Report: IKEA's Marketing Strategies, Research, and New Dining Set

This report provides an overview of IKEA's marketing strategies, focusing on the introduction of a new dining set. It begins with an introduction to IKEA, its background, and its marketing research processes. The report emphasizes the benefits of marketing research, highlighting its role in planning marketing actions and understanding customer preferences. It then delves into the marketing mix for the new dining set, including product, price, place, and promotion strategies. The report further examines IKEA's customer targeting approach, market segmentation, and the marketing activities tailored to reach the target market, including the use of word-of-mouth marketing. It also discusses the constraints and limitations associated with these marketing methods, providing a comprehensive analysis of IKEA's marketing efforts.

Marketing proposal

Table of Contents
INTRODUCTION...........................................................................................................................2
Main Body.......................................................................................................................................2
1.2 Background of IKEA organization........................................................................................2
1.2 Process of marketing research in IKEA company.................................................................2
2.1 Benefits of marketing research for IKEA company..............................................................4
2.2 Marketing research assist company in planning marketing actions for product....................4
3.1 Marketing mix for new dinning set........................................................................................4
4.1 Customer targeting for dinning set product of IKEA............................................................5
4.2 Marketing activities for dinning set goods tailored to target market.....................................5
5.1 Marketing techniques applied in marketing dinning set .......................................................6
5.2 Constraints and limitations within methods...........................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

Executive summary
The current report will discuss about IKEA marketing strategies and benefits of
marketing research in context of promoting new products. Company will use Word of mouth
marketing as marketing technique that help to attract its target customers. They segment market
and target its consumer for marketing their new dining set in marketplace.
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INTRODUCTION
Marketing is one of the best action or activity of selling and promoting services or
products, including advertising and market research. It is the promotion of company service or
goods to the target customers (Armstrong and et.al., 2014). Marketing helps organizations or
businesses to maintain it's long term relationship with their customer which is beneficial and
useful for them. The present report is based on IKEA marketing activities for promoting their
new product. It explains the background of company and procedure of marketing research. This
study justifies benefits of marketing research, how it will help IKEA in planning marketing for
goods and also explain marketing mix concept for products. Furthermore, it clarifies customer
targetting, marketing activities for product to tailored to target customers and also define
marketing techniques implementation in marketing plan of company. At last in this report it
justifies constraints and limitations within methods using by firm.
Main Body
1.2 Background of IKEA organization
IKEA is Swedish based multinational group that sell and designs ready to assemble home
furniture, home products and kitchen appliances among other useful products and occasionally
home facilities. Organization name is acronym that belong of initials of Ingvar kamprad,
Agunnaryd and Elmtaryd. They design furniture according to current trends and its designs quite
looks attractive and modernist. Company manufacture various types of furniture and appliances
and their interior design performance is often consists with eco-friendly simpleness. IKEA is
known for their tend to cost control, operational details and corporate attributes that permit
company to lower their costs by the mean of two to four percent. Firm's own restaurant spread
around all over the world and they serve the best quality food dishes to its customers in these
restaurants (Clow and James, 2014). Each of their stores includes the restaurant delivery or
serving traditional Swedish food items, including potatoes with meatballs. In many locations,
company restaurants opened daily before rest of stores and serve inexpensive breakfast. Before
selling pre assembled products, many of firm furniture is designed or planned to be assembled by
its customers.
1.2 Process of marketing research in IKEA company
Marketing research is the set or procedure of processes that links customers, producers
and end users to marketer via information used to determine and define marketing problems and
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opportunities; refine, generate revenue and measure marketing activities. Marketing research is
the best procedure which help to gather information more about market activities and customers
preferences. It serves marketing management of IKEA company by offering data which is
relevant to decision making (Tran and et.al., 2015). Marketing research program help to reduce
uncertainty around decisions to be made. Process of marketing research in organization is
defined in six steps which they follow in its whole business structure.
Step 1- Define problem:
IKEA firm undertaken issues in marketing process and reason behind its ineffectiveness
which is really very important before conducting marketing research.
Step 2- Develop research plan:
After define issue, company develop plan for marketing research, include few steps
collecting information relevant to research aim and objectives. Research approaches, data
sources, sampling plan and contact methods are the five steps including marketing research plan
of IKEA company.
