Marketing Essentials Report: IKEA Marketing Plan and Strategy

This report provides a comprehensive analysis of IKEA's marketing strategies. It begins with an introduction to marketing, defining its role in communicating and delivering information about products and services. The report then delves into the key roles and responsibilities of the marketing function, including product development, financing, market research, pricing, management information systems, promotion, distribution, and selling. It also examines the relationship between the marketing department and other organizational units such as human resources, finance, research and development, production, and sales. The report further explores the marketing mix (product, price, place, promotion, people, process, and physical evidence) and its application in IKEA's marketing planning process, comparing IKEA's strategies with those of its competitor, Argos. The analysis covers various aspects of IKEA's marketing approach, emphasizing the importance of understanding customer needs, setting appropriate prices, utilizing effective promotional techniques, and establishing a strong brand image to achieve business goals and objectives. The report concludes with a summary of the findings and references used throughout the analysis.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibilities of marketing function........................................................1
P2 Roles and responsibilities of marketing in relate to organisation context.........................3
TASK 2............................................................................................................................................4
P3 Marketing mix to marketing planning process to achieve objectives...............................4
TASK 3............................................................................................................................................8
P4 Marketing plan for IKEA..................................................................................................8
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is process which management conduct to create adequate message which is
communicated and delivered to provide information to public about items and services. It is
activity which each firm conducts to grab attention of people and satisfy them. Marketing plan is
constructed by team which defines 7 P's that areproduct, price, place, promotion, people, process
and physical evidence. These are various components which are designed by management in
respect to needs and demands of people. Different tools and technologies are used by companies
to target and attract large number of people (Desai, 2013). This help maanger to construct
competitive advantage and compete with rival brands. Present report is based on IKEA which is
famous furniture company established in different nations. It is a multinational company which
provide ready made and ready to assemble home accessories,furniture and kitchen appliances
This assignment specifies roles and responsibilities of marketing function and its relations with
firm. Marketing planning process and plan is formulated by management to frame marketing
mix; thereby attain business goals and objectives.
TASK 1
P1 Key roles and responsibilities of marketing function
Marketing is necessary activity which management conduct to inform people about
products and attract them to purchase things in respect to their requirements. This is appropriate
function which helps superior to improve sales by increasing customer base. Investigation is
tactic used by seniors to have complete knowledge about needs and wants of people. Customers,
society and partners are given information about items and services of IKEA. This help firm to
grab attention of consumers; thereby influence and persuade them to purchase things (Malhotra,
2015). Hence, these are various responsibilities and roles which are performed by marketing
team are stated below:
Product: This aspect define that organisation deliver variety of products in market
according to needs and wants of people. In IKEA, operational people design and manufacture
products in according to demands and requirements of clients. Ready to assemble furniture is
best tactic which defines that company offer things which consumers are able to arrange at their
home in according to room space. This benefits IKEA to attract people and satisfy them by
providing them innovative and creative things.
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 Financing: This is another tactic which specifies that administration distribute funds in
different department, so that appropriate business operations are executed by IKEA.
Marketing team require to have adequate tools and technologies to inform people about
variety of furniture, home appliances and kitchen appliances.
 Market research and development: Market survey is technique used by management of
IKEA to have adequate information about needs and wants of people. This also help
seniors to acknowledge strategies used by competitors and their offerings. Marketing
team provides appropriate information to operational people about choices of people.
Along this, various schemes and programmes are designed to attract people and provide
them data about products.
 Price: This component influence buying decisions of customers, as they require to get
items at appropriate rates. In IKEA, management uses adequate strategies and
manufacture things at reasonable cost to give benefits to customers to purchase items in
according to their choices and requirements. Marketing team have complete information
about rates of competitors products and expenses which are consumed to manufacture
furniture. These are tactic which are considered by management to set appropriate prices
to attract large number of people. Along this, different discounts and vouchers are
provided by firm to influence people and affect their purchases.
 Management information system: This is essential tactic which helps management of
IKEA to provide appropriate information to staff members about demands of people.
Along this, customers are acknowledged variety of items. This help company to attract
buyers and deliver adequate variety of furniture to people in according to their choices
and requirements.
 Promotion: This is another responsibility of marketing team which defines that
organisation communicate and inform people about items and services. This help
manager to grab attention of people and attract them to by informing about availability of
things in marketplace. Personal selling, publicity, sales promotion, online advertising and
social media are various techniques used by marketing team to provide complete
information to public. Print media, e-marketing and social media are tools used by IKEA
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to increase market reach and sales volume (Baker and Magnini, 2016). This also helps
management to construct competitive advantage and attract people.
