IKEA Case Questions BUS710 PDF

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Franciscan University of Steubenville BUS 710 – Marketing Management Team members names: (type here) Questions to address in your case report on IKEA 1. What factors account for the success of IKEA? (20%) The factors that account for the success of IKEA are the low prices offered for the quality of the furniture being offered. The prices are low and the furniture quality is high and there is a wide variety of furniture types being offered which appeals to multiple types of customers which brings more success for IKEA.

2. What do you think of the firm’s product strategy and product range? Do you agree with the matrix approach described in Figure B of the case? (30%) I do agree with the matrix approach described in Figure B. I think the high, medium, low approach with the different types of style is the right approach for IKEA. I think the different types of styles mixed with the high to low approaches is perfect because based on different styles you have different price ranges. Different price ranges have to vary based on the quality and style of the product.

3. What is the IKEA value proposition? What is IKEA’s positioning with respect to the traditional range of furniture retailers?—from low- to high-end. You will want to draw a perceptual map for the traditional range of retailers. You may want to include IKEA on this map or propose a different perceptual map for IKEA’s positioning. (30%)

IKEA’s value proposition is low price with meaning. Their value proposition is IKEA offers low price products with meaning and that their products are best then their competitors and are being offered at a low price that is affordable for IKEA customers. I think IKEA’s positioning with respect to the traditional range of furniture retailers is furniture retailers focus on case goods which are tables, dressers, dining room suites, bedroom furniture. They also focus on selling upholstered furniture which was bedding, casual furniture and such. IKEA’s positioning to these retailers is IKEA offers so much more than a traditional retailer. That is what separates IKEA from other retailers because they specialize in so much.

4. Despite its success, there are many downsides to shopping at IKEA. What are some of the downsides? IKEA’s vision statement (Figure C in the case) describes how the company seeks to build a “partnership” with its customers. What do you think of this vision statement? (20%)

Some of the downsides to IKEA is the size and locations of things throughout the store. IKEA is such a gigantic store that has many different levels that is very confusing to many different shoppers. First time shoppers that come in can get lost and very confused because of just how many levels and the size of the store. The location of many different products is confusing because it can be confusing how hard it is to find a product based off which level it is. A downside to IKEA is they may offer too much products. From offering products of all different areas for your home it can be too much to offer to shoppers and they could get overwhelmed by how much there is to offer. Things may be too much to handle for customers trying to differentiate what product they should look for and buy and what type of product is the best for them....