https://research-methodology.net Necessary knowledge to conduct a business research Sun, 18 Feb 2024 03:27:37 +0000 en-US hourly 1 https://rm-15da4.kxcdn.com/wp-content/uploads/2020/08/cropped-logoBRM-32x32.jpg https://research-methodology.net 32 32 https://research-methodology.net/byd-marketing-strategy-overview/ Sun, 18 Feb 2024 03:27:37 +0000 https://research-methodology.net/?p=77538 BYD marketing strategy is constantly evolving as the EV market landscape changes. They are adapting to new customer demands, emerging technologies, and competition from established and new EV players. BYD marketing strategy is attempts to communicate the brand’s unique selling proposition (UPS) to the target customer segment.  BYD’s USP isn’t just a single thing, but rather a powerful combination of several key factors that set it apart from other EV manufacturers. Here are some of the most prominent elements: 1. Vertically Integrated Powerhouse. BYD controls almost every aspect of its EV production, from mining raw materials to assembling the final vehicle. This gives them a significant advantage in controlling costs, ensuring quality, and driving innovation throughout the entire process.     2. Blade Battery Advantage. Their proprietary Blade Battery technology is a game-changer. It offers higher range, faster charging, and enhanced safety compared to traditional lithium-ion batteries. This technology is a major competitive advantage and a key selling point for BYD customers. 3. Technology for Everyone. BYD strikes a unique balance between offering technologically advanced EVs at competitive prices. This makes them appealing to a wider range of consumers, not just those with deep pockets. Their price competitiveness often puts them at the forefront of accessible EV options. 4. Sustainability Champion. BYD is fully committed to promoting sustainable transportation solutions. Their entire focus is on EVs, unlike traditional car manufacturers offering both EV and gas-powered options. This clear commitment to clean energy resonates with environmentally conscious consumers. 5. Beyond Cars. BYD doesn’t limit itself to cars. They offer a diverse product portfolio including buses, trucks, taxis, and even forklifts. This caters to various transportation needs and allows them to tap into different market segments. 6. Innovation Engine. BYD constantly invests in research and development, pushing the boundaries of EV technology.…]]> https://research-methodology.net/marriott-marketing-strategy/ Fri, 27 Oct 2023 06:08:42 +0000 https://research-methodology.net/?p=75974 Marriott marketing strategy is designed to reach its target audience of travellers and to encourage them to book a stay at a hotel or resort belonging to it portfolio. Marketing costs for the largest hotel chain in the world amounted to USD 635 million in 2022, USD 470 million in 2021, and USD 276 million in 2020[1]. Marriott marketing strategy focuses on the following key elements: – Brand differentiation. Marriott International differentiates its brand from other hotel companies by emphasizing its commitment to quality, service, and innovation. The company also offers a wide range of hotel brands to suit the needs of different travellers, from budget-minded travellers to luxury travellers. – Unique selling proposition. Along with its world-class amenities, commitment to customer services is unique selling proposition for Marriott hotels. Employees are trained to go the extra mile to make guests feel welcome and valued. – Customer segmentation. Marriott International segments its customers into different groups based on their travel needs and preferences. This allows the company to develop targeted marketing campaigns that are relevant to each segment. – Omni-channel marketing. Marriott International uses a variety of marketing channels to reach its target audience, including online, offline, and social media. The company also integrates its marketing campaigns across all channels to provide a seamless customer experience. – Product placement strategy. Product placement is one of the key elements of Marriott marketing strategy. One of Marriott’s most famous product placement deals was with the popular TV show “The Real Housewives of Beverly Hills.” The show featured the cast staying at the Ritz-Carlton, Los Angeles on several occasions. This exposure helped to position the Ritz-Carlton as a luxury hotel brand that was popular with celebrities and other high-profile individuals. Marriott has also placed its hotels in a number of successful movies, including “The Devil Wears…]]> https://research-methodology.net/netflix-marketing-strategy-an-overview/ Tue, 19 Sep 2023 04:31:31 +0000 https://research-methodology.net/?p=75460 Netflix marketing strategy assists in achieving company’s corporate mission of seeking to drive conversation around Netflix content to further enhance member joy. In 2022 The streaming service spent in total to USD 2,53 billion or 8% of total revenues for marketing.[1] Netflix marketing strategy is based on the following principles: – Guerrilla marketing. Guerrilla marketing refers to an advertisement strategy where a company uses unusual methods to draw attention of the public to the brand. The most notable cases of guerrilla marketing by the largest streaming service in the world include a hand crawling by itself in the streets of New York to promote Wednesday show, “Strange Mode” car sharing ride with Lyft and installing doll from Squid Game show in Sydney Harbour.     – High level of service personalization. The entertainment services provider suggests personalized content to its users on the basis of the past viewed content. The on-demand media provider suggests personalized content in its platform, as well as, thorough emails to maintain the high level of customer retention. – Meme marketing. Netflix effectively uses social media marketing in general and meme marketing in particular to increase the level of brand awareness in the global scale. One can be forgiven for mistaking Netflix social media pages for pages for meme. – Remaining focused. Netflix only offers movies, series and documentaries. The platform does not offer news and live sports. By remaining focused on movies, series and documentaries alone, the company avoids overextension of brand image and continues to increase the value it provides to its core audience. Netflix Inc. Report contains the above analysis of Netflix marketing strategy. 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…]]> https://research-methodology.net/apple-7ps-of-marketing/ Fri, 30 Jun 2023 00:57:09 +0000 http://research-methodology.net/?p=7377 Apple marketing mix (Apple’s 7Ps of marketing) comprises elements of the marketing mix that consists of product, place, price, promotion, process, people and physical evidence. Product Element in Apple Marketing Mix (Apple 7Ps of Marketing) In 2010, before he became chief executive officer, Tim Cook claimed that Apple’s all products could fit on a single table. At that time the multinational technology company produced only 14 products.[1] It is different now. It has been noted that “no longer do the barista and the corporate executive use the same iPhone — today, there are high-end models, consumer models, and a long line of old products the company keeps around to fill every niche and price point.”[2] Today, Apple designs, manufactures and sells technological devices such as IPhone smartphones, IPad tablets, Mac desktop and portable personal computers and iPod digital music and media players. Moreover, the company generates revenues via iTunes and the iTunes Store, Mac App Store, iCloud and Apple Pay. Apple also develops iOS and OS X operating system software and a range of application software such as iLife and iWork. Lastly, Apple Corporation designs, manufactures and sells own and third-party Mac-compatible and iOS-compatible accessories, including Apple TV, headphones, cases, displays, storage devices and various other connectivity and computing products and supplies[3]. Apple also sells third-party digital content and applications through iTunes Store®, App Store®, Mac App Store, TV App Store, iBooks Store™ and Apple Music®. Table 1 below illustrates the full range of Apple products, their brief descriptions and additions in 2023: Product Categories Description Additions in 2020 iPhone A line of smartphones based on iOS operating system iPhone SE, iPhone 12, iPhone 12 Pro, iPhone 12 Pro Max, iPhone 12 mini Mac A line of personal computers based on  macOS operating system 16-inch MacBook Pro, 13-inch MacBook Pro, 27-inch iMac iPad…]]> https://research-methodology.net/apple-marketing-strategy-an-overview/ Fri, 30 Jun 2023 00:52:47 +0000 http://research-methodology.net/?p=9951 Apple marketing strategy is based on the founder Steve Jobs’s philosophy that customers do not always know what they want. Accordingly, instead of conducting marketing researches to identify customer needs and wants, the multinational technology company prefers to install innovative features and capabilities in their products, making customers to want Apple products. Under the leadership of Tim Cook since 2011 certain aspects of the business such as management style and company’s stance towards CSR have changed. However, the dismissal of marketing research remains to this day. Apple marketing strategy expresses the brand in minimalist, yet highly efficient ways. The world’s largest IT company by revenue is one of the first companies to successfully associate the brand image with being innovative, rebellious and non-conformist. Apple 7Ps of marketing is marked with a particular focus on the product element of the marketing mix and the company’s segmentation targeting and positioning initiatives are aimed at targeting users of premium products. Moreover, marketing communication mix of Apple Inc. places greater emphasis on print and media advertising and personal selling in Apple Stores and the company rarely uses sales promotions as part of its marketing strategy. Generally, Apple marketing strategy integrates the following:   1. Focusing on attractive value proposition. Apple’s value proposition is “beautiful design that works right out of the box with ever-smaller packaging”[1] The world’s largest IT company by revenue has been able to avoid price wars with competitors by emphasizing its unique value proposition in its marketing communication messages. Apple is a unique company in a way that it is a design firm, a media platform, a publishing company, a software powerhouse and a computer manufacturer – all at the same time. Such a position allows the company to communicate its value proposition to target customer segment in a cost-effective manner.