Target Market and Positioning Strategy Identification – Ikea

Target Market and Positioning Strategy Identification – IKEA

Veronica Cheers

June 2,2014

MKT/575 - Marketing Strategy

Bernie Cerasaro

Target Market and Positioning Strategy Identification – IKEA

Ikea’s brand has developed a loyal following of global consumers, this allows the company to have continual growth in a highly competitive market. The company currently accounts for between 5% -10% of the total furniture market and the profit line averages at 10%. According to Gosselin (2004), Ikea did not enter the United States until 1985 and has slowly expanded. The opening of new stores in countries that are constantly evolving is deepening its brand as the high quality, low cost furniture provider and has help to gain a cult-like following. This paper will determine the company’s strengths as well as provide recommendations for continued growth in both strategies by exploring the company’s target market and positioning strategy .

Target Market

The company targets the global middle class and has found that regardless of location, their buying habits do not change. IKEA is creating a shopping experience that seems more like a day trip than a chore, which allows the company to further penetrate the visiting consumer’s share of wallet. IKEA’s greatest source of appeal is that it provides quality furniture at lower costs to people who are not willing to sacrifice style for higher price. The typical target consumer tends to be college student or young adults who usually shop for stylish furniture within their tight budget.

IKEA also chose to focus on families in various stages of life. With families evolving to include children and other members, the store offers a variety of solutions to meet any budget and any stage. The stores also offer childcare centers expanded aisles for easier shopping and room stations that display how various pieces of furniture can be incorporated in their homes. This helps families move through...