A new look for your old ones !!! IKEA Home Furnishing.

Market evaluation is the determination of the strategy that can be seen in the market place implemented by different organization (Wilson and Gilligan 2012). Normally, strategies are the most uncertain procedure and most advertently prone to failure. Strategy is more like saying we should double the company sales to enlarge the business but the statement does not illuminates as to how we can double the sales. In the global world hundred of strategies are made every day so that they can curve out different tunnels to reach their successive goals. Evaluation of those strategies assists the business aspirants to develop knowledge as to how strategies can be made and how certain tactics can make those strategies relevant for application.

1

IKEA was established by Ingvar Kamprad. They started selling furniture after five years and in January 2008 it was marked as the biggest furniture retailer. Most recently they have initiated the eco friendly furniture business which has gained a lot of fame in marketplace. Their innovative ways to evolve in global market place has made them famous.

 

IKEA is an organization which promotes that throwing away wrecked furniture is not the option one should choose when recycling and reusing can occur (Sjögren 2015). What happens when the so called ‘life’ of furniture ends? What ominous outcome does it face? The questions are little too ‘humane’ for the furniture but IKEA asked and come with the solution of recycling and reusing the furniture to revitalize their live and also reducing the wastage of woods. Their target is those people who want to wash their hands of their old furniture. According to a journal published by Yang et al. 2013, recycling the disposable furniture is the technique that is innovative and also marketable. The strategy is not devoid of tactics.

2

The company head Howard is intuitive and has provided good channels through which people can sell the recyclable furniture (Las Vegas Review-Journal, 2016). The idea is quite ‘challenging’ and definitely has prospective value. Their approach is genuine and people are quite happy as they are paying for the objects they were throwing away. IKEA has adapted to the digital culture and they promise are ‘not- so- far’ future people will be able to buy substitute parts for their broken household items. People will be able to order for their broken household parts on the company site and in return they will mail the user with the blueprints that will have instructions about the procedure of repairing that object. They will provide hinges and screws or even with the whole part so that user can repair them without taking expert assistance. Now this is called an idea that can change the face of global market. Digital and market effectiveness of a product holds great importance in global market. IKEA has come up with the strategy that is market effective and digitally significant (Maier et al.2012). The price of their furniture is lower compared to other companies and their sales rate is higher.

3

 

Marketing evaluation of IKEA has assisted in analyzing the practicability of the techniques that they have implemented. The organization firstly promotes ecological values (Passaro et al. 2015). Secondly, the organization has implemented innovative idea that is still rare in the global market. IKEA has also taken initiative of recycling clothes and textiles. The organization fully depends on the recyclable objects to make their own line of products. But global market is changing every day. Sooner or later this idea will also be implemented by other marketers also. Successful strategies are like freshly baked cakes, once they are out of the oven everyone wants to have it. Same will happen with this strategy also. Now the question is what plans IKEA has for the future. Has their strategist already started scratching their heads or they are still not done with basking in the light of success? Only the time will tell.

 

Submitted By : KONDAL REDDY PISARLA (215150973)

Reference:

Clara Lu, Supply Chain 24/7. 2016. How Does IKEA’s Inventory Management Supply Chain Strategy Really Work? – Supply Chain 24/7 . Retrieved 22-May-2016 from https://www.youtube.com/c/ikeausahttp://www.supplychain247.com/article/how_does_ikeas_inventory_management_supply_chain_strategy_work.

Google Australia. 2016. ikea – Google Search.  Retrieved 22-May-2016 from https://www.google.com.au/search?q=ikea&safe=off&source=lnms&tbm=isch&sa=X&ved=0ahUKEwilzK735u3MAhUCE5QKHcMzDzsQ_AUICSgD&biw=1366&bih=667#imgrc=DNkZNdoLOg306M%3A.

Maier, A., Suarasan, M.M. and Nicoara, F.D., 2012. Innovation-a Must for the Durable Development. Management & Marketing, 7(3), p.479.