…]]> https://research-methodology.net/apple-marketing-strategy-4/ Fri, 30 Jun 2023 00:50:21 +0000 http://research-methodology.net/?p=6528 Apple marketing communication mix explains the company’s stance towards individual elements of the marketing communication mix such as print and media advertising, sales promotions, events and experiences, public relations, direct marketing and personal selling. The main aim behind Apple marketing communications mix is to communicate the marketing message of the brand to the target customer segment through elements listed above. Apple is effective in using elements of the marketing communication mix in an integrated manner to ensure the consistency of the marketing message.   Apple Print and Media Advertising Since its foundation more than 40 years ago Apple has been using print and media advertising extensively to promote the brand in general and new products in particular. Some of the ads by the tech giant have become truly iconic raising the bar for advertisement globally. The following is the list of the most memorable print and media advertising campaigns launched by Apple: “1984” campaign directed by Ridley Scott and first shown during 1984 Super Bowl is widely considered as one of the most successful marketing campaigns of all times “The Quadra Revolution” is 1991 campaign that was a successful attempt by the tech giant to further itself ahead of the competition at the beginning of the digital age of 90s “Misunderstood”, a Christmas ad of 2013 won Emmy Award for the year’s most “Outstanding Commercial.” “40 Years in 40 Seconds” is a viral video that chronicles  40 years of the company in 40 seconds “Meu Bloco na Rua” (2017) is the latest ad released in Brazil for the Rio Carnival, highlighting the iPhone 7 Plus’ new portrait photography mode Apple also uses celebrity endorsements in print and media advertising extensively. In the past Apple’s ‘Think Different’ print and media advertising materials featured the images of innovators and pioneers in different areas…]]> https://research-methodology.net/apple-segmentation-targeting-and-positioning/ Fri, 30 Jun 2023 00:29:06 +0000 http://research-methodology.net/?p=7368 Apple segmentation, targeting and positioning represents the core of its marketing efforts. Segmentation, targeting and positioning is needed because no company or product can be all things to all people. Apple segmentation targeting and positioning initiatives include the following stages: 1. Segmenting the market. Segmentation involves dividing population into groups according to certain characteristics. Specifically, customers can be segmented on the basis of their place of living, demographic variables, behavioural traits, psychographic characteristics and other variables. Market segments need to be measurable, accessible, sustainable and actionable in order to be used for marketing purposes. 2. Targeting selected segment(s). This stage involves identifying segments that are most attractive for the business. In other words, targeting implies choosing specific groups identified as a result of segmentation to sell products to. The multinational technology company positions itself as a premium brand offering products and services with advanced functions and capabilities for additional costs. Accordingly, Apple target customer segment comprise well-off individuals who are willing to pay extra for technology products and services with advanced design, functions and capabilities. A common set of characteristics shared by Apple target customer segment include appreciating design, quality and performance of technology products and services over their prices. 3. Positioning the offering. Positioning refers to the selection of the marketing mix that is the most suitable for the target customer segment. It is the final process, where companies attempt to associate their products and services with needs and wants of selected customer segment. Apple targets its customer segment by tailoring products, services and overall business approach to appeal to the members of segment to a maximum extent. Under the leadership of late Steve Jobs, Apple mainly used mono-segment type of positioning, appealing to the needs and wants of a single customer segment. However, after Tim Cook became CEO,…]]> https://research-methodology.net/nvidia-marketing-strategy-overview/ Sun, 18 Jun 2023 05:41:23 +0000 https://research-methodology.net/?p=74388 Nvidia marketing strategy is based on the following principles: – Focusing on unique selling proposition. Nvidia produces highest quality graphics processing units (GPUs) and related software, as well as, system-on-a-chip (SoC) products for various platforms. Nvidia unique selling proposition is associated with the superior performance of its products and the company communicates this value proposition to the target customer segment through various marketing communication channels. – Usage of channel marketing. The multinational technology company has strategic collaboration in place with its channel partners such as system integrators and OEMs. This collaboration is important to pass the marketing message about advanced product features and capabilities to end-users. – Content marketing. Marketing strategy of Nvidia makes a great use of content marketing. Specifically, the company educates their potential customers about advanced features and capabilities of their products through YouTube videos, blog articles, whitepapers, and case studies. Nvidia marketing strategy can be also explained through the application of Brand Essence Wheel Model. Nvidia brand essence is the core and overall image of the company and it has the following important elements: – Attributes are verifiable facts about the company. Nvidia is one of the largest GPU producers in the world. The US-based company has been in the business for more than 30 years. – Benefits relate to the tangible points of differentiation. Nvidia customers benefit from attractively designed GPUs and other related products that offer highly advanced features and capabilities.   