2The IKEA Vision“The IKEA vision is to create a better everyday life for the many people. We make this possible by 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.”
3Location opening in Spring 2007! Portland, OR Seattle, WA Near the Portland Airportopening in Spring 2007!Seattle, WA601 SW 41st St.Renton, WA 98057store hoursMon-Fri 10am-10pmSaturday 9am-10pmSunday 9am-9pm-280,000 square-foot-approximately 1,200 parking spaces-feature four model homes-50 room settings-supervised children’s play area-250-seat restaurant serving Swedish specialties
4History 1943 IKEA is founded by Ingvar Kamprad. Swedish retailer 1955 IKEA begins designing its own furniture.1985 The first IKEA store opens in the USA.1993 IKEA reaches 114 stores in 25 countries.
5*The IKEA group has 90,000 co-workers and operates in 44 countries. *Company Motto:“Affordable Solutions for Better Living”*The IKEA group has 90,000 co-workers andoperates in 44 countries.*World’s leading homefurnishings retailer*Low-cost home products*Assembled products by theconsumer
6$$$sales by region Asia + Australia 3 % North America 16 % Europe 81 %top 5 sales countriesGermany 19 % USA 11 % United Kingdom 11 % France 9 % Sweden 8 %Sales for the IKEA Group for the financial year 2004 (1 September August 2005
7Ikea & the EnvironmentUse of wood-recyclable, biodegradable and renewable materialSelect wood that is from verified, well-managed forests that have been certifiedFree disposal of light bulbsMinimize costs by reducing wastes-saving raw material, energy and other resourcesSelecting the right environmental friendly productsUse leftover material from one product to anotherEmployees are “environmental co-ordinators” working in different ways to increase environmental awareness
8Outlook for 2007The Ikea group plans to focus on the following issues for 2007:Reduced PricesContinued Quality assurance at all levelsExpansionContinued focus on environmental and social issues
9Customer Service Restaurant in store Child Care Design Advice IKEA exit bistroSwede ShopIKEA RestaurantChild CareSupervised PlayroomBaby Care RoomFood Warming FacilitiesChildren’s MealsDesign AdviceOffice PlanningKitchen PlanningHome Furnishing AdviceStore AtmosphereEasily Located ProductsBrowse through showrooms and try out productsDelivery Services available or take home products immediatelyCompany WebsiteAsk AnnaProduct Recall InformationIKEA Recycling InformationOnline room plannersStore Locator
10Marketing Mix Product Place/Distribution Everything for the home Kitchens, bathrooms, sofas, chairs, beds and textiles, rugs, floors, lamps, plants, and everything in betweenDisplayed to show design possibilities with IKEA productsAssembled by the customerPlace/DistributionMerchandise sold in 254 Free Standing IKEA stores in over 44 countries as well as on the internetExclusive distribution planNOTES: Under place and distribution talk about the Planner page where you can download a program for your kitchen, bathroom, bedroom etc. The program downloads on to your computer with the latest merchandise and prices. From there you select your current rooms dimensions and place items like doors, windows, heater vents etc similar to the layout of your room. From there you can pick the IKEA furniture specific to your room that you like, place it in your room and move the furniture around. After you have completed this activity, you can view the room with the merchandise in it in 3D from all angles, the next page displays all of the necessary pieces to create the room with your specific criteria and the prices and totals of all of the IKEA products to make the room complete. From there, the list can be mailed to your local IKEA store where you can pick up your items or you can shop online for them as well.
11Marketing Mix Promotion Price THE IKEA CATALOGUE is the most important marketing channel. 2007’s catalogue was printed in 175 million copies in 55 editions and 27 languages.Other promotions include their seasonal sales, internet deals and television advertisementsIKEA Credit CardPriceLow to moderate pricing depending on itemPrices range from $9-$19.99 for simple lamps to over $4,000 for complete rooms enlarge imageWe are just beginning to see more IKEA commercials in our area due to the new Portland, OR location with an expected opening date of July 25, 2007Specific to the Portland, OR location: customers can begin lining up for the opening of the store starting July 23, 2007 and all they say they will be doing something special for everyone on opening morningFor example with price for a full room, using the kitchen as an example over $4,000 gets you: cabinets, countertops, interior shelves, hinges, drawers, molding, panels, sink, faucet, knobs and handles. Lighting and Appliances are sold seperatlyLeather Sofa $999.00Swivel Chair $129.00Chandelier $69.99
12Target Market Diverse group of men and women Age : 25-45 $35,000-$65,000Located in Major Cities in the US as well as InternationallyCreative Inspiration and DIY
13Competition Intertype Competition Intratype Competition Home Improvement StoresHome DepotJerry’sDepartment Store’sMeier & FrankMacy’sDiscount RetailersWal-MartFred MeyersIntratype CompetitionCrate and BarrelPier 1Pottery BarnFurniture retailers utilizing similar store layoutsM.JacobsAshley’s Home FurnishingsEthan Allen
14Store layout Original design warehouse on the lower levelsShowroom and marketplace upper levelsOne way layout- leads customers along the long natural wayLoop layoutSequence involves:Furniture ShowroomsHousewares (market-hall)Warehouse (self serve)Tour of IKEAWhich arrive at the cashier’s station to make payment
15Ikea Includes *Restaurants Swedish food Meatballs Local cuisine *Interactive Website*CatalogNormally at one place in the store where there are large windows.
16Works Cited Ikea. Com http://en.wikipedia.org/wiki/IKEA