Monday, November 4, 2019
IKEA marketing concept Essay Example | Topics and Well Written Essays - 2000 words
IKEA marketing concept - Essay Example Information on what encompasses a target group is crucial in coming up with ideal market segmentation. Characteristics such as lifestyles, language, climate education background, gender, family size, race, nationality, interest and religion of the target group helps in the segmentation process. The market segment in the target market of IKEA Company is accessible, measurable, profitable and market responsive. The target market is mainly located in urban centers. This has made the company to open most of its outlets in urban centers for easy access. The products are designed to meet the needs of both the middle and wealthy. The market segments of the target market are quantifiable in terms of the estimated population size and the estimated disposable income. Generally, the large size of the market segment and their average disposable incomes promises good returns. The target market has in the past shown some positive response to the products. Penetrating the market space will require communicating to the market segment in a way that corresponds to their relevant needs. Every market segment has distinct characteristics such as lifestyle, fashions, tastes and preferences. Communication based on these characteristics can help to reach out to a wider market base. IKEA Company utilizes catalogues and advertisement through the mass media to penetrate the market segments. The diversified commodities which are of different styles, tastes and fashions are the key to the penetration of the market space. Maintenance and protection of the market space requires the company to constantly review on the customersÃ¢â¬â¢ needs. To oversee this, the company has customer success...It also stands for the competitive prices offered by the price leader. IKEA Company cuts across the diverse cultures of different countries and so the brand represents the meeting point where global tribes that mind the cost and design converge. The shopping premises of the company are similar and share similar architectural designs and interior designs. They are easy to recognize to its distinct yellow and blue coloration. These combinations make the IKEA a strong global brand. The weakness of the companyÃ¢â¬â¢s brand is that it is rarely seen and most unknown. The companyÃ¢â¬â¢s activities are largely concentrated in some countries especially in Europe. The brand is therefore popular and frequently seen within these countries. For the citizens of these countries, it is rarely seen and to most, it is absolutely unknown. This implies that the company has not fully penetrated the target market. There is the potential unexploited market space. The competitiveness of the brand can be heightened by creating awareness of the brand existence in the unexploited areas. Awareness could effectively be done by use of mass media that reaches most people in a continental level. It can also be done through international trade exhibitions that bring international communities together. Sponsoring international activities such sport can also be opportunities of reaching out potential buyers.