Marketing Essentials Report: IKEA's Strategies and Performance

This report provides a comprehensive analysis of IKEA's marketing strategies. It begins with an introduction to marketing and its importance for business organizations, using IKEA as a case study. The report delves into the key roles and responsibilities of the marketing function, including marketing ...Read More

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibilities of marketing function............................................................1
P2 Roles and responsibilities of marketing relate to the wider organisational context..............2
TASK 2............................................................................................................................................3
P3 Marketing mix of company....................................................................................................3
TASK 3............................................................................................................................................7
P4 Marketing plan of an organization.........................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is one of the vital part for business organization through which company
easily impressed and attract number of customers in relation of products. It is refer to the
management by which company exchange relationship with consumers by providing them
quality products and services. The main advantage of marketing is to bring innovation within the
product line as it helps in improving the brand image of the company at market place (Rossi,
Allenby and McCulloch, 2012). As it refer to various activities such as selling, delivering,
advertising products to large number of customers by understanding their needs. This will helps
in capturing customers attention in relation to company products. It contribute in accomplishing
set goals and objectives of the company. Present report is based on IKEA, is as multinational
company which sells furniture, kitchen and home accessories to larger number of customers.
Project discussed about roles and responsibilities of marketing function as it helps in catering
customers demand. Along with this marketing mix and plan also mentioned here which
contribute in determining the actual performance of the company at market place.
TASK 1
P1 Key roles and responsibilities of marketing function
Marketing is an essentials procedures for company to manage their products and
customers demand as well. This may leads in enhancing their brand image at market place by
delivering quality products and services. Along with this, marketing department also contribute
in implementing and promoting company and its services. It helps in capturing customers
attention and market share as well. In addition of this, there are some major roles and
responsibilities of marketing function through which IKEA easily attain their predetermined
goals and objectives. All these are as follows:
Marketing information system: It is major role of marketing function to manage as well
as collect information of customers. As it is beneficial for the company to make and deliver their
products accordingly. One of the main advantage of this is to develop positive and healthy
relationship with customers and at the same time also increase loyalty customers towards the
company (Clow and James, 2013). This will enhance competitive brand image of the company.
Along with this, IKEA should keep all the information of customers confidential so that they can
make their products attractive.
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Pricing: It is main duty of marketing manager to set their product price appropriate. In
this IKEA use various pricing strategies to set product cost affordable so that customers easily
consume company products. With the assistance of this, IKEA take competitive place at market
place.
Marketing planning: For making brand image successful, manager of marketing is
responsible for setting clear goals through which they easily perform all the activities of
marketing (Silver and et al, 2012). In this IKEA set their products and develop effective policies
to attain success at market place. This will helps in capturing customers attention towards
company services.
Financing: It is main responsibilities of marketing department to determine
requirements of the funds as it helps in attaining set target. Proper fund is essentials for firm to
implementing marketing activities such as promoting as well as selling products. This will aid in
enhancing overall performance of the company at market place.
Distribution: It is important for IKEA to offer right products to right customers at
accurate time. For this, company should use appropriate distribution channel which may leads in
offering quality products at market place. In addition of this, company also use online marketing
for reaching larger number of customers. With the help of this IKEA easily make their process
easy and attain desirable results at market place.
P2 Roles and responsibilities of marketing relate to the wider organisational context
For inviting larger number of customers, marketing play crucial role in managing and
developing all the activities which us used by firm to influencing customers. As it refers to a
study for understanding all the market trends and customers. This will aid in improving the
overall performance of the company at market place. In this the main aim of using marketing
process is to cater clients demands for providing them better satisfaction level. It also provide
support to firm to influence as well as encourage them to consume company products in order to
create strong brand image at market. As there are some roles of marketing which is relate with
organizational department are as follows:
Marketing with finance department: Operating all the marketing activities, company
needs to proper fund because without this firm fails in attaining predetermine goals and
objectives (Interrelationship of marketing functions with other department, 2018). In this
context, marketing department should make an effective budget for managing their activities.
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With the helps of this finance division allot adequate funds so that they increase the chances of
attaining desirable goals and objectives.
