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Etude sur Ikea et sa stratégie à l'international
Etude sur Ikea et sa stratégie à l'international
Economical factors

Created in 1943 by Ingvar Kamprad

Turn over : 21,5 billion €uros (+1,4% in 2008)

16,3% market share in France

Staff : 128.000 persons

267 stores in 25 countries

Visitors in stores: 590 millions

561 millions/year visitors on the website Ikea.fr
Graphs
PESTEL
  IKEA
Economical factors

Better purchasing power
of emerging countries

Pricing different
according to the country

Low price strategy in
general
Technological & Legal

Technological factors
Creation and innovation of new products
Better stock management


Legal factors
Strengthening of international importation regulation
Norms
Environmental & Social

Environmental factors
Create products with a minimum of impact on the environment
IWAY
Partnerships with many environmental organisations


Social factors
Decent work condition to its suppliers
IWAY
Partneships with many social organisations
Structure & Organisation
          IKEA
Structure and organization
            IKEA
In charge of the development of the assortment of IKEA (10000 products)

IKEA has 43 offices of purchase distributed in 33 countries


Suppliers distribute in 55 countries
Structure and organization
          Swedwood
 The industrial group of IKEA is specialized in the production of
furniture and wooden components

                 32 factories in 9 countries


Swedwood is specialized first and foremost in the sectors
where IKEA has difficulties

The IKEA’s Group is supported by 9 departments
The watchword at IKEA

Decentralization

                  To have economies of scale

                  To maintain low prices


    But certain fields of expertise keys are centralized
               (IKEA IT, IKEA Food Services…)
Almost 300 stores in more than 35 countries
The concept ?
« IKEA offers a wide range of well-designed, functional
home furnishing products at prices so low that as many
          people as possible can afford them »
                                          IKEA corporate web page




       Standardised approach
     To keep the prices low and attractive
   To create one single image everywhere
       The target group ? « Many people »
6 marketing aspects
  OF IKEA STRATEGY
(1) PRODUCT RANGE
Supposed to be the same everywhere


 10 000 Items
         Very small adaptations

The Swedish product names are also used in
       store and in the catalogue
(2) THE STORE
    Store format standardised with 3 different sizes



      Two levels
Same layout everywhere :
 signage, displays, design and
             colors




  Goal                the same shopping experience
(3) CATALOGUE

70% of the annual
  marketing budget
     17 languages
     22 countries


 Standardised layout
(4) PRICES
         To deliver high value at low price

The price is relative and compared to the
marketing in each country.



Results ? Different prices on the same product in
different countries
(5) IKEA Family
   Loyalty program including a magazine,
  special assortement of products in store

 The content is different between countries
and the most of this promotion doesn’t exist
(6) ADVERTISING
  Responsability of the local store manager




          New York, USA              Copenhague, Danemark


The strategic work with the press differs between countries
Standardised
                            approach to the
                                world
(6)           Advertising
(5)           IKEA Family        Local
(4)              Prices
(3)         The catalogue

(2)           The Store                  Global

(1)   Products and products range
Standardised approach to the world




High-level of standardisation with
       some adjustments
Adaptation or Standardisation ?
         CHINA EXAMPLE
CHINA IKEA
“IKEA” is a well-known brand. Chinese buy less when
they visit. They visit more often than everywhere : 33
per cent come every month. The food has been changed : a wok,
and a lid added with a special set of teacups. New specific
model of sets and special balcony because many Chinese live
in flats. The image of IKEA is not low prices, in China it is the
opposite : western retailer and the store is for higher-middle
class. Chinese IKEA store are sourced in China to reduce
costs. Store are close to midtown. Home delivery
service is common in China and often used. Chinese
standards. Focused on culture-specific aspects.
CHINA IKEA
Comparing IKEA China to
  IKEA elsewhere ?
Websites from all over the world




France                    Switzerland


              Italy
Websites from all over the world

    China                USA
Establishment
There are limits to how far a
business can go in standardisation
High level of strandardisation is
possible on markets similar to the
     domestic. With different
     conditions, standardised
 concepts must be changed in
        order to be attractive.
IN CONCLUSION ?
  IKEA Concept is a standardised
  one but the strategies and the marketing
activities to realise the standardised concept
    may have to be adjusted to local
          marketing conditions.

