Presentation on theme: "HISTORY OF IKEA Founded by Ingvar Komprad when he was 17, in 1943 in sweden. The brand name IKEA is comprised of the first letters of his name (Ingvar),"— Presentation transcript:
HISTORY OF IKEA Founded by Ingvar Komprad when he was 17, in 1943 in sweden. The brand name IKEA is comprised of the first letters of his name (Ingvar), surname (Komprad), village he was born (Elmtaryd) and the farm he lived in (Agunnaryd) At first the firm was selling cheap pencils, nylon stockings, clocks etc…
HISTORY OF IKEA cont In 1948 furnitures took place in IKEA store. In 1951 first IKEA catalogue was printed. The first IKEA store in Turkey was opened in Umraniye/Istanbul in 2005. IKEA is now an international home products company that designs and sells ready-to assemble furniture, appliances and home accessories. The company is now the world's largest furniture retailer.
General Information Total store number is 306 in 41 countries Over 600 millions of visitors in 2010. In Turkey 11 million visitors. 198 million catalogues is printed in 2010 (more than bible). In Turkey 4 million catalogues. 23 billion euro total revenue.(2009)(450 million in Turkey. 2.5 billion euro profit.(2009)
General Information cont 127.000 employees worldwide. In Turkey 1600 employees over 100.000 square meter store area. Thomas Bergström( Chairman and CEO) Mikael Bartroff (General Director in Turkey)
IKEA in Turkey IKEA uses franchising system through the world. In Turkey franchisee is Maya Holding Inc. Co. In Turkey there are four IKEA stores. They are in Umraniye(Istanbul), Bayrampasa(Istanbul), Bornova (Izmir) and Osmangazi (Bursa). Next store will be opened in Ankara this year.
The IKEA Concept is 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 can buy, the IKEA Concept makes it possible to serve the many by providing low-priced products that contribute to helping more people live a better life at home.
STRATEGIES Low prices by excluding the costs of transportation and assembling. Although the prices are not so high, quality is good. 6500 different products and about 50 sample living space in a store. Generally, stores are not in the downtown.
STRATEGIES cont IKEA heavily uses catalogues. They use internet,tv,newspapers,magazines etc.. Parking space available is generally sufficient. Family card is provided. It has adventages such as; discounts, longer payment periods, you get 1 percent of your payment as a bonus and you can spend it later and also, if you spend more than 150 tl you earn one portion of swedish meatball.
Comparison Total size of the furniture retailing sector in Turkey is about 7.5 billion dollars. Rivals in the market are Koctas, Bauhaus, Masko and local producers. Koctas has a market share of 45percent. Ikea is relatively new in the market. Its share is about 15 percent. Ikea wants to double ıts store size and employee number in the next five years.
Store Atmospherics Layout: Mouse trap Size: Wide Lighting: Bright Density: Generally crowded Shelving: Tidy
IKEA Store Plan IKEA stores are known for their one-way layout, which forces shoppers to tour the store from start to finish, with only one primary path
IKEA Store Plan
Restaurant IKEA is also well known for their food station, with the most popular item being Swedish meatballs. The food station often opens daily before the rest of the store and serves an affordable breakfast. 6-10 percent of the total revenues comes from this restaurants.
Social Responsibility After the Pakistan earthquake of 2006, IKEA gave 500,000 blankets to the relief effort in the region. IKEA has provided furniture for over 100 "bridge schools" in Liberia. In the 2008 Sichuan Earthquake in China, IKEA Beijing sold an alligator toy for 40 yuan (US$5.83, 3.70) with all income going to the children in the earthquake struck area
Environmental Responsibility IKEA also supports American Forrest to restore forests and reduce pollution. Producing a model of chair (OGLA) made from 100% post-consumer plastic waste. Reducing the use of chromium for metal surface treatment. Using wood from responsibly-managed forests that replant and maintain biological diversty.