3. Economical factors
Created in 1943 by Ingvar Kamprad
Turn over : 21,5 billion €uros (+1,4% in 2008)
16,3% market share in France
Staff : 128.000 persons
267 stores in 25 countries
Visitors in stores: 590 millions
561 millions/year visitors on the website Ikea.fr
7. Technological & Legal
Technological factors
Creation and innovation of new products
Better stock management
Legal factors
Strengthening of international importation regulation
Norms
8. Environmental & Social
Environmental factors
Create products with a minimum of impact on the environment
IWAY
Partnerships with many environmental organisations
Social factors
Decent work condition to its suppliers
IWAY
Partneships with many social organisations
10. Structure and organization
IKEA
In charge of the development of the assortment of IKEA (10000 products)
IKEA has 43 offices of purchase distributed in 33 countries
Suppliers distribute in 55 countries
11. Structure and organization
Swedwood
The industrial group of IKEA is specialized in the production of
furniture and wooden components
32 factories in 9 countries
Swedwood is specialized first and foremost in the sectors
where IKEA has difficulties
The IKEA’s Group is supported by 9 departments
12. The watchword at IKEA
Decentralization
To have economies of scale
To maintain low prices
But certain fields of expertise keys are centralized
(IKEA IT, IKEA Food Services…)
14. The concept ?
« IKEA offers a wide range of well-designed, functional
home furnishing products at prices so low that as many
people as possible can afford them »
IKEA corporate web page
Standardised approach
To keep the prices low and attractive
To create one single image everywhere
The target group ? « Many people »
16. (1) PRODUCT RANGE
Supposed to be the same everywhere
10 000 Items
Very small adaptations
The Swedish product names are also used in
store and in the catalogue
17. (2) THE STORE
Store format standardised with 3 different sizes
Two levels
Same layout everywhere :
signage, displays, design and
colors
Goal the same shopping experience
18. (3) CATALOGUE
70% of the annual
marketing budget
17 languages
22 countries
Standardised layout
19. (4) PRICES
To deliver high value at low price
The price is relative and compared to the
marketing in each country.
Results ? Different prices on the same product in
different countries
20. (5) IKEA Family
Loyalty program including a magazine,
special assortement of products in store
The content is different between countries
and the most of this promotion doesn’t exist
21. (6) ADVERTISING
Responsability of the local store manager
New York, USA Copenhague, Danemark
The strategic work with the press differs between countries
22. Standardised
approach to the
world
(6) Advertising
(5) IKEA Family Local
(4) Prices
(3) The catalogue
(2) The Store Global
(1) Products and products range
25. CHINA IKEA
“IKEA” is a well-known brand. Chinese buy less when
they visit. They visit more often than everywhere : 33
per cent come every month. The food has been changed : a wok,
and a lid added with a special set of teacups. New specific
model of sets and special balcony because many Chinese live
in flats. The image of IKEA is not low prices, in China it is the
opposite : western retailer and the store is for higher-middle
class. Chinese IKEA store are sourced in China to reduce
costs. Store are close to midtown. Home delivery
service is common in China and often used. Chinese
standards. Focused on culture-specific aspects.
31. There are limits to how far a
business can go in standardisation
32. High level of strandardisation is
possible on markets similar to the
domestic. With different
conditions, standardised
concepts must be changed in
order to be attractive.
33. IN CONCLUSION ?
IKEA Concept is a standardised
one but the strategies and the marketing
activities to realise the standardised concept
may have to be adjusted to local
marketing conditions.