Buy books, tools, case studies, and articles on leadership, strategy, innovation, and other business and management topics. Marketing at lulea university of technology where we have had the opportunity to look into the shopping. Not only to tailor the product to the consumers, but to also avoid offending social values. The thesis presents a case study of ikea shanghais marketing performances from a cultural perspective, following the model of the marketing mix the 4ps. The largest group of ikea franchisees is the ikea group, a.
Scribd is the worlds largest social reading and publishing site. The study has a qualitative case study approach where the primary data collection was through interviews with ikea customers. Bachelor thesis the ikea experience a case study on how different factors in the retail environment affect customer experience rebecka isaksson mirela suljanovic lulea university of technology bachelor thesis industrial marketing department of business administration and social sciences division of industrial marketing and ecommerce. To achieve this status and to ensure that it is maintained, ikea has developed a strong organization culture and control systems that support its short term and its longterm strategies.
At face value ikea is a household name, popular within culture, and with a long record of creative marketing. The company is known for its modern designs, and the company strives to be associated with simplicity and high environmental standards. Here, we can perform a swot analysis on ikea to know about its strengths, weakness, opportunities and threats for writing ikea marketing strategy case study. Ikea is a favorite among customers searching for welldesigned products at low prices. In addition to the visitors in the stores, some 450 million visitors are tracked entering the ikea website. Case 1 ikea case study 1 ikea 1 as discussed in this.
However, in creating low prices ikea is not willing to sacrifice its principles. Ikea case study business model everybody knows that ikea offers the products at a very lower price than any retail shop. Competitive advantage in the marketing strategy of ikea coordinating with designers across the world and testing their ideas so as to provide the growing home furnishing needs is one of the biggest advantages that ikea has over other players in the markets widerange, artistically designed, ecofriendly and affordable furniture at low cost will always be the driving force for the company. Swot analysis of ikea marketing blog for students and. Ikeas history ikea is the one of the famous readytoassemble furniture company and as of 2008, it is the world largest furniture retailers. Some competition like walmart is cheaper than ikea, but furniture packaged is not high. The ikea vision, business idea and market marketing communication worldwide. Strategic management ikea case study 6700 words bartleby.
Strengths these are some reasons which help ikea maintain its position at the top of the furnishing retailers. May 07, 2019 this case study on ikea companys marketing strategy was written and submitted by user demetrius huff to help you with your own studies. Unfortunately, their efforts arent always wellreceived. Ikeas global marketing strategymarketingcase studycase. While excellent product quality and affordable prices can be good for penetrating new markets, the way a brand is marketed decides its fortune in the long term. But while people still expected to get the catalogue, excitement had dwindled. The report illustrates the application of the major analytical strategic frameworks in business studies such as swot, pestel, porters five forces, value chain analysis, ansoff matrix and mckinsey 7s model on ikea. This will combine social, environmental and economic issues.
By offering a limited range of ikea products, these ikea lite shops would presumably give consumers who do not otherwise have access to a fullsize ikea the opportunity to experience the brand. Ikea has successfully grown in the home furnishings retail market as a result of its primary philosophy of costleadership, wide variety of fashionable and practical products, and its ability to maintain low costs and pass the savings onto the customer. Ikea case study swot analysis to get an insight into its strategic management. Ikea case solution,ikea case analysis, ikea case study solution, introduction the ingvar kamprad established ikea in the year 1943. The major concern of this plan is how the company can maintain the environmental sustainability while the growth strategy can also be operated on track. Ikea keeps this rule close for every marketing material they put out. Successful innovation how ikea innovates the simplest way to understand business innovation is to see it as a process of focused change.
To meet this vision ikea provides many well fun many people as possible can afford to buy them. Target marketing, positioning and demographic segmentation are very appreciated in this case study. Nov 17, 2019 ikea group report contains a full analysis of ikea marketing strategy. Ikea company, marketing global presence and management of the brand ikea the original store owned by ikea was opened in 1958 in sweden. Operations management ikea case study free samples. Ikea is shifing its marketing strategy, moving away from its traditional focus on rooms to instead put the spotlight on product innovation and showcase how the addition of. The largest group of ikea franchisees is the ikea group, a private group of. Ikea case study 2 man3503strategic management table of contents. Integrated marketing communication program for ikea. It has launched a new sustainability plan to take the company through to 2015.