 Distribution: This component define that management uses retailers and wholesalers
which help firm to deliver adequate products in marketplace. This help IKEA to provide
appropriate facility to buyers and make them purchase things in according to their needs
and wants.
 Selling: Marketing team of IKEA uses social media and online advertising to inform
people about furniture, home appliances and kitchen appliances. Customers have
information about variety of products which are provided by IKEA. This gives support to
salespeople to easily grab attention of buyers and deliver things in according to their
choices and demands. Apart from this, management is even able to establish strong brand
image and reputation in respect to other rival firms.
Therefore, these are various functions which are performed by marketing team of IKEA.
Promotional techniques that is social media, online advertising and sales promotion are used by
firm to grab attention of large number of people (Rudden, 2016). Different variety of products at
reasonable rates are provided by management to attract customers and make them purchase
things in respect to their requirements and demands. Henceforth, administration is able to
generate good amount of profit by enhancing sales volume.
P2 Roles and responsibilities of marketing in relate to organisation context
In every organisation, management construct department and distribute members in
different units to conduct business activities effectively. Human resource, finance, production,
R&D, marketing and sales are various segments which help management to utilise resources
efficiently. These departments help IKEA to execute appropriate business operations and deliver
adequate items and services in market. Furniture, home appliances and kitchen appliances are
various products which are provided by firm. New items and facilities are launched by
management to enhance customer base. Innovative and creative things are provided by IKEA to
target new market and attract large number of people.
Marketing functions have interconnection with other units which is stated below:
Human resource and marketing department: Employer responsibility is to conduct
recruitment, selection, compensation, training and development practices. These are activities
conducted by management of IKEA to have adequate workforce(Hugos, 2018). Subordinates are
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given duties and targets in according to their skills and abilities, so that they function effectively
and complete work within defined time. Marketing team require to have adequate subordinates
which are able to establish appropriate image and reputation in market. Sessions, meeting and
various training program is conducted by manager to improve abilities of employees and make
them capable to use technologies adequately and frame attractive messages to attract customers.
Finance and marketing department: This unit defines that executive and accountants
responsibility is to utilise funds and provide appropriate money to each department to execute
operations effectively. It is essential that marketing team of IKEA get adequate amount so that
suitable promotional techniques are used by manager. Along this, manager even require to
provide offers and discounts to attract large number of people.
Research & Development and marketing department: Market research and survey are
techniques used by management of IKEA. This help firm to have accurate and complete
information about needs and wants of people. This benefits marketing team to design products,
set appropriate prices, use appropriate promotional techniques and deliver in market in according
to choices and requirements of customers.
Production and marketing department: Products and services are provided by
organisation to fulfil demands of public. Furniture, home appliances and kitchen appliances are
various items which are provided by IKEA. Marketing team helps management to provide
information to staff about choices and demands of people (Smith, 2014). Along this, competitors
products are analysed by seniors to design things and add appropriate facilities and features to
establish competitive advantage over rival firms.
Sales and marketing department: Promotional techniques that is online advertising,
social media and sales promotion are used by management of IKEA. These tools help company
to inform people about items and influence them to purchase things. As, buyers have knowledge
about variety of products which are offered by IKEA. This gives support to salespeople to attract
people and have adequate customer base which buys products to fulfil their requirements.
TASK 2
P3 Marketing mix to marketing planning process to achieve objectives
Marketing mix is aspect which defines that manager acknowledges components that
organisation control and manage to inform public about items and make them purchase things.
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These are components which are consistent of marketing mix and designed by superior in
according to situations prevailing in marketplace. Product, price, place, promotion, people,
process and physical evidence are elements which formulated by manager of IKEA to make
system function in according to market conditions. Marketing mix is tactic used by seniors to
manage business and deliver adequate items and services to people. Different promotional
techniques and distribution elements are used by administration which help them accomplish
goals and objectives.
IKEA is retail store which is popular and well known for modern designs of furniture,
home and kitchen appliances (Wang, Chen and Chen, 2016). Administration manufactures
products which are environment friendly and helps firm establish competitive advantage in
respect to competitors. Besides this, continuous improvement and innovations in items are made
to provide adequate facilities and features to people. IKEA has branches in different nations
which help firm have large customer base; thereby improve sales and profitability.
Argos is competitor firm of IKEA which is a subsidiary of Sainsbury. Variety of
consumer goods are provided by firm which help administration to fulfil needs and wants of
people. Different food items and furniture are provided by company to attract large number of
buyers and make them purchase things in respect to their taste and preferences (Mittal, 2014) .
