IKEA has segmented their market on the income, geographic, product-usage, and branduser
bases. As it’s target market are place at middle-lower and lower class, where income
level is quite low and this segment of the market are usually lives in suburban areas of the
country. The U.S. economy is moderately reasonable, so IKEA need to capture this
economical advantage by using extensive marketing strategy in their distribution channel
and it’s financial position also very good which permit IKEA to expand its operations to
others urban and suburban areas. On the other hand, segmentation based on usage of the
product, IKEA products are furnishing related which are based on low price so they offer
much verity in it and also take new innovation by effectively utilizing their technical
skills. Through making them known in the furnishing market, IKEA develop their
customer brand loyal. Hence, they can segment their market on loyalty bases as its
competitors namely Target and Pier 1 Import are also making their profit. So, IKEA need
to focus on how to make non-loyal customer loyal and this require buyer-seller
relationship. As the competition in retail business is increasingly fiercer which IKEA can
respond to it by best margin to retailers who will try to sale IKEA’s products.
IKEA has segmented their market on the income, geographic, product-usage, and branduserbases. As it’s target market are place at middle-lower and lower class, where incomelevel is quite low and this segment of the market are usually lives in suburban areas of thecountry. The U.S. economy is moderately reasonable, so IKEA need to capture thiseconomical advantage by using extensive marketing strategy in their distribution channeland it’s financial position also very good which permit IKEA to expand its operations toothers urban and suburban areas. On the other hand, segmentation based on usage of theproduct, IKEA products are furnishing related which are based on low price so they offermuch verity in it and also take new innovation by effectively utilizing their technicalskills. Through making them known in the furnishing market, IKEA develop theircustomer brand loyal. Hence, they can segment their market on loyalty bases as itscompetitors namely Target and Pier 1 Import are also making their profit. So, IKEA needto focus on how to make non-loyal customer loyal and this require buyer-sellerrelationship. As the competition in retail business is increasingly fiercer which IKEA canrespond to it by best margin to retailers who will try to sale IKEA’s products.
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