This document provides an overview and case study of IKEA's operations and intellectual property protection in Indonesia. It discusses IKEA's global concept and strategy, its entry into the Indonesian market in 2014, and a legal dispute over trademark registration that resulted in the deletion of IKEA's 2010 trademark registration. The conclusion emphasizes the importance of securing trademarks in every country of operation and understanding local laws. It suggests IKEA Indonesia should re-examine its concept and focus on emphasizing values like lower prices, good quality, eco-friendliness and design consultation that best provide added value for Indonesian customers.

1. IKEA Indonesia Case Study :
Commercial Development & Protection of
Intellectual Property Right:
PRESENTED BY :
Adi (1506772643)
Adian (1506699150)
Agus (1506772441)
Alvin (1506699195)
Moko (1506699636)

2. Chapter Overview
Opportunity Identification &
Selection
Concept Generation
Concept Evaluation
Development
Launch
Basic New Product Process
Strategic Launch
Planning
Strategic Launch
Implementation

3. Chapter Overview
Strategic Launch Planning
Strategic Launch Decision
Tactical Launch Decision
Overall directions, incl. Target Market
Marketing Mix (IMC & 4P)
MARKETING
PLAN
TARGET MARKET
STP
TRADEMARK
UNIQUE VALUE

4. Chapter Overview
Strategic Launch Implementation
Product Life Cycle
Communication Program
ATAR
“How to deliver the new product’s value to the
target consumer”

5. IKEA at a Glance
Multinational Company which sells
Ready to Assemble Furniture
Largest Furniture Retailer
Founded in Sweden (1943) by
Ingvar Kamprad Until March 16, IKEA has
389 stores in 48 countries

6. IKEA at a Glance
Story behind the name…
IKEA name combines the initials of IKEA founder, Ingvar Kamprad,
(IK) with the first letters from the names of the farm and village
where he grew up - Elmtaryd and Agunnaryd (EA)
Vision…
“To create a better everyday life for the many people”

7. IKEA’s Concept
IKEA is known for its modern architectural designs for
various types of home appliances & furniture

8. IKEA’s Concept
IKEA’s interior design is often associated with
eco-friendly simplicity: For People & Planet
Sustainable Cotton & LED Lighting

9. IKEA’s Concept
Together we save money by democratic design process:
We do our part, you do your part
“Quality product at low prices”

10. IKEA’s Concept
Good at cost control, operational details, & continuous
development & innovation

11. IKEA’s Concept
IKEA as a family recreational site
Showroom
Food Market
Warehouse
Smaland

12. IKEA Indonesia
• First opened in Oct 15th 2014 at Alam Sutera, Tangerang
• 35.000m2 in size
• Franchise owned by PT HERO SUPERMARKET, Tbk
• Adapt same layout with other IKEA (Showroom, Market Hall, Food
Market, & Smaland)

13. Strategic Platform Decision

14. Current Situation
1. Macro-environment Situation
• 4th world’s most populous country by approx. 260 million
• GDP was worth US$936.955 billion in 2016
• Large number of young and middle-aged : economy booster
median age : 28,2 yo and working age : 66% of population
• Indonesian middle class : 17.3 million households have a
potential purchasing power drive demand and spending in
the country
• Property growth in Jabodetabek
(O : 12,2% ; A : 12,4% ; L : 11,6%)
• Shopping habits (a form of entertainment activity)
• Trend: shift to prefer modern stores than traditional market

15. 2. Micro-environment Situation
• Furnitures and furnishing sales value in Indonesia was
estimated at US$1.7 billion in 2013
• Rapid development of property market
• Competition : IKEA – Informa – ACE Hardware – Courts
Current Situation

16. SWOT Analysis
Strengths
- Powerful brand image
- Diversified product
- Supply chain integration
- One stop shopping
Weaknesses
- DIY may be unappealing to Indonesian
- Only one location
- Ads don’t appeal enough to target
market (young people)
Opportunities
- Emerging markets
- Growing online sales and Internet
presence
- Expand into many more cities
Threats
- Direct competition from Ace, Informa,
Courts, Best Pongs
- Difficult economic condition
- Changing customer needs
SWOT

17. Porter’s Five Forces Model
Rivalry among
existing
competitors
HIGH
Threat of new
entrants
LOW
Bargaining
power of
buyers
STRONG
Threat of
substitutes
LOW
Bargaining
power of
suppliers
WEAK

18. Strategies of IKEA Indonesia
1. Location
• Standard of IKEA store must be in the main highways or toll
roads, where it is easy for customers to access
• IKEA needs a spacious place to build the giant store
• Alam Sutera has been predicted to be a commercial center
outside Jakarta.
2. Aggressiveness
Less aggressive to open another stores in Indonesia.
3. Experience
• Self-service and In-store experience
• Do-It-Yourself concept (democratic design process)

19. The Target Market Decision

20. Chapter Overview
Target Market Decision
• Markets are so complex that one product cannot close to meeting all needs and desires
• Segmenting a market:
End-Use
Geographic &
Demographic
Behavioral &
Psychographic
Benefit Segmentation
Original concept
generation
Method of
operations
Concept testing or
product use testing
Parallel
development,
keeping two or
three target
alternatives in
development

