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IKEA FINALE

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IKEA FINALE Powered By Docstoc
					TEAM


 Keyona Abbott
Francisco Alvarez
 Kaitlin Bumpus
  Jasmine Ruiz
             Overview

•   Founded in 1943 by Ingvar Kamprad
•   Focuses on Frugality & Low Cost
•   Over 226 Stores in 33 Countries
•   200 IKEA Group Owned, Rest Franchised
•   28 Stores in U.S.



                    Älmhult, Sweden - 1953   Atlanta, GA - 2005
               Functional Divisions

• Production
  – Long-Term Supplier Relationships
  – Places Trading Offices Worldwide
  – Long-Term Contractual Relationships
• Marketing
  – Product Design
  – Catalogs
  – Advertising
  – Public Relations/Sales Promotion
              SWOT Analysis

• Strengths
  – Low-Cost Structure
  – Anti-bureaucracy
  – Do-It-Yourself Approach
  – Added Amenities
• Weaknesses
                                       IKEA Catalog
  – Do-It-Yourself Approach
  – Service Trade-Offs
  – Limited Promotional Expenditures
             SWOT Analysis

• Opportunities
  – Urban Sprawl
  – Value-Dominant Buying Logic
  – Growing Popularity of Swedish Design


• Threats
  – Copycat Competitors
  – Changing Customer Needs
               Future U.S. Expansion

• Advantages
  – Consumers Cost-Conscious
  – Melting Pot of Cultures


• Barriers
  – Strong Individualism
  – Commercials Too Edgy
            Question 1

• Why are the styling and designs of IKEA
  products so popular? Does IKEA’s blend
  of style and pricing have appeal to
  mainstream U.S. consumers?
             Product Description

Positive            Negative
•   Trendy           •   Cheap
•   Sleek            •   Hard to install
•   Low-Priced       •   Low-Priced
•   Good Quality     •   Bad Quality
•   Unique           •   Not Unique
•   Stylish
        Problems




Price              Self-Assembly
                   Appeals To…



College Students                               Kids




                     Business Office


 Young Couples                         Sophisticated Family
           Demographics

• Gender        • Age
              Demographics

• Education        • Income
Demographics

  • Race
             Question 2

• How do you
  account for IKEA’s
  growth & popularity:
  value or image?
  What can IKEA do
  to sustain growth
  after it loses some    Hoovers Company Capsules and Profiles

  cachet?
                 Image

• What do you think of when you think about
  IKEA?
• Appeals to Outside Mainstream
• Socially and Ethically Responsibility
  –   No plastic bags
  –   Owned by a charity
  –   Long term relationship with suppliers.
  –   Environmentally conscious production and
      manufacturing process
                  Commercials




500 Days of Summer




                            Dining Room Table



  I Don’t Judge
              Sustainable Growth

• Expansion into other markets
  – Use successful business strategy in other
    ways
  – Open smaller “mini IKEAs”


• Put products into other retail stores.
  – Food from their café in grocery stores
             Question 3

• Speculate on what will happen at IKEA
  stores as they are tailored to fit local
  tastes. Is the company’s trade-off of
  service for low cost sustainable in the
  long term?
                U.S. Market

• A lot of Americans live very busy lives and
  convenience and fast pace is very important

• Most Americans are willing to pay the extra
  money for service rather than the do-it-yourself

• It’s believed that the low cost do-it-yourself will
  not be sustainable in the U.S. and other
  developed countries
              American Invasion

• Americans did not
  like IKEAs’ products
  at first….

  – The sofas were too
    hard
  – Appliances did not
    match kitchen designs
  – Everything is do-it-
    yourself
Advertising
Advertising
Advertising
            Fun Facts

• Cheapest Item is a dog dish for $0.29
• There are 48 room settings and three
  model homes in an IKEA showroom
• 522 million people worldwide went to an
  IKEA store last year
• In 2006, IKEA stores & distribution centers
  handled 281,734 tons of waste.
  About 81% was recycled.

				
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posted:11/1/2011
language:English
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