IKEA is a global furniture retailer known for its flat-pack furniture and affordable prices. It operates 330 stores across 40+ countries. The document discusses IKEA's history, vision, and marketing strategies. Key points:
- IKEA cuts costs through modular design, self-assembly by customers, and sourcing from long-term partners. This supports its overall cost leadership strategy.
- It develops complementary services like in-store restaurants and play areas to manage demand and make waiting more enjoyable.
- IKEA's global expansion strategy standardizes operations while customizing some elements for local cultures. It has grown rapidly by maintaining quality as it enters new markets.
Comparison of Marketing Mix of IKEA in Four CountriesFatima Arshad
Report Contains Marketing Mix of IKEA. In this report there is comparison of 4Ps of IKEA in Four Countries i.e Sweden, UK, China and India.
This report is result of the efforts of four people.
Comparison of Marketing Mix of IKEA in Four CountriesFatima Arshad
Report Contains Marketing Mix of IKEA. In this report there is comparison of 4Ps of IKEA in Four Countries i.e Sweden, UK, China and India.
This report is result of the efforts of four people.
This slide was prepared by me, for my term paper presentation on IKEA's operations management.
Slide comprises of a brief company overview with its mission & vision, global outlet locations, product lines, key aspects of operation functions, swot and conclusion.
All information were collected from secondary sources.
IKEA is a Swedish multinational group of companies that designs and sells ready-to-assemble furniture (such as beds, chairs and desks), appliances and home accessories. It has been the world's largest furniture retailer since at least 2008.
This paper discusses IKEA’s corporate and business level strategy and how these strategies are best supported by operations strategies of IKEA. It also discusses how IKEA differentiated itself from its competitors. Paper highlights various operational trade-offs done by company. Paper, on later stage focuses on how supply network contributed to achieving company’s objectives and strategies.
This slide was prepared by me, for my term paper presentation on IKEA's operations management.
Slide comprises of a brief company overview with its mission & vision, global outlet locations, product lines, key aspects of operation functions, swot and conclusion.
All information were collected from secondary sources.
IKEA is a Swedish multinational group of companies that designs and sells ready-to-assemble furniture (such as beds, chairs and desks), appliances and home accessories. It has been the world's largest furniture retailer since at least 2008.
This paper discusses IKEA’s corporate and business level strategy and how these strategies are best supported by operations strategies of IKEA. It also discusses how IKEA differentiated itself from its competitors. Paper highlights various operational trade-offs done by company. Paper, on later stage focuses on how supply network contributed to achieving company’s objectives and strategies.
A Project of end semester of our PGDM course in Retail Management of KFC,its market strategy,competitors and preference to it by the consumers in Patna
12 Marketing principes van Jeroen Hubert van IKEA uit de NIMA Marketing Execu...Energize
Exclusief voor beslissers in marketing van de NIMA Top Marketing Club, werd er op 15 mei jl. het Marketing Executive Diner georganiseerd.
Tijdens deze bijeenkomst sprak Jeroen Hubert, Global Marketing Communication Manager bij IKEA over zijn overtuigingen op leiderschap en marketing aan de hand van twaalf statements.
Jeroen Huberts was onder meer werkzaam bij Friesland Campina en PepsiCo, maar raakte vooral bekend als marketingmanager van Wehkamp.nl. Daarna trad hij aan bij IKEA als Country Marketing Manager IKEA Nederland waar hij met zijn team een inhaalslag heeft gemaakt op het vlak van digital, data analytics en e-commerce.
In deze presentatie vind je de 12 persoonlijke marketingprincipes die je ook zelf kunt toepassen in de executie van je strategie.
The Customer Journey applied to the buying and shopping experience at IKEA: from the wow moment to the how moment.
Step by step as an example how to make the customer journey an interesting and useful tool.
Q1: What was the source of IKEA’s Competetive advantage at that time?
Q.2 IKEA’s expansion into Europe
Q.3 IKEA’s strategy prior to its missteps in North America.