21. IKEA’s Segmenting & Targeting
Segmenting
• Middle class customers
• Lovers of modern furniture & accessories
• Colorful & novel product
Targeting
• Aiming to appeal people of all ages, sexes, geographic,
locations, all who have one thing in common: likes
simplicity, functionality and quality
• Single who have high income or married and have
average income level couples

22. Chapter Overview
Diffusion of Innovations
• Five factors that measure how a new product will diffuse into the marketplace:
Relative Advantage: how superior is the innovation
Compatibility: Does it fit with the current product usage and end-user activity?
Complexity: Will frustration or confusion arise in understanding the innovation’s basic idea
Divisibility: How easily can trial portions of the product be purchased and used
Communicability: How easy is it for the user to see the benefits of using the product

23. Chapter Overview
Positioning
• The best to communicate the products to customer needs and or competitive pressure:
• Attributes (feature, function, or benefit)
• Surrogates

24. IKEA Unique Value
Shopping Experience
• Display every products in rooms
• Customer move along a path through a “maze”

25. IKEA Unique Value
Shopping Experience
• Self-services

26. IKEA Unique Value
Shopping Experience
• Swedish Restaurant & child play area

27. IKEA Unique Value
Shopping Experience
• “You don’t need a decorator, you can get a harmony in your flat just like that”

28. IKEA Unique Value
European product quality & design
• Focus on simplicity & functionality

29. IMPLEMENTATION OF THE STRATEGIC PLAN

30. Product Life Cycle & Product Adoption
THE LAUNCH CYCLE

31. The Launch Cycle

32. Awa – T- A - R
Awareness – Trial – Availability – Repeat

33. AWARENESS

34. Prelaunch and Preannouncement

35. Prelaunch and Preannouncement

36. Announcement, Beachhead & Early Growth

37. Story Telling Comp.
Catalogue Ad
Announcement, Beachhead & Early Growth

38. TRIAL

39. IKEA Catalog – Augmented Reality Vlogger Endorsement
TV – Sponsored Content Dedek gemes Vlog
Advertisement 1
TRIALTRIAL
Advertisement 2

40. TRIALTRIAL

41. AVAILABILITY
China, Poland, Italy, Sweden
1.600 Suppliers
389 stores in 48 countries
27 Distribution Center - 16 Countries

42. LEAN LAUNCH
• Just In Time
• No Over production
• No Over Processing
• Flexible
AVAILABILITY

43. REPEATREPEAT

44. REPEATREPEATREPEAT

45. REPEATREPEATREPEAT

46. REPEATREPEATREPEAT
14%
75,000 Customer / Mth
Customer Engagement
Award 2015

47. REPEATREPEATBRANDING MANAGEMENT

48. • A distinguishing word, name, or symbol used to
identify a product.
– Registering trademark is a must
– Benefit :
• Provide notice to everyone about our exclusive right
• Entitles us to sue in court for trademark infringement
• Established commercial right
• Established right for deposit registration with custom

49. • Assess the role or purpose of the brand. If the brand is to aid in
positioning, choose a meaningful brand name like DieHard.
• Possibility of extension to a line of products. If so, choose carefully so
that it is not a limitation in the future (Allegheny Airlines became US
Airways).
• Possibility of long-term position in market. A dramatic novelty name
usually doesn’t do as well if a long-term position in the market is
sought.
• Avoid an irritating or insulting name. Can especially be a problem
when entering foreign markets.
• Be careful of regional differences in language. An acceptable name
in some Spanish dialects may be offensive in others.
• Allocate enough time to brand selection. The brand name should not
be a last-minute rush job.
• Don’t choose the wrong comfort level. A provocative and
controversial brand name such as Yahoo! or Bluetooth may be a great
strategy,.
• Other pitfalls. Not identifying the key decision makers; people
involved in decision don’t understand brand naming; getting “stuck”
on a brand name early in the process; not hiring the best patent
attorney.
Source: Lee Schaeffer and Jim Twerdahl, “Giving Your Product the Right Name,” in A. Griffin and S. M. Somermeyer,
The PDMA Toolbook 3 for New Product Development, Wiley, 2007, Ch. 8.
REPEATREPEATChoosing Brand Name

50. High
Brand
Loyalty
Other Brand
Assets
More/Better
Brand
Associations
High
Perceived
Quality
High
Brand
Awareness
Reduced
marketing
costs
Increased
trade
leverage
Patents or
trademarks
Strong
channel
relationships
Creates
positive
image
Helps
customer
process
information
Supports
quality
positioning
Supports
higher-price
strategy
Easier to
make
brand
associations
Increased
liking and
familiarity
Provides value to customer:
Assists in customer information processing
Increases confidence in purchase
Increases satisfaction in product use
Provides value to firm:
Increases effectiveness of marketing programs
Increases customer loyalty and trade leverage
Facilitates brand extensions
Is a source of competitive advantage
Managing Brand Equity

