Marketing Essentials Report: IKEA Marketing Strategy Analysis

This report provides a detailed analysis of marketing essentials, using IKEA as a case study. It begins by outlining the key roles and responsibilities within the marketing function and how these relate to wider organizational departments. The report then delves into a comparison of the marketing mix, contrasting IKEA's approach with that of Walmart. Finally, it culminates in the creation of a comprehensive marketing plan for IKEA, covering various strategic elements. The report aims to provide insights into marketing practices, strategy development, and practical application within a real-world business context, offering a thorough understanding of the subject matter.

MARKETING ESSENTIAL

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles & responsibilities of marketing function...............................................................1
P2 Roles and responsibility relate to wider organisational.........................................................4
TASK 2............................................................................................................................................5
P3 Compare the marketing mix...................................................................................................5
TASK 3..........................................................................................................................................10
P4 Produce a marketing plan.....................................................................................................10
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing can refer as activities of communicating as well as informing about products
and services to potential customers. By adopting marketing approaches, a firm can able to raise
products demands within the market (Babin and Zikmund, 2015). With this, organisation can use
the marketing techniques as its main purpose is to show product features, usage, its cost,
uniqueness and so on. IKEA company is worlds largest retailer firm that manufacturing designs
furniture. This company was founded by Ingvar Kamprad. They are providing job opportunities
to approx 194,000 employees. This assignment include roles as well as responsibilities of
marketing functions and its interrelation with different department of an organisation. The report
will also prepare a marketing plan and compare the marketing mix.
TASK 1
P1 Key roles & responsibilities of marketing function
Marketing
It is the management and study of exchanging relationships. Marketing is used to satisfy,
keep and create the buyers or customers. It is the process of interacting, creating, exchanges and
delivering of products which give its value to customers, society and partners at large.
Current trends
At present, organisations are adopting online websites, templates and e-mail applications.
This will help in increasing opportunities and growth are more brighter as well as bigger.
Performing business activities online is very much cost effective and also evaluate the
effectiveness and brand awareness (Baker, 2014).
Future trends
In future, their will be trends of smartphones which give impact on accomplishing
marketing. Social networking sites can be the sources of accomplishing all the activities of IKEA
within the market.
Different marketing process Mission: In this, company have to make their mission first. So, they can apply it within
the company effectively. Mission of IKEA is providing higher quality of their goods to
their customers.
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 Situational analysis: IKEA is having an advantages of competitive edge as it has driven
through its commitments in order to understand buyers needs, concentrate on products
and services and collaborating work environment.
( Source: Marketing process, 2018) Marketing strategy: Company is providing new schemes and offers to their customers. It
help in maintaining existing buyers and brand loyalty. IKEA is adopting strategies by
establishing new goods and services (Batt, 2013).
 Marketing mix: Firms provide several ranges of products. This help in taking a effective
decision of business activities. It will help customers to buy goods as per their budget. Implementing and control: At last, company implement all those strategies as per their
plans and control on them. If IKEA will able to implement the process effectively then it
will assist in grabbing customers and enhance the profits level.
Roles & responsibilities of marketing functions
Marketing functions are performed by every organisation as it play an very important role
within the companies (Chinn, 2017). IKEA is conducting an effective research which aid in
taking proper decisions for meeting objectives and targets within limited period of time. Their
are various types of roles & responsibilities of marketing functions that are as follows:
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Illustration 1: Marketing process, 2018

 Product: IKEA is manufacturing goods with the purpose of satisfying customers needs
and demands. It will help in grabbing higher numbers of buyers towards firm. Products
can be encouraged in an proper manner in order to earn higher level of profits. Company
require to analyse their rivals goods before introducing a new goods and services for
manufacturing a new product within the marketplace.
( Source: Functions of marketing, 2018)
 Price: It is necessary for IKEA to manage price and nature of their products and services.
Firm have to set up cost by analysing the pricing strategy of their rivals as well as
manufacture product price along with also assessing the external factors. IKEA marketing
department keep on examining customers taste and wants for taking an effective pricing
decisions (Functions of marketing, 2017). Distribution: Organisation aim is to raise profit level and satisfy customers needs. IKEA
is distributing products and services to higher level of buyers. They provide their
products within several areas in market which will help in increasing profits effectively.
Hence, marketing will help in distributing products in different locations. Promotion: Organisation is adopting various promotional activities which help in making
aware of its products to their customers. IKEA is promoting their goods by using press
releases, websites, newspaper and many more. It is necessary for company to find out
best opportunity for giving detailed information of products in order to increase sales.
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Illustration 2: Functions of marketing, 2018

