...IKEA - PRODUCT LAUNCH IN INDIA (BANGALORE) Project Submission - 1 Group-7 1. Jai Prasanna Sudhan S.P (1211024) 2. Karthikeyan T (1211029) 3. Kalayappan S (1211103) 4. Ravishankar N (1211134) 5. Karthik P (1211347) Management Decision Problem: To evaluate the market opportunity for IKEA in Bangalore, India Marketing Research Problem: 1. To assess the opportunities for furniture industry in Indian market 2. To identify the segments and target market relevant to the product line of IKEA 3. To determine the branding and positioning strategy for these target segments 4. To evaluate the sustainable competitive advantage of IKEA in Indian market 5. To evaluate the effectiveness of the IKEA retail concept in Indian market Components of MR problem: S.No. | Marketing Research Problem | Components of the problem | 1. | To assess the opportunities for furniture industry in Indian market | i) How attractive is Indian market to invest in furniture industry? ii) Evaluation of Indian organized and unorganized players and their unique features in the market | 2. | To identify the segments and target market relevant to the product line of IKEA | i) What is the customer profile in Bangalore w.r.t age, income, marital status, occupation and socio economic classification? ii) Who are the potential customers for the IKEA products? iii) What are the behavioral characteristics of the targeted customers? | 3. | To determine...
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...IKEA Case Study Strategic Marketing Plan Review Table of Content 1.0 Executive Summary Pg. 3 2.0 IKEA Company’s Proflie Pg. 4 3.0 Segmentation Base on Applied by IKEA Pg. 5 3.1 GEOGRAPHIC SEGMENTATION 3.1.1 TARGET MARKET SEGMENTS Pg. 5 3.2. DEMOGRAPHIC SEGMENTATION 3.2.1 TARGET MARKET SEGMENTS: Pg. 6 3.3 PSYCHOGRAPHIC SEGMENTATION Pg. 6 3.4 BEHAVIORAL SEGMENTATION 3.4.1 TARGET MARKET SEGMENTS Pg. 7 3.5 IKEA’S POSITIONING STRATEGIES Ph. 7 4.0 Customer Value Provided by IKEA Pg. 8 4.1 Strategy of Best product values offered by IKEA Pg. 8 & 9 4.2 Best Price value strategies offered by IKEA Pg. 9 4.3 Best Service Value Strategies offered by IKEA Pg. 10 5.0 MARKETING PROPOSAL PROGRAM Pg. 11 5.1 PRODUCT STRATEGIES Pg. 11 5.2 PRICE STRATEGIES • The Long-Term Aspiration of IKEA • Reducing a lower price in several ways: • The Short-term Aspiration of IKEA Pg. 12 & 13 5.3 PROMOTIONAL STRATEGIES Pg. 13, 14, 15 & 16 5.4 PLACE STRATEGIES Pg. 16, 17, 18, 19 & 20 6.0 Conclusion Pg. 21 7.0 Referencing Pg. 22 1.0 EXECUTIVE SUMMARY The selected company for discussion is IKEA group where company is renowned for their D.I.Y concept which makes them the sovereign furniture retailer in the industry. In this report, the first scope of the discussion will be accentuating on the segmentations and target market segments on how IKEA is based according to their company...
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...ANALYSIS OF IKEA ENTERING INTO INDIAN MARKET INTRODUCTION VISION: The IKEA’s vision globally is to create a better everyday life for the many. MISSION:- Ikea's mission is to offer a wide range of home furnishing items of good design and function, excellent quality and durability, at prices so low that the majority of people can afford to buy them (IKEA 1994). IKEA was founded in 1943 by Ingvar Kamprad and has turned into an international furniture retailer, which specializes in stylish but inexpensive Scandinavian designed furniture. IKEA is however owned by a foundation by the Kamprad family. Since 1943, Ikea has expanded its operations steadily in many countries. IKEA originally started by selling picture frames, wallets, pens, watches, table runners, jewelry, and nylon stockings etc. Furniture was first added in the year 1948 and IKEA started manufacturing its own furniture since 1955, providing furniture that could be self-assembled at relatively low cost. Since then, the name has been synonymous with self-assembled furniture. In August 2008 the IKEA group had 253 stores in 24 countries. IKEA sales reached 21.2 billion Euros in 2008 showing an increase of 7%. The biggest sales countries are Germany, USA, France, UK and Sweden. it has also opened its stores in India. Swedish company IKEA to invest $600 million in India. | | IKEA carries a range...
