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    Adib Akib
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    Global marketing

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    16 views5 pages

    IKEA Global Case

    Uploaded by

    Adib Akib
    Global marketing

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
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    IKEA —_ se wots lget ome fring oe ade Socten SO ars a a oe Sed para bs tin sores ss ed wo wen sso en 2 enn 33 cos Gee Exh Dn See that IKEA wes On, Nery er epras ue vec Meret Denman, Holand hee eu See erercam hares come ia toes Seo anil andthe Unted Kiam, os ete Citar Wns tnd. oe et Seer incident tn lowe oy ous rman Chat Repu, te Used Aa fats ist an ian 1%, flowed ‘ean 9 a rd Maly 8 a al terns ht appeared one cet aoe wt wire ov Te tha pene Bch 200 ad Greece and Israel in 2001 Turkey was added in 2005, Manatee wo sre! ean 26. he en ee canna te nee nt ad a Tete Sunson of ia hae rome se ea nem com th es team expan bs 1 fete Cera, OF he nial ica Sey tun sn 19 Pt cease te Sa pee of come Slowed te gare te 4o bring the IKEA concept 10 as many People 0 Pe ‘We; IKEA officials have said, The company that over 1.1 million people vist its shosems daly. In 205, nearly 454 milion vistors were recorded at IKEA utes The IKEA Concept Ingvar Kamprad, the founder, formulated as IKEA's zs sion to offer a wie varesy of home furnishings OF good design an funtion at pices so low thatthe malocs of people can alford to buy them.” The principal target Inatket of IKEA, which is similar across counties 27 regions in which IKEA has a presence, is composed of people who are young, highly educated, liberal in he ‘Cultural values, white colar workers, and not especial ‘concerned with status symbols, IKEA follows a stndardined product strtezy with 2 universally accepted assortment around. the or Today, IKEA caries an assonment of thousins of & ferent home furnishings that tinge from plas t9 po sols 10 soup spoons, and wine gasses to sallpaper ‘The smaller tems are catied to complement the soe? ones. IKEA has limited manufacturing of is ow Pu Signs all of furniture, The network of subconscious manfaures numbers ney 130 Ia over cou lies. ‘The top five purchasing counsies ae Chins 8 percend, Poland (12 percent), Swen pesven! Aly © percend and Geriany ( percent IKEA strategy i hased on cost leadership seve ‘contract manufacturers, many of whom ares low abo ‘ost counties and close uo rive mite yet aces to logis inks. Extreme Saas gene cite fs ake Hate Hare facturers wih products. Ski yaikers espero ‘woenl—have been contacted to make meal, al Prexlucers of sapernarket cats have bec emt fot ‘Scanned with CamScanner IKEA's International Expansiot 1 1 tw 2 2 own ny 5 384 e NM | $s 2 is a u 202 us 2 395 ns a | seomsestng pe noni sie emi anne ‘wnt, lenin tsa nd | IKEA's Worldwide Sales Expressed as Percentages | of Turnover by Market | Unit Nom Ameren 1% ease tule wis. Hh lume prion of dai tems allows for sic economies of een ‘change for loge conact esse expt ad technical supper ran IKEA, the saplon enufacre CSchnely at hw pes for IKEA IKEA res Sor withthe supe ul ing gens ee toes nt the production and peut fom te ose Males contin at tefoces ey 010 REA wl teed ste tie at ch mato a See Rusia 4 major source of lumber, IKEA ais on nto a major supplice of rished products inthe fe IKEA has acquire some of ts own prediction cre iin te lst Few years, constituting 10 percent tol sles. While new faites were opened in 30g {ati Poland, and Romania to bring the toa munis 3 IKEA plas to have is own production not ex 10 percent, mainly to secure Mex Manufacturers are response foe shipping the cm ponents to lange ditabution centers, for cumple, ental one in Albu, These twelve distbuson een then supply the various stores, which are in ef miniwarchouses IKEA consumers have fo become “prsunes’—at proticers, fal consumen-—because mos pros fave tbe asembled. The inal distribution i the tomer’ responsibly as well. Although IKEA expec tomers 10 be acive paricipanss in the bel proces, it not ig about i. There & 3 "0 foundary”beren sat consumers do fe thems and what IKEA employees will do fer tem. Consans> Save the most by diving to the warehouses these puting the hoxes on the Wolly, fang them 0 fis, diving home, and asembling the fami: IREA cin range to pond thee Semis a change. For example, IREA cooperates wih cf ‘ompnics to offer vans and sal trucks at ese rates for customers neelng delivery service Ati ‘canons ae reaped fo the sz ofthe IKEA ales the blucandyellow bulings average 30000 1 feet (25,000 square meters) i sie. IKEA store 0 Inyting are an caters and ane theese tended 10 prove the valeescekng, cacbore So mer with complete. sopping destination ™E4 ‘Scanned with CamScanner ea OFC ue {29 Nm la Rae on ave Covel Desig teachin Sag Seo phepecer poacen ngs oe reset al ations sy ce Sra femurs! he company Specie