This website uses cookies to ensure you have the best experience. Learn more

Ikea Product And Brand Management

1275 words - 6 pages

Product and Brand Management Ikea Assignment
1
Is Ikea a successful global brand? Why has it been successful?
Ikea is a very successful global brand, not because it has 226 stores in Europe, Asia, Australia and the United States with 410 million shoppers a year, not because other global brand like Wal-mart stumbled in Brazil, Germany and Japan but for Ikea’s unique cultural branding that merges the value and fashionable design to ensure the creation of an affordable contemporary household goods (not just the furniture with 5-10% sales in each country with Ikea stores) for the middle-class. This uniqueness of its corporate DNA is the main reason why the Ikea is so successful globally. The ...view middle of the document...

To design beautiful products that are inexpensive and functional posted a huge challenge. It is Ikea’s policy to discard the
2
design that won’t be made affordable, no matter how inspired it represent. The design is an important part of what make this brand a global cult brand but it won’t stand out if the brand is only about the contemporary design and missed the “frugality” part.
How important is design to Ikea’s positioning and brand equity?
Without the design part, the Ikea’s brand will be just like that of Wal-Mart. With the strength of Wal-Mart, Ikea’s won’t be able to compete with Wal-Mart for the economies of scales since there won’t be any differential products between Ikea and Wal- Mart. The only difference between these two companies is the design (contemporary design) part of the brand. Ikea holds the position to be the affordable contemporary designer for the household goods with the affordable price. With this differential branding position, Ikea does practice the economies of scale with a network of 1300 suppliers in 53 countries, as it just like Wal-Mart, worked hard to find the right manufacturer for the right product. Ikea started the business as a furniture store, but the sale of the furniture only constituted 5 to 10% of the sales in each country with Ikea stores opened. For most customers, Ikea stands not only for the contemporary design and affordable furniture but also the complete household goods from picture frame to candlesticks.
How defensible is Ikea’s brand equity in its target markets? Why and Why not?
To grow the market, Ikea’s main targets are US, Russia and China markets. We can conduct a SWOT analysis for Ikea for its targeting market competitiveness.
Strengths:
Economies of Scale in the affordable Contemporary Design household market. Identifiable concept with clear strategy of cost leadership
Target consumers- middle class consumers.
3
Recognizable store structure - a huge range of home furnishings within the same area.
Ikea is privately held, thus the pressure from the financial market for quarterly growth and profit.
Weakness:
Limited manufacturing capabilities, the current model can only grow 20 stores in a year
Quality concerns in some regions
Cultural differences in the some diversified markets as in the US, China, and Japan
Opportunities:
The fast growing Asian countries with an affluent middle class represent opportunities for Ikea to penetrate and sell its concept of affordable contemporary design of uplifting lifestyle.
Focus on differentiated products for the Asian markets
Threats:
Competitors: Kmart and Target Corp. in the US. Fly in France.
Japan Nitori Co. in Japan.
From this SWOT analysis, that we identify the strengths and weaknesses of Ikea...

Other Papers Like Ikea - Product and Brand Management

Business And Management Internal Assessment Paper SHOULD PACKAGING OF PRODUCT PISTACI BE CHANGED IN ORDER TO INCREASE SALES?

4609 words - 19 pages SHOULD PACKAGING OF PRODUCT PISTACI BE CHANGED IN ORDER TO INCREASE SALES?ACKNOWLEDGEMENTSI would like to thank the company for helping me in my research and offering all the information needed. Even though they expressed some confidentiality concerns, people in this company were very interested in providing me with assistance and the answers to all my questions.CONTENT PAGEResearch Proposal………………&hellip

Ikea Case Analysis

762 words - 4 pages แต่เมื่อเทียบกับร้านอื่นๆในด้านการให้บริการการขนส่งสินค้าถึงบ้าน IKEA จะสู้คู่แข่งในด้านนี้ไม่ได้เนื่องจาก IKEA ไม่ได้ครอบคลุมค่าใช้จ่ายในการขนส่งไปในราคาสินค้าด้วย ทำให้เมื่อลูกค้าต้องการใช้บริการขนส่งสินค้า ลูกค้าต้องจ่ายเงินค่าขนส่งเพิ่ม Organization and Management IKEA ห้างขายเฟอร์นิเจอร์และของใช้ภายในบ้านขนาดใหญ่ของประเทศสวีเดน ก่อตั้งขึ้นครั้งแรกในปี 1943 โดย Ingvar Kampardผู้ซึ่งมีแนวความคิดที่จะขายสินค้าในห้างของเขาในราคาประหยัดที่ผู้ซื้อสามารถซื้อสินค้าของเขาได้อย่างสบาย

Ikea Analysis

1320 words - 6 pages , while Crate & Barrel is growing up: housewarming gifts, engagement parties, wedding registries and dinner parties. This strategy has carved out a nice niche for Crate and Barrel, but IKEA is still viewed as the preferred brand How IKEA Stands Alone IKEA’s devotion to Environmental design allows designers, product developers and technicians to consider a product's safety, quality and environmental aspects, from the initial design stage

Geography

2452 words - 10 pages /about_ikea/pdf/ikea_ser_2010.pdf IKEA International A/S History. (n.d.). Retrieved 07 04, 2012, from Funding Universe: http://www.fundinguniverse.com/company-histories/ikea-international-a-s-history/ Managementparadise.com. (n.d.). Retrieved 07 04, 2012, from http://www.managementparadise.com/forums/principles-management-p-o-m/208720-pest-analysis-ikea.html Product and brand Management. (n.d.). Retrieved 07 04, 2012, from http://www.jrleeconsulting.com/files/Product%20and%20Brand%20Management-Ikea.pdf