Brand Essence Wheel   – Consumer values are elements that company celebrates and promotes. For the US-based the multinational technology company it includes innovation, effectiveness, diversity and inclusion. – Personality refers to a set of human characteristics that can be applied to brands. Nvidia brand personality is associated with being dynamic and sophisticated. Nvidia Corporation Report contains the above analysis of Nvidia…]]> https://research-methodology.net/wework-marketing-strategy/ Tue, 21 Feb 2023 03:44:01 +0000 https://research-methodology.net/?p=72648 WeWork marketing strategy is based on the following principles: 1. Effective use of social media marketing. The global flexible workspace provider efficiently uses social media marketing through viral marketing, localized Facebook ads appealing to the needs and wants of the local customer segment. Furthermore, there are many YouTube videos with positive customer testimonials for using WeWork co-working spaces with positive implications on the brand image. 2. Celebrity endorsement. Although the leadership style of the co-founder and former CEO Adam Neumann had proved to be devastating for the company, he was able to engage in celebrity endorsement in cost-effective manner. Celebrities such as Drake, Ashton Kutcher and Hugh Jackman were spotted in WeWork headquarters with positive implications to the brand image. The co-working giant continued with celebrity endorsement even after the departure of Neumann. 3. Focus on the product and place. Within the framework of 7Ps of marketing WeWork focuses on product and place elements of the marketing mix to a greater extend compared to other elements. The global flexible workspace provider offers workspace as a service – creatively designed, furnished, flexible and without long-term commitments. This is the unique selling proposition for WeWork. The co-working giant has a network of 756 locations worldwide, including 277 locations in the US as of December 2021. 4. Effective market segmentation and positioning. The co-working giant uses functional and multi-segment positioning techniques and targets customers mainly in urban areas in 38 countries worldwide. In terms of occupational segmentation criteria WeWork targets self-employed individuals, professionals, senior managers, executives and business owners. 5. Integrated use of marketing communication mix. The co-working and office space operator uses several marketing communication channels such as print and media advertising, sales promotions, events and experiences and public relations in integrated way to communicate marketing message to the target customer segment.…]]> https://research-methodology.net/marketing-communication-mix/ Thu, 27 Oct 2022 00:13:02 +0000 http://research-methodology.net/?p=3882 Defined as a “dialogue between business unit and its present and potential customers that takes place during pre-selling, selling and post-selling stages”[1], marketing communication mix, or promotion mix is considered to be a fundamental aspect of business marketing initiatives. Kotler and Keller (2009)[2] divided marketing communication mix into the following six categories: advertising, sales promotion, events and experiences, public relations and publicity, direct selling and personal selling. 1. Advertising is “a paid non-personal communication about an organisation and its products transmitted to a target audience”[3]. The following are important platforms of print and media advertising: TV Radio Magazines Newspapers Billboards & posters Viral marketing Celebrity endorsement Product placement 2. Sales Promotions is a marketing strategy which involves using temporary campaign or offer to increase interest and demand on products and services. The following are popular sales promotion techniques: Seasonal sales promotions. Businesses may reduce the prices of certain items during holidays and festive seasons such as Christmas holidays. Money off coupons. Customers receive coupons by mail, in store or they cut coupons our of magazines or product packaging to purchase the product next time for lower price. Purchase of a product allows the customer to participate in a game to win a price. Discount vouchers. A voucher that can be used to purchase a product at a reduced price. Free gifts. Customers get an item for free if they purchase a product. Point of sale materials. Use of posters, display stands and other promotional tools to present the product to customers within the shop. Loyalty cards. Possibility for customers to earn points for buying specific products or buying from specific sellers. Accumulated points can be exchanged for goods or other offers. For example, Tesco Clubcard, Sainsbury’s Nectar etc. 3. Events and experiences, as a marketing mix component relate to a…]]> https://research-methodology.net/starbucks-marketing-communication-mix/ Fri, 07 Oct 2022 01:09:02 +0000 http://research-methodology.net/?p=10253 Starbucks marketing communication mix consists of communication channels to communicate the marketing message to the target customer segment. The most popular channels discussed below are print and media advertising, sales promotions, events and experiences, public relations and direct marketing.   