Henceforth, marketing team of IKEA require to frame appropriate marketing mix to
establish competitive advantage and position firm higher than rival brands. This is description of
7P's of IKEA in respect to Argos which is stated below:
Basis IKEA Argos
Product Furniture, food items home
and kitchen appliances are
provided by firm.
Modern design products that is
ready to assemble facility
helps customers to handle
furniture properly.
Different variety of food
products and furniture are
delivered by Argos.
Modification and
transformations in items are
made by management to attract
customers.
Price IKEA provides various range
items and at reasonable rates to
Management uses appropriate
tools and techniques to lower
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attract large number of people.
Cost control tactics are used by
management to reduce
expenses and manufacture
quality things in market.
Penetration pricing strategy is
used by manager of IKEA to
attract large number of people
by providing products at
reasonable rates.
down prices of items.
Relations with suppliers is
maintained by seniors to utilise
resources and provide things at
affordable prices.
In Argos, skimming pricing
tactic is used by superior to
target moderate people which
demands quality products.
Place Administration have large
number of outlets established
in different nations (Pike,
2015). IKEA is multinational
firm which uses adequate
distributional channel to
deliver appropriate items and
services to customers.
Online and offline both
facilities are available for
people to purchase things. This
increases market reach and
customer base of firm.
Argos is expanding business
and opening new outlets in
same city and various other
countries.
This help administration to
increase market reach and
customer base.
Distribution system that is
retail store is used by firm to
deliver things to people which
have purchased and ordered
from websites.
Promotion Online advertising, social
media and sales promotion are
various techniques used by
marketing team to inform
people about variety of
products, its features and
facilities (Pappas, 2017).
Management of Argos have
segmented and divided people
in small groups to provide
things in according to needs
and demands of customers.
Demographic tactics that is age
and gender are used by firm.
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These are tools used by
management to attract large
number of people by providing
them information about
innovations and creative
products.
E-marketing and personal
selling are techniques used by
marketing team to aware
people about items.
People In IKEA, management have
skilled and competent
workforce which help firm
provide innovative and modern
things to customers.
Meeting and seminars are
organised by administration to
improve skills and abilities of
staff. This help firm retain
members for longer period.
Ready to assemble is tactic
which helps company to attract
people and satisfy buyers.
Management prime focus is to
enhance capabilities of
members by conducting
training sessions and seminars.
This benefits Argos to provide
good customer services and
have competent employees
which interact with buyers
properly (Swenson, Rhoads
and Whitlark, 2014).
This help top personnels
construct competitive
advantage over rival brands.
Process IKEA has outlets in more than
30 nations which determine
that management require to
use appropriate tools and
technologies to make system
function effectively.
For ready to assemble
furniture and innovative
things, firm require to design
items and use latest techniques
of production (Wu, Kirkole
Argos is firm which provides
both online and offline facility
to people.
Online websites helps
customers to communicate
with company to get adequate
data about products.
Management had build quality
website and provide telephone
tactics to customers to order
things and conveniently
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and Huang, 2016).
Besides this, inventory
management tools are used by
seniors to have adequate
products available in stores.
purchase things.
Apart from this, adequate
system are used which gives
advantage to people to pay
money through cards.
Physical evidence IKEA has around 340 stores
which help management
provide adequate items and
services to people. Company
have outlets established
globally which comprises
adequate environment to staff
to make them function
effectively.
Composed and quality
conditions are provided to
customers to make their
experience wonderful.
Argos has adequate layout and
infrastructure which helps
administration to attract large
number of buyers.
There are huge improvements
that are made by seniors in
store to enhance market image
and reputation.
This help management to grab
attention of people by giving
them adequate facilities in
outlet and offline through
websites.
TASK 3
P4 Marketing plan for IKEA
Marketing plan is document formulated by management to frame appropriate tactics and
strategies in respect to product, pricing, promotion and distribution. IKEA is multinational firm
which provides variety of items that is furniture, food items home and kitchen appliances at
reasonable prices. Administration provide budget and funds allocated in each activity executed
by company to target people (Wang, Chen and Chen, 2016). Online advertising, social media and
sales promotion are various techniques used by marketing team to inform people about variety of
products and facilities. This help firm to enhance market reach and customer base which benefit
seniors to improve sales volume and profitability. These are various aspects which are specified
in marketing plan are stated below:
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Executive summary: IKEA is retail store which has around 400 outlets established in UK
and various other nations. This firm is known for modern designs which are provided by
manager to grab attention of large number of people. Different types of appliances, furniture and
interior decoration products are offered which are environment friendly. This benefits superior to
establish competitive advantage and attract customers to purchase things in according to their
requirements and choices.