Human resource department with marketing function: For making policies and
strategies for marketing, skilled and capable workers required by the company to accomplishing
set goals. For this marketing department provide their support for finding capable workers who
have abilities to handle customers by understanding their needs (Lovelock, 2011). As it assist in
developing as well as enhancing brand image of the company at market. Along with this,
employees are also responsible for making as well as building policies for improving competitive
image.
Marketing with research and development department: For understanding customers
taste and preferences, research and development division play vital role because it carry out an
effective research to evaluate the market trends. With the helps of this they fund out customers to
offer company products. As it contribute in creating strong customers base within the company.
Thus, marketing manager is responsible for delivering quality services according to customers
requirements.
Production department with marketing: Both function are play vital role in enhancing
productivity of the company at market place by delivering as well as producing valuable
products to target customers. In this marketing manager provide overview of the market and its
strategies to production department so that they can make and produce services accordingly, it
directly contribute in creating strong customer base and at the same time also capture larger
market share form its rivals.
Customers services with marketing: Consumers are the important part for firm because
they helps in making brand image popular by consuming its products and services. As it is
important for IKEA to provide better services to customers and also make their policies
accordingly. This will aid in satisfying customers by providing them services. With the help of
this IKEA attain competitive advantage form its rivals.
TASK 2
P3 Marketing mix of company
Marketing mix consider as an important promotional tool which helps in creating
customers base in market place. By using this company easily make influence as well as
encourage customers to consume company products (Babin and Zikmund, 2015). It increase
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profitability level of the firm at market place. Along with this, it is also helps in establishing
competitive brand image at market place. It can be define as a tool tactics and strategy through
which firm make their products attractive and affordable so that customers can buy its products
for fulfilling their needs. One of the main advantage of this is to make customers aware about
company product and services as well. In addition of this, it also helps in taking strategic
decision to develop innovative products (Ahmed and Rafiq, 2013). Thus, it is important for
marketing manager to identifying market trends and customers taste towards the company
products. As there are comparison of marketing mix with two company in same field.
Basis IKEA B&Q
Product It can be defined as item which
is manufactured for selling
purpose. Ikea has vast range of
9500 products which is
constantly increasing every
year. Its main focus is on
introducing new 2500 product
yearly. It offers various types of
furniture for children's,
bedroom, bathrooms, kitchens,
outdoor furniture etc. It has
diversified products for all of
its customer. The company
attracts its customer with the
continuous launching of new
products.
B&Q is also a multinational
company which provide home
improvement product to customers
with the purpose of attaining their
satisfaction level. In addition of
this, they also provide raw
materials at per affordable cost in
which they easily build positive
relation with their customers. This
will helps in improving the brand
image of the company at market
place.
Price It is the amount which is
charged in the exchange of
product (Swenson, Rhoads and
Whitlark, 2014). Ikea adapts
As B&Q is also offer quality
commodities with affordable prices
to larger number of customers.
Along with this, they also tries to
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low pricing strategy with
affordable charges, which is
possible for the company due to
its chain availability at global
level. This attracts the money
oriented customers towards the
brand which increases the sales
ratio of company. Ikea's
believes to provide products at
reasonable prices to its
customer with innovative
products of high quality.
attract consumers by offering them
discounted products. With the help
of this, they enhance customers
base and at the same time also
make their products and image
popular. As it enhance their sales
volume at market place which
increase market share.
Place It is the area where business has
its footprints. Ikea has approx
340 stores across the world,
with the addition to this it also
have 22 picking centres with
the ordering centres in 11
different countries. Products are
directly supplied to its stores
from suppliers which reduces
transportation cost and other
additional costs. Ikea has also
attached its retail stores with
warehouses for reducing its
cost (Wirtz, 2012).
B&Q is popular company as they
operate approx 371 stores in
various countries. In this, they
serve their quality products and
services on online platform
through which they enhance their
profitability level at market place
as compare to its rivals. Company
also operate general merchandise
stores to offer their services which
may leads in increasing market
share. By establishing attractive
stores to invite large number of
customers to make their image at
market place.
Promotion It is the way through which
company increases its sales.
