marketing plan for IKEA宜家市场分析.docx

marketing plan for IKEA宜家市场分析.docx

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marketingplanforIKEA宜家市场分析

FinalProject:

Thestrategicdevelopmentandgrowthofacompany

IKEAinIndia

MC1y2,2ndSemesterAPDegreeMarketingManagement2010

Groupmembers’namesandinitial:

CristinaAlexandraGrindei（AG）,AlishaKhatri（AK）,XueYin（Y）,YunjingLu（L）

Date:

28/05/2010

ListofContents

1.Introduction……………………………………………………………………………………………………..….3

2.Problemformulation………………………………………………………………………………………..….3

3.Methodology………………………………………………………………………………………...……………...3

4.Limitation……………………………………………………………………………………………….…………….4

5.MacroandmicroAnalysis………………………………………………………………………………..…..5

-5.1Countryprofile……………………………..……………………………………………………………….....5

-5.2Companyprofile…………………………………………………………………………………………….....8

6.Strategy………………………………………………………………………………………………………………..10

-6.1Entrymode………………………………….…………………………………………………………..……….10

-6.2Segmentation,targetmarketandpositioning……………………………………..…….……….12

-6.3marketingmixstrategy…………………………………………………………………….………………13

-6.4ansoffanalysis…………………………………………………………………………………..……..………..14

-6.5valuechainanalysis…………………………………………………………………………………………..15

-6.6innovation…………………………………………………………………………………………………….….16

7.Barriersandcost………………………………………………………………………………………………….16

-7.1businesslaw…………………………………………………………………………………………..…………16

-7.2budget………………………………………………………………………………………………………………17

8.Assessment…………………………………………………………………………………………….…….……….18

9.Conclusion……………………………………………………………………………………………………….……18

10.Reference………………………………………………………………………………………………………..…….19

11.Appendix………………………………………………………………………………………………….……..……20

1.Introduction

IKEA,theSwedishsuperstore,knownforitsinexpensivestylishhomefurnishings,issufferingafinancialdownturninEuropemarket.Itisseekinganxiouslyfornewmarkettoexpandtobalanceoutitsglobalsale.MeanwhileinIndia,insteadoflivingathomewithparentsuntilmarriage,manyyoungIndiansaremovingintotheirownapartments,postponingmarriage,andevencohabiting.Realestateisboomingandcitylivingisgettingmoreexpensiveandmanypeoplefindthemselvessqueezedintotightquarterswithaneedformodern,space-savingfurniture.ItseemsthatnowisjustaperfecttimeforIKEAtoenterIndia.SoisIndiaanopportunityoratrap?

Wewillfindoutinourreport.

2.ProblemFormulation

IKEAisplanningtoentertheIndianmarket.

1.isIndiaanattractivemarketforfurniture?

2.WhataretheopportunitiesandbarriersforIKEAenteringtheIndianmarket?

3.HowcouldIKEAestablishitselfinIndia?

3.Methodology

Theprojectoffersanapproachtotheinternationalizationofacompanyregardingthemarketing,valuechain,cultureanalysis,businesslawandeconomics.

SecondarydataconsistingofdifferenttypesofliteraturehasbeencollectedfortheLiteraturereview,inparticularstrategytextbooks,reviews,andonlinesources.ThemostfrequentlyuseddatabasesbyusareEuromonitor,Marketline,economist,Googleetc.AccesstodatabasesisprovidedbyNielsBrockCopenhagenBusinessCollege.

Wewillstarttheprojectwithmakingthecompanyandthecountryprofile.Inthecountryprofiletherewillbemadeanassessmentonhowthecountryisdoingnowregardingtheeconomy/income,geographicanddemographicissues,competitioninthefurnituremarket,andlawbarriersforaninternationalcompany.ThecultureanalysisandcommunicationwillalsobeanalyzedinordertosetthedifferencesinthewayofthinkingbetweenIndianpeopleandSwedishpeople.Regardingthecompanyprofile,wewillmakeacurrentfinancialsituationofthecompanyandtheirpreviousexperienceinAsia.ASWOTanalysiswillbemadeinordertoevaluatethestrategicpositionofIKEAbyidentifyingitsstrengths,weaknesses,opportunitiesandthreats.Afterthesebeingmadewewillstartmakingthemainpartoftheproject,theanalysisandstrategies.ThefirstanalysiswillbetheAnsoffgrowthstrategymatrix.TheAnsoffmatrixisusedtoimplementagrowthstrategy.ThesecondanalysiswillbetheMarketingmixstrategy,thatmarketersmustmanagersothattheysatisfyorexceedcustomerneedsbetterthanthecompetition.ThenextanalysisistheMarketingSegmentationthathasthetoidentifythegroupsofcustomersthatIKEAisgoingtoaddresstoinIndiaandsothefirmcancreateadifferentialadvantage.TodecidewhetherIKEAshouldgotoIndiaornotandiftheygohowshouldthisbedone（whatentrymode）,wewilluseinternationalizationstrategies.TobeabletofaceanyproblemthatmightcomeoutinIndia,abusinesslawassessmentwillbemaderegarding:

themarketinglaw,thecompetitionlaw,exclusiverightsandsalesofgoodsact.InthevaluechaintheprimaryandsecondarydatawillbeanalyzedfromthecompanyandfromIndianpeoplepointofview.AlsoanassumptiononthefuturecostsforIKEAexpandingtoIndiawillbemade.

