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Create a 2 pages page paper that discusses ikea. The IKEA company can decide which consumer segments to target? Which suppliers should be selected? Whether to use marketing intermediaries or not? Howe
Create a 2 pages page paper that discusses ikea. The IKEA company can decide which consumer segments to target? Which suppliers should be selected? Whether to use marketing intermediaries or not? However, social, cultural, political, technological and economic factors cannot be influenced.
Problems faced by IKEA in Developing Marketing Plan in the U.S. Market
Demographic environment - When IKEA planned to enter into US Market after targeting European and Asian market, the entirely diversified culture made it difficult for IKEA to select which part of U.S. to attack first.
Cultural Environment Organisational Strategy of IKEA in most of the countries has been to develop a lean organisation where more independence is given to employees, however, culture in the U.S. is different where employees need more directions and guidance .
Cultural Environment IKEA store layouts have been always the same in all the markets it has targeted, however, because of different American aesthetics and shopping styles, the company developed a new store layout strategy in the U.S. .Cultural Environment IKEA has to present a more polite return policy in the U.S. market as compared to the policy is offered in the European market because of different consumer confidence. The company promised to offer next-day delivery services in the U.S.Economic .
Environment The more competitive U.S market structure pressurised IKEA to pursue a more focused strategy. It created a disadvantage for IKEA because the company was primarily focusing on Word of mouth which was less powerful in the diversified culture of the U.S. .Natural Environment As IKEA expanded its business into global markets, the company has to develop more environmentally sustainable strategies because market strategies affect the natural environment.
Technology Environment . IKEA offers easy-to-assemble products which are a simple but innovative technology of the company. Before entering into the sub-urban American market, IKEA found technology-savvy consumers in this market which were ready to accept a brand's idea (Ha, 2008).
Political Environment The different policies and laws and government interventions have been always affecting IKEA's marketing decisions. The unstable political environment in many Asian countries affected IKEA's marketing objectives and plans. .
3. Look at Figure 2.4 on the role of SBUs and the accompanying discussion. How might your chosen company go about developing some strategies in each of the boxes: penetration, market development, product development and diversification?
IKEA started its operations in 1943 and until the 1960s and 1970, the company pursued a market penetration strategy in Sweden (IKEA). After achieving a significant position in Sweden, the company pursued Market development strategy and entered into a new market of Switzerland, Germany, Asian countries, Canada and the USA. After getting huge popularity in furniture markets, IKEA pursued Product Development strategy by starting IKEA Food and Restaurants in its existing markets. Today, IKEA has built a strong image in the minds of consumers, therefore, by pursuing a diversification strategy, the company can future expansion into new markets. . .
