QUESTION 1

Identify the marketing orientation/concept/philosophy adopted by IKEA. Is this

concept applied globally?

IKEA, A Swedish rooted company is not an infamous brand to many. When we even
casually speak of furniture, IKEA is definitely a name that pops up in our minds, or so to
the majority. IKEA spread it wings from Europe and now a global prominent retailer and
yes, IKEA’s unique concept is applied universally which make them a powerhouse when
it comes to ready-to assemble furniture.

With an ever competitive world, IKEA remains a top brand due to its effective marketing
strategy, unique philosophy and approach to design that suits various needs for
customers that fulfill their target market with affordability, functionality and quality.

IKEA’s target market is for younger generations with relatively low incomes, or the middle
class group. IKEA understands that young families need furniture to fill their new home
and it has to meet the expected quality and the current trend and taste of new
generations. IKEA revolves their marketing concept and philosophy around their known
target.

IKEA believes customers will be more attracted to products that are readily available and
can be purchased for less than competing products of the same kind. Hence, they
produce good quality products and reduce their operating cost in different areas without
affecting the quality, focusing on product concept. IKEA designs DIY products where the
cost of labor for assembly is waived. Storage is less with flat-boxed materials where all
the furniture are boxed for customers to buy back and fix themselves at home, hence
reducing storage space and cost of storage. Upper hand here is more space is available
for more material to be stored too. By reducing this overhead cost, IKEA is able to
produce affordable furniture for their targeted customers.

IKEA is also known for producing space-saving modern products with high durability
and excellent quality. IKEA hires freelance designers from various countries and culture
to cater to the ever evolving need of customers. By having their own team of designers,
they are able to deliver a range of products that are able to collaborate with other
designs available to extemporize on to customers’ demand. 

IKEA has its own catalogue with great designs and ideas for home startups and
improvements. People use this catalogue to design their home and continue to look
forward to next issues for their continuous improvement and foresight of purchasing the
products in the near future. By shopping in IKEA, they would provide measuring tapes,
catalogues, pens and notepaper for the customer’s convenience to measure the
requisite furniture they desire. IKEA outlets run their own integrated playroom and
childcare center that provides parents with a peace of mind to shop for their products
where their children will be taken care of and being occupied in the playroom. Food
outlets are also available inside IKEA centers so customers don’t have to rush out or
think of their next stop and time when they feel hungry, making IKEA a one-stop center
that allows customers to spend quality time when they are in any IKEA stores. The
arrangements and display of products is also a one-way entrance and one way exit
where customers are guided according to IKEA’s setup, making sure no one misses
anything in their stores. This selling concept is another key role in their marketing
approach that keeps customers coming back for IKEA’s products. Customer satisfaction!

IKEA practices the same everywhere to create a similarity, thus creating a strong brand.
However, IKEA customizes according to different countries and culture without altering
their core strategies focusing on their customers. This marketing concept applied by
IKEA finds the right products for their customers and not the right customers for their
products and this is applied globally and had become more effective than competitors in
creating, delivering, and communicating superior customer value to its chosen target
markets.