Ikea presentation final

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Ikea presentation final

  1. 1. IKEA – How to go International?
  2. 2. Ingvar Kamprad Elmtaryd Aggunaryd • “If retailers are to succeed in an overseas market, they must not only master the traditional skills of the market but also the cultural and economic traditions of the host country” -Ingvar Kamprad,
  3. 3. IKEA at a glance.. • Currently the world’s largest furniture retailer • Pioneered the flat-pack design furniture at affordable prices • Has 1220 suppliers in 55 countries • Was founded in 1943 by 17-yearo ld Ingvar Kamprad in Sweden
  4. 4. IKEA’S global reach
  5. 5. IKEA’S global reach… Top 5 Sale countries Germany 16% USA 11% France 10% UK 7% Italy 7% Top 5 purchasing countries China 20% Poland 18% Italy 8% Germany 6% Sweden 5%
  6. 6. Current Performance 0.0 0.0 0.2 1.2 4.4 13.6 17.7 20.7 22.5 22.7 1954 1964 1974 1984 1994 2004 2006 2007 2008 2009 Turnover (in Euro Billions) 1 2 9 52 114 201 237 260 285 301 1954 1964 1974 1984 1994 2004 2006 2007 2008 2009 Stores
  7. 7. Sweden • Business Strategy • Complete Shopping experience • Selling Innovation • Creating a Brand
  8. 8. Marketing Mix • Low Prices • Price -Material- Design-Make Price • Standardized Products • Do it Yourself • Scandinavian Design • Flat Packaging • Lifestyle Products • ‘Love your Home’ • Lounge and See • Large price tags • Large stores -out of city • Middle Class +Students • Local International Product Promotion Place
  9. 9. Rest of Europe • Global Strategy • Issues faced – Cultural diversity • Imposing IKEAN culture – Environmental issues • Adaptations
  10. 10. Internationalization Europe • Marketing Satellite • Pure Global Strategy • Country Offices Rest of the World • Rationalized Manufacturing • Mix of Global and Local • Fully owned Subsidiaries
  11. 11. North America • Initial Shocks • Sizes, Softness • Sourcing, Currency movements • Free Deliveries • Sales Reps • Easy Payment Options • Adaptations
  12. 12. Asia  Problems  Psychic distance  Degree of adaptation to retail offer  Pricing strategy  Strong domestic competition  Corruption in government ranks in Russia  Adaptations  Understanding local needs  Creation of supplier relationship  Store appearance and pricing strategy
  13. 13. Thank you – Group 8 Amitav Pattnaik Balaji B Ramamurthy Chetan Goenka Jemi Varughese Johnson Chacko

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