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SUMERA SATTAR

BBA III
SECTION “B”
MARKETING MANAGEMENT
ASSIGNMENT # 01
SUBMITTED TO: SIR RAJA RUB NAWAZ
Case # 01 (chapter # 06)
IKEA
QUESTION NO 01
Answer;
Here are the some of the things that IKEA is doing to reach
consumers in several markets;
● Providing products according to the requirement of several
markets.
For example, when IKEA employees understood that US
consumers were purchasing vases as drinking glasses
because they considered the dimensions of their drinking
glasses too small so, IKEA developed the massive size glasses
for US markets.
Also, after they learned that European consumers generally
hang their clothes while US consumers prefer to store them
folded, they developed the wardrobes for US markets with
deeper drawers.
● Showrooms vary likewise in numerous countries or region in
steps to their requirement.
For example, when IKEA learned that US consumers thought
that IKEA only produced European-sized bed in order that
they immediately changed its US showrooms to feature the
king-sized beds and different styles to alter the thought of
US consumers.
● It’s a low-cost furniture business that sells the resembled
and casual furniture and the highest number of their
customers are college students and families with children.
● they offer the bulk of stylish and customizable products.
● Their diverse selection of things so as to satisfy the
requirement of numerous markets.
● Flat packaging makes the shipping easier and also
straightforward to them to assemble at home. And it also
offers the good consumer experience.

● IKEA can do more by expanding its markets in Asian and


African countries because it does not have many stores in
south Asian countries but the Asian countries like Pakistan,
Bangladesh, India, Sri Lanka, have furniture markets.
Especially the furniture market of Bangladesh is extremely
large but with its low-price strategy the IKEA can beat any
competition, otherwise China, Africa can be profitable for
IKEA.
● The IKEA can use social media to reach more and more
consumers and also increase the product awareness
globally.
● IKEA can even use more technologies and will make eco-
friendly products to further increase their
Answer;
While being believed the statement that IKEA has somehow
changed the way people shop for furniture the European
consumers haven’t find any difficulty in DIY strategy but in China
and plenty of others where people to pay some amount for home
delivery and assembly. So, IKEA plans per the choices and
requirement of various countries and their culture so it has added
this service in China and thinking to feature it in India also.
Here are some pros and cons of their strategy,
PROS:
● Ikea’s low-cost strategy maintains it ahead of its competitors
within the furniture retail market.
● Ikea offers the high-quality product with low cost.
● It offers the products according to the requirement of
various markets.
● Ikea also arrange or label its items in a way that it could be
easily recognize by buyers.
● IKEA display the massive range if items and also design the
showrooms in such a way that buyers can see everything in
one place.
● They offer the low prices to customers because of their low
cost.
● Its products are accessible everybody.

CONS:
● Consumers may find the difficulties in self-assembly.
● The societal trend’s shifting can affect the sales of IKEA.
● Designing the stores might be overwhelming so, consumers
don’t know where to begin.
● Anything that causes its cost to high the prices of the
products increase. that may also affect the sales growth of
IKEA.
CASE # 02 (chapter # 02)
EMIRATES

QUESTION #01

Answer;
Emirates is one of the largest airlines in the middle east which
is operating over 3300 flights per week from its center Dubai
international airport.
The success of emirate may be through a mixture of marketing
mix as emirates emphasized product, equipment and excellent
services and promoted a high-quality image which provides a
good customer service.

Dubai government offers an open sky policy that allows a free


access to airlines such as gulf air, Etihad airways, Qatar airways that
enables Emirates to compete openly with them.
Thus, by lean resources, high employee satisfaction, getting
support by the Dubai government high customer loyalty and by
being innovative with the time, the emirates have been able to
build strong brand value in the competitive market.

Answer;
No doubt emirates have built strong brand in the competitive
airline industry but the corporate remain not without the faults
some apparent weaknesses,
● They are overconfident about their position and they
overlook to their marketing strategy.
● They ignore their competitors.
● They are doing no research on pros and cons of their
competitors.
Such as gulf air also signed up on free sky policy and now
are ready to compete with emirates with the identical
quality of services at competitive prices.
● Emirates only targets the elite class people which could
become a threat for them as if people receive same
services with low prices, they will go for it.
How can they address them?
Emirates address their weaknesses by taking its
competitors in to consideration by developing strategies
to compete strongly with them.
● By improving inflight services.
● They have to develop new products like private suits
● The company should become a shareholder in the Airbus
or Boeing companies as improving and developing
products showing high investments.
● They can offer packages for non-premium class.
● They can extend their route
Answer;
The business strategy of emirates can be affected in following
ways by the decline of fuel prices globally,
● It might be in favor of company because it can now follow
the cost cutting strategy and can target more consumers.
● the cost-conscious customers can now be targeted by
them.
● To reduce the fluctuation in prices, risk the company can
store the fuel earlier for 6 to 24 months by buying jet fuel.
● When the customers increase, so the profit will also
increase so company can invest more on planes and
goods in order to continue the generation of profit
margin in future.

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