Step 3- Collect information:
Gather data is one of the most essential and expensive techniques of marketing research.
Marketing manager and its team member adopt technique to gather information that is difficult
for them to collect appropriate data because of respondent's biasedness and unwillingness to
provide answers.
Step 4- Analyse information:
After gathering the information via marketing research marketing department manager of
IKEA company analyse collected information or data. They apply different statistical methods to
perform analysis such as measure of dispersion and compute averages. They also used modern
decision models to analyse data.
Step 5- Present findings:
Finally, Managing Director, board of director, marketing manager or CEO represent all
research and findings to top management level to make decision in context of marketing in line
with conduct research.
Step 6- Make decision:
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It is the last and final step of IKEA marketing research, once when findings is presented
to high level management it's up to them to take decisions and to rely on findings. Top level
management of company make appropriate decision related to conduct research.
2.1 Benefits of marketing research for IKEA company
Marketing research is very beneficial for organization, as it help to gather relevant
information about market and support marketing manager to design and plan marketing
strategies accordingly (Kumar and Pansari, 2016). It gives many benefits to company as they can
gain better perspective via marketing research. With the helps of marketing investigation
marketing manager of company understand its target audience and their perspectives which is
quite beneficial for them. It helps to assure IKEA that they stay ahead of competition.
2.2 Marketing research assist company in planning marketing actions for product
Marketing research assist IKEA firm in planning its marketing activity for new product
for example new dining set (Tiago and Veríssimo, 2014) . With the help of marketing research
organization marketing manager gather information about clients perspectives and preferences. It
supports to manufacture new dining set according to customers which is quite much effective
and beneficial for company. Marketing research contribute IKEA in planning of their marketing
plan for dinning set, with this procedure marketing manager know more about its competitors.
They can identify their strategies and offering services which help to make their own decision.
3.1 Marketing mix for new dinning set
Marketing mix is the combination of elements that controlled by organization to impact
customers to buy its products. There are seven factors used by IKEA marketing manager in
marketing mix model for services as follows, Product, price, place and promotion.
Product-
Service goods requires consideration of various of facilities provided, level of services
provided and quality of services supply. Product is the main source of customers attention which
help a lot. IKEA company manufacture new dining set products for its customers that support to
gain profit more than before.
Price-
Price considerations involve stages of discounts allowance, prices and commissions,
ways to credit and payment. IKEA set affordable price of their new dining set that make people
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easy to purchase and under in customers budgets. Company use price penetration pricing
strategy in overall business plan.
Place-
In every organization, catching eye of customer and making it easy for her/his to buy it is
the primary aim of distributor. IKEA got the best distribution strategy and excellent place as part
of their marketing mix. Company has over 25 distribution centers and operate its business
operations in more than 50 nations. Product is transferred from suppliers to Firm stores directly,
which reduce costs, lower carbon and reduces transport.
Promotion-
Company focuses a lot on their marketing actions, they use promotional tools or
techniques like TV, online ads, print, billboards etc. in their marketing mix plan for selling new
dinning set.
4.1 Customer targeting for dinning set product of IKEA
Consumer targeting is defined as the best business procedure in which company connect
with market. With the help of segmentation and targeting procedure IKEA company target their
clients which is beneficial for them as to reach customer easily (Davari and Strutton, 2014) .
Organization target lower or middle class consumer as target market because they can easily
purchase new dining set and help to generate revenue and increase profitability much better than
before. Company target middle class people for its target market as they have budget to buy
dinning set. Market Segmentation is the best activity of dividing wide customer or business
market, usually consisting of potential and existing clients into sub team of consumer known as
segments founded on some kind of shared traits.
4.2 Marketing activities for dinning set goods tailored to target market
Marketing actions of IKEA company for its new dining set is tailored to target market via
promoting and advertising product. Advertisement is the best way to introduce new goods in
market place as it help to garb the attention of target market or customers more easily (Nobre
and Silva, 2014). Marketing events and marketing campaigns is the best ideas or plan used by
organization to reach its target audience and drive them towards purchasing their new dinning
set. IKEA using many marketing activities for their new products that help to grab the attention
of customers as well as target people effectively. They promote its dining set via using social
media tools such as Facebook, Twitter, YouTube etc. Word of Mouth advertisement is best and
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suitable methods for IKEA company as for marketing their new products in marketplace and
garb the attention of customers.
