This action might not be possible to undo. Are you sure you want to continue?
will be a line extension in the form of a new product development growth strategy.
Target Market Age: Gender: Income: Social Grade: 18-42 Male and female RM 3,000 + Socio-economic class: “A & B” Social status: Upper and Middle class Heads of household: Male / Female
colorful educated Behavioral segmentation Level of use: it is used on frequent basis either daily or weekly Occasion of use: usage is not occasional. businessmen. professionals. working class. There are indirect competitors of IKEA namely: Macy Teakia Artilux Ora-kit . bold. progressive appearance conscious. high spending pattern. it is frequent or when need arises Buying intensity: mostly monthly or quarterly Competitors IKEA does not have any direct competitors as far as innovation and creativity is concerned.Occupation: Students. married couples it will be launched only in Mutiara Damansara Psychographics segmentation Lifestyle: Personality Self-concept outgoing. Marital Status: Geographic: bachelor.
Therefore the launch of IKEA – illumination will have an enduring competitive edge over all its competitors as this line of product exclusively exhibit creative home accessories.And other small and medium furniture shops All the competitors cater the niche market as they are working good in the manufacturing but lack innovation and creativity. Prices are 30% to 50% lower than competing products. Price IKEA‟s strategy is based on cost leadership. Across markets where it currently has a presence. cloth hangers. tables. Most products are related to furniture and home accessories.illumination focuses on pure creativity and innovation. cups. Market share Europe (76%) North America (18%) Asia/Aus/ME (6%) Marketing Mix Product: IKEA – illumination is a product extension of IKEA. sofas. with a whole new look Promotion: Most of the IKA promotions in Malaysia are done through catalog promotion pages. Placement: IKEA – Illumination will be shelved inside the IKEA store at Mutiara Damansara. The concept of IKEA. For IKEA – Illumination we will use aggressive ATL and BTL activities to promote IKEA – Illumination. But IKEA – Illumination offers innovative products there for we will use the price premium strategy to grab the market share. . carpets etc. products are sold at low prices. Innovative print ads and media ads will be used. like lamps. All these products are innovative and different from each other. chairs. plugs. Beside that creative promotional campaigns will take place in major locations of Malaysia.
innovative.Description of Product IKEA. IKEA – Illumination will give your home an eye catching modern look. magazines. IKEA use superior quality raw materials to manufacture its products therefore IKEA – Illumination will be a lethal combination of creativity and durability which is the POD (point of difference) of IKEA – Illumination over its competitors.Illumination offers wide range of stylish. radio and various creative promotional campaigns. catalogs. dynamic and vibrant generation Yers. IKEA – Illumination will be priced slightly higher than the normal IKEA products and its competitors to achieve the highest market share. The products are categorically designed to provoke young. Aggressive advertising will be used to promote IKEA – Illumination by means of newspapers. colorful and trendy home accessories and furniture. Distribution of IKEA – Illumination will be done through distribution channel of IKEA and the products will be shelved in IKEA store at Mutiara Damansara. TV. .
Corporate profit forecasts are likely to fall significantly further next year. On foreign funds inflow. The banks also had sufficient reserves to buffer any credit crunch shocks. Malaysia has come a long way since the Asian financial crisis in 1997/98. It is important that consumers continue to spend. probably charting low single digit growth. a lot of countries would be competing for the same foreign fund inflows during these times so Malaysia should continue to be competitive and make sure that it had reasons for investors to come in. However. Malaysia had the ability for further pump-priming to stimulate the economy with its current external reserves and account surplus. We should not be too concerned with the 2009 earnings as they are expected to be poor. corporate and even politically. although Malaysia‟s economy is holding up pretty.7bil could support 8. Those who can afford it should continue spending as we are facing a serious slowdown next year.Industry analysis Future outlook of Malaysian Economy 2010 will bound to be a very challenging year for Malaysia. Although things are not looking very rosy.1 months of retained imports and 3. We learned our lessons during the Asian crisis. .7 times short-term external debt. The unemployment rate is expected to remain high as corporate could be downsizing. Malaysia‟s external reserves of US$99. Malaysian banks are deposit-funded and lowly geared. Investors have to do their homework and understand their risk tolerance level before moving into the market at this time. Inflation would not be a concern in 2009 as soaring inflation is likely to ease next year. The impact on Malaysia this year has somehow been cushioned but many are beginning to feel the economic downturn towards the year-end. it is still too early to tell if consumer confidence has been restored. The cycle has to continue to stimulate the economy. We are different from 10 years ago – economy. there are still opportunities to be tapped during this time of market uncertainty.