Passaro, P., Perchinunno, P. and Schirone, D.A., 2015. Green Marketing and Sustainable Development: A Statistical Survey on Ikea Customers’ Perception. In Computational Science and Its Applications–ICCSA 2015 (pp. 130-145). Springer International Publishing.

REVIEWJOURNAL.COM. 2016. Here’s what IKEA is giving away on its opening day in Las Vegas | Las Vegas Review-Journal. Retrieved 22-May-2016  from http://www.reviewjournal.com/business/retail/here-s-what-ikea-giving-away-its-opening-day-las-vegas.

Sjögren, H., 2015. Design by IKEA: A Cultural History. By Sara Kristoffersson. London: Bloomsbury Academic, 2014. viii+ 148 pp. Illustrations, figures, references, notes, index. Cloth, $29.95. ISBN: 978-0-8578-5814-6. Business History Review, 89(02), pp.364-367.

Wilson, R.M. and Gilligan, C., 2012. Strategic marketing management. Routledge.

Yang, C., Liu, Z., Wang, H. and Shen, J., 2013. Reusing design knowledge based on design cases and knowledge map. International Journal of Technology and Design Education, 23(4), pp.1063-1077.1

YouTube. 2016. Toy Storage for a Kid-Friendly Living Room (Trailer) – IKEA Home Tour – YouTube. Retrieved 22-May-2016 from  https://www.youtube.com/watch?v=7_gSLYMPfZA.

IMC !!! The better way of spreading the message across.

Integrated marketing is one such approach in which the various aspects of the marketing are used in a combination way. It ensures in reduced operational cost, better management of time and functional improvement while leveraging the quality output. The only consideration for this kind of work is the complete understanding of the process. This can be attributed as the key to the success.

integratedmarketing

The major stages of the integrated marketing process lead towards the better simulation of the practical approaches and levels. Thus, often the steps are being merged as well.
For instance, the customer feedback collection can be combined with the data regarding the new product launch.

The important step is to break down the barriers in smaller parts, which help in segregating the responsibilities. This may help in better time management.

Theory of change management

The following step is the proper integration of the tasks according to the priority of the task. This theory describes ways to incorporate the changes in the effective approaches, which is also an important part of the integrative marketing aspects.

 

Capture

The theory explains that in order to bring change in the working aspects three necessary steps are required to be followed. These are, unfreezing the situation by explaining the necessity of the change in the working process. The following step is to demonstrate the changes by making the real example and incorporate new working method. The final step is freezing the situation. This can be done through the creation of the standard operating protocol (SOP).

Here we can take the snickers case. The perception about snickers was different in few parts of the world as an ordinary chocolate bar. The snickers launched Super bowl ad, Berry white contrasted as a male, and the tag line was “You’re not you when you are hungry”.

 

COLvzWkW8AE7zZh

In this add Snickers shows as a chocolate bar that satisfies your hunger. It shows when a person gets hungry, they are not themselves, and their role is threatened. Snickers can satisfy their hunger. Through this integrated marketing the Sales were up by 8%, and there was a constant increase in the subscriptions for YouTube channel. And later they came up with another advertisement campaign named Hunger  Bar campaign.

Implementation process of the integrative marketing

Creating the emotional connection with the buyers regarding the quality and the services of the product is the another part of the integrative marketing. The social platforms can be used extensively in this aspect. In order to do so, best materials are required to be incorporated in the marketing brochures and the social platform contents. Through this approach, the customers will be the able to gain in-depth knowledge regarding the products. This can help in getting half of the job done with minimum cost and the efforts.

Another important aspect is the cross channeling in the market. The business is required to connect every level of buyers. This can help the business to achieve the full potential in the minimum required time. This will extensively assist in extending the existing customer base. However, this may also require creating the provisional segmentation of the products in terms of quality and volume as well. The existing forces in the market and the threats of the substitute are required to be analyzed properly in order to make the product segmentation.

How did CANCER RESEARCH  UK did their integrated marketing to get the funds ????

