Báo cáo quá trình phân tích hoạt Động marketing của ikea tại thị trường châu Á

Rivalry Among Existing Competitors 12 CHAPTER III: THE ANALYSIS OF IKEA COMPANY’s SWOT AND ITS... As a European company, IKEA has encountered challenges in adapting to eccentric cultural

TONG LIEN DOAN LAO DONG VIET NAM TRUONG DAI HQC TON DUC THANG KHOA QUAN TRI KINH DOANH

DAI HOC TON BUC THANG

TON DUC THANG UNIVERSITY

BAO CAO QUA TRINH

PHAN TICH HOAT DONG MARKETING CUA IKEA

TAI THI TRUONG CHAU A

Giang vién hwéng dan: Ths Dang Truong Thay Anh Sinh viên: Nguyên Ngọc Hải Vên

MSSV: 721H0687

TPHCM, tháng 09 năm 2023

2.1 Rivalry Among Existing Competitors 12

CHAPTER III: THE ANALYSIS OF IKEA COMPANY’s SWOT AND ITS

CHAPTER I THE APPLICATION OF INTEGRATED MARKETING IN

BUSINESS 1.1, The Integrated Marketing Theory

"Integrated marketing” is a component of holistic marketing According to Kotler et

al (2018), holistic marketing is a combination of beliefs and practices that emerged as a product of the new marketing realities in the early years of the 21st century Integrated marketing occurs when businesses make marketing decisions by integrating various marketing activities with the goal of creating value for customers through a clear and concise marketing message that aligns with the company's objectives

Many years ago, McCarthy classified various marketing activities into 4 broad kinds, which he called the 4Ps of marketing or marketing-mix tools: product, price, place, and

promotion

Senior Products &

Marketing management Other services Channels

department , departments Communications  Ạ Price

Fig.1: Holistic marketing model (Source: Kotler et al., 2018)

In modem times, tegrated marketing is more likely to be known as an approach that uses different forms of media, so-called channels, to tell a story or convey an idea All activities in integrated marketing, including advertising, public relations, direct marketing, sales promotion, personal selling and digital marketing, should be worked in

sync with each other to ensure customers and business partners have the same experiences and perceptions with the objectives, images, etc of the company, from that can make it easy to connect with them, increase awareness, brand loyalty, and sales as ultimately

1.2 An overview of IKEA

Founded by Ingvar Kamprad in 1943 and came to life as a mail order catalog business

in the forested town of Almhult, Sweden, nowadays, IKEA is a global home furnishing brand that brings affordability, design and comfort to people all over the world In the international market, according to Forbes, IKEA operates 422 stores in more than 50 markets Nearly 70% of the stores are located in Europe The best countries for ICEA are Germany (15% of sales) and the U.S (14%) In 2022, Total retail sales for FY22 reached EUR 44.6 billion (~ USD 47 billion)

Number of Stores of IKEA Group Worldwide (2022)

As a European company, IKEA has encountered challenges in adapting to eccentric cultural and regulatory environments like Asian markets, one of them 1s to indicate to local residences by modifying the brand message to meet local “insight” & preferences without losing its vision & strategic objective Hereafter, this essay will discuss how IKEA penetrate some of the Asian country market with its integrated marketing strategies

a) Advertising

Many advertising campaigns that IKEA launched around the Asian market had come What they have in common is that the same message can be localized differently to fit the local people in different markets, which are also excellent statements for not only the brand image, but also the values of the products - which are gradually creeping into the daily lives of people there Beside that, IKEA takes advantage of many kinds of advertising to attract local audiences with a connected tone of communication

IKEA’s Public Relation Affairs in Asia markets have a function to protect IKEA’s brand identity as well as communicate its vision, its ideas, its concepts and its values to clients Also, public relations have the role to inform the journalists, press and media agencies about new products, new collections and events of the firms in press releases

They also manage IKEA's owned media sites (Newsroom) & owned press release distribution for sharing brand stories

FRA

market to attract customers, boost sales, and create excitement around their products They offer many deals and promotions for both online stores and offline stores Some of them are: Seasonal sales and Discounts, IKEA Family Program, Limited-Time Offers

IKEA Family BENEFITS OFFERS ACTIVITIES SERVICES POINTS FORGOOD LOGIN

New Movers Package

Get a $600 IKEA Gift Card & Free Delivery

with a min spend of $4,000

Got yourself a new place? Whether you're renting or moving to a new nest, we've got a great deal for you!

