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Building a global brand is not an easy task. While excellent product quality and affordable prices can be good for penetrating new markets, the way a brand is marketed decides its fortune in the long term.
In the global environment, success rests especially on marketing. IKEA is a well-known global brand of home furnishing products. Behind its global presence and excellent performance is an excellent marketing strategy. However, IKEA has not achieved its success without being through its fair share of troubles.
Cultural sensitivity has grown important in the 21st century. The one size fits all strategy will not work any more. IKEA too had to face cultural hurdles while trying to penetrate new markets.
Today, it is a highly recognized brand and behind it is the power of marketing. The Swedish brand of furniture sells a wide range of home furnishing products. Its affordably priced but good quality products have grown popular in several countries globally. This is an analysis of the marketing strategies and techniques IKEA utilized to achieve global success.
Store design and location: IKEA sells more than products from its stores. Traditionally, the IKEA stores have been like warehouses located outside the town where customers can shop in peace. However, rising urbanization and e-commerce have made IKEA experiment with new formats.
It introduced pick up points, small stores and inside the town stores. The pick-up points are for the online customers from where they can pick-up the products they ordered online. The smaller stores are built in towns where a full size store may not be necessary.
These stores showcase a limited range of products. The third type, full size inside the town stores with transporter bikes are being opened at city centers in the large towns. However, IKEA has designed its stores in a manner to provide its customers with an unforgettable experience.
There are maps to guide you through the labyrinthine stores so no customer feels lost. Both these factors have grown important to marketing a retail brand successfully in the 21st century.
They can grab ideas from the models at IKEA store. There is also space for you to drop your kids or have lunch if you are feeling hungry. The IKEA cafeteria serves cheap yet good quality food. Such an experience also creates a lot of favorable buzz for IKEA.
The target market of IKEA is mainly the global middle class. It sells good quality and durable but affordable home furnishing products. The middle class consumers generally look for products that are good in terms of design and quality and come for low prices.
It is also a reason behind the increasing presence and popularity of IKEA globally. The consumer demographics are also changing globally and the focus is now on the millenials.
However, IKEA sells contemporary and stylish designs that are a big favorite among the millennial customers.The advertising and marketing peeps at IKEA took the idea a step further and equipped each of the life-sized cutouts of the dogs with a QR code that, when scanned, .
IKEA success came from their marketing strategy, good customer service, pricing, style and functionality, store location and wide variety of products. Their marketing strategy is really commendable as they have carefully thought about how to sell their products effectively.
BCG Matrix in the Marketing strategy of IKEA – IKEA home furnishing solutions in the developed nations are stars whereas in the developing nations it is the question mark due the low awareness level and inclination of customers towards local players.
Ikea is shifing its marketing strategy, moving away from its traditional focus on rooms to instead put the spotlight on product innovation and showcase how the addition of just a .
This is the Marketing Strategy of IKEA shows how the brand has transformed itself from being a product based company to positioning.
Place. The IKEA group is an International Marketing business, which sells furniture and accessories in Europe, North America, Asia and Australia..
IKEA’s main business relates to its retail stores. Many of these stores are in out-of-town locations and do not benefit from the footfall of primary and secondary locations.
The stores themselves are very large.