Patty Brantley
Amanda Randall
Hien Nguyen
The IKEA Vision
• “The IKEA vision is to create a better everyday life for the
many people. We make this possible by 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.”
Location
Seattle, WA
Portland, OR
601 SW 41st St.
Renton, WA 98057
Near the Portland Airport
store hours
Mon-Fri 10am-10pm
Saturday 9am-10pm
Sunday 9am-9pm
opening in Spring 2007!
-280,000 square-foot
-approximately 1,200 parking spaces
-feature four model homes
-50 room settings
-supervised children’s play area
-250-seat restaurant serving Swedish specialties
History
• 1943 IKEA is founded by Ingvar Kamprad.
• Swedish retailer
• 1955 IKEA begins designing its own furniture.
• 1985 The first IKEA store opens in the USA.
• 1993 IKEA reaches 114 stores in 25 countries.
*Company Motto:
“Affordable Solutions for Better Living”
*The IKEA group has 90,000 co-workers and
operates in 44 countries.
*World’s leading home
furnishings retailer
*Low-cost home products
*Assembled products by the
consumer
$$$
• sales by region
Asia + Australia 3 %
North America 16 %
Europe 81 %
• top 5 sales countries
Germany 19 %
USA 11 %
United Kingdom 11 %
France 9 %
Sweden 8 %
Sales for the IKEA Group for the
financial year 2004 (1 September
2004 - 31 August 2005
Ikea & the Environment
• Use of wood-recyclable, biodegradable and renewable
material
• Select wood that is from verified, well-managed forests
that have been certified
• Free disposal of light bulbs
• Minimize costs by reducing wastes-saving raw material,
energy and other resources
• Selecting the right environmental friendly products
• Use leftover material from one product to another
• Employees are “environmental co-ordinators” working in
different ways to increase environmental awareness
Outlook for 2007
• The Ikea group
plans to focus on
the following
issues for 2007:
– Reduced Prices
– Continued Quality
assurance at all
levels
– Expansion
– Continued focus on
environmental and
social issues
Customer Service
•
Restaurant in store
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Child Care
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Supervised Playroom
Baby Care Room
Food Warming Facilities
Children’s Meals
Design Advice
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IKEA exit bistro
Swede Shop
IKEA Restaurant
Office Planning
Kitchen Planning
Home Furnishing Advice
Store Atmosphere
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Easily Located Products
Browse through showrooms and try out
products
Delivery Services available or take
home products immediately
•
Company Website
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Ask Anna
Product Recall Information
IKEA Recycling Information
Online room planners
Store Locator
Marketing Mix
• Product
– Everything for the home
– Kitchens, bathrooms, sofas,
chairs, beds and textiles, rugs,
floors, lamps, plants, and
everything in between
– Displayed to show design
possibilities with IKEA products
– Assembled by the customer
• Place/Distribution
– Merchandise sold in 254 Free
Standing IKEA stores in over 44
countries as well as on the
internet
– Exclusive distribution plan
Marketing Mix
• Promotion
– THE IKEA CATALOGUE is the most important marketing channel. 2007’s
catalogue was printed in 175 million copies in 55 editions and 27 languages.
– Other promotions include their seasonal sales, internet deals and television
advertisements
– IKEA Credit Card
• Price
– Low to moderate pricing depending on item
– Prices range from $9-$19.99 for simple lamps to over $4,000 for complete rooms
enlarge image
Swivel Chair
$129.00
Leather Sofa
$999.00
Chandelier $69.99
Target Market
• Diverse group of men
and women
• Age : 25-45
• $35,000-$65,000
• Located in Major
Cities in the US as
well as Internationally
• Creative Inspiration
and DIY
Competition
• Intratype Competition
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Crate and Barrel
Pier 1
Pottery Barn
Furniture retailers
utilizing similar store
layouts
• M.Jacobs
• Ashley’s Home
Furnishings
• Ethan Allen
• Intertype Competition
– Home Improvement Stores
• Home Depot
• Jerry’s
– Department Store’s
• Meier & Frank
• Macy’s
– Discount Retailers
• Wal-Mart
• Fred Meyers
Store layout
•
Original design
– warehouse on the lower levels
– Showroom and marketplace upper levels
•
One way layout- leads customers along the long natural way
Loop layout
•
Sequence involves:
– Furniture Showrooms
– Housewares (market-hall)
– Warehouse (self serve)
Tour of IKEA
Which arrive at the cashier’s station to make payment
Ikea Includes
*Restaurants
– Swedish food
• Meatballs
– Local cuisine
*Interactive Website
*Catalog
• Normally at one place in the store where there are large
windows.
Works Cited
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Ikea. Com
http://en.wikipedia.org/wiki/IKEA
www.answers.com/topic/ikea
www.youtube.com/watch?v=TDoWr9NdtO
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