IKEA Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of IKEA analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on IKEA marketing mix, help the brand succeed in the market. Let us start the IKEA Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
IKEA Product Strategy:
The product strategy and mix in IKEA marketing strategy can be explained as follows:
IKEA is one of the leading global retail chains spread across the world. Products offered by IKEA cover a wide range and the offerings are in the company’s marketing mix. IKEA offerings can be broadly divided into outdoor furniture, baby and children’s products, eating, bathroom stage, desks, mirrors, beds and mattresses, chairs, cooking, clothes storage, decoration, leisure and safety products. Apart from this IKEA also keeps kitchen cabinets and appliances, lightning, small storage, sofas and armchairs, storage furniture, Swedish food, tables, textiles and rugs, tools and hardware, TV and media furniture and wireless charging.
All these give an overview of all the products and goods which are available at IKEA stores. As of 2021, Ikea offers over 12000 products in over 50 countries.
Image: pixabay
IKEA Price/Pricing Strategy:
Below is the pricing strategy in IKEA marketing strategy:
IKEA competes with various global retail chains as well as local supermarkets. Low prices constitute the IKEA vision, business idea and concept.
IKEA makes low cost furniture for household and offices. It focusses on cost control and efficient operational details. This allowed IKEA to lower its prices over the decade to 2010 during a period of global expansion. IKEA allows not only lower prices but also freebies at the IKEA restaurant form Monday to Saturday.
Read more about IKEA
IKEA Place & Distribution Strategy:
Following is the distribution strategy in the IKEA marketing mix:
IKEA has got an excellent place and distribution strategy as a part of its marketing mix. Distribution is based on the following principles. IKEA has a global distribution network i.e. a large distribution network. It has huge volumes on manufacturing side and flat packages i.e. it is useful in increasing value to weight ratio. IKEA has over 25+ distribution centres and has business operations in more than 50 countries. Over 12,500 products are sold at more than 350 IKEA stores worldwide. Procuring materials in proximity with supply chain to reduce transport costs and using more of ocean transport than road transports by building DCs in proximity to ports are some strategies adopted by IKEA. Products are transferred from suppliers to IKEA stores directly. This reduces handling costs, reduces transport and lowers the carbon footprint. Also.
warehouses are attached to retail stores.
IKEA Promotion & Advertising Strategy:
The promotional and advertising strategy in the IKEA marketing strategy is as follows:
IKEA focuses a lot on its marketing activities. IKEA uses promotion tools like TV, print, online ads, billboards etc in its marketing mix. IKEA launched a UK-wide advertising campaign which was named home is the most important place and used signs like "Not for Sale" written on them as a part of the campaign. A subway train imitating IKEA in style was featured in Novosibirsk. An advertising campaign was launched to gauge whether men or women are worse at home. Campaign starts advertising a shot in live audience, starring four stand-up comedians, two men and two women, debating which gender is worse. The idea behind the campaign is that a social clutter leads to a conflict which can be avoided according to IKEA. Meanwhile, online advertisements promoted IKEA products demonstrating the problems faced by people, and offering solutions.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of IKEA.
People:
IKEA gives utmost importance to the people, ie its customers and employees. Employees at IKEA believe in the idea that they are straightforward people with passion for home furnishing. The employee culture is based on togetherness, enthusiasm and fun. Customer satisfaction is at the core of the values. There are 116000 employees in retail, 18000 in supply 21000 in production as of 2015.It does not discriminate on the basis of race, ethnicity and religion. In 2016 the employee base of IKEA has increased to 183,000.
Process:
IKEA has several business processes in place. It has 44 production units scattered across 10+ countries. IKEA makes its own wood by owning sawmills and produces high quality furniture. It has in house production facility with highly developed technologies. It follows the clean environment slogan. IKEA has the most unique supply chain and inventory management techniques. Its designs are differentiated in terms of price. It almost buys products from 1800 suppliers. IKEA itself gives a code of conduct to manufacturers that states rules and guidelines which help them reduce their checks for environment friendliness. Further the finished product is delivered In pieces to be assembled by customers which saves cost.
Physical Evidence:
IKEA has 350+ stores in close to 50 countries. Physical evidence for IKEA is its huge store layouts which provide more than just a shopping experience. It has specific path layouts once you enter the store and guide arrows which help you to your desired item. Stores are also equipped with restaurants for refreshments and also baby handling areas for mothers. Also, it provides large parking space as most of the stores are located outside the cities in large areas. Most of the stores have an area at the end where used, returned, damaged products are sold under huge discounts. One of the largest stores are located in Sydney and Montreal. This covers the entire IKEA marketing mix.
About IKEA:
IKEA was founded by Ingvar Kampard in 1943 and its headquarters are in Sweden. It Provides its customers low cost functional furniture which is easy to assemble. The main financial principle of IKEA is to grow using own resources.
There are IKEA stores in more more than 30 countries. All the stores are operated under Inter Ikea Systems B.V.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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