IKEA
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IKEA CONCEPT
IKEA was founded by Ingvar Kampard in
1943 and its headquarters are in Sweden.It
Provides its customers low cost functional
furniture which is easy to assemble.The
main financial principle of IKEA is to grow
using own resources.There are IKEA stores
in more more than 38 countries All the
stores are operated under Inter Ikea
Systems B.V.
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P7 Analysis
1) IKEA adalah sebuah peritel perabot untuk rumah tangga dari Swedia. Pada musim dingin 2004, terdapat
364 toko IKEA di 46 negara di berbagai belahan dunia. Katalog IKEA yang berisi info produk IKEA diperkirakan
adalah buku yang pendistribusiannya kedua terluas setelah Alkitab dan biasanya diperbaharui tiap Agustus.
Pada tanggal 15 Oktober 2014, Hero Supermarket, pemegang lisensi IKEA di Indonesia telah membuka gerai
pertama IKEA di Alam Sutera, Tangerang, Banten, Indonesia.
2) IKEA Alam Sutera merupakan toko ke-364 dan yang paling baru dari 46 negara di dunia.
3) IKEA juga sudah menjalin kerja sama dengan industri lokal di Solo, Jawa Tengah dengan mengambil bahan
baku dan pengrajin di Solo dan Yogya. Produk-produk lokal tersebut akan dipasarkan IKEA ke pasar
internasional, Desentralisasi yang terstandard.
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1.
Products
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1) IKEA has a wide range of furniture for children’s rooms, kitchens, bedrooms and living rooms. Products include coffee
tables, side tables, TV solutions, DVD storage, shelves, sideboards, bookcases, sofa beds, armchairs, leather sofas and
fabric sofas, as well as many other products. So within these segments IKEA then subdivides again. For example in
children’s bedrooms there will be play accessories, beds, changing tables, nursing equipment and so on. IKEA has in excess
of 10,000 products.
2) IKEA leverages seamless integration and ergonomics of their line of furniture. The products for the "Work IKEA" concept
include computer tables, home office chairs, home office desks, organizational tools, storage boxes and work lamps
(IKEA.com, 2004). All the parts are in one unit and can fit snugly in a room's corner. IKEA work chairs have easy height
adjustments and castors. The organizational tools include letter tray, pen holder, magnet board and cable reel. IKEA storage
boxes come in many sizes, materials and colors for easier organization (IKEA.com, 2004).
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2.
Place
8 Maps
our office
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▸ the place refers to the marketing channel and distribution
used to get products into the hands of consumers. IKEA
has 186 stores strategically placed in 31 countries, with 20
located in U.S. markets including Chicago, Baltimore, New
York, Los Angeles and San Francisco. IKEA ensures that its
stores and its franchisees remain fully stocked, with 27
distribution centers in 16 different countries.
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3.
Promotion
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IKEA ensures that its stores and its franchisees remain fully stocked, with 27 distribution centers in
16 different countries. IKEA recognizes the Internet as a growing distribution channel, with over 75
million visitors to its global sites last year alone (IKEA.com, 2004).
IKEA has mastered successful promotions in building a globally recognized brand. The most well-
known promotion is the IKEA Catalog. Every year, IKEA prints and mass mails a catalog to
consumers near its locations, introducing the latest products. IKEA has numerous Web sites
tailored to the consumer's home country, giving potential customers access to on-demand pricing
and product specifications. IKEA advertises heavily on consumer-focused television outlets
worldwide to promote its environment-focused store and product concept (IKEA.com, 2004).
▸ The promotions mix includes TV advertising, sponsorship, newspaper and magazine advertising,
and many other elements. Some of its TV advertising is considered controversial whilst others see
it as pretty plain. Recent campaigns include the IKEA kitchen party advert ‘Be Happy Inside’
campaign and the kitchen party advert.
▸ Obviously their iconic yellow IKEA logo serves to support the brand.
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4.
Process
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The processes consist of standard operating procedures, mechanisms and relationship flows used by
the organization to perform a service or manufacturing activity (McColl-Kennedy and Kiel, 2003).
