BSBMKG502B -Establish and Adjust the Marketing Mix Course Name: Diploma of Business Assessment 2 BSBMKG502B -Establish and Adjust the Marketing Mix Course Name: Diploma of Business

BSBMKG502B - Establish and Adjust the Marketing Mix Course Name: Diploma of BusinessAssessment 2

Report on IKEA company.

BSBMKG502B - Establish and Adjust the Marketing MixCourse Name: Diploma of Business

IKEA

Executive summary

In this project I will analyse the global company IKEA the majorleading company for the furniture and inner interior of the house. Its Organization policy and procedures, Terms and conditions, Key characteristics of the products, the channels ofdistribution, Promotion, promotional methods, Budget, Pricing policies…… I will explain how IKEA become such a successive company in the world market and will IKEA hold this position in the future as a leading company in the furniture business.

Introduction

Founded in Sweden in 1943 by then-17-year-old Ingvar Kamprad, the company's name is an acronym that consists of the initials of Ingvar Kamprad, Elmtaryd (the farm where he grew up), and Agunnaryd (his hometown in Småland, south Sweden). The company is known for its modern architectural designs for various types of appliances and furniture, and its interior design work is often associated with eco-friendly simplicity. In addition, the firm is known for its attention to cost control, operational details, and continuous product development.

Organization policy and procedures

The vast majority of IKEA stores are located outside of city centres, primarily because of land cost and traffic access. IKEAhave long opening hours. Many stores are in operation 24 hours aday with restocking and maintenance being carried out throughoutthe night. Public opening hours tend to be much longer than mostother retailers, with stores open well into the evening in many countries.

IKEA works as a super market customer need a shopping cart to purchase the goods that they are interested in. Finally, customers pay for their products at a cash register. Every storeincludes a restaurant serving traditional Swedish food.

1Isaev Alexandros ID 1494.


Rather than being sold pre-assembled, much of IKEA's furniture is designed to be self-assembled.

The IKEA Concept starts with the idea of providing a range of home furnishing products that are affordable to the many people,not just the few. It is achieved by combining function, quality,design and value - always with sustainability in mind.

Terms and conditions

Information about IKEA Shop Online and the goods

The colours of goods as shown on the website will depend on many factors – including your display settings The sizes and shapes of the goods may differ in real life fromhow they appear on your screen. We provide dimensions and measurements in the descriptions of the goods and it is your responsibility to check that the actual size of each item is suitable for your purpose Pictures and images on the website are for illustration purposes only. For an accurate description of any item and details of what is included with the item, you need to read the corresponding written description

Availability The IKEA have the right at any time to modify or stop providing IKEA Shop Online and to stop selling any or all goods through it, either temporarily or permanently and with or without notice. We shall not be liable to you for any modification, suspension or discontinuance of availability of IKEA Shop Online.

Security It is your responsibility to ensure that your login details, password and all other details in relation to your account remain confidential at all times. You agree to let us know as soon as possible if you know or reasonably suspect that the security of your account is at risk.



Eligibility to order goods You may only purchase from IKEA Shop Online if you are aged 18 years or over. You will need an active email address and a telephone number at which you can be easily contacted.Payment: they will accept payment from your card at the time youplace your order. They will contact you if we have any problems taking payment from the card details you provide during the order process. Taking payment does not mean they have accepted your order and, in the event of us not accepting your order, a full refund will be given as soon as reasonably possible (and inany event within 14 days of us advising you that your order has not been accepted).Delivery ArrangementsDelivery will take place at the delivery address specified by you either during the online order process (if you ordered online) or on the sales receipts (if you ordered in store). Theyask you to provide them with two telephone numbers so they can contact you easily and advise you of your delivery time.Damaged ItemsIf items within the packaging are faulty or damaged (whether before or during delivery), you shall notify IKEA customer services of such fault or damage using the telephone number stated on the sales receipt (for in store orders) or in their delivery advice email / on their website (for online orders) as soon as possible after delivery.Privacy IKEA Limited (“they”) are committed to protecting and respectingyour privacy. This policy sets out why they collect data from you and how it will be processed by them. The data you give to IKEA is confidential and is only disclosed in the circumstances noted in this policy.

