IKEA Marketing Plan: Barriers, Strategies, and Ethical Considerations

This report provides a detailed analysis of IKEA's marketing plan, examining its introduction, changing perspectives, and capability for future planning. It explores organizational audits using Porter and SWOT analyses, and assesses the impact of external factors through PESTLE analysis, particularly in the context of competitive business environments. The report identifies key barriers to marketing planning encountered by IKEA and suggests measures for overcoming them. Furthermore, it includes a marketing plan for launching a new IKEA product, detailing strategic planning processes, techniques for new product development, and justifications for pricing, distribution, and communication mix. The report also discusses factors affecting the effective implementation of the marketing plan and evaluates the influence of ethical issues, providing examples of how IKEA can respond to these issues and considering the role of consumer ethics in marketing planning. The conclusion summarizes the findings, and the report is supported by relevant references.

Marketing Planning

Table of Content
INTRODUCTION...........................................................................................................................1
1.1 Changing perspectives in marketing planning......................................................................1
1.2 Capability for planning future marketing planning...............................................................2
1.3 & 1.4 Organisational Audit and impact of external factor on marketing planning in
competitive business environment..............................................................................................2
2.1 Main barriers in marketing planning encountered by IKEA.................................................4
2.2 Suggesting the measures that can be used by IKEA for overcoming barriers to marketing
planning.......................................................................................................................................5
Task 3...............................................................................................................................................5
3.1 Marketing plan for launch of new Ikea product....................................................................5
3.2 Significance of strategic planning process for IKEA............................................................8
3.3 Identifying techniques for new product development within IKEA.....................................8
3.4 Justifying suggestion for pricing policy, distribution and communication Mix IKEA.........9
3.5 Factors affecting the effective implementation of marketing plan of IKEA......................10
TASK 4..........................................................................................................................................10
4.1 Evaluating influence of ethical issues in marketing planning within IKEA......................10
4.2 Analysing examples the way Ikea can respond to ethical issues........................................11
4.3 Consumer ethics and the effect it has on marketing planning within IKEA.......................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing planning refers to the blueprint that provides outlines for advertising,
promoting products. It provides description about business activities that are to be involved
for achieving organisational goals within a set of frame. IKEA company has been selected
for analysing the significance of marketing plans. The company is multinational
organisation, designing and selling ready to assemble furniture, kitchen appliance and home
accessories.
The study has focus in explaining the concept and significance of marketing plan.
The report provides various ways for conducting audit in order to analyse influence of
various factors. This assignment includes information about various barriers and provide
various measures to organisation to deal with such issues.
1.1 Changing perspectives in marketing planning
Market is a dynamic place that is quite unpredictable and keep changing, IKEA to
stand in this ever changing market has to make important changes so that they can meet the
demand of there customer. Marketing planning help IKEA to consider the business objective
and also help to maintain a communication with there customer while promoting there
product and services. An effective market planning helps company to create a well defined
structure for implementing different marketing strategies. The main aim of marketing is to
sale the product or services of firm to there customer. There has been great change in
marketing to satisfy the demands of there customer, various tools and strategies have been
initiated by organisation to achieve there goals. Today market is more focus on the modern
trends, organisation instead of being profit oriented pay more attention to maintain long term
relationship with there customer and try to earn there loyalty. Even the traditional model of
marketing mix of 4p's has modified to 7p's .
This assist IKEA to work in right direction to achieve there customer satisfaction and
also increase there market share. New marketing planning also put emphasis on external and
internal environment which play big role in business decision of an organisation. This all
new changes has been accepted by IKEA as it put more focus on the customer satisfaction.
1

