IKEA Marketing Assignment -

IKEA Marketing Assignment

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Marketing Assignment Question

Need to choose a company (the one you want) facing a Marketing challenge nowadays

The marketing objectives are the one you suggest for that company upon considering the situation analysis and the challenges they have. 

The instructions for the paper will be:

a- the paper should have a max length of 4 pages. On top of these 4 pages, you can include some annexes.
b- the points I want everybody to cover are the following:

  • breve presentation of the company and industry
  • problem or challenge statement
  • situation analysis
  • short, mid and long term marketing objectives for the company
  • alternatives to achieve those objectives
  • recommendation
  • implementation plan

Please make sure to allocate at least 2 pages for your recommendation and implementation plan.

Marketing Assignment Solution


IKEA is a multinational group founded in Sweden which sells home accessories, kitchen appliance and ready to assemble furniture. It has been considered as the largest furniture retail store in the world since 2008. The company is well known for its advanced architectural designs and also for its interior work design (Maja, 2008). In addition, the company is known for its continuous development of the product, operational details and cost control that enabled IKEA to reduce its costs by 2-3% during the global expansion period. The 4C analysis and 4P analysis is carried out in appendix 1 and 2, respectively. The pricing strategy analysis is carried out in appendix 3.

Industry Analysis 

Ikea operates in furniture and home appliance retailing industry. In all its markets, including UAE, there exists intense rivalry with other competitors (Baker, 2008). Threats of new entrants to home appliances and furniture retail industry are very significant. But, the new entrants can’t leverage the economies of scales to the same extent as IKEA at least in the initial stage. The threat of substitutes is low as furniture, and home appliances don’t really have substitutes. Bargaining Power of suppliers is not substantial. IKEA has a total of 1002 suppliers in fifty-one countries. Due to the lack of differentiation in the product supplied by suppliers led to increasing the bargaining power of IKEA. 

Problem Statement

IKEA has often been criticized many items for questionable advertising practices and lobbying government authorities to further their business interest. This has affected customer loyalty and tampered brand value. With the competition increasing rapidly and customers demanding higher quality products (Martin, 2005), IKEA is facing the issue to expand its customer base and win customer trust. Ikea also has to resort to steep discounting in many of its markets on account of high competition in the market. This study focuses on devising a comprehensive marketing strategy for IKEA to get over these marketing challenges (Chiang, 2002). The focus of this study will be UAE.

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