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MKT00720 Marketing Assignment Help
The market share held by the company as well as the position which the company holds in the market is determined by the advantages that the company has as a result of the performance and the unique selling proposition established by the company in terms of the products and the offering of the services. This efficient performance and the USP in the products and services can lead success in the gaining of the competitive advantage for the organization which make the products offered in the market as the preferred product for the customers. The report has the discussions on the case study of the prominent companies regarding the policies and strategies adopted for marketing the products and the effectiveness of the marketing processes became the core competence of the companies. The two companies include IKEA, a leading name in the retail industry which is engaged in the business of offering premium quality furniture in the market and another organization is Primark which deals in the clothing sector, a subsidiary of Associated British Food (ABF) and situated in the UK. The case study of both the companies mentioned the reasons which benefited the strong customer relationship and gained the competitive advantage.
Evidence that the organization has gain a competitive advantage from their marketing processes.
Companies like IKEA and Primark holds the strong competitive image with the help of the marketing processes that are practised by the organization in order to increase the productivity and develop the products in such a way that the organizations gain the loyalty of the existing customers as well as the attention of the new customers. The competitive advantage helps the companies to generate higher revenues and sales and a sustainable business. The relevant points from the case study of IKEA and Primark has been explained here;
Brand personality: As Primark is a clothing brand, the marketing processes of the company focus on creating a brand personality. Brand personality is referred to the characteristics that are attributed to the brand. The marketing of Primark is done as a young and trendy personality (Toldos-Romero & Orozco-Gómez, 2015).
Promotion: The Company invested a heavy amount in the activities related to promotion of the brand. The promotions are being done various distribution channel such as the online website of the company where promotional offers help in the generation of increased sales.
Expansion: Primark expands the business of the company on a continuous basis through entering in the new segments of market and serving a wider customer segment.
Product: The Company has adopted the marketing policy of developing the product in such a way that the reach of the products to the customers is simplified. For the purpose to grow the business, the company has developed mobile application for making the customers buy the clothes online (Baltes, 2016).
Pricing policies: The pricing policy of IKEA make the company to offer the affordable range of furniture to the customers and considered as one of the strengths of the company. The pricing policy of the company as decided by the marketing department depicts the motive of the company “To create a better everyday life for many people” (Caglayan & Filiztekin, 2015).
Technology: IKEA maintains the cost of manufacturing of furniture of different styles and latest and innovative technology is used in the production processes to develop new designs that according to the preferences of the customers.
Differentiation: The policy of differentiation make IKEA a superior brand as compared to the competitors because the organization invest in the research process and develop the kind of designs of furniture which are valued by the target customers.
Segmentation: The business of the company is not confined to a particular segment of market. The products of IKEA in the form of different styles of furniture serves the different purposes of the customers. Hence, the large area of market is covered by the company and the segmentation is according to the type of furniture that the customer requires (G. Budeva & R. Mullen, 2014).
Theoretical analysis of the reasons for the achievements of this advantage.
Analysis of the reasons for the achievement of competitive advantage can be determined with the study of the marketing theories that the companies applied to the products and services. Both the companies have created a unique position that gain the attraction of the customers and the coverage of greater market share.
Primark adopts the Ansoff’s Matrix for the betterment of the business of the company. The elements which are the part of Ansoff’s matrix are the market development and the product development. The policies such as the expansion of the market by developing the online websites for serving the customers through purchase the products online. Market development for Primark refers to the internationalization of the business covering more markets globally.
An appropriate establishment of marketing mix also makes the company to gain competitive advantage. The development of the product considering the group of the customers who are the target customers of the company forms the part of the marketing process. The promotional activities of Primark are one of the elements in the success of the brand as the company has promoted the image of the brand in the market as a brand for young and trendy customers out there. This brand personality has gained the popularity and the company has benefitted with the advantage of a differentiated image from the competitor brands (Rundh, 2015).
The approach of the company considering Porter’s five forces developed the value supply chain for the company. The elements are the inbound logistics, outbound logistics, operations and marketing. The value chain explains that the products of the company are being distributed across global market and create a strong supply chain. The operations of the company include the 250 stores that operate in the countries like Ireland, UK and Europe.
The reasons for the development of the competitive advantage for IKEA are:
IKEA works on the concept of low cost and produces the product that serves the value for money. This approach of IKEA establishes the company as a cost leader in the market, where the company uses the resources of the organization at low cost and produce the products of high quality which give the company competitive advantage.
The theory of balanced scorecard refers to the study of the business of the organization consisting the factors such as internal business process, finance resources with the company and the needs of the customers for the products of the company. The company works on this model and analyze these elements and accordingly engage the resources in the research of the preferences of the customers and the technology that can be implemented by the company to fulfill those needs. Hence, providing the customers with the various designs of furniture and gaining the competitive advantage over other furniture stores in the market.
The segmenting consumer market theory of marketing of IKEA depends on the type of furniture the class of customer wants to buy. The category of the customers buy the type of furniture as per their choices and there is no targeted market segmentation in IKEA.
IKEA also focus on sustainability in the company as the company promotes the reduction in waste and to proper disposal of waste in an effective manner that the environment has not been harmed by the company. This is the important element of the company in terms of attainment of the satisfaction of the customers for the success of IKEA.
These theories as applied on the organizations help them to gain the competitive advantage and to retain this advantage for longer span of time. These approaches have different impacts on different organizations and the companies choose those theories which are the best suitable for their organizations on the basis of the needs and nature of business of the company. IKEA and Primark has established their names as global brands as a result of these approaches only.
It can be concluded that marketing plays an important role in the establishment of a successful business, generating high revenues along with satisfying the customers effectively. The competitive advantage make the companies operate with the benefit of serving the large part of the market because of the core competencies being the attraction for the customers. The marketing policies make the huge difference in the success possibilities of the products in the market as many times the efficient marketing even develops the need for the product in the minds of the customers. The report has identified the marketing processes of the companies like IKEA and Primark. The case study of these companies focused on the reasons of the long term competitiveness of these organizations. The study determined that the marketing theories and approaches made the companies work according to these theories and developed the strategies which helped to differentiate the products from the products of the competitors. This report thus concludes that if the companies want to gain the competitive advantage then they have to consider these theories and apply according to the demand of objectives of the company.
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