmented in different areas which is essential for
them to introduced their all products and services easily. Marketing manager of IKEA supports
in the recognisation of audience in the diverse marketplace and advertise the services and goods
of the organisation among them.
P2 Interrelationships between roles and responsibility of marketing and organisational function
Marketing is one of the main and essential term that is apply buy all organisation in order
to increase their sales and revenues in limited time period. There are different departments in
IKEA which are play important and vital role in the success and development of company. This
are possible with the use of marketing tools and techniques (Desai, 2013). Roles and
responsibility of marketing and organisational functions are interrelated with each in different
ways such as to accomplish long term goals and objectives of company, attracting large number
of customers and many other. Some departments of organisation which are determined as below:
Human resource management: In IKEA, human resource management play vital and
essential role in providing training and development to the existing employees. In this process,
company required to apply internal and external factors which is possible with the help of
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marketing tools and techniques. So that both are interrelated with each other to develop effective
working atmospheres to the workers.
Research and development: It is another function of marketing which is used by IKEA to
organise research programme. In during this secession, company ask different questions to the
clients about features, prices, quality etc. of furniture, home appliances and so on. Further, they
can identified the needs and wants of the customers so that they can design best furniture at
reasonable prices. With the help of marketing tools, company easily gather all information
regarding buyers demands, needs and wants (Dibb and Simkin, 2013). In this marketing manager
tries to use different aspects of promotional mix like advertisement, personal selling, sales
promotions and so am. Thus, it is means organisational functions and duties of marketing are
interrelated with each other and have same motive to increasing sales and profit of company.
Production: It is another important department in each and every organisation that play
vital role in the success and development of organisation. It is the functional area which is
responsible for moving inputs into completed outputs through a production process. In this
production manager is liable for making positive that raw materials are render and develop into
finished products in effective manner. This process is possible with the assist of marketing
tactics which is essential for the achievement of long term goals and objectives. Therefore, it
means organisational functions and responsibilities of marketing are interrelated in maximising
profitability.
Information Technology: It is another department in IKEA which play vital role in
attracting large number of customers towards quality products of company. In the business, there
are mainly five functions of IT such as communication, Data management, Marketing, process
improvement and Enterprise resource planning (Gamble and et. al., 2011). All these are main
aspects in reducing conflict and misunderstanding which is arise in among the employees. It is
role of marketing manager to communicate all necessary information and data to their junior
staff members. So that they are know about the business activities and functions and tries to
complete all work with full dedication. So that without marketing functions and role company
can not finished their activities in proper manner.
Customer service: This department plays an essential role and responsibility in the
continued and survival functioning of any organisation. Although there are different
responsibility that such department plays like public relations and creation. It is important and
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essential for the company to provide different services to the customers such as handling client
complaints, after sales facility, procuring credit services and consumer information etc. All this
are not possible with the help of marketing tool. So that responsibility of marketing and
organisational function are interrelated with each other.
M2 Importance of interrelationship between marketing and organisational functions
IKEA is a multinational groups which provides home appliances and well-design
furnitures to the customers at affordable prices. In the company, there are different departments
are such as human resource, informational technology, customer service, production, research
and development (Hsu, 2011). All these departments are plays an essential role in the success
and growth of business. For achievement of this, marketing manager play critical role in
achievement of higher sales and profits. It is also beneficial for the enterprise to achieve
predetermined goals and objectives in given time period.
D1 Critical evaluation of key elements of marketing functions
There are different key elements of marketing functions which are determined as below:
Research: It is main key components of marketing function which is apply by marketing
manager of IKEA. In this they organise a systematic research program in which they identify
basic needs and wants of customers about furniture and home appliances products.
Tactics: It is introduced as a short term plan which are developed to attract large number of
target audience. It is role of marketing manager to provide discount and many other offers on
their products to the customers.
Strategy: It is another important functions of marketing in which business manager play essential
role in setting effective strategy in marketplace. It is beneficial for increasing sales and profits in
limited time period.
