IKEA a Swedish company has grown itself to a sizable business company from a small email order business. IKEA was found by Ingvar Kampard in Sweden. It has grown itself to 253 stores and 37 countries throughout the world. IKEA has opened up stores in UK, Hong Kong, China, Japan, and many more making IKEA a brand about the world. Relating to Usunier (2000), the implications and barriers in establishing a new market in the international trade business is lowering daily which creates new opportunities for the business enterprise for globalisation.
India has become a emerging trade country for most multinational organisations for establishing their business over time. In time 2009, the GDP of India stood at US$1. 243 trillion which experienced made makes itself the 11th largest economic nation on the planet. In July, Reserve Bank or investment company of India has stated a rise of 8. 5% growth in the financial yr (BBC information, 31 August 2010). Taking into consideration the average growth of the India from two decades it has been 5. 8% (Achin Vanaik, July 2006). It has been the speediest growing economy on the globe. India has included itself in world trading market by starting its entrances to the multinational organisations to carry out business in India. Considering the international market the culture hurdle comes in forward of any company doing business internationally. So a perfect international online marketing strategy should be designed before taking part of the Indian market.
IKEA has established itself atlanta divorce attorneys part of the world in European countries, North America, Middle East, Caribbean and Asia Pacific, so seeking the establish region market segments can help IKEA only in growing its communication network rather than build its brand about the world. India is the location where IKEA hasn't founded itself and have been unacquainted with the opportunity of the Indian market in increasing its business.
The proposed marketing strategy which can be employed by IKEA for building in Indian market Marketing Blend (The 4P's). Marketing blend is considered has one of the main tools in marketing for understanding the several ideas related to price, product, place, and advertising (4P's) (Armstrong and Kotler, 2006). IKEA can enhance its marketing strategy based on the targeted market with marketing blend.
Fig:1 The 4P's of Marketing Mix
Source: Armstrong and Kotler (2006) Marketing: an release. New Jersey: Pearson Education, Inc.
The product section is the first category where IKEA can first concentrate on and select what are the products which may be targeted to India. However IKEA offers a great selection of family members products which is often useful houses. Considering the products targeted by IKEA to the customers they could be given an option of choosing different selection of the products within a range of price and also let them choose different color mixtures for cover at low and cheap price. IKEA has always reinforced global warming and does not cover its products with all the cardboard stuff protected with man-made balls and everything, but uses environmentally friendly products to hide them. IKEA can provide free home delivery option to the clients with home to do furniture and provides support if needed.
The most significant parameter is the purchase price which impacts customers which range from different economy class levels. Considering the preceding facts by IKEA where it changes the price by providing discounts, EMI scheme based on the demand and supply of the products. Thus by giving strategies for prices to the clients it retains the pricing coverage balanced with customer principles and also combines with other 3P's of marketing mix.
The 3rd P of the marketing blend is Place which according to IKEA is a important parameter as set for concentrating on customers. The sub categories involved in the Place are medium of channel, coverage of the region i. e. distance between store and the clients, assortments, locations, inventory, transport and logistics. However IKEA is rolling out its communication network by delivering the merchandise from suppliers to customers at time and up to date. IKEA uses flatpacks play which assists with reducing the expenses involved in travel. Starting a shop in the Indian suburbs can also assist in reducing the prices involved in travelling of the materials from places.
Promotion performs an important role in branding of any product and IKEA has achieved it through its years of marketing techniques used in promoting its products. Campaign does involves advertising, sales parameters, pr and personal selling and other marketing techniques that can be used for building relationships with Indian customers. IKEA consists of advertising of its products in Television set, newspapers and hand to hand delivery of the pamphlets to the people homes. As said earlier IKEA requires itself in environmental concern and so has been a part of some environmental NGO's through the entire world, UNICEF, and WWF just building a favourable general public image to the clients.
Culture performs an important role in establishing a new organization in international countries. IKEA must take in brain the cultural principles before buying India. There's been many literature predicated on different principles of culture relating to different creators and web publishers. Terpstra & David (1985) defines the culture as medium for learning, showing, compelling, group of actions or symbols which provides some interpretation to the participants of the population. Matching to Parker (2000), A connection between institutions, organisations and management itself takes on as a ethnic communication between your teams. Ien (2005) reveals a nice concept where he believes rise in the awareness of the culture in the society is with regards to globalisation specifically. Culture takes on an important role in marketing which is also related to the 4P's of the marketing mixture while making the marketing strategy for Indian marketplaces. Considering the proven fact that IKEA will be interacting with the Indian customers which has distinct cultures, languages and different income levels. If we use the same marketing techniques used in United Kingdom, China, Hong Kong we will not be able to guarantee that the marketing strategies used in those will help us flourish in Indian markets.
Cross culture marketing will play an important role in developing the IKEA a brand name in Indian cultural trade market. Usunier (2000), has explained in his publication that use of culture way in growing the marketing approaches for international countries can be handy. Globalization does functions as a hurdle in international mix ethnical marketing which creates accessibility step barriers which may be reduced through the course of period. Pursuing in this record we are exploring the Armstrong & Kotler (2006) marketing blend (4P's) principle with culture and design a online marketing strategy form Indian customers. In this particular statement we will apply the global online marketing strategy of the IKEA and keep maintaining balance between globalisation benchmarks and Indian market understanding.
