Section B Case Study - IKEA (Answer all the THREE questions: 70 marks) IKEA ingang wishing IKEA IKEA is a well-known global brand of home furnishing products. Behind its global presence and excellent performance is an excellent marketing strategy. It develops and sustains its competitive advantages in product innovation, pricing approach, distribution strategies and promotion planning. The target market of IKEA is mainly the global middle class. The middle-class consumers generally look for products that are good in terms of design and quality and come for low prices. The consumer demographics are changing globally, and the company focuses on the millennials. IKEA sells contemporary and stylish designs that are a big favourite among the millennial customers. Through its affordably priced and good quality products, the brand has been able to attract the millennial and middle-class consumers in large hoards. IKEA complements its products with a great customer friendly shopping experience. As one of the leading global retail chains in the world, IKEA offers a wide range of products including outdoor furniture, children's products, eating, bathroom accessories, desks, mirrors, beds and mattresses, chairs, cooking, clothes storage, decoration, leisure, and safety products, etc. As of 2021, IKEA offers over 12000 products in over 50 countries. Low prices constitute the IKEA vision, business idea and concept. IKEA makes low-cost furniture for household and offices. It focusses on cost control and efficient operational details. This allowed IKEA to lower its prices over the decade to 2010 during a period of global expansion. IKEA allows not only lower prices but also freebies at the IKEA restaurants. IKEA has a global distribution network with over 25 distribution centres and business operations in more than 50 countries. Over 12,500 products are sold at more than 350 IKEA stores worldwide. Products are transferred from suppliers to IKEA stores directly. This reduces distribution and logistics costs. IKEA uses a variety of promotional techniques to promote its brand. One of the most effective tools used by IKEA is the promotional catalogues with unique home furnishing ideas, real life stories and a wide range of products showcased. The catalogue is available both in print and online. Apart from that an extended version of the catalogue is available in the IKEA app. The IKEA websites, publications, brochure, advertising, and public relation campaigns are also used for the promotion of the brand. IKEA marketing strategy helps the brand to position itself competitively in the market and achieve its business goals and objectives. Questions TYPE your answers in the answer book Q1 Identify and explain TWO segmentation bases IKEA may use to segment the market. (10%) Q2 Critically examine TWO success factors of IKEA marketing strategies. (20%) Q3 Imagine you are the marketing manager of IKEA, and the company is launching an innovative space-saving bed in the Hong Kong market. Discuss your promotion mix strategies specifying the target audience, promotional objectives, and any THREE promotional tools. (40%)