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...International Marketing Review Emerald Article: Strategic consequences of retail acquisition: IKEA and Habitat Gary Warnaby Article information: To cite this document: Gary Warnaby, (1999),"Strategic consequences of retail acquisition: IKEA and Habitat", International Marketing Review, Vol. 16 Iss: 4 pp. 406 - 417 Permanent link to this document: http://dx.doi.org/10.1108/02651339910282027 Downloaded on: 25-01-2013 References: This document contains references to 17 other documents Citations: This document has been cited by 3 other documents To copy this document: permissions@emeraldinsight.com This document has been downloaded 5839 times since 2005. * Users who downloaded this Article also downloaded: * Gary Warnaby, (1999),"Strategic consequences of retail acquisition: IKEA and Habitat", International Marketing Review, Vol. 16 Iss: 4 pp. 406 - 417 http://dx.doi.org/10.1108/02651339910282027 Gary Warnaby, (1999),"Strategic consequences of retail acquisition: IKEA and Habitat", International Marketing Review, Vol. 16 Iss: 4 pp. 406 - 417 http://dx.doi.org/10.1108/02651339910282027 Gary Warnaby, (1999),"Strategic consequences of retail acquisition: IKEA and Habitat", International Marketing Review, Vol. 16 Iss: 4 pp. 406 - 417 http://dx.doi.org/10.1108/02651339910282027 Access to this document was granted through an Emerald subscription provided by LIMKOKWING UNIVERSITY OF CREATIVE TECHNOL For Authors: If you would like to write for this, or any other Emerald publication...
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...FOR IMMEDIATE RELEASE Countdown to the 2013 IKEA Catalogue! Petaling Jaya, 16 August 2012 – Let your imagination run wild with the infinite possibilities of making your precious moments at home come true as we count down to the launch of the much awaited 2013 IKEA Catalogue. In anticipation of the arrival of the new catalogue on 30th August, drop by the IKEA store between 21st to 29th August to visit the larger than life IKEA Countdown Room display that will showcase different room settings every day to inspire you to recreate your special moments at home with your family or loved ones. Experience the magic moments of the IKEA Countdown Room Between 21st to 29th August, the IKEA Countdown Room will feature different room settings of a home every day. From the living room and bedroom, to the kid’s room and kitchen, be inspired to complete your moments at home with IKEA. There will be a host of inspiring and engaging activities and games for the family and friends with attractive prizes up for grabs throughout all of the nine days. Loads of IKEA furniture can be won daily in the IKEA Malaysia Facebook contest from 21st to 29th August as well. Celebrity chef Anis Nabilah, host of TV cooking programmes Icip-Icip and Sesedap, will also be on hand to conduct a cookie baking demonstration. For entertainment, up and coming acoustic guitar player Amir Jahari will be serenading visitors with his mix of soulful and sweet tunes. On 21st August, popular comedian Suhaimi Yusof will host...
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...Introduction Foreign Market Entry Modes The decision of how to enter a foreign market can have a significant impact on the results. Expansion into foreign markets can be achieved via the following modes: ▪ Exporting (Direct/ Indirect Exporting) ▪ Licensing/ Franchising ▪ Contract Manufacturing ▪ Management contract ▪ Assembly Operation ▪ Fully Owned Manufacturing Facility ▪ Joint Venture ▪ Mergers & Acquisitions ▪ Strategic Alliance ▪ Third Country Location ▪ Counter Trade ▪ Direct investments Heading : Mahindras Take a Giant Leap with Insurance Arm Deal By : Satish John, Mumbai. Date : 21st Septermber 2012 News Paper : Economic Times Us-based LeapFrog’s purchase of 15% in a key Mahindra & Mahindra Group subsidiary hasgiven the auto to tourism group several fold returns on its original investment and the third such high return investment for its investors in less than a decade. LeapFrog, the world’s largest insurance investor for low-income customers on Thursday said ti would buy a 15% stake in Mahindra Insurance Brokers for Rs. 80.41 Crore. This firm which is subsidiary of the much bigger and better know M&M Financial services was started in 2004 for a measly Rs. 50 Lakh.The LeapFrong purchase values the firm at Rs. 520 crore. LeapFrog specfialises in investing in companies that cater to rural markets.”We feel very proud that we invested Rs. 50 Lakh and today...
