Identify the company’s Strengths and Weaknesses from internal factors. • Identify the company’s Opportunities and Threats from external factors
CASE ANALYSIS GUIDELINE
- 1 page-
Introduction: Identify current issues (problems) based on the case. ---1 paragraph
• Identify the company’s Strengths and Weaknesses from internal factors. • Identify the company’s Opportunities and Threats from external factors
Articles include company’s current marketing strategies (4Ps), target market, competitors’ marketing strategies, marketing environments (internal and external factors that related to the company). ** Do not use articles that already done SWOT analysis. You need to find several articles that explain internal /external factors of the company and make your own SWOT analysis.
When you write SWOT analysis, it does not have to be a complete sentence. Use some words. (ex: high brand name recognition, high price, consumers’ price sensitivity). Each item should have a citation (ex: author last name, 2013). For citations, see APA style information that is posted on Moodle.
Focus on US marketing since you will choose your target market from US. Find at least 5 facts for each S, W, O, T with citations. For introduction and SWOT, no need to explain your opinions. It should be facts and need citations. * The situation analysis should be no more than 1 page.
-2 pages –if you need more space, you may use up to 3 pages-
Your critical thinking is very important. Do not explain current situations and do not cite. Write in your own words. First, identify the most profitable target market. Elaborate upon your ideas when suggesting your 4Ps marketing strategies by focusing on your target market. You need to develop strategies for all Ps (Product, Price, Place, and Promotion) and each P should be consistent.
 First, choose a target market from the U.S. since international markets are complicated due to cultural differences and are beyond the scope of the case analysis. Also, choose a consumer market (not B2B) market since we don`t have enough information about B2B market.
Why do you need to choose a target market? The Company needs a broad range of markets. However, it is hard to suggest for multiple markets since different markets have different needs and wants. Your case analysis should focus on ONE market (for example, college students, 3-5 years old children and their parents). Choose the best market for your suggestions.
 Develop marketing 4Ps strategies by focusing on the target market. First develop a product strategy. Then, develop price and place strategies for the products that you suggested. The last one is promotion. For promotion, you need to consider the target market media usage for promoting the products that you suggested. Without a product strategy, you cannot develop price, place, and promotion strategies.
** You need to focus on how the weaknesses can be improved, and how to maximize the strengths, as well as how the company can use their opportunities and minimize their threats. This means your
CASE ANALYSIS GUIDELINE
strategies should be developed based on your SWOT analysis. However, do not develop 4 ps strategies for the entire company’s target markets and products. You must focus on your target market when you develop 4 ps strategies.
** When you develop your suggestions, apply marketing concepts and explain your suggestions using marketing terms. ** However, do not explain marketing definitions.
# How to use the textbook
When you develop your ideas, use the textbook and apply the knowledge that you learned in the
class to your marketing plan. However, do not explain marketing definitions.
Chapter 2 (p. 22)
Chapters 10, 11, 12
Chapters 13, 14
Chapters 15, 16, 17, 18
Target market: Use various bases (pp. 146-152) when you identify the best market for the company. Then, explain why the target market is the best market and define the target market characteristics. ** Focus on the U.S. market and consumer market.
Product strategy: Product line and mix (pp. 184-188), product modification (pp. 186-187), repositioning (pp. 187), product line contraction (pp. 187-188), brand strategy (pp. 188-), co- branding (pp. 191), packaging (pp. 193-196), etc.
Pricing strategy: price skimming, price penetration, status quo pricing (pp. 362-363), tactics for price (pp. 364-370), discount (pp. 365), odd-even pricing, price bundling (p. 369), etc.
Place strategy: marketing channels for consumer product (p. 245), multiple distribution (pp.246), digital channels (pp.248-250), levels of distribution intensity (pp. 251-252), non-store retailing (pp. 258-261), etc.
Promotion strategy: Types of advertising (pp. 292-294), media decision in advertising (pp. 297- 301), major public relations tools (pp. 304-307), consumer sales promotion (pp. 309-311), crowdsourcing (pp.335), social media tools (pp. 339-334), etc.
The final paper will be graded on clarity of thought, critical thinking and analysis, creativity and grammar, i.e., those things that conveys your knowledge and understanding of marketing principles and its components.
