Ikea's Marketing Mix in Various Countries

IKEA’s marketing mix in Sweden:

SWEDEN

IKEA has a wide range of furniture for children’s rooms, kitchens, bedrooms and living rooms. Products include coffee tables, side tables, TV solutions, DVD storage, shelves, sideboards, bookcases, sofa beds, armchairs, leather sofas and fabric sofas, as well as many other products. So within these segments IKEA then subdivides again. For example in children’s bedrooms there will be play accessories, beds, changing tables, nursing equipment and so on. IKEA has in excess of 10,000 products.

Price: The basis of pricing for IKEA is value i.e. low prices pricing. They do not charge premium prices or use price skimming.

Culture on Place: IKEA’s main business relates to its retail stores. Many of these stores are in out-of-town locations and do not benefit from the footfall of primary and secondary locations. Many of the stores even have restaurants and food shops because people tend to spend there the whole days long. Since the majority of the customers use their cars to go shopping, IKEA is able to locate its stores out of the city with no near location to public transport hubs as it is in China.

Promotion: IKEA is one of the world’s largest furniture retail brands. The brand itself is based upon the concept of offering home furnishing products at affordable (low) prices.The main way of promotion is catalogues that are sent to customers in order to let them know about new arrivals. The promotions mix includes TV advertising, sponsorship, newspaper and magazine advertising, and many other elements. Some of its TV advertising is considered controversial whilst others see it as pretty plain.

Ethics on Product: Ethically, Europeans are way more concerned about environment. In attempt to be eco-friendly, the company charges consumers for plastic bags and asks suppliers for ‘green’ solutions. Due to less awareness of Chinese consumers about the issue the politics is not possible in that market.

IKEA’s marketing mix in China:

Culture on Product: many Chinese live in small apartments and IKEA came up with solutions of storage that makes life easier and adjusted their sizes of furniture e.g. in China beds that are sold are shorter -- 190cm (called Hong Kong-sized beds) than standard-sized beds -- 200cm. Also smaller size of the wardrobes comparing to the USA was demanded.

Culture on Promotion: Chinese live in apartments with balconies and this space of the apartment is very important to them. Chinese tend to spend most on their living rooms, as they would like to “show off” this space. Bedroom furniture was the least popular purchase in China, perhaps because the room is the most private and least visible place