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Slide 2 Damla KAAN Slide 3 Job Idea I: Ingvar (name) K: Kamprad (surname) E: Elmtaryd (birth farm) A: Almhut (town of birth) We should offer a wide range of well designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. Ingvar KAMPRAD Slide 4 Vision A better daily life.. Being in the side of the majority Offering thousands of well-designed and functional furniture and home accessories at low prices that many people can buy Retrenching in every field that comes to mind, except ideas! Not receiving money on workings that customer can make Retrenching together for a better daily life Slide 5 IKEA Concept Based on offering a wide range of well designed, functional home furnishing products at prices so low that many people will be able to afford them. Rather than selling expensive home furnishings that only a few can buy, the IKEA Concept makes it possible to serve the many by providing low-priced products that contribute to helping more people live a better life at home. Guides the way IKEA products are designed, manufactured, transported, sold and assembled. Slide 6 History 1926 Ingvar Kemorad was born. 1943 He registered his firm in 28 July,IKEA. 1946 Wholeslale ballpoints pens. The very first IKEA ad. Written by the founder himself. 1948 Stylish, modern furniture is introduced into The IKEA product range. Slide 7 History 1951 The first IKEA catalogue was distributed. Then, as now, free of charge. 1953 Albin Lagerblads furniture in Almhult was bought and converted into the first show-room of IKEA. 1955 IKEA started to design its own furniture. 1955 Partnerships were up to 100. Slide 8 History 1958 The very first IKEA store opened in Almhult, Sweden. 1958 Designer Gillis Lundgren created TORE series. These products were considered for childrens rooms. 1959 Disassembled furniture idea was created. Flat packages= Lower transports Costs = Lower prices 1961 Quality tests, which were accordance with Sweden Test Standarts, were started. Slide 9 History 1961 First agreement was signed with the none-Scandinavian partner(Poland). Their first delivery was 20.000 furnitures. 1963 First store outside of Sweden was opened in Oslo- Norway. 1964 Cafe chair from bending beech tree was re-designed for fitting to IKEA concept. 1964 Is expensive furniture better than cheap? was the headline in Swedens leading home furnishing magazine. The result was sensational. Slide 10 History 1965 The first store in Stockholm was opened. At that time, it was the largest home furnishing store in Europe. 1965 Kitchen part was opened in Stockholms Store. 1973 The first store outside of Scandinavia was opened. 1975 Plastic chair, called SKOPA, started to produced. Slide 11 History 1978 IKEAs shelves was moved to living rooms at first time. 1980 LACK came out. This stand was build from a sound and light material uses in room door building. 1980 KLIPPAN Sofa with a replaceable and washable sheath came out. 1982 PATRULL child security product serie, shows IKEA's commitment to safety, came out. Slide 12 History 1984 A fabric, which produces supermarket Cars, started to produce frame of MOMENT sofa. This design won an award. 1985 STOCKHOLM series came out. This serie won a Sweden Perfect Design award. 1996 IKEA created a new designer which was inspired by 18. century Scandinavian furniture. 1997 The child serie came out. Slide 13 History 1995 www.ikea.comwww.ikea.com went into operation. 1999 Ingvar Bengrad started a millenium award campain / Big Thank You Event for his employee. 2002 A historical Sweden souvenir has turned to a stylish design. 2003 Kamprad Building in the Sweden Hospital has been founded by IKEAs donation. This building has a cancer research fixture and a Radio-physic fixture. Slide 14 History 2004 First IKEA store in Portugal has opened. 2005 First IKEA store in Turkey/Umraniye has opened. 2006 First IKEA store in Japan has opened. On that year employee of IKEA group is over 100.000 people. 