IKEA: Strategic Marketing in India

Thibaud D.

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IKEA: Strategic Marketing in India

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Abstract

IKEA is Swedish-Dutch company specialized in the design and retail of furniture and decorative objects kits. The company is one of the largest companies through the world with 338 stores in 41 countries. In 2011, Ikea registered a total turnover of 25.2 billion euros and revenues of 3 billion euros.

The name Ikea was created in reference to the two first letters of the founder's name (Ingvar Kampard), the name of his parent's farm (Elmtaryd) and the name of his village (Agunnaryd).
The Swedish-Dutch company is implanted in several countries through the world: in Europe, North America, Middle East, Asia and Oceania. Implanted in Netherlands since 1978, Ikea has twelve stores their. Since 1984, he opened 6 stores in Belgium. From 1989, he opened 15 stores in Italy. The company is also implanted in USA and in Canada. Montreal hosts the biggest company's store through the world. In France, the company has 26 stores.

The concept of the company is based on the self-service supermarkets and the furniture kit packed since 1956 in a "flat pack", cheaper to produce and transport, and easier for the customer to report himself at home.
The products are unique in the world, presented in a catalogue distributed on 191 million copies, the largest distribution of a free publication through the world.

Introduction
Understanding the market
The Market Audit
PESTLE Analysis - India
Value Chain Analysis
Research of the Market (Quantity, Consumers, Segmentation)
Brand Positioning Matrix
The Marketing Mix
Choosing the strategy
The action Plan
The Value proposition
The deliver steps
Conclusion

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[...] Which product, price, place and promotion, - One defining the strategy, it is important to define the forecast budgets and objectives The main idea for Ikea is being profitable after 5 years of presence in India. This period will make the company know in deep way the specificities of the Indian market and build it brand image. It will make it as well develop a reputation and catch clients. - The next step will be control and results. It is a very important step because it evaluates the performance of the company. [...]

[...] If the customer buys a lamp, he will get light. If bought a couch or bed, it will have a place on which to rest or receive guests. If buy a table, it will be a goal that he could eat. - The extended products: It will be the services offered when you buy furniture. Ikea knows that it is not easy for everybody to buy disassembled products and assemble them after that. So Ikea will give a real support to it customers to make them able to do this. [...]

[...] His is the chief of state but his position is just honorific and he actually doesn't have responsibilities The heard of the executive is the prime minister. All the executive power is under his hands and under the hands of the minister's board. The central state has it institutions as a parliament and a supreme court. - The state and territories As the United States, India is divided into several states. Every state has its institutions, as a parliament. Every state has also a governor chosen by the president of India. However, the governor has also an honorific position. [...]

[...] The economic aspect is for the benefit of Ikea. Actually the indian economy is a fast growing economy. Which means that Ikea can attend profitability rapidly as if it was established in a small growing economy. Social According to the India Pestle report made by MarketLine, India is the second most populous nation in the world, with 1.2 billion people. Its population is young, with a median age of 26.5 years, and those above the age of 65 constituted just of the population as of 2011 The country has the following strengths: - Growing proportion of young people - Rapid urbanization India has to challenge with the following points: - Healthcare remains a major concern - Weak social security system - Poor literacy rate - Low HDI rank The targets of Ikea are the middles-classes. [...]

[...] The middle-classes are being largest and economists except them to grow within the next years. Considering the importance of this challenge, it very important to follow all the steps and don't burn any part of the process. Implanting Ikea in a country like India is a very big investment, which means a very large financial support, so people who are going to manage this project has to be aware that any detail had it importance. References India Country Profile. MarketLine, Sep2012, p13-44. 32p. Beinhocker, Farrell, Zainulbhai, Adil. McKinsey Quarterly Issue p50-61. 12p. [...]

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