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Research in Marketing Decisions

Project Submission 1
10/01/2013

IKEA - PRODUCT LAUNCH IN INDIA


(BANGALORE)

Project Submission - 1

Group-7
1.Jai Prasanna Sudhan S.P (1211024)
2.Karthikeyan T (1211029)
3.Kalayappan S (1211103)
4.Ravishankar N (1211134)
5.Karthik P (1211347)
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Research in Marketing Decisions


Project Submission 1
10/01/2013

Management Decision Problem:


To evaluate the market opportunity for IKEA in Bangalore, India

Marketing Research Problem:


1.
2.
3.
4.
5.

To
To
To
To
To

assess the opportunities for furniture industry in Indian market


identify the segments and target market relevant to the product line of IKEA
determine the branding and positioning strategy for these target segments
evaluate the sustainable competitive advantage of IKEA in Indian market
evaluate the effectiveness of the IKEA retail concept in Indian market

Components of MR problem:
S.N
o.
1.

2.

3.

4.

Marketing Research
Components of the problem
Problem
To assess the opportunities i) How attractive is Indian market to invest in
for furniture industry in
furniture industry?
ii)
Evaluation
of
Indian
organized
and
Indian market
unorganized players and their unique
features in the market
To identify the segments
i) What is the customer profile in Bangalore w.r.t
and target market relevant
age, income, marital status, occupation and
to the product line of IKEA
socio economic classification?
ii) Who are the potential customers for the IKEA
products?
iii) What are the behavioral characteristics of the
targeted customers?
To determine the branding
i) How do customers perceive and prioritize the
and positioning strategy
key attributes of furniture items?
for these target segments ii) How customers evaluate the existing brands
with respect to key attributes?
iii) How to position the products to the new users
and attract other brand & unorganized sector
customers?
To
evaluate
the
i) How concept of self-assembled furniture is
effectiveness of the IKEA
perceived by customers?
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Research in Marketing Decisions


Project Submission 1
10/01/2013

retail concept
market
5.

in

Indian
ii) How self-service retail concept with in store
restaurants and child play area offered by
IKEA will influence the sales of furniture?
To evaluate the sustainable
i) What should be the competitive advantage for
competitive advantage of
IKEA in India w.r.t Cost and Differentiation?
ii) How competitive edge of IKEA should be levered
IKEA in Indian market
in India whether narrow or broad focus?

HYPOTHESIS :
S.N
o.
1.

2.

3.

4.

5.

6.

7.
8.

COMPONENTS OF THE
PROBLEM
How attractive is Indian market
to invest in furniture industry?
Evaluation of Indian organized
and unorganized players and
their unique features in the
market?
What is the customer profile in
Bangalore w.r.t age, income,
marital status, occupation and
socio economic classification?

HYPOTHESIS
There is a huge market potential
untapped and opportunity for further
growth.
i) There are few organized players in this
industry
ii) Customization by unorganized players to
customer needs are more preferred
Bangalore consists mostly of people who
migrated from other towns for their
occupation

i) Migrant Single and newly married couples


Who are the potential customers
are the potential customers
for the IKEA products?
ii) Globals, seekers, strivers are potential
customers
What are the behavioral
Innovators and variety seeking people are
characteristics of the targeted
initial customers for IKEA
customers?
How do customers perceive and
Price, quality, visual appearance, ease of
prioritize the key attributes of
handling are the attributes valued by
furniture items?
customers
How customers evaluate the
Customers evaluate other competitors in
existing brands with respect to
this industry by price, quality and time
key attributes?
taken to deliver
How to position the products to i) Ease of transportation, variety of
the new users and attract other
products, minimal maintenance costs
brand & customers from
and quick delivery will be valued high
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Research in Marketing Decisions


Project Submission 1
10/01/2013

9.

10.

11.

12.

by customers of other brands


ii) Low cost and compactness are valued by
unorganized sector?
new customers in this industry
Self-assembled furniture should be
How concept of self-assembled
bundled with service people for
furniture is perceived by
assistance in assembly at home is
customers?
preferred
i) Customers dont prefer self-service set up
How self-service retail concept
in choosing a furniture
with in store restaurants and
ii) Customers prefer stores with restaurants
child play area offered by IKEA
and child play area as additional
will influence the sales of
feature and influence in spending
furniture?
more time at stores
What should be the competitive
Low cost and width in product line
advantage of IKEA in India w.r.t
provides competitive advantage
Cost and Differentiation?
How competitive edge of IKEA
Broad focus in Indian market will be the
should be levered in India
competitive edge for IKEA
whether narrow or broad focus?

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