IKEA is known around the world for its stylish, quality, and low-cost furniture and home furnishings. The company’s success is based on a strategy of operational excellence in production, supply chain operations, and marketing. IKEA—wildly popular in Europe—has leveraged its brand reputation to penetrate markets in other countries. However, its penetration of the U.S. market has been hampered by a weakened economy and the inconsistency between the traditional U.S furniture market and IKEA’s low-cost operating philosophy. IKEA must find a balance between its operational excellence strategy and U.S. consumers’ demands for customization, good service, convenience, and quality.
----------------------------------------------------------------------------------------------------------------- IKEA is one of the most popular and iconic brands in the world. From the beginning, IKEA was founded on different principles—namely, frugality and low cost. Most furniture companies offer service and advice in settings where salespeople compete for sales commissions. However, IKEA founder Ingvar Kamprad recognized that customers were willing to trade off typical amenities to save money. Today, the no-frills frugality is the cornerstone of the IKEA caché and the reason for its immense popularity. IKEA’s marketing strategy is based on building customer relationships. IKEA’s vision and core operating philosophy makes this clear:
The IKEA Concept: Provide functional, well-designed furniture at prices so low that as many people as possible will be able to afford them. Creating a better everyday life for the many people.
IKEA provides stylish, functional, low-cost home furnishings that customers must assemble themselves. This enables IKEA to save money on manufacturing and distribution, which they then pass on to customers in the form of lower prices at retail. To compensate for the customer having to do-it-themselves, IKEA offers other services that make this proposition a little more attractive. These extra services include in-store child-care and play areas, restaurants, and longer store hours.
Today, IKEA is Sweden’s best-known export. The company had 2011 worldwide sales totaling EUR 25.2 billion and an annual growth rate of almost 7 percent. Roughly 79 percent of IKEA’s sales come from operations in Europe, with North America and Russia/Asia/Australia contributing 14 percent and 7 percent, respectively. The company has 131,000 employees and more than 325 IKEA stores in 38 countries, with 287 of these stores in 26 countries belonging to the IKEA Group. The remaining stores are owned and operated by franchisees. There are currently 38 U.S. stores, with 11 stores in Canada. IKEA had originally planned to have 50 stores operating in the United States by 2010, but the 2008-2009 worldwide economic recession slowed IKEA’s plans.
IKEA considers the United States an important part of its plans for global expansion. The U.S. standard of living is higher than most countries; however, most American consumers actively buy into the cost-conscious mentality. The value of the U.S. dollar is stable and not prone to wide exchange rate fluctuations. The United States has very high Internet usage, and IKEA’s sustainability efforts are welcomed by a wide margin of the consuming public. Another factor
that makes the United States favorable to IKEA is its melting pot of cultures. The IKEA Concept can appeal to the different lifestyles and ways of life found in the United States.
Despite these advantages, IKEA must address two key issues regarding U.S. expansion. The first is the need to adapt to the preferences of U.S. consumers. American consumers are very demanding and tend to reward marketers that go out of their way to address individual tastes and needs. Further expansion into the U.S. market will require IKEA to adapt its offerings and stores to local tastes—a marketing strategy that is much more expensive to deliver and contrary to IKEA’s cost-conscious operating philosophy. Another adaptation issue involves IKEA’s promotional strategy, which must be tailored to U.S. standards. For example, most of IKEA’s television commercials are considered too “edgy” for American viewers.
The second key issue is quality. Although American consumers are increasingly value-driven, they also demand quality products. In this regard, IKEA’s low-cost, do-it-yourself concept misses the mark for many potential furniture consumers. Many Americans view self-assembled furniture as being lower in quality, and similar to the types of furniture one might buy at Walmart or Target.
Facing these challenges, IKEA’s U.S. expansion has moved slowly. The company opened only three U.S. stores from 2009 to 2012 and does not plan to open any new U.S. store in 2013. IKEA’s low-cost, do-it-yourself marketing strategy is not a perfect match for U.S. tastes in furniture retailing, nor does the company have the financial resources and marketing experience to roll out a large number of products and stores simultaneously. The most recent economic conditions have not helped either. As the company looks toward further expansion into the U.S. market, it must consider a number of relevant issues in both its internal and external environments.
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