Jenna September 2, in Startup Marketing Leave a comment The other day I was leading a meetup centered around lean approaches to marketing mainly centered around technology.
Y concept which makes them the sovereign furniture retailer in the industry. In this report, the first scope of the discussion will be accentuating on the segmentations and target market segments on how IKEA is based according to their company standards with different approaches and ways of adopting the concepts.
Thirdly, the customer value on IKEAs and will also focus on the three strategies that they have adopted and the way they create.
As they have become popular over the years through having quality and affordability products. He had always wanted start off his own business whereby having a strong determination within himself to construct his own management resources of being independent during his upbringing in various events.
He first started off as a young entrepreneur by propagating and selling goods at a distinctively reasonable price at the age of By deriving the initial letters of Ingvar Kamprad and of Elmtaryd and Agunnaryd is how it was name. InIngvar Kamprad starts exploring innovative solutions such as self-assembly, furniture design and advertising.
The expansions of their business were so successful and popular was mainly due to their unique creations with affordable priced furniture. IKEA published their first annual catalogue in Sweden. The first showcase was open in at Kronoberg County, Sweden.
Customers can assess and experience the quality of products before ordering. It covered 6, meters and became the largest furniture display in Scandinavia.
The coincidence of the Swedish Root that IKEA logo adopted is designed with the colours of blue and yellow where the colours are representing the Swedish flag.
Following their flagship store in Stockholm, Sweden, this covers the radius of 45, square metres.
IKEA outlets normally feature caretakers and playrooms for children while their parents can shop freely to their comfort and a Swedish cuisine cafeteria to meet the customers hunger needs. On the facts, the best method to signify the home furnishing style in Sweden is to describe the nature in which IKEA adopted in due of representing the furnishing standards with radiant while containing the modest approach in their product.
The first theme will be discussed on the location statistics where customers are based. The third theme will be on the subjective attribute based on their traits and individual lifestyle and demands. The fourth theme is focused primarily on the attitudes of customers of what beneficial purpose they make their purchases, how often they tend to buy and why they had choose to buy the products.
Demographic segmentation consists of the individual age group, gender orientation, based on family life-cycle, occupations, income level of a single customer and the society interaction level in conjunction with the economic factors.
Females of average age of 38 visited IKEA the most. Whereas for the segment that includes shoppers that shop IKEA for the first time and students, these consumer segments are more price conscious due to limited budget spending and value for money products.
The table below illustrates the four different target market segments in accordance to the Demographical Approach: Table 1 Target Market Categories Action taken by CustomersYoung adults and Middle-aged group Manageable financial capabilities, acceptance of new products and innovative concepts Office workers Students Budget limitations and sensitivity in price being offered Furniture shoppers First-Timers Parents pay more attention to their child physical and cognitive response.
In Europe and North America, the customers would rather choose their products simple and natural in design but when furniture durability started to wear-out, the furniture can be substitute at any point of time in accordance to their own preference along with their lifestyle trends and demands.
However in Asia, customers have chosen of home decoration pursuit of the luxury lifestyle, in particular in the decision to purchasing bulky furniture. The income ranges from the low income, middle income group and the high income category that IKEA divided into. They ascertain that in Europe and the United States, the strategic market are mainly focused on for the lower income category and the middle income families in these region, of their affordable pursuit.
Occupy a clear market positioning of products or services, the unique and desirable place relative to competing products in the minds of targeted customers. Customer value and satisfaction are very important parts to the success.
Consumers tend to make purchases from the firm that they choose believe in comparison of the offers made to their desired value.
IKEA engaged their own designers from different countries and culture to design their products. The design and every product produce are based on market research. For example, different countries have different culture with different preferences.
IKEA have met the needs of 3 different price ranges as well as 4 basic styles. The second scope would explain the range of product is vast in their functionality and different concepts adopted at all times.
Regardless of which individual style that suits according to consumer preferences, there is bound to have suitability products for every households. In the market, any retailer are able to produce a better quality product for a competitive price in the market compared to a poor-quality product for a low price.
However, in order to produce excellent quality being offered, the necessity of developing methods that are offered in both cost-efficiency and innovative aspects which leads to why IKEA approach their own strategy in a different way that restricts competitors from competing against them.IKEA’s major products are furniture, such as kitchen modules, bathroom facilities, lighting equipment, sofas and textiles.
(IKEA, b) It has outstanding quality and a special name to every product, and offers a wide range of home furnishings with best aesthetic designs and functions at reasonable prices. IKEA Geographic segmentation Where is IKEA mostly placed?
Demographic segmentation Typical market for who? Various target groups Promotion Psychographic segmentation Problem recognition. Messaging: We all get our furniture somewhere, make yours Ikea. 2. Confident singles. Messaging: Be you in your home. Help us be you.
Now, all of these are made up off the top of my head, with really not much thought to Ikea’s positioning, but they exemplify the importance of segmentation.
IKEA Geographic segmentation Where is IKEA mostly placed?
Demographic segmentation Typical market for who? Various target groups Promotion Psychographic segmentation Problem recognition. A new look at segmentation: Put the customer in the picture I'm a big fan of IKEA, among the most successful retailers in the world. Every time I'm in one of their stores, I .
Segmentation, targeting, positioning in the Marketing strategy of IKEA – Demographic, psychographic & geographic segmentation is used by the company to segment the market to cater to the changing market dynamics of home furnishing, Kitchenware & appliances industry.