Finally,aconclusionwillbemadetoanswertheproblemformulation,ifIndiaisagoodopportunityforIKEAtoexpandtoornot.

4.Limitation

Limitationsofthisprojectwore,thatwehadtowrite3-4pagesforeachsubjects.WehadproblemsinfindingtheannualreportofIKEAfortheeconomicpart,asIKEAgroupisnotapubliclylistedcompanyandthereforedoesnotissueannualreport,Forthebusinesslawpart,weworelimitedbecauseweonlyhadlearnedabouttheDanishlaw;thereforewehadtoapplytheDanishlawandnottheIndianlaw.InthisassignmentthefocuswasonlytheimplantationofIKEAfurnitureandnotIKEA’srestaurant.Westrovetousethenewestfactsandnumbersalltimes,neverthelesstherewasatimewherewehadtouseslightlyolderorsimplyassumednumbersduetothelimitedinformationwehaveaccessto,andthereforeitshouldalsobetakinginconsiderationthatthebudgetofthemarketisverylimited.

5.Microandmacroanalysis

5.1Countryprofile

∙GeographicandDemographics

Withapopulationofabout1.2billionpeople,Indiaisthesecondmostpopulatedcountryintheworld.Atpresenttherearethreecitiesinthecountrywithapopulationof5millionormore.Thatmakesupover15%oftheworld’spopulationeventhoughthecountryonlyoccupies2.4%oftheworld’sland.By2050,IndiaisexpectedtoovertakeChinaandbecometheworld'slargestcountryintermsofpopulation.Thislargepopulationprovidesahugeconsumermarketwithextraordinarypotentialforbusinesses.Asabusinessopportunity,thisisexcitingnewsforIndia,especiallyas51.0%ofthetotalpopulationwasbelowtheageof25in2006.ThisdistinctdemographicadvantagemakesIndiaoneoftheyoungestcountriesintheworld,withalargeandgrowinglaborforcethatcanbetappedtoworkintheforeignorganizationsthatareincreasinglyshiftingtheiractivitiestoIndia.Onaverage50%ofIndiansareliterate.Thebreakdownofreligionsareasfollows:

Hindu80%,Muslim14%,Christian2.4%,Sikh2%,Buddhist0.7%,Jains0.5%,andother0.4%.ManyIndiansarevegetarianandmostdonoteatbeef.SomeoftheritualsassociatedwithnormallifearethefrequentreligiousfastingdaysoftheHindus,MuslimsandParsis.（L）

∙Ecomomy

IndiaisthefastestgrowingeconomyinAsiaPacificregion.Evenintheglobalfinancecrisis,India2009realGDPgrowthratewas7.9%.AlthoughGDPdeclined2%from2005~2007,withpropertypricefallingaswellascustomerconfidenceandbothtradingandmanufacture.

Indiahaschangedinflationpatternsforthepastfewyears.Between2004-2005and2007-2008,Indiahadexperiencedanaveragegrowthrateofmorethan10%.InflationinIndia2010standsat9.9%.Theinflationrateisduetothegeneralriseinprices,andconsiderationthepurchasingpower.

‘Afterabriefslumpin2009,Indianhousewaresandfurnishingsmarketisexpectedtorecoverintheforecastperiodandgrowinhighdoubledigits.ForecastgrowthisexpectedtobehelpedbyincreasedpercapitaincomeofIndianmiddleclasspopulationsandalsoduetoincreasednumberofhomespecificorganizedretailingchains.’Themarketforhousewaresandfurnishingsareexpectedtoopenupinsmallercities.Thereislikelytobeincreasednumbersofbrands,increasedchoiceandincreaseddemandforhousewaresandfurnishingssegment.（Y）

∙Income

FromtheTotalGrossIncomeofPopulationAgedinIndia（appendix）Canclearlybeseen,the20-35yearsoldyoungpeopleTheyaccountedfor40%ofTotalGrossIncomeinIndia.Comparedto2004,thetotalincomeof20-35is19100090.7dorllersthatisincreasedby176%.Itmeanstheannualdisposableincomealsoshouldbeincreasedasthesamelevel.

Themainforceconsumptionshouldbe20~35yearsold.ThattrendsanddemandforhousewaresandhomefurnishingswereincreasinglybeingdrivenbyyouthsresidinginurbanIndia.Mostyoungbuyerswouldliketogotothenewlydevelopedorganizedretailingchainsandchosethehousewaresandhomefurnishingsmostsuitedtotheirlifestyle.

Indiafurnituremarketissharedbymorethanhundredcompanies,privatelabourandotherkindof（appendix2）.Theprivatelabourandotherkindofsellersisownthe90.4%oftheIndianfurnituremarket.（Y）

∙Government

ThepastdecadesinIndiahaveseenashiftintheattitudeofgovernmentpolicies.TheintroductionofVAThasbeenakeydevelopment.VATwasimplementedinApril2005atastandardrateof12,5%.ThecurrentgovernmentofIndiaisinfavoroflongtermforeigninvestment.Now,Indiaoffersatransparentenvironmentfortheforeigninvestors,whichguaranteethesecurityoftheirinvestments.Asabusinessopportunity,thereisscopeforinvestmentonnewtechnologiesinmanufacturing.Withinthemanufacturingsector,thesignificantreformincludestheremovaloflicensingproceduresforinvestors,reductionofimport