I have decided to develop Ikea in India, and think that it would be interesting to focus on the following questions: How will IKEA's products and services integrate into the Indian market? What adjustments are or will be necessary to enter the Indian market of furniture? What threats from local competition should IKEA take into account and how can these threats be counteracted? India has very cheap and readily available labor. It would thus be very profitable to hire local population in the company. For example, the total labor force is about 337 million people. Of these, 65% or more are engaged in agriculture, 4% in services, 3%in manufacturing and construction, and 3% in transport. The subsidiaries will be located in huge cities of India because a large share of the population engages in manufacturing. India has a large unemployment rate, so there will be no problems engaging labor.
[...] A former manager of IKEA, in France, explained to the Guardian "You cannot simply go to IKEA with your hands in your pockets. You must show some dynamism" The client is pushed to help himself and assemble the furniture. "IKEA's objective is not to exempt consumers from performing some tasks, but to mobilize them to do easily something they have possibly never done before". The vision based on the creation of a shared value is combined with the will to minimize "lost spaces". [...]
[...] IKEA France also uses the press - where the stress is put on products - and poster campaigns, usually in a rather classical and unimportant way, with the exception of the inauguration of stores. ( Public relations and press office The primary function of the PR policy developed by IKEA France is to protect the identity of the IKEA brand, as well as to communicate its vision, its ideas about business, the IKEA concept and the values related to it. [...]
[...] These catalogues are available in any IKEA store (prices are guaranteed not to increase while the catalogue is valid, which is again attractive for consumers). The outlets in India can also be successful by sending direct mail to the potential customers. Another good way of promotion could be television advertising, because of its wide auditorium. For example, the main channel, Doordarshan (The Indian National Television Network) has the maximum reach in the country. It covers approximately 85% of the Indian population. [...]
[...] national peculiarity may have an impact on the development of a given type of product to satisfy a specific national demand, and also guarantee the success of a product in the other national departments of the group. Price: Low costs The prices must be acceptable by the majority of people. The observance of the determined cost is the primary condition to be respected by designers whenever they receive a request from the production division. The second criterion is the style; the third, the type of client targeted; and the fourth is functionality. [...]
[...] In India now, the middle class is not far from 40% of the whole population. It has grown to about 200 million people after the production, trade and investment reforms in 1991. PLACE: Where do the target customers live? Where to sell? India's economy is a mixture of traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and the multitude of support services. Thus, most of the people live in small towns, and don't earn much. But IKEA is interested in those, who live in cities and towns, so, it is better to set IKEA shops first, in the capital city Delhi (there are several main shopping areas in Delhi like Sadar Bazaar, Janpath, Palika Bazaar, Connaught Place, Ajnal Khan Market, INA market, Greater Kailash, Green Park and many others). [...]
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