Therefore, marketing department role is to make proper use of promotional tools for
enhancing sales. Financing: IKEA must have appropriate finance in order to accomplish enterprise
activities properly (Desai, 2013). If organisation do not have efficient funds then they
will not able to beat their rivals for long time. Marketing functions should assure that
sales are increasing. So, that business must have proper financial resources.
 MIS: It aid in collecting higher numbers of information and data for evaluating market
situation in an effective way. Marketing divisions get proper information which is given
by management of information system to them. So, it will help in taking a effective
decisions. Therefore, IKEA will help in taking proper decisions of their products and
services as well.
P2 Roles and responsibility relate to wider organisational
At current era, organisation is organising various functional departments for
accomplishing all the activities of business properly. It will help in achieving desired results
within the marketplace (Diana, 2013). Every functional departments is having different roles and
responsibilities. Some of are interrelated with marketing division are as follows: Production department: If firms have to make effective decisions it is necessary to
coordinate with marketing divisions before producing goods and services. It will help in
satisfying buyers needs in a most possible way. IKEA is giving products as per buyers
needs and wants within the marketplace. For manufacturing a goods properly they have
to communicate with marketing supervisor for knowing customers requirements and
wants. Finance department: This division play a very main role in every company. As each
organisation should have proper funds for running enterprise effectively in a market. In
order to accomplish a proper market research there is need of finance which is given by
financial division of an company. Hence, it is important for marketing department to have
effective understanding for operating a business successfully within the marketplace. Sales and marketing department: In this they both are interlinked with marketing
division. For making a proper implement of marketing plan in an company will help in
attracting higher numbers of customers. As it will provide an benefit of increasing sales
within the market. It will be beneficial for both the departments.
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 Human resource department: HR manager is having its duty to recruit a skilled and
talented workers for the organisation. As the marketing team is recruited by HR. So, it is
necessary to have effective coordination among both divisions in order to complete their
task effectively (Durand and Barlow, 2012). IKEA is supplying new goods and services
to their buyers for meeting targets and earn higher level of profits.
 Research and development department: Company is having several sub departments
which help in providing several new offers for completing research. In this both
departments are having favourable conditions for firms. IKEA attempts to find out needs
as well as demands of buyers by accomplishing market research which is help by
research and development division.
TASK 2
P3 Compare the marketing mix
Components of marketing mix is very important for any company. It is essential for every
firm to keep on analysing customers needs while manufacturing a new goods or services
(Forrester, 2010). Their are various tools and techniques which are adopted by IKEA. Company
makes strategies through analysing its rivals such as WALMART so that they can beat their
competitors effectively. The rivals analysis is useful in taking proper decisions linked with
marketing mix involve price, product, process, place, people, physical evidence and promotion.
Hence, comparison is done within IKEA and WALMART are as follow:
( Source; Marketing mix, 2018)
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Illustration 3: Marketing mix

