Marketing Essentials: IKEA Marketing Functions and Strategies Report

This report provides a comprehensive analysis of IKEA's marketing strategies. It begins by defining marketing essentials and then delves into the key roles and responsibilities of the marketing function within IKEA, including market plan development, market research, relationship building, and brand promotion. The report details how IKEA utilizes these functions to achieve its business objectives, focusing on strategies to attract and retain customers through quality products and effective marketing communication. Furthermore, it explores IKEA's marketing mix strategies, including product, price, place, and promotion, comparing them to those of ASDA. The report also covers how IKEA adapts to the changing market through the use of social media and technology to enhance its distribution channels and customer service, ultimately aiming to increase brand loyalty and market share.

MARKETING
ESSENTIALS

INTRODUCTION
Marketing essential refers to identifying the needs of customers and develop and plan the
product and services that will help in attracting more consumers in the market. A suitable
marketing strategy is very essential in any hotel industry for increasing the brand loyalty,
attracting new customers. present sturdy is based on IKEA company that operates in the field of
designing of various types of modern appliances and furniture. The firm always focuses on
controlling cost, product development, identifying its operational details. study will explain the
key roles and responsibility of marketing function in IKEA. In addition it will describe the roles
and responsibilities of marketing and its interrelation with other functional unit of IKEA. the
report will explain the marketing plan of IKEA organisation. further more, it will explain the
marketing mix strategies of IKEA company for achieving the goals and objectives of entity.
LO1
P1key roles and responsibilities of marketing function in IKEA
The term marketing is defined as the action or business in order to promote and sell
products as well as services that includes market research and advertising. It is also defined as an
activity or set of institutions and process in order to create, communicate, deliver and exchange
offerings that has value in terms of customers, clients, partners and also to the society.
IKEA is a multinational company that operates in the field of designing ready to use
furniture and home appliances. The company focuses on development of product and services by
increasing the quality of goods by controlling the cost of operation. Marketing functions play a
very important role in the operational activities of IKEA(McDonald, and Wilson, 2016). such as
market plan developer, market researcher, relationship builder with consumers, brand promoter
that are the main roles of marketing functions in the goal achievement establishment of
organisation. it helps in identifying various ways to achieve the success of product and services
in the market. IKEA use different targeting strategies in order to satisfy the various needs and
requirements of target audiences that always wants quality furniture and quality of money.
Roles and responsibilities Execution of marketing function in IKEA
The role of developer of market plan for company is played by
the marketing function in order to enhance the revenues of firm.
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Market plan developer it assist making plans for successful execution of business
services in marketplace(Ching, 2016). it involves determining of
over all marketing strategies of firm and determining various
suitable actions with a proper strategic foundation. It assist
making strategies relating to marketing mix strategies of entity
such as product, price, place, promotion.
Market researcher
The marketing function plays a role of researcher in the
company. it helps in analysing and identifying the needs and
wants of consumers in order to customize various different
services as per the requirement of people by designing
systematic research plan(Saeidi And et.al., 2015). it assist in
promotion and distribution of IKEA product and services,
determining effective pricing and packaging strategies in order
to promote the product. It assist in gartering , recording and
analysing the requirement of consumers and identifying the
strategies IKEA's competitors and assist in taking various
business decisions regarding development of new product in
market(Luo., Roach and Jiratcho., 2015).
Relationship builder
This function of marketing helps IKEA in attracting more
customers towards its services. And creating mutual value
between individual customers and supplier. it aids to build strong
relationship of business with its customers and extended
relations assist in creating more opportunities for firm and
customers and benefit both the parties(Human., Bick and Singh,
2016). it assist company in three key areas that includes
development of message, content marketing and increase brand
awareness. Public relation (PR) Plays important role in
impressive connection of key messages to the different public
while developing messaging for the next selling program. The
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researcher function of marketing assist firm in increasing
awareness among the regarding new product launching of
IKEA.
