Marketing Principles and Business Practice: IKEA

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Marketing Principles and Business Practice Table of Contents
1 Introduction: 1
2 Definition of different terms and their relation to customers’ need and customer focus: 1
2.1 Brand: 1
2.2 Business Strategy: 1
2.3 Price Sensitivity: 1
2.4 Franchises: 2
2.5 Retail sector: 2
3 Average customer per store and cost per customer and their use in business planning: 2
3.1 Average customer per store and cost per customer: 2
3.2 Mission Statement: 3
3.3 New Mission statement: 3
4 SWOT Analysis: 4
4.1 SWOT analysis and contribution to IKEA’s business growth: 4
4.2 SWOT analysis for “IKEA”: 6
5 Marketing Objectives: 7
5.1 SMART Approach 7
5.2 Two Marketing objectives of IKEA: 8
5.3 Marketing Mix: 9
5.4 IKEA’s Marketing Mix: 9
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3 Average customer per store and cost per customer and their use in business planning:
3.1 Average customer per store and cost per customer:
In august 2008, IKEA had total 253 stores where 560 million people visited. Here the total sales became 23 billion Euros. Considering 20% sales profit here IKEA’s average customer per store and cost per store are given below:
Average Customer per store = Total customer / Total stores (Eisen, 2000)
= 560000000 / (253 +32) = 1964913
Average Cost per customer = Total cost of production ÷ Total customer
=€23billion*(1-25%) ÷ Total customer = €172500000000 / 560000000 = €308
If the profit on sales revenue is 20% then profit on cost will become 25%(20%/80%)
Average cost per store = Average cost per store * Customer per store = €308 * 1964913 = €605193204 Per store
3.2 Mission Statement:
A mission statement describes the objective of a company or an organization. It shortly defines the overall goal and clarifies why the company exists (Griffin,1990). A mission statement should indicate some core points..
a. Target audience
b. Products or services that the company offers
c. Competitive advantage that makes you different
After making a mission
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