Ikea Selling Strategy

Topics: IKEA, Ingvar Kamprad, Furniture Pages: 8 (2698 words) Published: November 22, 2012
1. Executive Summary:
2.1. IKEA Objectives:
* IKEA produces cheap and affordable products for the customers. * The company wants better life for those who cannot afford expensive products. * IKEA always helps to produce right product for the right consumer. * IKEA always tries to sell their products at low prices. * The company’s global developments and its continual commitment is to have a positive impact on people and the environment. 2.2. IKEA Vision:

The Vision is to create a better everyday life for the many people. They make this possible by offering a wide range of well-designed home furnishing products at prices so low that as many people as possible will be able to afford them. 2.3. IKEA Mission:

The 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 (IKEA 1994). The company targets the customer who is looking for value and is willing to do a little bit of work serving them-selves, transporting the items home and assembling the furniture for a better price. The typical Ikea customer is young low to middle income family. 2. Company Summary:

3.4. Company Background:
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 retailer.IKEA was founded in 1943 by 17-year-old Ingvar Kamprad in Sweden and it is owned by a Dutch registered foundation controlled by the Kamprad family. The company which was originated in Småland, Sweden, distributes its products through its retail outlets. As of August 2009, the chain has 301 stores in 37 countries, most of them in Europe, North America, Asia and Australia. IKEA founder Ingvar Kamprad was born and grew up on the farm Elmtaryd, parish of Agunnaryd in Småland, in the south of Sweden. As a young boy Ingvar Kamprad knew that he wanted to develop a business. Various events during his upbringing gave him a strong drive to create his own resources and to be independent. In 1943 The Ikea was born, initially a mail-order business selling pencils, postcards, and other merchandise. The name derives from the initial letters of Ingvar Kamprad and of Elmtaryd and Agunnaryd. More over in 1948 Furniture manufacturing was an additional business for many farmers in Småland. So Ingvar Kamprad also introduced Furniture in the IKEA business as a complement to the general merchandise.  This was a success and Ingvar Kamprad starts exploring innovative solutions such as furniture design, self-assembly and advertising and by 1951 The first annual IKEA furniture catalogue was published in Sweden. Ikea grew and two years later by 1953 they opened a showroom in Älmhult. Here the customers could see and experience the quality of the products before ordering them and Ingvar could meet customers in person and learn from them. 3.5. Company Location and Facilities:

The company IKEA has a several store over many places in the world as the following a. Europe: Belgium, Bulgaria, Czech Republic, Denmark, Germany, Spain, Greece, France. Iceland, Ireland, Italy, Cyprus, Hungary Netherlands, Norway, Austria, Russia, Poland, Portugal, Romania, Switzerland, Slovakia, Finland, Sweden, Turkey, and United Kingdom b. North America: Canada and United States.

c. Middle East: Kuwait, Saudi Arabia, and United Arab Emirates. d. Asia Pacific: Australia, China, Hong Kong, Japan, Malaysia, Taiwan, Singapore, and Thailand. The facilities that could be found in most of IKEA stores is the same, however they are mentioned in the IKEA Ireland as the following: a. Showroom: IKEA stores are huge home exhibitions. Stretch out on a bed, see how many people you can fit on a sofa, or let your...
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