From a consumer standpoint, this process refers to actual documentation from invoices to terms of
sale involved in the purchase, the various stages of negotiation and the order flow through the seller
organization. Barnes et al (1997) define process as the simplicity or complexity of making product
delivery happen.
IKEA not only concentrates on creating a "partnership with the customer", but also pays attention to
its employees and business structure. The company keeps its management structure flat, boasting on
its Web site that "there are no barriers between management and co-workers" (IKEA.com, 2004).
From buyers seeking more and more cost-effective designs to store personnel trained extensively and
given initiative to serve customers, IKEA has a focus on the service aspect of their highly competitive
business.
▸ IKEA has several business processes in place. It has 44 production units scattered across 10+
countries. IKEA makes its own wood by owning sawmills and produces high quality furniture. It has in
house production facility with highly developed technologies. It follows the clean environment slogan.
IKEA has the most unique supply chain and inventory management techniques. Its designs are
differentiated in terms of price. It almost buys products from 1800 suppliers. IKEA itself gives a code
of conduct to manufacturers that states rules and guidelines which help them reduce their checks for
environment friendliness. Further the finished product is delivered In pieces to be assembled by
customers which saves cost.
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5.
Physical Evidence
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Define this final attribute as the environment in which a service is delivered
in which the seller and buyer interact before, during and after the sale. For
example, brochures, reports, letterhead, business cards, facilities, and even
colors used in the decor of the service area factor into the environment in
which an organization carries out a service activity (McColl-Kennedy and
Kiel, 2003).
IKEA has 350+ stores in close to 50 countries. Physical evidence for IKEA is
its huge store layouts which provide more than just a shopping experience.
It has specific path layouts once you enter the store and guide arrows which
help you to your desired item. Stores are also equipped with restaurants for
refreshments and also baby handling areas for mothers. Also, it provides
large parking space as most of the stores are located outside the cities in
large areas. Most of the stores have an area at the end where used,
returned, damaged products are sold under huge discounts. One of the
largest stores are located in Sydney and Montreal. This covers the entire
IKEA marketing mix.
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6.
Price
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▸ In addition to its integrated product concept, IKEA seeks price leadership in
each market. For example, the company offers price guarantees in every
market. Prices listed in their catalog are guaranteed to be no higher than the
price in the catalog for one year from the publishing date (IKEA.com, 2004).
In Australia, the catalog boasts that if the customer finds a lower price at
other retailer within 30 days on an item they purchase at IKEA, IKEA will
refund the difference and provide a free meal in the IKEA store restaurant
(IKEA.com.au, 2004).
▸ IKEA competes with various global retail chains as well as local
supermarkets. Low prices constitute the IKEA vision, business idea and
concept. IKEA makes low cost furniture for household and offices. It
focusses on cost control and efficient operational details. This allowed IKEA
to lower its prices over the decade to 2010 during a period of global
expansion. IKEA allows not only lower prices but also freebies at the IKEA
restaurant form Monday to Saturday.
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7.
People
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▸ The IKEA brand is based upon strong relationships with customers and customer satisfaction. So
serving and working with people is central to IKEA’s business philosophy.
▸ In 2011 its then president Mikael Ohlsson made a statement in their annual report outlining his view on
the business and its future. In his view the business would be launching many energy-saving
alternatives to conventional light bulbs. He commented that their kitchen range would offer many
smart, eco-friendly solutions which would include water-saving taps, appliances and a special system
that would sort household waste ready for recycling.
▸ Ohlsson made a commitment to reduce the impact of his business on people, as well as the
environment. The business would act responsibly, resources would be used efficiently and costs would
be reduced. He also wanted sustainability to become more visible to customers and employees.
▸ IKEA gives utmost importance to the people, ie its customers and employees. Employees at IKEA
believe in the idea that they are straightforward people with passion for home furnishing. The
employee culture is based on togetherness, enthusiasm and fun. Customer satisfaction is at the core
of the values. There are 116000 employees in retail, 18000 in supply 21000 in production as of 2015.It
does not discriminate on the basis of race, ethnicity and religion. In 2016 the employee base of IKEA
has increased to 183,000.
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Looking IKEA closely..
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IKEA Unique Point – Non Profit Company
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THANKS!
