Ikea's Business Strategy: The Marketing Strategy Of IKEA
Introduction
IKEA is a multinational company that was founded in 1943 by Swedish entrepreneur, Ingvar Kamprad. With 290 department stores in 26 countries and still expanding, IKEA is the world´s largest furniture retail chain (Chu et al., 2013). After seven years of negotiations, the company has been allowed to establish 25 stores in India. With an investment of 105 billion rupees or 1.95 billion dollars, this expansion will be the largest since the country amended a law that only allowed foreign companies to own only up to 51 % in single brand retail venture (Roy, 2013a). This emerge could bring both challenges and opportunity as IKEA strive to enter one of the most sought after markets today.
With a population of 1,237 billion, 42% of the population living on a little more than one dollar a day, and the third largest economy in purchasing power parity (PPP), India has a lot of potential (Banerji & Shah, 2012). Although IKEA has been approved, it won 't be for another four to five years before the company opens its first store (Roy, 2013b). The next few years will be a critical stage in the Ikea´s strategy in regards to this new market. In this essay we will focus on the company 's segment targeting and marketing as well as IKEA`s policies in respect to the environment and their corporate social responsibility (CSR).
Customer segment targeting
One of the main problems with IKEA when establishing in China was that its prices, considered low in Europe and North America, were
John Lewis Case Study
959 Words | 4 PagesThis EMA will be looking at John Lewis Partnership (JLP); how the JLP have been affected by global and international retailing, sustainability and ethics, and technology and retailing. I will be making three recommendations that JLP might take to ensure their long-term success. I have chosen the John Lewis Partnership (JLP), as I believe it is an interesting retailer to explore. The 84,000 permanent staff who work for John Lewis are partners, not employees. John Lewis, (2018)
Marketing Case Study: Sephora
1367 Words | 6 PagesIntroduction Sephora was first founded in Paris 1969 by Dominique Mandonnaud who made a daring change to the way perfume and cosmetics were sold, letting the consumers try before purchasing. Instead of having sales representatives at the counter, Sephora had beauty advisors stationed at the counters to offer advice and ideas to each individual. Over the years Sephora has grown mightily, boasting over 2000 stores worldwide and employing an estimated number of 25,000 employees. To uphold the top spot in the market, Sephora has constantly rolled out new products into their stores with outstanding innovations, making it hard for their competitors to follow.
Why Is Trader Joe's A Good Retailer For International Expansion
3328 Words | 14 PagesIntroduction As the world we live in today continues to flatten, new channels begin to emerge across the globe. The technological age that we live in today has forever changed they way retailing functions, creating new opportunities for international success. However, the thought of internationalization can be daunting for many retailers, especially due the large history of retailers who have expanded internationally and then failed. Although this type of expansion can be overwhelming, if done properly, the new retail format can generate a great deal of success for the retailer.
Marketing Strategy: Trader Joe's Business Strategy
1120 Words | 5 PagesFor the business-level, Trader Joe’s adopted a differentiation focus strategy. According to our textbook with this strategy, Trader Joe’s seeks to differentiate in its target market. They rely on providing better service than broad-based competitors. Specifically, they focus on the special needs of the buyer in other segments (Dess, Page 159). Joe’s differentiates its self from other grocers by providing a unique shopping experience fortified with their private label goods and great service from their crew members.
Pest Analysis Of Argos
2674 Words | 11 PagesArgos is large retail company that acquires 170 types of products within. Argos have made the change in the online business by giving opportunity to their customer to buy and pay through online. Argos now have been planning to enter Indian market through their furniture product. A critical analysis on the micro and macro environment will be done on this company with marketing planning and possible risk analysis. 2 Environment Analysis for Argos 2.1 Macro Environmental Analysis
Business Analysis: Strategic Analysis Of Zara
2467 Words | 10 PagesSTRATEGIC ANALYSIS OF ZARA Name of Student: Student’s ID INTRODUCTION Zara was found in 1975 by Amancio Ortega and Rosalia Mera. It is Spanish clothing and accessories retailer. Zara is the biggest and most internationalized of the six retailers that Inditex claims, that is, Zara, Massimo Dutti, Pull & Bear, Bershka, Stradivarius, and Oysho. Zara at present has 1,751 stores around the world.
Maxis Marketing Strategy
1706 Words | 7 Pages2.0 Introduction Starting with branched out from Binariang GSM Sdn Bhd as a subsidiary, Maxis Communiations Berhad (Maxis) is a service provider company for telecommunications and internet technology in Malaysia. It was begun in 1995 where the company used the dialling prefix identifier of ‘012’, ‘014’ and ‘017’. The company offered 900 and 1800 MHz Global System for Mobile Communications (GSM) band. After that, the company uses the 2100 MHz Universal Mobile Telecommunications System (UMTS) band in July 2005. Besides, Maxis was the first to introduce 3G services in this country.
Forever 21 Pest Analysis
901 Words | 4 PagesIntroduction Forever 21 is a clothing brand that is based in many countries. Most people would be very familiar with the brand as it caters to them in terms of a fashion retailer. The country that will be in this report would be in Singapore and the purpose of the report is to perform an environmental analysis on a company. The structure would be an introduction, followed by company background, country background, PESTEL analysis, porter’s 5 forces, strategic recommendations and conclusion.
