Marketing Mix of IKEA:
IKEA is a world famous brand of affordable home furnishing products. As of August 31, 2016, the brand had 340 stores operating across 28 countries. Apart from its affordable products, the brand is also known for great quality and matchless designs. When it comes to design and quality, IKEA is known for its passion and for managing low prices while providing products that are unequaled in beauty. So, IKEA has brought a great match of quality and prices for its customers. Everybody wants to have a beautiful home and decorate it to the best of his capability. However, to afford designer furniture and great looking home furnishing products is not possible for all.
In this sense IKEA is no less than a boon for the middle class customers who are looking for affordable products that are good in quality. The product range of IKEA is equally vast. It sells more than 9500 products from its stores which are designed to provide a matchless shopping experience. IKEA mainly targets the middle class. However, it has used unique and innovative methods to market its brand and to grow its market presence and customer base.
Here is an analysis of the marketing mix of IKEA that analyses the four P’s in its marketing mix – Product, Place, Price and Promotion.
The range of products sold by IKEA is quite vast. Its vast product range includes nearly everything that you would need or want to furnish your homes. Apart from being wide in terms of function, the product range is also wide in terms of styles. From several types of home furnishing products, you can find an equally wide choice of styles at the IKEA stores. These products are primarily focused at the tastes and needs of the customers. So, the product range varies from one country to another. IKEA brings product to the local market after researching the local cultures and people’s lifestyles.
There are products for every kind of customer at the IKEA stores from the romantic to the minimalist. Irrespective of your preferred style, there is always something that matches your style and choice available at IKEA. While good quality products are found in the market for high prices generally, at IKEA such product s can be available at affordably low prices. However, that does not mean that the raw material used is of cheap quality. IKEA relies on design innovation to bring only great quality and beautiful designs to the market and its stores. It has developed cost efficient and innovative methods to match people’s expectations of price and quality. Its wide range of products includes the following product categories:
- Outdoor furniture
- Baby & children’s products
- Bathroom storage
- Beds & mattresses
- Clothes storage
- Leisure & safety products
- Sofas & armchairs
- Small storage
- Kitchen cabinets & appliances
- Textiles & rugs
- Storage furniture
- Swedish food
- Wireless charging
- TV & media furniture
- Tools & hardware
IKEA is present globally in 28 countries where it sells its products from its 340 stores. Traditionally, its stores were located on the fringes of the towns to provide people with a calm and relaxed environment for shopping. However, recently it has altered its strategy and adopted two new store model that are located inside the towns in busy areas. Its smaller stores located inside town display a limited range of products. There are bigger stores at city centers that display a larger range of products. Apart from them it has introduced pick up points for customers placing orders online.
Its online sales have kept growing through years and in 2016, they took a substantial leap. To make its brand even more accessible, the brand has also decided to increase the number of pick up and order points. Its ecommerce model is available in 14 of the 28 countries that IKEA operates in. However, the most important part is how its stores are design. These maze like stores are so beautiful and cozy inside. There are cafes that serve affordable but good quality food. Model homes inside these stores are a good source of interior decoration ideas for the customers.
When it comes to pricing, IKEA has got its strategy perfect. At the deep discounters like Aldi one may come across even lower prices. However, the IKEA customers are generally more satisfied with the prices they are paying. It is because of the quality. IKEA matches prices with product quality. IKEA products are not expensive but they are not too cheap either. It also uses flat packing to save on the shipping costs. Still, when compared to the competitors like West Elm or Bed, bath and Beyond, the IKEA products come at much affordable prices.
IKEA markets its products using several channels. However, the chief tool used for marketing communication is the catalog. It publishes and distributes different catalogs in different markets. These catalogs can also be found online and accessed through an app. Apart from it, IKEA utilizes other channels including both traditional and digital to market its brand. Social media is also an important tool used by IKEA for brand and product promotion. From time to time it has also used public relations campaigns to gain publicity and increase popularity. However, the digital channels are now more in use for promotion and advertising. In 2016, there were around 2.1 billion visits to the IKEA website and 110 million visits to the catalog and store apps.