Marketing Students: Catch Them If You Can
The Analysis and Comparison of IKEA’s ‘bricks’ and ‘clicks’ Operation by 4Ps
1. The background of IKEA
IKEA has been founded by Ingvar Kamprad in 1943. After more than 60 years of vigorous development IKEA has become the world’s leading multinational company and is the world’s largest company of household goods and retail (Kling & Goteman, 2003). On February in 2010 IKEA has 313 large stores in 37 countries and areas in the world. The annual printing volume of IKEA catalog is up to one hundred million. And IKEA catalog contains approximately 12000 goods. On August in 2012 IKEA disclosed the financial and economic situation for the first time. By the 2011 August the net profit is €2.97 billion and the income is €251.7 billion (Ikea, Business, the Guardian, 2012).
2. Introduction
Retail and e-retail should learn from each other and match with the other. Retail should consider the timely online information. E-retail is mainly the role of a timely and effective sales channel (Gray, Peltier & Schibrowsky, 2012). This paper will firstly introduce the IKEA’s “brick” operation using 4PS. Following this, it will analyze IKEA’s “click” operation using 4PS. Finally, through the analysis and comparison of “brick” and “click”, it will advance some recommendations for the retail and e-retail of IKEA.
3. The analysis of operation of IKEA’s ‘bricks’
1) Product ➢ Accurate market positioning
IKEA’s business philosophy is to provide a wide range of beautiful and practical products at an affordable price. From the beginning, IKEA has decided to provide products for the majority (Edvardsson, Enquist & Hay, 2006). ➢ The style of products is unique and that makes products conductive to sales.
All products sold by IKEA are designed by IKEA lonely. The style of product is distinctive. IKEA emphasizes the style of products that are simple, natural, fresh and unique.
➢ IKEA has many kinds of products.
IKEA has many kinds of products and there are more than ten
1. The background of IKEA
IKEA has been founded by Ingvar Kamprad in 1943. After more than 60 years of vigorous development IKEA has become the world’s leading multinational company and is the world’s largest company of household goods and retail (Kling & Goteman, 2003). On February in 2010 IKEA has 313 large stores in 37 countries and areas in the world. The annual printing volume of IKEA catalog is up to one hundred million. And IKEA catalog contains approximately 12000 goods. On August in 2012 IKEA disclosed the financial and economic situation for the first time. By the 2011 August the net profit is €2.97 billion and the income is €251.7 billion (Ikea, Business, the Guardian, 2012).
2. Introduction
Retail and e-retail should learn from each other and match with the other. Retail should consider the timely online information. E-retail is mainly the role of a timely and effective sales channel (Gray, Peltier & Schibrowsky, 2012). This paper will firstly introduce the IKEA’s “brick” operation using 4PS. Following this, it will analyze IKEA’s “click” operation using 4PS. Finally, through the analysis and comparison of “brick” and “click”, it will advance some recommendations for the retail and e-retail of IKEA.
3. The analysis of operation of IKEA’s ‘bricks’
1) Product ➢ Accurate market positioning
IKEA’s business philosophy is to provide a wide range of beautiful and practical products at an affordable price. From the beginning, IKEA has decided to provide products for the majority (Edvardsson, Enquist & Hay, 2006). ➢ The style of products is unique and that makes products conductive to sales.
All products sold by IKEA are designed by IKEA lonely. The style of product is distinctive. IKEA emphasizes the style of products that are simple, natural, fresh and unique.
➢ IKEA has many kinds of products.
IKEA has many kinds of products and there are more than ten