Cancer Research UK needs individuals to consider how a straightforward mark could cure malignancy. Their battle, made by Nuclear London, wires TV, print, to get the word across was a successful one. Atomic London highlighted the advertisements through print and film to guarantee that a steady message was spread to the audience that expected to hear it.

Cancer-Research-UK_482

It was successful  campaign but just reaching out to audience was not the main objective but to raise funds. As per  site, it’s “Be Sure about Tumor” campaign – which takes after a comparable guide to the mark battle, has spared more than 1,000 individuals by persuading them to see a specialist in the event that they have had a hack for over three weeks and after the event 93% of the viewers gave their support to raise the funds.

Submitted by : KONDAL REDDY PISARLA  (215150973)

References

Barger, V.A. and Labrecque, L., 2013. An integrated marketing communications perspective on social media metrics. International Journal of Integrated Marketing Communications, Spring

CRUK. 2016. Cancer Research UK. [ONLINE] Available at: http://www.cancerresearchuk.org/. [Accessed 09 May 2016].

Google Australia. 2016. cancer research uk – Google Search. Retrieved 08-may-2016 from https://www.google.com.au/search?q=cancer+research+uk&safe=off&source=lnms&tbm=isch&sa=X&ved=0ahUKEwio5NSIyMzMAhXmUKYKHVaQAo0Q_AUIBygB&biw=1366&bih=623#imgrc=8VS4gZMg8rMpRM%3A.

Luxton, S., Reid, M. and Mavondo, F., 2015. Integrated marketing communication capability and brand performance. Journal of Advertising,44(1), pp.37-46.

Madhavaram, S., Badrinarayanan, V. and Bicen, P., 2016. Integrated Marketing Communication (IMC): Conceptual and Theoretical Lacunae, Foundational Premises, and Framework. In Celebrating America’s Pastimes: Baseball, Hot Dogs, Apple Pie and Marketing? (pp. 335-336). Springer International Publishing.

Marketing Land. 2016. Snickers Rolls Out New “Hunger Bars” Packaging With Hunger Emergency Hotline Video. [ONLINE] Available at: http://marketingland.com/snickers-rolls-new-hunger-bars-packaging-hunger-emergency-hotline-video-143107. [Accessed 09 May 2016].

prezi.com. 2016. Snickers IMC by Michael Moulton on Prezi. [ONLINE] Available at:https://prezi.com/m1kc3hzqrsdm/snickers-imc/. [Accessed 09 May 2016].

 

Schlinke, J. and Crain, S., 2013. Social Media from an Integrated Marketing and Compliance Perspective. Journal of Financial Service Professionals,67(2).

Shimp, T. and Andrews, J.C., 2013. Advertising promotion and other aspects of integrated marketing communications. Cengage Learning.

Thorson, E. and Moore, J., 2013. Integrated communication: Synergy of persuasive voices. Psychology Press.

YouTube. 2016. Signature Leads to… – YouTube. [ONLINE] Available at:https://www.youtube.com/watch?v=gVJ6THKhCPA. [Accessed 09 May 2016].

YouTube. 2016. SNICKERS You’re Not You When You’re Hungry TVC – YouTube. [ONLINE] Available at:https://www.youtube.com/watch?v=ziTmA8z6X2s. [Accessed 09 May 2016].

PROMOTION !!! The only medicine for new products.

New Product:

If I was asked what is good and service, the first answer that pops in my mind is they are two spheres of marketing. Product can be both good and service; mostly it is an object which can be sold physically or in cyber form. I think brand name is inevitable for selling purpose, as it determines the value of the product is determined by the quality and the component which is targeted. Creating a distinctive name and profile for a product to imprint the product in the mind of the customers, mainly by advertising campaigns are necessary steps to exhibit the product in market (Huang and Sarigöllü 2012). From my perspective, Product marketing can be defined as the process by which product type, geographical region and needs of the customer satisfaction is being scrutinized. Way before the launch of new product, product managers analyze the consumer information by surveying market status of customer needs (Akdeniz, and Voorhees 2013).

