Sample Marketing Paper on IKEA



IKEA is a retailer that specializes in affordable and good quality home products, for instance, side dishes and furniture. The company sells furniture and other equipments at prices which are affordable and thus has become one of the leading companies that retails in furniture in the whole world. This paper analyzes the current situation of IKEA, its target market and the current marketing problem, alternative solutions to the problem and comes up with recommendations.

Analysis of the current situation

The company has a global brand with a strong brand image which has made them, to maintain loyal customers and attract others. IKEA has introduced flat packed furniture and thus made it easier for customers to take purchases with them, cutting out the expense of stocking and delivery (Kowitt, 2015).

SWOT analysis

Strengths, IKEA offers products which are well designed and thus appeals to a broad market. The ability of the company to produce a variety of products has made them retain many customers and attract others through referrals in the whole world.

Weaknesses, the locations of the stores of the company are not easily accessible to some people who live in some remote regions of the world. This has made potential customers to seek alternatives from other competitors of the company whose stores are easily accessible so as to save transportation costs.

Opportunities, the current dynamics in the world market have increased the demand for cheap furniture and other home products which are produced by IKEA. IKEA offers a broad range of furniture and thus the company is in a good position to capture the growing furniture and floor coverings market in the whole world (Ikea Group SWOT Analysis, 2016).

SWOT analysis table

Threats, the economic slowdown that has characterized the whole world has decreased the store traffic of IKEA and thus reducing its overall sales. The company also faces various obstacles and barriers, for instance, laws of certain countries in trying to venture into new markets.

Environmental factors like cultural norms, consumer expectations, anticipated target markets, likely geographic marketing areas; India’s evolving consumer dynamics play a crucial role on the company. IKEA packages its products based on consumer expectations and the cultural norms of the place in which products are destined. Target markets and the geographical marketing areas, for instance, Indians evolving consumer dynamics play a vital role in determining the design of products that are destined for such locations. The company incorporates initiatives, which are friendly to the environment, for instance, putting up strategies which aim at protecting pollution of the environment. The developments that have taken place in the company’s external environment highlight the need to reconsider corporate social responsibility policies regularly and through dialogue with the organization’s various stakeholders (Maon, Lindgreen and Swaen, 2010).

Target market

The target of the company is young people who need furniture for their new homes at affordable prices. IKEA targets people of low income who like quality products at cheaper prices like students in higher institutions of learning who will form a large market because they tend to be in the low-income category and want to buy furniture for the first time.

Target market pictures

The problem

The world economy has been affected by the current market dynamics which has decreased the demand for furniture and other products of the company thus leading to a drop in its sales. The main customers of the company are low income earners who have resorted to buying basic necessities unlike furniture which is seen as a luxury. The policies and regulations that have been put in place by Indian authority is another problem that is facing the company. The laws and policies have created barriers to IKEA and made it difficult for the company to easily navigate the promising Indian market. The company’s problems are due to a stipulation by the government that at least thirty percent of Ikea’s inventory must be made in India. IKEA also has issues with workers who want to work overtime to get more money which contradicts the company’s internal daily limit of eight hours.

Alternative solutions

The company needs to expand its network to other unexploited market of the world so as to solve the problem of decreased sales. This network will be crucial in fostering development of IKEA’s products and technologies, and in sustaining efficiency in its daily operations. The company needs skills in many areas like marketing, retailing, logistics, purchasing, product development, and technologies (Baraldi, 2008). A large network in the whole world will ensure that the company has access to a wider market which will in turn increase the traffic flow in the stores of the company thus increasing the overall sales and profits realized. The main advantage of this course of action is that it will increase the market of the company thus increasing its profits. The disadvantage is the large capital that will be used to increase the network because of the large capital that is needed.

Recommended course of action

IKEA should set up warehouses in different parts of the world whereby products that are shipped from the headquarters are stored before they are distributed to remote places. The company should then monitor the traffic flow of the products from different warehouses that have been set up in different unexploited markets. Stakeholders in IKEA should then use the information distributes different products in the unexploited markets based on demand of that location.


Baraldi, E. (2008). Strategy in Industrial Networks: Experiences from Ikea. California Management Review, 50(4), 99-126.

Ikea Group SWOT Analysis. (2016). Ikea Group SWOT Analysis SWOT Analysis, 1-9.

Kowitt, B. (2015). It’s Ikea’s World*. Fortune, 171(4), 166-175.

Maon, F., Lindgreen, A., & Swaen, V. (2010). Ikea’s Road to Corporate Social Responsibility. Retail Digest, 76-83.