Ikea Marketing Plan
With its unique combination of form, function and affordability, IKEA distinguished itself from other furniture retailers. With its success in Europe, IKEA entered the American market with the hope of continuing its success. Even if it was not very successful initially, it improved through its market research and advertisements, Nowadays, IKEA captured major market share in the US market and also the reputation of being the fastest-growing furniture retailer in the US. Ikea is a company which produce and sells home products, accessories, bathroom and kitchens for people all over the world.
The firm was founded in 1943 by Ingvar Kamprad in Sweden and nowadays is controlled by the family Kamprad. The name is an acronym that comes from the initials of the founder (I. K) and the initials of the farm where he grew up and his home country (Elmtaryd and Agunnaryd -Sweden-) Ikea has 238 stores in 34 countries with 104000 workers in 44 different countries.
The headquarter is in Helsingborg, Sweden. In Spain there are many stores distributed as in the following picture from http://globalizacion-y-economia. blogspot. com :
It is leader in the sector of furniture and it is one of the most prestigious and innovative company in the world; Ikea has the largest market share of the sector but it has to be in constant vigilance and innovate to continue being the leader. In its starts, Ikea sold pens, wallets jewellery… but in 1948 the company started to sell furnitures. From 1948 to 1953 it only sells his products by catalogue with low prices and, in order to compete, they decide to open his first store in Almhult (Sweden).
At these times, competitors tried to boicot Ikea putting pressure on distributors to finish their contracts with the company and even excluding Ikea of trade fairs to put it out of the market; competitor didn? t get what they wanted and is for this reason that Ikea started to design his own furnitures (Vertical Integration) and since that moment, the sales have increase rapidly as we can observe in the following graph from http://globalizacion-y-economia. blogspot. com : Actually they sell their products in all the world, especially in Europe as we can observe in the follow graphic from http://globalizacion-y-economia. logspot. com : Studying the regions in which Ikea obtains the major incomes for sales we can check in the follow graphic that the country in which Ikea sells the most is Germany, follow of the United States, France and United Kingdom: Source: http://globalizacion-y-economia. blogspot. com Age20-45 Income levelMedium Education levelAll GenderBoth (70% female) ProfessionAll Geographical locationWorldwide Marital statusSingles, married, widowed…
The target market for Ikea are people who are looking for functional furnitures with a good design and cheap prices. Target market comprises those just starting out who are in need of relatively cheap, sturdy furniture. ?Young family ?College student ?Single people ?Target market’s preferences, the furniture needs to be strong enough to survive frequent moves and young, active children. His product market is specially furniture market but also carpets, kitchen and bathroom accessories…Ikea produces furnitures with modern and utilitarian design; also with and environmental design. As demographic market, Ikea is focused especially in young people and in young families because of the modern and cheap design of their products.
To study geographical market, Ikea, as we studied before, is in many countries around the world. The marketsplace of the company is Internet where you can observe the catalogues, the different shops around the world, the tendencies of the designs… The strategy they follow is to realize the people have a need and from this, they try to converse this need in a want (with promotion, modern design…