Unit 2 Marketing Essentials: IKEA's Strategies, Mix, and Plan Report

This report provides a comprehensive analysis of IKEA's marketing strategies, focusing on the core marketing essentials. It begins with an introduction to the concept of marketing, including current and future trends, and then delves into an overview of the different marketing processes. The report examines the role and responsibilities of a marketing manager within the context of the organization, explaining how marketing influences and interrelates with other functional departments. It highlights the value and importance of the marketing role, emphasizing the significance of effective interrelationships between different functional departments. Furthermore, the report compares how IKEA applies the marketing mix in relation to its competitors and produces and evaluates a basic marketing plan for the organization. The report concludes by summarizing the key findings and emphasizing the critical role of effective marketing strategies in IKEA's success.

UNIT 2
Marketing essentials

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Introduction to the concept of marketing, including current and future trends......................3
2 An overview of the different marketing processes..................................................................4
3 Explanation of the role and responsibilities of a marketing manager in the context of the
organisation.................................................................................................................................5
4 An explanation of how marketing influences and interrelates with other functional
departments of the organisation..................................................................................................6
5 The value and importance of the marketing role in the context of the organisation................6
6 Conclusions that emphasise the significance of having effective interrelationships between
different functional departments.................................................................................................7
7 Compare the ways in which the chosen organisation applies the marketing mix....................7
8 Produce and evaluate a basic marketing plan for the chosen organisation............................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is the process of giving teaching to consumers about features and attributes of
specific product, with it they influence to purchase. Marketing key is to select right method and
message to educate and affect consumers behaviour. Ultimately marketing is the process it starts
from getting a product and services from manufacturer to ultimate consumer. In marketing
includes framing a product or services by identifying consumer needs and wants then promoting
it with help of right channel. This report is based on IKEA is a swedish multinational group that
designs and supply ready to assemble furniture, appliances of kitchen and accessories and other
goods related to home services. It is world's largest furniture retailer since 2008. this report is
based on marketing with its recent trends and marketing processes. In addition to marketing
manager plays and dependencies on other departments of marketing. Marketing mix that apply
by IKEA to attain business objectives. Further it describes about marketing plan of organisation.
MAIN BODY
1. Introduction to the concept of marketing, including current and future trends.
Marketing concept believe that organisation have to assess needs and wants of consumers
is the first and foremost goal. According to these needs firm have to take decisions to satisfy
their needs and wants better than their competitors. Marketing concept states that consumers are
main driving force (Baines, Fill and Page, 2013). On other hand IKEA's marketing concept
believe on providing a broad range of furnishing products at affordable price to so many people.
It is possible by combine all functions, quality and design and value by keeping sustainability as
a goal (Baker and Magnini, 2016).
There are majorly five concepts of marketing:
Production concept:
That concept states that consumer prefers product that are widely available and
inexpensive also.

Product concept:
In that consumer favour to purchase products that offers quality, performance and
innovative features.
Selling concept:
This concept states that consumers only buy those products, if company aggressively
promote products in market.
Marketing concept:
In that marketers focus on needs of target market and deliver value. That strategy states
that organisation have to build product so strongly that consumers automatically purchase it.
Societal concept:
in that marketers build product by observing needs of consumers better than competitors.
IKEA have to follow marketing concept and build product in strong manner that consumers
automatically purchase them.
Recent marketing trends:
In current marketing that organisations avail virtual reality to engage consumers by
making emotional connection with them. In case of IKEA it making shopping easier by VR,
from that an consumer can test furniture from their home. It launch a pilot virtual reality app
through it consumers test different types of kitchen through HTC's vive headset. Organisation
avails artificial intelligence to make marketing campaign more successful. In case of IKEA it
researches in Singapore to teach industrial robots to assemble an chair of IKEA for first time in
world. Lot use of social media to interact with consumers in which Facebook, Twitter and others.
2 An overview of the different marketing processes.
Marketing follows an distinctive processes that are as follows;
Mission:
firstly find out mission statement, that explains for what company exists. IKEA mission
is to create better life for everyone. It supports vision by providing a range of well designed,
home furnishing products at lower price (Brooks and Simkin, 2012.).
Situation analysis:
In that organisation observe both their strengths and weaknesses in market. In its
weaknesses it have to communicate with its consumers and stakeholders. Its strengths are it is a