Starbucks Print and Media Advertising Starbucks advertising expenses totalled USD305.1 million, USD258.8 million and USD245.7 million in fiscal 2021, 2020 and 2019, respectively.[1] Print and media advertising represents the core of Starbucks marketing strategy and advertisements attempt to associate Starbucks brand with the superior quality and pleasing experience. Accordingly, messages communicated by Starbucks to the target customer segment via print and media advertising include the following: “Beware of Cheater Coffee. It Comes with a Price” “If Your Coffee Isn’t Perfect, We’ll Make It Over. If It’s Still Not Perfect Make Sure You Are in a Starbucks” “Starbucks or Nothing. Because Compromise Leaves Really Bad Aftertaste” Starbuck began to use social media and viral marketing much earlier than the majority of its competitors with the positive implications on the volume of its sales. Starbucks large social media campaign was launched back in 2009, when US-based customers were offered a free pastry via social media if they purchased a drink before 10:30 am. The marketing initiative announced via social media attracted about one million customers.[2] Noteworthy social media marketing campaigns launched by Starbucks include tweet @tweetacoffee, Blonde Roast, Pumpkin Latte, #TreatReceipt and others. Moreover, social media is adapted by Starbucks as an effective communication channel with customers to develop new products taking into account customer preferences and opinions. The global coffeehouse chain also uses celebrity endorsement as part of its print and media advertising extensively. The list of celebrities who promoted Starbucks include, but not limited to Taylor Swift, Ariana Grande, Rocky Lynch, Jamie Grace, Idina Menzel and Michael Bubble.   Starbucks Sales…]]> https://research-methodology.net/starbucks-marketing-mix-starbucks-7ps-of-marketing-2/ Fri, 07 Oct 2022 00:30:46 +0000 http://research-methodology.net/?p=10246 Starbucks 7Ps of marketing comprises elements of the marketing mix that consists of product, place, price, promotion, process, people and physical evidence as discussed below in more details.   Product Element in Starbucks Marketing Mix (Starbucks 7Ps of Marketing) Starbucks sells coffee, tea and other beverages and a variety of fresh food items, including snack. In addition to its flagship Starbucks Coffee brand, the company sells products and services under the following brands: Teavana, Seattle’s Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve and Princi. The global coffeehouse chain also sells merchandise products such as coffee- and tea-brewing equipment, Verismo® System by Starbucks, mugs and accessories, packaged goods, books and gifts. Starbucks products are known for high quality. Coffee is the main product sold by company and it sells more than 30 blends and single-origin premium coffees.   Place Element in Starbucks Marketing Mix (Starbucks 7Ps of Marketing) Starbucks operates in 84 markets globally and its products can be purchased from the following places: 1. Company-operated stores. There were 17133 company-operated stores, which accounts for about 51% of total numbers of stores by the end of fiscal 2021.[1] Almost all company-operated stores are leased. Starbucks company-operated stores are usually located at high-traffic, high-visibility locations 2. Licensed stores. There were 16700 licensed Starbucks stores by the end of fiscal year 2021, representing about 49% of total numbers of stores.[2] The world’s largest coffeehouse chain offers customers the possibility to order online or through mobile app. Customers can explore the menu, customize their order according to their tastes and preferences and find nearest store location to collect their order. 3. Grocery and foodservice accounts. The world’s largest coffee retailer also sells its products via global leading supermarket chains such as Walmart, Tesco, Sainsbury’s and others. Only the most popular products such as Starbucks Espresso…]]> https://research-methodology.net/starbucks-segmentation-targeting-and-positioning-targeting-premium-customers-with-quality-products-and-service/ Fri, 07 Oct 2022 00:08:12 +0000 http://research-methodology.net/?p=10249 Starbucks segmentation, targeting and positioning comprise marketing decisions directed at identifying appropriate group of people among the general public as future customers for the business and targeting this segment via positioning products and services that resonates well with their needs and wants.  