Exclusively for IKEA Family members Valid for in-store purchases only T&Cs apply

The club that brings your ideas to life

Some clubs are for the select few, but IKEA Family is for you and everyone who wants to make life at home better From those whose homes are their passion, to those who are just starting out and need a helping hand Just by being a member, you'll receive IKEA Family rewards, discounts, experiences and a few

surprises all year round, Because we know it’s nice to feel appreciated

Fig 8: IKEA Family program in Singapore (Source: family.ikea.com.sg)

Fig 9: Variety of furniture on sale at Cheras IKEA Store

e) Personal Selling

In some Asian markets, IXEA may offer additional services like home delivery, assembly, and customer support They may have staff available to answer customer questions, provide guidance, and assist with the purchase process, but the level of personal selling is generally lower compared to other traditional furniture retailers This strategy is consistent with IKEA's cost-efficient and standardized business model pf) Digital Marketing

Asian countries have a young population, their peoples are relatively agile with technology, and somehow they (people) like closeness and relatedness Understanding this, ICEA was actively using digital marketing strategies in Asia, as it does in other parts

of the world IKEA's digital marketing efforts in Asia may include the following elements:

- Website:

Ra] HHNEB PB ADM ¡jRÌHSỒ EM Ríê THAPP Q A#£ 2 © @

SERS

WHRIRE, (8itS, 190 Fig 10: Website of IKEA China (Source: ikea.cn/cn/zh/)

- Social media

The best start to your day

is a good night's sleep

See more bedroom >

Fig 12: Content Marketing on the thumbnail of a bedroom tab on IKEA website

(Source: ikea.com/sg/en/rooms/bedroom/)

IKEA Shopping App

Shop online at your fingertips

Download for free at

Google Play or App Store

Fig 13: IKEA shopping app on IKEA Thailand website

(Source: itkea.com/th’en/customer-service/mobile-apps/)

CHAPTER II THE ANALYSIS OF IKEA’S COMPETITIVE ENVIRONMENT IN

ASIAN MARKET

In this chapter, the competitive environment of IKEA would be discussed by using Porter’s 5 Competitive Forces Model

RIVALRY AMONG THREAT OF NEW ENTRANTS:

EXISTING COMPETHORS: THREAT OF NEW Barriers to entry

= Number of competitors E ‘i f scal

Diversity of competitors G0, 2112 Brand lovely scale

Industry concentration Capital requirements

Industry growth Cumulative experience

Government policies Access to distribution channels Switching costs

BARGAINING POWER OF BUYERS:

Number of customers Size of each customer order Differences between competitors Price sensitivity Buyer’s ability to substitute

BARGAINING POWER OF SUPPLIERS:

= Number and size of suppliers

= Uniqueness of each supplier’s product

= Focal company’s ability to substitute

THREAT OF SUBSTITUTE PRODUCTS:

= Number of substitute products available THREAT OF Buyer’s information availability

= Buyer propensity to substitute Switching costs

= Relative price performance of substitute SUBSTITUTE

= Perceived level of product differentiation PRODUCTS

Switching costs

21, Rivalry Among Existing Competitors

IKEA competes with numerous rivals in the furniture industry across Asian countries, including both international and domestic brands

- In China, some of its competitors include Min Wah Holdings, Oppein Home, Suofeirya, B&G, American Woodmark, and Pepperfry

- In Japan, competitors include Nitori, Muji, and Hida Sangyo, among others Each of these brands has its own unique marketing-mix strategy, which may involve: focus on specific product categories (such as sofas), product design, brand value, etc This places pressure on IKEA to differentiate itself, overcome cultural barriers, and win the favor of the audience in this highly promising furniture market

2.2 Threat of New Entrants

The furniture industry is a complex field, which could not easily be entered due to the need for significant investment while relatively long capital turnover times Competing with a player like IKEA today is quite challenging for small entrants However, because Asia is a mid-range market with significant potential, the emergence of new brands targeting this segment could create competition, mainly in terms of pricing, and impact customer loyalty towards IKEA in the respective countries

