Strategic marketing: IKEA in India

Résumé du document

IKEA was born in 1943 in Agunnaryd, a small village in Sweden, while it is registered in the Netherlands. The founder of the firm was only 17 years old when he started his business. An interesting fact is that IKEA is an acronym of the founder's initials: Ingvar Kamprad, the farm where he grew up: Elmtaryd, and his hometown in South Sweden: Agunnaryd. The firm designs and sells a wide range of ready-to-assemble furniture, appliances and home accessories. Its vision is "to create a better everyday life for the many people". Since its creation, it has grown from being a small wood company in southern Sweden to being a major retailer present in 42 countries around the world.

India counts the world second most numbered population with more than 1.2 billion people. The average GDP growth rate of the country is rising to 7% and its economy is worth about 1.9 trillion US dollars. Moreover, the middle class is expected to be the 5th world's largest consumer economy by 2025.

As a result, the world largest democracy is one of the fastest growing economies and an important nation composing the current most successful emerging countries. Its furniture retail market possesses a middle class population of over 400 million and its purchasing power is rising regularly. It is known as one of the 14 largest furniture markets in the world. That makes it obviously a high potential market for IKEA. Indeed, the population is getting richer and the middle class part of it has grown significantly in the past decades and still does.

Extraits

[...] So it is very important to come with a very original and creative sport and promote Ikea within India. Specialized Magazines India has several specialized magazines in furniture. The idea is to promote Ikea on these magazines and even the housing magazine Ikea's catalogue This is obviously the most important communication tool. Ikea has to personalize it and make it match with the Indian Culture. Make it as well available is the place Ikea is established. - Sales Promotion Ikea have also take advantage of consumer demand. [...]

[...] The name Ikea was created in reference to the two first letters of the founder's name (Ingvar Kampard), the name of his parent's farm (Elmtaryd) and the name of his village (Agunnaryd). The Swedish-Dutch company is implanted in several countries through the world: in Europe, North America, Middle East, Asia and Oceania. Implanted in Netherlands since 1978, Ikea has twelve stores their. Since 1984, he opened 6 stores in Belgium. From 1989, he opened 15 stores in Italy. The company is also implanted in USA and in Canada. Montreal hosts the biggest company's store through the world. In France, the company has 26 stores. [...]

[...] Conclusion The idea of implanting and Ikea in India is a great challenge. The country is one of most growing countries over the world. The middle-classes are being largest and economists except them to grow within the next years. Considering the importance of this challenge, it very important to follow all the steps and don't burn any part of the process. Implanting Ikea in a country like India is a very big investment, which means a very large financial support, so people who are going to manage this project has to be aware that any detail had it importance. [...]

[...] The economic aspect is for the benefit of Ikea. Actually the indian economy is a fast growing economy. Which means that Ikea can attend profitability rapidly as if it was established in a small growing economy. Social According to the India Pestle report made by MarketLine, India is the second most populous nation in the world, with 1.2 billion people. Its population is young, with a median age of 26.5 years, and those above the age of 65 constituted just of the population as of 2011 The country has the following strengths: - Growing proportion of young people - Rapid urbanization India has to challenge with the following points: - Healthcare remains a major concern - Weak social security system - Poor literacy rate - Low HDI rank The targets of Ikea are the middles-classes. [...]

[...] - The extended products: It will be the services offered when you buy furniture. Ikea knows that it is not easy for everybody to buy disassembled products and assemble them after that. So Ikea will give a real support to it customers to make them able to do this. It can concern a support on phone, on Internet, at the store. Actually, the cost of labor is low in India that makes Ikea offers more services than the European countries for example. [...]