IKEA Marketing Plan: Roles, Mix, and Competitive Analysis

This report provides a comprehensive analysis of IKEA's marketing strategies. It begins with an introduction to marketing essentials, followed by an examination of the key roles and responsibilities within a marketing function, and how they relate to the organizational context. The report then delves into a comparative analysis of IKEA's marketing mix, highlighting product, price, promotion, and place strategies, and comparing it with another organization. The report concludes with the formation and evaluation of a fundamental marketing plan specifically tailored for IKEA. The report covers critical aspects such as customer focus, product and service management, distribution channels, brand management, competitive analysis, and promotional strategies. The analysis emphasizes the importance of understanding consumer needs, adapting to external environmental factors, and leveraging digital marketing tools to achieve competitive advantages. The report also stresses the use of research, transportation, risk assessment, product quality, and development to increase profitability. The final section of the report provides insights into the integration of marketing mix elements and the significance of addressing customer feedback to build trust and enhance brand reputation. The report provides a detailed overview of marketing principles and their practical application within the context of a global retail giant like IKEA.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P 1. Key roles and responsibilities of the marketing functions..............................................1
P 2. How roles and responsibilities of marketing relate to the organisational context..........3
TASK 2............................................................................................................................................4
P 3. Comparison of two organisation in context to marketing mix .......................................4
TASK 3..........................................................................................................................................11
P 4. Formation and evaluation of fundamental marketing plan for IKEA...........................11
CONCLUSION..............................................................................................................................14
REFERENCES .............................................................................................................................15

INTRODUCTION
Marketing simply refers to a contemporary tool which involves different processes such
as generating, designing, manufacturing , promoting as well as supplying varieties of products
and services to the expected consumers as per their basic requirements and demands (McDaniel,
2011). It is usually done to bring a good feeling of satisfaction among civilians. Such actions
helps in making high sum of profits and enlarging businesses at greater extent as company could
reach to large number of people through digital marketing techniques. The present report is
designed by considering IKEA which is a popular Swedish – founded international organisation.
It was set in 1943 in Sweden and its headquarter is situated at Leiden, Netherlands. They mainly
used to deal with Ready - to - assemble furnitures and domestic goods. It has founded that they
comprised of around 194,000 workers in the year 2017. This report is highlighting several
concepts of marketing essential. For instance, roles and responsibilities of marketing functions of
referred firm has been covered clearly. This prospects has been presented herein. Along with
that, concepts affiliated with marketing mix utilised by IKEA is also covered in clear manner.
This will contribute in knowing about different terms of referred organisation like product,
prices, promotion techniques, people, physical evidences, etc. It is explained in comparative
style.
TASK 1
P 1. Key roles and responsibilities of the marketing functions
Marketing used to play an eminent role in each and every venture since it caters them
proper techniques in order to bring development and growth. The key aim of marketing function
is to offer merchandises or various kinds of services to targeted users in accordance to their
requests. For doing the similar things, IKEA requires to form effectual strategies linked with
merchandising so as to receive adequate competitive benefits. It has been recognised from doing
survey that recent tendencies has been altering day by day since companies are taking use of
modern or contemporary tools and techniques (Lehmann and Bengart, 2016).
For instance, several apps of social media such as Facebook, Twitter, What's app,
Instagram, etc. for creating awareness amongst all citizens who are surviving all over world.
Thus, trends affiliated with marketing facets are improving on continuous basis. At the same
time, it is predicted by scholars that such facets may be developed more in upcoming days. Apart
1

