Marketing Principles and Business Practice: IKEA

2224 WordsJun 16, 20189 Pages
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…show more content…
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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