Product Promotion IKEA Furniture

Question: Discuss about theProduct Promotionfor IKEA Furniture. Answer: Introduction IKEA Furniture is one of many recognized and well established home-furnishing brands and it happens to be one of many reasonably priced furniture manufacturers in the world. This promotional strategy is directly aimed at promoting its kitchenware range specifically kitchen cabinets and modular kitchen. The promotional strategy is carried out because the sales of its kitchenware have seen a diminishing trend and therefore it has been a key worry for the company. Thus, the company plans to reinforce its sales figures and foster its revenue by the way of various promotional methods which may perhaps appeal its present and potential customers. Aims and Objectives of the Promotion The primary objective of the promotion is to intensify its market exposure all over Australia for its modular kitchen and kitchen cabinets. The promotion activity also aspires to strengthen its sales in order to increase its revenue (Yeshin 2012). Policies and Procedures IKEAs vision is to create a enhanced life for all its customers. The policies and procedures established by the organization aims at creating and nurturing an environment of transparency, trust, mutual respect and flexibility. It policies also aims at maintaining a high ethical standards with humanistic values where diverse people are valued equally. The policies and procedures of the company also aim at embracing the value of distinctiveness and eliminating all the barriers (Ikea.com 2016). Legislative Requirements for Promotion The government of Australia has established various guidelines that serve as official obligations for marketing and promotion in Australia. The law asserts that an organization must not furnish any deceptive information while marketing its products (Business.gov.au 2016).Further, the Australian Consumer Law was established to protect the rights of the consumers against unfair trade practices (Business.qld.gov.au 2016). Products Chosen for Promotion The product selected for the purpose of promotion is the kitchenware range of IKEA (kitchen cabinets and modular kitchen). IKEA offers wide assortment of kitchen cabinets and modular kitchen for the customers to choose from and create a unique combination and make use of the every inch of space available. The unique selling proposition of the products is its ease of installation and more functionality which is offered with 25 years of guarantee and gives more choices at very affordable prices. The two chief products that are considered for promotion are its kitchen cabinets and modular kitchen (Ikea.com 2016). Feature and Benefits (Kitchen Cabinets and Modular Kitchen) Features Innovative and modern design which suits the current market requirements. Superior product quality. Effortless installation. Assistance from the corporation while making a plan for kitchen arrangement. 25 years guarantee of on the products. Benefits The kitchen cabinets and the modular kitchens designed and manufactured by the company are offered at quite affordable prices. The products offered by the company have a greate value for money (com 2016).. Target Group IKEA has a very wide variety of products with state of the art designs its kitchen cabinets and modular kitchens. The main target group chosen for the promotion of this product is young couples and families. The main objective behind choosing young couples and families is because young couples love to maintain a high standard and style amongst their peers and families are chosen because they are the most frequent visitors to the IKEA stores (Hollensen 2015). Characteristics of the Target Group Some of the principal characteristics of the target group for its kitchen cabinets and modular kitchen are: Price Conscious: Customers these days have grown far more conscious than they have ever been. The customers of the current era look for price which would offer maximum value for their money. Quality Conscious: Apart from expecting maximum value for their money, customers expect whatever products they buy should be of superior quality. Stylish and Standard: People these days are judged on the basis on style and standard they maintain and this is prevalent chiefly amongst the newly married couples or high middle income families. Expects Guarantee and Durability: It is said that nothing comes with a guarantee but it is impossible to sell products to the customers without any guarantee. When families or young couples spend their hard earned money on various products, they expect it to last for longer duration. Proposed Promotional Technique The main promotional techniques for kitchen cabinets and modular kitchen that would be applied during promotions are in-house promotions via catalogues and point of sales promotion. Further, the company will focus on large scale promotion through its website and television (Walters and Nilsen 2014). Promotional Cost The expected funds for the promotional activities of kitchen cabinets and modular kitchen is 10 per cent of their total marketing budget i.e. 10 million which will be spent largely on the internet and television campaigns as internet is a growing phenomenon which has attracted most of the people all over the country and since the catalogue promotion have been economical and effective source of promotion for the company, it will be used as well. Action Plan Principal Activities Week 4 Week 6 Week 10 Week 14 Selection of Target Market Identification of various sources of promotion Selection of most appropriate method Developing Strategies Figure: Gantt Chart (Source: As created by the author) Budget Plan Key Activities Expected Expenditure ($) Website and Search Engine Promotion 3 million Television Promotion 2 million Social media Promotion (Facebook, Twitter, Instagram and other) 4 million Catalogue and Point of Sales Promotion 1 million Total 10 million Figure: Budget Plan (Source: As created by author) Justification for the Promotional Technique The above stated techniques used for promotion of kitchen cabinets and modular kitchen because its target group is young couples who uses internet very often, therefore it would be convenient to reach them over the internet. Further, the in-house catalogue promotion, point of sales promotion, and television promotion would be convenient for the customers who visit the stores very often like the families (Walter and Nilsen 2014). Marketing Objectives and Business Objectives The marketing objective of IKEA is aligned with the organizational objectives which aim increasing its market presence and revenue through sales. The marketing objective of IKEA is aimed at increasing the sales through promoting its kitchen cabinets and modular kitchen at an affordable price. Further, the marketing objectives of the company aim to retain the existing customers as well as attract new customers. Promotional Activities and Marketing Objectives Promotion is the final phase of any marketing activity. During this phase of the marketing, the company focuses on developing several feasible strategies through which the company could inform the customers about the products. It is the most essential component of the entire marketing activity because the main objective of marketing is to educate customers related to the products of the company. It also helps employees to achieve their personal targets and generates maximum revenues for the company as well as the investors. Cost Effectiveness of Promotion Technique This technique of promotion applied in this particular aspect (kitchen cabinets and modular kitchen) are catalogue promotion, television and internet promotion is cost effective as it generates maximum value for money to the organization as these methods have very wide market coverage which helps the company to generate more sales from its existing customers as well as to attract new customers. Conclusion The promotion plan of IKEA to promote kitchen cabinets and modular kitchen is aimed at expanding its market share through education of the customers through its various promotional activities. It describes the various policies and procedures of the company. Further, it also mentions the various laws and regulations that are needed to be followed by the company while marketing in Australia. The report also summarizes the various product categories of the company. The target market or group of the company is defined and the characteristics of the target group have been defined and the promotional techniques adopted by the company are defined. References Business.gov.au. (2016).Legal obligations of marketing. [online] Available at: https://www.business.gov.au/info/plan-and-start/develop-your-business-plans/marketing/legal-obligations-of-marketing [Accessed 20 Nov. 2016]. Business.qld.gov.au. (2016).Advertising regulations | Queensland Government. [online] Available at: https://www.business.qld.gov.au/business/running/marketing/advertising/advertising-regulations [Accessed 20 Nov. 2016]. Hollensen, S., 2015.Marketing management: A relationship approach. Pearson Education. Ikea.com. (2016).AODA Customer Service Standard - IKEA. [online] Available at: https://www.ikea.com/ms/en_CA/customer_service/ikea_services/IKEA_AODA.html [Accessed 20 Nov. 2016]. Walters, A.S. and Nilsen, W.E., Yuno, LLC., 2014.Social network connection-driven product promotion. U.S. Patent Application 14/503,495. Yeshin, T., 2012.Integrated marketing communications. Routledge.