from this, it has been recognised that different external environmental factors such as
government, political, social & economic situation of nations wherein firm is operating their
commercial actions, technological aspects, etc. are giving impacts in positive as well as negative
manners on the overall working or performance of IKEA. For example, high rates of tax is being
imposed by legal bodies; due to this more amount of firm is getting wasted in paying those taxes
only. Hence influencing adversely on economical or financial circumstances of referred
organisation. On the other hand, rules and regulations created by government such as prohibition
of child labour, giving equivalent wages to each worker, etc. aids in maintaining discipline and
ethical environment in entire country.
There are several roles and responsibilities of marketing functions which is being applied
by IKEA. The primary one are discussed as follows :
Focussing on requirements of common public : Through marketing tool, referred
organisation is able to determine about the prospects liking with basic needs of civilians. They
try to find out what is being liked by large number of person. After that, they attempt to design
the similar so as to provide them greater degree of gratification. This is turn contributes in
acquiring attention of customers towards deliverables offered by mentioned enterprise.
Product and service management : This has been founded that marketing function also
assist in handling overall scenarios associated with setting pricing of products or services. IKEA
is making effort in context to lowering the level of cost so that each and every individual could
enjoy goods catered by them in effective mode (Lamb and Hair, 2011).
Distribution channel : It is treated as most vital function of marketing or commercialism
since it is supporting in distributing products which has been prepared by venture to more
number of users in minimum time frame. IKEA is giving its best in the same field so as to
increase the capabilities of supplying or catering deliverables. For achieving this, they are
attempting to apply modern methods in order to do proper as well as systematic arrangement of
catering their trade goods to maximum people.
Creating and managing corporation- al brand : Since through marketing, publicity is
getting performed in efficacious style which as an effective outcome helps IKEA in making a
good brand image in- front of their expected civilians (Adil, 2013). Thence, it can be said that
believes in people could be generated by carrying out marketing activities in suitable mode.
2

Observation on competition : IKEA can also monitor the current scene regarding the
degree of competition at marketplace. They may easily examine the merchandises or services
which is being supplied by their challengers and could build effective strategies for gaining
competitive benefits at last.
Promotional channel : Marketing tools contributes in designing impressive promotional
channels. In order to transfer important messages regrading new created goods and services,
IKEA is taking assistance of digital or modern methodologies whereby they used to post
information in context to their deliverables so that their customer would get idea regarding what
kind of products are being catered by them. Thus, they take correct decision before purchasing
the same and hence enjoying the benefit of prior knowledge provide by IKEA.
P 2. How roles and responsibilities of marketing relate to the organisational context
Marketing is defined as the set of activities for producing, delivering and selling
particular goods or services so that customers needs or wants can be satisfied in an effective
manner. There are several companies who focus on effective marketing for increasing profits and
profitability in an appropriate ways. In this included number of activities like promotional,
advertisement, STP such as market segmentation, target and positioning, new product
development, pricing strategies as well as areas which is required to perform by the organisation
to accomplish goals or objectives (Joshi, 2012). In the IKEA firm, it is the major duty of
marketing manager that to analyse particular demands or needs and define marketing situations
in better manner. They take responsibility to produce effective goods or services for meeting
customers desired outcomes. Manager consider survey and conduct research for analysing or
identifying customers needs, demands and wants by gathering information or data. They collect
information regarding current market situations, competitors and customers so that better
products or services can be produced.
IKEA firm always focus on formulating best strategies and make decisions regarding new
creations, innovations and unique feature of goods and services. there are lots of competitors in
the market so, it is necessary to form better strategies and use tools and techniques to promote
particular goods or services for the purpose of achieving set targets and accomplish goals. There
are various roles and responsibilities of the marketing which are performed by IKEA to achieve
competitive advantages such as;
3

