Patty Brantley

Amanda Randall

Hien Nguyen

The IKEA Vision

• “The IKEA vision is to create a better everyday life for the many people. We make this possible by offering 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.”

Location

Seattle, WA601 SW 41st St.

Renton, WA 98057

store hours

Mon-Fri 10am-10pm

Saturday 9am-10pm

Sunday 9am-9pm

Portland, ORNear the Portland Airport

opening in Spring 2007!

-280,000 square-foot

-approximately 1,200 parking spaces

-feature four model homes

-50 room settings

-supervised children’s play area

-250-seat restaurant serving Swedish specialties

History

• 1943 IKEA is founded by Ingvar Kamprad.

• Swedish retailer • 1955 IKEA begins designing its own furniture. • 1985 The first IKEA store opens in the USA. • 1993 IKEA reaches 114 stores in 25 countries.

*Company Motto:“Affordable Solutions for Better Living”

*The IKEA group has 90,000 co-workers and

operates in 44 countries.

*World’s leading home

furnishings retailer

*Low-cost home products

*Assembled products by the consumer

$$$

• sales by region Asia + Australia 3 % North America 16 % Europe 81 %

• top 5 sales countries Germany 19 %USA 11 %United Kingdom 11 %France 9 %Sweden 8 %

Sales for the IKEA Group for the financial year 2004 (1 September 2004 - 31 August 2005

Ikea & the Environment

• Use of wood-recyclable, biodegradable and renewable material

• Select wood that is from verified, well-managed forests that have been certified

• Free disposal of light bulbs• Minimize costs by reducing wastes-saving raw material,

energy and other resources• Selecting the right environmental friendly products• Use leftover material from one product to another• Employees are “environmental co-ordinators” working in

different ways to increase environmental awareness

Outlook for 2007

• The Ikea group plans to focus on the following issues for 2007:– Reduced Prices

– Continued Quality assurance at all levels

– Expansion

– Continued focus on environmental and social issues

Customer Service• Restaurant in store

– IKEA exit bistro– Swede Shop– IKEA Restaurant

• Child Care– Supervised Playroom– Baby Care Room– Food Warming Facilities– Children’s Meals

• Design Advice– Office Planning– Kitchen Planning– Home Furnishing Advice

• Store Atmosphere– Easily Located Products– Browse through showrooms and try out

products– Delivery Services available or take

home products immediately

• Company Website– Ask Anna– Product Recall Information– IKEA Recycling Information– Online room planners – Store Locator

Marketing Mix

• Product– Everything for the home

– Kitchens, bathrooms, sofas, chairs, beds and textiles, rugs, floors, lamps, plants, and everything in between

– Displayed to show design possibilities with IKEA products

– Assembled by the customer

• Place/Distribution– Merchandise sold in 254 Free

Standing IKEA stores in over 44 countries as well as on the internet

– Exclusive distribution plan

 enlarge image

Marketing Mix• Promotion

– THE IKEA CATALOGUE is the most important marketing channel. 2007’s catalogue was printed in 175 million copies in 55 editions and 27 languages.

– Other promotions include their seasonal sales, internet deals and television advertisements

– IKEA Credit Card

• Price– Low to moderate pricing depending on item– Prices range from $9-$19.99 for simple lamps to over $4,000 for complete rooms

Swivel Chair $129.00

Leather Sofa $999.00

Chandelier $69.99

Target Market

• Diverse group of men and women

• Age : 25-45• $35,000-$65,000• Located in Major

Cities in the US as well as Internationally

• Creative Inspiration and DIY

Competition

• Intratype Competition– Crate and Barrel

– Pier 1

– Pottery Barn

– Furniture retailers utilizing similar store layouts

• M.Jacobs

• Ashley’s Home Furnishings

• Ethan Allen

• Intertype Competition– Home Improvement Stores

• Home Depot

• Jerry’s

– Department Store’s

• Meier & Frank

• Macy’s

– Discount Retailers

• Wal-Mart

• Fred Meyers

Store layoutStore layout

• Original design – warehouse on the lower levels– Showroom and marketplace upper levels

• One way layout- leads customers along the long natural wayLoop layout

• Sequence involves:– Furniture Showrooms– Housewares (market-hall)– Warehouse (self serve)

Tour of IKEA

Which arrive at the cashier’s station to make payment

Ikea Includes

*Restaurants – Swedish food

• Meatballs – Local cuisine

*Interactive Website

*Catalog

• Normally at one place in the store where there are large windows.

Works Cited

• Ikea. Com

• http://en.wikipedia.org/wiki/IKEA

• www.answers.com/topic/ikea

• www.youtube.com/watch?v=TDoWr9NdtOw