Capture 1

This helps them to apprehend the future through fare of the product and also to ensure better engagement with the customers. If I am a customer and I want to buy a product I will calculate how it will enhance my life by solving my needs; the product managers upgrade the quality of product according to consumer perspective to satisfy buyers like us. The four principles of marketing are product, price, promotion and place. The value of the product depends on the satisfaction of the needs of a consumer (MacInnis et al.2014). The product should have the capacity to fulfil market demand. Price of the product should be decided by market value. Maximization of price is made after analyzing the market demand. If the price drops, the demand of the product becomes high but the per unit profit decreases. Value-based pricing is basically done on customer appraisal of the product (Aaker and Biel 2013).

Capture 2

 Promotion of new product:           

The strategy is only used for the luxurious products. Erickson group of marketing aggrandized in their website that they sell all natural products and they are 100% herbal. Distribution channels need reliability and easy access to warehouse and shipping. Evaluation of a place is crucial as excellent delivery enhances desire of the consumer for the product. After reviewing different company, I have seen that ownership of a product is defined by brand. It helps to predict the quality and avoid recognizable risks. It instigates loyalty of the customer; it also allows for premium prices and pursues multiple targets (Kapferer 2012).

A Smartphone case printing company, PRYNT dizzied the world by promoting a campaign named Kickstarter in 2015 which was worth $1.5 million.

Prynt-Case-iPhone-Photo-Printer-4           photo-original

I was surprised at their fast paced thought process and acute promotional skills. The product will be launched on Amazon in this spring, and it will be in stores by the end of this year, and their new campaign named ‘more than a selfie’ also gave the best results.

 

So it is justified that the value of a promotion of a product lies in punctuality and timeliness of the campaigners (Erdoğmuş and Cicek 2012).

Value of Customer Satisfaction:

The journey of the product from an idea to end product detects the process following which the product has taken the present shape. Marketing is all about new ideas, refined knowledge, and a mind to execute those ideas by employing strategies (Vries et al. 2012.). Decisions change from level to level.  Basically I think it is best if a new product innovates at every level of the procedure to increase compatibility and relativity of the product in the market.

 

Capture 3

The Banana Republic missed a lot of quality as the fittings, or the quality of the fabric was not up to the mark which made the garment inappropriate to wear. Thus, it is best to avoid such complexity, and one should be conscious during development process of the product and its promotion (Alden  et al.2013).

BananaRepublicMarkville
Finally, my theory of way to grab customer attention is proper marketing and brilliant promotional strategies. Accurate background study of market status of consumer requisite should be made to evade economic backdrop of the new product. Innovation needs to be made in promotional fields to increase brand value and better featuring of the product.

By: Kondal Reddy Pisarla (215150973)

References:

Aaker, D.A. and Biel, A., 2013. Brand equity & advertising: advertising’s role in building strong brands. Psychology Press.

Akdeniz, B., Calantone, R.J. and Voorhees, C.M., 2013. Effectiveness of Marketing Cues on Consumer Perceptions of Quality: The Moderating Roles of Brand Reputation and Third‐Party Information. Psychology & Marketing,30(1), pp.76-89.

Alden, D.L., Kelley, J.B., Riefler, P., Lee, J.A. and Soutar, G.N., 2013. The Effect of Global Company Animosity on Global Brand Attitudes in Emerging and Developed Markets: Does Perceived Value Matter?. Journal of International Marketing, 21(2), pp.17-38.

Banana republic – Google Search. 2016. banana republic – Google Search. [ONLINE] Available at:https://www.google.com.au/search?q=banana+republic&espv=2&biw=1366&bih=623&site=webhp&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiBwdD4tKnMAhXHXaYKHcNxAfwQ_AUIBigB#imgrc=xu84HP7fVBVVOM%3A. [Accessed 23 April 2016].

De Vries, L., Gensler, S. and Leeflang, P.S., 2012. Popularity of brand posts on brand fan pages: An investigation of the effects of social media marketing. Journal of Interactive Marketing, 26(2), pp.83-91.

