IKEA Business 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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Say for example in two IKEA stores in Saudi Arabia and China. According to Lannuzzi (2014) marketing segmentation consists of five criteria, namely; Measurable, Substantial, Accessible, Differentiable and Actionable. 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
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Aside from implementing international market segmentation, cultural is also believed a powerful strategy to be applied along with the marketing mix for the company. For example in Saudi Arabia, with a culture of high regards to the Islamic religion, to adopt knowledge of the culture is a helpful marketing tactic. In addition, is the consideration of the usual extended family context of the Arabs, asserted by Otaibi (2014).

Psychographic and Behavioral Segmentation
Pertaining to lifestyle, social class, consumption behavior and personality, this segmentation is perceived also a main consideration to focus. Marketing segmentation strategy should conform to behavior of consumer’s like with Chinese consumers, who do not prefer to IKEA’s “Do It Yourself” concept in the purchased furniture, instead choose to pay IKEA’s assembly services (Miller, 2004). Same with the Arab consumers in Saudi who not used with the IKEA’s self-service shopping concept (Aal & Eskander, 2010), that become a major complain to the store. Moreover, Chinese apartments usually have balconies and spend more on living room furniture, as the heart of the Chinese homes (Miller,

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