...Author Author Strategic Marketing Plan for IKEA in INDIA [Document subtitle] Strategic Marketing Plan for IKEA in INDIA [Document subtitle] Contents Introduction 2 About IKEA 2 1.0 Analysis of Indian Market 3 1.1 Micro Analysis 3 1.1.1 PESTEL Analysis 3 1.2 Micro Analysis 4 1.2.1 SWOT Analysis 4 1.3 Impact on Hofstede Culture Dimension 5 a) Collectivism vs Individualism 6 b) Femininity vs Masculinity 6 c) Avoidance of Uncertainties 6 d) Power Distance 6 1.4 Porter’s Diamond Model 7 2.0 Global Marketing Objective 7 2.1 Porter’s Generic Strategy Mix 8 2.2 Ansoff’s Marketing Strategies 8 3.0 Mode of entry 9 4.0 7 P’s of Marketing 10 a)Product 10 b) Process 10 c) Price 10 d) Physical evidence 11 e) Place 11 f) People 11 g) Promotion 11 References 0 List of Figure Figure 1: SWOT Analysis 5 Figure 2: Hofstede Dimensions 7 Figure 3: Comparison of Entry Mode 9 Introduction India is developing country, populated with 1.2 billion people. India’s economy is of very worthwhile. The current analysis shows India is expected to be considering in Top 5 economies in the world. Due to powerful economic development in past few decades, the living standards of Indian nation are improved and improving day by day. The people of India are establishing themselves in the field of information technology and in other industries. They also step up in urbanization and trend of using foreign band has increased much. The retailing...
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...[pic] Operation Management Assignment Task 1 4 Vs of IKEA FURNITURE Name Saqib Ali Enrolment ID 30113460 Submitted to Dr Maria Zenaida Mullin Submission date 14 Aug, 2015 IKEA FURNITURE OUTLETS Executive summary Brief summary findings It’s difficult to manage furniture store like IKEA because lot of employees are required to run the operations smoothly and it’s a big problem to manage bigger workforce, so that’s why it’s one of the biggest issue for the IKEA furniture to handle the big workforce. IKEA furniture retail stores having very big and complicated store structure, which is also one of main problem to organize, in any worst case like fire into the store it’s difficult to move everyone out of the retail store. And big furniture Retail stores like IKEA also having a lot of products like chairs, beds, sofas etc. So in case, sales of the products gone slow all of the product gone dusty and its difficult to maintain all furniture clean and in good condition. (Furniture World 2012). Conclusion After analysing all the operation of the IKEA furniture, I am able to find out IKEA furniture emphasis a lot on efficiency and effectiveness of its operation management. The company has implemented its operations management strategy in all of its business process and operations to maintain low cost model. IKEA furniture’s is one of the best examples of the corporations who concentrate high effective operation management. ...
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...Situation Analysis IKEA vision “To create a better everyday life for the many people” truly reflects corporate philosophy of this value-driven company with a passion for life at home. Started by 1st generation entrepreneur Ingvar Kamprad , In 2002 IKEA was world’s top furniture retailer with 286 million customer, $12 Billion sales and 154 stores in 22 countries. Even though IKEA was founded in 1943 , the self service store journey started in 1965 and by 2002 IKEA became the world’s most prominent retailer. IKEA core culture of cost cutting sensitivity, reduction of wastage has remained consistent over the years which has been exhibited over the years through company’s products, packaging, processes and people. Alignment of key consumer trends, low production cost, global sourcing, Scandinavian heritage is important for sustainable competitive advantage of the company. IKEA’s followed a well defined product strategy which was based on identifying consumer trends and then building products across these trends. The company followed a matrix style approach which consisted of pricing and style . This matrix was different for each products. This matrix helped identified the products retail price . The company worked with 1800 suppliers across 50 countries. The company’s different units and entire operations focused on Quality products at low prices. Key Issues Changes in consumer taste and preference -Over the years IKEA refined its product design, retail...