Erdoğmuş, İ.E. and Cicek, M., 2012. The impact of social media marketing on brand loyalty. Procedia-Social and Behavioral Sciences, 58, pp.1353-1360.

Huang, R. and Sarigöllü, E., 2012. How brand awareness relates to market outcome, brand equity, and the marketing mix. Journal of Business Research, 65(1), pp.92-99.

Kapferer, J.N., 2012. The new strategic brand management: Advanced insights and strategic thinking. Kogan page publishers.

Larsson, T. (2016). Development of product-service systems: challenges and opportunities for the manufacturing firm. [online] Tobiasclarsson.com. Available at: http://www.tobiasclarsson.com/2009/08/development-of-product-service-systems-challenges-and-opportunities-for-the-manufacturing-firm/ [Accessed 23 Apr. 2016].

MacInnis, D.J., Park, C.W. and Priester, J.W., 2014. Handbook of brand relationships. Routledge.

Prynt: the first instant camera case for iPhone and Android by Prynt — Kickstarter . 2016. Prynt: the first instant camera case for iPhone and Android by Prynt — Kickstarter . [ONLINE] Available at:https://www.kickstarter.com/projects/prynt/prynt-the-first-instant-camera-case-for-iphone-and. [Accessed 23 April 2016].

Prynt: Print photos from your smartphone instantly – YouTube. 2016. Prynt: Print photos from your smartphone instantly – YouTube. [ONLINE] Available at: https://www.youtube.com/watch?v=axzkcepJWks. [Accessed 23 April 2016].

prynt kickstarter video – Google Search. 2016. prynt kickstarter video – Google Search. [ONLINE] Available at: https://www.google.com.au/search?q=prynt+kickstarter+video&espv=2&biw=1366&bih=667&site=webhp&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiYl6-so6nMAhWCQpQKHYwjBpMQ_AUICCgD#imgrc=SNkz3gnC1FunnM%3A. [Accessed 23 April 2016].

SPACE Gallery. (2016). Goods & Services at SPACE Gallery. [online] Available at: http://www.space538.org/exhibitions/goods-services [Accessed 23 Apr. 2016].

The WritePass Journal. (2012). Customer relationship management (CRM) is a combination of people, processes and technology that seeks to understand a company’s customers.. [online] Available at: http://writepass.com/journal/2012/12/customer-relationship-management-crm-is-a-combination-of-people-processes-and-technology-that-seeks-to-understand-a-companys-customers/ [Accessed 23 Apr. 2016].

#MORETHANASELFIE CAMPAIGN – PRYNT x ARNELLE – YouTube. 2016. #MORETHANASELFIE CAMPAIGN – PRYNT x ARNELLE – YouTube. [ONLINE] Available at: https://www.youtube.com/watch?v=kLULhC9s7DE. [Accessed 23 April 2016].
 

 

BEYOND THE FOUR WHEELS !!!

Are you still just driving in your transit??? Definitely not. Consumers in the auto industry changed the perception about a car from its invention to this date. At once the four wheels are used to just as one of the modes of transportation, but today it’s pretty much a second home to many.

Digitalization and automation had made revolutionary changes in many sectors, and auto industry is not an exception. Consumer have changed the trend and now they are no more willing to waste their valuable time just driving to destinations.

1

The change in consumer way of thinking towards auto industry can pen down into
four heads.

Electrification:

The Eco- mindsets of customers made them to think about
environmental problems because of fuel emissions. And hence they are showing up interest towards hybrid vehicles, not only they are concerned for environment but also the economical availability of the infrastructure used to charge the vehicles, the low battery cost and the strict emission regulations made them to shift the trend towards hybrid vehicles. And the shift was clearly seen couple of days back when TESLA started pre-release bookings for their   model-3 vehicle, which got a whopping 2, 30,000 bookings. Now this shows the way consumers changed their mindsets towards hybrid vehicles. Another example in the segment can be TOYOTA PRIUS.

