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Ikea marketing strategy
An article on the impact of cultural diversity
Ikea marketing strategy
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There are many challenges that faces by the company, first is cultural. The differences of cultural in countries usually , including social structure, religion, language, education and so on. These differences have important implications for marketing strategy. The most important aspect of cultural differences is probably the impact of tradition. As we know difference countries difference language. It make difficult for employee to interact with customers. This is the one way how the owner overcome the challenges in cultural. Besides that, the owner also done a lot of market research in terms of lifestyle, cultural differences, size of products in household and behavior of customers. Second is, the challenges to conquered overseas market. There are many problems and challenges that must emphasized by owner before make decision to open the market to overseas and make the business become globally. First is, our market will competing with more established brands. This is because IKEA is not only one furniture business in world, there are many furniture business that already have biggest market such as Home Depot, Seamens, Sears, B&Q, John Lewis, Argos and many others. Most of the competitors deal in the same merchandise as IKEA. So, the competition to conquered the overseas market are increased. There are many strategies must be taken by the owner to make sure the product also can enter the overseas market. One of their strategies are promotion strategy, pricing strategy, product strategy, and place strategy. There are many differentiation between IKEA and others furniture company based on advertising. Advertisement main as an important role in introduce the product and brand to make sure all customers recognize their product. The... ... middle of paper ... ... a quite standardized approach worldwide. Ikea makes use of big size stores with many showrooms to present their products to the customers that why IKEA stores locate in less-expensive areas. For example, in Japanese, before this IKEA introduced a mega store with 10,000 product lines supported by 2,200 car parking spaces, a child-care area and one of Tokyo’s largest restaurant and the new store attracted a lot of attention and within the first four hours 15,000 people had passed through its doors which is located in Funabashi area. Even though the store locating on the outskirt of the city but it gives actual opportunity for IKEA to build big stores and save on ground rent, thus lowering the actual costs and keeping prices low services, still left space for Ikea to educate their customers and possibly train them to assemble the furniture themselves in the future.
In today's world of consumerism, there is great competition among businesses to sell their product. It goes without saying that in this complex society exists modern technology that has lead to the development of various media platforms. In turn, these various platforms are used by corporations to advertise their product. On that topic, there are various tools of advertising that corporations implement with their choice of media platform to sell their product more effectively. This paper will analyze the advertising tactics that are present in two poster advertisements, both of Lexus vehicles.
Every home, apartment, and dorm room will often require some piece of furniture. One important way to remain competitive in this market is to be competitive with price without sacrificing quality; thereby, maintaining a cost leadership over any competitors. In fact, to become a cost leader would give a firm such as Ikea a competitive cost advantage and add customer value in an efficient and sustainable way over its competitors (Heizer and Render, 2014).
The sources of IKEA’s successful entry into the furniture retail business were IKEA’s low prices and resilience. First, Ingvar Kamprad, the founder of IKEA, began selling furniture in his mail order company. Then he was faced with a social problem and turned it into a business opportunity. Since 1935, furniture prices rose faster than any other retail good at 41%. Kamprad responded by creating a line of furniture priced so that all could afford it. The present furniture cartel attempted to stifle Kamprad’s growth and success. The cartel banned Kamprad from selling directly to the consumer at shows, then managed to persuade the manufacturing cartel to stop supplying Kamprad with furniture. Kamprad responded by supplying elsewhere and now could charge even lower prices. IKEA’s success was due largely to low prices and Kamprad’s ability to capitalize on bad situations.