Q4. IKEA’s strategy towards its suppliers
The project analyses the importance of branding for Ikea and can help us to find out about IKEA's SWOT analysis and the STP process for Ikea. It also gives information on Ikea's Vision and Mission and Ikea's Marketing Mix, Ikea's Pestle Analysis, Ikea's Five Forces Model, Ikea's History and Ikea's Products and Services.
This case study is about a multinational company which sells ready to assemble furniture and home accessories. According to the economics records as at 2008 this is the world largest furniture retailer. (Forbes, 2013)
This report describes about the main strategies which IKEA use to approach to different markets with different consumers and with them IKEA has evolved into the largest furniture retailer in the world with approximately 300 stores in 38 countries and revenues topping $21.5 billion in 2009. Its top countries in terms of sales include Germany, 16 percent; United States, 11 percent; France, 10 percent; United Kingdom, 7 percent; and Italy, 7 percent. (Business week, 2005)
According to the final decision IKEA has made a different way of shop for furniture with the time develops and it has reach to the expectations of its customers according to their expectations.
Finally, in the conclusion of the report shows the final view of the researcher about the finding regarding to the IKEA strategies throughout the research and final judgment which make about the given case.
Come learn how YOU can Animate and Illuminate the World with Generative AI's Explosive Power. Come sit in the driver's seat and learn to harness this great technology.
Digital marketing is the art and science of promoting products or services using digital channels to reach and engage with potential customers. It encompasses a wide range of online tactics and strategies aimed at increasing brand visibility, driving website traffic, generating leads, and ultimately, converting those leads into customers.
https://nidmindia.com/
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...Valters Lauzums
E-commerce in 2024 is characterized by a dynamic blend of opportunities and significant challenges. Supply chain disruptions and inventory shortages are critical issues, leading to increased shipping delays and rising costs, which impact timely delivery and squeeze profit margins. Efficient logistics management is essential, yet it is often hampered by these external factors. Payment processing, while needing to ensure security and user convenience, grapples with preventing fraud and integrating diverse payment methods, adding another layer of complexity. Furthermore, fulfillment operations require a streamlined approach to handle volume spikes and maintain accuracy in order picking, packing, and shipping, all while meeting customers' heightened expectations for faster delivery times.
Amid these operational challenges, customer data has emerged as an important strategy. By focusing on personalization and enhancing customer experience from historical behavior, businesses can deliver improved website and brand experienced, better product recommendations, optimal promotions, and content to meet individual preferences. Better data analytics can also help in effectively creating marketing campaigns, improving customer retention, and driving product development and inventory management.
Innovative formats such as social commerce and live shopping are beginning to impact the digital commerce landscape, offering new ways to engage with customers and drive sales, and may provide opportunity for brands that have been priced out or seen a downturn with post-pandemic shopping behavior. Social commerce integrates shopping experiences directly into social media platforms, tapping into the massive user bases of these networks to increase reach and engagement. Live shopping, on the other hand, combines entertainment and real-time interaction, providing a dynamic platform for showcasing products and encouraging immediate purchases. These innovations not only enhance customer engagement but also provide valuable data for businesses to refine their strategies and deliver superior shopping experiences.
The e-commerce sector is evolving rapidly, and businesses that effectively manage operational challenges and implement innovative strategies are best positioned for long-term success.
Core Web Vitals SEO Workshop - improve your performance [pdf]Peter Mead
Core Web Vitals to improve your website performance for better SEO results with CWV.
CWV Topics include:
- Understanding the latest Core Web Vitals including the significance of LCP, INP and CLS + their impact on SEO
- Optimisation techniques from our experts on how to improve your CWV on platforms like WordPress and WP Engine
- The impact of user experience and SEO
Unleash the power of UK SEO with Brand Highlighters! Our guide delves into the unique search landscape of Britain, equipping you with targeted strategies to dominate UK search engine results. Discover local SEO tactics, keyword magic for UK audiences, and mobile optimization secrets. Get your website seen by the right people and propel your brand to the top of UK searches.
To learn more: https://brandhighlighters.co.uk/blog/top-seo-agencies-uk/
The session includes a brief history of the evolution of search before diving into the roles technology, content, and links play in developing a powerful SEO strategy in a world of Generative AI and social search. Discover how to optimize for TikTok searches, Google's Gemini, and Search Generative Experience while developing a powerful arsenal of tools and templates to help maximize the effectiveness of your SEO initiatives.
