Channel Distribution of Ikea Essay Example

align="justify">Customer that bought IKEA product normally prefer repeated purchase rather than reject to buy the product from IKEA because IKEA provide quality at the lower price and has much more option for the customer to choose which product they want. Customer that visited IKEA are mostly like users and regulars users because future customer interest on buying some product and the need of the product lead them to come to the store because they know IKEA store can provide the best environment for them to search the product.

To facilitate shopping, IKEA provides catalogs, tape measures, shopping lists and pencils for writing notes and measurements.

Effective marketing through catalogues usually attracts the customer at first, what keeps them coming back is good service. These catalogues are available in any IKEA store (prices are guaranteed not to increase while the catalogue is valid, which is again attracting consumers). The positioning strategy IKEA prices are as much as thirty percent to fifty percent, certainly at least twenty to thirty percent, below those of fully assembled competing products. The exact level of undercutting varies from country to country and from period to period.

There are also BTIs, ‘breathtaking items’, which have a very low price. Low costs are translated into low prices as IKEA pursues a deliberate price leadership strategy. For example, IKEA does not deliver, although it will organize delivery at the purchaser’s cost, if it is needed. At a cost it will even organize assembly for the customer.

One of the best-known features of IKEA is its catalogue. It is itself well designed, almost a collector’s item. This catalogue has become something of a design icon,

rather like the London underground map or the Coca-Cola bottle.

It is the main mechanism of advertising. Promotion is centered on this catalogue. The aim of the company is to use the catalogues to promote innovative approaches, which are then talked about and publicity generated by word of mouth initiated by those who have seen the catalogue.

The catalogue also helps the consumer to find the relevant product before entry into the store. The next positioning strategy of IKEA is colorful and attractive nature of the retail outlets, where the furnishings are set out as they would be in actual homes.

The usual approach to selling furniture is to have multiple versions of the same product in the same room, such as beds, lounge suites, or tables. Such an unnatural setting creates problems of choice for the customer. Such a situation often requires the shop assistant’s assistance in enabling the purchaser to imagine the item in a natural setting. In IKEA by contrast there is not very much direct service; the stores have the do-it-yourself style of the supermarket.

Beside that, IKEA also provide special care for the children.

There is a nursing area in IKEA restaurant where parents can attend to the needs of their little ones. Children are the most important people in the world to us. At the IKEA store, they provide an array of services to ensure that the kids have an imaginative and fun-filled shopping experience.

The supervised playroom, Smaland, is always a big hit with the children. There is also a video area next to the ballroom where well-loved cartoon classics are screened. With these facilities, customers can shop

without worry the little ones.

The attributes of the product offered by IKEA differ markedly from those of other retailers. Instant accessibility, customer participation in value-adding, the combination of low cost and high quality – all mark the product out as unique and therefore as carrying a competitive advantage, one which is continuously renewed as products are improved and renovated. IKEA is always ready to innovate.

Recommendation There is only one IKEA retail shop in Malaysia which located at Damansara, the main city of Malaysia.

It is not convenience for the customers which at other states to go to shop. IKEA should have more outlets at all over the country. Beside that, the meal at the restaurant of IKEA is limited.

The foods is more to the traditional Swedish style and might be not suitable and do not match Malaysians’ style. The restaurant should come out with more choices so that everyone can enjoy eating while they are tired of shopping. Some of the products are require self-services by the customers. Sometimes the customers might be mistaken in picking up the products.