ForIn the past couple of years, IKEA has been deeply involved with the issues of the environment. In the article, “IKEA’s
IKEA main strategy was to design functional furniture that was easy and inexpensive to build, receive it disassembled at stores, and display it on the show room floor with detailed explanation ticket to abolish traditional salesperson assistance. Staffs were available for enquiries, but the customers could freely select between orders, pick up, transport and assemble their own selections. In fact, this strategy creates a mutual beneficial between Ikea and customer. Ikea
Another example of IKEA’s international strategy in building good relationships with suppliers is in Asia, especially in Vietnam, where IKEA expanded its own supply base. Vietnam manufacturers offers low cost labor force and not expensive raw materials, while IKEA provides the view of creating a long-term, high-volume business relationship, and advice on finding the best according to the price raw materials, setting up and bulding factories, choosing what machines, equipments
IKEA is more than a furniture store they are a company driven by values (IKEA, 2014). The company seeks to make their consumers lives easier by providing them with modern, innovative, inexpensive products which they use to tackle daily home activities. IKEA Group has 298 stores in 26 different countries (IKEA, 2014). The company’s vision is “to create a better everyday life for the many people” (IKEA, 2014, para 1). Using innovative techniques for creating, producing, and marketing their products IKEA can provide consumers with durable products for reason...
When it comes to doing business internationally the decision making is more complex. There are many interactions between each country that need to be addressed. In order for a business to be successful in the international market they need to examine and analyze all the facets of their company. They need
...t and satisfactions. In addition, IKEA’s threats are poor understanding of cultural needs and demands. Economically, IKEA's growth had increased due to their low price furniture. The threats, are IKEA had failures to look into the quality of the product. Technologically, IKEA products able to standardized globally. Perhaps, to maintained IKEA's business they tried to stabilize their business with different angles such as stabilizing political status by maintaining good rapport and follow legalization rules all countries. IKEA has also use good method of approaching all the people and improve the performance of their services and products. Furthermore, the entrepreneurs good in assessing, planning and implementing accordingly in order to face any challenges. IKEA has able to accommodate the actual demand in the market towards new technology and younger generations.
IKEA’s cost effective and unique Scandinavian designs provide its target customers great value. IKEA primarily uses 4 marketing strategies when compares to its competitors in the furniture retain
In a simple way, the retailer needs to create a warm, friendly and an approachable retail space to attract consumers.The visual displays is an imperative element of branding of any store. If the stock is presentable, it is bound to appeal to the shoppers. If the shoppers appreciate the store layout and product, they are likely to spend more time in the store, and in return reward the store with sales. Along with the products for sales, the staff, the décor, the store interiors, the trial rooms arrangement, the lightings and music also form an inclusive elements boosting store sales. (fibre2fashion, 2008)
Each category will be analyzed using IKEA student info website, IKEA group corporate website, resources from University of Phoenix library and articles from magazines. The key questions that the author will address are
International Marketing, at its simplest level, involves the firm making one or more marketing mix decisions across national boundaries (Jobber, 2010). At its most complex level, it involves the firm establishing manufacturing facilities overseas and coordinating marketing strategies across the globe (Jobber, 2010). There are various reasons for going global, some of which are: to find opportunities beyond saturated domestic markets; to seek expansion beyond small, low growth domestic markets; to meet customers’ expectations; to respond to the competitive forces for example the desire to attack an overseas competitor; to act on cost factor for example to gain economies of scale in order to achieve a balanced growth portfolio. The methods of market entry that could be used are indirect exporting (for example, using domestic –based export agents), direct exporting (for example, foreign –based distributors), licensing, joint venture and direct investment. I found this par...
According to Shimp (2007), there are five important factors which determine the purpose of advertisement in terms of marketers’ communication with consumers. He listed these five factors as follows: “(1) informing, (2) influencing, (3) reminding and increasing salience, (4) adding value, and (5) assisting other company efforts.” (p.246). To clarify that, the first most important aspect is informing people which means company needs to enhance the awareness of the consumer about their products by mentioning its advantages and features. Advertising also affect the products in two ways. Firstly, by basic demand, which build consumer desires for old products of the company and secondly, refers to a new brand of the company. In addition, effective advertising can retain consumer’s mind fresh about the image of a brand which develops the trace of the memory where consumers have to choose between two or more products. Moreover, it may change the product quality, create new, well-designed and elegant product and change consumers view towards the product. Lastly, by effective advertising program, company may save money and time as s...
I also found that new product development for international business is more challenging against the competitor. Because product life cycle was found to be shorter in international market due to increase level of competition. Moreover during the assignment work I never knew that cultural issue were to important in international