1.0 INTRODUCTION
IKEA, the world largest furniture retailer founded by Ingvar Kamprad in 1943. The business concept of IKEA is to create a better life every day for people. IKEA business idea is to keep the price low of the well designed and functional furniture so that everyone can afford them. IKEA have approximately 147,000 workers worldwide and t
2.0 MARKETING MIX
The marketing mix is a model used when considering the range of activities necessary to construct and implement a comprehensive marketing strategy. It is commonly depends on the four factors which are “product, price, place and promotion.”
2.1 Product
IKEA’s product meets the customer needs and aim prospects and provide various option to the customers. The concept of IKEA makes …show more content…
Customers are faced with many option and alternative. Customers often will choose the lower prices from the wide choice of company and this will cause price war in between the company and increase the competitiveness. However, the pricing technique is determined by IKEA and lower price causing the customer will not switching to an alternate easily. In addition, the flat packaging that introduced by IKEA making it more convenient for buyer which also making IKEA unbeatable. (Garnica et al., …show more content…
When IKEA opened their first store in Shanghai, many of the customers visit their store without buying because IKEA’s product is too expensive for the Chinese customers. IKEA has become a luxury brand in China as the local firm provide lower price products. The challenge faced by IKEA China including the difference in business practice and the economic condition in China. (Web.stanford.edu, 2008) The difference in living lifestyle and cultural worldwide also another challenges for IKEA. The products design might be popular in Sweden but it also might fail Asia country. For example: SULTAN HÖGBO series are designed as two singled bed put together to form a double-sized bed. IKEA emphasize that this concept can make sure customer have a good sleep without disturbance by the person you’re sharing bed with. But in Chinese culture, a couple who sleep separately indicate a bad relationship between the couple and this will bring bad luck from theirs believe. In addition, IKEA also facing challenge from local competitor especially in China and India. These countries have competitive advantage in cheaper resources. Therefore, cheaper furniture offered by producers from these countries will cause IKEA to lose its attractiveness. (Dudovskiy, 2012) The other challenge faced by IKEA is the environmental issue. Although IKEA encourage mass consumption
IKEA, the world largest furniture retailer founded by Ingvar Kamprad in 1943. The business concept of IKEA is to create a better life every day for people. IKEA business idea is to keep the price low of the well designed and functional furniture so that everyone can afford them. IKEA have approximately 147,000 workers worldwide and t
2.0 MARKETING MIX
The marketing mix is a model used when considering the range of activities necessary to construct and implement a comprehensive marketing strategy. It is commonly depends on the four factors which are “product, price, place and promotion.”
2.1 Product
IKEA’s product meets the customer needs and aim prospects and provide various option to the customers. The concept of IKEA makes …show more content…
Customers are faced with many option and alternative. Customers often will choose the lower prices from the wide choice of company and this will cause price war in between the company and increase the competitiveness. However, the pricing technique is determined by IKEA and lower price causing the customer will not switching to an alternate easily. In addition, the flat packaging that introduced by IKEA making it more convenient for buyer which also making IKEA unbeatable. (Garnica et al., …show more content…
When IKEA opened their first store in Shanghai, many of the customers visit their store without buying because IKEA’s product is too expensive for the Chinese customers. IKEA has become a luxury brand in China as the local firm provide lower price products. The challenge faced by IKEA China including the difference in business practice and the economic condition in China. (Web.stanford.edu, 2008) The difference in living lifestyle and cultural worldwide also another challenges for IKEA. The products design might be popular in Sweden but it also might fail Asia country. For example: SULTAN HÖGBO series are designed as two singled bed put together to form a double-sized bed. IKEA emphasize that this concept can make sure customer have a good sleep without disturbance by the person you’re sharing bed with. But in Chinese culture, a couple who sleep separately indicate a bad relationship between the couple and this will bring bad luck from theirs believe. In addition, IKEA also facing challenge from local competitor especially in China and India. These countries have competitive advantage in cheaper resources. Therefore, cheaper furniture offered by producers from these countries will cause IKEA to lose its attractiveness. (Dudovskiy, 2012) The other challenge faced by IKEA is the environmental issue. Although IKEA encourage mass consumption