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IKEA Background

IKEA Background. 1942 IKEA established. 1947 started the furniture business. 1975 opened the 1st shop in H.K. As at 2007,it has 260 stores in 35 countries. IKEA own their coffee shops, restaurants in the retail shops.

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IKEA Background

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  1. IKEA Background 1942 IKEA established 1947 started the furniture business 1975 opened the 1st shop in H.K As at 2007,it has 260 stores in 35 countries IKEA own their coffee shops, restaurants in the retail shops

  2. Your partner in better living. We do our part, you do yours. Together we save money. Target Segment Target customers: Family, New generation, Offices Age group: All young age group Mission statement: Income: Middle class

  3. Quality High Francfranc Positioning Map B & Q Price Low High Pricerite Low

  4. Low price 4P – Price and Product Why IKEA price is low low cost logistics large quantity purchasing flat packed method reduce transportation cost Price:- Product:- Offer > 12,000 items Design: light and modern, many selections D.I.Y, Mix & Match Multi functional

  5. Flat packed: save place, high capacity 4P – Place and Promotion Near public transportation line & densely populated district Merchandise classification and positioning Added-value: Café & Playground, snack shops Promotion:- Place:- Below the line & above the line Public relations: public activities Sales Promotion in store demonstration, displays & Seasonal promotion. Tailor-made design

  6. SWOT Analysis Short product life cycle Smallest price, keep quality Creative ideas No fitting out on-site service Multi-function Delivery charges One stop solution W S O T Free Delivery Charges Diversified route Leader of furniture Many competitors Develop new market (office and Macau delivery) Need large amount of space (Special in HK)

  7. SWOT Advantage:- Other competitor has no TV shows they have no Software to design the home 4P – IKEA can apply to each of 4P, but it seems more concentrate on Product and Promotion No various Products

  8. Analysis Remedies: To broaden the source a wide range of product new segment to attract new customer Growth slowly software: design Tips for Home Decoration 宜室宜居 deliver to macau

  9. Conclusion The following is Critical factors for success • Price • Product • Promotion We think IKEA is success and that's why they are leading the market. Suggestion for IKEA Remit delivery charge Improve production life cycle

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