Marketing Strategy Of IKEA

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IKEA is a Swedish world leading company in the home furnishing business. IKEA was founded in 1943 by Ingvar Kamprad when he was 17 years old. IKEA refers to the acronym Ingvar Kamprad; the family farm Elmtaryd, and the name of his native village, Agunnaryd. In the beginning, the company was selling pens, small leather goods, frames, tablecloths and jewellery door-to-door. In 1945, she diversified into mail order catalogue sales. In 1947, the catalogue adds furniture to its assortment. In 1951, the company decided to sell exclusively furniture. In 1958, opening of the first IKEA in Sweden in Almhult. From 1963, IKEA started to go international with the implantation of the first IKEA store in Norway. In 1965, the first IKEA store opened in…show more content…
But last, year at the same period, growth rate was positive 4.2%. This can be explained by the elections and a calendar effect with one week on rebates in less. However, the furnishing market remain a solid market supported by the retailers' efforts to diversify their properties and their offer while proposing a favourable pricing policy for customers. Therefore, Xerfi has estimated a growth of 1% in 2017 for the furnishing industry and +2% in 2018. However, the sector turnover presented a negative growth of (-7%) in the first 2017 semester. This is mainly due to intense competition on prices ran by mass market distribution retail. For instance, IKEA has reduced of 20% the prices of 300 products in 2017. This has a harmful effect on the independent retailers. As we guess, this decline doesn’t equally affect all the market actors. Indeed, the companies of the mass market distribution of furnishing which capture half of the market sales (48,5%), Ikea, Conforama and But will keep presented positive…show more content…
Firstly, the purchasing function IKEA Trading. Its main mission is to develop new suppliers’ networks and maintain existing ones by developing strong and long-term relationships. Then, the assortment of product is managed by IKEA of Sweden. It oversees the assortment by investing in research and development to create new products that ensure the profitability of the IKEA range. The third function is the distribution service. Their mission is to handle the central warehouses and logistics. Most deposits are owned and managed by the IKEA Group. Nevertheless, some IKEA deposits are managed by external providers. Finally, we find the sales function operating in three regions in the world, Europe, North America and Asia Pacific. The stores, which are divided into three geographical areas, are supplied through 30 DCs and by some 1,400 suppliers in 55 countries. More than half of the sales volume is distributed directly from suppliers to stores. (Patrik Jonsson, Martin Rudberg, Stefan Holmberg,
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