Referring to the below case studyanswer the given questions:

 

Founded in 1943, Ikea operates 422 stores in 50+ markets. The favored furniture brand has an impressively wide customer base, with nearly 70% of its stores in Europe. Ikea added 19 stores last year, including its first in India. The Ikea marketing strategy includes some of the most iconic logos, campaigns and companies in recent history. Ikea cooperates

with approximately 1,600 suppliers, and about 1,000of those are home furnishing suppliers. The remaining suppliers operate in variousindustries, including components, food, transport and other services.

Ikea serves the uniquefunctional needs of each target audience, with special attentionto 16- 34-year-old adults. It has solutions for:

 

• Bachelors

 

• Single people not living at home

 

• Newly married couples

 

• Families with the youngest child under six

 

• Older married coupleswith dependent children

 

• No children families

 

• Labor force

 

• Retired

 

• Students

 

• Professionals

 

Thus, it uses the following types of product positioning:

 

 

• Mono-segment positioning. It appeals to the needsand wants of a single customer segment that is cost-conscious and prefers value for money.
• Adaptive positioning. It believes in periodically repositioning products and services to adapt to changes in customer preferences. Its Swedish furniture chain considers the dynamic nature of customer preferences. For instance, its latest products reflect increasing minimalism on the global scale.

 

 

 

 

 

 

Ikea Píomotional Channels:

 

Ikea utilizes the powerof the following marketing channels:

 

• Website

 

• Mobile Application

 

• WebEngage:Email, SMS, and Whatsapp Marketing

 

• Social Media

 

• Telecalling

 

• Commercials

 

• Print ads

 

• Stores

 

 

Founded in 1943, Ikea operates 422 stores in 50+ markets.The favored furniture brand has an impressively wide customer base, with nearly 70% of its stores in Europe. Ikea added 19 stores last year, including its first in India. The Ikea marketing strategy includes some of the most iconic logos, campaigns and companies in recent history.

 

Ikea ľaíget Audience

 

Ikea serves the uniquefunctional needs of each target audience, with special attentionto 16- 34-year-old adults. It has solutions for:

 

• Bachelors

 

• Single people not living at home

 

• Newly married couples

 

• Families with the youngest child under six

 

• Older married coupleswith dependent children

 

• No children families

 

• Labor force

 

• Retired

 

• Students

 

• Professionals

 

Thus, it uses the following types of píoduct positioning:

 

 

• Mono-segment positioning. It appeals to the needsand wants of a single customer segment that is cost-conscious and prefers value for money.
• Adaptive positioning. It believes in periodically repositioning products and services to adapt to changes in customer preferences. Its Swedish furniture chain considers the dynamic nature of customer preferences. For instance, its latest products reflect increasing minimalism on the global scale.

 

 

 

Ikea Marketing Channels

 

 

Ikea utilizes the powerof the following marketing channels:

 

• Website

 

• Mobile Application

 

• WebEngage:Email, SMS, and Whatsapp Marketing

 

• Social Media

 

• Telecalling

 

• Commercials

 

• Print ads

 

• Stores

 

 

 

IkeaMaíketing Stíategy

 

The Ikea marketing strategy contributes majorly to its successbecause it's original, imaginative, and distinctive while maintaining a transparent value proposition.

 

A Cíeative, ConsistentBíand ľheme

 

From the Swedish national colors on its buildings to rich meatballs in its store cafeterias, Ikea's marketing strategyreflects its culturalheritage proudly. It infuses all elements of their identity with a sense of self-assuredness that maintains their identity in the market of stiff competition.

 

Emphasizing Affoídabilityand Sustainability

 

Understanding that a simple tiered strategy won't encourage repeat business, Ikea extends customization, flexibility, and mix-and-match furnituremodules. It effectively combines the elements of affordability and sustainability in its marketing strategy to ensure success.

 

While the furniture optionsdon't pledge a lifelong guarantee, the products are built to last. Even its reusable shopping bags reflect its commitment to sustainability.

 

Sponsoíship and Influenceís

 

IKEA-sponsored comedicseries Easy to Assemble. Its innovative content marketing was way different from a furniture product demo. Incorporating sponsored digital marketing campaigns and social media influencers have boosted the Ikea marketing strategy.

 

 

 

 

 

 

 

Exceptional In-stoíeExpeíience

 

Ikea brilliantly displays products employing the best lightingsystems to generatemore sales. It strategically arranges best-matched items in mock rooms to encourage impulse purchases and inspire decor. The company also extends excellent customer service to provide a memorable experience and incite customers to come back for more.

 

 

Ikea's Stoíe Decoífoí Inspiíation

 

 

Ikea's SMM (Social Media Maíketing)

 

Ikea's handles are very active on digital marketing platforms

like Facebook, Instagram, Twitter, and Youtube. Their digital presence is impressive, with more than 30 Million likeson Facebook, 1 Million followers on Instagram, 5.3k followers on Twitter, and 41.2k subscribers on YouTube.

 

 

Content Maíketing

 

 

Ikea relies on its content marketing strategy to create a distinguished presence amongst furniture brands. Its commercials, print ads, social media, and website stands out with attention-grabbing content. It combines innovation and humor to present the brand's core values and inspire people.

 

 

 

Ikea's Captivating Commeícial

 

 

 

 

UAE Home Furniture Market Analysis

In the United Arab Emirates, people are increasing their spending on renovating homes (furniture, kitchens, bathrooms, and flooring), and are investing in higher-quality products. In Abu Dhabi and Dubai, there are a large number of expats (more than 170 nationalities), therefore, the region is developing as a potential market for all types of furniture.

Major raw materials that are required for the production of furniture productsare wood. Some other inputs include fittings and finishing materials.

It was observed that the demand for high-end luxury furniture items has increased over the years. Furniture items,which entail heavy fabric and leather, were more preferred by the people of the country.

This rise in demand has led to the growing domestic demand and the emergence of multiple players catering to the same target audience. Manufacturers and retailers operating in the region

 

 

compete on almost the same groundsof quality of the productand the material used to manufacture the product.

Branded furniture companiesare slowly startingto take over this market.

 

 

 

UAE Home FurnitureMarket Competitor Analysis

The UAE furnitureindustry is expectedto register a positive CAGR during 2020-2025, With the increase in nuclear families and rise in demand for residential apartments, the country is likelyto witness an increase in the expat population, owingto the stability in oil prices in the near future. The development of key projects, like Caesars Palace, Fairmont, and other projects, may lead to the development of the tourism industry in the country.

UAE Home Furniture MarketTop Players

 

 

Answer all the questions:

 

Section A: Long form questions and Answers:

 

1. Provide an analysis of the 4 p's frame work for Ikea. Information here could be from the case study or from your own knowledge.    (15 Marks)

 

 

 

 

1. Based off the data provided in the case study and your own insights. Conduct your own analysis of the 5 forces model and provide a strategy to aim to reduce the effects of it.