Mission: Enlarge business and open new outlets in different nations to increase market
reach and customer base.
Vision: Provide well- designed and quality products to establish competitive advantage;
thereby attract large number of people by providing products at affordable rates.
Objectives: Prime goal which is determined by management of IKEA is to provide
innovative and creative items in market in according to taste and preferences of people.
Segmentation, Targeting and Positioning (STP): This technique used by IKEA to
provide variety of items and at different ranges to attract large number of people. This is
description of tactics which are used by management to establish appropriate image and goodwill
in market are as follows:
Segmentation: IKEA provide variety of items which help seniors to give products to
customers in respect to gender and age (Baker and Magnini, 2016).
Targeting: Management of IKEA provide different range items which help firm to attract
large number of people. Both, middle and large class individuals are targeted by firm.
Positioning: Food items, home and kitchen appliances are provided in according to taste
and preference of people. Online advertising, social media and sales promotion are techniques
used by marketing team of IKEA to inform people about products.
Marketing mix of IKEA: Product: Furniture, food items home and kitchen appliances are various things which are
provided by firm. Along this, IKEA has different concept that is ready to arrange which
gives consumer facility to set furniture products in according to their room space. Price: IKEA provides products at reasonable rates which help firm grab attention of
customers and make them purchase things in according to their requirements. Place: IKEA has outlets in different nations which help management have large customer
base (Askeland and Wright, 2013).
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 Promotion: Online advertising helps IKEA to have strong market image and reputation
which help marketing team attract people and influence their purchase decision.
SWOT Analysis of IKEA: This technique is used by marketing team to have complete
knowledge about system abilities and market conditions. Strengths are acknowledged by
management to utilise opportunities by implementing appropriate tools and technologies.
Besides this, weaknesses are overcome and removed by seniors to make system function
smoothly and effectively. Innovative and creative items that is furniture, food, home and kitchen
appliances are provided by IKEA. This help firm enhance image and reputation in market;
thereby attract large number of customers.
Strengths Weaknesses
 IKEA has 340 stores established in
different nations which help
management to have large customer
base.
 Efficient relations with suppliers to
have adequate amount of products
available in stores (Malhotra, 2015).
 Ready made furniture and variety of
food, home and kitchen appliances are
provided by firm.
 Training and development programmes
that is sessions, seminars and meeting
are organised to improve skills and
abilities of members.
 This consumes large amount of funds
and efforts of top personnels.
Opportunities Threats
 Enlarge business and open new outlets
in same city and various other nations
to enhance market reach and number of
people.
 Expand business into different market
segments to increase variety of
products to grab attention of large
number of people and enhance sales
volume and profitability.
 Argos is famous retail store which is
competitor of IKEA.
 IKEA require to use appropriate
technologies and provide adequate
products in according to choices and
requirements of people.
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Marketing budget of IKEA:
Particulars Amount
Initial money 30000
Investment 20000
Total 50000
Marketing expenditures
Advertisement 8000
Sales promotion 3500
Direct marketing 4500
Total 16000
Available balance 34000
Monitor and Control: This aspect define that marketing team uses various techniques
such as management by objective, performance reports and variance analysis. This help
administration to have complete information about system abilities and market conditions
(Desai, 2013). IKEA asses image and reputation in mind of consumers which help seniors to
anticipate rival firm's offerings. Therefore, redesign of system and appropriate technologies and
tools are used to deliver innovative and creative things and quality services to customers.
Evaluation: This is last step which defines that manager conducts market research and
take feedback from customers to assess quality of products. It is essential that IKEA provides
products in according to choices and demands of people. For this, manager require to have
skilled employees which deliver quality items and services to customers. Performance appraisal
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is technique used by administration to analyse capabilities of employees by comparing results
with standards. Hence, training sessions are conducted by superior to improve skills and abilities
of staff members.
CONCLUSION
From the above report, it can be comprehended that marketing is necessary activity which
helps companies to set appropriate position and image in market. Human resource, finance,
production, sales, R&D are various department which are present in every firm. These are
department which have relations with marketing unit and helps manager to enhance image and
reputation of firm in marketplace. Market research is activity which is conducted by manager to
acknowledge demands and requirements of people. Along this, competitor's offering are also
assess by superior to formulate adequate marketing mix for organisation. SWOT analysis, STP
that is segmentation, targeting and positioning tactic used by firm to attract and provide things in
according to needs and demands of people. Thus, marketing plan is developed which includes
vision, mission, objectives and budget.
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