SEGi UNIVERSITY

INTERNATIONAL MARKETING
MANAGEMENT
Tutor:
Students:

Dr. Joanne Hee
Abdulaziz Yahya (SCM 018303)
Alisher ...
IKEA
Host Country –
KAZAKHSTAN
INTERNATIONALIZATIO
N
• COMPETITION
• REGIONAL ECONOMIC & POLITICAL INTEGRATION
(e.g. NAFTA, EU)
• IMPROVEMENTS IN TRANSPO...
MARKET-ENTRY
STRATEGY
JOINT VENTURE
– STRATEGIC ALLIANCE
– DIRECT ENTRY
– MARKETING & PRODUCTION (EXTENSIVE CAPITAL)
IKEA
COMPANY PROFILE
• Established in 1943 by Ingvar Kamprad & Elmtaryd
Agunnaryd
• World’s most successful mass-market re...
IKEA’s PRODUCT
RANGE
• WIDE IN FUNCTION
Customer can find anything to furnish home (e.g.
from plants to toys and whole kit...
HOME FURNITURE

Source: http://www.ikea.com/us/en/catalog/allproducts/
RATIONALE FOR HOME
FURNITURE
• Compactness
Products of IKEA are perfect size calculation that
allows furniture to blend wi...
RATIONALE (cont.)
• Security
All IKEA products have required certificates & made
of environmentally friendly materials
• R...
Host Country Market

• The furniture market in Kazakhstan is still
undersized in terms of turnover, number of
domestic and...
KAZAKHSTAN

• The scope of the market is from 1.5 to 2.5 bln.
USD
• The lion's share or about 60-70% falls at home
furnitu...
•

Source:

http://fa.tpo.ir/UserFiles/File/Furniture%20market%20in%20Kazakhstan.pdf
EXISTING DEMAND
DEMAND cont.
RATIONALES FOR
HOME FURNITURE
• GROWING DEMAND due to population growth
• CONSTRUCTION BOOM
• INCREASING EXPOSABLE INCOME
...
POLITICAL
• Kazakhstan is a Unitary Republic, President – Head
of State
• Political stability, Neutral policy
• From 1991 ...
ECONOMICAL

• Kazakhstan posted an annual average GDP growth rate
of 8.3% from 2001—2010, with GDP in 2010 reaching
US$148...
SOCIO-CULTURAL
•
•
•
•

Population: 16.4 million people as of 1 January 2011
Young country
Immigration policy (oralman)
Th...
LEGAL
• Kazakhstan is a member of ISO 26000
• Settlements between non-residents (legal entities
and citizens) and Kazakhst...
CONCLUSION
LIST OF REFERENCES
• IKEA Group Yearly Summary 2012
• http://www.ikea.com/us/en/catalog/allproducts
• Kazakhstan Today htt...
IKEA in Kazakhstan (International Marketing)
IKEA in Kazakhstan (International Marketing)
IKEA in Kazakhstan (International Marketing)
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IKEA in Kazakhstan (International Marketing)

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IKEA in Kazakhstan (International Marketing)

