Ikea

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TABLE OF CONTENTS

I/Introduction2

II/Findings2
1. Micro environment - Supplier…………………………………………………………………. 2 2. Macro environment - Natural environment…………………………………………………… 3 3. Customer buying process……………………………………………………………………… 5

III/ Conclusion6

REFERENCES………………………………………………………………………………….. 7 APENDIX……………………………………..………………………………………………… 8

I/ INTRODUCTION
“Trends come and go, but combining a low price with good design and function never goes out of style” – This quotation tells us a lot about IKEA, a world-wide leading Home Furnishings brand, which was originated in Smaland, Sweden in 1943. Since then, IKEA has officially opened its stores in more than 30 countries, including Singapore. Analyzing IKEA’s marketing environment, consisting of micro-environment and macro-environment factors, plays an important role in its success. Therefore, the first part of this report focuses on elaborating IKEA suppliers (micro-environmental force) and IKEA natural impacts (macro-environmental force). The second one describes five stages of the buying process that a customer needs to go through when buying a specific product of IKEA. II/ FINDINGS

1. Micro environment - Suppliers
Suppliers are firms and individuals that provide the resources needed by the company to produce its goods and services. Their problems can seriously affect marketing plans. Marketing managers must watch suppliers’ availability-supply shortages or delays, labor strikes and other issues which can cost sales in short term and damage customers in long term. Marketing managers also monitor the price trends of their key inputs because rising supply costs may force the product costs to increase then harm the company’s sales volume.

As a result, IKEA is striving to build close and long-term relationships with their suppliers in order to create and deliver customer value. Their focus is to motivate and support suppliers to take more responsibilities, implement and maintain IWAY requirements. (The IKEA Way on Purchasing Home Furnishing Products (IWAY) specifies the minimum requirements they place on suppliers in order to get better productivity and higher profitability; and describes what suppliers can expect from them in return). The basic for IKEA’s marketing strategy is their insight into production quality. That is why designers, product developers and purchasers often work on site in suppliers’ factories. Suppliers are given a deadline for taking care of any problems that are identified, before a new inspection is carried out. IKEA does not accept corruption in any form, whether direct or indirect, and work proactively to prevent it. IKEA believes that corruption is contradictory to the goal of achieving low prices and being a good corporate market. There are a great number of IKEA’s suppliers, which are divided into 4 areas: a. Home furnishing (1380 suppliers): The IKEA home furnishing products are purchased from1,380 suppliers in 54 countries. The largest individual purchasing market is China, and the largest purchasing region is Europe. b. Food(76 suppliers): IKEA purchases fresh and packaged food for IKEA restaurants and the Swedish Food Market. All IKEAfood suppliers must comply with national and international legislation and agreements relating to food and food production in the countries where they operate. Furthermore, they must also comply with the IKEA code of conduct, IWAY. c. Catalogue(50 suppliers): IKEA catalogue suppliers must adhere to the code of conduct, IWAY. In addition, there are industry specific requirements such as certification of fibers and paper. d. Transport(263 suppliers): IWAY applies to the transport and distribution of IKEAproducts, as well as IKEA distribution centers. All transport service providers must use modern vehicles, have specific emission targets and measure their carbon dioxide emissions.

2. Macro environment – Natural environment
Natural environment involves natural resources...
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