Key Takeaways:
Understand how search engines work
Be able to find out where your users search
Know what is required for each discipline of SEO
Feel confident creating an SEO Plan
Confidently measure SEO performance
Short video marketing has sweeped the nation and is the fastest way to build an online brand on social media in 2024. In this session you will learn:- What is short video marketing- Which platforms work best for your business- Content strategies that are on brand for your business- How to sell organically without paying for ads.
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
SMM Cheap - No. 1 SMM panel in the worldsmmpanel567
Boost your social media marketing with our SMM Panel services offering SMM Cheap services! Get cost-effective services for your business and increase followers, likes, and engagement across all social media platforms. Get affordable services perfect for businesses and influencers looking to increase their social proof. See how cheap SMM strategies can help improve your social media presence and be a pro at the social media game.
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CROVWO
In today’s era of AI, personalization is more than just a trend—it’s a fundamental strategy that unlocks numerous opportunities.
When done effectively, personalization builds trust, loyalty, and satisfaction among your users—key factors for business success. However, relying solely on AI capabilities isn’t enough. You need to anchor your approach in solid principles, understand your users’ context, and master the art of persuasion.
Join us as Sarjak Patel and Naitry Saggu from 3rd Eye Consulting unveil a transformative framework. This approach seamlessly integrates your unique context, consumer insights, and conversion goals, paving the way for unparalleled success in personalization.
The What, Why & How of 3D and AR in Digital CommercePushON Ltd
Vladimir Mulhem has over 20 years of experience in commercialising cutting edge creative technology across construction, marketing and retail.
Previously the founder and Tech and Innovation Director of Creative Content Works working with the likes of Next, John Lewis and JD Sport, he now helps retailers, brands and agencies solve challenges of applying the emerging technologies 3D, AR, VR and Gen AI to real-world problems.
In this webinar, Vladimir will be covering the following topics:
Applications of 3D and AR in Digital Commerce,
Benefits of 3D and AR,
Tools to create, manage and publish 3D and AR in Digital Commerce.
Search Engine Marketing - Competitor and Keyword researchETMARK ACADEMY
Over 2 Trillion searches are made per day in Google search, which means there are more than 2 Trillion visits happening across the websites of the world wide web.
People search various questions, phrases or words. But some words and phrases are searched
more often than others.
For example, the words, ‘running shoes’ are searched more often than ‘best road running
shoes for men’
These words or phrases which people use to search on Google are called Keywords.
Some keywords are searched more often than others. Number of times a keyword is searched
for in a month is called keyword volume.
Some keywords have more relevant results than others. For the phrase “running shoes” we
get more than 80M relevant results, whereas for “best road running shoes for men” we get
only 8.
The former keyword ‘running shoes’ has way more competition from popular websites to
new and small blogs, whereas the latter keyword doesn’t have that much competition. This
search competition for a keyword is called search difficulty of a keyword or keyword
difficulty.
In other words, if the keyword difficulty is ‘low’ or ‘easy’, there won’t be any competition
and if you target such keywords on your site, you can easily rank on the front page of Google.
Some keywords are searched for, just to know or to learn some information about something,
that’s their search intention. For example, “What shoe size should I choose?” or “How to pick
the right shoe size?”
These keywords which are searched just to know about stuff are called informational
keywords. Typically people who are searching this type of keywords are top of a Conversion
funnel.
Conversion funnel is the journey that search visitors go through on their way to an email
subscription or a premium subscription to the services you offer or a purchase of products
you sell or recommend using your referral link.
For some buyers, research is the most important part when they have to buy a product.
Depending on that, their journey either widens or narrows down. These types of buyers are
Researchers and they spend more time with informational keywords.
Conversion is the action you want from your search visitors. Number of conversions that you
get for every 100 search visitors is called Conversion rate.
People who are at different stages of a conversion funnel use different types of keywords.
