Analysis of IKEA's International Marketing Strategies: Unit 40 Report

This report analyzes IKEA's international marketing strategies, focusing on the debate between local and global approaches. It examines promotional, pricing, product, and distribution strategies in both international and global markets. The report identifies the different international marketing approaches adopted by IKEA, including organizational structures such as international divisional structure and mixed matrix structure. It compares international and home orientations, outlining the implications of each, and explores different types of orientations like ethnocentric and geocentric. The report concludes by summarizing the differences between global and local markets, highlighting IKEA's use of a mixed matrix structure for effective business management. The report includes references to academic sources supporting its analysis.

International Marketing
(LO3 and LO4)

Table of Content
 Introduction
 Present an overview of arguments in the local vs global debate
 Investigation of promotional, pricing, product and distribution approach different in global
as well as in international market
 Determine the different international marketing approaches which is adapted by company
 Compare international orientation and home and ways to assess rivals outlining the
implications of each approach
 Conclusion
 References

Introduction
International marketing is defined as
a process to exchange of products or
services to meet the needs of the
audience. This report include IKEA
company which is located in many
countries such as Europe, Africa and
America.

Present an overview of arguments in the local vs
global debate.
Global marketing: It refers to the market which determine the wants and desires
of final users globally which involves the planning and promoting the goods
and services worldwide.
Local marketing: It is defined to target the consumers which is located in same
region where business operates.

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Risk High risk involved in this type of
marketing as IKEA faces many
challenges such as differences in
culture, exchange rates and
competitors.
Low risk as compared to
international market because it
is easy to form the business.
Financial
resources
IKEA requires more financial
resources to expand their
business in international
marketing which help them to
achieve business objectives.
It is the marketing where less
capital required to manage and
operate organisation.

Investigation of promotional, pricing, product and
distribution approach different in global as well as in
international market.
Basis Global Local
Product It refers the item to meet the
requirement of customers needs and
wants. In this type of marketing IKEA
sells the products such as foods,
furniture and home products.
Products are designed by contracted
designers to sustain in the business
environment.
Pricing In global market, IKEA focus on high
quality products at affordable prices
(Rana and et.al., 2020).
It signifies the amount which users
pay for a products based on consumers
expectations. In this market IKEA is
offering competitive prices from its
rivals.

Determine the different international marketing
approaches which is adapted by company.
Organisational structure refers to identify the relationship, roles and
responsibilities which is coordinated and controlled in international business.
There are various approaches which can be followed in the organisation
which are mentioned below:
 International divisional structure: This refers to the structure where
organisation set business operations and activities internationally.

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Mixed Matrix structure: It is an organisational structure where employees
report to two or more superiors.
Global area division: It refers to process where company manage and control
their business based on geographical areas not on goods basis.

Compare international orientation and home and
ways to assess rivals outlining the implications of
each approach.
Home orientation: It is the orientation there is no requirement of international
investment and extra selling units.
International orientation: It is defined to achieve the goals of business
operations in international market which result in various plans of strategies in
foreign operations.

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Comparison between home and international orientation.
 Home orientation has different structure and strategies as compared to
international orientation.
 Home orientation not fulfil the demand and wants of other countries. On the
other hand, international orientation meet the requirement of all the
countries.

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Types of Orientations
 Ethnocentric
 Polycentric
 Regiocentric
 Geocentric

Conclusion
From the above analysis it is concluded that global and local market are different
from each other such as risk, resources, technology and growth opportunities.
However, pricing, promotional, distribution approach and product are distinct
from each other. IKEA adapt mixed matrix structure to report to more than one
leaders which helps manager to run their business smoothly and in defined
manner.