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...STRATEGY IKEA Case Study JWI 540, Assessment 1: Strategy Professor: Dr. D 7/21/2013 Muhammad Akmal Khan Key Issues: IKEA was founded by Ingvar Kampard in Sweden in 1943. From a humble local shop of basic household good, the company rose to its height. By 2002, the company was world’s largest retailer in furniture business. It had the sale volume of about $12 billion. Operating 154 stores in 22 countries, the company was serving 286 million customers a year. The company undoubtedly owed the epic success to the dynamic leadership of its founder. Kampard’s focus was to supply low priced goods to the customers, as against other outlets operating individually, but was fairly expensive. The people needed inexpensive items for home furnishing. Kampard saw the opportunity ideal to offer good design products at low price meeting the need of majority of the population. He met resistance from his competitors by one mode or the other but overcame it by wisely dealing it. The company owned small and independent manufacturers of furniture to buy the stuff. Such purchases were low cost thereby benefiting the company and customers. An outlet opened in Stockholm in 1965 was built on a very large area located in the outskirts of the city it had ample space for car parking. The customers liked it as they were in the habits of coming in their cards. The showroom was self serviced. The sale items boar explanatory tickets while on display. The catalogues containing the information about...
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...well known company – IKEA. Before I go any further I am going to shortly describe its products and concept. IKEA is a Swedish company founded in 1943 is multinational group that designs and sells ready-to-assemble furniture (beds, chairs, desks) as well as traditional Swedish food. IKEA owns stores in 43 countries but I am going to focus only on Denmark. The IKEA Concept starts with the idea of providing a range of home furnishing products that are affordable to the many people, not just the few. It is achieved by combining function, quality, design and value - always with sustainability in mind. As it a large company it is not always easy to keep up with its service and possible mistakes can occur and therefore it is needed to take into account the competitiveness. 1.1 Problem Statement I am going to answer the following questions and statement; Identification - what are the gaps within service sector in IKEA? Threat – How does IKEA deal with competitiveness in Denmark? Service level –I am going to give suggestions how service could be applied to customers! Methodology In order to complete the task I was given I have to find many kind of detailed information about the company so I can give the answers and analysis of problems that I have stated. IKEA is a large company which give easily access to wide range of information for many kind of topics given. 1.2 An overview of competitiveness First I will have look into competitiveness in IKEA and to do so I must...
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...IKEA Analysis Report Your Name Argosy University IKEA’s Marketing IKEA has a unique perspective with the approach they use in marketing. The starting point begins with customers’ needs (IKEA, 2013). The focus is on local marketing versus mass marketing and competitors. This differentiates IKEA from other home good suppliers by anticipating what consumers are seeking and many times providing exactly they desire before they realize they need it. The marketing task is simple, “To build the IKEA brand and inspire people to come to the stores” (IKEA, 2013). The marketing mix is a combination of items that work together; it is often referred to as the four p’s in marketing. Price, Promotion, People, and Process are the four p’s that IKEA has embraced. Price is within their controls, they offer quality home goods at low affordable costs. They are able to keep costs low with designing from within, sourcing raw materials for production, and selling in their own stores. Promotion is achieved with iconic bold blue and yellow colors signifying a brand with value. IKEA uses many forms of media in their promotional marketing strategy; the annual catalogue is the most popular. The catalogue highlights many new home goods and accessories with interior suggestions that are attention grabbing and captivating. The catalogue has become a staple of what is new and trending in the homes of many customers. IKEA’s website is another interactive way it reaches a distinct local market, along...
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...Summary IKEA is a Swedish privately held, international home products company. It provides high-quality furniture at a low cost. It was founded in 1943 by 17-year-old Ingvar Kamprad (the company’s name is an acronym of founders name IK, the farm, where he grew up Kamprad, and his home parish – Agunnaryd). Since than company expanded into 28 countries and almost 300 stores. Ikea’s success is based on its marketing strategies, e.g. a furniture catalogue printed in 17 different languages, or its environmental policy. Ikea offers a wide range of products in one shopping location and of course its biggest plus is low prices, which make products available and affordable for many people. It has launched new sustainability plan to take the company through to 2015. This will combine social, environmental and economic issues. As many others world companies Ikea uses SWOT analysis to define its future actions, to see a precise picture of the internal situation or to examine how its marketing strategy should develop to expand to new markets. KPI (1) 1. Increasing use of renewable materials 2. Make better use of both raw materials and energy 3. Volume commitments 4. Economies of scale 5. New technologies 6. Reducing transportation cost Questions & Answers 1. Describe what is meant by a SWOT analysis. SWOT analysis - specifying the objective of the business venture or project and identifying the internal and external...
