Ikea Marketing Plan
Ikea Marketing plan
Executive Summary
IKEA is one of the world 's top furniture retailers, and its International sells home furnishings and other housewares in about 270 stores in 35 countries. To cut transportation costs, IKEA uses flat packaging for most of its furniture; customers assemble the products at home. The company designs its own furniture, which is made by about 1,300 suppliers in more than 50 countries. IKEA 's stores feature playrooms for children and value cuisine restaurants. It also sells by mail order and online. IKEA began operating in Sweden in 1943. It is owned by Kamprad 's Netherlands-based charitable foundation, Stichting Ingka.
IKEA’s current strategy
(IKEA designs its own low-cost, modular, ready-to-assemble furniture to fit its positioning which is ?. The trade-off between low price and self-assembly is indeed a most effective strategy. However, this strategy might not be able to target other potential markets such as the group of retired people, for example.
There are six points that I think the most important to understand from a strategic perspective.
• Firstly, since manufacturing costs in foreign countries such as China and Thailand are much lower, seeking out global production sources would increase its profits.
• Secondly, selling the ready-to-assemble furniture significantly allows IKEA to charge a low price on its furniture.
• Thirdly, there are many competitors entering the market and they copy IKEA’s marketing strategies, This might be lowering the price of IKEA’s furniture in the longer term. Thus, IKEA should be proactive and innovative all the time when designing products.
• Fourth, it is optimistic to anticipate that the economic growth will persist within the next few years. It implies that the demand for housing units will increase. When selecting furniture, low price is the key variable that many people consider.
• Fifth, changes in policies that restrict the logging
Executive Summary
IKEA is one of the world 's top furniture retailers, and its International sells home furnishings and other housewares in about 270 stores in 35 countries. To cut transportation costs, IKEA uses flat packaging for most of its furniture; customers assemble the products at home. The company designs its own furniture, which is made by about 1,300 suppliers in more than 50 countries. IKEA 's stores feature playrooms for children and value cuisine restaurants. It also sells by mail order and online. IKEA began operating in Sweden in 1943. It is owned by Kamprad 's Netherlands-based charitable foundation, Stichting Ingka.
IKEA’s current strategy
(IKEA designs its own low-cost, modular, ready-to-assemble furniture to fit its positioning which is ?. The trade-off between low price and self-assembly is indeed a most effective strategy. However, this strategy might not be able to target other potential markets such as the group of retired people, for example.
There are six points that I think the most important to understand from a strategic perspective.
• Firstly, since manufacturing costs in foreign countries such as China and Thailand are much lower, seeking out global production sources would increase its profits.
• Secondly, selling the ready-to-assemble furniture significantly allows IKEA to charge a low price on its furniture.
• Thirdly, there are many competitors entering the market and they copy IKEA’s marketing strategies, This might be lowering the price of IKEA’s furniture in the longer term. Thus, IKEA should be proactive and innovative all the time when designing products.
• Fourth, it is optimistic to anticipate that the economic growth will persist within the next few years. It implies that the demand for housing units will increase. When selecting furniture, low price is the key variable that many people consider.
• Fifth, changes in policies that restrict the logging