IKEA ensures that the data collected about you is kept in secureenvironments. This means that your data is protected from unauthorised access, disclosure, use, alteration or destruction by organisations or individuals. This is achieved by having in place appropriate technical administrative and physical safeguards. Where data is transferred outside of European Economic Area, IKEA ensures that the data is subject to the same



protective controls. However, some countries have legislation and policies which do not guarantee the same protections as within the European Economic Area. Where IKEA do transfer data outside of the European Economic Area IKEA take all reasonably necessary steps to ensure that the data is kept private and heldsecurely in accordance with this policy.

Key characteristics of the products

N Product name

Product description Price

1 LILLÖNCharcoal barbecue,black

Assembled sizeLength: 64 cmWidth: 45 cmHeight: 98 cmWeight: 13 kgCooking area: 47x35 cm.4 plastic feet included.For outdoor use only.

$169

2 KLASENCharcoal barbecue with trolley, stainlesssteel

Width: 144 cmDepth: 57 cmHeight: 109 cmBody/ Hood: Steel, Powder coatingHandle/ Top panel/ Grill: Stainless steelTray: Steel, EnamelBottom tray: Galvanised steel

$448

3 FREDÖNHammock, black

Fabric: 100% polyesterBar: Solid eucalyptus, OilRope: Polypropylene plasticIf you use another method for hangingthe hammock, such as between two trees, the recommended distance between the trees is approx. 3-3.5 metres.

$49.99

4 ÄPPLARÖ /HÅLLÖ3-seat sofa, outdoor, brown

Depth: 80 cmSeat height: 36 cmHeight: 73 cmWidth: 223 cmCushion cover: 100% polyesterInner fabric: Non-woven polypropylene

$450



stained brown, beige

Filling: Polyester waddingCentre filling: Polyurethane foam 25 kg/cu.m.

5 BEHAGFULL24-piece cutlery set, stainlesssteel

Comprises: Fork, knife, spoon and teaspoon, 6 of each.

$49.99

6 SLUKAVacuum flask, dark blue

Body: ABS plastic, Clear acrylic lacquer, Clear acrylic lacquerHandle: Polypropylene plasticInsert: Glass

$ 19.99

7 FÄRGRIKMug, stonewaredark lilac

Height: 11 cmVolume: 25 cl

$0.79

8 TIRUPSwivel armchair,Kavat white

Frame: Highly resilient polyurethane foam (cold foam) 68 kg/cu.m., SteelSwivel base: Steel, Chrome-platedLeather: Through dyed grain leather from cattle, with a treated and embossed surface

$899

9 GLIVARP /TOBIASTable and6 chairs,transparent, transparent

Extendable table:Leg/ Side rail: Steel, Chrome-platedGuide: AluminiumTable top: Tempered glassRail: Acetal plasticFixing bracket: Polypropylene plasticLocking lever: Reinforced polyamide plastic

Chair:Leg frame: Steel, Chrome-platedSeat shell: Polycarbonate plasticFoot: Polypropylene plasticNut: Zinc, Chrome-plated

$893

10 FJELLSEBed frame, pine

Basematerial/ Rail/ Midbeam: Solid pineBedside: Solid pine,Packages: 1Article Number : 001.805.67Width : 13 cm

$39



Height : 12 cmLength : 193 cmWeight : 11.3 kgQuantity 1

11 SVELVIKBed frame, black, Luröy

Head and footboard:Basematerial: Steel, Pigmented epoxy/polyester powder coatingKnob: Steel, Nickel-platedFeet: Steel, Polyamide plastic, Nickel-plated

Bed sides:Steel, Pigmented epoxy/polyester powder coating

Midbeam:Galvanised steel

Slatted bed base:Layer glued slats: Eucalyptus veneer,Pine veneerRibbon/ Ribbon: 100% polyester, 100% polypropyleneLayer glued slats: Beech veneer, Birch veneer

$399

12 HEMNESChest of 6 drawers, white stain

Basematerial: Solid pine, Stain, Clear acrylic lacquerDrawer sides/ Drawer back: Solid pineDrawer bottom: Fibreboard, Acrylic paintBack: Fibreboard

296.65 family price

13 BORRBYLantern for blockcandle, in/outdoor black black

Use only 1 block candle with a max. Height of 15 cm and a max. diameter of 7 cm.

