IKEA Marketing Plan
To: John Daly, MRK428MS Team #4: Rachael Sammut, Lauren Wagman, Stephanie Cheyne, Brandie Siomos April 7, 2011
TABLE OF CONTENTS
Work Breakdown Executive Summary Situation Analysis The Internal Environment The Customer Environment The External Environment SWOT Analysis SWOT Matrix Marketing Goals andObjectives Marketing Strategy Marketing Implementation Tactical Issues Evaluation and Control Work Cited
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1. Executive Summary: Rachael Sammut 2. Situation Analysis: a. The Internal Environment: Stephanie Cheyne b. The Customer Environment: Brandie Siomos and Rachael Sammut c. The External Environment: Lauren Wagman 3. SWOT Analysis:Rachael Sammut 4. Marketing Goals and Objectives: Rachael Sammut and Brandie Siomos 5. Marketing Strategy: Lauren Wagman 6. Marketing Implementation: Stephanie Cheyne 7. Evaluation and Control: Rachael Sammut and Brandie Siomos
Creating a better everyday life for many people has been IKEA’s vision statement since the beginning, something admired by not only by customers butemployees, and competitors alike. With locations in 25 countries, the company has begun to break out of its native home of Sweden, and is on its way to creating an empire of modern, high quality, low cost furniture and home décor items. While they have begun to expand around the world, IKEA’s main goal is to overtake the United States furniture market, currently being held by competitors such asWalmart, Target and Home Depot. Within this marketing plan, a strategy including implementation tactics such as the increase of online convenience and promotion, traditional marketing and improved customer service, has been created to allow IKEA to meet their short and long-term goals of penetrating the North American market, while continuing to offer their cost efficient, high quality products. Itis apparent that in a market of technology savvy, original customers, IKEA will need to increase their online presence, selection and convenience before they can consider dominating a market such as the one they are in. With the tactics suggested, it IKEA is expected to increase their presence within the North American market, while properly meeting the needs of their American consumers.
4THE INTERNAL ENVIRONMENT
Review of Marketing Goals and Objectives Currently IKEA aims to penetrate the U.S market. The company is achieving this goal by opening up an additional 14 stores to make a total of 50 stores across the country. These goals are not consistent with the current economic environment worldwide, especially with the U.S being at the forefront of this recession and one of thecountries, which was hardest hit. Environmentally, this is a very consistent goal because IKEA offers eco-friendly products seeing as being environmentally friendly and reducing carbon footprints is a current cultural trend in the U.S. Review of current marketing strategy and performance IKEA’s current marketing strategy is to provide low cost, high quality products that are as eco-friendly aspossible to its customers. IKEA has many suppliers (1400, in 54 countries) which enables the company to find the lowest production price for each product, the company also cuts costs by placing products in flat packaging to reduce space needed in transfer and storage. This portion of the marketing strategy allows IKEA to continuously cut costs for the consumer and keep pricing competitive, and it alsoshows the company as socially responsible because of the efforts made to keep the operation as eco friendly as possible. While IKEA has many options when looking for products and resources, its customers do not. Most of the products shown on the company website are not available for online orders and with so few locations currently across the US, this leaves a large portion of the target market...