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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), 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
HISTORY 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.

General 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 2010 (more
than bible).
In Turkey 4 million catalogues.
23 billion euro total revenue.(2009)(450 million in
Turkey.
2.5 billion euro profit.(2009)

General Information cont
127.000 employees worldwide.
In Turkey 1600 employees over 100.000 square meter
store area.
Thomas Bergstrm( Chairman and CEO)
Mikael Bartroff (General Director in Turkey)
IKEA in Turkey
IKEA 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.

The 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.
STRATEGIES
Low 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.


STRATEGIES 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.
Comparison
Total 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. Its share is about
15 percent.
Ikea wants to double ts store size and employee
number in the next five years.
Store Atmospherics
Layout: Mouse trap
Size: Wide
Lighting: Bright
Density: Generally crowded
Shelving: Tidy

Store Atmospherics
IKEA Store Plan
IKEA stores are known for their one-way layout,
which forces shoppers to tour the store from start to
finish, with only one primary path
IKEA Store Plan
Restaurant
IKEA 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. 6-10 percent of the
total revenues comes from this restaurants.
Restaurant
Social 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
Environmental 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.

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