2.2 Threat of Substitutes

In various Asian countries, there are numerous options for interior decoration products and services that are offered by both local manufacturers and different international brands These brands invest m the variety of designs and quality, specializing in their main product categories Additionally, these brands can also leverage pricing strategies to capture attention and compete for customers with IKEA

2.3 Buyer Power

In Asia, customers have different shopping preferences and demands for quality and service due to the unique geographical, behavioral and cultural factors A common trait among them is the desire to purchase affordable products of good quality However, their pressure regarding price and quality is not excessively high because they understand the concept of "you get what you pay for." Additionally, Asian consumers tend to make purchases once they have sufficient information about a product and recognize the value

of a brand they perceive worth spending on This implies that there is significant pressure

on IKEA to provide information about the brand to customers through various means and enhance brand love in order to meet the expectations of Asian consumers

2.4, Supplier Power

IKEA collaborates with suppliers and sources products and materials from 55 countries, including those in Asia, even within the country of the market Therefore, the strength of its suppliers can increase for various reasons For example, there might be increased competition among local manufacturers providing similar products, or the uniqueness of

a supplier's product This can create pressure to increase prices or limit options for IKEA

CHAPTER III: THE ANALYSIS OF IKEA COMPANY’s SWOT AND ITS

CUSTOMERS SEGMENT IN ASIA

3.1 SWOT of IKEA

IKEA has been a well-known brand

is trusted for affordable, sustainable

and innovative products

IKEA has a clear vision

IKEA's pricing appeals to

cost-conscious Asian consumers

Maintains competitive pricing and

product availability

Original Concepts: for instance, the

“showroom”

Original designed products

Adapting to diverse Asian cultures and preferences is complex

IKEA has been involved in multiple scandals, like COVID-19-related supply chain issues

Large store formats may not suit all Asian markets

Customers may not get used to the matching furniture that IKEA offers

- Expanding middle-class consumers

that seek affordable, stylish

furnishings

- E-commerce growth at Asian

markets broadens IKEA's reach

- Collaborations with local brands

can help navigate complexities

- Investing 1m sustamability, aligns

with the demand for eco-friendly

products Local rivals may have advantages in

understanding local markets Different regulations and import restrictions can pose challenges Cultural differences require careful marketing and product adjustment Political, economic, and environmental factors can disrupt supply chains

3.2 IKEA Target Customer Segment in Asia

- Focus on people between the ages of

16 and 34 Gender Males & Females Life-cycle - Bachelor Stage stage - Newly Married Couples

- Full Nest I and above Full Nest I

- Empty Nest I and above Empty Nest I Occupation The Labor Force, Students, Professionals, etc Behavioral Degree of - Hard-core loyals

loyalty - Soft-core loyals

- Switchers Benefits - Cost effectiveness sought - Functionality Personality Easygoing and determined User status Non-users, potential users, first-time users and

regular users Psychographic | Social class Lower class, working class and middle class

CHAPTER IV: THE BRANDKEY OF IKEA IN ASIAN MARKET

Brand Key Diagram

with Values & Personality, Benefits, Reasons to Believe, Discriminator

Values & Personality Reasons to Believe

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7 Target Competition o@°

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PỰƯ ` Root Strength

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4.1, Root Strength

Ingvar Kamprad founded IKEA in 1943 Initially, IKEA specialized in selling household products, gifts, and fashion accessories made from wood By 1947, Ingvar Kamprad decided to add wooden furniture products to IKEA's product range Just four years later, wooden furniture became the brand's strategic and sole product line During that time, the furniture market and wooden furniture were highly competitive However, IKEA continued to grow to the point where people in Europe would often say,

"My child was born in an IKEA crib, slept in an IKEA crib, while my spouse and I sat on

an IKEA couch, ate with IKEA utensils, and that pile of IKEA utensils was also stored in

an IKEA cabinet."

The product direction and style of IKEA stem from its founder, who came from humble beginnings and remained a humble person "Flatpack" is the innovative packaging concept that has been one of IKEA's brand strategies from the beginning and is still in use today