IKEA Company – Case Study Example

Sharpening the Focus: Target Marketing Strategies and Relationship Management What market segmentation approaches do you believe are most relevant for your chosen product, given the type of product it is? Why do you recommend these over other possible approaches?
IKEA offers a huge product line of furniture. However, my focus will be towards living room, bed room and kitchen furniture.
Products of IKEA
Eating accessories
Desks
Children’s products
Bathroom storage
Beds & mattresses
Chairs
Cooking
Clothes storage
Decoration & mirrors
IKEA family products
Kitchen cabinets & appliances
Flooring
Lighting
Small storage
Sofas and armchairs
Storage furniture
Tables
Textiles and rugs
Transport and assembly
TV solution
IKEA’s furniture is affordable, easy-to-assemble, easy-to-transport and modern. The recommended market segmentation strategy to IKEA is behavioral and psychographic segmentation. The reasons for recommending these two strategies are the core values of IKEA’s products. Actually IKEA can identify the right target of customers if company segments the markets based on customer needs and their lifestyles and values (Rajeev) and these two strategies are most suitable. Moreover, demographic and geographic segmentation strategies are also not suitable because product attributes do not seem to target customer based on their income level and geographical location.
From your review of the website as well as your knowledge of the product, write a positioning statement for the product. Keep it to a few sentences; start out with “Product X is positioned as…”
Following positioning statement has been proposed:
IKEA’s furniture is positioned as modern, affordable and easy-to-assemble and transport. We entirely focus on product design, functionality and consumer value. IKEA’s affordable furniture has been designed to improve your life style and to offer promised value.
Bibliography
IKEA. (2010). All Products. Retrieved October 10, 2010, from http://www.ikea.com/gb/en/catalog/allproducts/
Rajeev, L. (n.d.). Market Segmentation Strategy. Retrieved October 10, 2010, from http://www.buzzle.com/articles/market-segmentation-strategy.html