Marketing Plan - IKEA Community

Introduction

This marketing plan is based on creating a new line of real estate development business for IKEA. The idea is that IKEA starts to build communities with houses and apartments in urban city area, and all the houses and apartments will be furnished with IKEA home goods. IKEA is one of the best private furniture based companies in the world which started in a small village of Agunnaryd in Sweden. The main reason for success for the company is its ready to assemble line of furniture such as beds, desks, appliances and different home accessories. IKEA has experience of working more than six decades around the globe and currently operating in 40 countries around the world. The company is the world's largest furniture retailer.

IKEA is moving towards the business diversification as in this competitive world it is very difficult to compete on the basis of single product line i.e. furniture. When it comes to real estate, the degree of control is less. The housing bubble created was a drawback on the government's side. Many factors are included when a crisis hits but then again a government body is responsible for these actions. In this case, the political condition is perfect to support new a line of real estate development business for Ikea (The IKEA Way, 2013).

IKEA will target Baby Boomers because they are entering the prime age group for this product.

SMART Aims and Objectives

Specific

To increase sales of houses and apartments for consumers who prefer IKEA products.

Buyer acquisition charges should be reduced by 8 percent per year.

Measureable

Achieve sales of $580,000 by the end of the year.

Each and every month, positive and steady growth should be observed to support new a line of real estate development business.

Achievable

Effectively associate the IKEA brand name with a new a line of real estate development business so that recognition can be built and trust can be developed.

Retain existing customers.

Win new customers

Realistic

To increase IKEA brand recognition by emphasizing on the brand logo.

Time Specific

The sale of houses and apartments in urban city area should be increased by 10% per year.

SWOT Analysis

Strength

IKEA's strength is based on its structure of manufacturing and their low pricing strategy which has worked for them for many years. Their furniture related background has established strong roots for factory built houses. Experience and expertise in manufacturing lead to quality products (Dahlvig, pp. 78).

The success of IKEA is based on comparatively simple concept of keeping the low price between customers and manufacturers.

Weaknesses

IKEA has a very strong brand name when it comes to its furniture division, but the story is different in its real estate business. Since, the company is planning for diversification, so it is very important for the IKEA to have a close look over the real estate industry to minimize the huge losses in the long run. Economy has a very sensitive effect on real estate businesses. The housing bubble shows that the overall wealth of the economy is poor. Housing bubble causes labor problems, unemployment and ...