The IKEA marketing mix (7Ps) framework has been a stepping stone in aligning the brand’s appeal with the customer’s vision in such a way that it will lead to an impressively wide customer base, clear value proposition and repeat business.
The marketing strategies adopted by the Swedish furniture chain focus on product innovation, the latest technology, physical evidence, new ideas like mixed and matched products, market research, cutting-edge experiences, mass market affordability, content marketing strategy and augmented reality to boost brand identity and visibility in the target market.
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Introduction of Swedish Furniture Chain IKEA
- Origin Country: Sweden
- Founder: Ingvar Kamprad
- Founded: 1943
- Headquarters: Delft, Netherlands
- Employees in 2023: 231,000
- Annual Revenue in 2023: 41.9 billion EUR
- Net Income in 2023: 7.1 billion EUR
- Brand Value in 2023: 17.4 billion USD
IKEA is a Swedish furniture chain that sells and designs ready-to-assemble own furniture, decoration, kitchen appliances, home accessories, home services and several other goods. The conglomerate is a favored furniture brand as it has been recognized as the “World’s Largest Furniture Retailer” since the year 2008.
IKEA Group is a favored furniture retailer with Swedish national colors that believes in quality items and products. The furniture giant uses 1% of the total available commercial wood to create its own wood products with 99.5% recycled wood in such a way that it has become the “World’s Largest User of Wood in the Retail Sector”.
Target Audience of IKEA Marketing Mix
The Swedish furniture chain no longer believes in a simple tiered strategy but instead focuses on product innovation, cutting-edge experiences and novel ideas to create an impressively wide customer base. IKEA is a favored furniture brand with good quality products and numerous furniture options that is necessary to please several sections of the target market.
The target audience in the IKEA marketing strategy is homeowners who are looking for a unique style of home furnishing or a democratic design that represents their cultural heritage proudly. The diverse range of products and huge company stores have something for every customer. It also offers customized products to customers who want personalized goods.
Customers understand the concept of a furniture product demo as it helps them to come to a viable decision. The target audience of the furniture company is also college students and cost-conscious customers with a limited budget looking for an easily recognizable theme in a DIY product. IKEA focuses on creative customers who love innovative products at lower prices
IKEA Marketing Strategy & Marketing Mix (7Ps)
IKEA understands that a simple tiered strategy is not the way forward as it does not lead to repeat business. Thus, IKEA’s marketing strategy puts the focus on mixed and matched products module, flexibility in approach and product customization to suit individual needs and preferences.
The marketing strategies adopted in the IKEA marketing mix have ensured that sponsored content with creative partners expands the brand identity and inspires the customer’s vision in the target market through a clear value proposition.
IKEA’s bold lettering, the Swedish national colors, blue and yellow themes, the most iconic logos, direct marketing, affordable prices, physical evidence, new demographics, vast supply chain and easily recognizable theme in the DIY IKEA durable products that represent cultural heritage proudly are the reasons that have led to imaginative, original and awesome customer experiences
Product Strategy: IKEA Marketing Mix
The product strategy in the IKEA marketing mix makes sure there is a strong value proposition and that the customer understand that IKEA’s products are made from the latest technology and have their unique style for reusable durability.
Innovative products are the demand of the hour and this is what the product portfolio of the furniture company focuses on. The furniture retailer is known for using own wood to make the company’s products, democratic design for different types of own furniture and appliances, innumerable furniture options and furniture product demo to the customers to boost brand identity amongst the target audience in the target market.
Product Element in IKEA Marketing Strategy
The product strategy of IKEA products in the IKEA marketing strategy is very simple. IKEA focuses on innovative ideas, product quality and price point perspective that will impress the target audience in the target market.
The product portfolio in the product strategy of the furniture retailer includes
The IKEA marketing strategy in the furniture category includes gaming furniture, beds, tables, sofa, furniture sets, media furniture, chairs, cabinets and children’s furniture etc.
- LINANAS 3-SEAT SOFA
- KVISTBRO STORAGE TABLE
- GLADSTAD UPHOLSTERED BED FRAME
The IKEA marketing strategy in the home textiles and furnishings category includes curtains, beddings, blankets, bath textiles, table linen, baby textiles, chair pads, fabrics, outdoor cushions etc.