Planning: Planning is important for the each and every enterprise to plan an effective process,
pricing strategies and so on (Illing and Anders, 2016). There are some responsibility regarding
planning such as forecasting sales figures, financial planning, communication , distribution and
many other.
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TASK 2
P3 Different ways in which IKEA and Barn Furniture apply marketing mix
Marketing mix is one of the best and essential tool which is used by all business with
purpose to introduced their new products and services in marketplace (Marketing Mix, 2017). By
using this approach, IKEA easily innovate features, quality and prices of furniture, home
appliances and many other commodity. In the marketplace, there are different organisation that
are apply 7P's of marketing mix (Jones and Rowley, 2011). But there are two business such as
Barn Furniture and IKEA, both are use marketing mix to innovate their goods in an effective and
efficient manner. Comparison between both enterprise are as below:
Marketing mix IKEA BARN FURNITURE
Product They provide different
products about 9500 to their
customers. Business entity
renews its quality products
range an annual basis.
Recently they introduced
approx 2500 innovative
products which are planned by
contracted designer and in-
house. They mainly deals in
home appliances and
furnitures.
It is another brand which is
famous worldwide with its
quality features of products.
They produce solid oak and
many other wood furnishing or
accessories to the customers at
affordable price. Quality and
price of their products is more
affordable for the customers
which is good for the business
to maximise their sales and
revenues in limited time
duration.
Price IKEA provides different
products at no-frills and low
pricing strategies (Kennedy
and Parsons, 2014). They
apply cost leadership pricing
scheme. It is more essential
and important for the company
They apply cost leadership
pricing strategy which is
beneficial for them to attract
million number of clients and
accomplish their long term
goals and targets in allotted
time period. Product price is
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to attract large number of the
customers towards furnitures
and home appliances.
highly depends on the
customers needs and market
trends.
Place They integrating offline and
online sales channels. In 28
markers, company operates
their 340 stores. In addition
they has 22 order and Pick-up
points in eleven nations, in 15
countries they has 41 shopping
centres and in 18 nations,
business has 38 distributions
sites. So it is beneficial for the
organisation to maximise their
sales and profit in limited time
period.
They produce their products in
different countries at
reasonable price. It is good for
the organisation to attain
maximum amount of money
and attract different number of
audience towards quality
furniture and many other
commodities (Lamb, Hair and
McDaniel, 2011).
People Brand of IKEA is mainly
based on long lasting
relationship with clients and its
satisfaction level. In the
company, there are different
number of employees are work
with achieving long term goals
and objectives in limited time
period (Malhotra, Birks and
Wills, 2013). All workers are
educated and experienced so
that they can easily attract
large number of customers
towards home furnishing
In the enterprise, there are
different employees who are
working with each other for
attainment of long term targets
and objectives in allotted time
duration. Main motive of
workers is to satisfy basic
needs and wants of customers
by providing designing and
quality features in furnitures.
So it turn in the
accomplishment of
predetermined goals and
objectives.
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commodity.
Process In order to making an effective
and designer furniture they use
their own wooden components
and wood-based furniture. It is
a process which is apply by
company to attract large
number of audience and
accomplish predetermined
goals and objectives.
They apply very simple
process in order to move their
goods to the end user in a
systematic manner. It is
essential element of marketing
mix which provide more
opportunities to maximise their
profitability and sales in
limited time period.
Promotion IKEA is a largest and famous
retail brands in all over the
world. It is mainly based on
the aspects of rendering home
furnishing commodities at
value prices (Mihart, 2012).
They apply different
promotions mix such as
newspaper, sponsorship, TV
and magazine advertising and
so on.
In order to promote their
furniture and many other home
appliances to the customers,
Barn Furniture use different
promotions mix like:
sponsorship, newspapers,
magazine and TV advertising
and many other techniques. All
these are highly support to
introduced their innovative
products and services in
marketplace.
