Ikea global marketing strategy pdf

Apr 21, 2019 when youre planning your marketing strategy, you should think outside the typical sales box. Ikeas global strategy is a winning formula marketing week. This paper explores a new dataset of ikea products and catalog prices covering six countries for the time period 19942010. Ikea is one of the leading global retail chains spread across the world.

However, ikea has not achieved its success without being through its fair share of troubles. Apr 19, 2020 the product strategy and mix in ikea marketing strategy can be explained as follows. Its as though someone told them you cant do everything well, and they said oh yeah. Here are just a few of the many many schemes ikea has been cooking up lately. Existing analyses of ikeas marketing strategy are either relatively old. Psychology of pricing is the price ending in 9, referent pricing and price discount. Pdf standardized marketing strategies in retailing. Ikea marketing mix 4ps ikea marketing strategy mba.

Originating from a small village in the south of sweden in 1943, ikea has. May 15, 2016 as a consequence, the global marketing strategy adopted proved to be a failure in the chinese market. Ikea was thus forced to reconsider not only its marketing strategy but also the universality of its business proposition. The ikea marketing team is no stranger to experimentation. These different editions show us that the ikea marketing strategy is adjusted to specific contexts and therefore not typically swedish. Ikea does not spread their typically swedish identity all over the world. Ikea publishes countryspecic catalogs with localcurrency prices guaranteed to hold for 1 year. Shanghai, ikea is expanding in chinese market with an average annual rate of increase a retail store. There were examples of local success but performance was patchy, the company struggled to. Marketing strategy of ikea ikea marketing strategy. Ikeas global marketing strategy free download as word doc. In 2014, the ikea group stores had 716 million visits.

Nov 15, 2018 ikdea mainly targets the middle class. The result was the creation of a global innovation strategy for the brand centred around five common. The author also mentions ikeas three main principles. They make a lot of adjustments in many aspects of their marketing strategies. Ikea arrived in australia in 1975 and first ikea shop opened in sydney. The ikea vision, business idea and market positioning statem ent provide a framework for all ikea marketing communication worldwide. Lastly, the marketing mix and strategies adopted by ikea on how they make use of their 4ps to determine the product strategy for spacesaving furniture and unique designs, place strategy that lacking of presence in a particular country of ikea, price strategy that features in organizing promotional sales discount to induce customer to clear old stocks and the last p refers to the promotion. If your company sells tour packages for senior citizens, this. As with any successful integrated marketing communications plan, ikea will need to implement. Here is a selection of facts and figures that will give you a glimpse into the ikea financial year sep 2018 aug 2019 fy19. With its new indian store about to open, ikea is proving once again that no retailer has put together a global strategy better than the swedish companys. This study attempts to explain a reasonable marketing entry strategy of ikea in china based on the existing.

I have analysis the problems and give recommendations. The ikea concept starts with the idea of providing a range of home furnishing products that are affordable to the many people, not just the few. This analyses the strategies used by ikea to gain competitive advantage in markets outside its original area. It studies international business level strategy and the three international. Ikea marketing strategy from an adaptation and standardization. Why did ikea become so popular on a global mass scale. Ikea shifts marketing strategy to focus on product. A gms does not necessarily cover all countries but it should apply across. Ikeas founder, ingvar kamprad, who died january 27 at the age of 91, leaves behind a legacy that extends beyond his business. Ikea marketingconsumer b ehavior objectives from 2006 to 2007 in u. This allows ikea evangelists to make marketing decisions based on peoples reallife experiences rather than just surveys or data.

The case also details the relationship ikea had with its customers and details the companys promotional strategies in global markets. While excellent product quality and affordable prices can be good for penetrating new markets, the way a brand is marketed decides its fortune in the long term. Market research is the process of assessing the viability of a new product or service through techniques such as surveys, product testing and. When youre planning your marketing strategy, you should think outside the typical sales box. The global furniture retailer benefits from strategic alliances to a maximum extent and the formation of strategic alliances is placed at the core of ikea business strategy. However, it has used unique and innovative methods to market its brand and to grow its market presence and customer base. Companies like practicer, tepehome, kelebak, englishhome, and much more are dealing in online and offline mode while ikea has only franchised stores which mean low infrastructure cost and high visibility. Therefore, a reasonable marketing strategyshould be analyzed to help the expansion of ikea in chinese market.

