ipl-logo

IKEA Market Segmentation Analysis

807 Words4 Pages

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 …show more content…

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, …show more content…

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],

Show More
Related

  • United Airlines Market Segmentation

    1027 Words  | 5 Pages

    Answer: (a): Market segmentation is the first step in defining and selecting a target market to pursue and penetrate. Basically, market segmentation is the process of splitting up an overall market into two or more groups/classes of consumers. Each group of consumers is called as a market segment. Each group (or market segment) should be similar in terms of certain characteristics or product/ service needs. In business world, market segmentation is considered to be a most important tool in enabling marketers to better meet customer needs and requirements.

    Read More

  • Nordstrom Market Segmentation

    551 Words  | 3 Pages

    Retail positioning aims to provide competitive edge by differentiating the retailer from its competition. This differentiation can be achieved through retail offerings that appeal to, and are easily identifiable to by its target market. This process is done by selecting market segmentations and matching them to the retail offerings as precisely as possible. It is vital to understand the consumers needs and wants in order to make a proper match and be distinguished from other retailers. Nordstrom distinguishes itself from other retailers by positioning itself as an upscale fashion store with outstanding customer service, and its multichannel approach.

    Read More

  • Honda Market Segmentation

    797 Words  | 4 Pages

    Common definition market, which means economic that’s approach customers in terms of people to find a goods or services they want, while segmentation is processes dividing specific part into many parts of some things. Market segmentation is mean an organization target its product, services, or ideas only to specific groups of consumers rather than to everybody, even if it means that other consumers who don’t belong to this target market aren’t attracted to it, for example is ASIMO might be suitable for housewife to do household works. Honda company has been targeted three major part of market segmentation that is include demographic, behavioral, and psychographic segmentation. Demographic segmentation is based on age, income, family size and socio- economic status, etc.

    Read More

  • The Advantages And Disadvantages Of Ikea's International Strategy

    1026 Words  | 5 Pages

    Global strategy is an international strategy that implements by a company which they doing their business in different countries. Internationalization is a process for IKEA expand its business and it was quite important because through the internationalization process, IKEA was able to gain a broader area of marketplace to sales their products, which will lead to profit and revenue increased and new market places existed mean new opportunity for IKEA to improve their product in order to meet the customers’ needs. The first reason that IKEA should go to international level is because the Swedish market is small and no enough for IKEA to expand itself. This is important for IKEA because the small market mean low opportunity, lower profit and

    Read More

  • Moccona Coffee Case Study

    1044 Words  | 5 Pages

    Introduction Every business organization is using a marketing concept which is used as a tool to identify customer’s needs. And further try to meet them by making right decisions in line with customer’s needs. In line with meeting customer’s needs the ultimate goal of every business is to gain profit. That’s why they make use of different marketing strategies to meet not only the need of the customer but as well as the goal of the company. We know for a fact that marketing strategies comprises everything from developing a product, to introducing it to the market, to selling and improving it as the need of the target market changes.

    Read More

  • Apple's Target Market Analysis

    1625 Words  | 7 Pages

    Segmentation, Targeting and positioning, also known as STP are an essential part in marketing today. This model is important for generating marketing communication strategies and it aids the marketers to prioritize schemes and deliver personalized and pertinent messages to diverse audiences. This approach is audience oriented rather than product focused in terms of communication, which results in conveying appropriate messages to the members who are more commercially appealing. Segmentation benefits the managers in finding out the area on which they have to concentrate on in terms of geography, demographics, social factors or behaviors.

    Read More

  • Market Segmentation Of Apple

    1346 Words  | 6 Pages

    a. The product and production orientation of marketing asserted that a company should first develop product and then they should scan the market for sale opportunities. Now days in the modern world the market have changes. The process orientation of marketing requires a company to first to analyse the market, understand customer requirement and then develop products. In todays world, the modern marketing is based on the reverse process, in which the first the customer needs and demands are identified. The subsequent market program of the firm depends on how the market identifies the potential customer, profiles them, target them and positions his offering in the minds of customer.

