IKEA established in 1943, has been one of the largest household goods retailers in the world. Moreover, IKEA has always been keen on providing the mass majority with well designed, good quality and low price household furniture. Through analyzing its marketing strategy and marketing mix, we can find the reasons why IKEA can be so successful in the intense competition, which we learn from.
Key Words: IKEA, marketing, strategy, marketing mix Chapter One Company Introduction
IKEA is one of the business miracles in the 20th century. From a small stationery delivering company in 1943, Ikea only used 60 years to achieve a great success, with more than 180 chain stores in 42 countries and over 70,000 employees. In 2001, IKEA got 11 billion euros income and over 1.1billion net revenue, making it the biggest retailer of household articles in the world. It ranks 44th in the TOP100 Interbrand list.
In 1998, IKEA opened the first store in Shanghai China. It started the second store in Beijing in the following year. Between the year 1999 and 2003, IKEA kept the pace of setting up one new store in China each year. When it began to hold an increasing market share, IKEA speeded up to open at least two stores each year in mainland China. By the year 2010, IKEA will have had 10 chain stores in China.
Chapter Two Marketing Strategy
It is believed that the changing and innovative marketing strategy makes IKEA succeed. IKEA’s marketing strategy is to provide the mass majority with well designed, good quality and low price household furniture. It seems that there is always a dilemma between “good quality” and “low price”, but IKEA makes it united. IKEA also focuses on “experiential marketing + direct marketing + single-stop-type marketing”, which helps establish customer perceived value.
To achieve its marketing strategy, IKEA works on the following three aspects: market segmentation, target marketing and market