6 3.3 psychographic segmentation pg. But psychographic segmentation also takes the psychological aspects of consumer buying behavior into accounts. Besides, they both open stores in areas with large population. In addition, IKE fixes the products’ prices at a lower level, which is quite attracting for the average consumers, such as white-collars. IKEA targets people with a “do it yourself and save money doing it” kind of lifestyle. These are the consumers who have an inclination towards the stylish & modern home furnishing solutions. Interests 4. Activitiesconsists work, hobbies, social events, vacation, entertainment, community, club membership and social event of consumers. Positive word of mouth, CSR activities and empowering their co-workers has helped the company in creating awareness and popularising their brand even in the markets in which they are not present. Attitudes 10. Lifestyle segmentation is one of the types of marketing segmentation and comes under the psychographic segmentation. Although their promotional measures are different, they have the same purpose to create more profits. Branding is the essential element when it comes to marketing your products. IKEA’s target markets are lower home furnishing class, so, black American and Hispanic are the major target market for IKEA if we analysis their demographic characteristics. Tagline – “Affordable solutions for better living”. IKEA’s major products are furniture, such as kitchen modules, bathroom facilities, lighting equipment, sofas and textiles. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S … According to statistical data, there are over three million customers walking into B&Q per week. IKEA is the world’s largest home furnishing retailer. Home furnishing industry is facing intense competition from Local outlets & online e-commerce start-ups. Lifestyle is how a person lives his life. IKEA segmentation, targeting and positioning involves a set of consequent marketing decisions that constitute the core of company’s marketing strategy. Various target groups Promotion Geographic segmentation The analysis itself consists of short description of IKEA at the beginning. Psychographic segmentation is one which uses peoples lifestyle, their activities, interests as well as opinions to define a market segment. Overview: Segmentation, Targeting & Positioning 20. Many national & international players are giving head-on competition to IKEA. Opinions 9. Consumer selections and the reasons that they will lean towards a product more than others are affected by their … Furthermore, B&Q offers installment payment service, which is another effective promotion strategy. 3. Furthermore, B&Q has professional teams to help customers designing and decorating in their own styles. (Hall et al, 2008). Example: IKEA home renovation, consultancy services. Segmentation, targeting, positioning in the Marketing strategy of IKEA – Demographic, psychographic & geographic segmentation is used by the company to segment the market to cater to the changing market dynamics of home furnishing, Kitchenware & appliances industry. Segmentation involves dividing population into groups according to certain characteristics, whereas targeting implies choosing specific groups identified as a result of segmentation to sell products. There are around 330 IKEA stores in 38 countries. According to OPPAPERS (2010) and B&Q (2010c), both of them set the prices of their products reasonable and appropriate. They separate their consumers into teams in accordance with types of market segmentation: demographics, psychographics and behavioral. Another concept concerned with market segmentation is marketing mix. Psychographic Segmentation and The VALS Framework 32. Ikea is the provider of affordable, stylish, modern architectural designed furniture, kitchenware and appliances that are shaping the comfortable living of people around the world. These activities inform marketers about the consumers’ routine suppose the person is a finance guy and doesn’t like outdoor activities and void meeting with people. So far, IKEA is the largest and most international furniture emporium, globally. Historically, settlement patterns of Hispanics in the U.S. have been concentrated by ethnicity, with those of Puerto Rican origin more likely to live in the Northeast. Segmentation, targeting, positioning in the Marketing strategy of IKEA – Demographic, psychographic & geographic segmentation is used by the company to segment the market to cater to the changing market dynamics of home These traits range between personality to education. This means that the products in Ikea aims to attract a particular market segment than the mass market (Steenkamp & Ter Hofstede, 2002). 