MARKET RESEARCH

AND
SWOT ANALYSIS
Marketing

Yuan Yi Yong
Business and IT 2020-2021

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 CONTENTS

1. History of IKEA Furniture

2. SWOT analysis
3. Marketing Research methods
4. Market Segmentation
5. Market Positioning
6. Target Market
7. Questionnaire
8. Market Research on IKEA
8.1 Primary Data
8.2 Secondary Data
9. Bibliography

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MARKETING RESEARCH ON IKEA COMPANY
IKEA is a multinational corporation of Swedish origin
headquartered in Delft, Netherlands. IKEA's first store was
set in Switzerland in 1973 and is now the largest furniture
retailer since 2008. It designs and sells ready-to-assemble
furniture, kitchen appliances and home accessories, among
other useful goods and occasionally home services. IKEA’s
vision is “to create a better everyday life for the many
people” .The company name IKEA is an acronym that
consists of the founder's initials (Ingvar Kamprad), and the family farm where he was born,
Elmtaryd, and the nearby village Agunnartd, which is his hometown in Småland, southern
Sweden. The company is known for its modernist designs for various types of appliances and
furniture, and its interior design work is usually related to environmental simplicity.

SWOT ANALYSIS OF IKEA COMPANY:

SWOT analysis is the analysis of a business’s Strengths and Weaknesses as well as the
Opportunity afforded to the business and the Threats that endanger its performance or continued
existence.

S W O T

IKEA is a famous Consumers have to IKEA can provide a Competitor that

multinational build their bought choice for consumers having a lower price
company, its stores furniture by who bought large and higher quality
are located over the themselves, it could furniture from the might affect IKEA
world. be a serious issue for store to have their sales. Eg. Argos,
those who lack the products turned into Walmart etc.
skill of DIY or finished products.
craftwork and those They can hire some

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 who live alone. Those professional workers
consumers might be to do this part for
unable to build the their consumer.
finished furniture on
their own.

Consumers can have Low quality products. Consumers can Possible lawsuits
multichoice when Product quality design their own ideal would be a threat for
they browse in IKEA, should be improved furniture or space IKEA company.
not only for large in relation to win for using IKEA app. IKEA may be subject
furniture but customer loyalty and to lawsuits from
houseware. increase sales. consumers who were
injured by IKEA
products.

Inspiration area, Safety issues are also Online shopping

IKEA provides an a serious problem that provided on IKEA
interior design idea in affect IKEA. The low mobile app and
their store to help quality products website for
their consumer make cause some case consumers before
a choice or learn from about children being their go in to store or
it. hurt or killed in they could directly
relation to IKEA order online. This
furniture also helped IKEA to
remain working
during the COVID-19
pandemic.

Fair price and

discount provided for
those who had joined
their IKEA Family
Member.

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MARKET RESEARCH METHODS
1. Qualitative Research
Qualitative Research is the research mostly dependent on the consumer's opinion, attitude, belief
and intention. Qualitative research can help businesses to understand the mind and view of the
consumer and how they could improve their product and service. The questions of this type of
research would be to ask “How?”, “Why?”, “Do you agree or disagree.” etc. They will hope to
know consumers’ personal views. The most common used methods to collect qualitative data are
focus groups and interviews. This kind of data is revealing and useful for a company but it is
costly and time consuming.

2. Quantitative Research
Quantitative Research is the survey to know the problem of a company or a product by numerical
data or data that can transform the usable statistic. This is usually used for larger samples. The
surveys used by the company to collect data are online survey, mobile survey, paper survey,
online polls,face to face interview etc. It is used to quantify attitudes, opinions and behavior.
The quantitative research questions will ask for “How often?”, “How many?”, “When?”, or
“Where?” . The result will generally be in numerical form, such as “60% of customers like to
shop online rather than offline stores.” or “3 out of 10 customers do not like our new product.”.

3. Primary Research
Primary research is getting the newest and more accurate information from the market. A
business will do the primary research part to fill the gap of secondary data that they do not have.
For example, observation, survey, questionnaire, focus group or experiments. The way
observation in primary research can be divided into two parts, which is personal observation and
mechanical observation, they observe customer behaviour when they buy their product or the
sale records.Besides, questionnaire is a form that contains questions for consumers to fill in their
review and opinion . In addition, the way to experiment is to change some of the product or

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marketing mix variables and observe the change on sale . The advantages of primary research is
that all the data collected is up-to-date and relevant to the market. However, the disadvantages
are it is expensive to carry out research and wasting time.

