Presented By: Julia Hazleen Rostam Matric No: 112007962 Date: 4th April 2012

Company Overview IKEAs Vision, Business Idea and Market Positioning Statement Product Positioning IKEA Catalogue Product Strategy Promotion Strategy Products Sold by IKEA IKEAs Concept Summary
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IKEA is a private limited company owned by a foundation controlled by the Kamprad family. INGKA Holding B.V. is the parent of all IKEA group companies. IKEA is an international home products company that designs and sells ready-to-assemble furniture. Worlds largest furniture seller. Founded in 1943 by 17-year-old Ingvar Kamprad in Sweden. Company is named as acronym comprising the initials of the founders name (Ingvar Kamprad), the farm where he grew up (Elmtaryd) and his home parish (Agunnaryd, in Smaland, South Sweden).

Started off by selling everything from pens and wallets to watches and nylon stockings by going door to door and selling directly to his customers. By 1945, the first advertisements for IKEA began showing up in local newspapers. Only in1951, Ingvar began to focus only on furniture and discontinued all other products from the IKEA product range. The first IKEA furniture catalogue was published that same year and 2 years later, in response to competition, the first furniture showroom opened in the village of lmhult. This same competition caused other furniture stores and manufacturers to put pressure on suppliers to boycott IKEA which led to the critical decision to design their own furniture beginning in 1955.

In 2008, IKEA boasts 285 stores in 36 countries, with an additional 26 stores to be opened in 2009 and is the world's largest furniture manufacturer. IKEA is the worlds most successful massmarket retailer Sells Scandinavian-style home furnishings and other house goods IKEA's stores feature playrooms for children and Swedish cuisine restaurants.
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IKEA Malaysia operates as a subsidiary of INGKA Holding B.V. IKEA Malaysia operates a home furnishing products store. The company offers living room, bedroom, and kitchen and dining furniture; storage units and organizers, computer cabinets, lighting, textiles, cooking and eating products, bathroom products, and safety products; and products for children. It also provides various services, such as home and office furnishing, home delivery and assembly, kitchen planning, and sewing services. The companys store includes a restaurant. IKEA Malaysia offers its products in Sweden, Germany, Poland, the United Kingdom, the United States, Singapore, Australia, China, Israel, the Russian Federation, and internationally.

The IKEA vision, business idea and market positioning statement provide a framework for all IKEA marketing communication worldwide. The IKEA vision is To create a better everyday life for the many people. The IKEA business idea is To offer 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. The IKEA market positioning statement is Your partner in better living. We do our part, you do yours. Together we save money.
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Cultural strategy (use of Swedish flag & style) The company designs its own furniture, which is made by about 1,500 suppliers in more than 50 countries The suppliers and designers work to customize some IKEA products to make them sell better in local markets. By developing stylish retail outlets Spending huge amount on advertisement (e.g.: IKEA catalogue)
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The IKEA catalogue is the main marketing tool with around 70% of the annual marketing budget being spent on this alone. It is produced in 38 different editions, in 17 languages for 28 countries. 110 million catalogues were circulated last year with 13 million of these being available in the UK.

IKEA offers 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. IKEA continuously find ways to develop methods that are both cost effective and innovative to continue selling goods at low prices while at the same time maintaining the quality of their goods. Design its own furniture to adapt to customers needs. Low priced furniture store that provides reassemble furniture and casual furniture. Most of IKEAs products are stylish and trendy. Comes in flat packaging which makes it easier for customers to transport the goods.
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High profile advertisement campaigns (spending huge amount of money to print their catalogs) Billboard , TV and Radio advertisements Upon entry to IKEA store, shoppers are guided properly Only one entry point and one exit point in the store which requires customers to pass through all their products available in store Online shopping Provides home delivery services Provides after sales services to the customers Online advertisements
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Its signature feature is the flat packed product that customers assemble at home, thus reducing transportation costs. Country specific management style Standardized retailer selection Is based on the market positioning statement. "We do our part" focuses on IKEAs commitment to product design, consumer value and clever solutions. Maintain low prices by using inexpensive materials in a novel way and minimising production, distribution and retail costs.
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The IKEA product range is developed to be extensive enough to have something that appeals to everyone and to cover all functions in the home. The products are modern and are practical enough for everyday use. Low price while promising good value for money.

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Functional Design Approach

IKEA design means products that are attractive, practical and easy to use. They don't have unnecessary features, they give genuine solutions for specific home furnishing needs and are made of the most suitable materials for their purpose. The quality of a product must be appropriate for the intended use.
For example there is no need for an expensive back panel on a bookcase if a less expensive alternative does a good a job as long as the bookshelf is used for the purpose it was intended for.

IKEA products are subjected to rigorous tests to make sure that they meet national and international safety standards.
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Convenient Shopping
The IKEA store offers "everything under one roof", most of it available for immediate take-away. IKEA offers service where you need it, but allows customers to make most of the decisions themselves.
Stores are giving consumers a look at what model homes could look like with their products. This lets the consumer look and see how they can fit these ideas into their own home. They do not stop there though as many rooms are also designed in a way to let your imagination grow by showing what can be done in such a limited space. This means that we need to make it easy to choose the right products by displaying them correctly, describing them accurately and having a simple returns policy.
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Convenient Shopping (continued)

They have no salesman who is going to try and pressure you to buy something. Self service type atmosphere, but you're not alone. Staffs are there to help you and answer questions, but not to pressure you into a sale. IKEA has got this method down quite good and the way they are growing this concept seems to be doing the job for them. It's refreshing to be able to walk around the store without having everyone hounding you to buy a certain product
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A day out for the whole family

IKEA aim to look after our customers by planning for their needs. IKEA not only provides inspiration and ideas, but they also encourage people to touch, feel and use the products on display to see how they would fit into their own home. IKEA have new products arriving all the time, seasonal themes, play areas for children, special events and a great value family restaurant.

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IKEA is a private limited company founded in 1943 by Ingvar Kamprad in Sweden. IKEA is the worlds largest home furnishing products seller that designs and sells readyto-assemble good quality products at affordable price to many people. IKEA offers convenient shopping with everything under one roof and model homes for customers to visualize how their homes would look like with IKEA products.

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Low cost Ludicrous commercials Social and ethical responsibility Unique brand identity (blue-and-yellow buildings) Fair quality Voucher promotions Large inventory & parking space Impulsive shopping experience Family experience

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