Ikea focuses on promoting its
B&Q use discounted rates for their
products which helps in inviting
larger number of customers
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product through TV, billboards,
print media, online
advertisement, social sites etc.
It also conducts many
campaigns to become centre of
attraction for its customers,
these campaigns includes the
involvement of live audiences.
This company uses digital
marketing as the promotional
tool to increasing its sales
ration.
towards its products and services.
Along with this, they also define
policies to evaluate the social
responsibilities which contribute in
making brand image more popular
at market place. In addition of this,
they also make protecting
environment for their customers as
they easily consume its products.
This will aid in increasing
profitability level of the company.
People It involves customers and
employees both. People are in
the form of employees who
manufactures the product &
attend its customer. Ikea
provides training to its
employees at regular basis to
motivate & develop their skills
which will help to achieve
common goals (Desai, 2013).
B&Q having skilled and talented
workers who are able to
encouraging as well as influencing
customers towards company
products and services which may
leads in increasing the market
share of the company at market
place. Along with this they also
provide training sessions for their
workers as per their requirement so
that they easily perform their
duties and attain set targets.
Process Ikea follows diversified process
to meet customers satisfaction.
It owns sawmills &
manufacture their own products
to increase quality. The
company owns 44
B&Q use effective process of
delivering of products with the
purpose of meeting customers
needs. As it helps in enhancing
popularity of the products and
services in market place. This will
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manufacturing units in more
than 10 countries. It purchase
few product from supplier,
manufacture rest in their in
house warehouses and then
delivers finished products to its
customers.
directly contribute in establishing
positive brand image of the firm in
front if customers by delivering
and producing quality services.
Physical evidence Ikea has large stores which
gives more than pleasure of
shopping. Its outlet also have
guide arrows to help the
customers in reaching their
required product as well as
employees to display the
correct product on correct
location.
B&Q having number of stores to
sells their variety of products in
market place for fulfilling
customers needs and wants. Along
with this, for inviting larger
number of service users, firm also
make outlets more convenient so
that they easily make their
competitive image.
TASK 3
P4 Marketing plan of an organization
Marketing plan consider as an important process for company to identify their actual
performance of the firm at market place. It provide guidelines to company for implementing
business activities in an appropriate way. As it directly contribute in attaining success at market
place as compare to its competitors. In addition of this, marketing manager of the company also
make clear goals and objectives (Dibb and Simkin, 2013). This will lead in providing quality
products and services as per customers preferences. Along with this, it is important duty of
marketing manager to prepare an appropriate marketing plan before producing new and
innovative products. By this company easily attain competitive advantage form its rivals. As
there is marketing plan of IKEA which includes various activities are as follows:
Overview of the company: IKEA is multinational group as they sells ready to assemble
furniture in market with the purpose of enhancing their brand image. It founded in 1943 in
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Sweden. Along with this, it is known for its attractive design of products. In addition of this, they
focus on its cost control and continuous product development. This will contribute in
establishing positive brand image market place.
Mission of IKEA: The main mission of this company is to deliver quality products to
customers as per their needs and wants. As it helps in making strong customers base within the
organization.
Vision of IKEA: Under this company is to create better life of the people. As they offer
wide range and well designed home furniture at affordable cost. Through which they increase
market share of the company.
SWOT analysis:
Strength Weakness
 Brand value is one of the main strength
of the company as they easily make
their larger customers base (Hsu, 2011).
 Appropriate financial position help
them in making quality products for
customers.
 Vast product range is increase
profitability level of the company.
 Company has weak presence in Asia.
 Lack of diversification of the products
is a weakness of the company.
 Environmental problem reduce
profitability level.
 High cost of raw material.
Opportunities Threats
 Friendly environment is main
opportunity for IKEA as they easily
increase product range of the products.
 As companies operate their business in
developing countries with the purpose
of attaining success at market place.
 Changes in laws is one of the main
threats for business organization.
 Global economic and financial crisis
may reduce the brand image.
STP approach:
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 Segmentation: IKEA offer their products in market place with the aim of enhancing their
brand image. Mainly, they target young people who likes modern design of furnitures and
accessories.