Ikea is a profitable company and a global leader in the furniture industry. The catalogue looks almost the same everywhere, but has some specific regional or national adjustments. Man3503strategic management ikea case study sharleen suwarissusnd11 sharleen suwaris executive summary the following is an analysis of the ikea case study found in the strategic management text book. As a consequence, the global marketing strategy adopted proved to be a failure in the chinese market. Scale of the task with growth slowing, no new stores opening for 3 years, no plans to hike prices, or to alter an already bountiful range strategy, ikea focused on marketing communications. 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 widerange, artistically designed, ecofriendly and affordable furniture at low cost will always be the driving force for the company. It is achieved by combining function, quality, design and value always with sustainability in mind.

Although you may share iisbv ip content on social media websites, i. From the companys beginning, in 1943, observers of ikea. In the global environment, success rests especially on marketing. It focusses on cost control and efficient operational details. Setting the right service concept makes a great contribution for ikea to enter a unique market place successfully. Low prices constitute the ikea vision, business idea and concept. Ikea competes with various global retail chains as well as local supermarkets. The ikea range consists of approximately 9,500 products. Ikeas international expansion munich personal repec archive.

Fifth, enterprise should decide to set up global marketing organization. Their furniture generally follows a less is more approach, but the ikea marketing strategy is a bit more elaborate. Ikea had to make a number of changes to its marketing strategy in the us. Ikea is a brand that sells furniture all around the world. Ikea is a wellknown global brand of home furnishing products. The case discusses the global marketing strategies of sweden based furniture retailer ikea. Ikea should firstly select the market location in the areas with lower cultural distance and high level of gdp and gdp per capital, and then gradually.

Ikea marketing strategy makes the brand one of the most recognizable in the world. The product strategy and mix in ikea marketing strategy can be explained as follows. Ikeas global marketing strategy linkedin slideshare. Ikeas success comes largely from offering other reasons to come to their store besides the needs to buy a new coffee table. Global marketing strategy resembles an old country song, ive been everywhere. How ikea adapted its strategies to expand and become. Ikea actually sends design experts into peoples homes to listen to their concerns and provide feedback. Ikeas global strategy is a winning formula with its typically swedish product range and rigid philosophy of sameness, ikea is going from strength to strength.

With over 300 stores in 40 countries, ikea is a major international presence in retail housewares and furnishings. They use mediascapes to blend global and cultural aspects in their marketing strategies. It ends with the challenges faced by ikea in foreign. For ikea therefore, it was imperative to devise knowledgeable strategies that would not only ensure efficient development and management of its stores in russia, but also effective marketing activities that would give it competitive advantage in the tough russian market. The research purpose of this thesis is to analyze a reasonable marketing entry strategy of ikea for the furtherexpansion in chinese market. Over the past 50 years it has emerged as one of the most influential drivers of marketing in the uk business community. It is a process or a set of process to obtain the information needed to make a marketing decision. Ikeas unique digital marketing strategy nicholas dessy. Summarizing ikea marketing entry strategy in china is a gradual process. Pdf ikea is often cited as an example of a global retailer which pursues a.

They arent afraid to venture into areas that would at first appear far from their original goal. In the 1990s, the ikea market expanded not only geographically, but in terms of. Ikea makes low cost furniture for household and offices. Ikea shifts marketing strategy to focus on product innovation.

A new goal from ikea global management created a real sense of urgency. But anyone whos ever shopped there has never left without an ikea catalogue. Furnishing the world 20142015 submitted by brian albanese april 26, 2014 executive summary this author has provided an analysis of the ikea case study found in the marketing management textbook. In china, however, the catalogue provided opportunities for. While your goal is to drive sales, there are more ways to do this than simply promoting a product.

This led to the development of an environmental action plan. Ikea and ashley furniture industries, with a view to establishing the kinds of marketing activities they have adopted to establish their. Ikea is facing numbers of problems in their marketing strategies and the study of consumer behavior in their home furnishing products markets. Ikeas global marketing strategy retail prices scribd. In this case, ive studied the internationally known home furnishing retailer, which is ikea the largest furniture retailer in the world. Johansson introduction a global marketing strategy gms is a strategy that encompasses countries from several different regions in the world and aims at coordinating a companys marketing efforts in markets in these countries. Ikeas global marketing strategymarketingcase studycase. Ikea is a privatelyheld, international home products retailer that sells flat pack furniture, accessories, and bathroom. Here is an analysis of the marketing mix of ikea that analyses the four ps in its. Ikeas global marketing strategy 1106 words 123 help me. Ikeas global marketing strategy ikea was founded by ingvar kamprad who was born in 1926 in a small farm called elmtaryd.