Research : In this consider the study which conduct for analysing demands of customers,
market conditions as well as environmental factors so that company can make decisions
regarding manufacturing any goods or items and select best method of promoting those into
market. Research is an essentials which helps in taking corrective actions and create wealth in
the marketplace (Khan, 2013). It also support in increasing profitability and productivity through
appropriate sales. IKEA can make better decisions for competing with competitors.
Transportation facilities: This must be necessary to make decisions regarding
transportation or deliver goods by using effective channel of distribution. IKEA firm focus on
using suitable method for capturing market and reach at potentials customers. Manager of
marketing department use appropriate strategies for transforming goods and services as well as
use effective tools or techniques by considering costs and time (Hamilton, 2011). Therefore,
IKEA company use Just In Time (JIT) strategy to manage import and export with well
mannered.
Risk assessment: In this consider various risks or uncertainties that generally occurs
while running an organisation as it is genuine that arise any risks in business operations. In this
included internal and external risks which affects on the organisation as directly or indirectly.
Therefore, IKEA firm required to consider all these forces and formulate appropriate strategies
for achieving set goals or objectives (Gertner, 2011).
Effective quality of products or services: This is major role of marketers to provide
better quality of goods to the customers which will support in attracting them towards
organisation. IKEA company consider the strategy of Total Quality Management at the
workplace so that long term benefits can be get.
Product development: It is also another important task as to modify existing products as
well as launch new product in the market. It can be possible through effective research and
development in the organisation as IKEA firm consider this to attracts more customers.
TASK 2
P 3. Comparison of two organisation in context to marketing mix
This has been observed that every venture has been enforcing the concept of marketing
mix in order to do decorous planning as it would contribute in attaining all predetermined
4

ambitions and aims. Marketing mix simply refers to the integration or collection of tactics or
activities which is utilised by all companies for the purpose of promotion of their brand or
production in whole market place. This in turn aids in gaining proper attention of users as it is
common that civilians believes on goods & services of popular brand. As an outcome, sales rate
of venture got enhances in drastic manner. It usually comprises of four main factors such as
Price, Promotion, Place, product. In addition to this, various other elements are also included that
are physical evidence, process and people. Supervisors of IKEA have to concentrate more on
determining one of the best means so as to do publicity of their designed deliverables. For they
could take assistance of digital tools and instruments like Social media.
In context to this, refereed corporation could post beautiful as well as attractive images of
their furnitures or another commodities on different webpages like Facebook, Twitter, What's
app, Instagram, etc. These techniques are considered as most effectual methodologies since less
period of time of time is consumed in doing this. Apart from that, company can accomplish the
identical task by spending minimum amount of revenue (Aghasi, 2012). It has been founded
from a survey that almost all civilians surviving in UK and in all over globe are having accounts
on such social websites. Thus, this is very easy task to reach at numerous of citizens as most of
them are taking use of those applications. They could give their point of views on specific
products or services. It is to be noted that such feedbacks might be negative or positive. Hence,
if any antagonistic comments are seen or received from the side of clients ; then managers must
have to address the similar on priory basis so as to resolve the complications faced by them.
This will aids in gaining as well as building trust - worthy relationship amongst their customers
as they understand themselves as special one (Forte, 2012). Besides this, by applying
conceptions of marketing mix, IKEA would be able to know about the condition of their existing
competitors. They can easily recognise about merchandises and services which is being supplied
by rivals. In this respect, refereed venture may develop innovational and creative deliverables so
that they would acquire competitive advantages.
5

(Source : Marketing mix, 2017)
Therefore, it is very important for IKEA to carry on proper or correct analysis regarding
prospects of marketing mix. This can be better understand by the comparison of IKEA and ALDI
which has been described as follows :
Tools of marketing mix IKEA ALDI
Product This is nothing but the trade
good which is being
manufactured and delivered by
any company to their possible
customers in order to earn
maximum profitability in
return. Varieties of
deliverables or services has
been fashioned by IKEA like
furnitures, beds, mirrors,
chairs, services associated with
bathroom, merchandises for
child caring, cloths storage,
On the other hand, it is also
one of the popular firm dealing
with retail sector and is
considered as potential
challenger of IKEA. They
commonly used to cater
various kinds of products at
reasonable costs. It contain
deliverables like fashionable
clothes, domestic items, fresh
and green vegetables & fruits,
goods related to cosmetic as
6
Illustration 1: MARKETING MIX, 2017

