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  • as a sweidsh person, i am very disappointed at the way you have displayed our company's and people to be.
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  1. 1. IKEA’s marketing problems By Goi & Sai
  2. 2. • IKEA is a privately held international home furnishings retailer.• It is a Dutch-registered company, with offices in Netherlands, Sweden and Belgium.• As of August 2010, there are IKEA stores in more IKEA was founded in 1943 by than 38 countries, with 280 Ingvar Kamprad in Sweden stores in 26 countries belonging to the IKEA Group. All IKEA stores are operated under franchise from Inter IKEA Systems B.V
  3. 3. IKEA’s Vision and Business Idea IKEA’s vision is "To create a better everyday life for the many people.” IKEA’s idea is "To offer a wide range of well designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.”
  4. 4. The IKEA Marketing Mix IKEA has a long tradition in marketing communication focusing primarily on printed media which has proven its values and success to the company over the years. Other media now being used to an increasing degree include TV, radio, and internet based communication.
  5. 5.  the IKEA catalogue is the main marketing tool. It is produced in 38 different editions, in 17 languages for 28 countries. 110 million catalogues were circulated last year - the,
  6. 6. Ikea apologises for service failure on Apple devices | PR & public relations news | PRWeek 22/ 05/ 12 4:29 PM"We sincerely apologise to any Ikea apologises for service failure on Apple devicescustomers who have Matthew Chapman, marketingmagazine.co.uk, Thursday, 01 March 2012, 11:02am, Be the first to commentexperienced technical Ikea has been forced to issue an apology to irate customers after orders made using Apple devices failed to process without any notification.difficulties when shoppingonline using an iPad, iPhone oriTouch device”"We always make every effort Ikea: Happy Inside campaign by Motherto ensure that our customers The retailers helpline has been flooded by complaints after online transactions made through iPad, iPod Touch and iPhone devices appeared to be carried out successfully, but were not.have an easy online shopping Customers have been calling the helpline after not receiving a delivery date for their order, only to be told that orders had never been processed.experience and as soon we Operators have subsequently told such customers that they have to order again on a different device or buy the product in-store.became aware of this issue, we Ikea has now put notifications on its ecommerce site to inform customers of the problem with ordering via Apple devices, when they add products to their trolley and check out.have been and will continue to Julie Knowles, Ikea UK ecommerce customer services manager, said: "We sincerely apologise to any customers who have experienced technical difficulties when shopping online using an iPad, iPhone or iTouch device.work towards a resolution." http:/ / www.prweek.com / uk/ news/ 1119933/ Ikea- apologises- service- failure- Apple- devices/ ?DCMP= ILC- SEARCH Page 1 of 2
  7. 7. Ikea on the Japanese Market During Ikea’s expansion on the international market Japan was the first country in Asia that Ikea considered to enter in 1970’s. The differences between culture, lifestyle, and behavior made Ikea face the failure. In 1974, when IKEA entered Japan, it was not just selling products, but also philosophy: this is how things are done in Sweden. Pulled out in 1986 IKEA re-entered Japanese Market in 2001
  8. 8. How did IKEA avoid the mistake? Product First round Second round Offer all the available IKEA adapted product lines as other Japanese living markets condition – big family live together in a small house
  9. 9. How did IKEA avoid the mistake? Place First round Second round IKEA thought the Japanese Japanese people are more Consumers used to shop at attracted to mega stores, small stores, so they have IKEA introduced a mega their store built small to store with 10,000 product adapt to the local life style lines supported by 2,200 car parking spaces, a child-care area and one of the Tokyo’s largest restaurants.
  10. 10. How did IKEA avoid the mistake? PackagingFirst round Second roundIntroducing the flat-packs Adapt to customers tastesand DIY concept but and habits by providingJapanese customers were home delivery andnot ready and wiling to do assembly for an extraso charge.
  11. 11. How did IKEA avoid the mistake? PromotionFirst round Second roundStandardization of Finding out that Japaneseshowrooms’ format and homes are mostly small,display regardless of IKEA comprised 70 mini-Japanese real life housing showrooms on the secondconditions. floor of the store with the same size of typical Japanese room.
  12. 12. Future Challenges for the IKEAGroup• The complexity of the logistics system will increase.• It will be more difficult to respond to national needs and cultural sensitivity issues.• Franchisees may demand more control over operations.• With all these challenges emerging, it will be very difficult to maintain a global organizational structure. The best approach to meet these challenges is to find the proper balance between country level autonomy and
  13. 13. Reference Chapman, M. (2012). Ikea apologies for service failure on Apple devices. Retrieved May 20, 2012, from http://www.prweek.com/uk/news/1119933/Ikea-apologises- service-failure-Apple-devices/?DCMP=ILC-SEARCH Inter IKEA Systems B. V. (2012). IKEA. Retrieved May, 20, 2012, from http://www.ikea.com/gb/en/ Chopra, R. (2009). IKEA Case Study. Retrieved May, 20, 2012, from http://www.slideshare.net/riddhimachopra/ikea- case-study Capell, K. (2006). Ikea’s New Plan for Japan. Retrieved May, 20, 2012, from http://www.businessweek.com/globalbiz/content/apr2006/gb20 060426_821825.htm