EXECUTIVE SUMMARY
The main objective of this management report is to analysis the market condition in Indian region, to make a strategic plan for launch of IKEA brand and discuss the main issues of global marketing pertaining to the brand launch in India. As an employee of the company, I have been asked by senior vice president of marketing in IKEA, this report should address environmental analysis of the Indian market environment, business strategy for launch of IKEA brand in India and entry marketing tactics with time line. IKEA has a plan to open 25 retail outlets in north Indian states and south Indian states with the investment portfolio of around $1.95 billion.
Furthermore, this report discusses SWOT analysis, marketing mix, PESTAL
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IKEA may use the environmental factor in their marketing strategy as campaign can be launch to save environment, which will create goodwill of the company and at the same time marketing of the company with corporate social responsibility. India is second most populated country with the fair infrastructure of transportation and world’s largest democracy with political stability in the country.
India's general public has been impacted by an exceptionally solid standing framework before, which kept numerous individuals from openly picking what work or business to enter. This has changed and urban districts have a tendency to be more liberal concerning starting cast alliance than the rustic ranges. The extent that the mechanical environment is concerned,
India's populace is progressively associated with the Web yet behind in the universal examination. The Indian atmosphere is calm differing because of the nation's gigantic size. As there are colder and hotter districts, the utilization conduct can vary on a territorial level because of the differing atmosphere.
Legal
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IKEA use various types of promotional tools to draw client attraction. IKEA use TV shows to demonstrate, where they indicate generally accepted methods to brighten home with minimal effort furniture. IKEA's gifted interior designers help them to make over their rooms as per their financial plan with their enchantment touch and IKEA show those exercises on TV. Indian viewers took after those outlines and makeover which indicated change can be made effectively if took after regulated.
IKEA is extremely renowned for enormous announcement with their wide name on it. In 2010 made a few occasions close occupied station in Paris to give their client to check their item. Interestingly 2008 to 2009 IKEA supported London Underground Tube Map additionally they gave free wallet for Oyster cards. (SwervePoint, 2009)
Brand opening:
Brand opening should be lavish with showcasing of different design of furniture with premium quality and a grand opening from attracting customer.
After launch of Brand:
Marketing is done on print media, digital media and electronic
2014). Brian Cornell has new ideas to implement in the stores that he believes will not only increase revenue but as well as bring in new customers. After a few days as the new CEO Brian Cornell visited Target stores without drawing attention to himself. He was able to get feedback from actual customers and what they would like to see in the store and what products they would like more available. Cornell took these ideas and began working up a plan that will help draw customers back into the store. For example, “Rather than plates, mats, and utensils stocked separately, they are presented together in realistic kitchen and table settings. The idea is to help customers imagine mixing and matching items in the way that countless retailers have been doing for decades” (Wahab, Phil. 2015). This idea is a key factor as to why Ikea is so successful. Consumers get drawn in to Ikeas maze and end up in unexpected set-ups that increase unexpected purchases. Therefore, by implementing that same idea, Target can increase sales by creating a more “home-y” look and instead of having customers imagine how an item will look in their household they can now visually see
Originally, the postwar boom helped drive the furniture industry’s change. World War II drained the life out of many households, and newer innovative changes were sought by many. The tradition of handing down furniture from generation to generation was quickly disappearing in most households. IKEA helped shape the postwar household by offering new furniture styles at a very reasonable price. With low costs came a new innovative style and a comfortable atmosphere to shop in.
and will work their best to achieve them. With this management style, IKEA can use various methods of communications (see E5). However this type of management style could make decision-making slow and is not appropriate to some businesses such as, manufacturing industries. The organisational structure, culture and the management style of IKEA have to perform successfully so that, together they can achieve the company’s objectives. For example, to increase profitability: the communication within the organisation have to be clear so that, staff can understand what jobs have to be carried out; staff have to be motivated to perform the job; the relationship between managers and staff have to be strong and committing; the organisation have to encourage staff to create new ideas and share them amongst others; democratic managers have to listen and act on the opinions of workforce, democratic managers have to make sure that the workforce is well aware of the objectives of IKEA, etc.