In simple terms, segmentation, targeting and positioning refers to deciding whom to sell to, and positioning products and services accordingly. Starbucks Coffee uses the following types of positioning: – Mono segment positioning. The coffee chain giant targets premium customer segment only i.e. individuals who are willing to pay extra for the quality of products and services. – Adaptive positioning. Due to the tendency of increasing consumer health awareness, Starbucks Coffee developed coffee beverages with less calories such as Chai Tea Latte (103 calories) Caffe Misto (63 calories) and Iced Americano (11 calories). – Standby positioning. Certain Starbucks beverages such as Frappuchino had to await changes in the market for certain period of time to find demand. – Sustainability positioning. The world’s largest coffeehouse chain attempts to shift customer attention to sustainability aspect of its business. For example, by the end of FY21 there were 2779 Greener Store framework Starbucks branches[1]. This store format aims to achieve reductions in carbon emissions, water usage and landfill waste. The following table illustrates Starbucks segmentation, targeting and positioning: Type of segmentation Segmentation criteria Starbucks target customer segment     Geographic Region US, Canada, Latin America, Europe, Middle East, Africa, China and Asia Pacific region Density Urban   Demographic Age 18 – 60 Gender Males & Females Life-cycle stage Bachelor Stage young, single people not living at home Newly Married Couples young, no children Full Nest I youngest child under six Full Nest II youngest child six or over Full Nest III older married couples with dependent children Occupation Students, employees, professionals Behavioral Degree of loyalty ‘Hard core loyals’…]]> https://research-methodology.net/starbucks-marketing-strategy-3/ Thu, 06 Oct 2022 00:54:32 +0000 http://research-methodology.net/?p=7077 Starbucks marketing strategy is based on the following principles: 1. Focus on product and place elements of the marketing mix. Marketing mix comprises 7 elements – product, place, price, promotion, process, people and physical evidence. Businesses choose to concentrate on one or two elements as their sources of competitive advantage according to their business strategy. Accordingly, Starbucks marketing mix focuses on product element through offering foods and beverages of high quality and providing respective level of service. Place element of the marketing mix represents an additional source of Starbucks competitive advantage in a way that stores are usually located at high-traffic, high-visibility locations.     2. Customer segmentation and targeting premium customer segment. The world’s largest coffee retailer targets males and females from middle and upper class who can afford expensive prices of Starbuck products for regular consumption. The company uses mono-segment, adaptive and standby product positioning techniques in order to appeal to the needs and wants of the target customer segment. 3. Integrated application of multiple marketing communication channels. Starbucks marketing communications mix utilises a number of marketing communications channels such as print and media advertising, sales promotions, events and experiences, public relations and direct marketing in an integrated manner to communicate the marketing message to the target customer segment. 4. Consistent increase of the marketing budget to implement the above measures and initiatives. Starbucks has been consistently increasing its marketing budget for a number of years. Starbucks marketing expenses totalled USD305.1 million, USD258.8 million and USD245.7 million in fiscal 2021, 2020 and 2019, respectively. The Seattle-based coffee chain spends this budget to communicate its marketing message to the target customer segment in creative ways. 5. Extensive use of celebrity endorsements. Efficient use of celebrity endorsement is one of the cornerstones of Starbucks marketing strategy. The world’s largest coffeehouse chain…]]> https://research-methodology.net/ikea-marketing-communication-mix/ Tue, 16 Aug 2022 00:42:08 +0000 http://research-methodology.net/?p=11405 IKEA marketing communication mix integrates the application of individual marketing communication channels such as print and media advertising, sales promotions, events and experiences, public relations and direct marketing. The extent and patterns of usage of these marketing communication channels by the furniture retailer is discussed below.     IKEA Print and Media Advertising IKEA relies on print and media advertising as one of its main marketing strategies to deliver its marketing message to the target customer segment. The company collaborates with a range of popular journals, magazines and TV channels globally for this purpose. The home improvement and furnishing chain has effectively integrated the elements of creativity in its print and media advertising a number of times. For example, billboard-fitted wardrobes were placed by IKEA in selected outdoor locations in Vienna. People passing by were encouraged to slide its door open to assess IKEA’s solutions to fit many items into the wardrobe.[1] In another instance, the Swedish furniture chain developed a print ad that is designed to put customers to sleep. Specifically, ‘Somnig’ is printed with lavender ink and emits white noise through a speaker. Customers are encouraged to tear it out of IKEA magazine and place next to their bed to have a good night’s sleep.[2] Another noteworthy instance of application of creativity in print advertising by IKEA relates to the publication of its more than 200 million catalogues in 2013. While more than two third of IKEA’s marketing budget was previously spent on furnishing living quarters for its catalogues, from 2013 onwards the company started to create images in its catalogue with the help of graphic artists. In other words, starting from 2013 images in IKEA catalogues are not photos but “a collection of pixels and polygons arranged on a computer”[3] and this shift has proved to be…]]> https://research-methodology.net/ikea-segmentation-targeting-positioning-targeting-cost-conscious-customers/ Tue, 16 Aug 2022 00:29:57 +0000 http://research-methodology.net/?p=11401 IKEA segmentation, targeting and positioning involves a set of consequent marketing decisions that constitute the core of company’s marketing strategy.  