Marketing Mix of IKEA analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the business & marketing strategies of IKEA.
Let us start the IKEA Marketing Mix:
IKEA is one of the leading global retail chains spread across the world. Products offered by IKEA cover a wide range and the offerings are in the company’s marketing mix. IKEA offerings can be broadly divided into outdoor furniture, baby and children’s products, eating, bathroom stage, desks, mirrors, beds and mattresses, chairs, cooking, clothes storage, decoration, leisure and safety products. Apart from this IKEA also keeps kitchen cabinets and appliances, lightning, small storage, sofas and armchairs, storage furniture, Swedish food, tables, textiles and rugs, tools and hardware, TV and media furniture and wireless charging. All these give an overview of all the products and goods which are available at IKEA stores.
IKEA competes with various global retail chains as well as local supermarkets. Low prices constitute the IKEA vision, business idea and concept. IKEA makes low cost furniture for household and offices. It focusses on cost control and efficient operational details. This allowed IKEA to lower its prices over the decade to 2010 during a period of global expansion. IKEA allows not only lower prices but also freebies at the IKEA restaurant form Monday to Saturday.
IKEA has got an excellent place and distribution strategy as a part of its marketing mix. Distribution is based on the following principles. IKEA has a global distribution network i.e. a large distribution network. It has huge volumes on manufacturing side and flat packages i.e. it is useful in increasing value to weight ratio. IKEA has over 25+ distribution centres and has business operations in more than 50 countries. Over 9,500 products are sold at IKEA. Procuring materials in proximity with supply chain to reduce transport costs and using more of ocean transport than road transports by building DCs in proximity to ports are some strategies adopted by IKEA. Products are transferred from suppliers to IKEA stores directly. This reduces handling costs, reduces transport and lowers the carbon footprint. Also. warehouses are attached to retail stores.
IKEA focuses a lot on its marketing activities. IKEA uses promotion tools like TV, print, online ads, billboards etc in its marketing mix. IKEA launched a UK-wide advertising campaign which was named home is the most important place and used signs like "Not for Sale" written on them as a part of the...