IKEA is a Swedish company founded in 1943. It is an international retail chain store with 160 stores located in 30 countries. IKEA’s business philosophy is to offer a wide range of home furnishings with good design and function at prices that as many people as possible will be able to afford. The IKEA store in Hong Kong is one of the franchise stores in the Asia Pacific region, having started business in 1975. Since then, IKEA has become the leader in the home furnishing industry.
Source : The information in this case is extracted and adapted from the website of IKEA Hong Kong.
Browse the website of IKEA Hong Kong (http://www.ikea.com/hk) and even conduct site-visit on one of its local branches to evaluate the Marketing Strategy of the firm in Hong Kong. Do not just copy and paste its website information onto your assignment, you should have your own analysis of how it becomes the market leader of home furnishing industry.
IKEA Hong Kong [pic]
- IKEA is a Swedish privately held international home products company which was founded in 1943 by 17-year-old Ingvar Kamprad in Sweden. The company is named as an acronym comprising the initials of his name (Ingvar Kamprad), the farm where he grew up (Elmtaryd) and his hometown (Agunnaryd). It is an international retail chain store with 330 IKEA stores located in 41 countries. Around 290 stores in 26 countries are owned by the IKEA Group including China, Japan and Russia etc. The other 40 stores are owned and run by other franchisees in 15 countries including Hong Kong, Singapore and Malaysia etc. IKEA’s blue and yellow logo is easy to be recognized and well-known for its unique and attractive designs and the colors are also the national colors of Sweden and the Swedish flag. IKEA’s vision is to create a better everyday life for many people. To supports this vision, IKEA offering a wide range of good-quality, well-designed, functional home furnishing products at low prices that will be affordable by many people.
- Started business in 1975, IKEA Hong Kong is one of the franchise stores in Asia Pacific region. In 1988, Jardine Pacific acquired the franchise and expanded the business made IKEA Hong Kong to be the leader in home furnishing industry. In Hong Kong, IKEA operates 3 stores which are located in Causeway Bay, Kowloon Bay and Shatin with long business hours from 1030 to 2230. IKEA’s stores display the product range in room settings, offering customers inspiring home furnishing solutions. The stores are designed in “one-way” layout, leading customers along “the long natural way” to encourage them to visit the store in its entirety. The layout of having the showroom upstairs with the marketplace, warehouse downstairs and the cashiers are only located on the lowest floor.
B) Marketing Strategy
- IKEA using different marketing approaches to capture the target customers who are well educated, looking for lifestyle and mainly from middle class. IKEA also using these approaches to build up customer loyalty from time to time.
- IKEA divides the market by using Demographic, such as age, family life cycle, income, education etc; Psychographic, such as lifestyles or personality characteristics; Behavioral, such as attitudes or responses to a product; Inter-market and Multiple Segmentation. Segment market allows IKEA has a much better chance to deliver value to customers and to receive maximum rewards for close attention to customer needs.
- IKEA uses “more for less” positioning strategy that offers a high valuable product at a lower price.
- In customers minds, IKEA products modern but not trendy, functional and attractive, people-focused, child-friendly, cover the needs of the whole family, young and old and value for money.
Core Benefit :
- IKEA offers a wide range of good-quality,...