Background of IKEA

IKEA’s objective is to make comfortable lives to more people. To reach that goal, IKEA suggests more well-designed and functional furniture products. In addition, prices of these products are so low that more people can afford them (https://franchisor.ikea.com/).

IKEA’s concept guides the way that IKEA’s products are designed, manufactured, transported, sold, and assembled. Moreover, these processes help IKEA to realize its concept. In early 1940s, Ingvar Kamprad founded IKEA in Smaland in the south of Sweden and IKEA’s today’s concept came based on one of Ingvar Kampard’s ideas, which is to reduce cost in every way possible - except on ideas and quality. Nowadays there are more than 300 IKEA’s stores all over the world and IKEA has employees more than 130, 000. Based on these, IKEA is one of the best world brands of furniture market. By the end of 2009 the sales of IKEA is more than 22713 million EURO. Its Catalogues have been printed in 27 languages and more than 56 editions. In 2009, the number of customers who have visited IKEA is more than 550 million (https://franchisor.ikea.com/).

From the perspective of product, IKEA’s products reflect and facilitate an easy, natural and unconstrained way of life and meanwhile it can meet most requirements based on limited room and money (https://franchisor.ikea.com/).

Furthermore, from the perspective of price, IKEA’s designing of products start on price and functional concern. IKEA’s designers use innovative knowledge and low-cost producing process to ensure low price and high quality of product. Moreover, most IKEA’s products are designed to be transported and assembled. Therefore, it can help to reduce transporting and storing cost. And for customers, they can get interests when they assemble furniture (https://franchisor.ikea.com/).

Besides that, from the perspective of place, IKEA’s stores are great and they can provide more products for customers, and customers can help themselves to try products in stores. In the store, products are not simply displayed but in the ways of realistic room and real-life home (https://franchisor.ikea.com/).

Finally, from the perspective of promotion, IKEA has its own special catalogue. All products of IKEA, furnishing solution, price, product and information are shown in this catalogue. It also includes how access a nearby IKEA store and the opening time of these stores. As mentioned above, the catalogue is printed in a huge number about 200 million every year, it has been a major promotion method of IKEA (https://franchisor.ikea.com/).