IKEA Sales Strategy Analysis Report – Values-Based Service

IKEA was known for its contemporary uniqueness especially when selling the quality products, they had affordable furniture and all along they have enjoyed and maintained its culture in the market, the company was founded on the existing medium of exchange and its innovative aspect. Their stores were usually located away from the urban centers hence they enjoyed the   ready market of their goods from the middle class population

Initially the  company’s its main  target was the middle class customers who were spread all over the world, the products that were sold were themselves  beautifully crafted   and  appealing hence it created a  complete shopping experience for the customers  Belch  (2012). To attract customers, they emphasized their values of serving their customers with respect and dignity, at some point they treated their customers as part of the people who ensures that the organization and policies are implemented. For instance, right at the entrance of their stores, customers were allowed to   drop their kids at the play room which contained variety of  safe play equipments then thereafter ,they could shop  on their own  in their leisurely manner .

The IKEA  products  and services  were attributed to satisfying the needs and wants of the customers which was also equivalent to the value accorded in its price, the market position of the company was well suited basing in mind that they selected their stores  away from the urban centers ,these made easy access to their consumers, if it was to be situated in the central business zones  within  the urban areas, it would be hectic for their product  ready    market  because of the existing competition ,henceforth  the company enjoyed the monopoly,(Smith, 2001),

In ensuring that the company  enjoyed its sustainable ready market, they identified the social ,economic and  environmental aspect ,for instance they looked at how  people live their  lives at home and so they wanted their consumers  receive the comfort of their products and its worth value. They were interested on what is important to them. Moreover they relied entirely on the feedback from the customers rather than from the rumors from the street, at  some extend, they  did  a consumer information  through surveys and reports. This further allowed the IKEA send design experts into people’s real life experiences rather than just surveys or data.it was an effective way of sharing information.

Furthermore as a source of increasing the value of their products, they too recruited the furnishing and design experts who would travel all over America to help them design their rooms in their homes.

Economically, IKEA products were   packaged together before shipping all the products were packed in boxes so that it could fit into small crate hence reduced the warehouse cost and damages.

On consumer value, the company deeply understood the existence of social classes that existed in the  society, they classified them as young, middle class and upwardly mobile  who prefer  low priced  but trendy furniture and household  products ,it was a target  market in the United States,

Environmentally, IKEA has developed its product plans to increase its use of waste or the recycled materials  due to their customers increased demand  for  eco- friendly products, the intangible  benefits adopted by the company to increase its profit was done through corporate strategy, they  focused on offering customers  low priced on functional products, it reduced the competitor entry to the market, they looked  at the  existing  competition and thereafter the slash their  price by a half, to achieve this, they  spend considerable  time  on product  development by constantly  finding new ways  to manufacture  products  cheaper. this strategy strengthened  long term relationship  with their suppliers, furthermore,

According to  Zuvela (2008) ,the  strategic global outsourcing  of product manufacturing  greatly enabled them to effectively reduce the  prices  on their products  which led to international expansion, the concept enabled the IKEA to enjoy the market of their products thus  reduce helps competitors, they  also adopted the  international market  while remaining true to business concept. for instance, IKEA had  a cool operational system , whenever  a problem occurred ,both the external and  internal networks  were utilized  to find a speedy resolutions, this  boosted the  good relationship  with customers hence streamlining decision making and  maintaining the  delivery schedules and effective advertising  methods.

Customers are seen by IKEA as the  key stakeholders and so they ensure that they maintain long term mutually beneficial relationship to ensure direct communication to meet heir needs and those of the suppliers initially, in meeting the customer’s  needs, IKEA offers  full services  experience  irrespective of the income, the poor  who had beds were offered American sheets  size ,bedroom wardrobes  and even kitchen cabinets. They ensured that customers were given the comfort that they deserve. To pay back their fans, IKEA has further joined the social networking scene to connect with its customers as the prime stakeholders.

This is a platform where customers can post their views concerning the service provide by the company, they have the opportunity to   showcase  their own  IKEA wares  inside their home, customers across the globe can connect to the  site hence they admire   the items. due to the value of their customers they also  make stand actions against child labor. the company works with UNICEF  and save the children  with the aim of  to stop their violation of their rights globally, they further  offer organic  products  thus reducing  energy dependency, for instance, every year the company  takes on more initiative  to improve the lives of many, this universal approach too contribute to IKEA maximizing their profits. (Tesptra and  David ,1985).

As a measure of ensuring quality goods and the cost effectiveness’ without having extreme loss, as manager, I   can develop a business marketing plan especially the integrated marketing perspective, the company will strive to  make customers the centre of their business world, this act reinforces the importance  of recognizing  the target  of the market, each group will be  required  to persuade the members be the loyal customers to brands

Also as families and individuals grow, they too are required to  acquire more belongings therefore  increasing the purchases of commodities, as a manager I will also have target audience  both men and woman who have children and mostly likely have established  home that is furnished so that they always use the company`s products  (Edvardsson  and  Edquist,  2002).

In order to develop a strong work force, I will be required to offer employees an avenue to increase their skills and knowledge in the areas of their profession. This can be done through seminars and symposium, moreover, empowerment too would be emphasize by rewarding the employees whoa have extremely showed their outstanding performance

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