1

Title: -

Date: -

Submitted to: -

Submitted by: -
 2

Contents
Title: -....................................................................................................................................................................................................................................................... 1

Introduction.............................................................................................................................................................................................................................................. 3

Summary of Situational Analysis & Direction.......................................................................................................................................................................................... 3

Opportunities & Threats..................................................................................................................................................................................................................... 4

Strategic Objectives........................................................................................................................................................................................................................... 5

Target Segment.................................................................................................................................................................................................................................. 5

Critical Discussion of Strategic Planning Options..................................................................................................................................................................................... 6

4P’s Marketing Mix........................................................................................................................................................................................................................... 6

Price............................................................................................................................................................................................................................................ 6

Product........................................................................................................................................................................................................................................ 7

Promotion.................................................................................................................................................................................................................................... 8

Place/Distribution........................................................................................................................................................................................................................ 9

Strategic Implementation & Control....................................................................................................................................................................................................... 10

Conclusion.............................................................................................................................................................................................................................................. 11

References.............................................................................................................................................................................................................................................. 12
 3

Introduction

The report demonstrated as under is based upon the introduction to launch a new product within IKEA. The main objective is to introduce apparel and

clothing lines throughout the business. It has been observed that IKEA has been facing several equality and diversity issues, which can be resolved by introducing

apparel and clothing lines of all cultures and traditional backgrounds. IKEA will stand out in the market by selling the same quality products at affordable prices.

IKEA's new clothing and apparel section is well comprised of clothing wear for all types of customers, male-female, of all ages and genders, irrespective of any cultural

barriers. For this purpose, the report has been formulated, comprising a summary of the situation analysis for IKEA and the direction in which the company must lead

forward (Nyqvist & Vernet, 2021). The report discusses the strategic objectives, threats and opportunities, and target segment for IKEA. After this, a strategic 4P

marketing mix has been carried out as follows, along with the strategic execution of the strategy.

Mission

IKEA will aim to manufacture casual wear clothing line, having favorable prices, eco-friendly to lead in the market competitively, without being restricted

to furniture items.

Vision

To enhance the rate of sales and benefit the business monetarily, but to help break the criticism observed during the workplace by creating differentiation

in the clothing line to recycle and reuse the fabric (Garnier & Poncin, 2019).

Summary of Situational Analysis & Direction

The situational analysis for IKEA has been evaluated as follows, which comprises the present market condition of the company, indicating the direction in

which the company is supposed to lead.

Opportunities & Threats

Throughout the recent decade, consumer marketplaces in developing economies expanded by at minimum 5 percent annually, creating enormous prospects

for IKEA's profitability. IKEA has several possibilities to penetrate Brazil, Mexico, Indonesia, and Malaysia to boost their footprint within such regions and maintain

ongoing development. Digital retailing purchases accounted for 17percent and 4 percent of overall retailing transactions in the UK and US, correspondingly (Pires et

al., 2019). Having 870 million foreigners on its homepage, IKEA might capitalize on this advantage and profit from more revenues and decreased expenses. IKEA

possesses the ability to grow its supermarket sector through opening new grocery shops in its existing retail locations.
 4

Several low-cost stores, including Walmart, ASDA, and Tesco, have been approaching the specialized homeware sector dominated by IKEA. Many major

merchants offer comparable characteristics to IKEA, such as low prices, a well-managed distribution network, and a broad global footprint. They could readily capture

market position away from IKEA. With increased incomes, individuals would be lesser drawn toward IKEA and more likely to shop at businesses that provide higher-

quality homewares. Internet dealers who provide reasonable rates and distinctive furnishings and decoration merchandise are becoming more popular (Yurt, 2021).

Customers that favor sustainable shopping frequently discuss stability these days. However, raw materials wastage and rapid manufacturing might currently harm the

ecosystem. The dangers facing IKEA it is detrimental to the corporation's growth and requires IKEA to provide specific strategies to retain its marketplace dominance.

