Report on Marketing Management of IKEA
1. Introduction
IKEA (Ingvar Kamprad Elmtaryd Agunnaryd) is a privately held, international
home products company that designs and sells ready-to-assemble furniture,
appliances and home accessories. This Sweden company is now the world's
largest furniture retailer.
Ingvar's innovative idea was to offer home furnishing products with good
functions and designs at prices much lower than other competitors by using
simple cost-cutting solutions that did not affect the quality of products. Ingvar
used every opportunity to reduce costs, and he tried to scrape and save in
every possible way, except on ideas and quality of the products. Therefore,
the IKEA concept is founded on a low-price offer in home furnishings.
Today, the IKEA trademark represents the leading home furnishings brand in
the world with more than 300 stores in more than 35 countries and more than
130,000 co-workers.
2. Target customers
Based on offering a wide range of well designed, functional home furnishing
products at prices so low that as many people as possible will be able to
afford them. Rather than selling expensive home furnishings that only a few
people can purchase, IKEA makes it possible to serve the majority group by
providing low-priced products that contribute to helping more people who want
to live a better life at home.
3. Attractive factors
3.1 Low price and assembled by customers
IKEA designers do their part to keep prices low by using production
capabilities from other areas in unique and previously unimagined ways - like
having a factory to produce furniture upholstery, or using leftover materials
from the production of one product to create an entirely new one.
IKEA customers also contribute to keeping prices low. They select and pick
up the products themselves, transport them home and then assemble them
themselves at home. And they can enjoy them already later that day.
3.2 Wide range of products
Fundamental activities such as eating, sleeping, storing items, socializing and
so on create a demand for furniture and practical products that to solve
essential human needs. Furthermore, the vast majority of people have limited
budgets and limited space in their homes.
The IKEA product range meets these needs by offering a wide range of well-
designed, functional home furnishing products. The IKEA range includes
products for every part of the home.
3.3 Good services
As a popular home products company, IKEA also pays attention on servicing
their customers, like offering advices of home furnishing to customers for free,
delivering products for the customers as soon as possible, helping customers
to assemble products independently and so on, those good services make
IKEA more and more popular among customers nowadays.
4. Marketing management orientation
4.1 Production
IKEA is trying to provide a convenient environment for customers to purchase
the home furnishing products in their stores. E.g. Many IKEA stores not only
include showrooms to display the lay-out of combined furniture, but also
include restaurants and kids play area inside the building, so customers can
spend a good time shopping in the stores.
4.2 Sales
IKEA provides home furnishing products of good function and design at prices
much lower than competitors by using simple cost-cutting solutions that did
not affect the quality of products. E.g. Much of IKEA's furniture is designed to
be assembled by the consumer rather than being sold pre-assembled, which
permits them to reduce the costs and lower down the price compared with
competitors.
4.3 Market
Many people have many needs. Some live with kids. Some need more
storage. Some have to make the most out of a small space. IKEA designers
are always seeking new ways to improve people's lives, without emptying
their wallets. IKEA products which most people can afford in a reasonable
price meet customer’s needs in almost every way in their daily life. E.g. IKEA
produces furniture for people’s eating, sleeping, storing items, socializing and
so on, which is for every part of the home.
4.4 Societal
As the world largest furniture retailer, IKEA not only tries every possible way
to meet customers’ needs and raises its profits at the same time, but also
pays attention to develop the green technology field, which will be friendlier to
the environment. E.g. In August 2008, IKEA announced that it had created
IKEA GreenTech, a €50 million venture capital fund. Located in Lund (a
college town in Sweden), it will invest in 8–10 companies in the coming five
years with focus on solar panels, alternative light sources, product materials,
energy efficiency, and water saving and purification. The aim is to
commercialize green technologies for sale in IKEA stores within 3–4 years.
5. Appendix
http://en.wikipedia.org/wiki/IKEA
http://www.ikea.com/ms/en_US/customer_service/ikea_services/ikea_service
s.html
