...A Study on TANGS’ Marketing Strategies in Influencing Buyer Behaviour Theory to the Marketing of Place Introduction C.K. Tang Limited (TANGS) is one of Singapore’s icons of retail, providing consumers in Singapore with the necessities of modern life - from fashion and lifestyle goods, to home products and electrical appliances, through its department stores and boutique shops since 1932. From 1988 to 1995, the store created trendsetting initiatives in Singapore like the first in-store magazines, speciality stores within a store, and its own house brands. It also broke retail boundaries by introducing Tangs Studio – a niche upscale store during the decadent 1990s – to cater to a new breed of well-travelled upwardly mobile individuals or yuppies. Tangs also won several window and store display competitions organised by the Singapore Tourist Promotion Board and Singapore Retailer’s Association. TANGS has come to be regarded as a Singaporean shopping institution along the main shopping-belt of Orchard Road (The Business Times, 2012), along the lines of Harrods in London or Bloomingdales in New York. In late 2013, TANGS completed the internal façade of their 3-year transformation plan its flagship store on Orchard Road to keep up with the ever-changing consumer shopping habits of both locals and tourists like operating on Sundays and introducing marketing strategies to increase consumer choice. This report demonstrates the application of relevant behavioural...
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...Russia in 1991 - first store did not open until 2000. * Move to Russia seen as a long-term investments by IKEA’s management * All stores are fully owned ventures by IKEA II. IKEA’s entry strategy in Russia – Adaption or Standardisation? * The company made the Russian consumer buy its products as a necessity * Long-term vision gave the flexibility required from IKEA to “invent” a market gap that was to be filled by them. * Adapted to the market they entered, something that would make the company limit the distance from the pulse of the Russian reality. III. How did IKEA change its market entry strategy to enter an emerging market? * No special market research was carried out before setting up the first store – Market research in emerging markets only gives a snapshot of the current market situation; Market and consumer behaviour as well as market structures can change rapidly in emerging markets * Since IKEA considered Russia a long-term investment, relatively high losses in the first years were expected. However, IKEA was able to better understand the market during that time and define a long-term strategy. IV. What are the main challenges IKEA is facing in Russia? * Conclusions drawn from initial market research turned out to be very unreliable and difficult to assess. * Market structures and the behaviour of consumers in Russia...
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...standardized products strategy with universal assortment around the world was the key to IKEA's success. That is, it markets the same basic products in all of its stores; instead of tailoring furniture to regional tastes, it focuses on making furniture that is universally attractive (Rondcha, 2008). Some 90% of the product line is identical across more than two dozen countries. However, in order to adapt to certain countries such as America, IKEA needed to modify their concept whilst still maintaining their original formula. Modification was implemented as the European products conflicted with American tastes and preference (Tracy, 1986). Conflicts arose when it was found that most Americans keep a sofa longer than a car and change their spouse as often as their dining room table (about 1.5 times in a lifetime). America didn’t get IKEA; it was too unswervingly Swedish. (Lewis, 2005). Kamprad believes the word ‘impossible’ is absent from IKEA’s dictionary (Altomare, et al. 1999) and by sticking to this belief, adaption was made to America’s furniture. This included widening the chest drawers by an inch or two which led to an immediate increase in sales by 40%. Despite Kamprad’s belief, it is impossible that IKEA will succeed everywhere it establishes. In 1974, IKEA expanded into Japan as their first Asian market. It had to pull out in 1986 due to differences between culture, lifestyle and behaviour being too great. Another factor was IKEA putting a Swedish ‘accent’ on another country’s...
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... | | Chapter 2 – Background | 3 | | | | | Chapter 3 - Appraisal | 4 | | | | | Chapter 4 – Analysis | 9 | | | | | Chapter 5 – Conclusion | 14 | | | | | Bibliography | 15 | Executive summary This report examines the corporate culture of the global furniture leader IKEA and discusses the link between Ikea’s culture and its performance. The cultural web is used as a device for breaking up the complexity of organisational culture and for demonstrating that Ikea enjoys a strong and consistent culture. The report identifies synergy between Ikea’s culture and strategy, arguing that culture has given the organisation competitive advantage. Furthermore it points to the complex set of factors influencing performance, and how Ikea’s culture is one of several components in its success-formula. 1.0 Introduction Organisational culture is built on the assumptions and beliefs that construct purpose, guidelines and collectivism. In effect strategy reflects the organisational culture in the sense that it represents the outcome of the ‘taken-for granted’ assumptions, behaviours and routines of the organisation (Johnson et. al., 2005). Ikea is a market leader in home furnishing, enjoying success on a global scale. As much...
