IKEA's Marketing Strategy
IKEA is a private, international house products firm that designs and markets ready-to-assemble home furniture. The company is a world's major furniture retailer. It was founded in 43 by 17-year-old Ingvar Kamprad in Southern Sweden. By October 2011, IKEA offers 326 pieces of furniture stores, are operating in 38 countries and engages 1, five-hundred suppliers of 12. 1000 products. In fiscal year 2010, that sold $23. 1 billion dollars worth of goods, a several. 7 percent increase over 2009 (http://en.wikipedia.org/wiki/IKEA). In 95, outside the Milan fair, which is the most exclusive exhibition fair in the world for élite household furniture designers, a sign declared: " Il style democratico” [" Democratic Design”]. The sign indicated to a building that let in IKEA event outside the good. In developing the notion of " democratic design”, Ingvar Kamprad provides asked: " Why need to well-designed furniture always be and so expensive? How come do the most well-known designers constantly fail to reach the majority of people using their ideas? In the view, well-designed products were only for the rich and privileged; the multitude of people who have less money, had been excluded. Home furniture was no exception. Kamprad's thought with IKEA is to provide a wide range of furniture of good design and style and efficiency at a cost low enough to be inexpensive to most persons. The three dimensions of " democratic design” are kind, functionality and low price. Simply no other household furniture manufacturer can be producing designed home furnishings that featured all of these factors. With respect to third dimension, low price, IKEA designers are always asked to use style to decrease rates, not boost them. The procedure begins having a decision in what price the majority of people can afford to pay. A production line is then created to produce fixtures that happy the additional two measurements. To achieve this, designers work on the factory floor with production staff, rather than in a prestigious office in a isolated...
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