Segmentation refers to dividing population into groups on the basis of their common traits and characteristics. Targeting involves choosing specific groups identified as a result of segmentation as consumers for the brand. Positioning implies the selection of the marketing mix the most attractive to the target customer segment. There are various types of positioning such as mono-segment, multi-segment, standby, anticipatory, imitative, adaptive, defensive and stop-gap types of positioning. IKEA uses the following types of product positioning: – Mono-segment positioning. This type of positioning is associated with making an appeal to the needs and wants of a single customer segment. IKEA uses mono-segment positioning via focusing on a single customer segment that are cost-conscious and prefers to get value for money. – Adaptive positioning. This positioning method is based on periodically repositioning products and services to reflect changes in customer preferences. The Swedish furniture chain takes into account dynamic nature of customer preferences in designing its products. For example, increasing popularity of minimalism in the global scale has been reflected in the latest ranges of IKEA products. – Aesthetic positioning. The world’s largest furniture retailer uses ‘democratic design’ concept to develop its products. Democratic design appeals to the needs and preferences of a specific customer segment that value balance between function, form, quality, sustainability and low price. The following Table illustrates IKEA segmentation, targeting and positioning: Type of segmentation Segmentation criteria IKEA target customer segment     Geographic Region Europe,   Americas, Asia & Australia, Russia. In total 11 franchisees operate in more than 500 locations Density Urban   Demographic Age 18 and older Gender Males & Females Life-cycle stage Bachelor Stage young, single people not living at home Newly Married Couples young, no…]]> https://research-methodology.net/ikea-7ps-marketing/ Tue, 16 Aug 2022 00:22:15 +0000 http://research-methodology.net/?p=11398 IKEA 7Ps of marketing comprises elements of the marketing mix that consists of product, place, price, promotion, process, people and physical evidence. The furniture retailer places greater emphasis on the price element of the marketing mix over other elements due to cost advantage business strategy it pursues.     Product Element in IKEA Marketing Mix There are nearly 12000 products across IKEA range and the company renews its product range annually. The company develops approximately 2000 new products each year. IKEA products are designed by its in-house, as well as, contracted designers.  IKEA promotes the idea of democratic design. The furniture maker adheres to the following five dimensions of democratic design: form, quality, function, sustainability and low price.  IKEA products are associated with no-frills simplicity to sustain its cost leadership business strategy. Furthermore, some of IKEA products such as furniture are not assembled and ready to use by customer. Instead, the retail giant prefers to sell large furniture items as flat pack and customers have to assemble furniture themselves according to clear guidelines and illustrative instructions supplied by the company.  Selling products in flat pack form immensely contributes to cost leadership business strategy because it is much cheaper to transport and store flat packs than ready assembled items.   Place Element in IKEA 7Ps of Marketing IKEA has 11 franchisees operating in more than 500 locations in 63 countries.[1] The Swedish furniture chain promotes itself as a multi-channel retailer effectively integrating online and offline sales channels. Currently IKEA is concentrating on smaller city-centre stores and planning studios for kitchens, as the world’s largest furniture retailer tries to decrease its dependence on selling only through giant out-of-town warehouses.   Price Element in IKEA Marketing Mix  IKEA pricing strategy integrates the following: 1. Cost leadership. Competitive costs are placed at the core of…]]> https://research-methodology.net/ikea-marketing-strategy/ Tue, 16 Aug 2022 00:22:05 +0000 http://research-methodology.net/?p=7056 IKEA marketing strategy is based on sophisticated customer research and market research. “IKEA actually sends design experts into people’s homes to listen to their concerns and provide feedback. This allows IKEA evangelists to make marketing decisions based on people’s real-life experiences rather than just surveys or data.”[1] Accordingly, it can be argued that marketing strategy of IKEA is proactive, rather than reactive. In 2018, the world’s largest furniture retailer shifted its marketing focus from rooms to product innovation. The ‘magic’ blue bag has been placed at the core of marketing strategy of IKEA and the latest ads have been designed to illustrate how the addition of just a few innovative items can transform the home for the better. Generally, IKEA marketing strategy integrates the following: 1. Focusing on product and price elements of the marketing mix. Specifically, IKEA attempts to offer the greatest range of products for the lowest cost. Economies of scale play an instrumental role in achieving competitive prices. The Swedish furniture chain offers mixed-and-matchedproducts accommodating unique style and needs of each customer. Reusable durability is another important feature of IKEA products. Along with product and price, additional elements of marketing mix, also known as 7Ps of marketing include place, promotion, process, people and physical evidence. 