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IKEA_Project_1.2

VIEWS: 45 PAGES: 9

									              IKEA Background
1942 IKEA established
1947 started the furniture business

1975 opened the 1st shop in H.K

As at 2007,it has 260 stores in 35 countries

IKEA own their coffee shops, restaurants in
the retail shops
                          Target Segment
Mission statement:
Your partner in better living. We do our part, you do yours.
Together we save money.

Target customers: Family, New generation, Offices


Age group: All young age group


Income: Middle class
                          Positioning Map
                             Quality

                                  High       Francfranc


                                       B&Q



Price
        Low   Pricerite                             High




                                  Low
                  4P – Price and Product
Price:-
  Low price
  Why IKEA price is low
  low cost logistics
  large quantity purchasing
  flat packed method reduce transportation cost
Product:-
  Offer > 12,000 items
  Design: light and modern, many selections
  D.I.Y, Mix & Match
  Multi functional
               4P – Place and Promotion
Place:-
Flat packed: save place, high capacity
Near public transportation line & densely populated district
Merchandise classification and positioning
Added-value: Café & Playground, snack shops
Promotion:-
Below the line & above the line
Public relations: public activities
Sales Promotion in store demonstration, displays & Seasonal promotion.
Tailor-made design
                  SWOT Analysis
Smallest price, keep quality           Short product life cycle
Creative ideas                         No fitting out on-site
Multi-function                         service
One stop solution                      Delivery charges


                               S   W
                               O   T
Diversified route                      Free Delivery Charges
Leader of furniture                    Many competitors
Develop new market                     Need large amount of
(office and Macau delivery)            space (Special in HK)
                                SWOT
4P – IKEA can apply to each of 4P, but it seems more
concentrate on Product and Promotion

Advantage:- Other competitor has no TV shows

             they have no Software to design the home

             No various Products
                             Analysis
Growth slowly
Remedies:
To broaden the source
a wide range of product
new segment to attract new customer

software: design
Tips for Home Decoration 宜室宜居
deliver to macau
                         Conclusion
We think IKEA is success and that's why they are leading the market.

The following is Critical factors for success

Price
Product
Promotion


Suggestion for IKEA

  Remit delivery charge
  Improve production life cycle

								
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