Price Discrimination In Hotel Industry
777 Words | 4 PagesIn the case of hotels, suppliers create different consumer segments, we can relate to them as lower-end consumers, and higher-end consumers. Obviously, hotels cannot set the price that higher-end consumers are willing to pay, because all lower-end consumers will not be able to afford the good. Inversely, if hotels set the price that lower-end consumers are willing to pay, higher-end consumers gain huge consumer surplus, thus lowering the profit for the suppliers. In order to take the consumer surplus, hotels keep lower prices for some rooms in order to target lower-end consumers and offer some higher quality rooms (for example presidential suits) to target higher-end consumers. The difference in revenues providing different rooms and the same ones is seen below.
Burberry Brand Positioning Strategy
788 Words | 4 PagesBurberry is a global luxury brand that has a unique democratic positioning within the luxury arena. This internationally recognized brand positioned itself with its luxury and functionality in the minds of consumers. Its positioning method has been consistent throughout the life of the Burberry brand and is a primary driver in propelling Burberry into its current market position (“Burberrys Market Position And Its Competitors Marketing Essay,” 2015). Burberry provides a great depth and wide range of product line. Burberry has widened its scope with variety of products.
Ikea Supply Chain Analysis
2051 Words | 9 PagesIt demonstrates how IKEA utilizes an intricate system of distribution to ensure timely delivery of products and maintain top customer satisfaction levels. It will also show the various strategic fits of IKEA, and the implementation of unique solutions in order to achieve its competitive strategy. Towards the end, process improvements are also suggested to facilitate
Intercontinental Hotel Marketing Strategy
1794 Words | 8 PagesIntercontinental Hotels is using the market differentiation strategy in segmenting its market into appropriate market divisions based on characteristics of the varying needs and characteristics of the target markets. The company has more than 3500 hotels in over 100 countries with around 535000 guest rooms. It has established a substantial customer base with over 120million customers whose preferences vary based on price and quality expectations. The Intercontinental group is made up of many brands such as the Intercontinental Hotels and Resorts, Holiday Inn Garden Court, Crown Plaza Hotels & Resorts, SunSpree, Holiday Inn, Staybridge Suites, Holiday Inn Family Suites Resort, Holiday Inn Express, Holiday Inn Select, Holiday Inn, and Candlewood
Marketing Case Study: Hindustan Unilever
2155 Words | 9 PagesCASE STUDY HINDUSTAN UNILEVER- TRANSFORMING A BRAND INTO A SOCIALLY RESPONSIBLE LEADER. 6/30/2015 Amity International Business School Aditya Agarwal A1802014167 Faculty Guide- Dr. Kokil Jain Industry Guide-
Push And Pull Strategy In IKEA
1059 Words | 5 PagesIkeas supply chain is highly efficient in terms of the way its sells its goods. The stages of IKEA’s supply chain are the supplier, manufacturer, distribution centre, retailer and the customer. Ikea has over 1400 global suppliers with China and Poland being the largest market and 42 distribution centre. Despite the fact that Ikea has long lasting relationship with its supplier it has ownership of all their products which allows them to easily change a non performing supplier. IKEA retailers shops also serve as their warehouse for their products.
Reflection On Strategic Marketing
917 Words | 4 PagesStrategic marketing is a broad and practical subject which included the concept of marketing subjects of previous semesters such as business marketing. The study of this subject has contributed to marketing knowledge in many ways, as well as it has strengthened my skills in application of marketing concepts. My knowledge was increased that I was able to develop a complete strategic marketing plan of not only on the part of marketing analysis or strategy of a product or service, but also the whole corporate plan. My skills and capabilities that were developed and integrated during lectures and tutorials include the analytical skills, coordination skills, presentation skills, organization skills, etc.
More about Ikea's Business Strategy: The Marketing Strategy Of IKEA
John Lewis Case Study
959 Words | 4 PagesMarketing Case Study: Sephora
1367 Words | 6 PagesWhy Is Trader Joe's A Good Retailer For International Expansion
3328 Words | 14 PagesMarketing Strategy: Trader Joe's Business Strategy
1120 Words | 5 PagesPest Analysis Of Argos
2674 Words | 11 PagesBusiness Analysis: Strategic Analysis Of Zara
2467 Words | 10 PagesMaxis Marketing Strategy
1706 Words | 7 PagesForever 21 Pest Analysis
901 Words | 4 PagesPrice Discrimination In Hotel Industry
777 Words | 4 PagesBurberry Brand Positioning Strategy
788 Words | 4 PagesIkea Supply Chain Analysis
2051 Words | 9 PagesIntercontinental Hotel Marketing Strategy
1794 Words | 8 PagesMarketing Case Study: Hindustan Unilever
2155 Words | 9 PagesPush And Pull Strategy In IKEA
1059 Words | 5 PagesReflection On Strategic Marketing
917 Words | 4 Pages