3

eco minds

CONNECTIVITY & FEATURES:

Smart phones have changed the way people live; now this trend is carried to auto industry. Today 99  % of the population carry a smart phone. Now when these people travel they are no more interested in the manual CD players in their vehicles. Consumers are demanding something faster and easier ways of entertainment media in their four wheels. They want to convert the idol time in some productive way. The changes started with connecting the smart phone to vehicle through sync media and today the connectivity had gone through many innovations now the customers no need to think about the parking problems cause its totally automatic, now the seats come with massaging technology, so you not only travel but also can relax and soothe your muscles at one go. Navigation systems, key less entry, one key data recovery systems.

now few vehicles comes with an inbuilt tab through which you can control the car from media devices to transferring data, upgrading the vehicles media software, driverless parking, seating adjustments, mood lighting, fragrances in the vehicle. One such vehicle suiting today’s customers in BMW 7 SERIES.  Even in many economical cars we can find the trend shift in connectivity aspect.  Not to forget about the research by Google on automatic cars, and Tesla model cars.

AUTONOMOUS DRIVING:

safety is one the most important thing a consumer expects from the vehicle, air bags are now outdated feature from a consumer perspective, they are expecting something more like advanced driver assistance systems. From customer shoes they want their life’s on safe side irrespective of how big the crash is. The innovations in the segment made customers happy with features like automatic breaking systems (Volvo), body cell sensing vibrators in driver seat, 360 degree curtain airbags. These are a few which customers are expecting from industry.

autonomous

DIVERSE MOBILITY:

As the increase in traffic jams , consumers are now focusing on sharing mobility, this trend is mainly observed in highly congested places like London, North America and Europe. Because of less parking spaces, increased vehicle flow couple of friends or colleagues share their vehicles. Such customers expect robustness, additional mileage, passenger comfort; low maintenance for high utilization etc. a survey says there is a decline of 4 % in applications for driver’s license  in north America and also the sales of private cars have a sharp decline by 15 %.

shared mobility

By: KONDAL REDDY PISARLA (215150973)

WordPress Username: kpisarla

REFERENCES:

Automotive Revolution | Blog | 2025AD – Automated Driving, Autonomous Driving. 2016. Automotive Revolution | Blog | 2025AD – Automated Driving, Autonomous Driving. Retrieved April 3,2016 from https://www.2025ad.com/in-the-news/blog/automotive-revolution/

Consumer Behavior: The Psychology of Marketing. 2016. Consumer Behavior: The Psychology of Marketing. Retrieved April 2,2016 from  http://www.consumerpsychologist.com/.

GFK. 2014. MAJOR CONSUMER TRENDS – AND HOW THEY AFFECT AUTOMOTIVE.  Retrieved April 2, 2016 from http://blog.gfk.com/2014/02/2014-trends-automotive/

Texas Instruments. (2013). TI is Driving the Future of Automotive Technology. Retrieved April 2,2016 from https://www.youtube.com/watch?v=yo6akuz3vu4.

Tesla model 3 – Google Search. 2016. tesla model 3 – Google Search.Retrieved April 3,2016 from https://www.google.com.au/search?q=tesla+model+3&espv=2&biw=1366&bih=667&site=webhp&source=lnms&tbm=isch&sa=X&sqi=2&ved=0ahUKEwiG4q_36fPLAhUClJQKHRbFDl4Q_AUIBigB#tbm=isch&q=tesla+model+3+OUTLINE&imgrc=YcH8RjEZQafsOM%3A.

What is Consumer Behavior? – Marketing Teacher. 2016. What is Consumer Behavior? – Marketing Teacher. Retrieved April 2,2016 from  http://www.marketingteacher.com/what-is-consumer-behavior/.
4 WHEELS – Google Search. 2016. 4 WHEELS – Google Search. Retrieved April 3,2016 from https://www.google.com.au/search?q=4+WHEELS&safe=off&espv=2&biw=1366&bih=667&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjPvsPKj_TLAhXFspQKHZMyDFEQ_AUIBigB#imgrc=Z2nTdyPrA26VmM%3A.