Ikea Marketing

Ikea invades America.  Please develop a response to the following:

* What do you think of Ikea’s product strategy and product range?

* IKEA’s plan to have 50 stores in operation in the United States by 2013 is an indicator of the company’s optimism about the viability of its value proposition in this country. Do you think they are being overly optimistic?

How would you improve IKEA’s value proposition to make it more attractive to American consumers?

What do you think of IKEA’s product strategy and product range?

Their product strategy focused on low cost strategy. Low price along with cost efficient production is a strategy which will sustain a company; using only quality materials where they are needed. They established a price 30-50% lower than its rivals which has an extensive price range. The product range is also extensive with stores in at least three continents.

2)      IKEA’s plan to have 50 stores in operation in the US by 2013 is an indicator of the company’s optimism about the viability of its value proposition in this country. Do you think they are being overly optimistic?

According to the case, as of 2002 Germany has at least 30 stores; therefore, 50 stores located in the US is not overly optimistic.  In 2002, US reported 14 stores, thus adding 36 more stores will not be a problem.  The strategies being used for location, price and marketing will assist the company in achieving that goal.

3)      How would you improve IKEA’s value proposition to make it more attractive to American consumers?

Market research will make it more attractive to American consumers.  A company will only know what that specific target market want/need if they conduct research. Tastes do change, so having a diverse quantity of products will cover all grounds. Income can have an input on taste as well, so conducting research will guarantee they will produce a product Americans will purchase.

What do you think of Ikea’s product strategy and product...