Consumer buying behavior is the process that a consumer engages in making decisions regarding the purchasing of commodities to satisfy their needs and wants. Different consumers have different tastes and preferences of commodities. …
Information on what encompasses a target group is crucial in coming up with ideal market segmentation. Characteristics such as lifestyles, language, climate education background, gender, family size, race, nationality, interest and religion of the target group helps in the segmentation process. The market segment in the target market of IKEA Company is accessible, measurable, profitable and market responsive. The target market is mainly located in urban centers. This has made the company to open most of its outlets in urban centers for easy access. The products are designed to meet the needs of both the middle and wealthy. The market segments of the target market are quantifiable in terms of the estimated population size and the estimated disposable income. Generally, the large size of the market segment and their average disposable incomes promises good returns. The target market has in the past shown some positive response to the products. Penetrating the market space will require communicating to the market segment in a way that corresponds to their relevant needs. Every market segment has distinct characteristics such as lifestyle, fashions, tastes and preferences. Communication based on these characteristics can help to reach out to a wider market base. IKEA Company utilizes catalogues and advertisement through the mass media to penetrate the market segments. The diversified commodities which are of different styles, tastes and fashions are the key to the penetration of the market space. Maintenance and protection of the market space requires the company to constantly review on the customers’ needs. To oversee this, the company has customer success...
It also stands for the competitive prices offered by the price leader. IKEA Company cuts across the diverse cultures of different countries and so the brand represents the meeting point where global tribes that mind the cost and design converge. The shopping premises of the company are similar and share similar architectural designs and interior designs. They are easy to recognize to its distinct yellow and blue coloration. These combinations make the IKEA a strong global brand.
The weakness of the company’s brand is that it is rarely seen and most unknown. The company’s activities are largely concentrated in some countries especially in Europe. The brand is therefore popular and frequently seen within these countries. For the citizens of these countries, it is rarely seen and to most, it is absolutely unknown. This implies that the company has not fully penetrated the target market. There is the potential unexploited market space.
The competitiveness of the brand can be heightened by creating awareness of the brand existence in the unexploited areas. Awareness could effectively be done by use of mass media that reaches most people in a continental level. It can also be done through international trade exhibitions that bring international communities together. Sponsoring international activities such sport can also be opportunities of reaching out potential buyers. ...
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(IKEA Marketing Concept Essay Example | Topics and Well Written Essays - 2000 Words)
“IKEA Marketing Concept Essay Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.net/marketing/83654-ikea-marketing-concept.
With the rapid growth and development of China, especially after 1987, the level of economy and the life quality of Chinese people increased dramatically. When they have enough money for food and cloth, they shift their interests in other aspects, such as furnishing, to make their life more colorful.
II. Competitive Advantages IKEA’s success can be summed up by saying it “provides a one-stop sanctuary for coolness” (BusinessWeek). Specifically, IKEA outlets are not just furniture stores, they are gathering spots where families can have a social outing (Normann & Ramirez).
is of franchise type. Contemporary designs and low prices are the hallmarks of which made IKEA a cult brand globally. Environmental sensitiveness of the company is well recognized by the consumers. The other companies that specialize in Nordic furniture design the in the US, whose prices are comparatively very high are Design Within Reach, Minimalista, Boconcept and Tema.
It currently has 316 stores selling its high quality products. In its pursuit to maintain its position in the market, IKEA intends to maintain its sales and even gain further ground through expansion and possibly through the creation of new products. This marketing plan will serve to assist in such pursuit.
After the war, taking advantage of the clamour for furniture, Swedish furniture manufacturers came to an agreement to artificially inflate prices by as high as 43 per cent, by entering into inter-association contracts between suppliers and retailers. The result was that only well-to-do people who can afford the high prices were able to purchase the beautiful new furniture and household items offered by these establishments (Reichert, 1998, p.2).
It is favorable for sale of goods based on emotions, shortages or indispensable add-ons. Cost based pricing is a pricing strategy based on the cost of producing the given product in the market. The price gets set above the cost of production in order to take consideration of the profits the company wants to accrue.
The author states that in the IKEA Company everyone is involved in ensuring that the company produces the best products available. This means that from management, everyone in the company is motivated to do their best in their department to ensure that the company produces the best products possible.
Our business idea supports this vision by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.” (IKEA world website) This plain-speaking, deliberately
According to the report for most businesses, this has been challenging to attain due to the prevailing harsh economic times globally, which have solely contributed to challenging business conditions for businesses in the world today. Every business attempts to adopt business strategy that they deem to be effective and efficient.
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