Ikea Marketing

In: People

Submitted By cybershot
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Marketing Mix

Product

IKEA implements unique concept to its customers in able to cut costs. The company creates uniqueness through its product differentiation, which includes:
Product features: 10,000 different Home Furnishing products under one roof in plentiful range of uses and style, with low prices, which is called as democratic design. These include bedding, sofa, kitchen cabinets, appliances and children’s products.
In-store showrooms: Establishment of large store consists of in-store showrooms that display different settings of look-a-like-home departments, such as living rooms and bedrooms constructed by all IKEA products. This gives unique shopping experience to customers, as they are able to browse.

Price

IKEA applies value-based pricing strategy to keep costs low and create better value. In its planning and production process, IKEA develops beneficial relationship with its suppliers as it signs long-term contracts that allows rented equipment and technical support in producing low-cost manufacturing to maintain cost efficiency. Also IKEA provides same collection of products in all of its stores worldwide, so the company is producing in huge volumes. IKEA sells its products in flat packaging as Flat packs mean that we do not have to pay for transporting or storing and not only means lower warehousing and distribution costs, but also less impact on the environment. Moreover, the location plays important role in minimizing costs.

Advertising and Promotion

IKEA applies various features of marketing in promoting its brand to customers. IKEA has successfully implemented printed media as its marketing element to identify the company value over long period of time. IKEA also uses other promotional tools such as TV, radio and Internet based communication.
IKEA’s marketing also includes include:
IKEA catalogue: This has been the company’s…...

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