Channel Distribution of Ikea Essay

1856 Words Aug 5th, 2009 8 Pages
Introduction
IKEA is a privately-held, international home products retailer that sells flat pack furniture, accessories, and bathroom and kitchen items in their retail stores around the world. The company, which pioneered flat-pack design furniture at affordable prices, is now the world's largest furniture manufacturer. IKEA was founded in 1943 by Ingvar Kamprad in Sweden and it is owned by a Dutch-registered foundation controlled by the Kamprad family. IKEA is an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his home county. The company distributes its products through its retail outlets. The chain has 315 stores in 36 countries, most of them in Europe, the United
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So, most of people live in small towns and do not earn much. But IKEA is interested in those, who live in cities and towns, so, it is better to set IKEA shops first, in the capital, Kuala Lumpur.

It has sense to set up a shop not far from at least one of these main shopping areas. Or, it could be set not far from the centre in one of those areas, where most of houses are situated, and then in the biggest cities in states with the highs level of urbanization, Therefore can easily attract customer to come and visit the store.

Customer are well aware about the product that sell in IKEA Malaysia because they did buy the product before and even heard from other source such as their friend, internet, and advertisement .Customer that bought IKEA product normally prefer repeated purchase rather than reject to buy the product from IKEA because IKEA provide quality at the lower price and has much more option for the customer to choose which product they want.

Customer that visited IKEA are mostly like users and regulars users because future customer interest on buying some product and the need of the product lead them to come to the store because they know IKEA store can provide the best environment for them to search the product. To facilitate shopping, IKEA provides catalogs, tape measures, shopping lists and pencils for

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