$9.99

The channels of distribution

IKEA sells its products to countries like: China, Korea, Indonesia, Australia, Russia, Spain, France, Finland, Poland,



Sweden, Norway, Denmark, England, USA, Canada, Greece, Italy, Turkey, Bulgaria, and Rumania. Future markets: India, Brazil, Ukraine.

Promotion, promotional methods and global strategy.

The universal slogan and the moose symbol were not as valuable in the US as in Canada and Germany. American people are more interested in aesthetic and shopping style and also they were not much happy with the ―cash and carry‖ service and they wantedbetter and faster delivery at home, and do not enjoy queuing. In America more media advertisements were needed. IKEA met many problems with cultural differences between US and Europe but fixthose challenges with a success.

IKEA's business philosophy is 'to provide a wide range of beautiful and practical, ordinary people can afford to buy household goods'.

IKEA has always emphasized product design beautiful, functional,and durable.

Taken from (Bhavya Misra ETRetail Bureau New Delhi) http://retail.economictimes.indiatimes.com/

Social media: TV, IKEA catalogue magazine free, IKEA catalogue application, Facebook, Twitter, Pinterest: This is an obvious choice for a retailer which deals in home furnishings, as this claims to be the official 'visual discovery tool'. Making best use of Pinterest, IKEA visually presents its merchandise to local markets in the UK, USA, Canada and other countries, Google+, Outdoor Campaigns To add interaction to the 3D panel, IKEA deployed two actors (at peak commuting times in the morning and the evening) to stand on the panel pretending to perform everyday bathroom activities such as showering or shaving, Indoor Garden, Billboard-fitted wardrobes, Storage units in Shanghai Metro station.


http://retail.economictimes.indiatimes.com/


Budget

Type of market Estimated percentage of totalmarketing budget

IKEA catalogue magazine free 32%

TV 20%

IKEA catalogue application 20%

Pinterest 10%

Facebook 5%

Twitter 5%

Google + 5%

Outdoor 1%

Indoor 1%

Billboard 1%

Pricing policies

Pricing policies you can find on the pages 3,4,5.

Level of customer service providedhttp://www.ikea.com/ms/en_AU/customer_service/index.html

Design your space

• Get it home yourself

• Book a GoGet van

• Home delivery


http://www.ikea.com/ms/en_AU/customer_service/index.html


• Mattress takeback & recycling

• Picking service

• IKEA BUSINESS services

• IKEA FAMILY store-to-home insurance

• Measuring service

• IKEA Home planner

• BESTÅ Storage planner

• PAX Wardrobe planner

• GALANT Office planner

• STUVA Children's Storage planner

• Product buying guides

Plan your visit

• Check stock levels

• Your nearest store

• IKEA Restaurant & Café

• Shopping list

Getting it home

• Get it home yourself

• Book a GoGet van

• Home delivery

• Mattress take back & recycling

• Picking service

• IKEA BUSINESS services

• IKEA FAMILY store-to-home insurance

Assembly & Installation



• Assembly instructions

• DIY tools

• Assembly service

• Kitchen & Bathroom installation

This is IKEA

• About IKEA

• People & Planet Positive

• The IKEA Concept

• Democratic Design

• About the IKEA Group

• Pressroom

Contact us

• FAQs

• Ask Anna

• Web chat

• Email us

• Call us

• Send feedback

Payment options

• Interest free finance

• Gift card

Terms & Policies

• 90-day returns policy

• Guarantees

• Privacy Policy



• Terms and conditions

Identify the customer key and base pressure.

