• Open more outlets in Singapore
IKEA has only two outlets in Singapore, one nearer to the west and the other nearer to the west. By having more outlets such as at places like central area, IKEA would be more accessible and more convenient. This would increase customer flow and also increase sales.
• Manufacture more colours for a certain products
IKEA products such as bed frames and cabinets usually only has one to two different colours. By having more colour choices for a certain product, customers would be able to find a better colour fit. This would appeal more towards customer’s personal preference and thus increase customer service value and revenue.
• Promotional Packages
Sometimes customer may be looking for more than a single
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6. Customer Analysis
6.1. Geographic segmentation
Expanded from Sweden to asia, and now they are recognised worldwide with 314 IKEA( Refer to figure 1.7) stores in 38 countries/territories. This help to boosts sales, gains more recognition and builds better reputation which leads to the significant increase number of customers.
• There are a total of 2 outlets which are located in the different parts of Singapore. One is in the North East (Tampines) and the other in South West (Alexandra). (Refer to figure 1.4,1.5)
6.2. Demographic segmentation
• Age Range: 18 to 55 years old → Furnitures are catered to all age groups. For example, toys from the children section, office tables for working adults and even beautiful lightings to brighten the teenagers rooms.
For example: Babies, Toddlers, Young Children, Teenagers and Adults
• Gender: Male/Female → Offering different products and variety of colour choices that are suitable for both groups
• Occupation: Any occupation but mostly attracts more housewifes and interior
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Mainly near at the outskirt of the country so that IKEA can combine the concept of Factory and the retail shop together.
6.3. Psychographic segmentation
Social class: low and middle
-IKEA’s furniture appeals more for the low and middle class people, they produce quality furniture at affordable prices.
Lifestyle: slow, less hectic, relax
-IKEA appeals to people who are less busy and hectic in their lives, people who have the time and passion to make an effort to design and build their dream interior home.
Personality: Creative, stylish
-IKEA gives customers a wide variety of furniture for them to choose, allowing them to be creative in decorating their ideal home space.
6.4. Behavioural segmentation
Occasion Segmentation:
-parties(eg. housewarming, christmas, chinese new year)
-furnitures become old, need to replace them.
-need certain furniture, family become bigger or children have grown older (need study
IKEA specializes in ready-to-assemble furniture that is of good quality. It also specializes in food and other cheap accessories for the house. Because of its uniqueness and low prices for such good quality, it is very likely that consumers may deem it incomparable and thus reduces their ultimate range of choices for alternatives.
Considering the previous mission statement with a unique customer vision IKEA is clearly antagonistic with specific customers’ needs. That lack of adjustment to customer needs is the main reason for not getting the same results in China than in Northern Europe.
Product : IKEA’s product range is wide in several range. As we can see on the pictures, IKEA sells home furnishing, other house goods such as accessories. IKEA also offers restaurants and food stores. The logo of the brand is also very popular and and recognizable all over the world.
So far, IKEA stores in the area of Asia are only available in China, Hong
IKEA is an international company which designs house products and sells them in the form of ready to assemble furniture. It is one of the world’s largest furniture companies. It is founded by17 years old Ingvar Kamprad in Sweden in 1943. The most important fact about the company is the attention to control the cost of the products, which allows them to lower the prices. Even today they are continuing to expand in the world by looking forward to new product developments. The number of stores of IKEA in the United States is 14 at the moment and they aim to have 50 stores by 2013.
IKEA is a unique Swedish furniture company. The company we so widely recognize today for selling good quality budget friendly Scandinavian style furniture began in 1943 as merely selling pens picture frames and wallets. Ikea was founded by a then 17year old Ivor Kampard, of the farm Elmtaryd near the small village of Agunnard in Smaland, hence giving rise to the name IKEA. This area is know for its thrifty and hard working ethos and Kampard very much incorporated this into his business venture. His innovative idea was to offer home furnishing products of good function and design at prices much lower than competitors by simply using cost-cutting solutions that did not affect the quality of products.
From its low cost structure to its corporate culture (“The IKEA Way”) to the do-it-yourself approach (replete with measuring tapes, paper, and pencils available in-store) plus its strong brand image (representative of high quality, low-cost ,trendy, modern and fashionable
Ikea has established strong branding with wide range of stylish products. It focus on offering low-priced and affordable furniture. The furniture is easy to assemble and ship. It offers one-stop shopping and featured the amenities as playrooms for children and Swedish cafes, bank and enough parking spaces. It creates a friendly atmosphere and services to shop and design the store layout for a nice journey of shopping. It has strong global sourcing capabilities.
Ikea offers a wide range of home furniture and accessories, from bedroom furniture to kitchen appliances. It also has a wide variety of style which it represents in all of the various showrooms within the store. It’s able to produce low price products that are high in quality.
market as many consumers actively buy into the cost-conscious mentality. Furthermore, the standard of living is higher than most countries. Quality is highly important as consumers are driven by value and demand quality products (Ferrell & Hartline, 2014). Ringstrom (2016) acknowledge that, IKEA relishes in the fact and status that they are a place for individuals that enjoy value and have thin wallets. The goal is to make customers and potential customers aware of their higher-quality goods all the while maintaining a popular appeal. They essentially build their success from low priced goods and
The flat packaging not only makes it simpler for customers to transport furniture home, it also saves the company on shipping.
IKEA organized their stores in a different way than its competitors. While its competitors put its items in
IKEA is targeting at two groups of customers. The first target group is the young adults from low to middle income family who may have or have no children. The other target group is business customers and they are normally running small to medium size of offices.
As pointed out in Ikea's mission statement, the company is in business to produce high quality products at a low cost. This would support a
At the outset, it may be useful to characterise IKEA in terms of the characteristics of demand (also known as the four Vs, see Slack et al. p 20). First, IKEA is clearly a high volume operation – as indeed most international retailers are – which lends to systematising operations but which implies capital intensive processes and therefore cost considerations will be crucial. Second, IKEA offers a large number of products (up to 14000 depending on the country/store) so there is high variety in the