Digital Money Maker Club – von Gunnar Kessler digital.focsh890
Title One is a comprehensive examination of the impact of digital technologies on
modern society. In a world where technology continues to advance rapidly, this article delves into the nuances and complexities of the digital age, exploring Its implications across various sectors and aspects of life.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
For too many years marketing and sales have operated in silos...while in some forward thinking companies, the two organizations work together to drive new opportunity development and revenue. This session will explore the lessons learned in that beautiful dance that can occur when marketing and sales work together...to drive new opportunity development, account expansion and customer satisfaction.
No, this is not a conversation about MQLs and SQLs. Instead we will focus on a framework that allows the two organizations to drive company success together.
2. Table of Content
1. Introduction
i.
History of IKEA
4
ii.
Current Situation of IKEA
4
iii.
Insights of IKEA
5
iv.
Objectives of IKEA
5
v.
Time line of IKEA
6
2. Why IKEA as a service organization?
7
3. Marketing Mix of IKEA
i.
Product
8
ii.
Price
9
iii.
Place
9
iv.
Promotion
9
v.
People
10
vi.
Physical Evidence
10
vii.
Process
10
4. Service Strategy of IKEA
11
5. Overall Cost Leadership Strategy
12
6. Developing Complementary Services
14
7. Globalization Strategy
16
8. Conclusion
18
2
3. 1. Introduction
IKEA is a privately established, international home products franchiser that sells flat
pack furniture, accessories, and bathroom and kitchen items in their store around the world.
The company which pioneered flat-pack design furniture at the affordable prices is now the
world’s largest furniture retailer.
i.
History of IKEA
The IKEA concept began when Ingvar
Kamprad who was age 17 years old, an
entrepreneur
Smaland
province
in
southern
Sweden, had an innovative idea. So when Ingvar
started his furniture business in the late 1940s, he
applied the lessons he learned in Smaland to the
home furnishing market.
Ingvar Kamprad
Ingvar’s innovative idea was to offer home furnishing products of good function and
design at prices much lower than competitors by using simple cost cutting solutions that did
not affect the quality of products. Ingvar used every opportunity to reduce costs, and he
scraped and saved in every way possible-except on ideas and quality. The name IKEA
formulated in a very creative way. The initials of Ingvar Kamprad came to first 2 letters I and
K, plus the first letters of Elmtaryd, and Agunnaryd, which are the names of the farm and
village where he grew up.
ii.
Current situation of IKEA
As the world largest furniture franchisers they offer specific customer service in many
countries. IKEA concept journey continues with its global operation in 40 countries, with 330
stores and 154,000 workers.
3
4. IKEA Store in Singapore
Initially its operations as a
seller
of
home
furnishing
products, IKEA today diversified
its
product
into
prefabricated
housing and food. Describing their
primary target market, IKEA’s
Business idea is to offer a wide
range of well designed, functional
home furnishing product at a low
price. The target market is very
broad. They are aiming to appeal to people of all ages, sexes, geographic location, all who
have one thing in common and that is the price preference.
iii.
Insights of IKEA
Vision:
“To create a better everyday life for the many people”
Mission:
“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”
Market Positioning:
“Your partner is better living. We do our part, you do yours. Together we save
money”
iv.
Objective of IKEA
To produce cheap and affordable product for the public/ customer and better life for
those who can’t afford expensive product.
Absorbing the maximum from the current resource base without harming to the
sustainability of the world.
4
6. 2. Why IKEA as a Service Organization?
IKEA is selling furniture franchiser which is now spread to more than 40 countries so
why learning IKEA as a service organization? IKEA does not sell furniture items to the
customers they just sell a furniture life style to their audience instead of selling what they
produce. It has constructed its store how houses really exist. From that they create a dreamy
house in the customers mind and if a living room this is how it should be. According to the
Service Marketing concepts it is known as the “Servicitation”, selling a product and a
service concept together.
Not like another furniture retailer, IKEA have its own values so before moving on to
the Service strategy analysis we drafted a model to understand more about IKEA. Based on
how the IKEA has created its value to the customers and its business model we have built up
a model to position the IKEA (Table No. 1).