global brand name that attract lot of consumers and wide range of designed furniture at low
prices.
Marketing strategy/ planning:
In that by identifying opportunities, set priorities according to it. In it target customer,
respond of consumers towards marketing, competitors respond and forecasting of results
(Cabrera and Williams, 2014). IKEA target market people to all ages, geography and firstly
price preference.
Marketing mix:
It focus on 4P's of marketing and how is planning to make them better.
Product: in its products kitchen and home appliances, furniture etc which is sold at low price.
Price: It focus on cut cost by large volumes and flat packaging and transport also economic from
stores to consumers. They establish stores outside cities to cut cost.
Place: it has a global distribution network and large manufacturers over 25+ distribution centres.
Promotion: It uses promotion tools such as TV, Print and online ads to grab attention of large
no. of consumers.
Implementation and control:
By evaluating above aspects IKEA put efforts to bring plan into actions and after that
take feedback from consumers.
Roles and responsibilities of marketing department:
Marketing department plays a very important role to reach at large consumer base by
creating advertisement and promotions and helps to connect with people emotionally.
3 Explanation of the role and responsibilities of a marketing manager in the context of the
organisation.
A marketing manager is one who manages resources related to marketing, it is
responsible for allocating of resources and materials. Marketing activities that determine success
or failure of business. Marketing manager authorised for achieve pre determined goals and
objectives. It work to increase honour of firm for that it plan, organise and co-ordinate all
marketing efforts. In case of IKEA it collects data and information about consumer taste and
preference make modifications according to in their products. It prepares sale forecasting,
planning and fix prices of products and services that offer to consumers (Klow and James,
2013). They are majorly control credit policy and determine cost of marketing activities.

Marketing manager responsible for after sale services and take care about their problems and
issues with necessary actions should be taken. In IKEA marketing manager is responsible for
feedback of consumers by different modes.
4 An explanation of how marketing influences and interrelates with other functional departments
of the organisation.
There are close relationship of marketing with different departments that are as follows:
Marketing and production department:
Production department is an important department in organisation and it can achieve its
objectives with help of marketing department by evaluating needs and wants of consumer base.
Marketing department gives knowledge about consumer tastes and changing preferences and
accordingly production department add features in it (Dibb and Simkin, 2013.).
Marketing and HR department:
Marketing department by analysing trends and environmental changes give information
to HR department and they select people accordingly. HR department then search potential
candidates according to machines and tools that are use by them to accomplish goals and
objectives.
Marketing and finance department:
Finance department is depend on marketing department to gather information and
insights and according to it marketing department advertise and promote its products. This
provides information to finance department as to produce products in the future course of time
and makes the department realise for the need of funds.
5 The value and importance of the marketing role in the context of the organisation.
There are different functions that accomplish with help of marketing that are as follows:
Helps in transfer, exchange of goods:
Marketing department helps in transfer, exchange of goods and services. Products and
services should be available with help of intermediaries in which whole sellers and retailers
(Fırat, 2013). In case of IKEA marketing department firstly identify consumer needs and
preference after that designs products that satisfy consumers wants. After that conduct activities
by facilitating transfer of ownership between seller and buyer.
Enhancement in goodwill:

Marketing department is sole department which directly connect with consumers so it is
easy for them to evaluate needs and wants of costumers and deliver services according to
competitors strategy. Hence marketing department gives information and according to other
department build products and services in best manner (Wirtz, 2012). In IKEA it builds product
by accessing their needs and wants.
Impact of external environment on marketing:
External environment deeply impacts on marketing by changing external environment in
which political condition in that case organisation have to change their internal structure.
B2B marketing:
B2B marketing refers to the tools and techniques that use by companies by adopting
best practices by sold goods and services.
6 Conclusions that emphasise the significance of having effective interrelationships between
different functional departments.
Interdependences of departments on each other give effective results by sharing relevant
information and data to each other (Ionita, 2012). When departments share important knowledge
with others they can take important decisions in well being of organisation. In case of IKEA
marketing department share relevant information to other department about tastes and
preferences of consumers and according to that finance department give overview about money
can invest. Then by getting approval production department produce products accordingly.
Hence all departments in organisation connect with each other and competencies should be
achieve by proper communication among all departments.
7 Compare the ways in which the chosen organisation applies the marketing mix.
Marketing mix:
Marketing mix is an set of actions, tactics that enables to organisation to promote
their products and services in market place.
Marketing mix consist of IKEA in comparison to its fierce competitor amazon are as
follows:
Basis IKEA Ashley furniture
Product First phrase of marketing mix Ashley also have broad chain

