Brand Growth

 

Question 1

Brand architecture stresses the structure of specific brands contained by an organizational unit, which refers to the approach that is used to connect or even differentiate brands from one another within an institution's portfolio. It is commonly used by large corporations that specialize in different product lines to develop the image of specific products. Brand architecture is used by companies with diverse services or products as an approach of ensuring appropriate inclusion of encompassed brand lines the overall branding system (Balmer et al. 2006)
            IKEA is an international retailer firm that is highly reputed in the global market influenced by the excellence of its brand (Yohn, 2015).  IKEA is a home furniture retailer and provides variety names through its core subsidiary; the IKEA Inter Group to enhance as an approach of enlarging its market. The extension through branches enables IKEA to impose its overall brand image. However, the company involves a very proactive philosophy on the design of its operations, which reflects the uniqueness of its brand architecture.

 Brand Architecture

The philosophy behind the IKEA's brand architecture emphasizes the provision of its products and services to all customers. The company provides different types of products that are branded in regards to aspects such as status, affordability, quality and innovative design. The fundamental principle of its brand architecture strategy is to provide various home furnishing products at justifiable prices (Yohn, 2015).

IKEA’s Future Brand

All products are linked in a monolithic brand name of IKEA (Yohn, 2015).  Significantly, IKEA's food products and restaurant services have common characteristics considering that they remain in line with its regular communication strategy. Thus, IKEA's food is a brand that boosts the reputation of its furniture segment in various areas since they are not in the same location. The architecture ensures partnerships with other company to provide products at reduced prices and also corporations enables to cause the improvement of product designs. Nevertheless, the company holds joint ventures with different groups such as electronic companies to include the demands of known demands in the market (White, 2004).

 

Building

IKEA’s brands are commonly characterized by a variety of considerations including low price, quality products, sustainability, form, and function.  However, the company considers the low cost as the basis for its product development. In contrast, IKEA's development strategy differs from the approaches that most businesses use to base their product development. For instance, many companies use consumer trends or in some circumstances include different market considerations like competitive advantages other than price to determine their development process.  IKEA instead combines the variables of the function, design, value, and function in regards to the sustainability of provided products in the development process (Davis, 2009). Significantly, the essence of its brand architecture is demonstrated in the entire company, from product designing, sourcing, packing and distribution channels towards its business model. Therefore, the uniqueness of the product development strategy enables IKEA to accomplish its commitment to providing better lives to all people at home.

Measuring

IKEA's depends on consumer insights to measure the effectiveness of its brand architecture strategy since its operations are always oriented to dominate the home furnishing market. As a result, the company usually visits different homes to evaluate the perceptions of its customers about factors including product design and product sustainability (Perrey, 2015). 

Managing Brand Equity

The management of brand equity is aligned with the primary purpose of enhancing marketing through innovation (Perrey, 2015). Marketing techniques in IKEA are developed in line with the approach of relaying information including storytelling on cost and quality of its product

Question 2

Benefits

Brands are made using a similar name (IKEA) which easies the marketing since the products are sold under monolithic furniture stores. Joint ventures spread the company’s products in the market while endorsing product usage (White, 2004). On the other hand, partnerships fasten market penetration considering that they are located in various regions.

Cons

There is a significant risk of experiencing contagion on its reputation if the architecture fails to attain its promise in the market. Also, the company may suffer from brand dilution from its competitors in future hence affecting its brand equity (Dahlén & Lange, 2008). 

 

 

Question 3

The roles of brands in the IKEA’s brand portfolio are aligned with the concept of facilitating growth in the existing markets. Brands are primarily enabling consumers to recognize a company's product from those provided by competitors in the market. As a result, organizations make use of labels to distinguish a product from other products about the satisfaction of a known customer need.  There are multifaceted strategies that institutions occasionally use to facilitate growth in both proactive and new markets. Improvement of offering approach through the use of branded differentiators is a key strategy of imposing an increase in various companies including IKEA. Branded energizers are also used by a variety of companies to strengthen their products and marketing base in open markets (Spath & Fähnrich, 2007). Moreover, a group may emphasize on ways of increasing product usage among its customers (Aaker & Joachimsthaler, 2012). Importantly, brands within a brand portfolio acts as brand differentiators and branded energizers in different market orientations

The differences of IKEA's names usually demonstrate functional, balanced and tangible characteristics by product performance of the specific brand. Also, IKEA's products are more symbolic or somewhat emotional concerning the features represented by a brand.

IKEA's branding focuses on product value over logical, cognitive and price outcomes which enable it to outdo products of its competitors. Significantly, the company always incorporates customer and stakeholder perceptions to improve product value thus grabbing it a sustainable competitive advantage (Lowenstein, 2011). 

IKEA depends on marketing communication for measuring and managing its brand performance in the core markets. Marketing communication is an essential strategy of building loyalty and brand entity in the market since it enhances product consumption.

Question 4

IKEA is reputed as a compelling brand in the market considering that is ranked among the most valuable brands in the world (Yohn, 2015). IKEA group is renowned for its dominance as a furniture retailer in the industry. IKEA involves a variety of market segmentations and a vast target market which enables it to sustain its competitive advantage in different markets worldwide. The company incorporates solid positioning strategies that will allow it to enhance its products, services, and product differentiation. Moreover, IKEA employs trained personnel's in its operations which continue to boost its reputation in different parts of the world.   IKEA embraces appropriate measures to increase customer value, in regards to quality and affordability of products which favor its superiority in the market (Lowenstein, 2011).  Also, it adapts right marketing mix which increases the potential to utilize its 4ps'to guide the determination of product strategy to influence the production of unique and space saving designs Pringle & Field, 2008). Place strategy enables the company determines the perfect markets for its products, especially in new markets.  Place strategy is often used within the company to decide promotional sales such as discounts to induce customers in the market for product consumption. Besides, IKEA uses various media channels to facilitate its promotion strategy while creating product awareness in the market. 

