IKEA JYSK TARGET

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IKEAJYSK TARGET

• Jeffrey Alex, Rosanna Vermeulen, Sean Murray,
• Jacob Mather, Joseph Berkvens

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• Founded in 1943 by Ingvar Kamprad
• Originally sold pens, wallets, picture frames and
  watches
• Furniture introduced to the product line in 1948
• Currently have 278 stores in 36 countries and
  employ over 80 000 people
• In 2007 sold 12.8 billion, profits of 1.4 billion
• 275 million visitors to their website in 2005

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• Founded by Lars Larsen
• First opened in Denmark
• Now has 1450 stores in 32 different countries
• Annual sales of 1.4bn
• Employs 14,000 people

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• Founded by George. D Dayton
• First Opened in Minneapolis, Minnesota
• 63 billion in revenue
• Consists of 1591 stores
• Employing 366,000

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Website Functionality
(High)
Ikea JYSK Target
Price
(High)
(Low)
(Low)
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Building Brand Equity

• Pricing Program

• Product Program

• Consistently Low Priced
• Focus on efficiency, cost effectiveness to
  lower price
• Price Determination

• Innovative
• High quality products
• Environmentally friendly
• Quality Product
• High Value

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Building Brand Equity

• Promotional Program

• Only distribute Ikea Brand
• Other popular channels are catalogue and website

• Voice/Essence of Ikea Love Your Home
• Banner ads
• Coupons
• Television
• Direct mail

• Distribution Program

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Strategy

• TARGET MARKET
• POSITIONING

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Strategy
Information Site
Manufacturer
Aggregate Site
Direct Purchasing Site
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Targeting Scenarios

• Bleed-Over Targeting
• Young families, young adults, home renovators
• Serves part of offline segment as well as new
  segment online

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7 C Analysis of IKEA

• Context
• Navigate by country and product
• Thorough use of graphics
• Content
• Furniture and food products
• Location and sale information
• Customer service Anna
• Community
• Website
• Communication
• News letters

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7 Cs Analysis

• 5. Customization
• Offer login and personalized emails
• 6. Connection
• No links to third party web sites
• 7. Commerce
• Registration
• Shopping cart
• Instant credit approval
• Order tracking

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Evaluation

• FUNCTIONALITY
• Usability and Ease of Navigation
• 1 2 3 4 5
• Speed
• 1 2 3 4 5
• Reliability
• 1 2 3 4 5
• Security
• 1 2 3 4 5
• Media Accessibility
• 1 2 3 4 5

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Evaluation

• Intimacy
• Customization
• 1 2 3 4 5
• Communication
• 1 2 3 4 5
• Consistency
• 1 2 3 4 5
• Trustworthiness
• 1 2 3 4 5
• Exceptional value
• 1 2 3 4 5
• Consumption gt Leisure
• 1 2 3 4 5

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IKEA Evangelist Example

• http//ca.youtube.com/watch?v0hKIt1r2FOI

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Future Plans

• Targeting and segmentation strategy
• Facilitation of the online customer experience
• The Different Levers used by Ikea, JYSK and
  Target to facilitate communication
• Recommendations for Ikea