Read the following case study and then answer the questions that follow:

Over the years, IKEA has become a favored furniture brand for an impressively wide customer base, from college students acquiring their requisite first futon to long-time homeowners who need a new bookcase or crib. Quality products, affordable prices and a do-it-yourself assembly attitude are big reasons for IKEAs success. Plus, it doesnt hurt that the companys marketing strategy is second to none.

IKEAs brand identity ranks among some of the most iconic logos, campaigns and companies in recent history. Just like Coca-Cola has its signature colors and script, theres hardly any mistaking IKEAs bold lettering or its blue and yellow themes. Like Apple, the companys retail stores offer up exciting customer experiences from the moment you spot their unmistakable facades on the horizon. Who would have thought wed get so excited about the prospect of hauling home a few flat boxes and whipping out a hex key to build our own furniture? IKEAs marketing strategy is so successful because its original, distinctive and imaginative while also maintaining a clear value proposition.

Furniture companies may not be lifestyle brands, but they still seek a strong sense of loyalty from their customers, new and old. For IKEA, that goes doubly, considering the powerful, unique brand it has developed over the years. Sponsored digital marketing campaigns have their uses, but organic influencer appeal may just be the way forward for increasingly skeptical millennials, not to mention the socially savvy contingent known as Gen Z. Nothing can replace a genuine social media connection.

Despite a bumpy year due to temporary store closures, IKEAs profits rose 13% to $2.4 billion for the twelve months ending in August with sales climbing in September and October. This is due in large part to IKEAs inventory management strategy. The company avoids waste and inefficiencies caused by the bulk ordering of items that dont sell as expected by employing minimum settings the lowest number of products that have to be available before a new order can be placed, and maximum settings the highest number of products that can be ordered at once. The result? IKEA is able to maintain a larger inventory which reduces the companys shipping costs.

Analyse the need for inventory holding with reference to Ikea. (15)

Recommend a suitable inventory control system for Ikea. (10)

Discuss the advantages of branding from a marketers perspective with application to the case study. (10)

Identify and explain group factors that could influence Ikeas consumer purchasing behaviour. (10)