Presentation on theme: "Patty Brantley Amanda Randall Hien Nguyen. The IKEA Vision The IKEA vision is to create a better everyday life for the many people. We make this possible."— Presentation transcript:
Patty Brantley Amanda Randall Hien Nguyen
The 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.
Location Seattle, WA 601 SW 41st St. Renton, WA store hours Mon-Fri 10am-10pm Saturday 9am-10pm Sunday 9am-9pm Portland, OR Near the Portland Airport opening in Spring 2007 ! -280,000 square-foot -approximately 1,200 parking spaces -feature four model homes -50 room settings -supervised childrens play area -250-seat restaurant serving Swedish specialties
History 1943 IKEA is founded by Ingvar Kamprad. Swedish retailer 1955 IKEA begins designing its own furniture The first IKEA store opens in the USA IKEA reaches 114 stores in 25 countries.
*Company Motto: Affordable Solutions for Better Living *The IKEA group has 90,000 co-workers and operates in 44 countries. *Worlds leading home furnishings retailer *Low-cost home products *Assembled products by the consumer
$$$ sales by region Asia + Australia 3 % North America 16 % Europe 81 % top 5 sales countries Germany 19 % USA 11 % United Kingdom 11 % France 9 % Sweden 8 % Sales for the IKEA Group for the financial year 2004 (1 September August 2005
Ikea & the Environment Use of wood-recyclable, biodegradable and renewable material Select wood that is from verified, well-managed forests that have been certified Free disposal of light bulbs Minimize costs by reducing wastes-saving raw material, energy and other resources Selecting the right environmental friendly products Use leftover material from one product to another Employees are environmental co-ordinators working in different ways to increase environmental awareness
Outlook for 2007 The Ikea group plans to focus on the following issues for 2007: –Reduced Prices –Continued Quality assurance at all levels –Expansion –Continued focus on environmental and social issues
Customer Service Restaurant in store –IKEA exit bistro –Swede Shop –IKEA Restaurant Child Care –Supervised Playroom –Baby Care Room –Food Warming Facilities –Childrens Meals Design Advice –Office Planning –Kitchen Planning –Home Furnishing Advice Store Atmosphere –Easily Located Products –Browse through showrooms and try out products –Delivery Services available or take home products immediately Company Website –Ask Anna –Product Recall Information –IKEA Recycling Information –Online room planners –Store Locator
Marketing Mix Product –Everything for the home –Kitchens, bathrooms, sofas, chairs, beds and textiles, rugs, floors, lamps, plants, and everything in between –Displayed to show design possibilities with IKEA products –Assembled by the customer Place/Distribution –Merchandise sold in 254 Free Standing IKEA stores in over 44 countries as well as on the internet –Exclusive distribution plan
enlarge image Marketing Mix Promotion –THE IKEA CATALOGUE is the most important marketing channel. 2007s catalogue was printed in 175 million copies in 55 editions and 27 languages. –Other promotions include their seasonal sales, internet deals and television advertisements –IKEA Credit Card Price –Low to moderate pricing depending on item –Prices range from $9-$19.99 for simple lamps to over $4,000 for complete rooms Swivel Chair $ Leather Sofa $ Chandelier $69.99
Target Market Diverse group of men and women Age : $35,000-$65,000 Located in Major Cities in the US as well as Internationally Creative Inspiration and DIY
Competition Intratype Competition –Crate and Barrel –Pier 1 –Pottery Barn –Furniture retailers utilizing similar store layouts M.Jacobs Ashleys Home Furnishings Ethan Allen Intertype Competition –Home Improvement Stores Home Depot Jerrys –Department Stores Meier & Frank Macys –Discount Retailers Wal-Mart Fred Meyers
Store layout Original design –warehouse on the lower levels –Showroom and marketplace upper levels One way layout- leads customers along the long natural way Loop layout Sequence involves: –Furniture Showrooms –Housewares (market-hall) –Warehouse (self serve) Tour of IKEA Which arrive at the cashiers station to make payment
Ikea Includes *Restaurants –Swedish food Meatballs –Local cuisine *Interactive Website *CatalogCatalog Normally at one place in the store where there are large windows.