IKEA and Apple, Inc., Essay Example

A Geographical and Temporal Marketing Analysis of IKEA and Apple Inc.

IKEA

The perspective of the IKEA marketing division in three distinct countries will be reviewed: IKEA has been established in Sweden as a value product retailer for more than sixty one years. IKEA has been established as a value product retailer in the United Kingdom for the past twenty seven years. IKEA has been established in the Chinese market for over sixteen years. The tests of standardization in the practices of globalization, cultural diffusion and network density will be analyzed from the Asian perspective and subsequently compared to IKEA{s home market of the United Kingdom and Sweden (Burt et al., 2008; Wrigley & Lowe, 2008).

IKEA has been rated as number nine among the transnational retailers with revenues derived from international markets. IKEA is a Swedish brand retailer which possesses retail outlets in over twenty eight nations. IKEA’s gross international sales in 2008 were evaluated at $29.763 billion. The international sales compose 94% of IKEA’s total sales (Burt et al., 2008; Wrigley & Lowe, 2008).

The international aspect of IKEA’s gross sales negates the enduring debate that an organization’s primary gross sales revenue is derived from its domestic markets. IKEA has been described to be a retailer which follows a standard operating procedure. This aspect infers that the marketing principles which have been widely applied in Europe are also applied I the Asian and Australian markets. IKEA has a standard marketing strategy which is composed of the following formula: Merchandising + store design + location = success (Burt et al., 2008; Wrigley & Lowe, 2008).

The foundation of the IKEA perspective is merchandise. IKEA provides a diverse product range at the lowest prices. This aspect enables the IKEA brand to be associated globally with excellent geographic positioning. The locations of the IKEA brand retail outlets are usually in the suburban areas of the primary municipalities of a nation. This strategy enables IKEA to qualify its customer base as being clients who travel to the IKEA store by automobile (Burt et al., 2008; Wrigley & Lowe, 2008).

The colors which are applied by IKEA are similar throughout its stores. This characteristic enables a uniform perception of the IKEA brands. The IKEA brand applies distinct room dimensions in the various cultures. The IKEA brand is cognizant that the usage of household space in Asian nations is distinct from the usage of household space in European and North American regions. The IKEA brand applies the same to the marketing perspectives in all of its markets worldwide (Burt et al., 2008; Wrigley & Lowe, 2008).

The IKEA brand strategy is that the gods must be purchased from its retail store, and then subsequently transported to the home where they are assembled as finished products by the consuming family. In addition, the IKEA brand applies a catalog as a marketing implement. The catalog which is applied as a marketing tool is available in seventeen distinct languages which are spoken in over twenty eight different nations. The models which are used in the IKEA catalogs are representative of the culture which IKEA is representing.  The IKEA stores have a density of seventeen stores per sixty million residents in the United Kingdom and seventeen stores per nine million residents in Sweden (Burt et al., 2008; Wrigley & Lowe, 2008).

IKEA has experienced worldwide success with its retail outlets as a result of its application of the 4 P marketing combination. The IKEA brand has developed as a successful global brand due to its aspect of applying the $Ps marketing combination. This combination implies having the correct product, in the correct place with the correct price and promoting these aspects by using the correct promotion (Burt et al., 2008; Wrigley & Lowe, 2008).

Apple, Inc.

The Apple brand was developed from a concept which was invented by Steve Wozniak and Steve Jobs in the 1970s. Apple Inc. created and maintained a competitive advantage by applying a video monitor and a diskette reader interface which was applied for viewing and documenting programs. Apple, Inc. applied a particular design in its subsequent products which incorporated a digital media communication and audio visual playback device. Apple, Inc. created products which had been innovative, high quality and unique in the digital media line. Today Apple, Inc. worldwide network is assessed at a value of $75 billion (Paley, 2006).

In 2012, Apple Inc. had been able to market over 14 million Tablets worldwide. This quantity was two hundred percent greater than the nearest competitor for the global market. Apple, Inc. applied the 4P marketing combination (Promotion, place, products and price) Apple, Inc. had been able to create a market niche by developing digital media products which customers wanted and needed. Each product which Apple developed supported the previous product research and development. Apple Inc. had been able to create a worldwide market niche by developing digital value products which customers wanted and needed. Each product produced had been supportive of the previous product line.  Apple Inc. has a retail distribution density of about four hundred stores worldwide (Paley, 2006).

Apple’s dynamic pricing by means of geographical location and client situation has been one of its attributes. The prices which Apple, Inc. applies are based on the product, place and promotions.  Apple’s Inc. global marketing strategy, establishing blogs by means of the internet, description of the research and development plans and viral vending strategies is composed of public relation initiatives (Paley, 2006).

Once Apple Inc.  has established its target market, the media resources are applied in order to educate the global consumer base. Apple, Inc. continues media promotion of its products in global campaigns in order to stimulate and maintain consumer interest (Paley, 2006).

Apple Inc. continuously expands and enhances its distribution network by initiating retail stores in major cities. Apple, Inc‘s products have become associated with high quality and product diversity. In addition, Apple, Inc. maintains a solid state of the art customer service department in order to respond to inquiries formulated by the clients. The global marketing plan which applied by Apple, Inc. is composed of promotions which conduct give aways of Apple products. Apple, Inc. Clients experience excellent service and a knowledgeable environment where they can discover more with regards to Apple products (Paley, 2006).

The strengths which Apple, Inc. possesses include innovation, brand reputation retail marketing strategies and superior levels of quality. The weaknesses which Apple products posses are elevated prices, minimal market penetration and the aspect of one of their new products pirating products away from their customer base (Paley, 2006).

Conclusion

IKEA and Apple Inc. have become successful at the application of the 4Ps marketing mix. This aspects has made it so that Apple, Inc.  and IKEA have been able to specialize with regards to culture diffusion and geographical  markets. Apple and IKEA are successful examples of the application of international marketing strategies which are based on cultural diffusion, geographical location and client situation.

References

Burt, S., Johansson, U. & Thelander, A. (2008). Styandardiz3ed marketing strategies in retailing : IKEA marketing strategies in China, Sweden and the U.K.. Ist Nordic Retail and Wholesale Conference in Stockholm 6- 7 November 2008.

Paley, N.(2006). The manager’s guide to competitive marketing strategies . London Thorogood Publishing.

Wrigley, N & Lowe, M. (2010). The globalization of trade in retail services. OECD Policy Linkages and Services Division, OECD Experts Meeting on Distribution Services, Paris 17 November 2010.