    Read More

  • Marketing Segmentation Of Mercedes Benz

    916 Words  | 4 Pages

    Market are segmented in order to make it easier for businesses to target these segments according to the features and habits they exhibit. These segments must be definable, specific, profitable, and is has room to grow. The following outlines the segmentation for the market of Mercedes Benz broken down into demographic, behavioral and psychographic segmentation. Demographic Segmentation: Markets can be segmented by geography where the business would market its offering towards individuals living in a certain area.

    Read More

  • Marriott Organizational Structure

    846 Words  | 4 Pages

    Differentiation Strategy: - It includes developing new products & services which satisfies customer needs, they offer much more values than their competitors. They differentiated the segment according to the customers. They provide multiple customer segments which includes moderately priced to premium priced customers for example: 1. Bulgaria resorts & hotels (The Ritz Carlton) - Target segment:-Luxury guest. 2.

    Read More

  • Ikea Supply Chain Analysis

    2051 Words  | 9 Pages

    Founded in Sweden at 1943 by Ingvar Kamprad, IKEA is a value-driven company with the vision “To create a better everyday life for the many people”. As of January 2009, the company became the world’s largest furniture designer and retailer. Currently, IKEA owns and operates 351 stores in 43 countries across Asia, Europe, North America and Australia. The company’s product range consists of 9,500 home furnishing articles, of which they are known to be well-designed, functional and inexpensive.

    Read More

  • Market Segmentation Of Carrefour

    1304 Words  | 6 Pages

    Carrefour had to segment their customers because they had different needs, behaviors, and preferences; therefore, it was difficult for the company to meet every consumer’s personal characteristics (Wedel and Kamakura 2012, p. 6). Carrefour also had to segment their customers because they needed to come up with a marketing mix that will help the firm meet the needs its customers in their target market. Market segmentation refers to the division of a market into segments that are identifiable and similar. These segments refer to a group of people or organizations that have one or more features in common, which prompts to have same product tastes and needs. According to Wedel and Kamakura (2012, p. 6-7), market segmentation is important because it helps the organization to use their resources efficiently and make better strategic decisions.

    Read More

  • Mcdonald's Market Segmentation

    1402 Words  | 6 Pages

    According to TrackMaven, market segmentation is the process of dividing the market of potential customers into groups, or segments, based on different features. The created segment consists of consumers who will respond to the same marketing strategy and who share the nature of the same interests, needs, or locations. McDonald uses demographic segmentation as their main types of market segmentation. According to Sakshi Natani (2016), McDonald in Malaysia used mainly demographic segmentation, which divided in age, income, family-life cycle and social class.

    Read More

  • Market Segmentation Of Unilever

    761 Words  | 4 Pages

    The process of market segmentation involves the division of a market into groups of smaller size whose needs, behaviour and characteristics are distinct from each other. These smaller groups or 'segments ' may require separate marketing strategies. There are four major market segmentation variables namely behavioural, psychographic, geographic and

    Read More

  • Reflection On Strategic Marketing

    917 Words  | 4 Pages

    First, from the beginning of the classes I was able to design and implement marketing/business strategies in particular areas only. After that, I am able to create long-term and mutually beneficial exchange relationships between an entity and the publics with it interact. Moreover, the strategic marketing analysis & planning process such as internal & external situation assessment, strategy formulation, positioning and marketing mix were taught during lessons in detail that integrated my marketing knowledge. And as a result I also became aware with a range of new issue of marketing management and the marketing tactics in particular that were resulted from the product and branding strategy. I found strategic marketing analysis and planning of this project more challenging than

    Read More

  • Dutch Lady Market Segmentation

    1004 Words  | 5 Pages

    1. MARKAT SEGMENTATION Market segmentation is a strategy that is generally used by a company to identify and define the target customers, and provide the supporting data for the marketing plan elements. There are five types of market segmentation which are demographic segmentation, geographic segmentation, psychographic segmentation, benefits segmentation and volume segmentation. • Demographic Segmentation Demographic segmentation is market segmentation according to age, family size, religion, race, gender, income and education. By using this segmentation, a company can categorize the needs of consumers more easily and target its consumers more accurately because demographics can segmented into several markets.

    Read More

More about IKEA Market Segmentation Analysis

Open Document