IKEA Product Line Development - Essay Example

IKEA Product Line Development IKEA is a multinational retailer with about 314 stores in more than 39 countries. The company has established its presence in different countries, evidenced by retail housewares and furnishings. IKEA has developed a brand of home goods retailers renowned by customers across the globe. The primary mission of IKEA is to provide customers in different parts of the world with a diverse range of furniture and accessories at remarkably low prices (Burt, Johansson, and Thelander 184).

The company focuses on promoting functionality because IKEA stocks a diverse variety of products in its stores. This paper focuses on IKEA’s product line of sofas and armchairs. A close analysis of the IKEA brand reveals that it has a diverse range of products stocked in different stores. In the case of sofas and armchairs, the company offers various designs, and customers can choose from a broad range of modern sofas and armchairs. The sofas are made from different materials, a factor that increases the diversity of products with the evident demand for diversity in furniture.

IKEA has taken the right steps in providing customers with what they need. Notably, many people have moved from the traditional perspectives that affected the choice of furniture. With the increased dynamism in the taste of furniture, IKEA has provided its customers with a broad range of products that exhibit a high level of vitality in agreement with the modern trends (Cooper 45). IKEA provides fabric sofas, sofa beds, chaise lounges, modular sofas, footstools, leather sofas, and armchairs. The focus of IKEA has been to offer quality furniture at reduced prices.

The company recognizes that many people are looking for quality products at reasonable prices. For this reason, IKEA follows the cost leadership strategy by minimizing the cost of production to attach lower prices to its sofas and armchairs. IKEA sofas and armchairs have different rates depending on the material and size. However, the prices are lower compared to those of competitors in the market. IKEA targets young consumers who do not have time to purchase furniture during the usual business hours.

Additionally, IKEA recognizes that many of the young people lack the experience of choosing stylish furniture. For this reason, IKEA considers the needs of such consumers. It offers a wide variety of sofas and armchairs of reasonable quality and remarkable designs at low prices (Burt, Johansson, and Thelander 187). Since many of the young consumers do not have experience on how to arrange different rooms in their houses, IKEA ensures that it provides them with a demonstration on how to arrange different furniture in every room of the house.

IKEA customers have the opportunity of viewing different furniture combinations so that they can make informed choices of the furniture they want to buy. IKEA carries out a rigorous commercialization strategy. IKEA creates brand awareness through TV advertising, newspaper, and magazine advertising as well as sponsorships. Additionally, IKEA has recognized the opportunity presented by online advertising forums and takes advantage of them. The company has an extensive distribution channel whose primary purpose is to ensure that customers can get their home furnishings at cheaper prices.

Over 1,600 suppliers manufacture IKEA sofas and armchairs. The ready products are then transported to hundreds of stores in different parts of the globe. The company has a global distribution network and focuses on transporting large volumes (Cooper 60). The company focuses on flat packages, allowing consumers to assemble the products for themselves. The flat packages strategy reduces the cost of transportation. Worth noting is the fact that IKEA’s sofas and armchairs define one of the most competitive brands renowned globally.

Works Cited Burt, Steve, Ulf Johansson, and Åsa Thelander. "Standardized Marketing Strategies in Retailing? IKEA’S Marketing Strategies in Sweden, The UK And China." Journal of Retailing And Consumer Services 18.Nordic Retail and Wholesale Conference (2011): 183-193. ScienceDirect. Web. 15 Sept. 2015. Cooper, Will. "Ikea Steps Up Online Marketing Activity Ahead Of Etail Launch." New Media Age (2006): 5. Business Source Complete. Web. 15 Sept. 2015.