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...COMPANY PROFILE Ikea Group REFERENCE CODE: 6878C795-4BCB-4C85-A319-6F33C508FD80 PUBLICATION DATE: 14 Aug 2014 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED. Ikea Group TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts...............................................................................................................3 SWOT Analysis.....................................................................................................4 Ikea Group © MarketLine Page 2 Ikea Group Company Overview COMPANY OVERVIEW Ikea Group (Ikea or 'the group') is an international home products retailer. It sells furniture, accessories, and bathroom and kitchen items. Ingka Holding BV, a wholly-owned company by Stichting Ingka Foundation, is the parent company for the Ikea group of companies. The foundation is owned by the Kamprad family. As of August 31, 2013, the group had operations in 43 countries across Europe, North America, Asia and Australia. Ikea is headquartered in Delft, the Netherlands, and employed 135,000 people as of August 31, 2013. The group recorded revenues of E28,506 million (approximately $37,280.1 million) during the financial year ended August 2013 (FY2013), an increase of 3.2% over FY2012. The operating profit of the group was E4,011 million (approximately...
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...Export IKEA furniture products to Egypt Instructor: Bonnie Heineman Wolfe MBA 617: Import Export Management Pinarath Sinluksanathip Munkh Orgil Zorigoo Funmi Ogunwale Nasser Madini Samuel Sandeep Trang Huynh December 3, 2012 CONTENT I. Executive Summary II. Introduction III. Product background analysis IV. Egypt Overview V. Barrier to trade of Egypt VI. Market Analysis VII. Marketing Effort VIII. Logistic and Supply Chain analysis 1. Logistic Strength in Egypt: 2. Egypt Facts from Logistics Perspective 3. Creating a Supply Chain and Logistics Strategy a. Determining the Store Location and Capacity b. Transportation and Storage c. Logistic partnerships d. Logistic Enterprise and Measurement 4. Risk Management Plan for Supply Chain and Logistics IX. IKEA Distribution Process to Egypt X. General document requirement for exporting I. Executive Summary IKEA is a home furnishing company with a fully integrated supply chain, including its own industrial groups – Swedwood and Swedspan. The IKEA Group, directly or indirectly, also owns retail centers, always with an IKEA store as unique anchor tenant. The IKEA Group works in four basic areas: range strategy & product development, production, supply and retail. The parent company of the IKEA Group of Companies, INGKA Holding B.V. is owned by Stichting INGKA Foundation in the Netherlands (The case of IKEA...
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...demographics, electronic media and the growth in free newspapers. Also over 70 per cent of their revenue was from the sale of advertising space rather than the newspaper itself. Indeed there seemed to be so many threats that one group decided that ‘the end of the world is nigh!’ In the afternoon they turned their attention to the future strategy of the organization. This quickly became a series of proposals about how they could improve the coverage of news and sport and the physical presentation of the newspaper itself. One of the younger members of the team suggested that they might consider a more fundamental question: ‘. . . whether we are really in the news business or if we are an advertising medium?’ He was met with astonished silence from his colleagues. So, in the morning, these managers were quite able to undertake a ‘rational’ analysis which raised questions about the traditional role of a newspaper. But, in the same afternoon, when it came to what they should do, the paradigm ‘newspapers are about news’ drove their thinking. IKEA In the mid-2000s the Swedish company IKEA was the leader in the European ‘flat-pack’ householder furniture business. It had a presence in some 30 countries and was famous for its good-quality products marketed at low prices. This had been achieved by the vision of the founder, Ingvar Kamprad, and an almost obsessive attention to every item that would add to cost – so much so that cost reduction became ingrained in the company culture. Kampard...
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...The current issue and full text archive of this journal is available at http://www.emerald-library.com International Marketing Review 16,4/5 406 Strategic consequences of retail acquisition: IKEA and Habitat Department of Retailing and Marketing, The Manchester Metropolitan University, Manchester, UK Keywords Retailing, Acquisitions, Globalization, Market segmentation Abstract Takes an historical perspective, considering the events leading to the sale of Habitat by the Storehouse group to the Swedish furniture retailer IKEA in October 1992. Focuses on the strategic issues involved in the acquisition of an international retailer by a retail organisation that is truly global in its operation. Describes the development of both retailers (with particular emphasis on their international development) and a description of the terms of the sale. Areas for further discussion and analysis arising from the case can include: the future development of Habitat within the global strategic framework laid down by IKEA; analysis of the motives of Storehouse in disposing of Habitat, including the future development of a smaller Storehouse; and issues relating to market segmentation and positioning, with specific reference to retail brands. Gary Warnaby International Marketing Review, Vol. 16 No. 4/5, 1999, pp. 406-416. # MCB University Press, 0265-1335 Habitat ± early development The first Habitat store was opened in Fulham by Terence Conran in 1964. By meeting a demand for more...