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...Drivers of Brand Commitment: A Cross-National Investigation Name Institution Drivers of Brand Commitment: A Cross-National Investigation Introduction Brand commitment is the degree of psychological links between consumers and service or products they purchase. In fact, commitment towards a brand is the loyalty of consumers towards certain services and products produced by distinct businesses. Brands are a vital component of businesses, this is because they develop customer relationships which eventually results in performance of the business (Eisingerich & Rubera, 2010). Customer brand loyalty is repetitive purchasing of the particular service or product with biasness over other commodities attributed to the psychological evaluation by the consumer. Businesses are thus tasked with cultivating high brand commitment by using brand drivers to enhance performance. Brand drivers are attributes which generate strong impacts on the customer purchasing behaviors (Perrey, Spillecke & Armstrong, 2011). Brand commitment can be further elaborated as a consumer’s psychological pledge to have a long term attachment in terms of relationship towards a service or product they purchase into future times (MacInnis, Park, & Priester, 2014). Brand commitment is the supportive longevity behavior that a consumer exudes intentionally for a service or product. Initially, brand commitment starts with a consumer wanting to possess the particular service or goods which later...
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...furnishing products at prices so low that as many people as possible will be able to afford them." Introduction At the outset, it may be useful to characterise IKEA in terms of the characteristics of demand (also known as the four Vs, see Slack et al. p 20). First, IKEA is clearly a high volume operation – as indeed most international retailers are – which lends to systematising operations but which implies capital intensive processes and therefore cost considerations will be crucial. Second, IKEA offers a large number of products (up to 14000 depending on the country/store) so there is high variety in the production process which not only leads to the need for complex and flexible processes but also entails high unit costs. Third, variation in demand will however be low, or at the least predicable (holiday periods for example) so advanced planning is possible which eliminates the need to set resources aside as a “capacity cushion” for unexpected demand. Lastly, IKEA – again as most retailers – have high process visibility, or in other words display a high degree of direct customer experience, which underlines the importance of dedicating sufficient attention to the shopping experience in all its facets. In what follows, and in line with the questions for this TMS, the implications of the five performance objectives to IKEA will be examined as well as the company’s key operational decisions that have impacted on these objectives. Thereafter 1. Question 1 There are five...
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...Case Analysis: Kamprad, Leader of IKEA MBA-530 - Organizational Behavior Introduction – Ingvar Kamprad Sustaining a healthy lifestyle consists of having a rewarding job surrounded by great leadership. A defining career is what Ingvar Kamprad has made for himself and has helped others to achieve. His sole purpose was not to be extremely wealthy, although he is. Mr. Kamprad chose to follow his values, including a responsible work ethic that began from a young age. Born within a class of people that thrived on hard work, Mr. Kamprad understood the meaning of dedication. He started as a teenage entrepreneur selling small office accessories and greeting cards “ . . . using the local milk van to deliver orders” (Chan, 2013). Regardless of the size of his business then, Mr. Kamprad had a clear vision for better things to come. The following examines Mr. Kamprad and how he built IKEA into a corporate empire. He is a prime example of an excellent leader to his people and a well-informed manager of his business. Managing business and leading people have important distinctions however. Colleagues respect Mr. Kamprad as a person who genuinely cares about his employees with a talent for influencing them to succeed. There were mistakes along the way, but a proven leader like Mr. Kamprad faced them head on. IKEA, with its expansively designed stores and loyal customer base, was ranked in Forbes (2013), as “#41 World’s Most Valuable Brands”. Leading vs. Managing Managing and leading are...