decorative things, cooking
stuffs, desks along with many
other safety commodities
(Durmaz, 2011). They
basically try to satisfy their
consumers so as to make
strong presence in market in
comparison to their rivals.
well as health, stationeries, etc.
Price Price can be simply defined as
the costing which is being
incurred or determined by
enterprises for selling the
similar to large quantity of
citizenries in order to earn
benefits. This has been
observed that mentioned
venture is being adopting
suitable prices schemes so as
to seek focus or attention of
more and more people towards
their merchandises. In
addition to this, they are
setting cost of specific goods
by examining the pricing
strategies of their contenders
(Marketing mix, 2017). This as
a fruitful result helps in
enhancing overall selling rate
since clients would prefer
them more as they are
supplying same products at
ALDI is also executing good
plan of action in context to
rating or pricing schemes as
they also want to create a
strong customer base. It has
been investigated that products
and services area being
provided by their stores and
outlets at cheap rate
(Fazlollahtabar, 2012). In
addition to this, they are
considering factors inter-
linked with costing. Thus,
price may be setted by them
after evaluating entire
investment that is done at the
time of developing the
merchandise. Besides the
similar, ALDI is enforcing
various other strategy such as
penetration of market, cost
leadership, competitive
pricing, etc. for the intention of
7

low price. making higher amount of turn
over per annum.
Place This shows the location
whereby company is present
and trying to reach their
customers for the intent of
selling manufactured good and
services in efficacious manner.
IKEA is taking help of
distribution plans in order to
supply designed merchandises
to the expected users in
impressive style. They are also
attempting for building vast
and appropriate network of
distribution. It has been
founded that IKEA is having
outlets in above fifty nations.
Along wish this, they are
applying better facilities
associated with transportation
so as to acquire their aim.
The retail stores of Aldi is
approx. 8000. That is why they
are able to provide designed
goods to their possible
consumers according their
requirements and needs (Desai,
2013).
Promotion This is nothing but the place
which is used for the purpose
of spreading awareness
regrading newly created
services as well as products
among vast crowd existing not
only in nation but also to those
who are surviving in another
On the other hand, ALDI is
also focussing on gaining good
impression amongst their
clients. For doing the same,
they are taking use of several
methodologies such as social
media applications, TV,
hoardings, newspaper, etc. for
8

territories. They are utilising
different tools like bill boards,
magazines, televisions,
commercialised advertisement,
print media and many more for
conveying messages affiliated
with their deliverables. This in
turn supports in enhancing
entire sales level of
corporation as people will
show more attention towards
purchasing their unique
commodities.
making better presence.
People It refers to those worker who
are performing in venture for
accomplishing their daily on
basis. It is considered as soul
of an organisation since
without them none of the work
can be even started. IKEA is
having nearly 194,000 staff
members in the year of 2017
(James, 2013).
This has been observed from a
research that Aldi Süd is
employing around 104,400
employees in 2015. At the
similar time frame, nearly
58,179 personnels were
performing in Aldi Nord. They
are concentrating on full filling
each demands of manpower so
as to make them feel satisfied.
Process This is another factor which is
associating with whole actions
beginning from designing to
the delivering of goods or
services to citizens. IKEA is
following its own method in
generating roughly forty four
ALDI is also enforcing
different processes in order to
develop effective products .
For this, they are focussing on
improving the existent
condition of assorted
departments like HRM, Sales
9

units of production in various
nations. In addition to that,
they are also giving attention
on maintaining cleanliness in
surrounding, designing
complete variants deliverable
in relation to rivals,
management of innovational
services, exploring supply
chain channels and so on.
These all chores would
contribute a lot in achieving
aims and objectives of IKEA
(Clow, 2013).
and accounts, manufacturing,
promotion and many other so
as to acquire pre – setted
targets and goals.
Physical evidence This venture is having about
chain of three hundred fifty
retailing stores and thus
reaching to their potential
users effectively. They are also
engaged in providing various
other instructions to people
who used to visit their market
for creating awareness.
Additionally, they are offering
with unique sections at their
outlets like smoking zone,
child caring or handling, etc. in
order to meet the desires or
needs of persons.
ALDI is also providing several
facilities to their customer so
as to quench them properly.
They are giving services
affiliated with electronic lifts,
trial or toilet rooms, canteen,
baby handling and so on.
10