Brand promoter
This function plays a role of promoter in IKEA company.
Through these function of marketing assist in communicating
the product feature, benefits to the prospective buyers on various
social media platforms that enhance the brand loyalty of
people(Saeidi and et.al., 2015). Ultimately, the enterprises keeps
operating with the revenue generated by increased sales and gain
competitive position in market. The company is focuses on
providing core product and services i.e. furniture at an
affordable rates. IKEA use several marketing strategies like
providing comfort , and exclusive experience to consumers .the
market function helps further in promoting company goods by
effective utilization of online platforms by checking the reviews
of customers for identifying the reactions of consumers towards
firm offering that helps in further improving the products as per
requirement of people(Ching., 2016).
The marketing department will need to work closely with the production department to
ensure that adequate research and development is planned in order to satisfy current and future
customer needs
The marketing department will need to work closely with the finance department to
ensure that there is an adequate budget to meet the needs for research, promotion and distribution
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P2 roles and responsibility of marketing in IKEA
Marketing plays a various important role in communicating and reaching out to several
consumers in the market in order to explain the various offers of brand to its consumers in
marketplace. IKEA adopted various marketing strategies in order to reach out to its target market
like social media channels such as websites and applications, publication of brochures,
advertisement and public relations(Korschun., Bhattacharya and Swain., 2014). Social media channels
assist in identifying the new trends of various competitors product in the marketplace. by
knowing reactions of the target market towards its various offering on social media IKEA is
making improvement and taking actions to enhance the quality of its goods and services. it also
plays a very crucial role of service provider. The company is able to provide best services by
identifying the various service needs of people. it helps in determining set of process such as
identifying the customers needs and communication of offer and discounts of IKEA to audiences
and in delivering best quality experience to target customers and maintaining healthy relations
with them. that helps business in achieving its goals and objectives and gaining high competitive
position in market by increasing the profitability of firm.
The market performs a role of market researcher that assist in identifying the various
needs and wants of consumers in the market. it assist in promotion and distribution of IKEA
product and services, determining effective pricing and packaging strategies in order to promote
the product .the main purpose of company is to achieve high satisfaction of customers and
maximize its sales and customers perceived value(Bahl and Chandra., 2018). it perform a vital role
in deciding the most appropriate channel of distribution and regarding the effective effective
transportation of goods to different consumers by determining clear product, price , place
promotion,mix strategies for IKEA.
company has various distribution channels that include wholesalers, manufacturer,
consumers , dealers. The marketing assist in building strong relationships with various member
of distribution channels by promoting the image of brand among the various suppliers of product
and develop healthy relations wit consumers by providing quality goods to them at an
affordable rates. business use social media platform in order to target large number of people for
offering their services. Such as websites ,advertisement,websites(Nyuur., Brečić. and Simintiras.,
2016). It provides an effective content for the websites of company that attracts person for
availing such services of enterprises like exclusive features and benefits of furniture of IKEA.
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that ultimately enhance the growth and productivity of firm and leads to achieve high market
share in comparison with the other competitors.
IKEA is going to enhance the sale of its furniture and home appliances by incrementing
the remote shopping of goods through internet channels. for that they need to have a new and
flexible and effective solution for satisfying the needs and wants of consumers. Enterprises will
need to optimize its delivery process by adopting high and advanced technology like voice-
recognition app technologies. And the marketing helps in effective utilization of these
technology(Hill, 2017). This self- service technology is helping company in saving the cost of
employees and increasing the productivity of its distribution channels. This assist firm in
enhancing its revenue generation by exceeding the quality of its offerings. social media platforms
helps in increasing brand loyalty of people by communicating and introducing various product
options with its features and benefits to target consumers . Ultimately, the enterprises keeps
operating with the revenue generated by increased sales and gain competitive position in market.
Marketing helps IKEA in analysing the internal and external environment of business that
involves the strength and weakness of organisation and various external forces of target market
that informations is further used by firm market segmentation(Nyuur., Brečić and Simintiras., 2016).