5.1 Marketing techniques applied in marketing dinning set
Direct selling, Word of mouth promotion, paid media advertising, interned marketing,
Cause marketing and point of purchase promotion are the types of marketing methods. All above
techniques are used by companies or specific industry to promote their goods or services, it helps
to attract people towards purchasing products (Groeger and Buttle, 2014). Word of mouth
promotion is the best technique used by IKEA firm to promote its new dining set in market, they
want to grab the attention of potential and existing customers and try to retain them as for longer.
It is the unpaid kind of promotion in which satisfied consumers tell other person how much they
like service or products of company. It is very essential and beneficial for business as each happy
and satisfied clients steer dozens of new ones.
Word of mouth promotion applied in marketing of new dining set via conducting market
research that give many benefits to company as business growth and success (Fong, 2016).
Marketing manager identify issues and advices through senior management and then set the best
marketing strategy for promoting dining set.
5.2 Constraints and limitations within methods
Limitations-
Disadvantage of word of mouth advertisement directly impact on business market image
and reputation. If one consumer has bad experience, while purchasing IKEA products it might be
impact negatively on company position in which they loss repeat business from clients. Lack of
services quality is one of the biggest factor that affect organization market reputation and
decrease customer base the most (Rollins, Anitsal and Anitsal, 2014). One bad experience
customer makes negative comments on purchasing products which is not suitable for firm as
business success and growth.
Constraints within Word of mouth promotion-
Word of Mouth advertisement is slower marketing procedure that bring many challenges
and risk for company. With this method IKEA face many issues like lack of spreading
information as slowly which is not appropriate and effective for organization. It is long termed
procedure that takes a lot of time to share experience might be bad or good to other person.
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CONCLUSION
From above, it has been summarized that IKEA is one of the leading furniture designed
Swedish company. Organization focus on its marketing process by conducting marketing
research which is quite beneficial for them as long term success. With the help to using
penetration pricing strategy in marketing mix plan company can attract people and increase
profitability. It has been concluded IKEA target middle class people as its target market because
they can be able to purchase new dining set. Furthermore, word of mouth promotional strategy is
the best and suitable for company but it brings many challenges for organization which they
must reduce.
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REFERENCES
Books and Journals
Armstrong, G. and et.al., 2014. Principles of marketing. Pearson Australia.
Clow, K. E. and James, K. E., 2014. The marketing research process. Essentials of marketing
research: Putting research into practice. pp.25-61.
Davari, A. and Strutton, D., 2014. Marketing mix strategies for closing the gap between green
consumers' pro-environmental beliefs and behaviors. Journal of Strategic Marketing.
22(7). pp.563-586.
Fong, N. M., 2016. How targeting affects customer search: A field experiment. Management
Science. 63(7). pp.2353-2364.
Groeger, L. and Buttle, F., 2014. Word-of-mouth marketing influence on offline and online
communications: Evidence from case study research. Journal of Marketing
Communications. 20(1-2). pp.21-41.
Khan, M. T., 2014. The concept of'marketing mix'and its elements (a conceptual review
paper). International journal of information, business and management. 6(2). p.95.
Kumar, V. and Pansari, A., 2016. Competitive advantage through engagement. Journal of
Marketing Research. 53(4). pp.497-514.
Nobre, H. and Silva, D., 2014. Social network marketing strategy and SME strategy
benefits. Journal of Transnational Management. 19(2). pp.138-151.
Rollins, B., Anitsal, I. and Anitsal, M. M., 2014. VIRAL MARKETING: TECHNIQUES AND
IMPLEMENTATION. Entrepreneurial Executive. 19.
Tiago, M. T. P. M. B. and Veríssimo, J. M. C., 2014. Digital marketing and social media: Why
bother?. Business horizons. 57(6). pp.703-708.
Tran, M. A. and et.al., 2015. Exploring the corporate image formation process. Qualitative
Market Research: An International Journal. 18(1). pp.86-114.
Online
The Disadvantages of Word of Mouth Advertising. 2017. [Online]. Available through :
<https://smallbusiness.chron.com/disadvantages-word-mouth-advertising-26133.html>.
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