Channel Distribution of Ikea

Topics: IKEA, Retailing, Ingvar Kamprad Pages: 5 (1866 words) Published: August 18, 2009
IKEA is a privately-held, international home products retailer that sells flat pack furniture, accessories, and bathroom and kitchen items in their retail stores around the world. The company, which pioneered flat-pack design furniture at affordable prices, is now the world's largest furniture manufacturer. IKEA was founded in 1943 by Ingvar Kamprad in Sweden and it is owned by a Dutch-registered foundation controlled by the Kamprad family. IKEA is an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his home county. The company distributes its products through its retail outlets. The chain has 315 stores in 36 countries, most of them in Europe, the United States, Canada, Asia and Australia. 2006 saw the opening of 16 new stores. A total of at least 30 openings or relocations are planned for 2008. IKEA is one of the few store chains to have locations both in Israel and in other Middle Eastern nations. Germany, with 43 stores, is IKEA's biggest market, followed by the United States, with 34. IKEA now has 293 stores in 36 countries. However, the company has thus far not shown much of a presence in the developing countries. The segmentation base

Segmentation base allow IKEA to recognize their target customer and attract their potential buyers. The segmentation of IKEA is classified into four which are demographic, geographic, and physiographic and behavioral.

For the demographic segmentation, the main objective of IKEA is to produce high quality products at a low price. So they need to know more about customer background, age, gender and their behaviors as well so they can determine more about their future buyer and attitude or choice they wanted to buy certain product at IKEA thus demographic segmentation is really important for the company to move forward. Segmentation factors included age between 22 to 55 years and considered of annual household monthly income between RM2K to RM10k or more.

IKEA Geographic’s strategic planning is unique because the company has target the place that had a lot of high end user and near household area for example IKEA in The Curve Damansara Utama near 1 Utama shopping centre so IKEA are smart on planning in which place they want to open their shop because the company do not simple open they shop without any advantage to them. A free shuttle bus service is available to and from Kelana Jaya LRT Station and IKANO Power Centre. Parking is always bright, friendly and free, at the IKEA store. Customers can get parking ticket validated at the check-outs when making their purchases. The psychographic characteristics of IKEA affect not only advertising copy but also packaging such as discount for certain furniture and low loan interest rate when purchase product . Psychographic data can be gathered firsthand through personal interviews, focus group interviews, or questionnaires, or purchased from research IKEA companies in the form of list overlays for direct marketers or market profiles for general marketers. These surveys include people's lifestyles and behaviors where they like to vacation, the kinds of interests they have, the values they hold, and how they behave. By this way, IKEA will know more audience's characteristics of the media and how to handle them perfectly. Different group of consumers has different kind of choices based on their lifestyle, buying behavior, pattern and spending money but IKEA Malaysia can fulfill all the consumer needs because IKEA mission is to offer a wide range of home furnishing items of good design and function, excellent quality and durability, at prices so low that the majority of people can afford to buy them. The company targets the customer who is looking for value and is willing to do a little bit of work serving them, transporting the items home and assembling the furniture for a better price. Besides that, IKEA often offers promotion during New Year and year end promotion,...
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