IKEA is the world’s largest home furnishing retailer. It has around 380 stores worldwide and is driving the furniture market in the developing nations. The company have an exclusive museum to showcase its creativity in Almhult, Sweden.
Ikea is the provider of affordable, stylish, modern architectural designed furniture, kitchenware and appliances that are shaping the comfortable living of people around the world.
Segmentation, targeting, positioning in the Marketing strategy of IKEA –
Demographic, psychographic & geographic segmentation is used by the company to segment the market to cater to the changing market dynamics of home furnishing, Kitchenware & appliances industry.
It uses differentiated targeting strategy to satisfy the needs & wants of the consumers who look for value for money furnishing solutions.
IKEA has transformed itself from being a product-based company to positioning itself as a value-based positioning.
Marketing mix – Here is the Marketing mix of Ikea.
SWOT analysis – Here is the SWOT analysis of Ikea.
Mission – “Not Available”
Vision- “To create a better everyday life for the many people”
Tagline – “Affordable solutions for better living”.
Competitive advantage in the Marketing strategy of IKEA –
Coordinating with designers across the world and testing their ideas so as to provide the growing home furnishing needs is one of the biggest advantages that Ikea has over other players in the markets.
Wide-range, artistically designed, eco-friendly and affordable furniture at low cost will always be the driving force for the company.
IKEA has garnered respect in eyes of the community it serves and for the employees who work for them which has created positive word of mouth and has helped the company in increasing the share of wallet of the customers.
Long-term strategic partnership across the supply chain has helped the company in manufacturing and delivering the items on time.
BCG Matrix in the Marketing strategy of IKEA –
IKEA home furnishing solutions in the developed nations are stars whereas in the developing nations it is the question mark due the low awareness level and inclination of customers towards local players.
Distribution strategy in the Marketing strategy of IKEA –
IKEA coordinate with supply chain stakeholders like designers, material suppliers, product developers and its stores all over the world to make their products available to the consumer.
They had partnered with 1002+ suppliers in 51 countries who help them in maintaining the quality of home furnishing /Kitchenware & appliances in its 380 stores worldwide.
Brand equity in the Marketing strategy of IKEA –
Branding is the essential element when it comes to marketing your products. Positive word of mouth, CSR activities and empowering their co-workers has helped the company in creating awareness and popularising their brand even in the markets in which they are not present.
Its various popular advertising campaigns like “Home is the most important place in the world” or its “unboring” and various others TV campaigns helped the company in creating top of mind awareness.
Competitive analysis in the Marketing strategy of IKEA –
Many national & international players are giving head-on competition to IKEA. Companies like practicer, TepeHome, Kelebak, EnglishHome, Fabfurnish.com and much more are dealing in online and Offline mode while IKEA has only franchised stores which mean low infrastructure cost and high visibility.
Market analysis in the Marketing strategy of IKEA –
Home furnishing industry is facing intense competition from Local outlets & online e-commerce start-ups. The only driving force is the novelty in the style & design factor which is shaping the industry demand side.
IKEA have functional & design leadership in the furnishing /Kitchenware & appliances segment in most of the markets it is in.
Customer analysis in the Marketing strategy of IKEA –
Customers of IKEA are the working class people who are looking for value for money home furnishing solutions. These are majorly in the age group of 20-50 years. These are the consumers who have an inclination towards the stylish & modern home furnishing solutions.
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