Marketing Analysis of Ikea

Extract

[...] Marketing mix elements Products Ikea's assortment consists of more than 9,500 products, a third of which is renewed every year. These products are sold all over the world and thus meet the highest standards. It sometimes happens that certain products need to be adapted to a country, like the size of the beds in the United States. Ikea's assortment is divided into 10 Business Areas living room, bookcases and hi-fi furniture, bedroom and bathroom, office, lighting, textiles and rugs. In addition, not content to decline its products in four different styles, Ikea tries to create a certain harmony between the products so that they can be linked to each other without aesthetic constraints. [...]

[...] Marketing Analysis of Ikea Ikea's marketing strategy Ikea's success is linked to the fact that the company has played a pioneering and major role in the development of low-cost kit furniture. In order to maintain and above all increase its position in the market, Ikea has developed effective marketing, communication and development strategies that allow it to differentiate itself from its rivals in a market where there is fierce competition. Moreover, Ikea is one of the companies with a strong societal ambition which is one of the company's greatest strengths. [...]

[...] It is experiencing certain difficulties in entering emerging markets such as India or China. For example, it must take local partners in certain markets to occupy them. These partners could take more than 50% of its shares, which would be unacceptable to Ikea. [...]

[...] As for segmentation strategies, it is quite difficult to locate Ikea. Indeed, depending on the point of view used, we can say that it is an adaptation strategy: Ikea has the same product, which comes in different styles. From another point of view, we can also say that Ikea applies a differentiation strategy which consists in having different products for each segment. Indeed, Ikea has developed four major styles that offer the customer the same functionality, but with a different aesthetic, from the most classic to the most contemporary. [...]

[...] The overall number of customers has not increased, but visitors travel less. Whereas previously, they made long journeys without any problem. The density of sales achieved per store has decreased. Ikea stores are not located in the city center. They are located around large cities only. A customer living in a small provincial town has to make long journeys to get there, which increases the cost overall of the purchase. Opportunities E-commerce makes it possible to overcome the problem of "non-proximity", identified in the weaknesses. [...]