Channel Distribution of Ikea
Introduction
IKEA is a privately-held, international home products retailer that sells flat pack furniture, accessories, and bathroom and kitchen items in their retail stores around the world. The company, which pioneered flat-pack design furniture at affordable prices, is now the world's largest furniture manufacturer. IKEA was founded in 1943 by Ingvar Kamprad in Sweden and it is owned by a Dutch-registered foundation controlled by the Kamprad family. IKEA is an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his home county. The company distributes its products through its retail outlets. The chain has 315 stores in 36 countries, most of them in Europe, the United States, Canada, Asia and Australia. 2006 saw the opening of 16 new stores. A total of at least 30 openings or relocations are planned for 2008. IKEA is one of the few store chains to have locations both in Israel and in other Middle Eastern nations. Germany, with 43 stores, is IKEA's biggest market, followed by the United States, with 34. IKEA now has 293 stores in 36 countries. However, the company has thus far not shown much of a presence in the developing countries.
The segmentation base
Segmentation base allow IKEA to recognize their target customer and attract their potential buyers. The segmentation of IKEA is classified into four which are demographic, geographic, and physiographic and behavioral.
For the demographic segmentation, the main objective of IKEA is to produce high quality products at a low price. So they need to know more about customer background, age, gender and their behaviors as well so they can determine more about their future buyer and attitude or choice they wanted to buy certain product at IKEA thus demographic segmentation is really important for the company to move forward. Segmentation factors included age between 22 to 55 years and considered of annual household monthly income between RM2K to RM10k
IKEA is a privately-held, international home products retailer that sells flat pack furniture, accessories, and bathroom and kitchen items in their retail stores around the world. The company, which pioneered flat-pack design furniture at affordable prices, is now the world's largest furniture manufacturer. IKEA was founded in 1943 by Ingvar Kamprad in Sweden and it is owned by a Dutch-registered foundation controlled by the Kamprad family. IKEA is an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his home county. The company distributes its products through its retail outlets. The chain has 315 stores in 36 countries, most of them in Europe, the United States, Canada, Asia and Australia. 2006 saw the opening of 16 new stores. A total of at least 30 openings or relocations are planned for 2008. IKEA is one of the few store chains to have locations both in Israel and in other Middle Eastern nations. Germany, with 43 stores, is IKEA's biggest market, followed by the United States, with 34. IKEA now has 293 stores in 36 countries. However, the company has thus far not shown much of a presence in the developing countries.
The segmentation base
Segmentation base allow IKEA to recognize their target customer and attract their potential buyers. The segmentation of IKEA is classified into four which are demographic, geographic, and physiographic and behavioral.
For the demographic segmentation, the main objective of IKEA is to produce high quality products at a low price. So they need to know more about customer background, age, gender and their behaviors as well so they can determine more about their future buyer and attitude or choice they wanted to buy certain product at IKEA thus demographic segmentation is really important for the company to move forward. Segmentation factors included age between 22 to 55 years and considered of annual household monthly income between RM2K to RM10k