Ikea stores sell readytoassemble furniture, appliances, and household goods. Ikea marketing case study with companies that have many more locations and convenient onestop shopping such as target and walter. Ikea uses swot analysisto help it reach its objectives. In addition, consumers who do live near a fullsize ikea would be able to use these minioutlets to make minor purchases e. This keeps costs down and helps the company to reach its green targets and have an overall positive impact on the environment. Jan 31, 2012 ikea strategic case study and analysis by. Kea must develop a competitive market advantage that spans beyond simply cost and modern product. As a result, ikea is not as swedish as it presents itself. Some of the issues that ikea faced as it expanded globally included identifying and understanding global consumer needs and how these. Today the firm is the largest furniture retailer in the world, with 9,000 employees operating in 43. Using table 11 as a guide, discuss the international marketing strategic issues for ikea as it expanded globally. Ikea entered the chinese market in 1998 by first opening a shop in shanghai, the financial centre of the country and are now ready to expand further. Like walmart acquired flipkart and entered the indian market. Spending 70% of annual marketing budget in printing catalogs.
This study attempts to explain a reasonable marketing entry strategy of ikea in china based on the existing literatures. At its starting stage, the company was selling the catalog of. If you continue browsing the site, you agree to the use of cookies on this website. Ikea case study free download as powerpoint presentation.
Dylan white marketing 3011 08272017 ikea case analysis ikea invades america in this case i. How ikea adapted its strategies to expand and become. Dylan white marketing 3011 08272017 ikea case analysis ikea invades america in this case i have studied the internationally known. How is the ikea superstore design different from that of dfs stores. I have analysis the problems and give recommendations.
May 26, 2019 one of the largest furniture, appliances and home accesories company in the world, ikea is known for its unique designs. Ikea knew the catalogue had to do more than drive people into store, it had to build brand values. Companies like practicer, tepehome, kelebak, englishhome, and much more are dealing in online and offline mode while ikea has only franchised stores which mean low infrastructure cost and high visibility. We will take a case study of ikea how they took the marketing research, to successfully establish their business in japan, inspite of the difficulties they faced.
Ikea is known as the furniture giant that spreads swedish culture all over the world. Pdf standardized marketing strategies in retailing. Ikeas main marketing channel is its catalogue that is. Ikea case study ikea case study the founder of ikea, ingvar kamprad, established the ikea brand in sweden when he was only 17 years old.
The case also details the relationship ikea had with its customers and details the companys promotional strategies in global markets. Ikea india case study peter betzel market entry strategy. However, in order to operate on a global level, the company makes many regional adjustments to their marketing campaign. The ikea vision, business idea and market positioning statem ent provide a framework for all ikea marketing communication worldwide. Ikea group report contains a full analysis of ikea marketing strategy. Ikea is facing numbers of problems in their marketing strategies and the study of consumer behavior in their home furnishing products markets. Ikeas concern for people and the environment encourages it to make better use of both raw materials and energy. In a russian catalogue, ikea removed a samesex couple from their magazine. The case discusses the global marketing strategies of sweden based furniture retailer ikea. Hence, in order to solve the research questionhow ikea designs marketing strategies for the chinese market, integrating its global marketing strategies with culturallybased marketing activitiesconducting a case study is a sensible selection. Ikea companys marketing strategy 630 words case study. It also assesses some lessons the company learnt in china that might be useful in india.
Ikea marketing plan executive summary ikea is one of the world s top furniture retailers, and its international sells home furnishings and other housewares in about 270 stores in 35 countries. A case study on a popular retailer ikea marketing essay. Ikea address ethical and social responsibility challenges. Shopping at ikea involves going through a furniture showroom, where. Margaret nicholson february 8, 2015 keller graduate school professor. It means putting your creative ideas into effective use, in order to improve your. In this casestudy, we will analyze and compare the operationalmanagement characteristics of ikea and dfs. The company has since expanded and opened stores outside sweden in the subsequent years of its operations including norway in 1963 and denmark in 1969. The following case study has been put in writing in the year 2005, in helsinborg, sweden. The companys main targets comprise a keen attention on pricing, classy, middleincome earners and families. If this will make a hit, the return from investment will get in a short period of time.
