IKEA

•NAME NUMAN ASHRAF

• REG NO BSME01173142
• SEC (D)
 IKEA HISTORY
• In 1943, IKEA was founded by Ingvar Kamprad
• Based in Sweden
• World's largest furniture retailer
• World’s leading home furnishings retailer
• IKEA numbers 1,04,000 employees in 267
stores in 45 countries
CONT.….
• 1960 THE SWEDISH MARKET WAS SATURATED
• DECIDED TO SATURATED THE BUSINESS OUTSIDE THE SWEDEN
• IKEAS LOW RESPONSIVENESS TO LOCAL NEED STRATEGY SEEMS TO WORK WELL
IN EUROPE
• BUT IN 1985 IKEA ENTER THE US MARKET AND FACE SEVERAL PROBLEMS.
 CUSTOMERS
• Market size

– First stores were opened in Norway and Denmark

– Germany - IKEA's biggest market ( 45 stores)
– United States (37 stores)
– France ( 28 stores)
– Presently IKEA has 316 stores in 45 countries

• Top 5 sales countries

Germany 19 %
USA 11 %
United Kingdom 11 %
France 9 %
Sweden 8 %
  HOW IKEA BECOME SUCCESSFUL

Cost Efficient

 Low price
 no compromise in quality
 Good relationship with suppliers
 Maintained long-term partnerships with its suppliers
 Ensures that the company has access to high-quality materials at
reasonable prices

 Marketing expertise
 Market positioning statement is “Your partner in better living.
We do our part, you do yours. Together we save money.”
 Market on its strengths – based on offering a wide range of well
designed, functional products at low prices
 STRENGTHS

 Brand Image
 IKEA ranked 41st among the best global brands
around the world in 2006 with a brand value of
$8,763
 strong internationally known brand attracting key
demographic customer groups
 strong brands enhance customer loyalty and lead to
repeat purchases
 Flat packing that helps in management

Flat packaging, which reduces shipping costs, minimizes

transport damage, increases store inventory capacity, and
makes it easier for customers to take the furniture home
themselves, rather than needing delivery.
 Easy to assemble
 One stop shopping
 Friendly atmosphere and store layout
 One stop shopping
 CUSTOMER SERVICE
• Restaurant in store
IKEA exit bistro
Swede Shop
IKEARestaurant

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

• Design Advice
Office Planning
Kitchen Planning
Home FurnishingAdvice

• Store Atmosphere
Easily Located Products
Browse through showrooms and try out products
Delivery Services available or take home products immediately
 OPPORTUNITIES
IKEA are moving from International to global status
through the development of Asia and Eastern
European models
Targets all levels of the market, upper, middle and
lower classes
Sourcing from China is one opportunity. Sourcing
from low cost countries like China would reduce its
costs and enable IKEA to concentrate on increasing
its market share
Bright prospect of online sales
• Benefits and Cost

– Gain from good quality at low cost

– Stylish and varied designs
– Friendly atmosphere
– One stop shopping
THANK YOU

KEEP ENVIRNMENT NEAT AND

CLEAN