Strategic Objectives

IKEA seeks to provide a diverse selection of household furnishings with good appearance and functionality, great craftsmanship and sturdiness, and cheap

pricing, which most consumers can manage. IKEA has created a roadmap paper entitled "Three Roads Forward" to support this project that describes the furnishings

company’s strategic orientation until 2025. This likewise serves as the cornerstone of IKEA's decision-making: aiming to cut the prices by 15% more than the normal

market price (Kim, 2018). The ultimate objective is to remain "cyclical" and completely environmentally neutral. This indicates that until 2030, the firm intends to

employ exclusively sustainable and recyclable resources in its goods. The goal of increasing the IKEA company is to achieve human and environment friendly through

2030. Because of its scale and influence, IKEA has the potential to motivate and allow over one billion citizens to persist in healthier lifestyles under the constraints of

the earth.

Target Segment

The Scandinavian territory contributes to the bulk of selling settings, accounting for 80%, as per the North American region, that provides worth 15%, and

the remainder 5% determines the Asian land and Australia. According to the data, IKEA's targeted audience is focused on Europe, America, and especially the Asian

area. Consumers like simple and organic designs and furnishings that could be substituted around any moment in line with their personal preferences, cultural patterns,

and expectations. IKEA divides the earnings into three categories: lower wealth, moderate wealth, and wealthy. Their salaries vary from $15000 to $50000, indicating

that individuals are probably budget-conscious households having a lifestyle that necessitates first-time furnishings purchases (Peng, 2022). Females with a mean

lifespan of 38 were the highest likely to attend IKEA. IKEA's consumers are typically youthful and cost-conscious undergraduates or younger adult workers. The

customer demands high-standard furnishings with innovative features that meet their preferences and are reasonably priced.
 5

Critical Discussion of Strategic Planning Options

4P’s Marketing Mix

To critically discuss and outline strategic planning for IKEA's launch of a new product line of clothing and apparel, a 4P marketing mix has been carried

out (David et al., 2022). It comprises the strategic choices available for the firm to maintain a higher rate of sales.

Price

Place/ 4P's Marketing

Product
Distribution mix

Promotion

Price

IKEA being a supermarket, comprises various rivals and comparative available in the market, such as Walmart. Therefore, the business should aim to offer

quality clothing merchandise that is trendy, in fashion, and affordable. IKEA should utilize a cost-effective strategy to attract all types of customers (Papamichael et al.,

2022). IKEA should not aim to sell its products at low prices and minimum discounts throughout the year. Still, it should provide similar quality products with a mid-

price strategy so that the consumers can wear luxury quality clothing lines without higher prices. IKEA should improvise the strategy where it offers clearance sales

daily, assisting customers with slight discounts to reduce excess inventory. In addition, through this technique, the business can update its collection and range of

products priced a bit higher.

IKEA should cut down extra costs and expenses, which is possible, by providing better clothing. The initial prices should start from 5$ and lead to a

maximum of 70$, depending on the product sold. For instance, innerwear will be charged between 5-30$ for males, and for women, it will be 10-40$, based upon the
 6

variety it incorporates. The price set for women's jeans will be 15-25$, although it will be kept a bit higher for men's jeans at about 20-30$ (Araújo et al., 2022). This

pricing strategy of IKEA will be further reduced based on holidays and occasional events when there is a reason for discounts and sales. In addition, shipping charges

across borders will be separately counted, such as cargo shipping. IKEA must also improvise a psychological type of pricing strategy since there is a diverse range of

products being offered by the business.

Product

Ikea will ensure excellent merchandise quality. Merchandise excellence is preserved through value creation at various levels of the supply channel. Ikea

will always buy raw materials through reputable vendors. Such raw components should be processed in precisely monitored conditions to ensure excellent and

continuous customer satisfaction. Ikea should produce and sell goods that are generally simple for use (Biondi & Russo, 2022). These items must include an easy user

handbook that includes basic product directions. The firm's target demographic should be males and females aged 12 to 30. As a result, the products offered would be

fashionable and of top condition.

The products included within the cloning line of IKEA must include t-shirts, jeans, and undergarments, for both men and women. In addition, some other

clothing wear can be scarves, caps, and gloves, which will be included in the accessories section of the retail market. Since the branches and subsidies of IKEA have

been expanded throughout the globe, the business should inspect the product quality and effective distribution by the business across all retailers once the clothing line

has been launched. Clothing wear for children starting from age 12 and leading to adults will be included (Puglieri et al., 2022). Another product strategy that will

prove effective for IKEA is to include a diverse range of sizes within the clothing line, including a separate section for plus-size men and women. This will break all the

criticism available in the market and community, targeting customers using emotional intelligence. In addition, IKEA will offer certain policies to exchange the product

for 15 days, along with an increase in the trial rate.