Marketing helps firm in ensuring that they are delivering the sufficient quantities in order to
meet the demands and requirement of consumers. This exchange function is performed through
advertising, personal selling and various sales promotion.
LO 2
P3 comparison of Marketing mix between IKEA and ASDA
7p's of marketing IKEA ASDA
Product
IKEA is one of leading globe retail chain
company that offers variety of product
around the world. Its product involves
chairs, cooking, food products ,clothes,
mattress. Apart from this product. they
also provide electronic appliances
storage furnitures kitchen cabinets,
media furniture and wire less charging
ASDA is the largest
supermarket that provides
various range of products and
services to consumers such as
food and grocery product ,
home appliances, clothing and
several entertainment and
luxury quality services. it
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products .company is having product
strategy for its product such as lower
space consuming furniture,offer unique
and exclusive designing of furniture.
offers fresh and chilled frozen
food and drinks and other
healthy products and
entertainment goods and many
other services. company is also
offering new financial services
like credit card, personal loans,
insurance travel that attracts
large number of consumers in
market.
Price
IKEA has used low pricing strategies in
order to compete wit various global retail
chains and other local super market .they
provide low cost furniture for household
people and business class customers like
office furniture. the brand focuses on
controlling cost and identifying efficient
operation details(Saeidi and et.al., 2015).
This pricing strategy of company assist
them in expansion of its business
globally. it has not only adopted lower
pricing strategy but also offer
discounting deals to its consumers.
The company is offering low
price furniture and electric
appliances and other product
and services and providing out
standing services by giving
wide and valuable range of
goods and services to target
market. but the firm also offers
price guarantee that is offered
by other competitor in market.
Which is attracting large group
of people towards their
services.
IKEA use global distribution channel
such as large network of distribution
for the distribution of its product and
services. Company produce huge volume
The company mainly use two
distribution channels like
online platforms i.e.
www.asda.com. and offline
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place
of goods and flat packages. It has more
tan 25 distribution channels and
operating its business in over 50
countries. Enterprises procure material
from local supply chain in order decrease
its transportations cost and use more sea
and road transport by enhancing
distribution channels in the local areas.
platforms. Firm is having
more than 525 stores cross
UK(Saeidi and et.al., 2015).
Business distribute product
through various stores like
supermarket, ASDA living ,
super centre. its super centre
store offer extended range of
goods with some concession
like food service offers, dry
cleaners.
promotion
IKEA focuses on promoting its goods
and services through various marketing
channels like print media, online
websites, advertisements . Company also
organise various advertising campaigns
in order to promote its products.
Company use print media
television and other media
platforms ion order to
communicate with its
consumers. Business do sales
promotion like offering
discounting deals like buy one
get one. they also sponsor
product to various sport
leading charities that has
helped in generating
awareness among target
audience.
IKEA has different operating processes
in various units I.e.44 production units
located in 10 countries. Company use its
own produced raw materials in its in-
house production facility by utilizing
well developed technologies in order to
ASDA purchase product from
various suppliers and sell it to
the customers in market. Firm
provide go to assistance to its
consumers to make payment.
they have provided self-
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process
make final high quality furniture.
business provide code of conduct to
manufacturer that communicates the
guidelines that assist in producing
environmental friendly product(Human,
Bick and Singh., 2016).
service machines to people to
pay services.
Physical evidence
Company has huge layout that offer more
than just shopping experience. They
have used arrows in store to provide
guidance and direction to people that
helps in increasing the desires of
customers. They provide various
refreshment facility in their restaurants
and provide larger space parking in its
stores that are located in outside cities.
Physical evidence means the
environment tat are provided
to customers or the store
visitors. ASDA physical
evidence is not limited to its
stores, brochures,
equipment,logo(Korschun.,
Bhattacharya and Swain, 2014).
people The company consider its employees and
consumers as the most important people.