Ikea- Strategic Planning

3500 words - 14 pages main competitive advantage is their strong brand image and product differentiation, which includes innovative ideas in retail experience by providing child care, the ‘flow’ of the store and IKEA restaurant in every store whilst ensuring low cost of production and maintaining a reliable supplier network. (Jeffreys, 1992) describes the structure of the IKEA operation as comprising of four main functions: (International Marketing Review, 1999

Amis

3697 words - 15 pages to all class of people. By this objective our team is able to identify 3 CSF of IKEA * To provide less expensive and better quality product * Creating a Unique Brand image. * To become one in Global distribution network. Further we identified IKEA ICT which supports business process in gaining competitive advantage .By continuous process improvement and Design and product development IKEA was successful in this industry. We have

Competitive Advantage of Ikea Based on Distribution Logistic

5370 words - 22 pages glad and accept kinds of product because reliable and dependable. 4.1.3 IKEA warehouse management systems From Napolitano 2001, Somehow WMS offers the necessary information to manage and control the flow of products from receiving period to shipping period. WMS also be used for order management and consolidation also for comprehending the continually exploding list of product stock keeping unit due to customer’s requirements for mass

Ikea - Case Study

1098 words - 5 pages & Donnelly, 2011) IKEA and Deutsch began advertising people at different age stages in their lives, who were in the market for new furniture. IKEA’s marketing strategy change was an overall great success and since then they have continued to expand throughout the U.S. market. Success with the IKEA brand was related to keeping the product simple, inexpensive and produce the current fashionable trendy products. The theory was to supply

Ikea Destined to Succeed Everywhere?

2186 words - 9 pages political issues and difference in cultural lifestyle and taste. Internal factors also contribute to the shortcomings for IKEA in certain markets, such as the recent unethical business behaviour present in Russia.   Reference: Nattrass, Brian, and Mary Altomare. "IKEA: 'NOTHING IS IMPOSSIBLE'." Journal of Business Administration and Policy Analysis (1999) Roncha, Ana. "Nordic brands towards a design-oriented concept." Journal of Brand Management

Strategic Marketing

2858 words - 12 pages underlining the key points with a powerful glib, Ikea has made Ikea a something-to-look-forward to brand especially to those that are not yet acquainted with Ikea. The Marketing Mix: Product and Branding Strategies Ikea Product Positioning Map My two primary attributes are Variety/Limited Variety and Simplicity/Complexity Target Market and Product Strategy C Simplicity Complex Variety Limited Variety Design Within Reach Minimalista

Ikea Case

2451 words - 10 pages of interest for management and society.  Company’s Vision IKEA believes in their vision and business idea and live it every day.   The IKEA vision is, “To create a better everyday life for the many people.” and the business idea is, “To offer a wide range of well designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.”  When IKEA cut labor and other factor costs by sourcing

Related Essays

Product And Brand Essay

1370 words - 6 pages Course Name: Product and Brand Management Course Code: MKt342 Assignment Topic: Designing and developing a new brand for a particular product Submitted to: Syed Parvez Khan Lecturer, School of Business Submitted by: Nazia Hasan Shaity Id-11310159 Sec-D 1st February, 2013 1. Intorduction: To successfully position of a brand above the competitor’s continuing fight for customers, we must develop a brand proposition that when conveyed in

Project Management Case Studies: Ikea And Timbuk2

3414 words - 14 pages feel like they are living well even though they aren’t paying for premium product. There is a great deal to learn from its operations and management. The company’s goals have been incorporated into the product design process that IKEA uses. Key Terms: • Triple bottom line – A business strategy that includes social, economic and environmental criteria. IKEA is an example of a company that judges itself by the triple bottom line. While it

The Study Of Relational Analysis Of Brand Image、Brand Personality、Brand Attitude、Brand Preference And Sports Product Purchase Intention

671 words - 3 pages 第三期 運動傳播學刊 第三期 品牌形象、品牌個性、品牌態度、品牌偏好與運動商品購買一圖關係之研究 品牌形象、品牌個性、品牌態度、 第 130-148 頁 I S S N:2 0 7 1 - 3 6 0 6 N: 品牌形象、品牌個性、品牌態度、品牌偏好與運動商品購買意圖 關係之研究 The study of relational analysis of Brand Image、Brand Personality、Brand Attitude、Brand Preference and Sports Product Purchase Intention 黃少章 / 國立臺灣師範大學 Haung Shau Chang / National Taiwan Normal University 真理大學運動知識學院 運動傳播學刊 第三期 抽印本 中華民國 九十九 年 八 月 一 日 第三期 運動傳播學刊 第三期 品牌形象、品牌個性、品牌態度、品牌偏

The Influence Of Personality, Brand Personality And Values On Consumer Behavior And Service Management

3923 words - 16 pages . Ginesfe, B. Leconte, A. Le Ny, C. Postel, X. Reutilin and G. Casalis (1997) “Dictionnaire Fondamental de la Psychologie,” Larousse-Bordas, Paris, France. Bristow, Dennis N. and Jo Ann L. Asquith (1999), “What’s in a Name? An Intra-Cultural Investigation of Hispanic and Anglo Consumer Preferences and the Importance of Brand Name,” Journal of Product and Brand Management, 8 (3), 185–97. Erdem, Tülin and Joffre Swait (1998), “Brand Equity as a Signaling