Prezentacja na Angielski

BIBLIOGRAFIA

https://www.researchgate.net/profile/Mohammed-Alzghool/publication/
346059671_An_evaluation_of_IKEA%27s_global_position_and_marketing_standing/links/
5fb94628458515b7975d11a8/An-evaluation-of-IKEAs-global-position-and-marketing-
standing.pdf?
origin=publication_detail&_tp=eyJjb250ZXh0Ijp7ImZpcnN0UGFnZSI6InB1YmxpY2F0aW
9uIiwicGFnZSI6InB1YmxpY2F0aW9uRG93bmxvYWQiLCJwcmV2aW91c1BhZ2UiOiJwd
WJsaWNhdGlvbiJ9fQ

https://www.researchgate.net/publication/
377614198_Analysis_of_the_Mechanism_for_IKEA_to_Improve_Its_Brand_Reputation_Thr
ough_Integrated_Marketing/fulltext/65afb6769ce29c458ba8d776/Analysis-of-the-
Mechanism-for-IKEA-to-Improve-Its-Brand-Reputation-Through-Integrated-Marketing.pdf?
origin=publication_detail&_tp=eyJjb250ZXh0Ijp7ImZpcnN0UGFnZSI6InB1YmxpY2F0aW
9uRG93bmxvYWQiLCJwYWdlIjoicHVibGljYXRpb25Eb3dubG9hZCIsInByZXZpb3VzUG
FnZSI6InB1YmxpY2F0aW9uIn19

Today, we are going to explore IKEA’s marketing. In the next minutes, we will dive into some
interesting methods using by the Swedish retail giant to not only attract customers but also
establish a distinctive global presence and maintain a highly competitive position in the
furniture and home décor market.
IKEA’s success is a testament to its innovative marketing strategies. The research “An
Evaluation of IKEA's Global Position and Marketing Standing” conducted by Mohammed Al-
Zghool introduce the using of tools like Ansoff’s matrix, SWOT analysis and Pestle to outline
how external factors influence the Swedish retailer’s operations.
Through the first used tool Ansoff’s matrix determinate techniques to indicate how IKEA gain
and retain market shares.

 Market penetration (by using a strong brand name and is selling cheap standardize but
high-quality product with a range of innovative design)

 Product development (by developing a bunch of new products to sell, they reveal more
than 2000 new product each year)

 Market development (by focusing on gain in advantage over the competitors by

increasing investments in technological solutions and consumer engagement, for
example: Ikea family card

 Diversification (by developing new product to sell to new markets and creating
restaurant and children play areas)

The second tool, SWOT Analysis which is a compilation of the company's strengths,
weaknesses, opportunities, and threats to help organizations develop a full awareness of all
the factors involved in making a business decision.

Strengths:
 Innovative and functional designs, along with standardized products, contribute to
customer appeal.
 IKEA's long-term planning and huge automated distribution centers ensure efficient
operations.
  The company's ability to furnish entire homes and adapt to local market tastes
enhances its competitiveness.
 IKEA demonstrates an aggressive approach to sustainability and maintains cost
leadership through economies of scale.
 Strong franchising system, long-term supplier relationships, and direct interaction
between design and manufacturing teams bolster IKEA's global brand.

Weaknesses:
 Weak marketing, advertising, and promotion techniques limit brand visibility.
 Poor balance of low-cost products and quality, along with high delivery and assembly
prices, hinders customer satisfaction.
 Limited visibility and remotely located stores may deter potential customers.
 Relatively complicated furniture assembly process poses a challenge for some
consumers.

Opportunities:
 Opportunities exist for IKEA to improve brand visibility and strengthen marketing
activities.
 Enhancing the online shopping experience and offering furniture assembly training
platforms can attract more customers.
 Growing demand for greener products and low prices presents opportunities for
IKEA's expansion.
 Potential for worldwide expansion, particularly in research and development (R&D)
and innovation.

Threats:
 Emergence of substitute products and increased competition pose threats to IKEA's
market share.
 Increased trade barriers, shifts in consumer tastes, and shortage of skilled workforce
may impact operations.
 Damaged reputation due to incidents, lack of differentiation, and rising costs of raw
materials pose significant challenges.
 Global economic and financial crises, as well as economic impacts of events like
COVID-19, can adversely affect IKEA's business.

Finally, the third tool revealed is the PESTLE Analysis which stands for political, economic,
social, technological, legal, and environmental. It is an analytical tool available to companies
to determine how external factors influence their operations and make them more competitive
in the market.

Political:

 IKEA's operations are impacted by the political climate in countries where it operates.
 Exporting goods to countries with stable political environments is favorable, while
political instability can disrupt operations.
 Considerations include attitudes towards foreign brands, corruption levels,
bureaucracy, and political events.
Examples: Political tensions between Taiwan and China, India's "Make in India" initiative,
and implications of Brexit.
Economic:

 Economic factors influence IKEA's operations and profitability.

 Favorable economic conditions in target markets can drive consumer spending on
home goods.
 Economic instability, corruption, and bureaucratic hurdles can pose challenges.
Examples: Economic policies affecting foreign investors in India and economic uncertainties
related to Brexit.

Social:

 Cultural differences impact IKEA's marketing and product offerings.

