Marketing Essentials: Analyzing Ikea's Marketing Strategies

This report provides a comprehensive analysis of Ikea's marketing essentials, focusing on the key roles and responsibilities of the marketing function within the context of Ikea. It delves into the company's marketing strategies, including market research, product development, and marketing plan, to achieve its business objectives. The report examines how Ikea applies the marketing mix, comparing its approach with other organizations, and explores the impact of marketing functions on various departments such as HR, R&D, and Finance. It also covers topics such as the comparison of marketing mix of ikea with other companies and the importance of the marketing plan for Ikea. Furthermore, it provides insights into Ikea's focus on individual marketing, segmented marketing, and its strategies to maintain customer relationships, product development and financial stability.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
L01...................................................................................................................................................1
P1 explaining the key roles and responsibilities of marketing function in the context of Ikea1
P2 roles and responsibilities of marketing which is related to wider organisation in context to
Ikea.........................................................................................................................................4
L02...................................................................................................................................................6
P3 comparison of ways in which Ikea applies the marketing mix to marketing planning
process for achieving business objectives and other organisation is doing better than other. . .6
L03 .............................................................................................................................................8
P4 making the marketing plan for IKea ...............................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing essential means all the requirement which are needed to marketing the product. For
selling the product various methods are used. The roles and responsibilities of the marketing
function. Report will further discuss that all the requirements are to fulfil of the customer.
Furthermore, it will discuss about the marketing mix of the Ikea. Comparison is made between
two companies in which the organisation are bifurcated by their strategies. Marketing plan is also
discuss about objectives of the entity and cin what ways these are fulfilled. There are number of
methods which are attract the consumers. There pricing strategy is also discussed under this.
L01
P1 explaining the key roles and responsibilities of marketing function in the context of Ikea
Marketing function helps the organisation to work in better way so that selling of the
product become easy. Functions of marketing which are basic one are :market research ,product
plan , development process , sales, finance, customer service. These functions helps in growth of
company. There are many functions which comes under this are market research , development ,
communication , distribution system. It shows nearby link between marketing and firms
function. Understanding the market is very complex but those who understand it , he will be the
king of the market. It helps in knowing the needs and wants of customer . After knowing desires
then marketing department makes strategy of fulfilling the wants of customer. If these things are
completed then all then retention of customer retention will increase. It is the duty of the entity to
make the product which can survive in the market. Only those products are launched which can
earn profit to the company. It is duty of organisation.
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Illustration 1: marketing functions
Source: (12 Important Functions of Marketing, 2018.)
If all these things are considered while making and manufacturing then product or service
are liked by consumers. Due the marketing function only the entity can sell its products to the
end consumers. By innovation or making something new to product it makes its value more. The
more efficiently the staff of the product is working , the resultant will be good. Similarity of the
products which stop the consumer to purchase it. It is the duty of the marketing department that
on regular basis improvement in the product are made so that it can attract the clients and desire
to purchase it. The product and service are made to serve the persons who are coming to our
shop or company. Role and responsibilities of marketing function are:
 Market research – role of research is significant because it makes detail search about
market and after understanding it only product is launched. Research of what type of
need is there in context to product and according to it requirement is fulfilled. This
plays important role in launching the product. After this product or service will be more
likely by the consumer. The more they like it ,selling will increase and after that profit
earning is higher.
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 Marketing plan – the proper plan is made to launch the product. Before launching any
product planning part is necessary. It makes all things in arranged manner. No chances
of confusion are there. It makes things pre defined. Working is easier in this
environment. It has written the goals of the company and promotion strategies which is
necessary in organisation. This is a part of business plan. When the goals and objectives
are decided then marketing department makes the plan to promote the product. Its
foresightedness makes its value. There are many more things which are included in
this .
 Product development – for development of the product , it covers many stages. There
are more things which are to be considered under this . While making product all over
things to look after. The things are to be considered that its ingredients , taste ,
preference, target customers , attractive in looking , branding and the colour
combination. The taste is according to target consumers and for what age group the
product is made. Everything depends on this because final product decides the reaction
of clients. From this only the profit is generated. If it is for health conscious person or
young both taste and preference are very different. So after considering this product is
developed.
 Financing – the money is required for doing the work and for that owner and any
authorise person makes the business plan and there fund is allotted to department wise.
