IKEA GUIDE A NEW GENERATION LIFE STYLE
Guangdong Polytechnic Normal University
December 31, 2008
IKEA is the way to Heaven, because anybody can trust the spirit that releases energy through the arrangement of furniture. ——Edward Norton
(Award winning actor) There are many things to the secret of IKEA’s success. There is the design of the store which requires the customers to walk a long way before reaching the exit. The lack of customer service requires customers to shop alone without interruption. IKEA also has an interesting coffee shop that supplies Swedish meatballs and orange juice to hungry shoppers. Interesting is the simple furniture which requires assembling by the purchasers. All of these things mentioned are what contribute to IKEA’s success. This is what IKEA considers the customer guided market. IKEA takes advantage of the business model which requires considering the opinion of customers to design marketing plans. IKEA has a long history and an effective brand, furthermore, IKEA follows the model trend of furniture fashion by producing what is correctly in style. With housing prices growing and smaller room design have became a popular idea. With limited space, IKEA’s furniture can help one to take advantage of the entire area. IKEA’s purpose statement is “the higher quality, the lower price”. Although IKEA market low prices for high quality goods, it is prices are still above average incomes spending for Chinese nationals. The name of IKEA is made up of the first capital letter from the Swedish words Ingvar, Kamprad, Elmtaryd and Agunnaryd. Ingvar Kamprad is the name of IKEA’s founder, Elmtaryd is the name of the farmhouse and Agunnaryd is his hometown which in a small country named Sweden. In the beginning, Ingvar Kamprad sold cheap things, like pens, wallets, frames, cosmetic tablecloths, watches, jewelry and socks. In 1943, when Ingvar was seventeen year old, he used money given to him by his father to build the Ikea Agunaryd. As the business was getting bigger and better, Ingvar Kamprad found the responsibility of the store too great for him to handle, which lead him to sell products by mail order. Afterward, he turned to selling furniture because of the high profit and because of the convenience. It was difficult to remember all the products’ number, thus, naming the furniture was giving a life and a special personality, so Ingvar Kamprad gave a name to each piece of furniture and this creative idea which attracted many customers. The first furniture called “Ruth”, was a chair is without an armrest. The name of IKEA was becoming more popular, because of the convenient mail order. Many companies followed this trend. Then mail order became more competitive and making the price lower and lower is not a long-term’s strategy. Ingvar Kamprad decided to raise prices to maintain high quality. A furniture-exhibition center was necessary, so that people can visit and judge the furniture for themselves, having a place for customers to justified raising the furniture price. Ingvar Kamprad is like most Swede, he is hard-working, thrifty and has an acute insight. He believes it is important to have a canteen and an amusing facility where children can play with the colorful balls. Customers would make a wrong decision in an important business because of hunger and bored children. In addition, the canteen is located beside the area of paying and exiting. Customers can think over what they have chosen. The example of above reflect Ingvar Kamprad has an acute sense of business, it is a goal to make sure everyone shopping in IKEA feel happy and relax. The brand color of IKEA is yellow and blue, the same as the Swedish flag. Delivering information to show the products in IKEA is reliable and clean. In the IKEA furniture demonstration center, there are diverse of furniture, kitchenware and lamps. Whatever kind of furniture, from foreign countries, which...
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