The paper "Company's Positioning in the Market" is a wonderful example of an assignment on marketing. Analyze IKEA’ s positioning in the market. Why has it succeeded in achieving global appeal? IKEA is a Swedish based company ranked among the top 100 of the worldwide brands for 2005 according to Business Week magazine listing. IKEA is listed as the number one brand in both Africa and Europe according to brand channel ranking. Ways in which it has positioned itself in the market Ensuring that the public is aware of the company brand existence, that is they have made their brand awareness greater than the size of the company. IKEA has made sure that its suppliers are located in low-cost nations, where reliable distribution channels are reliable and access are at close proximity in order to cut the overall cost. The company has also ensured that its market is globally integrated allowing the company to design and develop its items in countries where labor supply and materials can be obtained at a lower cost. The company has also used market segmentation aspect whereby, the market for their products is subdivided into smaller numbers of internally homogeneous units. The company has also positioned itself in a way that it is able to ensure that there is specialization in different factors that affect demand and supply such labor, geographical factors, and location. Why it has succeeded in achieving global appeal Vast experience furniture retail market and the cost leadership Brand awareness throughout the world IKEA sells a lifestyle that can be embraced by customers throughout the world Their tastes and values are in line with customer desires The company employs product differentiation due to their vast experience production of various products. Affordable products What are the key features of IKEA’ s store atmosphere?
What role has the atmosphere played in enabling the company to gain a competitive advantage? IKEA stores were built outside urban areas and were isolated from other shops to create a complete and enhanced shopping experience for their customers. Stores were constructed in such a way that they could enthrall the customers. IKEA stores had the same visual appearance all over the world. Blue and yellow stores were 300,000 ft squared in size and stoked about 7000 items. At the entrance, the company had to play facilities for young children and parents could drop their kids in order to shop leisurely.
Stores were circular in shape allowing customers to have a wide view of the store. Their pathways were wide enough giving room for customers to examine different furniture. Role of the atmosphere in enabling the company to gain a competitive advantage Large pathways and aesthetically arranged furniture allowed customers to examine different items. Beautiful and well-designed arrangement enticed customers to buy the company products as their arrangement was exactly as they would look in their homes.