Service
Dominant
Long term
& Multi
Perspective
Value
Creation
Logic
Product
Dominant
IKEA
Short term
& Financial
Value
Control
Based
Business Model
Value
Based
Table No. 1 IKEA model
IKEA positioned not as a furniture retailer but as a service provider by
providing solutions to the real life problems as it is focusing in making contribution to a
better life for a majority of people.
6
7. 3. Marketing Mix of IKEA
The IKEA is the organization which offers wide range of well designed, functional
home furnishing products at a low price. The target market is very broad. There for we can
see that the Marketing mix of IKEA has well defined to creative value for their customers and
retain them for a long time.
As the above chapter proved IKEA as a service organization, the marketing mix 7 P’s
for the IKEA is as Follows.
i.
Product
The service products are the heart of services marketing strategy. It include with a
core product which meet primary needs and supplementary elements which value
added/enhance services
When we consider about the IKEA the core product is well designed functional home
furnishing product and supplementary services can be identified as follows. These service
will enhance the value of the service provide by IKEA and will assist to supply the core
product successfully. For an example the element order taking the IKEA has basically
physical and online order taking process. Under that any customer can search from online
about IKEA web site and see information and then order throe home furnishing. The
important thing is it has a specific schedule for their orders, customer can order by seeing the
schedule. It has created according to delivery process of geographical area.
Another example for consultation element, IKEA use basically guidance book which
include how customers can assemble their home furnishing product correctly. In addition that
in the store of the IKEA, there is always consulting sellers to assist customers when they
chose and take purchase decision by consulting them as such as, how to assemble them, what
are the specific advantages.
7
8. ii.
Price
Payment of service means the price. The IKEA uses reasonable and affordable prices
for their furniture. Costs are cut and way necessary to be able to sell the product for less and
still turn a profit. They use large volumes and flat packaging to cut cost. The transports are
economic from the furnisher via the stores, to the customers, there are expensive than most
competitors, and they are outside city centers to keep price even low.
iii.
Place
IKEA is internationally expanded company. They expand their show rooms to
Europe, North America, Asia and Australia. Customers can come and see product in the show
rooms and also customer have to go web side and see product, after delivered to home,
because of online store customer’s to easy buy product.
Structure of IKEA
iv.
Promotion
How we communicate product to customer, mean promotion. IKEA are using TV
advertisement campaigns, catalog and online advertisement. As well as IKEA provide home
delivery service to its customer, shoppers are guide by properly and after sale service to the
customer.
8
9. v.
People
Human resources in the organization can be identified as the people. Front line
employees who are directly involve with customer, IKEA has sales people in the front stage.
Who are supports to customer to select furniture product and also provide information about
the furniture product. Back stage customer not directly involves with customer who are make
product or who are executive and top level employees. IKEA has furniture makers and
managing people in back stage.
vi.
Physical evidence
Design service escape and provide tangible evidence of service preformed acnes.
IKEA has no of show rooms expansion globally. That show rooms very attractive and family
friendly environment and give the perfect nature of a house. And also IKEA provide
restaurant and safest play area to children. IKEA use in delivering furniture own vehicles.
vii.
Process
IKEA selling process mostly depends on show rooms. Customer come and see
furniture, after select furniture and payment, and delivering furniture to customer residual by
using IKEA’s delivery vehicle. And also IKEA Company sells tire furniture true online.
IKEA customers have gone online and select product and online payment for furniture, after
deliver the furniture by IKEA.
9
10. 4. Service Strategy of IKEA
We have done a critical analysis on IKEA to gain insight on their service strategy.
First thing what we identified about IKEA is that it is not just a furniture retailer but provides
solutions to lot of people for an affordable price. Here the affordable price does not mean low
quality products but it derives lower cost products. So the first strategy in IKEA is the
Overall Cost Leadership. They maintain their cost in a lower level without harming to its
quality.
IKEA as a famous furniture franchiser it faces for a huge demand in every day. So we
analyze how they manage the demand with their capacity. According to the capacity they
have large show room which has optimized capacity allocation. So we thought about the
other side how they manage the demand. They are maintaining a restaurant chain along with
their stores with their inhabitant and also cultural foods. They have used the strategy of
Developing Complementary Services in managing their demand.