  1. 1. SEGi UNIVERSITY INTERNATIONAL MARKETING MANAGEMENT Tutor: Students: Dr. Joanne Hee Abdulaziz Yahya (SCM 018303) Alisher Mamedov (SCM 021951) Azamat Ospanov (SCM 019903) Md. Siduzzaman (SCM 020912)
  2. 2. IKEA Host Country – KAZAKHSTAN
  3. 3. INTERNATIONALIZATIO N • COMPETITION • REGIONAL ECONOMIC & POLITICAL INTEGRATION (e.g. NAFTA, EU) • IMPROVEMENTS IN TRANSPORTATION & TECHNOLOGY (e.g. lower cost due to satellite, justin-time technology) • CONSUMER NEEDS (uniform consume segments emerging worldwide)
  4. 4. MARKET-ENTRY STRATEGY JOINT VENTURE – STRATEGIC ALLIANCE – DIRECT ENTRY – MARKETING & PRODUCTION (EXTENSIVE CAPITAL)
  5. 5. IKEA COMPANY PROFILE • Established in 1943 by Ingvar Kamprad & Elmtaryd Agunnaryd • World’s most successful mass-market retailer selling company • Total sales = €27 bln in 2012 • 230 stores in 33 countries • Hosting 410 mln shoppers • 1,500 suppliers in more than 50 countries Source: IKEA Group Yearly Summary 2012
  6. 6. IKEA’s PRODUCT RANGE • WIDE IN FUNCTION Customer can find anything to furnish home (e.g. from plants to toys and whole kitchen) • STYLE The romantic at heart will find just as much as the minimalist • QUALITY Making products at low prices
  7. 7. HOME FURNITURE Source: http://www.ikea.com/us/en/catalog/allproducts/
  8. 8. RATIONALE FOR HOME FURNITURE • Compactness Products of IKEA are perfect size calculation that allows furniture to blend with any type of apartments • Design IKEA has an attractive original design and several color options • Convenience The organization of the child’s working space with additional elements & plenty of pleasant things
  9. 9. RATIONALE (cont.) • Security All IKEA products have required certificates & made of environmentally friendly materials • Reliability Durable construction ensure a long life! • Uniqueness IKEA products have a profile that reflects the IKEA way of thinking. It is simple and straightforward. IKEA products are hard-wearing and easy to live with.
  10. 10. Host Country Market • The furniture market in Kazakhstan is still undersized in terms of turnover, number of domestic and foreign enterprises. • 60% of the furniture is imported from EU and CIS. In the CIS Russia is the largest trading partner followed by Belarus. • In Europe primarily Italian producers have successfully entered the market, but also Spanish, German and French producers are active.
  11. 11. KAZAKHSTAN • The scope of the market is from 1.5 to 2.5 bln. USD • The lion's share or about 60-70% falls at home furniture • The average growth rate in the furniture market is up to 15% annually since 2006 Source: Kazakhstan Today http ://www.kt.kz/eng/economy/
  12. 12. • Source: http://fa.tpo.ir/UserFiles/File/Furniture%20market%20in%20Kazakhstan.pdf
  13. 13. EXISTING DEMAND
  14. 14. DEMAND cont.
  15. 15. RATIONALES FOR HOME FURNITURE • GROWING DEMAND due to population growth • CONSTRUCTION BOOM • INCREASING EXPOSABLE INCOME • MOVING IN TOGETHER OR GETTING MARRIED
  16. 16. POLITICAL • Kazakhstan is a Unitary Republic, President – Head of State • Political stability, Neutral policy • From 1991 attracted $180 bln. of investments • Member of more than 10 international organizations (eg. Customs Union: Population 173,302,000 peoples) • 47th of “Ease of doing business index” Source: THE WORLD BANK PUBLICATION DOING BUSINESS 2012
  17. 17. ECONOMICAL • Kazakhstan posted an annual average GDP growth rate of 8.3% from 2001—2010, with GDP in 2010 reaching US$148.1 billion (US$9,070 per capita) • TOP 10 most improved countries (7,5%) • Free trade practices promotion • Foreign direct investment encouragement • Small and medium-sized businesses support • Aims to become a country with a high-income economy (US$15,000 GDP per capita by the end of 2015) Source: Doing business in Kazakhstan, An introductory guide to tax and legal issues, http://www.invest.gov.kz/upload/docs/
  18. 18. SOCIO-CULTURAL • • • • Population: 16.4 million people as of 1 January 2011 Young country Immigration policy (oralman) The concept of demographic policy and strengthening the family
  19. 19. LEGAL • Kazakhstan is a member of ISO 26000 • Settlements between non-residents (legal entities and citizens) and Kazakhstani residents may generally be performed in any currency • The penalties for not having licenses can be significant • Corporate Income Tax is at general rate of 20% • For non-residents tax is reduced to 15% due to tax treaties, also have SEZs (0%) to attract FDI
  20. 20. CONCLUSION
  21. 21. LIST OF REFERENCES • IKEA Group Yearly Summary 2012 • http://www.ikea.com/us/en/catalog/allproducts • Kazakhstan Today http://www.kt.kz/eng/economy/ • http://fa.tpo.ir/UserFiles/File/Furniture%20market%20in %20Kazakhstan.pdf • THE WORLD BANK PUBLICATION DOING BUSINESS 2012 • Doing business in Kazakhstan, An introductory guide to tax and legal issues, http://www.invest.gov.kz/upload/docs/

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