11 Psychographic Segmentation - In this fragment, this fundamentally stresses on the client's conduct, regular exercises, individual well-creatures and their convictions. The bases of segmentation could be demographic and psychographic. (B&Q, 2010a) Moreover, B&Q’s operating system is GMS (General Merchandise Store), thus all products in B&Q are placed on shelves for consumers to choose freely. The bases of segmentation could be demographic and psychographic. Let's stay in touch :), Your email address will not be published. IKEA’s aim is to open 50 stores in USA by 2013. All work is written to order. We're here to answer any questions you have about our services. With psychographic segmentation, companies examine consumer's lifestyles, personality, interests, opinions, social class, habits and activities to better ascertain their needs. However, once you read more about psychographic targeting, you will be able to understand it better. It uses differentiated targeting strategy to satisfy the needs & wants of the consumers who look for value for money furnishing solutions. Females of average age of 38 visited IKEA the most. Psychographic; social class, lifestyle However, Balaji et al (2016) maintain that McDonalds only uses demographic segmentation strategy with age as the criteria. Demographic segmentation - IKEA applies segment bases for its market. Back in 1980, Arnold Mitchell developed VALS(values, attitudes, lifestyles) which became a technique for marke… To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! (Guangzhou IKEA, 2010) Besides entity stores, IKEA also allows consumers to do e-shopping on its website with an easy reviewing of the details of the products. If the market is small, it may make it smaller. Segmentation, targeting, positioning in the Marketing strategy of IKEA – Demographic, psychographic & geographic segmentation is used by the company to segment the market to cater to the changing market dynamics of home furnishing, Kitchenware & appliances industry. Psychographic Segmentation is not only for big companies, but it can also be used by SMBs and on their website. Dec. 30, 2020. Activities and Examples of Lifestyle Segmentation The consumer lifestyle consist different types of tools to form this segmentation, marketers are … Further, there are floor pained arrows to lead consumers quickly find the items they need. Therefore, product is more than physical stuffs sold by stores (Hall et al, 2008). Amazon segmentation, targeting and positioning. The company have an exclusive museum to showcase its creativity in Almhult, Sweden. The IKEA Catalogue includes commodities’ details, such as colors, sizes and prices. 3.3 Psychographic Segmentation and IKEA target markets Based on lifestyle, social class, mental or emotional, value and needs of consumers. It is also recognized as the 4Ps, consisting of product, price, place and promotion. IKEA, with its range of affordable products … Companies segment customers into one orseveral psychographic traits. Use of psychographic segmentation will result in customers' grouping according to … Moreover, the two companies have websites to offer online shopping. There are major ethnic subdivisions within the U.S. Hispanic population, since Hispanics in the U.S. originate from more than 20 different countries. Promotion is to propagandize products through all measures available (Hall et al, 2008). Geographic segmentation is different from the other types of market segmentation (especially psychographic and behavioral) because it requires fewer data points. The variations in 4Ps between IKEA and B&Q were also reviewed in the newspaper. About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy & Safety How YouTube works Test new features If IKEA chooses behavioural segmentation, then customers will be divided according to their buying pattern like usage frequency, benefits sought, usage occasions and brand loyalty. (IKEA, 2010 e) It is worthy to mention that, IKEA also established a group named Social Initiative, aiming at strengthening the relationship between IKEA and the society. (IKEA, 2010d) For all of them, the products are displayed in a clear and scientific classification. IKEA IKEA’s aim is to open 50 stores in USA by 2013. IKEA’s target markets are lower home furnishing class, so, black American and Hispanic are the major target market for IKEA if we analysis their demographic Amazon.com Inc. Report contains a full analysis of Amazon segmentation, targeting and positioning and Amazon marketing strategy in general. Do you have a 2:1 degree or higher? Marketing segmentation has always been important. IKEA coordinate with supply chain stakeholders like designers, material suppliers, product developers and its stores all over the world to make their products available to the consumer. (IKEA, 2010 a). It has around 380 stores worldwide and is driving the furniture market in the developing nations. Such re-conceptualization and extension of TPB is consistent with psychographic segmentation theory (e.g., Barry & Weinstein, 2009) which argues that … *You can also browse our support articles here >. In final result, both IKEA and B&Q are successful furniture sales