That increases the confidence and
passion of its staff members for home
furnishing(Saeidi and et.al., 2015). they have
developed healthy and playful culture in
firm that enhance enthusiasm of
members and doest not discrimination on
the basis of religion and caste.
ASDA offer training and
development facility to both
off-the job and off-the job
employees. they are also
offering higher wages to their
staff members in exchange of
any new contract and that lead
to introduce unpaid break.
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LO 3
P4 Marketing plan of IKEA
IKEA is aiming to create a home from furniture chain of budget hotels across austerity gripped
Europe . They have promised to provide approachable services ,contemporary stylish designs at
a most affordable rates(Flammer., 2015).
Mission and vision
the main objective of IKEA is to create and provide better quality of life to many people
in the marketplace. the company is accomplishing such objective by offering large variety of
product and well- designed furniture and home appliances at a very affordable rates so that as
many as people will able to afford such services.
Situational analysis
IKEA apply SWOT i.e. strength, weakness, opportunity and threats in order to achieve its
predetermined goals and objectives that include strategic planning tools that helps business in
focusing on main key issues area. strength and weakness involve internal aspects and
opportunities and threats include all the external aspects.
Strength:the company has speciality of marketing expertise location for the distribution of
goods and services that is adding value to its product and services. The company is having strong
presence in global marke(Hill., 2017). They provide quality goods at low rates that attracts large
group of people. firm offer wide range of goods and well designed furniture for increasing the
quality of people's life. These strengths help them in attracting and retaining their customers.
Weakness: the company analyse its weakness in order to improve and mange its operations. this
helps in forming and implementing various strategies and objectives for entity. In some countries
the product of company do not apply legal code of conduct for the controlling of working
conditions. they believe on the fact that they do not need to compromise on quality for
manufacturing low cost product but sometimes that reduce the quality of goods. They also need
to differentiate their product with competitors goods(Human., Bick and Singh., 2016).
Opportunities:IKEA has several opportunities in the market place such as growing demand of
consumers for low prices products. The current trends in financial market have reduced the
demand of consumers for highly expensive stores.
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Threats: IKEA can make better plans by identifying the external threats for business and can
generate new ideas and strategic actions. Threats involves-social trends like decrease in number
of first time buyer in the stores that is a core market segment for the company. the external
threats includes market forces like large number of competitors with the same low pricing
strategies for offering furniture and home appliances. they need to reinforce its exclusive quality
of services(Khan., 2014).
Marketing strategies
the company is using low pricing strategy for delivering high quality of goods and
services at an affordable rates to various consumers in the marketplace. IKEA uses differentiate
pricing strategy in order to satisfy the needs and wants of customers that always want highly
valuable furniture in exchange of their money(Marketing Strategy of IKEA – IKEA Marketing
Strategy, 2018).Entity has transformed its positioning strategy such as positioned as value -
based company instead of product-based company. that helps in increasing the loyalty of
consumer in market.
Segmentation
IKEA has segmented its market on the basis of brand, income, product-usage and geographic
user base. its target market include lower class and middle-class customers whose income level
is quite low and that people generally lives in suburban areas of country(Loo and Leung, R., 2018).
the company need to achieve economic advantages by using extensive strategies of distribution
channels and business is having better financial position that is permitting them to expand their
operations in other suburban areas(Nyuur, Brečić and Simintiras., 2016).
Targeting
Targeting strategy of IKEA includes choosing a specific groups that is identified as a result of
segmenting as a consumer for the brand.
Positioning
It implies the selection of various marketing mix that is most attractive to the segment of target
customers. there are several kind of positioning strategy like anticipatory, mono-segnment,
adaptive, defensive, multi-segment. IKEA use mono-segment positioning strategy as per that
they make an appeal to the needs and demand of one single customers segment that are price
conscious and also prefer to get value for their money(IKEA Segmentation, Targeting and
Positioning: Targeting Cost-Conscious Customers, 2018).
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