anjalicutek
Anjali Khurana
Marketing Mix of IKEA : IKEA (Ingvar Kamprad Elmtaryd Agunnaryd) is a privately held, international home products company that designs and sells ready-to-assemble furniture, appliances and home accessories. The company is now the world's largest furniture retailer.[2]
IKEA was founded in 1943 by 17-year-old Ingvar Kamprad in Sweden, named as an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his home parish (Agunnaryd, in Småland, South Sweden).[3]
The groups of companies that form IKEA are all controlled by INGKA Holding B.V., a Dutch corporation, which in turn is controlled by a tax-exempt, not-for-profit Dutch foundation.[4] The intellectual property of IKEA is controlled by a series of obscure corporations that can be traced to the Netherlands Antilles.[5]
INGKA Holding B.V. owns the industrial group Swedwood, which sources the manufacturing of IKEA furniture, the sales companies that run IKEA stores, as well as purchasing and supply functions, and IKEA of Sweden, which is responsible for the design and development of products in the IKEA range. INGKA Holding B.V. is wholly owned by Stichting INGKA Foundation, which is a non-profit foundation registered in Leiden, Netherlands. The logistics center Europe is located in Dortmund, Germany and Asian Logistic center is located in Singapore along with its IT base.
Inter IKEA Systems B.V. in Delft, also in the Netherlands, owns the IKEA concept and trademark, and there is a franchising agreement with every IKEA store in the world. The IKEA Group is the biggest franchisee of Inter IKEA Systems B.V. Inter IKEA Systems B.V. is not owned by INGKA Holding B.V., but by Inter IKEA Holding S.A. registered in Luxembourg, which in turn is part of Inter IKEA Holding registered in the Netherlands Antilles. The ownership of the holding companies has not been disclosed.[5]
The company which was originated in Småland, Sweden, distributes its products through its retail outlets. As of October 2010, the chain has 313 stores in 38 countries, most of them in Europe, North America, Asia and Australia. The IKEA Group itself owns 276 stores in 25 countries and the other 37 stores are owned and run by franchisees outside the IKEA Group in 16 countries/territories.[6] 2006 saw the opening of 16 new stores. A total of at least 15 openings or relocations are planned for 2010.[7]
In some languages (such as Swedish, Danish, Norwegian, Dutch, German, Greek and Spanish), "IKEA" is pronounced something like [iˈke.a][citation needed], but in English it is /aɪˈkiː.ə/, similar to the word "idea." As such, IKEA brought action in the Supreme Court of British Columbia successfully preventing a competitor in Victoria from using the name "Idea."[citation needed] Its Chinese name is "宜家" (yíjiā), which literally means "fit for home" in written Chinese and sounds like the phrase "right now" in Cantonese pronunciation.
The IKEA Website contains about 12,000 products and is the closest representation of the entire IKEA range. There were over 470 million visitors to the IKEA websites in the year from Sep. 2007-Sep. 2008.[8]
the IKEA marketing mix
IKEA has a long tradition in marketing communication focusing primarily on printed media which has proven its values and success to the company over the years. Other media now being used to an increasing degree include TV, radio, and internet based communication.
The IKEA marketing mix consists of 4 different areas of focus.
the IKEA product range is our starting point. All other marketing communication is used to amplify the product range.
the store is the IKEA retailers primary medium for presenting and communicating the range, its low price and the IKEA concept.
the IKEA catalogue is the main marketing tool with around 70% of of the annual marketing budget being spent on this alone. It is produced in 38 different editions, in 17 languages for 28 countries. 110 million catalogues were circulated last year - three times higher than that of the Bible, with 13 million of these being available in the UK.
the IKEA advertising, PR and other types of communication are complements to the IKEA range, store and catalogue are used to spearhead the penetration of our target market
the UK marketing department
IKEA advertising in the UK is intended to raise awareness of the IKEA brand and drive traffic to the stores. Some people love our unique style of retail advertising, some hate it, but everyone who sees our advertising has a strong opinion and subsequently it provokes conversation and debate. Despite having some of the most controvertial television advertising campaigns in the UK, we have raised awareness of our brand, let people know we are different to other home furnishing companies and most importantly increased sales. The advertising department includes all aspects of advertising and brand communication from television advertising and sponsorship to magazine and radio promotions. Advertising is used to support many different areas of the business including brand awareness, store themes, catalogue drops and store openings.
brand research
To remain at the forefront of a changing market we need as much research on customers, the home furnishing sector and our competitors, as possible. Many different areas of market research, reports and statistics both internal and external are taken into consideration when planning any communication or marketing campaign.
room magazine
This is a European IKEA magazine that is available in all stores in Europe. It is also mailed out to 150,000 IKEA Home Card holders in the UK. It contains lifestyle features on IKEA customers and how they live, product news, and tips and ideas for the home. Similarly to the catalogue, this is produced centrally, but each country has control of a number of pages to communicate their country specific messages.
