IKEA is considered as one of the most innovative company in the field of furniture industry all over the world because it have great capability to provide new ideas , new designs that add new values for the consumers in order to develop the sales and profitability . the innovation in the IKEA company is not limited to specific department in the firm but its innovation is in all process in products and strategies as the company depend on producing modern architectural designs, it seek to perform product development in continuous way , and have great capability to perform cost control. IKEA depends on innovation designers from different areas in the world in order to support the design innovation to develop the quality and wonderful designs. For example ; IKEA has innovated trash bins that measure food waste with specially built digitalized or automated scales
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There are four business functions ( operations , human resources management , accounting and finance , and marketing ) that support the performance and productivity of IKEA. No doubt that there is important role is played by the business functions in IKEA because the Business functions can enable IKEA to innovate in many way in order to be unique . Each function from these functions perform good part in providing a creative solutions to the different problems that face IKEA during the different activities . Business functions assists the IKEA to offer new and fresh ideas for the managers in order to enable them to solve the issues that face the company and beat the different challenges in the processes. The space is opened by Business Functions in the firm for good processes and thought to appear , improve and help in achieving the success for the company. Based on the innovation in operations functions here ; IKEA is capable of holding a huge stock as the items are stacked in flat way by digital machines operating 24 hours a day, 365 days a year. To order to render storage, handling and shipping more cost-effective, IKEA aims to use the cheapest products necessary to produce furniture without sacrificing quality. The innovation marketing ; IKEA is really effective at utilizing social networking. They share on Facebook, Snapchat, Twitter and Pinterest promotion , discounts on sales, updates, news and activities. They respond to their followers . Customers who use IKEA's VR technologies and test the kitchen and prepare it before they purchase it. Innovation in HRM; it promoted employee engagement , they depend on initiative of “life balance and diversity”. Innovation in accounting ; The high quality of accounting information systems in is IKEA an significant part of the high financial performance , they digitalized all accounting process by depending most innovative software.
Q2
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There are three level of products ; the core product, the actual product, and the augmented product. The core product of HAMARVIK mattress is considered the great benefits that make the customer more satisfied because it is designed from generous layer of soft fillings that provide more comfort, it is easy to carry . the Actual product here is high quality of mattress that we can touch it and sense with a generous layer of soft fillings and Stretch fabric . The augmented product of HAMARVIK mattress is clear such as ; 25 year guarantee, and IKEA provide high customer service and after-sales service.
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Undifferentiated targeting relies on targeting wide range of clients , issuing restricted numbers of products , using all potential channels to sell products, and relies on mass media to promote . Concentrated targeting strategy depend on targeting one defined customer segment , using one product to them, relying on all plausible media to sell and promote the product, and depending on one price. The differentiated marketing depend on targeting two or more of client segments , imposing various prices to various segments of clients, relying on all appropriate distribution channels that varies by segment to sell product, and depending on all appropriate media which vary by segment to promote. Customized strategy is considered One-to-one marketing, always in a integration with a segment strategy
The case of IKEA, IKEA can use Undifferentiated marketing strategy. IKEA is targeting wide range of client all over the world, producing different products under the brand name “IKEA” such as Kitchenware & tableware, Rugs, mats & flooring,. IKEA also relies on all potential distribution channels all over the world such as in Kuwait. Its promotion depend on mass media such as TV, radio . Price of IKEA is considered as one popular price range.
Q3
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The segmentation strategy of IKEA consist of many customers segments such as ; middle class clients , people who prefer modern furniture & accessories , colorful& novel items . its targeting consist of ; seeking to attracting persons in ages , sex , place, as it target all the consumer who have the common desire that is preferring simplicity , functionality , and high quality . it also target people who are single and have high income or couples who want to marry .
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Positioning is arranging for a product to take and hold a obvious, characteristic, and preferable place if it is matched with products of competitors in the minds of target clients. Positioning is related with marketing because marketing mix is mean that issued by marketers in order to achieve the common goals of drawing good picture in the minds of customers
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The innovation in IKEA’s products is too risks and costly , but it is needed to satisfy the needs of consumers . the operations management in IKEA applied innovation in the actual product level in order to satisfy the sense of the customers when the customer test and touch the product . so, there is no innovation in the core product level . they depend on producing new styles and adding new product and this issue leaded to increase the products portfolio in IKEA to suit with all needs and desires of consumers . IKEA depends on innovation in design to supply customer and shops only with good quality and stunning products. It has developed cost-effective and innovative methods to meet the price and quality expectations of people. They are able to produce a range of items by having their own team of professionals, who will collaborate along with certain designs that will improvise their consumer demands such as designing new styles sofas , armchairs, and storage furniture. Place; the Marketers of IKEA cooperate efficiently with the operations managers to make certain about enough quantities, suitable outlets and plausible delivery expenses . it have international huge distribution network as it have about 340 stores in 28 nations , its strategy depend on having stores in crowded areas in the towns in order to access to customers in simple way . it has applied the E-commerce model in about 14 nations . Price ; IKEA depend on cost –based pricing as it matches prices with quality of product . the shipping costs is reduced because it depend on flat packing . its product is not costly but it is not cheap either. Promotion; they depend on TV, print, online ads, billboards ,social media . people ; it interest in its people ,whether customers or employees . there is no discrimination on the basis of race, ethnicity and religion. Processes ; It comprises of 44 production units in 10 nations. By owning sawmills, IKEA manufactures its own wood and quality furnishings. It embraces the motto of a healthy world and buys its materials from 1,800 products from suppliers, supplies the final product in pieces to be installed by clients that saves money. Physical evidence ; In about 50 nations, IKEA has more than 350 outlets. IKEA's immense store layouts are physical proof they offer greater than a shopping experience. it provides wide area for parking. These good marketing mix here leaded to drawing good picture about IKEA and contribute in brand positioning.
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