Ikea report Essay

Executive summaryThis report describes the grandness of grocery research, the purpose commercialize and market segmentation. How a caper send away spend a situation analysis and SWOT to provide a direction for Ikea. This examines how types of customers and buyer behaviour will impact marketing strategies. Evaluates as a key marketing strategy for Ikea as a showcase study. Analyses marketing strategies only ift end be applyd to achieve marketing objectives and describes approximately ethical and legal things that a product line moldiness manage and resolve to while marketing. Business OverviewIkea is a well(p)-known global trademark with hundreds of barge ins across the world. In order to improve performance, it must assess its external and agonistical environment. This will reveal the key opportunities it can take advantage of and the threats it must deal with. Ikea responds to both internal and external issues in a proactive and dynamic manner by using its strengt hs and reducing its weaknesses. Through this, Ikea is fitting to bring the potent growth it needs to retain a unvoiced identity in the market. Ikeas passion combines programme, low harms, economical use of resources, and responsibility for people and the environment. The companys products, processes and systems all demonstrate its environmental stance. For example, clever use of pick outaging and design means to a greater extent items can fit into a crate, which means fewer delivery journeys. This in move around reduces Ikeas carbon footprint. Ikea believes that there is no compromise between doing devout business and being a good business. It aims to go beyond positiveness and reputation. Ikea is intent on becoming a leading example in developing a sustainable business. This will create a meliorate everyday life for its customers. securities industry researchWhen Ikea conducts market research it is burning(prenominal) that the business first determines its training nee ds. The business should have roughly head about the type of knowledge it is looking for. It could vary from customer profiles or brand awareness through to attitudes towards certain new products. Once its information needs are established, the business can determine the most allow for research method. This is primarily d wholeness by IKEA theme although individual stores would use sales reports in order togather data about the types of customers and customary products that are exceptional to the area or store. The Target MarketThe target market is a group of customers for whom a particular product has been developed. The business hopes that these people will buy the product when it is made available in the marketplace. Some products appeal to all consumers, while others have limited appeal. A business needs to understand the nature of consumer markets. The three types of markets Ikea appeals to are Consumer, locoweed and niche. The products in Ikea produce are universal to a ll and with their compressed pack design they fall into the niche market. Ikea focuses on meeting the customer demands and delicious their needs. Ikeas main focus is that of the selling orientation. Market segmentationMarket segmentation is the process of breaking down a total market into small markets It allows businesses to focus their efforts and resources on a section of the market. By commission on a particular target group, It would consider the features that consumers of this target group would be looking for in a product, the appropriate promotional strategies to generate awareness of and sustain interest in the product, and the most suitable determine policies and distribution channels. Market segmentation and product/service differentiation,Demographic segmentation, dividing consumers into groups based on selected demographics, so that different groups can be treated deferent perspective analysis and SWOTSituation analysis is the way in which a business can examine th e current position within the market and provides them with direction for their marketing campaign. SWOT is the first stage of planning and looks at the Strengths, Weaknesses, Opportunities and Threats involved in a project or business venture. For example, one of Ikeas key strengths is its strategic aim to use no to a greater extent material than necessary in the production of each item. One particular table, the NORDEN table, uses k nonty birch wood. The knots in this wood usually mean it is spurned by other retailers and manufacturers as unsuitable for use. However, IKEA has made the knots part of its design feature. Types of customers.psychographic segmentation, this is based on lifestyle and personality, values and interest, Ikea does not divide the store into sections but you have to walk through the whole store in the first place you can exit, this is a strategy to sell more products. The types of customers vary from people, households, firms, educational institutions, gove rnment, clubs and societies, religious organisations. The customers that account for most of Ikeas sale is the bold customer.Ikea is a business that is not aiming towards a purchase occasion but the social function rate of their product, being household items they aim for their products to last well and lick to a good feeling standard. Ikea has a good user truth with a wide range of buyers from the types of customers. Consumers see how affordable Ikea products are and how well they last, as long as they dont mind position the product together. The buying process would not be different from Ikea customers but the free yearly catalogue gives purchasers time to plan a light to Ikea as the Ikea stores are not usually located conveniently due(p) to the large floor space required to house their product.Ikea stores are not usually located outside the inner metropolitan area for this reason. there are psychological, sociocultural, economic and government reasons why people shop or dont shop are Psychological segmentationBranding.Ikea is rank 41 in the worlds most valuable brands. The brand call in alone is worth 8 million. The brand image for Ikea stands for affordable, modern design and its flat pack product range that gives Ikea its identity. The brand name or logo essentially provides a message to the people of the quality and value associated with that product, when they see it they immediately form judgements on the quality, a strong brand name is essentially enhancing the relationship between a business and its customer.Marketing and strategiesProductIkeas products are tangible, Product matters because it is the reason that customers go to Ikea in the first place. Ikea has the market in flat pack furniture and the unique design attracts customers and meets their needs, this product could include the prestige of owning the product which would alike relate to psychological factors. PlacePlace matters because it is how the customers access the product. The Ikea experience is more than just products, it is a retail concept laid out in such a way that families, singles, couples etc. can enjoy shop for furniture. A day at Ikea has been described as more of an digression than a shopping trip. PricePrice matters because it is at the heart of the Ikea concept. flavorless pack furniture cannot compete on price with upmarket, fully assembled pieces, so it is essential that Ikea continues to keep its prices below the opposition. Price including pricing methods, market and competition based, Competition based pricing is the commonly used pricing strategy. progressionPromotion is the most public aspect of marketing and it matters because it helps to drive customers into the stores in order to buy furniture.Ethical and legal.Ikea is recognised as a business that is both legally and ethically a responsible business that looks beyond profit and develops a positive workforce with these practices, advertisement is very efficacious in devel oping the wrong or wright idea and misleading advertising is bad ethics. Developing products in 3rd world country is considered wrong because they get payed well below minimum wage. Ikea produces environmentally responsible products, the flat pack design would be argued that it minimizes wastage and the cardboard would be environmentally friendly. The role of consumer law deals withDeceptive and misleading advertising which could be false information about products features and content, false special offers which dont exist andoverstating the benefits that a product will provide to the consumer. Price discrimination, giving preference to some retail stores by providing them with lower prices than is offered to the competitors of those retailers. The competitor and consumer act aims to discourage the price discrimination in the business environment. Implied conditions and warranties is a great way for a business to ensure the product will last at least(prenominal) the warrantee tim e, this attracts customers and the consumer expects the business to fulfill their legal obligation to provide a refund or replacement or the product if there is a manufacturing problem within the warranted date, regardless the business by law. Resale price maintenance, this aims to equaliser the profit maximization of a business, Ikea ensures that the quality of a product in one country doesnt differ from another. A manufacturer cannot scorn to sell the goods to a retailor if the retailor intends to sell the product for below the recommended price.