Ikea: Product Market
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Ikea:
product market
# ikea has cheap affordable bedding,household accessories of any sort and even some food altogether there are about 12,000 products altogether.
#Middle class customers ,students, and first time home buyers would be IKEAS main target market.
#ikea operate in 41 countries, most of them are in europe,us, canada, asia and australia.
#Ikea have global sales of 23.1 billion euros.
Customer value proposition:
#functional and good looking products bus as a low price
#cool scandanavian minimalist design at affordable prices
#Swedish virtues of thrift,good design and quality,global tastes,electism,range of sources of influence
#enviornmentally sensitive products
#strong brandingand in particular good marketing communications giving the product a “cool”image.
Assets and Competencies
#ingmar kampraid is the founder of ikea and was voted “most influencial taste maker in the world today”
#this company is the worlds largest furniture retailer with 127,000 co workers in 25 countries/territories
#innovation-12 full time+80 freelance designers,designing beautiful but cheap and functional items
#network of suppliers globally matching products with the right manufacturer
#research skills-rigourous research into each market, customising products for local markets
#creativity in marketing communications using both on and off line communication tools.
Functional strategies and programmes
#focus is on keeping costs to a minimum throughout the organisation and passing on savings to customers.
#majority of Ikea stores are located outside of city centres,primarily because of land and traffic access.
#minimising space requirements in transport by packing its furniture flat,Ikea keeps costs to a minimum
#31 trading service offices in 26 countries close to their 1,220 suppliers in 55countries many manufacturing in low cost locations in developing world.Ikea has 28 distribution centres and 11 customer distribution centres in 16 countries
#use creativity in marketing communications-wacky promotions