...OVERVIEW OF IKEA HISTORY Ingvar Kamprad: The founder of IKEA, Ingvar Kamprad, began his business career as a young boy selling matches purchased in bulk individually for a profit to his neighbors near Agunnaryd. As his business grew, he expanded to selling fish, seeds, Christmas decorations and eventually, pencils and ball-point pens which were a new phenomenon in 1935. He was very clever in utilizing his resources - he delivered his goods by bicycle, and later used the local milk delivery vehicle to make deliveries. IKEA: In 1943, with a gift from his father, Ingvar established his business, using his initials, Ingvar Kamprad, the name of the farm on which he was born, Elmtaryd and the village nearby, Agunnaryd for the acronym. At this time, he was selling everything from pens and wallets to watches and nylon stockings by going door to door and selling directly to his customers. By 1945, the first advertisements for IKEA began showing up in local newspapers and he had developed a rudimentary catalog. IKEA Store: The first full IKEA store opened in Älmhult in 1958. With 6700 m2 (72,118 ft2), it was the largest furniture display in all of Scandinavia. In 1963, the first IKEA store outside Sweden opened near Oslo in Norway, followed by the flagship store in Stockholm - a whopping 45,800 m2 (492,987 ft2) circular store inspired by the Guggenheim Museum in New York City. The success of this store, and difficulties in serving customers due to an overfilled capacity led to...
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...Stirling FK9 4LA, Scotland, UK Department of Business Administration, Lund University, P.O. Box 7080, SE-220 07 Lund, Sweden c Department of Communication Studies, Lund University, Campus Helsingborg, PO Box 882, SE-251 08 Helsingborg, Sweden b a r t i c l e in fo Available online 29 September 2010 Keywords: IKEA Retail internationalisation Retail marketing mix Standardisation Sweden the UK China abstract IKEA is often cited as an example of a ‘global’ retailer which pursues a similar ‘standardized’ approach in every market. This paper systematically assesses the degree of standardisation (and adaptation) of four commonly identified retail marketing mix activities – merchandise, location and store format, the selling and service environment, and market communication – within three countries. These countries – Sweden, the UK and China – represent different cultural settings and are markets in which IKEA has been operating for different lengths of time. The data upon which the comparison is based was generated from personal interviews, in-country consumer research, company documentation and third party commentaries. The conclusions drawn suggest that whilst IKEA operates a standardized concept, degrees of adaptation can be observed in customer facing elements, and in the supporting ‘back office’ processes which support these elements. These adaptations arise from differences in consumer cultures and the length of...
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...standardised approach to the world? IKEA in China Ulf Johansson Department of Business Administration, Lund University, Lund, Sweden, and Standardised approach to the world 199 ˚ Asa Thelander Department of Communication Studies, Lund University, Helsingborg, Sweden Abstract Purpose – The purpose of this paper is to analyse the marketing strategy in China of the furnishing retailer IKEA in the context of standardisation and adaptation of marketing activities. IKEA’s strategy in China is compared to its corporate strategy throughout the rest of the world. Design/methodology/approach – The four P classifications are used as a framework to compare the central marketing strategies of IKEA with marketing strategies used in China. The paper builds on both primary and secondary data. Interviews with senior managers at IKEA are conducted and studies on business and retailing in China are used. Findings – The marketing strategies used by IKEA in China are found to be different from the standardised strategies it uses throughout the rest of the world. Several of the changed strategies are central to the business concept of IKEA. Research limitations/implications – The present paper shows the challenges for a standardised marketing concept and its implications. Originality/value – The paper provides, in the context of the standardisation and adaptation of marketing activities, a more nuanced and up-to-date picture of the strategies used by IKEA compared to previous studies. Keywords...
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...Scotland, the UK. Ulf Johansson* *Contact author Department of Business Administration Lund University P. O. Box 7080 SE-220 07 Lund, Sweden e-mail:ulf.johansson@fek.lu.se Åsa Thelander Department of Communication Studies Lund Universitety, Campus Helsingborg, P O Box 882 SE-251 08 Helsingborg, Sweden Paper accepted for presentation at the 1st Nordic Retail and Wholesale Conference in Stockholm (Norrtälje), 6-7/11, 2008 Abstract IKEA is rumored to be a very standardized retailer, i.e., a certain set of marketing strategies is used that are the same around the world. This indeed sets IKEA, operating on markets in Europe, US as well as Asia and Australia, apart among international retailers. Often the theoretical conclusions in international marketing literature, as well as empirical evidence, argue convincingly for the more adaptation (to different markets) in different national markets. But is IKEA so standardized in marketing strategies? So far there are quite few, and very dated, empirical studies of IKEA marketing strategies (yet many refer to IKEA as having a standardized marketing strategy). Here marketing activites are conceptualized to concern: Merchandise - putting together an assortment of products (e.g., national and retailer brands, pricing and pricing strategy, assortment and local variations) Location and store formats - where are outlets established and general set up of the store, i.e., the overall lay-out of the store in terms on number of levels, placing of different...