2. Using mono-segment, adaptive and aesthetic types of product positioning. The furniture retailer targets cost-conscious customer segment that prefers to get value for money they pay. Accordingly, IKEA has adapted the lowest costs of its products along with the widest range as the unique selling proposition of the brand. The home improvement and furnishing chain continually adapts its products to changing customer needs and wants on the basis of its proven ‘democratic design’ concept. 3. Integrating several channels of marketing communication such as print and media advertising, sales promotions, events and experiences,…]]> https://research-methodology.net/mcdonalds-7ps-marketing/ Wed, 22 Jun 2022 00:59:14 +0000 http://research-methodology.net/?p=7300 McDonald’s 7Ps of marketing comprises elements of the marketing mix that consists of product, place, price, promotion, process, people and physical evidence.   Product Element in McDonald’s Marketing Mix (McDonald’s 7Ps of Marketing) McDonald’s restaurants offer a substantially uniform menu, although there are geographic variations to suit local consumer preferences and tastes. The fast food chain sells a wide range of fast food products such as hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps and french fries. The company also offers salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafé beverages and other beverages.[1]Although, the company has long announced its pledge to increase the nutritional value of its meals, McDonald’s foods widely remain to be perceived as unhealthy.     Place Element in McDonald’s Marketing Mix (McDonald’s 7Ps of Marketing) There are 40,031 McDonald’s restaurants in 119 countries.[2] As of December 2021 in total 37,295 stores, or 93%, were franchised. According to its aggressive expansion business strategy, the company aims to establish its presence in urban, as well as, in rural areas. The company states that “McDonald’s looks for the best locations within the marketplace to provide our customers with convenience. We build quality restaurants in neighbourhoods as well as airports, malls, tollways, and colleges at a value to our customers”.[3]. Generally, major fast food restaurants tend to cluster and in most locations, where there is a McDonald’s, there is also a Burger King right across the street.[4]   Price Element in McDonald’s Marketing Mix (McDonald’s 7Ps of Marketing) McDonald’s pricing strategy comprises the following: 1. Economy pricing. McDonald’s follows cost leadership business strategy and accordingly, its foods and drinks are offered for competitive prices. The fast food chain offers customers the possibility to dine for a fraction of costs that are charged…]]> https://research-methodology.net/mcdonalds-marketing-communication-mix/ Wed, 22 Jun 2022 00:48:17 +0000 http://research-methodology.net/?p=7346 McDonald’s marketing strategy relies upon an extensive utilization of individual elements of the marketing communication mix. Specifically, McDonald’s marketing communication mix comprises print and media advertising, sales promotions, events and experiences, public relations and direct marketing. McDonald’s marketing and promotional efforts focus on value, quality, food taste, menu choice, nutrition, convenience and the customer experience   McDonald’s Print and Media Advertising McDonald’s marketing strategy attempts to integrate the elements of creativity and uniqueness in its print and media advertising. For example, the company has launched ‘Easy Morning’ print ads with the tagline “In the morning not everything is as easy as breakfast at McDonalds”, and a humorous attempt has been made to show an appropriate time to eat burger via a print ad. McDonald’s spends considerable amount of financial resources for print and media advertising. These investments amounted to USD 82.9 million, USD 329.2 million and USD 81.5 million for 2021, 2020 and 2019 respectively. Particularly, in 2020 the fast food chain made significant investments in brand communications.[1] The company has launched some controversial marketing campaigns as well. These include commercial in UK that exploits a child’s grief over the death of his father, “Carry On,” campaign referencing public tragedies including 9/11 and the Boston Marathon bombings and others. McDonald’s viral marketing also plays an instrumental role in terms of spreading the marketing message among the members of the target customer segment. The most noteworthy McDonald’s viral marketing campaigns include “Ask McDonald’s YouTube campaign” in Canada, ‘McDonald’s GOL!’ marketing video clip that attracted more than 10 million views and others.   McDonald’s Sales Promotions Sales promotion is a popular marketing technique with McDonald’s and other fast food chains. McDonald’s uses the following sales promotions techniques: Competitions. Free breakfast delivery promotion according to mobile nominations[2] Seasonal promotions. “”McPick 2,” a limited-time…]]>