Ikea Location

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					                                                                       Farrukh Memon
                                                                           Oakley Tyler
                                                      BUSA 308: Principles of Marketing
                                                                            5 May 2008
                                                                   Group Assignment 2


    For this assignment we chose to shop for a sofa. The two stores we will be

comparing are IKEA and Macy’s Furniture Gallery. The following answers refer to the

application exercise questions 1 thru 3.

    1) IKEA

    Location: IKEA is located in Renton, WA. The area in which the store is located is

in the industrial warehouse zone of the city, meaning it is not a residential area. The area

is full of business campuses which make the location of the store warehouse ideal. The

area is not congested and there is ample parking everywhere. The store is easy to get to

and we would drive to it under normal circumstances.

        Exterior atmosphere: The warehouse has a large parking garage, which

provides indoor parking for the customers. The store tends to be busy so parking is a

challenge. The lot is clean and has public restrooms for customer convenience. The area

is a business campus zone so there are other businesses around the area such as Home

Depot, Costco and Wal-Mart. The surrounding businesses increase traffic and direct

competition is nearby, for example Wal-Mart and Costco but both have a very limited

amount of furniture as opposed to IKEA which specializes in inexpensive, stylish

furniture. The building is large and crowded. The entrance is inviting and there is lots of

activity.

        Interior atmosphere: The isles are large (between 5-7 feet wide on average).

Lighting is soft and the music is relaxing with occasional promotional messages. The
store layout is a bit confusing but interesting at the same time. The organization is based

on the living spaces in the house or apartment. For example, beds are located in the

bedroom section but there are also other pieces of furniture that belong in the bedroom

such as desks, chairs, lamps etc… There are arrows painted on the aisles which direct the

customers to their desired sections of the store. The furniture is not assembled so only

the item number and the isle where it is located in the warehouse are listed. Plenty of

pencils and paper are provided to write down the information. The description of the

product along with its dimensions and price are listed. There are plenty of associates that

can check availability for the product. The showrooms are well organized and appeal to a

younger, more hip crowd. The area of the store where the product is located is the actual

warehouse. It too is well organized and labeled appropriately and the products are easy

to find. The shelves are large and there are examples of the assembled products located

everywhere for easy reference. There are plenty of employees that can help look for

products and help with loading and unloading.

       Product: The product we were looking for is a sofa and the product was

available in the store. We also found a suitable more inexpensive substitute if the one we

preferred was not available. We personally liked IKEA because of its layout and the

affordability of the furniture. The style more suited our tastes as well.

       Price: The price was a major deciding factor. The price depended on the sofa

that we wanted and it was $500.00 for a basic three person sofa. It included a pullout bed

and the color was very funky and cool. The price, dimensions and colors of the sofa were

prominently marked as well as the location in the warehouse. We expected the price to
be about the same as the actual price. There were more expensive and better quality

pieces available but this one was good enough for our needs.

Macys Furniture Gallery

                Location: Macys Furniture Gallery is located in Tacoma, WA right off I-

5 on 48th Street. It is directly across the bridge from an extremely congested shopping

area by the Tacoma Mall, where Macys is located. But the store itself is somewhat

secluded from any other shopping complex. Macys Furniture Gallery is surrounded by

neighborhoods but the traffic on 48th street is fairly busy. It is very convenient that the

store is located right off Interstate 5, and under normal circumstances I believe we would

travel to Macys Furniture Gallery.

                Exterior Atmosphere: Macys has its own private parking lot,

surrounded by landscape and trees. There are no other stores around. It is on a hill that

over looks the freeway and the Tacoma Mall is visible over the bridge. The lot is

spacious and not crowded or busy. More than half the parking lot is empty so it is easy to

choose a space to park in whatever area of the lot preferred. The lot is rectangle shaped

and is wider than the store itself. The lot is clean with manicured bushes surrounding the

front doors to the gallery. There are steps that lead up to the glass front doors of Macy’s

gallery. The building has a modern and cement feel.

                Interior Atmosphere: You walk through the huge glass front doors and

you are on a clean and shiny wide tile floor. There is an escalator in front of you with

gold colored trim and the ceilings are high. You can walk to your right or left, whichever

you prefer. The aisles are about 6 to 8 feet wide and you are flooded with natural light

coming through the doors behind you. A sales man immediately walks up to us in a crisp
suit and introduces himself by first name and wants to know our names. He shakes our

hands. He is very willing to help. He briefly asks us what we are looking for and lays

out the first floor as being sectioned off as traditional, modern, and classic styles of sofas

and furniture. All the reclining furniture, including the reclining sofas, is located on the

second floor. The salesman welcomes questions and then leaves us alone. The store was

fairly empty; this could have been due to the fact that we were there 20 minutes before

closing. There were between 4 and 6 other customers at the gallery. The cashier was

along the back wall; she smiled at us as we walked by. There were many styles of sofas

to choose from. Small designed areas of furniture were set up around the aisles we

walked through. Downstairs, the walk way made a huge half circle; the front doors took

up the whole front wall. Upstairs was more crowded with rugs and bed frames, as well as

the reclining furniture. Along the left wall was a walk in wear house. All the sales

people were friendly and professionally dressed.

                The Product: There were many sofas to choose from. All sofas, fabric

and leather, came with color swatches to choose from. Some sofas had 3 colors to choose

from, others had up to 10. The styles combined with colors and fabrics were endless

seeming. The product you want is always available with the option of custom ordering.

The sofas seemed heavy duty and built to stand the test of time and wear and tear. The

feel of the store was high class and ritzy, therefore our perception of the quality of

Macy’s gallery was exceptional, and the price matched its perceived quality.

                Price: The price of the sofas is prominently marked at Macys. Many of

the sofas are sold at a discount price when making a purchase of the sofa with another

item, for example when purchasing a chair or table of the same set. They had many
brands and styles available to choose from, and all the furniture we found to be quite

pricy. We were surprised at the price sometimes. Walking in we did not know exactly

what to expect as far as pricing went, but when the first sofa we looked at cost $4,846.00

we became accustomed to expect the rest of the furniture to also be quite pricy.

        2) We both decided to purchase a sofa from IKEA. The primary reason for this

choice was the price. We are both college students and IKEA is affordable and appeals

to our style, well enough. Aside from the price, the quality of the sofas was somewhat

similar. The better quality furniture at IKEA was expensive but affordable, as compared

to Macy’s extremely high prices. The quality depended on the type of sofa. If one was in

need of a fancier leather sofa, IKEA has it and it is a bit cheaper than Macy’s but the

quality is about the same. Macy’s was appealing to an older more established crowd

looking to furnish a house and have the furniture last a long time. IKEA was more

appealing to a younger crowd that might not keep the furniture as long and may change

their style as they get older.

        3) The 3 most important differences in the stores were price, location and

customer service. Macy’s customer service was superb. The salesman was

professionally dressed (suit). He greeted us as soon as we entered the store. He also

introduced himself. He asked for our names to establish some sort of relationship with

us. He was friendly and shook our hands. IKEA’s customer service is different. The

associates are around but leave the customers alone for the most part. There are lots of

salespeople and are easily identifiable due to their red shirts that say IKEA! The store

has an impersonal feel. The price was another major difference. Macy’s was very

expensive. The furniture was great quality and the price reflected that quality. IKEA
was affordable but there were pieces that were expensive and very good quality. IKEA is

more affordable overall. Another big difference was location. Macy’s is located across

from the mall and IKEA is located in a business zone in Seattle. Macy’s was small and

homely and IKEA is gargantuan!