51. Characteristic Examples
Delivers benefits desired by customers. Starbucks offers “coffee house experience,” not just
coffee beans, and monitors bean selection and
roasting to preserve quality.
Stays relevant. Gillette continuously invests in major product
improvements (MACH3), while using consistent
slogan “The best a man can get.”
Prices are based on value. P&G reduced operating costs and passed on savings
as “everyday low pricing,” thus growing margins.
Well positioned relative to competitors. Saturn competes on excellent customer service,
Mercedes on product superiority. Visa stresses
being “everywhere you want to be.”
Is consistent. Michelob tried several different positionings and
campaigns between 1970 and 1995, while watching
sales slip.
The brand portfolio makes sense. The Gap has Gap, Banana Republic, and Old Navy
stores for different market segments; BMW has the
3-, 5-, and 7-series.
Marketing activities are coordinated. Coca-Cola uses ads, promotions, catalogs,
sponsorships, and interactive media.
What the brand means to customers is well
understood.
Bic couldn’t sell perfume in lighter-shaped bottles;
Gillette uses different brand names such as Oral-B
for toothbrushes to avoid this problem.
Is supported over the long run. Coors cut back promotional support in favor of
Coors Light and Zima, and lost about 50% of its
sales over a four-year period.
Sources of brand equity are monitored. Disney studies revealed that its characters were
becoming “overexposed” and sometimes used
inappropriately. They cut back on licensing and
other promotional activity as a result.
Brand Report Card

52. • Umbrella branding strategy
• Kellogg’s uses corporate name as part of all cereal
brands.
• Kraft uses Planters, Di Giorno, Maxwell House as
well as Kraft in its brand names.
• Individual branding strategy
• No P&G cleaning products carry the P&G name
(Tide, Bold, Mr. Clean, etc.).
• Clorox does not use the Clorox name on many of
its cleaning products (409, SOS) and does not use
it at all on non-cleaning products (Hidden Valley,
KC Masterpiece).
• Other Option for branding strategy
• ConAgra Foods used individual branding for years
on its products (Orville Redenbacher, Reddi-Wip,
Healthy Choice, Peter Pan) but now uses a
unifying logo (smiling plate with spoon) and slogan
(“Food You Love”).
Brand Equity & Branding Strategies

53. • Standardization: Gillette uses the same brand name
and positioning worldwide (“The Best A Man Can
Get”).
• Adaptation of Positioning: Canon sells the same
camera worldwide but uses the “So Advanced, It’s
Simple” positioning in North America.
• Adaptation of Brands: General Mills cereals are
marketed in Europe through a joint venture with
Nestle and are sold under the Nestle corporate name
there.
Global Branding & Positioning

54. • Consistent brand management: develop brand
manuals, set up workshops, train brand managers,
consider intangibles such as quality reputation.
• Frito-Lay runs a “market university” three times a
year to encourage sharing of successful practices
among managers worldwide.
Global Branding Leadership

55. Intan Khatulistiwa Esa Abadi
• Established in 1989
• Surabaya based local company
• Manufacture of rattan furniture and
accesosries
Ingvar Kamprad Elmtaryd Agunnaryd
Study Case IKEA di Indonesia

56. 2016
Today
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Swedish IKEA trademark registration
1/1/2006
Swedish IKEA trademark registration
1/1/2010
Indo IKEA brand registration
12/1/2013
Swedish IKEA open in Indonesia
6/30/2014
Swedish IKEA trademark for
class 20 & 21 in 2010 is
deleted
5/31/2015
Swedish IKEA trademark registration
6/1/2012
Swedish IKEA trademark registration in
2012 is approved
6/1/2014
1/1/2006 1/1/2009No business activity
1/1/2010 1/1/2013No business activity
1/1/2006
Indonesian Law : a trademark is not actively used for commercial purposes for 3 consecutive
years, it may be removed for trademark register
11/30/2013
12/1/2013
Indo IKEA raise case in Jakarta Commercial Court to
remove IKEA trademark registration in 2010 for
class 20 & 21
9/1/2014
9/2/2014
Swedish IKEA appeal to Supreme Court
5/31/2015
Brief DescriptionBrief Description

57. Lesson Learned
For Global Business, popularity and reputation does not
automatically give a right to own the trade mark. It is important
to secure trademark in every country that a business trade in
and to understand the laws which apply
Lesson Learned

58. Conclusion
IKEA has clear product & service differentiation vs
competition  Great advantage
IKEA Indonesia has tried to fully adapt IKEA Global Concept
• Good product quality & modern look
• Product Visualization in real layout
• Self Service & DIY Concept
• Complete Shopping Experience
• Lower price???
VALUE
CREATION
VALUE
CAPTURED

59. Conclusion
Just like this fancy food & drinks…
It will be interesting to try for the 1st time, but if the taste are
not good and not justify the price, will you come back?
BUSINESS SUSTAINABILITY IS VERY IMPORTANT
FOCUS ON WHAT CUSTOMER NEED THE MOST

60. Suggestion
IKEA Indonesia has to relook again for their concept &
value to be applied in Indonesia
Leave the concept which can’t be captured by customer &
focus on emphasizing the one best captured as an added
value
LOWER PRICE
GOOD QUALITY
ECO-FRIENDLY
DESIGN
CONSULTATION

61. THANK YOU