The marketing society is a notforprofit organisation owned by its members, with over 2500 senior marketers. Products offered by ikea cover a wide range and the offerings are in the companys marketing mix. Kamprad introduced furniture into the product line in 1947 allen, scott. The report also comprises discussions of ikea marketing strategy, ecosystem and addresses issues of corporate social responsibility.

The new wonders can come out of the blue campaign, created by. In most markets, the company uses its product catalogue as a major marketing tool. Pdf ikea swot analysis, strategy and structure florence. It analyzes the strategies used by ikea to gain competitive advantage in markets outside of its original market. Why ikea succeeds around the world while other retailers. Nov 17, 2019 ikea marketing strategy is based on sophisticated customer research and market research. The proposed strategy is a blend of utilizing global media communication tools with an aim to position ikea within the indian market which has a large consumer base but also posses immense cultural diversity and hence a blend of strategic plan is anticipated to attain the desired results of expanding the operations of ikea, though in a. However, in creating low prices ikea is not willing to sacrifice its principles. One of the reasons why ikea gets successful is because they take advantage of price strategy, especially in consumers psychology. Ikea marketing entry strategy in china jonkoping university. An analysis of ikea and ashley furniture industries marketing activities. Companies that use the global strategy will market the same product, with the same packaging and logos, same ad campaigns, cookiecutter displays and barely transliterated messaging in every market.

Ikea s founder, ingvar kamprad, who died january 27 at the age of 91, leaves behind a legacy that extends beyond his business. Mar 12, 2015 this could be because ikea as a global brand understands the russian market less or deliberately adopts the strategy of not essentially adapting or standardising its products to the russian market but perhaps remain as a brand which offers standard furniture product which should fit into any market see. Below is the pricing strategy in ikea marketing strategy. This could be because ikea as a global brand understands the russian market less or deliberately adopts the strategy of not essentially adapting or standardising its products to the russian market but perhaps remain as a brand which offers standard furniture product which should fit into any market see. Ikea is a swedish company that was set up in 1943 as a furnituremaking company. Ikea marketing entry strategy in china diva portal. Each and every person, idea and solution helps us become more accessible, affordable and sustainable. Ikea is shifing its marketing strategy, moving away from its traditional focus on rooms to instead put the spotlight on product innovation and showcase how the addition of just a few new things can transform the home. Market research is the process of assessing the viability of a new product or service through techniques such as surveys, product testing and focus groups. Ikea marketing strategy is based on sophisticated customer research and market research. Ikea communication strategy in the global environment.

Here is an analysis of the marketing mix of ikea that analyses the four ps in its marketing mix product, place, price and promotion. It illustrates how ikea built a global brand and its localization strategies in markets including the us and china. Therefore, ikea may need to adjust their stp strategies accordingly. China as a country who has themost population on the world is never lack of purchasing power. Apr 30, 2016 ikea arrived in australia in 1975 and first ikea shop opened in sydney.

Marketing excellence can drive breakthrough business results for the short and long. Nov 02, 2019 ikea business strategy is built upon the ikea concept. Ikeas marketing strategies in sweden, the uk and china article pdf available in journal of retailing and consumer services 183. Trying to focus on a few key areas when it comes to the ikea marketing strategy and the breadth of unique campaigns is difficult. Many companies, organisations and people together shape the ikea brand. Behind its global presence and excellent performance is an excellent marketing strategy. Secret behind ikeas pricing strategy t1 2016 mpk732. Since it operates on a global stage, ikea needs a platform that has the power to reach anywhere in the world. The new wonders can come out of the blue campaign, created by mother, kicks off this week. Product, pricing, and passthrough marianne baxter boston university and nber anthony landry federal reserve bank of dallas and the wharton school november 2012 abstract with over 300 stores in 40 countries, ikea is a major international presence in retail housewares and furnishings.