MARKETING PRINCIPLES
When companies market their products, they create a successful mix of the right product, sold at the right price, in the right place, and using the appropriate promotion technique . It means that:
- The product should have right features as according to the needs and demands of the customers. It must function properly and look good.
- The price of the product should be reasonable that will be acceptable for customers and generate good profit for the business.
- The management should decide the right place where to market and sell the product and at the right time. It is decided based on needs of customers in specific area.
- Promotion of the product should be as according to the trends and culture. The right promotion can help the business in generating larger output.
The 4Ps or marketing mix is used as a tool to decide how to market a new product or service in new or old market. Here, we will discuss marketing mix of IKEA in UK. First, we will have a look at the marketing mix of the product and then services offered by IKEA in UK.
Product
IKEA offers wide range of products used for the furnishing home that accessories of
- Bedroom
- Bathroom
- Garden
- Home decoration
- Kitchens and appliances
- Small storage
- Textiles
Recently, the IKEA in UK has decided to deal in the new designs of kitchen appliances like ovens. These ovens will be used for various types of cooking, grill, and baking. It will have automatic functions that would make cooking much easier for the consumers.
Services
In addition to products, IKEA also offer wide range of services to customers. These include
- Delivery services
- Picking services
- Assembly service
- Kitchen planning
- Kitchen & bathroom installation
- Curtain making and alteration services
- Finance services
- Interest free credit
- Van hire
IKEA has recently planned to offer services of interior designing for home or specific rooms. For this purpose, the organization has hired experienced and skilled staff.
Price
IKEA focus is always been on the low prices. Its vision is to provide customers an option to furnish their home with functional and well-designed accessories and make it better for everyday life. The modern oven will have the price around £350. Similarly, IKEA offers its services at much economical price. The service charges of interior designing of home or rooms depends on the size, area, and other requirements. However, IKEA will follow the cost leadership strategy in this case as well.
Place
It is highly important for the organization to make the product available for the customers in market. In UK, there are 17 IKEA stores and more than 60 million inhabitants. UK retail planning laws are quite strict; therefore, IKEA has less number of stores in the area. However, now IKEA is planning to build new store in Coventry with three levels and close to the location of city center. This new store is close to the city and so expected to bring more profits and high market share. IKEA will launch its new modern ovens in all of its 17 stores in IKEA. In case of services of interior designing, IKEA has built separate offices, but close to the main stores. The interior designing experts will also assist consumers in IKEA stores for selection of the right products for their home.
Promotion
Advertising refers to the non-personal communication of the word that is usually persuasive in nature and paid by the sponsors. It can be about product, service, or idea by an individual or organization. IKEA market their products through advertising campaigns varying in each country it operates. In UK, the promotional campaigns uses the medium of television, radio, newspaper, and social media and others. Similar type of promotional campaigns will be used to advertise new modern ovens. IKEA will also use techniques of direct marketing at their stores in UK for promotion of ovens. In case of the interior designing services, the same promotion techniques will be used. However, in addition to common techniques, it will also use their home products to market interior designing services.
Product Marketing Mix
Service Marketing Mix
Conclusion
IKEA is facing tough competition is UK as there are several big organizations already operating in the market. Therefore, IKEA keeps on introducing new products and services so that market share can be improved. The new oven design and the home interior designing services are introduced for the same reason. IKEA is now offering low prices, making easy access for customers, and using high promotional techniques to increase the market share in UK.
References
Business Case Studies, n.d. Marketing Theory. [Online] Available at: http://businesscasestudies.co.uk/business-theory/marketing/marketing-mix-price-place-promotion-product.html#axzz3Kqe6B100
IKEA , 2014. [Online] Available at: http://www.ikea.com/us/en/catalog/allproducts/
IKEA, 2014. Services. [Online] Available at: http://www.ikea.com/ms/en_HK/customer_service/our_services.html
