Ikea in China

 Ikea in China Article


IKEA established in 1943, has become one of the largest household goods retailers in the world. Moreover, IKEA has always been thinking about providing the mass majority with well designed, good quality and low price home furniture15344. Through inspecting its online strategy and promoting mix, we can find why IKEA could be so powerful in the intense competition, which in turn we learn from.

Key Words: IKEA, marketing, strategy, marketing combine

Chapter A single Company Introduction

IKEA is one of the organization miracles in the 20th hundred years. From a small letter head delivering business in 43, Ikea simply used 60 years to achieve an excellent success, using more than 180 string stores in 42 countries and over seventy, 000 employees. In 2001, IKEA received 11 billion euros salary and over 1 ) 1billion net revenue, rendering it the biggest merchant of home articles in the world. It ranks 44th inside the TOP100 Interbrand list.

In 1998, IKEA opened the first retail outlet in Shanghai in china China. It started the 2nd store in Beijing inside the following season. Between the 12 months 1999 and 2003, IKEA kept the pace of setting up 1 new retail outlet in China and tiawan each year. In order to began to keep an increasing market share, IKEA speeded up to open at least two stores each year in mainland China and tiawan. By the year 2010, IKEA will have had 10 chain stores in China. Part Two Marketing Strategy

It truly is believed which the changing and innovative online marketing strategy makes IKEA succeed. IKEA's marketing strategy is usually to provide the mass majority with well designed, good quality and low cost household furniture. It seems that there is always a dilemma among " good quality” and " low price”, although IKEA causes it to be united. IKEA also is targeted on " experiential marketing + direct marketing + single-stop-type marketing”, which will help establish buyer perceived value.

To achieve the marketing strategy, IKEA works on the following three factors: market segmentation, target marketing and market positioning.

1 . Market Segmentation

In the Europe, IKEA rule the middle and lower income portion of the industry. It caters furniture with good quality and reasonable cost at the same time. It is fame and popularity is attributed to its right segmentation with the market.

However , the moment IKEA has mainland China and tiawan, it soon finds that the. Marketing segmentation does not work. The macro promoting environment is fairly different in mainland China. IKEA finds that the sensible price in those created countries seems to be a little bit high-priced in China.

Relating to China's low ingestion level, IKEA adjusts their market segmentation. It is aimed at the wealthy families in the big cities. IKEA's industry segmentation in China is " the white-collar workers who would like the high-grade products without enough money”. Why this segmentation works well in China needs to be concluded as follow:

1) IKEA meets white-collar workers' social and psychological needs.

2) IKEA brings Swedish culture to China.

3) IKEA's catalogs and guidance cater to consumers' pent up imagination.

IKEA understands its positive aspects well besides making full make use of the brand's popularity therefore it manages to select its finest market segmentation in Chinese suppliers.

2 . Concentrate on Marketing

Why IKEA chooses the affluent households in these big metropolitan areas as its market segmentation in China? The analysis which usually IKEA made about China's potential marketplace shows: 1) The rich families in big cities have the same fundamental want to boost their living condition and home decoration. 2) They have special keen on foreign life, habits and culture, including DIY. 3) They usually have got cars so it is convenient so they can go to IKEA's hall also to carry the home furniture home. 4) They have enough money to afford the price.

5) These households usually have...

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