This website uses cookies to ensure you have the best experience. Learn more

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...

Find Another Essay On Marketing Principles and Business Practice: IKEA

Principles of Logistics and Marketing: The Marketing Mix

1345 words - 5 pages Discuss why Place, or Distribution, can become the element of the marketing mix that causes the biggest headache to the manufacturer.A Marketing Channel is a channel of distribution, or group of interrelated intermediaries which direct products to consumers Dibb & Simkin 1994A channel of distribution comprises a set of institutions which perform all of the activities utilised to move a product and its title from production to

Marketing Concept and Marketing Segmentation in Practice: Haagen-Dazs

4026 words - 16 pages understand tastes and preferences of customers*Used selective distribution and did not mass market until the minimum critical mass of opinion leaders were established*Did not change their objectives in between*Used creativity and innovativeness to support brand identityThis report will discuss in detail the evidence that Haagen-Dazs does, indeed, practise the marketing concept of keeping customers needs as a priority for the rest of the business

Business Finance and Marketing

2129 words - 9 pages been interested in valuing financial options like puts practice, since truly strategic options are so ambiguous and often depend on a manager's vision of what might happen. Hence, financial evaluations of strategic investments usually focus on the opportunity at hand and seldom try to value market opportunities that the investment may create. While, the business people tries to compensate for this when it comes to making the real decision. By

Marketing and E-Business

860 words - 3 pages Just as the term e-business no longer refers to the simple practice of conducting business on the Internet, the expression e-CRM has evolved from just an online point application to a more comprehensive, ongoing strategy to enhance the end user's overall experience. Today e-business not only encompasses the exchange of goods and services online, but also has grown to include customer service and business collaboration. In turn, e-CRM, developed

International And Business-to-Business Marketing

3611 words - 14 pages International And Business-to-Business Marketing Business markets are "markets for products and services, local to international, bought by businesses, government bodies, and institutions, for incorporation, for consumption, for use, or for resale."[1] In business marketing, the customers are organisations, (businesses, governments, and institutions). An organisation is a group of people pursuing a common aim

Saputo Business and Marketing Report

3362 words - 13 pages people with respect;•safeguard the confidentiality of information;•avoid conflicts of interest;•respect the organization;•follow the lawSaputo also adds that its entrepreneurship "guides the relationship of its employees" and stimulates "the development of new ideas and innovative solutions" that improve its business processes (Code of Ethics, As long as the company stays true to its codes and principles, their

Motivation and its centrality to successful business practice

3147 words - 13 pages Motivation and its centrality to successful business practice Motivation Motivation is a key factor when managing any business. Motivation is important for a high productivity level. Productivity measures the relationship between the inputs into the business and the resulting output: There are several ways of measuring productivity: * Output per worker * Output per hour / day / week * Output per machine (if the business

Laws for Fair, Balanced and Competitive Business Practice

815 words - 4 pages United States has several laws that ensure that competition among businesses flow rely and new competitors get free access to the market. These laws intend to ensure fair and balanced competitive business practices. However, there are times when some businesses will do anything to gain competitive edge. USA has string antitrust laws that prohibit fixing market price, price discrimination, conspiring boycott, monopolizing, and adopting unfair

Identify two principles of Communism and assess how these principles were put into practice by one Communist ruler between 1900 and 1990

557 words - 2 pages started Collectivization again in 1931. This again proved that it did not work since one year later there was once again famine, which hit the Ukraine particularly bad leaving 5-million people dead. By seeing how there was famine twice in the span of 7 years, one can see how the wealth was not properly distributed. Judging by the principles showed above and the policies implemented by Stalin to put them into practice I would have to say that he

Marketing MA Management and International Business

1999 words - 8 pages Marketing MA Management and International Business Introduction CRM is a term for methodologists, technologies and e-commerce capabilities -used by companies to manage customer relationships. (Foss, 2001:1) It is also called customer management, customer care and sometimes customer centricity or customer-centric management. (Brown, 2000:1) All the names and definitions of CRM have customer, as its core-it is the management of

Kudler Fine Foods: Marketing and Business Plan

891 words - 4 pages control and an accurate inventory can help to reduced the costs and lost of perishable goods, and therefore increase profits. Perhaps these profits could be invested in manpower solutions. Additionally, there is the possibility of sales increase by implementing a marketing strategy using the business website as a sales tool. Today’s accelerated life style makes the online sales vital for many merchants. The customers could order products or

Similar Essays

Marketing Concept In Practice At Ikea

4671 words - 19 pages environments. IKEA recognised that the three true signs of brand success are tied to customer satisfaction, repeat business and referrals (word of mouth). IKEA leverages all three of these to the extreme. IKEA management have stated that their best marketing investment has been in getting satisfied customers to help sell IKEA to others. Their formula is simple - remember what made you successful and make sure to deliver it consistently around the

Management Principles And Practice Essay

2002 words - 8 pages Management Principles and Practice Although it is possible to adopt a fairly atheoritical, empirical approach to assessing personality, even psychologists make assumptions or have some preconceptions with regard to the expected outcome and nature of their research. Unfortunately, theories are often based on a minimum of actual observations of the objects of their efforts. At the very least, it should be recognised that some frame of

Examine The View That Marketing Theory And Concepts Portrayed In The Traditional Marketing Literature Have Only Limited Application In Guiding Small Business Marketing Practice

1689 words - 7 pages concepts popularized during that decade. For example, Cundiff and Still covered an analysis of the 4 P's of marketing with the concept that marketing is a subsystem of business. (Cundiff, E.W., Still, R.R. 1976)The basic principles of marketing are generally applicable to large and small businesses. Marketing in SMEs has been recognized as a problematic area for researchers for over 20 years (Chaston and Mangles, 2002; Siu and Kirby, 1998). SME

Global Marketing: An Analysis Of Ikea And Ashley Furniture Industries’ Marketing Activities

3490 words - 14 pages Dahlvig on international growth and IKEA’s unique corporate culture and brand identity”, Academy of Management Executive, 17(1), 31-37 Media Source (2010) Ashley Furniture Marketing Show Handout [online], Available at: [21 December 2011] Miller, P. M. (2004) "IKEA with Chinese characteristics”, The China Business Review, 31(4), 36-38. Mummert, H. (2007