Usunier (2000), the online marketing strategy for any business should be globalised but the marketing concepts can be designed according to the customer and cross ethnical marketing needs. The main strategy of IKEA is to attract as many as customers by adaption through local market segments. The next section will clarify the marketing strategy by the IKEA in co regards to Indian culture.
Product is an important part of any Retail based business which must be based on the needs and demand of local customers. The showrooms should be designed based on the Indian style and can also incorporate quality and design of the products based on the customer preference. A large variety of the products will be viewed in the showroom ranging good deal to high price along with mixture prices. Taking into consideration the Indian culture and style of cooking, 4 types of meat cleavers and 7 types of spoons and forks along with the western design of products will be shown. Taking into consideration the Indian culture which has a different combinations of colours included in it, the design of the showroom will be coloured with different blend of colors. During "Diwali" (Indian event of equipment and lighting) IKEA may bring new selection of products with less and affordable price to the Indian market. During this event people usually refurbish their houses and bring in new products with their new home. New designs and furniture's can be quite effective in Indian markets apart from the local furniture stores. However this step will definitely cost in investment to IKEA but will also help in attracting the customers and increasing sales. For example, IKEA offers mattresses in Sweden as in various sizes such as 70X 200 cm, 90X 200 cm, 120X 200 cm, 170X 200 cm. But in they can be displayed as solo bed, double foundation, big double bed etc. which also considers the Indian culture because in Indian people believe sleeping in two different mattresses creates problems in human relationships in the house in line with the Indian Vastu shastra.
The main feature of IKEA is product packaging of its products which contains a simple wrap like materials used to repay the products. However in India people appears to like their product wrapped in a material in a way that no deterioration is done to product. IKEA can utilize the low recyclable materials to make such ranges which will be cheaper to the other presentation materials. Utilizing the recyclable materials IKEA will the stand by position its environmentally friendly organizations. Differentiating IKEA from other furniture showrooms IKEA can open up in store restaurant serving Indian cuisines and Swedish cuisines to the customers. Indians love eating that may add as a income to IKEA. Free home delivery and installation charges services can be provided to the clients under a nominal price and can been given a choice of minimizing this charges through direct payment of the high range products. Branding plays an important role for just about any company and IKEA can donate to branding by getting involved in the Indian culture.
Price plays an important parameter in getting customers for any business organisations in any world market. Reduce in the costs can help IKEA in getting customers. Reduce in the costs will help in increasing the sales for IKEA. Considering India most of the market inhabitants is in middle class and IKEA with low prices can struck this large middle income human population with appropriate online marketing strategy. This prices can also be changed during the festive seasons and new products can be viewed with appropriate prices reducing the loss factor of IKEA. Full furniture designs can be shown in the brochures and real designs can be shown in the showrooms. IKEA has a policy of getting and receiving customer worth through low prices.
Place provides a medium of communication between the organisation some or the other form if the products are provided to the clients with time and on time it creates some kind of the reliable romance between corporation and customers. After learning through the logistics, travel routes with easy traffic IKEA can start showrooms in town where thier are top quality income customers and middle income customers which would be easy for customers to attain the showroom and possible for IKEA in travel of these products through logistics. The showrooms will be designed according to the Indian culture depicting various colorings with colourful floorings and corresponding the furniture designs which can give the clients and idea about how they can furnish their homes. Considering the located area of the IKEA showroom and traffic problems in Mumbai, IKEA can assist in underground carking parking facilities charging a nominal price for car parking. The timings of the showroom will be from 10am to 10pm daily through year. Future investments can be viewed as in attracting more middle income customers by opening showrooms in suburbs and building successful distribution system between the two showrooms. This can help in reducing the prices and reaching more customers through Mumbai.
Promotion can be an important element in any marketing strategy for any business organization. Advertising involves sub categories such as advertising, sales parameters, pr and personal advertising and other marketing techniques used for promoting products. Adverts can help IKEA build customer connections through ethnical means. IKEA has its known coverage of not using personal offering and offering limited alternatives to the clients, it desires its customers to have a range of products in order to select their favorite ones. IKEA can display the various colour combinations of floor coverings and products which goes with the furniture's and can create local employments by employing staffs to help the clients related to any products. IKEA can promote its products through adverts through TV, newspaper publishers and dropping out brochures in some home areas. IKEA can promote its new products during festival seasons and catch the attention of more customers. Internet been a major market for sales of the merchandise IKEA can advertisement through internet by advertisements through various websites and personal website offering each information needed by the customer. IKEA can promote its products during event season giving free home delivery over purchase of Rs. 30, 000/-. An advertisement must been done in British and Hindi for better communication to the Indian customers. Through advertising IKEA can reach to its customers for better sales and services. IKEA can build its pr by letting customers know on purchase of products more than Rs. 20000/- a well known amount of Rs. 4000/- will go into charity aiding poor children's in Mumbai.
This marketing combination (4P's) Product, Price, Place and Advertising in blend with Indian culture can be handy in applying the online marketing strategy for IKEA covering every single factor required to set up in Indian market. The ethnical awareness of the market can help in designing the online marketing strategy and adapting 4P's in line with the market. This social awareness of the marketplace can help IKEA in building a strong foundation in market and making it different from other organizations. Multinational company can make use of this marketing mix (4 P's) for establishing them self in any international market and adapting the 4P's based on the cross cultural marketing techniques in new international marketplaces.