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...It is crucially important to stakeholders that organizations are well led and know what they want to be famous for. At its core is having strong organizational vision and direction, and having the confidence to make decisions to follow through. The vision statement is a crucial part of a company’s reputation. The fact is, even the greatest mission and vision statements fall flat unless they are shared effectively. Solid research finds that people see you as a better leader if you are able to communicate your organization’s vision effectively (Chappelow, 2012). Reference: Chappelow, G. (2012). 5 Rules for making Your Vision Stick. Leadership The failure of connecting ethics to the core of a business enterprise and to the decision making process from the leaders and managerial staff, is dysfunctional and an unhealthy approach to business. The benefits of ethical and standardized social responsibility an enterprise incorporates are intrinsic to an organization’s image and can have an impact on employee morale (Wicks & Freeman, 2010). Reference: Wicks, A., & Freeman, E. (2010). Business ethics. Upper Saddle River, NJ: Pearson Education, Inc. COMPLETE 1 Since Sigma is a small firm with limited resources, it must be selective in choosing customers so as to ensure the company can meet their needs effectively. How would you suggest that Sigma balance the need for continued growth with its desire to serve only those customers that it can satisfy completely? Sigma Marketing...
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...2004 YOUNGME MOON IKEA Invades America In 2002, the IKEA Group was the world’s top furniture retailer. With sales approaching $12 billion, IKEA operated 154 stores in 22 countries and serviced 286 million customers a year. (See Exhibits 1 through 4.) In the United States, IKEA had 14 stores, with plans to open as many as nine more in 2003. There were a number of factors that distinguished IKEA from other furniture retailers—its stores were strictly self-service and featured such amenities as playrooms for children and Swedish cafés, and all of its furniture came unassembled (customers were expected to put together the furniture on their own)—yet there was no question about the company’s success; when a new store opened, it was not unusual for thousands of shoppers to line up on the first day. Company Background IKEA was founded in 1943 when 17-year-old Ingvar Kamprad decided to start a local catalog company using some money his father had given him.1 Initially, the company sold basic household goods at discount prices; in 1947, however, Kamprad began selling home furnishings. Six years later, Kamprad opened his first furniture showroom, and two years after that, IKEA began designing its own low-priced furniture. In 1958, IKEA opened its inaugural store, in Almhult, Sweden; at 6,700 square meters, it was the largest furniture display in Scandinavia at the time. By the time IKEA opened its flagship store in Stockholm in 1965, IKEA had become the favored ...
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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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...Case Report Marketing Case 8: IKEA’s Global Strategy: Furnishing the World I.Situation Analysis IKEA is a privately-owned international furniture manufacturer known for its low prices and unique style. The company’s vision is to create a better everyday life for its customers by offering a great selection of well-designed, practical home furnishings. Since IKEA has chosen this sort of affordable and distinctive marketing strategy, the company has been very successful in its expansion throughout the world. IKEA has been successful with a relatively standardized product and product line in a business with strong cultural influence. This is because: The founder formulated IKEA’s mission which states that IKEA offers wide variety of home furnishings of good design and function at prices so low that the majority of people can afford them. Such wide variety could fit a wide variety of cultures and tastes. The case studies also states that the assortment of goods are universally accepted. The principal target market of IKEA is similar across all countries and regions and is composed of people who are young, highly educated, liberal in their cultural values,white collar workers, and not especially concerned with status symbols.Most people in the IKEA target market are liberal in their tastes,preferences and cultural norms hence making them easy to accept and appreciate IKEA’s standardized products. II.Problems Found in Situation Analysis ...
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...Strategies Three value strategies have been emphasized by IKEA which includes best product, best price and best service. Ikea customers do more than purchase Ikea products, they identify with the culture and authenticity which Ikea has attached to its products to attract more customers. The Management of IKEA said, “It’s not what you say about your Ikea furnishings that matters, it's what the Ikea furnishings say about you”. (Kerin, Hartley & Rudelius, 2010). 4.1 Best Product Value Strategies IKEA have become popular over the years as cited by Michmann and Mazze (2001) due to their product’s value, in terms of quality, style, affordability, functionality and durability,. Their products are well designed, modern, functional, and durable, of high quality, competitive prices and IKEA have a wide range of products and styles. Ikea is well known for bringing low-cost products to consumers, its mission statement focuses on improving customers' lives by bringing them good quality at good value. IKEA’s mission statement is expressed in the very structure of the store which pairs its warehouse with its sales floors. The products are displayed in a Spartan, albeit attractive, manner, and a sense of economy permeates the store. The products themselves are streamlined, uncomplicated and tailored so that the strong point is function over fashion, giving consumers a more fresh idea of acquiring which ever they need. IKEA ensures quality, style and functionality by having their own...
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