Each section has one person who is appointed to ,look after this. Person has to make
distribute expenses for various work so that over expenses will not be there.
 Buying: It is another most important function of marketing of IKEA in which the
company uses this in order to buy the things or the ideas from the customers and then
produces things as per the requirements.
 Selling: Another most important factor, which IKEA can also uses in order to sell out
things or products to their customers in order to expand their current business. For
example, if the company sell those products and determine different needs of their
customer and then produces things accordingly are also consider the important
function.
 Marketing Information: It means that collection information from the market which
also needs to be apply in their current business. It is another important function of the
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marketing which helps to determined the actual data from the market and then IKEA
produces those products.
Ikea is following all marketing function with its roles and responsibilities. Though it 's work is to
make wooden furniture but for selling the product it is implementing all type of marketing
function . It includes various things which are discussed above.
P2 roles and responsibilities of marketing which is related to wider organisation in context to
Ikea.
The objectives of Ikea is : to offer the wide varieties of home furnishing items with good
design , function , quality and durability. It provides its products in low prices so that all class of
people can purchase it. For this they are following the strategies to gain that aim. They are
making furniture which makes it different from others by additional feature of assembling it. It
minimises the risk of break down and transportation cost. Other companies make the product
which are making the product and assembling it also in store and then delivery to client. The
extra transportation cost occur. The burden will make on the finance department . It focuses on
the individual marketing rather than mass marketing. Company has made regular contacts with
customers or retailers and through this their marketing is done. Keep Regular touch with
customers can give regular feedbacks. According to that products are made as per requirement.
The organisation is giving limited warranty on products and service models. It makes the
consumer to use the furniture well because of this feature. Ikea has implemented segmented
marketing and through this their focus on one product will be there.
They have open small stores for reaching the customer in wide range. On small stores the selling
of product is more. It is the main market so all the person can easily reach out there. Marketing
they are implementing is giving more profit because it focuses on the same type of product for
which different segments is there. Business is following diversity in making the product. If
varieties are there then more customer will come to shop. It can create publicity in eyes of law.
By seeing the different type of product , for choosing facility is available. On regular basis the
improvement can be made to attract the customer for that experiment with design and colour.
The something new is there more it will be favourable to the customer. By satisfying client only
profit can be earned. The management styles country differ. Change in law as well as place can
make the changes in working style.
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The target people with their liking for furniture is change. For this market research is
made after that all the things as per the requirement of consumer. The financial stability of the
company with independence and flexibility. The main motive of organisation to make it
stable .for promoting the company's product many things has to take care of like looking for
pricing strategies of competitor , providing offers , prices are determined and many more. Focus
on the quality of the products which creates values of the company. There are organisation after
making goodwill in the market forget about the quality. Its objectives which help the entity to
measure the performance of the workers and make. Its marketing strategies are different from
place to place. It has many stores all across the world. The established business of Ikea is making
is following different pricing strategy. Its focus on its retail stores which is making its
popularity and creating image in market.
In comparison to large store , retail works best . The thinking of the people about big
stores is expensiveness of product. The retail store make the product more popular. It is the way
of making the product with more quality. The design of the product after the market research are
more good. It makes furniture parts with greater quality as well taking care of the environment
as well. The prices are decided by higher authority. It is set after looking to the whole . The goal
of organisation to make the product more with the best efforts and make it price effective. All the
consumers can't afford higher or expensive products. Furniture is made for all class of people.
The more affordable it is the chances of reaching the customer will increase. The company has
made its goodwill by maintain g trust in the mind of client. They are providing more type of
goods which are fulfilled by the customer.
Role of marketing department into following department:
 HR department: In this department, they are responsible to hire the best candidate as per
the requirement of their company. The marketing department of the company is such that
they determine the needs of their customers and then tells to HR department and as per
the requirement they hire the best candidates. Further whenever the new product is
developed by HR then marketing department of IKEA uses different promotional
techniques and makes that popular in market.
 R&D: This department continuously researches different products and methods in order
to maximizes their profit. For this purpose, marketing department, tells the needs of their
customers to R&D then they develop new strategy in order to execute those into the
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working area. And tell production department to produces same kinds of products as per
the needs of their customers.
 Finance: When the new product is launched by the company or through marketing
department, the finance department check whether the product is beneficial for the
company or not. This also help to finalize the budget which is assigned to different
department.
