Ikea Analysis

IKEA Marketing Plan

To: Jun Myers BUS 560

Team Member: Yi Chen (Bob)

Sicong Wang

Fengnan Zhang (Ryan)

Jian Ye (Ian)

Zhuoran Bao

University of La Verne

College of Business and Public Management

Contents

I. Company Description (Zhuoran Bao) 3

II. Business Mission (Zhuoran Bao) 4

Better life & Lower price 4

Universal products and Swedish style design 5

III. Marketing Objectives (Ian) 5

IV. Situation Analysis (Sicong Wang) 9

1. Industry analysis 9

Power of the Buyers: High 9

Bargaining power of suppliers: Medium 9

Rivalry: High 10

Substitutes: High 10

Threat of new entrants: Medium 10

Industry Trend 11

2. IKEA SWOT Analysis 11

Strengths 11

Weakness 12

Opportunities 13

Threats 13

V. MARKETING STRATEGY (Bob) 13

1. Target Market Strategy: 13

Primary target market 13

Positioning strategy 17

2. Marketing Mix Strategies: 17

Product Strategy 17

Distribution Strategy 18

Pricing Strategy 19

Promotion Strategy (Integrated Marketing Communication) 19

VI. Implementation (Ian and Ryan) 20

1. Market Research 20

2. Organizational Structure and Plan 22

3. Financial Projections 23

4. Implementation Timeline 24

Product Activity 24

Pricing Activity 25

IMC Activity 25

VII.Evaluation and control(Ryan) 25

1. Formal control 25

(1). Process control: 26

(2). Output control: 26

(3). IMC performance standard: 26

2. Informal Control 26

(1). Employee self-control: 26

(2). Social control: 27

VIII. Summary (Ryan) 27

Reference 28

I. Company Description (Zhuoran Bao)

Ikea has become a well-known household furniture company; it is simple, fresh style, and elegance. In 1943, Ingvar Kamprad created the brand of Ikea, and the inspiration of the name of IKEA was picking up two alphabets, which are “I” and “K”, from his name, and also choosing other two alphabets from the name of his first farm and village.

In 1951, Ingvar Kamprad, the founder of Ikea, saw the opportunity of becoming...