IKEA’s Innovation and Marketing Strategy: How They Gained a Competitive Advantage
1. Introduction
This essay will analyse the marketing strategy of IKEA. The company was founded in Sweden in 1943 and it is today one of the biggest home furnishing retailers in the world with stores in more than 40 countries (IKEA, 2016). What has made IKEA so successful? A big part of the answer lies in their strategies and how they have been able to gain a competitive advantage over other companies in the industry. In this essay, we will take a closer look at IKEA’s innovation and marketing strategy and see how it has helped them become one of the leading retailers in the world.
2. IKEA’s Innovation and Marketing Strategy
IKEA has been very successful in recent years due to their innovative and effective marketing strategy. Let’s take a closer look at some of the key elements of their strategy:
– 2.1 Product Development
IKEA places a great emphasis on product development and they are constantly trying to come up with new and improved products that will meet the needs of their customers. One of the ways they do this is by carrying out customer research and using this information to develop new products that are specifically designed to meet the needs of their target market. Another way IKEA innovate is by looking for new and improved production methods that will allow them to produce high-quality products at a lower cost. This helps them to keep their prices competitive while still maintaining a high level of quality.
– 2.2 Promotion Activities
Another key element of IKEA’s marketing strategy is their promotion activities. They use a variety of different promotion methods to reach their target market and they are always looking for new and innovative ways to promote their products and brand. One of the ways they promote their products is through advertising, and they have been very successful in creating ads that are both informative and entertaining. Another way IKEA promotes its brand is through its website, which is full of useful information about their products and also provides an easy way for customers to purchase items online.
– 2.3 Pricing
IKEA’s pricing strategy is another important aspect of their marketing strategy. They offer a wide range of products at very competitive prices, which helps to attract new customers while still maintaining a high level of profitability. One way they are able to keep their prices low is by using a system called “product life cycle pricing”, which means that they reduce the price of a product as it gets older and less popular. This helps them to clear out old stock quickly and also makes it easier for customers to find bargains on items that they may not have considered buying before.
– 2.4 Customer Relationship Management
Customer relationship management (CRM) is another important aspect of IKEA’s marketing strategy. They use CRM to manage all aspects of their relationship with their customers, from initial contact through to after-sales service. This helps them to ensure that every customer has a positive experience with IKEA and that they are satisfied with their purchase. It also allows IKEA to build long-term relationships with their customers, which is essential for any successful business.
3. Conclusion
In conclusion, IKEA’s marketing strategy is one of the main reasons for their success as a company. Their