Fahim ShahMarketing mix of Ikea (4Ps of Ikea)
This is a detailed analysis of the marketing mix of Ikea (4Ps of Ikea). Ikea was founded by Ingvar Kamprad in 1953. It has made remarkable progress over the years, and its marketing strategy played a significant role behind the success. Its digital marketing strategies have indeed drawn the attention of many customers, organisations, and academics.
Product strategies of Ikea
Ikea is one of the world’s famous home furnishing retail brands. It is well known for its ready-to-assemble furniture. It targets middle income consumers. It has a wide variety of products in its portfolio.
The bedroom category includes beds, bedroom furniture, mattresses, and bedding. Storage and organization category includes cabinets, cupboards, TV units, bags, bookcases, shelving units, wardrobes etc. Similarly, the furniture category includes chairs, chest of drawers, tables, children’s furniture, desks, sofas, garden furniture, nursery furniture etc. (Ikea, 2021). This shows that Ikea has a massive list of products catering to the demands and desires of the customers.
Ikea’s other categories include textiles, home electronics, decorative items, kitchen items, lighting, outdoor products, summer products, cookware and tableware, bathroom products, laundry, cleaning, and many more. However, many people accuse Ikea of selling poor quality products. Some products were also accused of causing allergic reactions, malfunctions, and accidents resulting in injuries.
Ikea also has restaurants in its stores which are very popular among customers. The menu reflects the culture and food of the people of the location of each store; however, the primary focus is on Swedish food. Like restaurants, each store also has a kids play area called Småland. Both restaurant and play area address the needs of many customers who otherwise may not have visited the retailer.
Pricing strategies of Ikea
Price is an important area of discussion in the marketing mix of Ikea (4Ps of Ikea). Ikea sells most of its products at low prices making it affordable for a large number of customers. Most of the furniture is flatpack, which also helps to keep the prices at a low level. However, many people criticize Ikea’s high home delivery fees. For example, a medium parcel delivery to a UK customer’s home costs £15, while £40 for a large delivery.
Ikea produces in bulk. Therefore, it is able to keep its costs low and thereby achieve more sales by selling at an affordable price. When products gain popularity, it produces more of those particular items and reduces the price accordingly to achieve more sales. Low profit margins, with high sales volumes lead to huge profits in the long term for the company.
Place/Distribution strategies of Ikea
Ikea sells products in its retail stores in more than 50 countries around the world. It has recently opened stores in India and Latvia. In fact, it aims to open 25 stores in India by 2025 (Ikea, 2021). Its total number of stores worldwide is 445 (Statista, 2021). Many customers enjoy the experience of being able to physically view the products which they are going to purchase. Most of Ikea’s stores are located outside of city centers which help it save some costs such as high rent.
Ikea also operates a website from which customers can purchase products and get them delivered to their homes. However, as mentioned above, home delivery option is deeded expensive for many customers.
Promotion strategies of Ikea
Ikea advertises on television, newspapers, and social media. It regularly posts news, discounts, and events on its social media accounts. However, some of its adverts in the past on billboards and TV were controversial resulting it in issuing public apologies (BBC, 2017).
During festive seasons, Ikea offers different types of discounts. It also carries out multi buy promotions in some stores, whereby customers can get free products when a certain number of products are purchased in one transaction.
Ikea works with renowned organisations and take part in charitable activities. It sometimes sponsors different events as well. These activities help it establish a positive image in the minds of the customers.
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Last update: 23 April 2023
References:
BBC (2017) Ikea apologises for ‘sexist’ China advert, available at: https://www.bbc.co.uk/news/world-asia-china-41757971 (accessed 05 August 2021)
Ikea (2021) About us, available at: https://www.ikea.com/gb/en/this-is-ikea/about-us/ (accessed 04 August 2021)
Statista (2021) IKEA: number of stores worldwide 2013-2020, available at: https://www.statista.com/statistics/1060053/number-of-ikea-stores-worldwide/ (accessed 05 August 2021)
Author: Fahim Shah
Fahim Shah has been working in the UK as a visiting lecturer in Business and Tourism for the last 10 years. After completing a Bachelor’s degree in Business and Marketing, he went on to gain an MBA from the University of Bradford, the UK. He is a Fellow of Advance HE (FHEA) and a full member of the Association of Business Executives (ABE).
M Rahman
