Marketing Analyses Ikea
1. Introduction
The aim of this report is to analyze ‘IKEA’ as a company and produce a tactical plan. To make an evaluation on the international marketing activities of the IKEA through the use of various marketing techniques including PEST and SWOT analysis and will conduct critical analysis of the existing international marketing strategies and issues facing ‘IKEA’ and how they can enter into India and Indian market, and will discuss about possible recommendations and solutions that the company can should employ and how these should be applied to enter new market and run the business with a new strategy followed by the conclusion.
1.1. Overview of the company
IKEA was founded in Almhult, Sweden, in 1943 by ‘Ingvar Kamprad’. Four years later, a mail order catalogue was introduced and, in 1948, furniture and home furnishings were introduced to the mail order range of the IKEA product range, and IKEA began to design its own furniture. The company motto is: "to create a better everyday life for the many people." On March 23rd, 1963 the first store outside Sweden was opened in Asker, Norway. IKEA opened its other stores in Denmark, Germany, Australia, Canada, and Austria. In 1987 it opened its first store in the UK. Today IKEA is the leading furniture retailer in the UK with a 12.1% before MFI and DFS and the group owns 260 stores around the world, all of them operates under a franchise from INTER system B.V. today its turnover is 20.685 billions in euro, compared to 16.8 billions in 2008, IKEA did hold 2.5% shares of the global home furnishing retail market in 2006. IKEA represents an immensely popular, profitable and respected in the global furniture marketplace. (Barthelemy, 2011, pp. 81) Low prices are one of the main points of the IKEA concept and help to make customers want to buy from IKEA. This low price strategy is coupled with a wide range of well designed, functional products. IKEA’s products are for every
The aim of this report is to analyze ‘IKEA’ as a company and produce a tactical plan. To make an evaluation on the international marketing activities of the IKEA through the use of various marketing techniques including PEST and SWOT analysis and will conduct critical analysis of the existing international marketing strategies and issues facing ‘IKEA’ and how they can enter into India and Indian market, and will discuss about possible recommendations and solutions that the company can should employ and how these should be applied to enter new market and run the business with a new strategy followed by the conclusion.
1.1. Overview of the company
IKEA was founded in Almhult, Sweden, in 1943 by ‘Ingvar Kamprad’. Four years later, a mail order catalogue was introduced and, in 1948, furniture and home furnishings were introduced to the mail order range of the IKEA product range, and IKEA began to design its own furniture. The company motto is: "to create a better everyday life for the many people." On March 23rd, 1963 the first store outside Sweden was opened in Asker, Norway. IKEA opened its other stores in Denmark, Germany, Australia, Canada, and Austria. In 1987 it opened its first store in the UK. Today IKEA is the leading furniture retailer in the UK with a 12.1% before MFI and DFS and the group owns 260 stores around the world, all of them operates under a franchise from INTER system B.V. today its turnover is 20.685 billions in euro, compared to 16.8 billions in 2008, IKEA did hold 2.5% shares of the global home furnishing retail market in 2006. IKEA represents an immensely popular, profitable and respected in the global furniture marketplace. (Barthelemy, 2011, pp. 81) Low prices are one of the main points of the IKEA concept and help to make customers want to buy from IKEA. This low price strategy is coupled with a wide range of well designed, functional products. IKEA’s products are for every