IKEA Market Segmentation Analysis

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IKEA for everyone
IKEA is known as the largest and an international Swedish furniture retail provider (UK Essays, 2013) that vision “to create a better everyday life for the many people,” (IKEA, 2014). IKEA mainly provide all sorts of home furniture and appliances. The company operates in 27 countries with 315 stores, and home furnishing supplier in 51 countries (IKEA Group, 2014) offering the markets quality furniture at affordable prices.
IKEA established a name in the market with their trademark of providing and making home furniture solutions that is just right for “everyone” where it operates, expressed blatantly in their so called “Democratic Design” business concept as solution for home problems by implementing three criteria; good
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Segmentation can also be done through variables; Geographic, Demographic, Psychographic and Behavioral Segmentation, or segmenting international markets (Dudovsky, 2012). Kotler (1999) was cited in Dudovsky (2012) suggesting that international market can also be segmented by geographic location, grouping of countries or sub-cultural segmentation.
In this paper, the objective is to explain the difference of market segmentation criteria to be considered in two IKEA stores from different countries. I nominate to discuss IKEA in CHINA and IKEA in Saudi Arabia.
China and Saudi Arabia basically have a very obvious end consumer distinction. In this case, I will propose a market division criteria based on Psychographic and Behavioral, and Cultural segmentation for the two countries of review where IKEA operates.
Psychographic and Behavioral segmentation refer to the sub-dividing of international market base on nationals’ social class, lifestyle, personality, consumer attitude, and product impact (Dudovsky,
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The two criteria were assumed interrelated and so it can be used together in the dimensions for planting marketing segmentation plan of the company. I conclude that although IKEA implements a unified product strategy in all outlets worldwide, to customize in a way of adopting the particular local market needs is a significant action. Communication matters rightfully to introduce IKEA shopping concept and product strategy effectively to be adopted by the nationals.

Part of the marketing strategy activities, are the market segmentation, market target and positioning. Following with the segmentation and identifying a clear market segmentation criteria, is the market targeting strategy. IKEA, as observed has a broad target market given its home solution products. It is assumed to attract global consumers in all ages. However, with its affordable product criteria, that makes sense to IKEA’s target market in middle class who prefers for low price products.
And since, IKEA is considered to follow an international market segmentation operating worldwide; a differentiated marketing strategy of target option is seen applicable for the company. To target customers, it said to have three types of strategies; the undifferentiated marketing, differentiated marketing and concentrated marketing ([Market Targeting Options],

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