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...stylish but inexpensive Scandinavian furniture targeted at low to mid income families. In 1956, IKEA adopted the concept of self-assembly by opening a self-service open warehouse. Internationalisation began in 1973 and now IKEA is operational in 22 countries with 178 stores, having over 70,000 staff under employment. IKEA is able to maintain low-cost without sacrificing quality and offers great design to keep customers coming back. Instead of having its own manufacturing facilities, IKEA subcontracts manufacturers. and also engages customers as pro-sumers, where they both consume and partake in the production process. Finally, IKEA has one of the most efficient internal production system. In addition, to maintain the cost leadership, IKEA’s suppliers are located in low cost nations with close proximity to raw materials and reliable access to distribution channels. Also, IKEA utilises economies of scale and competitive advantages as they look for suppliers that produce highly standardised products intended for the global market. IKEA is able to keep customers coming back with its effective marketing shown in its eye catching catalogues, good service and strong in stock position as the most popular styles and design trends are continuously anticipated. With these three aspects, IKEA is able to attract its customers, keep the customers coming back and keep the customers satisfied. While there have been successes, there also have been barriers. One barrier is the differences is...
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...facing modern-day retailers—online versus high street distribution and the viability of physical outlets. Here we examine the importance of ‘place’ in the marketing mix, covering aspects such as channel strategy, store design objectives, and the critical role that outlets play in communicating with customers. Shopping behaviour has undergone a dramatic evolution over the past decade with many retailers struggling to keep up with the rapidly evolving, contemporary consumer (IBM 2011). Future success will go to those best able to adapt their delivery modes and communication strategies to this modern shopper. The case study looks at the Swedish furniture giant IKEA, which is not only surviving difficult economic times but is rapidly expanding its retail presence in the Asia-Pacific (APAC) region. A cornerstone of IKEA’s success has been an innovative multichannel distribution and communication strategy. n 28 strategic Communication Trends in retail distribution and shopping habits A poor global economic climate has had a massive impact upon consumer spending, resulting in mounting retailer insolvency. Australia is no exception, with downward-spiralling consumer confidence being further eroded by rising interest rates and a looming carbon tax. High street retailing with its significant operating costs has witnessed numerous casualties that include Clive Peeters (electrical), Colorado (clothing) and Just Jeans, as well as REDgroup Retail, the parent company of leading bookstore...
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...The current issue and full text archive of this journal is available at www.emeraldinsight.com/1756-669X.htm A 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...
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...Journal of Retailing and Consumer Services 18 (2011) 183–193 Contents lists available at ScienceDirect Journal of Retailing and Consumer Services journal homepage: www.elsevier.com/locate/jretconser Standardized marketing strategies in retailing? IKEA’s marketing strategies in Sweden, the UK and China ˚ Steve Burt a, Ulf Johansson b,n, Asa Thelander c a University of Stirling, Institute for Retail Studies, Stirling Management School, 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...
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...1.0 – INTRODUCTION 1.1 –INTRODUCTION The chapter provides a radius of the background of study at hand into deducing the problems or issues that encompass it. Next to that, will be a statement of the aim as well as the objectives of this study in order to comprehend the matter in more depth as well as a succinct overview of the following chapters. 1.2 – BACKGROUND OF STUDY Human civilization is dependent upon signs and systems of signs, and the human sign is inseparable from the functioning-if indeed mentality is not to be identified with such functioning (Morris, 1938). A brand instead, is a promise of satisfaction. It is a sign as well nevertheless, a metaphor operating as an unwritten contract between a manufacturer and a consumer, a seller and a buyer, a performer and an audience, an environment and those who inhabit it, and event and those who experience it (Healey, 2008). Even so, too often companies think of the brand experience in silos: as an identity, logo, website, advertisement, and so on. To be successful, a brand had to be experienced whole – emotionally and tangibly – telling a consistent and engaging story at every tower point along the way (Astorino, 2011). A successful brand positively and clearly distinguishes a company’s products and services from those of its competitors. Statistics confirm that higher quality brands gain greater market share and profitability than their inferior competition (MacDonald, 2012). As the economy of late capitalism shifted from...
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...Standardized marketing strategies in retailing? IKEA’s marketing strategies in China, Sweden and the UK Steve Burt University of Stirling Department of Marketing, Institute for Retail Studies STIRLING FK9 4LA, 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...
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...International Businesses Strategy of IKEA –Activities of the multinational furniture retailer Seminar paper in “Strategy of International Business” University of Economics Bratislava 2008/2009 Katarzyna Gawor Sona Halasova Friedemann Polzin Table of Contents IKEA – global strategy............................................................................................................2 History................................................................................................................................2 IKEA corporate structure...................................................................................................3 The IKEA Group............................................................................................................3 Inter IKEA Systems B.V. ..............................................................................................5 IKEA Stores...................................................................................................................5 Business strategy...............................................................................................................5 Mission...........................................................................................................................5 Target group..................................................................................................................6 Organizational structure........................................................
