IKEA

Seminar Week 5 | MMP_7_IMK

Jun Nguyen
Lecturer in Marketing

LRC 3rd Building Floor

nguyel10@lsbu.ac.uk
Team members
1. Thomas Johnson _ ID 12034879
2.
3.
4.
5.
Question 1: Identify and discuss the opportunities and
challenges of IKEA’s operations in China and Japan. Discuss
how the company should overcome these challenges.
Insert your text, add more figures…
Add more slides if you wish…
Question 2: Discuss whether or not IKEA has really
implemented the concept of “Glocalisation” (think globally
and act locally) in designing its marketing strategies in China
and Japan. To what extent have these marketing mixes been
adapted to the needs of these two markets?
Insert your text, add more figures…
Add more slides if you wish…
Question 3: Critically discuss the franchising strategy IKEA’s
used to expand into foreign markets to explain whether or
not the company has really used franchising.
Insert your text, add more figures…
Add more slides if you wish…
 Q4.Should IKEA permanently shift toward e-commerce
and close all their physical stores?
The shift to e-commerce is accelerating, with a 10% rise expected in the coming years.

How Ikea have grown in this e-commerce industry:

Sales growth; Reduced expenses; Brand awareness has grown; Gaining intro new
markets;
Improved customer support; Enhanced organisational effectiveness and efficiency;
Improved data management; Shipment tracking;
Stock replenishment has been simplified
The Virtual IKEA Experience

IKEA Place App. Retrieved from ikea.com/at, IKEA

Advisory appointments can be booked online through

IKEA websites of different countries.
The online planning sessions with IKEA employees are
video calls with shared screens that enable the
consumers to browse through the product range with the Room Planner App. Retrieved from ikea.com,
employees’ guidance, as if they were in the store. IKEA
The supply chain disruption, how it is managed
Costs saved on manufacturing and shipment

DIY assembly

Long-term relationships with IKEA suppliers

Cost per touch IKEA inventory management

strategies

Dedicated warehouse areas for fast movers

and slow movers
Reorder point and order quantity
management

Customer-centric
Challenges approach
Improving response time to
demand changes
Delivering Products profitably
Managing inventory costs
The digital explosion
Unprecedented events or
situations
 Should Ikea really close down its stores and move to e-commerce?
IKEA In-store Experience:
experiential Marketing

Finally, IKEA stores provide the

visitors with additional facilities,
such as play areas for kids as
well as food courts and mini
shops with traditional Swedish
food. This encourages the
customers to visit physical
stores even in the era of
In-store Scene in Closed Setting with Different Furniture Types
ecommerce and online
shopping. IKEA’s store layout is
a “fixed path” design

“I like to call it the

phigital experience:
physical and digital
together,” (Barbara
Martin)

In-store Scene in Open Setting with Different Versions of the Same

Furniture Type
Any questions?