L02
P3 comparison of ways in which Ikea applies the marketing mix to marketing planning process
for achieving business objectives and other organisation is doing better than other.
Marketing mix means to fulfil l the company's target certain tools are used to achieve the
target objectives. Under this certain parameters are used to fulfil the requirements. Marketing
mix involves seven p's which are useful for the organisation to make the target complete. There
are several processes of marketing planning . Marketing planning includes setting
objectives,strategy formulation , development of action programs, implementation , control and
review. The seven p of marketing mix are
 product – Ikea is selling the product with more than 9500 varieties. Every year
launches or makes the addition of new products which makes the consumer finds
something interesting. Its products are designed according to the design of house and
contract designers are present are there. Democratic design is promoted by the
company. It includes quality, function ,form ,sustainability and low prices. Its
products are made with no additional features or extra quality and comfort. Its
products are more attractive with looking and making the product more price concious.
The other organisation like MacDonald's are selling its product with more the
products with some change in menu. According to the taste and preference of
consumer. In all other franchises the non vegetarian burger are there but in India only
for the sake of consumer the vegetarian dishes available.
 Place – Ikea has the facility of selling the products with offline as well as online stores
are there. It focus on the retail stores because sale is done from there only. Around the
world there are 340 stores in 28 markets. It has 22 pick up and order point, 41
shopping centres and 38 distribution centres. Many clients who are attached to the
organisation by online means , facility of online sites are there to sell them. But after
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that also the store sales has not reduced yet. In MacDonald according to place
everything has changed. There are many things like in other countries it is selling the
product according to the culture. If food is prevalent are there is of traditional and no
one wants to eat it then at that time market research is more important.
 Price - the furniture company is using cost leadership strategy. Products are availible
in low prices so that all class people can afford it. The organisation is able to make its
prices reduced due to economies of scale. In point of view of Ikea it is selling the
product at price point perspective .99 cents rather in 1 US dollar . In MacDonald the
price is decided by the place or country. The more is the gross domestic product of the
country , prices are set according to that. One centred office which is controlling all
franchises decides the price. It depends on the product itself. The more the cost
occurred in making the product after adding their profit margin selling prices are set.
Company is selling the product with the one mission of ' think global , act local' pricing
approach.
 Promotion – the Ikea is promoting its product by different social media. The more
products are sold on Facebook , instagram , twitter and many more. The product is
promoted through word of mouth. Quality product are made by the company so that
customers are more satisfied. MacDonald is promoting through advertising , hoarding ,
banners , offers , discounts and combo offers to attract the customers.
 People - target customers of Ikea are families , office purpose, shop and commercial
purpose. For those only different offers are made. MacDonald is targeting those who
are youngsters or of growing age, children . For these they are making product.
 Process – the process stage of this company is make the product according to the
requirement of the client. It has its own wooden farm for it and from there only the
woods are available. In MacDonald's the franchise are there but they are operated
through central office. Their staff as well as material requirement are fulfilled by the
office.
 Physical evidence - in MacDonald's the staff is fully trained and no complaint
regarding the hygiene. The proper way of serving is there. In Ikea the staff is making
the product with full cleanliness. No wastage of material is there.
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Basis IKEA McDonald's
Price It offers its product at cheap rates Follow seasonal pricing strategy.
Place There are 340 stores in 28
markets. It has 22 pick up and
order point, 41 shopping centres
and 38 distribution centres.
There are about more than 100
stores of a company at world
level.
Product Deals with 9500 variety of
furniture products.
Offer different food products and
also changes their menu as per
customer preference and taste.
Promotion Follow only modern method of
promotions.
Follow both traditional as well as
modern method.
People Target al type of people Mainly target youngsters
Process The process of IKEA is simple and
based upon online process.
Process of McDonald's is also
simple.
Physical evidence Logo and website Brochures, building, staff and
logo.
L03
P4 making the marketing plan for IKea
Execution
Marketing plan of Ikea plays big role in context to its working of the company. The
whole working of entity. The Latest position of organisation . It includes internal as well
external. The swot is done for the to show the current position in market. Furniture company
objectives and its strategies like pricing which is following by the company. Market
segmentation and positioning is done for consumer. There are various methods to attract the
client by offers , discounts. Budget is needed to implement the changes in product. The control
is made on overall activities done in the firm.
