IKEA Background

1
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
2
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
3
Positioning Map
Quality
High
Francfranc
B Q
Price
Low
High
Pricerite
Low
4
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 gt 12,000 items
Design light and modern, many selections
D.I.Y, Mix Match
Multi functional
5
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
6
SWOT Analysis
Smallest price, keep quality
Short product life cycle
Creative ideas
No fitting out on-site service
Multi-function
Delivery charges
One stop solution
W
S
O
T
Free Delivery Charges
Diversified route
Leader of furniture
Many competitors
Develop new market (office and Macau delivery)
Need large amount of space (Special in HK)
7
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
8
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
????
deliver to macau
9
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