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:
2HISTORY OF IKEAFounded 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…
3HISTORY 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.
4General 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 (more than bible).In Turkey 4 million catalogues.23 billion euro total revenue.(2009)(450 million in Turkey.2.5 billion euro profit.(2009)
5General Information cont’ employees worldwide.In Turkey 1600 employees over square meter store area.Thomas Bergström( Chairman and CEO)Mikael Bartroff (General Director in Turkey)
6IKEA in TurkeyIKEA 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.
7The IKEA ConceptThe 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.
8STRATEGIESLow 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.
9STRATEGIES 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.
10ComparisonTotal 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. It’s share is about 15 percent.Ikea wants to double ıt’s store size and employee number in the next five years.
15RestaurantIKEA 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 percent of the total revenues comes from this restaurants.
17Social 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
18Environmental 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.