The marketing strategy of IKEA mainly deals with product development, promotion activities, pricing, and customer relationship management. An ideal start time and the exact and precise network of people and the time frame within the organization are to be established. “The marketing strategy allows to develop the notoriety of IKEA and creates traffic in stores. The stores, the products, the catalogs are practically the same all over the world, but the strategy and the plan of communication are defined by each country” (IKEA survey and its report, 2006). The marketing strategy of IKEA has to focus much on the value chain of the competitors in the developing process and they include the elimination of other players from the market. The entire analysis of the behavior of key factors has to be considered, like the behavior, mode of operation, key functional areas, etc.
IKEA’s market driving of the organization can be said to create awareness and to make the customer aware of the dynamic conditions within the firm and to develop a unique value chain. “The economy may be looking fiat, but in any economy great design, good quality and low price work. And the thing about IKEA is, shoppers, can get everything under one roof” (Duff 2006). The manufacture of the IKEA products is done considering the cordial relationship with customers and other intermediaries involved in the development of the products. The IKEA method of manufacturing had a high reputation in various kinds of products and is specially designed for the code of conduct in the market.
As house packing is the new form of innovative business, more attention needs to be paid to convenience, transport, benefits, and safety measures. These are the main criteria which an individual is looking forward to in taking up the flat or a housing unit.
The main innovatory idea behind the flat pack is to make the idea much beneficial for the economic class in the disaster situation, the flat is designed in such a way that the investment is low in compared to the competitor product, the design is done in such a way that the maximum usage of the space is done and the locally available materials are used for the construction, the rubble foundation is used for the construction, the bricks are used for the construction of the walls which can save the cost up to 6-10% in comparison to the laterite stone, The concrete doors and windows are used instead of the wooden doors and windows.
The pricing system used for the flat pack is the penetrate pricing, where the main aim is to make the innovatory product available to houseless people at a very affordable price.
The convenience in the flat or the housing means the location layout should be much accessible to an individual for coming to the flat from far of distances. The selection criterion for them is to be in convenient ,we plan to choose the location in the heart of the city.
People are variety conscious and the way in which they choose the variety differs from person to person. In housing sector, people look for variety in structures and patterns of the house. The architecture employed should be gorgeous and the variety should be shown in designs. The main idea is choosing the designs are from the design experts and the low technology ideas from the Larry Becker scheme.
The transport criteria are the main comfort to be provided and the allocation of the flat is to be in the town centre where convergence never becomes an issue for the people. The transport system to the nearby locations are available from the flat locality itself, a cab is made available for that purpose.
The social benefits and safety measures have to be found, which should include the hiring of the security personnel for the safe-guarding and other benefits like the luxury, swimming pool, badminton court etc. The flat maintenance within a year is given at a free cost is the extra advantage provided to the customer, The loan system and the instalment in the payment are the other additional benefits planned for the economically weaker sections.
The market growth of the IKEA is very large and various strengths of the company speak about the expansion of the company. “IKEA is an example of a large, yet highly entrepreneurial firm, and the case offers insights into how large companies can centre entrepreneurial innovation and change on environmental issues. Another area of pedagogical emphasis is IKEA’s use of supplier relationships to enhance its environmental positioning and to generate environmentally responsible product designs” (IKEA and the natural steps, 1998, p.2). The flat pack is of much minimized costs and they make it much easier for the middle class people to afford. The company makes the level best to suit the cultural changes and the cost savings and the convenience in the manufacturing. The brand is much reputed in US, UK and in the Asian and European countries. “These depend upon how IKEA positions itself in the marketing place and how we finance our business. The following are examples: making a profit, for the stakeholders and for future investment; pricing to keep competitors out, pricing which positions the company, pricing to maximize sales” (Analyzing the Marketing Strategy used by IKEA to Increase the Demand for Products, 2010). Increased opportunity for flat makers exists because there is a lashing demand in the market where college and the school students prefer to stay in the metropolitan cities for education. The restaurant chain also contributes much for the increased food chain in the country and in-store restaurants in the metro contribute much to their profit as they are the 15th largest food chain in the country. Various designs and structures are tailor made and much preference is given to customer service and satisfaction.
Millions in the country are without a proper dwelling place and much focus is on customer service and satisfaction.
The graph showing the growth of the IKEA’s housing and the flat is given, this indicates that the IKEA is growing in accordance with the company.
Reference List
Analyzing the Marketing Strategy used by IKEA to Increase the Demand for Products, 2010. Web.
Duff, M., 2006. IKEA eyes aggressive growth: New Philadelphia prototype hints of future. Web.
IKEA and the natural steps, 1998. [Online] World Resource Institute, p.2.
IKEA survey and its report, 2006. [Online] IKEA.