Ikea is known for its modernist approach and unique style of stores. It is a conglomerate that sells DIY kinds of products, the company is known for its simplicity and exclusivity. It is a market leader in the furniture industry and is also known for sustainability.
In this blog, we will see the marketing mix of Ikea incorporating the 7Ps.
IKEA is a Swedish multinational company and is also the world’s largest retail store that designs and sells ready-to-assemble furniture, home, and kitchen appliances along with other services. IKEA has over 378+ stores across the world with its presence in more than 30 countries.
Once you enter IKEA it is a different world and there’s no going back. The company has unique marketing techniques that explain how it managed to attract such large customer attention and a high position among top market leaders in such a short period.
Now that we know the company, let us understand the target audience of the company.
Target Audience of Ikea
Ikea targets cost-conscious people who have a limited budget for their furniture and house decor. It also focuses on creative people who like to explore unique and innovative products. The company focuses on high-quality products with low costs and cuts its cost by eliminating intermediaries.
Company stores are huge and have diverse products to attract customers and they have something for everyone. Various customized products are also available for a feeling of personalization. Hence, the company has a large target market due to its diversification of products.
Now that we have a clear idea of the company and its target market, let us understand the marketing mix of IKEA in detail.
Marketing Mix of IKEA
A marketing mix can be referred to as a set of tactics and actions used by a company to promote itself and its products in the market. There are 7 components to it – Price, product, promotion, place, people, process, and physical evidence. Together they make up a marketing mix.
Ikea is known to sell a wide range of products( goods and services) that cater to a large segment of consumers. The vast range of products includes everything that you might need or want to furnish your homes with. IKEA focuses on the principle of what the customers need and sets its stores in locations that have a target audience for their products. Generally, big metro cities have the largest IKEA stores with commendable sales.
Let us view each of the 7Ps of IKEA’s Marketing Mix:
1. Product Strategy of IKEA
IKEA has always come up with unique ways to cope up with the dynamic business environment. The product line of IKEA includes the following items in its product portfolio:
- Furniture (outdoor, indoor, storage)
- Baby & children’s products
- Bathroom and kitchen appliances
- Technological products
- Tools & hardware and safety products
- Home decor
- Textiles & Rugs
- Decoration and lighting products
The company’s product range is around 10,000 products and around 2000 new products are launched every year. It still has managed to keep its prices under control and it all lies in the company’s strategy and its excellent management system. The above-mentioned products have further extensions and varieties as the product list at IKEA never ends.
2. Price Strategy of IKEA
IKEA has got a unique pricing strategy. The customers are satisfied even when they have to pay higher prices because of the quality being provided to them. The product quality matches the prices being charged. The prices are accurate, and if compared to competitors, the products at IKEA have more affordable prices. Cost-cutting methods such as flat packing are also used to reduce shipping costs. At IKEA, not only the prices are affordable, but also freebies are allowed at the IKEA restaurants.
3. Place Strategy of IKEA
IKEA is a global brand having outlets across 30 countries. Generally, the stores are located on the outskirts of town to provide a hassle-free environment to the customers for shopping. However, in recent years IKEA has altered its strategy and adopted a new model for stores that are located in towns and busy streets. In these stores, a limited range of products is displayed.
Online sales have been increasing through the past years and a new feature of pick up points has been added to benefit the customers. The most important point comes to the design of the stores. The stores are designed in such a way that they will convince you to stay longer and spend more time there. The interior makes you feel cosy and comfortable and the restaurant inside is a cherry on the cake. They serve affordable yet good-quality food. Also, the interior provides great ideas for home designs to the customers visiting the store.
4. Promotion Strategy of IKEA
IKEA uses several different channels to market its products. Its marketing strategy is so successful because it is original, distinctive, and beyond all, it maintains a clear value proposition. Each idea is curated carefully to support its brand identity and provide the best experience to customers.
- The company uses a steady and easily recognizable theme that covers its product names and its colour scheme.
- Mixed-and-matched products are available to match each customer’s peculiar style and needs.
- Products offer mass-market affordability and reusable durability.
- Sponsored content with creative partners expands the brand’s appeal to new demographics.
- All the items are outlined in a way that’s made to inspire the customer’s vision.
- IKEA is participatory, and people are encouraged to take the ideas and run with them.
- The company leverages the latest technology to provide cutting-edge experiences consistent with its quintessence.
IKEA also uses social media as a platform to promote the brand itself and its products. However, the main tool used for improving sales and brand promotion is the catalogue. Both offline and online methods are used to market the brand. It also hosts public campaigns to increase brand popularity and to gain more publicity.
5. People Strategy of IKEA
Employees at Ikea are trained with special techniques to help customers understand the product. The sales team plays a major role for the company, they are trained to be straightforward with the customers with a passion for home furnishing.
Suppliers are also an important part of the company as they are the ones who come up with creative and innovative ideas for the products. The company has simplified the renewability idea for people which has built the brand image of Ikea. The employment base of the company has increased with time and it has a very positive relationship with its employees.
6. Process Strategy of IKEA
Ikea has a huge product range and the company is present across continents. The company makes its own wood for furniture, owning mills, and produces high-quality products. It has its own production house with developed technologies that incorporate the idea of sustainability and renewability with it. It also has a giant supply chain in which it obtains products from suppliers and delivers them to final retail stores or delivers through the online channel. The company gives its own guidelines and code of conduct to manufacturers which ultimately benefits the company to reduce the final checks.
7. Physical Evidence of IKEA
The major physical evidence of the company is its huge outlets and stores, these stores have paths marked inside which directs customers to different sections. The stores are so made that customers remain busy within the store and visit each section of the store. They are also equipped with restaurants for snacks and babysitting areas to comfort the customer. Most of the stores of Ikea are located on the outskirts of the city to have large spaces for parking and the store also.
IKEA is one of the biggest companies in the world that has a reach over various sectors and provides world-class products at affordable prices. It caters perfectly to the customers and the industry. The way it has used every element uniquely has built the brand identity. With continuous efforts, consistent market promotions, and diverse products IKEA is set to reach more heights shortly and reach a higher position in the market with the impeccable marketing mix.
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