Submitted to: John Daly Submitted by: Lindsay Churchman Matthew Holland Jamie Krebs Eveline Man Chris Manellis Chelsea Slade Due Date: February 17, 2011 MRK428MS
IKEA current marketing goal and objective
The IKEA vision is to create a better life for many people who purchase their products. Their main objectives are: - IKEA produces cheap and affordable products for the customers - The company wants better life for those who cannot afford expensive products - IKEA always helps to produce right product for the right consumer - IKEA always tries to sell their products at low prices - The company’s global developments and its continual commitment is to have a positive impact on people and the environment. The Website of IKEA states the marketing objectives and goal of IKEA: “Our vision is to create a better everyday life for the many people. 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”(“ The Ikea Concept”).
How these goals and objectives are being achieved
One of IKEA’s main goals is to provide products at low prices to customers. IKEA has good, stylish furniture for their customers. There are 316 large stores in 267 countries. IKEA works to maintain a wellknown brand identity. IKEA marketing plan is very well design to sell the product. The main IMC goals include product design, catalogues, advertising, and public promotions.
Review of current marketing strategy and performance
Products: IKEA has everything to do with the home. The company has many products categories such as cooking, desk, eating, children’s IKEA, bathroom storage, beds & mattresses, chairs, clothes storage, decoration & mirrors, flooring, IKEA FAMILY cabinets & appliances, lighting, small storage, sofas & armchairs, storage furniture, tables, textile & rugs, transport & assembly and TV solutions. Pricing: IKEA positions itself with low prices. They are extremely price/cost conscious. Distribution: IKEA has 28 large distribution centres and 11 customer distribution centres in 16 countries. IKEA has 1400 suppliers for distribution. Promotion: IKEA has its own website where they now have their catalogues virtually. In the last year 198 million copies of the catalogue were printed in 56 editions and 27 languages. Moreover, IKEA uses newspaper ads and television commercials. The company uses billboards ads and bus stop ads. IKEA also faced controversy in their “Tidy up” advertisement campaign.
IKEA does not spend largely on promotions. IKEA believes on their online catalogues and print publications of the catalogs. The catalogue is the main tool for selling. IKEA try to cut the cost with least advertisement. But it is very important part.
Brand preference and product awareness:
People like to buy IKEA’s products because of their low prices and medium-quality. People have great awareness of the brand. Moreover, we can see people like to go IKEA store because of good facilities.
IKEA Store Visits from 2006‐ 2010 (in Millions)
800 600 400 200 0 2006 2007 2008 2009 2010 IKEA Store Visits from 2006‐2010 (in Millions)
Review of current and anticipated organizational resources
When asked about IKEA’s perspective on resources, the company’s CEO, K, has said “waste is a mortal sin” ( IKEA)! Taking in to consideration IKEA’s sustainability efforts, it appears that the rest of the world will run out of natural resources and IKEA will be able to still provide furniture to all! Financial: In regards to financial resources, the IKEA Group stands strong for the 2010 fiscal year, unlike many others in their industry. They witnessed a sales increase of 7.7% to 23.1 billion euros and net profits increase of 6.1 % to 2.7 billion euros from the previous year. “ Profits give us the resources to grow and reach more people on existing and new markets...