IKEA’s Marketing Strategy Essay
IKEA’s Marketing Strategy
One thing that makes IKEA becoming the best known global furniture retailer in the world is its marketing strategy. IKEA is a strong ban and many people across the globe think of IKEA when they thought about furniture. The key success of marketing strategy is IKEA’s standardization. IKEA stores around the world look alike and they all contain core value of organization’s culture. It looks and operates the same in every market markets. However, IKEA stores have to adapt to local markets.
First standard is the most important standard. IKEA has had as a guiding principle to work in the same way and be seen in the same way in every country it operates. IKEA strategy is to keep the price low and attractive for as many people as possible. This marketing strategy is called merchandise; the product range and the prices of the products. The price should be the same in every market. Prices on products are supposed to be considered low compare to what consumers find in another store. IKEA aims deliver high value at low price.
Location of the store usually locates at the outskirt of the city. The reason is that the consumer who buy furniture usually use personal car as a transportation (consumers using public transportation are rarely seen). The designs of stores are supposed to look basically the same in important dimensions: signage, display, store layout and design, and colors. They should contain Swedish identity such as the color of Swedish flag; blue and yellow. The purpose is to give the same shopping experience regardless of where the store is located. Still different stores adjust the room-settings they use to fit the local housing and living conditions, rather than an original setting. For example; room adjustment in IKEA Japan would be small and its furniture will considered for limited space, unlike IKEA store in Europe where housing has more space. It also adapts its design to impress local market as well. Service levels are similar around the world with staffing about the same everywhere.
The number of employee in each level should be the same everywhere in the world. IKEA presents unique strategy. IKEA concept is to have the low prices you as a consumer pays a price which if consumer wants to pay lowest price; consumer has to pick things up in the store, carries to your car, takes home and assembles yourself. Nevertheless, IKEA also offers delivery service.1 Another important strategy is public relation. The best known channel is the IKEA Catalog, which is developed by IKEA Communications in Älmhult, Sweden. It is produced in 38 different editions, in 17 languages for 28 countries. All this adjustment is made from a standardized base (same products, same overall info etc) meaning that country/region adjustments are really fairly small. Other important channels are IKEA websites, publications, and brochures.2 IKEA has adapted its product and design to fit in many market. Nevertheless the key success of IKEA is its standard and core value. This makes people recognize IKEA. Even though many new competitors try to copy IKEA or compete with it. IKEA manges to maintain its competitive difference and advantage. Its brand still strong in house retailer business.