Ikea & Conforama marketing

Résumé du document

Nowadays, customers are more and more demanding and seek the best product that fits their needs and likes. Marketers also have been forced to face up to fast changes and trends. Besides, a company cannot answer to all consumers' needs so it has to choose whom its product or service will address. The aim of the report is to highlight segments of importance in marketing through theory and examples. We have chosen two big companies involved in the same industry: home furnishing products. These companies are in competition in the same market because both provide home furnishing, decoration and home equipment at a lower price. However, both the companies have two different ways of segmentation and their strategies are different. The first is the Swedish company IKEA and the second is the French company CONFORAMA from PPR multinational. In this report, we will first define the main concepts about marketing segmentation in order to see the importance of segmentation. Then, we will show how big companies such as IKEA and the French competitor CONFORAMA answer to consumers and what are their own segments.

Extraits

[...] (1972) backwards segmentation using hierarchical clustering and Q-factor analysis. you can divided a larger market into smaller segments with different preferences and subsequently adjust your product (or service) to the preferences in the different segments, then you reduce the overall distance between what you are offering to the market and what the market requires. By doing so the marketer improves his competitive position.” Westwood,J. (2002) The marketing plan, a step-by-step guide added that you can also aim your promotion and advertising specifically at profitable segments of the market. [...]

[...] IKEA furniture is well known for its modern, utilitarian and design products and for its self-store. Business Ideas IKEA's view is to offer a wide range of well designed, functional home furnishing products at prices so low that as many people as possible can afford them. IKEA's mission is to contribute a better everyday life for the many people by offering strong quality product. The IKEA aim is to have the same designed premises in the world with a minimal of employee. [...]

[...] Place: - In store, salesman advises young couples. For example, if you want to buy a kitchen, you can draw it by sticking stickers on a plan and the salesman will enter your data in software to realize a real plan and a 3D view of the kitchen of your dream. - Packaging is flat in order to ease transport. Marketing mix for segment ABC1 group a single manager Price: - Idem - Certain items such as accessories and decorative things are more expensive than standard and basic products. [...]

[...] They targeted on the whole market of consumers who need to buy home furniture product. In consumer minds, CONFORAMA is a company which provides home furnishing and home equipment at reasonable prices. Consumers see the brand as a traditional company with a wide range of style and with special discount offers sometimes. To illustrate CONFORAMA's positioning, we have realized a mapping with two axes. We have chosen from one hand multi-style because it is the main value that the company highlights to differentiate from the competitors versus standard style and to the other hand low price versus high price. [...]

[...] So, IKEA provides a wide range of products for special occasions. For example, gifts and wrapped papers for birthday, Christmas decoration - For people who need time, IKEA provides food services in addition. You can eat during shopping. Promotion: - Advertising billboards focus on the easy and practice IKEA arrangement. For example, a billboard showing a multi arrangement wardrobe for people who want to keep shirts well ironed. Place: - Idem to segment 2 Part CONFORAMA marketing analysis CONFORAMA's presentation CONFORAMA is a French company which belongs to PPR (Printemps Pinault - Redoute) a French multinational holding company specialized in retail shops and luxury brands. [...]