is product, in context of IKEA
it deals mainly in assemble
furnitures, appliances of
kitchen and home accessories
and other useful home
services. It has broad product
chain to satisfy its various
consumer base in various
categories bathroom fitments,
book cabinets, closets, beds of
kids and others.
of products and it is a
international chain of products
which deals in integrated
product line in which home
furnishing includes bedrooms,
living room and dining room.
It is an vertically integrated
enterprise that is an US based
company but also exist in UK.
It focus on every aspect related
with design to manufacturing.
Price In pricing strategy of IKEA is
perfect that give heavy
discounts like aldi that also
offer its products at low prices.
Its consumer base is more
satisfied by its pricing that
they are paying because they
give higher quality products to
consumers (Khan and Adil,
2013). Its products are not
expensive but not so cheap. It
provides comparatively less
expensive products by save
shipping cost, flat packaging
and its stores exist not in
crowed areas. But in
comparison to its competitors
it offers comparatively at
affordable price.
Ashley always central aspect
to remain competitive
regarding its price, there are
less opportunities to remain
competitive in market. In case
of Ashley there consumer are
budget minded people and give
best quality furniture at best
prices to their consumer base.
It has different price strategy
in comparison to IKEA and it
also an innovative strategy by
offering a variety of products
at different price levels.
Pricing strategy helps in adopt
and choose two pricing and
marketing strategy by offering
variety of products.

Place IKEA presently working in 28
countries and operates 340
stores presently. Traditionally
its stores exist in towns but
recently it opens two stores in
busy areas. Its smaller stores
that situated inside town
display limited range of
products and large stores in
city provides range of products
. Instead of that they pick up
consumers orders from online
and to make its brand superior
they decided to enhance in its
pick up and orders through
accessibility. Its important
factor is its store design, its
stores are cosy and beautiful
from inside(Lane, 2015).
It has strong distribution
networks by effective across in
north America. By assuring
availability, affordability and
prompt distribution network to
reach at large consumer base.
It is an US based company but
operating currently in UK also.
It has various warehouses and
service centres in different
countries so that it can take
advantage of different
geographical locations by
distributing between the
Canada and America to ensure
synergy in products and
market.
Promotion IKEA uses all trade
promotions and sales
promotions in which it uses
coupons, discounts, festival
promotions. IKEA wants that
consumers gets all type of
advantages by their large scale
manufacturer. In addition to
IKEA uses other source of
promotions in which
newspaper,television and
digital media so that it can
Ashley has great promotional
events and strategies to reach
at large consumer base. It uses
social media and print media
and other marketing tools to
reach at large consumer base.
It believe on best method of
promotion is word of mouth
strategy to reach at large
consumer base. Word of
mouth helps in achieve great
attributes and enlarge business

grab large no. of consumers.
IKEA focused on localised
communication in advertising
that helps in better
communication with others.
Their promotions give support
by showing features so that
they look desirable and unique
in their concept. In its recent
campaigns in which include
IKEA kitchen party
advertisement “ Be happy
inside” that shows their
beautiful interior and designs
that attract consumers towards
them. IKEA's yellow logo is
also very well known that
support in managing brand
image (Lipsman and et. al.,
2012).
opportunities. It gives best
promotions and discounts
during holiday and festival
season when consumers visit
website in high number. The
another main important tool
that focus on build strong
customer relationship and
retention to reach at large
consumer base. In case of
Ashley they participate in
various social events and
NGOs to grab large
opportunities.
Marketing mix helps IKEA achieve business objectives:
Marketing mix helps organisation to evaluate their key aspects in terms of product, price,
place and promotion and grab attention of large no. of consumer base. It helps in frame product
accordingly.
Marketing planning process at IKEA:
In marketing plan of IKEA consist of segmentation, targeting and positioning by evaluate
each and every factor and deliver best products accordingly. Its segment market is innovative
furniture loving people.

8 Produce and evaluate a basic marketing plan for the chosen organisation.
Marketing plan is an comprehensive part of overall business plan, it enables to outline
advertising and marketing attempts in upcoming year. It provides activities of business that
should be complete its objectives in specified time period.
Importance of marketing plan for IKEA
Marketing plan give an path on which organisation have to move forward to achieve
goals and objectives in case of IKEA it follows an definite path and accordingly frames products
and services.
Vision and mission statement:
In vision of IKEA is to provide every day better life to people and their products support their
idea by offering well designed, multifunctional furniture at low price.
Objectives:
In IKEA objective consist of offer a chain of furniture products with unique design and
function that offers quality, durability at low price so that everyone can afford it.
IKEA smart objectives is to “ Achieve 6.25% growth in sales in upcoming 6 months”.
STP approach:
Segmentation refers to divide population in groups on different basis on their common
traits and behaviour. In target group of IKEA consist of people that prefers fashionable furniture
and accessories. It produce products that are more colourful and novel. It fixes its price
affordable that helps in attaining large no. of consumer base. Its basis of segmentation is
sustainability that build accordingly that it can satisfy consumer needs and wants completely
caring with environment and future generation (Papasolomou and Melanthiou, 2012). It adopts
'Greens' approach which help in produce products that are environmental friendly.
Targeting:
According to segmentation of market its target consumers are people who are young and
focus on lifestyle and space saving. In their target market young people who are new phrase of
life and moving to new compartment. Consumers who have low budget and want to save world
with appetite of modern technology. Second consumer is who want products that are convenient
to life style.
Positioning:

