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Marketing Strategies

​Product

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  • 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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