IKEA food services
The IKEA restaurants are important in providing our customers a place to eat and relax while shopping. There are 3 different concepts offering food in IKEA stores in the UK currently. The main restaurant serves meals based on our Swedish heritage, with traditional dishes such as Gravadlax and meatballs with Lingonberry relish. There are also bistro areas which sell localised snacks such as; hot dogs in the UK, baguettes in France, and pizza in Italy. The IKEA Swedish food markets are also in every store and encourage customers to take home a taste of Sweden. The wide range of traditional Swedish foods helps customers understand our Swedish origins and also lives up to our low price promise.
internet
IKEA.com is the global site where you have an overview of IKEA as a company. From the global site it is possible to access all local sites. One of the main tasks of the internet is to display product information and availability which is updated constantly. Background information about the company and store information is also crucial. Each store also has their own space with contact details and directions, events, special offers and local information.
communication and interior design
Com-in is a "unique" resource who work actively to secure our competitive advantage through the development of the IKEA retail concept and the store as a media. All Com-in specialists are from either an interior design background or visual merchandising, and are responsible for the presentation or our product offers using all current range presentation medias and techniques. The Com-in department gives the store inspiration and vitality and works closely with the store sales and logictics teams to ensure our customers always see something new and exciting, and want to come back again and again.
public relations
The primary concern of this function is to protect the IKEA corporate identity but also to communicate our vision, business idea, brand values, concept and trademarks. By informing journalists of news and information within IKEA through press releases, website information, catalogue distribution and product launches, we are able to communicate with a huge audience through their readers.
The overall identity of IKEA is based in Småland, historical and thrift are strong characteristics of the region and its people. All IKEA policies live up to this standard from the products we sell to our internal travel and recruitment procedures.
All areas of the IKEA marketing department work together to give consistent messages to our customers and strengthen our brand identity. By focusing on communicating the key messages of the IKEA concept, our vision, and business idea we can work together to create our vision of " a better everyday life for the many people."
IKEA was founded in 1943 by 17-year-old Ingvar Kamprad in Sweden, named as an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his home parish (Agunnaryd, in Småland, South Sweden).[3]
The groups of companies that form IKEA are all controlled by INGKA Holding B.V., a Dutch corporation, which in turn is controlled by a tax-exempt, not-for-profit Dutch foundation.[4] The intellectual property of IKEA is controlled by a series of obscure corporations that can be traced to the Netherlands Antilles.[5]
INGKA Holding B.V. owns the industrial group Swedwood, which sources the manufacturing of IKEA furniture, the sales companies that run IKEA stores, as well as purchasing and supply functions, and IKEA of Sweden, which is responsible for the design and development of products in the IKEA range. INGKA Holding B.V. is wholly owned by Stichting INGKA Foundation, which is a non-profit foundation registered in Leiden, Netherlands. The logistics center Europe is located in Dortmund, Germany and Asian Logistic center is located in Singapore along with its IT base.
Inter IKEA Systems B.V. in Delft, also in the Netherlands, owns the IKEA concept and trademark, and there is a franchising agreement with every IKEA store in the world. The IKEA Group is the biggest franchisee of Inter IKEA Systems B.V. Inter IKEA Systems B.V. is not owned by INGKA Holding B.V., but by Inter IKEA Holding S.A. registered in Luxembourg, which in turn is part of Inter IKEA Holding registered in the Netherlands Antilles. The ownership of the holding companies has not been disclosed.[5]
The company which was originated in Småland, Sweden, distributes its products through its retail outlets. As of October 2010, the chain has 313 stores in 38 countries, most of them in Europe, North America, Asia and Australia. The IKEA Group itself owns 276 stores in 25 countries and the other 37 stores are owned and run by franchisees outside the IKEA Group in 16 countries/territories.[6] 2006 saw the opening of 16 new stores. A total of at least 15 openings or relocations are planned for 2010.[7]
In some languages (such as Swedish, Danish, Norwegian, Dutch, German, Greek and Spanish), "IKEA" is pronounced something like [iˈke.a][citation needed], but in English it is /aɪˈkiː.ə/, similar to the word "idea." As such, IKEA brought action in the Supreme Court of British Columbia successfully preventing a competitor in Victoria from using the name "Idea."[citation needed] Its Chinese name is "宜家" (yíjiā), which literally means "fit for home" in written Chinese and sounds like the phrase "right now" in Cantonese pronunciation.
