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The Introduction Of Ikea Research Paper

908 words - 4 pages

Huirui Zhu
1.Introduction

IKEA, the most famous furniture enterprise in all over the world, was established in the Sweden in 1943. Now, IKEA has set up more than 180 retail stores in 42 global countries. During the period of development, it is well known for modern furniture appliances, excellent interior designs and unique attitudes of enjoying life and homes. The success of IKEA is the meaningful model not only for former furniture enterprises but also for the service industry. The most important factor which influences the success of IKEA is the special experiential marketing strategy.

Experiential Marketing is the new theory which was first put forwarded by Alvin Toffler (1970) to illustrate that customers pay more attention to the experience which satisfies their psychological needs and preferences during the consuming process. Enterprises also focus on promoting the satisfaction of customers as well as creating the positive environment. And Bernd H. Schmitt (2003) ever defined the experiential marketing as the new way of thinking to analyse the customers and marketing method into five aspects ? sense, feel, think, act and relate. It is worth to analyse the experiential marketing theory especially for the emerging market such as Asian market.

As for IKEA, the experiential marketing pattern divides into four aspects - Buzz Marketing, Catalog Marketing, Scene marketing and Green Marketing. In details, the enterprise holds the principles of precision calibration in the market, customer-orientation strategies, and green marketing strategies. What?s more, the IKEA always keeps the great balance between localization and globalization in different sales territories. Reducing the price, setting more showrooms for young white-collar groups in cities, more DIY guidance and other services are especially designed for the Chinese market. It is also the key factor which leads to great success for IKEA.

China as an emerging market, plays an important role in IKEA promotion plans in the Asian market. In China, the furniture market is huge with various furniture retailers, the product differentiation is at the low level and the marketing model is single, which leads to the increasing competition in the Chinese furniture market.

Besides the IKEA, Chinese domestic furniture retailers also face challenges in the intense competition. With the rapid growth of Chinese residential property industry, the furniture industry market has developed strongly. And the unique experiential marketing model of IKEA has a strong impact on domestic furniture industry typical for young generation.

There are a great number of scholars and organizations make the research for following aspects: the IKEA research of standardized marketing strategies in different areas (Steve, et al., 2011), the IKEA Customers? psychology cognition and Design research (Colombo, et al., 2015), the analyze of exploring store format development and its influence on store image of...

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