Company overview
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Ikea is known as international company which is dealing with furniture. It was founded in
1943 after that growing till now. It is mainly famous for Scandinavian style. The parts are made
in store only and assembled in consumer 's place. It has wide varieties of products of 9500 with
home accessories. The facility of online booking of the product is also available. Its stores also
has restaurants ans cafes that are serving the Swedish food only. It has small groceries where
light food items like meatballs which is Sweden dish. All across the world stores are there.
Through website only 450 million clients and from offline stores 565 million has seen the
products. Countries where sell is done mostly are Germany, USA, France, UK and Sweden .
Current situation analysis
The internal objectives of the Ikea to make the staff synchronised. It is making the
product with great efficiency. It has made low prices to attract the customers . By this sell of the
product is more. It is making the product with the quality. Multiple designs are made to look
beautiful but no frills are added to increase the value of the product. The organisation is known
for the best services provided by customers. There prices are low and product are made
according to the requirement of the customers. Under internal analysis there is swot of the
company is done.
Swot Analysis
strengths
The strengths of the company are making the product which needs only assembling. This
reduces the transportation cost. There are number of suppliers who are supplying the raw
material globally. It meets the needs of all stores. Low pricing is set for the products which are
made to attract the customers. All class of people can afford it. Under one roof there is facility of
restaurants, cafes in which only Swedish food is there. With providing all the amenities it is
adding more value to store. Store has modern and traditional design which are according to the
requirement of the client. Environment is positive in which easily working is done.
Weakness
Market research is not up to the mark. When store is launched in the America , problem is faced
by them. This company has self service system which is not liked by the Americans because they
are not use to about it. Consumers are ratio of sales representatives.
Opportunities
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Company can try or move to the place where system of retailer is not there. With good
relationship with supplier in developing countries, firm can save money. Shopping experience is
unique. Good design are available in low prices .
Threats
With low prices it can't retain customers . Competitors like W al-Mart can take advantage of it
by introducing new offers. Through Scandinavian design only , clients are not retained, for this
something innovation is needed which can make customer interesting.
In external analysis there is Pestle for this : firstly the organisation has to make the market
research of the product. The political stability of the place where it is opened. Economical
condition is look after before launching the product. Socio cultural factors affect the business
indirectly. Techniques which the company is using to make the product. Legal factors likwem
change In any laws which can affect the business. Environmental factors which are causing any
harm to the place.
Objectives
The objective of the company is to available the product at low prices. Increasing sales are the
common objective of the firm.
Strategies
For achieving the objectives firm is using the leadership pricing strategy. For increasing sales
various offers are made to attract customers.
Segmentation , targeting and positioning
in marketing plan segmentation of different department is there so that individual working is
makes the work easier. Targeting the customers according the product like in these families ,
commercial purpose and for personal one as well. For positioning in mind of the client various
social media is used.
Segmentation: It is done on the basis of demographic and psycho-graphic such that
IKEA wants to expand its current business and it wants to exceed its business up to 20 percent
more profit. Therefore the company can also produces things as per the demands of their
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customers and therefore, as the UK is one of the largest country and can be easily expand their
business in more unit in order to expand their current business.
Targeting: The target market of IKEA is in the middle area of UK where the business
can be set up in order to produce more different variety of furniture at wide level.
Positioning: For the citizen of UK, who demand functional, unique and low cost of
furniture for their residence.
Tactics
for promotional purpose it is various things are needed like social media , banners ,
advertisements and many more.
Budget
it is decided by higher authority . The fund is assigned according to the demand. It can be need
not be over expense.
Particulars Amount in $
Advertisements 250
Labour cost 200
Raw material 100
Miscellaneous expenses 350
Total $900
Control
Under control the things of the organisation look after. All the work is done according to time.
CONCLUSION
From this report it can be concluded that the roles and responsibilities of marketing function. It
has also discussed that roles and responsibilities of the marketing with comparing two
organisation . Marketing plan has made to do work easier. It is added in that all the objectives as
well as vision of the Ikea is fulfilled with applying which method. The roles and responsibilities
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of Ikea in context to bigger organisation . Marketing mix is also discussed under this seven p of
marketing are explained . The techniques are used to increase the sales. The more offers are
placed for that.
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