Chapter 4: The Marketing Environment

The environment surrounding IKEA furniture store is diverse because everybody need (or want) their own furniture. Thus, IKEA is taking it into account in order to satisfy different needs and wants.

Social Factors

One of external environmental factors business has to consider is social factors because it is unchangeable and affects customer’s lifestyle, preferences, and expectations. IKEA is taking component lifestyle into account. They understand that people have their own tastes. IKEA’s products are wide in their design and style. For example, they have 83 designs for only fabric sofas and 50 designs for only leather. Some of the products are very simple in design while some are fancy. There are many options for customers who have own lifestyle and tastes.

Demographic Factors

Demographic factors are also very important to think about. We have to know what kind of race and how old our customers are in order to satisfy them because there are differences depending on their demographics. IKEA is selling products for baby’s and kids as well as teenagers and adults.

Ethnicity Factors

Also, it is very important to consider ethnicity. I’m from Japan and have met a lot of people from all over the world. One of the things that I have noticed is that different ethnicity has its own preference. However, I do not see that IKEA differentiates its products according to ethnicity. Nevertheless, every product lines have some simple but modern products so that they fit into almost all lifestyles. Also, customers can assemble parts and create their own products

Economic Factors
IKEA’s one of the missions is to produce products affordable to as many people as possible. Thus, their product price range is wide so that from people with high purchasing power to ones with low purchasing power can buy their products.

Technological Factors
IKEA’s another mission is to make energy they use 100% renewable so they have made solar energy and wind turbine teams to cover up the energy they use. Also, they keep producing environment friendly products (i.e. bottom of my Chapter 3 blog). In addition, they hire their own designers rather than outsourcing so that they can improve their techniques and design.

Political and Legal Factors
IKEA has a lot of lawyers all over the world so that their products or their business do not violate the laws. However, some IKEA’s tv commercials are controversial and banned.  

 

 

Competitive Factors

So far, IKEA is the top in affordable global furniture store segment. Their competitor includes Bed Bath & Beyond. The reasons why IKEA is the leading company are that they have competitive advantages that I wrote in my Chapter 2 blog. Along with the fact that their products are good, just walking their store is fun because their stores are designed to entertain the customers. They have a lot of model rooms, children-play-area, and even restaurant where the customers can try Swedish foods. There is no doubt that many people visit IKEA.