The IKEA Website contains about 12,000 products and is the closest representation of the entire IKEA range. There were over 470 million visitors to the IKEA websites in the year from Sep. 2007-Sep. 2008.[8]
the IKEA marketing mix
IKEA has a long tradition in marketing communication focusing primarily on printed media which has proven its values and success to the company over the years. Other media now being used to an increasing degree include TV, radio, and internet based communication.
The IKEA marketing mix consists of 4 different areas of focus.
the IKEA product range is our starting point. All other marketing communication is used to amplify the product range.
the store is the IKEA retailers primary medium for presenting and communicating the range, its low price and the IKEA concept.
the IKEA catalogue is the main marketing tool with around 70% of of the annual marketing budget being spent on this alone. It is produced in 38 different editions, in 17 languages for 28 countries. 110 million catalogues were circulated last year - three times higher than that of the Bible, with 13 million of these being available in the UK.
the IKEA advertising, PR and other types of communication are complements to the IKEA range, store and catalogue are used to spearhead the penetration of our target market
the UK marketing department
IKEA advertising in the UK is intended to raise awareness of the IKEA brand and drive traffic to the stores. Some people love our unique style of retail advertising, some hate it, but everyone who sees our advertising has a strong opinion and subsequently it provokes conversation and debate. Despite having some of the most controvertial television advertising campaigns in the UK, we have raised awareness of our brand, let people know we are different to other home furnishing companies and most importantly increased sales. The advertising department includes all aspects of advertising and brand communication from television advertising and sponsorship to magazine and radio promotions. Advertising is used to support many different areas of the business including brand awareness, store themes, catalogue drops and store openings.
brand research
To remain at the forefront of a changing market we need as much research on customers, the home furnishing sector and our competitors, as possible. Many different areas of market research, reports and statistics both internal and external are taken into consideration when planning any communication or marketing campaign.
room magazine
This is a European IKEA magazine that is available in all stores in Europe. It is also mailed out to 150,000 IKEA Home Card holders in the UK. It contains lifestyle features on IKEA customers and how they live, product news, and tips and ideas for the home. Similarly to the catalogue, this is produced centrally, but each country has control of a number of pages to communicate their country specific messages.
IKEA food services
The IKEA restaurants are important in providing our customers a place to eat and relax while shopping. There are 3 different concepts offering food in IKEA stores in the UK currently. The main restaurant serves meals based on our Swedish heritage, with traditional dishes such as Gravadlax and meatballs with Lingonberry relish. There are also bistro areas which sell localised snacks such as; hot dogs in the UK, baguettes in France, and pizza in Italy. The IKEA Swedish food markets are also in every store and encourage customers to take home a taste of Sweden. The wide range of traditional Swedish foods helps customers understand our Swedish origins and also lives up to our low price promise.
internet
IKEA.com is the global site where you have an overview of IKEA as a company. From the global site it is possible to access all local sites. One of the main tasks of the internet is to display product information and availability which is updated constantly. Background information about the company and store information is also crucial. Each store also has their own space with contact details and directions, events, special offers and local information.
communication and interior design
Com-in is a "unique" resource who work actively to secure our competitive advantage through the development of the IKEA retail concept and the store as a media. All Com-in specialists are from either an interior design background or visual merchandising, and are responsible for the presentation or our product offers using all current range presentation medias and techniques. The Com-in department gives the store inspiration and vitality and works closely with the store sales and logictics teams to ensure our customers always see something new and exciting, and want to come back again and again.
public relations
The primary concern of this function is to protect the IKEA corporate identity but also to communicate our vision, business idea, brand values, concept and trademarks. By informing journalists of news and information within IKEA through press releases, website information, catalogue distribution and product launches, we are able to communicate with a huge audience through their readers.
The overall identity of IKEA is based in Småland, historical and thrift are strong characteristics of the region and its people. All IKEA policies live up to this standard from the products we sell to our internal travel and recruitment procedures.
All areas of the IKEA marketing department work together to give consistent messages to our customers and strengthen our brand identity. By focusing on communicating the key messages of the IKEA concept, our vision, and business idea we can work together to create our vision of " a better everyday life for the many people."
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