IKEA started in Sweden but now it has spread to 40 countries with 330 stores. It is a
global company it has expands the company to every country as it is. It is not a furniture
retailer but a Franchiser which has maintained the same standard for every country. We
identified its Globalization Strategy and the factors they used in entering to these countries.
Before they decide in entering to a country it conducts a research on the feasibility and
sustainability of it. For an example they have once tried to enter to the New Zealand market
but according to the research finding there will be a huge traffic jam in Auckland if they open
a store so they give up the idea.
As the conclusion of the strategies of IKEA they used 3 main strategies to become
successful in shorter time period. They are;
Overall Cost Leadership
Developing Complementary Services
Globalization Strategy – Franchiser – Multi Country Expansion
10
11. 5. Overall Cost Leadership
IKEA have affordable
prices
and
lower
profits
margins with them to treat
majority of people. Without
harming the quality of the
products they minimize the
cost in a lower level to become
the Overall Cost Leader. They
use several practices to keep lower cost level. When we
Store arrangement of IKEA
consider about IKEA the target market is young buyers in
search of stylish and fashionable furniture and house hold accessories at a low cost. For their
customers, the firm offers home furnishing that combine good design, functionally and
acceptable quality at low price. Although low cost is always a priority, IKEA emphasize
several activities to keep it cost low. It also offers some differentiated feature that appeal to
its target customers, including in store play room for children, wheel chairs for customers
use, and extended hours.
Limited Customer Service
IKEA is not a wide range of service provider it only presents the available products
with them and sells if a customer need. They sell packages of furniture items without
assembling it; the customer has to assemble them by themselves. It leads to decrease
assembling cost, storing space and all the other unnecessary costs. Another thing is that the
IKEA does not provide transportation service to the customers if they want they can request
for transport facility. That is why they say “We do our part – You do your part”
Assembling part to customers
11
12. Self-Selection by Customers
With the explanatory catalogs, informative displays and labels they provide the detail
assistance for the customers. So they keep fewer sales staff and give the freedom to walk
around the store and select their item. They have arranged the furniture items in packages and
after customer select item for them they deliver with the assistance of assembling. This
procedures lead for lower level cost and customer satisfaction.
Front Page of IKEA catalog
Low Manufacturing Cost
IKEA use 100% sourcing from their long term partners who have strong relationship
with them. They keep the relationship which worth for both parties and it allows gaining huge
financial benefit for the IKEA. Another significant fact is that the IKEA has their own
plantation in some countries which will be a sustainable benefit for the organization.
Modular Furniture Design
IKEA use in-house design focused on the manufacturing cost and capabilities of the
customers, they do not outsource designer from outside as they need to match the designs
with the cost and consumer expectation. This allows them to gain a competitive advantage by
decreasing the cost.
12
13. 6. Developing Complementary Service
Development complementary service is one of the demand and capacity management
strategies. The important thing of this strategy is diverting waiting customer as profitable
customer. Every firm has some waiting time/Queue when delivering their service. But the
important thing is a firm can manage their demand by using complementary service strategy
to reduce the waiting time and manage it to gain profitable advantages. According to its
customer will feels that they are not in the queue, but they are enjoying the waiting time.
According to it we can categorize IKEA’s main complementary service element as
follows.
Large & unique store
Supervised play area for children
IKEA restaurant café.
The IKEA store is most important and
attractive thing of the IKEA. It has to be in
order to offer comprehensive range of
product
that
people
can
take
home
immediately and enjoy the same day, as well
as to inspire people in realistic room setting
and real life home.
Swedish Meatball
IKEA have used unique store to facilitate complementary services by encouraging
the visitors to take their time and get comfortable with IKEA home furnishing solution and
product is realistic room setting and real life home to sit ,lie down, open & close drawers, to
compare styles, prices & imagine the possibilities. The goal is that everyone will enjoy their
visit to an IKEA store by consuming complementary services as mentioned below.
If the kids don’t want to shop, they can play in the supervised area. it may be hard to
get them to leave, but they can be tempted with a treat from the IKEA .
13
14. Restaurant and café, visitors can reward
themselves for successful shopping with a plate of
Swedish meatballs and buy a bag of meat balls
from the unique IKEA Swedish food market in the
exit area for the most IKEA stores .Because
Swedish meat balls is very popular fast food type
among people. So IKEA as identified that
opportunity as a complementary service option.