2
Illustration 1: 7P's of marketing
source:(The 7 Ps of Marketing

1.2 Capability for planning future marketing planning
Brand capabilities: Having a brand value in market helps the firm with there future
marketing strategy and setting up of any new product. IKEA's has turned into household
name when it comes into modernist design furniture. In addition to it the firm was able to
gained international fame and already have great market in more tan 45 countries. This all
contribute in increasing the brand value of company. Making it easy for the entity to launch
there product in new place.
Human Resources: IKEA is large firm which help with more than 135,000,
employee. Its necessary for organisation to have competent employee to handle there
worldwide business. The employees of company should efficient enough to handle different
business aspects. IKEA put focus on employee success and growth ad try to correspond it
with company success. In accordance to it company try to provide there workers with equal
growth opportunities, which not only help to maintain better relationship but also help firm
to retain there employees.
Financial Capabilities: It refers to financial power of organisation. How much a
company is financially stable for smoother running of different operations. It shows IKEA's
capability in enhancing there current financial condition. For having a better financial base
its necessary for business entity to keep strong hold on there shareholder as well as
associated people of firm. further more IKEA have powerful financial system with extensive
internal control, which is necessary for its expansion facets.
1.3 & 1.4 Organisational Audit and impact of external factor on marketing planning in
competitive business environment.
To have an organisational audit of IKEA fwe have done Porter analysis which can
help us to know about all the external factor which can affect the market as well as SWOT
analysis to know about internal factor.
STRENGTH
 Good brand image
 human resource
 Innovative designs
 strong financial position
WEAKNESS
 Strong competitive marketplace
 Weak position in the market of Asia
3

 vast range of products
OPPORTUNITIES
 Big opportunities and potential market.
 Low labour cost
 better outsourcing
 Availability of variant raw material
 Efficient p[production method.
THREAT
 Economic crises
 Fluctuation in stock control
 Changing technology
 increasing cost of imported goods
PESTLE analysis
Political: Company while establishing in other country have to take there political condition
into consideration before making any decision. IKEA also have to keep in mind the the
political condition of India before making any venture there. India's political condition is
quite unstable with what there constant conflict between state and central government in
addition to it there is also problem of corruption and beurocracy.
Economic: The country suffer from high inflation which can affect the overall sale of firm
because of low purchasing power. Company also have to look over the different tax laws
implied by organisation. Customer are also very sensitive regarding the price in addition to it
The currency of country is also weak.
Social: The country provide with cheap labour but it still lacks skilled labour, people are
style and status conscious. Further more the size of houses are comparatively small difficult
to place one piece of furniture.
Technologies: There are many technological facilities which are demand of industry but in
India there could be many technological error such as poor infrastructure, electricity
disruption, internet disruption, lack of intellectual property enforcement etc.
Legal: Because of the involvement of many parties there is always an issue between the of
views ruling party and opposing party on Foreign Direct Investment which can cause
disputes and problem to IKEA. Small medium enterprises also create problems as 30% of
sourcing come through this local business.
This analysis help IKEA to have better understanding of there market as well as it
aware company of possible threats and problems which company will face with possible
4

venture. The better understanding of market will help organisation to come with strategies
which can help them to attract customer to them for e.g from above analysis IKEA have
come to know about the market of India this help them to select there target customer and
also help them to modify there product which can satisfy the customer of India. This also
help them to know about the law and regulation of investing country which can save
organisation from getting involve in any legal hassle in addition to it company can also
utilize there laws and strategies to accommodate there needs (Shimp, and Andrews, 2013).
2.1 Main barriers in marketing planning encountered by IKEA
The American market has created special challenges for IKEA because of huge
differences in US environment. It has been soon realised by Ikea that the firm has set up
store displays all wrong. There are few barriers that has effected the marketing plan of Ikea:
Demographic factors-Demographic factors consists of demographic changes, change in
living standards, Work and consumer perception. These demographic factors have direct
influence on consumer desires and extend of market capability such as growth of population,
changers in trends and client attitude. A poor marketing plan have direct effect in
organisation Growth and success. So it is important for Ikea to make effective marketing
strategy.
Economic factors-Economic factors of great impact on working and profitability of
enterprise. The various economic factors such as inflation in price of product, economic
recession have direct impact on consumer beliefs and attitude as well as they may further
lead to decrease in organisation sales and profit. These factors have direct effect on
competitive spirit of IKEA. These economic factors have direct influence on purchasing
power of clients.
Technological factors-Technological factors have power to create entry barriers, may also
affect marketing decisions. Increase in use of internet have great impact on marketing
strategy of IKEA.
Cultural-Change in lifestyle and values have direct effect on marketing planing. Promoting
product without analysing the cultural factor may have bad consequences on Ikea company
success and growth.
5

