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“To create a better everyday life for the many people”
Marketing Strategies
Product
- IKEA designers design every IKEA product starting with a functional need and price
- Vast knowledge of innovative, low-cost manufacturing processes to create functional products often coordinated style
- Then large volumes are prepared to push prices down even further
Place
- Metro cities – Delhi NCR, Mumabi, Chennai, Kolkata, Bangalore
- Tier two cities- Hyderabad, Ahemadabad, Pune Surat, Jaipur
- Shopping malls
– Offers easy access to target population
– Offers movies, restaurants, playgrounds that attract potential customers
– Common activity for leisure time to go to shopping centres
Price
- Maintain the value proposition as a low price furniture store
- In India, offering competitive price with branded competitors
- Internationally, IKEA’s prices are 30-50% lower than competitors but in India, given the intensive competition in price IKEA could maintain a 10-15% advantage
- Three basic price ranges and styles
- Within each price range, the company would survey the competition to establish a benchmark and then set its own price 30 or 50% lower than those of its rivals
- Separate matrix for each product type IKEA sells that is price matrix for sofas, tables, chairs
- Matrix will used to identify gaps in the company’s product line up
- By plotting company’s current product offerings on the grid and looking for empty spaces, product managers can identify market opportunities
Promotion
- Promote as a fashionable brand for home
- Traditional and Non-traditional methods used for promotion
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