- PARKSALLAT CUSHION COVER
- ROSENRIPS FLAT SHEET AND 2 PILLOW-CASE
- SANDDADRA SHEER CURTAINS
Storage & Organization
The IKEA marketing strategy in the storage and organization category includes bookcases, storage solution systems, cupboards, cabinets, wardrobes, shoe racks, trolleys and wall organization etc.
- BILLY SERIES
- VIHALS SERIES
- BESTA STORAGE SYSTEM
The IKEA marketing strategy in the decoration category includes IKEA products like frames, mirrors, vases, decorative accessories, clocks, home fragrances, noticeboards and flower pots etc.
- SMYCKA ARTIFICIAL FLOWER
- FREBRO MIRROR
- SAVSTA MEMO BOARD
IKEA products in the IKEA marketing strategy lighting category include lamps, decorative lighting, LED bulbs and bathroom lighting etc.
- IRSTA-LED WORKSHOP LIGHTING
- TRADFRI SHORTCUT BUTTON
- BARLAST FLOOR LAMP
Kitchen & Appliances
The IKEA marketing strategy in the kitchen and appliances category includes IKEA products like interior fittings, kitchen doors, cabinets, pantry, knobs, handles and kitchen appliances etc.
- METOD / MAXIMERA BASE CAB WIRE BASKETS
- HYLLIS SHELVING UNIT WITH COVER
- ANRATTA FORCED AIR OVEN
Besides the above product lines, IKEA products in the IKEA marketing strategy also include categories like smart home, beds & Mattresses, baby and children, bathroom products, outdoor products, work-for-home IKEA products, carpets, mats & flooring, tableware, kitchenware, laundry, cleaning, home electronics, home improvement, food & beverages and plants & flowers.
- FARGKLAR DEEP PLATE
- RUG, FLATWOVEN
- HALL LAUNDRY BAG WITH STAND
Place Strategy: IKEA Marketing Mix
The place strategies in the IKEA marketing mix puts the focus on global expansion and new demographics through IKEA Stores across the world. IKEA products are available in 445 IKEA Stores in 50 countries. The stores are located outside of city centres to avoid traffic hassles.
The company designs the products in Sweden but the manufacturing process takes place in developing countries where the raw materials and labour are cheap to keep the costs down. As most of the products are styled as DIY the assembling is also done by the end user.
The company uses the hardwood alternative known as particle board as raw material for the products. The distribution strategy in the marketing mix of IKEA is based on flexibility and efficiency. The company has implemented an omnichannel fulfilment model with a robotic automated warehouse system.
The IKEA marketing strategy has gone through a significant change and the company has decided to open stores in towns and busy localities where people have quick access to the company stores.
Place and Distribution Strategy: IKEA Marketing Mix
The place and distribution marketing strategy in the IKEA marketing mix puts the focus on the supply network so that the brand can buy the raw materials at low prices and all the products from the warehouses can reach the stores on time.
Direct dealing with creative partners expands the supply chain and makes it super effective. The distribution channel for IKEA products include-
The place strategy in IKEA’s marketing strategy is a bit complicated as all IKEA Stores operate as a franchise under Inter IKEA Systems B.V. which is entrusted to handle manufacturing, supply network, raw materials, designing and branding etc.
Ingka Group is another segment of the IKEA Group that handles the majority of Ikea Stores under the franchise system and has to pay the royalties to Inter IKEA Systems B.V. in some cases independent franchisees also operate the IKEA stores.
The IKEA Stores have a traditional one-way layout as they are typical blue buildings representing the national colors of their country. The IKEA Stores are built in a way that encourages customers to see the stores in their entire glory.
The store cafeterias make the customers feel comfortable with quality food
There are 12,000 IKEA products in the product portfolio of the furniture company website with billions of visitors.
Price: IKEA Marketing Strategy
The price strategy in the IKEA marketing mix and marketing strategy puts the focus on operational details, continuous innovation and development and cost control for mass-market affordability. The company’s products are of good quality with lots of options for the customers. From a price point perspective, the customers understand that the brand’s appeal is in IKEA reusable durability products which is also its main USP.
Eliminating intermediaries has also helped the furniture retailer in cutting down on costs without compromising on product quality and ensuring low prices for IKEA products.