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...IntMk-CStud-4.qxd 26/05/2005 14:05 Page 563 section 4 case studies cases 4.1 Wal-Mart’s German Misadventure 4.2 Handl Tyrol: Market Selection and Coverage Decisions of a Medium-sized Austrian Enterprise 4.3 Blair Water Purifiers to India 4.4 A Tale of Two Tipples 4.5 Kellogg’s Indian Experience 4.6 Strategic Alliances in the Global Airline Industry: from Bilateral Agreements to Integrated Networks 4.7 GN Netcom in China 4.8 IKEA: Entering Russia 4.9 The ‘David Beckham’ Brand 563 571 574 583 586 590 594 599 604 case 4.1 Wal-Mart’s German Misadventure I don’t think that Wal-Mart did their homework as well as they should have. Germany is Europe’s most pricesensitive market. Wal-Mart underestimated the competition, the culture, the legislative environment. — Steve Gotham, retail analyst, Verdict Retail Consulting, October 20021 We screwed up in Germany. Our biggest mistake was putting our name up before we had the service and low prices. People were disappointed. — John Menzer, head of Wal-Mart International December 20012 ‘Don’t look now:’ low prices all year round! With thanks to Walmart 563 IntMk-CStud-4.qxd 26/05/2005 14:06 Page 564 section 6 case studies section 4 German blues For the world’s largest retailing company, Wal-Mart, Inc., the German market was proving difficult to crack. By 2003, even after five years of having entered Germany, Wal-Mart was making losses. Though Wal-Mart did not reveal these figures, analysts estimated...
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...Swedish advertisement ICA Supermarket By Introduction Many Swedish companies are known worldwide for being innovative with their products and/or with their advertisements. Two examples of this is IKEA, which are very famous for their innovative and creative furniture among other things, and Absolut Vodka, which are very famous for their creative and innovate advertisements and limited edition bottles. However, while there are many Swedish companies which are famous worldwide, there are also some which are only famous in Sweden and/or its neighboring countries. One of these are ICA AB, which is grocery store chain operating in Sweden, Norway and the Baltic countries. ICA AB have been famous for a long while in Sweden for its creative advertisements. Already in the 1970s they become famous in Sweden for their characters ICAnder and MonICA, which first were introduced in a comic created for their ICA newspaper. The characters were portrayed as a happy couple working in an ICA-store. As the comic gained popularity, they ended up being included in all their printed advertisements and became the face of ICA until sometime in the 1990’s. However, nowadays ICAs image have changed, and they are mostly famous for their TV-advertisement drama series. It is widely known not only for being humorous, one-of-a-kind and immensely liked by the Swedish people; but also because it is currently holding the record for being the longest running advertisement drama series in the world. ...
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...3 2. Financial Analysis 4 2.1 Profitability Analysis 4 2.2 Sub-Conclusion 5 3. SWOT analysis 6 3.1 Internal Factors 6 3.1.1 Products 6 3.1.2 Distribution 6 3.1.3 Organisation 7 3.1.4 Promotion 7 3.2 External Factors 8 3.2.1 Competitors 8 3.2.2 Demand for Toys 8 3.2.3 Product Quality 9 3.2.4 Educational Toys and Games 9 3.2.5 Electronic Toys 9 3.2.6 Increased ecological consciousness 10 3.3 SWOT 10 3.3.1 Strengths: 10 3.3.2 Weaknesses: 10 3.3.3 Opportunities: 11 3.3.4 Threats: 11 3.3.5 Sub Conclusion 11 4 Marketing Strategy 13 4.1 Scope/Mission 13 4.2 Objectives 13 4.3 Segmentation/Target Group 13 4.3.1 Personality 14 4.3.2 Lifestyle 14 4.4 Positioning 15 5 Marketing Mix 16 5.1 Product 16 5.2 Place 16 5.3 Price 17 5.3.1 Pricing Strategy 17 5.4 Promotion 18 5.5 Physical 19 5.6 People 19 5.7 Processes 19 6 Action Plan 20 6.1 Short Term Plan (12 – 18 months plan) 20 6.2 Long Term Plan (3 – 5 year plan) 20 6.3 Marketing Action Plan 21 7 Budget 25 8 Conclusion 27 9 List Of References 28 10 Appendicies 29 Problem Statement 1.1 Introduction Den Gamle Skole was founded by Laura B. Ricks in 1992; she did not think that the Danish toy market was offering toys of a sufficient quality. She started out only buying toys for her own children but realised that there was a market for British toys in Denmark. Today it is a business...
