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TEAM Keyona Abbott Francisco Alvarez Kaitlin Bumpus Jasmine Ruiz.

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Presentation on theme: "TEAM Keyona Abbott Francisco Alvarez Kaitlin Bumpus Jasmine Ruiz."— Presentation transcript:

1 TEAM Keyona Abbott Francisco Alvarez Kaitlin Bumpus Jasmine Ruiz

2 Overview Founded in 1943 by Ingvar Kamprad Focuses on Frugality & Low Cost Over 226 Stores in 33 Countries 200 IKEA Group Owned, Rest Franchised 28 Stores in U.S. Älmhult, Sweden Atlanta, GA

3 Functional Divisions Production –Long-Term Supplier Relationships –Places Trading Offices Worldwide –Long-Term Contractual Relationships Marketing –Product Design –Catalogs –Advertising –Public Relations/Sales Promotion

4 SW OT Analysis Strengths –Low-Cost Structure –Anti-bureaucracy –Do-It-Yourself Approach –Added Amenities Weaknesses –Do-It-Yourself Approach –Service Trade-Offs –Limited Promotional Expenditures IKEA Catalog

5 SW OT Analysis Opportunities –Urban Sprawl –Value-Dominant Buying Logic –Growing Popularity of Swedish Design Threats –Copycat Competitors –Changing Customer Needs

6 Future U.S. Expansion Advantages –Consumers Cost-Conscious –Melting Pot of Cultures Barriers –Strong Individualism –Commercials Too Edgy

7 Question 1 Why are the styling and designs of IKEA products so popular? Does IKEAs blend of style and pricing have appeal to mainstream U.S. consumers?

8 Positive Trendy Sleek Low-Priced Good Quality Unique Stylish Negative Cheap Hard to install Low-Priced Bad Quality Not Unique Product Description

9 Problems PriceSelf-Assembly

10 Appeals To… College StudentsKids Young CouplesSophisticated Family Business Office

11 Gender Age Demographics

12 Income Education Demographics

13 Race Demographics

14 How do you account for IKEAs growth & popularity: value or image? What can IKEA do to sustain growth after it loses some cachet? Question 2 Hoovers Company Capsules and Profiles

15 Image What do you think of when you think about IKEA? Appeals to Outside Mainstream Socially and Ethically Responsibility –No plastic bags –Owned by a charity –Long term relationship with suppliers. –Environmentally conscious production and manufacturing process

16 Commercials 500 Days of Summer I Dont Judge Dining Room Table

17 Sustainable Growth Expansion into other markets –Use successful business strategy in other ways –Open smaller mini IKEAs Put products into other retail stores. –Food from their café in grocery stores

18 Speculate on what will happen at IKEA stores as they are tailored to fit local tastes. Is the companys trade-off of service for low cost sustainable in the long term? Question 3

19 U.S. Market A lot of Americans live very busy lives and convenience and fast pace is very important Most Americans are willing to pay the extra money for service rather than the do-it-yourself Its believed that the low cost do-it-yourself will not be sustainable in the U.S. and other developed countries

20 American Invasion Americans did not like IKEAs products at first…. –The sofas were too hard –Appliances did not match kitchen designs –Everything is do-it- yourself

21 Advertising



24 Fun Facts Cheapest Item is a dog dish for $0.29 There are 48 room settings and three model homes in an IKEA showroom 522 million people worldwide went to an IKEA store last year In 2006, IKEA stores & distribution centers handled 281,734 tons of waste. About 81% was recycled.

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