2007 IKEA has opened the most international store in Haparanda. Because this store is on the borderland of Sweden and Finland. This area is on the reservoir area of Russia and Norway. Slide 15 Store Stylies Ikea stores are generally like blue boxes which have lots of windows. On that stores a natural long-way has designed for the customers. Purpose of this way is encourging customer to see every part of store. Besides this way there were short cuts for the special part that customers want to see especially. Inner store designs are generally like this; furniture section, kitchen section and on the last part buying section and cash desk section. In spite of the original designs shopping part is on the lower floor and exhibiting part is on the higher floor, in the most of Canada, Spain,American stores and all of German stores exhibiting part is on the lower floor. And some of stores have one floor and build like a bugalow. In the most of IKEA stores sell generally Swedish foods and next of these there are some restaurants which sell local foods. These restaurants are mostly on the parts have big windows. Except Sweden some of these restaurants sell Sweden food products. In the most of Ikea stores there are a discount section before before cah desk part. There are products have little/high damages on the discount part. But you cant return these products. On America and Australian these parts launch as a market place. Despite in Hong Kong IKEA store products prices are high and products scales is so limited, they opened 3 OUTLET stores. These stores are too small but they have one way road as well. But Telford store doesnt have this template. There are 3 floor s which are independent from each other. Slide 16 PRODUCTS TV Unites Sofas and Armchairs gfhf Bookshelves Beds Wardrobes Baths and Buffets and Mattress Kitchens Tables and Chairs Offices ParquetsLightenings Textile and Carpets Food Accessories Home Organizations IKEA KIDHome Decorations BoKlok Prefabric Home *** IKEAs social commitment policy effect company especially in designs. Slide 17 IKEA SERVICES Transport Service Montage Service Kitchen Planning Children Services Kitchen Montage Free Park Space Gift Vouchers Slide 18 DESIGNERS 1)Wiebke Braasch 19)Annie Hulden 2)Monika Mulder 20)Saana Dahlman 3)Mia Gammelgard 21)Carina Bengs 4)Noboru Nakamura 22)Eva Lilja Lwenhielm 5)Ehln Johansson 23)Nicholas Cortolezzis 6)Tord Bjrklund 24)Jon Karlson 7)Niels Gammelgaard 25)Gillis Lungreen 8)Kazuyo Nomura 26)Hakan Olsson 9)Linda Svennson 27)Morten Kjelstrup 10)Anna Efverlund 28)Sigga Heimis 11)Knut - Marianne Hagberg 29)Mikael Warnhammar 12)Maria Vinka 30)Nicholai Wiig Hansen 13)Magnus Eleback 31)Richard Clack 14)Asa Grey 32)Allan stgaard 15)Thomas Sandell 33)Karl MALMVALL 16)Chris Martin 34)Anne Nilsson 17)Henrik Preutz 35)Tomas Jelinek 18)Annika Grottell 36)Nike Kassrolf. *** And they are working with lots of designers. *** IKEA always want its own designers to be infront of peopless eyes(Designers pictures in stores). Thanks to this situation IKEA can show to other people its designers are so important to them. Slide 19 CATALOGUE Ikeas most powerful part is its catalogs. On that catalogs you can find IKEAs philosophy with funny, clever, inspirational words and you can find informations about how to make a kitchen, how to design an office, products visuals with full accesories, kids products with lovely children, designers with their products, remember us how much trendy IKEA is, besides this these you can also find intercommunication info, details about social commitments of and answer of why IKEA. Slide 20 IKEA ORGANIZATION IKEA Group Management Board: Anders Dahlvig (CEO), Hans Gydell (CFO), Josephine Rydberg- Dumont, Mikael Ohlsson, Thomas Blomquist, Pernille Spiers- Lopez and Lars Gejrot. Slide 21 INTERNATIONAL ENLARGEMENT STRATEGIES Franchesing: In the world Inter Ikea System s,which has IKEAs intellectual property and has authorization to give frachesing, target is redoubling IKEAs attainablity with IKEAs stores that has IKEA style. Inter IKEA Systems B.V. is constantly evaluating new countries and following a long-term strategic expansion plan, which sets our priorities of future growth navigates where to put focus and when. Decision to enter a new country is made after a thorough market study and a franchisee will be carefully evaluated and approved. When selecting franchisees, Inter IKEA Systems B.V., among other things, evaluates the following: thorough retail experience extensive local market knowledge and presence corporate culture and values financial strength and ability to carry through the investment penetrating a country in full and in a large-scale retail environment format Slide 22 ENLARGEMENT More than 320 stores in more than 38 