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...MKTG 208 Case Study: IKEA invades America By: Juan Galang SID: 43055745 1. Situation Analysis Strengths (Internal) * Strong worldwide brand image * Value furniture (clever designs with a cheap price) * Consisted of strong core policies (electricity& product efficiency) * Hard to imitate their Scandinavian design * Managers able to determine what consumers wanted through their Price/Product Matrix * Engaged with customers (self service, had everything they needed from pencils to measuring tapes) * Provides amenities to customers (childcare, restaurants and big carparks) * Cost effective (use higher grade of wood in the outside but lower on the inside) * Form, function and affordability * Had good relationships with 1800 suppliers worldwide * Innovative designs (using a mixture of designers for products) * Niche furniture retailer * Strong market research applied (From $600 M - $1.2 B) * Flat packaging (more space for inventory) Weaknesses (Internal) * Furniture not built for longevity * When first entered the market had bad design * America was a different market that they needed to adapt too * Neither high nor low end furniture * Inconvenience for customer to build product * Different aspect compared to American standards (had different measurements and sizes to what the market was used too upon entry) * Ranked 14th in leading U.S. furniture retailers sales Opportunities (External) ...
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...This article was downloaded by: [Hong Kong Polytechnic University] On: 3 June 2010 Access details: Access Details: [subscription number 738313287] Publisher Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 3741 Mortimer Street, London W1T 3JH, UK The International Review of Retail, Distribution and Consumer Research Publication details, including instructions for authors and subscription information: http://www.informaworld.com/smpp/title~content=t713735234 Knowledge and knowledge sharing in retail internationalization: IKEA's entry into Russia Anna Jonssona; Ulf Elga a Department of Business Administration, School of Economics and Management, Lund University, Sweden To cite this Article Jonsson, Anna and Elg, Ulf(2006) 'Knowledge and knowledge sharing in retail internationalization: IKEA's entry into Russia', The International Review of Retail, Distribution and Consumer Research, 16: 2, 239 — 256 To link to this Article: DOI: 10.1080/09593960600572316 URL: http://dx.doi.org/10.1080/09593960600572316 PLEASE SCROLL DOWN FOR ARTICLE Full terms and conditions of use: http://www.informaworld.com/terms-and-conditions-of-access.pdf This article may be used for research, teaching and private study purposes. Any substantial or systematic reproduction, re-distribution, re-selling, loan or sub-licensing, systematic supply or distribution in any form to anyone is expressly forbidden. The publisher does...
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...has grown into the world's largest furniture retailer with 279 stores in 36 countries today. Specialising in furniture and home decoration, IKEA has an annual turnover of 19.8 billion euros (source: IKEA, www.ikea.com, accessed 25/03/2012). The IKEA catalogue is printed in 52 editions with 25 languages, with a global distribution in excess of 160 million copies. IKEA sees the Far Asia as an emerging market still in its infant stage. Its number of retail outlets in Malaysia, Singapore, Taiwan, Beijing, Shanghai and Hong Kong are very small and comprises a mere 3% of the company's total sales. These stores were expected to be more successful in the near future. IKEA's imminent strategic expansion into this region exemplified its ambitions to dominate this emerging market. This Case Study illustrates how IKEA's ventures into China and Japan are laden with unique marketing challenges which it had not encountered before in other international markets. Read the attached case (Case Study: "IKEA: A Long March to the Far East" - Source: Oxford University Press) and answer the following questions; 1. Based on your analysis, what are the opportunities and challenges for IKEA in their market operations in (a) China; and (b) Japan? 2. Describe the market entry strategies that IKEA adopt in China and Japan respectively. 3. What are IKEA product, pricing, marketing communication and distribution decisions in the two Asian markets? To what extent these...
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...ASSIGNMENT SUBMISSION FORM This sheet must be submitted with your assignment. Failure to complete, sign and submit this form will result in a mark of ‘0’ for the assignment. Student Name Mounir TIZI Student ID P1028079 Assessor Name Mr Deji Sotunde Course Title Module Name Date of Submission Systems and Operations Management. 27/01/2015 Plagiarism is presenting somebody else’s work as your own. It includes: copying information directly from the Web or books without referencing the material; submitting joint coursework as an individual effort; copying another student’s coursework; stealing coursework from another student and submitting it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the procedures set down by the College. Please see your student handbook for further details of what is / isn’t plagiarism. By submitting this form and signing below, I declare that: I am the author of this assignment and that any assistance I received in its preparation is fully disclosed and acknowledged in this assignment I also certify that this assignment was prepared by me specifically for this course I certify that I have taken all reasonable precautions to make sure that my work has not been copied by other students I confirm that I have understood the College’s regulations on plagiarism I confirm that research resources are fully acknowledged Signature: Mounir...
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