Ikea's Target Market Analysis
IKEA segments its target market according to their demographic segmentation. People in different demographic will have different needs, wants, and demands. IKEA effective segmentation fulfils their targeted market requirements. The market segmentation that IKEA uses are target market age, occupation, income level, and lifestyle. IKEA target young and cost-conscious customers who are usually students or young adult professionals. Their salary ranged between $15000 and $50000, they are most likely budget-conscious families whose lifestyle makes them first-time shoppers of furniture. According to the given SWOT analysis, IKEA’s key competitive advantage is cost leadership. The consumer wants furniture that can give the best quality, innovative feature that matches their taste and affordable. IKEA’s cost leadership competitive advantage gave them a benefit over its competitors because they can offer good quality furniture with a lower price and greater benefits and services to its customers. IKEA able to achieve this competitive advantage by minimising the manufacturing cost and eliminating intermediaries. This can be seen through the use of production concept where IKEA focus on achieving low cost, high production efficiency. This gives IKEA pricing advantage when they product in large quantities they reach the economics of scale. It is …show more content…
They should include these key factor of IKEA in their advertisement. The DIY approach enable customers to customise their furniture the way they wanted. They can choose different accessories that they like and customise their furniture, by doing it yourself customers will have a strong sense of accomplishment. However, their targeted market usually like convenience product and they might not have the time to assemble the furniture themselves. IKEA could introduce some readymade furniture to target a wider range of
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2051 Words | 9 PagesFounded 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.
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1190 Words | 5 PagesThe suppliers may likewise get innovative assistance from IKEA 's organization mechanical base camp all through an assortment of business administrations and to pick up his devotion, which helped in making a relationship of association instead of supplier to client relationship. The late, made exceptional business open doors, empowering IKEA to keep on offering an extensive variety of all around outlined, utilitarian home, outfitting items at sensible costs and that however many individuals as would be prudent can bear the cost of them. Section 5: AC 2.2 – Use information technology to create strategies to develop IKEA’s relationship with its suppliers. AC 2.3: From this point, develop systems to maintain these relationships. There are numerous IT arrangements which are connected by IKEA to create association with their suppliers some are as per the following: Investigate genuine time data about business sector patterns deals and requests.
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