Marketing Strategy of IKEA | IKEA Marketing Strategy
In the category of home furnishing, IKEA is a reputable name. With more than 380 stores globally, IKEA is leading the furniture industry in both developing and developed regions. Moreover, IKEA has a special museum in Sweden to showcase its offerings and services. From appliances to kitchenware and contemporary designed furniture, IKEA is one of the biggest and budget-friendly retailers in the world. The company is shaping the home architecture and living standards of people around the globe. Behind the major success of the company, there are some solid marketing strategies. Let’s talk about the IKEA marketing strategies.
Marketing Strategy of IKEA | IKEA Marketing Strategy
Important Factors in the Marketing Strategy of IKEA:
Segmentation, Targeting, and Positioning:
IKEA uses geographic, demographic, and psychographic segmentation to fulfill the varying market trends of appliances, kitchenware, and home furnishing market. They use a differentiated targeting strategy to cater to the requirements of customers who want to get their money’s value. In positioning strategy, they have changed their positioning on the product-based and value-based brands. Its main tagline is ‘’Affordable solutions for better living’’ clearly shows that how much value they gave to their shoppers.
Competitive Advantage:
IKEA is coordinating with top home designers and using their ideas to offer the best products to users. It is one of the biggest competitive advantages that the company has over its rivals and other big players in the market. A diverse range of products, budget-friendly furniture, and eco-friendly practices are some of the company’s plus points that increase the company’s market value and sales. They have successfully managed respect and value in consumers’ eyes, which helps the company increase its market value and share. On the other hand, long-term strategic partnerships are also proved beneficial for the company. That’s why its manufacturing and delivering process is really effective.
Marketing Strategy of IKEA | IKEA Marketing Strategy
BCG Matrix:
In developed nations, IKEA home furnishing is in the star category due to its innovative solutions and offerings. But, its performance is still in doubt in the developing countries due to the less awareness and strong presence of local players.
Distribution Strategy:
The collaboration of IKEA with designers, material suppliers, supply chain stakeholders, and product developers is very strong. These factors ensure that its products and offerings available for the customers in different regions. With the partnership of more than 1002 suppliers, they are working in 52 countries and maintaining their quality in every segment.
Brand Equity:
Branding is one of the most vital factors for any company to sell its products. Effective branding, empowering co-workers, and CSR activities have helped IKEA in creating brand awareness and market share. They have established their name successfully in those countries in which they are not working. They have invested in various campaigns, advertisements, and other branding factors like TV, social media, and other masses to aware people of its products and services.
Competitive Analysis:
The furniture market is overcrowded with a lot of international and national players that are giving fierce competition to the company. EnglishHome, Kelebak, TepeHome, and other giants are continuously threatening the market share of each other through their products and offerings. Moreover, IKEA’s working model is based on a franchise model which helps them to save infrastructure costs.
Marketing Strategy of IKEA | IKEA Marketing Strategy
Market Analysis:
To be honest, the home furnishing market is experiencing severe contest due to the pandemic and local companies. Several companies are focusing on e-commerce trading. IKEA can get specific market share and value by introducing innovation in its products and selling platforms. These factors can shape the company’s value and worth. In the furnishing, appliances, and kitchenware segments, IKEA has a strong competitive edge over various players.
Marketing Strategy of IKEA | IKEA Marketing Strategy
Customer Analysis:
IKEA’s most of the items are necessary for every home. Everyone wants to improve their house with the latest and innovative products. If you want to decorate your house, then you must consider this brand. The majority of customers of IKEA are based on mature people. These customers have a major inclination towards contemporary and stylish home furnishing ideas.
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