Marketing Plan for IKEA: Analysis, Strategies, and Ethical Issues

This report provides a comprehensive analysis of IKEA's marketing plan, encompassing various aspects such as market analysis, organizational capabilities, and external factors. It delves into IKEA's marketing strategies, including the use of the 7 Ps of marketing, and examines the company's approach to new product development, pricing, distribution, and communication. The report also explores the significance of marketing planning in strategic planning procedures and addresses ethical issues influencing marketing planning and how the organization responds to them. Furthermore, it includes a SWOT analysis of IKEA, highlights the importance of adapting to changing consumer behavior, and discusses the role of social media in marketing. The report concludes by emphasizing the need for continuous improvement and adaptation in the ever-evolving marketing landscape, making it a valuable resource for understanding IKEA's marketing approach.

Marketing Planning

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Assessment changing of perspective in marketing planning................................................1
1.2 Evaluate organisation capabilities for planning....................................................................2
1.3 Evaluates the techniques for organisation audit and external factors...................................2
1.4 Bringing organisation audit and analyse the external factors...............................................3
TASK 2............................................................................................................................................4
Covered in PPT...........................................................................................................................4
TASK 3............................................................................................................................................4
3.1 Marketing plan for products and services.............................................................................4
3.2 Significance of marketing planning in the strategic planning procedures............................5
3.3 Examine the tools and methods for new product development............................................6
3.4 Justify recommendation for pricing policy, dispersion and communicating mix.................7
3.5 Explain factors which affects the effective execution of marketing planning......................7
TASK 4............................................................................................................................................8
4.1 Ethical issues influence marketing planning.........................................................................8
4.2 How organisation will response to ethical issues..................................................................8
4.3 User ethics and its effect on marketing planning..................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In these days, marketing is important is most effective process which help in promoting
various companies goods and services in proper manner. This will assist in gaining attention of
customers towards innovative products. The firm mainly focus on different organisation
techniques and methods which directly or indirectly influence the buyers towards the company
activities and functions (Morgan, Katsikeas and Vorhies, 2012). This report will always diversify
the whole perspectives of marketing within IKEA which is biggest supermarket of UK. It will
also analyse organisation abilities and capabilities in proper manner. The main motive of this
project is to understand the major factors that can directly affect on the marketing planning and
also identify arising barriers of the organisation.
TASK 1
1.1 Assessment changing of perspective in marketing planning
The IEKA is use the effective strategies of marketing for continuously changing the
technology of firm. This is required for carry out effective modification and alterations which
can not perform system in more proper manner. IEKA is one of the leading retail organisation in
2008 which is used for developing methods and techniques of marketing in effective manner. On
the other hand, planning is play an important role for designing and implementing successful
marketing strategy by which company gain maximum profitability (Pulendran, Speed and
Widing II, 2015). It is necessary for business is to promote their products and services through
marketing mix such as seven Ps of marketing that includes price, place, people, promotion,
physical evidence, process and product. If consumer purchasing power is increasing then it is
required for company is to modify and alter latest technology for distribution of production.
In the present time period, mew media is enhancing for the promotional and different
marketing activities or functions. There are various sources of media which help in promoting
company products and services in easy manner such as Facebook, Twitter, Instagram and many
other. This will assist in smoothly communicate the information and data with each other. Social
media used by IEKA which main aim is to advertise marketing of various goods and services
that attracts large number of customers in proper manner.
1

1.2 Evaluate organisation capabilities for planning
Company have capabilities and effective concepts which means to managing and
controlling power of resources such as employees which help in accelerate the benefit of
competitors (Taghian, 2010). This will assist in presenting actual skills and capabilities of the
organisation. Through this, an enterprise will face different types of barriers and conflicts in the
external market place and also compete with the firm competitors. It will help in evaluating the
actual position and status of company in more effective manner. There are different points which
directly affects the profitability of the firm that are as under:
 Develop brand image in organisation
 Lack of communication skills
 Improper Advance technology
 Increasing amount of goods and services
 Weaknesses and disadvantage of firm
Traditional marketing is play an important role in the current scenario. The main focus of
organisation is on various management resources that includes machinery, labour strength,
human resources etc. in proper manner. In current time period, the company will make
innovative and creative products according to the desires and wants of customers which help in
leading firm for maintaining and supervising various resources in effective way.
1.3 Evaluates the techniques for organisation audit and external factors
It is necessary for firm is to analyse the customers needs and wants for achieving desired
goals and objectives in effective manner. This is required for audit the organisation such as
internal and external factors (Wang and Pizam, 2011). It will help in guiding and directing the
firm and also influence different goods and services. There are various internal and external
elements which are discussed as follows:
Internal factors
 Various Resources of firm includes competitors, capital investors, suppliers etc.
 Maintain relation and bonding with employees, consumers, suppliers and many other
people of IEKA.
 Analyse the vision and mission of organisation
 Demand, needs, wants, requirements and customers expectation level.
External factors
2

