Market Segmentation of Ikea

Would it not be convenient if you could find all your necessary home appliances in one place? As if that is not great enough, you can find everything at reasonable pricing and quality. Well, guess what? There is a Swedish founded company that is called IKEA, and it sells home accessories and furniture. A lot of people swear by this company, making it an excellent fit for any homeowner. This retail chain is obviously incredibly successful and is one of the leaders in its industry. So, this blog is going to cover different aspects of IKEA’s marketing to uncover the story behind its success.

To begin with, we are going to take a look at the segmentation strategy of Ikea.

To help us in doing so, we are going to watch this short video:

In this video, we are following the life of a young couple with a baby. It turns out that they have surprise guests. That means that they are supposed to tidy their house and make it feel like home for their guests.

The man tries to stop the elevator from reaching his parents. The woman, meanwhile, cooks something in the kitchen to have food set on the table.

They then tidy their living room and pour the food into serving plates. Incredible! They can now welcome their unexpected guests. 

Of course, they have a nice multipurpose table in their living room that gets larger if more people are sitting near it. The video ends with the lovely family having dinner after the chaotic incident. But wait! Neighbors memorize the elevator trick for their wellbeing.

Now, what can this video tell us?

One thing that we can for sure gather from this video is that these people are perfectionists. Being young parents, they could get away with their house being a little messy because taking care of a baby takes a long time. However, if they are going to have guests over, then their house better be crystal clear.

The second hint that we get from this video is the importance of family. The whole video is filmed in a setting to show the significance of spending quality time with your loved ones.

And lastly, the beginning of the video makes it obvious that it is valuable to participate in the upbringing of their child. That means being present and helpful for every moment while a kid is learning to do new things.

We can surely guess by now that the segment that IKEA has chosen to target is Actualizers.

Lifestyle and values:

It would not be wrong to say that Actualizers are most likely getting to face victory in anything they select to seek after. That is since they think ahead and work hard. 

Actualizers have a perfectionist way of living that has been demonstrated to bless them with positive outcomes. 

A lot of the time, this segment is flawlessly upbeat with their life. They take off the circumstance in relief as they know what they crave and have the implies to achieve it.

Actualizers are goal-oriented but select to maintain a strategic distance from the dangers that come with it. Their work is not just a way to win cash. 

But work is something Actualizers really adore doing and are enthusiastic about. They work hard to be upbeat where they are career-wise. 

Still, in most scenarios, it is most critical to select family first. Family may be a central center for Actualizers. Money comes and goes, but family ought never to be taken for granted.

Actualizers that have children, beyond any doubt, take an interest in their childhood as much as they can. Actualizers need to teach their children and empower them to continuously learn something new. 

Childrens’ physical wellbeing is additionally just as critical. That is why, Actualizers do everything that they can for their kids to be nourished and keep a healthy, adjusted lifestyle. 

Actualizers like working out with their kids and their husbands and wives for a family quality time. They try to work out at least once a week.

This segment is favored with extraordinary judgment skills. They cherish learning almost expressions, diverse societies, music, and universal events. 

This segment truly tries to keep up with the fast improvement of technology. This segment is environmentally conscious. They constrain their utilization of plastic and recycle it since it is vital to do one’s part in trying to protect the planet that we live on. 

Actualizers are too curious about speaking up regarding social issues—for the occasion, diverse violations and violence. 

This segment knows how to spend its cash. They never squander anything. They are extremely careful with it. Be that as it may, in the event that they have to get a quality item, they will be willing to spend some additional finances on it. 

Actualizers care about their consolation more than they do for their fashion. So, when shopping, they hunt for cozy stuff to coordinate their closet.

Attitude to shopping:

A lot of the time, Actualizers buy things from luxury brands. That is because, overall, quality is the most imperative aspect. 

At whatever point a new item drops out, Actualizers are on their way to purchase it. This segment likes to be productive when they are out shopping. 

They arrange their shopping ahead of time, so no time is squandered. For example, they will choose a store where they can buy all their essentials.

Some of the time, Actualizers will purchase stuff from local brands. Of course, individuals ought to give smaller businesses a chance.

Interesting facts about Actualizers:

• They need to spend a reasonable amount of time with their loved ones around home.
• Are in the hunt for substantial home entertainment.
• They are interested in arts and music. They also spend a significant amount of time reading and watching films.
• Appreciate exploring excellent activities for their kids away from their homes. For instance, they adore going on walks, theatres, movie theaters, concerts, etc.
• Occasionally are guilty of eating out.
• Are consistently on the chase for some fresh, intriguing, and fascinating information
• Only watch TV for precise programs.
• Consume the radio more than the average person.

16 Personalities (what is for your business?)

A simple need of thirst, yet Ikea offer products that give much more! Tasty and flavoury products of Ikea sells themselves by not only how good they are, but how accurately the producing companies targeted their segment. They have targeted Actualizers, and enjoy their success till today.

Actualizers are a segment of determined and successful people with a clear vision of what to do. They consider themselves as perfectionists and want to excerpt control over everything in their life. They are family focused and feel responsible for their children’s education. 