IKEA products are made for all kind of customers, from adults tochildren, from single people to couples and families. Especiallythe goal of IKEA is to make price affordable for every customer.Recently they introduced family price which is much cheaper thanthe real price of a product.

External environments of faction

IKEA is one of the most competitive especially to the local companies that are located in their own country. IKEA growing rapidly all over the world with its cheap and affordable prises they are winning the market in every country they take place. One of the factors is mobility easy to collect and good quality of product.

Evaluate the new product

To save money on labour and production, IKEA constantly is on the lookout for opportunities to build supplier relationships indeveloping countries. IKEA also made it so all furniture was designed to ship disassembled, and all of the products were transported flat. The flat packaging not only makes it easier for customers to transport furniture home, it also saves the company on shipping. IKEA also focuses on design or the productsit sells.

To evaluate the extent of IKEA’s product range in relation to price categories, IKEA uses the Product/Price Matrix Using the Matrix enables IKEA to explore every possible niche within theirmarket, by not only product type, or price, but both simultaneously. This is a very smart move on IKEA’s part becausethey offer a product in every category, at every different pricerange (high, medium, or low). The best feature of the matrix is that IKEA is able to identify any gaps in the company’s line-up.If a gap is noticed in the matrix, the market opportunities available are clearly identified.

Evaluate the marketing mix



The IKEA is the organization which offers wide range of well designed, functional home furnishing products at a low price. The marketing mix is well defined and creative.

a. Product

IKEA, from the very beginning understood the needs of its customers and target prospects. Ranges exist in variety of categories, such as home furnishings, furniture, bathroom fitments, kitchen fittings, book cabinets, closets, kid’s beds and other fittings, home extensions and so on.

Ikea has continuously kept changing with a change in the business environment. The designs have always been fresh and this was the major point of differentiation for Ikea. Ikea is a brand that has broadly differentiated and has not depended upon a solitary classification of items or administrations for its extension. The key for Ikea has been to give the business a wideassortment of items and administrations to satisfy their particular aspirations and to defeat the obstructions or impediments of confined classes.

The wide variety of products at Ikea can be explained with the complete product portfolio mentioned below. Remember, that theseare just the product line. The product depth is immense with each product line having further product extensions and product varieties.

Products of IKEA

Eating

Desks

Mirrors

Children’s IKEA



Cooking

Bathroom storage

Beds & mattresses

Chairs

Clothes storage

Decoration

IKEA FAMILY products

Kitchen cabinets & appliances

Lighting

Small storage

Sofas & armchairs

Storage furniture

Swedish food

Tables

Textiles & rugs

Tools & hardware

b. Price in the marketing mix of Ikea

In the same way as another organization or business holding, Ikea additionally has embraced a methodology which is most suited, and that is of not cutting costs to strip the brand of its esteem, and in the meantime, not to be obviously overpriced,in order to repulse the business sector strengths. In a comparative manner, Ikea has been consistent and has taken afterthe centre way in evaluating its administrations and this methodology has created it to flawlessness.

c. Place in the marketing mix of IKEA

IKEA only grants rights to become a franchisee in markets where rights have not already been given, thereby maintain their



exclusivity. When selecting franchisees, IKEA among other things, evaluates the following:

Experience

Local market knowledge and presence (able to demonstrate abilityto establish and operate IKEA stores nationally)

Corporate culture and values

Financial strength and ability to carry through the investment penetrating a country in full and in a large-scale retail environment format

IKEA is present in the following countries across the globe.