It is effective components which is situated in outside of the firm that includes political ,
social, technological, legal, economical and environmental factors. This will assist in analysing
the PESTLE which directly affect the sale level of products and services and also create new
image of brand within an enterprise.
As per the above factors, it should be determined the prices, supplying goods and
different services are also done (Wilson, 2010). Marketing manager use effective strategies for
promotion of company products and services and also gain attention of large number of customer
towards their commodities.
1.4 Bringing organisation audit and analyse the external factors
It is one of the major factor of marketing which help in analysing organisational and
surroundings examination of the firm. This will assist IEKA for easily examining and carry out
actual position of organisation in marker place. It also help in accomplishing desired targets and
objectives which are set by company manager and leaders. By this, it is the first stage for
analysing internal and external elements in proper manner.
SWOT of IEKA
Strength
 This is largest furniture organisation
which established in 2008.
 Collection of supply chain management
 An enterprise will contain different
functioning of products Organisation have proper customer
knowledge
Weakness
 Reducing quality of products will break
the consumers trust
 Company should eliminate their weak
points of IEKA so that they will need to
improved
 Maintain products standard
Opportunities
 Enlargement and marketplace
penetration is one of the effective
chance for developing the IEKA firm
 Preparation of food products and
services Increasing sale of products which can
Threats
 improvement of common income of
customer
 Tough competitors
3

attracting global customers
TASK 2
Covered in PPT
TASK 3
3.1 Marketing plan for products and services
IEKA perform planning to develop their business functions and activities in proper
manner. There are different countries which provide various types of products and services along
with best quality which help in generating more revenue and income for the firm (Wrenn and
Mansfield, 2014). This is important for company is to implement and execute planning in which
they spend approximately 5,00,000 euros.
Current market Analysis
For the increasing of competitions, IEKA is introducing some products which are relates
to furniture such as Stockholm, Hemnes etc. An organisation will spend their capital in various
types of marketing analysis that includes 5Cs evaluation and marketing mix concepts. This is
essential for firm is to identifying customers by which organisation can gain attention of
potential customers that will increasing business expansion and its operations.
SWOT Analysis
This is the internal factor which directly or indirectly affect the marketing elements in effective
manner (Baker and Saren, 2016). It will evaluating the marketing planning and also minimise the
drawbacks of company which assist in converting the weakness into strength of the organisation
abilities.
Targetting, Segmentation and Positioning
This is the another stage of marketing planning, IEKA have take decision for managing
their marketing into various other sections such as psycho graphic (middle class and more higher
people), demographic (family or business persons), geographic (metro and prime cities). The
firm will provide benefit to middle class people and mainly women are their first target for
fulfilling their needs and wants in effective manner. An organisation will take position in the
4

international market place and UK market serve low cost products, unique and functioning
demand.
Objectives
Organisation should determine for expanding their business to satisfying customers as per
their wants and desires and also gain maximise the annual turnover rate.
Marketing strategies
The main aim of firm is to achieve major objectives, goals, mission and try to focus on
complex areas for analyse the quality of goods and services in cheap price. This will gives
benefits to the customers (Chang, Park and Chaiy, 2010). They should create effective strategies
for betterment of company products and services.
Financial planning
Company will prepare their budgets that includes 5,00,000 euros for better execution of
strategies and planning in proper manner.
Controlling and Implementation
IEKA will implement the effective plans and policies for making accurate reports and
also help in supervising whole activities and functions which are coordinated by managers. They
should take feedback of customers according to the improvement of products quality and
quantity.
3.2 Significance of marketing planning in the strategic planning procedures
The marketing plan will assist in providing actual information and data which directly
linked with consumers desires and demands. This activity can help in adopting right decision on
right time. Effective marketing planning will aid company in building strong and good image of
products in the large market place. There are certain points which help in analysing the plan:
 It will assist in evaluating all required demands and wants in external environment
 Aid in attracting large number of customers
 Identifying the major threats and competitors which arises in the external market place
 By using marketing plan, an organisation will easily identify the needs of buyers
 Evaluate the potential customers according to the wants and needs
It will play an important role for developing organisation functions and also help in
executing and implementing effective strategies for increasing the profit.
5

3.3 Examine the tools and methods for new product development
New product development refers to that process which help in make innovation activities
in existing and current products in continuous basis. It is done for enhancing the sales and
productivity in proper manner (Hollensen, 2015). There are procedures of new product
development that are as under:
Stages Brief
Idea generation It is the first stage, IEKA will generate ideas developing
new and creative products and services.
Idea screening This is the second stage in which company will screening
the whole goods generating ideas before implementation
6
Illustration 1: New product Development, 2017
(Source: New product Development, 2017 )

within an organisation.
Concept testing In this process, company manager will give products for
final testing for its quality and quantity.
Business Analysis This is fourth stage in which firm will analyse the entire
business operations and its strategies in proper manner.
Product development It is the fifth process where firm will analyse product
development according to the demand of customers.
Commercialisation This is sixth stage in which company will used
commercialisation and promotional tools for attracting
large number of customers.
Review of market performance Finally, firm will analyse overall performance of market
in proper manner.
3.4 Justify recommendation for pricing policy, dispersion and communicating mix
The process of creativity and innovative products and services in effective and efficient
manner in the market place. There are certain elements which are as follws:
 Mail order
 Retailing
 Distributors
 Online sale
After choose the suitable design for distribution planning to the cost of goods and mainly
focus by IEKA firm (Hung, Chang and Kuo, 2013). Pricing policy directly or indirectly affect
the various elements of marketing sales in effective manner. An organisation profit and loss are
totally depend upon pricing policy where they main focus on lowering the cost of products.
An enterprise will use various promotional mix methods that includes online marketing,
sale through promotions, personal relation, personal selling and advertising etc. for promoting
any product so that the best source is social media such as Twitter, Facebook, Instagram which
mainly used by IKEA company during their advertising and promotional events.
7

