Analysis of marketing success is one of the significant processes to identify the current and future growth of organizations in perspective industries. The major objective of this report is to discuss about the growth and success of two different organizations i.e. Apple and IKEA. Both are the very successful organizations in their perspective sectors. This report includes the description about both the chosen cases and describes the marketing strategies used by these organizations. These strategies assist them to generate revenues from their targeted markets.
For this paper, two case studies are chosen from two different journals. The marketing case of IKEA was issued in International Journal of Business Knowledge and Innovation in Practice in 2013. It includes the analysis of current business environment and marketing success of IKEA Company. Furthermore, second case study was published in 2015 in International Journal of Economics and Finance that discusses about the success factors of Apple and its growth in market. Considering the above cases, this report analyzes strategies of both the firms and evidence of their marketing success is given by using theoretical frameworks.
The first case study that is chosen to understand the marketing strategies of Apple Inc. purposes to explain how a company like Apple can introduce its business in saturated market, gain success and after completing 8 years became the market leader. This company is popular for its product differentiation approach in the market. The organization runs its business all over the world and works with the objective to offer quality products on premium prices to its targeted customers (Weinstein and Winst, 2016). Till now, there is no organization that can match the quality and specifications of Apple’s products. The aim of selected case is to recognize and assess the critical success factors for introducing a new product by using an effective marketing approach. The case study explains the growth and success of company’s product in the market. There are several factors for growth and success of iPhone in market. The major factors are uniqueness in products, innovative technology and business proficiency etc. This case explains different success factors of the firm and the ways which assisted the organization to gain competitive advantage over other players (Capatina and Draghescu, 2015). The case clearly states that it is essential for any organization to develop marketing mix of right products offered at right prices, at right place with support of suitable promotion. This organization uses different tools and strategies to generate growth and success in the market even from the new products.
The second case of IKEA clearly described the marketing and business strategies which are implemented by this company like market segmentation, targeting, international expansion etc. The major objective of this case study is to discover how IKEA should determine its strategic position in international expansion process (Pasquarelli, 2018). As Apple Inc., IKEA is also a successful organization that operates its business with the objective of earning revenues by providing the products on lower prices. This case explained the marketing and strategic position which the company has attained by practicing its performance indicators. From case analysis, it can be stated that the major reason behind its competitive advantage is company’s clear marketing objectives and strategies (Harapiak, 2013). It indicates that this organization wishes to offer its furniture and other products at minimum prices. For that, it has developed various strategies and processes to attain above goal.
As per the given case, it can be stated that market coverage percentage and product development of Apple Inc. is one of the biggest evidences which indicates the success of company’s marketing efforts and its competitive advantage (Wagner and Hollenbeck, 2014). There are various organizations which failed to launch new products in the industry. Apple is one of them that owe its fortune to new product which they have introduced. The case study gives an example of iPhone launched by Apple that indicates that company targeted the people who require storing the data and communicate with others. Thus, it has targeted corporate users, entrepreneurs, students and business professionals etc. Apple has provided effective training and development program to over 130000 employees which indicate advanced growth of this firm. By using this, it has started supplier program for expanding its business in foreign markets (Khan, Alam and Alam, 2015). While launching the iPhone in the market, the company has used different strategies of marketing mix framework like product decisions, pricing decision, distribution and promotion decisions. Sales of iPhone are the major evidence which shows the marketing success of Apple. It was a huge success for the company as total of 17.4 million iPhones had been sold until 2008 (Capatina and Draghescu, 2015). The case shows that Apple implemented differentiation strategy for successful branding of its product. This product has the capacity to provide several specifications in single device. Under its pricing, it adopted skimming strategy that enabled it to offer the products on higher prices initially. Growth and success of this company can be seen through its diversified product lines. It has created Apple Pay application that assists the customers to make online payment. The company is able to expand its business in various countries all over the world that indicates that it is growing its business continuously. In this way, the company is able to gain sustainable competitive edge by using effective marketing strategies (Ottman, 2017).
The marketing success of a company can be analyzed by using different key performance indicators. The chosen case states that as a famous furniture retailer IKEA has generated the success in market by implementing different marketing efforts. The article shows that company is able to attain different competitive advantages by using its marketing strategies (Jonsson and Foss, 2011). This success can be evidenced through the strengths of company given in the case. From its establishment, it has experienced solid revenue growth. Strengths of IKEA assisted it to attain KPIs. It assisted it to analyze the development and long term goals. The customer base is also one of the biggest evidences that indicate the performance of IKEA in external marketing environment. By using lower pricing strategy, it is able to create a larger customer and loyalty among them. Additionally, it has made use of renewable resources that assisted it to introduce more products and gain more competitive advantage over other players (Cosmo and Yang, 2017).