countries Slide 23 ENLARGEMENT First stores in countries. Slide 24 AWARDS FORTUNE's Top 100 companies To Work For 2005-2006-2007 Training Magazine Top 100 Company- Human Capital Development 2006 100 Best Companies for Working Mothers 2003-2005-2006 CLIO Awards Advertiser of the Year-2004 Working Mothers Magazine Family Champion Award-2003 Elle Decoration International Design Award / IKEA Kitchen-2003 American Envoirement Org. Evergreen Award For Pollution Prevention- 1998 Sweden Perfect Design Award/ STOCKHOLM series- 1985 Design Award/ Moment Sofa-1984 Slide 25 ADVERTISMENT Evinizin her eyi for Turkey *** IKEA uses especially aggressive and lurid components in their advertisment for trying to betray own brand. ***Most of advertisement in Turkey are preparing by TBWA. Slide 26 SOCIAL COMMITMENT They feature to envoirment and work on a serie with product made from recycled, non-used material. There is a campaign Plant a Tree. Clean the Air. Cool the Globe. with the coopartion of IKEA and American Forests. Ikea plant 100.000 trees on the beginning of the campaign. They support WWFs campaign Forests For Life. Also there are lots of forest of IKEA and there is a department for these forests in their constution. Ikea Group has a foundation called Stichting INGKA in Holland. Even if the owner of this foundation looks like INGKA Holding B.V., the real owner is IKEA group. IKEA design objects with recycled materials. IKEA products must be manufactured under acceptable working conditions by suppliers who take responsibility for the environment. All IKEA products for all markets globally shall comply with the chemical restrictions in the EU REACH regulation. IKEA continually works with chemicals and tries to phase-out the use of questionable substances. Some examples; IKEA has set an early voluntary ban on PVC (decided 1991) except in cables, an early ban of all organic brominates flame retardants in furniture (effective from 2000) and a ban on formaldehyde emitting paints and lacquers on all products (effective from 1993). IKEA is well aware of the new information duty regarding levels over 0,1% of SVHC (Substances of Very High Concern) in any product. If such products are identified, IKEA will not only state the name of the chemical as required by the legislation, but also explain the reason for why this substance is present in the product. We will also explain any possible implication for the user. Child labor does exist in countries where IKEA products are manufactured, but IKEA does not accept child labor at its suppliers or their sub-contractors. IKEA works actively to prevent child labor. IKEA has a special code of conduct called The IKEA Way on Preventing Child Labor, which is part of The IKEA Way on Purchasing Home Furnishing Products. Monitoring of compliance with The IKEA Way on Preventing Child Labor is done by IKEA trading service offices and with unannounced visits by KPMG to suppliers and sub-contractors in South Asia. And also they work with UNICEF and WWF for promoting humans life in 3. world country. Slide 27 COMPETITORS IN WORLD/ TURKEY WALLMART EURO MARKET DESIGN STANLEY FURNITURE HOME DEPOT GALFORM SEARS HABTAT MODOKO KOTA TEPE HOME STKBAL MOBLYA BAUHAUS Slide 28 SWOT ANALYSIS Strengths: Lower prices Advertisment (web site,catalogue,mouth to mouth adv.) Large product network and sytlies- flat packaging Opportunity to see model room One-stop shop IKEA restaurant, parking area for children and baby care rooms for mothers Self-service shopping Chance to return products in maximum 1 month Most of products have 10 year guarantee Weakness: Customers must mount products Less locations Inventory problem Opportunities: Ennobling numbers of stores Some of the furnitures can sell by retailers Selling products which are already mounted Threads: There is no areas for chaffering with competitors directly. Slide 29 FURNITURE SECTOR IN TURKEY Furniture sector has $ 6 billion size in total. Spread over four corners of Turkey are approximately 60,000 manufacturing and selling point. The distribution of these points according to the provinces as follows: Istanbul, 6458, 5361, Ankara, Izmir 2379, 2130 Bursa, Kayseri 740, other provinces, 12,278, retail 32,382 and 61,728 firms in total. The number of employees are officially around 258,213 in companies. Turkey's largest furniture brands are abundant in