IKEA

IKEA

IKEA

Introduction

IKEA offers a wide range of home furnishings with good design and function at affordable prices combined with services in a comfortable shopping environment (see exhibit 1 for product level analysis). Its core product is to satisfy the home furnishing needs of many people throughout the world with Scandinavian designed products. The core benefit is extended by several attributes like style, quality, brand, simple features and packaging. IKEA offers good quality, functional furniture and home appliances at low prices. Due to low pricing customers can afford to replace furniture and renew their living environment more often. Its in-house innovated furniture has unique Scandinavian design and its simple stylish solutions satisfy different needs and taste. “Low price with meaning” and keeping prices low is one of the major attributes driving the product design, manufacturing and distribution. The simple flat packaging solution saves costs through the value chain for the benefit of customers and eliminates time delay between purchase and delivery.

However, IKEA offers more than just furniture and furnishing appliances. It offers an augmented product, the “IKEA experience” including viewing, evaluating, selecting, picking-up, self-delivery and self-assembly of products. In addition, it provided convenient parking facilities, huge shopping areas with well-designed layout and signs to direct shopping. At the entrance pencils, paper, tape measures, shopping bags, trolleys, and catalogues are placed to assist customers with self-service. IKEA representatives can further assist customers with questions and advices in the shopping area. The childcare facility and IKEA restaurant with unique Scandinavian cuisines create comfortable shopping environment. IKEA's total product range consisted of around 10,000 different products, several product lines including living room, bedroom, kitchen, office and several household items. IKEA's product/Matrix mix offered limited number of product styles (Scandinavian, modern, country and young Swede) in low, medium and high price range for every product line with limited variety of products.

Advertising

Advertising: this refers to the paid, non-personal presentation of ideas, goods and services by an identified sponsor e.g. TV, radio, newspapers, magazines, direct mail, signs etc. IKEA has done many successful promotions to their target customers so that its business has attracted more and more consumers. The most well-known is IKEA Catalogue. Every year, IKEA will put out a catalogue to the local residents to introduce the latest products in store. The annual catalogue is distributed in middle of September at each year and is valid for a full year. Prices are guaranteed not to increase while the catalogue is valid. In it, you will discover furnishings, accessories and room settings along with detailed information on materials, colures, sizes, product care and prices. That way you can plan your next visit to IKEA all from the comfort of your own home. The catalogue is free. The content for children is: children's furniture, lamps and toys IKEA also established its websites all over the world. People can know the every details of the office furniture at home instead of going to the store. IKEA also does advertisement on television to promote their ...