Price Strategy of IKEA Marketing Mix
The IKEA marketing strategy and marketing mix has adopted several pricing strategies under the price point perspective so that the furniture retailer can maintain a loyal customer base. The price strategy of the brand includes
The furniture retailer understands that low prices or affordable prices and that too without quality compromises can help to attract customers. From a price point perspective, the brand has cut down on operational costs, handling costs and intermediaries within the supply chain to ensure low prices for the products. This is why the company has adopted a policy of affordable prices that ensures complete customer loyalty towards the esteemed brand.
IKEA is a world-renowned brand that faces stiff competition in the market from global retail chains, local supermarkets and domestic companies. This is why the company has kept its product prices low and competitive so that the customer base remains loyal to the brand.
Promotion: IKEA Marketing Strategies
The promotion strategy of the company is both distinctive and original and the credit no doubt goes to the comprehensive marketing mix strategy. The brand uses most of the advertisement tools like traditional media, most iconic logos and content marketing strategies to boost brand image and increase brand visibility amongst the customers in the market.
The promotion strategy that the brand uses include
IKEA has taken the help of traditional tools like electronic and print media for promotional activities. The ad campaigns are shown via television, radio, magazines, newspapers, billboards and hoardings etc.
The company focus on content marketing strategy, online advertisements and innovative ideas. It has created content that has gained maximum visibility and posted it on social media platforms to maintain contact with customers.
IKEA Place App
The IKEA Place App is an augmented reality app where consumers can visualize desired IKEA products in a real environment.
IKEA has taken numerous environmental measures as part of its environmental awareness program. It has replaced PVC usage from packaging with recyclable materials, minimized the use of chromium and eliminated acid-curing lacquers.
Collaborations and Sponsorships
The company paired up with The Sims 2 to make IKEA Home Stuff featuring several products of the brand. IKEA also held the title sponsorship of Philadelphia’s Thanksgiving Day Parade as part of its promotional activities
Loyalty Card IKEA Family
IKEA has launched the “IKEA Family” in collaboration with other retailers. It is a loyalty card free of charge with which consumers can avail of discounts on specific products.
The INGKA Foundation
The INGKA Foundation is involved in several charitable causes and promotes innovations in interior design and architecture.
IKEA Social Initiative
IKEA Social Initiative was formed in 2005 to manage the brand’s social initiatives on the global platform. The main partners of the initiative are Save the Children and UNICEF and the brand often distributes product items and donations through this program
Digital Marketing: Memorable Marketing Campaigns
The ad campaign “Dining Room” was one of the first ads featuring a homosexual couple.
IKEA Human Catalogue
IKEA 2017 launched the “IKEA Human Catalogue” campaign which went on to become highly successful. It was the winner of numerous awards like the Ogilvy award and the Webby award.
Buy Back Friday
The ad campaign “Buy Back Friday” had an all-important message of presenting new life to the old furniture instead of promoting new items
People Strategy of IKEA
The people strategy of the IKEA company puts the onus on training employees especially from sales and customer service teams with special techniques so that they become fully aware of the product details.
The company has ensured that there is no discrimination in the workplace based on religion, race or ethnicity.
Process Strategy of IKEA Marketing Mix
IKEA company has 50 production units that are located in 10+ countries across the world. As part of its process strategy, the company has sawmills for providing the necessary raw materials for the product items.
The furniture retailer has adopted highly advanced technologies, special inventory management techniques and clean environment initiatives as part of its process strategy to create a clean supply chain.
IKEA introduced a code of conduct for suppliers in 2000 where the suppliers have to answer queries related to social, environmental and safety concerns.
Physical Evidence of IKEA Marketing Mix
445+ stores of the company are located in various cities across the world. These are the physical evidence of the brand that helps it in maintaining direct contact with the customers, increasing the sales volume and generating profits.
The store layouts are very specific to help customers in reaching their desired counters easily.
key Takeaways from the IKEA Marketing Mix (7Ps)
The key takeaways from the IKEA marketing mix are
- Creating comprehensive strategies that have ensured huge success in the market
- Ensuring all the 7Ps of the marketing mix are up to the mark
- Affordable pricing so that customers can easily buy the items
- Focus on marketing and advertising for maximum brand visibility
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