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...Bachelor Thesis Interaction Design THE CUSTOMER BUYING PROCESS - a tediuos affair or a pleasant experience? u 2010-06-10 u Department of Culture and Society u K3, School of Communication and Art Design: Matilda Marcelius Marie Neubauer matilda@marcelius.se +46-704-35 05 34 marie@neubauer.se +46-707-53 09 93 Tutor: Michael Svedemar Contents 1. Abstract ....................................................................................................................3 2. Introduction .............................................................................................................3 2.1 Problem statement .........................................................................................5 2.2 Focus and constraints ....................................................................................5 3. Design context and related theories.......................................................................6 3.1 How interaction design and service design integrates ...................................6 3.2 Service design ...............................................................................................7 3.3 The importance of the built environment – the servicescape ........................9 3.4 Spatial design ..............................................................................................10 4. Methods..................................................................................................................13 4.1 Literature...
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...Bachelor Thesis Interaction Design THE CUSTOMER BUYING PROCESS - a tediuos affair or a pleasant experience? u 2010-06-10 u Department of Culture and Society u K3, School of Communication and Art Design: Matilda Marcelius Marie Neubauer matilda@marcelius.se marie@neubauer.se +46-704-35 05 34 +46-707-53 09 93 Tutor: Michael Svedemar Contents 1. Abstract ....................................................................................................................3 2. Introduction..............................................................................................................3 2.1 Problem statement..........................................................................................5 2.2 Focus and constraints.....................................................................................5 3. Design context and related theories.......................................................................6 . 3.1 How interaction design and service design integrates. ..................................6 . 3.2 Service design ...............................................................................................7 3.3 The importance of the built environment – the servicescape.........................9 3.4 Spatial design ..............................................................................................10 4. Methods....................................................
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...Burangi submitted to fulfill the requirements for an MSc in Information Systems particularly the International Marketing Module. The report reflects the success of IKEA in developing its brand internationally. The purpose of this assignment is to give one analysis of the marketing context in which IKEA operates and critical evaluation of its operational options. We would like to thank Fontys and Roehapmton that give us such a good opportunity to work as a group, and we also would like to thank our tutor, Mr. Wijckmans for his instruction. Executive Summary The report gives a detailed account of the IKEA brand development over the years using marketing principles. The first chapter looks at IKEA, the background, evolvement and current position. Chapter two looks at branding in terms of the marketing mix that is product, price, promotion and place. This is the followed by chapter three which looks how IKEA handles cultural differences when conducting business across the world. Chapter four explores the various methods used by IKEA when conducting market research world wide. Chapter five gives an account of the market entry strategy used by IKEA to introduce their brand in new areas. The next chapter then delves into the details of market segmentation, positioning and targeting strategies used by IKEA. The report concludes with a look into the future world trends and their effects on the...
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...| Volume 1 Bachelor of Commerce Best Business Research Papers Bachelor of Commerce Best Business Research Papers Volume 1, September 2008 Table of Contents NOTE FROM THE EDITOR Anthony Goerzen 1 THE DUTCH BUSINESS SYSTEM IN TRANSITION: AN APPLICATION OF WHITLEY’S BUSINESS SYSTEMS APPROACH FOR THE USE OF EXECUTIVES, MANAGERS, AND POLICY MAKERS Eric Brewis 2 SWENSEN’S MUST ENGAGE IN MARKET PENETRATION AND DIVERSIFICATION TO RETAIN ITS LEADING POSITION IN THE THAILAND MARKET Kailee Douglas 13 DISNEYLAND PARIS: EUROPEANIZING A RESORT Amanda Louie 22 IKEA: A STRATEGY FOR SUCCESS Garret Luu 31 COMPULSORY LICENSING IN THAILAND Simran Mann 38 CHANGING POVERTY AND INEQUITY THROUGH BUSINESS Matthew R. Tanner 47 SWEDEN IS A NESTING GROUND FOR YOUNG START-UP ENTREPRENEURS James Whyte 56 Note from the Editor In business today, “globalization” is a key concept with the firms across nations intertwined as never before. With overseas customers, suppliers, operations, and competitors, today’s managers need an international outlook. Therefore, the mission of the University of Victoria’s Bachelor of Commerce program is to give students the essential knowledge and skills they need to be effective and successful managers in the global economy. At UVic Business, we ensure that our students develop an international perspective through direct experience with issues in management and organization. In fact, UVic Business...
