Marketing Management and Strategy
Table Of Contents
C.Marketing Strategy ( 4P & Strengths)4
D.Marketing Strategy (Weakness)6
H.Word Count and Contributions of each members9
This project is to study the current marketing strategies being adopted by IKEA Hong Kong (IKEA) in the local market. We will identify the strengths and weaknesses of their current strategies. Finally, recommendations to their management for better market performance will be made. IKEA was chosen as it is famous towards furniture industry. The brand name IKEA in Chinese means “the proper home” is good meaning for every family. With three stores located accordingly in Hong Kong Island, Kowloon and New Territories which are near MTR or railway stations, its blue and yellow logo is easy to be recognized and well-known for its unique and attractive designs.
B. About IKEA
IKEA founded in 1943 from a small furniture warehouse to a global furniture franchiser, the Swedish-based company has over 301 stores across Europe, North America, Middle East and Asia which is one of the world’s largest furniture retailers. IKEA provides a range of 9,500 products, including home furniture and accessories. Many people associate Sweden with a fresh, healthy way of life. In fact, this Swedish lifestyle is reflected in the IKEA product range. The vision of IKEA is to create a better everyday life for the people by offering a wide range of well-designed, functional home furnishing products at low prices that as many people as possible will be able to afford them. Do- it-yourself (DIY) young adults’ ages from twenty to thirty-five are target market of IKEA. They are trendy and ready to establish new homes. They have high demands for furniture.
C. Marketing Strategy ( 4P & Strengths)
Strategy is a long term deliberate sequences of actions, reactions, approaches, or activities intended for the accomplishment of a desired Marketing and organizational goals or objectives. We will examine IKEA marketing strategies and their strengths base on Product, Price, Promotion and Place.
i. Flat-Packed Furniture
IKEA stores work like supermarkets. Customers can buy the flat-packed furniture and then self- assembly at home. A win-win situation is developed for both IKEA and customers. It is easy for storage which is the strength of IKEA to fight with its competitors like “Pricerite”, “Francfranc” and “DSC”etc. The storage and transportation costs are reduced. Customers are happy to buy small parts of products at low prices. In fact, they can gain satisfaction during the assembly process. ii. Product Differentiation
Products of IKEA are differentiated by style and design. The healthy and simple Swedish lifestyle of IKEA is sole and modern. This comes from the tradition of Ingvar Kamprad who is the first ancestor of IKEA. Customers can enjoy lives and show personal personalities instead of just buying furniture. Product differentiation by form exists. This involves the product shape and size. The small size of furniture is one of the competitive advantages of IKEA There is product differentiation by features. Customers can visit various displays in IKEA stores which are rarely to be seen in other furniture providers.
Pricing strategy is a deliberate market action or reaction developed and or adopted by an organization to guide its efforts towards developing its marketing goals. i. Segmented Pricing Strategy
It is used by IKEA to identify differences in personalities, incomes, products, locations and climatic factors. IKEA sells its neat and fashion design to let...