According to Cravens and Piercy (2009), the IKEA brand has become the benchmark for creating global cult followings. The company targets the global middle class and has found regardless of location, the buying habits are similar. Additionally, IKEA has created a shopping experience that seems more like a day trip than a chore, which allows the company to further penetrate the visiting consumer's share of wallet. The most successful aspect of IKEA's quality furniture at cheap prices is its appeal to the segment of the population who do not want to sacrifice style for high prices. The typical target consumer tends to be college student or young adults who typically shop for trendy furniture but have cost in mind as well.
IKEA also focuses on families and various stages of life. With the evolution of a starter family to that of one with their first child so on, the store offers a variety of solutions to meet any budget and any stage of a family. To help with this segment of the market, the IKEA store offers not only in-store child care in most locations but also larger aisles and "room stations" featuring how the various furniture pieces would look together in a specified square footage. This helps families move through the larger store easier and be able to quickly identify what would work best for their family unit. Finally, the IKEA cafeteria offers an economic meal option serving a variety of foods that everyone in the family should be able to find something suitable.
[...] FDM, 24- 27. Retrieved from http://search.proquest.com/docview/200006760?accountid=35812 Lynch, S. (2003, May 28). Demanding strategy IKEA grand opening IKEA often figures out which goods it can sell cheaply, then drums up consumer interest. series: Ikea.0528. Orange County Register. Retrieved from http://search.proquest.com/docview/273636383?accountid=35812 Lynch, S. (2003, May 28). IKEA has demanding strategy for continuing success. Knight Ridder Tribune Business News. [...]
[...] This paper will explore the company's target market and positioning strategy to determine the company's strengths as well as provide recommendations for continued growth in both strategies. Target Market According to Cravens and Piercy (2009), the IKEA brand has become the benchmark for creating global cult followings. The company targets the global middle class and has found regardless of location, the buying habits are similar. Additionally, IKEA has created a shopping experience that seems more like a day trip than a chore, which allows the company to further penetrate the visiting consumer's share of wallet. [...]
[...] (2002). 'The IKEA Saga': How Service Culture Drives Service Strategy. Service Industries Journal, 153-186. GOSSELIN, K. R. (2004, Aug 07). Swedish founder's strategy keeps ikea successful. Daily Press. Retrieved from http://search.proquest.com/docview/343292607?accountid=35812 Lewis, J. (2009). Positioning for success: Three stories. [...]
[...] IKEA's profits remained stable throughout the recession period following 2008 (Chapman, 2012) indicating the branding and positioning strategy as the high value low cost furniture provider will remain profitable in the foreseeable future. As a testament to this fact, IKEA has an aggressive strategy to open at least 10 more stores internationally in the next 10 years, furthering its grip on the international furniture market while increasing its current client base. References Bernard, M. (1992, Oct 03). IKEA using new lines, strategy to woo shoppers. The Ottawa Citizen. Retrieved from http://search.proquest.com/docview/239679648?accountid=35812 Chapman, M. [...]
[...] The firm's focus on low cost high quality furniture became its primary positioning strategic in the 1950's according to Gosselin (2004). To help manage the costs associated with production to market, IKEA introduced an innovative technology for the 1950's: flat packaging. Gosselin (2004) asserts this strategy enabled IKEA to ship more, cut costs on shipping including driver pay and trucking as well as cutting the needed storage space for products. In addition to the cost saves produced by this strategy, consumers are drawn to the low cost strategy not only in price but also in the conveniences associated with the product. [...]
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