Description
This ppt is explaining about IKEA and how they design the sexy price tags
Case: How IKEA Designs Its Sexy Price Tags
Introduction
IKEA : The world's largest furniture manufacturer.
? Company sells flat packed furniture and accessories for
bathrooms and kitchens at retail stores around the world.
? IKEA was founded in 1943 by Ingver Kamprad in Sweden
and it is owned by a Dutch-registered foundation controlled by the Kamprad family.
Key Features of IKEA
? Good quality at a low price. ? IKEA sells furniture that's cheap but not
cheapo, at prices that typically run 30 to 50 percent below the competition's.
? IKEA has reduced its retail prices by a total
of about 20 percent during the past four years.
Summary of Case
Step 1:
Step 2:
Pick a Price
Choose a Manufacturer
Step 3:
Step 4: Step 5:
Design the Product
Ship It Sell It
Competitive Priorities of IKEA
? Low price with meaning. ? Modern design ? Environmental conditions
? Manufacturing under acceptable working
conditions. ? Both customers and co-workers must rely on IEKA.
Trends come and go, but combining a low price with good design and function never goes out of style.
Process For Developing A New Product
? Set the price first
? Specialists working together
? Choosing the right material ? Flat packages ? Cooperation with suppliers ? Cost and time effectiveness
? Safety
? Quality control
Process For Developing A New Product (contd.)
? Environmental considerations ? Internal competition ? Refining the promising design
? Average fill rate – 65%
? Maximum functionality at minimum cost ? Waste ‘a deadly sin’ ? Assembling by purchaser
Additional Features Of IKEA Concept
? Long Term relationship with suppliers
? Saving Raw Material
? Distribution and logistics ? Concept of FLAT ? Shifting Buyers ? Assembling products in store
? Easy Credit
? In-store Display ? Breath Taking Item (BTI)
Important Criteria For Site Selection
? Spacious site being able to accommodate ?Child care facility ?Restaurants ?Model homes, kitchens and bathrooms ? Connectivity with roads ? Proximity with rail network and harbor
doc_535720826.ppt
This ppt is explaining about IKEA and how they design the sexy price tags
Case: How IKEA Designs Its Sexy Price Tags
Introduction
IKEA : The world's largest furniture manufacturer.
? Company sells flat packed furniture and accessories for
bathrooms and kitchens at retail stores around the world.
? IKEA was founded in 1943 by Ingver Kamprad in Sweden
and it is owned by a Dutch-registered foundation controlled by the Kamprad family.
Key Features of IKEA
? Good quality at a low price. ? IKEA sells furniture that's cheap but not
cheapo, at prices that typically run 30 to 50 percent below the competition's.
? IKEA has reduced its retail prices by a total
of about 20 percent during the past four years.
Summary of Case
Step 1:
Step 2:
Pick a Price
Choose a Manufacturer
Step 3:
Step 4: Step 5:
Design the Product
Ship It Sell It
Competitive Priorities of IKEA
? Low price with meaning. ? Modern design ? Environmental conditions
? Manufacturing under acceptable working
conditions. ? Both customers and co-workers must rely on IEKA.
Trends come and go, but combining a low price with good design and function never goes out of style.
Process For Developing A New Product
? Set the price first
? Specialists working together
? Choosing the right material ? Flat packages ? Cooperation with suppliers ? Cost and time effectiveness
? Safety
? Quality control
Process For Developing A New Product (contd.)
? Environmental considerations ? Internal competition ? Refining the promising design
? Average fill rate – 65%
? Maximum functionality at minimum cost ? Waste ‘a deadly sin’ ? Assembling by purchaser
Additional Features Of IKEA Concept
? Long Term relationship with suppliers
? Saving Raw Material
? Distribution and logistics ? Concept of FLAT ? Shifting Buyers ? Assembling products in store
? Easy Credit
? In-store Display ? Breath Taking Item (BTI)
Important Criteria For Site Selection
? Spacious site being able to accommodate ?Child care facility ?Restaurants ?Model homes, kitchens and bathrooms ? Connectivity with roads ? Proximity with rail network and harbor
doc_535720826.ppt