 

Question E

 It is logical to state that IKEA’s growth strategy offers the potential for grabbing it a sustainable competitive advantage in the market. For instance, IKEA’s growth strategy determines product segmentation in line with customer requirements in the target market including furnishing standard which promotes its product. Significantly, the growth approach in IKEA emphasizes on various forms of segmentation including geographical, psychographic, demographic and behavioral segmentation that increases its market superiority considering that the segmentation enables the company to balance different market factors (Spath & Fähnrich, 2007). Firstly, geographical segmentation allows the firm to critique the strong markets since the segmentation is used to evaluate the location statistics in regards areas where its customers live.  Subsequently, the philosophy of demographic segmentation is usually developed by customer value under aspects such as customer income, occupation, and racial differences. The details provided by demographic segmentation enhance the process of production, particularly, on product categorization and brand differentiation towards the company's principle of product affordability (Jain, 2016) and provision of its services to all.

Thirdly, the primary theme behind psychographic segmentation within IKEA highlights the incorporation of strategic measures for customer value in both production and distribution channels (Doole & Lowe, 2005). The theme emphasizes the involvement of market traits in all activities to accomplish the company's objective of meeting different market requirements in categories of, for example, customer lifestyles and demands on furnishing products. Finally, IKEA's growth strategy is guided by customer attitudes about its brand and series (Schultz, 2015). Behavioral segmentation has a theme of building customer trust in different markets. For instance, the issue ensures that IKEA's customers have the essential information on its products which favor product usage.

 

Question F

IKEA has an excellent reputation for the provision of good quality and inexpensive household furniture globally. However, the company's management has the responsibility of ensuring sustainability, unrelenting growth while influencing brand equity in different markets (Kapferer, 2008). Importantly, the current performance of its products and services gathers the company substantial competitive advantage hence the primary challenge is to strategize on ways of making sure the sustainability of its legacy.

Therefore, the company's management should embrace flexible brand planning processes to create a viable working condition that can reciprocate sustainability (Burns, 2014). Prominently, the company should focus on figure out ways to maintain the production environment through its suppliers for efficient production. Through this, the company will be able to provide unique and quality products while maintaining its market position. The management also as the responsibility of engaging customer feedbacks regarding their product experience for appropriate production. This should be put in place through innovation to improve quality.  On the other hand, IKEA's management has to continue situating its subsidiaries in the potential markets for diversity. Creativity and embracement of the innovative product have a variety of benefits in regards to the market growth (Russell, 2007). For instance, customers in the contemporary furnishing industry purchase products based on the value of the brand portfolio. Also, the company should put a wealthy focus on the reduction of raw material consumption while meeting its social responsibility. The decrease in wastages in production will increase its returns thus ensuring the sustainability of its position in the market.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

 Aaker A. D & Joachimsthaler. E. (2012). Brand Leadership. Simon and Schuster

Balmer, J. M. T., Mukherjee, A., Greyser, S. A., & Jenster, P. (2006). Corporate marketing:        Insights and integration drawn from corporate branding corporate identity corporate    communication and visual identification. Bradford, England: Emerald Group Pub.

Burns, P. (2014). New Venture Creation. Palgrave Macmillan. Dahlén, M., & Lange, F. (2008). Marketing communications. Hoboken, N.J: Wiley. Davis, M. (2009). The fundamentals of branding. Lausanne: AVA Academia. Doole, I., & Lowe, R. (2005). Strategic marketing decisions in global markets. London [u.a.: Thomson Learning Jain, K. V. (2016). Global Strategy: Competing in the Connected Economy. Routledge

Kapferer, J.-N. (2008). The new strategic brand management: Creating and sustaining brand      equity long term. London: Kogan Page.

Lowenstein, M. W. (2011). The customer advocate and the customer saboteur: Linking social      word-of-mouth, brand impression, and stakeholder behavior. Milwaukee, Wis: ASQ           Quality Press. Perrey, J. (2015). Power brands: Measuring, making, and managing brand success. Wiley-VCH. Pringle, H., & Field, P. (2008). Brand immortality: How brands can live long and prosper.           London: Kogan Page. Russell, C. L. (2007). 2,001 innovative ways to save your company thousands and reduce costs: A complete guide to           creative cost cutting and profit boosting. Ocala, Fla: Atlantic Pub. Group. Schultz, E. D. Barnes E. B, Schultz. F. H. &  Azzaro, M. (2015). Building Customer-brand             Relationships. Routledge Spath, D., & Fähnrich, K.-P. (2007). Advances in Services Innovations. Berlin, Heidelberg:          Springer-Verlag Berlin Heidelberg. White, C. (2004). Strategic management. Basingstoke, Hampshire: Palgrave Macmillan Yohn L. D. (2015). How IKEA Designs Its Brand Success. Extracted from             https://www.forbes.com/sites/mikeozanian/2017/10/05/podcast-sonny-vaccaro-on-the-       ncaa-basketball-adidas-scandal/#4587c2239ff5        

 

 

 

 

 

1994 Words  7 Pages

  Order a paper similar to this   Download       Request Removal