Appeal given to the customers
So we can identify that the IKEA have unique competitive advantage to manage
demand by giving the feeling that customers are don’t want to be waiting in the queue. They
have converted their waiting time profitable manner by their differentiated complementary
service strategies.
IKEA Restaurant & Cafe
14
15. 7. Globalization Strategy
IKEA operating in 41 countries, IKEA is a global destination store for home
furnishing, appliances, ready to assemble furniture, home accessories and kitchen products.
It is the world’s largest furniture retailer with more than 301 stores and 30 franchised units.
The largest market for the company is Germany with 44 stores followed by the United States
with 37 stores. IKEA applied Multi-country Expansion Strategy, so use same setting for
every county.
IKEA has plans to open its first stores in Croatia and Serbia in 2013, as well as a third
warehouse outside Barcelona, Spain in December. IKEA's plans for an India launch remains
in question as it awaits government approval.
IKEA standardization
Service Globalization Factors
Customer contact
Customer contact is front line operations. IKEA experiences many country-specific
advantages. First, IKEA's location in Europe made it relatively painless for the company to
spread throughout the rest of Europe. Along similar lines, IKEA has been able to send
employees who know the local language of foreign locations to set up stores, bringing the
15
16. IKEA philosophy and standard practices along with them. IKEA also embraced its advantage
of its heritage, focusing on quirky advertising in North America.
IKEA try to keep the center of the company relatively lean, and not make too many
decisions centrally that would be better made in stores or factories close to customers and
suppliers. Therefore, they must have a strong group of co-workers who can make the right
decisions to support their strategies.
Customization
IKEA has standard setting for every country, so they have standard service policy.
However they had faced similar problem previously when it entered the United States. The
company initially tried to replicate its existing business model and products in the US. But it
had to customize its products based on local needs. American customers, for instance,
demanded bigger beds and bigger closets. IKEA had to make a number of changes to its
marketing strategy in the US.
Cultural adaptation
IKEA consider about cultural adaptation, so they use different method for different
culture specially their catalogs and advertising. Their biggest advantage was Ikea’s culture
and value. Culture is extremely important at Ikea, even more so than at other companies.
IKEA work hard to ensure that as new people come in, they understand who they are and
what they are trying to do. The people who work there genuinely want to be here and share
Ikea’s core values of cost consciousness and humility. As an example, in the 2013 IKEA
catalogue distributed in Saudi Arabia, women have been deleted from the picture.
Complexity
As for engineering capability, they continue to design most products themselves.
Their product designers don’t just sit in an office with a computer. They work in their
factories, and in the factories of their suppliers, designing products with the engineers there,
to help make them more efficient to produce.
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17. 8. Conclusion
IKEA is formulated by a great entrepreneur Ingvar Kamprad in 1940 in Sweden. He
had a creative idea in furniture items which leads him to become the excellent brand in
Sweden. It is now the largest furniture retailer in the world with plenty of innovations and
wide range of designs. In figures it has 330 stores in 40 countries with 154,000 employees.
This furniture franchiser does not just sell furniture items but sell a solution to human
lives. It sells prosperous life styles to the customers for an affordable price. With the lower
cost and lower margins they set up reasonable price which majority of customers can offer.
With the explanatory catalogs they provide descriptive to their customers.
IKEA as a well-known and successful furniture franchiser use 3 major service
strategies. Overall cost leadership, Complementary Services Development and Multi-Country
Expansion are those 3 strategies.
For the cost leadership they use some practices such as limited customer services,
self-selection of customers, lower manufacturing cost and modular furniture designs. With
that they make their cost to a lower level. As the complementary service they maintain a
restaurant, café and safe & supervised play area. According to the globalization strategy they
involve with multi-country expansion strategy being a franchiser of selling furniture items.
With these 3 service strategies they have become very successful and the practices
they involve with leads for long term sustainability. We have done a critical analysis on all
the aspects of IKEA organization based on the service marketing concepts what we learnt and
got a good understanding on how it really applied in the real world.
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