Essay on Marketing Strategy Of The Brand Ikea
IKEA is a multinational company that manufacture and sells furniture and home appliances. It was Founded by 17-year-old Ingvar Kamprad in Sweden in 1943. The founder was listed as one of the world 's richest people in 2013 (Patrick Chu; Robert LaFranco (June 2013). The company is well known for its state of the art designs for various types of appliances and furniture. Moreover, the firm is also known for its continuous product development and cost effective products. As of January 2008 It is the world’s largest retailer in furniture industry (Zuvela, Maja (8 January 2008). Germany is the biggest market of IKEA with its 50 stores and on second united states with 42 stores. In Australia, Ikea is operated by two companies INGKA Holding and Cebas Pty Ltd under franchise agreement with Inter Ikea Systems.
“Market segmentation is the process of splitting customers, or potential customers, in a market into different groups, or segments, within which customers share a similar level of interest in the same, or comparable, set of needs satisfied by a distinct marketing proposition” (McDonald & Dunbar, 2004). Segmentation is mostly done on the basis of the income level, class and status of the people in the society and also by the tastes and preferences of the people which includes the behavior, lifestyle and psychology of people as well. Ikea’s strategy is to offer quality furniture at cheap prices so they focus on different…