Source: Adapted from IKEA 2009, welcome inside: IKEA Group yearly summaryY09,

http:/www.ikea.com/ ms/en_CN/about_ikea/press/press_realese/welcomeInside_2010.pdf

1.4 Company's marketing strategy

Hultman, Johnsen, and Hertz (2012), market will not be run in a uniform pattern. It automatically
changes with the time. Therefore, business or an individual should have to be clever to grab the
market opportunity. Opportunity will no longer wait for the business. To grab this opportunity,
company should become a watch dog and instantly change the marketing policy and strategies to
fit the situation. IKEA has faced many problems at the entry level. So to grab that opportunity,
the company basically adopt following two marketing strategy.
1. Low cost strategy
2. Service differentiation
Low cost strategy: Company basically focuses on low cost strategy to stimulate demand and to
gain market share. Company is adopting the concept of "Do-It-yourself" that reduces the cost of
assembling and packaging. Likewise, it adopts the concept of B2C marketing strategy.
According to this strategy company sells its producst door to door and directly to the individual.
This has reduced the marketing and advertising cost and finally reduces in the product cost.
Similarly, company has also produced other subsidiary product like a table runners, picture
frame, watches, and jewelry and nylon stockings at a reduced price.
Service differentiation
IKEA is more focused and concentrated on customer test and preference. Therefore, it always
make customer available of their product easily where customer can make selection of product of
their own choice. Company has opened up display center in different country in a large space. As
on the other hand company provide dissemble product so that the customer can assemble product
as on their own interest. Likewise, the company is competing in the international market and is
providing same quality throughout its service centers.
2. Company’s SWOT Analysis
Under this, we analyze the company's strength, weakness, opportunity and threat. To grab the
market opportunity and to overcome threat, company uses its capabilities and strength. Here we
have discussed company’s strength, weakness, opportunity and threat.
Strength Weakness
 Quality product at affordable  Limited promotional activates
cost  Very few Research and Development
 Wide range of eco-friendly  do not consider the cultural and behavioral
goods aspect of customer i.e. do-it-yourself
 Self-assemble product concept of the company is not entertain by
 Excellent store design and Indian people but was well accepted in
customer centric other countries
 Socially recognized at global
market

Opportunity
 Emerging market in Asia and
Europe
 Explore new product
Threats
 Thereat of change in customer test and
preference
 Difficulties of political, legal and social
economical aspect of targeted country.
 Increase in competition