 Pricing strategy- The pricing strategy of IKEA is to determine the actual price of products
which has been change when the goods is important part of product mix. IKEA is using
penetration pricing which help in increasing its success and growth that can attracting
large number of customers due to reasonable price.
 Distribution strategy- IKEA main aim is to make strategy for providing low prices so that
they can cater to each and every person within the large market place. This strategy help
them for make most successful furniture retailer with operating costs and higher the
demand of products.
3.5 Explain factors which affects the effective execution of marketing planning
There are different kinds of components which directly influence the implementation of
marketing plan of IEKA: Mission- The major mission of firm is to focus on long term development by investment
planning which provide benefits to future employees, suppliers, consumers. IEKA
mission is totally based on their values, beliefs where sustainability is not expensive
goods but still this will give low-priced to their customers in the market place. Quality- Cited firm will made innovative and creative products and services and
according to their vision they will do necessary changes in the company (Lee, Kuo and
Muhos, 2015). They will develop best quality products for making the better day for the
people.
 Strategy- Marketing strategy help in gaining attention of large number of customers and
provide them low cost products in effective manner.
 External factors- There are various factors which directly or indirectly impact on level of
income, buying capacity and economic crises. They also buy goods regarding their socio-
cultural values where social groups are totally belong to their style. This condition affect
the marketing planning of specific company in effective manner.
 Internal factors- IKEA is directly or indirectly affect the intrinsic factors that includes
swot analysis. It will impact on marketing functions and activities of particular firm on
internal basis.
8

TASK 4
4.1 Ethical issues influence marketing planning
Ethical issues is that activities which help in organising and managing by organisation
that is against the law. In an enterprise, the wrong behaviour of employee can not bear in the
corporate world which can lead the firm towards achieving desired goals and objectives. IEKA
company follow all rules and laws of the UK government for maintaining whole functions and
activities of the organisation. Marketing planning assist in increasing reputation of firm in the
large market place. It will help in eliminating and reducing all occurring barriers and conflicts
which are related to company performance and quality of goods and services. An enterprise
workers can analyse the entire marketing planning which help in evaluating employees. There
are certain ethics which directly influence the planning of marketing that are as follows: Online secrecy- For updating online data and information so there is possibilities of
leaking or hacking information through online serve which activity is totally against with
ethics attitudes.
 Technical fraud- It is that crime which relates to information technology department that
includes hacking and some other cheated activities (Li and Li, 2010). This will assure that
organisation remove these kind of hacking functions.
4.2 How organisation will response to ethical issues
Various issues which relates to ethics can be developed by reasons which are defined as
pathetic communication system, manufacturing and production misconception. IEKA need to
analyse the feedback and reviews of customers for proper making of communication channel
flow from one department to another department. It is important for the company is to operate
and manage whole functions as per the corporate duty. They can flow the products and services
messages which are best suitable for organisation and also deal with various issues or problems
in effective manner (McDonald and Wilson, 2016). This will assist in removing all the issues
which are related to goods messages. An enterprise can use proper methods and techniques for
marketing promotions in the large market place. By acquiring accurate training and development,
employees have gain and enhance their skills and abilities for solving difficult issues or problems
which occurs within an organisation.
9

4.3 User ethics and its effect on marketing planning
At some time consumer will face consequences in each situations in effectively within an
organisation. IEKA can manage and control whole employees functions and activities in proper
manner for giving consumers credibility and loyalty among them. There are various issues which
occurs for followed all the laws and rules where an organisation can develop major guidelines
and modulate which solve the fake activities. In below, there are certain guidelines which are as
under: Secrecy Interruption- An enterprise can maintain entire data and information which
relates to consumer and they also make sure that their information can not leak or hacked
by anyone (The battle for market share in UK supermarkets. 2016). The firm can not
break all rules and norms. IKEA need to maintain their whole data and information that
will related to customers in effective way.
 Dishonourable Action- Company adopts disgraceful activities that includes provide
wrong data to their clients or customers. This factor directly affect the marketing
functions and activities for providing unnecessary and inappropriate data for their
customers or clients in effective manner. Sometime firm can disgrace all major activities
and functions whether they can provide wrong data and information.
CONCLUSION
From the above mentioned report it can be concluded that marketing planning is play
very essential role in sale of various types of products and services for attracting large number of
consumers in proper manner. The company will adopt effective techniques and methods for
proper functioning of business operations and its activities. Marketing planning assist in
increasing reputation of firm in the large market place. It will help in eliminating and reducing
all occurring barriers and conflicts which are related to company performance and quality of
goods and services.
10