businesses. Psychographic Segmentation Psychographic segmentation allows marketers to segment market based on consumer personality traits, lifestyle and social class. Psychographic segmentation is quite similar to behavioral Psychographic segmentation. Psychographics was a term first Such activities inform marketers about what they do, where they are engaged and how they entertained themselves. They provide a full range of products, as well as professional designers. The differences in 4Ps between IKEA and B&Q were also discussed in the paper. Market segmentation is classifying consumers into groups according to their characteristics (Hall et al, 2008) and set certain groups as targets. Segmentation, targeting, positioning in the Marketing strategy of IKEA –, Competitive advantage in the Marketing strategy of IKEA –, BCG Matrix in the Marketing strategy of IKEA –, Distribution strategy in the Marketing strategy of IKEA –, Brand equity in the Marketing strategy of IKEA –, Competitive analysis in the Marketing strategy of IKEA –, Market analysis in the Marketing strategy of IKEA –, Customer analysis in the Marketing strategy of IKEA –, SQ3R – Meaning, Benefits, Steps and Strategy, What is Redlining? The aim of this service is to provide convenience for customers who do not have much time to deal with decoration. Females of normal age of 38 visited IKEA the most. Values 5. Market segmentation is classifying consumers into groups according to their characteristics (Hall et al, 2008) and set certain groups as targets. The prices of IKEA’s products are set reasonably. Black Americans’ are consist on younger age group and Segment division comprises of the individual age gathering, sex direction, in view of day to day life-cycle, occupations, pay level of a solitary client and the general public association level related to the financial elements. If the market is small, it may make it smaller. Therefore, its products are more colorful and novel. 6 3.4 behavioral segmentation 3.4.1 target market segments pg. SmartThings message is turning your home into a Smart House in other to make a living better. As for this, B&Q makes great efforts on environment protection in the procedures of product design, packaging and the use of materials. Customers of IKEA are the working class people who are looking for value for money home furnishing solutions. This section American, young, and older subculture. IKEA should require each individual store to hold some type of kid-friendly event (at least) once every two months. VAT Registration No: 842417633. Besides, they both have various promotional skills, such as discounting and installation service. Looking for a flexible role? We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. (B&Q, 2010 a). Yet, only 33% of companies using it say they find it significantly impactful. Psychographic segmentation is a confusing notion for many marketers. (Guangzhou IKEA, 2010), B&Q fixes most commodities with appropriate prices for the average consumer. Social status 7. The following table 2 illustrates IKEA segmentation, targeting and positioning: Type of segmentation Segmentation criteria IKEA target customer segment Geographic Region Europe, Americas, Asia & Australia, Russia Density Urban Demographic Age 22 and older Gender Males & Females Life-cycle stage Bachelor Stage young, single people not living at home Newly Married … Why do this? Psychographic segmentation is further discussed later in the plengdut post, where we consider hybrid segmentation strategies that combine psychographic and demographic variables to create rich descriptive profiles of consumer SWOT analysis – Here is the SWOT analysis of Ikea. 7 4.0 customer value In addition, it has a website for consumers to search the details of their products. The only driving force is the novelty in the style & design factor which is shaping the industry demand side. In short, companies divide customers based on a variety of traits. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. The price is simply the amount of money that consumers pay to gain the benefits of the product (Hall et al, 2008). Psychographic Segmentation Psychographic Segmentation: Opportunities and Challenges There are four major types of market segmentation; geographic segmentation, demographic segmentation, psychographic segmentation, and product-related segmentation. (IKEA, 2010 b), Different from IKEA, B&Q is specialized in one stop shopping, in which, customers can buy most decorations and accessaries they want in one store. On the other hand, it is suggested that B&Q’s products could be more fashionable and colorful in order to attract younger consumers. Its various popular advertising campaigns like “Home is the most important place in the world” or its “unboring” and various others TV campaigns helped the company in creating top of mind awareness. The products of Both B&Q and IKEA are complementary. 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