Make Life Better-IKEA

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Love ♥♥♥ Your Home IKEA: Goods & Services

When people talked about IKEA products, consumers are more concerned  about the products and services. IKEA do their best to help customers shopping as easy as possible. It arranged some menu of services to help people put products together and bring them home, such as online store, picking and delivery, delivery alternative and demand services help (Joelle Alcaidinho, 2013).

“ You can do it yourself, but you don’t have “

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The core products and value-added are an effective way to attract more consumers. IKEA products most important feature are the acceptability and sustainability, fully taking into account consumer acceptance and usage. Moreover, the purpose of the service is to help customers to easily purchase the required products (IKEA sustainability report, 2015).

The other intangible benefit that the customers can get from IKEA is there services. It is possible to evaluate the quality of goods By using and touching them. Consumers can be drawn intuitive good or bad quality evaluation in the process of using products. Comparatively speaking, it is difficult to draw a conclusion that the service is good or bad. Goods have different service life so that in the use of the process will have varying degrees of damage (Riddhima Chopra, 2009).

Honor And Certification-The Brand of IKEA

IKEA was founded in Sweden in 1943. It is not only one of the most successful retailers in the world, but also has an increase of nearly 6% of the turnover in  recent annual revenue. As a strong brand IKEA has been selected for the Forbes top 50 world’s most valuable brands (Denise Lee Yohn, 2015). It is a company which specializing provide home furnishings and accessories. With good design and lower prices are welcomed by customers worldwide. The target of IKEA “ is not just make things, is to create a better everyday life for people.” It not only focuses on the design of products but also pay attention to the development of consumer value and provide humanization after-sales service. IKEA has more than a few million customers a year in global consumption of each distribution shops. As of May 2015, it already has more than 300 stores in 40 countries and this figure will continue to grow over time (IKEA, 2015).

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  • Brand personalitiesDemocratic DesignIKEA is unique in that the flat-pack furniture, which design is unique that can be effectively distinguished from other competitors.
  • Brand extensions: Vertical Integration→IKEA named their products different animals and countries to attract customers from different regions as well as various age group. That behavior can help IKEA better closer to the customers. IKEA posts hundred thousand million brochures to their old customers and potential customers each year, in order to facilitate the promotion of new products.
  • Brand equity: Strong Brand ImageIKEA is the leader of the store flat pack furniture, with a strong brand appeal. When people mention IKEA customers will think of the convenience and efficiency. As one of the global brands, it must have good flexibility to adapt changes in the global market (Emma Clarke, 2013).

The New Product Development Process

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The development of new products is a fundamental survival of enterprises and brands, especially in some developing businesses. In the face of the national business environment changes and rapid development of competitors, expansion of new products has become the most important step in the business. Only constantly producing innovative products can make the company to keep up with the current social trends (Daphne Adams, n. d). The first step is to collect everyone’s idea, including competitors, employees and suppliers. This stage is very important which means directly determines the basis for the development of the following; The Second, analysis of market potential which is a screening process. Select suitable projects and discussions to reduce the error rate; The third phrase is carrying out the concept of development and testing to identify potential costs, revenues and profits of the product, such as SWOT and PESTLE analysis. In order to determine their own position and identify target groups of products; Then design and develop the products. This step helps to test the popularity of the market; Finally, the design of new products on the market to sell (IKEA sustainability report, 2015).

A strategic Planning tool-Product Life Cycle

Product life cycle diagram

Product life cycle diagram

IKEA wants their business to be sustainable development. Its goal is that gain  100% renewable energy by 2020. Energy saving investment is more conducive to the development of humanity and the planet, through good business to reduce costs and resist energy prices. Through a more environmentally friendly way to reduce emissions and improved waste in the management processes and strive to build a recycled sustainable development (IKEA sustainability report, 2015).

Reference list:

Denise Lee Yohn, 2015, ‘How IKEA Design Its Brand Success’, Forbes, 10 of June 2015, retrieved 26 August 2016, <http://www.forbes.com/sites/deniselyohn/2015/06/10/how-ikea-designs-its-brand-success/#268dea603901&gt;.

Daphne Adams, n. d, ‘Five phases of the new product development process’, Small Business, retrieved 26 August 2016, <http://smallbusiness.chron.com/five-phases-new-product-development-process-16006.html&gt;.

Emma Clarke, 2013, ‘IKEA’s Three Key Ideas for Success’, WOLFESTONE, 10 of June 2013, retrieved 26 August 2016, <http://www.wolfestone.co.uk/blog/ikeas-three-key-ideas-for-success/&gt;.

IKEA sustainability report, 2015, IKEA group, pp. 12-48, retrieved 26 August 2016, <http://www.ikea.com/ms/en_US/img/ad_content/2015_IKEA_sustainability_report.pdf&gt;.

IKEA, 2015, Multiple pages online, retrieved 26 August 2016,

<http://www.ikea.com/ms/en_AU/about_ikea/the_ikea_way/history/&gt;.

Joelle Alcaidinho, 2013, ‘5 online services to save yourself a trip to IKEA’,

Apartment therapy, 19 June 2013, retrieved 26 August 2016,

<http://www.apartmenttherapy.com/5-online-services-to-save-yourself-a-trip-to

-ikea-190252>.

Riddhima Chopra, 2009, IKEA Case Study, 31 of December 2009, pp. 3-16, retrieved 26 August 2016.

 

Student name : Yu Du (Miranda Du)

Student ID:213430159

Email: cgq@deakin.edu.au

 

 

 

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