IKEA Marketing Strategy – Marketing Strategy of IKEA: IKEA is the largest furniture retailer. It has 338 stores around the world and is the leading market for furniture marketplace in developing countries. Marketing91 has an exclusive museum that showcases its creative talents located in Almhult, Sweden.
Ikea is a leading provider of fashionable, low-cost modern, contemporary architecturally designed furniture, kitchenware, as well as appliances, which are transforming the lives of people all over the world.
IKEA At A Glance – Marketing Strategy of IKEA
Company : IKEA
CEO: Jesper Brodin
Founder: Ingvar Kamprad
Year founded: 28 July 1943, Älmhult, Sweden
Headquarters: Delft, Netherlands
Annual Revenue: €41.3 billion
Profit | Net income: 1.19 billion
Number of employees : 155,000
Products & Services: Ready-to-assemble furniture, homeware, food products
IKEA Fun Facts: Ingvar Kamprad founded Ikea in 1943 when he was 17 years old and originally sold pens, wallets, and picture frames. The first Ikea store opened in Älmhult, Sweden in 1958. The chain expanded to the US in 1985.
Marketing Strategy of IKEA
IKEA’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of IKEA? Let us discuss.
Segmentation, Targeting, Positioning – IKEA Marketing Strategy
Demographic, psychographic, and geographical segmentation is employed by the business to segment the market to meet the ever-changing market dynamics of kitchenware, home furnishings, and appliances.
It employs a distinct target approach to meet the demands and desires of customers who seek the best value for money-providing solutions.
IKEA has changed from being a product-based company to positioning it as a company with a value positioning.
IKEA Mission Statement
‘to offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them‘.
IKEA Vision Statement
“To create a better everyday life for the many people”
“Affordable solutions for better living”.
Competitive Advantage – IKEA Marketing Strategy
Collaboration with designers from all over the globe and testing their ideas to cater to the increasing furniture needs of the home is among the major advantages that Ikea can offer over other companies in the market.
The wide range of creatively designed, eco-friendly, and reasonably priced furniture at an affordable cost will be the primary focus of the business.
IKEA has gained respect in its community of customers it serves as well as for the employees that are employed by them, which has resulted in positive reputations and has assisted the company to increase its part of its customers’ wallets of customers.
Strategic partnership over the long term throughout the supply chain has assisted the company to manufacture and delivering items in time.
BCG Matrix – IKEA Marketing Strategy
IKEA furniture and home furnishings in developed countries are a hit, whereas in developing countries it’s the problem due to the lack of awareness and attitude of the customers toward local companies.
Distribution Strategy – IKEA Marketing Strategy
IKEA cooperates with supply chain players like manufacturers, designers as well as product developers, and stores around the world to provide its products accessible to consumers.
They have formed partnerships with 1002+ suppliers across 51 countries that assist to ensure the highest standard of kitchenware and home furnishing and appliances at its 380 stores across the globe.
Brand equity – IKEA Marketing Strategy
Branding is a crucial element in selling your products. Positive reviews as well as CSR-related activities and the empowerment of employees have assisted the business in establishing awareness and spreading its company’s brand even in markets where they aren’t currently.
Its many famous advertisement campaigns, such as “Home is the most important place in the world” or “unboring” and various other television advertisements helped the business to create top-of-the-mind awareness.
Competitive Analysis – IKEA Marketing Strategy
A lot of national and international players are offering an edge against IKEA. Companies such as practicer, TepeHome, Kelebak, EnglishHome, Fabfurnish.com, and much more are operating in both offline and online modes, as IKEA operates only franchised stores which means low costs for infrastructure and high exposure.
Market Analysis – IKEA Marketing Strategy
The industry of home furnishings is facing fierce competition from local retailers and online E-commerce startup startups. The sole factor driving the industry is the innovation in the design and style aspect that is shaping the market demand aspect.
IKEA has both functional and design dominance in the kitchenware and appliances segment in the majority of the markets it operates in.
Customer Analysis – IKEA Marketing Strategy
The customers of IKEA are middle-class customers who seek high-quality home furnishings. They are mostly aged between 20 to 50 years old. They are the ones who prefer modern and fashionable furnishings for their homes.
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