Kayseri. Istikbal, Bellona, Yatas, Kilim and Ipek productions are also in Kayseri. In other provinces, which produces the following brands: Tepe ve Seray (Ankara), Dogtas (Canakkale), Kelebek (Duzce), Alfemo ve Konfor (Izmir), Idas (Istanbul), Cilek (Bursa), Koleksiyon (Tekirdag). Other brands produce in Ankara furniture sites. Bursa Inegol also is home to many companies in terms of production. Slide 30 FURNITURE SECTOR IN TURKEY Our furniture sector is influenced by Italian furniture sector. As an influence of Italian sector design stands out. "Italian Style" so-called value, in almost all sectors, primarily related to design. In Turkish furniture sector, the impact of this interest is obvious. For consumers, the most important value that satisfy the aesthetic sense of them is to these furnitures, and no matter what is the price and quality levels. Cause of the largest increase in expectations for aesthetic reasons are "style" of the concept put forward by perceptual changes. Consumers no longer want to have a home that reflects their own style. The main element of having these kind of house is furnitures. Person's aesthetic expectation with the application of the person's style on furniture are naturally satisfied and these the cause-effect relationship, is the focal point of competition. The expected benefits, ergonomic furniture is becoming one of the main element. Because the number of items in houses decreases and the houses are getting smaller. Moreover, young people, instead of goods stacked on top as before, are choosing simple decor. This decrease makes capacity to use objects decrease. Because of that custom designs come out in personal prefences. Slide 31 ENTRANCE OF IKEA IN TURKEY IKEA brought furniture supermarket to furniture sector as an innovation. On these supermarket flat packages make products more ergonomical. Actually the target has been reached: You do your part.We do our part. Together we save the money. IKEA made change in competition area. On past companies such as quality or price competitiveness with companies like itselfs lost the advantage of price competitive advantage. Also this brings searching new advantages. Warranty is still standing in the middle as a not to be given value. But now montage can stand as a submission value and customer can except that. After IKEA lots of brand changed brand competition. These changings werent radical but they became true. Little firms had to search new competition advantages. IKEAs first lesson for Turkish customer is montage. Turkish customers generally complains about montage and stock problem. Slide 32 IKEA IN TURKEY IKEA has been acquiring from one point in Turkey since 1998. IKEA works with 40 factories in Turkey. After going into Turkey IKEA has been still working with same factories in Turkey. In Turkey Maya Group/Mapa Furniture has the rights of franchase of IKEA in Turkey. IKEA has 5 stores ( Umraniye, Bayrampasa, Izmr, Bursa and Ankara) in Turkey. IKEAs store in Umraniye is in the largest 30 IKEA store in the world. IKEA in Turkey has the same properties like the other IKEA stores in world. But also some adaptations exist for Turkey. In stores there are 6500 types of products in over 20 categories. IKEA had over 10 million visitors since today. After being in Turkey number of producers increased. IKEA is exporting Sweden meatball over Turkey. IKEA is looking for 3. store in Istanbul because of exceeding the estimated yield. IKEA has also started to sell from www.ikea.com.tr for the cities that havent IKEA store in their structure.www.ikea.com.tr Slide 33 MAYA GROUP/MAPA FURNITURE Basis of MAYA Group of Companies in early 1940s, plunged in imports and trade in synthetic yarn and textile industry. After more Maya Group had a participation with Dinarsu Carpet. One of the first synthetic yarn factory Istanbul Nylon Industry has been builded with Industry Inan Textile and with other partners in Avcilar Istanbul. In 1970s group decided to become stronger in real state. In 1987 group was entered to soap and cosmetic area. Company has been still in real estate business area. Meeting of Ikea and Maya Group is; in crysis time group decided to enter in different fields and they wanted to work in retail business area for 5-10 years plan. The results of these decisions company bought IKEAs frachise rights using knowing Turkey market advantages. Slide 34 THANK YOU