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Marketing Principles And Business Practice: Ikea

2528 words - 10 pages

Marketing Principles and Business Practice


Table of Contents
1 Introduction: 1
2 Definition of different terms and their relation to customers’ need and customer focus: 1
2.1 Brand: 1
2.2 Business Strategy: 1
2.3 Price Sensitivity: 1
2.4 Franchises: 2
2.5 Retail sector: 2
3 Average customer per store and cost per customer and their use in business planning: 2
3.1 Average customer per store and cost per customer: 2
3.2 Mission Statement: 3
3.3 New Mission statement: 3
4 SWOT Analysis: 4
4.1 SWOT analysis and contribution to IKEA’s business growth: 4
4.2 SWOT analysis for “IKEA”: 6
5 Marketing Objectives: 7
5.1 SMART Approach 7
5.2 Two Marketing objectives of IKEA: 8
5.3 Marketing Mix: 9
5.4 IKEA’s Marketing Mix: 9
5.5 New Marketing Mix proposal: 10
6 Strategic ways to minimize threats and Business, Marketing Strategies for rapid Growth: 10
6.1 Strategic ways to minimize threats 10
6.2 Marketing and Business Model behind the rapid growth of IKEA: 11
7 Conclusion: 12
8 References 13

1 Introduction:
IKEA is a widely famous furniture retailer company which has started its operation since 1943. Now it has wide variety of 9500 product items. It has been operating in 24 countries with 253 stores among them 32 are run by franchisees. 560 million people visited their stores in 2008 by physic and 455 million on their website. For that they earned 23 billion Euros as sales revenue. The competitive advantage of this company is its low price and sustainable marketing strategy. To compete in the market and to win the customers’ mind they took many business strategies. In this assignment, the definitions of different terms, their engagement, different business strategy, marketing programs, SWOT analysis, SMART marketing strategies are discussed. After analyzing that we will have a clear idea about the story behind the screen of IKEA.
2 Definition of different terms and their relation to customers’ need and customer focus:
2.1 Brand:
Brand means a sign, term; symbol or design which recognizes the name of the product or services of a company and compares them with the other companies (Kotler and Armstrong, 1991).IKEA brand itself identified the customer’s need of customized assembling facility. That’s they come up with customer focused flat-pack furniture which meets the customers’ need.
2.2 Business Strategy:
A strategy that describes the ways how a company will attain its expected goals. It is termed as long-term business planning covering 3-5 years or even more. Here IKEA emphasizes on sustainability for winning the customers’ mind which paves the way of high profitability and loyalty
2.3 Price Sensitivity:
The level to which the change of the price of a product can affect the demand of that product (Aaker,2004). It is commonly termed as the price elasticity of demand. The formula of price sensitivity is:
Price Sensitivity can be calculated by dividing the Change in Quantity Purchased with the change in Price which is expressed in %. Here the...

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