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...1.0 Definition 1.0.1 Social Media Social media is a platform where people can communicate and share things such as videos, music, news, advertisements, and information (Burke, 2013). People are often unable to differentiate social media, mass media, and social networks. Basically, according to Burke (2013), social network is a place for users to communicate and have discussion, while mass media is a place for exchanging and uploading media such as video, music, news, advertisement, and information, social media is the combination of social network and mass media. The typical example for social network, mass media, and social media are Skype, online newspapers, and Facebook respectively. We notice that three of them are different in terms of their functions where Skype connects people around the world, online newspapers shares information and news, and Facebook can carry both of the social network and mass media’s functions at the same time. It allows people to conduct their interaction such as exchanging information, sharing ideas, holding discussions, forwarding and watching video and music in a virtual environment. In short, social media nowadays are getting more diversified. It just like the example of radio and camera, stepping to a new era of technology has let us witness the combination of them into a smart phone. 1.0.2 Marketing Strategy Marketing strategy is a technique to increase an organization’s sales and their competitive advantage. It can be developed in short-term...
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...Chapter 3 Augmented Reality – Where it Started from and Where It’s Going Veronika Szucs, Silvia Paxian and Cecília Sik Lanyi Additional information is available at the end of the chapter http://dx.doi.org/10.5772/59796 1. Introduction This study provides an overview of augmented reality (Augmented Reality, AR) and some of its important and popular areas of application. Augmented reality technology integrates 3D virtual objects into a real 3D environment, in real time. This book chapter presents the areas of everyday life where AR can be used (including, but not limited to): medical informatics, production repair, visualization, route planning, entertainment and military applications, marketing tasks and education. The basic characteristics of AR systems, the need for compro‐ mise in their applicability, and optical and video mixing approaches are presented in the chapter. The chapter introduces the two main areas of sensor errors, which are considered as a basic problem during the design of efficient augmented reality systems. We summarize how the current devices are able to solve these problems. The expected future direction of AR technology developments and the areas where further research is needed are simultaneously introduced. 1.1. Aims In the course of preparing the study, the actualities of augmented reality technologies have been reviewed. Questions associated with differing scope of application, design and imple‐ mentation problems of augmented...
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...Key operations questions Chapter 1 Operations management ➤ What is operations management? ➤ Why is operations management important in all types of organization? ➤ What is the input–transformation– output process? ➤ What is the process hierarchy? ➤ How do operations processes have different characteristics? ➤ What are the activities of operations management? Chapter 2 Operations performance ➤ Why is operations performance important in any organization? ➤ How does the operations function incorporate all stakeholders’ objectives? ➤ What does top management expect from the operations function? ➤ What are the performance objectives of operations and what are the internal and external benefits which derive from excelling in each of them? ➤ How do operations performance objectives trade off against each other? Chapter 3 Operations strategy ➤ What is strategy and what is operations strategy? ➤ What is the difference between a ‘top-down’ and a ‘bottom-up’ view of operations strategy? ➤ What is the difference between a ‘market requirements’ and an ‘operations resources’ view of operations strategy? ➤ How can an operations strategy be put together? Part One INTRODUCTION This part of the book introduces the idea of the operations function in different types of organization. It identifies the common set of objectives to which operations managers aspire in order to serve their customers, and it explains how operations can have an important strategic role. Chapter 1 Operations...
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...Product and Brand Management (MGMT-MKTG-638) - Revision Exercises - 1. “Customer analysis & competitor analysis are necessary for developing product strategy”. Comment. 2. Explain the steps involved in developing a new product with suitable examples. . Idea Generation The development of a product will start with the concept. The rest of the process will ensure that ideas are tested for their viability, so in the beginning all ideas are good ideas (To a certain extent!) Ideas can, and will come, from many different directions. The best place to start is with a SWOT analysis, (Strengths, Weaknesses, Opportunities and Threats), which incorporates current market trends. This can be used to analyse your company’s position and find a direction that is in line with your business strategy. In addition to this business-centred activity, are methods that focus on the customer’s needs and wants. This could be: •Under-taking market research •Listening to suggestions from your target audience – including feedback on your current products’ strengths and weaknesses. •Encouraging suggestions from employees and partners •Looking at your competitor’s successes and failures #2. Idea Screening This step is crucial to ensure that unsuitable ideas, for whatever reason, are rejected as soon as possible. Ideas need to be considered objectively, ideally by a group or committee. Specific screening criteria need to be set for this stage, looking at ROI, affordability...
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