The paper 'Marketing Strategy for IKEA Based on China and the UK Markets" is a good example of a marketing case study. IKEA is one of the companies that have been able to succeed in the global business scene. The company is the largest furniture retailer with operations in different markets globally. IKEA products include modern style furniture, dé cor products, and pet care and kitchen appliances (Edvardsson & Enquist, 2008). IKEA was established in 1943 in southern Sweden and developed over time to become an international company. The company expansion has been aided by an aggressive marketing campaign.
This has helped the company to enter into global markets in the era of globalisation (Edvardsson & Enquist, 2011). The aim of this report is to analyse the international marketing strategy for IKEA. The report analyses the furniture segment of its products portfolio and looks into the international marketing strategies used in countries such as China and Russia. Marketing Marketing is a very vital process among all business. In modern business, marketing is about meeting and satisfying the customers’ needs. It is a process in which the customer value is created and a strong relationship between the firm and customers is build.
IKEA development of international marketing strategies started aligns time ago (Edvardsson & Enquist, 2011). IKEA business can be traced back from the production concept. This is a concept that claims that consumers will favour products which are affordable and available. This made the company be built around this concept where the products were availed to consumers at a low price. Due to competition and hostility in the market, IKEA embarked on designing their own products and looked for cheap suppliers in other countries.
At the moment, IKEA has been sacrificing quality in order to charge low prices. The company has been working hard to ensure quality assurance at low prices. Due to the rising competition in Poland, IKEA started using the marketing concept. This is through a well-researched market and focusing on consumer needs through integrated marketing. The company also engages in societal marketing through ethics and social responsibility. This is through making collaboration with international bodies such as UNICEF (Edvardsson & Enquist, 2011).
IKEA global marketing strategy is based on a customer-centred approach. Through a customer guided strategy, the company has been able to design a marketing mix which favours global consumers (Edvardsson & Enquist, 2008). IKEA global marketing mix A marketing strategy cannot succeed without an appropriate marketing mix. The marketing mix is a major component of modern marketing. Through the use of the 4Ps, the company is able to come up with a systematic marketing plan. The marketing mix starts with a product strategy. This covers more than the physical goods being sold by the firm.
This is good and service combination that is offered by the organisation. IKEA furniture segment is one of the most successful globally. The company designs its furniture with differing features. IKEA has positioned itself as a seller of affordable price and reasonable quality products (Edvardsson & Enquist, 2011). In order to reduce costs, IKEA wraps its products with environmentally friendly materials. This is a societal marketing concept. In their services, IKEA always encourages their customers to do-it-yourself through they provide technical help where needed (Edvardsson & Enquist, 2011).
Price is the amount of money that is required for a product or service. IKEA occasionally offers discounts and allowances to their customers. There are also efforts to reduce the prices of certain products which are popular with consumers. This makes it possible for consumers to make big orders and enjoy huge discounts. The company benefits from massive sales which allow them to enjoy higher profits. IKEA offers different payment methods to consumers. This emphasizes on the consumer values where convenience is enhanced (Edvardsson & Enquist, 2008).
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