According to the management, no design will make it into the showroom if it can't be made/sold affordable. Furthermore, IKEA does relentless cost- cutting.
It tries to reduce prices by an average of 2 to 3 percent each year and goes even deeper when it wants to hit rivals in certain segments. In addition to the enerally low prices, IKEA also offers a membership program providing special discounts to its members. However, the management is aware that a low price is not appealing unless it represents good value for money.Therefore it always makes sure that the price doesn't relate to bad quality in the consumers' minds. 1.
3. 3. Place IKEA currently operates 301 stores in 37 countries all over the world and continuously plans to launch new stores. The store is the IKEA retailers' primary medium for presenting and communicating the range, its low price and the IKEA concept. In the tores, IKEA doesn't only provide inspiration and ideas, but also encourages people to touch, feel and use the products on display to see how they would fit into their own home.
Usually the stores are placed outside of urban areas, isolated from other shops. IKEA wraps the shopper in a 360-degree retail experience. In order to let parents shopping freely, it established a playroom for children at the entrance of every store. Also recognizing that a large factor of shopper decline can be traced to hunger, the store strategically places a cafeteria midway through the vast building to ive shoppers an opportunity to fuel up before tackling the rest of the store. 1. 3.
4.Promotion The IKEA catalog is the main promotional tool with around 70% of the annual 27 languages for 38 countries. 175 million catalogues circulated last year - surpassing the Bible as the most published work. The catalog is the company's most important tool for building relationships with its customers.
Recently IKEA even has introduced the unique concept of a personalized catalog: Customers can have their pictures taken at one of the stores, and pick up a copy featuring themselves in the iving room shots. It brings customers back into the stores, and it creates deep personal connection to the brand.The company also publishes and sells a regular style magazine, titled IKEA Family Live in thirteen languages which supplements the catalog. IKEA has a long tradition in marketing communication focusing primarily on printed media which has proven its values and success to the company over the years. Other media now also being used to an increasing degree include TV, radio, and internet based communication.
For example, when IKEA launches new stores in ities like London or Tokyo, it runs major outdoor campaigns in the city center and near the stores.Transport media like buses or the subway are used to display their advertisements. Furthermore IKEA also decorated bus stations and subway trains with its products, hence bringing the in-store displays to the outside world. IKEA's advertising (including TV and radio spots) are very controversial.
Some people love the unique style, some hate it, but everyone who sees it has a strong opinion and subsequently it provokes conversation and debate, thus raising awareness and driving traffic to the stores.
