IKEA believes in a Marketing Strategy which is efficient and effective. Other competitive furniture retailers rely on designs from Top designers, IKEA, on the other hand, relies on the product rather than the person. Designers several times act as Influencers in retail as consumers want to associate with products that are
Any product can be viewed as three-layered onion, the innermost layer being the core product, In case of an airline, travel is the core product, and the second layer is the facilitating service which is nothing but the service which aids in the delivery of the core-product and which is essential, the third and the layer which Ikea has mastered is the augmenting layer which creates differentiation.
In IKEA’s case the core product is the benefit that the furniture offers, note that it is the benefit and not the furniture itself, for instance, furniture for someone could offer comfort, while for someone else it may be a matter of pride, the core product is the want which satisfies the need of the customer.
The facilitating service is essential without which the core-product cannot be met. In the case of IKEA, the instructions for the DIY furniture and the billing counters are an example of the facilitating service.
The Augmented service is the Key Differentiator in IKEA which is providing of facilities like Pram, restaurant services etc. Now what do these services have anything to do with furniture, the answer is they have something to do with the people who buy this furniture, it takes away a few of their worries, but how can a low-cost retailer afford to provide such services, the secret is IKEA withholds some aspects of the core service, for example IKEA doesn’t assemble the furniture, there is no intervention by salespersons unless required.
IKEA is a leader in understanding the elements that matter to a consumer and de-constructing them, it has thus stood the test of time and is attractive in today’s dynamic market environment.
Competitive White Space
Competitive White Space is similar to Points of Differentiation in a Perceptual Map. Basically, it is a space for a company to manoeuvre in a crowded playing field.
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