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...Introduction: The company Fantastic furniture is Australian operated company which is the branch for the Fantastic holding limited established with a motto to provide every Australian household and the offices with the furniture that suits different budget levels. Module 1 Q. Identify the mission and the major goals of the company. Fantastic furniture being the part of the fantastic holding limited (FHL) and serving people with the cheap deals and offering the low prices over the furniture range is renowned for its best value of money furniture in Australia. The company aims to provide its customers with the variation in the range of sofas, entertainment, bedroom, storage, dining and many more range of the office furniture at daily affordable prices. The company is given a name phrase of “the package deal king”. The company offers the consumers with the different furniture packages to suit a range of different budgets and styles. The organization convey a mission that make each day phenomenal, with furniture to suit each financial plan and style its simple to make a home you adore. The company is claimed as the Australia’s best value furniture and bedding with its extensive range available (FHL and Fantastic Furniture websites). Q. Who is the CEO of the company? Evaluate the CEO’s leadership capabilities. On 1st August 2014, Ms. Debra Singh was placed as the new CEO of Fantastic furniture under the fantastic holding limited (FHL 2014). She is the former...
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...14 List of Figures Fig: 2.0 Diagrammatic representations of Hofstede’s cultural dimensions...............................7 AN ANALYSIS OF THE CULTURE OF AN ORGANIZATION 1.0 Background to the Organization Organization culture is a predominant aspect of an organization’s internal environment Azhar (2003). Culture, to some extent, influences performance and efficiency in an organization Rousseau (2000). Every organization has its unique culture that differs from that of other corporate Schein (2004). For purposes of this report I chose IKEA group, I will conduct an in-depth analysis of its culture using the appropriate cultural analysis frameworks and dimensions. IKEA group is a multinational corporation that has a strong corporate culture that is entrenched in its core values. IKEA has its roots in Sweden; it was incorporated as Inter IKEA Systems B. V. in 1983 in the Netherlands. The primary goal or idea of founding IKEA was to make it conceptualize and operationalize IKEA business model in what has...
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...14 List of Figures Fig: 2.0 Diagrammatic representations of Hofstede’s cultural dimensions...............................7 AN ANALYSIS OF THE CULTURE OF AN ORGANIZATION 1.0 Background to the Organization Organization culture is a predominant aspect of an organization’s internal environment Azhar (2003). Culture, to some extent, influences performance and efficiency in an organization Rousseau (2000). Every organization has its unique culture that differs from that of other corporate Schein (2004). For purposes of this report I chose IKEA group, I will conduct an in-depth analysis of its culture using the appropriate cultural analysis frameworks and dimensions. IKEA group is a multinational corporation that has a strong corporate culture that is entrenched in its core values. IKEA has its roots in Sweden; it was incorporated as Inter IKEA Systems B. V. in 1983 in the Netherlands. The primary goal or idea of founding IKEA was to make it conceptualize and operationalize IKEA business model in what has...
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...A Field Book of Consumer Behavior Mount Ida College BA513 1H Consumer Behavior 09/27/2014 Table of Contents Concept page Positioning by Association with Competitors……........................……………............3 Positioning by Brand Personality …...….............................................................….…..............4 Positioning by Consumer Benefits.................................................................................5 Positioning by Price.......................................................................................................6 Positioning by Brand User.............................................................................................8 Positioning by Brand Personality...................................................................................9 Consumer Lifestyles and Product/Consumption Constellations....................................10 Repetition.....................................................................................................................11 Consumer Familiarity or Experience............................................................................12 Factors Influencing Gestalt Perception........................................................................13 Perceptions of Product/Service Quality........................................................................14 Perception of a Pioneer Brand......
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...|DIPLOMA : BUSINESS ADMINISTRATION | COURSEWORK - Questions |Year |2013 |MONTH |JUNE | |Subject |BDM1404 OPERATIONS MANAGEMENT (OM) | |Weightage |30% |Submission Date |24th JULY 2013 | Regulations A. Late Submission • A 10% deduction per day of total coursework marks (excluding weekends and public holidays). • Late submission between 5 to 10 days, results in a 50% deduction of total coursework marks. • Late submission past 10 days results in an automatic 0% for coursework and the student will be barred from the final examination. B. Deliverables Students must submit all materials supporting their coursework listed in the deliverable section. ▪ The coursework must be done in a group and must be entirely your own work. Please make sure that you are aware of the rules concerning plagiarism. If you are unclear about them, please consult your program coordinator/lecturer. ▪ The coursework should exhibit formal research skills i.e. with a table of content, proper citations, references, and appendices. ▪ The coursework write...
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