bares oor dicate wal tet Peace octecr wenn Sune ooo eee SS cece a Ta en ns a Toss tv ental mar eae cet Sot Spencer een of ie thai REA at someone a geal oats che hs ee em itemaa bean eet ee imatao he espns we snersoruser rela. ‘daphive ft IKEA erst think about ers are also suppl and transportation), IKEA's busines and uncer cept. These The IKEA Concept Target Market: "Young people of all ages” Product: Distribution: Pricing: The IKEA conce Promotion: IKEA offers the same products, which are dh ‘The number of cove are 9,50. Each ‘on oiler ste. The core rages the se worldwide Most tem ane to bentened oy oe ‘eustomer. The furtre den moder and ihe |KEA has but its own dation network Outs are oie the cy it major metepe ‘an areas Product are no devered bt IKEA cooperates wth car ealconpinies th Set sal rues, KEA oles mal order n Europe an Canad is based on low pee fr |KEA' promatna rts are many dhrugh ts ctlgs IKEA deep roto ‘communications model dat must be flowed by a sores averting reno ng 8 provocave. Media choices try by marker i i» markets include Hong, Kong and the United Ar Hite. IKEA uses ml emer in Europe and Canada Tat has esse expansion ine the Unite Sats, rail Ines of exp IEA offers pices that are 1h 0 50 percent Inwer than, fully assembled compacting probe a result of langeaqsinity purchasing, Hove verd Ingen, tee heen om in subauban tes, andthe dit yen ppc marketing IKEA's prices el vary ran manket to ta et langely cease tuations nee eng ates ae Aiferences in tation texines, bt pice pontioni Kept as tundardize as pss, IKEA's operating nae ‘hos of approximately 10 percent are amen the best home furnishings as compared to 5 percent 15.0 Petior Pies tmpons and 77 percent at Ta ‘Profit evel hasbeen mtintned sve the ut prices This a sei For example, the Kippan sna ‘ns decreased by 40 percent since 1958. IKEA's promotion is centered on the catal IKEA catalog ie printed in? for 33 counties and has a ‘well over 160 mil u The tedtions in 24 language worldwide circulation of on copies. The catalogs ane uniform in lsyout except for minor” sepional diferences, The ‘company's advertising goal isto generate word-ofmouts Dblicty through innovative approaches, ‘The IKEA ‘concept is summarized in Exhibit IKEA in the Competitive Environment IKEA’ sttetic postioning is unique. As Exubit 5 doe {oles few furniture rales anywhere have eneae Jongterm planning or achieved scale economnne duction. European fi rue retailers, copes ‘Sweden, Switrerland, Germany, rine sealer han IKEA Ben whey c companies have ji inca Swe Sendnan nds wore. sore cries a slcton ote S00 copenng whe ts pieiage consent ‘Scanned with CamScanner sae Phang ot Porch Word Pechaing Purcasingin tbe Same Rae Sales Ose arulactng and Salat Ore ronan ataog ver (su 7) forces as buying groups their heterogencous operations have made it dificult fr them to achieve the same de gree of coordination and conceniration as IKEA. Because Eostomers are usually content 10 wait forthe delivery of Furniture, etaiers have not been forced to take purchas ing esks “The value-added dimension differentiates IKEA from sas competion. IKEA offers linted customer assistance but creates opportunites for consumers 10 choose (for ‘example, through informational signage), teansport, and sssemble units of furniture, The best summary of the Competitive sitvation was provided by a manager at an- “therm: "We cant do what IKEA does, and IKEA does- int want to do what we do.” IKEA in the United States ‘After careful study and assessment of is Canadian expe rience, IKEA decided to enter the US. market in 1985 by ‘xtablsing outers on the East Coast and, in 1960, one in Burbank, Calfornia. In 2005, 4 total’ of 26 stores (eleven in the Nonbeas, seven in California, and others {a Anzona, lines, Georga, Texas, and. Washington State) generated sales of over $195 billion, The sores sFumiromn aatna unger Rs Cooperation (onen Gorman SOURCE: ia Mareen ie String en Cre oun ue A Bape Ca Sy Competition in Furniture Retailing, vet eo roe ‘employ 15,000 workers. The overwhelming level of Success in 1987 led the company to invest 3 nate housing facility near Philadelphia that receives gonis ffom Sweden 3 well a8 dec from spl arrd the workd, Plans ell for two t0 three addtoral sors annually over the est 25 years, concentrating ont portheasten United Sates and Cabifornia. The goals 5) US. outlets by 2010. ‘Success today has not come without compromises. you ate going to be the worlds best furnishing cor pany, you have to show you can succeed in Ameri. P= aus there is 30 much to lear here” sid Goo Carstedt, head of Noth American operations. Whereas IKEA's universal appeoach had worked well in Europ, the U.S. matket proved to be different. tr some ce European products conflicted with American tases 208 preferences. For example, IKEA didnot sell matting Fesroom suites that consumers wanted, Riches

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