 Positioning: IKEA implement mono segment type of positioning in which they make
their products accordingly to provide better satisfaction level. With the help of this
company easily generate money and profit as well (Jones and Rowley, 2011). Targeting: Under this, IKEA focus on those people who are attract from modern
furniture. Mainly they focus on young people in market place with the purpose of
providing them better satisfaction (Mihart, 2012).
Marketing mix of IKEA:
 Product: IKEA operate their business in over the world. In which they offer diversified
products in market place. Outdoor furniture, eating, bathroom, desks, mirrors, chairs and
many more products to larger number of customers.
 Price: IKEA set their products affordable so that every customers can consume company
products. Along with this, they make their furniture as per low cost which may enhance
productivity level of the company.
 Place: IKEA is global company as they use larger distribution network in which they
serve their variety of products through various stores. Along with this, they having more
than 9500 products as they cover various stores to sell it. In this they also offer their
products to customers directly (Kennedy and Parsons, 2014). Promotion: Under this, IKEA use various tools to promote their products to customers
such as print, TV, ads and many more. For enhancing brand image, company also use
social media to promote their services at market place.
Marketing strategy: IKEA use general marketing strategy in which they promote their products
for inviting larger number of customers. With the help of this, they build positive relation with
their target customers. This will enhance profitability level of the company.
Monitoring and controlling: Under this, marketing manager evaluate as well as implement all
the activities to measure overall performance of the company at market place. With the helps of
this, IKEA enhance their brand image and at the same time also attain set objectives.
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CONCLUSION
From the above given project it has been evaluated that marketing is key factor for
business organization to attain success at market place. In addition of this, it also helps in
establishing positive brand image of the company in competitive market. Thus, it can be stated
that marketing play vital role in creating customers base within the organization. As it build
strong relation with target customers. Along with this, roles and responsibilities of marketing
function also contribute in developing quality products and services as per market trends and
customers taste as well. Furthermore, marketing mix of business organization is also helps in
determining actual performance of the firm at market place. Marketing plan of the company is
also helps in enhancing the profitability level and at the same time also cater customers demand
as well.
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REFERENCES
Books and Journals
Rossi, P. E., Allenby, G. M. and McCulloch, R., 2012. Bayesian statistics and marketing. John
Wiley & Sons.
Clow, K. E. and James, K. E., 2013. Essentials of marketing research: Putting research into
practice. Sage.
Silver, L and et al, 2012. The essentials of marketing research. Routledge.
Lovelock, C., 2011. Services marketing: People, technology, strategy. Pearson Education India.
Babin, B. J. and Zikmund, W. G., 2015. Essentials of marketing research. Nelson Education.
Ahmed, P.K. and Rafiq, M., 2013. Internal marketing. Routledge.
Swenson, M. J., Rhoads, G. K. and Whitlark, D. B., 2014. Startup marketing: Leveraging
leverage. The Journal of Applied Business and Economics. 16(6). p.56.
Wirtz, J., 2012.Essentials of services marketing. FT Press.
Desai, S. S., 2013. An analysis of the competitive marketing strategies of the hospitality industry
in UAE. IUP Journal of Management Research. 12(1). p.22.
Dibb, S. and Simkin, L., 2013. Marketing essentials. Cengage Learning.
Hsu, W., 2011. The vocabulary thresholds of business textbooks and business research articles
for EFL learners. English for Specific Purposes. 30(4). pp.247-257.
Jones, R. and Rowley, J., 2011. Entrepreneurial marketing in small businesses: A conceptual
exploration. International Small Business Journal. 29(1). pp.25-36.
Kennedy, A. M. and Parsons, A., 2014. Social engineering and social marketing: why is one
“good” and the other “bad”?. Journal of Social Marketing. 4(3). pp.198-209.
Mihart, C., 2012. Impact of integrated marketing communication on consumer behaviour: effects
on consumer decision–making process. International Journal of Marketing Studies.
4(2). p.121.
Online
Interrelationship of marketing functions with other department, 2018. [Online] Available
through: <http://smallbusiness.chron.com/relationship-between-organizational-
functions-organizational-structure-18571.html>.
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