Marketing mix IKEA WALMART
Product Product will help IKEA
managements to achieve
higher level of positions in a
market. In the sector of
housing furnishing all over the
world. IKEA goods are chairs,
outdoor furniture, products of
baby and children, desks,
eating and so on (Gummesson,
2011).
WALMART is a multinational
retailer company of America.
This organisation provide
wide-ranging of products like
as furniture and home, clothing
and movies, footwear, beauty
and health, Jewellery, Toys,
Pet supplies, Photo finishing,
Sporting fitness, Craft supplies
etc. According to its goods
nature of several department
are introduced and they make
proper research within market.
Price IKEA Managements is using a
premium pricing method
which involve all expenses and
grab higher level of customers
to buy their products. IKEA
are having several numbers of
retail store all over the world
it’s natural firms sale various
category of goods and their
prices are fixed according to
customers purchasing power of
country. Due to IKEA
managers are able to
understand the pricing policy
and fix the price accordingly.
WALMART is able to
understand the multinational
cooperation work in several
goods field along with this also
determination the policies of
pricing naturally which is
different from one others.
Managers of WALMART
mainly like to use the bundle
pricing strategy which includes
aspects of customers and
company as well as expenses.
WALMART company is
operating their enterprise
within several country (Jones
and Rowley, 2011). Hence, the
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tools and techniques are
changing according to its
customer purchasing power in
order to maintain balance.
Place IKEA's availableness of
products and services are
better because of proper
distribution management of
processes and techniques.
Firms is having approx 500
retails stores within 50
countries. So, it is essential
that all the goods are
distributed at perfect time in
the retail stores without any
loss (Mitchell, 2012).
WALMART company is
having approximately 11500
retail stores all over the world.
Companies managers are
adopting proper distribution
channels and formulation
strategy such as retailer,
wholesaler and so on.
According to its needs and
demands of customers they
recruit the suppliers from
several countries. These
vendors timely give the goods
within companies retail stores
in an limited period of time.
WALMART organisation is
having 150 + centres all over
the world. Firms are having
several stores according to
their region like as express
stores, neighbourhood stores,
discount as well as super
market retail stores
(Ogunmokun and Tang, 2012).
Promotion This IKEA is having its prime
focus on products
WALMART firms is currently
using a digital mode of
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advertisement. So that
customers should aware about
products. Organisation mainly
like to use advanced
promotional tools according to
current scenario like as
advertisements, TV, display on
hoardings, social media,
printing medium and so on.
IKEA is also taking part in
several events which are
organised all over the globe
(Papasolomou and Melanthiou,
2012).
promotions like as newspaper,
print media and so on. The
managers of marketing are
mainly working on companies
online websites. Therefore, it
is easy to use all types of
buyers. WALMART are
adopting several activities for
enhancing their goods are
online advertising, TV and so
on.
Process IKEA customers visits their
showrooms and select a desire
appliances of kitchen, furniture
and household accessors along
with this choose the effective
mode of payment. At last,
deliver of goods left which is
completed by firms.
Process of WALMART is
related with all works and
procedure which is followed
while selling of products to
their customers like as delivery
process, goods displaying
within stores as well as
specific area according to their
customers preferences and
many more. WALMART retail
stores is using the process of
well-designed by enhancing
the customers level of
satisfaction (Perreault, 2010).
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People In this, IKEA buyers account
or customers comfort level and
maintain a secure relations. It
is performed through front line
members and firms buying. It
is necessary to gain customers
trust along with this it help in
sustaining customers.
WALMART is giving various
divisions of products to their
customers. It will help in
satisfying customers wants and
enhance their standard of
living. Products are given by
company which consists the
better parameters. The
employees which are well -
trained will treat all the
customers within a polite
manner and if any issue rise
then employee have to resolve
the issue within well -behaved
manner.
Physical evidence IKEA always choose the
locations which provide
comfort as well as security
experiences to customers.
Company like those services
location which improve the
environments properly.
WALMART locations of
retail stores depend on
customers easily in order to
reach firms stores. Over 11600
retail stores are introduced
within areas where customers
are much conveniently to reach
the retail store. Organisation
workers of WALMART are
available within the whole
world.
TASK 3
P4 Produce a marketing plan
Executive summary
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IKEA is an world retail chain which is their within the whole world. It is introduced by
Ingvar Kampard in the year 1943. Company is having approx 38 retail stores within the country.
This firm is having its headquarters within Sweden. It provides its customers less cost of
furniture which is easy to set up. The important principle of IKEA is to enhance by using their
resources.
IKEA Vision
“In order to create a perfect life every day for several persons”
IKEA Mission
Company mission is to provide a low rate of functioning goods of home appliances and
wide range of proper designed furnitures. So, that several persons can buy their products.
Objectives of IKEA
 To attract large numbers of potential customers.
 To raise their business in others locations like as operations & distribution. To enhance the system by which stocks are converted in an proper manner.
IKEA SWOT Analysis
 Strength: IKEA largest strength are diversified goods portfolio, supply chain integration,
market presence, brand goodwill, customers knowledge as well as perpetually use of
innovation or creativity to bring their cost down.
( Source: SWOT Analysis, 2017) Weakness: Companies weak points are declining of products quality, standards products
and negativity publicity (Purvis, 2016).
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Illustration 4: SWOT Analysis