4. Secondary Research
Secondary research is using the information gathered before from business documents, reports
,websites or social media network . This research can find a large number of information needed
in a short time and all the data have been classified and specialized. The researcher will save
time and lower cost will be needed in secondary research. However, the information will be out-
of-date and some might not be accurate. Therefore, researchers will always start their research
with secondary research then fill the gap with primary research. This can save time to gather
large numbers of data but can focus on the specific gap and questions.

CONCLUCION
The market research methods are used to collect data that a company needs to improve their
service or products. The main idea of secondary research is to collect a large amount of
information that is needed in a short time but primary research is a way to fill the gap of
secondary research to collect some new and up to date data. The qualitative research is to collect
consumer personal view of point and quantitative research is to collect numerical data that can be
used to construct graphs and tables of raw data.

MARKET SEGMENTATION
Market segmentation is to divide these potential customers in the market into groups.

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Demographic, psychographic, behavioral and geographic segmentation are considered the four
main types of market segmentation, which is picking groups by age, race, gender, job, income,
interests etc.

Demographic segmentation included the categories such as age, income, gender and status.
This can help an organisation target its consumers more accurately.

DEMOGRAPHIC SEGMENTATION OF IKEA

AGE 22 years old and above

GENDER Male and Female

OCCUPATION Students
Employees
Professionals

STATUS Young single people not living at home

New married couple with no kids
Families with kids
Retired old couples with no kids
Office
Home Office

Psychographic segmentation is to identify potential customers on social status, daily activities,

preferences and opinion of certain subjects.

PSYCHOGRAPHIC SEGMENTATION OF IKEA

SOCIAL CLASS Lower class

Working class
Middle class

LIFE STYLE Resigner

Struggler
Mainstreamer

PREFERENCES Simplicity
Fashion

Behavioral segmentation is to divide people into different groups who have a specific

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behavioral pattern in common. The different types of behavioral segmentation are based on
consumers’ loyalty, personality, benefits, purchasing behaviour etc.
BEHAVIORAL SEGMENTATION OF IKEA
LOYALTY DEGREE Hard-core loyals
Soft-core loyals
Swithers

BENEFITS PURSUE Effectiveness cost

PERSONALITY Easygoing
Determined
Simple

Geographic segmentation is to group potential customers by country, state, region, city or even
neighbourhood.

GEOGRAPHIC SEGMENTATION OF IKEA

REGION Asia
Americas
Australia
Europe
Russia

MARKET POSITIONING
Market positioning is a strategic activity that businesses use to establish a brand or product
image in the minds of consumers. IKEA Company positioned themselves in a penetration
strategy which is attracting a high volume of consumers by their products with a lower price.
Therefore, IKEA Company produces high quality products but sets an acceptable price on it. It is

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because they are aimed at working class consumers in the market.

High
Quality

Low High
Price Price

Low
Quality

TARGET MARKET
A target market refers to a group of potential customers to whom a company wants to sell its
products and services. The concept of IKEA company is to make IKEA furniture be part of
people’s lives as they age and have kids. Hence, young people, couples, resigners and families
with children are all the target of IKEA.

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MARKET RESEARCH OF IKEA

Questionnaire

1. What is your age group?

❏ Below 16
❏ 16 ~ 25
❏ 26 ~ 35
❏ 36 ~ 45
❏ 46 and above

2. How often do you shop in IKEA stores?

❏ Less than once a month
❏ More than once a month
❏ Less than once a year
❏ More than once a year

3. How do you rate IKEA products?

❏ Excellent
❏ Very Good
❏ Good
❏ Fair
❏ Poor
❏ Very Bad

4. Would you buy IKEA products?

❏ Definitely
❏ Probably
❏ Not Sure
❏ Probably Not
❏ Definitely Not
If not, why?

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 _______________________________________________________________

5. What is your opinion about IKEA Company?

______________________________________________________________________

6. What is your suggestion for how IKEA can improve?

_______________________________________________________________

7. What impressed you the most about IKEA?

❏ Quality
❏ Price
❏ Shopping Experience
❏ User Experience
❏ Customer Service

8. What disappointed you the most about IKEA?

❏ Quality
❏ Price
❏ Shopping Experience
❏ User Experience
❏ Customer Service

9. If you bought an IKEA product, what do you like about the product?

________________________________________________________________

10. If you bought an IKEA product, what do you dislike about the product?

________________________________________________________________

11. What do you think about the design of IKEA?

❏ Excellent
❏ Very Good

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 ❏ Good
❏ Fair
❏ Poor
❏ Very Bad
❏

PRIMARY RESEARCH DATA ON IKEA

As a result of the survey on IKEA, 73% of consumers are under the age 35 and 27% of
consumers are aged 36 and above. This result states that IKEA products are attractive and
invented for young people. The majority of consumers are between the ages of 15 to 25.