Promotion

There are several tools and techniques that IKEA should improvise to promote and market their product across all the company's subsidies. These

strategies include social media marketing, through which social media platform like Facebook, Instagram, YouTube, Snapchat, and Twitter can be utilized to target a

large number of audience which has been maximally seen active on the platforms (Bibri, 2021). Using these platforms, the company can target bloggers and vloggers to

promote their product by making promotional videos via paid promotions, since every region comprises some major influences the audience looks up to regarding the
 7

advice. In addition, feedback marketing is also required to maintain a communication channel with the consumers, for which email marketing can be used to directly

communicate with the target consumers.

In addition, content marketing is also one of the most active strategies used in the current era and should be improvised while IKEA promotes fashion and

brand. A branding strategy should be improvised by IKEA where any changes in the market fashion and style should be addressed to the manufacturers so that any

change required can be made by valuing the customer needs and requirements (Anjelika & Sinaga, 2022). TV commercials, model shoots, attractive videos of clothing

line, and targeting the celebrities for model shoots is also one of the most effective tactics to advertise the new launch of the product.

Place/Distribution

It has been observed that IKEA has already been operating throughout the globe within 63 different marketplaces and comprises about 468 retail stores.

This is already a comparative for the business to maintain a strong market position within the clothing line. For this strategy to be more effective, market analysis

should be carried out after every 6 months by IKEA to examine the changes in consumer behavior and assess the feedback of customers regarding the clothing line

specifically (Rahmawati, 2022). Since the markets operating across the border have been showing higher business growth, it will be easy for the new product of

clothing line to expand and penetrate the market.

IKEA, manufacturing the products, should consider the cultural values and norms of the host country it operates in to align with their choices and

preferences (Estikowati et al., 2022). In addition, e-commerce is one of the most effective distribution strategies that IKEA must maintain to collaborate with online

retailers, such as eBay, Shopify, and Amazon, to benefit from their current market position.

Strategic Implementation & Control

A Gantt chart has been illustrated for the steps required to strategically execute and introduce the new product for IKEA, which comprises the relevant

activities and the period in which these activities will be initiated (Makwana & Patange, 2019). It comprises the finalization of the fabric of to which the production will

be initiated and presented in all of the subsidiaries of IKEA across borders, ultimately leading to discounts and sales after the year ends.

Implementation Steps Jan Feb March April May June July Aug Sept Oct Nov Dec

Finalizing the fabric

Launch of Clothing Line

Running Social Media Ad

Sending PR’s

Webpage advertisement

Promotional Videos

Start Content Marketing

 8

End-year Discounts

To ensure that the steps executed for IKEA to launch the new product line are progressing or leading to success, some of the key performance indicators

are evaluated for the strategic plan of the new apparel launch.

Implementation Steps Key Performance Indicators (Metrics)

Finalizing the fabric Long-lasting and does not damage after washing or drying.

Launch of Clothing Line Smooth shipping and supply chain management.

Running Social Media Ad Sales up to 6% rise quarterly, a large number of followers, higher Leeds,

Sending PR’s Positive reviews.

Webpage advertisement Large traffic on websites.

Promotional Videos The number of views on reels and videos.

Start Content Marketing The engagement of customers.

End-year Discounts Increase in the rate of sales.

Conclusion

Hence, from the above discussion, it can be concluded that IKEA can expand its closing and apparel product line using the abovementioned techniques

and tools. For the successful marketing plan execution, a strategic implementation and control framework has been performed as above, and the respective key

performance indicators will ensure the firm's success rate (Gardašević et al., 2022). The situational analysis above provides a view of the direction in which IKEA

should lead. It can also be stated that the strategic planning of IKEA requires innovative and latest market trends to maintain a strong market position, as discussed in

the above section.

