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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