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Global marketing implies that a corporation is standardized with the marketing programs and truly coordinates across the market and practices different global integration. In current competitive business environment, there are several companies that have truly implemented the global marketing strategy and it is being characterized by an environment which is tremendously unpredictable (Fernando, 2011). There are several benefits that companies derive from global marketing strategies like a large market segment can be identified with better economies of scale so that a competitive edge can be acquired for global companies.
With the transfer of knowledge and experience across nations, an enhanced coordination and communication among companies is being acquired. By marketing the products globally, accessibility towards wider customer segment can be acquired with more of financial stability. In this context, one of the most important tools is planning that facilitates to associate with future and helps company to control its internal, external and customer environments (Keegan, 2006). Here, in this report a detailed analysis has been accomplished to understand the various attributes of global marketing. In this, a case of leading furniture IKEA has been discussed which is planning to enter into Indian market.
The company is headquartered in Sweden and was started in the year 1943 by Ingvar Kamprad Elamtaryd Agunnaryd. IKEA is famous for its modern furniture design and provides numerous types of appliances and furniture which is mostly associated with eco friendly attributes and company is known for its operational details, cost control and regular product development. IKEA has acquired growth tremendously and is now present in more than 30 countries with 140 stores (Jüttner, Christopher and Godsell, 2010). The main mission of the company is to develop enhanced skills among its workforce so that they become creative and provide a range of home furnishing goods at a reasonable price.
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IKEA is precisely concerned towards serving needs of several people and the main design process starts with assessing the needs of consumers. The management in IKEA is consistently involved in market research in order to assess about customer's choice and their lifestyle as it benefits them to offer a range of household goods and meet needs of buyers. Here, in this respect a detailed micro and macro analysis has been undertaken, in micro segment a SWOT analysis has been carried out (Popkin, Adair and Ng, 2012). Prior to enter into Indian market, it is crucial for IKEA to assess its strengths and weakness plus different opportunities present in the market. A change has been seen among tastes and preferences of Indian consumers as they are now ready to spend on high end goods and do not hesitate to shop in retail outlets. The lifestyle of Indian customers have become quite busy where both male and female members of a family are working. In this situation, maximum of them prefer to shop from one stop so that all their requirements can be fulfilled. With all these transformation, IKEA needs to develop prominent competitive strategies so that it can lead ahead in Indian furniture market.
IKEA is having a strong brand name and need to make regular innovations and creativity so that global requirements can be accomplished. In order to achieve maximum benefit, it is important that company adopts global marketing strategies so that numerous consumers can be attracted as there is an increased demand of luxury goods so that significant benefits are acquired. Moreover, a macro analysis have been accomplished to understand the external environment for IKEA with the help of PESTLE analysis.
In the global market, IKEA tries to position itself as a unique corporation in terms of its designing and the basic message of company is to sell products at a reasonable price. IKEA's entrance into Indian market has awakened several corporate giants about the chances of growth in India. A portion of Indian population is well aware with the brand IKEA and earlier used to purchase the goods from online sources like Alibaba and Olx.com. IKEA has framed its goals to invest around 500 Crore in Indian market in the upcoming years (Murphy, 2010).
The company has been waiting since long to get the approval and a right location for its store and now company is opening its first store in Northern India location probably, Noida or Gurgaon. IKEA in its marketing objective has developed a long term plan to grow in India by opening 10 stores in the first phase launch which will be then followed with another 15 outlets in second phase. IKEA already sources numerous goods from India and plays an important role in enhancing the exports from India (Buzzell, 2000). However, maximum of products in company are made out of wood and India is not rich in production of natural wood, but might be the company will develop new non wood categories furniture. The five major marketing objectives of IKEA for Indian market are as stated below:
IKEA is a strong brand and understands the concept that rising globally requires much of innovations and creativity. IKEA needs to make prominent amount of changes so that the most suitable results can be acquired and brand promise can be fulfilled (Agarwal, Malhotra and Bolton, 2010). In India, company needs to pay attention on both traditional and non-traditional marketing strategies. Before that, organization needs to accomplish proper market research so that the most suitable strategies can be developed to manage the intense level of competition.
In the Indian market, company can attain probable benefits by applying the strategy of market penetration so that prices of products can be reduced and customer segment can be managed properly. One of the issues that company might face is with respect to the approach of the company that gives attention on self assembling of furnitures; as such problems might arise with respect to preference of this concept by Indians.
Besides this, with an aim to support the given mode of entry different type of marketing tactics identified that the cited firm can use. In this respect, it can be said that with an aim to provide support to the exporting type of activity of IKEA marketing tactic like displaying advertisement in the social networking sites can be used with an aim to provide support to the exporting type of market entry mode of IKEA. By displaying ads in the given mean information regarding the presence of IKEA can be spread among the Indian customers. In addition to this, it is with help of given method only, assistance to the export related activity of IKEA can be carried out. In the similar way, relationship marketing type of strategy can be used by the cited firm with an aim to provide the support to the franchising type of market entry strategy. The given tactic will allow enterprise in terms of building strong relationship with the buyers. By building such type of relationship, the improvement in the sales of that particular organization will be carried to whom which IKEA has given its franchise. The given tactic will provide assistance to the firm in terms of improving the sales and profitability related condition of organization in an effectual way (Marshment, 2009). Overall, it can be said that both assessed tactics are effective if it is being used in an appropriate manner.
The implementation of the planned marketing activity in new market such as India with time line is being discussed. In order to implement the marketing activities following steps identified that needs to be followed by the organization while entering into the Indian market. These are all discussed as below:
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From the undertaken study it can be stated that prior to enter into Indian market IKEA brand need to accomplish a comprehensive analysis so that best strategies can be implemented by meeting the changing needs of customer's. In the competitive business-environment company need to develop prominent marketing strategies so that global challenges can be managed. By consistently evolving and enhancing the traits and abilities IKEA can effectively utilize all its resources and develop core competencies.
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