 9

References

Anjelika, F., & Sinaga, T. M. (2022). Influence of Marketing MIX 4P (Product, Price, Place, Promotion) On Purchase Decision at PT. Alfa Scorpii Setia Budi Branch

Medan. Jurnal Mantik, 5(4), 2239–2246. http://iocscience.org/ejournal/index.php/mantik/article/view/1966

Araújo, G. R., Kato, H. T., & Corso, J. M. D. (2022). Dynamic capabilities, strategic planning and performance: a virtuous and mutually reinforcing cycle. Journal of Management

& Organization, 1(1), 1–17. https://doi.org/10.1017/jmo.2022.33

Bibri, S. E. (2021). Eco-districts and data-driven smart eco-cities: Emerging approaches to strategic planning by design and spatial scaling and evaluation by technology. Land Use

Policy, 1(1), 105830. https://doi.org/10.1016/j.landusepol.2021.105830

Biondi, L., & Russo, S. (2022). Integrating strategic planning and performance management in universities: a multiple case study analysis. Journal of Management and

Governance, 1(1). https://doi.org/10.1007/s10997-022-09628-7

David, M., David, F., & David, F. (2022). The Quantitative Strategic Planning Matrix (QSPM) Applied to a Retail Computer Store. The Coastal Business Journal, 8(1).

https://digitalcommons.coastal.edu/cbj/vol8/iss1/4/

Estikowati, Alvianna, S., Patalo, R. G., & Hidayatullah, S. (2022). Influence of Product Quality, Price and Promotion on Purchase Decisions on the Marketplace

Shopee. International Journal of Research in Engineering, Science and Management, 5(4), 114–118. http://www.journals.resaim.com/ijresm/article/view/1961

Gardašević, J., Carić, M., Kovačević, M., & Egić, S. (2022). Presentation of the strategic analysis model of significance for company operations and strategic decision

making. Ekonomija: Teorija I Praksa, 15(1), 81–97. https://doi.org/10.5937/etp2201081G

Garnier, M., & Poncin, I. (2019). Do enriched digital catalogues offer compelling experiences, beyond websites? A comparative analysis through the IKEA case. Journal of

Retailing and Consumer Services, 47(1), 361–369. https://doi.org/10.1016/j.jretconser.2018.12.011

Kim, B. (2018). An Exploratory Analysis on Strategic Changes of Furniture Retailer: Focusing on IKEA and Hanssem in Korea. Journal of Distribution Science, 16(12), 33–45.

https://doi.org/10.15722/jds.16.12.201812.33

Makwana, A. D., & Patange, G. S. (2019). Strategic implementation of 5S and its effect on productivity of plastic machinery manufacturing company. Australian Journal of

Mechanical Engineering, 1(1), 1–10. https://doi.org/10.1080/14484846.2019.1676112

Nyqvist, J., & Vernet, V. (2021). Stickering of Food Products at IKEA – Improving a Process Through Learning from Others. Lup.lub.lu.se, 1(1). https://lup.lub.lu.se/student-

papers/search/publication/9051026

Papamichael, I., Pappas, G., Siegel, J. E., & Zorpas, A. A. (2022). Unified waste metrics: A gamified tool in next-generation strategic planning. Science of the Total

Environment, 833(1), 154835. https://doi.org/10.1016/j.scitotenv.2022.154835

 10

Peng, Y. (2022). An Analysis of Experiential Marketing Strategy—Taking IKEA as an example. Applied Economics and Policy Studies, 1(1), 643–666. https://doi.org/10.1007/978-

981-19-0564-3_64

Pires, A., Ávila, P., Putnik, G., Varela, L., Cruz-Cunha, M. M., & Caldeira, R. (2019). THE POTENTIAL OF VALUE ANALYSIS APPLICATION IN THE FURNITURE

INDUSTRY – A CASE STUDY AT IKEA. International Journal for Quality Research, 13(4), 863–874. https://doi.org/10.24874/ijqr13.04-08

Puglieri, F. N., Salvador, R., Romero‐Hernandez, O., Escrivão Filho, E., Piekarski, C. M., Francisco, A. C., & Ometto, A. R. (2022). Strategic planning oriented to circular business

models: A decision framework to promote sustainable development. Business Strategy and the Environment, 1(1). https://doi.org/10.1002/bse.3074

Rahmawati, I. (2022). ANALISIS PENGARUH MARKETING MIX (PRODUCT, PRICE, PLACE, PROMOTION) TERHADAP KEPUTUSAN PEMBELIAN FREMILT THAI

TEA DI KOTA SURAKARTA. Agrista, 9(4). https://jurnal.uns.ac.id/agrista/article/view/58744

Yurt, C. (2021). Analysis of sustainable living experiences through product range and home furnishing knowledge: The case of IKEA. Acikbilim.yok.gov.tr, 1(1).

https://acikbilim.yok.gov.tr/handle/20.500.12812/635964