3.0 Marketing Actions IKEA has been done 4.1 Product Product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want. According to Pan (2005) it covers more than the physical goods the company wants to sell, it is the goods and an attractive assortment of products for consumer to buy in the store combination. IKEA make itself attractive by offering wide range product. Their product range focuses on good design and function at a low price. IKEA offers more than 12,000 items to fit out from flowers pots to carpets, via dishes, lamps and wallpaper, in other words, it offers home furnishing solutions for every room in the home. Products range widely in several ways; …show more content…
The basic thinking behind all IKEA products is that low prices make well-designed, functional home furnishings available to everyone. After all, their vision is to create a better everyday life for the many people (IKEA). They really concern about low price image; every now and then, IKEA reduces the price of certain products. They adopted the concept of economics of scale that bigger order will bring much more profits. They realize as IKEA becomes more popular among customers then they can make a bigger volume order, which make them get lower price material from supplier. Their prices typically run 30 to 50 percent below the competitors (Prime, 1998). While the price of other companies' products tends to rise over time, IKEA says it has reduced its retail prices by a total of about 20 percent during the past four years. The company also offers various payment options and credit terms to choose from for the customers. The low price image is keeping constant starting at the design level of the value-added chain. IKEA designers do their part to keep prices low by using production capabilities from other areas in unique and previously unimagined ways - like having shirt factory produce furniture upholstery and use leftover materials from the production of one product to create an entirely new one. IKEA also keeps costs down by packing items compactly in flat-packs which make not only transport from the factories to the stores cheaper, it also allows customers
IKEA is an internationally known home-furnishing retailer, with over 300 stores in 40 countries, that specializes in products
The services and products offered by IKEA provide value to its customers in various ways. For one, the products and services are very affordable. The products and services are not priced highly and therefore, the average customer can enjoy them. At the same time, the products are of high quality. From IKEA’s slogan “low prices but not at any price”, it is clear that the company prices its products lowly but that does not mean that the quality is compromised. IKEA satisfying its customer’s needs through providing them value for their money as they provide quality products that will last for a long time, and at affordable costs. The fact that the company has set the minimum acceptable standards for its wood, implies that it is also keen on quality and on the environmental impact of its action of making furniture ( Edvardsson, Enquist & Hay, 2006).
IKEA is an international company which designs house products and sells them in the form of ready to assemble furniture. It is one of the world’s largest furniture companies. It is founded by17 years old Ingvar Kamprad in Sweden in 1943. The most important fact about the company is the attention to control the cost of the products, which allows them to lower the prices. Even today they are continuing to expand in the world by looking forward to new product developments. The number of stores of IKEA in the United States is 14 at the moment and they aim to have 50 stores by 2013.
-IKEA appeals to people who are less busy and hectic in their lives, people who have the time and passion to make an effort to design and build their dream interior home.
From its low cost structure to its corporate culture (“The IKEA Way”) to the do-it-yourself approach (replete with measuring tapes, paper, and pencils available in-store) plus its strong brand image (representative of high quality, low-cost ,trendy, modern and fashionable
To summarize, IKEA has its own key differentiation in the market: low prices, high volumes, global sourcing presence, Scandinavian design, distribution concept with flat pack and the way to set out the stores and
Ikea offers a wide range of home furniture and accessories, from bedroom furniture to kitchen appliances. It also has a wide variety of style which it represents in all of the various showrooms within the store. It’s able to produce low price products that are high in quality.
IKEA furnitures, privately held, international, low-cost home products are an inevitable part of interior furnishings at many houses in the world. IKEA furnitures are marked for its modern utilitarian design. The company has 260 retail outlets around the world and more new stores are on the line to be opened in 2008 (Dhanyasree, 2007).
IKEA organized their stores in a different way than its competitors. While its competitors put its items in
IKEA aims to deliver all five of its brand attributes including low price, sustainability, form, function, and quality. However, Sykes acknowledged that low price is the first driver in product development. Unlike the most companies’ product development process that starts with consumer trends or competitive whitespace, IKEA starts with a target price point. Doing so keeps IKEA true to their commitment to providing better everyday life for the many people. Sykes said: “True innovation comes when you design quality furniture that’s affordable by
Based in Denmark, IKEA International A/S is one of the world 's top retailers of furniture, home furnishings, and housewares. The company designs its own items, and sells them in the more than 140 IKEA stores that are spread throughout approximately 30 different countries worldwide. The company also peddles its merchandise through mail-order, distributing its thick catalogs once a year in the areas surrounding its store locations. IKEA is characterized by its efforts to offer high-quality items at low prices. To save money for itself and its customers, the company buys items in bulk, ships and stores items unassembled using flat packaging, and has customers assemble many items on their own at home. The company is owned by
Ikea's mission is to offer a wide range of home furnishing items of good design and function, excellent quality and durability, at prices so low that as many people as possible can afford to buy them (www.ikea.com)
At the outset, it may be useful to characterise IKEA in terms of the characteristics of demand (also known as the four Vs, see Slack et al. p 20). First, IKEA is clearly a high volume operation – as indeed most international retailers are – which lends to systematising operations but which implies capital intensive processes and therefore cost considerations will be crucial. Second, IKEA offers a large number of products (up to 14000 depending on the country/store) so there is high variety in the
IKEA’s strategy towards its suppliers is that of a low production costs strategy. IKEA wants to sell its products at the lowest possible price therefore their