Ikea Marketing Mix
Product:
In order to make more people recognize and accept IKEA’s brand, Ikea pays attention to meet the needs of its customers and potential target, meanwhile, IKEA understands the potential of this target market, so that it offers various choices to the clients. On the other hand, IKEAs catalogue shows its different advanced ways and delicate components to assemble all kinds of household furniture, such as : desks, mirrors, bathroom storage, beds& mattresses, chairs, lighting, etc. IKEA also provide showroom with some combination of the 10960 products in its global market, so customers feel special shopping experience in IKEA. (FAQ: How many products are in the IKEA Range, 2011). In order to reduce the cost of production, IKEAs designers decided to use different materials to produce different components, for example, IKEA tend to use high-quality materials on the visible surface that it most likely to support the product, and lower-quality materials on less visible surface with low stress. (Moon, Y.,2004). IKEA also put combinations of products into a flat box to deliver to customers. This “flat-style” can save customers delivery fee and make it easier to ship. (the companys slogan was, ” We dont want to pay to ship air”). (Lisa Margonelli., 2002). Because IKEAs mission is to change the furniture to experience different lifestyle, most of its products are designed. Therefore, IKEAs various furniture items are cheap and designed.
Price:
Because large-quantity purchasing reduces logistics cost and IKEA is very concerned about cost performance, IKEA sells its furniture at low prices that are 30% to 50% lower than competitors commodities. Low price strategy helps IKEA to gain the market share and make its brand popular. IKEAs marketing mission “low price with meaning” claim that its product are not only cheap one but also functional and creatively designed one. Customers also help IKEA save money, because the “flat-packaged” box makes customers involved in the whole process of self-service.
Place and Position
Ikea chose suburban areas to build its stores. This position strategy is suitable for its corporate mission—low pricing. But it may make customers take longer time for purchasing and transportation. IKEA’s stores are self-service warehouses in America, customers find furniture and pick it up by themselves in the warehouses. It also has some showrooms, it looks like a big super market.
Promotion
IKEA use TV, blog, Web site and catalog to advertise its products and store location. IKEAs catalogue is the most representative promotion method for the client. This catalog introduces its selection products, combinations of product and discount products