According to target market it position its products so that it can satisfy consumer needs
and wants. It uses simple and minimalist approach which focus on products that are durable and
advance technological products. Its programs provides whole scenario about product after
combining all features in IKEA products (Malhotra, 2015). This approach of target market focus
on technology.
SWOT analysis of IKEA:
Strength:
In its strength following important considerations that are as follows:
Products:
IKEA main strength is its products that it manufacture and designs. Its DIY products are
quite famous among its consumer and their primary choice.
Cost consciousness:
its products are cost effective and value for money, consumer get satisfaction because
they get high return of investment on their money when they invest on their furniture.
Weaknesses:
Negative image:
IKEA deals in world wide that is the reason it faces local issues in its products. It get
trouble when it caught in corruption while expand in Russia and many other issues spoils its
image in market.
Control for standards:
Its weaknesses that it focus on provide quality products at low cost with high quality.
Simultaneously both qualities in one product not possible (Pike, 2015.).
Scalability:
it operates in world wide so maintain standard of products at same level everywhere is
difficult for them. Their product portfolio is not applicable just same in every sphere. Hence it
increases cost.
Threats:
Counterfeit:
Many other companies easily at low cost IKEA's product features. So to get rid from that
problem they have to adopt quick innovation and spends lot of amount on research and
development. Hence it incurs huge cost.

Changing laws:
While operating in different countries they have to face different government policies and
taxation that impacts negative on their products and services. So it is very impossible for them to
keep their promise of low price (Pike, 2016.).
Target market and market segmentation:
their target market is people who love and want wide range of innovative products for
home furnishing at low price. Their target market is very lage and aim to all class of people in
which different geographical location and they focus on price preference.
Evaluating and monitoring marketing plans using appropriate control and evaluation
techniques:
there are different essential components of marketing plan by research and by evaluating
target market, positioning of consumer and competitive analysis, by framing strategies. All these
strategies should be frame by proper control and evaluation technique that are very much
necessary for accomplish goals and objectives.
Opportunities
Environmental friendly:
Consumers new more aware about eco friendly products and it gives that products easily
to their costumers. Hence it works as a strength for them to lead in market (Purvis, 2015.).
Cost conscious consumers:
Consumers wants cost conscious products with quality and adopt that products according
to environment and satisfy changing needs of consumers. So all these features possessed by
them.
sales analysis:
Sales analysis is one of the important aspect in organisational growth and enhancement.

Interpretation:
from the above graph it has been concluded that graph of revenue and profit rise year by
year in respective of IKEA.
CONCLUSION
From the above report it has been concluded that marketing and its components plays a
important role in identifying needs and wants of customer and thereby enables company in
providing products accordingly. Marketing manager have to efficiently used marketing process
and concepts in identifying demand of the target customers which will helps in achieving goals
and objectives. It is significant for company to evaluate future and current marketing trends.
Further this effective use of marketing mix will enables in comparing products with those from
competitors products which help in maintaining profitability.
Recommendation:
Illustration 1: IKEA's Staggering Revenue Growth Continues
IKEA's Staggering Revenue Growth Continues 2018

To reach at desirable goals and objectives organisation have to frame some strategies and
adopt best marketing trend and traits that are essential in growth and advancement.
REFERENCES
Books and journals:
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& Planning. 30(5). pp.494-514.
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citizenship, and the possibilities of ethical consumption. Critical Sociology. 40(3).
pp.349-367.

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Handbook of Human Resources Management. pp.1-30.
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social-media marketing. Journal of Advertising research. 52(1). pp.40-52.
Malhotra, N.K., 2015. Essentials of marketing research: A hands-on orientation. Essex: Pearson.
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Pike, S., 2015. Destination marketing: essentials. Routledge.
Pike, S.D., 2016. Destination Marketing Organizations–Research opportunities in an era of
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Online
IKEA's Staggering Revenue Growth Continues 2018 [Online] Available
through<https://www.tutor2u.net/economics/blog/ikeas-staggering-revenue-growth-
continues>.

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