 Cultural sensitivities, such as attitudes towards gender roles and LGBTQ+ issues,
must be considered.
 Challenges include marketing materials translation and adapting products to local
cultural norms.
Examples: Adapting marketing strategies to respect Islamic cultural norms regarding women's
portrayal.

Technological:

 Technological advancements shape consumer preferences and market trends.

 Demand for online sales platforms, mobile applications, and AI integration is
increasing.
 IKEA must innovate to meet consumer expectations and enhance operational
efficiency.
Examples: Implementing online sales platforms and incorporating AI and robotics in
warehouses.

Legal:

 Compliance with diverse legal systems and regulations is essential for IKEA.
 Considerations include safety standards, labor laws, and sourcing requirements.
 Legal frameworks vary by country and can impact supply chain management and
production processes.
Examples: Indian regulations requiring sourcing a percentage of inventories locally and labor
rights legislation.

Environmental:

 Environmental sustainability is a core focus for IKEA and aligns with consumer
preferences.
 Increasing consumer awareness drives demand for eco-friendly products and
responsible corporate behavior.
 IKEA must address environmental challenges such as pollution, climate change, and
resource conservation.
Examples: Using recycled materials, promoting renewable energy sources, and reducing
carbon footprint.

Entering new markets poses challenges for IKEA due to brand visibility issues, market
conditions, and varying regulations. Key focus areas for IKEA should include enhancing
marketing activities, expanding online presence, promoting sustainability, respecting cultural
differences, establishing long-term relationships with intermediaries and suppliers, investing
in automation and innovation, developing local workforce, and engaging in CSR initiatives.
These strategies aim to increase brand visibility, capitalize on online sales, and address
environmental and social responsibilities while leveraging strengths and mitigating
weaknesses.

IKEA’s Marketing Mix (4Ps)

Product:
 IKEA offers 12,000 products, introducing nearly 2,000 new and innovative items
annually.
 The company aims to make all products 100% circular by 2030, utilizing renewable
and recycled materials.
 Besides furniture, IKEA also provides services, including restaurants and playgrounds.
Price:
 IKEA follows a cost leadership strategy without compromising on quality.
 Cost reduction techniques include economies of scale, smart designs, top-down
pricing, flat packaging, and long-term supplier relationships.
 The company leverages smart technology, research and development, and innovation
to maintain low prices.
Place:
 IKEA operates 433 stores in 50 countries, typically large showrooms located out-of-
town, featuring restaurants, food shops, Swedish markets, and children's play areas.
 The supply chain involves 1,800 suppliers across 50 countries, supported by 42
trading service offices worldwide.
 Approximately 22% of products are produced in China.
 IKEA also has a strong digital presence with online purchasing and active social media
engagement.
Promotion:
 IKEA's brand emphasizes affordable prices.
 Promotional activities include traditional channels like physical and online catalogues,
television, and newspapers.
 Digital promotion channels include various social media platforms, sponsorships, and
critical reviews by journalists.

The research “Analysis of the Mechanism for IKEA to Improve Its Brand Reputation Through
Integrated Marketing” conducted by You you Chen, Gefan Wang, Xinyi Zhang outlines the
IKEA’s Marketing Advantage and Effects including unified product style which can be visible
by the color combination. Warm and bright color gave an advantage to create a solid a
psychological connection with the client.
Moreover, IKEA’s very large supply chain helps to reduce the cost and time of new product
development introducing new products earlier and helps to obtain higher profits.
Pricing strategy is set to make product cost-effective. So, IKEA can produce for a low coast
and sell for a good value avoiding losing money.
By adopting flat packaging, IKEA reduce product prices by maximizing the space in freight
trucks. This method allows them to transport six times more products compared to regular
packaging. Since IKEA's product components come from different regions, logistics is their
biggest expense. Flat packaging helps cut these costs significantly. For example, IKEA
redesigned a coffee cup tray to hold 2024 cups instead of 864, reducing transportation costs
by 60%.
IKEA's "experiential marketing" allows customers to try out furniture in realistic, fully
furnished sample rooms in their stores. This hands-on experience, such as lying on beds or
exploring designed cloakrooms, helps customers see the practicality of IKEA products and
often leads to increased sales.
With the digital economy's growth, IKEA launched a major transformation in 2019,
introducing a shopping app and online flagship stores. The app, featuring product categories
and AR technology for room design, follows IKEA's minimalist style. Their social media
efforts have gained significant followers on Weibo and TikTok in China, but further expansion
is needed.

CONCLUSION OF BOTH ARTICLES:

Despite IKEA's global leadership, competition is fierce. IKEA should continuously evaluate
their environment, leverage strengths, address weaknesses, and mitigate threats. Strong
branding, sustainability, cost leadership, and customer satisfaction are crucial but not enough.
Enhancing visibility, online operations, and marketing efforts is essential.

IKEA is on the right path towards sustainability but needs to improve visibility and
promotion, especially through social media targeting millennials. Simplifying furniture
assembly, sponsoring causes, and creating in-store coffee shops can boost brand visibility and
enhance the shopping experience. Providing free shuttle buses from city centers to stores
could attract more customers. Opportunities in sustainability, innovation, R&D, and
technology should be further explored.

This study underscores IKEA's effective dual marketing approach but is limited by its reliance
on the 4Ps theory and a focus on current development. Future research should use diverse
theories and samples for a comprehensive analysis.