Analysis Of The Different Marketing Mix Marketing Essay
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It is well known that Chinese real property industry is rapidly developing especially in megacities. By November 2010, according to statistics published on the website of the Beijing Real Estate Transaction Management Network (2010, cited in Chinahourly, 2010), the total space of residential estate was 10,107 units in Beijing. Furthermore, Cao et al. (2004) demonstrated that the middle-class consumers who are a target group of high-end merchandises flock together in Guangzhou, Shanghai, and Beijing in general, while the International Civil Service Commission report (2010) showed that Beijing consumers spent 136.97 dollars on durable expenditure, including furniture and household equipments.
Furniture retailers are confronting drastic and complicated competition in China (Cao et al., 2004). Under these circumstances, IKEA, a multinational furniture retail trader, will open its biggest wholesale branch outside of Sweden in Beijing (Stonebtb, 2009). As a domestic Chinese enterprise, Ilinoi started its business in 1995; after six years' development, it has gained competitiveness in the market and set up its own brand culture (Liu, 2007). However, there has been no research on the marketing mix of its two originations.
Based on the current situation of current study, this research will investigate IKEA and Ilinoi's enterprise marketing mixes from the aspects of the 4P's: product, price, place and promotion (Pan, 2005). The primary aim is to compare the two companies' marketing strategies and understand how they align with Chinese consumer demand.
Literature Review
In past studies, the research depends on previous primary data from the Ilinoi Company (Liu, 2007). Liu (2007) used a SWOT analysis to obtain strength, weakness, opportunities and threats of Ilinoi Company. Meanwhile an External Factor Evaluation Matrix (EFE) and Internal Factor Evaluation Matrix (IFE) were both used to enlighten company decision-makers (Liu, 2007). Liu (2007) showed that although Ilinoi Company gained considerable achievement in Chinese furniture industry, it should adjust its marketing tactics and organization structure. Liu (2007) further found that the company should follow market development strategy and horizontal integration strategy.
Datamonitor(2010) used the SWOT analysis method to determine that IKEA owns considerable market share, higher consumer satisfaction relative to its peers and centers on sustainability. They found that its disadvantages are unfavorable store locations and decreased sales in the UK (Datamonitor, 2010).
Burt et al. (2008) investigated the level of standard in IKEA's marketing strategy among different countries. They included the products, store position and format, advertising and marketing strategy, purchasing environment and service aspects. Burt et al. (2008) researched the measures which were used in the different countries. Burt et al. (2008) found that although the standard marketing strategy is used in different countries, special measures, to a small extent, are adjusted.
By means of SWOT analysis, the above investigations have both discussed and determined the two companies' situation, provide the literature source and lay foundation for later research. This research from diverse points of view will survey the two furniture retail businesses marketing mix and analyze the disparity of their marketing strategies.
Research objectives
To investigate key product categories of both IKEA and Ilinoi companies in terms of price, assortment, design and availability in Beijing
To analyze consumers' attitudes and preferences regarding the IKEA and Ilinoi companies
To survey both companies' marketing tactics and examine their different strategies
To examine the alignment between consumer preferences and actual marketing mix
Methodology
Product comparison
The product information of each store will be collected at different locations in Beijing. This will answer the first research objective of this paper. Both IKEA and Ilinoi have thousands of products in their ranges (IKEA 1999; Ilinoi 2009). Therefore, in order to compare products between two companies, the products will be compared across key categories. The different categories will be collected from both companies, including durable and nondurable goods (Tsai, 2008). From these assortments, the difference between the two companies' products, price, range, availability and design will be analyzed.
Consumer perception
This study aims to get the consumers' attitudes toward both companies' products and reflects the two companies marketing mix strategies. Consumer attitudes will be collected by questionnaire and semi-structured interviews. The results will be used to answer the second research objective.
Pilot study
A pilot study will be used in the investigation so that sample size can be accurately calculated. Twenty five consumers will be selected systematically at each company in Beijing. Another advantage of pilot study is that based on the pilot study, the researcher could adjust questionnaire so that it could advance test to find whether designed questions or research methods are appropriate (Saunders, 2003).
Questionnaire
Face-to-face structured interviews with systematic sampling will be used. Respondents will be targeted systemically in the two furniture stores in Beijing during a certain time period. Thirteen questions will be in the formal questionnaire. The confidence level is 95%, which means the Z-score is 1.96 (Bruce et al., 2008) and e which is a margin of error is 5%. Based on the statistical formula listed below, the minimum sample size is approximate 385.
Sample size=
Source: Bruce et al. 2008, p.158
Semi- structured interview
For the purpose of reflecting in-depth opinions of consumers, ten consumers will be selected by purposive sampling to receive an in-depth interview. In the interview, the questions will be the same as those in the questionnaires. However, based on respondents' answers, open ended and probing questions will be asked. The answers will be recorded.
Data Analysis
Based on the collected data, research objective three and four will be addressed. Firstly, quantitative data will be researched utilizing SPSS and Microsoft Excel. The data from the respondents will be typed into the SPSS software. Secondly, according to statistics, the comparison of two companies' products will be shown in a chart or table, which will then be used to analyze both companies's marketing strategies. Finally, the different attitudes of consumers will be compared using the Chi-square test (McClean, 2000).
Limitations
Firstly, because the self-administered questionnaire will be used to investigate respondents, it is likely to have a lot of invalid answers and it could not receive the adequate results (Cano, 2002). This issue has to be taken into consideration as a factor influencing research result.
Secondly, in order to compare the two companies marketing strategies, the target group should be familiar with the companies. However, respondents who know both companies are limited in number which means it is possible that it could not find enough sample size.
Thirdly, this research uses the semi-structured interview as one of the methods for data collection. Respondents will be influenced by the interviewers' attitude and literal meaning will affect their selections.
Lastly, this research will investigate the sample information of products in the two companies. Therefore it will be necessary to obtain some pattern products to compare. However, sometimes, a few product categories will be not available so it may not be possible to directly obtain the necessary information.
Ethical issues
The privacy of respondents is confidential, including age, career, and attitudes toward the two companies. When the inquiry is underway, all responses will be recorded. After collecting the respondent data, all data will be anonymously analyzed. In this study, some product information refers to commercial secret, such as products price and pattern. That information will not be leaked to other competitive furniture retailer company.
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