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Tuesday, February 19, 2013

Ikea

IKEA INVADES AMERICA:

4 P:
Product:
Low- footingd article of furniture store (the products come boxed and require the costumer to wholly assemble them at home: cheaper bearation as hearty as more efficient use of the store ledge space; Ikea sources its product from multiple companies all around the world).
Scandinavian bod and style created by themselves: quality of product; this makes the partner enthrall unique among other furniture makers.
Flat packaging: easier for customers to transport the furniture home.
Possibility of easily assembling and disassembling on your own.
Products priorities complete by the senior management and based on the consumer trends.
ground substance to identify companys products lineup.
Products with unusual Swedish names because the founder was dyslectic and so he believed it was easier to remember products names rather than codes or numbers.
Price:
Low-priced furniture concept: this ensures the diminishedest price possible and savings that are passed on to the customer. (Ikea reduces prices by 2 percent to 3 percent annually).
Cost saving convey to the flat packaging: Ikea passed the cost benefit to the customers. (Ikea can ship more items, needs less storage space, labour cost decreases, no transport damage; Customers: lower priced products, easy pane home).

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In the beginning there were low prices and bad design but then Ikea started giving importance to design maintaining the prices low: Low price with meaning.
Matrix to set retail prices for each product Ikea sold.
Place:
Stores in Scandinavia, Europe, Asia, North the States; the company is well known to a huge universe of discourse so whenever a new store is opened, thousands of shoppers line up on the first day.
Focus on North the States;
Consumers perceived value when they go to the stores because they can actually chit-chat the furniture they are going to buy.
Ikeas stores are located a good distance from most city centers, which helps keep record costs down and taxes low.
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