Segmentation strategies of Ikea gave them a sense of what to offer, and how the marketing strategy should be designed. Targeting Actualizers made it clear that their customers follow certain life principles, which are essential for shaping their buying behaviors. Actualizers are not the only buyer persona segment. Our book e-book “16 Personalities” include a wide spectrum of buyer personas, each representing different segments and their characteristics. Additionally, the book will give you tips for negotiating and improving your marketing performance.

Next up, we are going to discuss the positioning plan of IKEA.

IKEA implements mono-segment positioning by concentrating on a single client fragment that is cost-conscious and inclined to induce value for cash. IKEA also uses a mixture of Adaptive positioning. This positioning strategy is based on occasionally repositioning items and administrations to reflect changes in client inclinations.

The Swedish furniture chain takes into consideration the energetic nature of client inclinations in planning its products. For example, the increasing popularity of moderation on a worldwide scale has been reflected within the most recent ranges of IKEA items.

IKEA positions itself to target mostly students, employees, and professionals. It searches for loyal consumers that will ensure the long-term success of the company. 

IKEA positions itself as a reasonable domestic and office furniture brand. IKEA’s vision is to offer cheap and reasonable furniture to its target clients as long as they are within the furniture trade. 

Their target clients’ age is 22 and more, and they generally live in urban areas. IKEA’s target clients incorporate single and married individuals who have constrained salaries.

This Swedish furniture brand is able to offer cheap furniture to its clients since of the plan of the furniture. That permits IKEA to create a specific item in bulk and disperse them in an expansive amount. 

IKEA furniture is too simple to carry from store to domestic areas for a client, and its direct plan permits clients to modify the furniture without additional labor fetched.

The brand is celebrated for advertising great quality items at a lower cost than its competitors. Their furniture is of the present-day plan, and proprietors can upgrade their furniture habitually as it is affordable.

Last but not least, we are going to discuss the marketing mix of IKEA.

Before doing so, let’s first define the marketing mix.

The marketing mix indicates four concepts regarding a company. These include product, pricing, place, and promotion.

Because all of those words begin with the letter “P”, the marketing mix is sometimes called the “4Ps.”

Let us examine them one by one.

Product:

IKEA is one of the driving worldwide retail chains spread over the world. Items advertised by IKEA cover a wide run, and the offerings are within the company’s showcasing mix. IKEA offerings can be broadly isolated into open-air furniture, infant and children’s items, eating, washroom arrangements, work areas, mirrors, beds, mattresses, chairs, cooking, dress storage, decoration, relaxation, and security items. 

Separated from this, IKEA moreover keeps kitchen cabinets and appliances, lighting, small storage, couches and rockers, storage furniture, food tables, etc. IKEA also offers carpets, devices and hardware, TV and media furniture, and remote charging. 

All these grants an outline of all the items and merchandise which are accessible at IKEA stores. As of 2021, IKEA offered over 12000 items in over 50 nations.

Place:

IKEA has got a fabulous place and distribution technique as a portion of its promoting mix. Distribution is based on the taking after standards. 

IKEA incorporates a worldwide conveyance network. It has colossal volumes on fabricating side and level bundles. It is valuable in expanding esteem to weight proportion. 

IKEA has over 25+ distribution centers and has commercial operations in more than 50 nations. 

Over 12,500 items are sold at more than 350 IKEA stores around the world. 

Obtaining materials in nearness to the supply chain to decrease transport costs are a few procedures embraced by IKEA. Items are exchanged from providers to IKEA stores straightforwardly. This diminishes dealing with costs, reduces transportation, and brings down the carbon footprint. Moreover, stockrooms are joined to retail stores.

Price:

IKEA competes with different worldwide retail chains as well as nearby general stores. Low costs contribute to the IKEA vision, trade idea, and concept. 

IKEA makes low-cost furniture for families and workplaces. It focuses on fetched control and practical operational subtle elements. 

This permitted IKEA to lower its costs over the decade to 2010 amid a period of worldwide development. 

IKEA permits not only lower costs but also freebies at the IKEA restaurant chains during the weekdays. 

Promotion:

IKEA centers a parcel on its marketing exercises. IKEA employs advancement apparatuses like TV, print, online advertisements, announcements, etc., in its promoting blend. 

IKEA propelled a UK-wide promoting campaign which was named home is the foremost vital place, and utilized signs like “Not for Deal” composed on them as a portion of the campaign. 

A metro preparation copying IKEA in fashion was highlighted in Novosibirsk. A promoting campaign was propelled to gauge whether men or ladies are more awful at domestic acts. The campaign begins publicizing a shot in the live gathering of people, featuring four stand-up comedians, two men and two ladies. They are debating about which sexual orientation is more awful. 

The thought behind the campaign is that a social clutter leads to a struggle that can be dodged, concurring with IKEA. In the meantime, online promotions advanced IKEA items illustrating the issues confronted by individuals and advertising arrangements.

And that concludes the “Market Segmentation of IKEA” blog. We looked at its segmentation strategy, positioning strategy, and marketing mix to better understand how it remains so successful. For reading more blogs like this, make sure to check out our main page. There, we constantly update our feed with new blog articles.