MKT501 Strategic Marketing - Mod 1 SLP - Essay Example

Marketing Module SLP: Analysis of a Branded Product of the of the Mod SLP: Analysis of a Branded Product Introduction A brand may be thought of as a distinctive name given to a particular product or service offering that identifies its manufacturers or owners. Every brand name has its own history and it is most likely that this has taken time, effort and commitment. Taking a name such as Revlon lipstick or IKEA furniture indicates both its quality and its ability to satisfy our needs. Thus the brand name in time becomes synonymous with quality, satisfaction or other pleasing qualities that differentiate it from other firms and products of a similar nature.

In this paper we are going to discuss various elements of brand identity such as the target market, targeted customer segments, competition and brand positioning. I have decided to take IKEA furniture as my selected brand. The Company’s Target Markets The IKEA brand name is synonymous with its founder, Ingvar Kamprad, who started the business in 1943 in his home country of Sweden at the tender age of 17 years. IKEA is today the world’s single biggest furniture retailer. The company caters to a wide variety of clients who often have varied and different motivations for the purchase of furniture.

Apart from the usual chairs, tables and sofa sets that make up part of almost everybody’s homes, there are also different motivations or needs to purchase a certain piece of bedroom furniture or computer table for example (Kotler & Keller, 2006) . If I were to define a typical IKEA furniture buyer anywhere in the world, I would say that he or she is typically in the age group of between 17 to 45 years old, comes from a middle class background, is upwardly mobile in his or her profession, which most typically includes administrative and clerical duties, though this may cover middle managers as well in different types of organizations from banking to computer based and legal professions.

I would expect that the buyer would be computer oriented, like to follow the latest trends on Twitter, Face-book and Flickr, spends about half of his or her waking hours linked via the Net or I-Phone or latest Blackberry model, and lists Men’s Health, Cosmopolitan and ISDN among their favorite magazines. They would rather get together at weekends at the local pub or outdoor restaurant and exchange viewpoints on their career, office politics, the latest celebrity scandals, how to repay their credit card debt and what will become of their nation due to the ever-present recessionary trends that make them thankful that they are at least employed and single, and therefore able to avoid the mundane and oh so boring responsibilities of life.

Responsibilities, marriage and children are last on the minds of these yuppies as they sip their coffees or cocktails safe in the openness of the outdoor French café. Weekends are for dancing and having a good time, partying the night away. Why I Believe This Characterization is Accurate I have developed this picture of the typical urban metropolitan consumer as he or she sees furniture as a means to entertain guests and office colleagues once in a while. The reclining sofa and easy chair can easily be used to seat his or her best friends or office colleagues as they let in on the latest gossip or secret that they are dying to hear.

Also good if a friend wants to stay over for the night. Among IKEA’s furniture offering one is sure to find the cozy chair or reclining sofa set that meets these needs to a T. After all, convenience and comfort at affordable prices is what IKEA has always been about. Competitors Even the best companies in the world have competition and IKEA is no exception. Home Depot and Lowe’s, both American companies, may be regarded as competitors for IKEAs home and office furniture products Interestingly, both Home Depot and Lowe’s do not manufacture or sell their own furniture and home improvement products but just market brands produced by others.

That is why IKEA remains outstanding in this area. As to how customers perceive the differences between IKEAs product and those made by others, there is no denying that there is a certain ingenuity behind the ease in assembling an item of IKEA furniture. IKEA products are meant to be functional, while retaining modernity and a contemporary look that never really goes out of style. If anything, the very look and distinctive color of the wood says IKEA from a distance. They are lightweight and designed for ease of assembly so that even females and teenagers can put them into place following the instructions manual without too much bother.

In fact IKEA loyalists do not mind paying a slightly higher price for the IKEA brand compared to Home Depot and Lowe’s offerings, due to the above reasons. IKEA’s Positioning Strategy Regarding this marketing element, I would say that IKEA positions itself as a low cost, easily affordable home and office furniture retailer while emphasizing on quality, functionality, ease of assembly and contemporary appeal. After all, 326 stores in 38 countries mean that IKEA must be doing something right.

IKEA has over 12,000 products on offer in every area of home improvement that one can imagine (IKEA Website, 2011). Due to its sheer size and brand image, IKEA quickly moves to among the top 3-4 spots in whichever country it is introduced in a short span of time. Conclusion We have looked at IKEA, the world’s single biggest retailer of easy to assemble furniture and home improvement items, and seen how its image, brand identity and marketing principles make it among the first to be chosen when it comes to contemporary home furniture choices.

References Kotler, P. & Keller, K. (2006). Marketing Management: Analysis, Planning, Implementation and Control, 12/e. Prentice Hall International. The IKEA website. Accessed on 13 Oct 2011 at www.ikea.com.