Executive Summary Of IKEA
Ingvar Kamprad founded IKEA in 1943 and now in the world they have 345stores in 42 countries.
IKEA an organization sells low-price products at 345 stores around the world including 41 in the USA. The first IKEA store opens in USA is in Philadelphia in 1958. Although the organization was uncertain that USA needed IKEA at first or not, sooner they founded that they are useful at everywhere. IKEA vision is “To create a better everyday life for many people”.
The top 5 selling countries of IKEA product is Sweden(5%), Russia(7%), France(9%), United States(12%) and Germany(14%).USA furnishing import cost $19billion in 2009 and increase to $26billion in 2013.In USA, IKEA has a potential to enlarge their market to whole city in …show more content…
We do our part, you do yours. Together we savemoney”.No matter where in the world its suppliers are, IKEA is alwayscommitted to long-term cooperation and does its best to cultivate close andcordial relations. Figure 1: Revenue and Operating Income Margin of IKEA from 1954 to 2011
3.0 Segmentation bases applied by IKEA and target market
Market segmentation is categorizing potential consumers into smaller groups according to their individualities and mutual needs.Using different bases can divide the market into Demographic Segmentation, Geographic Segmentation, Psychographic Segmentation and Behavioural Segmentation these four segmentation strategies.
Clearly market segmentation strategies will create a market to cater to groups of individuals that will sort economic sense to mass produce and allocate. Target market is a certain market segment at which a marketing campaign such as certain service or product or to increase customer alertness is concentrated.
Market segmentation is a very important element to lead marketing strategy to successful and also company’s success. Although consumers within the same geographical group they may have different needs. So, IKEA has to draft various plans to manage customers’ demands.
3.1 Demographic Segmentation and IKEA target …show more content…
From this figure can realize that Europe take account that sells the most of IKEA products because inside this 5 countries have 4 of them is Europe countries. Figure 2: Leading 5 selling countries of IKEA products in 2013
3.3 Psychographic Segmentation and IKEA target markets
Based on lifestyle, social class, mental or emotional, value and needs of consumers. Consumer selections and the reasons that they will lean towards a product more than others are affected by their interest, thoughts, attitude and more psychology elements.
IKEA targets customers with a “do it yourself and save money doing it” kind of lifestyle and who are regarding to profit from the value of the products. Even though IKEA’s products do not have the best quality of the furniture, it has a great value of its low prices.
3.4 Behavioural Segmentation and IKEA target markets
Based on consumer’s needs, subsequent response and attitude after consume. The market can be divided into several based on occasions, usage rate, usage status, loyalty, readiness and behavior towards