FINAL ASSIGNMENT STRATEGIC MARKETING
Design a Strategic Marketing Plan for IKEA who are focusing on greater growth and development of the ‘middle class market’ in India. Conduct a ‘Situation Analysis’ using elements of the marketing mix and the 3 V’s business model. Your paper should include a market audit covering research of the market, target marketing and a competitor analysis. Please use models covered on the course such as Value Chain Analysis, the Ansoff Matrix and Porters Five Forces
India is a country with a population of about 1.3 billion and an area of approximately 1.300.000 square miles. The variety of cultural, ethnic and religious aspects make this country full of resources and of potential consumers for every kind of businesses. This is a land full of opportunities and a complex market to integrate.
The population of India is divided into a caste system, with rights and places, the most favored being Brahmins caste, and the less fortunate are outcasts, or "untouchable".
Those inequalities made the country really complex and improve the difficulties for company to integrate the market and perform into the consumer’s behaviors. The marketing in the Indian market is also complex, there is a real difficulty in choosing a message to transmit, and it is important to know that the messages will be sent by the company in India will be perceived differently, between the different castes for example.
But in the last decade, a new emerging class grown, the middle class. This class represents a real opportunity for foreign companies because it is close to the average "standard" classes in the world, which represents a perfect target for companies.
To be able to effectively implement the Indian market, it is important to properly understand all the aspects of the market and at the same time of the population. Consumption in India is really different than in Europe or in the emerging countries. The aim is to know what to do, how to do, and when.
1. THE INDIAN MARKET.
1.1 A PESTEL Analysis. a
Political: India is the largest democratic republic in the world, the president has little power over the state, and the real executive power comes from the prim minister and he is helped by the councils of ministers over him. There are two houses, each have their council of states: the upper house, or senate, the Rajya Sabha, and the lower house, house of the people, the Lok Sabha. Concerning the taxes, India has a 3-tier federal structure, comporting the urban and local rural bodies, the federal government and the state governments.
Economical: India’s economical freedom score is 55.2, placing it at the 119th position in terms of economical freedom. This situation is getting better, with the management of public finances and the freedom of money and a decline in corruption. According to heritage.com:” The top income tax rate is 30.9 percent (30 percent plus an education tax of 3 percent), and the top corporate tax rate is 33.99 percent with a 7.5 percent surcharge and a 3 percent education tax. The overall tax burden equals 7.4 percent of GDP. Government spending amounts to 27.1 percent of total domestic output, and the budget remains in deficit. Public debt has grown to 68.1 percent of GDP.” The GDP is around $4.761 trillion, and its growth rate is 6.5% in 2012. The labor force is of 486.6 million people, and the unemployment rate is 8.5%. The population below the poverty line rate is 29.8%. The inflation rate if 8.6% and the FDI inflow is 31.6 billion $.
Social: The population is 1.236.686.732 in the late 2013 with the largest part, 29.2% being situated between 0 and 14 years old, and the median age in the country is 26.7 years old. The population growth rate is 1.28%. The expenditure in terms of GDP percentage is 3.3% and the literacy rate is of 74.04%. The expenditures in...
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