IKEA: Target Market and Positioning Strategy
When analyzing an organization’s target market, the first step is to understand the business and what they hope to achieve through their marketing strategies. Targeting and positioning strategies consist of analyzing and identifying segments within a given product-market, choosing which segment or segments to target, and developing and implementing a positioning strategy for each targeted segment (Cravens & Piercy, 2009). The company’s target market determines what customer group or groups the company wants to serve (Cravens & Piercy, 2009). Analyzing IKEA’s target market allows the company to determine if their marketing strategies have successfully targeted their intended customer group or groups. Discussing the company’s positioning strategy helps determine if the strategy is effective or if the company must make improvements strengthen their positioning strategy. The company must determine if their targeting and positioning strategies may be lacking. If the company’s targeting and positioning strategies are lacking, the company must determine what they must do to strengthen their targeting and positioning strategies.
IKEA is more than a furniture store they are a company driven by values (IKEA, 2014). The company seeks to make their consumers lives easier by providing them with modern, innovative, inexpensive products which they use to tackle daily home activities. IKEA Group has 298 stores in 26 different countries (IKEA, 2014). The company’s vision is “to create a better everyday life for the many people” (IKEA, 2014, para 1). Using innovative techniques for creating, producing, and marketing their products IKEA can provide consumers with durable products for reasonable prices, while continuing business growth and expansion.
Determining which consumers in the market to target is the core decision of market-driven strategy (Cravens & Piercy, 2009). Understanding IKEA’s targeting strategy helps the company with their efforts to deliver consumers superior value (Cravens & Piercy, 2009). IKEA’s target market is the global middle class. The global middle class include those individuals with an income threshold between $4,000 and $17,000 or that have a $10 per capita daily spending (Rosenbaum, 2013). IKEA’s target market makes is a very large market and is continuously growing. Economists believe by 2030 the global middle class will include a total of five billion people (Rosenbaum, 2013).
IKEA understands that by targeting the global middle class they increase their chances of selling more of their products. The individuals in the global middle class have more money so they typically spend more money and make more purchases. Purchasing products from IKEA give the consumer the feeling that they have arrived. IKEA strives for their consumers to have feel this way by selling lifestyles as a posed to just furniture or stuff (Cravens & Piercy, 2009). At IKEA...