Bowell states that IKEA is establishing themselves “...as a leader in creating and running innovative sustainable places.” This means that IKEA is taking their job seriously. They want to be the ones to help and inspire their customers into following the methods of sustainability. The “People & Planet Positive Strategy” allows the customers individuals to learn about how they can make a change in their own lives by the implementation of products from the company. IKEA is in the process of adapting to the lifestyle of being environmentally friendly. It is necessary for them to become net-positive. Most appliance retailers do not maintain this type of
IKEA main strategy was to design functional furniture that was easy and inexpensive to build, receive it disassembled at stores, and display it on the show room floor with detailed explanation ticket to abolish traditional salesperson assistance. Staffs were available for enquiries, but the customers could freely select between orders, pick up, transport and assemble their own selections. In fact, this strategy creates a mutual beneficial between Ikea and customer. Ikea
Environmental analysis is integral to understanding how the organization operates within the organization itself, within the industry and within the macroeconomic environment. For this analysis, the subject organization will be IKEA. “IKEA Group is one of the world’s largest privately owned companies, engaged in the retail of flat-packed home furniture and other house wares. Operating over 150 large-scale stores in over 30 countries, and with a mail order division, IKEA sells a range of furniture, which is made by over 2,000 suppliers in more than 55 countries. The company is headquartered in Helsingborg, Sweden”.
Another example of IKEA’s international strategy in building good relationships with suppliers is in Asia, especially in Vietnam, where IKEA expanded its own supply base. Vietnam manufacturers offers low cost labor force and not expensive raw materials, while IKEA provides the view of creating a long-term, high-volume business relationship, and advice on finding the best according to the price raw materials, setting up and bulding factories, choosing what machines, equipments
Firstly, the history of IKEA International A/S is needed to be described. The company is based in Denmark. It is one of the world’s top retailers of furniture, home furnishings and housewares. The company designs its own items and their items are sold in more than 140 IKEA stores. The store is spread throughout approximately 30 different countries worldwide. IKEA distributes its thick catalogs once a year in the areas surrounding its store locations. Also, it peddles its merchandise through mail order. Additionally, the company offers high-quality items at low prices as their character. Then, the company buys items in bulk, ships and store items to save money for itself and its customers.
The main objective of this report is to develop and provide a sales and marketing plan for which the company will help to generate more profit and acquire more customers to patronize the product. This report will cover the period of 2016 to 2017 which will serve as guidelines that needs to follow of the employees, managers and management team to reach the desired goals and target for the company.
Now coming back with another point of view, since the business and industrial dynamics keep on changing, so in such a scenario, a person should be ready with whatever opportunities he gets, ready to do the any occupation where his competencies match. But the caste system will not allow him to take the step and hinder his progress or growth. Caste system dictates in clear term one should do his job based on heredity not on the basis of competencies or skills acquired. So in one way or other it deprived a large community from getting its due, together with creating huge unemployment.
E-commerce is available on Ikea’s website to selected countries, and they provide an e-mail address to customers who have queries about their business.
Indian population has a mixture of culture, variety of languages and difference in resources. The difference in occupational structure, literacy level, health status and other socio-economic factors among the states leads to the
IKEA is more than a furniture store they are a company driven by values (IKEA, 2014). The company seeks to make their consumers lives easier by providing them with modern, innovative, inexpensive products which they use to tackle daily home activities. IKEA Group has 298 stores in 26 different countries (IKEA, 2014). The company’s vision is “to create a better everyday life for the many people” (IKEA, 2014, para 1). Using innovative techniques for creating, producing, and marketing their products IKEA can provide consumers with durable products for reason...
In a simple way, the retailer needs to create a warm, friendly and an approachable retail space to attract consumers.The visual displays is an imperative element of branding of any store. If the stock is presentable, it is bound to appeal to the shoppers. If the shoppers appreciate the store layout and product, they are likely to spend more time in the store, and in return reward the store with sales. Along with the products for sales, the staff, the décor, the store interiors, the trial rooms arrangement, the lightings and music also form an inclusive elements boosting store sales. (fibre2fashion, 2008)
The key difference between domestic marketing and marketing on an international scale is the multi-dimensionality and complexity of the many foreign markets a company may operate in. The essential elements of effective international marketing are the ability to interpret the business environment, recognize foreign market opportunities and appreciate how the firm’s resources can best be used to match and develop patterns of market demand. The development of successful international marketing strategies is based on a sound understanding of the similarities and differences that exist in countries around the world.