It ends with the challenges faced by ikea in foreign. The purpose of this case study was to enable an understanding of the market entry strategies of a global players in the backdrop of ikeas firstever store launch in india. Case study ikea about ikea since its 1943 founding in sweden, ikea has offered home furnishings and accessories of good design and function at low prices so the majority of the people can afford them. Preamble to the case analysis and discussion dashboard. Aug 31, 2019 ikea case study business model everybody knows that ikea offers the products at a very lower price than any retail shop. Ikea shifts marketing strategy to focus on product. This is an analysis of ikeas marketing strategy and the techniques it utilized to. Summarizing ikea marketing entry strategy in china is a gradual process. Ikea is currently at 46th position in the world in brand value of forbes list. Founded in sweden in 1943, ikea is a swedish company that designs and sells readytoassemble furniture and home accessories. The findings indicate that customers who choose to visit ikea base their decision mainly on costadvantages as well as the size of the assortment. This case study analyses how ikea adapted its strategies to expand and become profitable in china. Have you ever wondered why professors love assigning an ikea case study. Marketing strategy of ikea ikea marketing strategy.
This case study will show why ikea believes a strong environmental stance is good business practice. In this blog, well talk about ikea case studybusiness model as the swedish furniture company opened its first retail store in india. The thesis was written for the division of industrial. Oct 06, 2014 ikea will also expand its target customer from young, costconscious customer to newlyweds couples, american families, for office use, schools and etc. The analysis was done by first carrying out strategic analysis of ikea, as it. Edition 14 swot analysis and sustainable business planningthis swot case study will show why ikea believes a strong environmental stance. First of all, since ikeas establishment in 1943 at a small village in the south of. The starting point of this master thesis is the background. Lastly, the marketing mix and strategies adopted by ikea on how they make use of their 4ps to determine the product strategy for spacesaving furniture and unique designs, place strategy that lacking of presence in a particular country of ikea, price strategy that features in organizing promotional sales discount to induce customer to clear old stocks and the last p refers to the promotion. In the case of ikea, they were pursuing an aggressive growth strategy, initiated in late 2012 to double sales to 50 billion by 2020. At its starting stage, the company was selling the catalog of household goods given the. Ikea case study history of ikea ikea business model. It also consists of service mix process, people, physical evidence.
You are free to use it for research and reference purposes in order to write your own paper. Ikea is a swedish furniture giant founded by ingvar kamprad. It illustrates how ikea built a global brand and its localization strategies in markets including the us and china. Catalogue plus door drop case study ikea marketreach.
Ikea case solution, ikea case analysis, ikea case study solution, introduction the ingvar kamprad established ikea in the year 1943. As discussed in this chapter, international marketing is a complex task, and highly differentiated from domestic marketing. For 38 years, the delivery of the ikea catalogue to canadian homes was a muchanticipated event. Mktg52220775 marketing management analysis of the current situation strengths weaknesses there are a number of competitors who have low priced furniture to sell to buyers. The key issue underlined in the case is the challenge ikea is facing currently, to keep up the standard and quality which was brought about so far. Ikeas marketing strategies in sweden, the uk and china article pdf available in journal of retailing and consumer services 183. For marketing campaigns, dfs has presented itself as deals for sunday. Ikea has recently introduced frekvens collection, tjillevipps, borstad collection, permanent collection and a lot more. In th research conference of the european association for education and research in commercial distribution, july, lund university, lund, sweden. Ikea products are affordably priced but of good quality. Integrated marketing communication program for ikea executive summary this paper presents an integrated marketing communications scheme for ikea. Ikea marketingconsumer b ehavior objectives from 2006 to 2007 in u. Swot analysis ikea s goals of sustainability and environmental design are central to its business strategy.
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