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Etude sur Ikea et sa stratégie à l'international

  • 3. Economical factors Created in 1943 by Ingvar Kamprad Turn over : 21,5 billion €uros (+1,4% in 2008) 16,3% market share in France Staff : 128.000 persons 267 stores in 25 countries Visitors in stores: 590 millions 561 millions/year visitors on the website Ikea.fr
  • 6. Economical factors Better purchasing power of emerging countries Pricing different according to the country Low price strategy in general
  • 7. Technological & Legal Technological factors Creation and innovation of new products Better stock management Legal factors Strengthening of international importation regulation Norms
  • 8. Environmental & Social Environmental factors Create products with a minimum of impact on the environment IWAY Partnerships with many environmental organisations Social factors Decent work condition to its suppliers IWAY Partneships with many social organisations
  • 10. Structure and organization IKEA In charge of the development of the assortment of IKEA (10000 products) IKEA has 43 offices of purchase distributed in 33 countries Suppliers distribute in 55 countries
  • 11. Structure and organization Swedwood The industrial group of IKEA is specialized in the production of furniture and wooden components 32 factories in 9 countries Swedwood is specialized first and foremost in the sectors where IKEA has difficulties The IKEA’s Group is supported by 9 departments
  • 12. The watchword at IKEA Decentralization To have economies of scale To maintain low prices But certain fields of expertise keys are centralized (IKEA IT, IKEA Food Services…)
  • 13. Almost 300 stores in more than 35 countries
  • 14. The concept ? « IKEA offers a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible can afford them » IKEA corporate web page Standardised approach To keep the prices low and attractive To create one single image everywhere The target group ? « Many people »
  • 15. 6 marketing aspects OF IKEA STRATEGY
  • 16. (1) PRODUCT RANGE Supposed to be the same everywhere 10 000 Items Very small adaptations The Swedish product names are also used in store and in the catalogue
  • 17. (2) THE STORE Store format standardised with 3 different sizes Two levels Same layout everywhere : signage, displays, design and colors Goal the same shopping experience
  • 18. (3) CATALOGUE 70% of the annual marketing budget 17 languages 22 countries Standardised layout
  • 19. (4) PRICES To deliver high value at low price The price is relative and compared to the marketing in each country. Results ? Different prices on the same product in different countries
  • 20. (5) IKEA Family Loyalty program including a magazine, special assortement of products in store The content is different between countries and the most of this promotion doesn’t exist
  • 21. (6) ADVERTISING Responsability of the local store manager New York, USA Copenhague, Danemark The strategic work with the press differs between countries
  • 22. Standardised approach to the world (6) Advertising (5) IKEA Family Local (4) Prices (3) The catalogue (2) The Store Global (1) Products and products range
  • 23. Standardised approach to the world High-level of standardisation with some adjustments
  • 24. Adaptation or Standardisation ? CHINA EXAMPLE
  • 25. CHINA IKEA “IKEA” is a well-known brand. Chinese buy less when they visit. They visit more often than everywhere : 33 per cent come every month. The food has been changed : a wok, and a lid added with a special set of teacups. New specific model of sets and special balcony because many Chinese live in flats. The image of IKEA is not low prices, in China it is the opposite : western retailer and the store is for higher-middle class. Chinese IKEA store are sourced in China to reduce costs. Store are close to midtown. Home delivery service is common in China and often used. Chinese standards. Focused on culture-specific aspects.
  • 27. Comparing IKEA China to IKEA elsewhere ?
  • 28. Websites from all over the world France Switzerland Italy
  • 29. Websites from all over the world China USA
  • 31. There are limits to how far a business can go in standardisation
  • 32. High level of strandardisation is possible on markets similar to the domestic. With different conditions, standardised concepts must be changed in order to be attractive.
  • 33. IN CONCLUSION ? IKEA Concept is a standardised one but the strategies and the marketing activities to realise the standardised concept may have to be adjusted to local marketing conditions.