Report on Ikea, Singapore
The purpose of this report is to examine Ikea’s retailing strategy in Singapore. It will also mention different areas of the retail strategy, such as the retail format, retail positioning, retail location, merchandise management, retail pricing, store design and layout, and customer service of Ikea. Ikea is a category specialist store under the general merchandise retailer’s category. It has a narrow variety and deep assortment. Furthermore, it manufactures and sells its own furniture displayed in a warehouse atmosphere. Ikea has two stores located island-wide in Singapore, the first one located at Alexandra Road in Queenstown, and the second store located in Tampines. IKEA stores in Singapore are usually large freestanding buildings located near highways, major roads, public transport, and huge vehicle traffic. Ikea’s product range is child-friendly and covers the needs of the whole family, young and old. To differentiate itself from the market, it offers customers a wide range of uniquely well-designed, functional home furnishing products at prices so low and reasonable, so as to allow as many people as possible to afford them. Ikea provides a pleasant shopping experience for all with is friendly and approachable staff. With a wide range of services from delivery, assembling, sewing, to interest-free payment and return policies, customers can shop with ease for their home solutions. To inform their customers about festive and seasonal discounts, savings, and promotions, catalogues are usually distributed through mailboxes and via email. Basically, Ikea has been a successful company in manufacturing and retailing their products. However, there are rooms for improvement such as the accessibility to the store. Much speculation has been made about the accessibility to IKEA in local forums and blogs and most of them find it very inconvenient to travel to IKEA. There are 2 IKEA outlets, one located at Alexandra and the other at Tampines. For Ikea Alexandra, the website states that the nearest MRT is at Queenstown MRT, Red Hill MRT or Commonwealth MRT. However, it does not reach IKEA directly and bus trips are required from there which has become quite troublesome for shoppers. Furthermore, previously there was a shuttle bus service from Sengkang to Alexandra IKEA, but the shuttle bus service is not operating anymore. These sources are taken from SgForums.com where Singaporeans expressed their unhappiness on. Although IKEA had made plans to counter their inaccessibility by implementing a free parking promotion scheme for IKEA Alexandra from Aug 2010 to July 2011, not everybody owns a car and drives. For Ikea Tampines, although it is much more convenient for people staying at the east to travel there, it experiences the same kind of problems too. Purpose
The purpose of this report is to investigate the different areas of Ikea’s retail strategy, and make practical recommendations that can further strengthen Ikea’s position in Singapore. Methodology
We have made multiple trips to both of the Ikea stores in Singapore to help us better understand its retail strategy, and its different services and operations within its store. Through the field trips, we had a more hands-on experience of its products, and how the company functions as a whole to make it successful in Singapore today. Online research was also done through the information given on Ikea’s website and Wikipedia. We have also looked through articles related to Ikea, and also Ikea’s catalogues that can help us understand better about the retailer and its products which we could explain and apply in our findings. Background of Retailer
Ikea is a private company that designs and sells ready-to-assemble furniture, ranging from beds, desks, sofas, to home accessories and appliances. Founded in 1943 by Ingvar Krampard in Sweden, Ikea is the world's largest furniture retailer. In order to give many people a better...
References: 1. http://www.ikea.com.sg
4. Tay Suan Chiang (25 Nov 2006). Make Room for Ikea. The Straits Times – Life! Retrieved 5 Nov 2007 from Factiva.
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