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Marketing Case Study Name of the Student Name of the Professor University Date Answer 3 Target market While offering high quality furniture to the customers at easily affordable prices, IKEA focuses on a number of factors in order to segment the target market (IKEA, 2013a)…
The IKEA products are often referred as ‘start up furniture’ which is bought by the consumers for their first home. It is due to this reason that the company focuses on income level, age, education etc while targeting the market segment. The market has been segmented in the following manner: Segment Age Group Annual Income Level Psychology Education 1 18 - 25 >$ 34500 This particular age group has a tendency of being driven by social trends. They generally do not possess much knowledge about ethical trading. High school and College (education) 2 26 - 35 $34500 - $ 68000 This age group has knowledge related to ethical trading and they remain ready to purchase quality products by paying high prices. College and masters level (education) 3 36 - 65 >$ 69000 This age group purchases products in order to represent their self image in the peer group. Educational level does not have any influence on the purchasing behaviour of this particular age group. IKEA mainly targets the young group with lower income level (Business Today, 2013). The affordable price offerings increase the demand of the company’s products in the market. The college students those who belong to the young generation cover wide target market for the company as it mainly consists of those individuals who are planning to purchase furniture for 1st time. Another target segment set by IKEA on the basis of demography is the family life cycle. ...
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