Organisation culture ,lack of training and management unawareness are the main
barriers that are hampering the marketing planning process (Bahadir, Bharadwaj and
Srivastava, 2015).
2.2 Suggesting the measures that can be used by IKEA for overcoming barriers to marketing
planning
Marketing planning is the blueprint that provides guidelines related to business
advertising and marketing activities. It provides direction related to marketing activities that
are to be conducted by Ikea organisation for achieving marketing objectives. Complication
in marketing planning means that when organisations fails to face difficulties that has
occurred in market planning. There are various strategies that can be used by IKEA:
In order to analyse various factors that have direct influence on marketing planning,,
it is essential for marketing manager in IKEA to identify online platform and search for
simple techniques. (Barrett and Weinstein, 2015).
IKEA organisation can develop Methodical system to promote objectives and
interlink them.
6
Illustration 2: Barriers in marketing Planning Process
Source:Defining Marketing for the 21st Century

It is important for organisation to use various effective techniques to analyse the
internal and external environment. Pestle and swot analysis techniques can be used by
enterprise for scanning environment.
The marketing manager of Ikea get so tired while accessing to daily mails, online
analysis and conducting research for gathering information. This all activities conducted by
manger consumes lot of time and its lengthy process that may lead to delay in framing
marketing strategy. These process does not contain reliability of information. So Its is
important for manger to identify alternative solution for gathering information about
market.
Task 3
3.1 Marketing plan for launch of new Ikea product
There are following steps included in developing marketing plan.
Establishing MISSION and Vision-
IKEA Mission is to offer wide range of well designed furniture to customer at reasonable
price. The vision of the company is to become market leader in Furniture industry,
Situation analysis-Situational analysis include examining internal and external factors.
Internal factors include examining internal and external strength. On the other hand external
analysis include identifying market situation, trends, environment etc.
Swot analysis
Strength:Band image of Ikea.
Effective marketing strategy.
High marked share
Weakness:
Lack of innovation skills.
Focusing on sin single market.
Opportunities:
Dealing in product that are the basic demand
of consumers.
IT has opportunity to enter new market.
The company can use technology and online
Threats:
Economic conditions
Increase in competition.
Threat of new entry.
7

platform to sell its product.
Pestle analysis
Political factors-The Ikea can develop product
according to base in standards set by
government.
Economic factors-The organisation can use
low price strategy in order to differentiate their
product price from that of their competitor.
Legal factors-The business can comply with all
laws and regulation .
Social factors-The enterprise can frame
strategy to fulfil its corporate social
responsibility in order to enhance its
reputation.
Technological-can adopt innovation strategy. Environmental factors-the company should
launch product that do not have negative
impact on environment.
8

Developing marketing objectives-This step include determining the objective that are to be
achieved by marketing activities (Chen and et.al., 2015.).
Implementation and Evaluation of plans
9
Illustration 3: Marketing of new product Process
Sources: M. Claessens 2015 ( Marketing insider)

3.2 Significance of strategic planning process for IKEA
Marketing planning includes systematic process that involve identifying marketing
opportunities and resources, establishing marketing objectives, formulation and
implementation of plan. There are various benefits of plan these are :
Reduces risk and uncertainties- Marketing planning process help organisation in reducing
risk that are associated with launching of new product.
It also provides opportunities to coordinate with different function that can assist in dealing
with change in various factors such as cultural, social, etc.
This planning activities provides manger a way to share marketing objectives with team
member's .
Gaining competitive advantage-It is the organisations road map to achieve competitive
advantage.
Removing barriers-Planning focus on complex issues covering the whole organisation and
helps in eliminating various barriers.
Long term objectives-It is the process design to produce strategic plan. Strategic plan is
framed to achieve long term business objectives.
Facilitates decision making process-Its assists manger in various decision making process.
Strategic planning provides direction-The outcome of strategic planning is that employees
get direction and all their efforts are focussed towards particular task. Strategic planning
plays vital role in achieving organisational objectives.
Planning eliminates overlapping and unnecessary activities- strategic planning are
formulated in order to achieve organisational objectives.. All activities are included in
strategic planning process. During strategic planning process coordination is being
established among different activities and functional department. Thus, it avoids repetition
of activities. Further it leads to increasing efficiency and cost reduction. (Homburg, Jozić
and Kuehnl, 2015).
3.3 Identifying techniques for new product development within IKEA
There are various techniques that can be used by IKEA in order to develop new
products :
Designing good quality product-Good design of product include right combination of
forms, quality, ability and reasonable price. It is essential for product developer and designer
10