Europe

België | Belgique (Belgium)

България (Bulgaria)

Česká republika (Czech Republic)

Danmark (Denmark)

Deutschland (Germany)

Eire (Ireland)

Ελλάδα (Greece)

España | Espanya | Espainia (Spain)

France

Hrvatska (Croatia)

Ísland (Iceland)

Italia (Italy)

Κύπρος (Cyprus)

Lietuva (Lithuania)

Magyarország (Hungary)



Nederland (Netherlands)

Norge (Norway)

Österreich (Austria)

Polska (Poland)

Portugal (Portugal)

România (Romania)

Россия (Russia)

Schweiz | Suisse | Svizzera (Switzerland)

Slovensko (Slovakia)

Suomi (Finland)

Sverige (Sweden)

Türkiye (Turkey)

United Kingdom

North America

Canada

United States

Middle East

ة� مهوري�� ة� م�صر ج� ي� ب�� ال�عر (Egypt)(Israel)

ة� ال�مملكة�� ي� �ة� الاردب� مي� ال�هاش�$ (Jordan)(Kuwait)

(Qatar)

(Saudi Arabia)

(United Arab Emirates)



Asia Pacific

Australia

(China)

(Hong Kong)

Indonesia

(Japan)

Malaysia

Singapore

(South Korea)

(Taiwan)

ปปปปปปปปป (Thailand)Caribbean

República Dominicana (Dominican Republic)

d. Promotions in the marketing mix of Ikea

As expected from a consumer durable brand, Ikea uses all form ofpromotions. However, due to its popular brand name, and its pricing structure, the best promotions which bring results for Ikea are sales promotions and trade promotions. Thus, this is where Ikea concentrates the most. Using coupons, price discounts, festival promotions, and all other marketing gimmicksin their bag, Ikea ensures that customers get regular advantagesfrom various deals offered by the large scale manufacturer.

The print ads of Ikea are known to be smart and to the point which grabs customer attention. As they have a presence in varying geographies, the communication too differs from the company. They focus on localised communication in their advertising so that they connect to the local audience. However,in general Ikea is a smart marketer and their product itself



speaks volumes. The promotions support the products by making them look desirable and unique in their design.

Relevant legislation

General Conditions and Legal Compliance

2. Environment – Air, Noise and Water Pollution

3. Ground Contamination

4. Chemicals

5. Hazardous and Non-Hazardous Waste

6. Fire Prevention

7. Worker Health & Safety

8. Housing Facilities

9. Wages, Benefits and Working Hours

10. Child Labour

11. Forced & Bonded Labour

12. Discrimination

13. Freedom of Association

14. Harassment, Abuse and Disciplinary Actions

15. Continuous Improvements

16. Routines for Procurement of Wood, Bamboo &

Rattan

17. Fulfilment of IKEA and Legal Forestry Demands

R1 The Universal Declaration of Human Rights (UN 1948)

R2 Occupational Safety and Health Convention, and

Occupational Safety and Health Recommendation (ILO

Conventions 155 and Recommendation 164)



R3 Convention on the Rights of the Child (UN 1989)

R4 Minimum Age Convention, and Worst Forms of Child

Labour Convention (ILO conventions 138 and 182)

R5 Forced Labour Convention, and Abolition of Forced

Labour Convention (ILO Conventions 29 and 105)

R6 Equal Remuneration Convention, and Discrimination

(Employment and Occupation) Convention (ILO

Conventions 100 and 111)

R7 Freedom of Association and Protection of the Right to

Organise Convention, Right to Organise and Collective

Bargaining Convention (ILO Conventions 87 and 98)

R8 Fundamental Principles of Rights at Work (ILO

Declaration, June 1998)

R9 Rio Declaration on Sustainable Development (UN 1992)

IKEA References

R10 The IKEA Way on Purchasing Home Furnishing

Products

R11 The IKEA Way on Preventing Child Labour

R12 IKEA Hazardous Waste Guidelines

R13 IKEA-0036 Rules for the Forest Tracing System

R14 IKEA Supply Chain Audit Procedure

Conclusion

Ikea is the company for everyone it’s a best choice especially for families. You can just shop for every day or renew the whole



inside of your house as best as you can choose. Prices are affordable and products have a great range and variety.


Documents

BSBMKG502B -Establish and Adjust the Marketing Mix Course Name: Diploma of Business Assessment 2 BSBMKG502B -Establish and Adjust the Marketing Mix Course Name: Diploma of Business