New product or service: This is the type of new venture strategy that most people think of first, but it also involves the most innovation, creativity and time.
Building a global brand is not an easy task. While excellent product quality and affordable prices can be good for penetrating new markets, the way a brand is marketed decides its fortune in the long term.
In the global environment, success rests especially on marketing. IKEA is a well-known global brand of home furnishing products. Behind its global presence and excellent performance is an excellent marketing strategy.
However, IKEA has not achieved its success without being through its fair share of troubles. Cultural sensitivity has grown important in the 21st century. The one size fits all strategy will not work any more.
IKEA too had to face cultural hurdles while trying to penetrate new markets. Today, it is a highly recognized brand and behind it is the power of marketing. The Swedish brand of furniture sells a wide range of home furnishing products. Its affordably priced but good quality products have grown popular in several countries globally.
This is an analysis of the marketing strategies and techniques IKEA utilized to achieve global success. Store design and location: IKEA sells more than products from its stores.
Traditionally, the IKEA stores have been like warehouses located outside the town where customers can shop in peace. However, rising urbanization and e-commerce have made IKEA experiment with new formats. It introduced pick up points, small stores and inside the town stores.
The pick-up points are for the online customers from where they can pick-up the products they ordered online. The smaller stores are built in towns where a full size store may not be necessary.
These stores showcase a limited range of products. The third type, full size inside the town stores with transporter bikes are being opened at city centers in the large towns. However, IKEA has designed its stores in a manner to provide its customers with an unforgettable experience. There are maps to guide you through the labyrinthine stores so no customer feels lost.
Both these factors have grown important to marketing a retail brand successfully in the 21st century. They can grab ideas from the models at IKEA store.
There is also space for you to drop your kids or have lunch if you are feeling hungry. The IKEA cafeteria serves cheap yet good quality food. Such an experience also creates a lot of favorable buzz for IKEA. The target market of IKEA is mainly the global middle class.
It sells good quality and durable but affordable home furnishing products. The middle class consumers generally look for products that are good in terms of design and quality and come for low prices. It is also a reason behind the increasing presence and popularity of IKEA globally.
The consumer demographics are also changing globally and the focus is now on the millenials. However, IKEA sells contemporary and stylish designs that are a big favorite among the millennial customers.
Through its affordably priced and good quality products, the brand has been able to attract the millenial and middle class consumers in large hoards. It complements its products with a great customer friendly shopping experience.
IKEA uses a variety of promotional techniques to promote its brand. Most unique and most successful among the tools used by IKEA to promote its brand are the promotional catalogs.
Apart from unique home furnishing ideas, there are real life stories and a wide range of products showcased through the hundreds of pages of the catalog.
The catalog is available both in print and online. Apart from that an extended version of the catalog is available in the IKEA app.
The IKEA websites, publications, brochure, advertising and public relation campaigns are also used for the promotion of the brand. IKEA uses both traditional and digital channels to advertise and promote its brand.IKEA is a well-known global brand of home furnishing products. Behind its global presence and excellent performance is an excellent marketing strategy.
However, IKEA has not achieved its success without being through its fair share of troubles. Ikea Global Strategy Study. IKEA “To create a better everyday life for the many people.
” IKEA Case Study ‘The Democratization of Style’ IKEA Executive Summary. Business model based on: Affordability due to buying power, global design and resulting economies of scale;.
Value Chain IKEA Case Study 8 Source: grupobittia.com, IKEA Case Study 9 International Strategy If a firm uses a strategy through which goods and services are sold outside its domestic market it is known as an international strategy.
This part we will explain the IKEA project organized in India by site selection and company strategy. IKEA's global branding that promises low prices did not work in China also because western products are seen as aspirational in Asian markets. In this regard, IKEA's low-price strategy seemed to.