By reading the case and conducting above analysis, it can be stated that Apple has attained marketing success by using marketing mix strategies which are stated below:
Product Decisions
As a mobile phone, Apple has introduced its first iPhone that was very different from traditional phones. It was manufactured by providing different specifications like big touchscreen, customer user interface, without keypad etc. It has adopted differentiation strategy for iPhone branding that assisted it to distinguish their products from competing brands which provided it competitive advantage (Capatina and Draghescu, 2015). Its products had the capacity to give various functions in a single device. Thus, the innovative specifications and features of phones assisted it to attain marketing success.
Price Decisions
While the company has introduced iPhone in the market, its established price was $599 and after 2 months, it has reduced the price to $399. The company has provided different offers to the people who have purchased the product before reduction (Capatina and Draghescu, 2015). Apple has always given the importance to this decision as it assists the company to enhance its revenues and establish relationship with customers.
Distribution Decisions
While planning about where to offer the products, this firm has made the changes in outdated distribution channels (Perrott, 2015). It has provided its products through its stores and website. For the distribution chain operators, the crucial measure of success was wining the hearts of customers. Moreover, the company has spread its products in China and South Korea.
Promotion Decisions
This is the most significant contributor to the marketing success of Apple. This company has used different techniques for promotion and advertisement. It enabled it to approach a larger customer base all over the world. It has launched its products by using different promotional campaigns (Lovelock and Patterson, 2015).
Thus, above are the major strategies and processes which helped it to achieve marketing success.
IKEA is the organization that achieved market growth and success by using strategies of Ansoff Matrix. These are discussed below:
Market Penetration
Market penetration is the marketing strategy that IKEA has used to attract more customers. For its current products, the company has offered its products in existing markets that enabled it to boost its market share. It focused on promoting its products in the existing markets and made efforts to sell the products to store visitors. It has increased the customer base and revenues of IKEA across the world (Harapiak, 2013).
New Market Development
IKEA has supposed to take its existing products to international markets and it makes the strategy for its market development. The company has expanded its products in different markets like Turkish, China etc. which allowed it to gain more competitive advantage against its competitors. It has developed its strategies as per the needs and expectations of customers. This is the major reason that company was successful in its international expansion (Ghauri, et al, 2016).
Conclusion
From the above analysis, it can be stated that both of the companies i.e. IKEA and Apple are able to gain marketing success by using effective marketing strategies. The discussion is based on two cases which are related to company’s marketing efforts and activities. The above report clearly explains the marketing growth of companies by using different frameworks and theories of marketing management. By using these strategies, companies are able to attain sustainable competitive edge over their competing brands.
References
Capatina, G. and Draghescu, F., 2015. Success Factors of New Product Launch: The Case of iPhone Launch. International Journal of Economics and Finance, 7(5), p.61.
Cosmo, D.E. and Yang, K., 2017. A Further Strategic Move to Sustainability-A Case Study on IKEA. Journal of Strategic Innovation and Sustainability, 12(2), pp.39-47.
Ghauri, P., Wang, F., Elg, U. and Rosendo-Ríos, V., 2016. Market driving strategies: Beyond localization. Journal of Business Research, 69(12), pp.5682-5693.
Harapiak, C., 2013. IKEA’s International Expansion. International Journal of Business Knowledge and Innovation in Practice. 1(1), pp. 3-14.
Jonsson, A. and Foss, N.J., 2011. International expansion through flexible replication: Learning from the internationalization experience of IKEA. Journal of International Business Studies, 42(9), pp.1079-1102.
Khan, U.A., Alam, M.N. and Alam, S., 2015. A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management, 3(6), pp.955-961.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Ottman, J., 2017. The new rules of green marketing: Strategies, tools, and inspiration for sustainable branding. UK: Routledge.
Pasquarelli, A. (2018). Fewer catalogs means more kinds of marketing for Ikea, Available from https://www.adageindia.in/marketing/cmo-strategy/fewer-catalogs-means-more-kinds-of-marketing-for-ikea/articleshow/65236238.cms [Accessed on 24 September 2018].
Perrott, B.E., 2015. Building the sustainable organization: an integrated approach. Journal of Business Strategy, 36(1), pp.41-51.
Wagner III, J.A. and Hollenbeck, J.R., 2014. Organizational behavior: Securing competitive advantage. UK:Routledge.
Weinstein, A. and Winston, W., 2016. Defining your market: winning strategies for high-tech, industrial, and service firms. UK: Routledge.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download