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33% of consumers will go to IKEA branches more than once a year and 7% of consumers go
more than once a month, this shows that the customer loyalty of IKEA was good and consumers
will go back and buy for more. However, 60% of consumers do not often go to IKEA for special
occasions, IKEA companies should find out the reason and attempt to attract these consumers.

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There are 1 out of 15 surveyors rated IKEA product is “Excellent”, and 5 of them rated “Very
good”. 5 rated “Good” and 4 surveyors rated “Fair”. This shows that IKEA products met
consumers expectations as a good product.

12 out of 15 surveyors rated “Probably”and “Definitely” in the question “Would you buy IKEA
products?” which means that the majority of them think IKEA products are an ideal product for
them. The rest of the surveyors rated “Not sure” for this question.

According to the survey, the price of IKEA products impressed consumers the most. A third of
the survey respondents were impressed by the price. 4 out of 15 surveyors are impressed by the

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shopping experience. There are a fifth of the survey respondents impressed by the quality and a
fifth of them impressed by user experience.

As a result of the survey, 6 out of 15 of surveyors were disappointed by IKEA customer service.
Besides, 4 of the surveyors were disappointed by the product quality, 1 of them was disappointed
by price and other 1 of them was disappointed by user experience. The other 3 surveyors out of
the 15 were unsatisfied with the shopping experience.

Based on the survey, majority of the surveyors are rating IKEA design as “Very Good” and
“Good”, this state that IKEA’s design is acceptable for consumers. 6 out of 15 of the respondents

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say the design is “Very Good” and 5 out of 15 say it was “Good”. There are also 2 of them that
say it was “Excellent” and the other two say it was “Fair”. There were no ratings on “Poor” and
“Very Bad”.

SECONDARY RESEARCH DATA ON IKEA

According to the online information,low price products are mentioned in most of the IKEA
advertising. Most of the customers love the unique layout and design of stores that classify for
different buyers. Eg. Office, Kitchen, Bedroom, Kids zone etc. Also, people find it convenient
because they can leave their child in the children room and go shopping. The young and dorm
furniture that is sold in IKEA stores is popular for college students and teenagers. The products
rating on IKEA are usually a wide range of selection, fair price and high quality. However, there
is a weak point which is expensive items shipping and complex product names.

CONCLUSION
Reflecting to the primary and secondary data, the rating given to IKEA is excellent. IKEA
consumers are what they targeted. They are in the younger aged group. Also, the quality, price,
user friendliness and shopping experience are fair and impressed customers but the shipping fees
and customer service received more than half of the disappointment.

RECOMMANDATION

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 Improve customer service and
provide professional training for their
staff.

Simplify products name. Try to make

the name fit to market and earlier for
customers to remember.
Recommand
ation
Reduce transportation costs. IKEA
can start a "loyalty program" and
provide free shipping for customers
who spend more than 200 euros.

Can provide customers with a guide

book about the location of IKEA
products and store floor plans so they
could save some time on finding
products.

Bibliography:
● https://www.ikea.com/ie/en/
● https://en.wikipedia.org/wiki/IKEA
● http://www.circleinternational.co.uk/circle/strategy_files/ikea%20mrktswot.pdf
● https://pestleanalysis.com/swot-analysis-of-ikea/
● https://howandwhat.net/swot-analysis-ikea-ikea-swot-analysis/

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● https://research-methodology.net/ikea-segmentation-targeting-positioning-targeting-cost-
conscious-customers
● https://www.ukessays.com/essays/marketing/analysis-of-the-market-position-of-ikea-
marketing-essay.php
● https://www.inter.ikea.com/en/performance/fy19-financial-results#:~:text=IKEA
%20retail%20sales%20grew%20by,fees%20for%20Inter%20IKEA
%20Group.&text=Income%20taxes%20increased%20to%2017,income%20of%20EUR
%201%2C485%20million.
● https://corporatefinanceinstitute.com/resources/knowledge/strategy/market-positioning/
● https://bizfluent.com/facts-6931581-target-marketing-strategy-.html
● https://sendpulse.com/support/glossary/behavioral-segmentation#:~:text=Behavioral
%20segmentation%20is%20a%20form,similar%20reactions%20to%20your
%20messages.
● https://en.ppt-online.org/44692

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