Ikea Promotional Strategies

Several other companies also specialize in furniture that is discounted e.g. Walmart, Home Depot, Galiform et cetera. However, the inevitable allure of ready-to-assemble furniture aids IKEA in its growth in developing countries like China, Japan and Singapore. Global recession has also intensified IKEA’s competition as it can cause more expensive priced companies to have to reduce their prices. Such recession, however, can also decrease competition as it render’s the consumers’ spending power to lessen and thus they will not prioritize furniture as a needed expenditure.

IKEA-products are extremely popular, there are very few people that never heard about the yellow-blue brand. Moreover, it will (even) be hard to find people that have no products from IKEA in their houses. This makes us wonder: “Why is IKEA so successful?” We will analyze IKEA’s marketing department to answer this question. We think IKEA’s marketing strategies are very unique and therefore an important factor causing IKEA’s success. Our main belief was that IKEA is a company with a great proficiency in pricing. However, after some readings about the company we discovered all the 4p’s of the marketing mix are very well developed and still very innovative. IKEA’s marketing strategies are based on its democratic design statement; “Democratic design brings good design to the many

Many US furniture manufacturers also outsource jobs to those countries which then caused prices to drop and then the US furniture manufacturers had to downsize and more than 100 manufacturer plants closed down between 2000 and 2007.

Furniture has been used for thousands of years and built mostly of wood. There is little evidence indicating that wood furniture will be totally replaced by some other material in the foreseeable future. In the industry of furniture manufacture probability of substitutes is almost impossible. Current global trends have a favorable influence on increase in demand for furniture, due to ever faster obsolescence and shorter furniture lifetime, i.e. due to frequent changes in design and manufacture technology. Possible threat of trend changes exists, i.e. furniture made from other materials than wood, that is,

In the Guillermo Furniture Store Scenario, Guillermo the owner is faced with the effect of the economic market growing, global competition, and the use of today’s technology in manufacturing the identical class of excellence in furniture and trying to keep the

IKEA had to start designing more of its furniture in house and found a manufacturer who would produce IKEA-designed furniture. In this process, the manufacturer was in Poland where they found it is 50% cheaper than to manufacture in Sweden, allowing him to cut prices even more. Here the furniture industry continued to evolve with new technology and cost savings.

Therefore, there was not comparable increase in their exports. On the contrary, the rise of montage industries which used imported components to assemble the products primarily (i.e. electronic goods, motor vehicles, consumer durables, etc) meant that industrial growth required ever more imports.

Today IKEA has grown to be a big international company that has more than 353 stores in over 46 countries with over 146,000 employees worldwide. The Swedish heritage can be seen in many of IKEA’s characteristics: from the design of the furniture. IKEA’s vision is to “Keep continuing for a better everyday life of IKEA’s customer”. (IKEA official website) In 1951, sales of furniture dominated the inventory and IKEA decided to focus exclusively on low-priced furniture. IKEA also recognizes edging up his competitive advantage it is later proofed that it is a keystone of IKEA’s later success. Concurrently on the same year, IKEA’s very first furniture catalogue was also published. IKEA also opened its first furniture showroom in 1953, which allowed customers to see and feel the items they were buying providing a “third home concept” which gradually forms into their organizational culture. Their concept was a huge success as most people enjoys handling and viewing a potential product before making a purchase. IKEA’s success is mainly based on strong brand and organization culture where employees regardless of superiority are treated fairly and equally, this is to provide customers with the best shopping

TLMBA 2012-2014 Strategic Management Final Exam Ana Tomaz – 153 012 155 1 Furniture retailing market Japan 50% China 17% Latin America 2% 8 €/inh. Brasil 65% 400 Bi euros in 2012 Others 2% Asia 18% EU 25 45% NAFTA 33% 210€/inh. Imports 9,5% 165€/inh. Imports 32%( 20% from Asia and 5% from Europe) 1 – Furniture retailing business analysis and its KSF Macro Environmental Analysis 2 Furniture retailing market Schools, hospitals, hotels and churches

IKEA's objectives are focused to its marketing strategy. The company has launched a new viability project which will take it through the year of 2015. This plan will take into consideration socio-economic and environmental issues.

Marketing Function is Typical marketing function types within a more substantial business includes executing general market trends, making marketing plan, and product development, market development, market penetration as well as strategically caring for advertising, distribution on the market, costs, after sales customer support and pr. Operations Management is Procedures management involves planning, organizing, and supervising processes, and make necessary improvements for higher profitability. The modifications in the everyday businesses must support the company's strategic goals, so they are preceded by deep analysis and description of the current techniques.

　Ikea is not only a furnishings market brand, but also a furniture brand. Through a series of operations, in people 's eyes, Ikea is not simply a purchase house ware places, it represents a way of life. In our mind, Ikea 's success not only depends on its integration of the trade, logistics, but it used to integrate the core idea of trade, logistics-lifestyle (Margonelli, Lisa 2002). As we said before: using Ikea’s products is just like eating McDonald 's, drinking starbucks coffee, becoming a symbol of a lifestyle.

Title: Author: Supervisor: Purpose: The competitive advantage of IKEA and IKEA in China Zhi Li Lars Steiner The main purpose of this master thesis is to describe the IKEA concept and discuss the application in China. After research the history of IKEA, interview with the manager of IKEA store, and find the information from the web and thesis, use the theory of competitive advantage to describe the IKEA concept and the competitive advantage which is the way that IKEA used to

The rate of industrial machinery, accessories, and instruments has increased from about 16% of imports in 2005 to about 28% of imports in 2012 (the most recent year data available). The same type of equipment has also increased dramatically on the export side as well. 20% of exports from Vietnam fell into this group in 2005, 2012 saw 34% of exports from this category.

In 2004: The export turnover in 2004 was $26.003 billion, higher 28.9% than in 2003 and also the highest growth rate in this four years. This is one of the biggest successes of Vietnam’s economic in this period. So in 2004 the export turnover increased $5,824 billion in comparison with 2003, the reason was increasing the cost accounted for 33%, increasing the quantity of exporting goods accounted for 67%.