Generally the Malaysian furniture manufacturers can be categorized into four categories: Small and medium scale industries established and operating in the furniture village Small scale industries established and operating outside the furniture village Medium and Large manufacturing companies-local owned Large manufacturing companies-joint venture and foreign owned Large furniture manufacturing plants are categorized as the plants that have paid-up capital above RM9 million. The highest number of furniture exporters manufacturing plants are in the state of Johor (232).965 furniture plants in Malaysia.183 Malaysian furniture exporters. Perak. followed by Selangor (171). it is estimated that more than 75% of the furniture companies are either wholly or majority Malaysia owned. . and the availability of good infrastructure. The remaining 30% were large and medium sized furniture plants which have penetrated the export markets. medium plants are between RM2.630 in Peninsular Malaysia. Wooden furniture accounts for the majority category. Generally the furniture mills in Peninsular Malaysia are more developed and most of these mills are located on the West Coast. In Johor. In terms of ownership. There are 1. (37) and Kedah (27).5 million1. It is estimated that 70% were small scale plants such as workshops and backyard factories using low level production technology and catering to domestic markets.Analysis of Industry Structure of Malaysian Furniture Industry There are about 2. access to labors. 575 were furniture exporters with manufacturing plants. About 90% of total furniture exports were accounted for by locally owned larger companies and companies with foreign investment.5 million to RM9 million while the small plants have paid-up capital below RM2. 120 in Sabah and 215 in Sarawak. distance to the export exit points. while in Selangor they are in the Klang Valley area. with 2. the highest concentration and most productive manufacturing plants are in Muar. The location of furniture establishments in these states are greatly influenced by proximity to the supply. which comprises 87% of these furniture exporters. the remaining 608 being trading exporters. supporting industries. and facilities.
97 million the United States accounted for 38% of Malaysian furniture exports. and furniture parts. Competitor Analysis . share and ranked seventh after Taiwan. dining tables. The size of these mills ranges from 1. Japan is the second largest wood furniture importing country after the United States. The number of workers employed by these plants ranges from 30 to 1. comprising medium and large companies with the individual company‟s annual sales ranging from RM3 million to RM70 million. Malaysia controlled 7% of Japanese furniture market.Furniture manufacturers composition. and Italy. Thailand. the United States. Furniture exports from Malaysia to the United States have been increasing rapidly from RM82.000 to 130. In 1994. The U.300 workers with 70% of factories employing between 100 to 200 workers. Malaysian Furniture Market The United States represents the largest single market for Malaysian furniture. China. The majority of these companies have established their business in the export markets.000 square meters.1 million in 1990 to reach a total of RM837. Indonesia. which accounted for 22% of Malaysian furniture markets in 1994.S. imports from Malaysia consisted mainly of wooden chairs and miscellaneous wooden furniture.
245/female 724.153.illumination to have an enduring competitive edge on the basis of quality.IKEA‟s competitors can be divided into two broad categories: Foreign furniture stores Macy‟s 2531 Local furniture stores Furniture manufacturers composition. segmentation will be done for the positioning of the product and the consumers with the income level of RM3000+ will be our potential customers.000 square meters.621/female 3.043) target market 65 years and over: 5% (male 569. creativity and price Customer analysis Population: 25.6% (male 8. that is why we are launching IKEA.4% (male 4.000 to 130. The majority of these companies have established their business in the export markets.) Age structure: 0-14 years: 31.300 workers with 70% of factories employing between 100 to 200 workers. The number of workers employed by these plants ranges from 30 to 1. .) After analyzing the target market. comprising medium and large companies with the individual company‟s annual sales ranging from RM3 million to RM70 million.962) 15-64 years: 63. Therefore we can say that IKEA has strong competition in the market. The size of these mills ranges from 1.575) (2009 est.819 (July 2009 est.143.914.715.210.373/female 8.
Projected profit and loss statement IKEA .
which is made by about 1.Executive summary IKEA is the world‟s most successful mass-market retailer. Today.500 suppliers in more than 50 countries. IKEA's distribution centre. The key element of the company's logistics network and strategy is to develop its market share in the Asia Pacific in the coming years."We found in Malaysia a stable and reliable business and social environment which enables us to focus on our long term expansion goals". Therefore we have planned to launch IKEA – Illumination in Malaysia . thus reducing transportation costs. No design. finds its way into the catalogue if it cannot be made affordable. Malaysia has been chosen for its central geographical position in Asia and it's well developed logistics network and port infrastructure. With an aim of lowering prices across its entire offering by an average of 2% to 3% each year. its signature feature is the flat packed product that customers assemble at home. with a 130.IKEA illumination is a product extension of IKEA which aggressively focuses on modern. IKEA began operating in Sweden in 1943 and continues its original ethos based upon cost obsession fused with design culture.000 pallet storage capacity employs circa 220 co-workers. IKEA was set up in Malaysia in 1999 with its distribution centre being the regional hub for the company's Asia Pacific market to its 16 stores in seven Asia Pacific countries. no matter how inspired." focuses on our commitment to product design. innovation and consumer value KEA. creative and trendy furniture for generation Y. Yet. The company designs its own furniture. "Turn Life On. IKEA will continue to develop and optimize its logistics hub in Malaysia by implementing RadioFrequency technology in 2007 to monitor the company's inventory flow and continue to invest in the development of local competence. IKEA has sustainability at heart and. the IKEA illumination concept is based on the market positioning statement. through an internal mantra of „low price but not at any price‟ is a leading example of sustainable innovation and business growth.Illumination’s marketing communication focusing primarily on printed . selling Scandinavian-style home furnishings and other house goods in 230 stores in 33 countries and hosting 410 million shoppers per year. unlike some peers. Agunnaryd. Malaysia's ethnic diversity and well educated workforce has enabled IKEA to find the suitable manpower to meet the company's human resource requirements. An acronym for founder Ingvar Kamprad and his boyhood home of Elmtaryd.
media which has proven its values and success to the company over the years. . Other media now being used to an increasing degree include TV. and internet based communication. radio.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.