Physical Evidence Physical evidence for company
is its different number of
stores. These are out of town
as well as render a big sections
of home appliances and
furniture products. Tend of
stores to be well-furnish with
restaurants, car parking area is
Physical evidence of the Barn
Furniture is its working
environment. It is identified as
an atmospheres in which the
service and products is
delivered where the company
and its clients interact with
goods. It facilitate
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very large and attractive
display technologies and tools.
communication and
performance of the service.
M3 Different tactics applied by IKEA to achieve business objectives
Marketing mix is one of the beast and essential tool which is apply by each and every
organisation in order to promote their goods and services to target customers. With the use of
this tactics IKEA easily achieve predetermined goals and targets in limited time duration. This
techniques includes 7P's which covers price, place, people, promotions, process, physical
evidence (Nguyen and Simkin, 2012). All these are highly important for the organisation to
manage their relationship with customers and achieve maximum profit.
TASK 3
P4 Marketing plan for a IKEA
Marketing plan is refers to the blueprint and comprehensive document that outlines
marketing and advertising of business activity for the future or coming year. It is one of the main
and essential part that covers different elements and components in systematic manner
(Ogunmokun and Tang, 2012). This is the basic process and elements which are determined by
all organisation properly. This plan includes different information about background of the
company, mission, vision, marketing objectives, main strategies, situational analysis and many
other. All these are basic components of the enterprise which are determined as below:
Executive Summary: Marketing plan is entirely based on business information and its
objectives, mission, vision, situational analysis and many other (Ogunmokun and Tang, 2012). It
is essential part of the enterprise to achieve long term goals and objectives in given time
duration.
Overview of IKEA: It is a multinational and private heal company. They design and sell
kitchen appliances, ready-to assemble furniture and home accessories to the customers at
reasonable price. It was founded by Jesper Brodin, Torbjorn Loof in 1943, headquartered
lediden, Netherlands. They employing 194,000 workers in currently, aim of employees to
increase sales and profit by providing quality and additional features in furniture products.
Mission: “Mission statement of the IKEA is to communicate the business goals to clients,
stakeholders, employees and so on”.
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Vision: “Vision of the company is to inspires stakeholders, customers and motivates
workers to accomplish long term goals and objectives in limited time duration”.
Marketing objectives: It is another part of the marketing plan which is important and
necessary for the each and every enterprise to attract large number of the customers by providing
quality commodity to the customers at reasonable price. Main motive of the organisation is to
expand their business operation at international level by rendering best quality in its furniture,
home appliances and many other wooden components.
STP (Segmentation, targeting, positioning): It is another important and foremost element of the
organisation which is used by all enterprise in order to introduced their position in marketplace
and to the customer's mind.
Segmentation: It would be predominately psychographic and demographic. In this
customers are well-educated younger with white collar citizenry that have strong beliefs and
cultural values (Papasolomou and Melanthiou, 2012). In this customers are loyal in their strong
cultural values and minimum obsessed with symbols. They are more related with humanitarian
and sustainability practices.
Targeting: Main target market of the company is Urban places that has a maximised
populations of time period. Targeting this population that will maximise sales, expansion and
growth in international market.
Positioning: Position of the company is famous and popular in all over the world with its
home furnishing products. The powerful sales existing from warehouse or store locations and
catalogue shoppers. Most of the locations of IKEA are in Urban places and positioned with
franchises, direct investments and exporting.
Competitors Analysis: It is another part of the marketing plan which is introduce competitors of
the company. There are different challenger of the IKEA such as Barn Furniture, Jarden, Masco
and many other. All these are provide home appliances to the customers at reasonable prices. But
sometime all these are highly influence on business profitability and sales in a direct manner.
SWOT Analysis: It is one of the main element of the company which is identify Strength,
weakness, opportunities and threats of the company (Pike, 2015). These are identified as a
internal and external factor of the organisation. All these are highly effects on business
performance and profitability. SWOT Analysis of IKEA is determined as below:
STRENGTH- WEAKNESS-
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